The McDonald's Corporation Overview
Image is important and having a good brand results in minimal efforts to successfully sell products. When it comes to the food service industry, McDonald's is the leading retailer with more than 30,000 local restaurants serving nearly 50 million people in more than 119 countries every single day (McDonald's Corporation, 2007). Its brand is clearly recognized worldwide.
In 1955, a man by the name of Ray Kroc opened the first McDonald's restaurant in Des Plaines, Illinois. Then, in 1965, the company went public. In 1985 McDonald's became part of the 30 companies making up the Dow Jones Industrial Average. Due to its financial success, McDonald's has always repaid its shareholders. Since the company began paying dividends in 1976, McDonald's has increased its dividend per common share amount 32 times (McDonald's Corporation, 2007).
One key ingredient to McDonald's sustained growth is its effective and integrated marketing mix. The company caters to all types of people, including families, professionals, students, and people of all ages. Marketing efforts are already underway to maintain and expand its customer base regarding professionals. The company is beginning to offer wireless Internet service in its various locations. For a nominal fee, customers can munch on a Big Mac while surfing the Internet. Furthermore, stores throughout the world are being redesigned to portray a family atmosphere.
In 2005, McDonald's has spent more than $705 million in the United States alone on advertising. Considering that Americans spent $134 billion on fast food purchases in 2005 (McDonald's Corporation, 2007), its advertising costs are well justified. The younger generation is certainly a critical market segment of the fast food industry. The purpose of this marketing plan is to develop a sound strategy for a new promotional product that will entice this group of individuals to frequent their local McDonald's, thus further...