The Background And History Of Mcdonalds Marketing Essay

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Generally, McDonalds is recognized as one of the most successful and best known brands worldwide. They are well-known worldwide because of their famous fast food, mainly burgers. This burger brand was started by two brothers known as Dick and Mac Donald in 1940 and they operated their first McDonald’s restaurant in San Bernardino, California, United States.

Over the years, McDonald’s have revolutionized the food industry which results in the affecting of the lives of the people who prepared food and the people who consumed them. Besides, McDonald’s has a long-standing commitment towards social activities and became a major sponsor for most official and special events, such as World Cup since 1994 and also for the Olympic Games in 1976.

McDonald’s has achieved tremendous success that includes the establishment of more than 30,000 franchising stores in 120 countries and serving more than 47 million people each day, resulting in USD 15 billion revenue that is generated annually. In addition, there are three important characteristics of consistency, quality, and cleanliness. With that, Roy Kroc founded the Hamburger University in 1961 that offered Bachelor of Hamburgology degree that caters to and emphasizes on consistency, professional service, quality and cleanliness.

1.1 Background of Research

McDonald’s is conceived as one of the world’s leading fast food chain that has accommodated the lives of people daily. This burger brand was started by two brothers known as Dick and Mac Donald in 1940 when their first McDonald’s restaurant was opened in San Bernardino, California, United States. They began by selling hotdogs, where they used to own a hot dog stand, selling barbequed hot dogs initially before establishing the restaurant in San Bernardino.

However, during the year of 1948, the restaurant was closed and then reopened to sell hamburgers, French fries and milkshakes. The restaurant progressively becomes famous and the brothers begin to franchise their restaurant in the year of 1954. Neil Fox was appointed as the first franchisee and the next restaurant was set in Fresno, California. In 1955, Roy Kroc as an entrepreneur and a milkshake-mixer salesman attained the franchise of McDonald’s outside the city of California, which followed in the opening of his first McDonald’s restaurant in Des Plaines, Illinois where eventually gave birth to the formation of the McDonald’s Corporation. The restaurant progressed well and successfully sold 1000 million hamburgers in 1958.

Roy Kroc then approached the McDonald’s brothers and persuaded them to sell all the business rights to him which they did for a sum of USD 2.7 million in 1961. During that same year, the Hamburger University was established that offered the Bachelor of Hamburgology degrees catering and emphasizing on consistency, professional service, quality and cleanliness. In 1963, Ronald McDonald made his first appearance as a mascot for McDonald’s, which acted as part of the marketing strategy in the United States with the aim to attract more customers.

The first McDonald’s opened outside the United States in Richmond, British Colombia, Canada in 1967. McDonald’s then progressed successfully whereby in the year of 1974, the 3000th McDonald’s restaurant opened in Woolwich, United Kingdom. The company also became one of the main sponsors of the Summer Olympics in 1984, and the same year marked the death of Roy Kroc. Another history created by McDonald’s is by the launching of the ‘i’m lovin’ it’ campaign in 2003.

Besides, McDonald’s started its first ‘McDelivery’ service in Singapore in 2005 and a year later, McDonald’s published its nutritional information on the packaging of all its products with the aim to benefit its customers and to be user friendly to the environment. With a high reputation and huge success the brand has become, McDonald’s has now become one of the top and most popular fast food chains spread across the world in almost all the major cities in the globe. (For the recent Quick Service Restaurant or QSR report, see appendix A)

1.2 Research Problem and Statement

The main problem or challenge faced by the McDonald’s restaurant in Kampar is the competition with another well-known fast food chain in Kampar that is Kentucky Fried Chicken, commonly known as KFC. Competition between these two fast food chains is stiff and often takes place because of the similarities in what they offer as both these fast food brands are in the global market. Thus, it is therefore essential to know why people in Kampar prefer McDonald’s as their fast food brand.

1.3 Research Objective

The objective concerning the title of this research is to study and analyze the various factors affecting a customer’s decisions and preferences in choosing McDonald’s. A customer’s decision here means the level of evaluation of how a customer would evaluate and feel drawn in with the product. Based on the customer’s decision and buying behaviour, it is their choice to choose their desired brand, product and service. Thus, a customer will carry out extensive survey pre-purchase and widespread evaluation post-purchase.

1.4 Research Question

‘Why is McDonald’s the preferred fast food in Kampar?’

The reason why McDonald’s is the preferred fast food in Kampar is because McDonald’s in Kampar offers a wide variety of fast food ranging from burgers to fried chicken, chicken muffins to nuggets, French fries to apple pies, and ice-cream to milkshakes along with beverages ranging from Coke to Pepsi, Sprite to Honey Dew, and Milo to coffee. This has made it tough for customers to choose to dine in at other fast food joints in Kampar. Besides, due to the specialty sets offered with reasonable and affordable price to customers, it has made McDonald’s to be the preferred fast food in Kampar. In addition, the reason McDonald’s is the preferred fast food in Kampar is because of its strategic location, located in the heart of Kampar. This has made it convenient and easy for customers, mainly students studying nearby, to visit the restaurant during lunch hour. Also, due to the special promotions offered to customers, for instance money-saving packages, this has made McDonald’s to be the preferred fast food in Kampar.

1.5 Significance of Research

The significance of this research is to provide knowledge to the consumers about the diversity of set meals offered and attempt to produce variations in the fast food presentations by the well-known fast food restaurant, McDonald’s in Kampar. By implementing good and workable strategies, McDonald’s will be able to continue producing new variations of its meals in the future and also adapt to its competitive surroundings in Kampar. This could attract more customers and keep them satisfied with the variety of set meals offered. On the other hand, the output of this research can also be used by entrepreneurs who are interested in the food chain business to identify and understand the ways and techniques in establishing more fast food restaurants in Kampar.

1.6 Scope of Research

The scope of research is based in Kampar, which is located 32 km away from Ipoh, Perak. The reason why McDonald’s Kampar is chosen as the scope of research is because McDonald’s Malaysia has an outlet situated in the heart of the new town of Kampar, known as Taman Bandar Baru. The outlet shares the same menu, aim, objectives and goals as other McDonald’s outlets do.(For the review of McDonald’s Kampar, see appendix B)

1.7 Glossary of Terms

There are a few terms that are being used by the staff of McDonald’s and even their customers. These terms are used to communicate well and also be able to make a precise order more quickly rather than a long explanation where it confuses both the staff and the customers of McDonald’s. Below are some of the terms that are often used in McDonald’s.

TLC – Think like a customer.

Grill Slip- If a customer orders a burger, for instance a Big Mac with no sauce,

it is called a grill order. A grill slip is printed in the kitchen to let the staff know to prepare the order.

CAYG – Clean as you go.

Patty – A chicken or a beef patty that goes into the burger.

Juggernaut – A massive inexorable force that seems to crush everything in its way.

UHC – A Universal Holding Cabinet that is usually used to keep or hold cooked products

before they are boxed and served to customers.

FIFO – First In First Out refers to the method that is used to ensure that the stock that was

delivered first is used first.

OPS – Operational Procedure Sheet that is used during the training to explain each station’s procedures.

SOS – Statistical Observation Station that is used to access an employee’s ability while

working.

Fickle – Marked by lack of steadfastness, constancy or stability; given to erratic

changeableness.

APC – All Purpose Cleaner used for various cleaning jobs around the restaurant.

AMH – Anti-Microbial Hand wash that is used to clean the hands before handling food.

1.8 Summary

Hence, because of its famous and diverse menu and the practise of high quality service in serving its customers, McDonald’s is generally recognized as one of the well-known fast food brands worldwide with it operating more than 30,000 franchising stores in 120 countries and serving more than 47 million people daily. They have revolutionized the fast food industry in which directly affecting the lives or people who prepared the food and the people who consumed them.

One of the ways that have been used to collect relevant and reliable information from the customers in Kampar is through questionnaires, where a series of questions in a form are given out to gain public feedback in understanding whether McDonald’s in Kampar is popular and economical among the majority.

Besides, the problem statement of this research is the competition faced by the McDonald’s restaurant in Kampar with another well-known fast food brand restaurant located in Kampar that is Kentucky Fried Chicken, commonly known as KFC, as both are famous and well-known as fast food brands that have similarities in what they offer. It is therefore essential to know why McDonald’s is the preferred fast food in Kampar. By implementing workable strategies, McDonald’s in Kampar will be able to continue producing new variations of its meals in the future and also adapt to its competitive surroundings.