Page 295 - Marketing Management

272 PART 4 BUILDING STRONG BRANDS

since 60 percent of McDonald’s U.S. business came Through the years, McDonald’s has created a num-
from drive-thrus, introducing more snack options, and ber of successful marketing campaigns and slogans
refurbishing restaurants with leather seats, warmer paint such as “You Deserve a Break Today,” “It’s a Good Time
colors, and flat-screen TVs. Initial results were staggering; for the Great Taste of McDonald’s,” and “Food, Folks,
from 2003 to 2006, the stock price increased 170 percent. and Fun.” Its current campaign, “I’m Lovin’ It,” seems on
Sales continued to increase through the late 2000s and track to join the others by helping the company reach
topped $23.5 billion in 2008, making McDonald’s one of record sales and growth despite difficult economic
only two companies in the Dow Jones Industrial Average times.
whose share price rose in 2008.
McDonald’s continued to flourish in 2009, led by its Questions
premium Angus burgers and its McCafé coffee line, which 1. What are McDonald’s core brand values? Have these
directly targeted competitors like Starbucks with less changed over the years?
expensive specialty coffee drinks. McDonald’s also
launched a worldwide repackaging effort as a result of in- 2. McDonald’s did very well during the recession in the
tense consumer research. The new packaging aimed to late 2000s. With the economy turning around for the
accomplish several tasks, including teaching consumers better, should McDonald’s change its strategy? Why
about McDonald’s health consciousness and building or why not?
awareness of its use of locally grown produce. It included 3. What risks do you feel McDonald’s will face going
bold text and full-color photographs of real ingredients like forward?
potatoes on French fry packaging and vegetables,
Sources: Andrew Martin, “At McDonald’s, the Happiest Meal Is Hot Profits,” New York Times,
cheese, and cooking utensils on hamburger packaging. January 10, 2009; Janet Adamy, “McDonald’s Seeks Way to Keep Sizzling,” Wall Street
Mary Dillon, McDonald’s global chief marketing officer, ex- Journal, March 10, 2009; Matt Vella, “McDonald’s Thinks About the Box,” BusinessWeek,
December 8, 2008; Jessica Wohl, “McDonald’s CEO: Tough Economy, but Some ‘Thawing,’”
plained that the goal is to “create unique personalities for
Reuters, April 17, 2009; “McDonald’s Rolls Out New Generation of Global Packaging,”
our menu items by telling a story about each one.” McDonald’s press release, October 28, 2008.