Question

Discuss the main challenges faced by McDonald's in brand building such as positioning, communication, environmental change, product life cycle, brand equity, market share, consumer behavior, etc...

Answer 1

The main challenges faced by McDonald's in brand building is the level at which a customer can remember or recognize a brand under different conditions. Brand knowledge is one of the two dimensions of brand knowledge, which is the model of network memory. Brand knowledge is the key to customer behavior, management, promotion and brand management. Consumers' ability to recognize or recall brands is an important factor in purchasing decisions. Purchases cannot be made unless the customer is familiar with the product and brand in that category. Awareness does not necessarily mean that the customer must be able to remember a particular brand, but he must be able to recall enough features to buy.

Brand building has two components: brand awareness, brand building and brand recognition. Numerous studies have shown that these two components work in different ways because trademark recovery is associated with memory retrieval and trademark recognition in relation to object recognition. Both branding and brand recognition play an important role in the purchasing decision process and in marketing relationships. Brand awareness is closely linked to concepts such as a set of challenges and a set of considerations that include specific brands that customers consider when making a purchase decision. Customers are believed to own 3 to 7 brands in their reviews of various products. Consumers usually buy one of the three major brands in their consideration, as customers indicate that they are buying only well-known and established brands.

When a brand competes in a highly globalized market, brand awareness is a key indicator of a brand's competitive market performance. Recognizing the importance of brand awareness in consumer purchasing decisions, marketers have developed a number of indicators designed to measure brand awareness and other brand health measures. These indicators are commonly known as indicators of cognition, behavior, and usage.

To ensure the success of a market or brand in the market, the level of awareness must be controlled throughout the product life cycle - from product launch to market decline. Many retailers monitor the brand awareness level on a regular basis and if they fall below a predetermined level, the advertising and marketing efforts intensify until the awareness reaches the desired level.

Challenge that the company is facing are increased competition, poor management, poor market and lack of response to changing needs of buyers and customers. This leads to strategic competition that must be implemented for the success of the company to continue to grow. Globalization is crucial to the expansion of the condominium brand. In recent decades, large chains have begun to expand in the global market and open up franchises around the world. McDonald's currently operates in more than 120 countries around the world with more than 30,000 stores.

The analysis of the company examines the strengths, weaknesses, opportunities and threats inevitably to better understand the current situation. This SWOT analysis shows us that despite the many threats against the fast food industry, McDonald's has a strong position in the global market. According to the Five Force model, the strongest force is among the most competitive vendors in the industry. This SWOT analysis reveals many of the strengths that McDonald stands at the forefront of the fast food industry. Despite the weaknesses, they can all be reversed according to McDonald's victory plan, which was realized with the hiring of Jim Cantalupo.

In terms of core capabilities, this company is what makes it so successful today. For more than 10 years, one of the key success factors for the brand has been its business rights, which account for about 60% of total sales. Another success factor is the strategy to win. This is a plan that focuses on five key drivers of success. People, products, places, prices and promotions. The first factor is the people or employees of McDonald. McDonald's strives to work well with employees during rush hour to avoid overwork and to reward employees with special jobs.
Recently, McDonald has had less results than last year. Its revenue growth slowed, and before April 2003, store sales fell for the 12th straight month. Unsurprisingly, as a result, McDonald's reported a loss of $ 343.8 million in the first quarter of 2003. This situation is thought to be the result of a number of factors, including increased competition, poor governance, weak markets and a lack of response to changing customer and client needs.

Over the years, many problems have arisen for McDonald, but the biggest one is probably poor customer service. The 2003 Customer Service Index found that McDonald had the lowest customer service rating in the fast food industry and was ranked lower in terms of customer service by the IRS. One of the reasons for this is the high income of employees. McDonald's has the highest earnings rate among its employees. Another contribution to poor customer service is the slow service of the switch. McDonald currently has a fifth speed in the pass window and a 19th in accuracy. If you compare its speed and accuracy with its competitors and remember that McDonald can earn 60% of the revenue from its switches and assume that it loses one percent of the revenue every six seconds behind it. The loss of the McDonald brand is about $ 97,000 per year.

Although McDonald's has been positive about the move, critics are skeptical. It is stated that in the long run they believe it will be difficult to maintain growth and expand margins. Specific concerns include McDonald's ability to maintain current levels of product innovation and competitors' ability to replicate these ideas. Critics have even questioned whether McDonald's recent improvements are a reflection of the market and the dollar, rather than its new strategy. In response, McDonald's officials said they would have to meet their stated goals of sustaining sales and increasing operating income. With the most important question of whether or not, the new move will give McDonald's the key capabilities needed to create a sustainable competitive advantage in the global fast food industry.

Every fast food hamburger chain, including McDonald is forced to respond to a shift in consumer preferences from high-calorie burgers and French fries to healthier ones like delicious sandwiches and baked potatoes. All chains are expected to struggle for years to meet new expectations for consumer health without compromising the original dish.