Marketing Case Study

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Q1) What are the problems McDonald’s is facing? (Analyze McDonald’s marketing environment and discuss the components in the marketing environment that you think have contributed to McDonald’s declining sales) McDonald’s Corp. posted its steepest monthly decline in U.S same-store sales in more than 14 years. It reported sharper-than-expected sales decline in all its divisions in November. The U.S slide was the largest, with sales falling 4.6% from the same month a year ago. One of the most important reasons for McDonald’s big decline is the strong competitive activity within the food industry. Recent years, McDonald has been losing customers. Customers in their 20s and 30s, long a mainstay of McDonald’s business, are defecting to competitor fast-casual chains and to rivals as Five Guys Holdings LLC and Chipotle Mexican Grill Inc. Also, McDonald’s menu cannot appeal to customers and satisfy customer’s needs, especially for millennial generation. The millennial generation has a wider range of choices than any generation before them. These younger diners are seeking out fresher, healthier food and chains that offer customizable menu options for little more than the price of a combo meal. Crain’s Chicago Business reported that McDonald has lost its first-place position as the chain with the most “kid appeal”. Kids in some places learn about nutrition in school, and some already have pretty sophisticated tastes. The Happy Meal toys aren’t enticing for children today. The Wall Street Journal reported that McDonald’s Corp.’s menu may have grown too big to succeed. Its supersized menus have made the McDonald’s kitchen operations increasingly complex and caused longer waits problem for customers. Except the McDonald’s depression in the United State, McDonald’s Corp. is also facing big challenges in other areas of the world such as Asia, Middle East, and African region. In

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