| Company and Marketing Strategy: Partnering to Build Customer Relationships 41
Chapter 2 | Company and Marketing Strategy: Partnering to Build Customer Relationships 41
products, place, price, and promotion. While Real Marketing 2.1 the five Ps smack of corny corporate speak,
company officials maintain that they have pro- foundly changed McDonald’s direction and pri-
McDonald’s: orities. The plan, and the seemingly simple shift On a Customer-Focused Mission
in mission, forced McDonald’s and its employ- ees to focus on quality, service, and the restau-
More than half a century ago, Ray Kroc, a
rant experience rather than simply providing the 52-year-old salesman of milk-shake-mixing
per year. The new stores helped sales, but cus-
cheapest, most convenient option to cus- machines, set out on a mission to transform
tomer service and cleanliness declined because
tomers. The Plan to Win—which barely fits on a the way Americans eat. In 1955, Kroc discov-
the company couldn’t hire and train good work-
single sheet of paper—is now treated as sacred ered a string of seven restaurants owned by
ers fast enough. Meanwhile, McDonald’s in-
inside the company. Richard and Maurice McDonald. He saw the
creasingly became a target for animal-rights
activists, environmentalists, and nutritionists,
McDonald brothers’ fast-food concept as a
Under the Plan to Win, McDonald’s got perfect fit for America’s increasingly on-the-
who accused the chain of contributing to the na-
back to the basic business of taking care of go, time-squeezed, family-oriented lifestyles.
tion’s obesity epidemic with “super size” French
customers. The goal was to get “better, not Kroc bought the small chain for $2.7 million,
fries and sodas as well as Happy Meals that lure
just bigger.” The company halted rapid expan- and the rest is history.
kids with the reward of free toys.
sion and instead poured money back into From the start, Kroc preached a motto of
improving the food, the service, the atmo- QSCV—quality, service, cleanliness, and value.
Although McDonald’s remained the
sphere, and marketing at existing outlets. These goals became mainstays in McDonald’s
world’s most visited fast-food chain, the once-
McDonald’s redecorated its restaurants with customer-focused mission statement. Apply-
shiny Golden Arches lost some of their luster.
clean, simple, more-modern interiors and ing these values, the company perfected the
Sales growth slumped, and its market share fell
by more than 3 percent be-
fast-food concept—delivering convenient,
tween 1997 and 2003. In
good-quality food at affordable prices.
2002, the company posted its
McDonald’s grew quickly to become the
first-ever quarterly loss. In the
world’s largest fast-feeder. The fast-food gi-
face of changing customer
ant’s more than 32,000 restaurants worldwide
value expectations, the com-
now serve 60 million customers each day, rack-
pany had lost sight of its fun-
ing up system-wide sales of more than $79 bil-
damental value proposition.
lion annually. The Golden Arches are one of
“We got distracted from the
the world’s most familiar symbols, and other
most important thing: hot,
than Santa Claus, no character in the world is
high-quality food at a great
more recognizable than Ronald McDonald.
value at the speed and con-
In the mid-1990s, however, McDonald’s
venience of McDonald’s,” says
fortunes began to turn. The company appeared
current CEO Jim Skinner. The
to fall out of touch with both its mission and its
company and its mission
customers. Americans were looking for fresher,
needed to adapt.
better-tasting food and more contemporary at-
In early 2003, a troubled
mospheres. They were also seeking healthier
McDonald’s announced a turn-
eating options. In a new age of health-conscious
around plan—what it now calls
consumers and $5 lattes at Starbucks,
its “Plan to Win.” At the heart
McDonald’s seemed a bit out of step with the
of this plan was a new mission
times. One analyst sums it up this way:
statement that refocused the company on its customers. Ac-
McDonald’s was struggling to find its identity
cording to the analyst:
amid a flurry of new competitors and changing consumer tastes. The company careened from
The company’s mission was
one failed idea to another. It tried to keep pace
changed from “being the
by offering pizza, toasted deli sandwiches, and
world’s best quick-service
the Arch Deluxe, a heavily advertised new burger
restaurant” to “being our
that flopped. It bought into nonburger franchises
customers’ favorite place and
like Chipotle and Boston Market. It also tinkered
way to eat.” The Plan to Win
with its menu, no longer toasting the buns,
lays out where McDonald’s
switching pickles, and changing the special sauce
wants to be and how it plans
McDonald’s new mission—“being our customers’ favorite
on Big Macs. None of these things worked. All
to get there, all centered on
place and way to eat”—coupled with its Plan to Win, got
the while, McDonald’s continued opening new
five basics of an exceptional
the company back to the basics of creating exceptional
restaurants at a ferocious pace, as many as 2,000
customer experience: people,
customer experiences.
Continued on next page
Parts
» | Marketing: Creating and Capturing Customer Value 3
» | Marketing: Creating and Capturing Customer Value 11
» | Marketing: Creating and Capturing Customer Value 13
» | Marketing: Creating and Capturing Customer Value 25
» | Marketing: Creating and Capturing Customer Value 29
» | Company and Marketing Strategy: Partnering to Build Customer Relationships 37
» | Company and Marketing Strategy: Partnering to Build Customer Relationships 41
» | Company and Marketing Strategy: Partnering to Build Customer Relationships 43
» | Company and Marketing Strategy: Partnering to Build Customer Relationships 51
» | Company and Marketing Strategy: Partnering to Build Customer Relationships 55
» | Company and Marketing Strategy: Partnering to Build Customer Relationships 57
» | Company and Marketing Strategy: Partnering to Build Customer Relationships 63
» | Analyzing the Marketing Environment 65
» | Analyzing the Marketing Environment 71
» | Analyzing the Marketing Environment 73
» | Analyzing the Marketing Environment 77
» | Analyzing the Marketing Environment 79
» | Analyzing the Marketing Environment 81
» | Analyzing the Marketing Environment 85
» | Analyzing the Marketing Environment 87
» | Analyzing the Marketing Environment 89
» | Managing Marketing Information to Gain Customer Insights 97
» | Managing Marketing Information to Gain Customer Insights 99
» | Managing Marketing Information to Gain Customer Insights 103
» | Managing Marketing Information to Gain Customer Insights 109
» | Managing Marketing Information to Gain Customer Insights 111
» | Managing Marketing Information to Gain Customer Insights 113
» | Managing Marketing Information to Gain Customer Insights 115
» | Managing Marketing Information to Gain Customer Insights 127
» | Managing Marketing Information to Gain Customer Insights 131
» | Consumer Markets and Consumer Buyer Behavior 133
» | Consumer Markets and Consumer Buyer Behavior 137
» | Consumer Markets and Consumer Buyer Behavior 141
» | Consumer Markets and Consumer Buyer Behavior 143
» | Consumer Markets and Consumer Buyer Behavior 159
» | Consumer Markets and Consumer Buyer Behavior 163
» | Business Markets and Business Buyer Behavior 165
» | Business Markets and Business Buyer Behavior 175
» | Business Markets and Business Buyer Behavior 179
» What is Eaton’s value proposition?
» | Customer-Driven Marketing Strategy: Creating Value for Target Customers 189
» | Customer-Driven Marketing Strategy: Creating Value for Target Customers 193
» | Customer-Driven Marketing Strategy: Creating Value for Target Customers 197
» | Customer-Driven Marketing Strategy: Creating Value for Target Customers 203
» | Customer-Driven Marketing Strategy: Creating Value for Target Customers 205
» | Customer-Driven Marketing Strategy: Creating Value for Target Customers 207
» | Customer-Driven Marketing Strategy: Creating Value for Target Customers 209
» | Customer-Driven Marketing Strategy: Creating Value for Target Customers 211
» | Customer-Driven Marketing Strategy: Creating Value for Target Customers 213
» | Customer-Driven Marketing Strategy: Creating Value for Target Customers 219
» | Products, Services, and Brands: Building Customer Value 223
» | Products, Services, and Brands: Building Customer Value 225
» | Products, Services, and Brands: Building Customer Value 229
» | Products, Services, and Brands: Building Customer Value 237
» | Products, Services, and Brands: Building Customer Value 245
» | Products, Services, and Brands: Building Customer Value 247
» | Products, Services, and Brands: Building Customer Value 249
» | Products, Services, and Brands: Building Customer Value 251
» | Products, Services, and Brands: Building Customer Value 257
» | New Product Development and Product Life-Cycle Strategies 259
» | New Product Development and Product Life-Cycle Strategies 271
» | New Product Development and Product Life-Cycle Strategies 273
» | New Product Development and Product Life-Cycle Strategies 279
» | New Product Development and Product Life-Cycle Strategies 281
» | Pricing: Understanding and Capturing Customer Value 289
» | Pricing: Understanding and Capturing Customer Value 291
» | Pricing: Understanding and Capturing Customer Value 295
» | Pricing: Understanding and Capturing Customer Value 299
» | Pricing: Understanding and Capturing Customer Value 305
» | Pricing: Understanding and Capturing Customer Value 307
» | Marketing Channels: Delivering Customer Value 339
» | Marketing Channels: Delivering Customer Value 347
» | Marketing Channels: Delivering Customer Value 351
» | Marketing Channels: Delivering Customer Value 367
» | Retailing and Wholesaling 373
» | Retailing and Wholesaling 377
» | Retailing and Wholesaling 379
» | Retailing and Wholesaling 393
» | Retailing and Wholesaling 395
» | Retailing and Wholesaling 397
» | Retailing and Wholesaling 401
» | Retailing and Wholesaling 405
» | Communicating Customer Value: Integrated Marketing Communications Strategy 407
» | Communicating Customer Value: Integrated Marketing Communications Strategy 411
» | Communicating Customer Value: Integrated Marketing Communications Strategy 413
» | Communicating Customer Value: Integrated Marketing Communications Strategy 415
» | Communicating Customer Value: Integrated Marketing Communications Strategy 429
» | Communicating Customer Value: Integrated Marketing Communications Strategy 433
» | Advertising and Public Relations 435
» | Advertising and Public Relations 439
» | Advertising and Public Relations 441
» | Advertising and Public Relations 443
» | Advertising and Public Relations 445
» | Advertising and Public Relations 447
» | Advertising and Public Relations 449
» | Advertising and Public Relations 453
» | Personal Selling and Sales Promotion 463
» | Personal Selling and Sales Promotion 469
» | Personal Selling and Sales Promotion 471
» | Personal Selling and Sales Promotion 481
» How is the sales force at Nestlé Waters structured? outsells its top competitors.
» | Direct and Online Marketing: Building Direct Customer Relationships 495
» | Direct and Online Marketing: Building Direct Customer Relationships 499
» | Direct and Online Marketing: Building Direct Customer Relationships 507
» | Direct and Online Marketing: Building Direct Customer Relationships 509
» | Direct and Online Marketing: Building Direct Customer Relationships 515
» | Direct and Online Marketing: Building Direct Customer Relationships 525
» | Creating Competitive Advantage 527
» | Creating Competitive Advantage 529
» | Creating Competitive Advantage 537
» | Creating Competitive Advantage 549
» | The Global Marketplace 551
» | The Global Marketplace 553
» | The Global Marketplace 561
» | The Global Marketplace 573
» | Sustainable Marketing: Social Responsibility and Ethics 581
» | Sustainable Marketing: Social Responsibility and Ethics 583
» | Sustainable Marketing: Social Responsibility and Ethics 587
» | Sustainable Marketing: Social Responsibility and Ethics 595
» | Sustainable Marketing: Social Responsibility and Ethics 603
» | Sustainable Marketing: Social Responsibility and Ethics 605
» | Marketing by the Numbers A21
» | Marketing by the Numbers A27
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