Check out this video and paper on omnichannel marketing from BRP and Radial:
Check out this video and paper on omnichannel marketing from BRP and Radial:
McDonald’s is revamping its global strategy in hopes of stimulating sales and profits. Some of its planned changes are substantial. And, it has offered an honest self-assessment in a very public way. [Many firms do not even acknowledge their weaknesses outside of the company itself.]
Just a few days ago, the fast-food giant issued a major press release, “McDonald’s Unveils New Global Growth Plan.” Here are some highlights:
“The growth plan focuses on enhancing digital capabilities and the use of technology to dramatically elevate the customer experience; redefining customer convenience through delivery; accelerating deployment of ‘Experience of the Future’ restaurants in the U.S.; initiating a new 3-year target for cash return to shareholders; and establishing new financial targets for sales, operating margin, earnings per share, and return on incremental invested capital.”
“The strategy connects key tenets of the brand to well-defined customer groups built around three pillars: (1) Retaining existing customers by fortifying and extending our areas of strength. Through a renewed focus on areas such as family occasions and food-led breakfast and transforming the experience in our restaurants, McDonald’s will build on the strong foothold it has and grow the core of the business. (2) Regaining customers lost to other QSR [quick-service restaurants] competitors. As customers’ expectations increased, McDonald’s simply didn’t keep pace with them. Making meaningful improvements in quality, convenience, and value will win back some of McDonald’s best customers. (3) “Converting casual customers to committed customers by being more present in underdeveloped categories and occasions and competing more aggressively given the untapped demand for McCafé coffee and other snack offerings.”
“We have fundamentally changed the trajectory of our business over the past two years. Now, we are ready to build on our momentum and transition to focus efforts on profitable, long-term growth. We are building a better McDonald’s, one that makes delicious feel good moments easy for everyone, and the moves we are making will reassert McDonald’s as the global leader in the informal eating out category.”
“To bring customers into the restaurants, McDonald’s must matter to people and be relevant in their daily lives. To do so, McDonald’s is accelerating digital capabilities and enhancing its use of technology in restaurants, in the drive-thru, and on the go. The result is a more stress-free, personalized experience, enhanced by technology and world-class hospitality that puts customers in control.”
“One of the most significant disruptions in the restaurant business today is the rapid increase in delivery . Because of our extraordinary footprint, McDonald’s is uniquely positioned to become the global leader in delivery. In McDonald’s top five markets (U.S., France, the U.K., Germany, and Canada), nearly 75% of the population lives within three miles of a McDonald’s. Currently, McDonald’s is experimenting with different delivery models including partnering with third parties for ordering and fulfillment throughout the world.”
“Experience of the Future restaurants elevate the customer experience at McDonald’s to provide a more convenient, more personalized, and more enjoyable visit. It leverages the convenience and technology of kiosk ordering and table service, increasing functionality of the mobile app to enhance the enjoyment of our food and the hospitality of the McDonald’s crew, all in a more modern, more exciting restaurant environment.”
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This post is a nice complement to our discussion about Apple’s recent performance. How much do industry life cycles affect firms in those industries?
“Every industry goes through a life cycle that begins at the startup phase — that is, when the industry first comes into existence. Obviously, some industries’ startup phase was decades or even centuries ago, such as homebuilding or restaurants. However, even within those types of industries, there are special niches that can continually come into existence — think of them as sub-industries. For example, while homebuilding as a business has been around for centuries, environmentally friendly homebuilding using reclaimed or recycled materials and solar energy is a relatively new niche within that industry.”
“Next can come a phase of rapid growth. Inspired by the success of industry pioneers, other entrepreneurs may follow suit and launch companies in that field. Eventually, the industry reaches maturity. It may not be brand new and exciting anymore, but it can also offer stability and a good chance for business success.”
According to Lesonsky, there are three types of industry decline:
Rapid Decline. “Often this is precipitated by some drastic event, or combination of events — such as the way the travel industry, and in particular travel agencies, declined after 9/11. At the same time, the growth of online travel search and booking sites helped those who needed to travel to book their own plans without an agent.”
Slow Decline. “Slow declines can be the most common type of industry transformation. They can occur for many reasons, including a change in target market demographics or attitudes, new inventions or technology, or dwindling resources that the industry needs. Print publishing is an industry in slow decline: Although print magazines and newspapers still exist, online publishing, which costs less and is more accessible, has made print less profitable.”
Reinvention. “Sometimes an industry starts to decline, then reinvents itself, leading to a new lease on life — and new opportunities for profits. TV broadcasting is reinventing itself after a slow decline due to the popularity of online video and streaming services. Traditional broadcast networks are joining the game by offering at least some of their content to these services.”
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Interested in becoming an entrepreneur? The potential may be great; but the risks may be high too. Below, you will find an entrepreneur’s quiz.
We have posted several times on entrepreneurship, such as:
Now, here is a quiz for YOU to take. Do YOU have the right stuff to be an entrepreneur? The quiz is by Steve Strauss, writing for TheSelfEmployed.Com:
“Ask yourself: Does the idea of leaving your job and paycheck and benefits frighten you more or excite you more? Excitement and fear are my beginning criteria because starting a business is not for everyone and you better be darned sure that you will like it before risking a lot of time, money and your reputation on a new idea. But let’s drill down a little deeper. To help, I have created a short quiz. It will help you evaluate your qualifications. (But please, as you answer, be honest with yourself. It doesn’t help you at all to get an answer ‘right’ if it really is not true for you.)”
Click the image to access the quiz!
In May 2015, Coca-Cola introduced a new “One Brand” strategy for its Coke-branded soda in several countries around the world. As reported by Larry Lucas (of Vivaldi Partners Group) for Forbes:
“Coca-Cola launched a bold shift in branding, called the ‘One Brand’ strategy in 11 markets, starting with the U.K. The strategy calls for a unification of marketing under the Coca-Cola master brand for all its product sub-brands, including Diet Coke, Coca-Cola Life, Coca-Cola Zero, and regular Coke.”
“The decision and launch is an important one for Coca-Cola, as it is for any marketer who manages a larger brand or product portfolio. It offers the potential for greater clarity, synergy, and leverage. Advertising the four products together under the Coca-Cola brand communicates the breadth of offerings from full-calorie to low-calorie or zero-sugar versions and helps clarify consumer choices, which is important when only five percent of consumers today know that Coca-Cola offers lower-calorie and sugar-free products. It also creates brand-building synergies by bundling all marketing spend on a single brand, while driving greater penetration and trial of the product sub-brands. Finally, it creates leverage, with major initiatives such as the new multimedia platform Coca-Cola Journey benefiting the overall portfolio.”
But is this approach a good one for other companies to follow? Again, consider Lucas’ observations for Forbes:
“Should other marketers consider a similar move? Many companies are leveraging master brands through line extensions and integrated marketing programs. Vivaldi CEO Erich Joachimsthaler and Prof. David Aaker developed a spectrum that defines a continuum of strategies; at one end is the ‘House of Brands,’ where each brand has its own brand identity, often representing a separate demographic, need, or occasion. Head & Shoulders and Pantene, both owned by Procter & Gamble, are good examples. On the opposite end of the spectrum is the ‘branded house,’ where all products are marketed under a single brand. For example, all BMWs are BMWs regardless of the series.”