McDonalds & Starbucks Strategy Harvard Case Solution & Analysis

McDonalds and Starbucks Strategy

Marketing Initiatives by McDonalds

McDonalds has adopted various marketing initiatives, but one of the vital and dominant initiative is the efficient utilization of the social media particularly Facebook. They have offered various schemes and programs for the customer via Facebook platform in the form of discounts, multiple packages and so on. Other brands also have utilized the social media factor for years, but McDonalds conducted in a way that it became one on the dominant factors. This implementation of this initiative provided McDonalds various benefits in the form of increased sales and customers. In order to change customer’s perception and taste, they have recently taken the coffee initiative, which helps them to strengthen the customer base (Stephens, 2011).

Marketing Initiatives by Starbucks

Starbucks is one of the leading coffee chains in the world. One of the biggest initiatives that Starbucks has adopted was spreading coffee aroma inside the restaurant that in turn attracted customers to enter in the restaurant and enjoy the coffee. They have been able to promote their brand within the coffee industry efficiently and effectively. Starbucks also took various marketing initiatives to gain competitive advantage and it has implemented mobile marketing recently, which proved to be one of the vital digital marketing initiatives for the purpose of increasing the sales and strengthening customer’s base (Gonzalez, 2014)

McDonalds Domestic Market Approach

Usually, McDonalds captures the local market via related diversification strategy. For instance, they offer rice with grilled chicken, ginger, onion and salad. All of these ingredients make the meal attractive for customers, which is the reason why McDonalds focus on the fast food industry in America. At domestic level, McDonalds launches various food menus for its customers.

Starbucks Domestic Market Approach

Starbucks ensures the highest quality of products for customers so as to capture the domestic market. Their restaurants are friendly and support every community without any discrimination. One of the efficient approaches is to maintain the strong customer base loyalty. Starbucks human resource management approach focuses to provide a better network and building a positive relationship internally and externally with suppliers (Rippin, 2007).

McDonalds Strategy

McDonalds Corporation is the leading fast food chain in the world. They are competing in an industry where there are other players as well like Burger King Worldwide Inc., Yum! Brand Inc., Subway, Wendy’s Company, etc. Apart from offering services in the fast food industry, they are also providing services for vegetarian customers as well. There are various factors that are involved in McDonald’s success globally but few of them include: Brand Focus, recognizing importance of products, capturing market opportunities, importance of small markets and taking customer’s feedback (Jargon, 2012).

Brand Focus: McDonalds brand is purely associated with hamburgers. They are able to utilize their brand image drastically at both domestic and global level. This is one of significant factors for McDonalds to gain competitive advantage and keep their dominance in the world.

Recognize importance of products: Every industry in the world has customers that are keen to use the products and services as per their liking. It is up to the firm how they identify those products and market. McDonalds has been very effective in identifying the products. They have identified customers that keen are to eat fries, snacks and other related items (Bruce, 2011).

Capture market opportunities: McDonalds is famed for offering cheap and affordable prices for the customer in the United States. With a dramatic increase in the growing middle class, they are targeting more customers at all regions worldwide.

Consider the importance of small markets: Unlike other organizations, McDonalds is considering the importance of smaller markets and to recognize itself for the future. They are targeting customers in both developed and developing countries.

Customer’s feedback: McDonalds is giving importance to the customers at a certain level. It helps a lot in launching new products in the fast food industry as per the taste of customers.

Starbucks Strategy

Starbucks has a strong market position both at domestic and global level. Their strategy comprises of maintaining highest quality of products for customers. Usage of technology and mobile outlets creates a positive impact on the overall brand image. Starbucks facilitates its customers by implementing “Starbucks Apps” in apple and android’s software. Starbucks operates all around the world at the location that suits the business. One of the most common strategies that Starbucks have followed from the beginning is “Production Differentiation”. They usually offer premium mix of products, coffee beverages and best customer service that is focused on creating a premium brand image. Starbucks also adopted strategy based on the strategic alliances and elegant acquisition to further strengthen the brand image.................

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