Golden arches, vibrant colors, and fast service is what has made McDonalds who they are today; a multimillion dollar company. When people think about an organization that has achieved success, they should take a look at how McDonalds started. It was McDonalds, who put fast food on the market and gave millions of people a place to dine for an inexpensive price. McDonalds provided advertising and marketing for their product, which one them popularity all over the world. It is also known for lawsuits that indicate their misleading production of sales. Regardless of evidence presented against McDonalds, it is still the most popular fast food chain to date.
McDonalds started with two brothers, Richard “Dick” McDonald and Maurice “Mac” McDonald. The brothers noticed how popular the food industry was, and decided to take their loan of $5,000.00 and buy a hot dog stand (McGrath). A few years after seeing how much of a profit they made, the McDonalds brothers moved to San Bernardino and opened McDonalds Barbeque. Wanting a faster way to get their food out to the customers, Richard and Maurice swapped out indoor seating and various items off the menu, and decided to have a more machine based kitchen with only a few items on the menu. By doing this, the McDonald brothers saved a good amount of money, and kept the customers happy.
Seeing how beneficial partnering with the McDonald brothers could be, Ray Kroc, a travelling milkshake mixer salesman, pitched his franchising idea to the brothers. Apparently the brothers did not see Kroc’s vision and turned his first offer down. It was not until Kroc lowered his price for his franchise idea, and told the brothers that he would do all of the work. The brothers then accepted his offer and the McDonalds franchising began.
Kroc opened up his first location in Des Plaines, Illinois. He wanted to make sure the process went as smooth as possible before he started launching other locations. After buying the McDonald brothers name, Kroc stood by and watched the franchise become a household name. Aside from these three men, who took the time and resources to build McDonalds, it also took branding to help McDonalds sore.
Public relation goes hand and hand with businesses attempting to market themselves to potential customers, or buyers. The public relations team that works in conjunction with McDonalds has done some amazing things to push this franchise to the forefront. The success of McDonalds comes from the vast amount of campaign advertising. Using catchy slogans like “I’m Loving It” helps to differentiate McDonalds from other competitors. It also helps to capture the interest of the younger generation, as well as the older generation.
Take for example the way McDonalds public relations team markets to families with children. McDonalds became popular by focusing on making their business family friendly with a focus on children. It was also beneficial and pocket friendly for McDonald’s organizations and consumers. The public relation teams came up with eye-catching advertisements to lure children to their establishment and give parents a break from cooking. It was also helpful that the growing number of McDonald’s restaurants were present in local communities. The food that was served to the children also gave McDonalds a good name.
Ever wonder how McDonalds became increasingly popular with children? An outing to McDonalds was more than just a meal for little ones; it was the adventure of being young. Children had the option of ordering off of a menu that catered towards them. Happy meals, which launched in June 1979, are one of the popular items on the McDonalds menu. The meal comes with a hamburger, cheeseburger, or chicken nuggets, a small order of French fries, and a drink (www.wikipedia.com). The price averaged from $3.00 to $4.00. This was the perfect size for children and also the perfect price for parents. If the price for the entire meal was not enticing, McDonalds offers a small popular toy for children.
Children love toys, and McDonalds took note of that. The toys that were provided in the happy meal proved to be a great contribution to the franchise. Children would quickly reach for the toy in the happy meal, before they even began eating their meal. McDonalds gave out toys that were popular at that particular time. A few toys that were featured at McDonalds were Hot Wheels, Hello Kitty, Barbie, and the popular Beanie Baby toy. By giving a toy along with a child’s meal, gave families a reason to visit McDonalds.
Another exciting feature that McDonalds has for the children that dine at their establishment is McDonalds Playland. Building a Playland in McDonalds allowed children to have fun outside of the house, and be around other children. Having the ability to take off their shoes and climb up inside a playground is ideal for a young child. It is also great for parents or caregivers who need a small break from entertaining their young ones.
Ronald McDonald is also a great feature McDonalds used to advertise their products. Ronald McDonald is a clown character used as the face of McDonalds. This clown is shown in McDonald’s commercials, full of joy and smiles when he is around children, while the children are equally happy to see him. Ronald McDonald is an inspiration to young children and puts smiles on their faces, whether sick or healthy.
On the other hand, with the large amount of press around McDonalds, there has bound to be a small setback. Most people have visited McDonalds in their lives; whether it is as a child eating Happy Meals, or as an adult ordering a Quarter Pounder with cheese. Even vegetarians had choices at this fast food chain. McDonalds came out with the McVeggie Burger. This was a perfect addition to McDonalds; because now vegetarians were able to have a complete meal; a veggie burger, French fries, and a drink. Little did vegetarians know, McDonalds world famous French fries had a hidden ingredient.
McDonalds French fries had an interesting, and appealing taste. This was because of the oil they used to fry their potatoes. According to McDonalds Corporation, the French fries that they produced were vegetarian and only cooked in vegetable oil. It was not until a Hindu man questioned McDonald’s methods of preparing their famous fries, that the real ingredients found in McDonald’s fries came out. A spokesperson from McDonald’s Corporation shed light on what “natural flavoring” meant in their ingredients. It was said that the vegetable oil used to prepare the fries and hash browns was not pure, but contained essence of beef for flavoring purposes (McCann, 2002). A small amount of beef fat was used in the initial process of cooking the French fries before the frozen product hit the fast food chain. This contradicts the claim McDonalds had by saying their French fries were “vegetarian friendly”.
McDonalds now faced a lawsuit for failing to advise customers of the use of beef flavor in their French fries. This fast food chain over the years repeatedly said only vegetables oils were used in their French fries and hash browns. This was appealing to vegetarians and McDonalds franchised in India because they did not consume any form of beef product. With the recent lawsuit that lingered over McDonalds head, they apologized for the misunderstanding consumer had about the French fries and they agreed to donate an estimated $10 million to Hindu and other groups, in the hopes of settling the lawsuit.
Even after the $10 million lawsuit that McDonalds had to shell out, they still did not make their French fries vegetarian friendly. The ingredients are now listed as such: Potatoes, vegetable oil (canola oil, hydrogenated soybean oil, natural beef flavor [wheat and milk derivatives]*, citric acid [preservative]), dextrose, sodium acid pyrophosphate (maintain color), salt. Prepared in vegetable oil (Canola oil, corn oil, soybean oil, hydrogenated soybean oil with TBHQ and citric acid added to preserve freshness). Dimethylpolysiloxane added as an antifoaming agent.
CONTAINS: WHEAT AND MILK.
(Natural beef flavor contains hydrolyzed wheat and hydrolyzed milk as starting ingredients) (Nutrition.Mcdonalds.com/Getnutrition/ingredientslist.pdf).
Another drawback that McDonalds encountered was when the documentary Supersize Me came out on DVD. The documentary was about a man named Morgan Spurlock who wanted to prove just how unhealthy it was to eat fast food. Unfortunately for McDonalds, they would be the target of his theory. Spurlock set out to eat McDonalds for breakfast, lunch, and dinner with only one rule; if a McDonald’s worker asked him if he wanted his meal to be supersized, he was able to do so. After doing this for only 30 days, Spurlock noticed a changed in his heath and mood. Spurlock gained around 25 pounds and his cholesterol went from 168 to 230. This was just the start of the negative effects McDonalds had on a person’s body and well-being. Depression also was an issue while Spurlock was doing the 30-day challenge, and he also became ill in the process.
With these alarming numbers, and the fact that McDonalds causes weight gain and illness, it is shocking that parents still take their children to this establishment and allow them to partake in high calorie foods such as French fries and chicken nuggets. In recent studies it was said that McDonald's has been under intense scrutiny for the nutritional quality of its food and its marketing to children (York, 2011). Obesity and or overweight children are still a growing concern in the United States. According to Centers for Disease Control and Prevention, childhood obesity has more than tripled in the past thirty years (Centers for Disease Control and Prevention). Fast food chains, especially McDonalds have meals that promote obesity in our nation, but they cannot take the blame for the amount of fattening products young children consume.
It is up to the parents to control what their children are eating. Year’s back, McDonalds did not have food options like they do now. When a child ordered a kids meal, it came with processed foods with a high caloric count. Now McDonalds provides options for children and parents to choose. In recent years, McDonalds introduced apple slices as a healthier alternative to French fries.
Public relation ideas are also noticeable in charitable work. McDonalds has branched out into providing a non-profit organization, The Ronald McDonald House to help families with ill children. This non-profit organization started when a football player in Philadelphia, by the name of Fred Hill had a 3-year old daughter who was diagnosed with leukemia. In 1974, Fred Hill along with the help of his Philadelphia Eagles teammates had a fundraiser to raise money for the Leukemia Society of America, which in turn gained interest from McDonalds. Seeing a great opportunity to market them, and help children in need, McDonalds proposed a promotion agreement. If well-known footballs players promoted McDonalds new Shamrock Shakes, a portion of the money would go to Ronald McDonald house. With great success along the way, Ronald McDonald house was able to open 302 establishments all over the world.
Ronald McDonald House provided families with a place to stay while their child undergoes treatment for their illnesses at local hospitals. The cost is very minimal, and Ronald McDonald House provides meals, and playrooms on top of their already generous contribution. In some ways profit and non-profit organizations are similar. Both need to produce money in order to survive. The difference between Ronald McDonald House non-profit organization and another organization that is for profit is the fact that you are giving to your community by doing good. Also, a for profit corporation has investors that come together, providing money for the start up and giving ownership to a particular person. As far as McDonald’s non-profit organization, they do not have one particular owner; instead they only have people who provide funds.
McDonalds has seen its share of good and bad times. They have been the talk of many heated debates, from childhood obesity to undisclosed ingredients, yet still produce mind-blowing numbers. McDonalds has been in the lime light for over 50 years and continues to build their franchise. Paying attention to detail and seeing what the consumer likes, gives the fast food chain an advantage over other competitors. Advertising has also helped McDonalds surpass their competition, by being creative and appealing to an audience.
Catchy slogans, fun toys, and discount prices on top of inexpensive menu items brought thousands to the numerous drive-thru and fast food lines. In order to appeal to both young and old, McDonald made their service speedy and their prices low, and for the children they introduced fun features for entertaining. With their continued success, McDonalds franchise will be around for years to come.
References
Childhood Obesity Facts. (n.d.). Retrieved from
http://www.cdc.gov/healthyyouth/obesity/facts.htm.
McCann, H . (2002,). McD settles suits over French fries. Chicago Sun -
Times,p. 64. Retrieved March 09, 2012, from ProQuest Newsstand. (Document ID.
126099831.
McDonald's USA Ingredients Listing for Popular Menu Items (n.d). Retrieved from
nutrition.mcdonalds.com/getnutrition/ingredientslist.pdf.
McGrath, J. (n.d.) How Mcdonald’s Works. How Stuff Works. Retrieved March 10,
2012, from http://money.howstuffworks.com/mcdonalds1.htm
York, E. (2011). Happy Meal to tilt at obesity :McDonald's to add
fruit or veggies, downsize the fries. Chicago Tribune,p. 1.1. Retrieved March 09,
2012, from Chicago Tribune. (Document ID: 2407474241).