Services: Mcdonald\'s Corporation Is Considered

¶ … Services:

McDonald's Corporation is considered as the leading fast-food restaurants chains across the globe with more than 32,000 franchises in over 140 countries. These franchises offer a standard menu that include food items like chicken sandwiches, hamburgers, French fries, cheeseburgers, milkshakes among others. The company's success and market dominance is attributed to the fact that is has well-established brand which appeals to customers of all nationalities and all age groups. A well-established and strong brand attracts customers to McDonald's restaurants and gives the company an easy access and acceptability in various new markets.

Product design is used in decision-making at McDonald's Corporation to inform the management regarding the suitability of the products and their ability to appeal to customers. Through product design, the company is able to adopt strategies that are fashionable and attractive to customers in a particular region. Since McDonald's places a significant emphasis on developing menus that are based on customer wants, product design serves as a tool that enables the company to respond to the ever-changing customers' requirements ("Marketing at McDonald's," n.d.).

Product design also helps in making decisions regarding the advertising of a product at McDonald's Corporation. For example, during its inception years, the company's advert featured children entering a magical place called McDonald land since its target audience was kids. However, as the company has strived to appeal to all age groups, the product design has enabled it to change its advertisement that currently features middle-aged women entering McDonald's restaurant to try its new caser-salads. Though it seemed the company seemed to be out-of-touch with customers' requirements several years ago, McDonald's product design has helped it to realign itself with modern tastes ("McDonald's 24/7," 2007).

McDonald's products go through a life cycle consisting of four steps i.e. introduction, growth, maturity and decline which are related to market goals, sales and share. McDonald's introduction stage of a product is characterized by television advertisements and other advertising support. During this stage, McDonald's seeks to achieve various objectives including creating awareness, informing customers about the value and benefits of the product and motivating them to try the product. Depending on the market in which McDonald's is launching its product, the promotional and product pricing strategies usually vary because of its market competitors.

The second stage is the growth stage with which the company experiences increased sales of the product, higher profits and more competitors. It's in this stage that the company faces intense and stiff competition from other companies like Starbucks and Burger King. McDonald's is sometimes forced to increase its promotional spending while focusing on the benefits of the product's brand name as a result of competition. Following the increased competition in the market, McDonald's product then enters the maturity stage where the number of potential customers reduces. Being the stage that lasts longer in the product life cycle, the strength of the company's product determines its sales even with the declining profits. The final stage is decline stage with the company has from time to time phased out all products while introducing new ones due to various factors like change in customer preferences.