McDonald’s Business Model has been a source of inspiration to a number of fast food restaurants all over the world; it has single handedly transformed people’s perception of a family restaurant. This paper seeks to explore how McDonald’s has achieved such a massive brand loyalty throughout the world. The paper begins by introducing the fundamental aspects of McDonald’s strategy for promotion of brand loyalty. The consecutive sections discuss issues such as complaint handling and grievance management, the paper also provides suggestive actions which are intended to further improve the company’s brand loyalty.
Mc Donald’s Strategy for Promoting Brand Loyalty Introduction Since its inception in 1973 McDonald’s has been on a massive expansion spree, after achieving domestic expansion McDonalds has been steadily attaining a foothold in the international market and presently it even has restaurant’s in countries which are culturally distinct such as China and India. For McDonald’s the first step towards achieving brand loyalty is to achieve brand recognition which has been achieved through innovative promotional strategies.
Understanding customer needs is vital for attaining customer satisfaction so McDonald’s invests in extensive research in a potential market before opening up a restaurant; the company’s business mantra “Think global act local” has helped the company to gain immense popularity among consumers (Mujtaba. 2007). Catering to Customers Needs Food Habits are a part of country’s culture therefore McDonald’s performs extensive research in prospective markets to determine people’s preferences.
So in India beef is not served at any of the 60 restaurants as beef is unpopular in India due to religious reasons. Attention to socio cultural environment of a market helps in proper understanding of customer needs and this in turn helps McDonald’s to provide products that satisfy these needs. Price is an important determinant of customer satisfaction so McDonald’s attempts to make the price tag on its burger to both the middle and the upper-class (Mujtaba. 2007).
Handling Customer Complaints Complaint handling is an important component of customer retention, if customers views or complains are considered they feel privileged and they will want to return to you. A customer is free to post complaints regarding any aspect of McDonald’s product and service on the company’s website. This ensures that customer is able to put his complaint through to the top administration department. Suggestion for improvement
By enhancing its best dwals menu McDonald’s can further increase its bran loyalty. In India about 5 to 6 items are available on the happy price menu, if more varieties are added to the happy price menu the company will undoubtedly gain more brand loyalty. References Bahanudin G Mujtaba. (2007). McDonalds Success Strategy And Global Expansion Through Customer And Brand Loyalty. Journal of Business Case Studies. From <http://www. cluteinstitute-onlinejournals. com/PDFs/115. pdf> Accessed on December 15, 2008 .