McDonald’s Research Proposal

McDonald’s Research Proposal

Alesha Riley, Susana Gallegos and Hatem Ben Aghil

MKTG6294 Professor Lassk

Background Investigation

McDonald’s is the largest, by revenue, fast-food chain in the World serving approximately 70 million customers daily in over 100 countries with approximately 36,900 restaurants (Harding, 2018, para. 14). In 2017, McDonald’s brand value was estimated to be $97.7 billion US dollars, the most valuable fast food brand in the world (Statista, 2018). McDonald’s signature product is the hamburger. However, their menu also includes french fries, chicken products, wraps, soft drinks, milkshakes, and desserts. As a response to changing customer preferences and negative criticism because of the unhealthy food that McDonald’s offers, the company added healthier items, such as fish, smoothies, and salads to their menu. As customer preferences shift to healthier food, especially with the younger generation, McDonald’s is trying to transform its “junk food” consumer perception to that of a healthy fast food establishment (Trefis Team, 2017, para. 1). In 2014 McDonald’s sales slumped due to negative guest traffic from customers opting for healthier food options (Trefis Team, 2017, para. 2). Millennials are the largest generation in the U.S., with approximately 75.4 million millennials (Trefis Team, 2016, para. 2). However, according to the company’s own internal research, only one in five millennials has tried a Big Mac, the company’s flagship product (Jargon, 2016, para. 1). Millennials do eat fast food, however; they tend to gravitate towards fast casual dining. McDonald’s has built their business around serving cheap food quickly. Food made with fresh ingredients, such as fresh patties instead of frozen patties, tends to be more expensive and takes longer to prepare. This goes against the “cheap and fast” fast-food chain business model (Trefis Team, 2017, para. 2). Millennials are also socially conscious and seek brands that give back to their communities. Jose Duenas, EVP of Marketing for Olive Garden, noted: “Millennials want to feel good about the choices they make and that extends to their dining habits” (Spector, 2017).  According to a 2017 poll conducted by Morning Consult, 26% of millennials believe that McDonald’s has a negative impact on their community (Piacenza, 2017, para. 3).

Problem Definition

           McDonald’s management team need to develop a marketing strategy to increase market share with the millennial generation. The marketing strategy should include re-innovating their menu to introduce fresh and healthier food options that will appeal to millennials while keeping their fast- food affordability and quick service model. The company also needs their marketing to reflect their community involvement as well as diversity and inclusion efforts.

The purpose of this study is to understand the millennial generations eating habits and community involvement to create healthier options on their menu while remaining cost efficient with quick service. The research objectives are as follows:

•    To assess what menu items millennials are interested in seeing on McDonald’s menu.

•    Understand millennial consumer perceptions of McDonald’s.

•    To gather millennials perception of McDonald’s current community involvement and identify if other types of community involvement are more important to millennials.

Despite the highly controversial brand imaging that proceeds the fast food giant, McDonald’s has consistently dominated this industry. McDonald’s management team needs to develop a marketing strategy to increase market share with the millennial generations. The strategy should include re-innovating their menu to introduce fresh and healthier food options that will appeal to millennials, while keeping their fast-food affordability, along with its quick service model.

    The purpose of this study is to understand the millennial generation and their fast-food eating habits to create healthier menu items, all while remaining cost-efficient, with quick service.

Research Design

        This research designed to be descriptive research. The study deal with millennials generation as a corresponded group to develop a marketing strategy to increase market share for McDonald's company. The quality of service that given to the customers (millennials) is essential not just for the consumers but it is also crucial for the service providers too (Brandi, J., 2001). The consumer satisfaction recommends that the quality of service is more critical than the products that offer by businesses. Consumers (millennials) get satisfied primarily due to the food quality and then is a psychological effect on their preferences when they select the particular place to eat (Chilisa, B., 2011). The online survey is the most appropriate method to communicate with millennials. The interactive technologies and internet are favorite tools for inspiring Millennials to be active online and allow them to create and interact with the organization in the world.   

      Millennials have access to the internet and digital media on a daily basis. The mobile phones are the best way can communicate with millennials. Mobile devices are a standard tools for millennials; 94 percent in the U.S. own cell phones and 97 percent of millennials own a laptop or computers (Marketing Breakthroughs Inc. 2008).

        The reason that chooses the mobile survey is easy to reach the audience who they frequently use their mobile devices. Mobile surveys are easy to manage by sending the target group(millennials) an email with the link to download the app, or the survey can be done for the mobile internet. Moreover, mobile survey more adaptable than online survey in that the target group (responders) write notes or send pictures. Mobile survey very helpful if the mobile survey required specific tasks to be done (qSample, 2014, para. 3).  

Sampling

The sample unit for a research study is millennials generation as a corresponded group to develop a marketing strategy to increase market share for McDonald's company (HubSpot, 2012, para. 1). The sampling technique that using in this study is non-probability technique.  Since the population is large, the study will rely on convenience sampling technique. The researcher chose the convenience sampling because it is easy, fast, and inexpensive. Meanwhile, we don’t have a complete list of the population from which the sample will be select. This research base on incidence rate for actual of the detriment population of millennials generation. The sample size directly affects how accurate the findings are. The more the sample size, the higher accuracy results the study has. In this research, the method to determine the sample size needed is an arbitrary size or percentage of the population (HubSpot, 2012, para. 3). Also, the research will base on online invitation survey which is each person will be emailed to take the survey.