Team Name: The Ardent Arrachers Team Leader Contact Number: 9428030407

IMS CASE CHAMPIONS

This specific case of McDonald’s seniors seems very different and intriguing on account of the
exceptionality of customers and the quotidian activities they have in McDonald's. The current image of
McDonald's is one where the company aims to develop kinship with its customers. This is a classic example
in which Lisa is bewildered as she is vacillating between the image of McDonald’s and relationship with
her customers.

Lisa’s strategy is with respect to a particular group of people, the seniors, since the city has a decent pack
of them. She has used the target marketing strategy with respect to this age group. Her strategy made a
substantial impact to gather more than 100 seniors to grab the offer on that particular day of the month and
they felt a gathering environment which prompted the group to visit every day. Lisa and her team also
evolved enduring relations with their customers. This strategy has prompted an expansion of revenue to the
side even in the slow hours of the day.

Lisa’s strategy likewise incorporates keeping up good relations with customers so that they visit there
normally. The image of the McDonald’s improves as they have a way of thinking to be genial with
customers, which is one of the models of CRM (Customer Relationship Management), i.e., the IDIC model
(Identify, Differentiate, Interact, and Customize). As we see Lisa identifies her customers, separates them
into age gathering, modifies the offer according to customers and afterwards fabricates amicable relations
with them. Even though the negative impact of this strategy exists but it is auxiliary as compared to the
positive impact. Hence it tallies more and smothers the negative one.

Lisa should encourage senior citizens to come and enjoy their meals. According to Ray Kroc, The man
behind McDonald’s prosperity “Look after the customer and the business will take care of itself”. This even
goes into an alliance with McDonald’s objective of QSC&V (Quality, Service, Cleanliness & Value) for
every single customer. Revenue is not a worry as senior customers spend similar to average customer’s
purchase. Moreover, most of the senior citizens leave before noon, this time is generally not favored by the
youths, so this could keep the crowd in check.

She could even come up with an offer that a total purchase of $3 and above, will avail you free home
delivery on your next order. To embellish this offer she would place one of her underutilized employee and
make him dress-up like a clown which is the primary mascot of McDonald’s. He could even carry sundry
McDonald’s toys as a token of love for children and cards with an exhilarating message for the rest of age
groups. This would attract youths as we conducted a survey and found that 68% youth’s preferred home
delivery over dine-in.
Team Name: The Ardent Arrachers Team Leader Contact Number: 9428030407

Home Delivery Offer

32%
Home Delivery
68%
Dine-In

Bingo game is a splendid thought which could bear fruit as it is very popular among seniors. This could
prove to be an effective marketing strategy. Organizing this at a slow time of the day could avoid crow ding
and the existing party room can be utilized for this. This would compensate the cost of longer time
procession of facilities by seniors and even it would generate additional revenue.

Name Assumed Number of Entry Fees Total Additional Prize Coupons Net Profit
Participants income worth

Bingo $75 $5 $375 $250 $125

Game

Table 1.1 Bingo Game analysis

She could even come up with the “Lucky Buddy” offer wherein she could distribute coupons along with
the respective orders. Then three coupons would be chosen on random basis and the lucky folks would get
their meal absolutely free. The winners would be informed via text message.

We have carried out a survey on 100 people in which we intimated them about this offer. We discovered
that 48 people who were not willing to visit McDonald’s on that particular day got excited and showed their
interest to visit McDonald’s owing to this offer.

Let’s say x people visit McDonald’s on a regular basis.

Team Name: The Ardent Arrachers Team Leader Contact Number: 9428030407

Assume their average expense is $3.

Total revenue generated is $3x.

Response to this offer:

Number of people turned up: x+48

Total revenue: 3x+144

Number of winners: 3

Winner would get their meals free = Assumed meal worth $3

Net Revenue: $3x+135

SR. NO. Day Average number of Average Total Money Net

customers (x=100) Expense Revenue returned Revenue

1 Normal Day 100 $3 $300 - $300

2 Lucky Buddy 148 $3 $444 $9 $435

Offer Day

Table 1.2 Lucky Buddy Offer

Team Name: The Ardent Arrachers Team Leader Contact Number: 9428030407

Lisa's hospitality and friendly behavior with her customers is what she should carry forward. It is hopeful
that she will continue the same for future endeavors by maintaining the image of McDonald's. Addition of
all these offers could prove to be a cheery on the cake.