McDonalds is the world’s biggest and well known fast feeder by sales. Its universal sales increased by over 5% last year as compared to 2010. It has also been rated as the sixth best brand in the world when matched to its yearly revenue. In terms of advertisement, it is touted as the 26th biggest advertiser in the United States of America.
It has numerous locations in over 119 nations that serve over 60 million people in a single day. However, over the years there has been a negative trend that has developed in the company. This essay points out that the brand image of the company, a vital element in consumer behavior, has continued to wane over the years. Obviously, there are some important elements that the company seems to be ignoring.
It is important for companies to match their revenues to the quality of services that they offer their clients. Consumer behavior is an important element to be considered and clients have to be respected and treated as number one stakeholders. Basing on this background, in as far as the revenue that this company gets is too good, its reputation is slowly dwindling.
Evidently, its brand image does not rhyme with its levels of sales. According to those people who relate closely to the company, the internal tracking procedures point that the company continues to perform poorly in terms of quality when compared to its competitors. This points out at the failure of the company to maintain its quality services with the increasing sales.
Consumer behavior is important in marketing especially towards the formulation of strategies needed to manage a company’s operations (Schiffman, 2009). It describes the well known attributes that customers hold towards certain offerings of a company, their orientation to the products and services, offered patterns of purchase as well as many other elements that determine purchasing and seen as essential towards the success of any company.
There are factors that have elevated McDonalds brand image to the level it is today. These are: The perception of consumers on the quality of food offered, sustainability practices, condition of stores, Value prices which are affordable to all, expansion of working hours to cater for the late night shoppers, creation of lounge areas, and the Creation of drive throughs. This seems to meet the varying needs of millions of clients.
The above factors are vital when studied under consumer behavior. Perhaps what practitioners and academicians in the field are to concern themselves with is whether revenue is important than brand image or not.
This arises out of the fact that while McDonald’s boasts of its high revenues; its brand image has continued to dwindle over the years. Basically, what is obvious is the fact that no company should pride itself over the high sales it makes while ignoring the feelings and needs of its customers. McDonald has to strive to do everything possible to ensure that its sales match its image.
Previously conducted programs of research suggest that many well performing organizations tend to lose their footing when they start to experience high sales than before. This is the case of McDonalds. Their strategies appear to change and in the end lose their image. What follows later is increase in client turnover rate leading to the failure of such organizations.
Schiffman, L. Consumer Behavior. London: Prentice Hall, 2009. Print.