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MCDONALD, S INTRODUCTION: Mc Donald’s is the world largest chain of fast food restaurants. It is serving nearly 54 million customers daily McDonalds primarily sells ham burger, cheese burger , chicken product, French fries, break fast items ,soft drinks milks shakes and deserts but recently its also began to offer Salads, wraps and fruits. McDonalds are found in 120 countries of the world. HISTORY OF McDonald’s: McDonalds began its business in 1940 with a restaurant opened by sibling DICKS and MAC. MC DONALDS in San Bernardino, CALIFORINA SO DIC and MAC MCDONALS restaurants and Ray Kroc was the founder of the MCDONALDS Corporation.
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Page 1: Mc Donald

MCDONALD, S

INTRODUCTION:

Mc Donald’s is the world largest chain of fast food restaurants. It is serving

nearly 54 million customers daily McDonalds primarily sells ham burger,

cheese burger , chicken product, French fries, break fast items ,soft drinks

milks shakes and deserts but recently its also began to offer Salads,

wraps and fruits. McDonalds are found in 120 countries of the world.

HISTORY OF McDonald’s:

McDonalds began its business in 1940 with a restaurant opened by sibling

DICKS and MAC. MC DONALDS in San Bernardino, CALIFORINA SO

DIC and MAC MCDONALS restaurants and Ray Kroc was the founder of

the MCDONALDS Corporation.

In 1948, they introduced the principles of the modern fast food

restaurants. The presents corporation dates its founding to the opening of

a franchised restaurants by pray Kroc in des Plaines, illinainois on Aprils

15, 1955, the ninth MCDONALDS restaurants overall Kroc later purchased

the MCDONALDS brother equity in the company and led its world wide

expansion with the successful expansion of MCDONALDS into many

international markets, the company has become a symbol of globalization

and spread of

The AMERICAN way of life.

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McDonald’s VISION:-

McDonald’s vision is to be our customer favorite place and way to eat with

inspired people. Who delight each customer with UN matched quality,

service, cleanliness and value every time. We invite you to be the part of

this wining team and give yourself an opportunity to people striving to

create similes on the faces of millions of people every day.

McDonalds MISSION:

I AM IN LOVE WITH IT.

Mission of MC DONONALD is to provide the customer fast food and

beverages with friendly services in clean and convenient location.

PROGRAMME OF MCDONALDS:

Every customer has some expectation from fast food restaurants and the

restaurants try to make their environment according to their expectation.

MCDONALDS has a programmer of CHAMS, which are the six

expectations of costumers from fast food restaurants.

C ----- Cleanliness.

H ----- Hospitality.

A ----- Accuracy.

M ---- Maintains of facility.

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P ---- Product quality.

S ---- Speed of services.

McDonald’s in PAKISTAN:

MCDONALDS the worlds best quick service restaurant was introduced in

Pakistan in the September 1998 at Lahore and now there are 20

restaurants of MCDONALDS in Pakistan in six major cities with a strong

belief in the ray Kroch phrase when you are green you are growing.

In Pakistan Mc Donald’s has an aggressive plan to expand its business in

all other cities of the Pakistan. And in Pakistan it is focusing to provide

friendly and quick services restaurants.

MARKETING MIX FOR MCDONALDS:

I the Pakistan MCDONALDS is try to manage all the four elements (4PS)

of the marketing mix those are PRODUCT, PRICE, PLACE, and

PROMOTION. MCDONALDS is trying to full fill the needs of 4ps to

increase it revenues and and profits and also market share as compare to

the other fast restaurants in Pakistan.

ELEMENT OF MARKETING MIX:

1: Product of McDonald’s

At first MCDONALDS original restaurants in San Bernardino California

served only Ham burger, milk shakes, and French fries,

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But with the passage of time a large no of things are add in the menu of

the MCDONALDS. MC Donald’s world wide menu is broad similar to that

of united states and the big Mac is a product of the Mc Donald’s which is

available in whole world.

Mc Donald’s is also providing their product according to the taste and

cultural issues of the people of different region.

For example, because the Pakistan is a Muslim country and in this country

pork is not served due to Muslim dietary laws and the ham burger is called

the beef burger.

Product of McDonald’s in whole world

In the world Mc Donald’s is offering different product during Break

fast, lunch and dinner timing.

BURGER.

Such as big Mac is the most important product of Mc Donald’s menu some

other important type of burger, are flag ship burger, hamburger and

cheese burger etc. Mc Donald’s is also providing chicken, fish and pork

sand witches.

CHICKEN MC NUGGETS.

They are introduced in 1983, these are small chicken chunks served with

a dipping sauce available in 4,6,10,20 pieces they are made by white

chicken strips introduced in 1955 for a limited time and offer again in 2003.

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Other product.:

Fish Mac dipper.

Mc Rib.

Mc Muffins (for break fast).

Biscuits cookies.

Beverages.

Mc Donald’s primary soft drinks supplies is coco Cola Company Mc

Donald’s is offering also

Cold and hot iced coffee.

Hot and iced tea.

Hot chocolate.

Various juices.

Milk shakes.

Ice cream.

Desserts

Product in Pakistan:

In Pakistan Mc Donald’s is offering different types of burgers nuggets,

shapes, ice cream, French fries, platters etc. And in soft drinks coke

products.

In Pakistan Mc Donald’s is trying to introduce more and more product

according to the taste of the people of Pakistan to attract more and more

customers.

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2:-PRICE

Price is the most important factor of the marketing mix because price

counts much in the sale of the product. Mc Donald’s in Pakistan is also

trying to adjust its prices according to the prices of other competitors in the

fast food field. But the price of Mc Donald’s are little bit high as compare

to the other competitors. The reason of high prices of Mc Donald’s is many

such as costly location, superior services, high govt taxes etc. But the Mc

Donald’s is also trying that its prices are not be to much high that people

can not afford it and most of Mc Donald’s product are also for the people

of the high gentry on the basis of prices Mc Donald’s is offering different

deals such as

Kids deals.

Family deals.

Lunch deals.

Mid Night deals etc.

On these deals Mc Donald’s offer special discounts.

3 PLACEMENTS.

McDonald’s restaurants are present about more than 120 countries and

restaurants are increasing continuously. In the Pakistan there are about

20 restaurants of Mc Donald’s.

LOCATION.IN PAKISTAN:

In the Lahore there are 8 branches of Mc Donald’s at

the best location

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1 in Faisalabad,

1 in the Rosalinda

1 in Islamabad

1 in Hyderabad

7 branches in the Karachi.

Mc Donald’s is trying open the restaurants at such location where there

target customers can reached easily. The target customers of the Mc

Donald’s are people of upper-upper class and upper – lower classes so

most of branches are in upper class market and areas. Two best location

of Mc Donald’s in Lahore are branches of Jail road near the race Course

Park and Main Blue ward.

4:PROMOTION.

Promotion is also an important factor of marketing mix. In the world the

MCDONALDS is using different sources for its advertisement and

promotion. MCDONALDS has for decades maintain an extensive

advertising camping in addition to the usual media (Television, Radio, and

News paper). The company makes significant use of bill board, and

signage, sponsor, sporting events from ranging from little league to the

Olympic game. None the less, television has always played a central role

in the company’s advertising strategy. MCDONALDS has used 23

different slogans in United States advertisement as well as a few other

slogan for select countries and regions.

MCDONALDS is also doing advertisement for attracting the children

because they are a main category of there customers and for this purpose

they are making play group in each restaurants. This is also a good effort

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for the promotion. In the Pakistan MCDONALDS use media excessively

for the promotion for all the times especially when they introduced some

product. For this purpose they give ads in news paper, magazines and

internet.

They are not emphasizing on too much promotion in Lahore and

Islamabad. Because they know that MCDONALDS is famous already in

these cities. They are paying more attention on small cities for there

promotion.

Marketing Environment

Marketing environment means all the forces and factors out side the

marketing that affects the marketing management ability to build a

successful relationship with the target customers.

When the McDonalds started it business in the Pakistan first they have to

consider the market environment of the Pakistan. There are four

considerable factors in the marketing environment of the Pakistan. These

are product, price, place, and promotion.

And other is micro and macro environment factors those have much

influence on the marketing process of McDonalds are discuss below,

1: Competitors

The microenvironment factor has a lot of influence on McDonald. because

the McDonalds is a fast food restaurant chain and it has a large no of

competitors in this field and to tackle its competitors MacDonald’s is trying

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to understanding the needs and wants of the target customers and

providing them the superior services and products.

2: Demographic Environment.

Demographic environment of a country include the study of characteristic

such as age, gender, race, occupation and density of the people of that

country.

So the McDonalds find out and introduced there products in those areas

where there products will be readily accepted. They also studied the buying

power of people their age level and the intensity of population in different

regions. And then McDonalds decided to offer different types of products

satisfying each and every customer of fast food industry.

3: Economic Environment

The economic environment means buying power of the people. The fast

food industry of Pakistan is increasing day-by-day this encourages

McDonalds to start their new outlets in all the major cities of Pakistan.

McDonalds also consider the infrastructure of fast food industry of

Pakistan before starting its operation. The purchasing power of the

individuals was also studied to decide that in which areas they should

open their new outlets.

4. Social and Cultural Atmosphere

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When McDonalds started its business in Pakistan nine years ago people

of Pakistan were not font of eating fast food and McDonalds was not

generating too much revenues at that time but with the passage of time

the interest of people has developed towards fast food and it has become

a culture specially for the high class to go and eat fast food from

expensive restaurants like McDonalds.

As McDonalds is an American base company so it is facing many problems

in Pakistan in its operation. Some times people show hate against it for this

reason. for example , At least 11 people were injured in two explosions in

a KFC and a McDonalds outlet in Pakistan’s southern city of Karachi

4. Political and Legal forces

Political conditions of Pakistan are steady and this promotes the foreign

investors to come in Pakistan and start their business or expand it. For

those companies who are already operating in Pakistan. Government of

Pakistan has imposed restriction for McDonalds to provide Halal food in

Pakistan and McDonalds has to follow that restriction. Also 15% general

sales tax is imposed by government which McDonalds is paying

completely.

SEGMENTATION OF McDonald’s:-

The process of dividing the large heterogeneous consumers market into

smaller Portion is called as segmentation.

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In the same way the McDonald’s is also dividing its markets into the

smaller Segments.

McDonald’s is segmenting its market on the following basis.

GEOGRAPHIC SEGMENTS

DEMOGRAPHIC SEGMENTS

PSYCHOGRAPHIC SEGMENTS

BEHAVIORAL SEGMENTS

1. GEOGRAPHIC SEGMENTATION

Dividing the market into different geographic units such as nations,

countries,

Cities

.

Countries:-

McDonalds is segmenting the consumers of different countries by different

ways.

McDonald’s is introducing the products according to the needs and wants

of the countries and its culture.

NATIONS:-

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McDonald’s also take care the nations and their beliefs such PAKISTAN is

the

Muslims countries so the are introducing only halal foods here.

In INDIA McDonald’s are not using the meet of cow.

Because this is against there beliefs.

CLIMATE:-

McDonald’s also take care the climate of different regions while

segmentation.

For example:-in those countries where the climate is hot, they introduced

the cold

Items such as ICE_CREAMS, SHAKS, and JUICES more like in the

PAKISTAN. And the countries where the climate is cold they introduced

more teas and coffees

Etc.

2: DEMOGRAPHICAL SEGMENTATION:-

Its mean dividing the market on the basis of variable such as age, gender,

Family size income, race generation etc.

AGE:-

McDonalds is segmenting the customers especially on the basis of the

age. They have different products for the different age groups.

Such as for the children’s they have many special items and play areas

those

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Attract them more.

FAMILY SIZE:-

The also offers the deals for the different family size and offer them

discount on buying products in bulk quantity.

EDUCATION:-

Education enhance awareness so they targeting the educated people as

shown in their advertisement.

GENDER:-

McDonald’s also segmented the market on the basis of gender on the

basis of some factors.

RACE:-

Mc also segmented their customers on the basis of race such as ASIAN,

HISPANICS BLACK and WHITE, and provides products according to their

Taste.

3:PSYCHOGRAPHIC SEGMENTATION.

Its mean dividing the markets on the basis of social class, life style etc.

SOCIAL CLASS:-

MC in PAKISTAN is only segmenting their market for the upper class,

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Lower upper class and upper middle class

LIFE STYLE:-

The people who are health conscious McDonalds also target them as

walls

Satisfying your healthy life.

4:BEHAVIORAL SEGMENTATION:-

Its mean dividing the market on the basis of the occasions, benefits, user

status, User

Rate, loyalty status etc.

OCCASIONS:-

McDonald’s also segment the market on the occasions such as

VALENTINE DAY, MOTHER DAY, and their sales is increases on these

occasions.

BRAND LOYALITY:

In the world there are so many people who love with the McDonalds. and

they are loyal with the brand name of McDonalds

TARGET MARKETING:-

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The selection of consumer in the market is known as target marketing.

Marketing mix is design according to target market.

1. Target customers of McDonald’s

In Pakistan McDonalds targeting the people belong upper and upper

middle class of society.

People who prefer fast foods like youngsters.

Youngster also prefers Mc, because of its cool atmosphere and special

location.

McDonald’s also targeting the old people who want low fats in the food.

It encourages the family to visit Mc as all type of foods.

McDonald’s is also targeting the foreigners living in PAKISTAN,

Especially in the capital that is Islamabad, Lahore Karachi,

Children are also included in the target market of Mc.

As we see that children of this era are more interested of eating the fast

food and also influence their parents to go and have some food from

McDonald’s.

MARKETING STRATEGIES OF MCDONALDS

AND SOCIETAL MARKETING

McDonalds in implementing different types of marketing strategies

including:

Their main strategy is to attract few but profitable customers.

They prefer to bundle up their commodities in the form of meals.

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They arrange many social programs like anti pollution, Teacher

Convention conference etc.

They contribute a huge amount of their income in donation at catastrophes

like Earth Quake in Pakistan.

They are running Hearing and Speech Programmed under which they

train these people and offer jobs to them.

They try to provide their products in environment friendly packaging.

Packaging is a fundamental part of serving our customers. Our U.S. menu

involves 330 unique consumer package designs, with 83 percent of the

packaging made of paper or some other wood-fiber material. McDonald’s

has an opportunity to provide leadership in conserving natural resources

by minimizing the environmental impacts of our packaging.

McDonald’s has a number of strategies to ensure environmentally sound

operations at there restaurants, including reuse and recycling, managing

electrical energy and effective water management

Since 1990, McDonalds implemented programs to purchase goods made

from recycled materials. McDonald’s has begun a bulk cooking oil delivery

system using reusable containers, which eliminates more than 1,500

pounds of packaging waste per restaurant per year. McDonalds keep

restaurant owner/operators and managers informed about better ways of

managing electrical energy.

McDonalds is also doing much for the betterment of there employers .

In Pakistan, McDonalds says that our employers are our most important

asset. We provide the best employment experience for our employees in

order for McDonalds Pakistan to achieve our goal of providing our valued

customers with the world’s best quick-service restaurant experience. We

strive to recruit the best, hire the best, and provide the best place to work.

Children’s are also the part of our society so McDonalds is also doing

much for the children such as each outlet of the McDonalds has play land

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for the children. So we can say that all these the marketing strategies as

well as the social responsibilities of the McDonalds.

SWOT ANALYSIS

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SWOT analysis is to identify and analyze the strengths and

weaknesses of a organization, as well as the opportunities and

treats revealed by the information, the organization have

gathered on the external environment.

In the field of fast food restaurants kick is the major competitor of

the McDonalds. So we do the swt analysis of both the restaurants.

Swot analyses of McDonaldas:

Their main strength lies in the taste of their products and their great

service. As for the last 9 years they stand as the market leaders in

the fast food

Strengths

Excellent location :

One of the biggest strength of McDonald is its excellent location in

all over the world as well as in Pakistan. In Lahore is located in the

main blue ward gluer on jail road, in fortress stadium etc.

Secret Recipe

Only a handful of people know that multi-million dollar recipe (and

they've signed strict confidentiality contracts). This secret recipe is

strength for McDonald

Standardized Cooking Procedures

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McDonalds has standardized cooking procedures which are

according to the principles of health and proper cleanness is

maintained while cooking.

And cooks haired by the McDonalds are highly qualified and perfect

in there cooking.

Weakness

Higher price

One weakness of McDonald As compared to other fast foods working in

Pakistan is their high prices. Like, they have high prices of their burgers as

compared to the other fast food restaurant such as AFC,DFC even though

kfc.

Drive through

McDonalds do not have a drive through in its each restaurant. But

they are doing best to overcome on their weakness of drive through.

Opportunities

Brand Name:

They have the opportunity of their brand name McDonald as is a

trademark for the fast food in all over the world. so the people of the

Pakistan are also attracted to word the McDonalds

Play areas

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McDonalds in all over the world have play areas for the children. And

McDonalds also have books library’s for the children. So the children

are attracted toward the McDonalds because of these reasons.

Threats

Competitors :

It has main threat of kfc as its competitor. And it is trying to get the

more market share and beat kfc especially Pakistan. In January 2003

its first quarterly loss of $343.8m in more than 40 years of business.

This report aims to investigate the reasons behind Mc Donald’s loss

was the very good performance by kfc using marketing theory and

analysis Concluding with recommendations for improvement

Social and cultural threat

It has also the social and cultural threat in Pakistan as mostly the

people are against foreign countries and they use to make strikes in

front

Mc Donald’s of to stop their business and leave Pakistan as they think

that all the revenues generated by Mc Donald’s are going to foreign

countries and it has a bad impact on Pakistani economy.

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Swot analysis of direct competitor of

McDonalds which is KFC

KFC Today

Today, KFC is the world’s largest and most well known chicken

restaurant chain, with more than 10,000 locations worldwide, in 78

countries. KFC and its franchises employ more than 20,000 people

worldwide.

KFC serves more than 4.5 billion of chicken annually, to

approximately 7 million customers a day, world

i. KFC in Pakistan

South Region including Karachi and Hyderabad (interior Sindh).

North Region including Lahore, Rawalpindi and Islamabad (Punjab).

They have a total of 44 outlets working in Pakistan. 1 outlet is in

Islamabad, 2 in Rawalpindi,21 in Karachi, 11 in Lahore and other in

others city of Pakistan like Faisalabad, Hyderabad, Gujranwala,

Sialkot, Multan, Peshawar and Jhelum.

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SWOT ANALYSIS

Strength

Mass Appeal

Their main strength lies in the mass appeal of their products and

their great service. As for the last seven years they stand as the

market leaders in the fast food category after McDonalds.

Excellent location

One of the biggest strength of KFC is its excellent location. In

Lahore is located in the barkat market, which is the best market

place in Lahore.

Well-designed system

With the 66 years of experience and confirmation, now KFC has the

most efficient and effective system worldwide of chain of restaurants.

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Weakness

Higher price

One weakness of KFC as compared to other fast foods working in

Pakistan is their high prices. Like, they have high prices of their

burgers as compared to the Dixie and Papa Sells.

Drive through

KFC do not have a drive through in its each restaurant. But they are

doing best to overcome on their weakness of drive through.

Play areas

KFC also do not have a play area in their each out let

Opportunities

Brand Name

They have the opportunity of their brand name as KFC is a trademark for fried

chicken and is known by many people of Pakistan as a fast food of fried chicken

especially the zinger ch

Threats

Competitors

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It has main threat of McDonalds as its competitor. And it is trying to get the

largest market share and beat McDonalds especially in Pakistan.

Social and cultural threat

It has also the social and cultural threat in Pakistan as mostly the people are

against America and they use to make strikes in front of KFC to stop their

business and leave Pakistan as they think that all the revenues generated by KFC

are going to America and it has a bad impact on Pakistani economy.

BCG MATRIX:

McDonald’s

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Low High

MARKET GROWT

STAR…………………………………………………MCDONALDS

CASH COW …………………………………… SUBWAY

?........................................................................................... AFC

McDonalds in the Pakistan has high growth rate and high market

share .so in the Pakistan it lies in the star in the BCG matrix. While in the

Pakistan its largest competitor is KFC which also has high market share

and high growth rate in the Pakistan. So KFC also lie in star. we can also

see different products of the McDonalds in the BCG matrix where they lie

High

MARKRT SHARE

Low

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Such as we see some important products of McDonalds in Pakistan.

MAC BURGERS ……………………………………………… STAR

MAC AREBIA …………………………………………………….. ?

ICE CREAMS ………………………………………………CASH COW

DESSERTS ……………………………………………………… DOG

PRODUCT LIFE CYLE

The product life cycle means the course of product, its sales and profits

over its life time .

it involves five distinct stages:

Product development stage

Growth

Maturity

Decline

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If we see the McDonalds in the product life cycle then it will lie in the

growth regions for the Pakistan. Because in the Pakistan McDonalds

was introduced just 9 years ago, and now its sale is increasing rapidly

but average cost is also high. McDonalds profit in the Pakistan is not

much high because it is yet trying to get maximum market shares. and

now McDonalds is offering such products those have distinct features

and it is also trying to increase the no of distributing outlets. So

because of these bases we can say that McDonalds lie in the growth

region of the PLC.

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Distribution channel of McDonalds in

Pakistan

Distribution channel is a set of interdependent organization involved in the

process of making a product or service available for use or consumption

by the consumer or business user.

McDonalds in the Pakistan is using the vertical marketing system as well

as in whole world.

In this type of the distribution same organization manufacture the products

distribute them and sale them. McDonalds is also doing same thing.

Vertical marketing system

PROBLEMS FACING McDonald’s IN

PAKISTAN:-

manufacture

wh

oles

al

er

retailer

consumer

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There are also many problems for Mc in PAKISTAN,

One of the major problems for McDonald’s is the affordability of their

products for the people of PAKISTAN.

As PAKISTAN is the developing country so the average income of people

is very low, so a large number of people cannot afford to visit McDonald’s.

The second problem for Mc is that they represent the western taste or

style of food which is totally opposite to the traditional food of PAKISTAN.

So Mc attracts a very low percentage of people to visit.

Thirdly the factor of hesitation and lack of confidence also count as a

problem of Mc .

People feel shy and hesitation to visit MC.

In PAKISTAN Mc also facing the problems of place.

In PAKISTAN Mc branches are in few big cities so, the people of small

cities are not aware about the Mc.

McDonald’s is also use it’s promotion only in the big cities and in specific

areas for the specific people.

SOLUTIONS:-

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They shuld try to reduce the prices of there products because

most of the people of PAKISTAN cannot afford the products of

McDonald’s.

They should also try to introduce the product according to the

tast of the people of PAKISTAN

They should try to focus the people of whole country while

advertising and try to increase the locations in Pakistan.

DEDICATION

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We would like to dedicate all of our efforts to

complete this report to our beloved Parents

respected teacher Rana Adeel Abaad.

Acknowledgement:-

We would like to say thanks to our teacher

Rana Adeel Abaad for his guidance and his

precious thoughts which helps us to complete this

work in a proper and efficient manner

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. Table of Contents

INTRODUCTION

HISTORY OF McDonald’s

VISION

McDonald’s MISSION

McDonald’s IN PAKISTAN

MARKETING MIX

MARKETING ENVIRONMENT

SEGMENTATION

MARKETING STRATEGIES

SWOT ANALYSIS

BCG MATRIX

PRODUCT LIFE CYCLE

SOCIAL MARKETING OF McDonald’s

PROBLEMS AND SOLUTIONS

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