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8/3/2019 MacDonald's Project
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Presentation By:
H.Waqar (15)
Irfan Haider (16)
Abdul Haseeb (18)
Mohsin Abbas (22)
Presentation To:
Sir Iqbal Mahmood
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IntroductionMcDonalds is the largest and best known global
food service retailer with more than 30,000
restaurants in 121 countries, and best known global
food service.
McDonalds serves less than one percent of the
worlds population.
McDonald in Pakistan:
McDonalds first restaurant opened its doors to the
people of Pakistan in September 1998 in Lahore.
There are now 21 restaurants in four major cities of
Pakistan
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VisionThe worlds best quick service restaurant experience.
Franchise Model
Only 15% of the total number of restaurants areowned by the Company.
The remaining 85% is operated by franchises.
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Customer Perception andCustomer Expectation
TargetSegment
What is McDonalds for me?
A Family with
children
A treat to children, a fun place to
be for the children.
Urbancustomer on
the move
Great taste, quick servicewithout affecting the work
schedule
TeenagerHangout with friends, but keep it
affordable.
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Importance of PLC in
McDonalds
The requirements of customers change over
time and thus the product offering has to be
changed accordingly.
What is the fashion today may be out of
market within few weeks. Thus continuousinnovation is required.
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Importance of PLC inMcDonalds
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Importance of PLC in
McDonalds
To counter these changes McDonalds hascontinuously introduced new products and has
phased out the old ones which were at the
decline stage of their PLC.
The introduction is timed such that the new
product does not cannibalize the productalready in the maturity or growth stage. Thus
the secret lies in getting profits with different
products in the different stages of the PLC.
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McDonalds SWOT Analysis
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McDonalds SWOT Analysis
Strengths
MacDonalds has a strong global presence with itsnearest domestic competitor being only half its size.
McDonalds is the market leader in both the domestic and
international markets.
In international markets, MacDonalds is well placed to
expand and take advantage of long-term economic growth.MacDonalds also has a strong real estate portfolio.
The companys outlets are located in areas that are highly
known for visibility, traffic volume and ease of access.
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McDonalds SWOT Analysis
Strengths
Products:
The reputation of the various products each season has
made it possible for the company to attract customers .
Brand Recognition:
McDonalds has gained recognition worldwide. The chain is
present all over the world in more than 122 countries
McDonalds is regarded as a symbol of value and
quality for your money.
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McDonalds SWOT Analysis
Strengths
Good communication and friendly environment:McDonalds has always ensured a friendly environment to
offer to its customers.
happy meal, toys, gifts & Play places
Birthday party celebration.
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McDonalds SWOT Analysis
Strengths
Partnership with Coca Cola:
McDonalds and Coca Cola are official global partners. Coca
cola is a big brand name
serving people all over the world with beverages.
Partnership with telecom companies:
McDonalds offered special deals to its clients with up size
meals who are the users of a
particular company such as Warid and Ufone
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Weaknesses
The food industry is really saturated.
As a result of this, MacDonalds has to deal with
the prospect of looming market saturation, which
could make it difficult to add new outlets.
The market is forecast to grow by around 2% per
year.
There is also an increasing price competition
driven by too many competitors, which reduces the
companys ability to increase revenue.
McDonalds SWOT Analysis
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Opportunities
McDonalds SWOT Analysis
To increase profitability the company has slowed its
expansion of McDonalds restaurants so as to refurbishand change the image of current restaurants and adding
new features such as Internet access.
Breakfast and special noon meals
McCafes:
McDonalds has opened coffee shops by the name of
McCafes in UK. Pakistan can serve as a new potential
market for these cafes.
Dine in Cafes:
McDonalds can open up with small-sized cafes for the
teenagers in their universities and colleges.
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McDonalds SWOT Analysis
Threats
Foreign as well as local competitors:
In the growing market QSR market of Pakistan
McDonalds competitors are entering not
only from other countries but from within the country
too. Their competitive prices could
be a reason due to which McDonalds can lose its share
in the Pakistani market.
Foreign currency fluctuation is also another problem
global companies like McDonalds.
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McDonalds Marketing Mix
The marketing mix principles are
controllable variables, which have to be
carefully managed and must meet the needs
of the defined target group.
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McDonalds Marketing Mix
Product Price Promotion Place
Functionality
Appearance
Quality
PackagingBrand
Service/Supp
ort
List price
Discounts
Advertising
Personal
selling
Publicrelations
Message
Media
Channel
members
Channel
motivationMarket
coverage
Locations
The following table summarizes the marketing
mix decisions, including a list of some of the
aspects of each of the 4Ps.
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INDUSTRY ANALYSIS
POPULATION: 176,242,949 (est.)
CHILDREN: 37.2% (65,607,612)
ADULTS: 62.8% (110,680,572) CHILDREN EQUITY: 60% (14,643,619)
ADULT EQUITY: 40% (27,802,960)
TOTAL TARGET MARKET: 42,446,579
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Market Share
Mcdonald40%
KFC
30%
AFC
10%
Other
20%
Chart Title
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BBCB
STAR:
McDonalds is a star. The reason for this is its high market
growth and high market
share in the Pakistani market.
CASHCOW:
KFC and Pizza Hut are the cash cows because of their lowgrowth rate and high market share. During past some years
KFC and Pizza Hut have lost their market growth because of
the fact that they lost their standard war to their competitor i-
e McDonalds.
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QUESTION MARK:
AFC is question mark. Some of thereasons that are responsible for its low
market share and low market growth are
the less expansion strategies being
followed by the company.
Secondly they are not focusing at all on
all the major cities, rather they are only
focused on the target segments of largecities.
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July-12-2005Human Resource Management
Activities Interests Opinions Demographics
Fast food Student,
working;
Adventurous,
Energetic.
Sports,
Entertainment,
Fashion, Music,
Recreation
Influenced by
peer
pressure,
Energetic,
Impulse
buying
Age: 16-24
years old.
Marital status:
Single; Heavy
Users
Ambience Student,
working/self-
made
businessmen;
working on
projects
Entertainment
, Recreation,
Fashion,
Music,
Socialization.
Ambitious,
Future
business and
social issues,
Politics.
Age: 20-35 yrs
old. Marital
status: Single
and Married.
Light to
medium users.
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July-12-2005Human Resource Management
Activities Interests Opinions Demographics
Status
Symbol
Student,
working;
Hanging out,
Adventurous.
Sports,
Entertainment
, Fashion,
Music,
Recreation.
Energetic,
Impulse
buying,
influenced by
peer
pressure
Age: 16-25 yrs
old. Marital
status: Single;
light to
medium
users
Hygiene Working
women/men,
house-wives;
Shopping,
Club
Memberships.
Home,
Recreation,
shopping,
Fashion,
Planned
purchasing,
Authoritarian
, Strong
views,
Politics,Future
business and
social
Issues.
Age: 25-45 yrs
old; Marital
status: Newly
married, Full
Nest; Light
users
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DIVERSIFICATION STRATEGY
McDonald is not only dealing in Fast Food but it also dealing
in Restaurant business as the company name is known almost
all over the world
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Al.Najam Fried Chicken
Introduction
AFC first opened its first restaurant in mid
90''s saman Abad ,Main Market Lahore .it wasthe time when fast food companies were in
booming in Pakistan.
VISION
AFC better for people by ensuring
healthy food
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AFC
AFC adopt Low Cost Strategy
Simple Branches in terms of Atmosphere andLocation.
AFC follow the trend of its competitor.
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Why more selling of MCDonald and
AFC
less1.McDonald has more taste than AFC.
2. McDonald has good quality food than AFC
3. McDonald has more meals than AFCaccording to customer needs.
4. McDonald company has attractive brand
name than AFC
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Why more selling of MCDonald and
AFC
less 6.McDonald company does not change the quality of productwith change in price as compared to AFC.
7. McDonald company provides more incentives and
sponsorship for cu
stomer than AFC
8.McDonald company has more sale discounts/sales offers as
compared to AFC.
9.McDonald company has more creative advertisement than
AFC.
10.McDonald company advertises more on
media than AFC.
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11. McDonald have more attractive packaging
than AFC.
12. McDonald company have more marketshare as compared to AFC.
13. McDonald are easily available in market as
compared to AFC. 14. McDonald distributors work well as
compared to AFC.
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McDonalds has variety of meals as compared
to Afc. It provides large range of burgers, fries,
international meals salads and ice cream. On
the other hand Afc has limited variety ofburgers and fries .According to our opinion,
public want large variety of meals in every
restau
rant therefore they prefer McDonaldover Afc.
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Another tool for capturing the market is attractiveadvertisements and McDonalds is also given
preference by customers due to its advertisements
as compare to Afc.
McDonalds is easily available all over Pakistan. It hasopened numerous branches as compare to Afc. Afc
has limited no. of branches in Pakistan therefore easy
and quick access is also a major factor of preference
of McDonalds over Afc.
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Another tool for capturing the market is attractive
advertisements and McDonalds is also given
preference by customers due to its advertisements
as compare to Afc.
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McDonalds outstanding brand recognition,
experienced management, high quality food,
advanced operational systems and unique
global infrastructure ensure a position that
enables them to capitalize on global
opportunities.
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Recommendation
Afc is successfully fulfilling customer demand
but it cannot compete McDonalds therefore
heavy investment is still needed to open New
Branches.
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Recommendation
Improve Quality
Focus on Parking Facilities
Provide Entertainment to children
Adding More Items in Menu List( ice creams etc)
Pleasant Environment
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Thank
You