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Presentation By:
ASFAND EJAZ (415)
M.SOHAIL (408)
M.USMAN (316)
AHMAD ARSLAN (346)
M.FAISAL (534)
M.NAVEED (311)
Presentation To:
Prof. AHMAD USMAN
IntroductionMcDonald’s 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.
McDonald’s serves less than one percent of the world’s population.
The first McDonald's restaurant was opened in 1954.
It was operated by two brothers Dick and Mac McDonald.
McDonald’s 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.
Vision“The world’s best quick service restaurant experience.”
World Wide Strategies1. Be the best employer for people in each
community around the world.
2. Deliver optional excellence to customers in each restaurant.
3. Achieve enduring profitable growth by expanding the brand and leveraging the strengths of McDonald’s system through innovation and technology.
To achieve their vision they are focused on three world wide strategies:
Welcome to McDonald's Pakistan
• McDonald’s Pakistan is part of the Lakson Group of Companies, a leading business house in Pakistan.
• McDonald’s first restaurant opened its doors to the people of Pakistan in September 1998 in Lahore. This launch was met with great enthusiasm from the citizens of Lahore, who are known for their liveliness, vigor and desire for quality food.
• Karachi opened its first restaurant a week after Lahore.
• There are now 21 restaurants in four major cities of Pakistan ( 9 in Karachi, 1 in Hyderabad, 8 in Lahore ,1 in Faisalabad,1 in Islamabad and 1 in rawl).
• McDonald’s is firmly committed to give back to the community where it operates.
•They are happy to become involved because they recognize that organizations have a role to play in helping communities to work successfully.
Welcome to McDonald's Pakistan
McDonalds Business ModelFranchise Model
Only 15% of the total number of restaurants are owned by the Company.
The remaining 85% is operated by franchises.
The company follows a comprehensive framework of training and monitoring of its franchises to ensure that they adhere to the Quality, Service, Cleanliness and Value propositions offered by the company to its customers. and quality across geographies.
Product Consistency
By developing a sophisticated supplier networked operation and distribution system, the company has been able to achieve consistent product taste and quality across geographies.
Act like a retailer and think like a brand
McDonald’s focuses not only on delivering sales for the immediate present, but also protecting its long term brand reputation.
McDonalds Business Model
Customer Perception and Customer Expectation
Customer perception is a key factor affecting a product’s success.
McDonalds being an internationally renowned brand brings with it certain expectations for the customers.
Customer Perception and Customer Expectation
Target Segment
What is McDonald’s for me?
A Family with children
A treat to children, a fun place to be for the children.
Urban customer on the move
Great taste, quick service without affecting the work schedule
TeenagerHangout with friends, but keep it affordable.
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 continuous innovation is required.
Importance of PLC in McDonalds
Importance of PLC in McDonalds
To counter these changes McDonalds has continuously 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 product already in the maturity or growth stage. Thus the secret lies in getting profits with different products in the different stages of the PLC.
McDonald’s SWOT Analysis
McDonald’s SWOT Analysis
Strengths MacDonald’s has a strong global presence with its nearest domestic competitor being only half its size.
McDonald’s is the market leader in both the domestic and international markets.
In international markets, MacDonald’s is well placed to expand and take advantage of long-term economic growth.
MacDonald’s also has a strong real estate portfolio.
The company’s outlets are located in areas that are highly known for visibility, traffic volume and ease of access.
Weaknesses The food industry is really saturated.
As a result of this, MacDonald’s 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 company’s ability to increase revenue.
McDonald’s SWOT Analysis
Opportunities
McDonald’s SWOT Analysis
MacDonald’s sold its Donators Pizzeria back to its founder in 2003 and discontinued Boston market operations outside of the US.
The company will instead focus on Chipotle Grill which is the company’s most successful non MacDonald’s branded chain of restaurants.
Also to increase profitability the company has slowed its expansion of McDonald’s restaurants so as to refurbish and change the image of current restaurants and adding new features such as Internet access.
McDonald’s SWOT Analysis
Threats
McDonald’s is exposed to changes in the global economy.
The company’s aggressive international expansion has left it extremely vulnerable to other countries economic slowdown.
Foreign currency fluctuation is also another problem global companies like McDonalds.
McDonalds Marketing Mix
1. Product
2. Place
3. Price
4. Promotion
Marketers have four tools to use to develop an offering to meet the needs of their targeted customers.
Collectively they are called the marketing mix.
McDonalds Marketing Mix
The product , service or program includes both tangible and intangible elements.
The tangible , of course, are those things that the customer can see, touch, feel, taste, or smell .
The intangible include such things as the image of the offering ... which includes the image of the organization making the offering, the psychological aspects of pricing (high price to many customers is equated with high quality and vice versa).
1. Product
McDonalds Marketing Mix
2. Place
The place is where the customer receives the product, service, or program.
The place of delivery, including all of its resources, is part of what the consumer buys. A place that meets his or her needs better may be worth more.
In setting its strategy, the organization must determine how much the target market is willing to pay for atmosphere and physical resources of place.
McDonalds Marketing Mix
3. Price
The price is what the customer pays.
It includes direct and indirect costs as well as opportunity costs.
The benefits of the product have to be great enough to warrant the price.
Price includes all costs associated with the product, service, or program.
McDonalds Marketing Mix
4. Promotion
Promotion includes all forms of communication you use to communicate the benefits of your offering to the target market(s).
The objective is to persuade the customer in such a way that he or she recognizes that your offering is uniquely qualified to meet his or her needs.
The term promotion mix is commonly used to refer to the types of communication that are available: advertising, public relations, personal selling, publicity, and sales promotion.
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.
McDonalds Marketing Mix
The marketing mix is apart of the organizations planning process and consists of analyzing the defined:
How will you design, package and add value to the product? Product strategies.
What pricing strategy is appropriate to use? Price strategies.
Where will the firm locate? Place strategies.
How will the firm promote its product Promotion strategies.
McDonalds Marketing Mix
Product Price Promotion Place
FunctionalityAppearanceQualityPackagingBrandWarrantyService/Support
List priceDiscountsAllowancesFinancingLeasing options
AdvertisingPersonal sellingPublic relationsMessageMediaBudget
Channel membersChannel motivationMarket coverageLocationsLogisticsService levels
The following table summarizes the marketing mix decisions, including a list of some of the aspects of each of the 4Ps.
Survey Questionnaire
Survey QuestionnaireQ. Which is your favorite product at McDonald’s?
McChicken Burger
19%
French Fries42%
Big Mac Burger
12%
Others27%
Survey QuestionnaireQ. Is the product line in McDonald’s
adequate?
32% 29%
39%
0%
10%
20%
30%
40%
Yes No Its okay
Survey QuestionnaireQ. What is the main problem you faced at
McDonald’s?
24%
9%3%
21%
43%
0%
10%
20%
30%
40%
50%
LongQueues
WrongOrder
BadMusic
OtherProblems
NoProblems
Survey QuestionnaireQ. Which area do you think needs the most improvement?
24%
19%
15%
13%
7%
22%
0% 5% 10% 15% 20% 25%
Low Prices
More Variety
Home Delivery
More Space
Better Music
No Suggestions
Survey Questionnaire Q. What are Unique Selling Proposition of McDonald’s?
8%6%
17%19%24%26%
0%
5%
10%15%
20%
25%
30%
Food Hygiene Ambience QuickService
Location Others
McDonald's People Promise
Mission Statement:
“We value you, your growth and your contributions.”
ThankYou