Mcdonald Final Project

36

Transcript of Mcdonald Final Project

Page 1: Mcdonald Final Project
Page 2: Mcdonald Final Project

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

Page 3: Mcdonald Final Project
Page 4: Mcdonald Final Project

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.

Page 5: Mcdonald Final Project

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:

Page 6: Mcdonald Final Project

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.

Page 7: Mcdonald Final Project

• 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

Page 8: Mcdonald Final Project

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.

Page 9: Mcdonald Final Project

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

Page 10: Mcdonald Final Project

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.

Page 11: Mcdonald Final Project

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.

Page 12: Mcdonald Final Project

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.

Page 13: Mcdonald Final Project

Importance of PLC in McDonalds

Page 14: Mcdonald Final Project

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.

Page 15: Mcdonald Final Project

McDonald’s SWOT Analysis

Page 16: Mcdonald Final Project

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.

Page 17: Mcdonald Final Project

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

Page 18: Mcdonald Final Project

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.

Page 19: Mcdonald Final Project

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.

Page 20: Mcdonald Final Project

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.

Page 21: Mcdonald Final Project

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

Page 22: Mcdonald Final Project

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.

Page 23: Mcdonald Final Project

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.

Page 24: Mcdonald Final Project

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.

Page 25: Mcdonald Final Project

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.

Page 26: Mcdonald Final Project

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.

Page 27: Mcdonald Final Project

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.

Page 28: Mcdonald Final Project

Survey Questionnaire

Page 29: Mcdonald Final Project

Survey QuestionnaireQ. Which is your favorite product at McDonald’s?

McChicken Burger

19%

French Fries42%

Big Mac Burger

12%

Others27%

Page 30: Mcdonald Final Project

Survey QuestionnaireQ. Is the product line in McDonald’s

adequate?

32% 29%

39%

0%

10%

20%

30%

40%

Yes No Its okay

Page 31: Mcdonald Final Project

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

Page 32: Mcdonald Final Project

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

Page 33: Mcdonald Final Project

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

Page 34: Mcdonald Final Project

McDonald's People Promise

Mission Statement:

“We value you, your growth and your contributions.”

Page 35: Mcdonald Final Project

ThankYou

Page 36: Mcdonald Final Project