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History

This is a timeline of the history of McDonald's.The McDonald's concept was introduced in San Bernardino, California by Dick and Mac McDonaldof Manchester, New Hampshire. It was modified and expanded by their business partner, Ray Kroc, of Oak Park, Illinois, who later bought out the business interests of the McDonald's brothers in the concept and went on to found McDonald's Corporation.1927: Brothers Dick and Mac McDonald open a hamburger stand called "The Airdrome" at the airport in Monrovia, California.1940: The McDonalds move The Airdrome building 40 miles to San Bernardino, California, where they open the first McDonald's restaurant, on U.S. Route 66, at 14th and E St., on May 15. Its menu consists of 25 items, mostly barbecue. As was common at the time, they employed around 20 carhops. It became a popular and highly profitable teen hangout, and it was directed by Eric VanDemark1948: After noting that almost all of their profits came from hamburgers, the brothers closed the restaurant for several months to implement their innovative "Speedee Service System", a streamlined assembly line for hamburgers. The carhops are fired, and when the restaurant reopens it sells only hamburgers, milkshakes, and french fries. At 15 cents, the burgers are about half as expensive as at standard diners, and they are served immediately. The restaurant is extremely successful, and its fame is spread by word of mouth.1953: The McDonald's begins to franchise their restaurant, with Neil Fox the first franchisee. The second McDonald's opens in Phoenix, Arizona at N.Central Ave and Indian School Road. It is the first to feature the Golden Arches design; later this year the original restaurant in San Bernardino is rebuilt in the same style.1953: Fourth McDonald's restaurant opens, in Downey, California at the corner of Lakewood Blvd and Florence Avenue, and is the oldest McDonald's restaurant still in operation. 1955: Ray Kroc founds "McDonald's Systems, Inc." on March 2, as a legal structure for his planned franchises. Kroc opens the ninth McDonald's restaurant in Des Plaines, Illinois, in suburban Chicago on April 15.1955: Ray Kroc hires Fred Turner (later CEO and Chairman) as a grillman in his store in Des Plaines.1958: McDonald's worldwide sells its 100 millionth hamburger.1959: The 100th McDonald's restaurant opens in Fond du Lac, Wisconsin.1959: McDonald's begins billboard advertising.1960: Kroc's company is renamed "McDonald's Corporation".1961: Hamburger University opens in the basement of the Elk Grove Village, Illinois, McDonald's restaurant. Bachelor of Hamburgology degrees went to graduating class of 15.1962: McDonald's first national magazine ad appears in Life magazine.1962: The first McDonald's restaurant with seating opens in Denver, Colorado.1963: One of Kroc's marketing insights is his decision to advertise McDonald's hamburgers to families and children. Washington, D.C.franchisees John Gibson and Oscar Goldstein (Gee Gee Distributing Corporation) sponsor a children's show on WRC-TV called Bozo the Clown, a franchised character played by Willard Scott from 1959 until 1962. After the show was cancelled, Goldstein hires Scott to portray McDonald's new mascot, named Ronald McDonald. According to Scott, they wanted to pay him in stock, but Scott decided to take the money. Scott, looking nothing like the familiar appearance of any McDonaldland character as is known today.

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1963: The Filet-O-Fish is introduced in Cincinnati, Ohio, in a restaurant located in a neighborhood dominated by Roman Catholics who practiced abstinence (the avoidance of meat) on Fridays. It is the first new addition to the original menu, and goes national the following year, with fish supplied by Gorton's of Gloucester. See also Lou Groen1963: McDonald's sells its one billionth hamburger.1963: The 500th McDonald's restaurant opens in Toledo, Ohio.1964: McDonald's issues its first annual report.. The franchisee isAhold.1971: The first McDonald's in Germany (Munich) opens in December. It is the first McDonald's to sell alcohol, as it offers beer. Other European countries follow in the early 1970s.1971: The first Australian McDonald's opens in the Sydney suburb of Yagoona in December.introduced to the menu.1974: On October 12, the first McDonald's in the United Kingdom opens in Woolwich, southeast London. It is the 2000: The company opens its 1000th British store, inside the Millennium Dome.2001: The FBI reports that employees of Simon Worldwide, a company hired by McDonald's to provide promotion marketing services for Happy Meals and the 'Millionaire'/'Monopoly' contest, stole winning game pieces worth more than $20 million.2002: A survey in Restaurants and Institutions magazine ranks McDonald's 15th in food quality among hamburger chains, highlighting the company's failure to enforce standards across its franchise network.2002: McDonald's posts its first quarterly loss ($344m), for the last quarter. It responds to the stiff competition from other fast-food restaurants, offering higher quality burgers and more variety, by attempting to move more upmarket by expanding its menu and refitting restaurants. It announces it is withdrawing from three countries (including Bolivia) and closing 175 underperforming restaurants.2003: McDonald's starts a global marketing campaign which promotes a new healthier and higher-quality image. The campaign was labeled "i'm lovin' it" and begins simultaneously in more than 100 countries around the world.2003: According to Technomic, a market research firm, McDonald's share of the U.S. market had fallen three percentage points in five years and was at 15.2%. 2003: The firm reports a $126M USD loss for the fourth quarter .2003: McDonald's introduces their premium salads, the McGriddles and the chicken selects.2004: Morgan Spurlock directs and stars in Super Size Me documentary film in which he eats nothing but McDonald's food for 30 days to the great detriment of his health.2004: After the release of Super Size Me, McDonald's does away with their Supersize options.2005: Jim Skinner is elected President and CEO. Skinner began his McDonald's career as a trainee restaurant manager at a McDonald's inCarpentersville, Illinois in 1971 after serving nearly ten years with the US Navy. 2005: McDonald's experiments with call centers for drive-through orders. The center, located in Fargo, North Dakota takes orders from more than a dozen stores in Oregon and Washington. The experiment is in part motivated by labor costs, since the minimum wage in North Dakota is over 40% lower than that in Oregon or Washington.2005: McDonald's in Singapore began their McDelivery service: customers place their food orders over the phone, and it is delivered to wherever they are. The service is available 24 hours a day, 7 days a week.

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2005: McDonald's opens a Wi-Fi service in selected restaurants with Nintendo for Nintendo DS.2005: Ronald McDonald gets a leaner, sportier look.2006: McDonald's announces that it will include nutritional information on the packaging for all products beginning in March and that its upcoming menu changes will emphasize chicken, salads, and other "fresh foods" rather than hamburgers.2006: Anna Svidersky was murdered by David Sullivan while working in an Anderson Road McDonald's in Vancouver, Washington.2007: McDonald's reintroduces its 42-ounce super-size soda under the name Hugo.2008: Mcdonald's introduces the McSkillet burrito. This larger breakfast consists of scramble eggs, red & green bell peppers, onions, potatoes, salsa and sausage wrapped in a flour tortilla. Later in the year, Chicken was added.2008: McDonald's introduces the Chicken Biscuit and the Southern Style Chicken Sandwich.2009: McDonald's introduces three versions of Angus Burgers: Angus Deluxe, Angus Bacon & Cheese, and Angus Mushroom & Swiss. 2009: First McDonald's opens in Cusco, Peru. Since 1996 a total of 21 McDonald´s , 8 McCafé and 36 soft drink/ice cream stands are opened in Lima and across Peru. 20 more McDonald`s are scheduled to be opened in the next two fiscal years.2009: McDonald's in Papakura, New Zealand Has open it first car wash in the Country called a UWASHProductsMcDonald's predominantly sells hamburgers, various types of chicken sandwiches and products, French fries, soft drinks, breakfast items, and desserts. In most markets, McDonald's offers salads and vegetarianitems, wraps and other localized fare. Portugal is the only country with McDonald's restaurants serving soup. This local deviation from the standard menu is a characteristic for which the chain is particularly known, and one which is employed either to abide by regional food taboos (such as the religious prohibition of beef consumption in India) or to make available foods with which the regional market is more familiar (such as the sale of McRice in Indonesia).

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Menu:This is a list of menu sold at Mcdonald.

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Introduction:

McDonald's Corporation (NYSE: MCD) is the world's largest chain of hamburger fast food restaurants, serving nearly 47 million customers daily. At one time it was the largest global restaurant chain, but it has since been surpassed by multi-brand operator Yum! Brands (KFC, Taco Bell and others) and sandwich chain Subway.In addition to its signature restaurant chain, McDonald’s Corporation held a minority interest in Pret A Manger until 2008, and owned the Chipotle Mexican Grill until 2006 and the restaurant chainBoston Market until 2007. The company has also expanded the McDonald's menu in recent decades to include alternative meal options, such as salads and snack wraps, in order to capitalize on growing consumer interest in health and wellness.A McDonald's restaurant is operated by either a franchisee, an affiliate, or the corporation itself. The corporation's revenues come from the rent, royalties and fees paid by the franchisees, as well as sales in company-operated restaurants. McDonald's revenues grew 27% over the three years ending in 2007 to $22.8 billion, and 9% growth in operating income to $3.9 billion. McDonald's primarily sells hamburgers, cheeseburgers, chicken products, french fries, breakfastitems, soft drinks, milkshakes, and desserts. In response to obesity trends in Western nations and in the face of criticism over the healthiness of its products, the company has modified its menu to include healthier alternatives such as salads, wraps and fruit.

AWARDS:Mcdonald had one the international award of quality management last year on behalf of best management.

Needs Wants and Demands: Mcdonald the need wants and demands of customers simply from feed back.The need of hungry customer is to eat something. The want of a customer to eat Pizza.Money of pochet is only Rs 325 which his demand.so keeping the above views of customer Mcdonald will try to launch a product having all of these characteristics.

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Menu itemsThis is a list of menu items sold at Mcdonald.

Hamburger: 100% Beef Patty, Regular Bun, Ketchup, Mustard, Pickle Slices, Onions

Cheeseburger: 100% Beef Patty, Regular Bun, Pasteurized Process American Cheese, Ketchup, Mustard, Pickle Slices, Onions

Double Cheeseburger: 100% Beef Patty, Regular Bun, Pasteurized Process American Cheese, Ketchup, Mustard, Pickle Slices, Onions

McDouble: 100% Beef Patty, Regular Bun, Pasteurized Process American Cheese, Ketchup, Pickle Slices, Onions, Mustard

Quarter Pounder®+: Quarter Pound 100% Beef Patty*, Sesame Seed Bun, Ketchup, Mustard, Pickle Slices, Slivered Onions

Quarter Pounder® with Cheese+: Quarter Pound 100% Beef Patty*, Sesame Seed Bun, Pasteurized Process American Cheese, Ketchup, Mustard, Pickle Slices, Slivered Onions

Big N' Tasty®: Quarter Pound 100% Beef Patty*, Sesame Seed Bun, Leaf Lettuce, Tomato Slice, Mayonnaise Dressing, Ketchup, Slivered Onions, Pickle Slices

Big N' Tasty® with Cheese: Quarter Pound 100% Beef Patty*, Sesame Seed Bun, Leaf Lettuce, Tomato Slice, Mayonnaise Dressing, Pasteurized Process American Cheese, Ketchup, Slivered Onions, Pickle Slices

Angus Bacon & Cheese: 100% Angus Beef Patty, Premium Bun, Pasteurized Process American Cheese, Bacon, Red Onions, Crinkle Cut Pickle Slices, Ketchup, Mustard

Angus Deluxe: 100% Angus Beef Patty, Premium Bun, Pasteurized Process American Cheese, Tomato Slice, Mayonnaise Dressing, Red Onions, Crinkle Cut Pickle Slices, Leaf Lettuce, Mustard

Angus Mushroom & Swiss: 100% Angus Beef Patty, Premium Bun, Natural Swiss Cheese, Sauteed Mushrooms, Mayonnaise Dressing

Filet-O-Fish®: Fish Filet Patty, Regular Bun, Tartar Sauce, Pasteurized Process American Cheese

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McChicken ®: McChicken Patty, Regular Bun, Mayonnaise Dressing, Lettuce

Marketing offering:

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Chicken Maharaja

Burger & chips

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Rice Spicy

Pizza

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Packaging:The famous paper bucket that McDonald uses for its larger sized orders of Pizza and has come to signify the company was originally created by Wendy's restaurants founder Dave Thomas. Thomas was originally a franchisee of the original McDonald and operated several outlets in the Columbus, Ohio area. His reasoning behind using the paper packaging was that it helped keep the Pizza crispy by wicking away excess moisture. Thomas was also responsible for the creation of the famous rotating bucket sign that came to be used at most McDonald locations in the Australia.

Value and Satisfaction:

Value:

McDonald create value in customer mind by providing them good experienceFro this purpose they work on the formula.

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(Food+Experience+Value=90% satisfaction)

Satisfaction:

McDonald’s customer is 100% satisfied due to the secret working criteria.Speed of service product quality. Provide good quality pizza to satisfy the consumer.Strategic Planning of Mcdonald:The strategic planning of Mcdonald is done by marketing departement Mcdonald in Pakistan is working under “M” which is Canada best.So all the strategic planning is done by “M” marketing department.

Mission Statement:

Our main mission is to chapture the mind of customer.We find reasons to celebrate the achievements of others and have fun doing it “Customer Focus” and work on work of wishes of customer.Jack M. Greenberg explain the since mcdonald started encouraging informal recognization.

Objective and GoalsObjective:Mcdonald is a profit oriented company like other businesess so the main objective is to earn the profit by entertainning customer by a good product.Main objective of mcdonalds is to satisfy the customer.

Goals:Providing good quality product to the customer and they satisfy their customer. The main goal of mcdonald is to satisfy to the customer for getting maximize profit.

Business portpholio:Mcdonalds analyzes their current situation by making. Statements with time to time as according to the servey in Karachi branch.The sale is very high in the summer when season would be on 1.5 crore per statement and financial record weekly because of high sale.They also analyze their portpholio by the help of” M” approach.

Stars = Chicken,fish. Cash cows = Pork, rice & spice. Question mark = Breakfast sandwich. Dogs = Tomago Double Mac.

The Mcdonald plains its marketing by simple keeping 4Ps in mind Product Price Place Promotion

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Product:Mcdonald planning related to the product is done after realizing the need wants demand and feedback of customer. They can earned huduge profit by introduce own new product.

Price:Mcdonald sets price to see own customer’s purchasing power as well as Mcdonald sets the price of that product by keeping their competitor in mind. They apply competitor based pricing approach.

Place:They will organized channel of transportataion.For carrying out raw material in Karachi branch chicken transported by K&Ns Company in Karachi.

Promotion:Mcdonald spends 53% of their mark up on promotional activities through heavy advertisement.Because advertisement is the main segment to introduce own product.I-g

Through Internet Magzins Salesman Pumphlets Channels

Fuctional Strategies:Mcdonald seeing the current functional strategies from their competitors and intelligent person visits.

Marketing ProcessMarket Place:

Mcdonald select the market place where the customer or more affordable it means that they select their market place.I-g

Shopping malls Universities Multinational companies Hospitals

Customer Driven Marketing Strategies:

Mcdonald segments its markets on the bases of consumer market segmentation on the bases of geographic segmentation demo graphic segmentation

Positioning:

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MCDONALD set the best position of his product in the customer mind and provide best quality of product on their customer satisfaction as well as create good position in the market.

Profitable Relationship:A profitable relation with customer can only be created by giving them quality and satisfaction.I-e

Hospitality Product Quality Speed of service Reliability Durability of Service Transportation

Working environment:

Macro Working of Nature of MCDONALD:MCDONALD is working in 150 different countries through out the world with 12500 branchies, so its environment is MACRO.The MCDONALD working environment is Macro because it is working through out the world.Marketing Research:MCDONALD marketing research is totally based on

Questionnaire Feed back Observatioin Direct Interviews

MCDONALD researcher goes to the market and collect facts and figures another method of MCDONALD’s marketing research is that MCDONALD send a secrete person to the competitors environment who examine their working criteria.In this way they gain info from the market.

PRODUCT STRATEGIES

MCDONALD follow four types of strategies related to their product I-e

Introduction Growth Maturity Decline

Services Strategies:MCDONALD fallows the following service strategies i-e

Service differentiating strategy Service quality Service productivity

Service Differentiating Strategy:

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MCDONALD has differentiated its service from the rest in the way that MCDONALD is giving the home delivery service in just 30 minutes.

Service Quality Strategy:

MCDONALD manages its service quality through sending a secret person to the competitors’ outlets who examine their service quality and report to the MCDONALD management.Service Productivity Strategy:

As the quality improves definitely the number of customer’s increases so large numbers of customers are required at that time there is a possibility that the new hired sales person can decrease the set quality from protecting it the MCDONALD has a good training system in this way the service quality along with the productivity stay sefe.

Pricing Approach:

MCDONALD pricing approach is based on competition in the market because they have strong competitors in the market i-e

Burger King  Subway Italian Pizza Hut Yum! 

CONCLUSION

It is concluded that working nature of MCDONALD is of such kind that they.Always give first priority to their customers, which make them distinct from the rest Therefore, that is why the customers are increasing day by day.The proof of success is that MCDONALD is flourishing quickly as they have 12500 branches through out the world.MCDONALD promises that it is the sole company that gives good experience to the customers.

PERSONAL VIEWS ABOUT MCDONALD

I think the working of MCDONALD is satisfactory. I like the CHAMPS principle most which they are following.Moreover they are giving quality product. As there present profit is Rs21500000 per month. I think they will definitely double it because of their increasing popularity.Italian Pizza has a plane taste so they have to change the taste to add Black pepper, spice, onion etc.

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SWOT ANALYSIS

Strengths

McDonalds has built up huge brand equity. It is the No. 1 fast-food company by sales, with more than 31,000 restaurants serving burgers and fries in almost 120 countries. Sales, 2007 (11,4009 million), 5.6% sales growth.

Good innovation and product development. It continually innovates to retain customers in the business.

The McDonalds brand offers consumers choice, reasonable value and great service

Large amounts of investment have gone into supporting its franchise network, 75% of stores are franchises.

Loyal staff and strong management team.

Weaknesses

Core product line out of line with the trend towards healthier lifestyles for adults and children. Product line heavily focused towards hot food and burgers.

Seasonal

Quality issues across the franchise network.

Opportunities

Joint ventures with retailers (e.g. supermarkets).

Consolidation of retailers likely, so better locations for franchisees.

Respond to social changes - by innovation within healthier lifestyle foods. Its move into hot baguettes and healthier snacks (fruit) has supported its new positioning.

Use of CRM, database marketing to more accurately market to its consumer target groups. It could identify likely customers (based on modelling and profiles of shoppers) and prevent brand switching.

Strengthen its value proposition and offering, to encourage customers who visit coffee shops into McDonalds.

The new “formats”, McCafe, having Wifi internet links should help in attracting segments. Also installing children’s play-parks and its focus on educating consumers about health, fitness.

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Continued focus on corporate social responsibility, reducing the impact on the environment and community linkages.

International expansion into emerging markets of China and India.

Threats

Social changes - Government, consumer groups encouraging balanced meals, 5 a day fruit and vegetables.

Focus by consumers on nutrition and healthier lifestyles.

Competitive pressures on the high street as new entrants offering value and greater product ranges and healthier lifestyles prod ucts. E.g. subway, supermarkets, M&S.

Recession or down turn in economy may affect the retailer sales, as household budgets tighten reducing spend and number of visitors.

CORE COMPETENCES

The core competences which distinguish them from others are Quick Service Home quick & free Dlivery Quality product Unperishable food Items

SUGGESTIONS

It is suggested that MCDONALD now a days is totally depending up on Dessert verities so I think that they must innovative & creative to launched new product along with Dessert to stay or compete in the market for the longer period.

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Competitors

These are the competitors of Mcdonald. Burger King  Second largest burger chain Subway (restaurant) - Largest single brand restaurant chain Yum! - Largest multi-brand restaurant chain

McDonald Vs Burger King in Karachi

The fast food market in Karachi has become very competitive with the existence of both Asian restaurants.MCDONALD and McDonald’s are many other restaurants, including some domestic brands of Chinese fast food that copies the Asian service model .Consumer in Karachi are giving importance to food service, environment, price, convenience, brand and promotion in evaluating fast food restaurants. There are some similarities and differences between MCDONALD and McDonald’s in India.

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BIBLOGRAPHY

www.Mcdonald.com www.Mcdonaldpakistan.com