31723091 Mcdonald Final Project

8/8/2019 31723091 Mcdonald Final Project

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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


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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.

The first McDonald's restaurant was opened in 1954.

It was operated by two brothers Dick and Mac

McDonald.

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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VisionThe worlds 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 McDonalds system through

innovation and technology.

To achieve their vision they are focused on three world

wide strategies:


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Welcome to

McDonald's Pakistan McDonalds Pakistan is part of the Lakson

Group of Companies, a leading business

house in Pakistan.

McDonalds 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.


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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 inrawl).

McDonalds is firmly committed to give back to the

community where it operates.

They are happy to become involved because theyrecognize that organizations have a role to play in

helping communities to work successfully.

Welcome to

McDonald's Pakistan


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McDonalds BusinessModel

Franchise 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 toensure that they adhere to the Quality, Service,

Cleanliness and Value propositions offered by the

company to its customers. and quality across

geographies.


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Product Consistency

By developing a sophisticated suppliernetworked 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

McDonalds focuses not only on delivering

sales for the immediate present, but also

protecting its long term brand reputation.

McDonalds BusinessModel


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Customer Perception and

Customer Expectation

Customer perception is a key factor affecting a

products success.

McDonalds being an internationally renowned

brand brings with it certain expectations for the

customers.


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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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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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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.



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Opportunities


MacDonalds 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 companys most successful non MacDonalds

branded chain of restaurants.Also to increase profitability the company has slowed

its expansion of McDonalds restaurants so as to

refurbish and change the image of current restaurants

and adding new features such as Internet access.


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Threats

McDonalds is exposed to changes in the global

economy.

The companys aggressive international expansion has

left it extremely vulnerable to other countries economic

slowdown.

Foreign currency fluctuation is also another problem

global companies like McDonalds.


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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.


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The product , service or program includes bothtangible 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 theorganization making the offering, the

psychological aspects of pricing (high price to

many customers is equated with high quality and

vice versa).

1. Product


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2. Place

The place is where the customer receives theproduct, 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.


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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.


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4. Promotion

Promotion includes all forms of communicationyou 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.


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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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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.


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Product Price Promotion Place

Functionality

Appearance

Quality

PackagingBrand

Warranty

Service/Supp

ort

List price

Discounts

Allowances

FinancingLeasing

options

Advertising

Personal

selling

Publicrelations

Message

Media

Budget

Channel

members

Channel

motivationMarket

coverage

Locations

Logistics

Service levels

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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Survey Questionnaire


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Survey QuestionnaireQ. Which is your favorite product at

McDonalds?

Mc hicken

ur er

19

rench

ries

42

i Macur er

12

thers

27


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Survey QuestionnaireQ. Is the product line in McDonalds

adequate?

0%

10%

20%

30%

40%

Yes o Its o ay


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Survey QuestionnaireQ. What is the main problem you faced at

McDonalds?

0%

10%

20%

30%

40%

50%

Long

Queues

Wrong

Order

Bad

Music

Other

Problems

No

Problems


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Survey QuestionnaireQ. Which area do you think needs the most

improvement?

o rices

ore ariety

ome e ivery

ore Space

etter usic

o Su estions


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Survey QuestionnaireQ. What are Unique Selling Proposition

of McDonalds?

ood ygiene ience Quic

Service

ocation thers


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McDonald's PeoplePromise

Mission Statement:

We value you, your growth

and your contributions.


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Thank

ou


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31723091 Mcdonald Final Project

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