presented by:gina ann mathews

jyoti choudhary

CONTENTS•Overview of McDonald’s• Marketing Mix • BCG Matrix• SWOT Analysis• STP Process• Competitor’s Analysis• Survey on Customer satisfaction level• Recommendations

FOOD INDUSTRY IN UAE

• Population is 6m – 75% are expatriates• UAE is heavily dependent on food imports -

estimated to account for over 75 per cent of the food supply

• Large number of five star hotels and restaurants

• Most of the major fast food chains are present leading to a very competitive environment

McDonald’s

• Leading global foodservice retailer with more than 31,000 local restaurants serving more than 58 million people in 118 countries each day.

• Favorites- World Famous Fries, Big Mac, Quarter Pounder, Chicken McNuggets and Egg McMuffin.

• Brand mission: “Be our customers' favorite place and way to eat.”

McDonald’s in UAE

• Emirati-owned and operated by the Emirates Fast Food Corporation, with Mr. Rafic Fakih as the Managing Director.

• 66 food outlets in the UAE located at malls, petrol stations, drive thru.

• Has clean up campaigns, complimentary meals to children.

COMMUNITY INVOLVEMENT

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Active in the community, supporting many projects and events at schoolsand with environmental groups

Invites children with special needs to new restaurant openings offering complimentary meals and giving these children the opportunity for a funOuting

Volunteers to assist with clean up campaigns on beaches and in the sea

Helps with school events by decorating schools with balloons and offeringjuices and gifts to help in fundraising events.

Marketing mix

Product

Fast service mealEmphasis on developing a menu which

customer’s want- market researchHappy meal- kid’s favoriteEnjoys economies of scale

Product life cycle

• Care is taken not to adversely affect the sales of one choice by introducing a new choice, which will cannibalize sales from the existing one (trade off)

• Most of its products are in growth stage• Big Mac is in a maturity stage• Overall, McDonalds is in a growth stage

Video on Big Mac

Price

Customer’s perception of value determines the price charged

Value priced(combination of good quality and good service at a fair price)

Market penetration

Place

Relates to the distribution of the productOutlets are evenly located- readily accessibleFun place for children through tools such as

Ronald McDonald

PROMOTION

Advertising

Relates happy meal toys with movie characters

Direct marketing through birthday clubs, etc

BCG Matrix

• A method of evaluating businesses relative to the growth rate of their market and the organization’s share of the market.

• Dogs have small market shares and no growth prospects.• Cash cows have large shares of mature markets.• Question marks have small market shares in quickly

growing markets.• Stars have large shares of rapidly growing markets.

BCG MATRIX

Strengths

Global appeal

High profit margin

Unique product line

Well trained employee base

Wide reach

WEAKNESS

Perceived unhealthy image

Unable to attract local staff

OPPORTUNITIES

Room for growth and expansion

Flexible economic policies

Growing population

Growth oriented industry

THREATS

High competition from similar outlets

Growing health consciousness

Technological changes

Activities Interest Opinions Demographics

1 Fast food Student, working, adventurous,Energetic

Sports, entertainment, fashion, music

Influenced by peer pressure, energetic, impulse buying

Age:16-24Single, heavy users

2 Ambience Student, working/self made businessmen

Entertainment, recreation, fashion, socialization

Ambitious, future business and social issues, politics

Age: 20-35Single, light to medium users

3 Status symbol Student, working, hanging out, adventurous

Sports, entertainment, music, fashion, recreation

Energetic, impulse buying, influenced by peer pressure

Age: 16-25Single, light to medium users

4 Hygiene Working men, women, housewives

Home, recreation, shopping, fashion

Planned purchasing, strong views, politics, future

Age: 25-45Newly married, full nest. Light users

Segmentation

Targeting

• Mc Donald's target market is every segment of the demography!The segments of the demography are; family life-cycles, gender, age, Nationality, Income, Generation, Race etc.

• Main target customers are children: Happy meal toys• Adults: focuses on the cheap and quick nature of the

food• Business customer base: convenient to have a quick

lunch in a busy schedule

Video on Happy Meal for kids

Positioning

• Emphasis on enhancing its brand positioning through sponsorship of events and sports

It was one of eight corporate sponsors of the Millennium Dome Experience, investing £8 million in the Dome's community programme and learning experience.

It has been a major sponsor of international football, including the World Cup since 1994 and the Champions League from 1996 to 2000.

It has sponsored British athletics since 1993, notably the McDonald's Young Athletes' League, training 11 to 17 year olds.

It has sponsored Child Safety Week since 1994

BURGER KING

• Global chain of hamburger fast food restaurant headquartered in Florida, USA

• 19 food outlets located in UAE• Favorites- whopper, chicken, specialty value

meals• Friendly employees, clean surroundings, new

and exciting products

McDonald’s

• Goal-100% customer satisfaction• Single counter to take the order and serve.• Involved in lot of community development work.• Service-fast and friendly• Emphasis on quality• Food is made in mass production.• McDonald’s customer service policy is laid out in

the McDonald’s Guarantee

McDonald’s

• McDonald’s Guarantee states:”Your food will be hot, drive-thru orders would be double checked right and if customers are not satisfied, next meal would be on us”.

• At Mc Donald’s on global terms-differentiation strategy-courteous employees.

Burger King

• Goal-”Working for you”• Two separate counters to order and pick the

food.• The burger is being prepared in the kitchen as

and when orders are placed thereby promising a fresher meal.

• Lack of menu consistency.• Community development did not seem to be

there

Burger King

• Individualizing customer’s orders was a major motive accompanied with quick service.

• Managers took involvement by taking orders and training employees thereby ensuring a systematic employee behavior.

• Also, here pamphlets on their policies and terms needs to be provided.

CUSTOMER SATISFACTION SURVEY

OUR ANALYSIS

Thinking about your most recent visit to McDonald's to what level of satisfaction do you rank this visit?

Very poor

Poor

Average

Above average

Superior

What factors do you consider important when visiting Mc-Donald?

Not important

Somewhat important

Neutral

Important

Very important

PRICE

Food quality

Not important

Somewhat important

Neutral

Important

Very important

Promotion/Discount

Not important

Somewhat im-portant

Neutral

Important

Very important

Service

Not important

Somewhat im-portant

Neutral

Important

Very important

Hygiene

Not important

Somewhat im-portant

Neutral

Important

Very important

Convenience

Not important

Somewhat im-portant

Neutral

Important

Very important

Product

Not important

Somewhat im-portant

Neutral

Important

Very important

Will visit McDonald's in the near future

Agree

Disagree

Believes McDonald's deserves customer's loyalty

Agree

Disagree

Loyalty over the past years has grown stronger

Agree

Disagree

Promotional activities attract more customers

Agree

Disagree

McDonald's provides value for money

Agree

Disagree

I would recommend McDonald's to others

Yes

No

How much money do you spend on McDonald's on an av-erage?(per person)

Less than 15

15-30

30-50

More than 50

How did you get to know about McDonald's?

TV

Radio

Newspaper/Magazine

Family/friends

Recommendations

• Diversify its product line to a wider range of products.

• Include salads and vegetables also in the meals to attract customers to perceive the product as healthy.

• Structure the order process in a more efficient way.

• Work on attracting employees of different nationalities into its employee base.

Recommendations

• Safety committee: There should be a checklist everyday they go through and verify all things are in order

• McDonald’s needs to take following steps to help customers rank their visit as superior:

Good ambienceDifferent counters • From the survey, it can be inferred that majority of

the customers rank their visit as above average which has to be improved to a superior level.

Video McDonald’s first love

BYE BYE…

SEE YOU AT MC DONALDS

THANK YOU!