Date post: | 15-Jul-2015 |
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• HISTORY• PAST AND PRESENT
STRATEGY• SWOT ANALYSIS• 4 P’S• ORGANISATIONAL
STRUCTURE• PROMOTIONAL
STRATEGY• PRODUCT MIX• TURNOVER• DISTRIBUTION
CHANNEL IN ABOARD
• SEGMENTATION
AGENDA
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As word of their success spread, franchisees started showing interest. However, the franchising system failed
McDonald's was started as a drive-in restaurant by two brothers, Richard and Maurice McDonald in California, US in the year 1937.
Mcdonald’s History
The original mascot of McDonald's was a man with a chef's hat on top of a hamburger shaped head whose name was Speedee
• At this point, Ray Kroc (Kroc), distributor for milkshake machines . Expressed interest in the business, and he finalized a deal with the McDonald brothers in 1954.
•He established a franchising company, the McDonald System Inc. and appointed franchisees.
•In 1961, he bought out the McDonald brothers' share for 16.2 Cr and changed the name of the company to McDonald's Corporation. In 1965, McDonald's went public...
Currently McDonald's operates in 121 countries & having more than 30000 restarunt
McDonald’s History
• McDonald's India has already contributed directly & indirectly Rs. 95 crore (approx. 16 per cent of total turnover) as revenue to the Center and the State towards Sales Tax, House tax and Income Tax in the last seven years. By 2005 this amount shall see an increase of more than 30 per cent per annum.
Contribution to Economic Growth
Current status of McDonald’s McDonald's is the world's #1 fast-food company by
sales
Serving burgers and fries, it operates more than 36,250 restaurants
It serves in more than 121 countries on six continents
On a day-to-day basis, more than Rs.318 Crores customers world-wide are served
Employs more than 4,47,000 people
The Boston Market and Chipotle Mexican Grill fast-casual chains are also owned by McDonald's
Global sales of McDonalds is Rs.5,34,780 Crores in 2013
Product Mix in China
Menu extensions, convince and value
It opened up a ‘Dollar Menu’ know as the “Value menu” that offered sandwiches and other items at a lower price
Pricing Strategy Success of McDonalds has been mainly due to its value for money offering to the Indian Consumers
Happy meals comprising of small burgers, coke + toy
Medium meal combo that consisted of burger, medium fries and medium coke with the price of Rs. 75
Maharaja Mac Meal – Rs. 94
Family Dines under Rs. 300
Place
McDonald's opened its doors in India in October 1996. Ever since then, our family restaurants in Mumbai, Delhi, Pune, Ahmedabad, Vadodara, Ludhiana, Jaipur, Noida Faridabad, Doraha, Manesar and Gurgaon have proceeded to demonstrate.
Promotion
The various promotion channels being used by McDonalds to effectively communicate the product information are-
“You deserve a break today, so get up and get away- To McDonalds”
“Aap ke zamane mein, baap ke zamane ke daam”
“Food, folks and fun.”
STP Model
McDonald’s has segmented their products according to 3 different basesSegmented groups - Adults, kids, students and family
The 3 bases for segmentation are :Demographic SegmentationPsychographic SegmentationBehavioral Segmentation
Target Segment What is McDonalds 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
Teenager Hangout with friends, but keep it affordable
Targeting
Declining market shareDeclining market share Weak product Weak product developmentdevelopment Quality and taste of Quality and taste of productsproducts
42% of US fast-food 42% of US fast-food hamburger businesshamburger business Consistency of foodConsistency of food Successful items: Fries, Successful items: Fries, Happy Meal, Aloo tikki, Egg Happy Meal, Aloo tikki, Egg McMuffin, PromotionsMcMuffin, Promotions Overseas marketOverseas market
International International expansionexpansion Only serving 1% of the Only serving 1% of the world’s populationworld’s population
Strength of competitionStrength of competition More health-conscious More health-conscious consumersconsumers
McDonald’s SWOT Analysis
Porter’s Five Competitive ForcesRivalry within industry:
Burger King, Wendy’s, In & Out etc.Brands - Big Mac, Filet o’ FishInnovation – celebrity endorsements, monopoly Online presence - company info, links to charity works
Threat of new entrants: Eg.. Burger King Threat of substitutes:
Any other food industry – high-class restaurants to hot dog standsHealthier alternatives (Newman’s Own), unique products
Bargaining power of buyers:Pay attention to customer demands and trendsOffer specialty products for all segmentsFirst mover- salads, cooking oil
Bargaining power of suppliers:McDonald’s relies on strong supplier and distributor relationshipsHelp suppliers lower costs
Suppliers include: Coca-Cola
Porter’s Five Competitive Forces