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

REPORT on The Marketing Process of McDonald's

Introduction McDonald’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.

McDonalds Business Model 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 to ensure that they adhere to the Quality, Service, Cleanliness and Value propositions offered by the company to its customers. and quality across geographies .

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

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.

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 Teenager Hangout with friends, but keep it affordable.

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.

Importance of PLC in McDonalds

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.

McDonald’s SWOT Analysis

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.

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

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.

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.

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.

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

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.

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.

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.

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.

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.

McDonalds Marketing Mix The following table summarizes the marketing mix decisions, including a list of some of the aspects of each of the 4Ps. Product Price Promotion Place Functionality Appearance Quality Packaging Brand Warranty Service/Support List price Discounts Allowances Financing Leasing options Advertising Personal selling Public relations Message Media Budget Channel members Channel motivation Market coverage Locations Logistics Service levels

Survey Questionnaire

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

Survey Questionnaire Q. Is the product line in McDonald’s adequate?

Survey Questionnaire Q. What is the main problem you faced at McDonald’s?

Survey Questionnaire Q. Which area do you think needs the most improvement?

Survey Questionnaire Q. What are Unique Selling Proposition of McDonald’s?

McDonald's People Promise Mission Statement: “ We value you, your growth and your contributions.”

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