MARKETING STRATEGIES OF MCDONALD'S

McDonald's
I’m loving it

Group Members

3/28/2018
 Project Report

Prepared By…

Muzamil Shehroz

Talha Ashiq

Zain Anwar

Zoha Saleem

Beenish Parveez

Submitted To: Sir ANWER ZAIB KHAN

Department: Management Sciences (BBA 5th )

Marketing Management

McDonald’s
 ACKNOLEDGEMENT
IT GIVES US GREAT PLEASURE IN BRINGING OUT THIS REPORT OF THE PROJECT
ENTITLED “MARKETING IMPLEMENTATION ON McDonalds”. FIRSTLY WE WOULD
LIKE TO THANK OUR TEACHER AND OUR GROUP MEMBERS WHO WORKED HARD
IN PREPAPRATION OF THIS REPORT AND SHARED THEIR VALUABLE
SUGGESTIONS AND IDEAS WHEN WE WERE IN NEED OF THEM. WE ARE ALSO
GRATEFUL TO THEM FOR GIVING US THE OPPORTUNITY TO WORK WITH THEM
AND PROVIDING US THE NECESSARY THINGS FOR THE PROJECT. WE ARE VERY
GRATEFULL TO ALL INVOLVED IN THIS PROJECT AS WITHOUT THEIR
INSPITRATION AND VALUABLE SUGGESTION IT WOULD NOT HAVE BEEN
POSSIBLE TO DEVELOP THE PROJECT WITHIN THE TIME.

WITH SINCERE THANKS,

“ALL GROUP MEMEBERS”.

 Dedication
We dedicate this project to Allah Almighty our creator, our strong pillar, our source of
inspiration, wisdom, knowledge and understanding. He has been the source of our strength. We
also dedicate this work to our lecturer who has encouraged us all the way and whose
encouragement has made sure that we give it all it takes to finish that which we have started.
 Executive summery
Subject matter

McDonald's Organization is the world's largest chain of hamburger fast food restaurants, serving
around 68 million customers daily in 119 countries. It is a Multinational Organization that
operates globally. During the past four decades McDonalds has built a reputation for excellence
that has earned the respect of customers. Building the leading company has required continues
innovation, commitment to quality and dedication to customer service and value.

There are different objectives of every organization. In order to achieve these objectives different
targets are set. In order to achieve these targets management decides on different strategies.
These strategies are divided into many sub-parts and are useful for the running of the business.
The employee and the management know that they have to achieve through the targets which
have been set to them and the strategies they have adopted help them know the way that will help
them to achieve the objectives. Similarly McDonalds have different targets set to them and they
have different strategies to successfully achieve the targets. This report provides an analysis and
evaluation of marketing implementation on fast food restaurant “McDonalds”.
Marketing strategy of McDonald’s
 Table of content:

1. Introduction
2. History
3. Business structure
4. Mission and vision
5. Values
6. Hierarchy
7. Restaurant level
8. Polices
9. Corporate objective
10. Market objective
11. Long-term objectives
12. Company profile
13. Strategy direction
14. Reporting segments
15. International lead market
16. Customer needs and expectations
17. Customer satisfaction at McDonald's
18. Marketing strategies of McDonald’s
19. 4ps of McDonald's
19.1. Product
19.2. Price
19.3. Promotion
19.4. Place
20. The integrated marketing concept
21. McDonald's customer relation management
22. McDonald's portfolio
23. McDonald's and Market penetration
24. Value chain analysis
25. Segmentation
25.1. Demographic
25.2. Psychographic
25.3. Behavioral
26. McDonald's marketing mix
27. Ronald McDonald’s management strategy
28. Micro environment analysis
28.1. Supplier
28.2. Competitor
28.3. Customer
28.4. Public
28.5. Intermediaries
29. Macro environment analysis
29.1. Political factor
29.2. Economical factor
29.3. Social factor
29.4. Technological factor
29.5. Environmental factor
29.6. Legal factor
30. McDonald's portfolio from inside
31. McDonald's marketing intelligence
32. McDonald's information systems
33. Model of customer behavior
34. Characteristic effecting consumers behavior
34.1. Culture
34.2. Social
34.3. Personal
34.4. Psychological
35. McDonald’s buyer decision process
36. McDonald’s markets
37. Software of E-procurement
38. Types of E- procurement
38.1.Web base
38.2. ERMO
38.3. E-sourcing
38.4. E- tendering
38.5. E- reserve auctioning
38.6. E- informing
38.7. E- market sides
39. McDonald positioning strategy
40. SWOT analysis
41. Conclusion
 Introduction
McDonald’s Organization
McDonald’s Organization Is The World's Largest Chain Of Hamburger Fast Food Restaurants,
Serving Around 68 Million Customers Daily In 119 Countries. It Is A Multinational
Organization That Operates Globally And Its Headquarters Is In The United States, The
Company Began In 1940 As A Barbecue Restaurant Operated By The Eponymous Richard And
Maurice McDonalds; In 1948 They Reorganized Their Business As A Hamburger Stand Using
Production Line Principles. Businessman Ray Kroc Joined The Company As A Franchise Agent
In 1955. He Subsequently Purchased The Chain From The McDonald Brothers And Oversaw Its
Worldwide Growth. A McDonald’s Restaurant is operated by 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 Percent Over
The Three Years Ending In 2007 To $22.8 Billion, And 9 Percent Growth In Operating Income
To $3.9 Billion. McDonald’s primarily Sells Hamburgers, Cheeseburgers, Chicken, French Fries,
Breakfast Items, Soft Drinks, Shakes And Desserts. In Response To Changing Consumer Tastes,
The Company Has Expanded Its Menu To Include Salads, Wraps, Smoothies And Fruit.
History
The Business Began In 1940, With A Restaurant Opened By Brothers Richard And Maurice
Mcdonald In San Bernardino, California. Their Introduction Of The Speede Service System In
1948 Furthered The Principles Of The Modern Fast-Food Restaurant That The White Castle
Hamburger Chain Had Already Put Into Practice More Than Two Decades Earlier. The Original
Mascot of McDonald’s was A Man with a Chef's Hat On top Of a Hamburger Shaped Head
Who’s Name Was Speede. Speede Was Eventually Replaced With Ronald mcdonalds By 1967
When The Company First Filed A U.S. Trademark On A Clown Shaped Man Having Puffed Out
Costume Legs. McDonald’s First Filed For A U.S. Trademark On The Name Mcdonald's On
May 4, 1961, With The Description Drive-In Restaurant Services, Which Continues To Be
Renewed Through The End Of December 2009. In The Same Year, On September 13, 1961, The
Company Filed A Logo Trademark On An Overlapping, Double Arched "M" Symbol. The
Overlapping Double Arched "M" Symbol Logo Was Temporarily Disfavored By September 6,
1962, When A Trademark Was Filed For A Single Arch, Shaped Over Many Of The Early
McDonald’s Restaurants In The Early Years. Although The Golden Arches Appeared In Various
Forms, The Present Form As A Letter "M" Did Not Appear Until November 18, 1968, When
The Company Applied For A U.S. Trademark.
The Present Corporation Dates Its Founding To The Opening Of A Franchised Restaurant By
Ray Kroc, In Des Plaines, Illinois, On April 15, 1955, The Ninth Mcdonald's Restaurant Overall.
Kroc Later Purchased The mcdonald Brothers' Equity In The Company And Led Its Worldwide
Expansion, And The Company Became Listed On The Public Stock Markets In 1965.Kroc Was
Also Noted For Aggressive Business Practices, Compelling The mcdonald Brothers To Leave
The Fast Food Industry. The mcdonald Brothers And Kroc Feuded Over Control Of The
Business, As Documented In Both Kroc's Autobiography And In The mcdonald Brothers'
Autobiography. The Site Of The mcdonald Brothers' Original Restaurant Is Now A Monument.
With The Expansion Of McDonald’s Into Many International Markets, The Company Has
Become A Symbol Of Globalization And The Spread Of The American Way Of Life. Its
Prominence Has Also Made It A Frequent Topic Of Public Debates About Obesity, Corporate
Ethics And Consumer Responsibility.

Mcdonalds Business Structure

Mcdonalds Is One Of The Largest Food Chain Companies In The World And Has Much
Strength In Its Company That Allows It To Build A Functional Structure. Mcdonalds Has
Around 40 Million Customers Visiting The Store Each Day. It Has Over 30.000 Branches In 120
Countries Including Canada, Brazil, Germany, France, Japan, UK, Australia, And The U.S. It
Derives 80% Of Its Revenues From These Countries. One Of Their Greatest Strengths And
Missions Is To Create An Image In The Minds Of The People And Introduce Them To The Fast
Food Culture. The Company Functions with Great Delivery Speed, Customer Care And
Cleanliness.
Mcdonalds Has A Very Recognizable Corporate Symbol And Have Been Highly Successful
With Their Advertisements And Establishing The Brand Image And Logo In The Minds Of
Millions Of People. Another Strength mcdonalds Has Is Its Product Value. According To The
Article, Customers Know What To Expect When They Walk Into The Store, Great Emphasis
Goes To Human Resources By Satisfying Both The Customer And The Employees. Mcdonalds
Is Very Innovative With New Product Lines, New Trends And New Tastes. Its Diversity Into
Their New Business Ventures Is Also Considered Strength Of mcdonalds. Unfortunately,
mcdonalds Faces Issues That Many Companies Face And That Help Build A Stronger Business
Structure. The Two Main Competitors Of mcdonalds Are The Other Food Chains, Burger King
And KFC. Mcdonalds Marketing Strategy Is Concerned With The Internal Resources, External
Environment, And Its Basic Competencies Along With Its Share Holders.
McDonalds’ Faces Competition As well As Customers Changing Their Trends and Choices and
This Impacts the Company’s Business Structure. People Get Tired Of The Same Brand
Especially Ones They Are Used To And Ones That See Everywhere. McDonalds’ Is Very Over
Exposed. Another Thing McDonalds’ Has To Be Careful With As A Large Chain Is Making
Sure They Maintain Their Standards And Make Sure They Don’t Lack In Quality Service Or
Else It Will Affect The Whole Brand.
McDonalds’ Has To Be Very Careful With Its Competitors And Other Negative Situations That
Will Tear The Company Down. They Have To Have A Strong Business Structure And Have To
Implement Business Strategies To Keep The Company Going. The Article Mentions Sustainable
Competitive Advantage (SCA) And Relates It To McDonalds’ And Its Difficulties The Company
Comes Upon. The Article Defines SCA As The Advantage A Company Has Which Is Difficult
Or Impossible For Other Companies To Possess Or Break Through. It Can Either Be The Brand,
Dynamic Customer Care, Cost Structure Or Its Patent. The Article Lists Three Different Aspects
That Help In SCA And They Are:
1. The Managerial And Organizational Process Should Share A Good Integration And
Coordination. The Organization Should Learn And Bring About Changes According To
The Need Of The Hour And Should Always Be Flexible To Changes In The Environment
Such A Customer Trends, Legal Or Government Restriction And Developments In The
Technology. McDonalds’ Is Presently Concentrating On This.
2. Technological, Structural and Financial Assets of A Company Are An Excellent Market
Position.
3. The Vision Or The Dream With Which The Company Was Started. McDonalds’ Was
Started Out To
Help People Who Has Very Little Time To Cook Or Was Too Busy To Get Into A Proper
Restaurant. The Vision Was To Provide Quick Service, Cheap Products And Quality
Satisfaction.
McDonalds’ Started Off As A Success Story But As Like Any Company They Have Faced
Risks, Competitors And Major Setbacks. Its Core Competences And The SCA Both Internal And
External Make The Company Strong And Ranked Among The Top Businesses.
Personally, I Think McDonalds’ Is A Strong Company That Has Faced Many Risks And
Setbacks But Has Learned And Grown To Be Even Stronger. They Live By Their Vision And
Always Strive Towards Being The Best Fast Food Chain. They Use Many Of The Marketing
Strategies To Fix And Help Their Issues.
McDonalds’ Is Going For A New Marketing Concept Focusing On The Firms Existing Potential
Customers And Seeks To Earn Profit Through Customer Satisfaction With An Integrated
Marketing Program.

Mission & Values

McDonald’s Brand Mission Is To Be Our Customers' Favorite Place And Way To Eat. Our
Worldwide Operations Are Aligned Around A Global Strategy Called The Plan To Win, Which
Center On An Exceptional Customer Experience – People, Products, Place, Price And
Promotion. We Are Committed To Continuously Improving Our Operations And Enhancing Our
Customers' Experience.

McDonald’s Values
McDonalds Place The Customer Experience At The Core Of All They Do. Their Customers
Are The Reason For Our Existence. They Demonstrate Our Appreciation By Providing Them
With High Quality Food And Superior Service In A Clean, Welcoming Environment, At A Great
Value. Their Goal Is Quality, Service, Cleanliness And Value For Each And Every Customer,
Each And Every Time.

McDonalds Are Committed To Its People. They Provide Opportunity, Nurture Talent,
Develop Leaders And Reward Achievement. They Believe That A Team Of Well-Trained
Individuals With Diverse Backgrounds And Experiences, Working Together In An Environment
That Fosters Respect And Drives High Levels Of Engagement, Is Essential To Their Continued
Success.
McDonalds Believe In The McDonald’s System. McDonald’s Business Model, Depicted By
Their “Three-Legged Stool” Of Owner/Operators, Suppliers, And Company Employees, Is Their
Foundation, And Balancing The Interests Of All Three Groups Is Key.

McDonalds Operate Its Business Ethically. Sound Ethics Is Good Business. At McDonald’s,
They Hold Ourselves And Conduct Our Business To High Standards Of Fairness, Honesty, And
Integrity. They Are Individually Accountable And Collectively Responsible.

McDonalds Give Back To Their Communities. We Take Seriously The Responsibilities That
Come With Being A Leader. They Help Their Customers Build Better Communities, Support
Ronald House Charities, And Leverage Our Size, Scope And Resources To Help Make The
World A Better Place.
McDonalds Grow Our Business Profitably. McDonald’s Is A Publicly Traded Company. As
Such, They Work To Provide Sustained Profitable Growth For Their Shareholders. This
Requires A Continuous Focus On Their Customers And The Health Of Their System.
McDonalds Strive Continually To Improve. They Are A Learning Organization That Aims To
Anticipate And Respond To Changing Customer, Employee And System Needs Through
Constant Evolution And Innovation. McDonalds’ Has A Matrix Organization In Its Senior Top
Management And The Restaurant Level.

Senior Top Management Level

Jim Skinner –
Vice Chairman And Chief Executive Officer
Don Thompson-
President And Chief Operating Officer
Mike Andres-
Central Division President, McDonald’s USA
Jose Armani-
Corporate Executive Vice President Worldwide Supply Chain, Development, &
Franchising
Peter J. Bunsen-
Executive Vice President And Chief Financial Officer
Tim Fenton-
President Of Asia, Pacific, Middle East And Africa
Jan Fields-
President, McDonald’s USA, LLC
Richard Flourish-
Executive Vice President, Chief Human Resources Officer
Doug Gore-
President, McDonald’s Europe
Jim Johannes-
Executive Vice President, Chief Operations Officer, McDonald’s USA
Karen King-
East Division President - McDonald’s USA
Kevin Newell-
Chief Brand Officer
Steve Plot kin-
West Division President - McDonald’s USA
Gloria Santana-
Executive Vice President, General Counsel And Secretary

Restaurant Level
-General Manager
-Restaurant Manager
-1st Assistant Manager
-2nd Assistant Manager
-Shift Running Manager
-Floor Manager
-Staff Training Crew
-Crew Members.

Headquarters
McDonald’s Plaza, Located In Oak Brook, Illinois Is The Headquarters Of McDonald’s The
McDonald’s Headquarters Complex, McDonald’s Plaza, Is Located In Oak Brook, Illinois. It
Sits On The Site Of The Former Headquarters And Stabling Area Of Paul Butler, The Founder
Of Oak Brook. McDonald’s Moved Into The Oak Brook Facility From An Office Within The
Chicago Loop In 1971.

Organization Policies.
• To Recruit People Who Have A Positive Attitude Towards Customers, Themselves And Other
Employees And Who Are Capable Of Delivering The Highest Standards Of Quality, Service
And Cleanliness To Our Customers.
• To Employ Local People Wherever Possible.
•To Ensure That Employees And Job Applicants Are Selected, Trained, Promoted And Treated
On The Basis Of Their Relevant Skills, Talents And Performance And Without Reference To
Gender, Marital Status, Disability, Race, Color, Nationality, Ethnic Origin, Religion Or Belief
Or Sexual Orientation.
• To Provide A Clean, Safe, Healthy And Enjoyable Working Environment.
• To Provide Training And Development For All Employees To Enable Them To Achieve The
Highest Level Of Skills Possible.
• To Provide Career Opportunities Which Allow Employees To Develop To Their Full Potential.
• To Provide Challenging And Rewarding Work.
• To Pay For Performance.
• To Communicate Effectively With All Employees Via Crew Meetings, One-To-One
Discussions, Publications And Regular Employee Opinion Surveys.

McDonald’s Is The Leading Global Foodservice Retailer

McDonald’s Have More Than 30,000 Local Restaurants
McDonald’s Serving Nearly 50 Million People In More Than 121 Countries Each Day

McDonald’s Vision Statement

McDonald’s Vision Is To Make Every Customer In Every Store Smile. This Is A Vision Which
May be Easy To Acquire Through Other Ways But To-do It Professionally Is A Totally
Different Thing.

Corporate Objectives
To Serve Good Food In A Friendly And Fun environment
To Provide Good Returns To Its Shareholders
To Provide Its Customers With Food Of A High standard, Quick Service And Value For Money

Marketing Objectives
A Marketing Plan Must Be Created To Meet Clear Objectives.
Results Can Be Analyzed Regularly To See Whether Objectives Are Being Met.
Once Marketing Objectives Are Set The Next Stage Is To Define How They Will Be Achieved

LongTermObjectives
McDonald’s Vision Is To Be The World’s Best Quick Service Restaurants Experience.
Mcdonalds Is Committed To Maintaining And Developing The Best Food Products In The
Quick Service Restaurant Market.
In Order To Deliver This, The Company Has Made A Number Of Commitments To Food Safety
And Nutrition.

Promotional Pricing
Mcdonalds Always Offer Some Sort Of Promotional Pricing.

Penetration Pricing
Marketing Campaign In Order To Gain Some Market Share In The Industry

Value Pricing
“This Approach Is Used Where External Factors Such As Recession Or Increased Competition
force Companies To Provide 'Value' Products And Services To Retain Sales.”

Promotion
I’m Loving’ It Campaign To Attract Family Feature Artists To Target Teenagers The Right
Message Has To Be Communicated Tithe Right Audience Through The Right Media.

Scenarios
Economic Slowdown
Health Conscious Attitude Of People
Increased Competition

Company Profile
McDonald’s Is The World's Leading Global Food Service Retailer With Over
36,000 Locations Serving Approximately 69 Million Customers In Over 100
Countries Each Day. More Than 80% Of McDonald’s Restaurants
Worldwide Are Owned And Operated By Independent Local Business Men
And Women.

Our Strategic Direction

The Strength Of The Alignment Among The Company, Its Franchisees And
Suppliers (Collectively Referred To As The "System") Has Been Key To
McDonald’s Long-Term Success. By Leveraging Our System, We Have Been
Able To Identify, Implement And Scale Ideas That Meet Customers'
Changing Needs And Preferences. In Addition, Our Business Model Enables
McDonald’s To Consistently Deliver Locally-Relevant Restaurant
Experiences To Customers And Be An Integral Part Of The Communities We
Serve. Our Overall Vision Is For McDonald’s To Become A Modern,
Progressive Burger Company Delivering A Contemporary Customer
Experience. Modern Is About Getting The Brand To Where We Need To Be
Today And Progressive Is About Doing What It Takes To Be The
McDonald’s Our Customers Will Expect Tomorrow. To Realize This
Commitment, We Are Focused On Delivering Great Tasting, High-Quality
Food To Our Customers And Providing A World-Class Experience That
Makes Them Feel Welcome And Valued.

Reporting Segments
The Business Was Managed As Distinct Geographic Segments Through June
30, 2015, That Included The U.S., Europe, Asia/Pacific, Middle East And
Africa (APMEA) And Other Countries & Corporate (OCC) Including
Canada, Latin America And Corporate. Beginning July 1, 2015, McDonald’s
Started Operating Under A New Organizational Structure With The
Following Four Segments That Combine Markets With Similar
Characteristics, Challenges, And Opportunities For Growth:

U.S. - The Company’s Largest Segment, Accounting For More Than 40% Of
The Company’s 2014 Operating Income;

International Lead Markets - Established Markets Including Australia,

Canada, France, Germany, And The UK, Which Operate Within Similar
Economic And Competitive Dynamics, Offer Similar Growth Opportunities
And Collectively Represented About 40% Of The Company’s 2014
Operating Income;

High Growth Markets - Markets With Relatively Higher Restaurant

Expansion And Franchising Potential Including China, Italy, Poland, Russia,
Korea, Spain, Switzerland And The Netherlands. Together These Markets
Accounted For About 10% Of The Company’s 2014 Operating Income; And

Foundational Markets & Corporate - The Remaining Markets In

The McDonald’s System, Each Of Which Has The Potential To Operate
Under A Largely Franchised Model. Corporate Activities Will Also Be
Reported Within This Segment. In Conjunction With These Changes, The
Company Provided Recast Financial Information For The Years 2010 To
2014 And Quarters Ended March 31, 2014 To June 30, 2015.

Restaurant Ownership
We View Ourselves Primarily As A Franchisor And Believe Franchising Is
Important To Delivering Great Customer Experiences And Driving
Profitability. At Year-End 2014, More Than 80% Of McDonald’s Restaurants
Were Franchised. Of The Total McDonald’s Restaurants Worldwide:

Over 57% Are Conventional Franchisees

Approximately 24% Are Licensed To Foreign Affiliates Or Developmental

Licensees

Over 18% Are Company-Operated

Customer Needs And Expectation From McDonald’s

Customer Service
Quality Assurance
Value For Money
Variety Of Choices
Variety Of Good Brands
Stock Reserved

How Is McDonald’s Improving On Customer Service Expectations

The Company Measures Customer Satisfaction Through A Mystery Shopper Initiative Which
Looks At Customers' Experiences Within The Restaurant Along With Feedback Provided By
Our Customers. Our Progressive Business Principles Ensure We Are Constantly Changing And
Evolving Every Part Of Our Business And In Turn Everything That We Deliver To Our
Customers.

Customer Satisfaction At McDonald’s

The Values Of McDonald’s Reflect The Approach And Practices Of Customer Satisfaction. For
Example, McDonald’s Is Committed To Doing The Right Thing From The Beginning Of The
Business. The Company Has Been Developing And Implementing Several Policies, Programs
And Practices In Place That Allow The Business To Use Its Size And Scope To Help Make A
Difference Because McDonald’s Believes What’s Good For The Business, Is Good For All Of
Us (McDonald’s, 2012). The Author Has Revealed Information From McDonald’s (2012) That
Shows That Customers Are The First In The Business Of McDonald’s. The Information Also
Shows That McDonald’s Has Been Adopting Most Effective And Appropriate Strategies To
Offer High-Quality Products, Quicker Services In A Clean And Friendly Environment As Well
As Commitment Towards The Value For Money For The Customers.

Psychographic Segmentation
Psychographic Segmentation Is Based On Personality, Motives, Lifestyles, And
Geodemographics. McDonald’s Shows That They Really Care And Know Their Customers
Because, They Even Went As Far To This In Another Country. McDonald’s Has Adopted Itself
According To The Convenience And Lifestyle Of The Indian Consumers, As India Has A Huge
Vegetarian Population So McDonald’s Came Up With A Different And New Product Line
Which Includes Items Like Mc Veggie Burger And Mc Aloo Tike Burger. They Also Made
McDonald’s As A Place To Relax And Even For Entertainment.

Demographic Segmentation
Demographic Segmentation Is Segmenting Markets By Age, Gender, Income, Ethnic
Background, And Family Life Cycle. "McDonald’s Offers Different Products Like Happy Meal
Which Includes A Free Toy For Kids. For Families It Has Made Different Outlets And Meals
Which Are Suitable For Takeaways And Drive-Thru. McDonald’s Has Made Its Environment
Which Is Suitable For Students Of School To Hang Out With Their Friends And Can Get Their
Lunch At McDonald’s."

Marketing Strategy Of Mcdonalds

The First Restaurant Opened By Mcdonalds Company Was In San Bernardino, California Way
Back In 1948. At This Moment, Mcdonalds Is The World’s Finest And Leading Food Service
Company With More Than $40 Billion Sales From 30, 000 Outlets All Over The World.
However, This Company Didn’t Grow Quickly Because Of Fortune. Mcdonalds Has Reached
Where They Are Now Due To Hard Work And Effective Marketing Strategies.
One Of The Company’s Greatest Achievements Was The Opening Of The Happy Meal. In Year
1970’s, Mcdonalds Company Was Searching A New Ways To Catch The Attention Of
Customers. Study Indicated That Little Ones Were Great Influencers In The Company’s
Decision And Making Process. This Led In The World’s First Happy Meal, A Combination Of
Meal Suitable For Children Including A Free Toy Which Place Mcdonalds Smack-Dab In The
Children Sites All Over The World.

Marketing Strategy: 4P’S

After Analyzing The Market Condition, Finding The Main Factor, Target Segment As Well As
Understanding The Demand Of The Market, Every Company Requires Coming Up With An
Offers Or Such Kind Of Plan Which Speed Up The Development Of The Business. For That,
Mcdonalds 5P’s Marketing Strategy That Follows Product, Place, Price, Promotion And Lastly
People.

Types Of Consumer Products-

There Are Four Different Types Of Consumer Products Convenience Products, Shopping
Products, Specialty Products, And Unsought Products.
Convenience Products- Its Inexpensive And Has Little Shopping Efforts.
Shopping Products- More Expensive And In Few Stores.
Specialty Products- A Buyer Spends Allot Of Time Looking For A Certain Item And Wont
Except Any Thing Other Product To Replace It.
Unsought Products- A Product That No Ones Much About Or A Product Buyers Don’t Look
For As Much

Product
The Important Thing To Remember When Offering Menu Items To Customers Is That They
Have A Choice. They Have A Huge Number Of Ways Of Spending Their Money And Places To
Spend It. Therefore, McDonald’s Places Considerable Emphasis On Developing A Menu Which
Customers Want. Market Research Establishes Exactly What This Is. However, Customers'
Requirements Change Over Time. What Is Fashionable And Attractive Today May Be Discarded
Tomorrow. Marketing Continuously Monitors Customers' Preferences. In Order To Meet These
Changes, McDonald’s Has Introduced New Products And Phased Out Old Ones, And Will
Continue To Do So. 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).
McDonald’s Knows That Items On Its Menu Will Vary In Popularity. Their Ability To Generate
Profits Will Vary At Different Points In Their Life Cycle.

Price
The Customer's Perception Of Value Is An Important Determinant Of The Price Charged.
Customers Draw Their Own Mental Picture Of What A Product Is Worth. A Product Is More
Than A Physical Item, It Also Has Psychological Connotations For The Customer. The Danger
Of Using Low Price As A Marketing Tool Is That The Customer May Feel That Quality Is Being
Compromised. It Is Important When Deciding On Price To Be Fully Aware Of The Brand And
Its Integrity. A Further Consequence Of Price Reduction Is That Competitors Match Prices
Resulting In No Extra Demand. This Means The Profit Margin Has Been Reduced Without
Increasing Sales.

Promotions
The Promotions Aspect Of The Marketing Mix Covers All Types Of Marketing
Communications. The Methods Include Advertising, Sometimes Known As 'Above The Line'
Activity. Advertising Is Conducted On TV, Radio, Cinema, Online, Poster Sites And In The
Press (Newspapers, Magazines). What Distinguishes Advertising From Other Marketing
Communications Is That Media Owners Are Paid Before The Advertiser Can Take Space In The
Medium. Other Promotional Methods Include Sales Promotions, Point Of Sale Display,
Merchandising, Direct Mail, Telemarketing, Exhibitions, Seminars, Loyalty Schemes, Door
Drops, Demonstrations, Etc.

Place
Place In The Marketing Mix, Is Not Just About The Physical Location Or Distribution Points For
Products. It Encompasses The Management Of A Range Of Processes Involved In Bringing
Products To The End Consumer.

The IMC Concept Of Mcdonalds

The IMC Concept Of Mcdonalds Fast Food Chains Nowadays Is Linked With The Efficiency Of
The Capitalist And The Practices Of The American Consumers. This Feature Has Become The
Recipe For McDonald’s Success And Popularity. McDonald’s Restaurants Offer A Substantially
Uniform Menu, Common In The Usual Fast Foods. This Includes Hamburgers, Cheeseburgers,
Chicken Sandwiches, French Fries, Salads, Milk Shakes, Desserts And Ice Cream Sundaes.

Mcdonalds And CRM

Mcdonalds Uses Power centre By Astute Solutions, And Being A Global Chain With Millions
Of Customers, It Needs To Use An Effective And Reliable Way Of Connecting With Its
Customers And Keep Ahead Of This Very Competitive Market.

Power centre Has Enabled Them To Collect Data About The Views Of Their Customers,
Whether Or Not They’re Satisfied As Well Things That Cause Dissatisfaction. The Data Is
Available In Real Time And Allows Mcdonalds To Share The Information With People Across
The Organization Quickly For The Most Relevant Results. The Power centre Software Provides
Mcdonalds With Up To Date Databases For Which Can Measure Satisfaction Results Across
The Brand As A Whole, By Region Or Even Down To Individual Restaurants. This Makes It
Easy To Identify Problems And Get Them Resolved Quickly. Mcdonalds Have Benefitted From
The Aftercare And Support From Astute Solutions Which Make Them More Than A Software
Provider. Helping Businesses To Monitor The Reactions Of Their Customers, Astute Solutions
Provide Continued Advice And Offer Recommendations, Giving A Much More Personal Service
Than Simply As A Software Vendor. CRM Software Like Power centre Is Suitable For Big
Corporations Like Mcdonalds But Its Software Can Also Provide Great Solutions For Smaller
Businesses Too To Help Them Connect With Customers And Get To Understand There Likes
And Needs Better. McDonald’s Aims To Bring Reading Into The Digital Age With ‘Landmark’
Scheme mcdonald’s Is Renewing Its Reading Initiative After Smashing Targets It Set In The
Initial Campaign Launched In 2013.

The New Scheme Will See 14 Million More Books Featuring Extracts From Ronald Dahl’s Most
Popular Stories Distributed To Children In A Partnership Between McDonald’s, National
Literacy Trust, Penguin Random House Children’s UK And The Ronald Dahl Literary Estate.
The Original Project Aimed To Hand Out 15 Million Books Across The UK But Actually
Delivered Nearly 23 Million.
“We Exceeded The Targets In Terms Of Volumes Of Books And Engagement Rates Have Been
Fantastic,” Steve Hill, McDonald’s UK Head Of Marketing Told Marketing Week.
“When We Asked Parents Whether We Should Continue The Initiative As Part Of The Happy
Meal Promotion, Nine Out Of 10 Said Yes.”
McDonald’s Is Also An Interactive App To Offer A More Immersive Experience. The App
Includes Voice Recognition Technology, Triggering Certain Sounds Or Colors When A
Particular Word Is Read Out.
“We Wanted To Create A Sense Of Sharing Rather Than Reading Being A Solo Experience. We
Are Bringing Reading Into The Digital Age,” He Commented.
The Brand Will Be Promoting The Scheme In All Its Restaurants. It Will Also Launch A TV Ad
Across A Variety Of Children’s Channels And Organize Live Events In Major Cities In The UK.
The Brand’s Original Initiative Is Based On Research By NLT, Which Revealed One In Three
Children Don’t Own A Book And Half Of Children Don’t Enjoy Reading.
“Given The Scale Of Our Brand And Partnerships, It’s An Important Role We Can Play To
Make Reading More Fun,” Said Hill.
When The Campaign First Launched The Brand Was Criticized For Marketing To Children,
Which Is Why The Marketing Will Primarily Focus On The World Of Ronald Dahl Rather Than
The McDonald’s Brand.
“We Operate Within Strict Guidelines,” Hill Explained.
“With The Initiative, Children Can Immerse Themselves In The World Of Ronald Dahl And
Parents Are Able To Buy The Books For £1 Without Having To Purchase A Happy Meal. A Lot
Of Our Focus Is About Engaging With Parents Around The Promotion.”

McDonald’s Portfolio
With Mature U.S. And European Markets Along With Saturated Fast Food Markets Resulting In
An Increase In Pressure From Competition, McDonald’s (MCD) Has Been Diversifying Its
Portfolio To Maintain Growth.

McCabe Was An Initiative That Focused On Capturing The Hot And Cold Beverage Market In
The Restaurant Industry. It’s Covered By The Power shares Dynamic Leisure And Entertainment
ETF (PEJ) And The Power shares Dynamic Leisure And Entertainment ETF (PBJ).

McCabe Would Also Help McDonald’s Increase Foot Traffic During Breakfast, Or Non-Peak,
Hours. The McCabe Strategy Took Two Forms—Opening Of A Separate McCabe Store And
Introducing McCabe Menu Items In Existing McDonald’s Restaurants.
McDonald’s Launched Its First McCabe Store In Chicago In 2001. It Introduced Its Menus
Across McDonald’s Stores In The U.S. In 2009. Menu Items Include Coffees, Lattes,
Cappuccino, Hot Chocolate, And Smoothies. So, How Successful Was This Effort? Comparable
Sales In The U.S. Grew In 2011 To 4.2% Compared To 3.3% In 2010. However, The
Comparable Sales Declined To 3.3% In 2012 And To -0.2% In 2013 From 4.8% In 2011. The
Guest Counts Have Declined From 5.3% In 2010 To -1.6% In 2013. May Be The McCabe
Strategy Hasn’t Fared So Well In The U.S. After All.

McDonald’s Is Still Aggressive On The Store Strategy. It’s Looking At International Markets To
Fuel Growth. According To Bean scene, McCabe Opened In Australia In 1993 And It Had 653
Stores As Of 2011. In 2013, McDonald’s Said It Will Hire 75,000 Employees In China To Open
McCabe’s According To A Report By Sbrchina. In India, A Portion Of McDonald’s Restaurants
Will Be Dedicated To A McCabe Section, According To The Times Of India.

1. Mcdonalds And Market Penetration

McDonald’s Has A New Strategy To Penetrate The Market This Summer. The Object Of Market
Penetration Is To Sell More Of The Current Product To The Current Market Segment. This Can
Be A Low Risk Marketing Strategy Because Often The Company Knows The Product And The
Segment Very Well. What McDonald’s Is Planning To Do This Summer Is Offer Soft Drinks,
No Matter What Size, For A $1. The Company Would Like Their Locations To Become A
Destination Of Preference For Beverage Buyers For A 150 Day Period This Summer. The
Reason The Restaurants Can Offer The Soft Drinks For $1 Is That These Drinks Usually
Account For About A 90% Profit Margin. Hopefully, By Discounting The Soft Drinks They Will
Increase Consumers, Which Will Therefore Buy Other Products And Increase The Total Sales
Mix. Some Franchise Owners Are Worried This Promotion Will Hurt The Bottom Line Because
The High Margin On Soft Drinks Often Offsets The Low Margins On Other Products. The
McDonald’s Strategy Is To Steal Customers Not Only From Other Restaurants But From Other
Places Consumers Buy Soft Drinks, Like 7 Eleven. Then When The Customer Is In The
McDonald’s They Will Be Introduce To Other New Beverages; Such As, Smoothies, Frappes
And Ice Coffee. The Company Has A Strategy To Add $125,000 Additional New Sales Per
Store In New Beverage Sales Alone. One Problem With Discounting Soda Is That The
Consumers Will Sometimes Bypass The Other New Beverages For The Soda On Special. This
Kind Of Cannibalization Is To Be Expected But As Long As The Sales Increase Overall The
Strategy Will Be Considered A Success.

A Value Chain Analysis Of Mcdonalds

The Business Began In 1940, With A Restaurant Opened By Brothers Dick And Mac In San,
California. After That In Year 1955 McDonald’s Corporation Was Founded By Raymond Kroc
When He Became National Franchise Agent And Eventually Bought Out The Mcdonalds And
Became The CEO And The President.
It Is Ninth Most Valuable Brand In The World And It Is Also The Largest Job Training
Organization In United States, It Also Surpassed US Army In This Field.
Mcdonalds Is Present In 120 Countries And Territories Around The World And Serve Nearly 54
Million Customers Each Day.
McDonald’s Mission Is To Be Our Customers' Favorite Place And Way To Eat With Inspired
People Who Delight Each Customer With Unmatched Quality, Service, Cleanliness And Value
Every Time We Invite You To Be The Part Of This Winning Team And Give Yourself An
Opportunity To Grow With The Family Of People Striving To Create Smiles On The Faces Of
Millions Of People Everyday.
Logistics Is A Powerful Management Tool For A Global Organization Because It Is An
Approach To Doing Business That Works Everywhere. Mcdonalds Saw The Turnaround Of
Logistics Department Few Years Back, Now The Franchise And Corporate Managers Use An
Online Operating System And Plan Exactly What To Purchase, Pack And Ship And Exactly
How Many Trucks Will Be Requires For The Same.
The Company Saw Dramatic Changes In European Operations After Implementing This
Technology. They Reduced Raw Waste And Inventory Stock By 30% And They Were Able To
Save 60 Min Per Week When They Were Able To Half The Order Time. Since Product Life
Cycle Is Getting More Shorter And Competition Is Becoming More Intense. It Is Very Critical
To Ship Right Amount To Each Restaurant Therefore Great Deal Of Planning Is Required, And
The Company Get Its Deliveries At Night So That Employees Are Not Tied Up Dodging Carts
And Inconvenience Of Parking Large Trucks In Front Of The Restaurant.
Transport Packaging Makes Up An Important Part Of Our Packaging. As Far As Possible,
Mcdonalds Try To Use Re-Usable Containers. Salads, Buns, Frying Oil And Coca-Cola Syrup
Are Supplied Entirely Or Partially In Re-Usable Containers.

Segmentation:
Market Segmentation Is Defined As Dividing A Single Market Into Smaller Segments. The
Basic Reason For Dividing The Market Into Small Segments Is To Make It Simple To Address
The Needs Of Smaller Groups Of Customers And Try To Manufacture Different Products
According To Their Mconsuming Habits. Particularly It Is Done According To The People Who
Have Similar. It Can Be Done On The Basis Of Age, Gender, Lifestyle, Region, Etc.
Mcdonalds Segmentation It Has Done Is On Three Different Bases:

1) Demographic Segmentation: Kids, Family And Students

Mcdonalds Offers Different Products Like Happy Meal Which Includes A Free Toy For Kids.
For Families It Has Made Different Outlets And Meals Which Are Suitable For Takeaways And
Drive-Thru. Mcdonalds Has Made Its Environment Which Is Suitable For Students Of School To
Hang Out With Their Friends And Can Get Their Lunch At Mcdonalds.

2) Psychographic Segmentation:
Convenience And Lifestyle Mcdonalds Has Adopted Itself According To The Convenience And
Lifestyle Of The Indian Consumers, As India Has A Huge Vegetarian Population So Mcdonalds
Came Up With A Different And New Product Line Which Includes Items Like Mc Veggie
Burger And Mc Aloo Tike Burger. They Also Made Mcdonalds As A Place To Relax And Even
For Entertainment.

3) Behavioral Segmentation: Occasions, For E.G. Birthday Parties Of Kids

Mcdonalds Can Get More Customers By Whom They Can Get Most Of The Share Of India Fast
Food Industry But They Should Emphasis On Their Targeting Technique

Marketing Mix Of Mcdonalds

The Marketing Mix Of Mcdonalds Consists Of The Various Elements In The Marketing Mix
Which Form The Core Of A Company’s Marketing System And Hence Helps To Achieve
Marketing Objectives. The Marketing Mix Of Mcdonalds Discusses The 4p’s Of The Leading
Burger Chain Across India Offering The Tastiest Burgers And French Fries.

Product :-
McDonald’s Places Considerable Emphasis On Developing A Menu Which Customers Want.
Market Research Establishes Exactly What This Is. However, Customers’ Requirements Change
Over Time. In Order To Meet These Changes, McDonald’s Has Introduced New Products And
Phased Out Old Ones, And Will Continue To Do So. 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). McDonald’s Knows That Items On Its Menu Will Vary In
Popularity. Their Ability To Generate Profits Will Vary At Different Points In Their Cycle. In
India Mcdonalds Has A Diversified Product Range Focussing More On The Vegetarian Products
As Most Consumers In India Are Primarily Vegetarian. The Happy Meal For The Children Is A
Great Seller Among Others.

Price :-
The Customer’s Perception Of Value Is An Important Determinant Of The Price Charged.
Customers Draw Their Own Mental Picture Of What A Product Is Worth. A Product Is More
Than A Physical Item, It Also Has Psychological Connotations For The Customer. The Danger
Of Using Low Price As A Marketing Tool Is That The Customer May Feel That Quality Is Being
Compromised. It Is Important When Deciding On Price To Be Fully Aware Of The Brand And
Its Integrity.In India Mcdonalds Classifies Its Products Into 2 Categories Namely The Branded
Affordability (BA) And Branded Core Value Products (BCV). The BCV Products Mainly
Include The Mcveggie And Mcchicken Burgers That Cost Rs 50-60 And The BA Products
Include McAdoo Tike And Chicken Mcgrill Burgers Which Cost Rs20-3 This Has Been Done
To Satisfy Consumers Which Different Price Perceptions.

Promotion:-
The Promotions Aspect Of The Marketing Mix Covers All Types Of Marketing
Communications One Of The Methods Employed Is Advertising, Advertising Is Conducted On
TV, Radio, In Cinema, Online, Using Poster Sites And In The Press For Example In Newspapers
And Magazines. Other Promotional Methods Include Sales Promotions, Point Of Sale Display,
Merchandising, Direct Mail, Loyalty Schemes, Door Drops, Etc. The Skill In Marketing
Communications Is To Develop A Campaign Which Uses Several Of These Methods In A Way
That Provides The Most Effective Results. For Example, TV Advertising Makes People Aware
Of A Food Item And Press Advertising Provides More Detail. This May Be Supported By In-
Store Promotions To Get People To Try The Product And A Collectable Promotional Device To
Encourage Them To Keep On Buying The Item.

The Ronald Management Strategy…

Ronald Is A Nostalgic Clown Character That Represents The McDonald’s Brand Globally In
Electronic, Print, And Television Marketing Materials. (For Many, The Clown Is Rather
Terrifying, Especially If You’re As Scared Of Clowns As I Am!) This Mascot Inhabits A
Fantasy World Called Mcdonaldland And Has Adventures With His Friends, The Hamburglar,
Mayor Mccheese, Grimace, Birdie The Early Bird, And The Fry Kids. Ronald Has Been Around
Since 1963, Modeled After Willard Scott, Who Played Bozo The Clown On WRC-TV In
Washington, DC, At That Time. Like Ronald, We Believe McDonald’s Strategy Still Generates
Value For Its Consumers And Investors, But It’s Becoming Old And Less Effective As Each Year
Goes By. To Continue To Grow Nominal Sales At 3-5% Each Year, McDonald’s Will Have To
Keep Innovating In Both The U.S. And Abroad. McDonald’s Core Strategy Focuses On Five Key
Pillars: People, Product, Place, Price, And Promotion. More Specifically, Over The Past Three
Years, The Company Has Been Focusing On Optimizing Its Menus, Modernizing Its Experience,
And Broadening Its Accessibility. It Has Been Able To Implement New Strategies In A Three-
Step Process It Describes As “Learn, Share, Scale,” Through Which It First Conducts Market
Research And Shares Its Knowledge With Management And Franchisees, And Then Scales And
Implements New Products…

Micro Environmental Analysis

Micro Environment Covers The Internal Factors Which Influence The Operations Of
Organization. McDonald’s Is Influenced By Its Internal Factors .The Internal Factors Are-
Suppliers
Competitors
Customers
Publics
Intermediaries
Suppliers
McDonald’s Has Its Own Suppliers And It Practices Very Close Relationship With Suppliers.
McDonald’s Divides Its Suppliers Into Two Divisions Who Are Called Direct Suppliers And
Indirect Suppliers. The Indirect Suppliers Deliver The Ingredients To The Direct Suppliers And
The Direct Suppliers Produce The Food For McDonald’s. McDonald’s Understands The
Importance Of Its Suppliers And Always Co-Operates With Professional Manners.
(Aboutmcdonalds.Com)

Competitors
As The Global Market Of 21st Century Is Highly Competitive, McDonald’s Has Some Strong
Competitors, For Example, KFC, Burger King, Pizza Hut Etc. All Competitors Have Good
Brand Image, Remarkable Market Share, Long Business History And So On. On This
Competitive Situation, McDonald’s Needs To Consider Its Competitors Power To Ensure Its
Dominating Position.

Customers
McDonald’s Is Serving Millions Of Customers Daily. In Last Three Months, McDonald’s Served
About 329 Million People In UK (News Mirror, 22 Oct, 2010). In First World's Countries, All
People Are Targeted As Customers By McDonald’s. It Serves Foods For Almost Every Kind Of
People. McDonald’s Takes The Customers As Their First Priority And Tries To Ensure
Maximum Satisfaction.

The Public
The Public Includes The External Groups Who Are Interested And Related With The Company.
McDonald’s Works With Considering The Power And Importance Of Different Groups For
Instance, Media, Central And Local Government, Financial Community, Consumer Group,
Pressure Group And So On.

Intermediaries
As The Business Operation Of Fast Food Chain Is Different From Other Hospitality
Organization Like Hotel Or Air Lines Or Tour Operators, The Intermediaries Are Not Required
In This Case. To Promote The Business, Promotional Activities Are Normally Done By The
Company And Every Restaurant Works As Its Distribution Centre.

Business Environment
The Business Environment Means The Overall (Internal And External) Circumstances Of
Organization. Every Organization Including McDonald’s Is More Or Less Influenced By
Environmental Factors. In Business Discussion, Internal Factors Of An Organization Are
Discussed As A Part Of Micro Environment And External Factors Are Treated As Macro
Environment.

Macro Environmental Analysis

Macro Analysis Is Also Known As PESTEL Analysis Which Stands For-
Political Factors
Economical Factors
Social Factors
Technological Factors
Environmental Factors
Legal Factors

Political Factors
The Business Operation Of An Organization Is Always Influenced By The Policies Of State And
Its Government. McDonald’s Business Is Also Under The Control Of Government's Rules And
Regulations. The Main Issue Of Controlling Food Business Is Health And Other Issues Are
License, Employee Laws, Tax Issues Etc. McDonald’s Follows The Local Government's Policies
As Well As Foreign Investment Policies On Its Franchise Business Strategy. Political Instability
Of Local State Is Also Affects McDonald’s Business.

Economical Factors
Economical Factors Always Come As Vital Issue To Business Organisations. For Example,
More Or Less All Companies Are Affected By Ongoing Global Economic Slowdown. Due To
International Business Operation, McDonald’s Faces Different Scale Of Tax And Revenue
Measurement In Different Country. McDonald’s Also Faces Difficulties Because Of
International Currency Fluctuations Especially In Its Global Food Distribution. Local
Economical Condition Is Also Responsible For Affecting McDonald’s Operation. If The Local
Economy Is Critical, People Are Usually Discouraged To Spend More Money For Their Food.
As A Result, Company Is Affected.

Social Factors
The Life Style Of People Is Being Changed And The Demand Of This Change Affects
McDonald’s. The People Of This Modern Urban Society Expect The Highest Level Of Service
And All The Latest Facilities From A Hospitality Organization. In Addition, This Changing
Demand Is Different In Society To Society And Country To Country. For Example, In India,
Hindu People Prefer Vegetable, Muslim People Avoid Pork. To Fulfil The Customers'
Expectation, McDonald’s Needs To Research The Market And Also Needs To Provide Effective
Food Menu.

Technological Factors
The Impact Of Technological Innovation Is Also Considerable To Meet The Customers'
Expectation. As All Existing Food Chains For Instance, KFC, Pizza Hut Etc, Compete Each
Other, McDonald’s Has To Ensure The All Technological Access To Influence The Customers.
Modern And Speedy Distribution Channels, Easy And Quick Payment Facility, Customer
Entertaining Equipment In Store, Wireless Internet Facility In All Stores Etc. Can Help
McDonald’s To Keep On Its Success.

Environmental Factors
McDonald’s Is Criticized For Using Some Harmful Elements For Example, Non-Biodegradable
Substances For Its Drinks Glasses. Styrofoam Containers Are Also Being Used In McDonald’s
For Meals And It Is Seriously Discouraged To Use. Environmentalists Criticize McDonald’s
Because Of Food Packaging Based On Polystyrene. For The Greater Interest Of Environment
Issue, Franchisees Are Called By Environmentalists To Be Aware About This Issue.

Legal Factors
It Is Mandatory To Follow Some Rules And Procedures To Run Its Operations. For Example,
Registrations, Taxes, Stuff Laws, Safety Rules Etc. In Muslim Countries, It Is Important To
Have Halal Food Authorization And McDonald’s Should Care The Customers' Belief On It. If
Every Company Maintains The Legal Process, Not Only The Company Itself But Also Every
Part Of Our Society Will Be Benefited. McDonald’s, As A Giant Food Chain, Has To Be
Seriously Responsible Regarding Legal Issues.

McDonald’s Profits From Insight

LONDON: Customer Research Has Been At The Heart Of The Consistent UK Performance Of
McDonald’s, The Fast Food Business, Its Chief Executive Has Said.
"One Thing I Did When I Joined The Business In 2006 Was To Really Dial Up The Investment
In Consumer Insight," Jill Told The Daily Telegraph.
Back Then She Was The Chief Marketing Officer And She Recalled The Problems The Brand
Was Facing Following The Super Size Me Documentary Which Had Questioned Everything
From Nutrition Standards To Advertising Methods.
That Film Had Not Presented A Balanced View, She Said, "But It Was A Bit Of A Wake-Up
Call In Terms Of Needing To Do Better About Communicating To Consumers The Quality Of
Our Food And The Truth About Our Food".
Her Success In That Regard Is Evident In 34 Consecutive Quarters Of Sales Growth, The
Telegraph Noted.
"[A]Absolutely Number One Is Get Closer To Your Customers And Get Superior Insight, That's
A Real Competitive Advantage," She Declared.
The Other Arm Of Her Strategy Has Been To "Invest In What Is Going To Make The Difference
To Them [Customers] And What Is Going To Drive Additional Visits".
So In The Six Years Leading Up To The London Olympics In 2012 Restaurants Were
Refurbished And Food Quality Made A Priority. The Value Of The Latter Approach Was
Demonstrated During The Horsemeat Scandal Which Swept The UK In 2013, With
Supermarkets, Food Manufacturers And Rival Burger Chains Finding Traces Of Horsemeat In
Their Products.
The Resulting Uproar "Wasn't Great For The Industry And It Wasn't Great For Britain", Said.
"However, We Were In Some Ways Pleased Because It Gave Us An Opportunity To
Demonstrate Really Tangibly What A Strong And Robust Supply Chain System McDonald’s
Has … It Gave Another Reason For Customers To Trust Us."
As Well As Staying Close To The Customer, McDonald’s Has Developed The Ability To React
Quickly To Changing Food Fashions, Such As Introducing Smoothies And Frappes.
"What We Are Pretty Good At Is Fast Following," Said. "We See A Trend And Are Able To
Democratize It – So Give Great Quality, More Convenience, And At Better Prices Than The
Competition."

McDonald’s Marketing Intelligence System

Dr. Malcolm McDonald’s Concept Of Marketing Intelligence System Is Depicted In Fig. 1.
As Explained By, Marketing Research And Marketing Information Are Inseparable And Hence
Synergistically Entwined To Effect A Good Marketing Strategy. From The Above, Data From
The Market Through Marketing Research Are Processed And Analyzed To Form Relevant
Marketing Information Which Forms Intelligence (Knowledge) To Make Quality Decision
Focuses On Key Determinants - For Example, The Significance Of Market Share Or Correct
Service Levels For Profitable Growth. In Marketing, These Can Be Realized With A Shrewd
Marketing Mix (I.E. The 7 up’s).

McDonald’s Information System

The Key Kitchen Positions Included At Least One Person On “Batch “Cooking Meats,
One “Initiator” Beginning The Sandwich Assembly Process, And One “Assembler” Completing
It. The Fourth Person Cooked French Fries. The Batch Person Placed A Number Of Burger
Patties On Four Two-Sided Clamshell Grills.
Once A Customer Has Ordered A Burger, The Counter Person Punched The Request Into The
Computer And The Order Appeared On Overhead Monitor In The Assembly, Or Prep, Area. The
Predominant Feature In This Section Was A Two-Sided Prep Table, Affixed With A Top-
Loading Toaster At One End, Condiment Guns In The Middle, And Ochs At The Other End;
Wrappers And Boxes Were Stored Underneath. Two Monitors Were Stationed Overhead At
Both Extremes. Generally, Two People, An Initiator And An Assembler Worked This Table,
Although Their Number Doubled During Peak Hours. When An Order Appeared Onscreen, The
Initiator Took A Split Bun From The Bun Cart And Dropped It Into A High-Efficiency Toaster,
Removing The Toasted Halves That Slid Out, Placed Them On The Correct Wrapper (Color-
Coded And Clearly Labeled), And Applied Condiments In Pre-Measured Doses From An
Automatic Dispenser. The Bun Was Then Passed To The Assembler, Who Added Appropriate
Toppings, Such As Pickles, Lettuce, And Cheese, Tone Half And Placed A Meat Patty From The
UHC On The Other, Wrapped The Sandwich Securely, And Placed It On The Heated Landing
Zone A Heated Table Within The Counter Service Area, Where It Remained Warm Until It Was
Passed To The Customer Who Ordered It.

Model Of Consumers Behavior

Consumer Is The Person Who Consumes Goods & Services. BEHAVIOUR-: It Is A Specific
Type Of Manner In Which A Person Behaves CONSUMER BEHAVIOUR.
The Success Of The Product Line Depends On A Number Of Factors. For An Example, If The
Image Of The Parent Brand Is One Of Quality, Consumers Are More Likely To Bring Position
Associations To The New Category Extensions. As For McDonald’s, They Have Always Come
Out With New Products Such As The Burgers And Desserts, While Maintain The Quality-Which
Is The Deliciousness Of The Food-As Well As The Price Range. Several Latest Products
Introduced By McDonald’s Are The Double Spicy Chicken Mcdeluxe, The Ayamgorengmcd
Spicy, Spicy Chicken Warp And The Onion Rings. McDonald’s Had Come Out With Really
Plenty Of Food Choices For Their Customers. Theare Such As The Mc Value Meal, Mc Saver,
Happy Meal, The Tea Time Combo Sets And Varieties Of Desserts Too. Most Importantly,
McDonalds’s Is Able To Introduce Not Only A Wide Range Of Food Choices, But Also
Maintaining The Quality Of The Food, As In The Ingredient Used And The Taste.
Advertisement Of McDonald’s Can Be Seen In A Lot Of Places, Such As The TV, Newspaper,
Flyers, Billboards, Posters, Transits, The Internet As Well As Can Be Heard From The Radio.
When Customer Is Positively Reinforced, The Lakewood Of The Behavior Being Repeated Is
Higher.

Characteristics Affecting Consumer Behavior

Many Factors Affect The Success Of McDonald’s Because It Takes Care Of Many Factors.

Cultural
INDIA Is Famous For Its Cultural Beliefs. A Major Part Of Indian Culture Is Food.
At First When Mc Donald’s Came To INDIA To Start Its Business It Launched Its Burger With
The Same Beef That Was Famous Outside But People Didn’t Accept It. Beef Is Not On The
Menu In India Because Are Considered Sacred. It Changed The Content Of Its Burger And All
Those Items That Consisted Beef.
In India, Meat And Vegetarian Meals Are Prepared In Separate Areas Of The Restaurant
Because Of Religious Law About Preparation Of Food For Vegetarians And Meat-Eaters. Cooks
Preparing Vegetarian Dishes Wear Distinctive Green Preens. Culture Is The Most Basic Cause
Of A Person’s Wants And Behavior. Growing Up, Children Learn Basic Values, Perception And
Wants From The Family And Other Important Groups. Marketers Are Always Trying To Spot
“Cultural Shifts” Which Might Point To New Products That Might Be Wanted By Customers Or
To Increased Demand.

Social
In India Most Of The People Are Experts In Influencing Others, And Most Of Them Get Easily
Influenced As Well , Especially Buyer Behavior Is Strongly Influenced By The Member Of A
Family.
McDonald’s Is Also Aware Of This Fact Thus Always Keeps On Trying To Give The Best
Product As Well As Service To Its Customers So That Next Time They Come Along With New
Faces Or Send New Customers To Mc Donald’s. Convincing Customers Is Difficult But Mc
Donald’s Has Done It Well By Serving Hygiene In Plates Which Is Foremost Concern Of
Indians.
In India Roles And Status Also Play Major Role, People Act According To Their Roles And
Status. Mc Donald’s Is A Place That Gives A Look Of Something Beautiful, Can Be Said As A
Status Symbol Even For Many.
The Family Is Maybe The Most Influencing Factor For An Individual. It Forms An Environment
Of Socialization In Which An Individual Will Evolve, Shapes His Personality, Acquire Values.
But Also Develop Attitudes And Opinions On Various Subjects Such Politics, Society Relations
Or Himself And His Desires.

Personal:
The Comprises Of Age, Occupation, Economic Situation, Lifestyle And Personality Of A
Person. In Mc Donald’s Most Part Of Customer Are The Teenagers Or Young. It Gives VALUE
FOR MONEY, Good At Taste Cheap On Pocket, Various Offers, And Acts On Feedback It
Takes People Likes Social Gatherings At A Beautiful Place And Economic, Where Fast Food Is
Also Available So Mc Donald’s Becomes First Priority As It Covers All Of These Wants Of
Customers And Understands Them Well Their Choice And Taste. Our Life Styles Are Reflected
In Our Personalities And Self-Concepts, Same Is The Case With Any Consumer. We Need To
Know What A Life-Style Is Made Of. It Is A Person’s Mode Of Living As Identified By His Or
Her Activities, Interest And Opinions. There Is A Method Of Measuring A Consumer’s
Lifestyle. This Method Is Called As The Psychographics-Which Is The Analysis Technique
Used To Measure Consumer Lifestyles- Peoples Activities, Interests And Opinions. Then Based
Upon The Combinations Of These Dimensions, Consumers Are Classified. Unlike Personality
Typologies, Which Are Difficult To Describe Measure Lifestyle Analysis Has Proven Valuable
In Segmenting And Targeting Consumers According To Their Lifestyle Classification.

Psychological:
These Consist Of Things Like Motivation, Perception, Learning And Belief And Attitude Of
People All Those Things Which Are Intangible So Little Difficulty Comes In Understanding
People As All Are Difficult.
In McDonald’s They Keeps On Updating Teaching People Through Its Attractive
Advertisements About Its New Products, In Newspapers Or TV Or Radio Through Pamphlets Or
Sometimes Asking For Something New In Form Of Feedbacks. They Work According To
Customers.
McDonald’s Also Tries And Does To Satisfy The Needs Of The Customers, Serves Every One
According To Their Perception, Belief And Attitudes Of The Customers.

McDonald’s Buyer Decision Process

A Marketing Strategy Must Be Created In Order To Determine The Means By Which A Set Of
Clear Objectives May Be Met. Objectives Communicate What Marketers Want To Achieve,
Guide Marketing Actions And Are Used To Measure How Well A Plan Is Working. They Can
Be Related To Market Share, Sales, Reaching The Target Audience And Creating Awareness In
The Marketplace.

McDonald’s Markets
McDonald’s Marketing Environment Has Become More Complex And Consumers Have
Become More Sophisticated. Diversity Marketing Is The New Norm And This Doesn’t Simple
Mean Racial Diversity. Diversity Comes In Many Forms: Gender, Race, Age, Lifestyle,
Language Preference, Sexuality And Hobbies Or Special Interests Are All Ways In Which
Peoples Differences Are Recognized.
By Recognizing These Differences And Tailoring Your Product Message Or Marketing Efforts
To Reflect Consumer’s Uniqueness You Are Validating The Importance Of A Consumer Group.
It Maybe Counterintuitive To Focus On Differences Rather Than Similarities But This Can
Really Stretch Your Marketing Muscles And Bring Incremental Results.
McDonald’s Is Committed To Providing The Highest Quality Food And Superior Service, At A
Great Value In A Clean And Welcoming Environment. That Why They Work Our Employees,
Franchisees, And Suppliers To Serve A Balance Array Of Food Choices And Provide The
Nutrition Information Needed For Customers To Make Sound Decisions.
At The Restaurant Level, McDonald’s Is Focused On Energy Conservation And Improving Our
Operations In Order To Build An Even More Sustainable, Environmentally Friendly, And
Profitable Business. And They Will Continue To Reoptimize Our Menu, Modernize The
Customer Experience, And Broaden Accessibility To Our Brand, So That Consumers Will
Always Enjoy The Maximum McDonald’s Experience.
McDonald’s E-Procurement (Electronic Procurement)
McDonald’s E-Procurement System Is Basically A Main Reason For Their Successful Supply
Chain Management. It Is So Efficient That It Provides The Backbone Not Only To All The
Logistics But The Whole McDonald’s Supply Chain Management.
Aside From Being Faster And More Convenient For Franchisees The Procurement Site Also
Allow Business Owners To Buy Supplies And Materials At A Discounted Price, Ultimately
Reducing Costs For McDonald’s. E-Procurement Allows 85% Cut In Costs According To
McDonald’s Supply Chief Edwards.
Benefits For The Suppliers McDonald’s Work With Two Types Of Suppliers Major Suppliers
And Small Suppliers. Sometime Also Knows As Suppliers Exchange Is The Business-To-
Business Or Business-To-Consumer Or Business-To-Government Purchase And Sale Of
Suppliers.

Software Of E-Procurement System

Coupe.
MicroVAX.
Other Software In E-Procurement System.

Types Of E-Procurement
There Are Seven Types In E-Procurement:
Web-Based ERP
E-MRO
E-Sourcing
E-Tendering
E-Reverse Auctioning
E-Informing
E-Market Sites

Web-Based ERP (Enterprise Resource Planning)

Creating And Approving Purchasing Requisition, Placing Purchase Order And Receiving Goods
And Services By Suing A Software System Based On Internet Technology.

E-MRO (Maintenance, Repair And Overhaul)

Only For Maintenance And Repairing Concerns

E-Sourcing
Identifying New Suppliers For A Specific Category Of Purchasing Requirements Using Internet
Technology.

E-Tendering
Sending Requests For Information And Prices To Suppliers And Receiving The Responses Of
Suppliers Using Internet Technology.

E-Reverse Auctioning
Using Internet Technology To Buy Goods And Services From A Number Of Known Or
Unknown Suppliers.

E-Informing
Gathering And Distributing Purchasing Information.

E-Market Sites
Web-Based ERP To Open Up Value Chains.

How McDonald’s Uses E-Procurement Systems

Mac Digital
Internet Procurement Site Designed For McDonald’s Corporation’s 27,000 Franchises. Mac
Digital Company Is E-Procurement Website Which Is Jointly Owned By McDonald’s And Ace-
KKR Internet Co.
It Is A Procurement Hub Launched In 2001 Allow All Of McDonald’s Franchises Across The
Glebe To Buy Everything Needed To Run Their Restaurants.

Positioning Strategies
Positioning Strategies
1. Review The Current Positioning Strategies In
A. Price Differentiation
Both And Burger King Have The Special Value Meal. But There Are More Discount
Offers In Which Are Shown In Following Table.
Burger King
* Specific Meal Are $20 From 5 To 9p.M Value Menu
* Amazing Value Menu
* Relax And Refresh Value Card
Despite The More Special Offer, The Regular Meals In Are Between $25 To $30 While
The Value Meals In Burger King Are Between $25 To $35. It Can Be Seen That The
Regular Meal In Is Even Cheaper Than The Value Meal In Burger King.

B. Channel Differentiation
Has Larger Coverage And Greater Convenience Than In Burger King. Refer To The
Below Table, It Is Seen That The Channel In Differentiate Burger King.
| Burger King
* 218 Branches In Hong Kong 15 Branches In Hong Kong
* 104 Branches Have 24 Hour Mc Tonight Service Only 1 Branch Has 24-Hours
Service
* 24 Hour Mcdelivery Service

C. Product Differentiation
 Has Larger Variety Of The Products Than That In Burger King. The Products In Are
Fresh And Innovative That Fulfill With Teenagers’ Expectation Who Desire For
Freshness While The Products In Burger King Has Smaller Range.
New Products Are As Follows:
| Burger King
Le Grand Hotcakes Deluxe Breakfast Grilled Chicken Burger, Quarter Pounder With
Cheese Tempting 3-In-1: Pineapple Sweetness Sultry Bacon Meltillicious Cheese

D. Image Differentiation
Has Built Up A Distinctive Image Of Burger Restaurant In Hong Kong Over The Past
Few Years. Since 2003, It Repositioned “I’m Loving’ It” As A Slogan, Aiming At
Targeting The Teenagers Who Are Independent, Affordable And Seeking Trendy. This
Slogan Has Been Promoted Intensively Through Advertisement, Public Relations And
The Products’...

SWOT Analysis Of McDonald’s

The Term SWOT Is Used For Evaluating The Actual Position Of Organization. It Is Very
Effective Technique For Measuring The Positive And Negative Sides Of An Organization.
SWOT Stands For-
Strengths
Weaknesses
Opportunities
Threats

A) Strengths Of McDonald’s
McDonald’s Has Been Operating Its Business For About 60 Years And It Has Achieved Lots Of
Experience On Fast Food Retailing. Most Of Its Employees Who Are Working In Managerial
Position Promoted From Assistant Level. This Experienced Management Can Face Any Critical
Situation Of The Company.
McDonald’s Has Got The Most Attractive, Expensive And Busy Locations For Example, In
Almost All Airports, Shopping Mall, High Street Etc. Worldwide For Its Restaurants.
McDonald’s Ash Huge Market Share In Current Global Market. In 2009, McDonald’s Returned
Cash About $58 Billion To Its Shareholders (Annual Report, McDonald’s, 2009). That Means,
This Fast Food Giant Is Able To Dominate The Global Share Market.
McDonald’s Has A Unique Business Policy Known As 'Franchises Policy'. More Than 80%
Restaurants Of McDonald’s Are Owned And Run By The Franchises And This Franchises
Community Provides A Extreme Power For This Company To Capitalize The Market.
One Of The Most Popular And Recognised Logos Of The World Is 'Golden Arches' Introduced
By McDonald’s. This Logo Has Been Made As A Sign Of Loyal And Trustable Company.
Effective Supply Chain And Communication Mix, Serious Supervision Of Food Quality, Service
And Safety Rules, Are The Strong Parts Of The Company.
Modern And Attractive Infrastructures, Easy Payment And Information Access, Packaging With
Nutritional Information, Varieties Of Foods Etc. Are Another Considerable Parts Of This Food
Chain.

B) Weaknesses Of McDonald’s
High Turnover Of Employees Shows Its Weak Stuff Pattern.
Fluctuation Of Company's Profits For Instance, In 2006, The Net Profits Were $3,544 Million
Where The Net Profits Of 2007 Were $2,395 Million (Marketingteacher.Com).
It Advertises To Target The Children
Level Of New Product Innovation Is Low.
McDonald’s Is Criticized Sometimes For Its Junk Food.

C) Opportunities Of McDonald’s
By Inventing New Food McDonald’s Can Attracts More Customers And Successful Innovation
Can Boost Up Its Sales.
During Economic Slowdown, People Can Avoid Spending Money For Their Dress And Other
Household's Things But They Cannot Avoid The Foods. So, McDonald’s Can Take This
Opportunity At Any Situation Setting Affordable Price.
By Taking The Technological Benefit It Can Attracts More Customers. For Example, More
Entertaining Elements Can Be Included In Each Store.
By Sponsoring For Community Support, It Can Work For Humanity And Also Can Promote The
Business.

Treats Of McDonald’s
More Competitors Are Working Such As KFC, Burger King, Subway, Pizza Hut Etc. For The
Same Number Of Customers.
In Health Issue, Fast Food Companies Are Generally Criticized.
Fluctuations Of Foreign Currency Affect Its Operation.
Competitors' Food Offerings Are Being Increased With Low Price.
Business Planners Can Utilize SWOT Analysis Technique To Find Out The Company's Barriers
And They Can Take The Necessary Steps To Resolve The Problems. McDonald’s Is Clearly
Understood The Importance Of This Analysis And That Is Why; It Always Keeps Eyes On Its
Operational Activities.

Conclusion
Hospitality Organization Is Directly And Closely Related With Customers. There Are Lots Of
Things It Needs To Do. Customers Demand Requires The Complete Satisfaction From All
Section Such As, Quality Product, Standard Service, Friendly Dealings, And Affordable Price
And So On. In Addition, Company Has To Face Strong Competition In Local And International
Market. That Means It Has To Be Strong As A Whole.
In This Project, It Has Been Discussed Regarding Overall Activities Of McDonald's. Its
Environmental Analysis Shows Some Common Restrictions Which Are Needed To Overcome
As Much As It Can. McDonald’s Can Utilizes Its Opportunities To Make Its Position Such
Stronger Than Others And It Has To Take Effective Steps To Face The Threats. Current
Communication And Marketing Strategies Are Good But It Can Be Much Better Than That. Its
Future Objectives Are Quite Relevant To Meet The 21st Century's Challenging Position In
Competitive Market.
McDonald’s Customer Service Line Needs To Be More Effective And Efficient. As Customer
Dealing Is The Final Act Of Its Business Operation, It Needs To Do In An Influencing Way That
Can Meet Customer Satisfaction. But Their Current Policy Regarding Customer Care Is Not
Bad. Another Crucial Part Of The Hospitality Organization Is Affordable And Competitive
Pricing. Product Price Is Seriously Considered By Customers. So, The Cost Benefit Analysis
Should Be Done In Effective Way At All Times.
As A Multinational Company, Mcdonald's Environmental Policy And Social Responsibilities
Which Include Community Support Are Really Encouraging.