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Executive Summary

McDonald's is one of the best-known brands worldwide. This assignment shows how McDonald's continually aims to build its brand by listening to its customers. It also identifies the various stages in the marketing process. Branding develops a personality for an organization, product or service. The brand image represents how consumers view the organization. Marketing communication methods, such as advertising and promotion, are used to create the colors, designs and images, which give the brand its recognizable face. At McDonald's this is represented by its familiar logo. The purpose of this project to know about the Marketing plan of McDonalds, its implementation and how they impacts on the organization. For this purpose we selected McDonalds to obtain necessary data and its analysis. With the completion of this project we have learned that how Marketing plan are implementing and its impacts on the organization. Marketing involves identifying customer needs and requirements, and meeting these needs in a better way than competitors. In this way a company creates loyal customers. The starting point is to find out that potential customers are - not everyone will want what McDonald's has to offer. The people McDonald's identifies as likely customers are known as key audiences.

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INTRODUCTION
McDonald's Corporation is the world's largest chain of fast food restaurants, primarily selling cheeseburgers, chicken products, French fries, soft drinks, milkshakes ice cream and desserts. McDonalds is working with over 32,000 locations in over 110 countries. McDonald is the world's largest fast food restaurant chain. McDonald's operates its own restaurants and franchises its brand to local business people only 15% of the total numbers of restaurants are owned by the Company. The remaining 85% is operated by franchisees. The company follows a comprehensive framework of training and monitoring of its franchises to ensure that they follow to the Quality, Service, Cleanliness and Value propositions offered by the company to its customers a little basic information about the company is given below:
1 McDonalds Founder 2 Headquarters 3 No. of locations 4 Revenue Dick and Mac McDonald Oak Brook, Illinois, USA 31,000+ worldwide $21.5864 billion USD (2006)

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5 Slogan 6 Website

i'm lovin' it www.mcdonalds.com

McDonald's a Global Phenomenon


Formed in 1954, McDonald's brand is the leading global foodservice retailer with more than 30,000 local restaurants serving nearly 50 million people in more than 120 countries each day. The rich history began with founder Ray Kroc's strong foundation.

MCDONALD'S IN PAKISTAN
Aiming to be the world's best quick service restaurant, McDonald's Pakistan opened its doors in September 1998 at Lahore and presently operating in six major cities with a network of 20 restaurants. With a strong belief in the Ray Krock phrase when you are green you are growing, McDonald's Pakistan has an aggressive plan to expand in all other cities of Pakistan and is rapidly growing with the focus to provide friendly and quick service restaurant experience to our customers. There are 19 Branches are serving in Pakistan.

McDonalds Branches
Faisalabad McDonalds, Peoples Colony 111-244-622 329 & 330 - B, Satyana Road, Peoples Colony, Faisalabad Pakistan Hyderabad McDonalds, Latif Abad 111-244-622 Plot No., A-1/1, Main Autobham Road, Unit No.3, Latif Abad, Hyderabad Pakistan Islamabad McDonalds, Allama Iqbal Town 111-244-622 F-9 Park, Khayaban-e-Quaid-e-Azam, Allama Iqbal Town, Islamabad Pakistan

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Karachi McDonalds, North Nazimabad 111-244-622 SD-1, Block A, North Nazimabad, Karachi Pakistan McDonalds, 111-244-622 Parking Lot, Jinnah Terminal Complex, , Karachi Pakistan McDonalds, DHA 111-244-622 Plot No. P-58, DHA Beach, Phase V, DHA, Karachi Pakistan McDonalds, KDA Scheme 111-244-622 Stadium Road, Plot No. SB-9, KDA Scheme No.1 (EXT.), Opp. National Sports Stadium,, KDA Scheme, Karachi Pakistan McDonalds, PECHS 111-244-623 172-B, Block 2, Tariq Road, PECHS, Karachi Pakistan McDonalds, Clifton 111-244-622 Park Towers, Shop No. GR-23, Plot No. 1, Survey Sheet No. CF 1-5, Clifton Quarters , Clifton, Karachi Pakistan McDonalds, Clifton 111-244-622 Shop No. 8 & 9, Ground Floor, Clifton pride, Plot No., G-3/1, Block 8, Main Clifton Road, Clifton, Karachi Pakistan Lahore McDonalds, Gulberg 111-244-622 63, Main Gulberg, Gulberg, Lahore Pakistan McDonalds, Jail Road

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111-244-622 89-B, Jail Road, Lahore Pakistan

McDonalds, Allama Iqbal Town 111-244-628 13 Kashmir Block, Allama Iqbal Town, Lahore Pakistan McDonalds, Model Town 111-244-627 23-Phase II, Govt. Employees Cooperative Housing Society Ltd. Township Link Road, Model Town, Lahore Pakistan McDonalds, DHA 111-244-626 Plot 5, Block G, Sector G, Phase I, LCCHS, DHA, Lahore Pakistan McDonalds, Cantt 111-244-624 Opposite Khyber Block, Fortress Stadium, Cantt, Lahore Pakistan McDonalds, Egerton Road 111-244-623 Egerton Road, Lahore Pakistan McDonalds, DHA 111-244-625 Plot 486/ B, Sector Y, Phase III, LCCHS, DHA, Lahore Pakistan Rawalpindi McDonalds, Cantt 111-244-622 Jinnah Park, Police Line, Opp., Kacheri Road, Cantt, Rawalpindi Pakistan

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Lakson Group of Companies


McDonald's Pakistan is a part of the Lakson Group of Companies, with a Head Office in Karachi and a regional office at Lahore. Lakson Group also owned, Lakson Tobacco Co. Colgate Pakistan Ltd, Century Insurance Ltd. Express Newspaper, Cyber Net and

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various others businesses.

McDonald's Mission
McDonald's vision is to be the world's best quick service restaurant experience. Being the best means providing outstanding quality, service, cleanliness, and value, so that we make every customer in every restaurant smile.

McDonald's Vision
McDonalds vision is to be Worlds "best" quick service restaurant, experience supported by a set of core values and guiding principles.

SEGMENTATION, TARGETING AND POSITIONING


McDonalds uses demographic segmentation strategy with age as the parameter. The main target segments are children, youth and the young urban family.

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% of kids who influence what FMCG brand their family buys

80% 70% 60% 50% 40% 30% 20% 10% 0%

71% 59% 52%

Biscuits

Burgers & Pizzas

Fruit Juices

As shown above, kids reign supreme in FMCG purchase related to food products. So to attract children McDonalds has Happy Meal with which toys ranging from hot wheels to various Walt Disney characters are given (the latest in this range is the toys of the movie Madagascar). For this, they have a tie-up with Walt Disney. At several outlets, it also provides special facilities like Play Place where children can play arcade games, air hockey, etc. This strategy is aimed at making McDonalds a fun place to eat. This also helps McDonalds to attract the young urban families wanting to spend some quality time while their children have fun at the outlet. To target the teenagers, McDonalds has priced several products aggressively, keeping in mind the price sensitivity of this target customer. Mc Donalds mein hai kuch baat projects McDonalds as a place for the whole family to enjoy. When McDonalds entered in Pakistan it was mainly perceived as targeting the urban upper class people. Today it positions itself as an affordable place to eat without compromising on the quality of food, service and hygiene. The outlet ambience and mild background music highlight the comfort that McDonalds promises in
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slogans like You deserve a Break Today & Feed your inner child. This commitment of quality of food and service in a clean, hygienic and relaxing atmosphere has ensured that McDonalds maintains a positive relationship with the customers.

CUSTOMER PERCEPTION AND CUSTOMER EXPECTATION


Customer perception is a key factor affecting a products success. Many potentially revolutionary products have failed simply because of their inability to build a healthy perception about themselves in the customers minds. McDonalds being an internationally renowned brand brings with it certain expectations for the customers.

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Target Segment A Family with children Urban customer on the move Teenager

What is McDonalds for me? A treat to children, a fun place to be for the children. Great taste, quick service without affecting the work schedule Hangout with friends, but keep it affordable.

Customers expect it to be an ambient, hygienic and a little sophisticated brand that respects their values. The customers expect the brand to enhance their self-image. Customer responses confirmed the fact that they connect strongly with the brand. However, fulfilling some of the customer expectations like a broader product variety provide McDonalds a great scope for improvement.

MARKET SEGMENTING
1. GEOGRAPHIC

SEGMENTATION

McDonalds when entered Pakistan it segmentation was regional not on location. It did not target any specific location but targeted different regions. It first launched in Karachi, where people are economically stronger. After attaining maturity and stability in Karachi its next target was Lahore. In Lahore it was easier for it to establish itself. Their preference towards food is very high and is more flexible in accepting and adopting new tastes. After that they target Rawalpindi as another market for them. Now McDonalds is establishing itself in Islamabad, which is another Profitable markets for them as people in Islamabad are economically strong and healthy and are

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modern and western so they are very adaptable to fast food franchises as McDonalds.

2. ECONOMIC

FACTORS

McDonalds when entering Pakistan analyzed its population level, its income level and economic development pattern. When it entered his market it targeted the large population of Pakistan, as it would be more profitable for them. When McDonalds entered Pakistan it was underdeveloped and was progressing towards development. It was economically not very strong at that time so initially it didnt expanded itself but focused on stability in this new market. But now Pakistan is a developing country and is progressing and economically much more stable and strong. Keeping all these facts in consideration McDonalds has expanded itself in different cities in last few years. There was much less competition for McDonalds to face then now it is facing. 3. POLITICAL

AND LEGALFACTORS:

When McDonalds entered Pakistan its government was not stable and was continuously varying and changing there was no fixed government policies, rules or laws to follow. Though much difficult but was a good time for McDonalds to enter and to cover the market at that time. When McDonalds entered Pakistan it was underdevelopment and so it couldnt support McDonalds much. At that time all the financial support McDonald had was from its Corporation. But now as Pakistan has grown economically it has used the current opportunities and has expanded itself.

4. CULTURAL

FACTORS

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Pakistans national language is Urdu and it is spoken everywhere. It was not a completely new language for McDonalds as it has been established in India, where Urdu is widely used, so it was not a problem for McDonalds. Pakistans religion is Islam so McDonalds had to keep it in mind that they have to serve Halal products here and they cannot use any un-Halal meat products or any alcoholic ingredients in the food or as drinks in Pakistan as religiously it is prohibited for the Muslims. So on entering McDonalds had to take care of all these facts because breaking any one will cause them a lot of troubles and get them out of Market.

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Operations Management in McDonalds


Following are the operation management strategies being implemented by McDonalds: Goods & Service Design Quality Location Selection Layout Design Human Resource Supply Chain Management Maintenance

Goods & Service Design


The tangible goods and intangible services are provided by McDonalds and the homogeneity is maintained globally. The goods and services are provided on in a package thats why the company lies in 50% in goods production side and 50% in service providers. In Pakistan the same level of services is offered by McDonalds, compared to international level.

Quality
The company really maintains its product quality. A lot of expenditure is made in the quality maintenance and improvement researches. McDonalds maintains the following quality rules.

Location Selection
Generally it has been observed that McDonald follows the different locations and outlets according to the specific area.

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Layout Design
This strategy refers to the overall working and general environment offered by McDonalds. It includes the personnel level, service and product layout, interiors and exteriors etc.

Human Resource
Being partially in pure services and goods production sector, McDonalds exercises a good strategy for its human resources e.g.

Supply Chain Management


These strategies determine what is to be made and what is to be purchased. So McDonalds follow these strategies and have a just-in-time inventory system. Which means that the orders are placed as the raw material comes to near finish. McDonalds maintain no inventory levels for perishable goods.

Maintenance
The overall maintenance process of McDonalds is that they emphasize on the maintenance of the product quality, the human resources used within the organization, its location and layout designs. They train their employees of all department6s regarding their job, so they can handle their customer and work as well which helps to maintain their status quotas. McDonalds is among the companies which are partially involved in the production of goods and services, so a proper maintenance system within the organization strengthens the goodwill and reputation.

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MARKETING ENVIRONMENT
ENVIRONMENTAL MONITORING

EXTERNAL ENVIRONMENT

INTERN AL ENVIRONMET

MACRO ENVIRONMENT MICRO ENVIRONMENT

EXTERNALENVIRONMENT
External environment include those forces which are not controllable by the organization. The external environment can be divided into two categories:

1) Macro Environment 2) Micro Environment

MACROENVIRONMENT
These are those forces which affect all of the firms and all the industries. These types of forces do not affect only a single firm but their affect is on the whole country. Macro environment based on PEST analysis

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PEST ANALYSIS
PEST analysis consists of six factors:
1) 2) 3) 4)

Political Environment Economical Environment Social Environment Technological Environment

1)

Political Environment
In general terms the government policies do not affect the company much nor do

the changes in the government influence the organization of the company. Mostly what company obligation to the government is the paying of different taxes which include payroll taxes and business taxes? McDonalds enjoys an added advantage in countries where consumer protection laws are not very strong. In countries like US, where the consumer protection laws are very strong, there are great costs associated with a breach in quality or service in the form of litigations and lawsuits.
2)

Economical Environment
There are many factors which can affect the operation of a company. In Pakistan

McDonalds offer the food at higher rates in comparison to the local food restaurants. Most of the people in Pakistan fall in the category of middle class and it is not affordable for them to have McDonalds at regular basis. Due to layoffs and other economic Downturn of the current recession period the profits of McDonalds might have dwindled as people consider it as a luxury to go and eat out at some foreign QSR.
3)

Social Environment

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When McDonalds entered the Pakistani market people were not very much into fast food eating style but now the business has been influenced by the changes made in the society especially changes in the eating habits among young people who helped in the acceptance of the fast food idea but also the rapid change of way of life which is very quick now as everyday people are running out of time, QSR is the way out for them. This in turn has helped the company to grow and to increase its profits. As McDonalds offer Hilal food majorly so there are no religious, ethical or cultural issues associated with the operations. A negative aspect of a social factor happening in Pakistan is sometimes the fact that many times anti Americans feelings rising for different reasons.
4)

Technological Environment
Pakistan is a developing country and new technology gadgets and techniques are

always welcomed. McDonaldss introduced new food production techniques in Pakistan which were later adopted by the local QSRs. Food made with the help of machines is considered more hygienic. However, the continuous developments in the technology sector needs McDonalds to be updated regularly but as in Pakistan food making technology is still in the development stage so McDonalds has an edge over others in this regard. It is natural that technology has helped McDonald and especially its employees as they have to serve quick services. Computers and smart cashiers are used by the employees so they would not get confused and they are provided with customized database management system.

MICRO ENVIRONMENT
Micro environmental forces are those forces which affect a particular firm or only one organization. Micro environment consists of five factors: 1) The company 2) Suppliers

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3) Customers 4) Competitors 5) Public

INTERNALENVIRONMENTAL
Internal environment means the people, resources, and leadership and communication structures present in an organization. Internal forces that are controllable also change an organizations marketing efforts by management. These are as follows:
1) Finance Department 2) Human Resources

3) Marketing department
4) Accounts Department

5) Procurement department
6) R & D Department

7) Sales department

SWOT ANALYSIS
Strengths
McDonalds has been able to maintain its market share in the QSR market of Pakistan since 1998 and this is actually the major strength of McDonalds that has made it so popular. Other major strengths are listed below:

Products

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The reputation of the various products each season has made it possible for the company to attract customers having different tastes and to try out the season specialties. A major strength is the various deals that McDonalds offers so that it could be made affordable. Recently McDonalds offered a deal for Rs.99 only, containing a beef burger along with a drink. McDonalds offers many flavors of Mcflurry ice cream from a mix of M&Ms. The M&Ms flavor was introduced about a year back and is still popular among the M&Ms lovers. McDonalds has also customized its meal according to the tastes of Pakistan. People in Pakistan do not eat bacon so McDonalds does not offer such sort of meals in the country.

Social Responsibility
The social responsibility acts of McDonalds are commendable. It has been able to maintain a reputation as a socially responsible and aware enterprise all over the world. Its practice of going green and serving in an environment friendly way has made it possible for McDonalds to gain fame. In Pakistan however, McDonalds has not yet come up with an effort that can show the companys goodwill towards the masses here. Like KFC, McDonalds should also involve itself in educational and social activities so that people should know that McDonalds isnt yet another business oriented corporation aimed at just making money but it actually cares.

Employment Opportunities
The equal employment opportunities regardless of race, color, sex, national region, age, disability etc are offered to people. People looking for jobs can also upload their CVs online.

Brand Recognition

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McDonalds has gained recognition worldwide. The chain is present all over the world in more than 122 countries. In Pakistan a large number of franchises are present, majority of them in Karachi and Lahore and McDonalds is regarded as a symbol of value and quality for your money.

Good Communication And Friendly Environment


McDonalds has always ensured a friendly environment to offer to its customers.

Children love going there, having a happy meal and the toys that they get as a gift. Play places also serve as a significant attraction where children can go and make friends and play. Employees are also very polite and they are always ready to serve you in every best possible way that they can.

Party Celebrations
McDonalds offers its clients, especially children to celebrate their birthdays there.

One can invite friends, they decorate the party area, various party games are organized along with face painting activity etc. Children are provided with an opportunity to celebrate their day in the way that they want.

Partnership with Coca Cola


McDonalds and Coca Cola are official global partners. Coca cola is a big brand

name serving people all over the world with beverages.

Partnership With Telecom Companies


McDonalds offered special deals to its clients with up size meals who are the users

of a particular company such as Warid and Ufone.

Weaknesses
Product Variety

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McDonalds needs to develop more and more products to stay in the competition. After the opening of international QSRs in Pakistan, many local QSRs have also been opened in various cities. The tastes are a bit different but they too are offering chicken and cheese burgers, drinks and fries at competitive prices. This situation requires McDonalds to be more innovative and price competitive.

More Advertising
In Pakistan, McDonalds rarely advertises at TV, however billboards often show

off juicy McDonalds burgers but this could affect its popularity in future. It definitely needs to advertise more to reach the target and the potential customers.

Drive-ins
The service at McDonalds drive-ins has been subject to criticism all over the world and a lot of people complaint that the orders are either missing some of the items or are entirely wrong. The service time at the drive-ins is also subject to great variations and needs to be improved.

Opportunities
Reasonable Prices
McDonalds can broaden its market by offering meals at more competitive prices in comparison to other local QSRs such as AFC, Al Maida etc. This way it could get hold of the potential customers too.

Opportunity To Be Innovative
McDonalds could make itself more innovative by offering deals that appeal more

to Pakistani consumers e-g it can introduce desi flavors in the present products such as Barbeque, Tandoori, Masala and other spicy tastes which are staple of the country.

Breakfast And Special Noon Meals

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Now in Pakistan most the trend of women going to work and opting for profession is increasing as a result of which they are running short of time to carry out all the home chores along with their work. McDonalds can offer deals to such market by catering them in the morning for breakfast. During the office hours people mostly go out for their lunch to restaurants. McDonalds can avail this potential market too.

Growing Dinning Out Market


In Pakistan the dining out trend is increasing especially in youngsters and upper

middle class. McDonalds has the opportunity to grasp this market quite well. It is already doing well by serving them but it could arrange various activities for the people of this age.

Dine in Cafes
McDonalds can open up with small-sized cafes for the teenagers in their universities and colleges.

McCafes
McDonalds has opened coffee shops by the name of McCafes in UK. Pakistan

can serve as a new potential market for these cafes.

Threats

More Health Conscious Customers


With increasing awareness about food and the importance of a balanced diet,

people are opting for low calorie food e-g salads and food with high fiber content. To remain in the scope, McDonalds needs to serve this market as well as the present customers, this could be posed as a threat to McDonalds. Subway is offering its low fat veggie and chicken sandwiches at prices almost the same as McDonalds. For McDonalds

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diet meals could be a way out of this situation. Until now, McDonalds in Pakistan has nothing to offer to health conscious customers.

Foreign As Well As Local Competitors


In the growing market QSR market of Pakistan McDonalds competitors are

entering not only from other countries but from within the country too. Their competitive prices could be a reason due to which McDonalds can lose its share in the Pakistani market.

Changing Customer Styles


Pakistani culture has been changing for years now with new technologies and

trends. People who are not brand loyal move with the changing times. Some competitor can easily enter into the market and make better offers to its consumers by focusing on their needs and the satisfaction that they want. To remain competitive, McDonalds needs to be innovative and should change along with the Pakistani consumer styles.

COMPETITOR ANALYSIS
PIZZA HUT
Pizza Hut is a global fast food chain, a subsidiary of Yum! Brands. Its the worlds largest restaurant company. It was founded in Wichita, Kansas, USA in 1958 and is running its operations in about 91 countries worldwide. Its one of the major competitions of McDonalds in the Pakistani QSR industry. It started its operations in Pakistan in 1993 with a single outlet at Boat Basin, Clifton, Karachi. Today it operates in nine cities of Pakistan with 38 outlets. The cities include Karachi, Lahore, Islamabad, Peshawar, Faisalabad, Multan, Rawalpindi, Sialkot and Hyderabad. Pizza Hut serves a large variety of starters, soups, salads, sandwiches, Pastas and deserts.

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KENTUCKY FRIED CHICKEN (KFC)


KFC, founded and also known as Kentucky Fried Chicken, is a chain of fast food restaurants based in Louisville, Kentucky. KFC is a brand and operating segment, called a "concept", of Yum! Brands since 1997, when that company was spun off from PepsiCo as Tricon Global Restaurants Inc.. KFC has more than 11,000 restaurants in more than 80 countries. KFC came to Pakistan in 1996 with the first branch opening in Karachi and later in Lahore. The Franchisee was a Pakistani owned and operated, Dubai-based Company the Cupola Group, which owns licenses and its own restaurant throughout Pakistan and the middle-east.

MCDONALDS MARKETING MIX


After segmenting the market, finding the target segment and positioning itself, each company needs to come up with an offer. The 5 Ps used by McDonalds are:

Product Place Price Promotion

Product
1) McDonalds product includes vegetarian and non-vegetarian items. 2) Also involves combo.
3) Cares for customers sentiments towards religion and Culture.

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4) Separate cooking area and equipments.

Co- Branding
McDonalds has major tie-ups with various companies as their co-branding Strategy. Few of them are listed below:

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. 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.

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In the Pakistani market McDonalds has been placed in the growth phase as it is still growing and has the potential to grow further. There are many strategies that have been employed in the other countries but are still to be made a part of the McDonalds franchises in Pakistan. Following are some of the strategies that can be made a part of the Pakistani market so as to increase its market growth: McDonalds in Pakistan can introduce breakfast in its menu to cater to the needs of those who are in a hurry to get to office in time. This will give them an edge on its competitors and its growth will increase. To gain advantage in the local market, McDonalds should introduce coffee at all the franchises. To maintain its brand image as a twenty four seven customer restaurant, McDonalds must make its timings more flexible to the needs of those who are usually very busy with their work schedules.

Product Mix

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According to BCG Matrix McDonalds is a star. The reason for this is its high market growth and high market share in the Pakistani market. On the other hand KFC and Pizza Hut are the cash cows because of their low growth rate and high market share. During past some years KFC and Pizza Hut have lost their market growth because of the fact that they lost their standard war to their competitor i-e McDonalds. Another direct competitor of McDonalds is Subway. According to BCG Matrix it is a dog. Some of the reasons that are responsible for its low market share and low market growth are the less expansion strategies being followed by the company. Secondly they are not focusing at all on all the major cities; rather they are only focused on the target segments of Lahore and Karachi.

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Price
Pricing includes the list price, the discount functions available, the financing options available etc. It should also take into the consideration the probable reaction from the competitor to the pricing strategy. This is the most important part of the marketing mix as this is the only part which generates revenue. All the other three are expenses incurred. The price must take into consideration the appropriate demand-supply equation. McDonalds has certain value pricing and bundling strategies such as happy meal, combo meal, family meal etc to increase overall sales volumes.

Place
The place mainly consists of the distribution channels. It is important so that the product is available to the customer at the right place, at the right time and in the right quantity. There is a certain degree of fun and happiness that a customer feels each time he dines at McDonalds. There are certain value propositions that McDonalds offer to its customers based on their needs. McDonalds offers hygienic environment, good ambience and great service. Now McDonalds have also started giving internet facility at their

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centers and they have been playing music through radio instead of the normal music. There are certain dedicated areas for children where they can play while their parents can have some quality time together. Located at prime locations Evenly spread in NCR Almost in all big cities At residential areas, malls, Multiplexes

Promotion
The various promotion channels being used by McDonalds to effectively communicate the product information are given above. A clear understanding of the customer value helps decide whether the cost of promotion is worth spending.

There are three main objectives of advertising for McDonalds are to make people aware of an item, feel positive about it and remember it. The right message has to be

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communicated to the right audience through the right media. McDonalds does its promotion through television, news papers, billboards and bus shelters. They use print ads and the television programmes are also an important marketing medium for promotion. Some of the most famous marketing campaigns of McDonalds are: You Deserve a break today, so get up and get away- To McDonalds

Food, Folks, and Fun Im loving it is an international branding campaign which was launched in

2003 and has proved to be its biggest success.

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Total Quality Management


Management of an entire organization so that it excels in all aspects of products and services that is important to the customer. In simple words we can narrate total quality management as a continuous quality improvement process. So McDonalds also practice the strategy of total quality management and tries to enhance its efficiency & affectivity level by working in different areas such as continuous improvement, quality of goods and services, training, and customer satisfaction.

Product Quality
The ability of a product or service to meet customers needs is termed as quality. Therefore McDonalds works a lot in the quality improvement of its goods by improving ingredients and nutrients of the food stuff. For people concerned about food allergies, we have consolidated all allergen information into the ingredient statement for each menu item so that you have one current source of information. Some recent nutrients quality improvement information is as under:

Popular kids meal choices


Happy Meals Mighty Kids Meals The nutrition information is derived from testing conducted in accredited laboratories, published resources, or from information provided from McDonalds suppliers. The nutrition information is based on standard product formulations and serving sizes. All nutrition information is based on average values for ingredients from McDonalds suppliers throughout the world. Variation in serving sizes, preparation

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techniques, product testing and sources of supply, as well as regional and seasonal differences may affect the nutrition values for each product.

Training
In the next step of TQM, McDonalds puts it attention on its human resources. The objective of training their human resources is to create a balance in the overall working of employees. Thus they try to create a connection between the quality of a product and the ability of the employees. In McDonalds nearly every employee is given training for its work. e.g. the cashier is trained for all the cash handling, floor manager is polished against his degree in hotel management. And all the other staff is trained accordingly.

Continuous Improvement
The quality management strategies of McDonalds for product quality improvement and employee training and development put the company on the road of continuous improvement in all its functions. Continuous improvements fulfill the needs of the customers according to their desires or requirements and also make its products more competitive. This continuous improvement also includes some other factors like employee empowerment, benchmarking a quality standard & maintaining just in time inventory system etc.

Customer Satisfaction
McDonalds pays a lot of attention on the satisfaction level of its customers. The improved quality standards, well trained employees and a continuous learning desire of McDonalds results in increased level of satisfaction of the customers. Like when the quality is improved and the personnel attending the customers is well trained and the overall service environment is improved then there is no room left for customer dissatisfaction.

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McDonalds
Name: Age Group: a) Below 18 b)18-28 b) Business Gender: M / F c)28-40 d)Above 40 c) Service d) Housewife e) Any other

Occupation: a) Student

CONFIDENTIAL:
This research questionnaire is only for to conduct the research on particular problem and your given information will be secured. How often do you visit McDonalds? Weekly Monthly

Occasionally

Specify your satisfaction with McDonalds according to the following? Parameter Quality Price Outlet Taste Service Excellent Good Average Poor

Through which media you are getting information about McDonalds? TV Newspaper Pamphlets Bill Boards others (specify)..

Are you satisfied from the product and services of the McDonalds? Yes No

What is the first thing that strikes your mind about McDonalds? Burger Service Fun Value for money Congestion

What is the main problem you faced at McDonalds? Long Queues Rude Behavior of Employees No problem Others Does the logo attract you? Yes No

Thanks for your cooperation!

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Survey Research Results

How often do you visit McDonalds?

Weekly Monthly Occasionally

Specify your satisfaction with McDonalds according to the following? (Quality)


10% 0% Excellent Good 30% 60% Average Poor

Specify your satisfaction w ith McDonalds according to the follow ing? (Price)
15% 0% 30% Excellent Good Average Poor 55%

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S pecify yo ur satisfaction w ith McD onalds according to the follo w ing ? (Outlet)
5% E x c ellent Good A verage 20% 60% P oor

15%

Specify your satisfaction with McDonalds according to the following? (Taste)


5% 0% Excellent Good 40% Average 55% Poor

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S p ecify yo u r satisfactio n w ith M cD o n ald s acco rd in g to th e fo llo w in g ? (S ervice)


5% 20% 40% E x c ellent Good A verage P oor 35%

T h rou g h w h ich m ed ia yo u are g ettin g info rm ation a bo u t M cD o n alds?


10% 0% 5% 0% TV News paper P am phlets B ill B oards O thers 85%

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Are you satisfied from the product and services of the McD onalds?
20%

Yes No

80%

What is the first thing that strikes your mind about McDonalds?

35%

30% Burger Fun Service Value for money 15% 20%

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W hat is the main problem you faced at McD onalds?


5% 5% 5% Long Queues 15% Rude B ehavior of E m ployees Congestion No problem 70% Others

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D oes the logo attract you?

5%

Yes No

95%

SUGGESTIONS
In the end of our report we have following suggestions: McDonalds should revise its product prices. Company should work on all of its products

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There is still a lot of opportunities for McDonalds to increase number of outlets

McDonalds in Pakistan should follow its international trend of

sponsoring mega events e.g. Domestic Cricket Tournaments, Concerts and Seminars.

CONCLUSIONS
Increase its product line. To have more variety to choose from, to include more deserts and more items like Pizza McPuff. It should continue to provide better and quick service. By lower the supply chain cost so that it helps in cost reducing. MCD is willing to expand their Happy Meal choices to attract and retain customers& can also Introduction of McCafees serving premium and specialty coffees and other beverages and other products such as cakes, pastries etc in the existing McDonalds. Focus on gifts for all generations i.e. youth, kids especially senior citizen which is a completely new concept. MCD should provide special promotions during festivals. They should increase the space for provision of birthday party areas& try to sponsor college festivals. After analyzing the marketing mix of McDonalds, it is clear that the company can be said to be `global, i.e. combining elements of globalization and internationalization. McDonalds have achieved this through applying the maxim, `think global, act local

Bibliography
To collection information we have considered following source in order to gather authentic data: www.mcdonalds.com

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www.mcdonalds.com.pk
http://www.lakson.com.pk/?page_id=5 http://www.wikinvest.com/stock/McDonald's_(MCD) http://en.wikipedia.org/wiki/McDonald's http://www.courageworld.ch/McDonaldsControversy.htm http://tossdown.com/eobranches.php?rid=8

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