McDonalds

Group Members

Introduction
McDonalds is the worlds largest restaurant chain. Following are the hallmarks of McDonalds which have set the standard for fast food industry: Innovative marketing Superior products Impeccable operations Devoted franchises

McDonalds philosophy
McDonalds philosophy is: QSCV Q = Quality Food S = Fast Friendly Service C = Restaurant Cleanliness V = Menu providing Value McDonalds philosophy of QSCV & its Family Oriented Image are the products of Ray Kroc.

 Among the worlds most recognized brand names along with: Coca Cola. Kodak, Gillette, Sony and Walt Disney. McDonalds is a truly global organization in the new millennium.

Operation in 119 countries worldwide. McDonald's operates over 31,000 restaurants worldwide Employing more than 1.5 million people. Every day McDonald's serves more than 47 million customers around the world.

 McDonald's original advertising symbol was a winking little fellow named "Speedee", designed to promote McDonald's fast service. Advertising theme The Golden Arches remain the advertising symbol for the company and are now one of the most recognized icons in the world. The sign M symbolizes three-legged stool Corporate, Franchisee Partners, and Supplier Partners.

 Thoroughly modern marketing: McDonald's updates advertising to remain 'forever young. Companys first global brand campaign im lovin it McDonald's has adhered to one marketing strategy for the greater part of the last 50 years: Be the fun, friendly place for families.

McDonalds famous Advertising Themes

You Deserve a Break Today (1971) We Do it All for You (1975) Nobody Can Do It Like McDonald's Can (1979) It's a Good Time for the Great Taste of McDonald's (1984) Have you Had your Break Today? (1995) Did Somebody Say McDonald's (1997) We Love to See You Smile (2000) i'm lovin' it (2003)

McDonalds History
Ray Kroc was the founder of McDonald's. Back in 1954, as a 52-year-old salesman, Ray Kroc came across the small hamburger stand of Dick and Mac McDonald in San Bernardino, California. Ray Kroc became their exclusive franchising agent for the entire country. Kroc formed the new franchising company on March 2, 1955, under the name of McDonald's System, Inc.

 This was the start of McDonald's, as we know it today. In 1967, the first McDonald's restaurant outside the United States opened in Richmond, British Columbia. In 1968, the Big Mac sandwich was introduced, followed by the Egg McMuffin breakfast sandwich in 1973.

Products
Hamburgers & Cheeseburgers including Big Mac, Quarter Pounder with Cheese, Filet-o-Fish, McAloo etc. French Fries. Chicken McNuggets Low fat Shakes Sundaes Cones Pies Soft Drinks McArabia Kofta.

Competitors
McDonalds compete with: International National regional Local retailers of food products.

McDonalds competes on the basis of: Price Convenience Service Quality food products

major competitors
Following are the major competitors of McDonalds in the broadest perspective: Restaurants Quick Service eating establishments Pizza parlors Coffee shops Street vendors Convenience food stores Supermarkets

Internationally its competitors include: Burger King Taco Bell KFC Nationally with reference to Pakistan its major competitors are: KFC AFC Pizza Hut

Market/Industry
McDonalds basically operate within Fast Food Market/ Industry. It can be labeled as a Quick Service Eating Establishment cum Convenience food store.

Customers Need, Wants & Demands

Need satisfied by McDonalds is: FOOD Big Mac, French fries and Soft drink satisfies the Want concept. Given their wants and resources, people all over the world demand McDonalds products with benefits that up to the most value and satisfaction.

Marketing Management Philosophies

Following are the five marketing strategy concepts: Production concept Product concept Selling concept Marketing concept Societal Marketing concept

McDonalds Marketing Concept

McDonalds follows the marketing management philosophy concept that holds that achieving its organizational goals depends on knowing the needs and wants of its target customers worldwide and delivering the desired satisfactions better than its competitors like KFC, Pizza Hut etc do.

Reasons for Choosing Marketing Concept

1. McDonalds get to know the needs and wants of the fast food market in every country in which it operates and adapt its menu accordingly. 2. It adapts its menu according to local tastes like: McAloo in India McArabia Kofta in Pakistan & Middle East McSalsa in Spain.

 3. It also adapts its product price according to the purchasing power of majority of its target customers in the country in which it operates like: Burger in India @ Rs. 25 minimum.. Burger in Pakistan @ Rs. 35 minimum. 4. World Over it provides the desired satisfactions of its customers better than its competitors (KFC, Pizza Hut) being No.1 in Hamburgers.

Marketing Challenges
Following are the major marketing challenges faced by McDonalds with special reference to Pakistan: Mushroom growth of local fast food chains like AFC etc. Positive image building against existing negative western image. Increasing advertising costs like increased rates of Billboards at prominent places. Combating bird flu challenge in relation to chicken products. Further local adaptability of products according to local taste buds.

Why McDonalds should be Customer Oriented and Market Driven? Customers are more informed and demanding now. Increased importance given to customer relations by competitors. Age of specialization & customized products. Projected further cut throat competition.

Thanks.