31723091 mcdonald final project
TRANSCRIPT
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Presentation By:
ASFAND EJAZ (415)
M.SOHAIL (408)
M.USMAN (316)
AHMAD ARSLAN (346)
M.FAISAL (534)
M.NAVEED (311)
Presentation To:
Prof. AHMAD USMAN
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IntroductionMcDonalds is the largest and best known global
food service retailer with more than 30,000
restaurants in 121 countries, and best known global
food service.
McDonalds serves less than one percent of the
worlds population.
The first McDonald's restaurant was opened in 1954.
It was operated by two brothers Dick and Mac
McDonald.
McDonalds outstanding brand recognition,
experienced management, high quality food,
advanced operational systems and unique global
infrastructure ensure a position that enables them to
capitalize on global opportunities.
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VisionThe worlds best quick service restaurant experience.
World Wide Strategies1. Be the best employer for people in each
community around the world.
2. Deliver optional excellence to customers in
each restaurant.
3. Achieve enduring profitable growth by
expanding the brand and leveraging the
strengths of McDonalds system through
innovation and technology.
To achieve their vision they are focused on three world
wide strategies:
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Welcome to
McDonald's Pakistan McDonalds Pakistan is part of the Lakson
Group of Companies, a leading business
house in Pakistan.
McDonalds first restaurant opened its
doors to the people of Pakistan in
September 1998 in Lahore. This launch
was met with great enthusiasm from the
citizens of Lahore, who are known for their
liveliness, vigor and desire for quality food.
Karachi opened its first restaurant a week
after Lahore.
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There are now 21 restaurants in four major cities
of Pakistan ( 9 in Karachi, 1 in Hyderabad, 8 in
Lahore ,1 in Faisalabad,1 in Islamabad and 1 inrawl).
McDonalds is firmly committed to give back to the
community where it operates.
They are happy to become involved because theyrecognize that organizations have a role to play in
helping communities to work successfully.
Welcome to
McDonald's Pakistan
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McDonalds BusinessModel
Franchise Model
Only 15% of the total number of restaurants are
owned by the Company.
The remaining 85% is operated by franchises.
The company follows a comprehensive framework
of training and monitoring of its franchises toensure that they adhere to the Quality, Service,
Cleanliness and Value propositions offered by the
company to its customers. and quality across
geographies.
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Product Consistency
By developing a sophisticated suppliernetworked operation and distribution
system, the company has been able to
achieve consistent product taste and quality
across geographies.
Act like a retailer and think like a brand
McDonalds focuses not only on delivering
sales for the immediate present, but also
protecting its long term brand reputation.
McDonalds BusinessModel
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Customer Perception and
Customer Expectation
Customer perception is a key factor affecting a
products success.
McDonalds being an internationally renowned
brand brings with it certain expectations for the
customers.
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Customer Perception andCustomer Expectation
TargetSegment
What is McDonalds for me?
A Family with
children
A treat to children, a fun place to
be for the children.
Urbancustomer on
the move
Great taste, quick servicewithout affecting the work
schedule
TeenagerHangout with friends, but keep it
affordable.
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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 continuousinnovation is required.
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Importance of PLC inMcDonalds
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Importance of PLC in
McDonalds
To counter these changes McDonalds hascontinuously 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 productalready 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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McDonalds SWOT Analysis
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McDonalds SWOT Analysis
Strengths
MacDonalds has a strong global presence with itsnearest domestic competitor being only half its size.
McDonalds is the market leader in both the domestic and
international markets.
In international markets, MacDonalds is well placed to
expand and take advantage of long-term economic growth.MacDonalds also has a strong real estate portfolio.
The companys outlets are located in areas that are highly
known for visibility, traffic volume and ease of access.
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Weaknesses
The food industry is really saturated.
As a result of this, MacDonalds has to deal with
the prospect of looming market saturation, which
could make it difficult to add new outlets.
The market is forecast to grow by around 2% per
year.
There is also an increasing price competition
driven by too many competitors, which reduces the
companys ability to increase revenue.
McDonalds SWOT Analysis
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Opportunities
McDonalds SWOT Analysis
MacDonalds sold its Donators Pizzeria back to its
founder in 2003 and discontinued Boston market
operations outside of the US.
The company will instead focus on Chipotle Grill which
is the companys most successful non MacDonalds
branded chain of restaurants.Also to increase profitability the company has slowed
its expansion of McDonalds restaurants so as to
refurbish and change the image of current restaurants
and adding new features such as Internet access.
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McDonalds SWOT Analysis
Threats
McDonalds is exposed to changes in the global
economy.
The companys aggressive international expansion has
left it extremely vulnerable to other countries economic
slowdown.
Foreign currency fluctuation is also another problem
global companies like McDonalds.
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McDonalds Marketing Mix
1. Product
2. Place
3. Price
4. Promotion
Marketers have four tools to use to develop
an offering to meet the needs of their
targeted customers.
Collectively they are called the marketing
mix.
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McDonalds Marketing Mix
The product , service or program includes bothtangible and intangible elements.
The tangible , of course, are those things that the
customer can see, touch, feel, taste, or smell .
The intangible include such things as the image of
the offering ... which includes the image of theorganization making the offering, the
psychological aspects of pricing (high price to
many customers is equated with high quality and
vice versa).
1. Product
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McDonalds Marketing Mix
2. Place
The place is where the customer receives theproduct, service, or program.
The place of delivery, including all of its
resources, is part of what the consumer buys.
A place that meets his or her needs better may
be worth more.In setting its strategy, the organization must
determine how much the target market is
willing to pay for atmosphere and physical
resources of place.
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McDonalds Marketing Mix
3. Price
The price is what the customer pays.It includes direct and indirect costs as well as
opportunity costs.
The benefits of the product have to be great
enough to warrant the price.
Price includes all costs associated with the
product, service, or program.
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McDonalds Marketing Mix
4. Promotion
Promotion includes all forms of communicationyou use to communicate the benefits of your
offering to the target market(s).
The objective is to persuade the customer in such
a way that he or she recognizes that your offering
is uniquely qualified to meet his or her needs.The term promotion mix is commonly used to refer
to the types of communication that are available:
advertising, public relations, personal selling,
publicity, and sales promotion.
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McDonalds Marketing Mix
The marketing mix principles are
controllable variables, which have to be
carefully managed and must meet the needs
of the defined target group.
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McDonalds Marketing Mix
The marketing mix is apart of the organizations
planning process and consists of analyzing the
defined:
How will you design, package and add value to
the product? Product strategies.
What pricing strategy is appropriate to use?
Price strategies.Where will the firm locate? Place strategies.
How will the firm promote its product Promotion
strategies.
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McDonalds Marketing Mix
Product Price Promotion Place
Functionality
Appearance
Quality
PackagingBrand
Warranty
Service/Supp
ort
List price
Discounts
Allowances
FinancingLeasing
options
Advertising
Personal
selling
Publicrelations
Message
Media
Budget
Channel
members
Channel
motivationMarket
coverage
Locations
Logistics
Service levels
The following table summarizes the marketing
mix decisions, including a list of some of the
aspects of each of the 4Ps.
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Survey Questionnaire
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Survey QuestionnaireQ. Which is your favorite product at
McDonalds?
Mc hicken
ur er
19
rench
ries
42
i Macur er
12
thers
27
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Survey QuestionnaireQ. Is the product line in McDonalds
adequate?
0%
10%
20%
30%
40%
Yes o Its o ay
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Survey QuestionnaireQ. What is the main problem you faced at
McDonalds?
0%
10%
20%
30%
40%
50%
Long
Queues
Wrong
Order
Bad
Music
Other
Problems
No
Problems
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Survey QuestionnaireQ. Which area do you think needs the most
improvement?
o rices
ore ariety
ome e ivery
ore Space
etter usic
o Su estions
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Survey QuestionnaireQ. What are Unique Selling Proposition
of McDonalds?
ood ygiene ience Quic
Service
ocation thers
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McDonald's PeoplePromise
Mission Statement:
We value you, your growth
and your contributions.
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Thank
ou
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