DISSERTATION REPORT ON CONSUMER PREFERENCE TOWARDS MCDONALDS IN SINGAPORE

SUBMITTED BY: RASHMEET KAUR BBA(GENERAL)2009-2012

In partial fulfillment of the award of

AMITY BUSINESS SCHOOL

DECLARATION

Title of Project Report CONSUMER PREFERENCE TOWARDS MCDONALDS IN SINGAPORE

I declare

(a)That the work presented for assessment in this dissertation Report is my own, that it has not previously been presented for another assessment and that my debts (for words, data, arguments and ideas) have been appropriately acknowledged

(b)That the work conforms to the guidelines for presentation and style set out in the relevant documentation.

Rashmeet Kaur A3906409218 BBA General

ACKNOWLEDGEMENT

As part of our course curriculum dissertation in our specialization has helped us in gaining deep knowledge into the field of marketing. Any accomplishment requires the effort of many people and a project of this nature requires intellectual nourishment, professional help and encouragement at various stages.

I bear to imprint of my people who have given me their precious ideas and time to enable me to do this research. I owe much to Ms Ashima Ahuja who has been my mentor and my guide all through. At last but not the least I also thank to all persons interviewed for their kind cooperation. Im indebted to all those who have been helpful throughout the process of writing this report but as the cliche goes, Im solely responsible for any remaining errors of fact or judgement.

Rashmeet Kaur A3906409218 BBA General

INDEX

Chapter

Content

Page no.

INTRODUCTION

REVIEW OF THE LITERATURE

10

RESEARCH METHODOLOGY

16

ANALYSIS

18

RECOMMENDATION

21

CONCLUSION

22

REFERENCES

23

INTRODUCTION OF THE COMPANY

Founded in 1955 by Ray Kroc, McDonalds corporation today is known around the world as an icon of American life style, marketing billions of hamburgers around the world. McDonalds is the largest and best known global food service retailer 31,000 restaurants across 117 countries. Yet on any one day, even as market leader, McDonalds serves less than 3% of the worlds population. Its outstanding brand recognition, experienced management, high quality food, site development expertise, advanced operational systems and unique global infrastructure position it to capitalize on global business opportunities. McDonalds plan to expand its leadership position through great tasting food, superior service, everyday value and convenience have made it a well known brand name around the world. Its efforts to increase market share, profitability and customer satisfaction have produced high returns to shareholders-a compound annual return of 24% over the past 10 years.

The McDonald's Promise QSC&V......The Foundation that built McDonald's success

when asked to explain McDonald's success, founder Ray Kroc used to say, "We take the hamburger business more seriously than anyone else."

Kroc was a perfectionist. From the day he opened his first restaurant, he vowed to give his customers high quality products, served quickly --and with a smile, in a clean and pleasant environment, and all at a fair price. Quality, Service, Cleanliness and Value (QSC&V) became the philosophy that drove McDonald's business.

McDonald's Quality Management instills the culture of quality through such principles as being customer driven, managing with facts, valuing people, and continually improving every aspect of our business

Service that is fast and friendly and has always been a foundation for success McDonald's Cleanliness for us means having the cleanest and freshest facilities from the kitchen to the rest rooms and parking lots

Value at McDonald's means the total experience...... great food, friendly folks, a clean environment, quick and accurate service and fun!

McDonald's Singapore McDonald's opened its first restaurant in Singapore in 1979. And what an event that was - the world's highest volume of hamburgers was served that auspicious October day at Liat Towers! Today, over 110 McDonald's restaurants across the island serve 1.2 million customers every week. 7,000 employees keep the McDonald's restaurants running ship-shape. Milestones McDonald's opened its first restaurant in Singapore in 1979. And what an event it was! The world's highest volume of hamburgers was served that auspicious October day at Liat Towers. Today, 6000 staff in over 120 McDonald's restaurants across the island keep the McDonald's machine running ship-shape. Together, we serve 50 million customers every year. Singapore Milestones Apr 2009 Hewitt Best Employer Award 2009 Hewitt Best Employer in Asia Award 2009 Feb 2009 HRM Awards for Best Employer Branding and Innovation in Recruitment Jul, 2007 McDonalds and Managing Director Recognized in SHRI HR Awards 2007 After recently being listed among Singapores top 10 Best Employers, McDonalds was once again recognized for leading HR practices when it was conferred two awards at The Singapore

HR Awards 2007 organized by the Singapore Human Resources Institute (SHRI) the Corporate Award and the Leading CEO Award for its Managing Director, Kenneth Chan. May, 2007 Red PEA PLAY, EXERCISE, ART McDonalds Unique Brand Family Entertainment Recognizing the significant role Moms play in the well-being of families, and to learn from their valued views and perspectives, McDonalds took the initiative to set up the first Moms Panel, comprising 5 Singaporean moms from diverse backgrounds, to listen to what parents want for their children and respond directly to families changing needs. The moms input would be sought in Happy Meal menu development, Happy Meal choices, and in-restaurant activities for families and educational outreach for childrens well-being. May, 2007 McDonalds Sets Up First Moms Panel in Singapore Recognizing the significant role Moms play in the well-being of families, and to learn from their valued views and perspectives, McDonalds took the initiative to set up the first Moms Panel, comprising 5 Singaporean moms from diverse backgrounds, to listen to what parents want for their children and respond directly to families changing needs. The moms input would be sought in Happy Meal menu development, Happy Meal choices, and in-restaurant activities for families and educational outreach for childrens well-being. Apr, 2007 McDonalds Employees Take Centre Stage in Employer Brand Campaign I-stories abbreviated from Im loving it and inspirational stories of McDonalds employees were unleashed in eye-catching advertisements at the Raffles Place and City Hall MRT stations as part of an employer brand campaign. Each of the 17 featured employees stories celebrates people excellence and the endless opportunities for individuals who seek a career at the Golden Arches. Apr, 2007

McDonald's Amongst Singapores Top 10 Best Employers McDonalds long-standing philosophy that the company can grow only if it enables its employees to grow, contribute and feel pride in their work garnered it a 5th place ranking among Singapores Top 10 Best Employers. The Best Employers in Singapore 2007 study conducted by global human resources services firm Hewitt Associates in partnership with The Business Times and The Straits Times Recruit assessed more than 750 participating companies. The award marked the first time that a company in the Quick Service Restaurant sector was singled out as one of Singapores Top 10 Best Employers. Apr, 2007

The First Ronald McDonald Family RoomTM Opens in Singapore Located at KK Womens and Childrens Hospital, the Ronald McDonald Family Room is a home away from home for parents to stay or rest in, as they tend to their sick children who are hospitalised. The opening on April 12, 2007 was officiated by Dr Vivian Balakrishnan, Minister for Community Development, Youth and Sports and Second Minister for Information, Communications and the Arts. The Ronald McDonald Family Room occupies one of the closed wards in KKHs Womens Wing and has 12 bedrooms, a dining area, a pantry, quiet rooms, an adult/childrens library, a childrens playroom, TV lounge and internet corner. Apr, 2007 Felicia Yee, our Singaporean Global Casting Star Goes Global The Singapore launch of McDonalds new packaging featuring 24 stars selected from its firstever online consumer Global Casting Call with our very own Star, Felicia Yee, greeting more than 50 million people worldwide. She joins the ranks of famous faces who have been featured on McDonalds packaging, including Olympic athletes, tennis superstars Venus Williams and Serena Williams, basketball sensation Yao Ming and pop group Destinys Child. Feb, 2007

Breakfast

Launch

McCaf

Premium

Coffee

Available

All

Day

Islandwide

In response to popular demand since the first McCaf opened in late 2003, McDonalds introduced the all-time McCaf favourites Cappuccino, Latte and Long Black in almost all its restaurants islandwide. With this initiative, McDonalds has become the largest purveyor of premium coffee at great value for its customers. Coffee lovers can enjoy their McCaf premium coffee made only with 100 percent Arabica beans all day at McDonalds restaurants and via McDelivery 24/7. Nov, 2006 Launch of Grilled Chicken Bun In celebration of the years World Childrens Day in Singapore, McDonalds launched the Grilled Chicken Bun, a new Happy Meal entre especially for children. Grilled Chicken Bun is a lightly grilled chicken patty with fresh tomato slice, crisp lettuce and a light touch of mayonnaise between tasty buns, almost akin to a Happy Meal version of Mums favourite Grilled Chicken Foldover. Nov, 2006 Official Opening of McDonalds Ang Mo Kio Town Garden West McDonalds celebrated the official opening of the 24-hour McDonalds Ang Mo Kio Town Garden West restaurant, the second collaboration between McDonalds Restaurants and the National Parks Board (NParks), after the well-received McDonalds West Coast Park Restaurant. Complete with a Drive-Thru and McCaf, the restaurant iffers a close-to-nature alfresco dining experience with its unique architectural concept of elevated decks integrated with the natural foliage. The opening was also held in conjunction with World Childrens Day and the launch of the new Grilled Chicken Bun Happy Meal item. Nov, 2006 Singaporean among McDonalds 25 Global Casting Stars McDonalds announced the 25 stars selected from its first-ever online Global Casting Call. Felicia Yee from Singapore joined the 24 other selected stars from Asia, Australia, Europe,

Latin America and North America to be featured in McDonalds first ever global packaging showcasing customers from around the world. Aug, 2006 1st 41 Tourists Given A McDonalds National Day Welcome To commemorate Singapores 41st birthday, McDonalds and the Civil Aviation Authority of Singapore (CAAS) staged a special welcome to the first 41 tourist arrivals at Changi Airport. Each tourist received an exclusive McDonalds Uniquely Singapore Teenie Beanie garland, presented by Ronald McDonald, Chief Happiness Officer at Changi Airports Terminal 1. Aug, 2006 Veg Out Day McDonalds launched Veg Out Day as part of its ongoing support for the Health Promotion Boards eat 2 servings of fruit + 2 servings of veggies public educational outreach. Every first day of the month, customers can enjoy McDonalds Fresh Sidekicks such as Corn Cup, Fresh Salad and Apple Dippers at $1 each, with no additional purchase required. The Fresh Sidekicks are usually priced at $2.50 ala carte. June 2006 McDonalds Sent Three Singaporean Kids As Player Escorts To World Cup

For the first time, children from Singapore participated as player escorts at the FIFA World CupTM. Three parent-and-child teams were selected Danyon Christian Tay, Luke David Levy and Colin Oon made history as the first children from Singapore to escort the worlds best football players onto the pitch at the 2006 FIFA World Cup Germany Opening Match (Germany vs Costa Rica) on June 9, 2006. This was made possible by McDonalds which, as a World Cup sponsor, had the exclusive rights to the 2006 FIFA World Cup Player Escort Programme. Mar, 2006 Launch of more menu choices McDonald's committment to help customers achieve balanced eating saw the launch of Corn

Cup, Apple Dippers and Fresh Salad as wholesome menu choices to complement Extra Value Meals. Dec, 2005 McDonald's makes rice Fn-tastic! The Chicken Fn-tastic and Beef Fn-tastic were launched, presenting a new, exciting way to enjoy a hand-held rice meal. By February, one million Fn-tastic had been sold. Aug, 2005 McDonald's goes 24 Hours McDelivery was relaunched as a 24-hour service, available seven days a week and with no minimum order requirement. 18 McDonald's restaurants also started staying open 24 hours. July, 2005 Olympic Day Run In Singapore, the Olympic Day Run on July 2 was officially flagged off by Dr Jacques Rogge, President of the International Olympic Committee. McDonald's is the exclusive worldwide partner of the Olympic Day Run. June 2005 Mix 'N' Match Happy Meals McDonald's Singapore launched the Mix 'N' Match Happy Meals, a new menu concept comprising a wider variety of wholesome choices, at no extra charge. Dec, 2004 Launch of Grilled Chicken Foldover McDonald's introduced the Grilled Chicken Foldover, a new style of McDonald's sandwich made with wholesome flatbread. May, 2004 ez-link Cashless Payment and Top-up Service McDonald's became the first quick service restaurant here to accept the ez-link card as a payment mode, as well as to offer a top-up service. May, 2004

McDonald's West Coast Park McDonald's first tropical resort-inspired restaurant opened at West Coast Park. Includes a McCaf, two alfresco dining areas and a landscaped pond. Mar, 2004 Wi-Fi at McDonald's Singapore's first "second generation public Wi-Fi network" in McDonald's was officially launched by Mr Khoong Hock Yun, Assistant Chief Executive Officer (Industry) of Infocomm Development Authority of Singapore. Oct, 2003 "HOT" Customer Service McDonald's introduced the hand-held order taking (HOT) device, a technological first in McDonald's Asia. Oct, 2003 First McCaf opened in Singapore McDonald's opened its first McCaf at Great World City in Singapore. McCaf's Latte was ranked 4-star, in an independent coffee taste test conducted by The Straits Times. It surpassed the ranking of numerous established specialty brands. July, 2002 Chicken Big Mac McDonald's Singapore became the first in the world to offer the Chicken Big Mac. Jan, 2001 New Hello Kitty and Dear Daniel plush series launched in Singapore ahead of the rest of the world Singaporeans' fascination with Hello Kitty and Dear Daniel prompted McDonald's to launch its new series of "Royal" Hello Kitty and Dear Daniel here, ahead of other countries. Dec, 2000 McDonald's opened 14 more restaurants in 2000 bringing the total to 122 restaurants Sep, 2001

McDonald's at KK Women's and Children's Hospital McDonald's first restaurant in a hospital opened at the KK Women's and Children's Hospital. Special items were added to the regular menu, including low-fat milk, Coke Light, soup and salad. Apr, 2000 McDonald's first alfresco restaurant opened at Scotts Road Jan, 2000 Hello Kitty McDonald's launched six exclusively designed pairs of limited edition Hello Kitty and Dear Daniel plushes in wedding attire. The most successful promotion to date, there were record sales of the plushes and 'Kitty Mania' made headlines around the world. Apr, 1999 10 Million Chicken McCrispy sold Chicken McCrispy was a resounding success. An amazing 10 million pieces was sold in the first year alone. To thank loyal customers, the original price of $3.90 was brought down to just $2.95. Jul, 1999 Celebrating 20 Years of Smiles McDonald's celebrated its 20th anniversary with an exhibition at the Singapore History Museum and an advertising campaign that featured ordinary people reminiscing about their first experiences at McDonald's, when it opened at Liat Towers in 1979. Feb, 1999 Pooh Plushes McDonald's Pooh plushes proved once again to be one of the fastest-selling collectibles with one million plushes cleared within 10 days of the "Pooh's Back" promotion. This superseded the 700,000 Pooh and friends plushes that were sold in the first Pooh promotion in 1997. Dec, 1998 McDonald's opened 8 more stores in 1998 bringing the total to 108 restaurants island wide Dec, 1998

McDonald's continues to be Singapore's largest advertiser with some $10 million spent across all media in 1998 Aug, 1998 Snoopy goes on a world tour of McDonald's The Snoopy World Tour featuring 28 designs became one of the most popular McDonald's collectibles with more than 800,000 pieces sold. 1998 It's the Big Mac's 30th anniversary! Approximately 600 million Big Mac sandwiches were consumed annually in the United States. In Singapore, 3.3 million Big Mac, i.e. about one per Singaporean, were sold in 1997. Dec, 1997 McDonald's surpassed the 100 store mark with Nanyang Polytechnic as the 100th store. Dec, 1996 McDonald's opened 20 restaurants in 1996 Dec, 1996 McDonald's sold 21 million meals comprising breakfast, lunch, dinner and Happy Meals Dec, 1996 101 Dalmatians Happy Meal

With 1.2 million pieces sold, the 101 Dalmatians became the all-time best-selling Happy Meal figurines. The promotion was brought back a year later due to popular demand. Dec, 1996 McDonald's at Seagate, Ang Mo Kio

First quick service restaurant (QSR) to open in a staff cafeteria of a multinational company. 1996

First McDonald's in a Community Centre

This was not only the first McDonald's restaurant in Hong Kah Community Centre, it was also the pioneer within the quick-service food industry. Dec, 1995 McDonald's opened 11 restaurants in 1995 Dec, 1995 McDonald's 15th Anniversary of Happy Meal

In 1995, McDonald's celebrated the 15th anniversary of the Happy Meal and introduced 15 collectibles from international licensors. Jul 5, 1993 First McDonald's Restaurant in an Educational Institution McDonald's Singapore Polytechnic opened. Sep, 1992 McDonald's Becomes Halal McDonald's received Halal certification from MUIS (The Islamic Religious Council of Singapore) which approved McDonald's food for consumption by Muslims. Apr 10, 1992 Beijing, China Operations McDonald's Singapore sent an 11-member team to help start up operations in the world's largest McDonald's restaurant in Beijing. Oct, 1991 "A Day in Singapore" This was the first local TV commercial to feature all four official languages in one advertisement. Jun 4, 1991

Opening of McDonald's Place, McDonald's new corporate headquarters at King Albert Park 1989 Ronald McDonald Children's Charity (RMCC)

RMCC Singapore was established to help raise funds for sick children from needy families. May 22, 1984 First McDonald's in a Public Housing Estate

It opened at Hougang and set the growth for more McDonald's restaurants in HDB neighbourhoods. Oct 27, 1979 First McDonald's Restaurant in Singapore

On opening day at Liat Towers, Orchard Road, we served up the world's highest volume of hamburgers in a single day.

REVIEW OF LITERATURE

McDonalds, the long-time leader in the fast-food wars, faced a crossroads in the early 1990s. Domestically, sales and revenues were flattening as competitors encroached on its domain. In addition to its traditional rivalsBurger King, Wendys, and Taco Bellthe firm encountered new challenges. Sonic and Rallys competed using a back-to basics approach of quickly serving up burgers, just burgers, for time-pressed consumers. On the higher end, Olive Garden and Chilis had become potent competitors in the quick service field, taking dollars away from McDonalds, which was firmly entrenched in the fast-food arena and hadnt done anything with its dinner menus to accommodate families looking for a more upscale dining experience. While these competitive wars were being fought, McDonalds was gathering flak from environmentalists who decried all the litter and solid waste its restaurants generated each day. To counter some of the criticism, McDonalds partnered with the Environmental Defense Fund (EDF) to explore new ways to make its operations more friendly to the environment.

Facts McDonalds roots go back to the early 1940s when two brothers opened a burger restaurant that relied on standardized preparation to maintain qualitythe Speedee Service System. So impressed was Ray Kroc with the brothers approach that he became their national franchise agent, relying on the companys proven operating system to maintain quality and consistency. Over the next few decades, McDonalds used controlled experimentation to maintain the McDonalds experience, all the while expanding the menu to appeal to a broader range of consumers. For example, in June 1976, McDonalds introduced a breakfast menu as a way to more fully utilize the physical plant. In 1980, the company rolled out Chicken McNuggets. Despite these innovations, McDonalds tremendous growth could only continue for so long. Its average annual return on equity was 25.2% between 1965 and 1991. But the company found its sales per unit slowing between 1990 and 1991. In addition, McDonalds share of the quick service market fell from 18.7% in 1985 to 16.6% in 1991. Plus growth in the quick service

market was projected to only keep pace with inflation in the 1990s. McDonalds faced heightening competition on several fronts. First, its traditional rivalsBurger King, Wendys, and Taco Bellwere eating into its margins through promotions and value pricing strategies. Taking a leaf from McDonalds own playbook, Sonic and Rallys were using a very limited menu approach to attract time strapped consumers. Finally, Chilis and Olive Garden were appealing to diners looking for something a little more enticing that the familiar Golden Arches for their families.

In the late 1980s, McDonalds began recognizing the importance of maintaining an ecologically correct posture with the public, which was becoming more concerned about the environment. For example, in 1989, 53% of respondents in one survey revealed that they had not bought a product because they didnt know what effect the packaging would have on the environment. Closer to home, a 1990 study showed that each McDonalds generated 238 pounds of on-premise solid waste per day. Its no surprise, then, that McDonalds sought a way to reduce its solid waste while providing a more environmentally acceptable face to the public. Beginning in 1989, it partnered with the Environmental Defense Fund, a leading organization devoted to protecting the environment, to seek ways to ease the companys environmental burden on the landscape. Together, EDF and McDonalds considered its impact on a wide range of stakeholders customers, suppliers, franchisees, and the environment. The company gave its franchisees much autonomy in finding ways to eliminate environmental blight. The companys hope was that from these divergent approaches, it stood a greater chance of finding solutions with broad applicability than if it had tried to pursue a one-size-fits-all approach from the outset. Some of the environmentally inspired solutions that came out of the collaboration with EDF were the: Introduction of brown paper bags with a considerable percentage of recycled content. Solicitation of suppliers to produce corrugated boxes with more recycled content, which had the twin effect of reducing solid waste and building a market for recycled products. Abandonment of polystyrene clamshell containers to hold sandwiches in favor of new paper-based wraps that combined tissue, polyethylene, and paper to keep food warm and prevent leakage.

RESEARCH METHODOLOGY

INTRODUCTION TO RESEARCH PROBLEM MOTIVE: - The basic motive of preparing this report is to study the consumer preference towards McDonalds in Singapore and to know about the Buying Behavior of consumers for McDonalds. OBJECTIVES: - The objective of the report is to study the consumer preference towards McDonalds in Singapore and also to analyze the buying behavior of Burgers by the people living in Singapore. SCOPE: - This report to some extend will tell us about the success of the McDonalds in Singapore and also about the various other fast food outlet like KFC, Mos Burgers Pizza Hut, etc in Singapore . This report will also help me to know more about the market strategies and selling modes followed by McDonalds in Singapore and various kind of recommendations and suggestions. METHODOLOGY: - I have got 50 questionnaire filled in by the localities and customer outside the McDonalds regardless of caste, creed, nationality in Singapore. These questionnaires will account for my primary data where as the secondary data has been picked up from the internet, books, articles and journals. ROLE OF MARKET RESEARCH AND OPPURTUNITY ANALYSIS: Market research can be defined as the systematic gathering, recording analysis and interpretation of data on problems relating to the marketing of goods and services. The role of market research is primary to act as an aid to the decision maker. It a tool that can help toreduce the risk of decision making caused by the environmental uncertainties and lack of knowledge in international marketing. In international marketing because of the increased uncertainties and complexities in the world markets, capacity to ensure systematic planned process in the research and the use of secondary information .the research process of six stages .these steps are logical process of any research. Defining the problem: It is important to decide what information is needed and set the objectives of the research, ensuring it is both commercially and worthwhile and that the objective is feasible

and achievable. Developing the approach to be taken: the planning phase will concern itself with timescales, resources to carry out the work, the expertise required to meet the objective and the decision as to whether a qualitative or quantitative approach is to be taken. Designing the research: In the designing the research strategy considerations will be given to the different action steps that need to be taken. Ensuring full use of secondary data sources will be important, as well the use of a pilot study to ensure the development of an effective and meaningful questionnaire. Carrying the out of field work: Decisions as to how the questionnaire will be administrated will be made as well as decisions as to who do the work and what resources are required. Analyzing the data: The data analyzed stage will need to take full account of the objectives of the research and the clients and needs. Preparing the report and the presentation: These are the outputs of research work and vital in establishing the credibility of the research methods used and the validity of the findings of the research.

The fast food business is a highly competitive one. To be successful, it must be able to project the right image as well as meet the needs of customers. Marketing strategies must be formulated to attract customers. This report looks at some aspects of the Burger Market in Singapore. It examines the buying behavior of consumers and gauges their perceptions of marketing variables specific to the fast food industry (In this case the Burger Market). DESCRIPTIVE RESEARCH Descriptive research, also known as statistical research, describes data and characteristics about the population or phenomenon being studied. Descriptive research answers the questions who, what, where, when and how. Although the data description is factual, accurate and systematic, the research cannot describe what caused a situation. Thus, descriptive research cannot be used to create a causal relationship, where one variable affects another. In other words, descriptive research can be said to have a low requirement for internal validity. The description is used for frequencies, averages and other statistical calculations. Often the best approach, prior to writing descriptive research, is to conduct a survey investigation.

DATA COLLECTION Secondary data: Already existing data is called secondary data. I collected them by following method Internet. Books National Library Singapore Articles, Journals, books on customer satisfaction

and marketing perspectives

Analysis BUSINESS MODEL

McDonald's Corporation earns revenue as an investor in properties, a franchiser of restaurants, and an operator of restaurants. Approximately 15% of McDonald's restaurants are owned and operated by McDonald's Corporation directly. The remainder is operated by others through a variety of franchise agreements and joint ventures. The McDonald's Corporation's business model is slightly different from that of most other fast-food chains. In addition to ordinary franchise fees and marketing fees, which are calculated as a percentage of sales, McDonald's may also collect rent, which may also be calculated on the basis of sales. As a condition of many franchise agreements, which vary by contract, age, country, and location, the Corporation may own or lease the properties on which McDonald's franchises are located. In most, if not all cases, the franchisee does not own the location of its restaurants. The UK business model is different, in that fewer than 30% of restaurants are franchised, with the majority under the ownership of the company. McDonald's trains its franchisees and others at Hamburger University in Oak Brook, Illinois. In other countries, McDonald's restaurants are operated by joint ventures of McDonald's Corporation and other, local entities or governments. As a matter of policy, McDonald's does not make direct sales of food or materials to franchisees, instead organizing the supply of food and materials to restaurants through approved third party logistics operators. According to Fast Food Nation by Eric Schlosser (2001), nearly one in eight workers in the U.S. have at some time been employed by McDonald's. (According to news piece on Fox News this figure is one in ten). The book also states that McDonald's is the largest private operator of playgrounds in the U.S., as well as the single largest purchaser of beef, pork, potatoes, and apples. The selection of meats McDonald's uses varies with the culture of the host country.

SWOT ANALYSIS

SWOT analysis is a simple framework for generating strategic alternatives from a situation analysis. It is applicable to either the corporate level or the business unit level and frequently appears in marketing plans. Such an analysis of the strategic environment is referred to as a SWOT analysis. A scan of the internal and external environment is an important part of the strategic planning process. Environmental factors internal to the firm usually can be classified as strengths or weaknesses, and those external to the firm can be classified as opportunities or threats. The SWOT analysis provides information that is helpful in matching the firm's resources and capabilities to the competitive environment in which it operates. STRENGTHS

Large market share. Strong supply chain. Rigorous food safety standards. Decentralized yet connected system Strong brand name, image and reputation. Strong financial performance and position. Affordable prices and high quality products. Nutritional information available at stores. Strong global presence & performance in the global marketplace. Specialized training for managers known as the Hamburger University. McDonalds Plan to Win focuses on people, products, place, price and promotion Market Leader with 27% of the market share.(2008) Global brand power, Global Presence.

Convenient Locations and Payment Methods (Ezlink) Appeals to the mass market (especially the kids) 24/7 Operations, Drive Thru, Delivery (extensive coverage of the market) Halal certification. Ronald McDonald Childrens Society.

WEAKNESSES

Unhealthy food image, perceived as junk food. High Staff Turnover including Top management. Customer losses due to fierce competition. Legal actions related to health issues; use of Trans fat & beef oil. Franchising fragilitycontrol over franchises.

OPPORTUNITIES

Expansion of other cashless payment systems. Well being and ethical image improvement. Expansion of the children market (other business market penetration) Setting up vegetarian menus or outlets to expand the market Growing health trends among consumers Joint ventures with retailers (e.g. supermarkets). Consolidation of retailers likely, so better locations for franchisees.

International expansion into emerging markets of China and India. Diversification and acquisition of other quick-service restaurants. Growth of the fast-food industry. Worldwide deregulation. Low cost menu that will attract the customers.

THREATS

The relationship between corporate level McDonald's and its franchise dealers. Anti-American sentiments. Global recession and fluctuating foreign currencies. Intense Competitions Growth of health conscious eaters Outbreak of diseases (mad cow, H5N1, bird flu, SARS) Recent hygiene complaints affect sales

PEST ANALYSIS POLITICAL AND LEGAL

The international operations of McDonalds are highly influenced by the

individual state policies enforced by each government. Any changes in regulations, the imposition of additional regulations, or the enactment of any new legislation under the Obama administration that impacts employment/labor, trade, product safety, transportation/logistics, health care, tax, privacy, or environmental issues could have an adverse impact on our financial condition and results of operations.

ECONOMIC McDonalds has the tendency to experience hardship in instances where the

economy of the respective states is hit by inflation and changes in the exchange rates. Market leader. Very high target market. Low cost and more incomes. The rate at which the economy of that particular state grows determines the

purchasing power of the consumers in that country.

SOCIAL

Working within many social groups. Increase employments.

TECHNOLOGICAL

Advanced technology development. Quality standards.

Environmental: Quality packing. Local manufacture using foreign supplies.

The 4Ps

i. Product The important thing to remember when offering menu items to potential customers is that there is a huge amount of choice available to those potential customers with regard to how and where they spend their money. Therefore McDonalds 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, McDonalds has introduced new products and phased out old ones over time, and will continue to do so. Care is taken not to adversely affect the sales of an existing option by introducing a new option which will cannibalise its sales (trade off). McDonalds knows that sales of products on its menu will vary at different points in their life cycle as is illustrated on the graph to the right. The type of marketing undertaken and the resources invested will be different depending on the stage a product has reached. For example, the launch of a new product will typically involve television and other advertising support. At any time a company will have a

portfolio of products, each in a different stage of its cycle. Some of McDonalds options are growing in popularity while arguably the Big Mac is at the maturity stage. ii. Price The customers 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 a low price is indicative of compromised quality. It is important when deciding on the price to be fully aware of the brand and its integrity. A further potentially adverse consequence of price reduction is that competitors match the lower prices resulting in no extra demand. This means the profit margin has been reduced without increasing the sales. iii. Promotions The promotions aspect of the marketing mix covers all types of marketing communications. One of the methods employed is advertising, sometimes known as above the line activity. Advertising is conducted on TV, radio, in cinema, online, using poster sites and in the press for example in newspapers and 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. 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. It is imperative that the messages communicated support each other and do not confuse customers. A thorough understanding of what the brand represents is the key to a consistent message. The purpose of most marketing communications is to move the target audience to some type of action. This may be to buy the product, visit a restaurant, recommend the choice to a friend or increase purchases of the menu item. Key objectives of advertising are to make people aware of an item, feel positive about it and remember it. The more McDonalds knows about the

people it is serving, the more it is able to communicate messages which appeal to them. Messages should gain customers attention and keep their interest. The next stage is to get them to want what is offered. Showing the benefits which they will obtain by taking action is usually sufficient. The right messages must be targeted at the right audience, using the right media. For example, to reach a single professional woman with income above a certain level, it may be better to take an advertisement in Cosmopolitan than Womans Own. To advertise to mothers with families, it may be more effective to take advertising space in cinemas during Disney films. The right media depends on who the viewers, readers or listeners are and how closely they resemble the target audience. iv. Place Place, as an element of 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. Conclusion Once the marketing strategy is in place, various responsibilities are given to different individuals so that the plan can be implemented. Systems are put in place to obtain market feedback which measure success against short-term targets. McDonalds has to ensure that this is done within the confines of a tightly controlled, finite marketing budget.

LIMITATIONS

Since the road to improvement is never ending, so this study also suffers from certain limitations. Some of them are as follows: Being a Non-Singaporean, it was a little difficult interacting with the local crowd

as language is one of the major problems. Overcoming that, at times the consumers were reluctant to reveal certain

information which might affect the results of the survey that I conducted. As a result some questions might have been left unanswered..(further suggestions) Also, the sample size that I took was as large as 60 and not more because of the

time limitation to some extent and also being an outsider-people here in Singapore are a little hesitant to share their views. An authentication letter was needed as at times the passengers asked for an

authority letter to carry out such a research. Scope of project is limited in the sense that only McDonalds has been taken for

consumer research. The extent of the survey was Bugis and Paya Lebar only. So the suggestions or

arguments given in the report may not hold true for other locations in Singapore. It was a time consuming method in which continuous guidance was required. Questionnaire method involves some uncertainty of response. Co-operation on the

part of informants, in some cases, was difficult to presume. For presenting about McDonalds only secondary source of data was referred. No

interviews with the company personnel, whether the operational or managerial levels were conducted.

FINDING

ON THE BASIS OF SEX Out of 60, 49 were male and the rest were females which means the survey shows

17(34%) males comes to know about the McDonalds by advertisements and 7(63%) females by newspaper. Maximum males visit McDonalds 2-3 times a week where as most females visit

McDonalds weekly. Most of the males and females have rated McDonalds service as good. Majority of males and females rated taste as an important attribute. Majority of males rate variety as important attribute whereas females rate it as

somewhat important. important. Most of the males rated dcor as least important whereas females rated it as Most of the males rated hygiene as most important and females preferred it as

somewhat important. important. Both males and females have rated promptness of delivery as least important, this Both males and females have rated value for money as important attribute. Males have rated friendliness of staff as somewhat important and females as least

shows delivery is not that much popular. The males have rated Burgerking as good whereas females have rated quality as

average and rest of the attributes as good. in terms of V. The males and females both have rated KFC good in terms of QSC and average

The males have rated Mos burgers as good in terms of Q & V and average in

terms of S &C. whereas females have rated QS &V as good and S as average. Males have rated Q as excellent and rest of SC&V as good. Whereas females

have rated QSC&V as good for Pizza Hut. others. Majority of the male and female have stated that the value for money at Male and female both have rated Q&C as average and rest of the S&V as good for

McDonalds as worth. Majority of the males prefer Pizza Hut and females have preferred KFC as the

substitute brand. Majority of the males and females have agreed upon spending $6-10 per meal. Majority of the males have agreed upon gathering with friends as the reason to

visit McDonalds, whereas females prefer to have a meal. Both ,males and females have agreed that promotional measures are effective. Males like shakes and females like beverages besides the burgers. Males suggested that more variety should be added to the menu whereas females

suggested that prices should be reduced.

RECOMMENDATIONS

Maintain consistency in the taste and quality of products

Include more items in its product line.(Variety)

Include more veg. options

Include more promotional and advertising measures to increase its sales or to increase its market share.

Recognize the small outlets and give more discounts

Growing health trends among consumers

They should focus more on their promotional strategies like advertising etc.

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