One world, One Burger - McDonald s

TOPIC: MARKETING TOOLS AT MCDONALDS

I WOULD LIKE TO THANK MY PROJECT GUIDES, ALL THE FACULTY MEMBERS, And THEIR GUIDANCE & SUPPORT IN COMPLETING MY PROJECT OF MC DONALD.

Description:

Established in California during the 1940s by two brothers, the McDonalds restaurant became a popular teen hangout in the first flush of post-war affluence. To feed these youthful bodies, the brothers reduced the menu to the perennial favourite hamburgers, applied assembly line techniques to food production and expanded to four restaurants by 1953. Taking note of the brothers success, in 1955, Entrepreneur Ray Kroc bought the right to franchise the McDonalds System.

OBJECTIVES:
1. McDonalds vision is to be the worlds best quick service restaurants experience. 2. McDonalds is committed to maintaining and developing the best food products in the quick service restaurant market. 3. In order to deliver this, the company has made a number of commitments to food safety and nutrition.

HOW DOES MCDONALD S MAKE A PROFIT?

McDonald s has two sources of profit: Sales made by company-owned restaurants Rental and royalty income from franchised restaurants.

SWOT ANALYSIS & THE COMPETITORS

Strengths:
Products:
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.85 only, containing a beef burger along with a drink.

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.

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.

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:
McDonalds has gained recognition worldwide. The chain is present all over the world in more than 122 countries.

 Weaknesses:
Product Variety:
McDonalds needs to develop more and more products to stay in the competition. After the opening of international QSRs in India, 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 India, 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 Indian 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:

Now in India 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.

McCafes:
McDonalds has opened coffee shops by the name of McCafes in UK. India 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 diet meals could be a way out of this situation. Until now, McDonalds in India has nothing to offer to health conscious customers.

Foreign as well as local competitors:

In the growing market QSR market of India 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 Indian market.

Changing customer styles:

Indian 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 Indian consumer styles.

MAJOR COMPETITORS: 1) Pizza hut 2) KFC 3) SUBWAY

ADVERTISING COMPAIGNS & SLOGANS :

McDonald's is Your Kind of Place (1967) You Deserve a Break Today (1971) We Do it All for You (1975) You, You're The One (1976) Nobody Can Do It Like McDonald's Can (1979) Renewed: You Deserve a Break Today (1980 & 1981) Nobody Makes Your Day Like McDonald's Can (1981) McDonald's and You (1983) It's a Good Time for the Great Taste of McDonald's (1984) Good Time, Great Taste, That's Why This is My Place (1988) Did Somebody Say McDonald's (1997) We Love to See You Smile (2000) There's a little McDonald's in Everyone (2001) - Canada Only I m lovin' it (2003)

Range of marketing strategy options (4*4 Ps) (Positioning/Branding) y y y y Product Price Promotion Place

The four Ps The marketing mix is the combination of price, product, promotion and place that successfully markets a product to focus of McDonalds. I. Product The product must be what the customer wants and has to be changed as tastes change. 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 iii. Promotions The promotions aspect of the marketing mix covers all types of marketing communications. 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.

Marketing objectives

The marketing strategy will be planned to meet clear objectives, with intermediate targets showing progress along the way. The marketing strategy is the tool that lays out how marketing objectives will be achieved. Objectives communicate what marketers want to achieve, guide marketing actions and are used to measure how well a plan is working. They can be related to market share, sales, reaching the target audience and creating awareness in the marketplace. Long-term objectives are broken down into shorter-term measurable targets, which McDonalds uses as milestones along the way. Results can be analyzed regularly to see whether objectives are being met. This type of feedback allows the company to change plans and allows flexibility. Once marketing objectives have been established, the next stage is to define how they will be achieved. The marketing strategy is the statement of how objectives will be delivered. It explains what marketing actions and resources will be used and how they will work together.

TODAY, MCDONALDS HAS GROWN TO 25,000 RESTAURANTS IN ABOUT 120 COUNTRIES SERVING 50 MILLION CUSTOMERS DAILY. BECOMING THE LARGEST FAST FOOD CHAIN IN ALL OVER THE WORLD