Alfredo B. Corpuz Jr.Feb 2011

10 STEP Marketing Plan for McDonald’s SM Fairview

This 10 Step Marketing Plan is part of the mandatory requirements of Prof. Remigio Joseph De Ungria’s AGSB marketing management class.

The data included in this report are based on publicly available data such as those on internet websites, news, package declarations, public reports.

When appropriate, data are “masked” so as not to create unexpected conflicts.

The reports are posted and linked on slideshare, blogs and Facebook so that there is easier sharing among students from different marketing classes.

Disclaimer

1. McDonald’s SM Fairview’s primary target market are shoppers of the mall

2. Who want to satisfy their hunger fast3. Can choose Jollibee and KFC4. Gap is nearby fast-food restaurants are

always crowded and food is served slower

5. The market size is the average daily foot traffic of 130,000 of the mall

Steps 1 to 5Summary headline of your PTM and market

6. McDonald’s is a fast-food giant that offers standard products worldwide

7. Is priced relatively at par with Jollibee, 2% less than KFC and 15% less than Chowking

8. Brand advertised thru TV, radio, print, events & experiences

9. Conveniently located inside SM Fairview10. Uses location and available space to win

customers

Steps 6 to 10Summary headline of the marketing mix & strategy

1. McDonald’s SM Fairview’s Primary Target Market are shoppers of SM Fairview Ages 17-40; Male and Female;

social class lower B,C and D, single and married

College students and middle-aged parents

Go to malls to shop, relax or meet friends/family

PTM needs to eat in a respectable place

6Reference: Maslow’s Hierarchy of Needs Marketing Management, 11th ed, Philip Kotler

I need to eat

Ability to eat with friends in a fast-food is a status symbol

2. PTM’s needs, wants & demands Shoppers need to satisfy their

physiological needs, the need to belong and gain self-esteem.

They prefer McDonald’s because of reasonable price of products and value meals, the place enjoys a higher class stature of not being lowly branded as “for masses” or “for kids” fast-food.

They demand fast service, good food quality and a convenient place to dine

3a. Direct and indirect products that address my PTM’s NWD Direct: Jollibee, KFC, Chowking

Indirect: Food Court, Food-stalls/carts/kiosks

Variables: Age, price, fast quality service, availability of tables, clean and convenient place to meet friends/classmates, brand name

Example of a 2x2 competitive position map for fast-food

Place/ Age Matrix

0-16 yrs 17-22 yrs 23-49 yrs 50yrs up

Peak and Lean hours

Place vs. Age Matrix as of 2011

ChowkingKFC

McDonald’s

McDonald’s

Jollibee

ChowkingKFC

McDonald’sChowkingKFC

Jollibee Jollibee Jollibee

McDonald’sChowking

KFC

Example of a benefit positioning vs. brand map for fast-food chains

Benefit Positioning vs. Brand Matrix

as of 2011

Functional Benefit Jollibee McDonald's Chowking KFCFast serviceAvailability of tablesLow price meal combinationsQuality foodTaste - Filipino styleClean restroomsCourteous crewsMeal with toys for kids

4. Identify the gap between customers and competition

McDonald’s SM Fairview is the only fast-food with restroom in the mall enough space to accommodate groups of people most of

the time follows global standard of McDonald’s Service Quality

Policy Easy identifiable location to meetMcDonald’s SM Fairview and other fast-foods in the mall

are trying improve space to accommodate groups of people usually classmates / barkada

4. Identify the gap between customers and competition

McDonald’s SM Fairview and other fast-foods in the mall are trying improve space to accommodate groups of people usually classmates / “barkada”

Traditional positioning has been on providing package meals with immovable tables and chairs to dine

4. “Positioning: brand identity from the maker

love ko toi’m lovin’ it

5a. Based on competitor data, fast-food industry is over P 30 Billion in year 2000

http://www.pecc.org/food/papers/2005-2006/Philippines/ppecc-catelo-paper.pdf

Reference:

Estimating inflation at an average of 5% annually, fast-food industry is roughly around P 48 billion

5b. At 5% average annual inflation rate, fast-food industry is roughly around P 48 billion

http://www.oppapers.com/essays/Jollibee-Case/343260?topic

Market Share:Jollibee: 52%McDonalds: 16%

Sales:Jollibee: 19.46 billionMcDonalds: 5.99 billion ((19.46B/.52) x 16%)

http://www.cnbc.com/id/41699042/TABLE_Philippines_Jollibee_Q4_net_income_up_16_pct

6a. Photo of product category

6b. Product DescriptionMcDonald’s around the world uses 100% pure beef for its Hamburger, Cheeseburger, Big Mac, and Quarter Pounder with cheese, with no additives, preservatives or flavor enhancers. Everyday, burger patties are prepared and packaged at McDonald’s approved meat plant. Even before the beef blocks arrive at the plant, McDonald’s supplier conducts several quality checks on every batch. McDonald’s patties are grilled without using fats and oils, seasoned only with salt and pepper for flavoring.

6b. Product Description

They use freshly shredded lettuce in burgers. Lettuce heads contain no additives or preservatives, sourced from the cold mountains of Bukidnon and Baguio, shredded in McDonald’s approved facility

6b. Product Description

It uses pasteurized process American cheese slices, perfectly complementing the flavor of pure beef

6b. Product Description

McDonald’s Chicken McNuggets and Chicken Patties (used for McChicken Sandwich) are made from boneless breast and thigh meat, coated in a tempura batter coating. Chicken McNuggets are shaped to ensure its consistency in weight and coated in a specially seasoned breading. The fried chicken is made from bone-in chicken sourced from reputable suppliers.

6b. Product Description

Only skinless, prime white fish is used in McDonald’s Filet-O-Fish. The fish is sealed and stored in a temperature-controlled environment to lock in its ocean-fresh quality

6b. Product Description

McDonald’s world-famous French Fries are produced from only the best, high-quality potatoes of the Russet Burbank, Russet Rangers and Shepody variety. These potatoes are specially blanched and processed to retain its maximum nutrients, then cooked with fat-free Palm Olein Oil. That explains the fluffy inside, crispy outside freshness of McDonald’s fries

6b. Product Description

Buns are baked locally and delivered fresh regularly to guarantee maximum taste and freshness

6b. Product Description

Sundaes are made from milk, sugar, palm oil and stabilizer – a necessary ingredient to give the smooth creamy taste

6b. Product DescriptionAll eggs have thick whites and round, well-centered, protruded yolks. That is because McDonald’s uses farm-fresh, low-cholesterol, grade-A eggs, each going through the rigorous candling process. These eggs are washed and sanitized to remove dirt, then re-coated with mineral oil to ensure they are clean. These are chilled and are only cracked before cooking to retain its quality and taste

6b. What sets McDonald’s apart from competition

Quality and Safety: This is McDonald’s

promise when it comes to food McDonald’s maintains one of the most stringent food standards in the world. Every product is meticulously prepared, with superior quality ingredients from McDonald’s approved suppliers, so customers are assured that all McDonald’s products are fresh, safe, and delicious

as of 2011

Chicken Meals Jollibee McDonald's

1 piece chicken with rice and soda 70.00 86.00

2 pieces chicken with rice and soda 115.00 135.00

1 piece chicken with spaghetti and soda 103.00 105.00

7. PriceComparison of package meals against Jollibee

as of 2011

Burger Meals Jollibee McDonald's

Champ (Jollibee) / Big Mac (McDonald's) 129.00 130.00

Yum w/ cheese (Jollibee)/Cheeseburger (McDo) 75.00 78.00

Yum (Jollibee) / Burger McDo 60.00 62.00

7. PriceComparison of package meals against Jollibee

7. Price Conclusion McDonald’s and Jollibee’s products are

priced almost similarly except on Chicken meals where McDonald’s are priced 19% higher

Both company uses package meals sold at lower prices to encourage sales

Jollibee offers more package meals and sold at lower prices

8a. McDonald’s modes of promotion (mass)

1. The promotions aspect of McDonald’s covers all typesof 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

8a. McDonald’s modes of promotion (mass)

McDonald’s commercials:

http://www.youtube.com/watch?v=PmrTDZy3f2M

http://www.youtube.com/watch?v=8VdG8eCxors&playnext=1&list=PL62AA6108C2524211

http://www.youtube.com/watch?v=sxlyWieYZsE&feature=related

8a. McDonald’s modes of promotion (mass)

2. Sales promotion

8a. McDonald’s modes of promotion (mass)

3. Public relations

8a. McDonald’s modes of promotion (mass)

4. Events and Experiences

8a. McDonald’s modes of promotion (personal)

5. Direct marketing6.Interactive marketing7.Personal selling8.Word of mouth

8b. Competitor promo

http://www.youtube.com/watch?v=SWEv3gdcbms

Jollibee commercials:http://www.youtube.com/watch?v=3qIDUa-zzLs&feature=related

http://www.youtube.com/watch?v=vNki_ol8lvk

KFC commercial:

9. McDonald’s is a landmark Stores are located in malls, near

schools and offices in cities and provinces

Nationwide 24-hour delivery service

10. What is the generic winning strategy?

Low Cost Producer Supply and Distribution Leverage Differentiation Niche

Sources

http://www.mcdonalds.com.ph/

http://www.pecc.org/food/papers/2005-2006/Philippines/ppecc-catelo-paper.pdf

http://www.oppapers.com/essays/Jollibee-Case/343260?topic

On market share and sales:

On products:

http://www.cnbc.com/id/41699042/TABLE_Philippines_Jollibee_Q4_net_income_up_16_pct

40

SUMMARY

1. McDonald’s SM Fairview’s primary target market are shoppers of the mall

2. Who want to satisfy their hunger fast3. Can choose Jollibee and KFC4. Gap is nearby fast-food restaurants are

always crowded and food is served slower

5. The market size is the average daily foot traffic of 130,000 of the mall

Steps 1 to 5Summary headline of your PTM and market

6. McDonald’s is a fast-food giant that offers standard products worldwide

7. Is priced relatively at par with Jollibee, 2% less than KFC and 15% less than Chowking

8. Brand advertised thru TV, radio, print, events & experiences

9. Conveniently located inside SM Fairview10. Uses location and available space to win

customers

Steps 6 to 10Summary headline of the marketing mix & strategy