Introduction to Company Mcdonalds

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MKW 1120 Assignment 3Dulanga Tharusha Fernando ID: 257665!

INTRODUCTION TO COMPANY

McDonald's, founded in the United States in 1940, is the world's largest chain of hamburger

fast food restaurants, with more than 36,000 outlets in 119 countries worldwide McDonald!s

ser"es around 6# million customers dail$ McDonald's %rimaril$ sells different t$%es of

burgers, chic&en, french fries, brea&fast items, soft drin&s, mil&sha&es, and desserts n

res%onse to changing consumer tastes, the com%an$ has e(%anded its menu to include salads,fish, wra%s, smoothies, fruit, and seasoned fries )*i&i%edia +016

n 19#0 the McDonalds -or%oration awarded .olden /rches estaurants Sdn hd, a license

to o%erate McDonald's restaurant chains in Mala$sia and 2alan u&it intang, uala um%ur

was chosen as the strategic locations, to o%en its first restaurant Since /%ril 19#+ the$ ha"e

o%ened more than +00 restaurants nationwide )/hmad, 5, /hmad, 5, %rofile, 7 +018

TARGET MARKET

Segmentation:

Variable SubCategor! De"#ri$tion

eha"ioural enefits Sought ualit$ %roduct

rand mage

:aste

;urchase urther McDonald %ro"ides fast and efficient ser"ice which are suitable

for wor&ing adults who are also alwa$s on the go >urthermore, McDonald's +4 hour

o%eration targets on wor&ing adults who wor& late in to the night 3 ids are mainl$ attracted

because of McDonald!s ha%%$ meals which are catered for &ids and the com%an$!s mascot

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)/%%endi( ? 9 McDonald!s are normall$ consumed b$ middle or higher class incomes

consumers )Melnic&, M +016

Signi&i#an#e:

Segment Si@e and .rowthDue to the increase in life e(%ectanc$ )Aai&, +018 and %o%ulation )eim, +018, it can fairl$

be assumed that amount of %eo%le bu$ing from McDonald!s will encounter growth :he

income grou%s as well as social classes can also be e(%ected to grow due to the increase in

education around the world )AB :imes, +014

Segment Structural /ttracti"eness

:hese segments ha"e man$ direct com%etitors which means that McDonald!s will obtain a

small mar&et share unless it mar&ets its %roduct on a grand scale :he attracti"eness of this

segment is reduced b$ the fact that se"eral substitutes do e(ist, although being remote

egardless of the number of com%etitors and substitutes, it is im%ortant to note that there is

no close substitute to McDonald!s

VA'UE DEMANDED (Y TARGET MARKET

• ualit$ of food

• :aste

• -leanliness

• =igh Cualit$ ingredients

• Aumber of menu offerings

• Autritional "alue

• Ser"ice

• ;rice

• -omfortable en"ironment

POSITIONING

Per#e$tual Ma$

)ig* +ualit!

A&&or,able E-$en"i.e

'o/ +ualit!

t is essential for McDonalds to ma&e %erce%tual ma% which will hel% to identif$ the factorsthat differentiate consumers' %erce%tions of %roduct and the %roducts %osition

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n order to %osition itself successfull$, McDonalds needs to figure out what will allow it to

differentiate itself from other com%etitors in the fast food industr$,

McDonalds has %ositioned itself as the mar&et leader in terms of %ricing and its su%reme

Cualit$McDonalds! maor contenders are >- and Subwa$ and as shown it has %ositioned itself

such that the$ sell %roducts at an affordable %rice without com%romising Cualit$

DI00ERENTIATION

Pro,u#t

McDonald's ta&es into account cultural factors in ser"ing Mala$sian consumers :he food

ser"ed is halal and to cater to the s%ecific seasons the$ ser"e the E%ros%erit$ burger 4 for

-hinese Aew Bear

:he main thing to note is that when offering menu items to %otential customers there lies a

"ast arra$ of choices with regard to how and where the$ s%end their mone$ :hereforeMcDonald!s %laces em%hasis on constructing a menu which satisfies customers wants and

needs =owe"er, customers! reCuirements ma$ change o"er time and McDonald!s need to

ada%t to this change

Image

:he brand image is easil$ recogni@able and %ortra$ed as a co%$righted logo through the

"arious banners, %oster and in their ad"ertisements ts image con"e$s a sense of Cualit$ and

customer ser"ice which differentiates itself from other com%etitors es%eciall$ from the

chea%er com%anies

MARKETING MI1

Pro,u#t

:he core %roduct are the McDonald!s burgers and its world class fries %lus other menu

offerings8 :he actual %roduct is made from made from su%erior Cualit$ ingredients and high

grade meat %atties and %ac&aged in a uniCuel$ designed trademar& bo( 6 Moreo"er, the brand

image, Cualit$ and taste hel% in satisf$ing the customer!s reCuirements

McDonald!s %ac&aging? ma&es it easil$ recogni@able amongst other fastFfood com%anies

:his distinct and e$e catching a%%earance ma&es it stand out of the rest /dditionall$, the

%ac&ing is ecoFfriendl$ and child friendl$ showing that it!s intended for its target mar&et /n

augmented %roduct is the +4 hour customer call centres which are dedicated to answering

Cueries and %roblems regarding the %roducts

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/ basic meal at McDonald!s will cost around 11 to +0 m which includes a burger of the

customer!s choice a %ac&et of %rices and a drin& McDonald!s has s%ecific times where the$

dro% down the %rice for selected items to ma&e it chea%er for customers

:he customer!s %erce%tion of "alue is &e$ when deciding the %rice charged / %roduct is

more than a %h$sical itemG it also has %s$chological im%act on the customer

:he danger of using a lower %rice as a mar&eting tool is that the customer ma$ feel that a low %rice indicates lower Cualit$ and so it im%ortant to note the brand and its integrit$ / further

%otentiall$ ad"erse conseCuence of %rice reduction is that com%etitors will easil$ match the

lower %rices resulting in no e(tra demand :his means the %rofit margin will be reduced

without an$ increase in the sales "olume

Pla#e 2Re&er to A$$en,i- 65

n terms of distribution, McDonalds ha"e more than +00 restaurants nationwide Since the

trend of all Mala$sian to sho% in malls most McDonald!s restaurants are built in sho%%ing

malls McDonalds is also o%en in se"eral local gas station such as ;5:ast food

bu$ers see& good %rice deals and %romotions before "isiting a fast food restaurant .enerall$

McDonald's use %romotion methods such as :ele"ision /d"ertisement, Media :e(tF

Aews%a%er and Maga@ine, 5"ents S%onsorshi%s, illboards, .ames and -ontest, ;rice

eduction, -ou%ons, o$alt$ -ard etc Aormall$, their ads attract children rather than adult

consumers McDonalds s%ends a lot for %romotions es%eciall$ their ad"ertisement to gain a

higher mar&et %osition

n addition to the abo"e mentioned the$ also utili@e the social media listed belowI

• >aceboo&

)htt%sIJJwwwfaceboo&comJMcDonalds

• .oogle K

)htt%sIJJwwwgooglecomJKMcDonalds

• nstagram

)htt%sIJJwwwinstagramcomJmcdonaldsJLhlen

• :umblr )mcdonaldstumblrcom

• :witter

)htt%sIJJtwittercomJMcDonaldsJ

• *ebsite

)wwwmcdonaldscomJ

• Bou:ube

)htt%sIJJwww$outubecomJuserJmcdonaldscor%

Pro#e""

/ll McDonald's %roducts, from the selection of ingredients through %re%aration and coo&ing,com%l$ with the most strict Cualit$ standards and food safet$ 5"er$ %rocedure is monitored

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thoroughl$ to ensure that the$ ser"e tast$, to% Cualit$ food /ll McDonald's estaurants

follow )=/--; =a@ard /nal$sis and -ritical -ontrol ;oint and ).M; .ood

Manufacturing ;ractice, monitors food %re%aration locations, %rocesses, en"ironments and

h$giene :hese stringent manufacturing %rocesses ensure that all food %re%ared is high Cualit$

h$gienic and safe McDonald!s ser"ice staff are well groomed and trained to ta&e care on

customer needs, the s%eed and e(cellent ser"ice with high h$giene standards)Mcdonaldscomh&, +016

Since Mala$sia is a Muslim countr$ s%ecial consideration should be gi"en to ma&e the

%roducts under halal standards )oslani, / +013

Peo$le

;eo%le are a &e$ ingredient in customer ser"iceG training and recruiting the right staff is

reCuired to create a com%etiti"e ad"antage -ustomers ma&e decisions and udgments based

on the %eo%le re%resenting McDonald!s :his is because %eo%le are the mostl$ the onl$ %art of

the ser"ice that customers can see and interact with

Staff reCuire a%%ro%riate inter%ersonal relationshi% s&ills and ser"ice &nowledge in order to

deli"er an efficient and Cualit$ ser"ice >urther accreditation that McDonald!s trains their

staff to adhere to %rescribed standards %ractices can be shown

P"!#*i#al E.i,en#e 2re&er a$$en,i- 7 8 95

;h$sical e"idence is about where the ser"ice is being deli"ered from :his element

distinguishes McDonald!s from its com%etitors and can be used to charge a %remium %rice for

a ser"ice and establish a %ositi"e e(%erience

Some as%ects are the ambience, the la$out and branding >or instance a McDonald!s outletwill usuall$ ha"e a huge signage at the entrance to the outlet #

*ord -ountI 1804

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Re&eren#e"

/hmad, 5, /hmad, 5, %rofile, 7 )+018 Mcdonald in Mala$siaI ac&ground McDonalds

in Mala$sia Sha&illab1309bd4?+8blogs%otCa etrie"ed +4 2anuar$ +016, from

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eim, )+018 oomR 5arth's ;o%ulation -ould =it 1+ illion b$ +100 *5D *5D

etrie"ed 9 Ma$ +018, from htt%IJJwwwwiredcomJ+014J09JhumanF%o%ulationF+100J

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homeJwhatma&esmcdonaldsJCuestionsJrunningFtheFbusinessJbusinessFstrateg$JwhatF

areFmcdonaldsFshortFtermFandFlongFtermFgoalsFandFobecti"eshtml

Mcdonaldscomh& )+016 How Do We Process Our Food? :: McDonald's Hong Kong

etrie"ed +? 2anuar$ +016, from htt%IJJwwwmcdonaldscomh&JenJfoodJlearnFmoreF

aboutFmcdonaldsFfoodJhowFmuchFdoF$ouF&nowFaboutFourFfoodJhowFdoFweF%rocessF

ourFfoodhtml

Melnic&, M )+016 >ast >ood!s iggest -ustomerI Aot the ;oor, ut the Middle -lass :M5com :M5com etrie"ed +8 2anuar$ +016, from

htt%IJJhealthlandtimecomJ+011J11J0?JfastFfoodsFbiggestFcustomersFnotFtheF%oorFbutF

theFmiddleFclass

AB :imes )+014 / Sim%le 5CuationI More 5ducation More ncome etrie"ed 9 Ma$

+018, from htt%IJJwwwn$timescomJ+014J09J11JbusinessJeconom$JaFsim%leF

eCuationFmoreFeducationFmoreFincomehtmlLNr0

oslani, / )+013 McDonald’s Malaysia Releases Statement on Por Fat Found in Sauces

!enus"u## etrie"ed +? 2anuar$ +016, from

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*i&i%edia )+016 McDonald's etrie"ed +4 2anuar$ +016, from htt%sIJJenwi&i%ediaorg

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Introduction to Company Mcdonalds

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