MacDonald's Project

8/3/2019 MacDonald's Project

1/39


2/39

Presentation By:

H.Waqar (15)

Irfan Haider (16)

Abdul Haseeb (18)

Mohsin Abbas (22)

Presentation To:

Sir Iqbal Mahmood


3/39


4/39

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.

McDonald in Pakistan:

McDonalds first restaurant opened its doors to the

people of Pakistan in September 1998 in Lahore.

There are now 21 restaurants in four major cities of

Pakistan


5/39

VisionThe worlds best quick service restaurant experience.

Franchise Model

Only 15% of the total number of restaurants areowned by the Company.

The remaining 85% is operated by franchises.


6/39

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.


7/39

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.


8/39

Importance of PLC inMcDonalds


9/39

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.


10/39

McDonalds SWOT Analysis


11/39


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.


12/39


Strengths

Products:

The reputation of the various products each season has

made it possible for the company to attract customers .

Brand Recognition:

McDonalds has gained recognition worldwide. The chain is

present all over the world in more than 122 countries

McDonalds is regarded as a symbol of value and

quality for your money.


13/39


Strengths

Good communication and friendly environment:McDonalds has always ensured a friendly environment to

offer to its customers.

happy meal, toys, gifts & Play places

Birthday party celebration.


14/39


Strengths

Partnership with Coca Cola:

McDonalds and Coca Cola are official global partners. Coca

cola is a big brand name

serving people all over the world with beverages.

Partnership with telecom companies:

McDonalds offered special deals to its clients with up size

meals who are the users of a

particular company such as Warid and Ufone


15/39

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.



16/39

Opportunities


To increase profitability the company has slowed its

expansion of McDonalds restaurants so as to refurbishand change the image of current restaurants and adding

new features such as Internet access.

Breakfast and special noon meals

McCafes:

McDonalds has opened coffee shops by the name of

McCafes in UK. Pakistan can serve as a new potential

market for these cafes.

Dine in Cafes:

McDonalds can open up with small-sized cafes for the

teenagers in their universities and colleges.


17/39


Threats

Foreign as well as local competitors:

In the growing market QSR market of Pakistan

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 Pakistani market.

Foreign currency fluctuation is also another problem

global companies like McDonalds.


18/39

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.


19/39

McDonalds Marketing Mix

Product Price Promotion Place

Functionality

Appearance

Quality

PackagingBrand

Service/Supp

ort

List price

Discounts

Advertising

Personal

selling

Publicrelations

Message

Media

Channel

members

Channel

motivationMarket

coverage

Locations

The following table summarizes the marketing

mix decisions, including a list of some of the

aspects of each of the 4Ps.


20/39

INDUSTRY ANALYSIS

POPULATION: 176,242,949 (est.)

CHILDREN: 37.2% (65,607,612)

ADULTS: 62.8% (110,680,572) CHILDREN EQUITY: 60% (14,643,619)

ADULT EQUITY: 40% (27,802,960)

TOTAL TARGET MARKET: 42,446,579


21/39

Market Share

Mcdonald40%

KFC

30%

AFC

10%

Other

20%

Chart Title


22/39


23/39

BBCB

STAR:

McDonalds is a star. The reason for this is its high market

growth and high market

share in the Pakistani market.

CASHCOW:

KFC and Pizza Hut are the cash cows because of their lowgrowth rate and high market share. During past some years

KFC and Pizza Hut have lost their market growth because of

the fact that they lost their standard war to their competitor i-

e McDonalds.


24/39

QUESTION MARK:

AFC is question mark. Some of thereasons that are responsible for its low

market share and low market growth are

the less expansion strategies being

followed by the company.

Secondly they are not focusing at all on

all the major cities, rather they are only

focused on the target segments of largecities.


25/39

July-12-2005Human Resource Management

Activities Interests Opinions Demographics

Fast food Student,

working;

Adventurous,

Energetic.

Sports,

Entertainment,

Fashion, Music,

Recreation

Influenced by

peer

pressure,

Energetic,

Impulse

buying

Age: 16-24

years old.

Marital status:

Single; Heavy

Users

Ambience Student,

working/self-

made

businessmen;

working on

projects

Entertainment

, Recreation,

Fashion,

Music,

Socialization.

Ambitious,

Future

business and

social issues,

Politics.

Age: 20-35 yrs

old. Marital

status: Single

and Married.

Light to

medium users.


26/39

July-12-2005Human Resource Management

Activities Interests Opinions Demographics

Status

Symbol

Student,

working;

Hanging out,

Adventurous.

Sports,

Entertainment

, Fashion,

Music,

Recreation.

Energetic,

Impulse

buying,

influenced by

peer

pressure

Age: 16-25 yrs

old. Marital

status: Single;

light to

medium

users

Hygiene Working

women/men,

house-wives;

Shopping,

Club

Memberships.

Home,

Recreation,

shopping,

Fashion,

Planned

purchasing,

Authoritarian

, Strong

views,

Politics,Future

business and

social

Issues.

Age: 25-45 yrs

old; Marital

status: Newly

married, Full

Nest; Light

users


27/39

DIVERSIFICATION STRATEGY

McDonald is not only dealing in Fast Food but it also dealing

in Restaurant business as the company name is known almost

all over the world


28/39

Al.Najam Fried Chicken

Introduction

AFC first opened its first restaurant in mid

90''s saman Abad ,Main Market Lahore .it wasthe time when fast food companies were in

booming in Pakistan.

VISION

AFC better for people by ensuring

healthy food


29/39

AFC

AFC adopt Low Cost Strategy

Simple Branches in terms of Atmosphere andLocation.

AFC follow the trend of its competitor.


30/39

Why more selling of MCDonald and

AFC

less1.McDonald has more taste than AFC.

2. McDonald has good quality food than AFC

3. McDonald has more meals than AFCaccording to customer needs.

4. McDonald company has attractive brand

name than AFC


31/39

Why more selling of MCDonald and

AFC

less 6.McDonald company does not change the quality of productwith change in price as compared to AFC.

7. McDonald company provides more incentives and

sponsorship for cu

stomer than AFC

8.McDonald company has more sale discounts/sales offers as

compared to AFC.

9.McDonald company has more creative advertisement than

AFC.

10.McDonald company advertises more on

media than AFC.


32/39

11. McDonald have more attractive packaging

than AFC.

12. McDonald company have more marketshare as compared to AFC.

13. McDonald are easily available in market as

compared to AFC. 14. McDonald distributors work well as

compared to AFC.


33/39

McDonalds has variety of meals as compared

to Afc. It provides large range of burgers, fries,

international meals salads and ice cream. On

the other hand Afc has limited variety ofburgers and fries .According to our opinion,

public want large variety of meals in every

restau

rant therefore they prefer McDonaldover Afc.


34/39

Another tool for capturing the market is attractiveadvertisements and McDonalds is also given

preference by customers due to its advertisements

as compare to Afc.

McDonalds is easily available all over Pakistan. It hasopened numerous branches as compare to Afc. Afc

has limited no. of branches in Pakistan therefore easy

and quick access is also a major factor of preference

of McDonalds over Afc.


35/39

Another tool for capturing the market is attractive

advertisements and McDonalds is also given

preference by customers due to its advertisements

as compare to Afc.


36/39

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.


37/39

Recommendation

Afc is successfully fulfilling customer demand

but it cannot compete McDonalds therefore

heavy investment is still needed to open New

Branches.


38/39

Recommendation

Improve Quality

Focus on Parking Facilities

Provide Entertainment to children

Adding More Items in Menu List( ice creams etc)

Pleasant Environment


39/39

Thank

You

MacDonald's Project

Documents

Transcript of MacDonald's Project