Presentation By:

ASFAND EJAZ (415)

M.SOHAIL (408)

M.USMAN (316)

Presentation To:

Prof. AHMAD USMAN

AHMAD ARSLAN (346)

M.FAISAL (534)

M.NAVEED (311)

Introduction
McDonalds 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.

The first McDonald's restaurant was opened in 1954.

It was operated by two brothers Dick and Mac McDonald. 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.

Vision
The worlds best quick service restaurant experience.
To achieve their vision they are focused on three world wide strategies:

World Wide Strategies

1. Be the best employer for people in each community around the world. 2. Deliver optional excellence to customers in each restaurant. 3. Achieve enduring profitable growth by expanding the brand and leveraging the strengths of McDonalds system through innovation and technology.

Welcome to McDonald's Pakistan

McDonalds Pakistan is part of the Lakson Group of Companies, a leading business house in Pakistan. McDonalds first restaurant opened its doors to the people of Pakistan in September 1998 in Lahore. This launch was met with great enthusiasm from the citizens of Lahore, who are known for their liveliness, vigor and desire for quality food. Karachi opened its first restaurant a week after Lahore.

Welcome to McDonald's Pakistan

There are now 21 restaurants in four major cities of Pakistan ( 9 in Karachi, 1 in Hyderabad, 8 in Lahore ,1 in Faisalabad,1 in Islamabad and 1 in rawl). McDonalds is firmly committed to give back to the community where it operates. They are happy to become involved because they recognize that organizations have a role to play in helping communities to work successfully.

McDonalds Business Model

Franchise Model Only 15% of the total number of restaurants are owned by the Company. The remaining 85% is operated by franchises. The company follows a comprehensive framework of training and monitoring of its franchises to ensure that they adhere to the Quality, Service, Cleanliness and Value propositions offered by the company to its customers. and quality across geographies.

McDonalds Business Model

Product Consistency By developing a sophisticated supplier networked operation and distribution system, the company has been able to achieve consistent product taste and quality across geographies. Act like a retailer and think like a brand McDonalds focuses not only on delivering sales for the immediate present, but also protecting its long term brand reputation.

Customer Perception and Customer Expectation

Customer perception is a key factor affecting a products success. McDonalds being an internationally renowned brand brings with it certain expectations for the customers.

Customer Perception and Customer Expectation

Target Segment
A Family with children

What is McDonalds for me?

A treat to children, a fun place to be for the children.

Urban customer on the move

Teenager

Great taste, quick service without affecting the work schedule

Hangout with friends, but keep it affordable.

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 continuous innovation is required.

Importance of PLC in McDonalds

Importance of PLC in McDonalds

To counter these changes McDonalds has continuously 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 product already in the maturity or growth stage. Thus the secret lies in getting profits with different products in the different stages of the PLC.

McDonalds SWOT Analysis

McDonalds SWOT Analysis

Strengths
MacDonalds has a strong global presence with its nearest 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.

McDonalds SWOT Analysis

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.

McDonalds SWOT Analysis

Opportunities
MacDonalds sold its Donators Pizzeria back to its founder in 2003 and discontinued Boston market operations outside of the US.
The company will instead focus on Chipotle Grill which is the companys most successful non MacDonalds branded chain of restaurants. Also to increase profitability the company has slowed its expansion of McDonalds restaurants so as to refurbish and change the image of current restaurants and adding new features such as Internet access.

McDonalds SWOT Analysis

Threats
McDonalds is exposed to changes in the global economy. The companys aggressive international expansion has left it extremely vulnerable to other countries economic slowdown. Foreign currency fluctuation is also another problem global companies like McDonalds.

McDonalds Marketing Mix

Marketers have four tools to use to develop an offering to meet the needs of their targeted customers. Collectively they are called the marketing mix.

1. Product 2. Place 3. Price 4. Promotion

McDonalds Marketing Mix

1. Product
The product , service or program includes both tangible and intangible elements.

The tangible , of course, are those things that the customer can see, touch, feel, taste, or smell .
The intangible include such things as the image of the offering ... which includes the image of the organization making the offering, the psychological aspects of pricing (high price to many customers is equated with high quality and vice versa).

McDonalds Marketing Mix

2. Place
The place is where the customer receives the product, service, or program.

The place of delivery, including all of its resources, is part of what the consumer buys. A place that meets his or her needs better may be worth more.
In setting its strategy, the organization must determine how much the target market is willing to pay for atmosphere and physical resources of place.

McDonalds Marketing Mix

3. Price
The price is what the customer pays. It includes direct and indirect costs as well as opportunity costs. The benefits of the product have to be great enough to warrant the price. Price includes all costs associated with the product, service, or program.

McDonalds Marketing Mix

4. Promotion
Promotion includes all forms of communication you use to communicate the benefits of your offering to the target market(s). The objective is to persuade the customer in such a way that he or she recognizes that your offering is uniquely qualified to meet his or her needs. The term promotion mix is commonly used to refer to the types of communication that are available: advertising, public relations, personal selling, publicity, and sales promotion.

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.

McDonalds Marketing Mix

The marketing mix is apart of the organizations planning process and consists of analyzing the defined: How will you design, package and add value to the product? Product strategies. What pricing strategy is appropriate to use? Price strategies. Where will the firm locate? Place strategies. How will the firm promote its product Promotion strategies.

McDonalds Marketing Mix

The following table summarizes the marketing mix decisions, including a list of some of the aspects of each of the 4Ps.
Product Functionality Appearance Quality Packaging Brand Warranty Service/Supp ort Price List price Discounts Allowances Financing Leasing options Promotion Advertising Personal selling Public relations Message Media Budget Place Channel members Channel motivation Market coverage Locations Logistics Service levels

Survey Questionnaire

Survey Questionnaire
Q. Which is your favorite product at McDonalds?

Others 27% Big Mac Burger 12%

McChicken Burger 19%

French Fries 42%

Survey Questionnaire
Q. Is the product line in McDonalds adequate?
39% 32% 40% 30% 20% 10% 0% Yes No Its okay 29%

Survey Questionnaire
Q. What is the main problem you faced at McDonalds?
43% 24% 9% 3%
Long Queues Wrong Order Bad Music Other No Problems Problems

50% 40% 30% 20% 10% 0%

21%

Survey Questionnaire
Q. Which area do you think needs the most improvement?

No Suggestions Better Music More Space Home Delivery More Variety Low Prices

22% 7% 13% 15% 19% 24% 5% 10% 15% 20% 25%

0%

Survey Questionnaire
Q. What are Unique Selling Proposition of McDonalds?
30% 25% 20% 15% 10% 5% 0%

26%

24% 19% 17% 6% 8% Others

Food

Hygiene Ambience

Quick Service

Location

McDonald's People Promise

Mission Statement: We value you, your growth and your contributions.

Thank You