MCDONALD, S

INTRODUCTION:
Mc Donald’s is the world largest chain of fast food restaurants. It is serving nearly 54 million customers daily McDonalds primarily sells ham burger, cheese burger , chicken product, French fries, break fast items ,soft drinks milks shakes and deserts but recently its also began to offer Salads, wraps and fruits. McDonalds are found in 120 countries of the world.

HISTORY OF McDonald’s:
McDonalds began its business in 1940 with a restaurant opened by sibling DICKS and MAC. MC DONALDS in San Bernardino, CALIFORINA SO DIC and MAC MCDONALS restaurants and Ray Kroc was the founder of the MCDONALDS Corporation. In 1948, they introduced the principles of the modern fast food restaurants. The presents corporation dates its founding to the opening of a franchised restaurants by pray Kroc in des Plaines, illinainois on Aprils 15, 1955, the ninth MCDONALDS restaurants overall Kroc later purchased the MCDONALDS brother equity in the company and led its world wide expansion with the successful expansion of MCDONALDS into many international markets, the company has become a symbol of globalization and spread of The AMERICAN way of life.

McDonald’s VISION:McDonald’s vision is to be our customer favorite place and way to eat with inspired people. Who delight each customer with UN matched quality, service, cleanliness and value every time. We invite you to be the part of this wining team and give yourself an opportunity to people striving to create similes on the faces of millions of people every day.

McDonalds MISSION:
I AM IN LOVE WITH IT.
Mission of MC DONONALD is to provide the customer fast food and beverages with friendly services in clean and convenient location.

PROGRAMME OF MCDONALDS:
Every customer has some expectation from fast food restaurants and the restaurants try to make their environment according to their expectation. MCDONALDS has a programmer of CHAMS, which are the six expectations of costumers from fast food restaurants. C ----- Cleanliness. H ----- Hospitality. A ----- Accuracy. M ---- Maintains of facility. P ---Product quality.

S ----

Speed of services.

McDonald’s in PAKISTAN:
MCDONALDS the worlds best quick service restaurant was introduced in Pakistan in the September 1998 at Lahore and now there are 20 restaurants of MCDONALDS in Pakistan in six major cities with a strong belief in the ray Kroch phrase when you are green you are growing. In Pakistan Mc Donald’s has an aggressive plan to expand its business in all other cities of the Pakistan. And in Pakistan it is focusing to provide friendly and quick services restaurants.

MARKETING MIX FOR MCDONALDS:
I the Pakistan MCDONALDS is try to manage all the four elements (4PS) of the marketing mix those are PRODUCT, PRICE, PLACE, and PROMOTION. MCDONALDS is trying to full fill the needs of 4ps to increase it revenues and and profits and also market share as compare to the other fast restaurants in Pakistan.

ELEMENT OF MARKETING MIX:

1: Product of McDonald’s
At first MCDONALDS original restaurants in San Bernardino California served only Ham burger, milk shakes, and French fries,

But with the passage of time a large no of things are add in the menu of the MCDONALDS. MC Donald’s world wide menu is broad similar to that of united states and the big Mac is a product of the Mc Donald’s which is available in whole world. Mc Donald’s is also providing their product according to the taste and cultural issues of the people of different region. For example, because the Pakistan is a Muslim country and in this country pork is not served due to Muslim dietary laws and the ham burger is called the beef burger.

Product of McDonald’s in whole world
In the world Mc Donald’s is offering different product during Break fast, lunch and dinner timing.

 BURGER.
Such as big Mac is the most important product of Mc Donald’s menu some other important type of burger, are flag ship burger, hamburger and cheese burger etc. Mc Donald’s is also providing chicken, fish and pork sand witches.  CHICKEN MC NUGGETS. They are introduced in 1983, these are small chicken chunks served with a dipping sauce available in 4,6,10,20 pieces they are made by white chicken strips introduced in 1955 for a limited time and offer again in 2003.

Other product.:
• • • • • Fish Mac dipper. Mc Rib. Mc Muffins (for break fast). Biscuits cookies. Beverages.

Mc Donald’s primary soft drinks supplies is coco Cola Company Mc Donald’s is offering also • • • • • • • Cold and hot iced coffee. Hot and iced tea. Hot chocolate. Various juices. Milk shakes. Ice cream. Desserts

Product in Pakistan:
In Pakistan Mc Donald’s is offering different types of burgers nuggets, shapes, ice cream, French fries, platters etc. And in soft drinks coke products. In Pakistan Mc Donald’s is trying to introduce more and more product according to the taste of the people of Pakistan to attract more and more customers.

2:-PRICE
Price is the most important factor of the marketing mix because price counts much in the sale of the product. Mc Donald’s in Pakistan is also trying to adjust its prices according to the prices of other competitors in the fast food field. But the price of Mc Donald’s are little bit high as compare to the other competitors. The reason of high prices of Mc Donald’s is many such as costly location, superior services, high govt taxes etc. But the Mc Donald’s is also trying that its prices are not be to much high that people can not afford it and most of Mc Donald’s product are also for the people of the high gentry on the basis of prices Mc Donald’s is offering different deals such as • • • • Kids deals. Family deals. Lunch deals. Mid Night deals etc.

On these deals Mc Donald’s offer special discounts.

3 PLACEMENTS.
McDonald’s restaurants are present about more than 120 countries and restaurants are increasing continuously. In the Pakistan there are about 20 restaurants of Mc Donald’s.

LOCATION.IN PAKISTAN:

 In the Lahore there are 8 branches of Mc Donald’s at the best location  1 in Faisalabad,  1 in the Rosalinda  1 in Islamabad  1 in Hyderabad  7 branches in the Karachi.  Mc Donald’s is trying open the restaurants at such location where there target customers can reached easily. The target customers of the Mc Donald’s are people of upper-upper class and upper – lower classes so most of branches are in upper class market and areas. Two best location of Mc Donald’s in Lahore are branches of Jail road near the race Course Park and Main Blue ward.

4:PROMOTION.
Promotion is also an important factor of marketing mix. In the world the MCDONALDS is using different sources for its advertisement and promotion. MCDONALDS has for decades maintain an extensive advertising camping in addition to the usual media (Television, Radio, and News paper). The company makes significant use of bill board, and signage, sponsor, sporting events from ranging from little league to the Olympic game. None the less, television has always played a central role in the company’s advertising strategy. MCDONALDS has used 23 different slogans in United States advertisement as well as a few other slogan for select countries and regions.

MCDONALDS is also doing advertisement for attracting the children because they are a main category of there customers and for this purpose they are making play group in each restaurants. This is also a good effort for the promotion. In the Pakistan MCDONALDS use media excessively for the promotion for all the times especially when they introduced some product. For this purpose they give ads in news paper, magazines and internet. They are not emphasizing on too much promotion in Lahore and Islamabad. Because they know that MCDONALDS is famous already in these cities. They are paying more attention on small cities for there promotion.

Marketing Environment
Marketing environment means all the forces and factors out side the marketing that affects the marketing management ability to build a successful relationship with the target customers. When the McDonalds started it business in the Pakistan first they have to consider the market environment of the Pakistan. There are four considerable factors in the marketing environment of the Pakistan. These are product, price, place, and promotion. And other is micro and macro environment factors those have much influence on the marketing process of McDonalds are discuss below,

1: Competitors

The microenvironment factor has a lot of influence on McDonald. because the McDonalds is a fast food restaurant chain and it has a large no of competitors in this field and to tackle its competitors MacDonald’s is trying to understanding the needs and wants of the target customers and providing them the superior services and products.

2: Demographic Environment.
Demographic environment of a country include the study of characteristic such as age, gender, race, occupation and density of the people of that country. So the McDonalds find out and introduced there products in those areas where there products will be readily accepted. They also studied the buying power of people their age level and the intensity of population in different regions. And then McDonalds decided to offer different types of products satisfying each and every customer of fast food industry.

3: Economic Environment
The economic environment means buying power of the people. The fast food industry of Pakistan is increasing day-by-day this encourages McDonalds to start their new outlets in all the major cities of Pakistan. McDonalds also consider the infrastructure of fast food industry of Pakistan before starting its operation. The purchasing power of the individuals was also studied to decide that in which areas they should open their new outlets.

4. Social

and Cultural Atmosphere

When McDonalds started its business in Pakistan nine years ago people of Pakistan were not font of eating fast food and McDonalds was not generating too much revenues at that time but with the passage of time the interest of people has developed towards fast food and it has become a culture specially for the high class to go and eat fast food from expensive restaurants like McDonalds. As McDonalds is an American base company so it is facing many problems in Pakistan in its operation. Some times people show hate against it for this reason. for example , At least 11 people were injured in two explosions in a KFC and a McDonalds outlet in Pakistan’s southern city of Karachi

4. Political and Legal forces
Political conditions of Pakistan are steady and this promotes the foreign investors to come in Pakistan and start their business or expand it. For those companies who are already operating in Pakistan. Government of Pakistan has imposed restriction for McDonalds to provide Halal food in Pakistan and McDonalds has to follow that restriction. Also 15% general sales tax is imposed by government which McDonalds is paying completely.

SEGMENTATION OF McDonald’s:-

The process of dividing the large heterogeneous consumers market into smaller Portion is called as segmentation. In the same way the McDonald’s is also dividing its markets into the smaller Segments. McDonald’s is segmenting its market on the following basis.

• • • •

GEOGRAPHIC SEGMENTS DEMOGRAPHIC SEGMENTS PSYCHOGRAPHIC SEGMENTS BEHAVIORAL SEGMENTS

1. GEOGRAPHIC SEGMENTATION
Dividing the market into different geographic units such as nations, countries, Cities .

Countries:McDonalds is segmenting the consumers of different countries by different ways. McDonald’s is introducing the products according to the needs and wants of the countries and its culture.

NATIONS:-

McDonald’s also take care the nations and their beliefs such PAKISTAN is the Muslims countries so the are introducing only halal foods here. In INDIA McDonald’s are not using the meet of cow. Because this is against there beliefs.

CLIMATE:McDonald’s also take care the climate of different regions while segmentation. For example:-in those countries where the climate is hot, they introduced the cold Items such as ICE_CREAMS, SHAKS, and JUICES more like in the PAKISTAN. And the countries where the climate is cold they introduced more teas and coffees Etc.

2: DEMOGRAPHICAL SEGMENTATION:Its mean dividing the market on the basis of variable such as age, gender, Family size income, race generation etc.

AGE:McDonalds is segmenting the customers especially on the basis of the age. They have different products for the different age groups. Such as for the children’s they have many special items and play areas those

Attract them more.

FAMILY SIZE:The also offers the deals for the different family size and offer them discount on buying products in bulk quantity.

EDUCATION:Education enhance awareness so they targeting the educated people as shown in their advertisement.

GENDER:McDonald’s also segmented the market on the basis of gender on the basis of some factors.

RACE:Mc also segmented their customers on the basis of race such as ASIAN, HISPANICS BLACK and WHITE, and provides products according to their Taste.

3:PSYCHOGRAPHIC SEGMENTATION.
Its mean dividing the markets on the basis of social class, life style etc.

SOCIAL CLASS:MC in PAKISTAN is only segmenting their market for the upper class, Lower upper class and upper middle class

LIFE STYLE:The people who are health conscious McDonalds also target them as walls Satisfying your healthy life.

4:BEHAVIORAL SEGMENTATION:Its mean dividing the market on the basis of the occasions, benefits, user status, User Rate, loyalty status etc.

OCCASIONS:McDonald’s also segment the market on the occasions such as VALENTINE DAY, MOTHER DAY, and their sales is increases on these occasions.

BRAND LOYALITY:
In the world there are so many people who love with the McDonalds. and they are loyal with the brand name of McDonalds

TARGET MARKETING:-

The selection of consumer in the market is known as target marketing. Marketing mix is design according to target market.

1. Target customers of McDonald’s
In Pakistan McDonalds targeting the people belong upper and upper middle class of society. People who prefer fast foods like youngsters. Youngster also prefers Mc, because of its cool atmosphere and special location. McDonald’s also targeting the old people who want low fats in the food. It encourages the family to visit Mc as all type of foods. McDonald’s is also targeting the foreigners living in PAKISTAN, Especially in the capital that is Islamabad, Lahore Karachi, Children are also included in the target market of Mc. As we see that children of this era are more interested of eating the fast food and also influence their parents to go and have some food from McDonald’s.

MARKETING STRATEGIES OF MCDONALDS AND SOCIETAL MARKETING
McDonalds in implementing different types of marketing strategies including: Their main strategy is to attract few but profitable customers. They prefer to bundle up their commodities in the form of meals. They arrange many social programs like anti pollution, Teacher Convention conference etc.

They contribute a huge amount of their income in donation at catastrophes like Earth Quake in Pakistan. They are running Hearing and Speech Programmed under which they train these people and offer jobs to them. They try to provide their products in environment friendly packaging. Packaging is a fundamental part of serving our customers. Our U.S. menu involves 330 unique consumer package designs, with 83 percent of the packaging made of paper or some other wood-fiber material. McDonald’s has an opportunity to provide leadership in conserving natural resources by minimizing the environmental impacts of our packaging. McDonald’s has a number of strategies to ensure environmentally sound operations at there restaurants, including reuse and recycling, managing electrical energy and effective water management Since 1990, McDonalds implemented programs to purchase goods made from recycled materials. McDonald’s has begun a bulk cooking oil delivery system using reusable containers, which eliminates more than 1,500 pounds of packaging waste per restaurant per year. McDonalds keep restaurant owner/operators and managers informed about better ways of managing electrical energy. McDonalds is also doing much for the betterment of there employers . In Pakistan, McDonalds says that our employers are our most important asset. We provide the best employment experience for our employees in order for McDonalds Pakistan to achieve our goal of providing our valued customers with the world’s best quick-service restaurant experience. We strive to recruit the best, hire the best, and provide the best place to work. Children’s are also the part of our society so McDonalds is also doing much for the children such as each outlet of the McDonalds has play land for the children. So we can say that all these the marketing strategies as

well as the social responsibilities of the McDonalds.

SWOT ANALYSIS

SWOT analysis is to identify and analyze the strengths and weaknesses of a organization, as well as the opportunities and treats revealed by the information, the organization have gathered on the external environment. In the field of fast food restaurants kick is the major competitor of the McDonalds. So we do the swt analysis of both the restaurants.

Swot analyses of McDonaldas:
Their main strength lies in the taste of their products and their great service. As for the last 9 years they stand as the market leaders in the fast food

Strengths
Excellent location :
One of the biggest strength of McDonald is its excellent location in all over the world as well as in Pakistan. In Lahore is located in the main blue ward gluer on jail road, in fortress stadium etc.

Secret Recipe
Only a handful of people know that multi-million dollar recipe (and they've signed strict confidentiality contracts). This secret recipe is strength for McDonald

Standardized Cooking Procedures

McDonalds has standardized cooking procedures which are according to the principles of health and proper cleanness is maintained while cooking. And cooks haired by the McDonalds are highly qualified and perfect in there cooking.

Weakness
Higher price
One weakness of McDonald As compared to other fast foods working in Pakistan is their high prices. Like, they have high prices of their burgers as compared to the other fast food restaurant such as AFC,DFC even though kfc.

Drive through
McDonalds do not have a drive through in its each restaurant. But they are doing best to overcome on their weakness of drive through.

Opportunities
Brand Name:
They have the opportunity of their brand name McDonald as is a trademark for the fast food in all over the world. so the people of the Pakistan are also attracted to word the McDonalds

Play areas

McDonalds in all over the world have play areas for the children. And McDonalds also have books library’s for the children. So the children are attracted toward the McDonalds because of these reasons.

Threats
Competitors :
It has main threat of kfc as its competitor. And it is trying to get the more market share and beat kfc especially Pakistan. In January 2003 its first quarterly loss of $343.8m in more than 40 years of business. This report aims to investigate the reasons behind Mc Donald’s loss was the very good performance by kfc using marketing theory and analysis Concluding with recommendations for improvement

Social and cultural threat
It has also the social and cultural threat in Pakistan as mostly the people are against foreign countries and they use to make strikes in front Mc Donald’s of to stop their business and leave Pakistan as they think that all the revenues generated by Mc Donald’s are going to foreign countries and it has a bad impact on Pakistani economy.

Swot analysis of direct competitor of McDonalds which is KFC

KFC Today
Today, KFC is the world’s largest and most well known chicken restaurant chain, with more than 10,000 locations worldwide, in 78 countries. KFC and its franchises employ more than 20,000 people worldwide. KFC serves more than 4.5 billion of chicken annually, to approximately 7 million customers a day, world

i. KFC in Pakistan
South Region including Karachi and Hyderabad (interior Sindh). North Region including Lahore, Rawalpindi and Islamabad (Punjab). They have a total of 44 outlets working in Pakistan. 1 outlet is in Islamabad, 2 in Rawalpindi,21 in Karachi, 11 in Lahore and other in others city of Pakistan like Faisalabad, Hyderabad, Gujranwala, Sialkot, Multan, Peshawar and Jhelum.

SWOT ANALYSIS
Strength Mass Appeal
Their main strength lies in the mass appeal of their products and their great service. As for the last seven years they stand as the market leaders in the fast food category after McDonalds.

Excellent location
One of the biggest strength of KFC is its excellent location. In Lahore is located in the barkat market, which is the best market place in Lahore.

Well-designed system
With the 66 years of experience and confirmation, now KFC has the most efficient and effective system worldwide of chain of restaurants.

Weakness Higher price
One weakness of KFC as compared to other fast foods working in Pakistan is their high prices. Like, they have high prices of their burgers as compared to the Dixie and Papa Sells.

Drive through
KFC do not have a drive through in its each restaurant. But they are doing best to overcome on their weakness of drive through.

Play areas
KFC also do not have a play area in their each out let

Opportunities Brand Name
They have the opportunity of their brand name as KFC is a trademark for fried chicken and is known by many people of Pakistan as a fast food of fried chicken especially the zinger ch

Threats
Competitors

It has main threat of McDonalds as its competitor. And it is trying to get the largest market share and beat McDonalds especially in Pakistan.

Social and cultural threat
It has also the social and cultural threat in Pakistan as mostly the people are against America and they use to make strikes in front of KFC to stop their business and leave Pakistan as they think that all the revenues generated by KFC are going to America and it has a bad impact on Pakistani economy.

BCG MATRIX:

McDonald’s

High MARKRT SHARE Low

Low

High MARKET GROWT

STAR…………………………………………………MCDONALDS CASH COW …………………………………… SUBWAY ?........................................................................................... AFC

McDonalds in the Pakistan has high growth rate and high market share .so in the Pakistan it lies in the star in the BCG matrix. While in the Pakistan its largest competitor is KFC which also has high market share and high growth rate in the Pakistan. So KFC also lie in star. we can also see different products of the McDonalds in the BCG matrix where they lie Such as we see some important products of McDonalds in Pakistan. MAC BURGERS ……………………………………………… STAR MAC AREBIA …………………………………………………….. ? ICE CREAMS ………………………………………………CASH COW DESSERTS ……………………………………………………… DOG

PRODUCT LIFE CYLE

The product life cycle means the course of product, its sales and profits over its life time . it involves five distinct stages: • • • • Product development stage Growth Maturity Decline

If we see the McDonalds in the product life cycle then it will lie in the growth regions for the Pakistan. Because in the Pakistan McDonalds was introduced just 9 years ago, and now its sale is increasing rapidly but average cost is also high. McDonalds profit in the Pakistan is not much high because it is yet trying to get maximum market shares. and now McDonalds is offering such products those have distinct features and it is also trying to increase the no of distributing outlets. So because of these bases we can say that McDonalds lie in the growth region of the PLC.

Distribution channel of McDonalds in Pakistan
Distribution channel is a set of interdependent organization involved in the process of making a product or service available for use or consumption by the consumer or business user. McDonalds in the Pakistan is using the vertical marketing system as well as in whole world. In this type of the distribution same organization manufacture the products distribute them and sale them. McDonalds is also doing same thing.

Vertical marketing system manufacture wholesaler retailer consumer

PROBLEMS FACING McDonald’s IN PAKISTAN:There are also many problems for Mc in PAKISTAN, One of the major problems for McDonald’s is the affordability of their products for the people of PAKISTAN. As PAKISTAN is the developing country so the average income of people is very low, so a large number of people cannot afford to visit McDonald’s. The second problem for Mc is that they represent the western taste or style of food which is totally opposite to the traditional food of PAKISTAN. So Mc attracts a very low percentage of people to visit. Thirdly the factor of hesitation and lack of confidence also count as a problem of Mc . People feel shy and hesitation to visit MC. In PAKISTAN Mc also facing the problems of place. In PAKISTAN Mc branches are in few big cities so, the people of small cities are not aware about the Mc. McDonald’s is also use it’s promotion only in the big cities and in specific areas for the specific people.

SOLUTIONS:-

They shuld try to reduce the prices of there products because most of the people of PAKISTAN cannot afford the products of McDonald’s.

• •

They should also try to introduce the product according to the tast of the people of PAKISTAN They should try to focus the people of whole country while advertising and try to increase the locations in Pakistan.

DEDICATION
We would like to dedicate all of our efforts to complete this report to our beloved Parents respected teacher Rana Adeel Abaad.

Acknowledgement:We would like to say thanks to our teacher Rana Adeel Abaad for his guidance and his precious thoughts which helps us to complete this work in a proper and efficient manner

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Table of Contents

• INTRODUCTION • HISTORY OF McDonald’s • VISION • McDonald’s MISSION • McDonald’s IN PAKISTAN • MARKETING MIX • MARKETING ENVIRONMENT • SEGMENTATION • MARKETING STRATEGIES • SWOT ANALYSIS • BCG MATRIX • PRODUCT LIFE CYCLE

• SOCIAL MARKETING OF McDonald’s

PROBLEMS AND SOLUTIONS