Marketing and Supply chains

Marketing Channel

A set of interdependent organizations that ease the transfer of ownership as products move from producer to business user or consumer.

Supply Chain

The connected chain of all the business entities, both internal and external to the company, that perform or support the logistics function

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MC DONALDS marketing and supply chain

The McDonalds System the Worlds Best QSR experience

World Market Leader in the QSR area (Quick Service Restaurant) Franchise System (72%) System employees: 1.6 million Customers Per Day: 47 million Corporate Strategy:
QSC&V: Quality, Service, Cleanliness and Value Ray Kroc: None of us is as good as all of us Plan To Win -> Successful business revitalization Growth by getting better

Sustainable Supply Chain Vision

Envision of a supply chain that profitably yields high-quality, safe products without supply interruption while leveraging our leadership position to create a net benefit by improving ethical, environmental and economic outcomes. Ethical Environmental Economic

McDonalds Supply Chain

The McDonalds Supply Chain

Purchasing
The 3 legged stool: Corporation Franchisees Suppliers Exclusive, certified facilities Handshake agreements, Trust Long term win-win partnership, risk sharing Strong focus on quality, product specification and environmental audits Decentralized supplier structure, zone consolidation for multinational suppliers

The McDonalds Supply Chain

McDonalds Supply Chain Challenges
Even stronger focus on freshness and quality On-going product innovations Strong customer demand fluctuations based on promotions Order- and inventory management restaurant DC supplier raw material supplier

Vision of Supply Chain Integration

Two future orientated strategies

McD DC :

integrated

One-Stop-Shopping Lean Logistics Solution

Supply Chain Services for McDonalds restaurants

Mc Donald Marketing Channel

McDonald's is constantly striving to add value to the firm for their customers The firm has created efficiency in getting the products to the customers quickly and as fresh as possible Always looking for ways to improve because of the continuous updates on equipment, improvement on serving time thus making McDonald's a more efficient business.

Cont..
Many of McDonalds restaurants are open 24 hours a day So in order to meet demand consistently, Mc D practice a distribution strategy called "intensive distribution", means marking the product available for sale through all possible channels of distribution Intensive distribution is stocking the product in as many outlets as possible

Cont..
McDonald's value chain is unique because of the rare need to depend upon other companies for supplies The firm owns nearly every portion of the value chain including warehouses, delivery trucks, and the real estate where their restaurants built McDonald's established warehouses within a reasonable proximity to all of their restaurants to solve some of the logistical problems it had experienced This, along with owning the warehouses allows the restaurants to get all of the needs met in one shipment and not deal with multiple suppliers

Cont..
The firm's mutual effort with suppliers to develop and improve products and production techniques enables McDonald's to meet the high quality standards The elimination of too many intermediaries, has allowed McDonald's to pass that value along to the customer. Every dollar spent in getting the goods to the customer causes prices to rise (Ferrel et al., 2005)