Université La Sagesse

Marketing Project
Section : B
Fall semester 2019-2020

Names:
Dana Ayash
Rebecca Abou Absi
 Corporation
MacDonald's Copporation is an American Fast Food
Company, founded in 1940 as a restaurant operated by
Richard and Maurice McDonald in San Bernarding California, United states . They
rechristened their business as a hamburger stand, and later turned the company into a
hranchise , with the Golden Arches logo being introduced in 1953 at a location in
Phoenix , Arizona.

MacDonald's is the world’s largest restaurant chain by revenue , serving over 69 million
customers daily in over 100 countries across 37,855 outlets as of 2018 , although
McDonald’s is best known for it’s hamburgers , chese burgers and french fries, they also
feature chicken produds, breakfast items, soft drinks, milkshakes , wraps and desserts.
In the last 2 years the Company has added health food for changing consumer tastes
(example : salads, fish, smoothies, fruits , etc). MacDonald's Corporation revenuer come
from the rent, royalties and Sales in Company-operated restaurants.

According to two reports published in 2018 , McDonald’s the world’s second – largest
private employer with 1.7 million employees ( behind walmart with 2.3 million
employees )
 SWOT ANALYSIS
McDonald's has been outperforming the market this year and recently set a new all
Time high . A SWOT Analysis a SWOT Analysis a look at strengths, weaknesses,
opportunities , and theeats - Can help assess whether the Fast-food giant can keep the
growth on a high-calorie diet

1- Strengths :

• McDonald's has succeshelly rolled out new items like coffees, smoothies, and Angus,
burgers , expanding the range of menu choices

• With a strong product offering ,the company has grown income throughout the
recession notching strong increases in same -store sales.

• Operations are spread around the world, meaning the company is not exposed to just
one currency or economy.

• McDonald's deilver service and strong costumer relationship.

2- Weakness :

• It will be harder and harder to find prime locat to build a set of golden arches. The U.S
is sawith its restaurants, so growth Will have to internationally, posing potential cultual
challenge

• while the annual dividend hilles are lillely to continue the dividend growth rate has
been slowing and will probably to slow or level off .

3-Oppartuniter:

• There are opportunities for new restausents outside the U.S, and Mc Donald's has
been taking adventage of them. China is a great opportunilty for the company as is
much of Asia.

• Menu innovations are limited only by imagination .

• low in telest rates provide cheap captial for growth . In addition to dollar-
denominated debt, Mc Donalld's recently became the first Foreign company to issue
yuan-denominater bonds in Hong Hong.

4-Threats :
• Governments are considering regulations targeting fast foods.

•Mcdonald's competition from strong peers such as recent 11 o'clock Stock pick Yum!
Brand and Burger Uing.

• New products rollouts often have to go head -to head with established players like
starbucks coffee or smoothies.

•Commodity price increases could increase costs while a weak economy limits the
ability to pass the price hilles through to consumers.

STP of McDonald’s
POSITIONING OF MCDONALD’S

SEGMENTATION :

Market segmentation is the process of dividing up mass markets into different groups of
similar needs and wants. The motive behind segmentation is  Get to know the costumer in
a much more detailed manner, gain a competitive advantage and be able to serve the
customers’ needs and wants in a better way. 

McDonald’s uses different types of segmentation to break a bigger market into small
customer groups.

1.  Geographic Segmentation: 

Geographic segmentation divides markets according to geographic criteria. McDonald’s

breaks its business into different geographical segments like

1. America
2. Europe
3. Asia/Pacific, Middle East, and Africa
4. Other Countries ( like Canada, Latin America)
Basis their geographic segmentation, McDonald’s optimizes its Menu and food offerings
to suit the regional tastes and needs.

McAloo Tikki and McVeggie are available in India

Bacon Smokehouse Burger and Quarter pounder (beef) burger are available in the

USA

McArabia Chicken and Beef Burger are available in Arabian countries.

2.  Demographic Segmentation: 

Segmentation according to demography is based on consumer- demographic variables

such as age, income, family size, socio-economic status, etc.

McDonald’s mainly segments the market in below demographies:

1.  Children: McDonald’s offer a lot of goodies, toys, happy meals etc to attract this
younger segment audience.

2. Young Adults (Age group between 18-29): Without much thinking, this segment is

the main source of income for any business, let alone McDonald’s. This market segment
may be having a disposable income which is lower than the average, their consumption
patterns are far much more than old the other market segments.

3. Adults: The third segment is the adults’ segment, in order to target this segment,
McDonald’s tweaked its menu and made its offering less in calories and healthy.

TARGETING :
After segmentation, the company needs to decide on the Targeting strategy. Companies
need to select the market segments that they want to focus on and put in their future
business strategy. The marketer faces a number of important decisions:

 What criteria should be used to evaluate markets?

 How many markets to enter (one, two or more)?
 Which market segments are the most valuable?

Below are three factors that are essential for evaluating a potential market segment.

 Segment size and growth

 Segment structural attractiveness
 Company objectives and resources.

Above mentioned are the few potential market segments that McDonald’s chooses to
target for driving their business strategy, sales and marketing activities.

POSITIONING:

Positioning is the final step in the S-T-P planning approach; Segmentation→ Targeting
→ Positioning; a core framework for developing marketing plans and setting objectives

On finalizing the market segments that the company wants to target, the marketer’s next
step is to design a marketing program (also known as the marketing mix) that will
resonate with the target market or markets.

In-depth knowledge of the key market segment’s like their buying behaviour, their likes,
spending patterns, purchase drivers, media habits, etc are required before devising the
marketing strategy or programs.

Developing customers personas is one step that marketers follow while creating profiles
for customers in their target market segments.
Read more about what is customer persona and how to build it.

Positioning refers to decisions about how to present the offer in a way that resonates with
the target market.

In order to position it’s products correctly in the target markets, McDonald’s uses
segment insights or information about the consumer behaviour that are developed
through market research.

The insights focus on the values, needs and lifestyle of each segment.

Using these insights, McDonald’s create a positioning profile for every product and then
the creative team uses these profiles to create ads targetted to relevant segments as well
as to the general population.

Distibution strategy in
McDonald’s:
McDonald's has implemented a successful distribution strategy in which
other companies should follow. Adopting a marketing strategy that openly
focuses on distribution (place) on location of stores, has helped
make McDonald's the successful business it has become is a definite success
story.

 McDonald's have several franchised set up to cater to the growing need of

number segments.
 McDonald's takeaway and known as McDrive are specially targeted for the
costumer counter service.
 MCAfee is specially designed as in café format targeting the young generation
who want to enjoy an outing with their friends.
Factors influencing customer
behavior
 Cultural factors : McDonald's carefully standardized (formalize) food
according to local tradition and culture.
 Social factors: costumer is highly influenced by member of the family If
buying decision of some product is influenced by children then it will
target kids in their advertisement.
 Personal factors : McDonald's target kids ,students ,adults.. For kids they
offer happy meal with Disney toys. For teenagers some meals are cheap
and there are free WIFI for them to access free internet. In addition to
that for adults they prefer things that are done fast and less time
consuming.
 Psychological factors: McDonald's have always been costumer oriented.
The messages that delivered by the company through advertisement is to
make the costumer feel positive about their product besides building a
brand image.