Project Report:

McDonald

MUHAMMAD UMER YASIN

 CONTENTS
McDonald’s Overview .................................................................................................................... 3
Vision of McDonalds.................................................................................................................... 3
Mission statement of McDonalds ............................................................................................... 4
Our Ambition ............................................................................................................................... 4
Mconald’s founder, Ray Kroc said: ........................................................................................ 5
McDonald's History ........................................................................................................................ 6
McDonald's Pakistan ................................................................................................................... 7
Competitors................................................................................................................................. 8
Social Responsibility ....................................................................................................................... 8
McDonald’s Values ...................................................................................................................... 9
We Place The Customer Experience At the Core Of All We Do............................................... 9
We Are Committed To Our People .......................................................................................... 9
We believe In the McDonald’s System .................................................................................... 9
We Operate Our Business Ethically ......................................................................................... 9
We Give Back To Our Communities....................................................................................... 10
We Grow Our Business Profitably ......................................................................................... 10
We Strive Continuously To Improve ...................................................................................... 10
Products ........................................................................................................................................ 11
McDelivery ................................................................................................................................ 12
Order via Mobile: ................................................................................................................... 12

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 Order via Android App: .......................................................................................................... 12
Order via Website: ................................................................................................................. 12
How does McDelivery™ Work? ............................................................................................. 13
Terms & Conditions ............................................................................................................... 13
CRM ............................................................................................................................................... 14
The CRM strategy of McDonald's.............................................................................................. 14
Types of customers ................................................................................................................ 15
Quick-serve restaurants (QSR):.............................................................................................. 16
Mcdonald’s improves customer satisfaction......................................................................... 16
McDonald’s CRM software Tools........................................................................................... 17
Strong Customer Relationship Can Improve Sales ................................................................ 18
Enhancing customer experience ........................................................................................... 19
Accessibility............................................................................................................................ 19
Mc Donald's also takes into account the specificities of each country: ................................ 19
Diversification of the services:............................................................................................... 20
Freedom within a framework ................................................................................................ 20
Communicate with your employees ......................................................................................... 20
Marketing: .................................................................................................................................... 21
McDonald’s Products (Product Mix) ......................................................................................... 21
Place/Distribution in McDonald’s Marketing Mix ..................................................................... 22
McDonald’s Promotion (Promotional Mix) ............................................................................... 22
McDonald’s Prices and Pricing Strategy.................................................................................... 23
Extra Marketing and advertising ................................................................................................. 24
New smartphone App/ Mobile Sdvertising............................................................................... 24
Social media .............................................................................................................................. 25
Trend analysis............................................................................................................................ 26
Space exploration .................................................................................................................. 26
Children's advertising ............................................................................................................ 27
Sports awards and honors ..................................................................................................... 27
Birthday Parties...................................................................................................................... 27
Open-Door / Book-A-Tour............................................................................................................ 28

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 Open Door Program 2017 ......................................................................................................... 28
Our Kitchen, Your Kitchen...................................................................................................... 28
Tour Information: .................................................................................................................. 28
Terms & Conditions: .............................................................................................................. 29
Open-Door / Virtual-Kitchen-Tour ............................................................................................ 29
OUR KITCHEN, YOUR KITCHEN............................................................................................... 29
Reference:..................................................................................................................................... 30

McDonald’s Overview
The McDonald's Corporation is one of the largest hamburger and fast food retailers across the
globe. Experts calculate that they serve nearly 60 million customers every day, and have around
30,000 restaurants and franchises in more than 100 countries. It is an incredibly successful brand,
and its logos and slogans are recognized across the world.

Vision of McDonalds

"To be the world's best quick service restaurant experience. Being the best
means providing outstanding quality, service, cleanliness, and value, so that we
make every customer in every restaurant smile."

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Mission statement of McDonalds

“To be their customers' favorite place and way to eat with inspired people who
delight each customer with unmatched quality, service, cleanliness and value
every time.”

Our Ambition

Our purpose goes beyond what we sell. We’re using our reach to be a positive force. For our
customers. Our people. Our communities. Our world.

GOOD FOOD: We promote choices. Real ingredients. Great taste. Transparency

GOOD PEOPLE: We create opportunity. Encourage diversity. Offer training. Facilitate teamwork.
Reward achievement.

GOOD NEIGHBOR: We champion happy, healthy kids. Keep families together through Ronald
McDonald House Charities. Commit to reducing our footprint. Using less energy. And recycling
more.

WE’RE PROUD OF EVERYTHING WE DO. And we’re dedicated to doing more. Evolving alongside
our customers. Building memories that last a lifetime. And goodwill that lasts forever.

We select the best of the best vegetables that are continuously monitored for freshness, high
nutrients and safety, to maintain top quality standards. We use regional/local suppliers to ensure
that the freshness and high quality are delivered to you in all our products.

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Mconald’s founder, Ray Kroc said:

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“If you work just for money, you’ll NEVER make it, but if you love what you’re doing and you
always put the customer first, success will be yours.”

“We have an obligation to give something back to the community and it pays dividen ds”

“We have an obligation to give something back to the community and it pays dividends “At
McDonald’s we are moving from awareness to action. Our goal is to have people within our
organization working and living to reach their full potential. At McDonald’s, diversity and
inclusion are parts of our culture- from the crew room to the Board Room. We are working to
achieve this goal every day by creating an environment for everyone to contribute their best.
From the start, we’ve been committed to doing the right thing. And we’ve got the policies,
programs and practices in place that allow us to make a difference because, what’s good for us,
is good for all of us.

We place the customer experience at the core of all we do our customers are the reason for our
existence. We demonstrate our appreciation by providing them with high quality food and
superior service, in clean, welcoming environment, at a great value. Our goal is QSC&V for each
and every customer, each and every time.

McDonald's History

The birth of McDonald's began with Raymond Albert Kroc...

Ray Kroc was the exclusive distributor of a milkshake maker called the Multimixer. Meanwhile,
two brothers, Richard and Maurice McDonald owned and ran a hamburger restaurant in San
Bernardino, California, in the 1950s. Ray Kroc heard how well the McDonald brothers were doing
using his Multimixers to serve their customers. He met up with them and acquired the franchising
right from them to run McDonald's restaurants. A great success story was in the making. In 1955,
Ray Kroc founded the McDonald's Corporation and opened the first restaurant in Des Plaines,
Illinois. In 1961, he bought out the McDonald brothers.

And the rest, as they say, is history. McDonald's grew into the largest restaurant organization in
the world. Today, there are more than 34,000 McDonald's restaurants serving 69 million
customers each day in over 119 countries Ray Kroc died in 1984 but his legacy is very much alive.
His success story continues with McDonald's families of employees, franchi sees and suppliers.

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His commitment, dedication and achievements continue to live on at McDonald's restaurants
across the world.

McDonald's Pakistan
McDonald’s Pakistan history:

McDonald’s first restaurant opened its door to the people of Pakistan in September 1998 in
Lahore. This launch was met with unprecedented enthusiasm from the citizens of Lahore, who
are known for their liveliness, vigor and penchant for quality food. Karachi opened its first
restaurant a week after Lahore. Ever since we opened the doors of our restaurants both in
Karachi & Lahore, we have been proud to provide our customers the same great taste,
outstanding value and superior service that is synonymous with the Golden Arches all over the
world.

There are now 53 restaurants in major cities of Pakistan. (Karachi, Hyderabad, Lahore, Multan,
Faisalabad, Kala Shah Kaku, Sialkot, Gujranwala, Gujrat, Islamabad, Rawalpindi, Jhelum,
Peshawar, Quetta, Sahiwal and Bhera)

Today millions of Pakistanis place their trust in McDonald’s to provide them with food of a very
high standard, quick service and value for money. So next time you walk into one of our
restaurants, please remember, McDonald’s Pakistan is here now, to put a smile on your face,
each and every time you visit us.

McDonald’s is firmly committed to giving back to the community where it operates. We are happy
to become involved because we recognize that organizations have a role to play in helping
communities to work successfully. The contribution we enjoy most is the experience of working
together with others in the community to achieve worthwhile benefits for those who need it
most.

Being a responsible corporate citizen, McDonald’s firmly believes in giving back to the
communities it operates in. We love to provide support and encouragement to the people who
need it the most. All our restaurants contribute to their local community and every year we help
set up and support numerous educational, sporting and charity programs designed to help a wide
range of people.

McDonald's has a proactive approach to charities and sponsorships. We believe these help
inspire and support the people of Pakistan, especially the underprivileged ones, to live a better
life. We are dedicated to delivering great experiences through our ongoing community support
programs.

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Competitors
McDonald’s restaurants compete with international, national, regional, and local food product
retailers. The company competes on the basis of price, convenience, service, menu variety, and
product quality in a highly fragmented global restaurant industry. The company’s primary
competition are Subway, Starbucks, KFC, Burger King, Pizza Hut and Domino etc.

Social Responsibility

Being a responsible corporate citizen, McDonald’s firmly believes in giving back to the
communities it operates in. We love to provide support and encouragement to the people who
need it the most. All our restaurants contribute to their local community and every year we help
set up and support numerous educational, sporting and charity programs designed to help a wide
range of people.

McDonald's has a proactive approach to charities and sponsorships. We believe these help
inspire and support the people of Pakistan, especially the underprivileged ones, to live a better
life. We are dedicated to delivering great experiences through our ongoing community support
programs.

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McDonald’s Values

We Place The Customer Experience At the Core Of All We Do.

Focus: We treat every customer like a celebrity

Our customers are the reason for our existence. We demonstrate our appreciation by providing
them with high quality food and superior service, in a clean, welcoming environment, at great
value. Our goal is outstanding QSC&V for each customer every time.

We Are Committed To Our People

Focus: McDonald’s cares about you.

We provide opportunity, recognize talent, and develop leaders. We believe that a team of well-
trained individuals with diverse background and experience, working together in an environment
that fosters respect and drives high levels of engagement, is essential to our continued success

We believe In the McDonald’s System

Focus: You, the person that runs your restaurant, and the guy that delivers the buns are all
equally important.

McDonald’s business model, depicted by the “three-legged stool” of owner/operators, suppliers,

and company employees, is our foundation, and the balance of interests among the three groups
is key.

We Operate Our Business Ethically

Focus: We give everyone a fair go, and tell it like it is.

Sound ethics is good business. At McDonald’s, we hold ourselves and conduct our business to the
highest possible standards of fairness, honesty, and integrity. We are individually accountable
and collectively responsible.

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We Give Back To Our Communities

Focus: We look after the locals.

We take seriously the responsibilities that come with being a leader. We help our customers build
better communities, support RMHC®, and leverage our size, scope and resources to help make
the world a better place.

We Grow Our Business Profitably

Focus: Sure we're here to make money, but that's what keeps 2,500+ of us in a job.

McDonald’s is publicity traded company. As such work to provide sustained profitable growth for
our shareholders. This requires a continuous focus on our customer and the health of our system.

We Strive Continuously To Improve

Focus: We want to take pole position in every race.

We are learning organization that aims to anticipate and respond to changing customer,
employee and system need through constant evolution and innovation.

We aspire to be our customers’ favorites place and way to eat. To achieve this mission, our
actions as individuals and as a system must reflect our values.

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 Products
McDonald's predominantly sells hamburgers, various types of chicken, chicken sandwiches,
French fries, soft drinks, breakfast items, and desserts. In most markets, McDonald's offers salads
and vegetarian items, wraps and other localized fare. On a seasonal basis, McDonald's offers the
Mc Rib sandwich. Some speculate the seasonality of the Mc Rib adds to its appeal.

Products are offered as either "eat-in" (where the customer opts to eat in the restaurant) or
"take-out" (where the customer opts to take the food for consumption off the premises). "Eat-
in" meals are provided on a plastic tray with a paper insert on the floor of the tray. "Take-out"
meals are usually delivered with the contents enclosed in a distinctive McDonald's -branded
brown paper bag. In both cases, the individual items are wrapped or boxed as appropriate.

Since Steve Easterbrook became CEO of the company, McDonald's has streamlined the menu
which in the United States contained nearly 200 items. The company has also looked to introduce
healthier options, and removed high-fructose corn syrup from hamburger buns. The company
has also removed artificial preservatives from Chicken Mc Nuggets, replacing chicken skin,
safflower oil and citric acid found in Chicken Mc Nuggets with pea starch, rice starc h and
powdered lemon juice.

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McDelivery

Order via Mobile:

Phone: (0300) 8476838 – Mobile and (042) 35752110-32 / 35753229 – Telephone

Phone - Delivery: 111-BIG-MAC OR 1112-44-622

Order via Android App:

Download app:
https://play.google.com/store/apps/details?id=pk.com.mcdelivery&hl=en

Order via Website:

https://www.mcdelivery.com.pk/pk/

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Serving Hours: Mon - Sun: 12:00 pm - 01:00 am

How does McDelivery™ Work?

1. Set your address

2. Choose your food
3. Checkout
4. We’ll deliver to you!

Terms & Conditions

 All orders placed via McDelivery™ Site or through our McDelivery™ hotline service via Tel:
[44076666] shall be made for personal use only. The purchased items shall not be resold
or given to any other party.
 All orders via McDelivery™ Site or through our McDelivery™ hotline service are not
subject to a minimum amount of order. There is a delivery service charge of QR/5 only to
be added on any order of any amount.
 You are required to review your order items in your shopping bag before making final
confirmation. Once you have placed your order via McDelivery™ Site you will not be able
to cancel as the food items are perishable goods and cannot be re-used, the orders cannot
be changed or cancelled. It is strongly advisable to place your orders carefully.
 In order for us to maintain high standards of quality and hygiene, availability of certain
food items may be restricted, at the sole discretion of Al Mana Restaurants & Food L.L.C,
during the periods of equipment maintenance. For quality reasons, we do not deliver Ice
cream cones, McFlurry & Sundae and Al Mana Restaurants & Food L.L.C reserves its
absolute right to restrict delivery of any other item.

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  Delivery times vary in different delivery zone and the timings are subject to change at the
sole discretion of Al Mana Restaurants & Food L.L.C without any prior notice.
 Payment must be in cash at the point of delivery for orders made through McDelivery™
Site and in cash at the point of delivery for orders made by phone through our
McDelivery™ hotline service. We will not change or cancel once an order has been
confirmed. You shall be solely liable for your order confirmation.

CRM
The CRM strategy of McDonald's

McDonald's CRM objectives and strategy

 General strategy
 Interaction with the customer
 Fast-feeding with services?
Where are they particularly good?

 The Brand recognition

 The feels-like-home concept
 Adaptability
Where are they weak?

 Lack of personalization

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  Controversy

McDonald's have developed a price-slashing and low

volumes policy; and comprise the main components of
its competitive advantage. Prices have to be affordable
in order to deliver a variety of meals every day.
McDonald's is not a regular restaurant. They want to
attract the customer as regularly as possible, and thus,
the prices of the meals cannot be too expensive. The
prices are not the same in every country and they can
vary in a country depending on the city or the
restaurant. Moreover, about 70 % of the sales at McDonald's are conducted within four hours.
Hence, they decided to try and change the dietary behavior in order to attract more customers
during the off-hours. For example, if you buy a meal at lunch, you have a discount on a second
meal which is bought before six in the evening.

Types of customers:

There are three kinds of customers at issue here.

Group One: which is those who love McDonald's and are loyal customers.

Group Two: which is those who detest McDonald's and everything it stands for.

Group Three: which is those who are not wild about the chain but will quite willingly go there
when it's the best of weak options, such as when traveling and the choice is between McDonald's
and an entirely unknown local restaurant with a frighteningly empty parking lot.

Say what you will, you members of Group Three, but McDonald's excels at quality control.
Granted, that quality-level lever is set quite low, but it's valid to say that a Quarter Pounder will
taste pretty much the same at any McDonald's.

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Quick-serve restaurants (QSR):

In McDonald's category of fast food known in the business as quick-serve restaurants, usually
referred to as QSR they overwhelmingly dominate in mind share. As a practical matter, that
translates to: When those consumers want fast food, McDonald's is often the first name that
crops up.

If McD's wants to boost its slice of the QSR market which it does it has little room to move,
though it can thank decades of its own advertisements for that. Its better shot would be to
increase how often those consumers find themselves in QSR-friendly situations (more business
travel wouldn't hurt).

Rightly or wrongly — and in my view, it's rightly — McDonald's has been tarred as the worst
offender in the healthy eating category. As that category grows, it will take revenue away from
stores like McDonald's and will give it to those who are perceived to be healthier. This is not a
game of truth, but of perception. The brand that McDonald's has spent generations cultivating is
coming back today to bite it.

Mcdonald’s improves customer satisfaction

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When you serve more than 25 million people each day, leveraging the right CRM solution is
important. McDonald's customer satisfaction contact center was quickly outgrowing their CRM
system. This system lacked the functionality to meet their evolving business needs and it was
time to look for a better solution.

McDonald's was looking for improved functionality for their customer satisfa ction group, as well
as a tool that provided the company with real-time access, via flexible and comprehensive
reporting, to the data that was collected from customers each day.

Their objectives were to...

 Increase data capture with regard to customer feedback and satisfaction

 Provide both McDonald's franchisees and corporate management with real-time access
to customer data
 Integrate the company's extensive and constantly changing restaurant database into a
reliable CRM tool
 Gain robust and actionable reporting capabilities that provide measurable customer
satisfaction results from the national to franchise level

Provide system functionality and flexibility that will support evolving business needs
Implementing ePowerCenter in the customer satisfaction contact center, McDonald's decided to
also deploy it in contact centers supporting Human Resources, Investor Relations, and
Operations. They've also extended its use to support their restaurants in Canada.

EPowerCenter allows McDonald's to track more than 600 types of diverse customer issues
through issue codes. It also enables them to capture other very specific types of information from
customers regarding their experiences at McDonald's restaurants nationwide and in Canada.

With more than 15,000 restaurants just in the U.S., ePowerCenter provides McDonald's the
ability to integrate into their CRM systems. This combination of databases gives them the power
to measure customer satisfaction results both from the national level, and down to the individual
restaurants. Ease and flexibility made ePowerCenter the perfect choice for McDonald's.

McDonald’s CRM software Tools

In order to ensure that there is a consistent customer relationship throughout these many
restaurants, McDonald's uses a method which provides improved data capture, real-time
reporting, and fast issue resolution. This uniformity is down to the utilization of a program called
Power Centre, supplied by Astute Solutions. The software provides a data capture and
information database which can be used to monitor and measure the customer relationship
throughout the brand.

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The Power Centre software brings in data from throughout the company and includes both
positive and negative reviews. Being able to assess res taurants by region, or even individual
restaurants, means that McDonald's can quickly spot potential customer relationship issues and
resolve them before they become a serious problem. Information is passed through the company
quickly, providing key results.

McDonald's started looking for a service provider with a concrete set of goals. They wished to
extend the capacity for data capture from customers and have software which could provide
both McDonald's corporate services and individual franchises with access to real-time customer
information.

They also wanted to be able to integrate their existing database into an effective CRM tool
without the software becoming bloated or manageable. In addition to this’ they also wanted
software which was flexible and functional to provide support for their evolving needs as a
business.

Strong Customer Relationship Can Improve Sales

As a part of its digital transformation McDonald’s is now investing in technology and using digital
innovations to meet its goal of moving from mass marketing to mass personalization. The
company is looking at increasing its one to one interaction with customers and the loyalty
program will act as an enabler for this goal. McDonald’s can use the data to understand customer
behavior and preferences and lure customers back into restaurants if they have been absent for
a while. The company believes that its loyalty program will be the future of its customer
relationship management and can be a significant sales generator for McDonald’s. As the
company works on its turnaround strategy, it should benefit in three major ways through its
loyalty program:

 Build a strong relationship with its customers and have better data to gather insights on
customer behavior and preferences.
 Compete better with players, such as Starbucks and Dunkin Donuts, who already have
loyalty programs running.
 Increase sales and encourage repeat visits.

As per our estimate, the average spend per customer visit at McDonald’s company operated
restaurants will remain steady at slightly below $4.00 over our forecast period. There can be an
upside to our price estimate if the average increases in future.

As McDonald’s works on its turnaround strategy, some of its key initiatives such as All Day
Breakfast have been successful in driving revenue growth. We believe its technology initiatives
and the loyalty program should help the company build stronger relationships with its customers

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and improve its offerings through customer feedback. In the long term, these initiatives should
translate into higher sales for the company.

Enhancing customer experience

According to management, McDonald’s will continue to build the business in 2013 and beyond
by enhancing the customer experience through optimizing its menu, modernizing the customer
experience, and broadening accessibility to its brand. The company remains focused on seizing
the long-term opportunities in the $1 trillion IEO segment by leveraging its competitive
advantages. It has a brand advantage in convenience, menu variety, and value, a resilient
business model, and the experience and alignment throughout the McDonald’s system to
navigate the current competitive environment in the sector.

McDonald’s number-one priority continues to be satisfying its customers’ needs by serving great-
tasting, high-quality food in contemporary restaurants. This focus on its customers is particularly
critical in this uncertain environment, where ongoing volatility continues to negatively impact
consumer sentiment and spending. The company anticipates a continued flat to declining IEO
segment in many of the markets where it operates. Growing market share will remain its focus
in order to attain sustainable and profitable long-term growth.

With respect to customer experience, the company will continue to reimage its building interiors
and exteriors and provide its restaurant teams with the appropriate tools, training, and
technology.

Accessibility

Accessibility-related efforts will include increasing the level and variety of conveniences provided
to its customers through new restaurant openings, extended operating hours, stronger value
platforms, and faster, more accurate service through innovative order taking. With operational
and financial discipline, the company will execute these priorities to increase McDonald’s brand
relevance.

Mc Donald's also takes into account the specificities of each country:

For example, in China, TV has not had the same impact on customers as in France, and they focus
more on newspapers in these countries. The communication at Mc Donald's is running smoothly

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and does not need to be often changed. Of course, they regularly adjust to the new trends and
interests of their customers, but their basis is still the same. b. The feels -like-home concept one
of the new concepts they had developed in the past years is the feels-like-home concept.

Diversification of the services:

It is not only about food in a McDonald's as there are many other services that are added to this.
In some restaurants in the US, you can now also rent DVDs, for instance. b. Interaction with the
customer another important point of the strategy of McDonald's revolves around its interaction
with the customer. The objective of the company is not to know about the customer, but to study
about the market they are in.

Freedom within a framework

We pay special attention to how our customers are alike – and how they are different too. For
that reason, markets and countries have latitude when it comes to menu, marketing, community
involvement and local business management.

Communicate with your employees

Your CRM may be designed to handle large amounts of data, and to facilitate communication
between various groups, but it is your staff that will determine whether or not your goals are
met. Involve your employee in every step of the strategic process. This will help them not only
internalize the objectives, but will also give them personal ownership over the direction that the
company takes. Invested employees will be better able to integrate new policies and
technologies in a way that will benefit everyone involved.

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 Marketing:
McDonald’s global brand is well known. Marketing, promotional and public relations activities
are designed to promote McDonald’s brand and differentiate the Company from competitors .
Marketing and promotional efforts focus on value, quality, food taste, menu choice, nutrition,
convenience and the customer experience.

The company also uses some variations of its marketing mix to suit the local conditions of
markets. For example, McDonald’s promotion focuses on print media in countries where such
media are most popular. The company’s effectiveness in implementing its marketing mix
contributes to the leading performance of the McDonald’s brand and business in the
international fast food restaurant industry.

McDonald’s marketing mix facilitates effective reach to the target market. This marketing mix
supports the company’s leading global industry position, as well as the strength of its brand

McDonald’s Products (Product Mix)

McDonald’s provides mainly food and beverage products. This element of the marketing mix
covers the various organizational outputs (goods and services) that a company provides to its
target customers. McDonald’s product mix has the following main product lines:

 Hamburgers and sandwiches

 Chicken and fish

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  Salads
 Snacks and sides
 Beverages
 Desserts and shakes
 Breakfast/All-day breakfast
 McCafé

McDonald’s is primarily known for its burgers. However, the company expands its product mix
through time. At present, customers can purchase other popular products like chicken and fish,
desserts, and breakfast meals. This element of McDonald’s marketing mix indicates that the firm
innovates new products to attract more customers.

Place/Distribution in McDonald’s Marketing Mix

McDonald’s restaurants are the most prominent places where the company’s products are
distributed. This element of the marketing mix indicates the venues or locations where the firm’s
products are offered. McDonald’s main places for distributing its products are as follows:

 Restaurants
 Kiosks
 Post mates website and app
 McDonald’s mobile app

McDonald’s restaurants are where the company generates most of its sales revenues. Some of
these restaurants also manage kiosks to sell a limited selection of products, such as desserts.
Some kiosks are temporary, as in the cases of kiosks used in seasonal events and professional
sports competitions. In addition, customers can place their orders through the Postmates
website and mobile app. Moreover, the company’s mobile apps for iOS and Android OS let
customers claim special deals and find McDonald’s restaurant locations. This element of the
marketing mix supports McDonald’s intensive growth strategies, especially market penetration.

McDonald’s Promotion (Promotional Mix)

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McDonald’s promotes its products to attract more customers. This element of the marketing mix
defines the approaches used to communicate with the customers. McDonald’s uses the following
tactics in its promotional mix:

 Advertising
 Sales promotions
 Public relations
 Direct selling

McDonald’s advertisements are the most notable among its promotion tactics. The company
uses TV, radio, print media and online media for its advertisements. McDonald’s also uses sales
promotions to draw more customers to its restaurants. For example, the company offers discount
coupons and freebies for certain products. In addition, McDonald’s public relations activities help
promote the business to the target market. For instance, the Ronald McDonald House Charities
and the McDonald’s Global Best of Green environmental program support communities while
boosting the value of the corporate brand. Occasionally, the company uses direct selling, such as
for corporate clientele, local government or community events and parties. In this element of its
marketing mix, McDonald’s emphasizes advertising as its main approach to promote its products.

McDonald’s Prices and Pricing Strategy

McDonald’s pricing strategy involves price bundling combined with psychological pricing. In price
bundling, the company offers meals and other product bundles for a discount. In psychological
pricing, McDonald’s uses prices that appear to be significantly more affordable, such as $__.99
instead of rounding it off to the nearest dollar. This element of McDonald’s marketing mix
highlights the importance of price bundling to encourage customers to buy more products.

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 Extra Marketing and advertising

No longer heavily reliant on traditional TV advertising, McDonalds has tuned into a more holistic
digital strategy to capture the attention of the next generation of customers.

Speaking at Salesforce’s Future of Marketing forum, Salesforce senior marketing consultant to

McDonald’s, Stuart Coleman, spiked how the brand is using its digital marketing technologies to
move well beyond a reliance on TV adverts, mass media and above-the-line advertising.

“In order to target its audience better, the fast food chain is now looking towards platforms
that enable engagement at every step, from advertising to mobile and social” Coleman said.

New smartphone App/ Mobile Advertising

McDonald’s is developing a loyalty program in the U.S. that will be launched later this year or in
early 2017, building further on its new smartphone app. The company’s mobile phone app was
launched late last year and already has 10 million downloads. McDonald’s has lagged behind
competitors (including Starbucks and Dunkin Donuts) in digital initiatives and rewards programs,
but its turnaround initiatives appear to be aimed at addressing these issues. Starbucks already
has more than 11 million members enrolled in its loyalty program and Dunkin Donuts has around
4 million members, indicating that McDonald’s has a lot of catching up to do. The company is

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working to improve the customer experience and provide more personalized service. A rewards
program will increase customer loyalty and repeat sales, along with providing the company with
a direct communication channel with customers. This additionally will generate additional data,
allowing the company to better channel its offering to its consumers. McDonald’s is making a
concerted push right now to revitalize the mobile channel (into the kind of meaningful
engagement and transactional tool that it should be for a brand like McDonald’s). “However, this
isn’t the brand’s first foray in mobile loyalty – loyalty was purportedly a goal of the relatively
underwhelming McD app, released in 2013,” he said. “The loyalty component of that earlier
mobile ordering app was essentially a coupon on a phone – which unsurprisingly was not a
runaway success. “That said, mobile loyalty is not a fad – it’s a fundamental aspect of the way
customers interact with brands like McDonald’s on mobile. Yes, McDonald’s could have done a
better job in releasing a best-in-class loyalty app earlier, but mobile is here to stay for the long
term, so better now than never.”

Social media

However, it would appear that customers are beginning to interact with the brand of their own
accord. In addition to serving an average of 13.5 million customers a day during quarter four of
2011, like many other corporates, McDonald's has turned to social media as a means of reaching
out.

The 'Mein Burger' campaign, run in Germany throughout last year, is a notable example.
Customers were asked to create their ideal burger online from a defined set of ingredients, with
winning entries eventually being sold in outlets across the country. This led to four million hits
on the scheme's micro-site and the casting of 1.5 million online votes.

"Today's consumers want to participate and play a part in the lives of companies," says Woreczek.
"If you don't appreciate this, there's the risk of losing custom - we need to be part of the
conversation. ’Mein Burger' achieved better engagement with customers."

This also goes back to a better anthropological understanding of markets, which can be honed
through on-the-ground partnerships with local franchisees - approximately 80% of McDonald's
restaurants worldwide are operated through franchise agreements and joint ventures.

"The way you talk to people is crucial," he says. "You can provide them with a product like the
Big Mac and offer a service - that's not the problem. But on a local level, it's about the language
you use and the way you interact. The social networking has to be relevant to the market.

"As well as the food, you also need to look in terms of services. Take cashless societies, for
example (approximately 85% of European McDonald's restaurants offer cashless capabilities).

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In France, people use cashless a lot, while Germany they don't tend to pay by card. All
communications need to be not only efficient, but relevant too."

McDonald's has for decades maintained an extensive advertising campaign. In addition to the
usual media (television, radio, and newspaper), the company makes significant use of billboards
and signage, sponsors sporting events ranging from Little League to the FIFA World
Cup and Olympic Games. Television has played a central role in the company's advertising
strategy. To date, McDonald's has used 23 different slogans in United States advertising, as well
as a few other slogans for select countries and regions.

Trend analysis

The McDonald's CRM strategy is very much linked to event-driven marketing, but how does the
company go about uncovering and analyzing contemporary trends?

"We are always following the way people feel about the brand in terms of corporate social
responsibility to make sure they trust us," explains Woreczek. "We have a range of tools so as to
be sure that we are correctly measuring and tracking the perception of the consumers. We talk
to them regularly."

McDonald's deploys scalable back-office software such as Fast Track, in order to follow customer
perception across a range of different dimensions, as well as conducting brand evaluation on a
quarterly basis. While Woreczek is an advocate of following consumer needs "precisely", he is
also aware of the dangers of an over-emphasis on CRM crossing the line between customer
interaction and invasion.

"It is important for us to recognize what our consumers are doing and to know them better," he
says. "However, there is also a question of privacy, which is a big issue related to CRM - the ability
for people to feel safe with no invasion into their actual way of life."

Space exploration
McDonald's and NASA explored an advertising agreement for a planned mission to the
asteroid 449 Hamburg; however, the spacecraft was eventually cancelled.

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Children's advertising
Between entertainment programming and profiles on local athletes and parents, the content mix
is designed to deliver some actual enjoyment for the audience. It will not simply be a billboard
for McDonald’s to sneak in some additional branding and messaging; it will be another outlet—
besides talking with fellow patrons—for customers to turn their restaurant visit from a
convenient "refuel" into an actual experience.

Sports awards and honors

The company makes significant use of billboards and signage, sponsors sporting events ranging
from Little League to the FIFA World Cup and Olympic Games.

McDonald's is the title sponsor of the McDonald's All- Game, all-star basketball games played
each year boys' and girls' high school basketball graduates.

Birthday Parties

Birthday is the most joyous day in any kid’s life and kids want their birthdays to be full of fun &
excitement. That is why we invite you to McDonald’s & celebrate a memorable thematic birthday
party. At McDonald’s, we ensure a hassle free birthday party so that every member of a family
enjoys it to the maximum

Package
 Rs.150/- per kid plus purchase of Happy Meal (Minimum 10 kids)
 Duration: 90 Minutes.

Package includes:

 Birthday Kid Gift

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  Life Size Birthday Card
 Birthday Attendees Gift
 Gift for Games Winner (2 Winners)
Other Birthday Party Attractions

 Theme Invitation Cards

 Theme Party Head Bands
 Theme Cake Plates
 BP Letter and Envelope

Open-Door / Book-A-Tour

Open Door Program 2017

Our Kitchen, Your Kitchen

With pride and transparency, we open our doors and welcome you to tour our kitchen and take
a close look at the quality of our products. The Open Door Program is a chance for you to be
assured that we are committed to serve the best quality products, prepared with compliance to
the highest standards of safety and cleanliness by a qualified team.
High quality is our standard.

Tour Information:
We welcome you to tour our kitchen and learn more about our food quality.

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Terms & Conditions:
 Children must be accompanied by their Parents/Guardians
 Customers are not allowed to eat, drink or smoke during the tour.
 Please be on time.
 Maximum group of 10 people at a time on first come first serve basis.
 Customers are not allowed to take pictures/videos in the premises of McDonald’s kitchen.
 For your own safety, avoid high heels and slippery shoes inside the kitchen premises.
 McDonald’s will not accept personal belongings for safekeeping
 Tours will be conducted at all Nationwide McDonald’s restaurants apart from Mall
restaurants.
 Tours will be confirmed upon signing waiver liability form.
 McDonald’s Pakistan reserves the right to reject any form without assigning any reason.

Please fill in the following. You will be contacted to confirm the date and time of your tour.

https://www.mcdonalds.com.pk/open-door/book-a-tour

Open-Door / Virtual-Kitchen-Tour

Welcome to our Open Door kitchen.

Our kitchen, your kitchen

Hello everyone! We're glad you made it here. Are you curious to know how your favorite meals
are made? Step inside our kitchen, look around and click on the little yellow spots. You'll get the
answers to all your questions.

START EXPLORING:

https://www.mcdonalds.com.pk/open-door/virtual-kitchen-tour

https://www.youtube.com/channel/UC5rQ8k5D8CJ2wvBpOAxYCUA
https://www.youtube.com/channel/UC-WhT04vnj8BzKaQad7hYNw

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 Reference:
https://www.mcdonalds.com.pk/

https://www.mcdelivery.com.pk/

https://www.computerworld.com/article/3048464/retail-it/why-mcdonalds-crm-effort-wont-
work.html

https://www.forbes.com/sites/greatspeculations/2016/03/24/why-mcdonalds-is-working-on-a-
loyalty-program/#3ececf44575a

https://en.wikipedia.org/wiki/Macdonald

http://www.the-chiefexecutive.com/features/featurecrm-customer-relationship-management-
mcdonalds-glocal-brand-strategy-finance/

http://corporate.mcdonalds.com/mcd/country/map.html

http://corporate.mcdonalds.com/content/dam/AboutMcDonalds/Investors/2016%20Annual%2
0Report.pdf

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http://panmore.com/mcdonalds-marketing-mix-4ps-analysis

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