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[MCDONALD]
[MCDONALD AS AN INTERNATIONAL COMPANY]
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SUBMITTED BY:

RAMSHA ZAFAR (7771)

MAHJABEEN FATIMA (6370)

FAKIHA ASAD (7136)

HASAN IMRAN DURANI (13126)

SHAHZAIB SHAKEEL (5026)

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Table of Contents
MEMORANDUM:................................................................................................................................4
MCDONALD’S PAKISTAN................................................................................................................4
COMPANY PROFILE:...............................................................................................................................4
COUNTRY OVERVIEW:.....................................................................................................................5
MCDONALD’S MISSION STATEMENT:..........................................................................................5
VISION STATEMENT:........................................................................................................................5
CORE VALUES....................................................................................................................................6
MCDONALD'S ACCOMPLISHMENTS.............................................................................................6
SWOT ANALYSIS OF MCDONALD’S..............................................................................................7
STRENGTH:.....................................................................................................................................7
PLACE:.........................................................................................................................................7
STAFF:..........................................................................................................................................7
QUICK SERVICE:........................................................................................................................7
CHILDREN TARGETING:..........................................................................................................7
TASTE DEVEOPLMENT:...........................................................................................................7
WEAKNESSES:...................................................................................................................................7
LIMITED FOOD MENU:.................................................................................................................7
LOW DIFFERENTIATION:.............................................................................................................7
OPPORTUNITIES:...........................................................................................................................7
INCREASING DEMAND FOR HEALTHIER FOOD:................................................................7
INNOVATION:.............................................................................................................................7
NEW TECHNOLOGY:.................................................................................................................7
THREATS:........................................................................................................................................8
DOLLAR RATE:..........................................................................................................................8
COMPETITOR:............................................................................................................................8
PRICE:..........................................................................................................................................8
NEW PRODUCT:.........................................................................................................................8
COMPETITORS OF McDonald:..........................................................................................................8
DIRECT COMPETITORS:...............................................................................................................8
BURGER KING:...............................................................................................................................8
SUBWAY:........................................................................................................................................8
KFC...................................................................................................................................................8
INDIRECT COMPETITOR:.................................................................................................................9
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BURGER O CLOCK:.............................................................................................................................9
BURGER LAB:.....................................................................................................................................9
BOVI CHICK:.......................................................................................................................................9
HOUSE OF BURGERS:.........................................................................................................................9
CORE COMPETENCY OF McDonald:...................................................................................................9
AVAILABILITY:....................................................................................................................................9
CUSTOMER SERVICE:.........................................................................................................................9
LOCATION:...................................................................................................................................10
STRATEGIC BUSINESS UNIT OF MCDONALD:..........................................................................10
STRATEGIC ALLIES:...............................................................................................................................10
PUSH AND PULL STRATEGY:....................................................................................................10
1. HANDS FULL............................................................................................................................10
2. SEARCH IT................................................................................................................................11
3. BEVIN BURGER’S FACEBOOK LIVE....................................................................................11
4. THE BIG MAC’S 50TH BIRTHDAY........................................................................................11
5. GOOD TO KNOW......................................................................................................................11
6. TRACK MY MACCA APP........................................................................................................12
7. PAY WITH LOVIN’...................................................................................................................12
8. KICK THE TRASH.....................................................................................................................12
9. ASK MCDONALD’S..................................................................................................................12
10. Interactive Happy Meal Play Zones...........................................................................................12
Marketing research for host company:.................................................................................................13
Social classes for Product and services................................................................................................14
SERVICES:.........................................................................................................................................15
Competitors Pricing Strategy:..............................................................................................................17
McDonald’s Prices and Pricing Strategies:..........................................................................................17
Distribution Channel:......................................................................................................................18
CATEGORY, EXTENSION, BRAND AND PRODUCT LINE:.......................................................19
PRODUCT MARKET EXPANSION DIAGRAM:.............................................................................19
PRODUCT DEVELOPMENT:.......................................................................................................19
MARKET PENETRATION:...........................................................................................................20
MARKET DEVELOPMENT:.........................................................................................................20
DIVERSIFICATION:......................................................................................................................20
MARKETING CHANNEL:................................................................................................................20
KIDS, FAMILY AND STUDENTS................................................................................................20
CONVENIENCE AND LIFESTYLE..............................................................................................21
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FREEDOM WITHIN A FRAMEWORK............................................................................................22

ADVERTISING:.................................................................................................................................22
ATTRACTIVE MENUS FOR THE CHILDREN.........................................................................23
MCDONALD'S ADVERTISES TOWARDS CHILDREN & FAMILIES..........................................23
E-COMMERCE:.................................................................................................................................23
MARKETING CHANNELS...............................................................................................................23
MARKETING CHANNELS OF MCDONALD'S:.............................................................................23
CROSS CULTURE ISSUES:..............................................................................................................25
Ethical Advertisements of McDonald Company.........................................................................27
Unethical Advertisement of McDonald Company.......................................................................28
Pest analysis of McDonalds.............................................................................................................28
POLITICAL FACTORS.........................................................................................................................28
ENVIRONMENTAL FACTORS............................................................................................................29
SOCIAL FACTORS..............................................................................................................................29
TECHNOLOGICAL FACTORS..............................................................................................................29
IMPORT AND EXPORT POLICY OF MCDONALD’S:................................................................................30
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MEMORANDUM:
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 71 restaurants in 24 major cities of Pakistan.

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.

MCDONALD’S PAKISTAN

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.

COMPANY PROFILE:

The first McDonald’s restaurant was started in 1948 by brothers Maurice (“Mac”) and
Richard McDonald in San Bernardino, California. They bought appliances for their small
hamburger restaurant from salesman Ray Kroc, who was intrigued by their need for eight
malt and shake mixers however In 1961, Kroc bought the McDonald brothers out for $2.7
million. He now owned the exclusive brand name rights and operation of all McDonald's
locations.
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McDonald’s (MCD) is a fast food, limited service restaurant with more than 35,000
restaurants in over 100 countries. It employs more than four million people. McDonald’s
serves 70 million customers per day, which is greater than the population of France.
According to IBISWorld, in 2014, McDonald’s had the la…

COUNTRY OVERVIEW:
On the basis of approximate calculation, the fast-food business in Pakistan is leading rapidly.
The trend of fast food in Pakistan and eating habits of fast food is almost increasing more
than twenty-one percent yearly that means fast food business in Pakistan is rising more than
twenty percent on a yearly basis which makes it one of the fastest-growing business just not
only in Pakistan but also in international level.
Due to an increase in the consumption of fast food, almost a total of 17% of the employment
of the country totally dependent on the fast-food industry — more than 1000 large scale food
processors enterprises in Pakistan. Pakistan holds the 18th largest market when it comes to
food and fast food-related business. Almost 75%

MCDONALD’S MISSION STATEMENT:

McDonald’s mission statement is “to be our customers’ favourite place and way to eat and
drink.” It is obvious the customer forms the main subject of this mission statement.
McDonald’s has adjusted this mission statement to reflect on how important the customer is.
In fact, this focus shows that the company looks to not only satisfy but also exceed the
demands and needs of the clients. The following are the main components of this mission
statement:

1. Improving health. McDonald’s understands the sensitivity of food when it

comes to the health of its customers. With this in mind, the company has adopted a strategy
that prioritizes the freshness of the food served to its customers. That is why the policy of the
company keeps changing

VISION STATEMENT:
McDonald’s vision statement is “to move with velocity to drive profitable growth and
become an even better McDonald’s serving more customers delicious food each day around
the world.” The statement reveals the growth potential and development trajectory of the
company. It retains the previous purpose of the company stated in the latter vision stated
which is to progressively grow while offering the customer the best experience. However, the
current statement is much more specific. It has the outlined elements:

1. Move to drive growth. In this element, the company shows its ambition to
grow into a major corporation. Such a purpose can only be achieved by the company being
more strategic while expanding and diversifying its operations. To advance this aspect,
McDonald’s has been venturing into new areas while maintaining its business brand to ensure
the company becomes more profitable.
2. Better at serving customers. McDonald’s has never been contented with the
quality it has. With its team of experts, the company is always on the lookout for new
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approaches to make its services a notch higher. Moreover, the gradual improvement of its
marketing strategies and incorporation of experts in addition to progressive training in the
company adds to the projected perfections. This desire has seen the company set standards in
the food industry sector making it the biggest and a leader as well.
3. Around the world. This component relates to the first one because the
presence of McDonald’s in every global location adds to the growth and profitability of the
company. Recently, the company has shown its persistence in conquering the industry
through its progressive setting up of new joints across the globe.

CORE VALUES
McDonald’s core values comprise “we place the customer experience at the core of all we do,
we are committed to our people, we believe in the McDonald’s system, we operate our
business ethically, we give back to our communities, we grow our business profitably, and
we strive continually to improve.” The core values create a perfect growth culture for the
company.
Acknowledging the importance of the needs and preferences of the customers is highly
valued at McDonald’s. The company also encourages respect for people, the brand of the
company and a call to always operate in a justified manner. By weaving the needs of the
communities with those of the business, McDonald’s has created an environment where all
partners thrive.

MCDONALD'S ACCOMPLISHMENTS
• McDonald's replaced potato chips with french fries.
• In 1958 McDonald's sold it's 100 millionth hamburger.
• In 1959 McDonald's opened it's 100th restaurant.
• In 1962 McDonald's became the first restaurant with indoor seating.
• In 1963 McDonald's opened it's 500th restaurant.
• In 1965 McDonald's celebrated it's 10th anniversary.
• In 1966 McDonald's aired it's first television commercial.
• In 1967 McDonald's went international.
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SWOT ANALYSIS OF MCDONALD’S

STRENGTH:
PLACE:
McDonald has its franchise at very good places which increase its sales, like at airport, near
sea or places where customer can easily reach.
STAFF:
McDonald focus on their staff training and customer which help in retaining customer, the
staff of McDonald is really friendly and provide really good service to their customer.

QUICK SERVICE:
McDonald focus on not to put their customer on waiting, in this era where every one is busy
in their life it is very important to provide quick service; they also use new technologies to
fulfill customer’s demand on time.

CHILDREN TARGETING:
The business successfully targets very young children through offering playground toys with
meal and advertisement.

TASTE DEVEOPLMENT:
The fast food chain is operating in many diverse cultures where taste in food are extremely
different like Indian and European customers. Thus, ability to adapt to local tastes is one of
McDonald’s strengths.

WEAKNESSES:
LIMITED FOOD MENU:
Although McDonald tries to introduce healthier choices in its menu, the menu is limited they
should keep updating their menu.

LOW DIFFERENTIATION:
McDonald is no longer able to substantially differentiate itself from other fast food chains
and chooses to compete by price rather than by additional features.

OPPORTUNITIES:
INCREASING DEMAND FOR HEALTHIER FOOD:
While demand for healthier food increases, McDonald’s could introduce more healthy food
choices in its menu .

INNOVATION:
Menu innovations are limited only by imagination. McDonald can increase its menu by
introducing new foods and drinks

NEW TECHNOLOGY:
McDonald has the capability of adapting new systems and technologies that can develop new
product that will addresses health concerns.
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THREATS:
DOLLAR RATE:
The change in dollar rate is the threat for McDonald because it will increase the price of raw
material which will force McDonald to increase their price

COMPETITOR:
The indirect competitor or McDonald are coming rapidly with innovative menu this can
affect McDonald purchase.

PRICE:
Commodity price increases could increase costs while a weak economy limits the ability to
pass the price hikes through to consumers.

NEW PRODUCT:
New product rollouts often have to go head-to-head with established players like Starbucks
Coffee.

COMPETITORS OF McDonald:
DIRECT COMPETITORS:
Direct competition is any company that offers the same thing as you while indirect
competition refers to a business whose products or services are different from yours but
potentially could satisfy the same need and reach the same goal.
The firm which is providing same products that McDonald is providing are the direct
competitors of McDonald

BURGER KING:
Burger King is an American multinational chain of hamburger fast food restaurants. the
company was founded in 1953 as Insta-Burger King, a Jacksonville, Florida–based restaurant
chain. Burger King is finally coming to Pakistan, most likely in mid-2014, as MCR Pakistan,
the franchisee of Pizza Hut in Pakistan, has entered into a master franchise agreement
with Burger King Worldwide Inc. Burger king provides lots of varieties of burger like, bacon
cheeseburger, double cheese burger, bacon king, bogo wopper, crispy chicken sandwich
meal, and also provide nuggets, fries and drinks.

SUBWAY:
Subway is an American privately held restaurant franchise that primarily sells submarine
sandwiches and salads. It is one of the fastest-growing franchises in the world and, as of
October 2019, had 41,512 locations in more than 100 countries. More than half its locations
are in the United States. subway is the single brand fast food chain restaurant that offer
sandwich with customization option for customer to make it according to their taste and also
offer nutrition focused products, cookies an chips

KFC
KFC is an American fast food restaurant chain, Kentucky, that specializes in fried chicken. It
is the world's second-largest restaurant chain after McDonald's, with 22,621 locations
globally in 136 countries as of December 2018. KFC started its branches in Pakistan in 1997
and it is now one of the major fast food restaurants in Pakistan, McDonald also has its
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branches in all major cities of Pakistan and attract the people of Pakistan through their
delicious deals. The menu of KFC contains bone and boneless chicken, zingeratha, Rice and
spice, Krunch Burger, Krunch chicken, Chicken and Rice, Fries, Nuggets, Arabian Rice and
Hot Wings.

INDIRECT COMPETITOR:
Indirect competition is competition between companies that make slightly different
products but target the same customers. We can also use the term for providers of services.
Apart from targeting the same group of customers, they also aim to satisfy the same needs.
BURGER O CLOCK:
Burger o clock is the local fast food chain and an indirect competitor of mc Donald, it
provides Pizza fries, muscle burgers, classic burgers, extreme burgers, premium burger, stuff
burger, menu burgers, ice-cream shakes, Healthy kick and mocktails.
BURGER LAB:
burger lab is a fast food place with small but comfortable Dine-in where they serve a variety
of crispy and crunchy burgers made with flavorful sauces with their amazing range of fries,
Chicken Strips, and Beverages within a very reasonable price. The food is made up of fresh
and healthy ingredients.
BOVI CHICK:
It was founded on 24 september 1999, it is a Pakistan based restaurant with products like
burger, gyros, sandwich, fried chicken, fries and drinks. The price of bovichick targets middle
class people.
HOUSE OF BURGERS:
 specialize in delicious Gourmet Burgers made with all fresh ingredients and our signature
sauces, along with our premium cut 12mm fries made to order keeping the right balance of
crisp and taste. The menu of house of burger contains mighty Krisper, melting mighty, swiss
mushroom, crisper, messy bbq, flaming mayo, wild chipotle, puled chicken tikka, pepperoni
crunch, cheese steak, grilled blue cheese, spicy buster and royal chicken.
CORE COMPETENCY OF McDonald:
McDonald’s core competencies are: trained and experienced staff, product development,
advanced technology, excellent locations, superior customer service, franchising. Core
competencies permit the business to bring value to their customers.
AVAILABILITY:
The forever changing of the variety of products available and how they are made to match
specific areas. McDonald's market is made to adapt to any region of the world as well as
maintain the high standard of food that they hold. Meeting the needs of the current population
in the area in which it is built contributes to its success. Technology is another competency
that McDonald’s possess. Technology is used for communication among managers and
restaurants, and training tools are also presented in this manner. Technology is always
changing, but it is a great way to run the business and to stay up to date
CUSTOMER SERVICE:
Exceptional customer service is another way to stay on top in the fast food market. When
serving hot food, customers want it fast, speedy and accurate.
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LOCATION:
A great location is another one of McDonald’s ways to becoming a success. Most of the
McDonald's restaurants are located in a self-standing building, as well as off of a major
highway; some are also built alongside gas stations at amusement parks and many busy
airports provide McDonald's, and they are quite satisfied. The location is imperative when
choosing success for your business.

STRATEGIC BUSINESS UNIT OF MCDONALD:

McDonald’s is undoubtedly one of the largest and most recognized fast-food chains, with
more than 36,500 restaurants worldwide. CEO of McDonald’s Pakistan (Size Foods) Amin
Lakhani has worked at the company for more than 20 years and is proud of the fact that he
worked his way up from the restaurant floor

STRATEGIC ALLIES:
A strategic ally’s means an organization is working together in a joint venture or a similar
arrangement with one or more organizations. McDonald’s is in strategic alliance with: Wal-
Mart, Chevron, Amoco, Disney and Coca-Cola. Wal-Mart, the largest retail chain in U.S. and
several neighboring countries, is symbiotically allied with McDonald’s. In each Wal-Mart
stores, there are McDonald’s restaurants. Thereby it offers its customers excellent low-cost
fast food in a convenient way. Chevron and Amoco are two petrol pumps with which
McDonald’s is in alliance with. This alliance represents ultimate convenience. Nothing can
be more convenient than filling the car with as well as getting a meal, that too all in one stop.
Another important alliance of the company is with Disney. Sole right has been granted to
McDonald’s to sell fast food in Disney’s theme parks around US and at other Disney spots in
the world. As per the terms of the agreement, McDonald’s will operate as restaurants and
Disney will promote its films through McDonald’s.
PUSH AND PULL STRATEGY:
McDonald's use both pull as well as push process; all processes except for those involved in
the Customer Order cycle are push processes. That is, product will be pushed from suppliers,
to the distributers, to the restaurants where customers will then demand for that product,
creating a pull effect. This means that the Push/Pull boundary will be situated before the
Replenishment cycle takes place and after the Customer Order cycle occurs, just when the
customer order arrives.

1. HANDS FULL
McDonald’s used to be all about the food, but in 2018 it chose to focus on strides in customer
experience, highlighting how the brand is making it easier for everyone in restaurants.
The campaign is made up of three different ads, called ‘Hands Full’, ‘Grownup’ and
‘It Must Be’. Each one shows a different in-store innovation, including the McDonald’s
mobile app, in-store order screens, and table service.
Part of McDonald’s aim was to change perceptions (and highlight innovation),
making it a story-driven and highly engaging campaign that targeted families in particular
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2. SEARCH IT
It’s not difficult to identify those Golden Arches, which is perhaps why McDonald’s felt
confident enough to release a bold and unbranded campaign in 2017. Called ‘Search It’, the
ad saw actress Mindy Kalinga urging viewers to do a Google search for “that place where
Coke tastes so good.”
The ad’s aim was to highlight how young people find information today, with the
aforementioned Google search results bringing up a hub for the campaign videos (and
ramping up search mentions for the brand).
3. BEVIN BURGER’S FACEBOOK LIVE
McDonald’s held its first ever Facebook Live event in 2016, in honor of ‘National
Hamburger Day’ in the US. Mimicking the style of Bob Ross (the American painter and TV
host), it saw the comedian “Bevin Burger” paint a trio of burger-inspired portraits.
Previously, McDonald’s had shied away from live-streamed videos for fear of
criticism or lack of engagement on social. However, users clearly lapped up this comedic
effort from the fast food chain. According to Adweek, the video reached 884,300 people in
40 minutes, and recorded 43,200 engagements or likes, comments and shares.
4. THE BIG MAC’S 50TH BIRTHDAY
The Big Mac turned 50 years old in 2018, leading McDonald’s France to honor the iconic
burger in a retro-themed print and digital campaign. The creative – which showcases iconic
looks from throughout past decades – highlights how fashion, technology and politics have
continually evolved, while the Big Mac has remained the same.
The campaign also included other digital elements, including retro Snapchat filters,
and interactive social media content asking users what they looked like during their formative
years.
5. GOOD TO KNOW
Back in 2015, McDonald’s used influencer marketing to dispel myths about the way its
chicken nuggets are made.
The brand brought in YouTube star Raphael Gomes to create a ‘What’s in
McDonald’s Chicken McNuggets?’ sponsored video, including the hashtag #GoodToKnow.
The video has racked up 176,683 views to date – which is not bad considering ‘influencer
marketing’ was still in relative infancy at the time.
Alongside this, the brand also released the ‘Always Working’ TV ad, highlighting changes
that have been made to the Happy Meal over the years, including 47% less salt in the
aforementioned nuggets.
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6. TRACK MY MACCA APP

People in Australia, and probably elsewhere in the world, were growing increasingly worried
about mass-produced food and its potentially dubious origins in 2013.
As a result, McDonald’s launched the ‘TrackMyMacca’s’ app, which used augmented reality
to show people where various McDonald’s items come from.
Users had to simply scan a McDonald’s product, and the app was able to access data from the
brand’s supply chain to identify the source of the ingredients for that particular product.
Nifty.
7. PAY WITH LOVIN’
McDonald’s ran an ad during the Super Bowl in 2015, letting people know that random
customers would be able to pay for burgers with ‘loving gestures’ instead of cash if they
ordered at certain times.
“Your total is one big family hug,” says one server. “Ring your mum and tell her you love
her,” says another. You get the picture.
The brand also offered product giveaways via Twitter during Super Bowl ad breaks. The
results? The YouTube version of the Super Bowl ad achieved 8m views within four days of
going live… not too shabby.
8. KICK THE TRASH
Big brands like McDonald’s are always looking for ways to demonstrate their corporate
social responsibility.
Way back in 2010 – in response to claims that areas outside of McDonald’s were dirty –
McDonald’s Germany came up with this campaign to encourage children and young people
to dispose of litter responsibly.
Launched ahead of the FIFA World Cup, the ads encouraged youngsters to ‘score’ their own
goals using balls made up of crumbled up Maccy D packaging.
9. ASK MCDONALD’S
With many members of the public being concerned about the quality and traceability of their
food, McDonald’s Canada wanted to make sure that customers were informed.
In order to address this, they offered to answer questions from the public about their food.
Over 20,000 questions were asked during the 2015 campaign, of which each one was
answered. The brand also set up a YouTube channel to showcase video responses to some of
the questions, and drawing customers into the story even further.

10. INTERACTIVE HAPPY MEAL PLAY ZONES

Finally, McDonald’s rolled out 150 interactive Happy Meals Play Zones in the UK back in
2012, which were designed to encourage children eating at the restaurant to be more active.
With images and characters being projected onto the floor, it used tracking cameras
and infra-red technology to create an entirely interactive experience.
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While these kinds of experiences are now more commonplace (as offline retailers
bring digital technologies into offline stores), McDonald’s was an early pioneer.

MARKETING RESEARCH FOR HOST COMPANY:

McDonalds uses quantitative research such as interviews and surveys to get to know the
different customers choices. This has helped them to improve their goods and services. M&S
also used qualitative research to help improve their branding, they did this by looking over
previous interviews and observations. McDonald’s Marketing Research strategies, based on
the Segmentation, targeting, and Positioning (STP) model will enable the company to tailor
the products in the market. During its marketing campaign, the company will use its 7 Ps of
marketing mix to appeal to all the niches in the market.
There are the 3C's of the McDonald's
1. Company
2. Customer
3. Competitors
1.Company:
McDonald's corporation is in 119 company countries around the world when it comes down
to the McDonalds as a brand and Fast Food Industry the sales are high, but the brand
perception is not keeping up with the pace. Rated the world's number 6 brand of Interbrand
McDonald's brand is negatively received by the public (Morrison,2011) a few factors that
influence the negative effect on McDonald's brand perception includes the issue of obesity
the involvement of animal cruelty social media commentary and targeting an innocent
audience with manipulation McDonald's AIIMS are to maximize the profit by increasing the
sales keeping cost live and More outlets nationwide its mean in stool lead the quick service
restaurant Market by a programmer of site development and profitable restaurant opening
statement of business McDonald's mission is to be the world best quick service restaurants
experience.
2.Customers:
McDonald's market segmentation is based on demographic variables age and Lifestyle the
primary target markets are senior address and teenager by the most heavily targeted segment
is children the market segmentation of MacDonald can be visualized as follow market
segment
• Seniors
• Adults
• Teenagers
• Children
McDonald's mostly targeted the young people's however this has changed in it in this decade
McDonald has turned towards a more general Market by doing this McDonald's concentrate
on the family targeting a diverse market customer used to get to know about the product
advertising nowadays they are focusing on billboards and give as on social media sites and
nowadays they also require the McDonald's app to download the app in your mobile and get
the deals at your doorstep
3.Competitors:
McDonalds major competition include the Burger King, Taco Bell, Subway and Panera
Bread. Specially KFC which offers chicken nugget and price on its menu of wheat or in
11,000 restaurants in more than 80 countries.
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Fast food specially fries hamburger and so on earth through as garbage food because of high
calories there are high possibilities of healthy substitute posing at 3 to the companies of
course McDonald's concentrating on the Health Side of introduction of healthy food item in
the menu..

SOCIAL CLASSES FOR PRODUCT AND SERVICES

By using the STP model for the new product, the company will thus use the 7 Ps of
marketing
mix to stage a comprehensive marketing campaign for cappuccino, latte and mocha variants.
The following is an outline of the marketing mix: but here i only discussed about the product
and
services of the McDonalds.
Product – McDonald will introduce cappuccino, latte and mocha as the main product for the
competitive market. These products have not been offered by the company and therefore are
unique. Therefore, the marketing campaign will focus on these products.
he product is the physical product or service provided by the company to the customers. It
encompasses both the tangible and the non-tangible aspects such as appearances, assurance
or packaging. McDonald's offers products in the same packages in diverse countries, and
the consistency of these products attracts many loyal customers (Singla, 2012). In the UK,
the company has studied the behavior of customers and provide an entirely different menu
as compared to other countries. As such, McDonald's has been able to constantly innovate
its products based on the changing tastes and preferences of its customers. The company
introduce new products with a reputed brand, high-quality and outstanding customer-related
features (McDonalds, 2017).

It is worth mentioning that McDonald's has made a series of the strict menu to maintain the
distinctive freshness and taste of its product. During manufacturing, the product undergoes
many quality checks to make sure it achieves the high-quality aspect (Appendix 2). For
example,
the hamburgers have to go through multiple examination catalogues, and the stock life of
certain foods should not exceed 40 days (Singla, 2012). In addition, there are strict standards
that must be adhered while the products are being created. The products that do not meet the
appropriate criteria are eliminated before being delivered to customers.
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McDonald's offer the product item includes in breakfast are

1. Chicken sausages Muffin with egg
2.Egg McMuffin
3.Egg and cheese Mac muffin
4. Big breakfast
Here if i talked about burgers
1. Big Mac burger
2.spicy chicken burger
3.cheese burger
4. Double cheeseburger
Hot drinks
1. Cappuccino
2.chocolate
3. Mocha
4. Tea
Shakes:
1.Chocolate shake
2. Vanilla shake
3.strawberry shake.

SERVICES:
A service is a means of delivering value to customers by facilitating outcomes that customers
want to achieve without the ownership of specific costs and risks.” ... “A service is something
that meets a need or fulfills a demand.
Food panda.
Food panda offers discounts, home delivery facility and provide quality food in time with
McDonalds, its makes odder easy and saves time and money with special discounts and
offers, with good food.
Drive Thru:
Drive through offers good quality food in less time but with some high pricing, they
introduce it
for the first time in Karachi on sea view and offer some complementary as well.
 18

McDonalds App:
App offers some more discounts ,it also deal with card money, recently they offer some new
deals on HBL card shopping.
And they also gave the customer services here is the example: they offers the contacts via we
ordered or gave the feedbacks
Contact of McDonald’s Pakistan customer service (phone, email)
Contact McDonald’s Pakistan: Find below customer service details of McDonald’s, Pakistan,
including phone and email. Besides contact details, the page also offers a brief overview of
the
fast food chain.
Head Office
Gam Corp. (Pvt) Ltd.
McDonald’s Restaurant,
Fortress Stadium,
Opposite Khyber Block,
Lahore Cantonment. Pakistan
Customer Service
Phone: 111244622
Phone: (92-42) 3662 3333-6
contactus@mcdonalds.com.pk
____
About McDonald’s Pakistan

McDonald’s is one of the largest fast food restaurant chains in the world, serving more than
68
million people in more than 119 countries. McDonald’s began in Pakistan in the year 1998,
with
the first store established in Lahore city. Currently, there are more than 53 restaurants in 17
major cities across Pakistan. The first Branch of McDonalds is open on Board Office at
Golden
Gate North Nazimabad.
 19

Competitors Pricing Strategy:

KFC's pricing strategy as a global brand, KFC use multiple price strategy due to different
market situation. The price strategies that implement in the U.S. have a big difference with its
global strategy. Currently, KFC’s biggest market share is moving to the immature markets
and developing countries. As a result, KFC choose the price skimming as its pricing strategy.
Because of its advanced management experience, advance the supply chain, advance
technology, and strong financial support. KFC is the top brand and its product is more
competitive than other competitors. On this condition, KFC product can attract consumer
from middle- or higher-income level. However, since the target market changed in the mature
markets and developed countries such as U.S., KFC should choose the status quo pricing
strategy which stays with the price of competitors. In this area, fast-food is the lower
consumer goods and this industry has been very mature. There are full of competitors such as
McDonald’s, Burger King, and Subway which have the same homogeneity and their
competition is extremely intense. On one hand, each competitor has its own independent and
perfect supply chain, so the costs of product can be compressed to a minimum. On the other
hand, the service, product quality, and the product categories are all most the same.
Differences are not large. Because of these two factors, KFC should lower its price in order to
attract consumers from middle- and low-income levels thus stay in a competitive position. In
addition, comparing with other competitors, KFC chooses different prices to increase the
diversity of product. Since KFC position itself as a fried chicken expert in the fast-food
industry. Fried chicken is popular and best product of KFC. KFC pricing its fried chicken
with a price higher than any other fast-food competitors. In general, its price is higher about
5%-10% than others, while other product

McDonald’s Prices and Pricing Strategies:.

This element of the marketing mix specifies the price points and price ranges of the
company’s food and beverage products. The aim is to use prices to maximize profit margins
and sales volume. McDonald’s uses a combination of the following pricing strategies:

● Bundle pricing strategy

● Psychological pricing strategy

In the bundle pricing strategy, McDonald’s offers meals and other product bundles for prices
that are discounted, compared to purchasing each item separately. For example, customers
can purchase a Happy Meal or an Extra Value Meal to optimize cost and product value. On
the other hand, in psychological pricing, the company uses prices that appear significantly
more affordable, such as Rs=99 instead of rounding it off to the nearest Pakistani rupees. This
pricing strategy helps encourage consumers to purchase the company’s products based on
perceived affordability. Thus, this element of McDonald’s marketing mix highlights the
importance of bundle pricing and psychological pricing to encourage customers to buy more
product. In Pakistan premium prices are not charged due to low income of target market.
.
In conclusion, if they manage to maintain their price and excellent services, it’s not a
surprise if they will be the best fast food chain for another 10 years.
 20

Distribution Channel:
McDonald’s has a successful franchise business model where all restaurants are
operated either by the company or by franchisees, including conventional franchisees under
franchise arrangements and developmental licensees and foreign affiliated markets under
license agreements. The company’s operations are designed to assure consistency and high
quality at every restaurant. When granting franchises or licenses, the company is selective
and generally does not franchise to passive investors. McDonald’s has franchised about 80%
of its restaurants, while the remainder is owned and operated by the company. Each of the
company’s franchisees usually has a standard 20-year franchise license. A franchise license is
an authorization granted by either a company or a government body to an individual or a
group that enables them to perform specific commercial activities. For McDonald’s, the
franchise model has led to years of profitability, growth, and risk mitigation. Consumption it
varies from retail outlet to retail outlet, but as a whole we take average of all retail outlets so
we can say that 70 percent consumers prefer chicken items and 30 percent go for meat.
Consumption in McDonalds Pakistan chicken and meat Chicken Meat
There are 2 types of freezers is used in Pakistan for inventory. One is a freezer room in the
basement and is just like a room. The expiry date of the products in this room is 90 days 
The freezer which is on the operational floor is having an expiry of some hours.
HOME DELIVERY McDonalds also provide home delivery service and delivery phone
number is 111244622. For their home delivery purpose, they have approx. 12 bikes and riders
present at their branch to do the home delivery on time. They use cd70 for their deliveries.
When asked for their delivery time, they said that McDonalds globally do not prefer and go
for delivery system but in Pakistan they were forced to do this because of the competition
given to them by KfC and Pizza hut. They take approx. 30 minutes to deliver in the radius of
8 km but conditions apply from outlet to outlet. They use delivery bags made of material
which keeps the temperate of the food item maintained. SOFTWARE McDonalds Pakistan is
not using any type of branded software right now. Previously they used American software
which was used by McDonalds globally and these were provided by McDonalds international
to them. Later on, they found out that Siza foods need to customize the software because the
previous software’s not meeting their demand. So now they have made their customized
inventory control software which is not having any specific name for them. After being ask
whether they use ERP or not in McDonalds they replied that currently McDonalds is very
small to use an ERP Software.
 21

CATEGORY, EXTENSION, BRAND AND PRODUCT LINE:

The Product Market Expansion Grid, also called the Ansoff Matrix, is a tool used to
develop business growth strategies by examining the relationship between new and
existing products, new and existing markets, and the risk associated with each possible
relationship. The matrix aids growth plans through the introduction of existing or new
products, in existing or new markets.
The matrix is designed so that as a company plots it’s new and existing products and
markets, the amount of risk associated with that strategy corresponds with its position
on the grid. Developing a strategy with existing products and markets is low in risk, but
with new products and markets risk increases.
This matrix is helpful to identify the Pakistanis special demand and market trends.

PRODUCT MARKET EXPANSION DIAGRAM:

PRODUCT DEVELOPMENT:
McDonald’s Corporation has always provided new and new innovations to its
customers. It always has provided a handsome level of consumer economic surplus to its
customers. McDonald’s always seeks innovation from one market and provided these
innovations and new products to the rest of the world. This strategy does have a
minimal level of risk which almost always have provided good results to the
 22

organization for keeping the strength in its 52 million customers averaged daily existing
customers. The McDonald’s growth strategy is the secret of organization's success.

MARKET PENETRATION:
McDonalds and Market Penetration. McDonald's has a new strategy to penetrate the
market this summer. The object of market penetration is to sell more of the current
product to the current market segment. This can be a low risk marketing strategy
because often the company knows the product and the segment very well

MARKET DEVELOPMENT:
As we all know that McDonald's is a Global organization and it has the franchisee FDI
system to reach the new global markets of work in its international business. It has
more than 31,000 business outlets (franchisees) in 120 countries round the world and it
always pursuit the additional market segments on geographical basis. As the firm is
expanding into new markets; the market development strategy typically has more risk
than a market penetration strategy for McDonald’s but the developments of new
markets have been proven significantly successful for McDonald’s core competencies of
its experience with a specific market segment.

DIVERSIFICATION:
Diversification is not the best of the idea for the company because it can’t afford to
make new products in the new markets. It’s actually not possible with the franchisee
system that McDonald’s adopts. Keeping aside from Franchisee system McDonald has
also proved success in this strategy by owning a majority stake in Chipotle Mexican
Grill & Pert A Manger and acquiring Donates Pizza. McDonald’s adopted both
product and market development strategies which was outside the core competencies of
the firm.

MARKETING CHANNEL:
Market segmentation is defined as dividing a single market into smaller segments. The
basic reason for dividing the market into small segments is to make it simple to address
the needs of smaller groups of customers and try to manufacture different products
according to their consuming habits. Particularly it is done according to the people who
have similar characteristics. It can be done on the basis of age, gender, lifestyle, region,
etc.
The division system of McDonald's can be involved about beneath the accompanying
heads. Topography Geographically McDonald’s look like to contain requested the
whole Pakistani business part as metropolitan and nation markets. Obviously, the
reason McDonald’s India market began to calmly at multiple portions, by organizing
the complete concentration towards simply urban business area. McDonald's Pakistan
beginning today gives nourishment just to the metropolitan masses in Pakistan. There
might be a couple purposes behind this, like the natural dietary examples, their
sensibility and standard approach towards sustenance.
KIDS, FAMILY AND STUDENTS.
McDonald’s offers different products like Happy Meal which includes a free toy for
kids. For Families’ it has made different outlets and meals which are suitable for
 23

takeaways and drive-thru. McDonalds has made its environment which is suitable for
students of school to hang out with their friends and can get their lunch at McDonalds.
CONVENIENCE AND LIFESTYLE.
McDonalds has adopted itself according to the convenience and lifestyle of the consumers, as
MC Donald’s respect cultural differences in their respective countries, In US people tend to
have beef rather than chicken and in  India, China people don’t like to have beef, so Mc
Donald’s has more chicken items on their menu. In the Philippines Mc. Donald’s has
introduced McSpaghetti to its menu and in the Middle East its has introduced Mc
Arabia .Countries like Germany, Europe and Japan where the adult’s population to attract the
adults into business,
Mc Donald’s even sell a draft beer as part of drinks with their food. .They also made
McDonalds as a place to relax and even for entertainment.
Occasions, e.g. birthday parties

Mc Donald’s restaurants provide party rooms for children’s birthday celebrations.

Mc Donald’ is a fun fulfilled environment place that targets

● Children with Happy meals,

● Youngsters with free WIFI. Families Weekend outings or meals
● Working Adults seek convenience meals; "grab and go Drive-Thru, Takeaways,
McDelivery, 24-Hour, Great taste, quick service without affecting the work
schedule. 

Mc Donald’s is fighting to position its brand against its rivals around the globe, the rivals Mc
Donald’s are KFC, WENDY’S, BURGER KING.
The Mascot of Ronald Mc Donald had a great attraction for children that had children driving
to the restaurants. Mc Donald’s has used advertising through social media and billboards as
their mainstream to position its brand against its rivals.
Shadow on the billboard shows what’s being served at Mc Donald’s; the second image is a
giant egg that breaks into half between 6.30 am to 10.30 pm indicates that Mc Donald’s
serves breakfast this differentiation from the organization makes them position their brand in
consumers mindsets.
The pricing strategy has been a strategical tool for Mc Donald’s to position its brand and in
its products in the consumer mind.
The power of our franchisees, suppliers and employees working together toward a common
goal is what makes McDonald’s the world’s leading quick-service restaurant brand.
Corporate publishes a list of approved all suppliers—stores choose local suppliers whenever
possible.
 Product freshness is assured
 Minimize transport cost and time
 Mutual transparency is a success factor—builds trust
 Information is openly shared between stores and vendors
 McDonald’s works closely with suppliers to encourage
 Innovation; assure best practices; continuous improvement
 Scales of economy; SC infrastructure; risk management
 24

 Franchisees bring the spirit of entrepreneurship and commitment to

communities
 Suppliers are dedicated to highest levels of quality and safety.

The company facilitates learning and sharing across McDonald’s more than 36,000
restaurants

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. See McDonald’s
around the world

in restaurants

ADVERTISING:
McDonald’s media usual such as television, radio and newspaper ads and social
websites. the company makes significant use of billboards and signage, and sponsors
sporting events ranging from Little League to the FIFA World Cup and Olympic
Games, Kids movie.
McDonald’s is focus on persuasive communication, which includes ethos, logos and
pathos message appeals, using family which has children as spokesperson.
Families had been used as spokesperson in the advertisements.
Happy Meals with toys are provided to the children so that parents could relax and
enjoy their eating time in McDonald’s.
 25

ATTRACTIVE MENUS FOR THE CHILDREN.

MCDONALD'S ADVERTISES TOWARDS CHILDREN & FAMILIES.

As stated earlier, McDonald's markets towards families and children and presenting the
restaurant as a fun place to go with your family. Some advertisements talk about how
children "always have a friend with big red shoes".

E-COMMERCE:
McDonald’s, including its global mobile app, mobile order and pay, indoor and outdoor
digital menu boards and self-order kiosks.

MARKETING CHANNELS
Marketing strategy plays a significant role for developing any type of business. Without
proper marketing strategy, the hard work of the company to attract clients will turn out to be
very inefficient and random.

The main objectives of your marketing strategy must ensure that the product must fulfill the
customers demand as well as maintain a long relationship with those clients.

To obtain this, businesses will need to initiate flexible techniques which reply to the
adjustment in customer perception and demand. It might also provide a product name to your
brand that will aid owners to run their business in markets in an efficient and smooth way.

MARKETING CHANNELS OF MCDONALD'S:

 26

The first restaurant opened by McDonalds Company was in San Bernardino, California way
back in 1948. At this moment, McDonalds is the world’s finest and leading food service
company with more than $40 billion sales from 30, 000 outlets all over the world.

However, this company didn’t grow quickly because of fortune. McDonalds has reached
where they are now due to hard work and effective marketing strategies.

One of the company’s greatest achievements was the opening of the Happy Meal. In year
1970’s, McDonalds Company was searching a new ways to catch the attention of customers.

Study indicated that little ones were great influencers in the company’s decision and making
process. This led in the world’s first Happy Meal, a combination of meal suitable for children
including a free toy which place McDonalds smack-dab in the children sites all over the
world.
Want to insert a picture from your files or add a shape or text box? You got it! On the Insert
tab of the ribbon, just tap the option you need.
 27

CROSS CULTURE ISSUES:

The first restaurant opened by McDonalds Company was in San Bernardino, California way
back in 1948. At this moment, McDonalds is the world’s finest and leading food service
company with more than $40 billion sales from 30, 000 outlets all over the world.

However, this company didn’t grow quickly because of fortune. McDonalds has reached
where they are now due to hard work and effective marketing strategies.

One of the company’s greatest achievements was the opening of the Happy Meal. In year
1970’s, McDonalds Company was searching a new ways to catch the attention of customers.

Study indicated that little ones were great influencers in the company’s decision and making
process. This led in the world’s first Happy Meal, a combination of meal suitable for children
including a free toy which place McDonalds smack-dab in the children sites all over the
world.
 28

FINANCIAL REPORT
 29

Ethical Advertisements of McDonald Company

McDonald is very organized company which they have a lot advertisement all over the world
which all of their advertisement are really good and proper which all the people when they
see the advertisement the automatically visit McDonald branches to taste the new sandwich
or new facilities that McDonald brought in and McDonald has a lot of advertising in their
campaigns which for example they have internet in their branches and also they have coffee
which they don’t had coffee before they only had sandwiches’ but now they have breakfast as
well so this makes people to take their laptops and visit McDonald and have a breakfast with
coffee and enjoy .

McDonald it’s a really nice place and the people enjoy it and also its very friendly place that
all of the people when they enter McDonald they are happy when they see the logo of
McDonald which looks like a nice smile in yellow colour and the other thing that is good
about the McDonald is that ten price are good and the cost of everything that you eat is not a
lot and so many people so it does not matter they are rich or poor they can eat McDonald
whenever they want this shows that McDonald has a good relationship with all its customers
not only poor or only right its designed for all the people in the world which is very good and
this makes them successful in their corporation.
 30

Unethical Advertisement of McDonald Company

Unethical advertisement of McDonald company is that they have a lot of advertisement

which cost a lot for example in the stadium and in the billboards and everywhere ere this kind
of advertisement is not good because they can save this money and giving it to the people
which don’t have house to live or spending this money in other was like making schools for
the poor people and a lot of examples like these that McDonald has to do in order to make all
the people in the world happy if their aim is this toward their business and they have use keep
away from these kind of worlds so they don’t have problem in the future but the good thing is
that McDonald has a good management which they will never have problem but they have to
make all the people have its not nice that the people which they dint have money be sad or un
happy so they can save this money and giving it to the people which don’t have house to live
or spending this money in other was like making schools for the poor people and a lot of
examples like these that McDonald has to do in order to make all the people in the world
happy if their aim is this toward their business and they have use keep away from these kind
of worlds so they don’t have problem in the future but the good thing is that McDonald has a
good management which they will never have problem but they have to make all the people
have its not nice that the people which they dint have money be sad or un happy so people
and a lot of examples like these that McDonald has to do in order to make all the people in
the world happy if their aim is this toward their business and they have use keep away from
these kind of worlds so they don’t have problem in the future but the good thing is that
McDonald has a good management which they will never have problem but they have to
make all the people have its not nice that the people which they dint have money be sad or un
happy and feel good.

Pest analysis of McDonalds

POLITICAL FACTORS
 31

In general, political factors do not affect companies as much. Only the companies are obliged
to pay taxes like sales tax or payroll tax to the government. Like any other business,
McDonalds is also obliged to pay these taxes. These tax obligations are different in each
country. But in countries where there are strict consumer protection laws, companies have to
make sure that the quality is maintained and they deliver what they claim.
On countries where consumers laws are that strong McDonalds enjoys an added advantage
there but in countries like US, McDonalds has to face high cost in forms of lawsuits and
litigations with a breach of quality of a service.

ENVIRONMENTAL FACTORS
Economic factors play an important role in operations of a company. If an economy of a
country is doing well, the business will flourish specially those producing luxury goods but if
an economy faces recession these businesses will face negative impact on their sales.
McDonalds falls in the same category. Their sale is largely dependent on economy of
country. If the economy does well, people will have more disposable income and will spend
more in consuming food items from McDonalds. Also, McDonalds imports much of its raw
material from other countries. Exchange rate fluctuations will also affect the operations of the
company.

SOCIAL FACTORS
Social factors are very important while making strategic business decisions. Culture, values,
norms and the living style of people all affects the operations of a company.
McDonalds has various outlets in different countries. Each country has its own culture and
McDonalds makes sure that the cultural and religious barriers are kept in mind while deciding
the food menus at these different outlets. For instance, the existence of meat in food menus is
considered offensive in India by some Hindu religious groups. McDonald’s has launched
special vegetarian meals to cater to that market.
Also, McDonalds has the image of a socially responsible firm because of their involvements
in projects to help people like they announced backing to the rainforest Alliance. But in some
countries where there is anti-American feeling among the people, McDonalds sales has been
affected because of people boycotting American goods.

TECHNOLOGICAL FACTORS
McDonalds mainly markets its products through television advertisements and billboards.
There are claims that McDonalds only targets children in their advertisements. This is
apparent in the TV commercials and the play spots and toys, further proves this actuality.
McDonalds also uses animated depictions of their character like Ham burglar and Grimace
and to attract children. Other advertising strategy that McDonalds use is employing popular
celebrities to promote their products. Like the McDonalds worldwide loving it campaign is
endorsed by the Like. Moreover, the operations of McDonald's have altogether been mixed
with new technology. Management of value chain and inventory system of the organization
takes into account simple instalments for their suppliers and different merchants which the
distinctive stores in different markets. The infusion of technology in the operations of
McDonalds adds quality to their items. The improved inventory system as well as the supply
chain enables the organization to work in a global context.
 32

IMPORT AND EXPORT POLICY OF MCDONALD’S:

One of the biggest multinational food franchises in Pakistan, McDonald’s is allegedly in

trouble over importing expired chicken and beef from an infamous Chinese supplier, Husi
Food Co.
 33

Husi Food Co. which was shut down for mixing expired chicken and beef with fresh ones and
repacking had been exporting beef and chicken to the importers of McNuggets and McCrispy
Burger Patties for McDonald’s Pakistan i.e. Siza Foods Private Limited and Gam
Corporation Private Limited.

The two importers, according to the customs record imported 41 tons and 71 tons of Chicken
Products from the Husi Food Co.in the month of June this year. Report claims that both the
companies were importing from Husi Food Co. before its operations were discontinued.

Speaking to Dawn.com, Mr. Jamil A. Mughal, the director marketing and development of
McDonald’s Pakistan said,

“McDonald’s does not receive any products from the factory in question that is Husi
Shanghai. We have never imported these products from Husi Food Shanghai.”

He further added,

“Our products come only from Husi Beijing factory which has been cleared by FDA and it
does not have any issues whatsoever. Further, we also import chicken products from Mac
Food Malaysia. We have been changing source of imports at different times.”

Although the allegations on Husi Food Co. have been proved and the factory’s operations
have been discontinued by the Food Safety authorities, but the rumoured association of this
multi-national food chain with such unhealthy mischief is still under question.

According to Food and Health experts, the custom authorities in Pakistan lack the facilities
used for checking of the imported food products, instead they rely on the certification
provided by supplier.