Aastha Singh – 19131138

Shayan Dey – 19131113

Topic - McDonald’s

Specify location of all its facilities like Plants, Warehouses, and Retail
Stores etc.: -
 Location of the restaurant in terms of number of footfalls it sees on a
daily basis

 The demographics of the audience which frequently visits that area.

Although McDonald's doesn't indulge in premium serving but still keeps
it as one of the factors

 The total area which is present with the owner who wants to start a
franchisee

 Ability to procure all the necessary permissions from the state

government in terms of running a food chain. McDonald's is an
international chain and it is imperative to maintain the highest levels of
hygiene and safety when opening a new restaurant

THE FOOD RETAIL INDUSTRY -

Internationally, no doubt McDonald‟s is considered the largest food service retailer in the
world. The first restaurant was established in 1955 in Des Plaines, Illinois, USA. It emerged
in Indian territory in 1996 eyeing the informal dining-out industry in India which is estimated
at $74 billion a year. The fast-food industry in India is estimated to be $12-$14.

McDonald’s Plants: -
The impressive McPlant features a Vegan Sesame Bun, Mustard, Ketchup, Vegan Sauce,
Fresh Onion, Pickles, Lettuce, Tomato and Vegan Cheese. It is cooked separately from other
McDonald’s burgers and sandwiches using dedicated utensils.

McDonald’s Warehouse: -
https://youtu.be/98xgIZHE2QQ?t=15

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McDonald’s warehouses management runs with separate areas for dry, refrigerated and
frozen foods. In each area, a specific temperature is maintained so the products are not
spoiled because of weather and climate changes. The same goes for distribution –
McDonald’s has the same three distribution channels through which they efficiently deliver
food to restaurants while maintaining the correct product temperature.

McDonald’s Retail Stores: -

Distribution Channel

The most prominent place McDonald’s products can be found are at its restaurants. Other
places where the company uses to sell its products are:

 Kiosks
 Postmates website and app
 McDonald’s mobile app

Hence, the company is using the selective distribution channel maintaining a push-and-pull
marketing communication (Meyer 2015).

Channels of Distribution: McDonald's: -

Producer Wholesaler Retailer Customer

The core of this presentation is to discuss the theory of distribution strategy with the
underlying real-life examples of McDonald's fast-food restaurants. The aim is to discuss
McDonald's distribution channel and the way in which this fast-food restaurant chain gets its
products to the market. In the theory of the Marketing Mix, place (distribution) determines
where the product will be sold and how it will get there. In fact, as noted on
www.mcdonalds.com, McDonald's is the leading global foodservice retailer, with more than
30,000 local restaurants serving nearly 46 million people each day in 121 different countries.
Approximately 80 percent of all McDonald's restaurants worldwide are owned and operated

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by independent franchisers. Furthermore, at the essence of place decisions, Kotler (et al.,
2001, p. 513) claims that, "retailers, particularly fast foods chains, often state their seven P's
of marketing to be, that is location, location, location, location, location, location and
location."

Hence, a retailer's location is the key to attracting customers. The costs of the building or
leasing facilities are a major factor on the retailer's profits. Thus, site location decisions are
among the most important the retailer make" (Kotler, et al., 2001, p. 513).

Intensive Distribution:

Distribution arrangements tend to be long term in nature. Because of this time horizon,
channel decisions are usually classed as strategic, rather than tactical or operational ones.
Many of McDonald’s restaurants are open 24 hours per day which satisfies the customer’s
needs and wants, especially for exists their hunger. This kind of distribution strategy is called
"intensive distribution", means marking the product available for sale through all possible
channels of distribution. As defined by Kotler (et al., 2001, p. 487), "intensive distribution is
stocking the product in as many outlets as possible." In addition, this strategy must be
designed to reach the consumer wants at anytime and anywhere.

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