“One world, One Burger”- McDonald’s

WELCOME TO THE WORLD OF McDonald’s

• HISTORY• PAST AND PRESENT

STRATEGY• SWOT ANALYSIS• 4 P’S• ORGANISATIONAL

STRUCTURE• PROMOTIONAL

STRATEGY• PRODUCT MIX• TURNOVER• DISTRIBUTION

CHANNEL IN ABOARD

• SEGMENTATION

AGENDA

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As word of their success spread, franchisees started showing interest. However, the franchising system failed

McDonald's was started as a drive-in restaurant by two brothers, Richard and Maurice McDonald in California, US in the year 1937.

Mcdonald’s History

The original mascot of McDonald's was a man with a chef's hat on top of a hamburger shaped head whose name was Speedee

• At this point, Ray Kroc (Kroc), distributor for milkshake machines . Expressed interest in the business, and he finalized a deal with the McDonald brothers in 1954.

•He established a franchising company, the McDonald System Inc. and appointed franchisees.

•In 1961, he bought out the McDonald brothers' share for 16.2 Cr and changed the name of the company to McDonald's Corporation. In 1965, McDonald's went public...

Currently McDonald's operates in 121 countries & having more than 30000 restarunt

McDonald’s History

McDonald's Market Share {Globally}

McDonald's Market Share {INDIA}

Source : https://simconblog.wordpress.com

• McDonald's India has already contributed directly & indirectly Rs. 95 crore (approx. 16 per cent of total turnover) as revenue to the Center and the State towards Sales Tax, House tax and Income Tax in the last seven years. By 2005 this amount shall see an increase of more than 30 per cent per annum.

Contribution to Economic Growth

McDonald's revenue from 2005 to 2012 {Globally}

Source: http://www.statista.com

Global market share

Current status of McDonald’s McDonald's is the world's #1 fast-food company by

sales

Serving burgers and fries, it operates more than 36,250 restaurants

It serves in more than 121 countries on six continents

On a day-to-day basis, more than Rs.318 Crores customers world-wide are served

Employs more than 4,47,000 people

The Boston Market and Chipotle Mexican Grill fast-casual chains are also owned by McDonald's

Global sales of McDonalds is Rs.5,34,780 Crores in 2013

Competitors

Competitors

5,73,76,776  LIKES

FOLLOWERS 2.75 Million

Competitors McDonald’s major competitors:

Marketing Mix

The 4P’s used in Marketing Mix are :-

ProductPrice PlacePromotion

Product

New Product

Products

Veg. Menu

Mc Aloo Tikki Rs. 25

Non-Veg. Menu

Mc Spicy Chicken Rs. 109

Mc Egg Rs.25

Beverages

Product Mix in INDIA

‘Vegetarian menu’

Sauces and Cheese 100%vegetarian

Affordable price products

Product Mix in China

Menu extensions, convince and value

It opened up a ‘Dollar Menu’ know as the “Value menu” that offered sandwiches and other items at a lower price

Product Mix in U.S.

Pricing Strategy Success of McDonalds has been mainly due to its value for money offering to the Indian Consumers

Happy meals comprising of small burgers, coke + toy

Medium meal combo that consisted of burger, medium fries and medium coke with the price of Rs. 75

Maharaja Mac Meal – Rs. 94

Family Dines under Rs. 300

Place

McDonald's opened its doors in India in October 1996. Ever since then, our family restaurants in Mumbai, Delhi, Pune, Ahmedabad, Vadodara, Ludhiana, Jaipur, Noida Faridabad, Doraha, Manesar and Gurgaon have proceeded to demonstrate.

• The ambience and the environment is same at

all the outlets of McDonald's.

McDonald’s Outlets

Promotion

The various promotion channels being used by McDonalds to effectively communicate the product information are-

I Love Children

I Have Gifts For them,

They Can play Games also

“You deserve a break today, so get up and get away- To McDonalds”

“Aap ke zamane mein, baap ke zamane ke daam”

“Food, folks and fun.”

Organizational Chart

INTODUCTION

MATURITY

DECLINE

Product Life Cycle {PLC}

TIME

SALES

STP Model

McDonald’s has segmented their products according to 3 different basesSegmented groups - Adults, kids, students and family

The 3 bases for segmentation are :Demographic SegmentationPsychographic SegmentationBehavioral Segmentation

Target Segment What is McDonalds for me?

A Family with children A treat to children, a fun place to be for the children

Urban customer on the move Great taste, quick service without affecting the work schedule

Teenager Hangout with friends, but keep it affordable

Targeting

Positioning

Eg.. VADA PAV

Declining market shareDeclining market share Weak product Weak product developmentdevelopment Quality and taste of Quality and taste of productsproducts

42% of US fast-food 42% of US fast-food hamburger businesshamburger business Consistency of foodConsistency of food Successful items: Fries, Successful items: Fries, Happy Meal, Aloo tikki, Egg Happy Meal, Aloo tikki, Egg McMuffin, PromotionsMcMuffin, Promotions Overseas marketOverseas market

International International expansionexpansion Only serving 1% of the Only serving 1% of the world’s populationworld’s population

Strength of competitionStrength of competition More health-conscious More health-conscious consumersconsumers

McDonald’s SWOT Analysis

Porter’s Five Competitive ForcesRivalry within industry:

Burger King, Wendy’s, In & Out etc.Brands - Big Mac, Filet o’ FishInnovation – celebrity endorsements, monopoly Online presence - company info, links to charity works

Threat of new entrants: Eg.. Burger King Threat of substitutes:

Any other food industry – high-class restaurants to hot dog standsHealthier alternatives (Newman’s Own), unique products

Bargaining power of buyers:Pay attention to customer demands and trendsOffer specialty products for all segmentsFirst mover- salads, cooking oil

Bargaining power of suppliers:McDonald’s relies on strong supplier and distributor relationshipsHelp suppliers lower costs

Suppliers include: Coca-Cola

Porter’s Five Competitive Forces

BYE BYE SEE U AT McDonald’S