McDonalds Case Study Presentation

A case study presentation on McDonalds.

1. McDONALD’S Presented By Neethu S Jayan

2. In May 15, 1940, at San Bernardino, California, two brothers named Richard and Maurice McDonald opened their “ McDonald’s Bar-B-Que” restaurant. HISTORY

3. On December 12, 1942, the name was changed to “McDonald ”. In 1954, Ray Kroc, a seller of Prince Castle brand multi mixer visited “McDonald’s” and offered to open franchise the restaurant elsewhere. . In April 15, 1955, Ray Kroc opened his first Mc Donald’s restaurant at Des Plaines, Illinois. The McDonald’s restaurant was head quartered at Oak, Brook, Illinois, U.S. they decides to move it to Chicago in 2018. The subsidiaries of McDonald include McDonalds ocean Eve, SF, McDonalds Canada etc.

4. The Mc Donald’s restaurant was head quartered at Oak, Brook, Illinois, U.S. they decides to move it to Chicago in 2018. As per 2015 survey they own 36,525 restuarants globally. The present CEO and President of McDonald is Steve Esterbrook . Their slogan is “I’m Lovin ’ It” PRESENT SCENARIO

5. The total number of Mc Donald’s restaurants globally was about 36,000. The number of McDonald’s employees globally was 15 million. The total McDonald’s revenue in 2015 was 25.4 billion.

6. MC DONALD’S IN INDIA Mc Donald’s opened its doors in India in October 1996 at BasantLok in Vasant Vihar They have restaurants in Mumbai, Delhi, Pune, Ahamedabad, Vadodara, Ludhiana, Jaipur, Noida Faridabad, Doraha, Manesar and Gurgon . The Indian market was different in terms of customer’s tastes, value systems, lifestyle, language, perception and purchasing power, as compared to most of the other countries where they had a presence. To establish themselves in Indian market, they realized that they had to reengineer their entire marketing strategy.

7. STRATEGIES ADOPTED IN INDIAN MARKET Product: The hamburgers are prepared from beef and pork but in India, most religions do not allow the consumption of these meats. McDonald’s first had to study the eating habits and preferences of Indian consumers and provide an entirely different menu. They completely removed pork and beef, and introduced varieties such as the McVeggie burger and the McAlooTikki . Even the sauces used are 100% vegetarian.

8. 2) Place: It plays a very crucial role because the product should be available to customer at the right place in the right quantity without any delay. The number of McDonald’s outlets in India is increasing exponentially, with one outlet in almost every mall, marketplace, theatre, multiplex, airport, railway station, metro station and near amusement parks.

9. 3) Promotion: McDonald’s promotion strategy consists of a mix of advertising, personal selling, sales promotion, public relations and direct marketing. Three main objectives of McDonald’s marketing are to make people aware of the item, feel positive about it and remember it. 4) Price: The products are priced such that they can also be afforded by middle class and lower middle class people. McDonald’s also offers various meals like happy meal, combo meal, family meal, happy price menu etc.

10. McDrive Mcexpress McCafé Create your taste restaurants RESTUARANTS

11. Hamburgers Chicken French fries Soft drinks Milk shakes Salads Deserts Coffee Breakfast Sandwiches Snacks & sides MC DONALD’S MENU

12. Mc Donald’s is an example of brand franchising. Being their own boss in return, the franchise agrees to operate the restaurant in accordance with Mc Donald’s standards of quality, service, cleanliness and value. The cooking process in Mc Donald’s restaurants are broken into small, repetitive tasks, enabling the staff to become highly efficient and adept in all tasks. It recognizes that the success and profitability of Mc Donald’s is directly linked to the success of the franchises. Benefits from National marketing carried out by Mc Donald’s A brand is a name, term, sign, symbol or design which identifies one organization’s products from those of its competitors. BRANDING

13. COMPETITIVE ADVANTAGES Striving to be cost leaders The speedy delivery of the products. Greater buying power Increased name recognition Rapid expansion Market dominance Increased advertisement and marketing budget. New revenue streams are created.

14. They focus on Q,S,C & V. They stick on to their policies. For example, they shut down their restaurant at France for not maintaining standards, though it was yielding a high profit. McDonalds dominates most of the international markets like Japan, Canada, Germany, Australia, England. It uses economies of scale for reducing the cost as it operates on a huge scale. It is flexible with its products. STRENGTH

15. It is recognized as the world’s most recognized logos. It has a strong global presence and is considered as a market leader in both domestic as well as international market. To target or attract customers, they moderately priced their products.

16. Competition with the competitors in the fast food section resulting in low revenue. Mc Donald’s expanded too fast, but Burger King and Wendy’s have tastier meals. Negative impact due to sheer size of the organization. Low shelf life of majority of products. High employee turn over in stores. Yet to accomplish going with the trend of organic and healthy food. WEAKNESS

17. In 1955, no such fast food providers as competitors against McDonalds, in their home country. After they flourished in their home country they found opportunities in introducing their products globally. It can adopt to the needs of the society and undergo an innovative product line. It can research ways to include healthy products in their menus across the world. It can upscale some of its restaurants locations to attract more customers. OPPORTUNITIES

18. It can use digital media as a new way of advertising to carter to a larger target base. Also can use text messaging updates to keep their guests informed about the location of outlets.

19. R egional and cultural differences. They had to alter their menu or product for different countries and risk of people denying it. For example, the menus in Arab countries comply with Islamic food preparation laws. Other competitors like KFC, Pizza Hut, Burger King, Wendy’s, etc. Health issues regarding fast food chain. Foreign currency fluctuations are regarded as a major problem. THREATS

20. What opportunities and threats did McDonald’s face? How did it handle them? What alternatives could it have chosen? The opportunities that McD had at the time of opening was the potential of fast food chain restaurants. No real competitors were there to explore the market. As they were newly opened, products were moderately priced. To be a major player in food services around the world. To provide something other than just Food and beverages(QSC&V) Questions

21. Threats The main threat that McD had was acceptance from the public as being a new brand. Regional and cultural differences. Had to alter their menu and products in accordance with the country’s taste, preference and laws. Now, competition from other fast food chain restaurants like Burger king, Wendy’s, Taco etc. How did they handle? By moderately pricing and limited menu. By incorporating the local dishes with its standard menu. Separate menu for India , Jerusalem etc. Special R&D team for making their products more tastier and eye appealing.

22. 2 ) Before McD entered the European market , few people believed that fast food could be succesful in Europe. Why do you think McD succeeded. What strategies did it follow? How did these differ from its strategies in Asia? Mc Donald's succeeded as it was one of the first restaurant to welcome children and family and thus created an image of a family restaurant. It come forward with better cooking procedure and smarter kitchen layouts with strict controlling.

23. The children not only received a warm welcome but also they were entertained with crayons and paper, a play land and also by the clown Ronald Mc Donald who could speak 20 languages. Asia was viewed as a potential customers but with so much diversity, customs and traditions. The marketing strategies has to be changed in order to get established in Asia. For example, in Japan a burger is considered as a snack and it should be sold as such.

24. What is McD’s basic philosophy? How does it enforce this Philosophy and adapt to different environments? Be 1st in a market & establish your brand by advertising heavily. McD also gives emphasis to Quality , Service, Cleanliness and Value. They maintain close contact with customers , provide them quality products and fast service. To enforce this philosophy they have set standards, layout of an outlet , tied up with universities to train employees to maintain standards.

25. They adapted to different environments by proper environment scanning about the place, people and local market. Advertising campaigns are based local theme and reflect the different environments.

26. Should McD expand its menu? Yes or No? Why? Yes, McD should expand its menu. Firstly, they should consider the country’s eating habits and laws. As per the current situation people are more health concise and are avoiding fast food. So addition of healthy foods to the menu can target them as well. Secondly, a customer may become tired of the same menu; additions to the menu can keep the customer expectant.

27. Why McD is successful in many countries around the world? The marketing strategy of McD is based on uniformity. They have different strategies for different countries based on the local market. They do proper environment scanning about the country, population, local taste and preferences of local market before entering into the market. So proper planning yields good results.

28. A McD advertisement!

29. THANK YOU