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Mcdonald Case Study
1.
2. Name
McDonald's Corporation
Industries served
Restaurants, Food
Geographic areas served Worldwide
Headquarters
McDonald's Plaza, located in Oak
Brook, Illinois
Current CEO
Don Thompson
Revenue
$ 27.56 billion (2012)
Profit
$ 5.46 billion (2012)
Employees
1,800,000
Main Competitors
Burger King ,KFC, Subway , Taco Bell ,
Wendy’s Company etc
3. • Vision- To be the best & leading fast food providers
around the globe.
• Mission- Customer’s favorite place and way to
eat, and improve their operations to provide the
most delicious food that meet customer’s
expectations.
Values- summarized in “Q.S.C & V” form.
Q high Quality products
S fast & friendly Service
C Cleanliness
V The value of food product makes “total
experience”… great food, friendly folks, a clean
environment, quick & accurate service & fun”….
4.
5. Strength
•
Largest fast food market share in
the world
•
Brand recognition valued at $40
billion
•
$2 billion advertising budget
•
Locally adapted food menus
•
Partnerships with best brands
More than 80% of restaurants are owned
by independent franchisees
•
Children targeting
Weaknesses
•
•
•
•
•
Opportunities
•
•
•
Increasing demand for healthier
food
Home meal delivery
Changing customer habits and
new customer groups
Negative publicity
Unhealthy food menu
Mac Job and high employee
turnover
McDonalds failed to offer pizza
because it is less able to compete
with pizza fast food chains.
Horse meat scandal publicity
Threats
•
•
•
•
Saturated fast food markets in the
developed economies
Trend towards healthy eating
Local fast food restaurant chains
Currency fluctuations
•
Lawsuits against McDonald’s
6. • Segmentation, Targeting and positioning
model of Mcdonalds
•
•
•
McDonalds has done its segmentation on three different bases:
1. Demographic Segmentation: Kids, Family and Students
Happy Meal which includes a free toy for kids. Free Wi-FiFor Customers.
suitable for students to hang out with their friends .
Psychographic segmentation: Convenience and lifestyle –
In India, there are no Big Macs because the Hindu people don’t eat beef.
However, they have the Maharaja Mac, which is a Big Mac made of lamb or
chicken meat. There is also a vegetarian burger, the McAloo Tikki.
Behavioral segmentation: Occasions, for e.g. Birthday Parties of kids
Targeting- Initial focus on Metros(Malls,Multiplex,Airport,Station
etc ).Then came in small towns and targeted middle class people.
Introduced cheap items.
Positioning-
“McDonalds
as a place for all “
7. Marketing Mix of Mcdonalds
Product :- McDonald’s places considerable emphasis on developing
a menu which customers want. In order to meet these changes,
McDonald’s has introduced new products and phased out old ones,
and will continue to do so. McDonaldsstudied the behaviour of the
Indian customer and provided a totally different menu ascompared
to its International offering. It dropped ham, beef and mutton burgers
from themenu. India is the only country where McDonalds serve
vegetarian menu
.
• Place: Place, as an element of the marketing mix, is not just
about the physical location or distribution points for products. It is
important so that the product isavailable to the customer at theright
place, at the right time and in the right Quantity. Nearly 50% of
U.S.A.'s population living within a 3 minute drive from a
McDonald’s outlet.
8. • Price:- Mc Donalds follows Value pricing as it offers its
products at a much cheaper rate as compared to its
competitors like KFC,Wendy’s etc.
It also uses bundling strategy by offering combo packs to increase
overall sales.in combination with competitive pricing.
McDonald’s came up with a very catchy punch line in
India“Aap ke zamane mein ,baap ke zamaneke daam”. This was to
attract the middle and lower class consumers and the effect can
clearly be seen in the consumer base McDonalds has now.
• Promotions:- There are three main objectives of
advertising for McDonald’s are to make people aware
of an item,feel positive about it and remember it.