Presentation on McDonald's Pakistan

Name of the organization

Group Members

Hasan Bin Ijaz (10012)

Hamid Nazir (10114)

M.Zohaib Azhar (01042)

Zaigham (01039)

Introduction McDonald's is the leading global foodservice

retailer

McDonald’s have more than 30,000 local restaurants

McDonald’s serving nearly 50 million people in more than 121 countries each day

Introduction

McDonald’s started its operation in Pakistan in 1998

All the franchises of McDonalds in Pakistan are owned by Lakson Group of Companies.

McDonald's Mission Statement

"McDonald's Mission is to be the world's best quick service restaurant experience. Being the best means providing outstanding quality, service, cleanliness and value, so that they make every customer in every restaurant smile.”

McDonald’s Vision Statement McDonald’s vision is to make every

customer in every store smile. This is a vision which may be easy to acquire through other ways but to do it professionally is a totally different thing.

Objectives

Corporate Objectives

Long Term Objectives

Corporate Objectives

To serve good food in a friendly and fun environment

To provide good returns to its shareholders

To provide its customers with food of a high standard, quick service and value for money 

Marketing objectives

A marketing plan must be created to meet clear objectives.

Results can be analyzed regularly to see whether objectives are being met.

Once marketing objectives are set the next stage is to define how they will be achieved

Long Term Objectives

McDonald’s vision is to be the world’s best quick service restaurants experience.

McDonalds is committed to maintaining and developing the best food products in the quick service restaurant market.

In order to deliver this, the company has made a number of commitments to food safety and nutrition.

Summary Of Situation Analysis

Internal Strengths Internal Weaknesses External Opportunities External Threats

Internal Strengths

Products

Brand Recognition

Good communication and friendly environment

Partnership with Coca Cola & telecom companies

Internal Weaknesses

Product Variety

More Advertising

Drive Through

External Opportunities

Reasonable Prices

Opportunity to be Innovative

Breakfast and Special Noon Meals

External Threats

More health conscious customers

Foreign as well as local competitors

Changing customer styles

Macro Environment

Political environment Economical environment Socio-cultural environment Technological environment

Political Environment

Government policies

Paying of different taxes

McDonald’s enjoys an added advantage in countries where consumer protection laws are not very strong

Economical Environment

Most of the people in Pakistan fall in the category of middle class

People consider McDonald's as a luxury to go and eat there

Socio-cultural Environment

When McDonalds entered the Pakistani market people were not very much into fast food

The rapid change of way of life which is very quick now as everyday people are running out of time.

Technological Environment

McDonalds’s introduced new food production techniques in Pakistan

Food made with the help of machines is considered more hygienic

McDonalds to be updated regularly

Market Analysis

Market definition Market size Market segmentation Countries with McDonalds Competition & Market share

Market Definition

Serving billions of various types of burgers has put a shine on this company

McDonald's is the world's #1 fast-food company by sales, with about 32,000 restaurants serving burgers and fries in about 121 countries

Market Size

In local market McDonalds is operating in these cities:

Karachi Hyderabad Faisalabad Lahore Rawalpindi Islamabad

Market Segmentation

McDonald’s uses demographic segmentation strategy with age as the parameter. The main target segments are children, youth and the young urban family.

Countries With McDonald’s

Competition

The major competition in local market faced by McDonalds is from Kentucky Fried Chicken (KFC)

Factors That Contribute Towards a Competition Are

Price

Quality of Food

Flavour

Outlets

$

Market share

McDonalds30%

KFC35%

Pizza Hut17%

Subway6%

Others12%

Sales

Current Situation – Internal 

Company resources

Financial

People

Time

Skills

Financial

Fiscal Year End: December Revenue (2008): 23522.40 M Revenue Growth (1 yr): 3.20% Employees (2008): 400,000 Employee Growth (1 yr):2.60%

People

McDonald’s understands the value of both its employees and its customers

It understands the fact that a happy employee can serve well and result in a happy customer

The level of importance has changed to be in the following order

Customers

Front line employees

Middle level managers

Front line managers

Time

Customer waiting at the queues to place order

Customer waiting time

Customer waiting time at the drive through

Customer waiting for home delivery

Skills

At McDonalds educated young individuals are trained at operational as well as international level

Bench marks are set for individuals to meet on a periodic basis

Team work which is the key to success in this business

Marketing Strategies

Product Price Place Promotion

Product

Wide variety of menu items

Local flavors

Regularly renewing the menu

BCG Analysis

Pricing Strategies

Product Line Pricing Promotional Pricing Penetration Pricing Value Pricing

Product Line Pricing

Their Value Meals fall into the category of Product Line Pricing

Promotional Pricing

McDonalds always offer some sort of promotional pricing.

Penetration Pricing

Marketing campaign in order to gain some market share in the industry

Value Pricing

“This approach is used where external factors such as recession or increased competition force companies to provide 'value' products and services to retain sales.”  

Place

There are total 24 fast food outlets of McDonald’s in Pakistan, and they all are located in famous areas. So far McDonald’s is only in Karachi, Hyderabad, Lahore, Faisalabad, Rawalpindi and Islamabad In future, very soon planning to expand in many cities in Pakistan.

Promotion

I’m lovin’ it campaign to attract family

Feature artists to target teenagers

The right message has to be communicated to the right audience through the right media.

Marketing Communication

Mix

Advertising

Public Relations

Direct Marketing

Sales Promotion

Financial Summary

Balance Sheet Income statement

Scenarios

Economic Slowdown Health Conscious attitude of People Increased Competition

Any Questions

THANK YOU