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Im Lovin itStrategic and Change
Management
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SEGi University
For Miss Malathi
Group Members
Kabiru Ahmed ShahirEddy Lim Song Chia
Wan Adib Akmal
Muhammad HidayatulahAhmed Abd-aldaem
Abu
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Company Background McDonalds the global fast food giant starting off as a single
small restaurant in 1940 by two brothers Richard and Maurice
also known as Dick and Mac opened a small driver-in eatery in
San Bernardino ,California .
The brothers brought a game changer again putting FAST in the
word fast food they reinvented their restaurant using their speedy
service system in 1948 .
In late 70s the 3000th McDonalds restaurant was opened in
Woolwich (south east London) in October the first in the UK.
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Company Background
The company admitted that NOBODY went in and Kroc
believed advertising was a worthwhile investment that
would ultimately reap dividends later decided to target
children with TV ads
today McDonalds has invested the concept of fast-food
restaurant and has more than 31,000 franchises in 199
countries and serves almost 47 million customers a day,but this success story like every other started somewhere
and by someone
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General Environment
General environment broad external conditions that may
affect the organization.
1. Economic:
it includes the impact of economic factors such as interest
rates, inflation , changes in disposable income and the stageof general business cycle.
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General Environment
2. Political/Legal:
federal, state and local government influence what
organization can and cannot do.
3. Sociocultural:
mangers must adapt their practices to the changing
expectations of the society
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General Environment 4.Demographical
trends in the physical characteristics of population such as
gender, age , level of education ,income, geographical location
5. Technological
is changing the ways the organisations are operating, so business
must address this issue and its impact on performance of
organization.
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Question B
Kabiru
Eddy
Hidayat
Evaluation on the influence of the
organizations general environment and
international strategies
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In t e rna t iona l S t r a t egy
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General Environment
The forces within the general environment, including politic
legal, economic, technological, socio cultural and international
forces,
To analyze the current status of McDonalds corporation, we
chose to use the PEST method to evaluate the followingcategories
P Political
E Economic
S SocialT Technological
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PoliticalEcological/environmental issue
Fast food industry giants such as Wendy's, Pizza Hut, and
McDonalds are some of the largest consumers of paper
products in the US. "Every year millions of pounds of
food packaging waste litter our roadways, clog our
landfills and spoil our quality of life.
The increasing interest in protecting natural resources and
preserving ecological balance
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EconomicalMcDonalds must consider economic challenges when expandinginternationally.
Low set up costs = rapid expansion
One of the challenge for fast food industry is that to keep the
price is low for the customer.
Franchising facilitates set ups
McDonalds corporation provides financing assistance and
training for new franchise owners to manage cash flow andkeep businesses profitable.
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Social Cultural McDonalds was face with health carges on the oil they
use and fries
Customers now opted for more healthier options like
subway which offered more of a variety for healthconscious customers
McDonald's faced cultural problems in entry in to most
countries in Asia such as India, Japan and Malaysia.
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Social CulturalTo ease customers concern about health issues, McDonalds hasmade changes to the following;
McDonalds changed its image vastly by evaluating the current
menu and making changes to it from using organic products torevising the whole menu entirely by offering salads andvegetarian burgers.
McDonalds serves a range of high-quality foods that can fitinto a balanced diet. The accurate and accessible nutritioninformation help guests make informed menu choices
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Technological
McDonalds has taken advantage of technology to streamline theirprocesses and improve efficiency.
Mobile Application You To Place Order At McDonalds Via mobile
The customers can place their order directly from their tables, dubbedas Touch Order. Its the first self-ordering system in the world touse
McDonalds has also implemented technology to improve supply
chain management, and allows customers to access this informationto make more informed decisions about what they eat.
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Global Strategy
Recent years have seen McDonalds
adapt to local regions by remodeling its
retail space while changing the product
line to appeal to local tastes
McDonalds may be able to cater to
local tastes as long as it focuses on its
core competency of fast food.
Global panthers Coca-Cola and
Olympic
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Global Strategy India
locally focused menu choices (using lamb meats
instead of beef meat keeping the religious sentiments of
most Indians)
McDonalds in India has specific menu items
For the vegetarian market (50% veg items)
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Strategy in Europe
McDonalds even further away from its core competency of
fast food.
In Europe, unfortunately, McDonalds is straying from its fastfood roots. In an effort to compete with coffee shops like
Starbucks, McDonalds is turning the restaurant space more
upscale and comfortable
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Strategy in China While offering the basic burger and fries, McDonalds in
China also offers:
Szechuan-style spicy chicken wings
Seafood Soup
Rice
Oriental Sauces
Taro and Red Bean Dessert
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Strategy In Malaysia Applying the Balance active life in
Malaysian market
The Halal Logo (no pork)
Double Cheeseburger, Spicy Chicken
McDeluxe and McChicken.
A new twist of the Triple
Cheeseburger the Double Spicy
Chicken McDeluxe , Double
McChicken and the MEGA MAC
Currently seasonal menu ( Beef and
Chicken Prosperity Burger )
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Recommendations
More Healthy Choices
Locally focused menu choices in certain countries Increase presence in Asian and African countries
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Thanks for listeningAny questions??
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Okay, I have a question
for you All
Do you feel that McDonalds foodcan be consumed every time or is
it unhealthy and toxic, or is it
more like a treat to be enjoyed onoccasion?
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The END