Mcdonald Case Study


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Mcdonald Case Study

  1. 1. 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
  2. 2. • 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”….
  3. 3. 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
  4. 4. • 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 “
  5. 5. 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.
  6. 6. • 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 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.
  7. 7. Expansion Strategy