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Mc donald

  2. 2. 2 COMPANY PROFILE McDonald’s corporation – companyprofile, information,business Description,history,Background Information on McDonald’s corporation. Company Perspectives: McDonald‟s is the world‟s leading food service organization. We generate more than $40 billion in system wide sales. We operate over 30,000 restaurants in more than 100 countries on six continents .We have benefits that come with scale and a strong financial position. We own one of the worlds‟ most recognized and respected brands. We have an un-parallel global infrastructure and competencies in restaurant operations,real estate, retailing, marketing and franchising. We are a leader in the area of social responsibility .we actively share our knowledge and expertise infood safety and are committed to protecting the environment for future generations. Yet,we have not achieved our growth expectation for the past several years.So,our challenge is to leverage our
  3. 3. 3 strength to profitably serve more customers more ways more often. History of McDonald’s corporation. Since its incorporation in 1955,McDonald‟s corporation has not only become the world largest quick-service restaurant organization, but has literally changed American‟s eating habits and increasingly the habits if non-Americans as well. On an average day, more than 46 million people eat at one of the company‟s more than 31,000 restaurant,which are located in 119 countries on six continents. About 9,000 of the restaurant are company owned and operated;the remainder is run either by franchisees or through joint venture with local business people. System wide sales (which encompass total revenue from all three types of Restaurants)total more than $ 46 billion in 2003, nine major market Australia,Brazil,Canada,China,France,Germany,Japan,Th e United Kingdom,and the United States accounts for 80 percent of the restaurants and 75 percent of overall sales. The vast majority of the company‟s restaurants are of the flagship McDonald‟s hamburger joint variety .Two other wholly owned chains,Boston
  4. 4. 4 market(rotisseriechicken)and chipotle Mexican grill(Mexican fast casual),along with Pert a manager(upscale prepared sandwiches),in which McDonald‟s owns a 33 percent stake,account for about 1000 of the units. Early History In 1954 Ray Kroc, a seller of Multimixer milkshake machines, learned that brothers Richard and Maurice (Dick and Mac of was piqued his high tech Multimixers)McDonald‟s were using Bernardino, California eight in their San and he went to San to take a look at the McDonald‟s restaurant. The McDonald‟s had been in the restaurant business since the 1930s. In 1948 they closed down a successful carhop drive in to establish the streamlined operation Ray Kroc saw in 1954. The menu was simple: hamburgers, cheese burgers, French fries,shakes, softdrinks, and apple pie. Thecarhops were eliminated to make McDonald‟s a self- serveoperation, and there were no tables to sit at, nojukebox, and no telephone. As a result, McDonald‟s attracted families rather than teenagers. Perhaps the most impressive aspect of the restaurant was the efficiency with
  5. 5. 5 which the McDonald‟s workers did their jobs. Mac and Dock McDonald had taken great care in setting up theirkitchen. Each worker‟s steps had been carefully choreographed, like an assembly line,to ensure maximum efficiency. The saving in preparation time,and the resulting increase in volume,allowed the McDonalds to lower the price of a hamburger from 30 cents to 15 cents. Believing that the McDonald formula was a ticket to success, Kroc suggested that they franchise their restaurants throughout the country. When they hesitated to take on this additional burden, Kroc volunteered to do it for them. He returned to his home outside of Chicago with rights to set up McDonald‟s restaurants throughout the country, exceptin a handful of territories in California and Arizona already licensed by the McDonald brothers. Kroc‟s first McDonald‟s restaurant opened in Des Plaines, Illinois near Chicago, on April 15 ,1955 the same year that Kroc incorporated his company as McDonald‟s corporation. As with any new venture, Kroc encounter a number of hurdles. The first was adapting the McDonald‟s building design to a northern climate.A basement had to be installed to house a furnace, and adequate ventilation was difficult, as exhaust fans sucked
  6. 6. 6 out warm air in the winter, and cool air in the summer. Most frustrating of all, however, was Kroc‟s initial failure to reproduce the McDonald‟s delicious French fries. When Kroc and his crew duplicated the brother‟s method leaving just a little peel for flavor, cutting the potatoes into shoestring and rinsing the strips in cold water the fries turned into mush. Afterrepeated telephone conversation with the McDonald brothers and several consultations with the potato and onion association,Kroc pinpointed the cause of the soggy spuds.The McDonald brothers stored their potatoes outside in wire bines,and thewarm California breeze dried them out and cures them,slowly turning the sugars into starch.In order to reproduce the superior taste of these potatoes, Kroc devised a system using an electric fan to dry the potatoes in a similar way .He also experimented with a blanching process. Within three months he had a French fry that was, in his opinion, slightly superior in taste to the McDonald brother‟s fries. Once the Des Plaines restaurant was operational,Kroc sought franchisees for his McDonald‟s chain. The first snag came quickly .In 1956 he discovered that the McDonald brothers had licensed the franchise rights for cook county, Illinois (home of Chicago and many of its
  7. 7. 7 suburb)to the Frejlack Ice cream company. Kroc was incensed that the McDonalds had not informed him of this arrangement. He purchased the rights back for $25,000 five times what the Frejlacks had originally paid and pressed forward. Kroc decided early on that it was best to first establish the restaurants and then to franchise them out, so that he could control the uniformity of the stores. Early McDonald‟s restaurants were situated in the suburbs. Corner lots were usually in greater 100. Kroc had decided at the outset that McDonald‟s would not be a supplier to its franchisees his background in sales warned him that such an arrangement demand because gas station and shops competed for them, but Kroc preferred lots in the middle of blocks to accommodate his U-shaped parking lots. Since these lotto were cheaper, Kroc could give franchisees a price break. McDonald‟s grew slowly for its first three years; by 1958 there were 34 restaurants. In 1959, however, Kroc opened 67 new restaurants, bringing the total to more than could lead to lower quality for the sake of higher profits. He also had determined that the company should at no time own more than 30 percent of all McDonald‟s restaurants.
  8. 8. 8 He knew, however, that his success depended upon his franchisees success, and he was determined to help them in any way that he could. In 1960 the mc Donald advertising campaign look for the golden arches gave sales big boost. Kroc believed that advertising was an investment that would in the end come back many times over , and advertising always plays a key role in the development of the mc Donald corporation-indeed, McDonald‟s ads have been some of the most identifiable over the years in 1962 mc Donald‟s replaced its speedy the hamburger man symbol which is now world famous golden arches logo ,a year later the company sold its billionth hamburger and introduced Ronald McDonald ,a red hair clown with particular appeal for children. Phenomenal growth in the 1960’s and 1970’s In the early 1960‟s McDonald‟s really began to take off. The growth in US automobile use that came with suburbanization contributed heavily to McDonald‟s success. In 1961 Kroc bought out the McDonald brother s for 2.7$ million, aiming at making McDonald‟s the number one fast food chain in the country .
  9. 9. 9 In 1965 McDonald‟s corporation went public. Common shares were offered at 22.50$ per share; by the end of first day‟s trading the price had shot up $30. A block of 100 shares purchased for 2,250 in 1956 was worth , after 12 stock splits(increasing the number of shares to 74360) about 1.8$ million by the end of 2003. In 1985 McDonald‟s corporation became one of the 30 companies that make up the dow jones industrial average McDonald‟s success in the 1960s was in large part due to the company‟s skillful marketing and flexible response to customer demand. In 1965 the filet-o-fish sandwich, billed as “the fish that catches people “was introduced in McDonald‟srestaurants. The new item had originally met with disapproval fromKroc, but after its successful test marketing, he eventually agreed to add it. Anotheritem that Kroc had backed a year as a “hula burger” had flopped. The market was not quite ready for Kroc‟s taste; the hula burger„s tenure on the McDonald‟s menu board was short. In 1968 the now legendary Big mac made its debut, and in 1969 McDonald„s sold its five billionth hamburger a year later, as it launched the “you deserve a break today” advertising campaign, McDonald‟s restaurants had reached all 50 states.
  10. 10. 10 In 1968 McDonald‟s opened its 1000th restaurant and Fred turner became the company‟s president and chief administrative officer. Kroc became chairman and remained CEO until 1973. Turner had originally intended to open a McDonald‟s franchise, but when he had problems with his backers over a location, he went to work as a grill man for Kroc in 1956. As operations vice president, turner helped new franchise, get their stores up and running. he was constantly looking for new ways to perfect the McDonald‟s system, experimenting, for example, to determine the maximum number of hamburger patties one could stack in a box without squashing them and pointing out that seconds could be saved if McDonald‟s used buns that were presided all the way through and were not struck together in the package .Such attention to detail was one reason for the company‟s extraordinary success. McDonald‟s spectacular growth continued in the 1970s .American were more on-the-go than ever, and fast service was a priority. In 1972 the company passed $1billion in annual sales; by 1976, McDonald‟s had served 20 billion hamburgers, and system wide sales exceeded $3 billion.
  11. 11. 11 McDonald‟s pioneered breakfast fast food with the introduced of the egg McGuffins in 1973 when market research indicated that a quick breakfast would be welcomes by customers. Five years later the company added a full breakfast line to the menu, and by 1987 one – fourth of all breakfasts eaten out in the United States came from McDonald‟s restaurants Kroc was a firm believer in giving “something back into the community where you do business.” In 1974 McDonald‟s acted upon that philosophy in an original way by opening the first Ronald McDonald House, in Philadelphia, to provide a “home away from home” for the families of children in nearby hospitals. Twelve years after this first house opened, 100 similar Ronald McDonald houses were in operation across the United States. In 1975 McDonald‟s opened its first drive-thru window in Oklahoma City. This service gave Americans a fast, convenient way to procure a quick meal. The company‟s goal was to provide service in 50 seconds or less. Drive- thru sales eventually accounted for more than half of McDonald‟ssystem wide sales eventually accounted for
  12. 12. 12 more than half of McDonald‟s system wide sales. Meantime, the happy meal, a combo meal for children featuring a toy, was added to the menu in 1979. Surviving the 1980’s “burger wars” In the late 1970‟s competition from other hamburger chains such as burger king and Wendy‟s began to intensify. Experts believed that the fast-food industry had gotten as big as it ever would, so the companies began to battle fiercely for market share. A period of aggressive advertising campaigns and price slashing in the early 1980‟s became known as the “burger wars”. Burger king suggested that customers “have it their way”; Wendy‟s offered itself as the “fresh alternative” and asked of other restaurants, “where‟s the beef ? ” but McDonald‟s sales and market share continued to grow . Consumers seemed to like the taste and consistency of McDonald‟s best During the 1980‟s McDonald‟s further diversified its menu to suit changing consumer‟s tastes. Chicken McNuggets were introduced in 1983, and by the end of the year McDonald‟s was the second largest retailer of chicken in the world. In 1987 ready-to eat salads were in traduced to lure more health-conscious consumers.The
  13. 13. 13 1980s were the fastest –paced decade yet. Efficiency, combined with an expanded menu, continued to draw customers. McDonalds already entranced in the suburbs began to focus on urban centers and introduce new architectural styles. Although McDonald‟s restaurants nolonger look identical, the company made sure food quality and service remained constant Despite expert‟s claims that the fast food industry was saturated,McDonalds continue to expand. The first generation raised on restaurant food had grown up. Eating out had become a habit rather than a break in the routine ,and McDonalds relentless marketing continue to improve sales ,innovative promotions such as the when the us wins ,you wins give away during the Olympics games in 1988,were a huge success In 1982, Michael r Quinland became president of McDonalds Corporation and Fred turner became chairman.Quinland,who took over as CEO in 1987 had started as McDonalds at male room in 1963,and gradually worked his way up. The first McDonald CEO to hold an M.B.A degree, Quinland was regarded by his colleague‟s as shrewd competitor. In his first year as CEO the company opened 600 new restaurants
  14. 14. 14 McDonalds growth in the united states was mirrored by its stunning growth in abroad .by 1991, 37% of the systems wide sales came from restaurants outside the united states.McDonalds opened its first foreign restaurant in Britain Columbia, Canada, in the early 1990‟s the company had established itself in 58 foreign countries and operated more than 3600 restaurants outside the united states,through holy opened subsidiaries, joint ventures,franchiseesagreements. Its strongest foreign markets were japan,Canada,Germany, Australia,and France. In the mid 1980‟s, McDonalds,like other traditional employers of teenagers was faced with the shortage of labour in the United States. The company met this challenge by being the first to entice retirees back to the work force .McDonald‟s plays great emphasis on effecting training .it opened its hamburger university in 1961 to train franchisees and corporate decision makers .By 1990,more than 40000 people had received bachelors of hamburger logy degrees from the 80 acre oak brook, Illinois facility. The corporation opened a hamburger university in Tokyo in 1971, inMunich 1975 and in London 1982.
  15. 15. 15 Braille menus were first introduced in 1979, and picture menus in 1988.In march 1992 braille and picture menus were re-introduced to acknowledge the 37 million Americans with vision,speech or hearing impartments. Quinlan continued to experiment with new technology and to research new markets to keep McDonalds in front of its competition.Clamshell fryers,which cooked both sides of hamburger simultaneously,were tested.New locations such as hospitals and military bases were tapped for new response to the increase in microwave oven usage, McDonald‟s,whose name in the singlemost advertised brand name in the world, stepped up advertising and promotional expenditures stressing that its taste was superior to quick-packaged foods. McRecycle USA began in 1990 and included a commitment to purchase at least $100 million worth of recycled products annually for use in construction, remodeling and equipping restaurants.Chairs,table bases,table tops, eating counters,table columns, waste receptacles,corrugated cartons,packaging, and washroom tissue were all made from recycled products. McDonalds worked with the U.S. environmental defense fund to develop a comprehensive solid waste reduction program.
  16. 16. 16 Wrapping burgers in paper rather than plastic led to a 90 percent reduction in wrapping material waste stream. 1990s Growing Pains It took McDonald‟s 33 years to open its first 10,000 restaurants the 10,000th unit opened in April 1988.Incredibly,the company reached the 20,000 restaurant mark in only eight more years,in mid-1996.By the end of 1997 the total had surpassed 23,000 by that time McDonald‟s was opening 2,000 new restaurants each year an average of one every five hours. Much of the growth of the 1990s came outside the United States,with international units increasing from about 3,600 in 1991 to more than 11,000 by 1998.The number of countries with McDonald‟s outlets nearly doubled from 59 in 1991 to 114 in late 1998 .In 1993 a new region was added to the empire when the first McDonald‟s in the Middle East opened in Tel Aviv,Israel .As the company entered new markets,it showed increasing flexibility with respect to local food preferences and customs.In Israel,for example,the first Kosher McDonald‟s opened in a Jerusalem suburb in 1995 .In Arab countries the restaurant chain used “Halal” menus,which complied with
  17. 17. 17 Islamic laws for food preparation .In 1996 McDonald‟s entered India for the first time,where it offered a Big Mac made with lamb called the Maharaja Mac.That same year the first Muskie-thru opened in Lindvallen,Sweden. Overall,the company derived increasing percentages of its revenue and income from outside the United States .In 1992 about two-third of system wide sales came out of U.S McDonald‟s ,but by 1997 that figure was down to about 51 percent.Similarly,the operating income numbers showed a reduction from about 60 percent derived from the United States in 1992 to 42.5 percent in 1997. In the United States ,where the number of unites grew from 9,000 in 1991 to 12,500 in 1997 an increase of about 40 percent the growth was perhaps excessive.Although the complained that new units were cannibalizing scale from existing ones. Same store scale for outlets open for more than one year and the mature nature of the U.S. market. It did not help that the company made several notable blunders in the United States in the 1990s.The McLean Deluxe sandwich,which featured a 91 percent fat-free beef patty ,was introduced in 1991 ,never really caught on and was dropped from the menu in 1996.Several other
  18. 18. 18 1990s debuted menu items including fried chicken,pasta,fajitas,and pizza failed as well.The “grown- up”(and pricey)Arch Deluxe sandwich and the Deluxe line were launched in 1996 in a $200 million campaign to gain the business of more adults,but were bombs.The following spring brought a 55 cent Big Mac promotion,which many customers either rejected outright or were confused by because the burger had to be purchased with full-priced fries and a drink.The promotion embittered still more franchisees,whose complaints led to its withdrawal.In July 1997 McDonald‟sfroed its main ad agency Leo Burnett,15-year McDonald‟s partner after the nostalgic “My McDonald‟s” campaign proved a failure.A seemingly weakened McDonald‟s was the object of a burger King Offensive when the rival fast-food maker launched the Big king sandwich, a Big Mac clone.Meanwhile,internal taste tests revealed that customers preferred the fare at Wendy‟ and Burger King. In response to these difficulties,McDonald‟s drastically cut back on its U.S. expansion in contrast to the 1,130 units opened in 1995,only about 400 newMcDonald‟s were built in 1997.Plans to open hundreds of smaller restaurants in Wal-Mart and gasoline station were
  19. 19. 19 abandoned because test sites did not meet targeted goals.Reacting to complaints from franchisees about poor communication with the corporation and excess bureaucracy,the head of McDonald‟s U.S.A(Jack Greenberg,who had assumed the position in October 1996)reorganized the unit into five autonomous geographic divisions.The aim was tobring management and decisionmaking closer to franchisees and customers. On the marketing side,McDonald‟s scored big in 1997 with a Teenier Beanie baby promotion in which about 80 million of the toys/collectibles were gobbled up virtually overnight.The chain received some bad publicity,however,when it was discovered that a number of customers purchased happy meals just to get the toys and threw the food away.For a similar spring 1998 Teenie Beanie givesaway,the company altered the promotion to allow patrons to buy menu items other than Kids meals. McDonald‟s also began to benefit from a ten-year global marketing alliance signed with Disney in 1996.Initial Disney movies promoted by McDonald‟s included 101 Dalmatians,Flubber,Mulan,Armageddon,and A bug‟s life.Perhaps the most important marketing move came in the later months of 1007 when McDonald‟s named BDD Needham as its new lead ad agency.Needham had been
  20. 20. 20 the company‟s agency in the 1970s and was responsible for the hugely successful “you deserve a Break Today” campaign .Late in 1997 McDonald‟s launches the Needham-designed “did somebody say McDonald‟s?” Campaign, which appeared to be an improvement over its predecessors. A Failed Turnaround:Late 1990s and Early 2000s Following the difficulties of the early and mid-1990s, several moves in 1998 seemed to indicate a reinvigorated McDonald‟s. In February the company for the first time took a stake in another fast-food chain when it purchased a minority interest in the 16-unit,Colorado-based chipotle Mexican grill chain.The following month came the announcement that McDonald‟s would improve the taste of several sandwiches and introduce several new menu items;McFlurry desserts developed by a Canadian franchisees proved popular when launched in the United States in the summer of 1998.McDonald‟s that same month said that it would overhaul its food preparation system in every U.S. restaurant .The new just in time system ,dubbed “made for you “was in development for a number of years and aimed to deliver to customers “fresher, hotterfood”; enable Patrons to receive special-
  21. 21. 21 order sandwiches(a perk long offered by rivals Burger King and Wendy‟s); and allow new menu items to be more easily introduced thanks to cost about $25,000 per restaurant, with McDonald‟s offering to pay for about half of the cost; the company planned to provide about $190 million in financial assistance to its franchisees before implementation was completed by year end 1999. In May 1998 Greenberg was named president and CEO of McDonald‟s corporation, with Quinlan remaining chairman; at the same time Alan D.Feldman, who had joined the company only four years earlier from Pizza Hut, replaced Greenberg as President of McDonald‟s U.S.A an unusual move for a company whose executives typically were long–timers. Also during 2001, McDonald‟s sold off Aroma café and took its McDonald‟s Japan affiliate public, selling a minority stake through an initial public offering. As it was exploring new avenues of growth, however, McDonald‟s core hamburger chain had become plagued by problems. Mostprominently, the Made for you system backfired. Although many franchisees believed that it succeeded in improving the quality of the food, it also increased service times and proved labor-intensive. Some
  22. 22. 22 franchisees also complained that the actual cost of implementing the system ran much higher than the corporation had estimated, a charge that McDonald‟s contested .In any case, there was no question that Made for you failed to reverse the chain‟s sluggish sales. Growth in sales at stores open more than a year (known as same-store sales)fell in both 2000 and 2001.Late in 2001 the company launched a restructuring involving the elimination of about 850 positions,700 of which were in the United States ,and some store closings. There were further black eyes as well .McDonald‟s was sued in 2001 after it was revealed that for flavoring purposes a small amount of beef extract was being added to the vegetables oil used to cook the French fries . The company had cooked its fries in beef tallow until 1990, when it began claiming in ads that it used 100 percent vegetable oil. McDonald‟s soon apologized for any “Confusion” that hadbeen caused by its use of the beef flavoring, and in mid-2002 it reached a settlement in the litigation, agreeing to donate $10 million to Hindu,vegetarian,and other affected groups. Also in 2001, further embarrassment came when 51 people were charged with conspiring to rig McDonald‟s game
  23. 23. 23 promotions over the course of several years. It was revealed that $24 million of winning McDonald‟s game tickets had been stolen as part of the scam. McDonald‟s was not implicated in the scheme, which centered on a worker at an outside company that had administered the promotions. McDonald‟s also had to increasingly battle its public image as a purveyor of fatty, unhealthful food. Consumes began filing lawsuits contending that years of eating at McDonald‟s had made them overweight.McDonald‟s responded by introducing low-calorie menu item and switching to a more healthful cooking oil for its French fries. McDonald‟s franchises overseas became a favorite target of people and groups expressing anti-American and/or ant globalization sentiments. In August 1999 a group of protesters led by farmer Jose Bove destroyed a half-built McDonald‟s restaurant in Millau, France. In 2002 Bove, who gained fame from the incident, served a three-month jail sentence for the act, which he said was in protesters against a world Trade Organization (WTO) meeting taking place there. In the early 2000s McDonald‟s pulled out of several countries, including Bolivia and two Middle Eastern nations, at least in part
  24. 24. 24 because of the negative regard with which the brand was held in some areas. Early in 2002 Cantalupo retired after 28 years of service. Sales remained lackluster that year, and in October the company attempted to revive U.S.Sales through the introduction of a low-cost DollarMenu. In December 2002, after this latest initiative to reignite sales growth failed and also after profits fell in seven of the previous eight quarters Greenberg announced that he would resign at the end of the year.Cantalupo came out of retirement to become and CEO at the beginning of 2003. Launching of Revitalization Plan under New Leadership in 2003 Cantalupo started his tenure by announcing a major restructuring that involved the closure of more than 700 restaurants (mostly in United States and Japan),the elimination of 600 jobs, and charges of $853 million. The charges resulted in a fourth-quarter 2002 loss of $343.8 million the first quarterly loss in McDonald‟s traditional reliance on growth through the opening of new units to a focus on gaining more sales from existing units.To that end, several new menu items were successfully launched, including entrée salads,McGriddles breakfast sandwiches
  25. 25. 25 (which used pancakes in place of bread), and white-meat chicken McNuggets. Some outlets began test-marketing fruits and vegetables as Happy Meal options.Backing up the new products was the launch in September 2003 of an MTV-style advertising campaign featuring the new tag line, “I‟m loving it”.This was the first global campaign in McDonald‟s history ,as the new slogan was to be used in advertising in more than 100 countries.It also proved to be the first truly successful ad campaign in years;sales began rebounding,helped also by improvements in service. In December 2003, for instance,same-store sales increased 7.3 percent.Same-store sales rose 2.4 percent for the entire year,after falling 2.1 percent in 2002. Principal Subsidiaries: McDonald‟s Deutschland,Inc.; McDonald‟s restaurant operation Inc.;McG Development co.; chipotle Mexican Grill,Inc.;Boston Market Corporation ;McDonald‟s Franchise GmbH (Austria);McDonald‟s AustraliaLimited; McDonald‟s France, S.A.;MDC Inmobiliaria de Mexico S.A de C.V.;McDonald‟s Restaurants Pvt.,Ltd.(Singapore); Restaurants McDonald‟s S.A.(Spain);McKim Company Ltd.(South Korea);Shin Mac Company Ltd. (South Korea);McDonald‟s
  26. 26. 26 Nederland B.V. (Netherlands);Moscow-McDonald‟s (Canada);McDonald‟s Restaurants Limited ( U.K.). Principal competitors: Burger King Corporation; Wendy‟s International, Inc.;CKE Restaurants, Inc.; Jack in the Box Inc.; SonicCorporation; Checkers Drive-In Restaurants, Inc.; white castle System, Inc.; Whataburger, Inc,; YUM! Brands, Inc.; Doctor‟s Associates Inc. Chronology Key Dates: 1948: Richard and Maurice McDonald openthe first McDonald‟s restaurant in San Bernardino, California. 1954: Ray Kroc gains the rights to set up McDonald‟s restaurants in most of the country. 1955: Kroc opens his first McDonald‟s restaurant in Des Plaines, Illinois; he incorporates his company as McDonald‟s corporation. 1960: TheSlogan, “Look for the Golden Arches, “is used in an advertising campaign. 1961: Kroc buys out the McDonald brothers for $2.7 million. 1963: Ronald McDonald makes his debut.
  27. 27. 27 1965:McDonald‟s goes public. 1967:The Company opens its first foreign restaurant in British Columbia, Canada. 1968:The big Mac is added to the menu. 1973:Breakfast items begin to appear on the menu, with thedebut of the Egg McMuffin. 1974:The first Ronald McDonald House opens in Philadelphia. 1975:The first McDonald‟s drive-thru window appears. 1979:The children‟s Happy Meal makes its debut. 1983:Chicken McNuggets are introduced. 1985:McDonald‟s becomes one of the 30 companies that make up the Dow Jones Industrial Average. 1998:The company takes its first stake in another fast-food chain, buying a minority interest in Colorado-based Chipotle Mexican Grill. 1999: Donates Pizza Inc. is acquired. 2000: McDonald’s buys the bankrupt Boston Market chain. 2002: Restructuring charges of $853 million result in the firm‟s first quarterly loss since going public.
  28. 28. 28 2003: McDonald’s sells Donatos in order to refocus on its core hamburger business. McDonald’s INDIA SUPPLY CHAIN These strategies determine what is to be made and what is to be McDonalds follow these strategies and have just –in –time inventory system. Which means that the orders are placed as the raw material comes to near finished. McDonalds maintain no inventory level for published goods. They Are:- Dynamic Dairy Industries(Supplier of cheese & butter) Trikaya Agriculture (Supplier of iceberg lettuce) Vista Processed Food pvt. Ltd (Supplier of chicken and vegetable range of product including Fruits pies) Radhakrishna Foodland (Distribution center‟s for Delhi Ad Mumbai)
  29. 29. 29 Amrit Food (Supplier of long life UHT Milk Product for Frozen Desserts‟) We are making a delivery schedule in a daily basis, and following some the circumstances. They Are:- Deliver Steps. Storage Fried product Cooking Primary holding Secondary holding Wastage Refrozen product
  30. 30. 30 RESEARCH DESIGN
  31. 31. 31 RESEARCH DESIGN TITLE OF THE STUDY “The Marketing Strategy of Product in McDonalds” STATEMENT OF THE PROBLEM Recent developments within fast food chains have brought new challenges in Marketing strategies. Specifically, keeping in view the “Needs and Wants” of the consumers.It is to satisfy the customer needs in selected target market at the same time to increase sales and achieve a sustainable competitive advantage. It aims to analyze the challenges faced in marketing and find measures in order to overcome them so as to retain their customers and achieve their main goal “Customer Satisfaction”.
  32. 32. 32 OBJECTIVE OF THE STUDY To know the existing marketing strategy of the product To identify recent major trends and developments in marketing strategy To understand the challenges faced by McDonalds in marketing their product. To study the measures taken to overcome the challenges in marketing. SCOPE OF THE STUDY Identify needs and wants of the consumers. To determine demand for product. To identify competitors and product‟s competitive advantage. To identify new product area. To identify new customers. To know if strategies are giving the desired results. METHODOLOGY Methodology refers to the step by step procedures or methods involved in the process of organizing the information.
  33. 33. 33 Research is defined as the process of gathering, recording and analyzing of relevant facts. A research report is a writer document or oral presentation based on a written document that communicates the purpose, scope, objectives, hypotheses, methodology, findings, limitations and finally, recommendations of a research project to others. TYPES OF TOOLS FOR DATA COLLECTION Data was collected from primary as well as secondary sources. Primary sources Primary data refers to the data that is collected through direct access research i.e., research conducted through direct contacts for the purpose of the present research objectives. In this report the primary data was gathered by the following means: Interviews with manager Secondary sources
  34. 34. 34 The secondary data refers to the information based on the findings other than the primary sources. The data gathered in the form of: Magazines and newspaper Previous research report. Internet. LIMITATIONS The data was collected from manager in Bangalore only therefore a detail and elaborate study could not be attempted. The survey includes the customer feedback on the product in particular, the study and sample were restricted. It was a time consuming method in which continuous guidance was required. PLAN OF ANALYSIS Data is collected and classified by random sampling.
  35. 35. 35 The classified data is tabulated and calculated into percentages. The data shown is interpreted for getting results required for the research study.
  37. 37. 37 MARKETING “Marketing is the social process by which individuals and organizations obtain what they need and want through creating and exchanging value with others.” -Kotler and Armstrong. The above definition can be explained as Marketing is a process by which one identifies the needs and wants of the people, one determines and creates a product/service to meet the needs and wants (PRODUCT), one determines a way of taking product/service to the market place (PLACE), one determines the way of communicating to the market place (PROMOTION), one determines the value for the product (PRICE), one determines the people who have needs and wants (PEOPLE), and then creating a transaction for exchanging the product for a value and thus creating a satisfaction to the buyer‟s needs or wants. Marketing Research and Analysis A business firm must be able to conduct a marketing research and create an analysis of the market as these processes help in the understanding of business goals and the way the market operates. Structurally, marketing
  38. 38. 38 analysis is conducted with focus on the customers or potential market, the organization or the company, and the competitor. In customer analysis, a very important aspect is developing market segmentation where various customers are categorized into different classifications. Marketing managers must be able to profile each market segment and classify them according to variables such as demographics, behavior, needs, and other factors to be considered in grouping customers. When the customers and potential market are properly segmented, it is easy to fulfill and satisfy their needs based on the factors considered for each classification. The second aspect is to make an internal marketing analysis within an organizational structure. A business or company should be able to understand its core competencies and its capacity to compete with other businesses. This means putting into great consideration company resources and manpower, cost position in comparison to other organizations, and profitability of the company. Company analysis is figuring out how the business can thrive in a competitive market and the industry it functions. Apart from developing detailed profiles on different market segments, competitors should also be studied in terms of strengths and weaknesses. A business that knows
  39. 39. 39 the moves and understands the trend of its competitor is able to get into the main competition and is not left behind. So, marketing managers must know how to analyze other businesses in the industry they operate in, considering factors such as source of profit, resources, cost structure, and product comparison among others. In marketing management, research is very crucial in the process of creating market analysis. With marketing research, a company is able to gather the data necessary for accurate market analysis. There are two primary methods in conducting a marketing research. The first technique is called qualitative marketing research and an example for this is focused-group study. The other one is called quantitative marketing research which may be conducted through statistical surveys. Marketing Strategy In the field of marketing, once a business is finally able to adequately profile its customers and competitors, along with its competitiveness in a particular industry, marketing managers can design marketing strategies that are important in capitalizing on company profits and resources. Important strategic decisions in marketing are grounded on specific objectives such as that of maximizing revenue, market share, and level of profitability.
  40. 40. 40 In attaining the marketing objectives, a company must determine the specific market segments targeted for the particular business. With a specific selection of target customer segments, company resources are maximized instead of being put to waste and revenue increases subsequently. Additionally, companies are also able brand their business with a key benefit that distinguishes the company from the rest of its competitors. Types of Marketing The concept of marketing encompasses a wide coverage and may even be associated with sales. In fact, sales and marketing are two different concepts although both are closely coordinated. Marketing is the presentation of the products and services and making them available to the customers with the goal of generating profits. A sale, on the other hand, is the output of marketing implementations. A business produces good product sales out of effective marketing programs while poorly planned marketing plans end up in low sales generation. Focusing more on the concept of marketing, a business organization must invest in intensive marketing activities, what with the stiff competition that exists in almost every kind of industry. Marketing introduces your products and
  41. 41. 41 services to your potential customers and target market. It is an important factor in the success of a business. Marketing is otherwise known as advertisement of the products and services that your company can offer to the market. So, the old maxim that no advertising is the worst kind of advertising remains to be true especially at this time when modern marketing methods have been introduced. Marketing can be conducted in various types and techniques. A company can invest in any marketing technique that works best and is effective to the customers. But here, we have mention three proven types of marketing that most companies have been using in their product and services campaigns. Offline Marketing The advent of modern marketing has been very helpful for most business, but traditional marketing is still as effective and powerful as it used to be. Not to be overlooked in this age of computers and internet technology, offline marketing is still widely used by many businesses. Tri-media or advertising through print ads, television, and radio have proven to be effective means of advertising and increasing product awareness even until now.
  42. 42. 42 Newspapers continue to be used actively and widely circulated by many print media organizations where businesses occupy portions and spaces in the Classified Ads to introduce their products and services. However, companies reap more benefits if online and offline marketing methods are combined. A good example is the use of direct mail in order to lead customers to the company website. In fact, a company can save a lot with proper combination of marketing methods since offline marketing can be costly. Online Marketing Online marketing is equally powerful and effective as offline marketing. In fact, companies save a lot on their marketing campaigns which are done through the internet. Small-scale businesses can benefit greatly from online advertising if marketing budget is an issue. Apart from the savings a company can get, it can also advertise its products alongside large-scale companies. Affiliate marketing is a common type of online marketing where a company ties up with an affiliate or an online advertiser that will take care of advertising the company‟s products and services to thousands of online users. Another example is online video campaign with a production cost that is a lot lesser than television advertising.
  43. 43. 43 One particular advantage of online marketing over traditional forms of advertising is that it can easily reach a huge number of individuals in a short span of time. Plus, the advertisement lasts longer and is unlimited. Word of Mouth Advertisement Word-of-mouth marketing is probably the best form of advertisement a company can ever invest in. Not a single penny is spent by the company with this kind of advertising; only excellent customer satisfaction is needed to make this campaign effective. Always keep a proactive approach in dealing with customers and go the extra mile. Building good relationships with customers keeps them in the business. The good news is they will tell their friends and people they know about Yhr Company and the kind of customer service they have. With an effortless process, the customers gradually increase in number which in turn increases company profit.
  44. 44. 44 McDonalds Marketing Mix 5Ps Strategy After analyzing the market, finding the key factor, target segment and understanding the market demand, every company needs to come up with offers or such type of plan, that speed up the growth of the company. For which McDonalds uses 5Ps of marketing which are as follows: 1.Product 2.Place 3.Price 4.Promotion 5.People PRODUCT Product includes, that how the company should design, manufacture the product so that it enhance the customer experience? Product is the physical product or services offered by the company to its customers. McDonalds include certain aspects of its product such as packaging, desirability, looks etc. This consists of both tangible and non-tangible aspects of the product and services. McDonalds has purposely kept its product depth and product width limited. McDonalds had first studied the behavior of Indian customer and provided a totally different menu offered in international market. It removed
  45. 45. 45 pork, beef and mutton burgers from the menu. Even the sauces and cheese used in India are 100% vegetarian as most consumers in India are primarily vegetarians. McDonalds continuously innovates the product according to the changing preferences and taste of the customers and also care is taken not to adversely affect the sales of one choice by introducing a new choice. The recent introduction is the Mc African piri-piri French fries, McEgg etc. McDonalds bring best product of quality and of best features as per the preference and demand of the target market. PLACE Place, as an element of the marketing mix, is not just about the physical location or distribution points for products. It encompasses the management of a range of processes involved in bringing products to the end
  46. 46. 46 consumer at the right place, right time and in the right quantity. McDonald‟s outlets are very evenly spread throughout the cities making them very accessible. It offers proper hygienic atmosphere, good ambience and better services. Drive in and drive through options make McDonald‟s products further convenient to the consumers. PRICE Pricing strategy is most important aspect of market mix. The customer‟s perception of value is an important determinant of the price charged. Customers draw their own mental picture of what a product is worth. A product is more than a physical item, it also has psychological connotations for the customer. The danger of using low price as a marketing tool is that the customer may feel that quality is being compromised. It is important when deciding on price to be fully aware of the brand and its integrity. In India McDonalds classifies its products into 2 categories namely the branded affordability (BA) and branded core value products (BCV). McDonalds came up with a very grasping punch line “Aapkezamanemein, baapkezamanekedaam”. This pricing strategy was founded to attract middle and lower
  47. 47. 47 class people and the effect can be clearly seen in the consumer base that McDonalds has now. McDonalds has certain value pricing and bundling strategy such as happy meal, combo meal, family meal, happy price menu etc to increase overall sales of the product. PROMOTION The promotional activities adopted by the McDonald helps to communicate efficiently with the target customers. The skill in marketing communications is to develop a campaign which uses several of these methods in a way that provides the most effective results. For example, TV advertising makes people aware of a food item and press advertising provides more detail. Some of the most famous marketing campaigns of McDonalds are: “You deserve a break today so get up and get away-to McDonalds” “Foods, folks and fun” “I‟m loving it”
  48. 48. 48 At McDonalds the prime focus is on targeting children. In happy meals too which are targeted at children small toys are given along with the meal. McDonalds corporate used advertising, personal selling, sales promotion, public relation, and direct marketing and became world‟s largest leading Burger Empire. These five promotion tools are used by McDonalds to integrate marketing communication program which allows McDonalds to access the communication channel clearly, consistently and easily transfer messages and product to target audiences. PEOPLE McDonalds understand the importance of both its employees and customers. It understands the fact that a happy employee can serve well and result in a happy customer. McDonald continuously does internal marketing because if it is effective it will automatically lead to in the success of external marketing. Internal marketing includes hiring, training and motivating employees. In this way they can easily serve customers and the result will be the smiling face of the customers. The level of importance has to be placed in the following order: 1.Customers 2.Front line employees
  49. 49. 49 3.Middle level managers 4.Front line managers The punch line “I‟m loving it” is an attempt to show that employees are loving their work at McDonalds and will love to serve the customers. SWOT ANALYSIS Strength: Strong brand Product innovation Supplier integration Excellent supply chain management Weakness: Low depth and width of product High employee turnover rate Opportunity : Entry into breakfast category Threat: Changing customer lifestyle and taste
  50. 50. 50 Overseas expansion Worldwide brand recognition Increased competition from local fast food outlet Rolling out McBreakfast across all outlets In India, the company has recently launched its entry into the breakfast food category. This is now launched on a pilot basis on select stores. In Mumbai, it is available at the Vile Parle outlet. The company views this category as a key growth driver in future. PRODUCTS McDonald‟s continually reviews how its products relate to dietary recommendations, at the same time it ensures maintenance of the taste, quality, value and customer satisfaction. McDonalds committed to reduce the amount of additives , especially preservatives and colorants in the products. They also provide nutritious information on its products. PRODUCT MARKET GROWTH MATRIX The Product Market Growth Matrix is a marketing tool which allows marketers to consider ways to grow the business via new products, new markets. This matrix helps companies decide what course of action should be
  51. 51. 51 taken given current performance. The matrix consists of four strategies: 1.Market penetration strategy 2.Market development strategy 3.ProductDiversification 4. Diversification PRODUCTS MARKET PENETRATION PRODUCT DEVELOPMENT MARKET DEVELOPMENT DIVERSIFICATION M A R KE TS
  52. 52. 52 MARKET PENETRATION STRATEGY Market penetration occurs when a company enters /penetrates a market with current products. The best way to achieve this is by gaining competitors customers. Other ways include attracting non-user of your product and convincing current clients to use more of your product/service. Market penetration occurs when the product and market already exist in the market. McDonalds is one most popular brand in fast food in entire world. MARKET DEVELOPMENT STRATEGY Market development strategy targets non-buying customers in currently targeted segments. It also targets new customer in new segments. Marketing manager has to think about the following questions before implementing a market development strategy: Is it profitable? Will it require the introduction of new or modified products? Is the customer and channel well enough researched and understood?
  53. 53. 53 The marketing manager uses these four groups to give more focus to the market segment decision: existing customers, competitor customers, non-buying in current segments, new segments. McDonalds is currently following above mentioned strategy, to focus on market segments. For serving synonymously to the existing customers they are coming up with different menus as per change in taste and preference of their customer e.g.: happy price menu, beverages including milk shakes and cold coffees etc. Also, by keeping in mind their rivals they are introducing products to compete them e.g. to answer the KFC they came up with Chicken McNugget‟s. They are adopting pricing policies for non-buying customer and as well as new segments. PRODUCT DEVELOPMENT STRATEGY In business and engineering, new product development (NPD) is the term used to describe the complete process of bringing a new product or service to market. There are two parallel paths involved in the NPD process: one involves the idea generation, product design, and detai2l engineering; the other involves market research and marketing analysis.
  54. 54. 54 Companies typically see new product development as the first stage in generating and commercializing new products within the overall strategic process of product life cycle management used to maintain or grow their market share.McDonald's is always within the fast-food industry, but frequently markets new burgers. Frequently, when a firm creates new products, it can gain new customers for these products. Hence, new product development can be crucial business development strategy for firms to stay competitive. McDonalds are always enhancing their existing product along with it; they also try to introduce new products so that they can easily survive in market. For e.g. McEgg, Fish-o-tella. DIVERSIFICATION Diversification is a form of growth marketing strategy for a company. It seeks to increase profitability through greater sales volume obtained from new products and new markets. Diversification can occur either at the business unit or at the corporate level. At the business unit level, it is most likely to expand into a new segment of an industry in which the business is already in.
  55. 55. 55 McDonald's made its foray into the hospitality industry in 2001, opening two hotels in Switzerland, at Zurichand Lully. The "Golden Arch Hotels" were positioned as four- star facilities with the latest in-room technology and very original, modern interior design. Reactions and reviews of guests following their stay there were mixed. IMPORTANCE OF PRODUCT LIFE CYCLE IN McDonald’s The requirements of customers change over time and thus the product offering has to be changed accordingly. What is the trend today may be out of market within few weeks. Thus continuous innovation is required.
  56. 56. 56 To counter these changes McDonalds has continuously introduced new products and has phased out the old ones which were at the declines age of their PLC. The introduction is timed such that the new product does not cannibalize (which eats same of it) the product already in the maturity or growth stage. Thus the secret lies in getting profits with different products in the different stages of the PLC.A perfect example of revitalizing a product in decline phase.
  57. 57. 57 The French Fries have been an important part of the McDonalds menu worldwide. But now it was in the stage of decline and was actually not generating proper return. In an attempt to revitalize it, a new variant was introduced namely Shake Shake Fries. This is being served with chat pata spice mix which has resulted in increase in the sales of French Fries and has elevated it from to the decline stage. This is used to delay the decline of a well- established product which has the potential of generating further revenue. BRANDING One of the things McDonalds has proved is that they are good at building brand loyalty. Even young children know that when you see golden arches that you are close to McDonalds.With its international expansion efforts, McDonalds has become one of the most recognized
  58. 58. 58 brands world-wide. A couple of things that build McDonalds brand in their constantly changing menu and brand packaging that meets the needs of their consumers. Co-Brands Co- brandingstrategyisalsooneofthebeneficialinstrumentforboo stingthebusinessandprovidingdifferentthesamethingsindiff erentmanner.Infactco-brandingmeanshavingatie- upswithanotherfirmandservingthecustomerwithboththepro ducts.Ithelpsinmakingprofitforboththebusinessenterprisea swellastoincreasetheirsalesandgrowthoforganization. There are different examples of co-branding strategy of McDonalds which are as follows: 1.Coco-cola 2.Barbie 3.Cadbury 4.Hot wheels MCDONALIZING THE SUPPLIERS McDonalds has changed the nature of not only the food service industry but also the food processing industry as well. McDonalds realized that the battle between fast food chains would increasingly be one of efficiency of supply,
  59. 59. 59 lower cost production and greater desire to innovate. It pioneered with innovative and sophisticated food distribution and packaging systems when the traditional food processors were unwilling or unable to supply food items that McDonalds demanded. They achieved amazing consistency by giving more attention than anyone else to field service and training at store level. McDonalds also started with tiny suppliers and grew with them displaying great loyalty. Nowhere is the supplier loyalty more evident than in development of new, improved products. Some of McDonald‟s classic food items like Filet-o-fish, French fries and Chicken nuggets etc. are results of supplier innovation. Interestingly it took KFC more than three years before in finally introduced its own version of chicken nuggets. Thus supplier technological expertise had given McDonalds a product which was not a mere marketing innovation but a technical one. McDonalds attempted to squeeze labor out of the stores by moving more preparation back into the processing plant, creating the opportunity to develop unique products based on suppliers processing skills. For the first time, McDonald‟s suppliers became the focal point of new product development. This converted the fast food industry‟s most
  60. 60. 60 fragmented distributed system into more efficient one which helped McDonalds reduced its inventory and managed costs effectively. COST To offer high quality product sat low cost requires efficient processes throughout the entire McDonalds organization. Once again, this goal is built in to their vision statement when they claim that we will be the most efficient providers that we can be the best value to the most people. McDonalds in corporates several ways of approaching to provide great value to its customers. One strategy that the company has employed for many years is the value meal. The value meal allows customers to buy a sandwich, French fries, and beverage at a discount when purchased together. McDonald‟s restaurants offer from seven to twelve value meals, both for their lunch menu and breakfast menu. CHANGE IN STRATEGY “Made For You”
  61. 61. 61 McDonald‟s organization recently underwent drastic strategy changes to serve better to their customers. Under their old system, ´the company would make several sandwiches at once, and hold the sandwiches in a warming bin until purchased by a customer. Under this system, management had to accurately predict how much food had to be put on hold. Accurate prediction had to be used because if there were not enough food placed on hold, this would create the problem of increase waiting times for customers, and too much food would cause waste of expired items. McDonald‟s dramatically changed their strategy in order to stay competitive with other fast food organizations. In 1999, McDonald‟s spent $181million to introduce their „Made for You´ system. Under this new system, standard food items are not held in a bin until they are sold. In the „Made for You´ system, modern technology greatly assists McDonald‟s operations. When a customer places an order, the sandwich items are immediately displayed on a computer monitor in the kitchen and a tone sounds to alert the kitchen staff. Unfortunately, the introduction of the „Made for You´ system did not come easily. McDonald‟s watched its
  62. 62. 62 customer satisfaction drop for the three consecutive years beginning in 1999. After further research, they realized that although the new system provided fresher food, it was not as quick as the previous system. Instead of reverting back to the old system, McDonald‟s continues to fine tune „Made for You´ and add new options to help the system work faster. REVITALIZATION PLAN In order to cope with the first ever quarterly loss that resulted from in efficient use of the made-for-you system McDonald‟s has devised a new plan to increase profits. Previously, the corporation emphasized adding more restaurants to increase sales, but the new plan places emphasis on increasing sales at existing restaurants.
  63. 63. 63 The new plan will reduce the spending, to enable more cash to shareholders through dividends and share re- purchases. Specific goals of revitalization plan are to: 1.Attract new customers 2.Encourage existing customers to visit more often 3.Build brand loyalty 4.Create enduring profitable growth The main goal is to increase sales by creating an exceptional customer experience. McDonald‟s plan is to achieve this goal by focusing on its people, products, places, prices and promotions. MENU Along with changes in their process strategies, McDonald‟s has flirted with menu changes as well. Last year, they offered a “new taste menu” where they offered a new sandwich for a one week .the purpose was to offer customers a variety of options to satisfy people‟s desire
  64. 64. 64 for a variety. However, the new taste menu proved to be ineffective. Some customers would fall in love with an item,but it would only last one week, and they would be frustrated that they couldn‟t purchase their new beloved favorite sandwich. More recent changes to the menu have proved effective. McDonald‟s realized that many of today‟s customers seek healthy food options, and he options, and the corporation has offered items accordingly. As mentioned above “competition bases,” McDonald‟s now offers a widely variety of nutritious items and provides information to help its customers as well as employees make informed healthy choices COMPETITORS’S ANALYSIS McDonalds has been a leading fast food outlet. But the market understudy has other competitors eating away into its market share on the higher end, KFC has become the potent competitor in the quick service field taking away customers from McDonalds.
  65. 65. 65 Perhaps, in the new environment fast, convenience is no longer enough to distinguish the firm. At this time, a new critical success factor maybe emerging: the need to create a rich, satisfying experience for consumers. CORPORATE SOCIAL RESPONSIBILITY Making customer happy is what our business about. And we know it takes a lot time to happen. We work hard to provide every customer with a choice of
  66. 66. 66 meals and an experiencethat exceeds their expectations. The preceding statement is the quote which introduces McDonald‟s worldwide corporation social responsibility report (2004). Although the company strives to compete on several bases, their ambient goal is customer satisfactions. They reach this goal through a variety of efforts. McDonald‟s visionary goal is to continually improve their organization. One example is the manager on duty task of completing a travel path, the manager personally checks every aspect of the restaurant, including :the lobby area where customers eat, the restrooms, the grill area behind the counter, the walk- in refrigerators and freezers, the stock area , as well as entire perimeter outside restaurant . Through completing travel paths, management continuously checks every aspect of the restaurant throughout the day.
  67. 67. 67 In addition to short term continual improvement, McDonald‟s organization also thinks ahead for a long term improvement. To ensure that they serve 100%safe food, McDonald‟s conducts food safety tests multiple times throughout the day.
  69. 69. 69 Consumer‟s likes, dislikes tastes and preferences, health etc. have to be taken into consideration. Company has to adapt itself to the local culture. Low fat food should be launched. Cheese French fries can be a good option. They should come up with more variety of puff and rolls. In the malls McDonald‟s outlet should be enriched with high class restaurant and soothing music. Outlets should be there in colleges too. Company should promote games on every table. Conclusion
  70. 70. 70 In conclusion, the marketing mix plays a key role in business, and is often the determining factor in the extent to which a given organization succeeds or fails. An organization can only exist if it has customers, and the marketing dimension of business develops that customer relationship. As a result, all organizations should focus on developing an effective marketing mix that distinguishes the organization‟s services from other competitors, and attracts customers. Considering the changing needs of society, an effective marketing mix that includes mechanisms of feedback, evaluation, updating and constant improvement, such as that developed by McDonald‟s, will benefit both the organization and society. Because McDonald's has taken much of the hard work out of stock management, Restaurant Managers are able to spend more time focusing on delivering McDonald's high standards of Quality, Service and Cleanliness. Customers are happy because they can be sure the item they want is on the menu that day. Efficient stock management is essential to any business. It enables the business to operate in a responsible way.
  71. 71. 71 The system also minimizes waste. Efficient use of materials means that society's resources are being used well with very few waste products. For example, fewer materials end up as waste in landfill sites. This leads to a reduction in costs. Due to lower costs, McDonald's can pass the benefits on to customers, providing better service and lower prices. The reduction of waste provides a win/win/win situation for McDonald's, its customers and wider society.
  72. 72. 72 BIBLIOGRAPHY
  73. 73. 73 Books:- Philip Kotler- Marketing Management