comparision of various food outlets and their importance internationally.

2. INTERNATIONAL MARKETING
OF
FAST
INDUSTRY

4. INTRODUCTION
• The global fast food industry is dynamic with a variety of
competitors. This presentation identifies the current factors
influencing the industry before specifically focusing on McDonalds
• Fast food is a type mass produced food that is prepared and served
very quickly
• This food is typically less nutritionally valuable compared to other
food and dishes

5. • Any meal with low preparation time can be considered fast
food
• This type of food is mostly served in take-a-ways or take
out
• The term fast food was recognized in a dictionary by –
Merriam wWebster in 1951
• Fast food are quick alternatives to home cooked meals
• They are also high in saturated fat , sugar ,salt and calories
Continued…

6. PORTERS FIVE FORCE MODEL:

7. POWER OF SUPPLIERS
 Many undifferentiated suppliers
 Fast-food chains have high purchasing power due to high
volume
THREAT OF SUBSTITUTIONS
 Alternative foodservice options
 Ready meals and home cooking ingredients
 Main players quite differentiated
 No switching costs
 Convenience is the value adding component which is
difficult to substitute

8. COMPETITIVE RIVALRY IN THE FAST-FOOD
INDUSTRY
FRAGMENTED MARKET
LOW EXIT COSTS
LOW MARGIN, HIGH TURNOVER – DRIVES COMPETITION
HIGH BRAND POWER.
POWER OF BUYERS
HIGH PRODUCT DIFFERENTIATION
TARGET MANY SEGMENTS
HIGH PRICE SENSITIVITY

9. THREAT OF NEW ENTRANTS
INDUSTRY DOMINATED BY GLOBAL CHAINS WITH VERY
HIGH BRAND VALUES
HIGH BRAND AWARENESS AND LOYALTY
RETALIATION FROM STRONG INCUMBENT PLAYERS
LOW INITIAL CAPITAL OUTLAY
LOW FIXED COSTS
ECONOMIES OF SCALE

10. MARKETING MIX

11. McDonald’s Internal and External Analysis
INTERNALANALYSIS
BRAND VALUE – $35,593 MILLION.
GOLDEN ARCHES IS SAID TO BE MOST RECOGNIZED
SYMBOL IN THE WORLD.
HIGH BRAND RELIANCE.
HIGH STAFF TURNOVER RATE.

12. EXTERNALANALYSIS

13. MC DONALDS MAIN COMPETITORS
1. STARBUCKS
Starbucks is the world’s largest coffee house chain. The
company operates 22,500 stores in 65 different
countries, including 12,800 in the United States. None of
the company’s U.S. locations are franchises.
2) Yum Brands, Inc.
Yum! Brands, Inc. operates several large quick-
service restaurant chains including Taco Bell, KFC
and Pizza Hut. The company has over 41,000
locations in 125 countries, 30,000 of which are
franchised

14. 3) Chipotle
Chipotle is a fast-casual restaurant chain serving tacos,
burritos and salads. The company was formed as
a spinoff from McDonald’s with a 2006 initial public
offering (IPO).
4) Subway
Subway is the largest restaurant chain in the world, with
44,200 locations in 110 countries. All Subway locations
are owned by franchisees, of which there are more than
21,000. The company’s menu consists primarily of
submarine sandwiches and salads. Subway reported
2014 sales of $11.9 billion in the U.S. alone.

15. 5) Panera
Panera Bread Company is a fast-casual restaurant
chain specializing in soup, salad, sandwiches and
bakery products. It was founded in 1981 under the
name Au Bon Pain. Panera offers more nutritious,
higher-quality options at a higher price point than
McDonald’s.
6) Burger King
Burger King started in 1954 and is headquartered in
Miami, Florida. As of November 2014, Burger
King had over 14,000 locations in over 100
countries, with roughly 11 million daily visitors
worldwide.

17. SHORT TERM RECOMMENDATIONS (6M-1YR)
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•
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18. LONG TERM RECOMMENDATIONS(1-5YR)
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19. THANKYOU