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“One world, One Burger”- McDonald’s
WELCOME TO
THE WORLD OF McDonald’s
• HISTORY
• PAST AND PRESENT
STRATEGY
• SWOT ANALYSIS
• 4 P’S
• ORGANISATIONAL
STRUCTURE
• PROMOTIONAL
STRATEGY
• PRODUCT MIX
• TURNOVER
• DISTRIBUTION
CHANNEL IN
ABOARD
• SEGMENTATION
AGENDA
.
 As word of their success spread, franchisees started showing
interest. However, the franchising system failed
 McDonald's was started as a drive-in
restaurant by two brothers, Richard
and Maurice McDonald in California,
US in the year 1937.
Mcdonald’s History
The original mascot of McDonald's
was a man with a chef's hat on top of a
hamburger shaped head whose name
was Speedee
• At this point, Ray Kroc (Kroc), distributor for
milkshake machines . Expressed interest in the
business, and he finalized a deal with the
McDonald brothers in 1954.
•He established a franchising company, the
McDonald System Inc. and appointed
franchisees.
•In 1961, he bought out the McDonald brothers'
share for 16.2 Cr and changed the name of the
company to McDonald's Corporation. In 1965,
McDonald's went public...
Currently McDonald's operates in 121 countries &
having more than 30000 restarunt
McDonald’s History
McDonald's Market Share {Globally}
McDonald's Market Share {INDIA}
Source : https://simconblog.wordpress.com
• McDonald's India has already
contributed directly & indirectly
Rs. 95 crore (approx. 16 per cent
of total turnover) as revenue to
the Center and the State towards
Sales Tax, House tax and Income
Tax in the last seven years. By
2005 this amount shall see an
increase of more than 30 per cent
per annum.
Contribution to Economic Growth
McDonald's revenue from 2005 to
2012 {Globally}
Source: http://www.statista.com
Global market share
Current status of McDonald’s
 McDonald's is the world's #1 fast-food company by
sales
 Serving burgers and fries, it operates more than
36,250 restaurants
 It serves in more than 121 countries on six continents
 On a day-to-day basis, more than Rs.318 Crores
customers world-wide are served
 Employs more than 4,47,000 people
 The Boston Market and Chipotle Mexican Grill fast-
casual chains are also owned by McDonald's
 Global sales of McDonalds is Rs.5,34,780 Crores in
2013
Competitors
Competitors
5,73,76,776 
LIKES
FOLLOWERS
2.75 Million
Competitors
McDonald’s major competitors:
Marketing Mix
The 4P’s used in Marketing Mix are :-
Product
Price
Place
Promotion
Product
New Product
Products
Veg. Menu
Mc Aloo Tikki
Rs. 25
Non-Veg. Menu
Mc Spicy Chicken
Rs. 109
Mc Egg
Rs.25
Beverages
Product Mix in INDIA
 ‘Vegetarian menu’
 Sauces and Cheese
100%vegetarian
 Affordable price products
Product Mix in China
Menu extensions, convince and value
 It opened up a ‘Dollar Menu’ know as the
“Value menu” that offered sandwiches and
other items at a lower price
Product Mix in U.S.
Pricing Strategy
Success of McDonalds has been mainly due to its
value for money offering to the Indian
Consumers
Happy meals comprising of small burgers, coke +
toy
Medium meal combo that consisted of burger,
medium fries and medium coke with the price of
Rs. 75
Maharaja Mac Meal – Rs. 94
Place
McDonald's opened its doors in India in October 1996. Ever since then, our
family restaurants in Mumbai, Delhi, Pune, Ahmedabad, Vadodara,
Ludhiana, Jaipur, Noida Faridabad, Doraha, Manesar and Gurgaon have
proceeded to demonstrate.
• The ambience and the environment is same at
all the outlets of McDonald's.
McDonald’s Outlets
Promotion
The various promotion channels being
used by McDonalds to effectively
communicate the product information
are-
I Love Children
I Have Gifts
For them,
They Can play
Games also
“You deserve a break today, so get up and get away- To McDonalds”
“Aap ke zamane mein, baap ke zamane ke daam”
“Food, folks and fun.”
Organizational Chart
INTODUCTION
MATURITY
DECLINE
Product Life Cycle {PLC}
TIME
S
A
L
E
S
STP Model
McDonald’s has segmented their products
according to 3 different bases
Segmented groups -
Adults, kids, students and family
The 3 bases for segmentation are :
Demographic Segmentation
Psychographic Segmentation
Behavioral Segmentation
Target Segment What is McDonalds for me?
A Family with children A treat to children, a fun place to be for
the children
Urban customer on the move Great taste, quick service without
affecting the work schedule
Teenager Hangout with friends, but keep it
affordable
Targeting
Positioning
Eg.. VADA PAV
 Declining market shareDeclining market share
 Weak productWeak product
developmentdevelopment
 Quality and taste ofQuality and taste of
productsproducts
 42% of US fast-food42% of US fast-food
hamburger businesshamburger business
 Consistency of foodConsistency of food
 Successful items: Fries,Successful items: Fries,
Happy Meal, Aloo tikki, EggHappy Meal, Aloo tikki, Egg
McMuffin, PromotionsMcMuffin, Promotions
 Overseas marketOverseas market
 InternationalInternational
expansionexpansion
 Only serving 1% of theOnly serving 1% of the
world’s populationworld’s population
 Strength of competitionStrength of competition
 More health-consciousMore health-conscious
consumersconsumers
McDonald’s SWOT Analysis
Porter’s Five Competitive Forces
Rivalry within industry:
Burger King, Wendy’s, In & Out etc.
Brands - Big Mac, Filet o’ Fish
Innovation – celebrity endorsements, monopoly
Online presence - company info, links to charity works
Threat of new entrants:
Eg.. Burger King
Threat of substitutes:
Any other food industry – high-class restaurants to hot dog
stands
Healthier alternatives (Newman’s Own),
unique products
Bargaining power of buyers:
Pay attention to customer demands and trends
Offer specialty products for all segments
First mover- salads, cooking oil
Bargaining power of suppliers:
McDonald’s relies on strong supplier and
distributor relationships
Help suppliers lower costs
Suppliers include: Coca-Cola
Porter’s Five Competitive Forces
BYE BYE SEE U AT McDonald’S