Presentation By:

ASFAND EJAZ (415)

M.SOHAIL (408)

M.USMAN (316) Presentation To:

Prof. AHMAD USMAN

AHMAD ARSLAN (346)

M.FAISAL (534)

M.NAVEED (311)
Introduction
McDonald’s is the largest and best known global food
service retailer with more than 30,000 restaurants in 121
countries, and best known global food service.

McDonald’s serves less than one percent of the world’s

population.
The first McDonald's restaurant was opened in 1954.
It was operated by two brothers Dick and Mac
McDonald.

McDonald’s outstanding brand recognition, experienced

management, high quality food, advanced operational
systems and unique global infrastructure ensure a
position that enables them to capitalize on global
opportunities.
Vision
“The world’s best quick service restaurant experience.”
To achieve their vision they are focused on three world wide
strategies:

World Wide Strategies

1. Be the best employer for people in each
community around the world.
2. Deliver optional excellence to customers in each
restaurant.
3. Achieve enduring profitable growth by
expanding the brand and leveraging the
strengths of McDonald’s system through
innovation and technology.
Welcome to McDonald's
Pakistan
• McDonald’s Pakistan is part of the Lakson
Group of Companies, a leading business
house in Pakistan.
• McDonald’s first restaurant opened its doors
to the people of Pakistan in September 1998
in Lahore. This launch was met with great
enthusiasm from the citizens of Lahore, who
are known for their liveliness, vigor and desire
for quality food.
• Karachi opened its first restaurant a week
after Lahore.
Welcome to McDonald's
Pakistan
• There are now 21 restaurants in four major cities of
Pakistan ( 9 in Karachi, 1 in Hyderabad, 8 in Lahore ,1
in Faisalabad,1 in Islamabad and 1 in rawl).
• McDonald’s is firmly committed to give back to the
community where it operates.
•They are happy to become involved because they
recognize that organizations have a role to play in
helping communities to work successfully.
McDonalds Business
Model
Franchise Model
Only 15% of the total number of restaurants are
owned by the Company.
The remaining 85% is operated by franchises.
The company follows a comprehensive framework of
training and monitoring of its franchises to ensure that
they adhere to the Quality, Service, Cleanliness and
Value propositions offered by the company to its
customers. and quality across geographies.
McDonalds Business
Model
Product Consistency
By developing a sophisticated supplier
networked operation and distribution system,
the company has been able to achieve
consistent product taste and quality across
geographies.

Act like a retailer and think like a brand

McDonald’s focuses not only on delivering sales
for the immediate present, but also protecting its
long term brand reputation.
Customer Perception and
Customer Expectation
Customer perception is a key factor affecting a
product’s success.
McDonalds being an internationally renowned brand
brings with it certain expectations for the customers.
Customer Perception and
Customer Expectation
Target Segment What is McDonald’s for me?

A Family with A treat to children, a fun place to be

children for the children.

Urban customer Great taste, quick service without

on the move affecting the work schedule

Teenager Hangout with friends, but keep it

affordable.
Importance of PLC in
McDonalds
The requirements of customers change over
time and thus the product offering has to be
changed accordingly.
What is the fashion today may be out of market
within few weeks. Thus continuous innovation is
required.
Importance of PLC in
McDonalds
Importance of PLC in
McDonalds
To counter these changes McDonalds has
continuously introduced new products and has
phased out the old ones which were at the decline
stage of their PLC.
The introduction is timed such that the new product
does not cannibalize 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.
McDonald’s SWOT Analysis
McDonald’s SWOT Analysis
Strengths
MacDonald’s has a strong global presence with its nearest
domestic competitor being only half its size.
McDonald’s is the market leader in both the domestic and
international markets.
In international markets, MacDonald’s is well placed to expand
and take advantage of long-term economic growth.
MacDonald’s also has a strong real estate portfolio.
The company’s outlets are located in areas that are highly
known for visibility, traffic volume and ease of access.
McDonald’s SWOT Analysis
Weaknesses
The food industry is really saturated.
As a result of this, MacDonald’s has to deal with the
prospect of looming market saturation, which could
make it difficult to add new outlets.
The market is forecast to grow by around 2% per
year.
There is also an increasing price competition driven by
too many competitors, which reduces the company’s
ability to increase revenue.
 McDonald’s SWOT Analysis
Opportunities

MacDonald’s sold its Donators Pizzeria back to its founder in

2003 and discontinued Boston market operations outside of
the US.
The company will instead focus on Chipotle Grill which is the
company’s most successful non MacDonald’s branded
chain of restaurants.
Also to increase profitability the company has slowed its
expansion of McDonald’s restaurants so as to refurbish and
change the image of current restaurants and adding new
features such as Internet access.
 McDonald’s SWOT Analysis
Threats

McDonald’s is exposed to changes in the global economy.

The company’s aggressive international expansion has left
it extremely vulnerable to other countries economic
slowdown.
Foreign currency fluctuation is also another problem global
companies like McDonalds.
McDonalds Marketing Mix
Marketers have four tools to use to develop an
offering to meet the needs of their targeted
customers.
Collectively they are called the marketing mix.

1. Product
2. Place
3. Price
4. Promotion
McDonalds Marketing Mix
1. Product

The product , service or program includes both

tangible and intangible elements.
The tangible , of course, are those things that the
customer can see, touch, feel, taste, or smell .
The intangible include such things as the image of the
offering ... which includes the image of the
organization making the offering, the psychological
aspects of pricing (high price to many customers is
equated with high quality and vice versa).
McDonalds Marketing Mix
2. Place

The place is where the customer receives the

product, service, or program.
The place of delivery, including all of its resources,
is part of what the consumer buys. A place that
meets his or her needs better may be worth more.
In setting its strategy, the organization must
determine how much the target market is willing to
pay for atmosphere and physical resources of
place.
McDonalds Marketing Mix
3. Price

The price is what the customer pays.

It includes direct and indirect costs as well as
opportunity costs.
The benefits of the product have to be great
enough to warrant the price.
Price includes all costs associated with the
product, service, or program.
McDonalds Marketing Mix
4. Promotion
Promotion includes all forms of communication you
use to communicate the benefits of your offering to the
target market(s).
The objective is to persuade the customer in such a
way that he or she recognizes that your offering is
uniquely qualified to meet his or her needs.
The term promotion mix is commonly used to refer to
the types of communication that are available:
advertising, public relations, personal selling, publicity,
and sales promotion.
McDonalds Marketing Mix

The marketing mix principles are controllable

variables, which have to be carefully managed
and must meet the needs of the defined target
group.
McDonalds Marketing Mix
The marketing mix is apart of the organizations
planning process and consists of analyzing the
defined:
How will you design, package and add value to the
product? Product strategies.
What pricing strategy is appropriate to use?
Price strategies.
Where will the firm locate? Place strategies.
How will the firm promote its product
Promotion strategies.
McDonalds Marketing Mix
The following table summarizes the marketing mix
decisions, including a list of some of the aspects of
each of the 4Ps.
Product Price Promotion Place
Functionality List price Advertising Channel
Appearance Discounts Personal members
Quality Allowances selling Channel
Packaging Financing Public motivation
Brand Leasing relations Market
Warranty options Message coverage
Service/Suppor Media Locations
t Budget Logistics
Service levels
Survey Questionnaire
Survey Questionnaire
Q. Which is your favorite product at
McDonald’s?

McChicken
Others Burger
27% 19%

Big Mac
Burger French
12% Fries
42%
Survey Questionnaire
Q. Is the product line in McDonald’s
adequate?

39%
32% 29%
40%
30%
20%
10%
0%
Yes No Its okay
Survey Questionnaire
Q. What is the main problem you faced at
McDonald’s?

43%
50%
40%
24% 21%
30%
20% 9%
3%
10%
0%
Long Wrong Bad Other No
Queues Order Music Problems Problems
Survey Questionnaire
Q. Which area do you think needs the most
improvement?

N o S ug gestio n s 22%
B etter M usic 7%
M ore S p ace 13 %
H om e D elivery 15%
Mo re V ariety 19%
Lo w P rices 24%
0% 5% 10% 15% 20% 25%
Survey Questionnaire
Q. What are Unique Selling Proposition of
McDonald’s?
30%
25%
20%
15% 26% 24%
10% 19% 17%
5% 8%
6%
0%
Fo o d H yg ien e Am bien ce Qu ick L o catio n Oth ers
S ervice
McDonald's People
Promise
Mission Statement:

“We value you, your growth

and your contributions.”
Thank
You