MCDONALD, S

INTRODUCTION:

Mc Donald’s is the world largest chain of fast food restaurants. It is serving

nearly 54 million customers daily McDonalds primarily sells ham burger,
cheese burger , chicken product, French fries, break fast items ,soft drinks
milks shakes and deserts but recently its also began to offer Salads,
wraps and fruits. McDonalds are found in 120 countries of the world.

HISTORY OF McDonald’s:

McDonalds began its business in 1940 with a restaurant opened by sibling

DICKS and MAC. MC DONALDS in San Bernardino, CALIFORINA SO
DIC and MAC MCDONALS restaurants and Ray Kroc was the founder of
the MCDONALDS Corporation.
In 1948, they introduced the principles of the modern fast food
restaurants. The presents corporation dates its founding to the opening of
a franchised restaurants by pray Kroc in des Plaines, illinainois on Aprils
15, 1955, the ninth MCDONALDS restaurants overall Kroc later purchased
the MCDONALDS brother equity in the company and led its world wide
expansion with the successful expansion of MCDONALDS into many
international markets, the company has become a symbol of globalization
and spread of
The AMERICAN way of life.
McDonald’s VISION:-

McDonald’s vision is to be our customer favorite place and way to eat with
inspired people. Who delight each customer with UN matched quality,
service, cleanliness and value every time. We invite you to be the part of
this wining team and give yourself an opportunity to people striving to
create similes on the faces of millions of people every day.

McDonalds MISSION:

I AM IN LOVE WITH IT.

Mission of MC DONONALD is to provide the customer fast food and
beverages with friendly services in clean and convenient location.

PROGRAMME OF MCDONALDS:

Every customer has some expectation from fast food restaurants and the
restaurants try to make their environment according to their expectation.
MCDONALDS has a programmer of CHAMS, which are the six
expectations of costumers from fast food restaurants.
C ----- Cleanliness.
H ----- Hospitality.
A ----- Accuracy.
M ---- Maintains of facility.
P ---- Product quality.
S ---- Speed of services.
.

MARKETING MIX FOR MCDONALDS:

I the Pakistan MCDONALDS is try to manage all the four elements (4PS)
of the marketing mix those are PRODUCT, PRICE, PLACE, and
PROMOTION. MCDONALDS is trying to full fill the needs of 4ps to
increase it revenues and and profits and also market share as compare to
the other fast restaurants in Pakistan.

ELEMENT OF MARKETING MIX:

1: Product of McDonald’s

At first MCDONALDS original restaurants in San Bernardino California

served only Ham burger, milk shakes, and French fries,
But with the passage of time a large no of things are add in the menu of
the MCDONALDS. MC Donald’s world wide menu is broad similar to that
of united states and the big Mac is a product of the Mc Donald’s which is
available in whole world.
Mc Donald’s is also providing their product according to the taste and
cultural issues of the people of different region.
For example, because the Pakistan is a Muslim country and in this country
pork is not served due to Muslim dietary laws and the ham burger is called
the beef burger.
Product of McDonald’s in whole world

In the world Mc Donald’s is offering different product during Break

fast, lunch and dinner timing.
 BURGER.

Such as big Mac is the most important product of Mc Donald’s menu some
other important type of burger, are flag ship burger, hamburger and
cheese burger etc. Mc Donald’s is also providing chicken, fish and pork
sand witches.

 CHICKEN MC NUGGETS.

They are introduced in 1983, these are small chicken chunks served with
a dipping sauce available in 4,6,10,20 pieces they are made by white
chicken strips introduced in 1955 for a limited time and offer again in 2003.
Other product.:
• Fish Mac dipper.
• Mc Rib.
• Mc Muffins (for break fast).
• Biscuits cookies.
• Beverages.
Mc Donald’s primary soft drinks supplies is coco Cola Company Mc
Donald’s is offering also
• Cold and hot iced coffee.
• Hot and iced tea.
• Hot chocolate.
• Various juices.
• Milk shakes.
• Ice cream.
• Desserts

2:-PRICE

Price is the most important factor of the marketing mix because price
counts much in the sale of the product. Mc Donald’s in Pakistan is also
trying to adjust its prices according to the prices of other competitors in the
fast food field. But the price of Mc Donald’s are little bit high as compare
to the other competitors. The reason of high prices of Mc Donald’s is many
such as costly location, superior services, high govt taxes etc. But the Mc
Donald’s is also trying that its prices are not be to much high that people
can not afford it and most of Mc Donald’s product are also for the people
of the high gentry on the basis of prices Mc Donald’s is offering different
deals such as
• Kids deals.
• Family deals.
• Lunch deals.
• Mid Night deals etc.
On these deals Mc Donald’s offer special discounts.

3 PLACEMENTS.
McDonald’s restaurants are present about more than 120 countries and
restaurants are increasing continuously. In the Pakistan there are about
20 restaurants of Mc Donald’s.
Mc Donald’s is trying open the restaurants at such location where there
target customers can reached easily. The target customers of the Mc
Donald’s are people of upper-upper class and upper – lower classes so
most of branches are in upper class market and areas. Two best location
of Mc Donald’s in Lahore are branches of Jail road near the race Course
Park and Main Blue ward.

4:PROMOTION.

Promotion is also an important factor of marketing mix. In the world the

MCDONALDS is using different sources for its advertisement and
promotion. MCDONALDS has for decades maintain an extensive
advertising camping in addition to the usual media (Television, Radio, and
News paper). The company makes significant use of bill board, and
signage, sponsor, sporting events from ranging from little league to the
Olympic game. None the less, television has always played a central role
in the company’s advertising strategy. MCDONALDS has used 23
different slogans in United States advertisement as well as a few other
slogan for select countries and regions.
MCDONALDS is also doing advertisement for attracting the children
because they are a main category of there customers and for this purpose
they are making play group in each restaurants. This is also a good effort
for the promotion. In the Pakistan MCDONALDS use media excessively
for the promotion for all the times especially when they introduced some
product. For this purpose they give ads in news paper, magazines and
internet.
They are not emphasizing on too much promotion in Lahore and
Islamabad. Because they know that MCDONALDS is famous already in
these cities. They are paying more attention on small cities for there
promotion.

Marketing Environment

Marketing environment means all the forces and factors out side the
marketing that affects the marketing management ability to build a
successful relationship with the target customers.
When the McDonalds started it business in the Pakistan first they have to
consider the market environment of the Pakistan. There are four
considerable factors in the marketing environment of the Pakistan. These
are product, price, place, and promotion.
And other is micro and macro environment factors those have much
influence on the marketing process of McDonalds are discuss below,
1: Competitors

The microenvironment factor has a lot of influence on McDonald. because

the McDonalds is a fast food restaurant chain and it has a large no of
competitors in this field and to tackle its competitors MacDonald’s is trying
to understanding the needs and wants of the target customers and
providing them the superior services and products.

2: Demographic Environment.

Demographic environment of a country include the study of characteristic

such as age, gender, race, occupation and density of the people of that
country.
So the McDonalds find out and introduced there products in those areas
where there products will be readily accepted. They also studied the buying
power of people their age level and the intensity of population in different
regions. And then McDonalds decided to offer different types of products
satisfying each and every customer of fast food industry.

3: Economic Environment

The economic environment means buying power of the people. The fast
food industry of Pakistan is increasing day-by-day this encourages
McDonalds to start their new outlets in all the major cities of Pakistan.
McDonalds also consider the infrastructure of fast food industry of
Pakistan before starting its operation. The purchasing power of the
individuals was also studied to decide that in which areas they should
open their new outlets.

4. Social and Cultural Atmosphere

When McDonalds started its business in Pakistan nine years ago people
of Pakistan were not font of eating fast food and McDonalds was not
generating too much revenues at that time but with the passage of time
the interest of people has developed towards fast food and it has become
a culture specially for the high class to go and eat fast food from
expensive restaurants like McDonalds.

As McDonalds is an American base company so it is facing many problems

in Pakistan in its operation. Some times people show hate against it for this
reason. for example , At least 11 people were injured in two explosions in
a KFC and a McDonalds outlet in Pakistan’s southern city of Karachi

4. Political and Legal forces

Political conditions of Pakistan are steady and this promotes the foreign
investors to come in Pakistan and start their business or expand it. For
those companies who are already operating in Pakistan. Government of
Pakistan has imposed restriction for McDonalds to provide Halal food in
Pakistan and McDonalds has to follow that restriction. Also 15% general
sales tax is imposed by government which McDonalds is paying
completely.
 SEGMENTATION OF McDonald’s:-

The process of dividing the large heterogeneous consumers market into

smaller Portion is called as segmentation.
In the same way the McDonald’s is also dividing its markets into the
smaller Segments.
McDonald’s is segmenting its market on the following basis.

• GEOGRAPHIC SEGMENTS
• DEMOGRAPHIC SEGMENTS
• PSYCHOGRAPHIC SEGMENTS
• BEHAVIORAL SEGMENTS

1. GEOGRAPHIC SEGMENTATION

Dividing the market into different geographic units such as nations,

countries,
Cities
.
Countries:-

McDonalds is segmenting the consumers of different countries by different

ways.
McDonald’s is introducing the products according to the needs and wants
of the countries and its culture.
 NATIONS:-

McDonald’s also take care the nations and their beliefs such PAKISTAN is
the
Muslims countries so the are introducing only halal foods here.
In INDIA McDonald’s are not using the meet of cow.
Because this is against there beliefs.

CLIMATE:-

McDonald’s also take care the climate of different regions while

segmentation.
For example:-in those countries where the climate is hot, they introduced
the cold
Items such as ICE_CREAMS, SHAKS, and JUICES more like in the
PAKISTAN. And the countries where the climate is cold they introduced
more teas and coffees
Etc.

2: DEMOGRAPHICAL SEGMENTATION:-

Its mean dividing the market on the basis of variable such as age, gender,
Family size income, race generation etc.

AGE:-
McDonalds is segmenting the customers especially on the basis of the
age. They have different products for the different age groups.
Such as for the children’s they have many special items and play areas
those
Attract them more.
FAMILY SIZE:-
The also offers the deals for the different family size and offer them
discount on buying products in bulk quantity.

EDUCATION:-
Education enhance awareness so they targeting the educated people as
shown in their advertisement.

GENDER:-
McDonald’s also segmented the market on the basis of gender on the
basis of some factors.

RACE:-
Mc also segmented their customers on the basis of race such as ASIAN,
HISPANICS BLACK and WHITE, and provides products according to their
Taste.

3:PSYCHOGRAPHIC SEGMENTATION.

Its mean dividing the markets on the basis of social class, life style etc.
 SOCIAL CLASS:-

MC in PAKISTAN is only segmenting their market for the upper class,

Lower upper class and upper middle class
LIFE STYLE:-
The people who are health conscious McDonalds also target them as
walls
Satisfying your healthy life.

4:BEHAVIORAL SEGMENTATION:-

Its mean dividing the market on the basis of the occasions, benefits, user
status, User
Rate, loyalty status etc.

OCCASIONS:-

McDonald’s also segment the market on the occasions such as

VALENTINE DAY, MOTHER DAY, and their sales is increases on these
occasions.

BRAND LOYALITY:

In the world there are so many people who love with the McDonalds. and
they are loyal with the brand name of McDonalds
 TARGET MARKETING:-

The selection of consumer in the market is known as target marketing.

Marketing mix is design according to target market.

1. Target customers of McDonald’s

In Pakistan McDonalds targeting the people belong upper and upper

middle class of society.
People who prefer fast foods like youngsters.
Youngster also prefers Mc, because of its cool atmosphere and special
location.
McDonald’s also targeting the old people who want low fats in the food.
It encourages the family to visit Mc as all type of foods.
McDonald’s is also targeting the foreigners living in PAKISTAN,
Especially in the capital that is Islamabad, Lahore Karachi,
Children are also included in the target market of Mc.
As we see that children of this era are more interested of eating the fast
food and also influence their parents to go and have some food from
McDonald’s.

MARKETING STRATEGIES OF MCDONALDS

AND SOCIETAL MARKETING

McDonalds in implementing different types of marketing strategies

including:
Their main strategy is to attract few but profitable customers.
They prefer to bundle up their commodities in the form of meals.
They arrange many social programs like anti pollution, Teacher
Convention conference etc.
They contribute a huge amount of their income in donation at catastrophes
like Earth Quake in Pakistan.
They are running Hearing and Speech Programmed under which they
train these people and offer jobs to them.
They try to provide their products in environment friendly packaging.
Packaging is a fundamental part of serving our customers. Our U.S. menu
involves 330 unique consumer package designs, with 83 percent of the
packaging made of paper or some other wood-fiber material. McDonald’s
has an opportunity to provide leadership in conserving natural resources
by minimizing the environmental impacts of our packaging.
McDonald’s has a number of strategies to ensure environmentally sound
operations at there restaurants, including reuse and recycling, managing
electrical energy and effective water management
Since 1990, McDonalds implemented programs to purchase goods made
from recycled materials. McDonald’s has begun a bulk cooking oil delivery
system using reusable containers, which eliminates more than 1,500
pounds of packaging waste per restaurant per year. McDonalds keep
restaurant owner/operators and managers informed about better ways of
managing electrical energy.
McDonalds is also doing much for the betterment of there employers .
In Pakistan, McDonalds says that our employers are our most important
asset. We provide the best employment experience for our employees in
order for McDonalds Pakistan to achieve our goal of providing our valued
customers with the world’s best quick-service restaurant experience. We
strive to recruit the best, hire the best, and provide the best place to work.
Children’s are also the part of our society so McDonalds is also doing
much for the children such as each outlet of the McDonalds has play land
for the children. So we can say that all these the marketing strategies as
well as the social responsibilities of the McDonalds.

SWOT ANALYSIS
 SWOT analysis is to identify and analyze the strengths and
weaknesses of a organization, as well as the opportunities and
treats revealed by the information, the organization have
gathered on the external environment.

In the field of fast food restaurants kick is the major competitor of

the McDonalds. So we do the swt analysis of both the restaurants.

Swot analyses of McDonaldas:

Their main strength lies in the taste of their products and their great
service. As for the last 9 years they stand as the market leaders in
the fast food

Strengths

Excellent location :
One of the biggest strength of McDonald is its excellent location in
all over the world as well as in Pakistan. In Lahore is located in the
main blue ward gluer on jail road, in fortress stadium etc.

Secret Recipe

Only a handful of people know that multi-million dollar recipe (and

they've signed strict confidentiality contracts). This secret recipe is
strength for McDonald

Standardized Cooking Procedures

McDonalds has standardized cooking procedures which are

according to the principles of health and proper cleanness is
maintained while cooking.
And cooks haired by the McDonalds are highly qualified and perfect
in there cooking.

Weakness

Higher price

One weakness of McDonald As compared to other fast foods working in

Pakistan is their high prices. Like, they have high prices of their burgers as
compared to the other fast food restaurant such as AFC,DFC even though
kfc.

Drive through
McDonalds do not have a drive through in its each restaurant. But
they are doing best to overcome on their weakness of drive through.

Opportunities

Brand Name:

They have the opportunity of their brand name McDonald as is a

trademark for the fast food in all over the world. so the people of the
Pakistan are also attracted to word the McDonalds

Play areas

McDonalds in all over the world have play areas for the children. And
McDonalds also have books library’s for the children. So the children
are attracted toward the McDonalds because of these reasons.

Threats
Competitors :

It has main threat of kfc as its competitor. And it is trying to get the
more market share and beat kfc especially Pakistan. In January 2003
its first quarterly loss of $343.8m in more than 40 years of business.
This report aims to investigate the reasons behind Mc Donald’s loss
was the very good performance by kfc using marketing theory and
analysis Concluding with recommendations for improvement

Social and cultural threat

 It has also the social and cultural threat in Pakistan as mostly the
people are against foreign countries and they use to make strikes in
front

Mc Donald’s of to stop their business and leave Pakistan as they think

that all the revenues generated by Mc Donald’s are going to foreign
countries and it has a bad impact on Pakistani economy.

Swot analysis of direct competitor of

McDonalds which is KFC

KFC Today

Today, KFC is the world’s largest and most well known chicken
restaurant chain, with more than 10,000 locations worldwide, in 78
countries. KFC and its franchises employ more than 20,000 people
worldwide.
KFC serves more than 4.5 billion of chicken annually, to
approximately 7 million customers a day, world
 SWOT ANALYSIS

Strength

Mass Appeal

Their main strength lies in the mass appeal of their products and
their great service. As for the last seven years they stand as the
market leaders in the fast food category after McDonalds.

Excellent location

One of the biggest strength of KFC is its excellent location. In

Lahore is located in the barkat market, which is the best market
place in Lahore.

Well-designed system
With the 66 years of experience and confirmation, now KFC has the
most efficient and effective system worldwide of chain of
restaurants.

Weakness

Higher price

One weakness of KFC as compared to other fast foods working in

Pakistan is their high prices. Like, they have high prices of their
burgers as compared to the Dixie and Papa Sells.

Drive through

KFC do not have a drive through in its each restaurant. But they are
doing best to overcome on their weakness of drive through.

Play areas

KFC also do not have a play area in their each out let

Opportunities

Brand Name

They have the opportunity of their brand name as KFC is a trademark for fried
chicken and is known by many people of Pakistan as a fast food of fried chicken
especially the zinger ch
 Threats

Competitors
It has main threat of McDonalds as its competitor. And it is trying to get the
largest market share and beat McDonalds especially in Pakistan.

Social and cultural threat

It has also the social and cultural threat in Pakistan as mostly the people are
against America and they use to make strikes in front of KFC to stop their
business and leave Pakistan as they think that all the revenues generated by KFC
are going to America and it has a bad impact on Pakistani economy.

BCG MATRIX:

McDonald’s
 High

MARKRT
SHARE

Low

Low High
MARKET GROWT
STAR…………………………………………………MCDONALDS
CASH COW …………………………………… SUBWAY
?........................................................................................... AFC
MAC BURGERS ……………………………………………… STAR
MAC AREBIA …………………………………………………….. ?
ICE CREAMS ………………………………………………CASH COW
DESSERTS ……………………………………………………… DOG

PRODUCT LIFE CYLE

The product life cycle means the course of product, its sales and profits
over its life time .
it involves five distinct stages:
• Product development stage
• Growth
• Maturity
• Decline
 . Table of Contents

• INTRODUCTION
• HISTORY OF McDonald’s
• VISION
• McDonald’s MISSION
• McDonald’s IN PAKISTAN
• MARKETING MIX
• MARKETING ENVIRONMENT
• SEGMENTATION
• MARKETING STRATEGIES
• SWOT ANALYSIS
• BCG MATRIX
• PRODUCT LIFE CYCLE
• SOCIAL MARKETING OF McDonald’s