McDonald's

By Tania Haleem
 Introduction
• The company
• The history of Mc Donald’s
• Products
• Price
• location
• Target market
• Promotions and adverts
• Competition
• Financial data
• SWOT Analysis
• summary
 McDonald’s – The
Company
ØAmerican fast food take away restaurant, which is now Global!

Ø1st McDonald's restaurant opened in 1967

ØCurrently there are 1,300 restaurants in 120 countries world wide,

465,000 employees and serving 50,000,0000 customers daily

ØOwns 41% of the market share in the fast food market

ØOligopoly market structure

ØBiggest target market – children

ØSlogan – ‘I’m lovin’ it’

ØRay Kroc – The cooperate founder of the McDonalds Franchise based

his business on Q.S.C & V
 McDonald’s History
Ø1948 –Richard and Maurice McDonald opened the first
McDonalds restaurant in California
ØRay Kroc- invested all his time and money selling multi-
mixes until 1954.
ØRay Kroc decided to help the McDonald brothers, Richard
Ray Kroc
and Maurice, with their business ensuring more stores will
be opened if his multi-mixers were sold to their
customers.
ØRay Kroc opened his first McDonald franchise store in
1955.
Ø1960 – 1st slogan ‘ look for the golden arches’
Ø1961 – Ray Kroc buys out the McDonald brothers for
$2.2 million

De Plaines,
Illinois - 1955

McDonalds Poster
1955
 McDonald’s History
Ø In 1965 McDonalds went public – selling on the
stock exchange.
Ø 1968 - Jim Delligatti designed the ‘Big Mac’ and
opened 12 stores in Pittsburg
‘Big Mac’ Ø 1973 - Herb Peterson designed the ‘egg McMuffin’
Ø 1974 - Fred Hill partnered with McDonalds to create
the clown, Ronald McDonald which means ‘FUN’.
He also opened a charity house for terminally ill
children.
Ø 1975 – first McDonalds ‘drive thru’ was opened
Ø 1979 - June, the kids ‘Happy Meal’ was started by St
Louis Missouri
Ø 1984 – Ray Kroc died
Ø 1986 – ‘Drive thru’ restaurants opened in UK
Ø 1996 – McDonalds was on the W.W.W


‘Happy meal’ 1979 ‘Egg McMuffin’

 McDonald’s Products
1.What are McDonald’s products 5 main
ingredients?
- Beef, Chicken, Bread, Potatoes & Milk
2. What is McDonald’s biggest seller?
- ‘chips’
3. What is McDonald’s latest product?
-The ‘Legend’
4. What other brand products do
McDonald’s uses?
-Cadbury’s, Coca Cola, Danone, Heinz, Mc
Cane, Minute Maid, Mother Parkers,
Nestle’, Quaker, Saputo
 McDonald’s Products

The product – features, quality, quantity



Product features – ‘think global, act local’

Muslim community – ‘Halal’ McDonalds

Jewish community – ‘Kosha’ McDonalds

Hindu community – vegetarian McDonalds



Product Quality & safety checks are taken
from all stages of production from the farm to the
restaurant ensuring the right quantity and quality
is produced.

 McDonald’s Price
100

This law of ‘supply &

Price of product

demand’
helped the company to
grow
Product quantity and expand rapidly
100
0

Ø Studies show customers will not pay more than £2.50

for a burger, but McDonalds can charge £2.79 –
they are a ‘top brand’
Ø How does McDonald choose the right price for the
right market?

-Selecting price objective

-Determining demand

-Estimating cost

-Analysing competitors cost prices and offers

-Selecting a pricing method
Toasted Deli

-Selecting a final price Sandwich
Ø Value pricing & psychological pricing £2.79p

 McDonald's location

McDonald's restaurants are placed in 120 countries around the world. The picture
shows an example of where they are situated and the dates of when they where
opened.
 McDonald’s Target
Market
Since Ronald
McDonalds has a McDonald was
multi-faceted target invented
audience. The biggest target
audience - Children!

Targets:
-Families
-Single people Vegetarians, their
-Older people newest target
-Children audience – since the
-Teenagers vegetarian menu
started
 McDonald’s Adverts &
Promotions
ØMcDonalds has a £35 million marketing budget
in the UK alone
- Kids Advertising – internet games featuring
Ronald McDonalds
-‘Happy meal’ Toys – Disney has a strong
relationship with the Happy meal
- Monopoly board game – collect a certain
amount of vouchers to win a prize!
-Alan Shearer – use his on adverts to sell a
burger

(http://www.youtube.com/watch?v=ZwkZHSbvBIY&feature=related)
- McDonalds Advert -
McDonald’s Competitors

McDonalds has 41%

of the fast food
market share
Wendy's Pizza Hut

2% market share 5% market share

Burger King Taco Bell K.F.C

3.6% market 5% market share
share 5% market share
 McDonald’s Financial
Data
2005 2006 % increase /
Highlights Highlights decrease
(Millions) (Millions)

Sales $19,823 / $21,586 / 8.8% +

Revenue £9,911.5 £10,763
Operating $3,992.5 / $4,445.1 / 11.3% +
profit £1996.25 £2,222.55
Profit after tax $2,602.2 / $3,544.2 / 36.2% +
£1,301.1 £1,772.1

 
Share price $33.72 / £16.8 $44.33 /
£22.17
Earnings per $2.04 / $2.38 /
share £1.02 £1.19
                                             
 McDonald’s SWOT
Analysis
• Strengths

-Global brand power and Fast food giant

-Sell the majority of consumer’s food preferences

-Knowledge of change in culture

-Affordable priced food
• Weaknesses

-Easy targets for health freaks because food is generally
unhealthy

-Media attack on their children target market
• Opportunities

-Image improvement

-Increase in late night opening hours
• Threats

-Rise in competition

-Vulnerability to the disease BSE and Blue tongue scare
 Summary
ØMcDonalds is fast food, global and has the largest market
share (41%) within the consumer fast food market.
ØMcDonalds slogan is ‘I’m Lovin’ it’.
ØLow price, high volume stock- encourages consumers to
buy more of their products.
ØMcDonalds uses the marketing strategy of ‘think global, act
local’ to promote the product to every market place
culturally.
ØMcDonalds has increased profit within the last few years.
ØMcDonalds spends £35 million a year in the UK chains
alone and spends a whopping $2.2 billion a year advertising
globally, no wonder their biggest target audience has always
been the children.
Thank you for
listening!

Any questions?