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8/4/2019 Mcdonalds Power Point
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CONTENTS
1. McDonalds History
2. McDonalds SWOT Analysis
3. McDonalds Product and Target Market4. Market Positioning
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McDonalds History
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The first McDonalds was built in 1940 by
the McDonalds brothers (Dick and Mac)
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Ray Kroc became the first franchisee
appointed by Mac and Dick McDonald
in San Bernardino , California.
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In 1955 , Ray Kroc opened his first restaurant in
Des Plaines , Illinois (near Chicago) , and theMcDonald's Corporation was created .
It is now a museum containing McDonald's
memorabilia and artifacts .
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Ronald McDonald
The first Ronald McDonald
maskot
The new Ronald McDonald
maskot
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McDonalds in Malaysia McDonalds first made its way to our shores in
December 1980 when McDonalds Corporation,
USA gave GOLDEN ARCHES RESTAURANTS SDNBHD the license to operate McDonalds
restaurants in Malaysia.
We in Malaysia got our first taste of McDonalds
when McDonalds Malaysia opened its first
restaurant at Jalan Bukit Bintang, Kuala Lumpur
on 29 April 1982.
To date, McDonalds Malaysia has more than 200
restaurants located nationwide and is currently
expanding at about 20-25 restaurants annually.
McDonalds has created many jobs opportunities
in Malaysia.McDonalds Malaysia employs almost
10,000 local people with 120 support staff at its
headquarters managing the day-to-dayoperations of the McDonalds business.There is
also a regional office in Penang and Johor Bahru.
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In 1961 , Hamburger University opened in Elk Grove , near Chicago .
In 1967 , the first restaurants outside of the USA opened in Canada and PuertoRico .
In 1972 , a new McDonald's restaurant opening every day .
In 1974 , the company decided to target children with TV ads .
In 1980 , 1000th international restaurant opened .
In 1983 , the McDonald's Corporation became sole owners of McDonald's inthe UK . The Company is named McDonald's Hamburgers Limited .
In 1986 , the first World Day of Action Against McDonald's
was held on 16th October (UN 'World Food Day') .
In 1989 , the UK Manchester regional training centre was opened .
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In 1992 , McDonald's opened in a railway station at Liverpool Street , London .The first restaurant in European hospital opened at Guy's Hospital , London .
In 1994 , the total of restaurants opened over 15000 in 79 countries on 6continents . The company threatens legal action against a topless restaurant inAustralia called "McTits .
In 1996 , McDonald's opened the world's first fast-food ski-through in theLindvallen resort (Sweden) .
In 1996 , McDonald's opened stores in India and Belarus , its 100th country .
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SWOT ANALYSIS
MCDONALDS
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STRENGTHS
Ranks very high on the Fortune Magazines food servicecompanies that are most admired list.
One of the brand recognition in the world, the goldenarches and Ronald McDonald.
Global operation all over the world. Cultural diversity in the foods that are provided based on
location of the restaurant.
Excellent locations in theme parks, airports, Wal-Mart
stores, and along most well traveled roads. Efficient operating guidelines in the assembly line
fashion.
Food safety guidelines are strictly adhered to.
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WEAKNESSES
Failing pizza market thus limiting their ability to completewith fast food pizza providers.
Training costs concentration on providing organic foods.
Very minimal concentration on operating profits makingimpacts on the investors.
Not much variation in seasonal products that are offered.
Quality concerns due to franchised operations.
Focus on burgers and grease fried foods and not onhealthier options for their customers.
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OPPURTUNITIES
Opening more joint ventures with several differentretailers.
Being more responsive to the social changes to healthieroptions.
Advertising the cap abilities of Wifi internet services inthe environment.
Expansions of business into newly developed parts inthe world.
Open product up to allergen free options such arepeanut free and gluten free foods.
Continue to venture into more enticing beveragechoices.
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THREATS Their marketing strategies entice people from small
children all the way to adults and the criticism that theytake because of it.
Lawsuits for offering unhealthy foods that have allegedadditives.
Contamination risks that include the threat of e-colicontainments.
The vast amount of eat in fast food restaurant are openare competition.
Social changes to a more balanced meal including fruitsand vegetables in servings of five per day.
focus on healthier dieting by consumers.
Down turn in economy affecting the ability to eat out asmuch.
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In order to satisfy the palate ofthe local population of acountry, McDonalds offersregionalized products in itsmenu. The result isMcDonalds products which isnot available in other countriesis only exclusive to a particularcountry.For example, in thisslide show, we will discussproducts in three differentcountries in Asia, that isMalaysia, India and China.
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McDonalds At Malaysia
All McDonalds products at Malaysia are certified Halal.
McDonalds products at Malaysia are free from pork items since majority of thepopulation here consists of Muslims.
McDonalds Malaysia introduces special products during a particular season.Forexample,
1. Prosperity burger during Chinese New Year
2. GCB burger
3. Nasi Ayam McD and many more
Even, McDonalds Malaysia has special offers during the Ramadhan month forsahur and breaking fast.
Besides that, menus at Malaysia are also tailored following the culture of the societyhere.For instance, Malaysian has a culture of having rice as their main source offood, therefore, McDonalds Malaysia introduces Bubur Ayam McD in their menuslist.
On top of that, McDonalds Malaysia has a very catchy and easy to rememberMcDelivery service number, that is 1300-13-1300.
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McDonalds At China
In China, the Chicken McNuggets come with the traditional BBQ, Sweet & Sour, and
Honey Mustard sauces, but there is also a chili garlic sauce which is very popular in
China.
They also include crispy chicken wings called McWings on their menu, which comes in 2,
4, and 6 pieces.
There is also a seasonal Chinese New Year meal available, including Grilled Chicken
Burger, curly fries, with a horoscope of the twelve zodiac animals of Chinese astrology
and traditional "red" packets, or gift bags, for monetary gift giving as good luck.
What is also interesting to note is that in china, McDonald's offers a delivery service in
most major cities- the delivery number within China is 4008 517 517, as the Chinese
pronunciation of 517 is wu yao qi which sounds similar to wo yao chi which means
"I want to eat".
Deliveries are taken 24 hours a day via a call centre to anywhere that is within 5 km of arestaurant (3 km in several cities).
Deliveries are usually made by electrically powered scooters, although in several cities
where motorcycle bans are in place, a conventional courier bicycle is used. Food is
normally carried in a large insulated backpack.
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McDonalds At India
India is the only country that offers vegetarian menu.
It dropped ham, beef and mutton burgers from the menu.
Even the sauces and cheese used in India are100% vegetarian.
Some of McDonalds menus offered at India includes :
1. Vegetable McCurry Pan
2. Chicken McCurry Pan3. Maharaja Mac which is the Indian version of Big Mac
4. McVeggie which is a vegetable burger and many more
Pork and Ham meats were against the religious beliefs of the Hindus and Muslims in
India,who made up most of the Indian culture fabric.As a result, McDonalds for the
first time in their history, decided to remove away with the pork and beef items from
their menu. In 2006, McDonalds even dropped mutton items from theirmenu.McDonalds also re-engineered their operations to ensure that the cheese and cold
sauces used are absolutely 100% vegetarian. Also, In India, meat and vegetarian meals
are prepared in separate areas of the restaurant because of religious laws about
preparation of food for vegetarians and meat-eaters.
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McDonalds has successfully used a differentiated market
segmentation strategy by targeting the family unit and
particularly children with their Family Breakfast Box, HappyMeals and many more.McDonalds offers lower prices compared
to some fast food restaurants, thus gaining the patronage of
larger-size families.
Next, the location of most McDonalds restaurants is located in
one of the most busiet cities in Malaysia.For example, the first
McDonald outlet in Malaysia is opened at Jalan Bukit Bintang,
Kuala Lumpur.Most of the people at Kuala Lumpur are
profesionals who are very commited and busy with their daily
routine who are always looking for a faster alternative in making
decisions to suit their fast living life style.This includes in
making decision of what food are they going to eat.People living
in busy cities prefer to buy food that are fast and
efficient.Therefore, McDonalds also target busy workingcommunities to buy their product by offering McDelivery
service, 1300-13-1300.
In short, McDonalds target all consumers of demography
particularly families and children.
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The best way to describe McDonalds market position is
to illustrate all of the market positions they could have
gone after, but decided not to :1. McDonalds could have been a fast food restaurant with
better quality food than all of their competitors, but at
slightly higher prices and that would take slightly longer
to prepare
2. They also could have been the fast food restaurant with
the widest menu offering the most choise to their
customers3. Or, they could have targeted the adult market instead of
focusing their marketing efforts on children and families
But they did none of those things.They looked at the
market and decided that the best opportunity for their
business was in attracting the business of families with
children, and so they took up that position in the
market.
Bear in mind that McDonalds did a lot of research onthe market and identified the most profitable market for
their products, then refined their marketing and
operations to deliver on what their chosen market would
want.
Clearly, McDonalds decision was a success for
them.However, even though McDonalds dominates the
fast food category, there are plenty of alternative market
positions available to other businesses in that market.
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