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DISSERTATION REPORT

ON

CONSUMER PREFERENCE TOWARDS MCDONALD’S IN SINGAPORE

SUBMITTED BY:

ANKIT DHANKAR

MBA-M&S CLASS OF 2011

Under the esteemed guidance of

Mr.Vivek Singh Tomar

(Sr. Lecturer)

(Department of Marketing)

In partial fulfillment of the award of Master of Business Administration

AMITY BUSINESS SCHOOL

SUBMITTED TO

MR.KAKKAR

MR.TOMAR

MR.EASWARAMURTHY

MR.ROGER LOW
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DECLARATION

I, ANKIT DHANKAR, student of AMITY UNIVERSITY (MBA-M&S) hereby declare that this
dissertation has not been submitted as an exercise for a degree at this or any other university
earlier. Also it is entirely my own work although due acknowledgement has been made in the
text to all other material used and I agree that the university has full rights to lend or copy this
dissertation upon request.

Date:-

Place:- Singapore. Signature

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EXECUTIVE SUMMARY

This report is on the topic “CONSUMER PREFERENCE TOWARDS MCDONALD’S’’. It


talks about the fast food sector to which McDonald’s belongs, competitors, threats and the
customer satisfaction and preference towards McDonald’s outlet in Singapore. McDonald’s is a
part of McDonald’s Corporation US.

We as a part of our research work are trying to understand the customers satisfaction level and
preference which can fulfill all the customer needs which will be further classified and further
discussed in the report. Our basic objective of this Research work is to study the level of
customer satisfaction and preference towards McDonald’s in Singapore, buying behavior of the
people living in Singapore and thus listing out the short comings and drawing out conclusions
according to the present needs of the consumer. As, it’s said that ‘Customer is the King’ so all
his/her needs have to be catered to.

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INDEX

No. Topic Page No.

1. Chapter 1 -Introduction to Research Problem 5

2. Chapter 2- Introduction of the Company 6

3. Chapter 3- SWOT & PEST Analysis 20

4. Chapter 4- Review Of Literature 24

5. Chapter 5- Research Methodology 26

6. Chapter 6- Data Analysis 30

7. Chapter 7- Findings 38

8. Chapter 8- Recommendations 42

9. Chapter 9- Bibliography & Annexure 43

INTRODUCTION TO RESEARCH PROBLEM


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MOTIVE: - The basic motive of preparing this report is to study the consumer preference
towards McDonald’s in Singapore and to know about the Buying Behavior of consumers for
McDonald’s.

OBJECTIVES: - The objective of the report is to study the consumer preference towards
McDonald’s in Singapore and also to analyze the buying behavior of Burgers by the people
living in Singapore.

SCOPE: - This report to some extend will tell us about the success of the McDonald’s in
Singapore and also about the various other fast food outlet like KFC, Mos Burgers Pizza Hut,
etc in Singapore . This report will also help me to know more about the market strategies and
selling modes followed by McDonald’s in Singapore and various kind of recommendations and
suggestions.

METHODOLOGY: - I have got 50 questionnaire filled in by the localities and customer


outside the McDonald’s regardless of caste, creed, nationality in Singapore. These questionnaires
will account for my primary data where as the secondary data has been picked up from the
internet, books, articles and journals.

ROLE OF MARKET RESEARCH AND OPPURTUNITY ANALYSIS: Market research can


be defined as the systematic gathering, recording analysis and interpretation of data on problems
relating to the marketing of goods and services. The role of market research is primary to act as
an aid to the decision maker. It a tool that can help toreduce the risk of decision making caused
by the environmental uncertainties and lack of knowledge in international marketing. In
international marketing because of the increased uncertainties and complexities in the world
markets, capacity to ensure systematic planned process in the research and the use of secondary
information .the research process of six stages .these steps are logical process of any research.
Defining the problem: It is important to decide what information is needed and set the objectives
of the research, ensuring it is both commercially and worthwhile and that the objective is feasible
and achievable. Developing the approach to be taken: the planning phase will concern itself with
timescales, resources to carry out the work, the expertise required to meet the objective and the
decision as to whether a qualitative or quantitative approach is to be taken. Designing the
research: In the designing the research strategy considerations will be given to the different
action steps that need to be taken. Ensuring full use of secondary data sources will be important,
as well the use of a pilot study to ensure the development of an effective and meaningful
questionnaire. Carrying the out of field work: Decisions as to how the questionnaire will be
administrated will be made as well as decisions as to who do the work and what resources are
required. Analyzing the data: The data analyzed stage will need to take full account of the
objectives of the research and the clients and needs. Preparing the report and the presentation:

These are the outputs of research work and vital in establishing the credibility of the research
methods used and the validity of the findings of the research.

INTRODUCTION OF THE COMPANY


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Founded in 1955 by Ray Kroc, McDonald’s corporation today is known around the world as an
icon of American life style, marketing billions of hamburgers around the world. McDonald’s is
the largest and best known global food service retailer 31,000 restaurants across 117 countries.
Yet on any one day, even as market leader, McDonald’s serves less than 3% of the world’s
population.

Its outstanding brand recognition, experienced management, high quality food, site development
expertise, advanced operational systems and unique global infrastructure position it to capitalize
on global business opportunities. McDonald’s plan to expand its leadership position through
great tasting food, superior service, everyday value and convenience have made it a well known
brand name around the world. Its efforts to increase market share, profitability and customer
satisfaction have produced high returns to shareholders-a compound annual return of 24% over
the past 10 years.

McDonald’s Vision

McDonald’s vision is to offer the world’s best and quickest service restaurant experience to its
customers all over the world. Being best in the business means consistently satisfying customers
better than anyone else through outstanding quality, service, cleanliness and value. Supporting
this vision are five global strategies being pursued by McDonald’s worldwide:

• Developing its personnel at every level of the organization, beginning in its restaurants.

• Constant innovation in its menu, facilities, marketing, operations and technology.

• Expanding its global mindset by sharing best practices and leveraging their best people
and technology resources around the world.

• Long term re-invention of the category in which it competes and the development of
other business and growth opportunities.

• Continue the successful implementation of changes.

The McDonald's Promise

QSC&V......The Foundation that built McDonald's success

when asked to explain McDonald's success, founder Ray Kroc used


to say, "We take the hamburger business more seriously than anyone
else."
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Kroc was a perfectionist. From the day he opened his first restaurant, he vowed to give his
customers high quality products, served quickly --and with a smile, in a clean and pleasant
environment, and all at a fair price. Quality, Service, Cleanliness and Value (QSC&V) became
the philosophy that drove McDonald's business.

McDonald's Quality Management instills the culture of quality through such principles as being
customer driven, managing with facts, valuing people, and continually improving every aspect of
our business

Service that is fast and friendly and has always been a foundation for success McDonald's
Cleanliness for us means having the cleanest and freshest facilities from the kitchen to the rest
rooms and parking lots

Value at McDonald's means the total experience...... great food, friendly folks, a clean
environment, quick and accurate service and fun!

McDonald's Singapore
McDonald's opened its first restaurant in Singapore in 1979. And what an event that was - the
world's highest volume of hamburgers was served that auspicious October day at Liat Towers!
Today, over 110 McDonald's restaurants across the island serve 1.2 million customers every
week. 7,000 employees keep the McDonald's restaurants running ship-shape.

Milestones

McDonald's opened its first restaurant in Singapore in 1979. And what an event it was! The
world's highest volume of hamburgers was served that auspicious October day at Liat Towers.
Today, 6000 staff in over 120 McDonald's restaurants across the island keep the McDonald's
machine running ship-shape. Together, we serve 50 million customers every year.

Singapore Milestones

Apr 2009 Hewitt Best Employer Award 2009

Hewitt Best Employer in Asia Award 2009

Feb 2009 HRM Awards for Best Employer Branding and Innovation in Recruitment

Jul, 2007 McDonald’s and Managing Director Recognized in

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SHRI HR Awards 2007

After recently being listed among Singapore’s top 10 Best Employers,


McDonald’s was once again recognized for leading HR practices when it was
conferred two awards at The Singapore HR Awards 2007 organized by the
Singapore Human Resources Institute (SHRI) – the Corporate Award and the
Leading CEO Award for its Managing Director, Kenneth Chan.

May, 2007 “Red PEA – PLAY, EXERCISE, ART” –


McDonald’s Unique Brand Family Entertainment

Recognizing the significant role Moms play in the well-being of families, and to
learn from their valued views and perspectives, McDonald’s took the initiative to
set up the first Moms Panel, comprising 5 Singaporean moms from diverse
backgrounds, to listen to what parents want for their children and respond directly
to families’ changing needs. The moms’ input would be sought in Happy Meal
menu development, Happy Meal choices, and in-restaurant activities for families
and educational outreach for children’s well-being.

May, 2007 McDonald’s Sets Up First Moms Panel in Singapore

Recognizing the significant role Moms play in the well-being of families, and to
learn from their valued views and perspectives, McDonald’s took the initiative to
set up the first Moms Panel, comprising 5 Singaporean moms from diverse
backgrounds, to listen to what parents want for their children and respond directly
to families’ changing needs. The moms’ input would be sought in Happy Meal
menu development, Happy Meal choices, and in-restaurant activities for families
and educational outreach for children’s well-being.

Apr, 2007 McDonald’s Employees Take Centre Stage in Employer Brand Campaign

“I-stories” abbreviated from “I’m loving’ it” and “inspirational” stories of


McDonald’s employees were unleashed in eye-catching advertisements at the
Raffles Place and City Hall MRT stations as part of an employer brand campaign.
Each of the 17 featured employees’ stories celebrates people excellence and the
endless opportunities for individuals who seek a career at the Golden Arches.

Apr, 2007 McDonald's Amongst Singapore’s Top 10 Best Employers

McDonald’s long-standing philosophy that the company can grow only if it


enables its employees to grow, contribute and feel pride in their work garnered it a
5th place ranking among Singapore’s Top 10 Best Employers. The Best

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Employers in Singapore 2007 study conducted by global human resources
services firm Hewitt Associates in partnership with The Business Times and The
Straits Times Recruit assessed more than 750 participating companies. The award
marked the first time that a company in the Quick Service Restaurant sector was
singled out as one of Singapore’s Top 10 Best Employers.

Apr, 2007 The First Ronald McDonald Family RoomTM Opens in Singapore

Located at KK Women’s and Children’s Hospital, the Ronald McDonald Family


Room is a ‘home away from home’ for parents to stay or rest in, as they tend to
their sick children who are hospitalised. The opening on April 12, 2007 was
officiated by Dr Vivian Balakrishnan, Minister for Community Development,
Youth and Sports and Second Minister for Information, Communications and the
Arts. The Ronald McDonald Family Room occupies one of the closed wards in
KKH’s Women’s Wing and has 12 bedrooms, a dining area, a pantry, ‘quiet
rooms’, an adult/children’s library, a children’s playroom, TV lounge and internet
corner.

Apr, 2007 Felicia Yee, our Singaporean Global Casting Star Goes Global

The Singapore launch of McDonald’s new packaging featuring 24 “stars” selected


from its first-ever online consumer Global Casting Call with our very own “Star”,
Felicia Yee, greeting more than 50 million people worldwide. She joins the ranks
of famous faces who have been featured on McDonald’s packaging, including
Olympic athletes, tennis superstars Venus Williams and Serena Williams,
basketball sensation Yao Ming and pop group Destiny’s Child.

Feb, 2007 Breakfast Launch - McCafé Premium Coffee Available All Day Islandwide

In response to popular demand since the first McCafé opened in late 2003,
McDonald’s introduced the all-time McCafé favourites – Cappuccino, Latte and
Long Black – in almost all its restaurants islandwide. With this initiative,
McDonald’s has become the largest purveyor of premium coffee at great value for
its customers. Coffee lovers can enjoy their McCafé premium coffee made only
with 100 percent Arabica beans all day at McDonald’s restaurants and via
McDelivery 24/7.

Nov, 2006 Launch of Grilled Chicken Bun

In celebration of the year’s World Children’s Day in Singapore, McDonald’s


launched the Grilled Chicken Bun, a new Happy Meal entrée especially for

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children. Grilled Chicken Bun is a lightly grilled chicken patty with fresh tomato
slice, crisp lettuce and a light touch of mayonnaise between tasty buns, almost
akin to a Happy Meal version of Mum’s favourite Grilled Chicken Foldover.

Nov, 2006 Official Opening of McDonald’s Ang Mo Kio Town Garden West

McDonald’s celebrated the official opening of the 24-hour McDonald’s Ang Mo


Kio Town Garden West restaurant, the second collaboration between McDonald’s
Restaurants and the National Parks Board (NParks), after the well-received
McDonald’s West Coast Park Restaurant. Complete with a Drive-Thru and
McCafé, the restaurant iffers a close-to-nature alfresco dining experience with its
unique architectural concept of elevated decks integrated with the natural foliage.
The opening was also held in conjunction with World Children’s Day and the
launch of the new Grilled Chicken Bun Happy Meal item.

Nov, 2006 Singaporean among McDonald’s 25 Global Casting Stars

McDonald’s announced the 25 “stars” selected from its first-ever online Global
Casting Call. Felicia Yee from Singapore joined the 24 other selected “stars”
from Asia, Australia, Europe, Latin America and North America to be featured in
McDonald’s first ever global packaging showcasing customers from around the
world.

Aug, 2006 1st 41 Tourists Given A McDonald’s National Day Welcome

To commemorate Singapore’s 41st birthday, McDonald’s and the Civil Aviation


Authority of Singapore (CAAS) staged a special welcome to the first 41 tourist
arrivals at Changi Airport. Each tourist received an exclusive McDonald’s
“Uniquely Singapore” Teenie Beanie garland, presented by Ronald McDonald,
Chief Happiness Officer at Changi Airport’s Terminal 1.

Aug, 2006 Veg Out Day

McDonald’s launched Veg Out Day as part of its ongoing support for the Health
Promotion Board’s “eat 2 servings of fruit + 2 servings of veggies” public
educational outreach. Every first day of the month, customers can enjoy
McDonald’s Fresh Sidekicks such as Corn Cup, Fresh Salad and Apple Dippers at
$1 each, with no additional purchase required. The Fresh Sidekicks are usually
priced at $2.50 ala carte.

June 2006 McDonald’s Sent Three Singaporean Kids As Player Escorts To World Cup

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For the first time, children from Singapore participated as player escorts at the
FIFA World CupTM. Three parent-and-child teams were selected Danyon
Christian Tay, Luke David Levy and Colin Oon made history as the first children
from Singapore to escort the world’s best football players onto the pitch at the
2006 FIFA World Cup Germany Opening Match (Germany vs Costa Rica) on
June 9, 2006. This was made possible by McDonald’s which, as a World Cup
sponsor, had the exclusive rights to the 2006 FIFA World Cup Player Escort
Programme.

Mar, 2006 Launch of more menu choices


McDonald's committment to help customers achieve balanced eating saw the
launch of Corn Cup, Apple Dippers and Fresh Salad as wholesome menu choices
to complement Extra Value Meals.

Dec, 2005 McDonald's makes rice Fàn-tastic!


The Chicken Fàn-tastic and Beef Fàn-tastic were launched, presenting a new,
exciting way to enjoy a hand-held rice meal. By February, one million Fàn-tastic
had been sold.

Aug, 2005 McDonald's goes 24 Hours


McDelivery was relaunched as a 24-hour service, available seven days a week and
with no minimum order requirement. 18 McDonald's restaurants also started
staying open 24 hours.

July, 2005 Olympic Day Run


In Singapore, the Olympic Day Run on July 2 was officially flagged off by Dr
Jacques Rogge, President of the International Olympic Committee. McDonald's is
the exclusive worldwide partner of the Olympic Day Run.

June 2005 Mix 'N' Match Happy Meals


McDonald's Singapore launched the Mix 'N' Match Happy Meals, a new menu
concept comprising a wider variety of wholesome choices, at no extra charge.

Dec, 2004 Launch of Grilled Chicken Foldover


McDonald's introduced the Grilled Chicken Foldover, a new style of McDonald's
sandwich made with wholesome flatbread.

May, 2004 ez-link Cashless Payment and Top-up Service


McDonald's became the first quick service restaurant here to accept the ez-link
card as a payment mode, as well as to offer a top-up service.

May, 2004 McDonald's West Coast Park

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McDonald's first tropical resort-inspired restaurant opened at West Coast Park.
Includes a McCafé, two alfresco dining areas and a landscaped pond.

Mar, 2004 Wi-Fi at McDonald's


Singapore's first "second generation public Wi-Fi network" in McDonald's was
officially launched by Mr Khoong Hock Yun, Assistant Chief Executive Officer
(Industry) of Infocomm Development Authority of Singapore.

Oct, 2003 "HOT" Customer Service


McDonald's introduced the hand-held order taking (HOT) device, a technological
first in McDonald's Asia.

Oct, 2003 First McCafé opened in Singapore


McDonald's opened its first McCafé at Great World City in Singapore. McCafé's
Latte was ranked 4-star, in an independent coffee taste test conducted by The
Straits Times. It surpassed the ranking of numerous established specialty brands.

July, 2002 Chicken Big Mac


McDonald's Singapore became the first in the world to offer the Chicken Big
Mac.

Jan, 2001 New Hello Kitty and Dear Daniel plush series launched in Singapore ahead
of the rest of the world
Singaporeans' fascination with Hello Kitty and Dear Daniel prompted McDonald's
to launch its new series of "Royal" Hello Kitty and Dear Daniel here, ahead of
other countries.

Dec, 2000 McDonald's opened 14 more restaurants in 2000 bringing the total to 122
restaurants

Sep, 2001 McDonald's at KK Women's and Children's Hospital


McDonald's first restaurant in a hospital opened at the KK Women's and
Children's Hospital. Special items were added to the regular menu, including low-
fat milk, Coke Light, soup and salad.

Apr, 2000 McDonald's first alfresco restaurant opened at Scotts Road

Jan, 2000 Hello Kitty


McDonald's launched six exclusively designed pairs of limited edition Hello Kitty
and Dear Daniel plushes in wedding attire. The most successful promotion to
date, there were record sales of the plushes and 'Kitty Mania' made headlines
around the world.

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Apr, 1999 10 Million Chicken McCrispy sold
Chicken McCrispy was a resounding success. An amazing 10 million pieces was
sold in the first year alone. To thank loyal customers, the original price of $3.90
was brought down to just $2.95.

Jul, 1999 Celebrating 20 Years of Smiles


McDonald's celebrated its 20th anniversary with an exhibition at the Singapore
History Museum and an advertising campaign that featured ordinary people
reminiscing about their first experiences at McDonald's, when it opened at Liat
Towers in 1979.

Feb, 1999 Pooh Plushes


McDonald's Pooh plushes proved once again to be one of the fastest-selling
collectibles with one million plushes cleared within 10 days of the "Pooh's Back"
promotion. This superseded the 700,000 Pooh and friends plushes that were sold
in the first Pooh promotion in 1997.

Dec, 1998 McDonald's opened 8 more stores in 1998 bringing the total to 108
restaurants island wide

Dec, 1998 McDonald's continues to be Singapore's largest advertiser with some $10
million spent across all media in 1998

Aug, 1998 Snoopy goes on a world tour of McDonald's


The Snoopy World Tour featuring 28 designs became one of the most popular
McDonald's collectibles with more than 800,000 pieces sold.

1998 It's the Big Mac's 30th anniversary!


Approximately 600 million Big Mac sandwiches were consumed annually in the
United States. In Singapore, 3.3 million Big Mac, i.e. about one per Singaporean,
were sold in 1997.

Dec, 1997 McDonald's surpassed the 100 store mark with Nanyang Polytechnic as the
100th store.

Dec, 1996 McDonald's opened 20 restaurants in 1996

Dec, 1996 McDonald's sold 21 million meals comprising breakfast, lunch, dinner and
Happy Meals

Dec, 1996 101 Dalmatians Happy Meal

With 1.2 million pieces sold, the 101 Dalmatians became the all-time best-selling
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Happy Meal figurines. The promotion was brought back a year later due to
popular demand.

Dec, 1996 McDonald's at Seagate, Ang Mo Kio

First quick service restaurant (QSR) to open in a staff cafeteria of a multinational


company.

1996 First McDonald's in a Community Centre

This was not only the first McDonald's restaurant in Hong Kah Community
Centre, it was also the pioneer within the quick-service food industry.

Dec, 1995 McDonald's opened 11 restaurants in 1995

Dec, 1995 McDonald's 15th Anniversary of Happy Meal

In 1995, McDonald's celebrated the 15th anniversary of the Happy Meal and
introduced 15 collectibles from international licensors.

Jul 5, 1993 First McDonald's Restaurant in an Educational Institution McDonald's


Singapore Polytechnic opened.

Sep, 1992 McDonald's Becomes Halal

McDonald's received Halal certification from MUIS (The Islamic Religious


Council of Singapore) which approved McDonald's food for consumption by
Muslims.

Apr 10, Beijing, China Operations


1992
McDonald's Singapore sent an 11-member team to help start up operations in the
world's largest McDonald's restaurant in Beijing.

Oct, 1991 "A Day in Singapore"

This was the first local TV commercial to feature all four official languages in one
advertisement.

Jun 4, 1991 Opening of McDonald's Place, McDonald's new corporate headquarters at


King Albert Park

1989 Ronald McDonald Children's Charity (RMCC)

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RMCC Singapore was established to help raise funds for sick children from needy
families.

May 22, First McDonald's in a Public Housing Estate


1984
It opened at Hougang and set the growth for more McDonald's restaurants in
HDB neighbourhoods.

Oct 27, First McDonald's Restaurant in Singapore


1979
On opening day at Liat Towers, Orchard Road, we served up the world's highest
volume of hamburgers in a single day.
BUSINESS MODEL

McDonald's Corporation earns revenue as an investor in properties, a franchiser of restaurants,


and an operator of restaurants. Approximately 15% of McDonald's restaurants are owned and
operated by McDonald's Corporation directly. The remainder is operated by others through a
variety of franchise agreements and joint ventures. The McDonald's Corporation's business
model is slightly different from that of most other fast-food chains. In addition to ordinary
franchise fees and marketing fees, which are calculated as a percentage of sales, McDonald's
may also collect rent, which may also be calculated on the basis of sales. As a condition of
many franchise agreements, which vary by contract, age, country, and location, the Corporation
may own or lease the properties on which McDonald's franchises are located. In most, if not all
cases, the franchisee does not own the location of its restaurants. The UK business model is
different, in that fewer than 30% of restaurants are franchised, with the majority under the
ownership of the company. McDonald's trains its franchisees and others at Hamburger
University in Oak Brook, Illinois. In other countries, McDonald's restaurants are operated by
joint ventures of McDonald's Corporation and other, local entities or governments. As a matter
of policy, McDonald's does not make direct sales of food or materials to franchisees, instead
organizing the supply of food and materials to restaurants through approved third party logistics
operators. According to Fast Food Nation by Eric Schlosser (2001), nearly one in eight workers
in the U.S. have at some time been employed by McDonald's. (According to news piece on Fox
News this figure is one in ten). The book also states that McDonald's is the largest private
operator of playgrounds in the U.S., as well as the single largest purchaser of beef, pork,
potatoes, and apples. The selection of meats McDonald's uses varies with the culture of the host
country.

Adaptation of menu to Singaporeans’ Tastes

McDonald’s has been in Singapore for 30 years. It has been constantly improving its product
over the years. It has made changes in the ingredients by using healthier alternatives such as the
use of non fat oil for its French fries. In addition, it has also been introducing new products to
cater to the taste of the local Singaporeans.
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Since its inception in 1979, McDonald’s Singapore has come up with products that are unique to
the tastes and lifestyles of Singaporeans. Not only are the names of the burgers introduced for
Singapore market are unique, but their tastes and ingredients also reflect the uniqueness of the
Singapore market.

Menu Refinements

McDonald’s Singapore not only introduced new products for the local consumers it also refined
its product ingredients. Further more due to the increasing public interest in good health and
nutrition, McDonald’s Singapore made these refinements to meet the changing demand of the
contemporary health conscious Singaporeans. Hence, McDonald’s Singapore has been
constantly re-evaluating the ingredients in its product over the last 30 years.

In 1992 McDonald’s dropped monosodium glutamate(MSG) in all its meat patties. In 1996
McDonald’s switched to 100% vegetable oil to cook its burgers, fries and hash browns.

Other than improving the ingredients used, McDonald’s has made its nutritional information
about its menu available to its customers since march 199. McDonald’s Singapore was the first
fast food chain to do so in the city-state. This nutritional information allows Singaporeans to
have a good idea of the food that they are eating. This is important, as increasingly customers are
becoming very particular about the type of food they eat and the kinds of ingredients that are
used. Customers can also order any of the McDonald’s Singapore food without grill seasoning or
dressing. Customers who find the mayonnaise or tarter sauce used in the burger too flattening
can place special orders for their burgers to come without these sauces.

Pricing strategy

McDonald’s Singapore has adopted a differential pricing strategy across the state. For instance,
the price of a large packet of French fries costs about 20 cents cheaper in neighborhood stores
and outlets at the Singapore polytechnics than its outlet in the Central Business District(CBD)
area. This is largely attributed to the high rental costs in CBD areas.

McDonald’s often distributes coupons to reward loyal customers as well as motivate potential
customers to try its menu. In 1998, there was the giving away of 6 pieces of McNuggets for
every chicken value meal purchased. Sometimes, this strategy ties in with upcoming festive
season like Chinese new year, valentine’s day, national day etc. another move to demonstrate its
“everyday good value at McDonald’s” was the launch of price rollbacks for its products. For
example, for a period of time, the price of ice cream was rolled back to 50 cents, hamburger to
88 cents and cheese burger to 99 cents. Most recently, there was this “$2 a burger” promotion,
whereby selected burgers, were priced at $2 each instead of the usual $3 plus for a short period
of time.
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In addition, McDonald’s has attempted to satisfy the large appetite of its customers by having
low prices for its up-sized value meals. By paying a mere additional 50 cents, a customer’s meal
is upgraded with a large coke and fries.

McCafé -The Revolution

To accommodate the current trend for high quality coffee and the popularity of coffee shops
in general, McDonald's introduced McCafés. The McCafé concept is a café-style
accompaniment to McDonald's restaurants in the style of Starbucks. McCafé is a concept
of McDonald's Australia, starting with Melbourne in 1993.

Today, most McDonald's in Australia have McCafés located within the existing McDonald's
restaurant. In Tasmania there are McCafés in every store, with the rest of the states quickly
following suit. After upgrading to the new McCafe look and feel, some Australian stores have
noticed up to a 60% increase in sales. As of the end of 2003 there were over 600 McCafés
worldwide.

Home Delivery

McDonald’s Singapore has introduced a home delivery service for those who seek convenience.
However, due to lack of expertise and equipment, the McDonald’s Delivery Service(MDS) in
Singapore is currently limited to certain areas of the state.

How to order

Yearning for your favorite McDonald's breakfast while curled up in bed? How about delicious,
piping hot Chicken McNuggets at 12 midnight while you're on the net? Or perhaps you're just
looking for a quick way to feed a bunch of friends who'll be dropping by for a visit. Have no
worries. With McDelivery 24/7 (the only delivery service that never sleeps!), McDonald's
Singapore offers you the convenience of ordering your next meal online, quickly and easily.

If you are a new user, follow these simple steps to order:

1. Click ORDER NOW to view our Ordering Terms & Conditions.


2. Check the YES box after you have read the Terms & Conditions and click NEXT.
3. Click on I'm a New User, enter your contact details and click NEXT.
4. Check that you have entered the correct details and click CONFIRM.
5. Confirm name of person to deliver to, address, delivery point (e.g. Sharon/Reception at
Lobby) as well as the date and time of your delivery.
6. Choose the meal/item of your choice by clicking ADD.
7. If you want to make changes to your order before checkout, check the DELETE box
beside the item you want to change, click UPDATE and re-select your items from the
menu.
8. When you are ready to finalize your order, click CHECKOUT.
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9. Enter your credit card details and check your order list. Once order is confirmed and
online payment is accepted, there will be no refund or cancellation of orders.
10. You may choose to print a copy of the acknowledgment slip for reference or proceed to
Order More.
11. We'll send a confirmation email order to you.

If you are an existing user, the process is made even easier for you:

1. Enter your email, phone number and postcode under Existing User Registration Page.
The system will reflect your registered delivery addresses.
2. Select current delivery address as reflected in the system or click ADD NEW
DELIVERY ADDRESS should you want to change the destination.
3. Follow through Steps 5-11 as stated above to complete your order.

If you have any queries with regard to your confirmed order, please call McDelivery 24/7 at
6777 3777

Potential segment

McDonald’s Singapore places less emphasis on the senior citizens’ segment, as compared to
those in the western countries. This is partly due to the culture of older Singaporeans. The senior
citizens in the western countries grew up eating fast food and it has become a part of their
culture. But both McDonald’s and fast food concepts are considerably relatively new in
Singapore. This, together with the health consciousness of the older Singaporeans has
contributed to the reason why McDonald’s Singapore is still not a hit with the elderly people.

However, the situation is expected to change in the next 10 years, when McDonald’s will
become part of the older Singaporeans culture, as they have grown up eating burgers.

Promotion

• Advertising

McDonald’s Singapore has been the largest advertiser of the state. It spends about S$15 million
on advertisements every year. McDonald’s has been recognized for its aggressive and creative
advertisements. For instance, it is known for extensively using singapore’s well known
celebrities such as Liang PoPo, Zoe Tay, Fann Wong.

• Product Bundling: Burgers and Toys

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One of the important promotional strategies used by McDonald’s Singapore has been the
introduction of collectable toys across the island state. In the past, the collection items were
small plastic toys. Its target markets was kids aged 6 to 12 years old. However, the trends seems
to have changed recently because these collectable items are no longer ordinary toys but are
popular Disney characters, for example, Winnie the Pooh, Snoopy World Tour and Sesame
Street characters, etc. in other words, McDonald’s Singapore has expanded its target market to
the teenagers as well as young adults. This new target market ranges from 13-20 years olds.

When 500 pairs of limited edition “Hello kitty” characters were released at the McDonald’s
behind the Golden Arches exhibition, more than 650 people camped outside for almost 12 hours
in the hope of owning one of them. Blending burgers and toys, it seems, has become the magic
formula in drawing in more crowds. If one were to ask the tactic behind all these, it would be
that McDonald’s Singapore is able to capture the human mindset that “there is a kid in
everyone” and therefore is a potential customer.

McDonald’s Singapore has managed to position itself as a fun and happy place to have a meal.
The sales of toys attempt to make the experience at a McDonald’s outlet different from that of
the other fast food chains.

A key factor in success of these promotions has been choosing the right toys. McDonald’s
conducts consumer surveys before it embarks on the toy selection process. Toys are then picked
according to their collectability, playability and value for money. The collection items are so
much in demand because the chain understands the Singapore market very well and capitalizes
on currently popular toys such as the “Hello Kitty”.

SWOT ANALYSIS

SWOT analysis is a simple framework for generating strategic alternatives from a situation
analysis. It is applicable to either the corporate level or the business unit level and frequently
appears in marketing plans. Such an analysis of the strategic environment is referred to as a
SWOT analysis. A scan of the internal and external environment is an important part of the
strategic planning process. Environmental factors internal to the firm usually can be classified as
strengths or weaknesses, and those external to the firm can be classified as opportunities or
threats. The SWOT analysis provides information that is helpful in matching the firm's resources
and capabilities to the competitive environment in which it operates.

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STRENGTHS

• Large market share.

• Strong supply chain.

• Rigorous food safety standards.

• Decentralized yet connected system

• Strong brand name, image and reputation.

• Strong financial performance and position.

• Affordable prices and high quality products.

• Nutritional information available at stores.

• Strong global presence & performance in the global marketplace.

• Specialized training for managers known as the Hamburger University.

• McDonalds Plan to Win focuses on people, products, place, price and promotion

• Market Leader with 27% of the market share.(2008)

• Global brand power, Global Presence.

• Convenient Locations and Payment Methods (Ezlink)

• Appeals to the mass market (especially the kids)

• 24/7 Operations, Drive Thru, Delivery (extensive coverage of the market)


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• Halal certification.

• Ronald McDonald Children’s Society.

WEAKNESSES

• Unhealthy food image, perceived as junk food.


• High Staff Turnover including Top management.
• Customer losses due to fierce competition.
• Legal actions related to health issues; use of Trans fat & beef oil.
• Franchising fragility–control over franchises.

OPPORTUNITIES

• Expansion of other cashless payment systems.


• Well being and ethical image improvement.
• Expansion of the children market (other business –market penetration)
• Setting up vegetarian menus or outlets to expand the market
• Growing health trends among consumers
• Joint ventures with retailers (e.g. supermarkets).
• Consolidation of retailers likely, so better locations for franchisees.
• Respond to social changes - by innovation within healthier lifestyle foods. Its move into
hot baguettes and healthier snacks (fruit) has supported its new positioning.
• Use of CRM, database marketing to more accurately market to its consumer target
groups. It could identify likely customers (based on modeling and profiles of shoppers)
and prevent brand switching
• Strengthen its value proposition and offering, to encourage customers who visit coffee
shops into McDonalds.
• The new “formats”, McCafe, having Wi-Fi internet links should help in attracting
segments. Also installing children’s play-parks and its focus on educating consumers
about health, fitness.
• International expansion into emerging markets of China and India.
• Diversification and acquisition of other quick-service restaurants.
• Growth of the fast-food industry.
• Worldwide deregulation.
• Low cost menu that will attract the customers.
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THREATS

• Health professionals and consumer activists accuse McDonald's of contributing to the


country’s health issue of high cholesterol, heart attacks, diabetes, and obesity.

• The relationship between corporate level McDonald's and its franchise dealers.

• McDonald’s competitors threatened market share of the company both internationally


and domestically.

• Anti-American sentiments.

• Global recession and fluctuating foreign currencies.

• Intense Competitions

• Growth of health conscious eaters

• Outbreak of diseases (mad cow, H5N1, bird flu, SARS)

• Recent hygiene complaints affect sales

PEST ANALYSIS

POLITICAL AND LEGAL

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• The international operations of McDonald’s are highly influenced by the individual state
policies enforced by each government.

Any changes in regulations, the imposition of additional regulations, or the enactment of any
new legislation under the Obama administration that impacts employment/labor, trade, product
safety, transportation/logistics, health care, tax, privacy, or environmental issues could have an
adverse impact on our financial condition and results of operations.

ECONOMIC

• McDonald’s has the tendency to experience hardship in instances where the economy of
the respective states is hit by inflation and changes in the exchange rates.
• Market leader.
• Very high target market.
• Low cost and more incomes.
• The rate at which the economy of that particular state grows determines the purchasing
power of the consumers in that country.

SOCIAL

• Working within many social groups.


• Increase employments.

TECHNOLOGICAL

• Advanced technology development.


• Quality standards.

Environmental:
• Quality packing.
• Local manufacture using foreign supplies.

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REVIEW OF LITERATURE

Case study

McDonald's Case Study

Introduction

McDonald’s, the long-time leader in the fast-food wars, faced a crossroads in the early 1990s.
Domestically, sales and revenues were flattening as competitors encroached on its domain. In
addition to its traditional rivals—Burger King, Wendy’s, and Taco Bell—the firm encountered
new challenges. Sonic and Rally’s competed using a back-to basics approach of quickly serving
up burgers, just burgers, for time-pressed consumers. On the higher end, Olive Garden and
Chili’s had become potent competitors in the quick service field, taking dollars away from
McDonald’s, which was firmly entrenched in the fast-food arena and hadn’t done anything with
its dinner menus to accommodate families looking for a more upscale dining experience. While
these competitive wars were being fought, McDonald’s was gathering flak from
environmentalists who decried all the litter and solid waste its restaurants generated each day. To
counter some of the criticism, McDonald’s partnered with the Environmental Defense
Fund (EDF) to explore new ways to make its operations more friendly to the environment.

Facts

McDonald’s roots go back to the early 1940s when two brothers opened a burger restaurant that
relied on standardized preparation to maintain quality—the Speedee Service System. So
impressed was Ray Kroc with the brothers’ approach that he became their national franchise
agent, relying on the company’s proven operating system to maintain quality and consistency.
Over the next few decades, McDonald’s used controlled experimentation to maintain the
McDonald’s experience, all the while expanding the menu to appeal to a broader range of
consumers. For example, in June 1976, McDonald’s introduced a breakfast menu as a way to
more fully utilize the physical plant. In 1980, the company rolled out Chicken McNuggets.
Despite these innovations, McDonald’s tremendous growth could only continue for so long. Its
average annual return on equity was 25.2% between 1965 and 1991. But the company found its
sales per unit slowing between 1990 and 1991. In addition, McDonald’s share of the quick
service market fell from 18.7% in 1985 to 16.6% in 1991. Plus growth in the quick service
market was projected to only keep pace with inflation in the 1990s. McDonald’s faced
heightening competition on several fronts. First, its traditional rivals—Burger King, Wendy’s,
and Taco Bell—were eating into its margins through promotions and value pricing strategies.
Taking a leaf from McDonald’s own playbook, Sonic and Rally’s were using a very limited
menu approach to attract time strapped consumers. Finally, Chili’s and Olive Garden were

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appealing to diners looking for something a little more enticing that the familiar Golden Arches
for their families.

In the late 1980s, McDonald’s began recognizing the importance of maintaining an ecologically
correct posture with the public, which was becoming more concerned about the environment. For
example, in 1989, 53% of respondents in one survey revealed that they had not bought a product
because they didn’t know what effect the packaging would have on the environment. Closer to
home, a 1990 study showed that each McDonald’s generated 238 pounds of on-premise solid
waste per day. It’s no surprise, then, that McDonald’s sought a way to reduce its solid waste
while providing a more environmentally acceptable face to the public. Beginning in 1989, it
partnered with the Environmental Defense Fund, a leading organization devoted to protecting the
environment, to seek ways to ease the company’s environmental burden on the landscape.
Together, EDF and McDonald’s considered its impact on a wide range of stakeholders—
customers, suppliers, franchisees, and the environment. The company gave its franchisees much
autonomy in finding ways to eliminate environmental blight. The company’s hope was that from
these divergent approaches, it stood a greater chance of finding solutions with broad applicability
than if it had tried to pursue a one-size-fits-all approach from the outset. Some of the
environmentally inspired solutions that came out of the collaboration with EDF were the:
Introduction of brown paper bags with a considerable percentage of recycled content.
Solicitation of suppliers to produce corrugated boxes with more recycled content, which had the
twin effect of reducing solid waste and building a market for recycled products. Abandonment of
polystyrene clamshell containers to hold sandwiches in favor of new paper-based wraps that
combined tissue, polyethylene, and paper to keep food warm and prevent leakage.

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RESEARCH METHODOLOGY

The fast food business is a highly competitive one. To be successful, it must be able to project
the right image as well as meet the needs of customers. Marketing strategies must be formulated
to attract customers. This report looks at some aspects of the Burger Market in Singapore. It
examines the buying behavior of consumers and gauges their perceptions of marketing variables
specific to the fast food industry (In this case – the Burger Market).

RESEARCH METHODOLOGY USED

DESCRIPTIVE RESEARCH

Descriptive research, also known as statistical research, describes data and characteristics about
the population or phenomenon being studied. Descriptive research answers the questions who,
what, where, when and how.

Although the data description is factual, accurate and systematic, the research cannot describe
what caused a situation. Thus, descriptive research cannot be used to create a causal relationship,
where one variable affects another. In other words, descriptive research can be said to have a low
requirement for internal validity.

The description is used for frequencies, averages and other statistical calculations. Often the best
approach, prior to writing descriptive research, is to conduct a survey investigation.

DESIGN OF THE QUESTIONNAIRE

In the first part, the basis information of the target, the questionnaire has put up the partition of
the group with more refined extension so as to make the analysis of the behavioral preference
more scientifically.

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It is mainly composed by four segments in this investigation, which besides the background
information that includes the personality characteristics and intelligence information about
Burgers and brands.

1) The first part of the questionnaire consist of :

• Gender ,

• Age ,

• Family type

This is necessary to predict the lifestyle of the respondents and to know their family
background, eating habits and preference.

This will help in relating that how consumer preferences changes as they grows older and
many more things can be added.

2) The second part of the questionnaire contains of information that

• what are the preferences of the consumers regarding brand ,

• how often the respondent is willing to c,

• which brand was purchased by him/her recently.

3) The third part contains of

• Information that from where does the respondent is willing to buy his product
from.

• from where do the respondent gets information about new products

• What influences the respondent the most while making decision of buying at a
burger outlet.

4) The fourth part consist of


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• How much a respondent is willing to pay for a meal.

• Does the effectiveness of promotional measures are effective.

• Whether the respondent gives the recommendations and suggestions.

• How the respondent gives weight age to Quality, Service, Cleanliness and Value for
money

DATA COLLECTION

Primary data: -

Which is collected by new research called primary data.

• Personal Interview
• Questionnaire

Secondary data: -

Already existing data is called secondary data. I collected them by following method

• Internet.
• Books
• National Library Singapore – Articles, Journals, books on customer satisfaction and
marketing perspectives

SURVEY

To obtain a better insight of the Burger Market, a questionnaire was designed to answer the
following questions:

1. What are consumer's perceptions of individual Burger Chains with respect to relevant
variables like quality, service, cleanliness and value for money (QSCV) and taste
preferences?

2. How often do customers consume Burgers? Is there any preference for particular days
like on special occasions, for having a meal or gathering with friends?
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3. What else they like besides the burgers and other preferred brands?

4. How much the consumers are ready to pay per meal?

5. Preferred Meal like combos, Happy meal, Lunch menu, Breakfast

Or Dinner menu other than products such as drinks, sides and

Burgers?

Questions were asked about customers' overall image of various Burger chains, the importance
of certain attributes and how well these attributes measure up for each Burgers chain.

A questionnaire survey was done on a sample of people staying in Singapore. Some are
local Singaporeans and others being the foreigners. The survey was conducted on 50 people
among whom the questionnaires were circulated.

Also, personal interviews were conducted with a few in the sample. Some interviews
were also conducted one to one without using the questionnaire.

A general discussion was carried out with the persons while conducting personal
interview to form an overview and recommendations regarding the attributes of Burger industry.

LIMITATIONS

Since the road to improvement is never ending, so this study also suffers from certain limitations.
Some of them are as follows:
 Being a Non-Singaporean, it was a little difficult interacting with the local crowd as
language is one of the major problems.
 Overcoming that, at times the consumers were reluctant to reveal certain information
which might affect the results of the survey that I conducted. As a result some questions
might have been left unanswered..(further suggestions)
 Also, the sample size that I took was as large as 60 and not more because of the time
limitation to some extent and also being an outsider-people here in Singapore are a little
hesitant to share their views.
 An authentication letter was needed as at times the passengers asked for an authority
letter to carry out such a research.

 Scope of project is limited in the sense that only McDonalds has been taken for consumer
research.

 The extent of the survey was Bugis and Paya Lebar only. So the suggestions or
arguments given in the report may not hold true for other locations in Singapore.

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 It was a time consuming method in which continuous guidance was required.

 Questionnaire method involves some uncertainty of response. Co-operation on the part of


informants, in some cases, was difficult to presume.

 For presenting about McDonalds only secondary source of data was referred. No
interviews with the company personnel, whether the operational or managerial levels
were conducted.

HYPOTHESIS

Null Hypothesis (H0) is a situation where no hypothesis of any sought is taken and no
relationship exists between the two variables.

Alternate Hypothesis (H1) is a situation where a hypothetical situation is taken and a relationship
exists between the two variables.

DATA ANALYSIS

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1. Sex of the respondent-Which marketing channel affects you the most while making your
choice for having a meal at any of the burger outlets?

Which marketing channel affects you the most while


making your choice for having a meal at any of the burger
outlets?
Advertisemen Word of
Television ts Newspaper mouth Total
Sex of the Male 14 17 5 13 49
respondent Female 0 4 7 0 11
Total 14 21 12 13 60

Chi-Square Tests
Asymp. Sig.
Value df (2-sided)
Pearson Chi-Square 18.892a 3 .000
Likelihood Ratio 20.418 3 .000
N of Valid Cases 60
a. 4 cells (50.0%) have expected count less than 5. The
minimum expected count is 2.20.

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2. Sex of the respondent-How frequently do you visit the McDonald's?

How frequently do you visit the McDonald's?


2-3 times a
week weekly Fortnightly Rarely Total
Sex of the Male 22 14 8 5 49
respondent Female 0 9 0 2 11
Total 22 23 8 7 60

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Chi-Square Tests
Asymp. Sig.
Value df (2-sided)
a
Pearson Chi-Square 13.869 3 .003
Likelihood Ratio 18.004 3 .000
N of Valid Cases 60
a. 4 cells (50.0%) have expected count less than 5. The
minimum expected count is 1.28.

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3. Sex of the respondent * How do you rate the services at McDonald's?

How do you rate the services at


McDonald's?
Excellent Good Average Total
Sex of the Male 15 26 8 49
respondent Female 0 8 3 11
Total 15 34 11 60

Chi-Square Tests
Asymp. Sig.
Value df (2-sided)
Pearson Chi-Square 4.568a 2 .102
Likelihood Ratio 7.178 2 .028
N of Valid Cases 60
a. 2 cells (33.3%) have expected count less than 5. The
minimum expected count is 2.02.

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4. Sex of the respondent * how do you rate the taste?

how do you rate the taste?


most somewhat least
important important important important Total
Sex of the Male 18 19 6 6 49
respondent Female 3 7 0 1 11
Total 21 26 6 7 60

Chi-Square Tests
Asymp. Sig.
Value df (2-sided)
a
Pearson Chi-Square 2.935 3 .402
Likelihood Ratio 3.913 3 .271
N of Valid Cases 60
a. 5 cells (62.5%) have expected count less than 5. The
minimum expected count is 1.10.

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5. Sex of the respondent-How do you rate the variety?

how do you rate the variety?


most somewhat least
important important important important Total
Sex of the Male 5 16 15 13 49
respondent Female 1 1 5 4 11
Total 6 17 20 17 60

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Chi-Square Tests
Asymp. Sig.
Value df (2-sided)
a
Pearson Chi-Square 2.672 3 .445
Likelihood Ratio 3.112 3 .375
N of Valid Cases 60
a. 5 cells (62.5%) have expected count less than 5. The
minimum expected count is 1.10.

6. Sex of the respondent-How do you rate the hygiene?

how do you rate the hygiene?


most somewhat least
important important important important Total
Sex of the Male 16 16 12 5 49
respondent Female 3 6 1 1 11
Total 19 22 13 6 60

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Chi-Square Tests
Asymp. Sig.
Value df (2-sided)
a
Pearson Chi-Square 2.251 3 .522
Likelihood Ratio 2.356 3 .502
N of Valid Cases 60
a. 5 cells (62.5%) have expected count less than 5. The
minimum expected count is 1.10.

FINDING

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HYPOTHESIS

Null Hypothesis (H0) is a situation where no hypothesis of any sought is taken and no
relationship exists between the two variables.

Alternate Hypothesis (H1) is a situation where a hypothetical situation is taken and a relationship
exists between the two variables.

CROSSTAB

ON THE BASIS OF SEX

1. Out of 60, 49 were male and the rest were females which means the survey shows
17(34%) males comes to know about the McDonald’s by advertisements and 7(63%)
females by newspaper.

2. Maximum males visit McDonald’s 2-3 times a week where as most females visit
McDonald’s weekly.

3. Most of the males and females have rated McDonald’s service as good.

4. Majority of males and females rated taste as an important attribute.

5. Majority of males rate variety as important attribute whereas females rate it as somewhat
important.

6. Most of the males rated hygiene as most important and females preferred it as important.

7. Most of the males rated décor as least important whereas females rated it as somewhat
important.

8. Both males and females have rated value for money as important attribute.

9. Males have rated friendliness of staff as somewhat important and females as least
important.

10. Both males and females have rated promptness of delivery as least important, this shows
delivery is not that much popular.

11. The males have rated Burgerking as good whereas females have rated quality as average
and rest of the attributes as good.

12. The males and females both have rated KFC good in terms of QSC and average in terms
of V.

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13. The males have rated Mos burgers as good in terms of Q & V and average in terms of S
&C. whereas females have rated QS &V as good and S as average.

14. Males have rated Q as excellent and rest of SC&V as good. Whereas females have rated
QSC&V as good for Pizza Hut.

15. Male and female both have rated Q&C as average and rest of the S&V as good for others.

16. Majority of the male and female have stated that the value for money at McDonald’s as
worth.

17. Majority of the males prefer Pizza Hut and females have preferred KFC as the substitute
brand.

18. Majority of the males and females have agreed upon spending $6-10 per meal.

19. Majority of the males have agreed upon gathering with friends as the reason to visit
McDonald’s, whereas females prefer to have a meal.

20. Both ,males and females have agreed that promotional measures are effective.

21. Males like shakes and females like beverages besides the burgers.

22. Males suggested that more variety should be added to the menu whereas females
suggested that prices should be reduced.

CROSSTAB

ON THE BASIS OF AGE.

1. The age group of 16-25 rated the quality of McDonald’s as average and the age group of
26-30 as good.

2. The age group of 16-25 have rated the quality of Burgerking as average, KFC as good,
Mos burgers as average, Pizza hut as average and others as average respectively.
Whereas age group of 26-30 rated the quality of Burgerking as good, KFC as good, Mos
burgers as good, Pizza Hut as average and others as average respectively.

3. The age group of 16-25have rate the service of Burgerking, KFC, Pizza hut and others as
good and while Mos has been rated as average respectively. Whereas 26-30 age group
has rated service of Burgerking, KFC, Pizza hut and others as good and while Mos has
been rated as average respectively.

4. The age groups of 16-25 as well as 26-30 both have rated the cleanliness of Burgerking,
KFC, Mos burger and pizza hut as good. While the others have been rated as average.

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5. The age groups of 16-25 as well as 26-30 both have rated the value for money for
Burgerking and KFC as average and Mos burgers, Pizza hut and others as good. Whereas
age groups of 26-30 have rated Burgerking and KFC as average and Mos burgers, Pizza
hut and others as good.

6. The age groups of 16-25 have preferred advertisements as an effective marketing channel
whereas 26-30 age groups people have preferred newspaper as an effective marketing
channel.

7. The age groups of 16-25 have chosen 2-3weeks as frequency of there visits to outlet
whereas 26-30 age groups people have chosen weekly visits as their preference.

8. The age groups of 16-25 have chosen Pizza Hut as the substitute for McDonald’s whereas
age groups of 26-30 years have chosen KFC as the substitute brand.

9. The age groups of 16-25 have recommended to increase more variety and the 26-30 age
groups people have recommended reducing prices.

CHI SQUARE

1. Hypothesis stated that there exists relationship between the sex and how frequently they
visit the outlet. On performing the Pearson Chi Square test we get value of .003 which is
less than 0.1 therefore hypothesis is accepted.

2. Null Hypothesis stated that there exists no relationship between the sex of the respondent
and services of McDonald’s. On performing the Pearson chi square test we get value of
0.102 which is greater than 0.1 therefore Null Hypothesis is accepted.

3. Null hypothesis stated that there exists no relationship between the sex and the taste of
McDonald’s. on performing the Pearson the Chi Square test we get the value of 0.402
which is greater than 0.1 therefore Null Hypothesis is accepted.

4. Null Hypothesis stated that there exists no relationship between sex of the respondent and
variety. On performing the Pearson chi square test we value of 0.445 which is greater
than 0.1 therefore Null Hypothesis is accepted.

5. Null hypothesis stated that there exists no relationship between sex of the respondent and
value for money. On performing the Pearson Chi Square test we get the value of 0.163
which is greater than 0.1. Therefore Null Hypothesis is accepted.

6. Null hypothesis stated that there exists no relationship between sex of the respondent and
rating of delivery. On performing Pearson Chi Square test we get the value 0.626 which
is greater than 0.1. Therefore Null hypothesis is accepted.

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7. Null hypothesis stated that there exists no relationship between sex of the respondent and
the QSC of Burgerking. On performing the Pearson Chi Square test we get the value as
0.983, 0.964 and 0.595 respectively. Therefore null hypothesis is accepted.

8. Null hypothesis stated that there exists no relationship between sex of the respondent and
the QSC&V of KFC. On performing the Pearson Chi Square test we get the value as
0.827, 0.967, 0.513 and 0.878 respectively. Therefore Null Hypothesis is accepted.

9. Null Hypothesis stated that there exists no relationship between sex of the respondent and
the QSC&V of Mos burgers. On performing the Pearson Chi Square test we get the value
as 0.800, 0.552, 0.712 and 0.607 respectively. Therefore Null Hypothesis is accepted.

10. Null Hypothesis stated that there exists no relationship between sex of the respondent and
the QSC&V of Pizza Hut. On performing the Pearson Chi Square test we get the value as
0.878, 0.800, 0.512 and 0.801 respectively. Therefore Null hypothesis is accepted.

11. Null Hypothesis stated that there exists no relationship between sex of the respondent and
the Value for money for McDonald’s. On performing the Pearson Chi Square test we get
the value as 0.355. therefore Null Hypothesis is accepted.

T-TEST

1. As per relation Null Hypothesis states that there exists no relation between gender and
QS&C of burgerking but the value of coefficient of T-Test is 0.842, 0.811, and 0.351
which is greater than 0.05, therefore the Null Hypothesis is accepted there is no
significant difference between the mean values of gender. T test is accepted.

2. As per relation Null Hypothesis states that there exists no relation between the gender and
the QSC&V of KFC, but the value of coefficient of T-Test is 0.833, 0.727, 0.673 and
0.691 which is greater than 0.05, therefore the Null Hypothesis is accepted and there is no
significant between the mean values of gender. T Test is accepted.

3. As per the relation null Hypothesis states that there exists no relation between the gender
and QSC&V Mos burgers, but the value of coefficient of T-test is 0.631, 0.291, 0.424 and
0.780 which is greater than 0.05, therefore the Null Hypothesis is accepted there is no
significant difference between the mean values of gender. T Test is accepted.

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4. As per the relation Null hypothesis states that there exists no relation between the gender
and QSC&V of Pizza Hut, but the value of coefficient of T-Test is 0.969, 0.619, 0.286
and 0.727 which is greater than 0.05, therefore the Null Hypothesis is accepted there is no
significant difference between the mean values of gender. T Test is accepted.

RECOMMENDATIONS

• Maintain consistency in the taste and quality of products.

• Include more items in its product line.(Variety)

• Include more veg. options

• Include more promotional and advertising measures to increase its sales or to increase its
market share.

• Recognize the small outlets and give more discounts.

• Growing health trends among consumers.

• They should focus more on their promotional strategies like advertising etc.

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• Reduce prices.

BIBILIOGRAPHY

Books

1. Kotler, Phillip and Keller, lane Kevin (2008) Marketing Management, 12th Edition.

Prentice hall.

2. International, Euromonitor (September 2008) Consumer Foodservice in Singapore, NLB.

Research articles/ Journals/ Case studies

1. Ahmed, U Zafar and Wee, Thomas Tan Tsu (2000) “Cases in Marketing-A Singapore
Perspective” Case book by NTU Faculty. Page no.120-129.

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Websites

1. http://docgestion.isuisse.com/mi2.pdf
2. http://books.google.co.in/books?id=UU1yPY2UwhMC&pg=PA1&
dq=Introduction+to+International+Marketing+Books#PPR15,M1
3. http://books.google.co.in/books?id=A-g2kAnHOgC&
dq=foundations+of+international+marketing&printsec=frontcover&source=bl&ots=cn-
U5P7iWJ&sig=FK1_4pxWY7dBM6ULrKunP444vc8&hl=en&ei=pv_VSc_QEsmCkQ
WdnMHNBA&sa=X&oi=book_result&ct=result&resnum=1#PPA9,M1
4. http://en.wikipedia.org/wiki/History_of_McDonald's
5. http://www.mcdonalds.ca/pdfs/history_final.pdf
6. http://en.wikipedia.org/wiki/McDonald's
7. http://www.fundinguniverse.com/company-histories/McDonalds-Corporation-Company-
History.html
8. http://www.echeat.com/essay.php?t=33802
9. http://www.thenation.com/doc/20030818/greider
10. http://ezinearticles.com/?McDonalds-BusinessAnalysis&id=687438
11. http://www.scribd.com/doc/11520753/Marketing-Strategies-of-McDonalds

ANNEXURE

Questionnaire

Dear Respondent,

This survey aims at analyzing the consumer preferences towards Burgers in Singapore. I would
be highly obliged if you could spare few minutes of yours and fill up this questionnaire for me.

Sex: Male Female

Age:

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o 16-25

o 26-30

o 31-45

o 46 and above

Family type:
o Joint

o Nuclear

1. Which marketing channel affects you the most while making your choice for having a
meal at any of the Burger outlets?

o Television
o Advertisements
o Newspaper
o Word of mouth

2. How frequently do you visit McDonald’s?


o Everyday
o 2-3 times a week.
o Weekly
o Fortnightly
o Rarely

3. How do you rate the Services at McDonald’s?


o Excellent
o Good
o Average
o Below Average

4. Rate the attributes for McDonald’s which are key to a fast food restaurant?

1- most important 4- least important

Attributes Rank Attributes


Rank
Taste of food Value for money

(promotional schemes)

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Variety of food Friendliness of peers

General hygiene Promptness of delivery

Ambience/ Décor

5. Rate the outlet on the scale of 1 to 4 on the basis of Quality, Service, Cleanliness and
value for money.

Quality Service Cleanliness Value for


money

Burger king

KFC

Mos Burgers

Pizza Hut

Others

6. Does McDonald’s give you value-for-money?

o Over-priced

o Worth the money

o Can pay more

o Can’t say

7. What substitute brand would you prefer (If any)?

o Pizza Hut

o KFC

o Mos Burger

o Burger King

o Others (Please Specify) …………………………………………………………………….

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8. How much do you expect to spend at McDonald’s per meal?

o $5

o $5-10

o $11-20

o $21 and above

9. What makes you come to McDonald’s?

o Having a meal

o Gathering with friends

o Celebrating an occasion

10. Do you find the promotional measures adopted by McDonald’s effective? (e.g. meal
combos, happy meals, beverages and desserts)

o Very effective

o Effective

o Not Effective

11. How do you rate the home delivery system of McDonald’s?


o Very Good

o Good

o Average

12. Which product you like the most in McDonald’s?

o Shakes

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o Sundaes

o Sides

o Pie

o Beverages

13. What recommendations do you wish to suggest to McDonald’s?

o Include more variety


o Reduce prices
o Better advertising and promotion
o Improve quality

14. Any further suggestions:___________________________________________________


________________________________________________________________________

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