McDonalds Marketing

Jose Miguel Sallent

Joan Font
Alex Rodrguez
Xavier Marrugat
1


Introduction 2

Porters five forces model of competition 3

Company values 6

Conclusions 11


















2

Introduction

The company chosen for this work is McDonald's and the topic is marketing.

McDonald's is a fast food chain of American origin. Its main products are hamburgers,
soft drinks, chips, salads and desserts. This company is one of the largest in the world
and serves approximately 58 million people a day in their establishments. Some of the
establishments of the company spread across the world have play area for children,
although McDonald's is a restaurant for everyone.


In 1940, brothers Dick and Mac McDonald opened their first restaurant in California,
but only offered barbecue products on their menus. In 1955, businessman Ray Kroc
decided to join the company to be impressed with the cleanliness and speed of service
was in that restaurant. That's how was born the first McDonald's franchise. In
2010 was added to the fast food chain a new way of service McAuto, which was to
give service to customers without them come out of their car. Today, we
estimate about 33,000 restaurants across 120 territories in the world employing 1.5
million people.











3

Porter's five forces model of competition

Here is the Porters model in which we based our analysis:



Supplier's power

It is recognized by the competition that McDonald's has created a network that gives
his companies and factories its restaurants, which are mostly franchises. Each
establishment sells about 1000 hamburgers a day.


McDonald's has been able to get quality products. One of the feature of McDonalds is
the uniformity of their burgers (hamburgers of the same type have exactly the same
flavor independent of the local where its selled).

For the right operation of a McDonald's restaurant, from Central Corporation is
determined to have to use a maximum of three entries of material a week. They
managed to link this to ecological principles, making boxes and ecological materials of
recyclable materials.
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We should not to be forgotten that the company has strong relationships with other
suppliers of restoration, such as beverages (Coca-Cola).

New competitors

A global levels no company-you get to make a dent in McDonald's. Everything and that,
on a small scale in each country create small companies trying to stand up to the giant.
In Spain, Pan's & Company, Fresco, etc. Have achieved commercial business is part of
McDonald's using in part the letter that they are much healthier than McDonald's.

A group that has entered strongly in Spain bringing their ethnic food is the
Kebabs. Despite his incoming has been as something new, today it is a place that
everyone has tried on and keeps repeating.

Customers

McDonald's has managed to evolve your business to the point of being aimed at all
audiences. We find all kinds of customers: families, children, youth, and casual tourists
... All these customers are looking for food at low prices, and restaurants that are
much more expensive.

One important thing to remember is that the restaurant varies depending on the day
of the week. -Lately to adapt to new technologies is McDonald's offers customers free
wireless Internet connections.


In order to attract customers, McDonald's has contacts with companies in the world of
cinema to associate their local advertising and merchandising firms last taken, focusing
especially on children's films.






5

Substitute products


McDonald's has managed to bring their products are inimitable. One of its greatest
features is that they have gotten their food taste independent of the place in which it
serves. Besides, we have a long list of menus and minor products such as onion rings.

Besides McDonald's to invest in new products take time, both minor products such as
complete menu trying to increase his products.



6

Company values

According to the graph shown below, we will analyze different values of McDonald's
regarding the marketing of the company:


Strength:
The main advantage that gives us the company is the fast food service and quality that
is also suitable for all audiences. To show the quality of its food, McDonald's has been
the first to receive food chain quality Q (in Spain) in their products.
McDonald's Spain offers its customers a quality commitment consists of 10 points,
which are:

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1. Quality and food safety of the products served at McDonald's restaurants are a
top priority for the company.

2. Strict controls on food quality and safety are applied throughout the supply
chain from the primary sector including suppliers and distribution centers, to
restaurants.

3. For this commitment, among others, McDonald's Spain has been recognized by
the Institute for Spanish Tourist Quality (ICTE) with the Q for Quality, becoming
the first restaurant chain to get recognition of these features for all its
restaurants.

4. The Quality Q guarantees the proper functioning of a system of total quality
management: our products, services, facilities, best practices and training of
our employees and sustainability in all our restaurants.

5. McDonald's serves in its restaurants burgers 100% Beef, whose raw material
comes from some 30,000 farms in Spain.

6. The products served in restaurants come only from approved suppliers that
meet the Spanish and EU regulations, in addition to the high standards of
quality that marks the company, through inspections and audits.

7. We have a full traceability system for our products, from farm to
restaurant. This allows for close monitoring, and to relate the parts used for
each batch of burgers with the identification numbers of the animals from
which they come.

8. The Quality Department is responsible for comprehensive tracking of suppliers
based on the requirement of the quality of raw materials and in compliance
with good practices in handling and food safety in production processes,
personal hygiene, design plant and equipment and water supply and pest
control.

9. To maintain the highest standards in food safety in restaurants have
implemented a HACCP (Hazard Analysis and Critical Control Points) and staff
training programs. This system also requires all suppliers.

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10. McDonald's requires that logistics is done with the rigor necessary to maintain
the cold chain from supplier to the kitchens of our restaurants, to achieve the
highest quality product at the time of consumption.

Besides, for long periods, the company has organized tourist guides for users
who want their factories to see firsthand the health and safety with which endow their
products. Moreover, McDonald's also offers a fast service due to maintenance
of good food in the kitchen.


Moreover, let's talk about the facilities. Each staff trained by the company and
exceptional hygiene.
Some of the local McDonald's have playgrounds for children, and offer us
the possibility of birthday parties for our children.
There are also stores with 24 customer service called McAuto, increasing
the availability of the service towards the customer.
As the subject of advertising, McDonald's has recognized the image of the company by
a large number of people on the planet. His two most famous images are
a yellow M and a clown named Ronald McDonald. The listed below:











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The company also takes the opportunity to create a positive image to the
public through various partnerships and doing acts of
charity (Ronald McDonald Foundation).
Finally, we wanted to highlight the company's ability to sell new products. Lately:
salads, fruits and McWrap.


Threats:

Due to a global trend for healthy eating, several platforms have emerged against the
company for the quality of food served in schools. Also criticized the alleged bad
treatment that the company gives the suppliers of food animals.

In addition, some platforms say McDonald's is actively contributing to the destruction
of the planet, destroying natural landscapes of the Earth to mount ranches where the
animals will be tortured and killed after to feed people.


McDonald's is in a fierce rivalry with other major fast food companies like Burger King
and Domino's Pizza. These fast food chains overlap in many of the products supplied
by McDonald's.


And finally, to comment that there is fast food franchises that require less capital and
produce a return on investment similar to McDonald's.

Weakness:

There is high turnover in chain establishments. Many former employees of the
company are agreed that have been exploited, working long hours and charging too
little and not being paid for overtime hours worked.


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Another weakness that McDonald's is that none of the establishments have home
delivery of their products. It is very strange that a company this size does not have a
service like this, and even more, when your top competitors have it.

As mentioned above, the gamma of unhealthy products is a weakness for the
company, although it is a point that is improving lately, with the inclusion of
different types and fruit salads.


And last comment that the high cost of the franchise limits the growth of the company.



Opportunities:

Enter the McDonald's brand in countries where there is no establishment would be a
good opportunity for the chain. For this, to take advantage of emerging economies in
the world as countries like India, Brazil and the continent of Oceania. We should
also take into account the growing market for Asian countries to establish new
settlements.




11

Conclusions

After this analysis is clear how McDonald's have reach to be one of the largest companies in
the world. A great confirmation of this: the fact that it has been argued that open a
McDonald's franchise is a safe business.

He has been able to expand throughout the world in the food industry to reinvent
itself while constantly. He has also managed to master all the problems associated
with suppliers, which is one of its strongest fact.

In terms of image has been set up in the collective mind his own logos making. This made
possible to create all its advertising, decoration, etc. of their establishments. Even if it is to tell
the truth, there is a large movement against McDonald's because it is the largest of a whole
sector raised doubts about his respect for the client's health, the treatment to animals and
workers.

McDonald's has today is a brand who deliver products to the public, is known throughout
the world and is recognized as the largest player in the fast food sector.