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Presented By:

Sanaullah Bhatti
“2016-71”
Company Background:
 Started in 1948 by two brothers Maurice “Mac”
and Richard McDonald in California
 In 1955 Kroc poened a franchise in Illinois
and purchased in 1961 and opened 1000
otlets in the same decade.
 “M” became McDonald's enduring logo in
1962
 Extended to Canada in 1967, with the
Controlling over 10000 restaurants in 1988.
 In 21 century, it opened its outlests almost
35000 in 100 countries.
Company Background:
U.S. and Canadian restaurants stopped
using trans-fat oil in a number of items due
to health issues.
Vegan Hamburger
Situational Analysis:
Negative Attention
Failed in providing substitute of Salad &
Apple Slices to be healthy
To change the Negativity McDonald's must
follow following instructions
Focus on changing the perceived quality of food
Ensure the best customer experience
Continue promotions that improve brand image.
Situational Analysis:
Company or industry Analysis:

A few factors that influence the negative


effect on McDonald’s brand perception
include;
the issue of obesity,
the involvement of animal cruelty,
social media commentary, and
targeting an innocent audience with
manipulation.
Situational Analysis:
Company or industry Analysis:

“Obesity” side effects may include self-


esteem issues, depression and anxiety.
Almost whole the fast food industry
ifluences terrible eating habit.
In the California, Central Valley; cows at
slaughterhouse being tortured and
mistreated. The larger focus became
McDonald’s association with “animal
cruelty”.
Situational Analysis:
Company or industry Analysis:

“branding suicide” of the company by


involving itself in the public through “Social
Media”.

McDonald’s ran an advertising including


Happy Meal coupons on the report card
covers of school kids which is directly
“targetting innocent children”.
Situational Analysis:
Company or industry Analysis:

McDonald’s is moving ahead on re


imaging efforts, remodeling a growing
number of restaurants with contemporary
new designs.
“new features and technologies that are making
the drive-thru, ordering, and payment processes
easier”
Product Strtategy:
Permanent Product Strategy:
hamburger, cheeseburger etc
Temporary Product Strategy:
McRib, Big Ocean burger etc
Local Product Development Strategy:
In Quebec a Canadian province, poutine; a
traditional dish of french fries, gravy and curd
cheese
Local Adaptation Strategy:
 In India, for instance, the Big Mac has been modified
into the Maharaja Mac which contains no beef.
Channel Ditribution:
Intensive Distribution:
intensive distribution is stocking the product
as many outlets as possible
Vertical Marketing Network (VMN):
A franchise organization is a contractual
vertical marketing network. McDonald’s
distributes its products in foreign and
domestic locations with the help of franchisers
who are well aware about their works in the
country.
Marketing Mix:
McDonald's Product Mix:
It covers the various organizational outputs
(goods and services) that the company
provides to its target markets.
Place in Marketing Mix:
The main places through which McDonald’s
distributes its products are Restaurants
Kiosks McDonald’s mobile apps, Post-mates
(website, app)and others
Marketing Mix:
Promotion in Mareting Mix:
McDonald’s uses the different tactics in its
promotional mix, arranged according to
significance in the business; Advertising (most
significant), Sales promotions, Public relations
and Direct marketing
Price in Marketing Mix:
McDonald’s uses a combination of the
following pricing strategies: Bundle pricing
strategy and Psychological pricing strategy
Competitive Analysis:
Perception of Food Quality:
Panera Bread:There is an increase
preference for natural, fat-free and healthy
food products
YUM Brands: Taco Bell, like McDonald’s, was
using more chemicals and additives than
meat. Therefore, Taco Bell launched a
campaign Taco Bell ran ads on websites, in
papers, and through social media with full
disclosure of their taco meat ingredients
Competitive Analysis:
Restore the Restaurant Experience:
Panera Bread and YUM! Brands, especially
Pizza Hut, have worked hard to improve their
dinning in experience for the consumer
because a desirable place to eat compliments
the brand image.
Increase Advertising:
McDonald's has already reduced the salt
content of its Fries in the UK by 24% and the
salt in Chicken McNuggets by 30%
Regional and Seasonal Sales
Target:
Because of low economic conditions in US,
mcdonald's didn't reach it's expected sales
while it got better results in London and
France.
With plant-based burger it's revenue
increased to 5.43%, while the expected
rate was 5.49%
SWOT Analysis:
Strength:
Convenience of Global Presence
Healthier menu
Advertising & Promotion
Weaknesses:
Brand Image
Customer Service & Quality of Employees
Food Quality
SWOT Analysis:
Opportunities:
Healthier & new items
Social Media
Hire more employees
Threats:
Social Media
Increasing Food & Raw material
Government Regulation on Fast Food
Competition and Animal Cruelty
Lower in Food Quality
PESTLE Analysis:
Political Factors:
USA & Russian Government made penalty on
the full of Cholestrol, unhealthy food.
Economic Factors:
Tax payment with creating employment and
imported material or taken locally.
Sociocultural Factors:
Hemburgers and fried potatoes in West
Rice burger and rice dinner in China
PESTLE Analysis:
Technological Factors:
Wifi in outlets, effective delievery, modern
payment method for the customer flexiblity.
Environmental Factors:
Polystrene packaging is replaced with paper
packaging to decrease wastage
Legal Factors:
Corporate level or employment laws
Recommendation:

Customer perceptions must be focused

Brand Image through Promotional Efforts

Best customer experience