a presentation on mcdonald’s

8/12/2019 A presentation on mcdonalds

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By-

AMRITA GUPTA

ROLL NO. 06

MBA-IB(1stsemester)


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Mcdonalds HistoryU.S based company.

Head quartered at Oak Brook, Illinois, U.S.

It started as a drive in restaurant in the late 1940s.

In 1966 was listed on New York stock exchange.

Entered India in October 1996,in a joint venture.


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Company profileWorlds largest chain of fast food hamburger

restaurant.

Offers hamburgers,cheeseburgers,chickenfrenchfries,soft drinks,coffee,shakes and desserts.

Now serving more than 68 million customers in morethan 119 countries.

1.8 million system employees.


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Objectives of the channel To serve good food in a friendly and fun environment

to be a socially responsible company

To provide good returns to its shareholders

To provide its customers with food of a high standard,

quick service and value for money


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Strengths

Strong brand recognition

Strong international presence

Product innovation

Strong distribution network

Good relations with franchise

Weakness

Considered as junk food.Health related issues

Opportunities

Acquisition of other restaurants.

Increasing number of working youth

Affinity of Indians towards junk food.

Expanding in tier 2 and tier 3 cities.

ThreatsCompetitive pricing

Threat of labor strikes

SWOT


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How does it operate?

McDonalds

Franchisee

Customers

McDonalds

(company

owned outlets)

Customers


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Distribution channel defined-:

Distribution channels are sets of interdependent

Organizations involved in the process of making a

product or service available for use or consumption.

-STERN & ANSARY


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Companys strategy

McDonalds follows a zero level distribution

channel.

It practices pull strategy for its enhancement of sales.

Follows Hybrid channel marketing.


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Channel format

(is decided by who drives the channel system.)

Producer driven

(effort of manufacturer to reach the product to hisconsumers.)

Seller driven

(use of existing channels to reach the largest numberof end users)

Service driven

(people who provide or facilitate distribution)


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McDonalds SystemMcDonald's follows a producer driven channel

format. (Franchise system 80%)

(self owned outlets20

%)

World market leader in (Quick Service Restaurants)area.

Corporate strategy :-* QSC & V -: Quality, service, cleanliness & value

* Plan to win -: Successful business revitalization


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McDonalds in India: McDonalds does not offer direct franchise.

Talking about India, it has been into a joint venture ship withtwo entrepreneurs :

Amit Jatia, Vice Chairman, Hardcastle Restaurants Pvt. Ltd.(awarded a development licensee status for west and south India)

Vikram Bakshi's Connaught Plaza Restaurants Private Limited .(awarded a development licensee status for north and east India)


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McDonalds suppliers Trikaya Agriculture

Supplier of Iceberg Lettuce

Vista Processed Foods Pvt. Ltd.Supplier of Chicken and Vegetable

Dynamix Diary

Supplier of Cheese.

Amrit FoodSupplier of long life UHT Milk and Milk Products for Frozendesserts.


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Channel member Channel members are the people through which goods

and services go through before they reach theconsumer.

The members include franchisees, joint ventures andlicensees, wholesalers and industrial distributors.

Others include brokers and agents, insurancecompanies and transport industries.


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Channel members in McDonaldsFRANCHISOR

The franchisor owns the brand and the operatingsystem that they license to their franchisees.

FRANCHISEE

The franchisee invests in the right to use thefranchisor's expertise, brand name, operatingmethods, and initial and ongoing support.


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Channel Member Responsibilities of Channel Members

The producer and intermediaries must agree on pricepolicies, discounts, territories, and services to be

performed by each party.

E.g. McDonalds provides franchisees with promotionalsupport, training, management assistance, in turn,

franchisees must meet company standards for physicalfacilities, buy specific food products... etc.


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STPD AnalysisSegmentation based on lifestyle and habits of urban

families.

Targeting kids, office goers,youth.

Positioning with statements such as I am loving it,

aap ke zamaane me baap ke zamaane ke daam .

Differentiation - taste and packaging.


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Brand building process

Identify

your customerClarify what is

important to them

Narrow to thehighest four orhighest three

priority of outcomesto your customers.


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Evaluation of corporate strategyMcDonalds Dominos

Focusing on drive in

strategy.

McDonalds initialfranchisee fees is $45,000.

Be the best quick service

restaurants by providingquality service,cleanlinessand value that makes everycustomer in every restaurantsmile.

Focusing on take away

strategy.

Dominos initialfranchisee fees is $25,000.

Exceptional people on a

mission to be the best pizzadelivery company in theworld.


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Evaluation of Channel FormatMcDonalds follows a producer driven format system.

i.e. a franchisee system, but along with that also itcarries its self owned outlets..so it remains to anadvantageous position.

Unlike Dominos (a company working on the verysimilar structure)In which it runs wholesole on the basis of franchiseesystem only.


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Evaluation of Channel

Performance

McDonalds Dominos

Since it follows zero level distributionchannelit ensures more fresh and safeingredients.

Since it follows one level distributionchannel it lags a bit behind in ensuringultimate fresh ingredients.

Practices hybrid channel marketing andthus has a back up of its own outlets.

Practices single channel marketing i.e.through its franchisees only.

It is more cost effective as no thirdparty is involved in it.The chain goes like-

Comparatively less cost effective asprominent retailers are also involved.The chain goes like-

COMPANY

FRANCHISEE

CUSTOMERS

COMPANY

RETAILERS

FRANCHISEE

CUSTOMERS


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Channel Member PerformanceMcDonalds Dominos

McDonald's do not pay overtimerates even when employees work verylong hours.

Pressure to keep profits high and

wage costs low results inunderstaffing, so staff have to workharder and faster. As a consequence,accidents (particularly burns) arecommon.

Not surprisingly staff turnover atMcDonald's is high, making itvirtually impossible for employees tocarry on for a longer duration.

Dominos in contrast to this paysincentives to the employee onaccomplishment of certain fixed goals

Its strength lies in retaining its

employees. Also it practices rewardpower tool.

This results in low employeeturnover and an assurance ofsuccess.


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Suggestions-: Increasing seating capacity.

Aggressive expansion plans throughout the country.

More drive in.

Independent franchisee model.

McDelivery on cycles.


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a presentation on mcdonald’s

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