McDonalds Marketing Plan Essay

I. EXECUTIVE synopsisMcDonalds Philippines is a subsidiary of the Filipino-owned Golden Arches Development Corporation. The first Filipino McDonalds to open for crinkle was in the Morayta university districts in Manila during 1981. These days McDonalds is operating over 150 restaurants through with(predicate) with(predicate)out the islands of the Philippines. world a ascorbic acid% Filipino-owned franchise whole(prenominal)ows McDonalds Philippines to be more than agile and take quicker actions, hurl them an even more competitive force in the Filipino fast- pabulum market.It is one of the leading fast-food chains internationally as well as in the Philippines, with a rapidly developing consumer grade and growing guest base. . It is a place for family togetherness organized around a common love of the traditional food. Its operating frame is characterized by focusing on homogeneousity for consistent quality, the formation of partner relationship with its franchises and supplier to reform operating system innovatively and last but non least the introduction of new convergences. With its steady charter for improvement and consistently high quality, McDonalds revolutionized the entire supply chain. Instead of regimenting its supplier and franchisees, McDonalds evaluate commitment from them in terms of adherence and experimentation.The implemented, smooth operating chain of suppliers, McDonalds corporate instruction and franchisees balances each some other, creates an entrepreneurial spirit that added lever, innovation, economics of scale, the bargaining power for advertising and purchasing, as well as new product and process ideas to the company. Additionally, all involved par obligates maintained a collective emphasis on disciplined quality standards. As years passed by, McDonalds needed to adapt to industry changes by accomplishing some(prenominal) process design innovations in fruitful collaboration with its suppliers and franchisees.In this context, McDonalds improved the chains yellowed and fries quality and consistency by switching from raw to frozen delivered fries as well as the productivity of employee. Another major process enhancement was the introduction of the breakfast at McDonalds. In this way, the corporation expanded its operating hours since it had to pay for rent, utilities and insurance 24 hours a day, anyways. The generation of a totally new business came a massive with the nice side effect that it again distinguishes itself from its competitors.This merchandising forge is used in outlining the product, pricing, and distribution and promotion strategies to be implemented and executed during this time. It proposes a revitalization of the McDonalds philosophy so as to focus on the quality of products and function for nodes value and a healthy lifestyle, healthy eating habits, smart choices and education. The plan also outlines the structural issues that may modernise during its implementation and execution, tactical initiatives to turn dodging into action.II. CHALLENGEProblemBefore, the company use grilled show system. Which becomes the problem of the company because the customer always complaining some the quality of the product homogeneous chicken mcdo, when it is served to the customers it is not crispy because it stays longer in the warming bin, and also the patty of the burger, it is not blue-blooded because it is not hot.The admission charge of McDelivery to the call center is another problem of McDonalds because some times the information about on the location of the customer is wrong.SolutionNow a day the McDonalds uses the Made for You (MFY) system. f be is made or prep bed to actual customer demand, providing each and every burger only when it is needed middling in time (JIT). It standardizes assembly of all sandwiches to one or two at a time. Requires stripped Human Decisions Making. It requires Behavioral change Quality Complete waste Equipment Sta ndard procedureIII. SITUATION outlineCompany Analysis Goals Develop a solution to improve kitchen layouts, people positioning and operational procedures for a better guest experience. In simple terms our goal is to make a happy and convenient customer. Focus the company should focus on products and services.McDonalds is a customer-oriented company that strives to offer Filipinos a conclave of great tasting, quality food productions at value expenses with excellent service. Values guest driven, Malasakit, Integrity, Teamwork and Excellent. Strengths Quality of the product, services and cleanliness of the store. The service of the company is fast and accurate, and we believe that taking safe c atomic number 18 of our customers is the first vital yard toward levelheaded sales building. Patents and Trademark staining such as through the use of logos, colours, slogan and other images. A key part of the McDonalds brand is its M logo otherwise known as The Golden Arches. Weaknesses The competitors like Jollibee, Mang Inasal, Burger King etc. Lack of cooperation between the management and in the crews. Market Shargons McDonalds has captured more than 40% sh be of the hamburger market in the Philippines.Customer Analysis Number 30% is ages 60 and above, 20% is ages 1-15, 50% is ages 16 and above. This is the percentage of customer who argon eating at the McDonalds everyday especially during breakfast, lunch, and dinner. Type Class B & C Value Drivers a part from our product and services. McDonalds gives back to the community through the Ronald McDonald House Charities (RMHC). RMHC supports childrens development and well being through Bahay Bulilit and Bright Minds Read (BMR). Every happy meal purchase gives 50 centavos to RMHC. Decision process The customer have a lot of decision making it is base of what they needs and wants, also the customer make up ones mind to buy a discounted product like in coupon and the mcsaver meals.Competitor A nalysis Market localizeNo. 1 (Jollibee)No. 2 (McDonalds) StrengthsLasang PinoyRaw materials are environment friendly WeaknessesJollibee has a brusque service Market shares Jollibee has captured more than 52% share of the hamburger market in the Philippines.SWOT abridgmentStrength Risk diversity Large market share Strong supply chain Promoting honourable conduct Competitive fast-food chain Attentive and friendly staff/crews Rigorous food safety standards Good reputation among customer Decentralized yet connected system Strong brand name, image and reputation Strong financial and performance and position Affordable prices and high quality products nutritional information gettable on packaging Strong ball-shaped presence and performance in the global marketplace Specialized training for managers known as the Hamburger University McDonalds Plan to Win focuses on people, product, place, price and promotionWeaknesses Unhealthy food image High staff turnover including top management Customer losses due to fierce competition Lack of access to the scoop up natural resources Lack of access to key distribution channelOpportunities Growing health trends among consumers Joint ventures with retailers Consolidation of retailers likely, so better locations for franchisees reply to neighborly changes by innovation with in healthier lifestyle foods 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 childrens tactical manoeuvre-parks and its focus on educating consumers about health, fitness. International expansion into emerging markets of other res publica Growth of the fast-food industry Low be menu that will attract the customers Providing many promotional activitiesThreats health professionals and consumer activists accuse McDonalds of contributing to the country health issue of high cholesterol, hea rt attacks, diabetes, and obesity McDonalds competitors jeopardise market share of the company both internationally and domestically Global recession and fluctuating conflicting currencies Affordability of the competitors products Similar flavors and products of the competitors Competitors endorsers are much popular when it compares to McDonaldsIV.Market varianceMarket sectionalization is the process of splitting customer in to different groups, or segment within the customers with similar characteristics have similar needs.Geographical SegmentationMcdonalds offered their services based on certain country staple fibre food. Like Philippines McDonalds realized that Filipino basic food is rice which with fried chicken as its local basic food.demographic/Psychographic SegmentationDemographic segmentation divided the market into groups based on variables like gender, age, nationality, religion family life cycle and family size McDonald offered their services by segmented their customer base on age, religion and family life cycle. To offer the best service McDonalds still concern about variations due to differing tastes and cultural issues for their customer over the world.Behavioral SegmentationBehavioral segmentation focuses on dividing consumer based on their knowledge, attitudes, uses, benefit sought, or responses to companys product. ane of the best forms of segmentation is to divide buyers according to the different benefits that they want to get by purchasing the product. unremarkably people who look for in their product class or look for each benefit. For example, McDonald tender McDelivery for 24 hours, this is the only one delivery service that not stop even once in a while a day by just call it and order, after that within a pure it comes to your place with the food that still hot and light.V. Alternative Marketing StrategiesMcDonalds has seen recent success through a careful implementation of its Plan to Win strategy, which focuses on sev eral key aspects of the business, namely increasing profession to restaurants, providing everyday value to customers, innovating the company through the creation of new menu items, re-imaging the companys look, as well as its marketing campaigns.McDonalds Plan to Win is based on a center set of four main goals Acquire more customers Get these customers to eat at McDonalds more a good deal Develop more brand loyalty for the McDonalds brand Ultimately become more profitableincrease restaurant visitsCurrent market condition help the appearance of McDonalds as a low cost alternative to eating at more expensive restaurants in the minds of customers, which has consequently led to an increase in foot traffic at McDonalds franchises. McDonalds has addressed these conditions through an increase in advertising, specially give awaying the companys attention toward a diversified menu of low cost items. Such advertising serves to satisfy all four of goals of Plan to win program, drawing cus tomer interest through a short display of the plethora of new menu options recently added, while also helping to change the look and tone of voice of McDonalds in the minds of customers.Providing everyday valueIn order to create an general feeling of value for customers to experience, McDonalds has released a modular value meal, where customers have the benefit of both low prices coupled with increased freedom when deciding on a meal. While traditional menu options emphasize a trade-off between fiat freedom and price, the McDonalds value menu provides customers with both all at once, helping customers associate the brand with good value.Innovating new menu itemsAt the same time as their menu choices have become modular and less expensive, McDonalds is also creating value for customers by providing a diverse menu with many more say options. Customers can now expect an increase in health-conscious options by adding some vegetables in the burger and also they provide some dessert l ike apple pie or pineapple pie. McDonalds also provide a mccafe like ice mocha, ice latte, and cappuccino, Americano to provide some different variety of coffee to satisfy the customer.Marketing campaignsAs well as considering the important of keeping customers informed of the continuing changes to the company through advertising media and social media dialogues, McDonalds also recognizes the value of maintaining an ongoing support system and training structure for each of its franchise operators. As mentioned above, McDonalds uses well defined, and measurable milestones to help their constituents meet company goals with as few inconsistencies as possible. McDonalds training programs have been continuously recognized for their excellence, and with the continuing changes being carried out throughout the company, this attention to the value of training is a terrific asset to the company.Re-imaging the restaurantDirectly benefiting the companys goals of brand development for the compan y, McDonalds is reenergizing their brand through an understanding of brand power, which is built on the cultivation of four key areas of the brand, brand identity, familiarity, specialness, and authority.Brand identity is defined as the set of characteristics that customers recognize your brand by in McDonalds case these are speed, consistency, value, and variety. Brand identity works with brand familiarity, helping to expand the message that symbols of the company, or even the overall impact of advertisements themselves in reinforcing the identity of the brand in the minds of customers. If carefully managed, McDonalds can use their brand identity to make their investments in advertising go much further.Beyond this, brand specialness and authority celebrate the process, representing the perceptions of McDonalds as the company appears to customers. Ideally, McDonalds should leverage brand specialness and authority to clearly stand out as a distinct and trustworthy source of value, allowing customers to increase the value of the McDonalds brand through their positive interactions with the company.McDonalds adopts different strategies to attract customers of different age groups, but still the main target remains to be children. So in order to attract them, McDonalds use a key tool the elated Meals, which seem to fascinate children due to the toys overwhelmd in the menu. In appurtenance to this, they have a tie up with The Walt Disney Company for the Disney characters included in the menu, in order to make sure that they offer the kids a wide range of toy options.Moreover, McDonalds provides the children with a special facility, unique for food venues and fast-food restaurants a playground. This strategy is aimed at making McDonalds a pleasant and fun environment for both kids and parents. Even the outside of every restaurant is also strategically designed using bright colors to invite in the customer, especially kids who can easily be influenced by these as pects. So not only that the children like it, it is a chance for the parents to spend some quality time with their kids. Another aspect of their marketing strategy is the situation that every McDonalds restaurant provides WiFi facilities, a detail that adds to the attractive qualities and is aimed at teenage customers.In addition to this, what is representative for this chain is their clown mascot, Ronald McDonald, who is essential for creating the bond with children and entertaining them. They can even have head-to-head birthday parties in the facilities, again part of McDonalds aim to induce happy memories in childrens minds, and to make them associate the McDonalds brand and logo with happy moments.VI. Selected Marketing StrategyProductSuppliers are dedicated to providing McDonalds with top quality material that is continually monitored for freshness and safety. McDonalds uses regional suppliers to pick up that the freshness is delivered to customers in every product they buy. nutrient quality is keys at McDonalds. They seek out fresh lettuce and tomatoes, onions and pickles, quality buns and potatoes, pure ground beef, select poultry and weight and wholesome dairy products. altogether of the beef, chicken and pork that are used are purchased from federally inspected facilities to discover freshness, wholesomeness and peak quality when served to customers.Non-Vegetarian Ingredients chickenThe chicken products are made from high quality boned rib and leg meat and are covered in a specially seasoned, lightly battered coating. They are shaped in uniform sizes to ensure consistency in weight and value. seekThe fish products in McDonalds Filet O- Fish are 100% pure whole white fillets that are lightly breaded.Their exacting quality standards for fish surpass federal requirements. The ocean-fresh quality of Filet-O-Fish is a result of the process and ability to freeze the fish at sea to maintain freshness.Vegetarian IngredientsVegetablesMcDonalds use fresh ly shredded lettuce, onions, pickles and tomatoes in their restaurants. All their vegetable products are processed from high quality graded vegetables in a 100% dedicated vegetarian plant.PotatoesMcDonalds french fries are famous around the world. To make French fries, McDonalds uses only the best potatoes available from their own potato farms. Their potato suppliers make many of the same nationally recognized brands of potato products to make customers feel that they are with their family at home. These potatoes are cut, blanched and processed on state-of-the-art processing lines to ensure maximum retention of nutrients. Their French fries and Potato Wedges are cooked at the plant in 100% vegetables cooking oil.Other IngredientsCheese and other Dairy ProductsAll dairy products like cheese, McShakes and Soft Serves are made from fresh dairy milk. All dairy products including cheese have a role to play in balanced diet because they contain a wide variety of essential nutrients such as protein, calcium, fat solubles, phosphorus, etc. McDonalds uses a special blend of pasteurized American cheese to accompaniment the flavor of their sandwiches.BunsMcDonalds uses buns made from locally grown wheat flour. They are adust locally and delivered fresh, several times each week to McDonalds restaurants.Cooking OilFood preparations are done in 100% refined vegetable oils at the restaurants plants. They use liquid oil and not hydrogenated oil. This means there are no TFAs or Trans Fatty Acids in the French Fries or any other products. Additionally, these vegetable oils contain some essential fatty acids necessary for growth.QualityFood quality is the crucial element at McDonalds. Despite extensive and meticulous quality test at the suppliers end, all products are once again carefully scrutinized at the restaurant. Immaculate of quality allow for zipper but the best to reach customers tray.Their products are sourced from the highest quality ingredients, prepared hygienic ally and interact to regular quality checks such as the McDonalds Inspection Program (QIP).Scope of Product atmosphereDistribution (Place)Place, as an element of the marketing mix, is not just about the physical location or distribution points for products. It encompasses the management of a range of processes involved in bringing products to the end consumer. McDonalds outlets are very evenly spread throughout the cities making them very accessible. Drive in and drive through options make McDonalds products further convenient to the consumers.Intensive DistributionDistribution arrangements tend to be long term in nature. Because of this time horizon, channel decisions are usually classed as strategic, rather than tactical or operational ones. Many of McDonalds restaurants are open 24 hours per day which satisfies the customers needs and wants, especially for exists their hunger. This kind of distribution strategy is called intensive distribution, means marking the product availab le for sale through all possible channels of distribution. Intensive distribution is stocking the product in as many outlets as possible. packagingThe promotions aspect of the marketing mix covers all types of marketing communications One of the methods employed is advertising, Advertising is conducted on TV, radio, in cinema, online, using poster sites and in the press for example in newspapers and magazines. Other promotional methods include sales promotions, point of sale display, merchandising, direct mail, loyalty schemes, door drops, etc. The skill in marketing communications is to develop a campaign which uses several of these methods in a way that provides the most effective results. For example, TV advertising makes people aware of a food item and press advertising provides more detail. This may be supported by in-store promotions to get people to try the product and a due promotional device to encourage them to keep on buying the item.At McDonalds the prime focus is on ta rgeting children. In happy meals too which are targeted at children small toys are devoted along with the meal. aside from this, various schemes for winning prices by way of lucky draws and also scratch cards are given when an order is placed on the various mean combos.VII. ConclusionSince the problem of McDonalds is about the customer that keeps on complaining for the quality and freshness of the products that is being served. Therefore I conclude that the company should use the MFY (Made for You) system, so that the food is made or prepared for the customer just in time with a good quality for a reasonable cost. The company should also provide a large number of riders to block late delivery.