MC Donald's

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MCDONALD'S

HISTORY
-The business began in 1940, with a restaurant opened by brothers
Richard and Maurice McDonald in San Bernardino, California.

- Their introduction of the "Speedee Service System" in 1948 established


the principles of the modern fast-food restaurant.

- The original mascot of McDonald's was a man with a chef's hat


on top of a hamburger shaped head whose name was "Speedee.

- " Speedee was eventually replaced with Ronald McDonald by 1967 when the
company first filed a U.S. trademark on a clown shaped man having a puffed out
costume legs.
CORPORATE OVERVIEW
 McDonald's restaurants are found in 119 countries and
territories around the world
 & serve nearly 47 million customers each day. McDonald's
operates over 31,000 restaurants worldwide,
 employing more than 1.5 million

people. The company also


operates other restaurant
brands, such as Piles Café.
VISION, MISSION AND
VALUES
 Vision: To be the best and leading fast food provider around
the globe

 Mission: McDonald's brand mission is to be our customers'


favorite place and way to eat, and improve our operations to
provide the most delicious fast food that meet our customers'
expectations.

 Values: Provide good quality, services to customer. Have a


cleanliness environment when customer enjoys their meal.
The value of food product makes every customer is smiling.
TYPES OF RESTAURANTS
 Most standalone McDonald's restaurants offer both counter service and
drive-through service, with indoor and sometimes outdoor seating.
 Specially themed restaurants also exist, such

as the "Solid Gold McDonald's," a 1950s rock


-and-roll themed restaurant. In Victoria,
British Columbia,
 To accommodate the current trend for high

quality coffee and the popularity of coffee shops


in general, McDonald's introduced McCafé,
 Some locations are connected to gas stations/convenience stores,while others
called McExpress have limited seating and/or menu or may be located in a
shopping mall
CONTD……
 Other McDonald's are located in Wal-Mart stores.
 McStop is a location targeted at truckers

and travelers which may have services


found at truck stops.

PLAYGROUNDS:-
 Some McDonald's in suburban areas and certain cities feature large indoor or
outdoor playgrounds.
 The first Play Place with the familiar crawl-tube design with ball pits and slides
was introduced in 1987 in the USA,
 "R Gyms" are in-restaurant play areas that feature interactive game zones
designed for children aged four to 11.
REDESIGN
 In 2006, McDonald's introduced its "Forever Young" brand by redesigning all
of their restaurants, the first major redesign since the 1970s.
 The design includes the traditional McDonald's yellow and red colors, but the
red is muted to terra cotta, the yellow was turned golden for a more "sunny"
look, and olive and sage green were also added.
The restaurants feature areas:
 The "linger" zone offers armchairs, sofas, and free Wi-Fi connections.
 The "grab and go" zone features tall counters with bar stools for customers
who eat alone; plasma TVs offer them news and weather reports.
 The "flexible" zone is targeted toward families and have booths featuring
fabric cushions with colorful patterns and flexible seating.
 Different music targeted to each zone.
REDESIGN RESTAURANT
MARKET SHARE FOR BURGER
market share

4% 4% 2%

Burger king
Wendy's
Other
MC'Donald

90%
MEN
U
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 are operated by others through a

variety of franchise agreements and joint ventures.


 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


MCDONALD'S MARKETING
STRATEGY
 McDonald's Brand Positioning and Messaging :-
 One of the greatest attributes of McDonald's is its "everyday affordability" message
that drives customers to McDonald's restaurants
 the Kung Fu Panda film and fresh "I'm Lovin' it"
ads, McDonald's continues to keep their marketing edge
 its sales are three times that of No. 2 burger chain
Burger King. 
o Ongoing Innovation and Knowing
When to Make Changes :-
 For McDonald's it will continue to be a year of innovation.
 According to CMO Mary Dillon: "We are the kind of business and brand that is never
happy with yesterday.
 We are always looking to tomorrow and how do we get better?" 
CONTD…..
 Global Reach :-
 By combining fundamentally sound operational

practices with innovative marketing strategies,


Ray Kroc (McDonald's originator) laid the foundation
for McDonald's global success.
 Today, McDonald's values transcend borders and cultures.

Each and every day, 47 million consumers worldwide.


visit McDonald's because they know and love the
Golden Arches, Ronald McDonald and Big Mac
sandwiches.
MCDONALD'S GLOBAL REACH
SWOT ANALYSIS
 STRENGTHS:-
 McDonald's has been a thriving business
since 1955 and 20 of the top 50 corporate
staff employees started as a restaurant level
employee.
 In addition, 67,000 McDonalds restaurant
managers and assistant managers were promoted from restaurant staff.
 Fortune Magazine 2005 listed McDonald's as the "Best Place to Work for
Minorities."
 McDonalds invests more than $1 billion annually in training its staff, and
every year more than 250,000 employees graduate from McDonald's
training facility, Hamburger University.
CONTD…
 WEAKNESSES:-Their test marketing for pizza
failed to yield a substantial product. Leaving them
much less able to compete with fast food pizza chains.
High employee turnover in their restaurants leads to more money being spent on
training
 OPPORTUNITIES:-.

 In today's health conscious societies the introduction

of a healthy hamburger is a great opportunity.


 They would be the first QSR (Quick Service

Restaurant) to have FDA approval on marketing a low


fat low calorie hamburger with low calorie combo alternatives.
 Currently McDonald's and its competition health choice items do not include
hamburgers
CONTD…
 They have industrial, Formica restaurant settings; they could provide
more upscale restaurant settings, like the one they have in New York
City on Broadway, to appeal to a more upscale target market.
 THREATS:-

 They have been sued multiple times for having

"unhealthy" food, allegedly with addictive additives,


contributing to the obesity epidemic in America in 2004.
 They have been criticized by many parent advocate groups for their
marketing practices towards children which are seen as marginally
ethical.
 Major competitors, like Burger King, Starbucks, Taco Bell, Wendy's,
KFC and any mid-range sit-down restaurants.
BCG MATRIX

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