McDonald’s

 McDonald’s Restaurants is a wholly-owned subsidiary of McDonald’s

Corporation of the USA.

 McDonald’s have been around since 1955 when Ray Kroc started the chain of
McDonalds. They have been growing ever since.

 1.6 million employees working worldwide

 McDonald's is the leading global foodservice retailer with more than 32,478
local restaurants serving more than 60 million people in 117 countries each day.

 More than 75% of McDonald's restaurants worldwide are owned and operated by
franchises.
McDonald’s in Middle East
 In the Arab nations, all McDonald's restaurants are locally
owned and operated by Arab entrepreneurs.
 The first restaurant in the region opened in
Riyadh, Saudi Arabia, on December 8th, 1993;
then Jeddah, KSA on January 19th, 1994;
Oman in March 1994;
Kuwait in June 1994;
Bahrain on December 15th, 1994;
the UAE on December 22nd, 1994;
and Qatar in December 1995.
McDonald’s in UAE
 Population of UAE 3.1 million

 McDonald's restaurants in the UAE are Emirati owned

and operated by the Emirates Fast Food Corporation.

 McDonald's has 70 restaurants in the UAE located at

malls, petrol stations and drive thru with the first
restaurant opening on 22 December 1994.
Favourite foods at McDonald’s
 The McDonalds Brand is one of the most well known
Brands in the world.

 World Famous Fries, Big Mac, Quarter Pounder, Chicken

McNuggets and Egg McMuffin.
Community Involvement
 McDonald's UAE is very active in the community,
supporting many projects and events at schools and with
environmental groups.

 McDonald's regularly invites children with special needs

to new restaurant openings offering complimentary meals
and giving these children the opportunity for a fun outing.
Financial Figures
 “McDonald's 2009 results reflect the broad-based strength
of their global business”

 Total revenues in 2009 was $22745.

 Return of $5.1 billion to shareholders through shares

repurchased and dividends paid.
Increase in Sales
Ever Been to McDonald’s?
With regards to your last visit at
McDonald's , how satisfied were you ?
Will you visit McDonald's again ?
How often you visit McDonald's ?
 Is McDonald value for money ?
Would you recommend McDonald's to
other ?
Marketing Mix
 Product
 Price
 Place
 Promotion
Product
 On the Go meals – fast service
 Huge importance given to what customer wants.
 Menu designed after analyzing customer insights
 Happy meals for kids
 Enjoys economies of scale
Product Life Cycle

 McDonalds keep introducing new products

 Makes sure that sale of one product does not cannibalize
the sale of another product
 Big Mac is in maturity stage, while most product are in
growth
 McDonald’s itself is in growth stage.
Price
 The customer's perception of value is an important
determinant of the price charged.
 Customers draw their own mental picture of what a
product is worth.
 Value Price – good service and fair price.
Promotion
 The promotions aspect of the marketing mix covers all
types of marketing communications.
 Promotion through :
 Advertising
 Direct Marketing
 Above the line activity
Place
 Relates to distribution of the Product
 It encompasses the management of a range of processes
involved in bringing products to the end consumer.
 Outlets are at all the major malls
 Outlets at every major gas station
 Easily accesibile
BCG Matrix

 A method of evaluating businesses relative to the growth

rate of their market and the organization’s share of the
market.
 Dogs have small market shares and no growth prospects.
 Cash cows have large shares of mature markets.
 Question marks have small market shares in quickly growing
markets.
 Stars have large shares of rapidly growing markets
 Strengths
High
Global
Well profit
trained
Exclusive
motivated
and

High
Global
margin
brand profit
Well trainedline
product
Exclusive
employee
motivated
and
base
margin
brandbase
product
employee line
Weakness

 Pre conceived notion of it

being a unhealthy.

Are not able to attract local

talent.
Opportunity
 Lot of scope for expansion.
 Enormous growth in the population.
 Fast growing industry.
Threat
 High competition from similar outlets like, kfc, burger
king etc.
 Change in people attitude towards food, ie, people
growing health consciousness.
 Technological advancement.
Targeting

 Main target customers are children: Happy meal toys

 Teenagers: focuses on the cheap and quick nature of the
food
 Working class customer base: convenient to have a quick
lunch in a busy schedule
Positioning
 Emphasis on enhancing its brand positioning through
sponsorship of events and sports
 It was one of eight corporate sponsors of the Millennium
Dome Experience, investing £8 million in the Dome's
community program and learning experience.
 It has been a major sponsor of international football,
including the World Cup since 1994 and the Champions
League from 1996 to 2000.
 It has sponsored British athletics since 1993, notably the
McDonald's Young Athletes' League, training 11 to 17 year
olds.
 It has sponsored Child Safety Week since 1994
Burger King
 is a global chain of hamburger fast food restaurants
headquartered in Miami-Dane county, Florida, U.S.A
 52 outlets in UAE.
 Favorites- whopper, chicken, specialty value meals
 Employees almost 41000 people worldwide
 Net revenue $2.54 billion (FY 2009)
Burger King
Goal-”Working for you”
Two separate counters to order and pick
the food
The burger is prepared in the kitchen as
and when the orders are placed thereby
promising a fresher meal
Community development did not seem to
be there
Managers took involvement by taking
orders and training employees thereby
ensuring a systematic employee behavior.
McDonald’s
Goal-100% customer satisfaction
Two separate counters to order and pick
the food
Food is made in mass production.
Fast service and emphasis on quality
Involved in lot of community
development work
At Mc Donald’s on global terms-
differentiation strategy-courteous
employees
Comparison
What factors do you consider important
when visiting McDonald?
PRICE
Food Quality
Promotion/Discount
Service
Hygiene
Convenience
Product