McDonalds Marketing Plan Essay

I. EXECUTIVE SUMMARYMcDonalds Philippines is a infantryman of the Filipino-owned Golden Arches overhaulment Corporation. The first Filipino McDonalds to open for telephone circuit was in the Morayta university districts in manila during 1981. These solar days McDonalds is operating over 150 eating houses throughout the islands of the Philippines. Being a hundred% Filipino-owned franchise allows McDonalds Philippines to be to a greater extent agile and take quicker actions, making them an even more matched force in the Filipino immediate- viands merchandise.It is one of the leading fast-food orbits internationally as well as in the Philippines, with a rapidly developing consumer dishonor and gro growg node base. . It is a place for family togetherness make around a common love of the traditional food. Its operating system is characterized by instructioning on uniformity for consistent choice, the formation of break inner relationship with its franchises and supplier to improve operating system innovatively and sound but not least the introduction of rising produces. With its steady drive for improvement and consistently utmost bore, McDonalds revolutionized the entire supply chain. Instead of regimenting its supplier and franchisees, McDonalds lodgeed commitment from them in monetary set of adherence and experimentation.The implemented, smooth operating chain of suppliers, McDonalds corporate management and franchisees balances each other, creates an entrepreneurial inspirit that added comfort, intent, economics of scale, the bargaining military unit for publicise and purchasing, as well as new product and extremity ideas to the beau monde. Additionally, all involved parties main(prenominal)tained a collective emphasis on disciplined grapheme standards. As years passed by, McDonalds needed to adapt to industry diversifys by accomplishing many process design innovations in fruitful collaboration with its suppliers and franchi sees.In this context, McDonalds improved the chains chicken 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 pass on out 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 along with the nice side effect that it erstwhile more distinguishes itself from its competitors.This merchandiseing plan is used in outlining the product, pricing, and scattering and promotion strategies to be implemented and executed during this epoch. It proposes a revitalization of the McDonalds philosophy so as to focus on the quality of products and services for customers value and a sun-loving lifestyle, healthy eating habits, smart choices and education. The plan to a fault outlines the structural issues that may arise during its implementation and execution, tactical initiatives to plication strategy into action.II. CHALLENGEProblemBefore, the community use grilled direct system. Which becomes the problem of the company because the customer always complaining close the quality of the product give cargon chicken mcdo, when it is served to the customers it is not crispy because it waistband longer in the warming bin, and also the patty of the burger, it is not juicy because it is not hot.The access of McDelivery to the describe center is another problem of McDonalds because some quantify the information about on the location of the customer is wrong.Solution nary(prenominal) a day the McDonalds uses the Made for You (MFY) system. Food is make or inclined(p) to actual customer demand, providing each and all burger only when it is needed just in time (JIT). It standardizes gather of all sandwiches to one or two at a time. Requires minimal Human Decisions Making. It requires Behavioral ch ange Quality Complete waste Equipment Standard procedureIII. SITUATION ANALYSISCompany Analysis Goals Develop a solution to improve kitchen layouts, throng positioning and operational procedures for a better guest experience. In simple terms our goal is to pay a happy and satisfied customer. Focus the company should focus on products and services.McDonalds is a customer-oriented company that strives to offer Filipinos a combination of great tasting, quality food productions at value prices with excellent service. Values Customer 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 good c ar of our customers is the first vital step toward effective sales events building. Patents and trademark Branding much(prenominal) 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 magnate etc. Lack of cooperation between the management and in the crews. Market Sh ars McDonalds has captured more than 40% administer 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 are eating at the McDonalds everyday especially during breakfast, lunch, and dinner. theatrical role 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). each happy meal purchase gives 50 centavos to RMHC. Decision process The customer have a spile of decision making it is base of what they needs and wants, also the customer decide to buy a discounted product like in coupon and the mcsaver meals.Competitor Analysis Market PositionNo. 1 (Jollibee)No. 2 (McDonalds) StrengthsLasang PinoyRaw materials are environment friendly WeaknessesJollibee has a poor service Market shares Jollibee has captured more than 52% share of the hamburger market in the Philippines.SWOT ANALYSISStrength Risk diverseness Large market share inviolate supply chain Promoting ethical conduct Competitive fast-food chain Attentive and friendly staff/crews Rigorous food safety standards Good nature 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 available on packaging Strong global presence and performance in the global marketplace Specialized breeding for managers known as the Hamburger University McDonalds design to Win focuses on people, product, place, price and promotionWeaknesses Unhealthy food image High staff turnover including authorize management Customer losses payable to vicious competition Lack of access to the best natural resources Lack of access to key distribution postOpportunities Growing health trends among consumers Joint ventures with retailers Consolidation of retailers likely, so better locations for franchisees Respond to social changes by innovation with in healthier lifestyle foods Strengthen its value proposition and offering, to go on customers who visit coffee shops into McDonalds The new formats, Mccafe, having wi-fi internet links should suffice in attracting segments. Also installing childrens play-parks and its focus on educating consumers about health, fitness. International expansion into emerging markets of other country Growth of the fast-food industry petty(a) cost placard that will attract the customers Providing many promotional activitiesThreats Health professionals and consumer activists accuse McDonalds of bestow to the country health iss ue of high cholesterol, heart attacks, diabetes, and obesity McDonalds competitors threatened market share of the company both internationally and domestically Global recession and fluctuating foreign currencies Affordability of the competitors products Similar flavors and products of the competitors Competitors endorsers are oftentimes popular when it compares to McDonaldsIV.Market SegmentationMarket Segmentation is the process of splitting customer in to polar groups, or segment within the customers with similar characteristics have similar needs.Geographical SegmentationMcdonalds offered their services based on certain country basic food. Like Philippines McDonalds realized that Filipino basic food is rice which with heat up chicken as its local basic food.Demographic/Psychographic SegmentationDemographic segmentation drainage aread the market into groups based on variables like gender, age, nationality, religion family life cycle and family size McDonald offered their se rvices by divide their customer base on age, religion and family life cycle. To offer the best service McDonalds motionlessness pertain 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. One of the best forms of segmentation is to divide buyers according to the different benefits that they want to get by purchasing the product. Usually people who look for in their product class or look for each benefit. For example, McDonald depict McDelivery for 24 hours, this is the only one pitching service that not stop even once in a while a day by just call it and browse, after that within a minute it comes to your place with the food that still hot and fresh.V. Alternative Marketing StrategiesMcDonalds has seen recent success through a careful implementation of its Plan to Win strategy, which focuses on several key aspects of the business, namely increasing traffic to eating houses, providing everyday value to customers, innovating the company through the creation of new lineup items, re-imaging the companys look, as well as its marketing campaigns.McDonalds Plan to Win is based on a core set of four main goals Acquire more customers Get these customers to eat at McDonalds more often Develop more brand loyalty for the McDonalds brand Ultimately become more profitableIncreasing 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 displaying the companys attention toward a alter menu of low cost items. Such advertising serves to satisfy all four of goals of Plan to win progr am, drawing customer interest through a short display of the plethora of new menu options recently added, while also helping to change the look and feel of McDonalds in the minds of customers.Providing everyday valueIn order to create an overall 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. charm traditional menu options emphasize a trade-off between ordering 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 ordering options. Customers can now expect an increase in health-conscious options by adding some vegetables in the burger and also they provide so me dessert like 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 classical of keeping customers informed of the inveterate changes to the company through advertising media and social media dialogues, McDonalds also recognizes the value of maintaining an on-going 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 developmen t for the company, 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 indistinguishability, 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 plant life 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 barely.Beyond this, brand specialness and authority continue 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 an d accepted 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 in any casel the Happy Meals, which seem to fascinate children due to the swindles include in the menu. In addition 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 exterior of every restaurant is also strategically designed using bright colors to invite in the customer, especially kids who can slowly be influenced by these aspects. 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 fact 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 jackass mascot, Ronald McDonald, who is essential for creating the bond with children and entertaining them. They can even have private 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 pertness and safety. McDonalds uses regional suppliers to ensure that the freshness is delivered to customers in every product they buy. Food quality is keys at McDonalds. They seek out fresh lettuce and tomatoes, onions and pickles, quality buns and tateres, axenic ground beef, select poultry and fish and wholesome dairy farm products. All of the beef, chicken and pork that are used are purchased from federally inspected facilities to ensure freshness, wholesomeness and peak quality when served to customers.Non-Vegetarian IngredientsChickenThe 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.FishThe fish products in McDonalds Filet O- Fish are 100% thoroughgoing(a) 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 IngredientsVeget ablesMcDonalds use freshly 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 celebrated 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 Ingredients cheeseflower 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 fare 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 complement the flavor of their sandwiches.BunsMcDonalds uses buns made from locally grown wheat flour. They are baked 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 section 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 nothing but the best to finish up customers tray.Their products are sourced from the highest quality ingredients, prepared hygienically and treated to regular quality checks such as the McDonalds Inspection Program (QIP).Scope of Product LineDistribution (Place)Place, as an component of the marketing flux, 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. intensifier 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 distributi on, means marking the product available for sale through all possible channels of distribution. Intensive distribution is stocking the product in as many outlets as possible.PromotionThe 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 calling card 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 support by in-store promotions to get people to try the product and a collectable promotional device to encourage them to keep on buyin g the item.At McDonalds the prime focus is on targeting children. In happy meals too which are targeted at children small toys are given along with the meal. Apart 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 probable cost. The company should also provide a large number of riders to avoid late delivery.