419238643 Marketing Plan in Mc Donalds Philippines PDF

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Group 5-ABM12 | Marketing | January 6, 2018MARKETING PLANOf mcdonald’sIntroduction McDonald’s is one of the leading biggest Fast Food Chains not only in the U but in other parts of the globe. In 2011 McDonald’s ranked 2nd for the Biggest Quick Service Restaurants (or QSR’s) in the U but ranked 1st i...

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MARKETING PLAN Of mcdonald’s

Group 5-ABM12 | Marketing | January 6, 2018

Introduction McDonald’s is one of the leading biggest Fast Food Chains not only in the U.S but in other parts of the globe. In 2011 McDonald’s ranked 2nd for the Biggest Quick Service Restaurants (or QSR’s) in the U.S but ranked 1st in 2012, as ranked by the QSR Magazine. (Forbes 2012). The Founder of McDonald ’s Ray Kroc rose from humble beginnings, in 1917, 15-year-old Ray Kroc lied about his age to join the Red Cross as an ambulance driver, but the war ended before he completed his training. He then worked as a piano player, a paper cup salesman and a Multimixer salesman In 1954, he visited a restaurant in San Bernardino, California that had purchased several Multimixers. There he found a small but successful restaurant run by brothers Dick and Mac McDonald, and was stunned by the effectiveness of their operation. They produced a limited menu, concentrating on just a few items – burgers, fries and beverages – which allowed them to focus on quality and quick service. In 1954, he visited a restaurant in San Bernardino, California that had purchased several Multimixers. There he found a small but successful restaurant run by brothers Dick and Mac McDonald, and was stunned by the effectiveness of their operation. They produced a limited menu, concentrating on just a few items – burgers, fries and beverages – which allowed them to focus on quality and quick service. They were looking for a new agent and Kroc saw an opportunity. In 1955, he founded McDonald’s System, Inc., a predecessor of the McDonald ’s Corporation, and six years later bought the exclusive rights to the McDonald’s name. By 1958, McDonald’s had sold its 100 millionth hamburger. They were looking for a new agent and Kroc saw an opportunity. In 1955, he founded McDonald’s System, Inc., a predecessor of the McDonald ’s Corporation, and six years later bought the exclusive rights to the McDonald’s name. By 1958, McDonald ’s had sold its 100 millionth hamburger. Now McDonald’s has around 30, 000 outlets in more than 120 countries and thus it have been considered among world’s largest food chains. Their affluent time began with their founder Ray Kroc’s vision and his dedication, changed in their brilliant managers, and this will maintain the polish on McDonald’s name for years to come.

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History of McDonald’s in the Philippines It was in 1981 when George T. Yang opened the first McDonald’s Restaurant in the Philippines along the Morayta, Manila and in 2005, McDonald’s Philippines became a 100% Filipino owned company under the name Golden Arches Development Corporation. His son Kenneth S. Yang, the current President and CEO of McDonald’s Philippines has grown to become one of the country’s leading quick service restaurants, with 400 stores nationwide that proudly serves global icons, such as the Big Mac, Chicken McNuggets and World Famous Fries, as well as food specially made to delight the Pinoy palate, like the Chicken McDo, Burger McDo and McSpaghetti.

More than great tasting food, McDonald’s Philippines offers world-class services that cater to the changing lifestyles of its customers. With 24-hour restaurants and delivery services, via McDelivery, Drive-Thru and Dessert Centers, McDonald’s Philippines ensures convenience for its customers, anytime, anywhere. In its commitment to the Filipino family, McDonald’s has continuously strived to bring happiness to children through its CSR programs under Ronald McDonald House Charities (RMHC). RMHC is committed to making a difference in the lives of Filipino children through its banner programs “Bright Minds Reads (BMR)”, a beginning reading program for Grade 1 students, “Bahay Bulilt”, which aims to build low-cost day care centers for children aged 2-5 years old, and “Bigay Tulong”, a program to provide immediate aid to affected families during natural calamities. The McDonald’s system has over 27,000 employees all over the country, each with a commitment to deliver quality service and a delightful customer experience. Employees enjoy a dynamic working environment, support, training and opportunities to help them deliver the best possible results and advance their career.

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Mission, Vision and Values (Philippines)

Mission McDonald’s Philippines aims to not only offers great tasting food but also offers a world class services that offers a great experience for their customers. They offer a 24-hour restaurant and delivery services, through the McDelivery, Drive-Thru and Dessert Centers, To ensure the convenience of the Pilipino customers anytime and anywhere in the McDonald’s Philippines.

Vision In its commitment to the Filipino family, McDonald’s has continuously strived to bring happiness to children through its CSR programs under Ronald McDonald House Charities (RMHC). RMHC is committed to making a difference in the lives of Filipino children through its banner programs “Bright Minds Reads (BMR)”, a beginning reading program for Grade 1 students, “Bahay Bulilt”, which aims to build low-cost day care centers for children aged 2-5 years old, and “Bigay Tulong”, a program to provide immediate aid to affected families during natural calamities.

Values The McDonald’s system has over 27,000 employees all over the country, each with a commitment to deliver quality service and a delightful customer experience. Employees enjoy a dynamic working environment, support, training and opportunities to help them deliver the best possible results and advance their career.

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Situational Analysis

Market Analysis McDonalds is a usually acknowledged marketplace Leader in the quick nourishment Industry or also called the "Burger" business. The organization has productively perceived a prominent brand picture. Indeed, the extensions of quick nourishment have been named subsequent to the association as 'McDonaldization'. Advertising includes distinguishing what clients require and endeavoring towards satisfying their requests. Promoting Audit includes investigating the organization's different viewpoints and assessing the organization's advertising technique. It includes in drawing out the pitfalls in the associations execution. McDonald's is the world 'stop organization in the fast food industry. It has more than 30,000 eateries in more than 100 nations serving millions of individuals around the worldwide.

Market Size Targeting implies choosing specific groups identified as a result of segmentation to sell products. How does McDonalds select/target the right segments? Iacobucci (2014) advices that marketers iterate between understanding corporate fit and having information about segment size and likely profitability. Types of segmentation

Geographic

Segmentation

McDonald’s

Criteria

target segment

Region

Domestic/International

Density

Urban/rural

Age

8-45

Gender

Males/Females

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Bachelor Stage: young, single people not living at home Life-cycle stage

Full Nest II: youngest child six or over

Demographic

Behavioral

Newly Married Couples: young, no children

Income

Low and middle

Occupation

Students, employees, professionals

Degree of loyalty

‘Hard core loyal’ and ‘Switchers’

Benefit sought

Cost benefits, time efficiency

Personality

Easy going and careless

User status

Potential and regular fast food eaters

Social class

Lower, working and middle classes

Psychographic

McDonald’s targets Resigned, Struggler and Mainstreamer individuals according to Cross Lifestyle

Cultural Consumer Characterization developed by Young and Rubican

Market Growth Rate

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Earning Growth Rate 16 14 12 10 8 14.16 6 9.62

8.67

4

6.45

2 0 Dec-16

Dec-17

Dec-18

0 Dec-19

Long term 5 yr

Growth Rate

Market Profitability

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Return on sales Gross profit margin Operating profit margin Net profit margin Return on Investment Return on equity (ROE) Return on assets (ROA)

Dec 31, 2016

Dec 31, 2015

Dec 31, 2014

Dec 31, 2013

Dec 31, 2012

41.45%

38.52%

38.10%

38.79%

39.24%

31.45%

28.12%

28.97%

31.18%

31.21%

19.03%

17.82%

17.34%

19.87%

19.82%

–%

63.90%

37.02%

34.89%

35.73%

15.11%

11.94%

13.88%

15.25%

15.44%

Industry Cost Structure McDonald’s cost structure is very similar to the industry average, with raw materials (purchases) being the largest component, followed by labor. Breakdown: 

31.00% on Purchases



24.60% on Wages



14.00% on Rent and Utility



3.50% on Depreciation



3.40% on Marketing

Distribution Channels The most prominent place McDonald’s products can be found are at its restaurants. Other places where the company uses to sell its products are:

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

Kiosks



Post mates website and app



McDonald’s mobile app

Hence, the company is using the selective distribution channel maintaining a push-and-pull marketing communication.

Market Trends Nullatech AI, predicted 71.33% of McDonald’s Corporation (MCD) market trends correctly in last 300 weeks. McDonald’s is an American fast food restaurant chain. Two brothers founded McDonald’s in 1940 and today is one of the world’s largest restaurant chains. McDonald’s stock is among the 3 Dividend Aristocrats Over the Last 10 Years. There are more than 36.000 of McDonald’s branches worldwide. so it makes sense that McDonald’s stock has grown this much through these years.

Customer Analysis To build long-term business it is essential to retain people once they have become customers. Customers are not all the same. Market research identifies different types of customers. These examples represent just a few of

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McDonald's possible customer profiles. Each has different reasons for coming to McDonald's. McDonald’s wants to recognize and emphases a lot focus on buyer behavior. It usually asks the following questions in Oder to understand the market needs and wants in term of what they want to buy, when they want to buy? Where they want buy? On other hand there are many different segments when it comes to McDonald's such as geographic, demographic, age, gender, income, and ethnic. McDonald's offers not only hamburgers, but also chicken sandwiches, fish burgers, beef wraps, and chicken wraps. With this much variety McDonald's can attract way more customers

Competitive Analysis Market Share of Leading Brands In U.S (2015)

Other

58.90%

Chipotle

2.20%

Wendy's Company

4.40%

Subway

6.70% 10.80%

Yum Brands Inc. McDonald's

17% 0%

10%

20%

30%

40%

50%

60%

70%

McDonald’s is one of the leading fast food chain in the industry and it’s market share as observed on the chart above, compare to other competitor in U.S like chipotle, Wendy’s, Subway and Yum Brands Incorporation, McDonalds’ have been successful in surpassing it’s competitors due to their Emphasis on aligning with local taste, Multi-domestic strategy, high level of Diversification and Related-Constrain. With just only a year it’s competitors bench market their method.

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In the Philippines, comparison between McDonalds’ no.1 competitor Jollibee especially in Metro Manila as of early January 2017 shows a surprising result. At 253, the number of Jollibee branches in the National Capital Region's 17 cities easily overwhelms McDonald's 164 stores. The figures were compiled from the two fast-food chain's websites and mobile apps as of January 5, 2017. However, McDonald's managed to edge past Jollibee in three of four business districts--Makati City, Bonifacio Global City in Taguig, and Binondo, the country's biggest Chinatown, in Manila. In BGC, McDonald's even has more than double Jollibee's stores. It's only in Ortigas Center, where Jollibee has its main office, that it outnumbers McDonald's.

SWOT Analysis Strengths 

Strong brand name, image and reputation McDonalds’ is one of the leading fast food chains with more than

31,000 restaurants serving burgers and fries in almost 120 countries for over 62 years and establish their brand so well that the image of McDonalds is recognized everywhere. This brand is in top ten of the most powerful brand names in the world with Coca-Cola, Nokia or GM. In 2003 McDonald’s brand value was placed at 8th number among worlds most valuable brand with $24.69 billions (source: interbrand). Brand image is the totality of consumer perceptions about the brand, or how they see it. Companies have to work hard on theconsumer experience to make sure that what customers see and think is what they wantthem to. (Temporal, 2002 & Marino, 2004) 

Large market share

McDonalds is considered as the largest player in size and global reach. When Wendy’s or Burgers King are losing market share in 2006, McDonalds still

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increases its market share. Market share of McDonalds in the recent time is about 19% while Yum!Brands is 9% and both Wendy’s and Burger King is 2%. 

Specialized training for managers

McDonalds is very serious on training managers. This company has its own program to train managers the most professionally, which is called Hamburger University. As a result, McDonalds has many good managers who can help company development well. 

McDonalds Plan to Win

McDonalds customer – focused Plan to Win provide a common framework for its global business yet allows for local adaptation. Through the execution of initiatives surrounding the five elements of its Plan to Win – People, Products, Place, Price and Promotion – McDonalds has enhanced the restaurant experience for customers worldwide and grown comparable sales and customer visits in each of the last eight years. This Plan, combined with financial discipline, has delivered strong results for company’s shareholders. 

Introduction of new production

McDonalds is considered the first one enters to fast food industry. It initiates to other brand to enter this industry. As a result, when think about fast food, customers always remember McDonalds first. In fact, in some big countries, especially in US, McDonalds is the first choice of a large number of customers. 

Technology Innovative

McDonald’s is keeping at the forefront of technology around the globe. For example, In Brazil McDonald’s is currently studying the installation of Internet access terminals in some outlets as well as enabling customers to order online. This will create a more efficient process that will reduce the amount of lag time between a customer’s orders and pick up of the order.

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

Good marketing strategies No matter the continent, children and adults know the face of Ronald

McDonald is synonymous with the colossus restaurant chain. This results in wonderful marketing strategies among management which conducts a very thorough market analysis, resulting in much success around the globe.

Weaknesses 

Unhealthy food image McDonald's has been impacted by negative press like the

documentary "Supersize Me" by Morgan Spurlock in which he contributed our society’s obesity to McDonald's and other fast food chains. In fact, each McDonalds dishes provides large amount of calories but not too much nutrition. 

Customer loses due to fierce competition McDonalds has to compete with many strong brand name in fast food

industry such as Wendy’s, Burger King or Yum!Brands. This fierce competition makes McDonalds loose a large number of customers who prefer favor of other brands. 

Problem related to health issue McDonalds use Trans - fat and beef oil in their food. Although it is not

illegal, it affects badly on customer’s health because Trans – fat is causes of some kind of cancer. Consequently, a number of customers who care about their health stop eating at McDonalds restaurants. It makes revenue of company decrease. 

Legal action

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McDonald’s has been involved in a number of lawsuits and other legal cases in the course. For example, there are many case which involved with trademark issue. McDonald’s force many others restaurant, company of just a coffee shop to change their brand name because of keeping “Mc” letters. 

Unbalance meals

Although McDonalds tries to update its menu by healthy criteria, McDonald’s meals are still unbalance. For example, there are many dishes with chicken (both grilled and fried), bacon, beef, rib or egg. Besides, just several dishes are salad with vegetable and fruit. Moreover, amount of fruit or vegetable is not much. 

High employee turnover rate

Although McDonalds has many good managers as well as skillful employees, the turnover rate is still high. Every year many of their employees are fired out of the restaurants. Moreover, many others quit their jobs, especially part time employees because of low salary as well as too high working pressure. 

Action related to environmental issue

McDonalds uses HCFC – 22 to make polystyrene that is contributing to ozone depletion. The company has to repair this weakness if doesn’t want to be criticized. 

Dissatisfied Franchisees

Franchisees are beginning to become very dissatisfied with the fees that McDonald’s are forcing them to pay. As the company continues to expand, they are also increasing the amount of fees franchisees have to pay for the use of the notorious fast-food brand. Many people are not very happy about this and as a result many franchisees are selling their businesses.

Opportunities

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

Growth of the fast food industry Fast food industry now is developing significantly. The change of

lifestyle leads to the change in people eating habit. In the past, if just workers, drivers or someone who had to work busily and didn’t have enough time for a home meal choose fast food; nowadays, almost people eat fast food and a major of them like fast food very much. It is a huge chance for fast food brand to increase their revenues, especially McDonalds. 

Conservation McDonald should research green energies and green packaging

solutions and incorporate these finding as a part of their marketing strategies and advertisements. 

Globalization, expansion in other countries McDonalds has more than 31,000 restaurants serving in almost 120

countries. Of the 31,000 restaurants, at least 14,000 are in US. However, now, because the care of McDonalds about favors and cultures in each country it enters, McDonalds can open more restaurant in new areas such as China or India – the countries which culture influences on people lifestyle dee...