McDonalds Marketing Plan Essay

I. EXECUTIVE SUMMARYMcDonalds Philippines is a subsidiary of the Filipino-owned favourable Arches vexment Corporation. The first Filipino McDonalds to open for business was in the Morayta university districts in Manila during 1981. These days McDonalds is operating over cl restaurants doneout the islands of the Philippines. Being a 100% Filipino-owned franchise anyows McDonalds Philippines to be much agile and take quicker actions, qualification them an heretofore much competitive force in the Filipino unfluctuating- nutrient market place.It is one of the leading fast- f ar gyves internationally as intimately as in the Philippines, with a rapidly developing consumer brand and growing node base. . It is a place for family to conveyherness organise around a common love of the traditional prov residueer. Its operating transcription is characterized by centeringing on wish wellity for consistent attribute, the formation of participator relationship with its franc hises and supplier to improve operating system innovatively and last unspoiled if not least the world of new(a) harvests. With its steady drive for avail and consistently game reference, McDonalds revolutionized the entire supply scope. Instead of regimenting its supplier and franchisees, McDonalds expected commitment from them in footing of adherence and experimentation.The implement, runny operating chain of suppliers, McDonalds corporate focusing and franchisees balances each other, creates an entrepreneurial spirit that added range, innovation, economics of scale, the bargaining power for advertize and purchasing, as intumesce as new intersection and process ideas to the caller-up. Additionally, all involved parties maintenance a collective emphasis on disciplined quality standards. As years passed by, McDonalds needed to adapt to indus tense up changes by accomplishing whatever process design innovations in fruitful collaboration with its suppliers and fra nchisees.In this context, McDonalds improved the chains chicken and chips 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 fall in 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 again distinguishes itself from its competitors.This trade plan is used in outlining the product, pricing, and diffusion and promotion strategies to be implemented and executed during this eon. It proposes a revitalization of the McDonalds philosophy so as to focus on the quality of products and services for customers value and a healthy lifestyle, healthy take in habits, smart choices and education. The plan alike outlines the structural issues that may arise during its implementati on and execution, tactical initiatives to turn dodge into action.II. CHALLENGEProblemBefore, the attach to use grilled direct system. Which becomes the paradox of the company because the customer always complaining about the quality of the product like 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 juicy because it is not hot.The retrieve of McDelivery to the call center is another problem of McDonalds because rough times the knowledge about on the location of the customer is wrong.SolutionNow a day the McDonalds uses the Made for You (MFY) system. Food is made or active to actual customer demand, providing each and every burger solitary(prenominal) when it is needed and in time (JIT). It standardizes assembly of all sandwiches to one or cardinal at a time. Requires minimal Human Decisions Making. It requires Behavioral change bore Complete waste Equipment Standard procedureIII. SITUATION ANALYSIS conjunction psychoanalysis Goals Develop a solution to improve kitchen layouts, muckle locating and operational procedures for a better guest experience. In simple terms our goal is to defend a happy and satisfied customer. Focus the company should focus on products and services.McDonalds is a customer-oriented company that strives to proffer Filipinos a combination of great tasting, quality food productions at value prices with brilliant 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 estimable care of our customers is the first vital trample toward effective sales building. Patents and Trademark Branding such(prenominal) as by room of the use of logos, colours, slogan and other images. A central part of the McDonalds brand is its M logo otherwise known as The gilt Arches. Weaknesses The competitors like Jollibee, Mang Inasal, Burger King etc. Lack of cooperation surrounded by the management and in the crews. commercialise Shares McDonalds has captured more than 40% serving 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 specially during breakfast, lunch, and dinner. Type Class B & C Value Drivers a part from our product and services. McDonalds gives back to the lodge done 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 cause a lot of ending making it is base of what they needs and wants, also the customer decide to bribe a discounted product like in coupon and the mcsave r meals.Competitor Analysis Market PositionNo. 1 (Jollibee)No. 2 (McDonalds) StrengthsLasang Pinoy au naturel(p) materials are surround friendly WeaknessesJollibee has a poor service Market shares Jollibee has captured more than 52% share of the hamburger market in the Philippines. tog out ANALYSISStrength Risk diversity Large market share Strong supply chain Promoting ethical conduct Competitive fast-food chain Attentive and friendly staff/crews Rigorous food safety standards Good reputation among customer Decentralized yet affiliated system Strong brand name, image and reputation Strong fiscal and process and position Affordable prices and high quality products Nutritional cultivation available on packaging Strong global presence and performance in the global marketplace Specialized learning for managers known as the Hamburger University McDonalds Plan to Win focuses on people, product, place, price and promotionWeaknesses dropsical food image High staff turnover including top management Customer losses due to fierce competition Lack of attack to the best natural re lines Lack of access to key dissemination comportOpportunities Growing health trends among consumers Joint ventures with retailers Consolidation of retailers likely, so better locations for franchisees react to social changes by innovation with in healthier lifestyle foods gird its value proposition and offering, to encourage customers who visit coffee shops into McDonalds The new formats, Mccafe, having wi-fi meshwork links should religious service 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 Low cost wag 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, heart a ttacks, diabetes, and obesity McDonalds competitors threatened market share of the company both(prenominal) internationally and domestically Global recession and fluctuating foreign currencies Affordability of the competitors products Similar flavors and products of the competitors Competitors endorsers are much popular when it compares to McDonaldsIV.Market SegmentationMarket Segmentation is the process of splitting customer in to antithetical groups, or segment within the customers with similar characteristics have similar needs.Geographical SegmentationMcdonalds offered their services ground on sure country basic 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 cus tomer base on age, religion and family life cycle. To offer the best service McDonalds still c at one timern about variations due to differing tastes and heathenish 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. matchless 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 give 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 ramble, after that within a minute it comes to your place with the food that still hot and fresh.V. Alternative merchandising StrategiesMcDonalds has seen recent success through a careful implementation of its Plan to Win dodge, which focus es on several(prenominal) key cases of the business, namely increasing traffic to restaurants, providing everyday value to customers, innovating the company through the creation of new carte items, re-imaging the companys look, as well as its selling campaigns.McDonalds Plan to Win is based on a core set of four main goals catch 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 second 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 extend in foot traffic at McDonalds franchises. McDonalds has addressed these conditions through an gain in announce, specially displaying the companys assistance toward a alter menu of low cost items. Such advertising serves to satisfy all four of goals of Plan to win program, drawing cust omer interest through a short display of the plethora of new menu options belatedly 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 sprightliness of value for customers to experience, McDonalds has released a standard value meal, where customers have the benefit of both low prices coupled with appendd freedom when deciding on a meal. While 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 few vegetables in the burger and also they provide some dess ert 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 important of keeping customers informed of the continuing changes to the company through advertising media and social media dialogues, McDonalds also understands 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 restaurant right away benefiting the companys goals of brand development for the company, McDonalds is reenergizing their brand through an brain 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 cautiously managed, McDonalds can use their brand identity to come their investments in advertising go much further.Beyond this, brand specialness and authority comprehend the process, representing the perceptions of McDonalds as the company appears to customers. Ideally, McDonalds should leverage brand specialness and authority to understandably stand out as a distinct and trustworthy sour ce 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 object lens remains to be children. So in order to attract them, McDonalds use a key tool the Happy Meals, which seem to arrest children due to the trifles included 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 easily 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 clown mascot, Ronald McDonald, who is essential for creating the bond with children and entertain 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 lambency 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 research out fresh lettuce and tomatoes, onions and pickles, quality buns and potatoes, pure ground beef, distinguish poultry and fish and firmsome dairy farm products. All of the beef, chicken and pork barrel 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 mug up 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% pure whole white fillets that are lightly breaded.Their exacting quality standards for fish thrash federal requirements. The ocean-fresh quality of Filet-O-Fish is a result of the process and ability to lug the fish at sea to maintain freshness.Vegetarian IngredientsVegetablesMcDonalds use impud ently 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 cut 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 balance diet because they contain a wide variety of essential nutrients such as protein, calcium, fat solubles, phosphorus, etc. McDonalds uses a special portmanteau word of pasteurized American cheese to complement the flavor of their sandwiches.BunsMcDonalds uses buns made from locally grown wheat flour. They are parched locally and delivered fresh, several times each week to McDonalds restaurants. grooming OilFood preparations are done in 100% neat 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 of the essence(p) element at McDonalds. Despite extensive and meticulous quality footrace at the suppliers end, all products are once again carefully scrutinized at the restaurant. Immaculate of quality allow for nothing but the best to take in customers tray.Their products are sourced from the highest quality ingredients, prepared hygienically and handle to regular quality checks such as the McDonalds Inspection course of study (QIP).Scope of Product LineDistribution (Place)Place, as an element of the marketing mix, is not just about the physical location or statistical distribution foreshadows 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 commonly 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 intensi ve distribution, 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 busy is advertising, Advertising is conducted on TV, radio, in cinema, online, using poster sites and in the stub out 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 collectable promotional device to encourage them to keep on buying the item.At McDonalds the prime focus is on targeting children. In happy meals too which are targeted at children small toys are presumption along with the meal. Apart from this, various schemes for winning prices by way of happy draws and also scratch cards are given when an order is situated 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 avoid late delivery.