case study of mcdo

8/9/2019 Case Study of Mcdo

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PART 1: TERMS OF SUMMARY

Today there are a lot of fast food chains all over the country that competed with

each other. Everyone has their own marketing strategy and everyone encounters

problem in operating their business. One of the top fast food chains in the country is

McDonalds.

McDonalds or usually called McDo has

been one of the top fast food chains in the

Philippines. Millions of people eat at McDonalds

every day. This fast food chain has many

competitors especially when it comes to the

choice of fast food for the children. McDonalds

was one of the top choices of Filipino children.

The first McDonalds was opened by

eorge T. !ang in Morayta university districts in

Manila during "#$". %n "#$"& McDonalds was the First olden 'rches in the Philippines

and in ())*& McDonald+s Philippines became a ")), Filipino-owned company. Today

there are more than )) branches of McDonalds nationwide and still counting. /ith0enneth 1. !ang now as the President and 2hief E3ecutive officer& McDonalds is now a

multi-billion peso company that continues to grow serving Filipinos all over the country.

Our group decided to conduct a case study about McDonalds. 's a student& it

already became a part of our routine to eat at McDonalds. ' week will not pass without

us eating at McDonalds and we usually eat at the Mendiola branch beside the 2entro

Escolar 4niversity. 5ased on those times we eat at McDonalds we have observed a lot

of things& about the crew& the food& the services and the operations. The McDonalds that

we have chosen is usually full of customers because it is near four schools6 1an 5eda

2ollege& 7a 2onsolacion 2ollege& 2ollege of the 8oly 1pirit and 2entro Escolar

4niversity. There are times that the service of the McDonalds crew is not really well

because there are times that they can+t focus because they have many customers.

9egarding their food& we couldn+t see much problems e3cept in times that there are

some complains on how they cook the food. 9egarding the environment and place of


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the fast food& the setting of the place is convenient especially to group of students which

consists a number of students in a group but there are times that it gets inconvenient

because the place gets overcrowded. There are a lot of observations that every

customer in McDonalds would get and with that each customer& everyone has their own

opinion. 's a student& as a customer of McDonalds we have observed that those things

that we usually observe is not the main problem of the company but it is when it comes

to choices of food and nutrition. 'lmost all of their foods are made of chicken and those

chickens are fried. /ithout us knowing& those foods are unhealthy because we+ll be able

to get to much cholesterol which is bad for our health but customers don+t think about

this because for them McDonalds was really good. %t has foods which will really satisfy

you with a very affordable price.

PART 2: METHODOLOGY/PROCEDURE

Company’s Market Situation


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%t is a well known fact McDonald+s was considered to be one of the most

successful fast food company worldwide. From its heart felting commercials& to its

promotions and combo meals& it attracted different customers despite of not being an

original Filipino fast food.

2ompetitors around

McDonald+s branch were

not a hindrance to gain their

customer+s heart and loyalty.

McDonald+s Philippines

has been operating in

an incredibly competitive market for over (* years. Domestic competition from the

leading local fast-food provider :ollibee and common international rival 0F2 have

created an environment in which McDonald+s must move swiftly and efficiently in order

to gain market share and increase profitability. %n order to e3pand effectively&

McDonald+s needs to better understand where there are market gaps that can be filled.

'dditionally& McDonald+s needs to have the most up to date data to determine if current

stores are cannibali;ing each other+s trade area. To achieve this McDonald+s

management will need detailed& segmented demographic data of the Philippines

overlaid with both theirs and competitors+ restaurant locations.

%n Mendiola branch along 7a 2onsolacion+s corner& the reaserchers have applied

the observation method to observe the everyday market trend of McDonald+s and have

come up with different factors being considered in McDonald+s market situation. These

are6


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(1) Customer Def!to!:

(2) Customer"s M#r$et se%me!ts

More often McDonald+s customers market group is compose of peers eating together&

students who en?oyed lunch together and families with their children.Rese#r&'ers '#e osere* t'e str#te%+ o! M&Do!#,*-s #!* 'o. t'e+ m#r$et

t'er ro*u&t .t' t'e *ffere!t t+es of &,e!ts t'#t t'e+ '#e0

Observation #1: employees are giving coupons of combo meals to student .

Observation #2: chicken bucket meals for party si;e and for families

Observation #3: different desserts and beverages being offered


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'nalysis6 McDonald+s are considering the income of their customers. 's per students&

since these groups of people are not yet working& they have arrived at different combo

meals that can get student+s attention. For party si;e and fun si;e& their prices are

cheaper compared to a restaurant. They have also considered their clients who are

called @the stressed-eatersA which can be also categori;e as students and workers by

offering different ice cream flavors and desserts as well as the @drinkersA type of

customers who loves different kind of beverages like coffee& floats& and soft drinks.

• Lfe &+&,e: McDonald+s has targeted children& youth singles and the young

urban families. %t is attracting the young urban families wanting to spend some

Buality time while their children have fun at the outlet.

•

A%e: Mostly youngsters and kids are target& so to attract children McDonaldshas 8appy Meal with which toys ranging from hot wheels to various /alt Disney

characters are given. 1ometimes it also provides special facilities like CPlay

Place+where children can play arcade games& air hockey& etc. Mostly target is

under age *-& "(-"*& "*-() and over.

• Ge!*er: McDonalds have segmented its services to males as well as females.

•

O&&u#to!: McDonalds has mostly segmented its market to the school andcollege going students.

= rowth market trend

McDonalds is one of the worlds top fast-food companies by sales&

having more than >(&*)) restaurants serving burgers and fries in

"" different countries. This chain is well-known for its 5ig Macs&

Guarter Pounders and 2hicken McHuggets. 'bout ), of the

McDonalds restaurants are run by franchisees or affiliates. IHew

!ork times 1Buare report

PART : SUMMARY OF F3D3GS


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Curre!t M#r$et Stu#to! (M#&ro 4 M&ro)

Macro-environment Situation

For us to know the Macro-environment 1ituation of McDonald+s there is a

PE1T7E


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Population& lifestyle trends& consumer attitudes and opinions& leisure time and

health consciousness have the main influence. The branch of McDonald+s in the

Mendiola& has small space and it doesn+t suit the population. 1ince it is placed at the

center of four or five schools& different lifestyles& attitudes and opinions will be the very

problem of McDonald+s. %t is very hard for a company to understand different

prospective.

Technological factors

McDonald+s makes a demand for their products. %t is through TJ or internet

advertising. McDonald+s is having difficulties in terms of getting the interest of the

younger population more. 1uch marketing strategy is obvious in advertising like the

toys in the meal offered. Other advertising operations employ popular celebrities to

promote their products. 5ut technology integration into operations of McDonald+s tends

to increase cost of their products.

Legal factors

The main concern here is the consumer rights and the healthy and safety law.

Making e3isting and potential customers knowledgeable about productsKservices&

consumer awareness creates more informed buying decisions. McDonalds would offer consumers the option to upgrade their already unhealthy meals to a even larger potion

known as super si;e. This ignored consumer rights because the establishment did not

warn customers that they would be consuming nearly half of there daily calories ?ust by

having fries.

Environmental factor

The firm wants to make its agricultural practices more environment-friendly. McDonalds

leans on key points6 the reduction of greenhouse gases emissions& conservation of

water resources& and preservation of the biodiversity and improvement of animal+s well-

being. These practices are able to reduce the environmental impact of agriculture and

breeding.

MCO5E36RO3ME3T


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Company

McDonalds or usually called McDo has been one of the top fast food chains in

the Philippines. was opened by eorge T. !ang. McDonalds is now a multi-billion peso

company that continues to grow serving Filipinos all over the country.

MARET

The recovery of McDonald+s after the global crises seems to be surprisingly fast

and the sales growth rate continues to increase. The one of the biggest fast food

restaurant in the world declared that it is still gaining market shares its rivals. The high

rate of unemployment does not influence the convincing people to spend money and

eat at McDonald+s. %t has suggested improved breakfast menu with the new frappedrinks. %t was the key success factor in recovering after the huge losses.

McDonald+s surprised everyone when it reported growth of .),worldwide while

the same store sales growth was appro3imately >.$,. The company is forecasting the

further growth of *-, worldwide. The first McDonalds in the Philippines opened in

"#$" in Morayta. Today& there are about >(* McDonalds branches all over the country.

Competitors

There are a lot of fast food restaurants in the Philippines like 0F2& /endy+s&

5urger 0ing and more but the best competitor of McDonald+s is :ollibee. 'll companies

worked hard to compete with each other from advertising to stores to service. %n the

food industry products or goods produced are similar. 'nd their goals is to get the

consumer loyalty brand.

S7OT A3ALYSS

Strengths

• The global presence of McDonald+s having branches in ""# countries helped

them to build a huge brand name in the food industry.

• McDonald+s has the largest fast food market share in the world.


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• 4se of innovative products to attract consumers like the toys they offer when you

buy happy meals.

• Efficient systemati;ation of its operation line that helps them to satisfy customers

demands..

• McDonald+s has low cost food yet the consumers can still have the satisfaction.• McDonald+s way of advertising there products is relevant to its consumer+s real

life that+s why many are being persuaded by there advertisements..

• Partnerships with best brands like 2oco 2ola and 8ein; 0etchup 2ompany is an

additional factor of having tasty food.

• 1trategic locations because they usually put McDonald+s branches in school area

and office area because it+s their usual customers..

!eaknesses

• Guality issues among the franchise networks. 1ome Mcdonalds branches cannot

attain the Buality of food products that is supposed to be pull out to the

customers.

• 4nhealthy food image because of too much fat that Mcdonalds product has.

• 8igh employee turnover rate

• Environmental issue like the use of 82F2 I (( to make polystyrene that is

contributing to o;one depletion.

• 7ack of food varieties because Mcdonalds products are more on chicken food.

"pportunities

• 5e environment friendly. 4se products that do not harm our environment.

• o for healthier food like offer some green salads& healthy dessert or use

products that do not contain too much fat.

• 2reate a wider food variety so that everyone can en?oy McDonald+s products.

Threats

• 2ontinuous growth of fast food restaurants in the Philippines

• 8ealth related issues

• Environment related issues.

• Due to the economic recession some people chooses to cook than to eat in

restaurants to save money.

• %ncrease in cost of raw materials that can affect their low cost pricing.

COMPETTOR A3ALYSS


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8Ps

9o,,ee FC M#!% !#s#,

;#&$%rou!

*

:ollibee is a Filipino

multinational chain

of fast food

restaurant& founded

by Tony Tan. %t has

(&*") stores

worldwide

0F2 is based in

7ouisville& 0entucky. 0F2

has more than ""&)))

restaurants worldwide. %t

started operating in the

Philippines in "#.

Edgar 1ia %%

founded

Mang%nasal in the

year ())>.

Mang%nasal has

already e3panded

to branches

nationwide.

Pro*u&t

:ollibee offers awide variety of food.

They offer different

combo meals of

fried chicken& they

offer different sulit

meals of beef and

shanghai and

desserts like ice

cream and other

side dishes.

0F2+s specialty is their friend chicken served in

different forms& it can be

spicy& buttered and the

original one. They also

offer burgers and

desserts like salads& ice

cream and other side

dishes. They also offer

combo meals and

familyK5ucket meals.

Mang %nasal isknown in their

grilled foods. They

also offer si;;ling

foods and desserts

like leche flan and

halo-halo. Mang

%nasal will not leave

you hungry with

their 4nlimited rice

offer.

Pr&e

:ollibee offer

different kinds of

combo meals. Their

rice meals starts

with Php># up to

Php"*).

0F2 has an average

priced meals. They 'lso

offer different kinds of

combo meals.

Mang%nasal offers

Paborito Meals&

1ulit Meals and

Merienda Meals

which ranges from

Php# up to

Php"().

P,#&e

:ollibee is usually

located in areas&

which are

surrounded by many

outgoers. They offer

home deliveries and

Drive thru.

0F2 is usually located in

office and school areas&

they also has branches in

almost every Malls in the

Philippines. They offer

home delivery.

Mang %nasal is

usually located in

urban areas. They

offer home

deliveries.


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Promoto!

:ollibee use

celebrities to

endorse their brand

in TJ and online

advertisements.

They also offer

advantage card that

earns points.

0F2 offer various formsof incentives whenbuying bucket meals.They also use TJ

'dvertisements and

online advertisements.

Mang%nasal use

celebrities to

endorse their brand

in TJ

advertisements and

online

advertisements.

Re&omme!*#to!s #!* Co!&,uso!s:

M#


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1tep "6 5rainstorming of what food and ingredients can be a substitute to come

up with a healthy menu. E3ample6

Dessert #!* ;eer#%es: Lo.5F#t M,$ #!* *#r+ ro*u&ts

F#t free C'o&o,#te M,$/ Lo. f#t .'te m,$ t'#! soft *r!$s:

Yo%urt &e &re#m !ste#* of &ommo! #!,,# &e &re#m:


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Us#%e of 6e%et#,es

Pro*u&e s#,#* oto!s :

3#tur#, ot#toes for fres

Prote!

P#tt+ .'e#t re#* :

Chicken wrap up with vegetables as subtitute for McChicken sandwhich


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Ste 26 'fter brainstorming will be the consultation of the food to the food

Hutritionist and food technologist for the approval of the said menu.

Ste6

1urvey of people in social networking sites like Facebook and their own website

to know which type of menu does the consumers would prefer. Through this

action& the customers of McDo will be aware McDo+s new market segmentation

about offering something new in their market.

%t would gain the attention of their customers plus they would know if these

nutrition foods will be accepted by their consumers and will be saleable ?ust like

their normal menus.


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(.

E3pansion& cleanliness and better and more improve service6

Every customer is always aiming for a better service. 's what observed in

Mendiola McDonald+s there are things that are needed to be improve around the

four corners of Mcdo. These are6

• E3pansion of Mcdonald+s space is highly recommended. 1ince it is

surrounded by * different schools& space in the said branch tends to be so

narrow since a lot of customers are coming in. 1mall space of McDonald+s

is probably one of the causes also of the hot temperature around the

campus.

• 5etter security around Mcdonald+s. %t is observed that around Mendiola

are street children coming and go inside the Mcdonald+s and ask for left

overfoods and moneys. %t is not bad to help& helping is indeed an option.

5ut at times children who were coming and go are doing it at disrespectful

manner that can lessen customer+s food interest.

• 'dditional staff and employees. 1ince the Mendiola branch is a busy one&

students tend to come and go that could probably leave the place untidy

as what the researchers has been observed. 'dditional employees that


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would automatically clean up the tables and serve the food waited by the

others would result to better performance

2onclusions6

McDonalds is one of the largest fast food companies in the world. They continue

their path for success by keeping their consumers in mind regarding their product

selection as well as their prices. They encourage their employees to do a good ?ob&

usually promotes from within& and offers several scholarships to encourage education.

Though McDonalds is a centrali;ed& Lwait and seeL company they find ways to use

technological products that will increase their productivity& service& and sales&

everywhere. McDonalds will certainly be around for plenty more years to come.

McDonald+s has a very big part to us especially teenagers and youngsters

case study of mcdo

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