Overview McDonald's Corporation is the world's largest chain of hamburger fast food restaurants, serving more than 58 million

customers daily. In addition to its signature restaurant chain, McDonalds Corporation held a minority interest in Pret A Manger until 2008, was a major investor in the Chipotle Mexican Grill until 2006, and owned the restaurant chain Boston Market until 2007. A McDonald's restaurant is operated by either a franchisee, an affiliate, or the corporation itself. The corporation's revenues come from the rent, royalties and fees paid by the franchisees, as well as sales in company-operated restaurants. McDonald's revenues grew 27% over the three years ending in 2007 to $22.8 billion, and 9% growth in operating income to $3.9 billion.McDonald's primarily sells hamburgers, cheeseburgers, chicken products, french fries, breakfast items, soft drinks, shakes, and desserts. In response to obesity trends in Western nations and in the face of criticism over the healthiness of its products, the company has modified its menu to include alternatives considered healthier such as salads, wraps and fruit. McDonald's distribution channel and the way in which this fast-food restaurant chain gets its products to the market. In the theory of the Marketing Mix, place (distribution) determines where the product will be sold and how it will get there. In fact, as noted on www.mcdonalds.com, McDonald's is the leading global foodservice retailer, with more than 30,000 local restaurants serving nearly 46 million people each day in 121 different countries. Approximately 80 percent of all McDonald's restaurants company wants to be the first in the market and establish the brand as rapidly as possible by advertising very heavily. This effective distribution strategy (place) has helped McDonald's develop a strong market share in the fast-food market around the world. Moreover, according to Kotler stores must have a planned atmosphere that suits the target market and moves customers to buy. In addition, McDonald's has pre-determined the locations for many of its stores to help reach a variety and diverse population. Conclusion. In conclusion, McDonald's has an intensive distribution process which is a credit to their Marketing department. As businesses and other organizations move forward, the challenge of making their products The McDonalds executive claimed that it was about being part of Disney and their theme parks, their movies and their characters because now you can buy a Happy Meal at the Happiest Place on Earth. There are multiple places in Disney World to buy a Happy Meal or more so to buy McDonalds products. A McDonalds kiosk can be found in between Frontierland and Adventureland and restaurants in Downtown Disney and next to the Disney All-Star Resorts. Not only can you find these restaurants, they are also a few of the best McDonalds. The kiosk in the Magic Kingdom is decorated as a Conestoga wagon depicting the theme of Frontierland. The McDonalds in Downtown Disney is huge and offers children a great place to play as does the one next to the All-Star Resort. Although Disney offers a wide range of restaurants and food, visitors flock to the McDonalds because they know their children love the food, the price is right, the quality of food is good and it gives their children a place to play during the meal. This delivery channel was ingenious on McDonalds part; they recognized all they had to gain by joining in a partnership with the Disney Corporation.

Expansion Rationale

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The diagram above illustrate the new distribution channel design which had been expanded from simple distribution channel of Mcdonald at Kuala Terengganu . A simple distribution channel of Mcdonald is start from one manufacturer to three retailer and a group of limited customers. According to Kuala Terengganu City Council, there have stated that Kuala Terengganu has a population of 286,317. From the total number population at Kuala Terengganu, there are 65% is occupied by household. But the food that sell by Mcdonald is limited, thus it cannot fulfill the customer desired needs. From this problem, we create a new strategy and design a new distribution channel for Mcdonald.

Channel Design Strategy The most important objective for any distribution channel is to make the product conveniently available for customers who want to buy it. For consumer goods, two aspects of availability must be considered. The first is to attain the desired level of coverage in terms of appropriate retail outlets. Because retailers differ in their sales volume, manufacturers need to weight the relative importance of each retailer on the basis of its percent of sales within the product category in question. The appropriate degree of availability varies with the characteristics of the product and the target customers, particularly the products importance to those customers and the amount of time and effort they will expend to obtain it. For example, consumer convenience goods, such as packaged foods and health products, demand immediate availability since most customers are unwilling to devote much effort to obtaining a particular brand. In our new distribution channel design, we add few more retailers into it. Since Mcdonald never introduce family package meal for customers, so introduce family package meal to customer is our channel design strategy. We introduce two family package meal for example Family Meal Set A : Spicy MacChicken + MacChicken + Happy Meals with the price which have relatively cheaper than order separately. Family Meal Set B : Fillet-O- fish +Premium McWrap Sweet Chilli Chicken + Happy Meal. The target market of our channel design strategy is focus on household. With this strategy, family package meal will become their preferable choice.

Possible Limitation of Channel Design Market and competitive factors also influence a firms ability to achieve a desired level of availability for its product. When demand is limited or when the brand holds a small relative share of the total market, wholesalers or retailers willing to carry it may be difficult to find. The firm may have to offer extra incentives and inducements to achieve an adequate level of product availability. On the other hand, a brands strong competitive position makes it easier to attain extensive retail coverage and shelf space. A second limitation of channel strategy is to achieve and maintain some target level of satisfaction in meeting the service requirements of target customers. This tends to be a particularly crucial objective for analyzer and defender businesses attempting to differentiate themselves from competitors on one or more service dimensions. Some service requirements that might be targeted for consumers, industrial end users, or other members of the distribution channel (e.g., the firms intermediate customers such as distributors or retailers) include: 1. Order cycle time, which refers to how long it takes the manufacturer to receive, process, and deliver an order. 2. Dependability, which relates to the consistency/reliability of delivery. This is probably the most important element of distribution service, especially for those using just-in-time delivery systems. 3. Communication between buyer and seller, which enables both parties to resolve problems at an early stage. 4. Convenience, meaning that the system is sufficiently flexible to accommodate the special needs of different customers. 5. Postsale services, which help the customer attain full benefits over the life of the product. Such service might include installation, user training, help lines to resolve technical glitches, repair, and spare parts availability. Such services can be particularly important in the distribution of consumer durable goods and technically complex industrial products, such as computer systems, major software applications, manufacturing machinery, and the like. Monitoring customer complaints, and the ongoing measurement of customer (or channel member) satisfaction, retention, and loyalty levels are all appropriate measures of whether the firm is meeting its customer service targets. Monitoring customer complaints can also provide useful guidance for improving a firms product and service quality levels in the future.

Conclusion Well-entrenched channels where the members have long-standing commitments or substantial mutual investments can be hard to change in response to shifting market or competitive conditions. Consequently, Mcdonald pursuing prospector strategies in new or rapidly growing or technically turbulent product categories, consider channel flexibility an important goal. A flexible channel is one where it is relatively easy to switch channel structures or add new types of middlemen without generating costly economic or legal conflicts with existing channel members. We add retailers into our distribution channel design because nowadays retailer play a major role in the distribution channel. Retailers sell goods and services directly to final consumers for their personal, nonbusiness use. Because retailers usually take title to the goods they carry, their compensation is the margin between what they pay for the merchandise and the prices they charge their customers. Retailing is a major industry in the world.