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RUNNING HEAD: FINAL PROJECT

FINAL PROJECT

Principles of Marketing

Product: McDonald’s Fries

Submitted By:

Duaa Asjad

Zainab Nadeem

Salman Khan Niazi

Hamza Ahmed

Saad Shams

Aryan Chaudhary

Submitted to:

Mrs. Naureen Shehzad

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Table of Contents

Executive summary 3

Current Marketing Situation 3

Market Description 5

Product Review 11

Competitive review 11

Channels and logistics Review 13

SWOT Analysis 14

Objectives and Issues 19

Marketing Strategy 20

Action Program 27

Budget 27

Controls 28

Goals 28

Refrences 32
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Executive Summary

McDonalds is one of the leading brands in market of fast food with a number of competitors. It

targets various segments including demographic, geographic and psychological. McDonalds has

various restaurants in 120 countries. It started in California and is reaching the heights of success

today. It provides convenience products to its customers and has an effective pricing strategy.

People belonging from all age groups love Mcdonalds and their fries are known as “America’s

favorite fries”. McDonalds is maintaining their revenue in a great way and aims to be more

profitable in future. McDonalds aims to serve high quality food in a friendly environment and

create perfect customer relationship management.

Current Marketing Situation

McDonalds is an American multinational company that deals in fast food. Having, 37,241

restaurants around the world, McDonald’s fries qualify to be one of the best sellers of the

company. Richard and Maurice McDonald commenced this fast food chain in 1940. Today,

McDonald fries are known worldwide for their exceptional taste and quality. McDonalds has

enhanced this product by introducing a variety of fries including loaded fries that come with

various flavors including BBQ, Cheese and Jalapenos, lemon chili and garlic mayo. McDonalds

serves its fries in different quantities depending on the size ordered (small, medium or large).

McDonalds fries have won the hearts of customers in Singapore by providing calorie free fries

fried in 100% pure vegetable oil. McDonalds has made $28.11 billion according to statistics held

in California in 2013 and French fries offered by mcdonalds play a vital role in this success.
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McDonalds keep introducing new features every year to enhance the revenue and maintain

profitable customer relationships.

McDonalds fries are experiencing tremendous growth and has reached the point of maturity.

McDonalds fries come with a variety of benefits some of which include:

 Environmental friendly packing

 Quality ingredients

 Responsible sourcing strategy

 Long term economic viability

 Allergen information provided

 They are suitable for food sensitive people too

Currently, McDonalds fries are one of the most loved product offered at McDonalds and they are

also known as “America’s favorite fries”. McDonalds is introducing a variety of features in their

fries now and that in adding to the value of product and increasing the revenues immensely.

People belonging from all age groups have a thing for McDonalds fries and that is one of the

biggest strength of McDonalds fries.

McDonalds has a tough competition in Market when it comes to its fries. There are a number of

competitors that are a threat for fries offered at McDonalds. Some of these competitors include:

 Curly fries from Hardees

 OPTP fries

 KFC fries
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Hardees now offers curly fries which are loved by the customers but still, McDonalds fries take

the lead when it comes to the sales. No doubt McDonalds has competitors but it has its own

position in the market that is irreplaceable. OPTP is also a great threat as they deal mainly in

fries.

Market Description

The restaurant market deals in various well-known brands dealing with fast food. A few

examples are KFC, Burger King, Hardees, and Subway. Each firm is making its own profit and

have a healthy competition with each other. McDonalds made its name in 90’s and is reaching

the heights of success today. McDonalds provides a variety of products to its customers

including hamburgers, fries, nuggets, desserts and many more. Fries are a vital product of

McDonalds that complement with almost every product offered at McDonalds. The fries come

out in various sizes and variety and flavors.

The Customers are delighted when they visit McDonalds. People love to eat fries and at

McDonalds, the complaints and complements are taking into consideration on a serious note. If a

customer complaints about fries being too salty or have quantity issues, the they are provided

with complementary extra fries on spot so they have a healthy customer relation management.

The nutritional value chart is already provided to the health conscious customers. The customers

can buy the product at their convenience from drive thru and they also offer free home delivery.

The fries are packed and placed in such a way that the quantity is enough for a person and

customers don’t have the issue of quantity or quality when it comes to fries. McDonalds does not

deceive its customers through their packaging. The paper used for packing in recycled and

environmental friendly. The packets are designed in such an attractive way that customers are
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never left disappointed from McDonalds and their cravings are satisfied in a healthy and friendly

way. The employees at McDonalds are very friendly and cooperative too.

Market Segmentation:

Segmentation means to divide a market into distinct groups of buyers who have different needs,

characteristics or behaviors and who might require separate products or marketing programs. As

the market consist of many types of customers, needs and products so it is important for the

market to determine which segments offer the best opportunities and which segments can be

beneficial for the market to serve. Segmentation is done to meet the needs of different types of

consumers, and the consumers can be grouped in various ways based on the:

 Psychographic

 Demographic

 geographic

 behavioral factors.

Sometimes there is a similarity between the customers and they response in the same way to a

particular product or thing and for that reason, not all ways of segmenting a market are equally

useful. For example, in a car market there can be a group of consumers who want the biggest and

most comfortable car, regardless of price make up one whole market segment and the other

market segment can be the group of buyers who do care for price and operating economy. And, it

might be difficult for the car companies to make one car that serves best both the market
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segments, and which becomes first choice of consumers in both the segments.

Geographic segmentation:

Geographic segmentation means to divide the market into different geographic units, such as

nations, states, regions, countries, cities or even neighborhoods. Geographic differences are

given due importance to focus on consumer needs and wants and to serve the consumers what

they want from the market and to create customer delight.

McDonald’s geographic segmentation:

There are several outlets by McDonald’s all across the globe and they try to do best to serve all

the geographic segmentation by having the dine-in facility as well as drive thru facility and there

are rarely any complaints about their outlets regarding the service

Demographic segmentation:

It involves dividing the market into the segments that are based on age, size, population, gender,

income, education, religion, ethnicity, life cycle stage and education.

McDonald’s Family structure focus:

Families can take drive thru service as well as if they are on outing and after they have enjoyed

their trip, they can enjoy their take away service and similarly there are certain family deals

keeping in mind children also, so they might put nuggets in those deals for children to enjoy.

Income based segmentation by McDonald’s:

They do focus on income level segmentation by offering certain deals by keeping in mind social
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class of the people. Low income class people can also think of enjoy a meal at McDonald’s

because special deals are offered by McDonalds such as shared box deal which is of 2 to 3

different prices, so customer can have a deal which best suits to their interest.

Age based segmenting:

Mcdonald´s do age base segmentation also. For example, they have happy meal for children

which contain toys also, so that kids which come along with their parents can enjoy their time at

McDonald’s and there is play area also, so parents can enjoy their meal while children can enjoy

playing in the playing area.

Occupation Based:

Mcdonald’s offer various students deal as students mostly go to Mcdonald’s to have lunch and

relax them from the hectic routine of their study

Psychographic segmentation:

Segmenting the market based on attitudes, beliefs and opinions

They also focus on Psychographic segmentation by considering different values for serving. For

example, in India McDonald’s serve vegetarian class by making vegge burgers and in Pakistan

Chapli kabab burgers are sold by McDonald’s and it can also be referring to as cultural or

religious segmentation.

Behavioral segmentation:

Segmenting the market on the basis of occasions, benefit sought, user status and usage rate
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For example, Mcdonald´s do behavioral segmentation by giving the facility of birthday parties

especially for children. And benefit sought can be of time efficiency that they place orders

timely. And segmentation is doe for potential and fast food eaters (user status).

Evaluating the market segments:

After the segmenting has done, it is necessary to evaluate the segment to check certain factors as

Market Potential:

A market can evaluate the market potential of the segment by looking at the number of potential

customers in the segment; their income and the number of people in the segment who need the

kind of product which the market is going to offer. A market participant is one who is going to

buy such a product, so a market participant has to need the product; have the ability to pay the

price of the product and has to want to buy that particular product. For example if a Mcdonald´s

want to launch a new product they must look at the market potential.

Sales Potential:

Sales potential is the share of the potential market of a particular segment that the company

expects to achieve if that segment is targeted. Company can estimate company's share

based on

the performance in other markets. The result of this evaluation gives company an idea of how
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valuable each segment is to the company.

Competition:

A key factor that should be consider in the evaluation of each segment is the competitive

situation. If the total sales of existing suppliers are below the market potential, then you can

achieve sales without taking the business away from competitors. If the sales of company´s

competitors are close to the market potential, then any sale a company make will result in the

fewer sales for them. This means company will have to lower its prices or spend more money on

promotion to achieve sales potential, and it makes the segment less valuable for the company.

Cost:

Some markets cost a lot of money to service and doing this affects the value of the segment. If a

company has to physically deliver large items over long distances; the freight costs will be high

and resulting prices may put the product out of the reach of the customers income range. If the

cost of promotional campaign; a company think is required to introduce to their product to a

particular segment is high in relation to the expected sales; then the value of the segment is low.

These evaluations identify the segments which can be the most valuable for the company.
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After segmentation and evaluation is done, the next step is to decide which segment or segments

to target

Product Review
McDonalds fries – also known as “America’s favorite fries” also have the following features:

 All Natural – No artificial food coloring or preservatives are used in making McDonalds

fries.

 Hygienic ingredients – The potatoes and other ingredients used in making of fries are

hygienic and safe.

 Allergen free – McDonalds fries are allergen free, only people allergic to soy beans

might get a reaction from these fries though.

 No Food Sensitivity – McDonalds fries are safe for food sensitive people

 Vegetable oil used for frying – 100% pure vegetable oil is used for frying the fries and

no extra fat or preservative is added.

 Nutritional Value – Proper nutrition chart for McDonalds fries is available and they are

high in Vitamin C.

 Environmental Friendly – Fries offered at McDonalds are cooked in environmental

friendly conditions.

 Recycled Packaging – Being environmental friendly, the packaging used for the fries and

all other products at McDonalds is recycled.

 Availability of Sizes – McDonalds fries come in different sizes including small, medium

and large.
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Competitive Review

McDonalds entered the phase of tough competition in early 2000’s when various other brands

like Burger King, Hardees and others came into existence. McDonalds had always had a healthy

competition with KFC nut when it comes to its fries, the competition is so immense now and

McDonalds has to maintain its quality to firmly hold its grip on the market.

Following is a detailed analysis of how the competitors are competing with McDonalds:

Sub Way: Sub way targets the diet conscious segment of people and provides them with healthy

and low calorie breads for their sandwiches and has made a name in industry. Sub way is also

doing a good job when it comes to desserts as Sub way cookies are loved by people. McDonalds

has healthy competition with Sub Way and takes the lead in Sales as McDonalds also offers Mc

Arabia for diet conscious people and McDonalds has flavor that makes people crave for

McDonalds.

KFC: KFC has always been the main competitor of McDonalds. KFC offers its products in

relatively cheap prices and has a variety of hamburgers like zinger, mighty zinger, etc. When it

comes to fries, KFC does not have the taste and quality that exists in McDonald’s fries and now,

KFC’s quality is reported to deteriorate and consumers are preferring other fast food chains over

KFC. So, McDonalds takes the lead over KFC as well.

OPTP: OPTP mainly deals in fries and offer a variety of fries for its customers. They have also

introduced a product line of hamburgers and when it comes to fries, OPTP has a name in market.

McDonalds has a lead over OPTP in the market but when it comes to fries, McDonalds has a

tough competition with OPTP has fries are a snack option at McDonalds and the main product at

OPTP.
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Hardees: Hardees commenced its business a few years ago and made profits. For now, hardees

cannot beat McDonalds in any field really because McDonalds has a name since 90’s. Although,

the curly fries offered at hardees have become a competitor for mcdonalds as they have attained

customer retention and loyalty on a large scale and people love to satisfy their hunger by

consuming hardees curly fries and their onion rings are liked by people too. They have also made

it easier for people to buy food by serving them and allowing them to order while sitting in their

car. But, McDonalds still has a lead over hardees whether it’s about fries or other meals.

Burger King: Burger king is also a main competitor for McDonalds. They got into a main

competition when burger King introduced their advertisement that had the slogan “Why eat with

the clown when you can dine with the King?” and it was a main tantrum thrown at McDonalds

by burger king. But burger king was alleged of using unhealthy ingredients and lost the customer

retention to some point after they admitted that they were using horse meat in some of their

products. McDonalds beats burger king by having no cases about unhealthy conditions and

always making its customers happy by providing them with healthy food.

Channels and Logistics Review

McDonalds has its own restaurants in 120 countries. After making progress by leaps and bounds,

McDonalds is able to defeat its competitors by satisfying their customers by providing them their

products through following Channels:

 Restaurants: McDonalds operate 36,899 restaurants worldwide and serves 68 million

customers on a daily basis.

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 Drive Thru: McDonalds also offers the service of drive thru, customers who are in a

hurry and cannot dine in can buy their products from drive thru while sitting in their cars

and placing and receiving orders.

 Free Home Delivery: McDonalds provides free home delivery to its customers whenever

needed. All the customers have to do it dial their hotline that is 11-12-44-622.

Strengths, Weaknesses, Opportunities and Threats Analysis

Strengths:

1) Second largest restaurant network in the world:

Mc Donald’s is the second largest restaurant network in the world. It’s 37,200 restaurants are

serving customers in more than 120 countries.

locations
subway 43772
McDonalds 37241
Starbucks 27339
https://www.strategicmanagementinsight.com/swot-analyses/mcdonalds-swot-analysis.html

2) Strong brand value:

Mc Donald’s is ranked first among the top 10 most valuable fast food brands worlds wide in

2018 with a brand value of about 126.04 billion US dollars.

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https://www.statista.com/statistics/273057/value-of-the-most-valuable-fast-food-brands-

worldwide/

3) Large market share

Mc Donald’s has a large customer market and it occupies 19% of the market share. Mc Donald’s

fries are extremely popular and about 9 million pounds of fries are sold every day around the

globe

4) Trained managers

Special training is provided to the employees at the Hamburg University. Employees are

provided with 32 hours of training during their first month of employment. More than 80,000

employees have already graduated from this faculty.

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5) Innovations in technology:

Mc Donald’s is working on bringing in new technologies. Recently McDonalds introduced its

online app where customers can order their meals at promotional and discounted price. New

automated touch screen cashiers are introduced.

6) New production:

Mc Donald’s is considered the first to enter the fast food industry and the company continuously

introduce new products in its product line.

7) Good marketing strategies:

Mc Donald’s restaurants operate successfully around the globe because they adapt to the

requirements of local market. For example Mc Donald’s offer lamb burger instead of beef and

pork burger in India.

8) Market power over suppliers and competitors:

Mc Donald’s has a strong position around the world; hence the company can influence the

suppliers and convince them to provide supplies at lower price.

9) Good selection of locations:

Mc Donald’s has franchisees in airports, cities, tourists and theme parks.

Weaknesses:

1) Unhealthy food image: Mc Donald’s offer meals with more calories than nutrients,

hence resulting in more obesity.

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2) Many competitors: There are so many firms that compete with Mc Donald’s directly

like Burger king, Kfc and Hardees. These companies introduce better quality fries and

Mc Donald’s lose its customers.

3) Not competing in the pizza industry: Mc Donald’s tried to enter the pizza industry but

failed hence it’s not competing with the fast food pizza chains yet.

4) High employee turnover rate: Due to high work load and less salaries, many employees

quit. Training new employees require more time and budget.

5) Adverse affect on environment: Mc Donald’s use of HCFC-22 to make polystyrene

contributes to ozone depletion.

6) Legal issues: Mc Donald’s face many legal issues, mostly related to trade mark.

Opportunities:

1) Growing fast food industry: People enjoy fast food and the fast food market is enlarging

around the globe. Mc Donald’s can benefit from this opportunity and increase its

revenue.

2) Attractive deals: Mc Donald’s should offer discounted meals in order to increase sales

and target more customers.

3) Organic products with detailed nutrition chart: Organic products should be used.

This will attract the health conscious people and will improve the unhealthy food image

of Mc Donald’s.

4) Introduction of new products: Mc Donald’s should expand its product line by

introducing more and better quality products. More variation in fries will attract more

fries lovers
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5) Better quality of oil: This will improve the quality of products.

6) Expansion in developing countries: Mc Donald’s should discover the undiscovered

parts of the world and expend more.

Threats:

1) Fries are unhealthy: Deep fried french-fries are high in calories and create obesity.

People are more health conscious now and they avoid Mc Donald’s high calorie meals.

2) Aggressive competition: Mc Donald’s face direct completion from a number of fast food

companies like KFC, burger king and Hardees.

3) Economic recession: Economic crisis in the international market can adversely affect the

sales and revenue of the company.

https://www.statista.com/statistics/273057/value-of-the-most-valuable-fast-food-brands-

worldwide/

https://toughnickel.com/industries/McDonalds-SWOT-analysis-and-recommendations

https://www.ukessays.com/essays/marketing/innovation-and-technology-strategies-of-

mcdonalds-marketing-essay.php

Objectives and Issues

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McDonalds has always been concerned about their image in the market and to maintain that

image McDonalds has set the following objectives and is facing the following issues:

Objectives:

McDonalds has the following Objectives:

 New Strategies: McDonalds always comes up with new, innovative and creative

strategies to keep its customers attracted to the brand and maintain the brand name.

 Fresh Food and Simplicity: McDonalds aims for fresh quality food in a simple yet

irreplaceable way. All the ingredients used at McDonalds are fresh and hygienic.

 Socially Responsible: McDonalds aims to provide greater value to its customers in a

friendly environment and being socially responsible to provide good return to its share

holders.

Issues:

McDonalds is facing the following issues:

 Increasing number of competitors: The number of competitors are increasing

immensely for McDonalds as fast food chains are making a huge name in the industry

and people are interested in every new brand launched in the market.

 Disrupting eating habits: McDonalds deals in fast food but people are inclining more

towards their health these days and are becoming health conscious, this issue can

affect the revenue of McDonalds to a great extent.

 Price Sensitivity: McDonalds is price sensitive. It offers deals and tries to make its

products cheap but everyone cannot afford to eat mcdonalds every other day

especially in Asian countries.

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Marketing Strategy

Marketing Mix:

Marketing Mix is referred as a foundation model that provides us with the information about

4P’s (Place, Product, Promotion, Price) of a company. It is professionally defined as “a set of

tools that a company uses to pursue its marketing objectives in target” (2011 October)

www.wikipedia.com .

Marketing Mix deals with:

 Product

 Place

 Promotions

 Price
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Now, we will assess these 4P’s from the perspective of McDonalds.

Product

Product is anything consumable made for use by the customers. Every product has a specific life

cycle and the lifecycle of a product can be showed by the following graph:

McDonalds is currently at the Maturity point where sales are on peak and company is making

decent profits too. Currently, McDonalds is offering the following products:

 Burgers

 Fries

 Snacks

 Breakfast

 Desserts and Shakes

 Mc Café

 Chicken and Fish

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 Beverages

If we talk about our selected product that is McDonalds fries, McDonalds has maintained a

strong grip on customer retention by maintaining the taste of their fries and differentiating

their fries from the fries offered by their competitors in a way that makes McDonalds fries

the favorite fries of world as McDonalds fries are loved by people all around the world and

have a respectable position in the market.

Product attributes:

McDonald’s fries has the following attributes:

 Quality

 Features

 Style and design

Quality:

McDonald’s fries are known for their perfect quality. McDonalds ensures us that the

product being provided is hygienic as you can even have a kitchen tour at McDonalds

and McDonalds is providing 100% halal products in Islamic countries that preserves the

cultural and sentimental values of customers. The quality of McDonalds fries is

undeniably really good as they have a bundle of people around the globe who prefer

McDonald’s fries over the fries offered by competitors. The quality of McDonalds fries

can be assessed by the nutritional value of the fries. The fries are fried in clean oil under

hygienic environment. People trust the quality provided by McDonalds due to no cases of

McDonalds being unhealthy. The ingredients being used are taken from the finest places
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that export/offer the required ingredient. The quality of food provided by McDonalds is

one of the main reason McDonalds is so profitable now and most people prefer

McDonalds over other firms. Following is the nutrition value provided by a medium

sized pack of fries at McDonalds:

(www.fooducate.com )

Features:

A product can be offered by varying features. The main feature of fries from McDonalds is

the taste as they has crunchy yet soft fries with a different kind of salt that enhances the

flavor making the taste a major feature of fries. In Pakistan, McDonalds now offer different

kinds of fries including different features. The loaded fries at McDonalds provide the

customers with following different features:

 BBQ flavor

 Nacho Cheese with Jalapenos flavor

 Lemon Chili flavor

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 Garlic Mayo flavor

Due to various features introduced in McDonalds fries, McDonalds holds a firm grip

in the market.

Style and Design:

When it comes to customer value, Style and design play a vital role. McDonalds use a

simple yet attractive style when it comes to their fries. The design of packaging and

the style of dressing on fries make the customers crave for more. McDonalds design

its products in a fun way that says a lot about its slogan “I’m lovin’ it”

Product Category:

We categorize McDonald’s fries as a convenience product. As their fries are

relatively inexpensive, people prefer McDonald’s fries but also accept substitutes.

And they are easily available to the customers.

Place

McDonalds is a famous multinational company having it’s outlets in majority

countries. McDonald’s fries and other products are easily available for people when

they need them. The most prominent places are where the company’s products are

distributed in a large number. Following channels are used by McDonalds to sell its

products through:

 Outlets

 Kiosks

 Mobile app
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The service of kiosks is now offered in Pakistan as well to make it convenient for the

customers to select and buy the products. This supports the vision and mission of

McDonalds too.

Promotion

Promotion deals with how you promote your product and make people aware of the

existence of your company and attract the customers towards you. McDonalds uses the

following tactics when it comes to promoting its products:

 Advertisements

 Bill Boards

 Sales promotion

 Public relations

 Direct Marketing

McDonalds promoted its new loaded fries by making innovative print ads and allowing

customers free testing of the fries that made the customers try the product and buy it in future.

Advertisements are most noticeable when it comes to McDonalds as they introduce different

advertisements according to occasions most of the times. When it comes about McDonalds fries,

we have a number of print ads that added to the revenue of McDonalds simply by attracting the

customers towards the fries. There Halloween fries print ads of McDonalds were loved by the

people according to a survey.

Price

To maximize sales profits and sales revenue, pricing strategies are set by companies. When
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Comes to McDonalds, the prices offered are neither too high nor too low. Following Pricing

Strategies are followed by McDonalds:

 Bundle Pricing Strategy

 Psychological pricing strategy

Bundle pricing strategy:

In bundle pricing strategy, McDonalds offers a combination of different products in a

discounted price so it is convenient for customers to gain more satisfaction and spend less

money. A few examples of bundle pricing strategy are:

 Happy meal

 Share box

Psychological Pricing Strategy:

Psychological Pricing Strategy includes setting the prices in such a way that makes the customers

think that the products are more affordable. McDonalds uses psychological pricing strategy in

the following way for its fries:

 The price of large fries is $1.89

This makes the customer think that they are paying a lower amount whereas, they are almost

paying $2 for their large fries. In Pakistan, McDonalds offers a student package that offers

students fries and drink in just Rs.200/- so that adds to their marketing strategy as well.
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Action Programs

McDonalds has to maintain its name in the market, to maintain its brand name, McDonalds has

the following action plan to be achieved:

 To make more sales and revenue through existing restaurants.

 Be more environmental friendly.

 Attract more customers.

 Convince existing customers to visit more often.

 Create enduring profit growth.

 Build customer loyalty.

 Filter menu changes.

 Introduce new products.

Budgets

McDonalds spends mostly on advertising. The budget estimated for advertisement in 2017

was $532.9 million. McDonalds earns millions on a daily basis but refuses to give out its

actual budget online or through any sources. But we can assume on thing for sure that

McDonalds has a huge Budget and is maintaining its brand name by spending wisely.

Controls

McDonalds is looking forward to implement and maintain the following goals:

 Audit effectively.

 Create brand awareness.

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 Maintain Customer retention.

 Be environmental friendly.

 Solve customer complaints as soon as possible.

 Maintain and increase profits of company.

Goals

McDonald’s and their Goals:

McDonald’s target five things in their goals and objectives and those five things cover up

their

all departments, which are of serving good food, keeping the environment as best as possible

and

creating value. The elements which they target are following:

 Food

 Sourcing

 Planet

 People

 Community

Short Term Goals:

 Their goals regarding food is that they will be serving more hygiene and healthy food
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by using more of fruits, vegetables and low fat dairy or whole gains. This will be first

implemented in nine of their major markets including Australia, Brazil, Canada,

China, France, Germany, Japan, the U.K. and the U.S. one of their another goal

regarding food is to reduce the amount of salt and sugar plus the saturated fat and

calories across the menu by 2020 and that’s too in the above mentioned top nine

markets.

 McDonald’s also have plans for sourcing and here the company wants to have 100%

of their coffee, fish and palm oil verified as sustainable production and it will be

completely of fiber based packaging from certified or recycled sources.

 McDonald’s want to lead development of global principles and criteria in sustainable

production of beef with plans to develop goals and purchasing of verified and

sustainable beef to serve the best.

 McDonald’s have set goals to serve planet as well in good means, they have targeted

20% increase in energy efficiency of company owned restaurants in seven out of their

top nine markets excluding brazil and japan. They will also increase energy efficiency

by restaurants standards in their top nine markets with 50% recycling as well as

minimizing their wastes.

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 To serve people in best possible way the company also have plans for this, all the

hygiene and healthy food work is done to benefit people and they will be coming up

with more technologies to ease up things for their customers such as installing kiosks

and smartphones app and serving 24\7.

Long Term Goals:

McDonald’s faced a lot of critique regarding their food not been hygienic, they

now planned their strategies and goals in a way to overcome those critiques. One

of the way they planned was to improve their reputation in the industry. Now they

want to be a company which is aware of growing societal issues of obesity.

They have done amendments in their management relationships goals as well.

Now they want to promote their new initiatives to new potential customers, this

strategy will generate a positive relationship between existing customers and new

potential customers as this strategy will serve both the new and existing customers

and will give easy access to new market and will broaden the range of menu.

 Their major focus will be on awareness, they will be increasing awareness among

people that they also have healthy alternatives to serve as well and their target will

mostly be the families and children under the age of 15. They will also create

smooth transition whenever they will try to increase positive attitude towards the
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new healthy alternatives.

 They are also planning for growth targets and the idea regarding that is to win

with their structure alignment, financial strength and distinct competitive

advantages will serve as the critical framework, to become even bigger and better.

 They want to increase their System wide sales growth of 3% to 5%

 Operating income growth of 6% is expected to increase up to 7%

 Return on incremental invested capital in the high teens is expected as well

with their awareness campaign

 The McDonald's System has an infrastructure built for growth, and they are well-

positioned

to seize the sizable opportunities that exist in the Informal Eating Out industry. Today they

are investing in their people, their restaurants and their technology to capitalize on those

long-term opportunities that will make McDonald's even better and bigger in the future.

While the near-term environment is challenging, they are confident in their ability to create

long-term value for their customers, shareholders and the McDonalds System.

References
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o McDonald’s: A Customer-Focused “Plan to Win” Strategy (Principles of Marketing

by Kotler)

o www.mcdonaldsmenu.info

o www.wikipedia.com

o www.mcdonalds.com

o www.statistica.com

o www.google.com

o Principles of management by Philip Kotler