Marketing Plan On Mc Donalds

               McDonalds (Marketing plan – Phase 1)

Executive Summary

Past few decades franchising has flourished into a major business form. Over one third of retail sales of USA is through franchises like McDonalds, Burger king, KFC etc. 20 percent of US national economy is based of franchising. This concept is not only expanding everywhere in US but has crossed borders to benefit globally. This is a fast growing industry past many years and this is helping the global economy in a big way. (Castrogiovanni, Justis, 1998)

No particular competitive strategy is guaranteed to achieve success at all times. Risk attitudes can change and vary by industry volatility and environmental uncertainty and several internal conditions also might be involved. Thus the “four P’s” of marketing (product, price, place and promotion) provide a good starting point for consideration of the requirements of strategy implementation in the marketing function. The mix of these marketing elements should be appropriate and the plans for each of the elements should also be appropriate. (Vijayarani, 2007)

Market Analysis:

Customers needs in a serving quality and value is most important aspect in the fast food industry. It is especially most important when the company is involved internationally as such perceptions then later form opinions of a company and also can lead to cultural differences at the same time. When a company decides to go internationally, there are lot of aspects that need to be taken into consideration. This difference could be in living habits and taste of food with in different countries. The services industry should be well aware and should be willing to adaptive to the local needs In the country they enter. (Hofstede, 1980; Prahalad and Doz,1987).

To give a background of McDonalds, two brothers came up with the restaurant with the name of “McDonalds” in 1937. This place was a very small around Pasadena, California. In the year 1954 Ray Krok who was a milk shake mixer salesman bought this restaurant from the brothers as he saw an opportunity in the market and negotiated a deal giving him exclusive rights to franchise McDonalds in USA.  The key to all the success of McDonalds is its concept of franchising to local people. McDonalds now has over 20,000 restaurants in over 100 countries and around 80% are franchises.
(Vignali, 2001).

The fast food industry in US and Canada has become saturated and are in competition with each other sharing the market rather than going for new growth. These fast food companies are aiming for growth by looking into international markets in America these fast food restaurant chains are expanding more into international market over domestic. In such situations and growing competition in the domestic market companies such as McDonalds, Wendy’s, KFC and dominos have expanded internationally. There is a lot of potential in franchising in the international market for fast food and it is also identified in smaller food service companies. In countries like Hong Kong, Belgium, Brazil china market is growing for these fast food chains. There is huge profit potential in European and Asian countries for these companies. (Jones, Shears, Hillier, Clarke-Hill, 2002)