PART 1: TERMS OF SUMMARY
Today there are a lot of fast food chains all over the country that competed with each other. other. Everyo Everyone ne has their their own marketin marketing g strategy strategy and everyon everyone e encount encounters ers problem in operating their business. One of the top fast food chains in the country is McDonalds.
McDo McDonal nalds ds or usuall usually y calle called d McDo McDo has has bee been one one of the the top top fast fast foo food chai chains ns in the the Philippines. Millions of people eat at McDonalds ever every y day day. This his fast fast foo food cha chain has has many many comp compet etit itor ors s espe especi cial ally ly when when it come comes s to the the choice of fast food for the children. McDonalds was one of the top choices of Filipino children. The firs firstt McDo McDona nald lds s was open opened ed 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. /ith 0enneth 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. McDonalds. ' week week will not pass without us eating at McDonalds and we usually eat at the Mendiola branch beside the 2entro Escolar 4niversity 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 2olle 2ollege ge&& 7a 2ons 2onsol olaci acion on 2olle 2ollege& ge& 2olle 2ollege ge of the 8oly 8oly 1piri 1piritt and and 2ent 2entro ro Escol Escolar ar 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
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
%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
and
loyalty.
heart
McDonald+s has
Philippines 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 <"= 2ustomer definition <(= 2ustomer market group and segments <>= 2ompany+s market growth and trend.
(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
'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 McDonalds
has 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 and
college 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
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
Political factors
's any business enterprise& these McDonalds is under influence of a policy& regulated by the government and the company should follow policy and instructions in their operations. /e all know that the goods offered by McDonald+s are unhealthy since it is a fast-food restaurant. They have specified that harmful elements as cholesterol and negative influences as fatness are concerning consumption of products of fast food. 1ome citi;ens ask the government to act regarding the concerning medical values of meal of fast food.
Economic factors
2ompanies in the fast food industry arent e3cused from any disputes and problems. Definitely& they really have the separate problems involving business factors. McDonald+s has the tendency to e3perience difficulty especially when the economy is e3periencing inflation and e3change rates. Especially& their problem depends on the answer of consumers to these main principles and how it could influence their general sales. %n an estimation of operations of the company& food chains as McDonald+s tend to import the biggest part of the raw materials to certain territory if there is a delivery lack. E3change rate fluctuations will also play an essential role in company+s operations.
Socio-Cultural factors
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 wellbeing. These practices are able to reduce the environmental impact of agriculture and breeding.
MCO5E36RO3ME3T
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 frappe drinks. %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.
•
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
8Ps 9o,,ee
;#&$%rou! *
Pro*u&t
Pr&e
P,#&e
FC
: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 "#.
:ollibee offers a wide 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. :ollibee offer different kinds of combo meals. Their rice meals starts with Php># up to Php"*).
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. 0F2 has an average priced meals. They 'lso offer different kinds of combo meals.
: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.
M#!% !#s#, Edgar 1ia %% founded Mang%nasal in the year ())>. Mang%nasal has already e3panded to branches nationwide. Mang %nasal is known 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. Mang%nasal offers Paborito Meals& 1ulit Meals and Merienda Meals which ranges from Php# up to Php"(). Mang %nasal is usually located in urban areas. They offer home deliveries.
Promoto!
:ollibee use celebrities to endorse their brand in TJ and online advertisements. They also offer advantage card that earns points.
0F2 offer various forms of incentives when buying 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#
9ecommendations6 ". McDonald+s is big food supplying company& and all of us know& how food affects our health. %t is one of the main factors& what built our body and strength our brains. Ma3imi;ing organic
the
food
at
status its
of the best
by
developing a new product which consists of organic food would be a great new market segmentation for McDonald+s6 So,uto! 1: Offer new menus under consists of organic food and organic product So,uto! 2: Partnership with food nutritionist and food technologist for
consultation of food ingredients. So,uto! : 1urvey consumers what particular healthy ingredients and menus
they would like McDonald+s to have. Pro%r#m Co,,#ter#,6
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:
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
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.
(.
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
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 <#o+s kids= despite that it is not our own. /e believe that it will continue to grow and grow more and
