McDonald's mission is to be its customers' favorite place and way to eat and drink. Its global strategy focuses on exceptional customer experience. It is committed to continuously improving operations and customer experience. McDonald's sees its competitive advantages as affordable prices, adherence to the fast food format, universal taste, and its large real estate holdings. It conducts segmentation, targeting and positioning as part of its marketing strategy.

1. McDonald’s
Q1 Marina Adel
Q2 Ahmad Ragab
Q3 Dalia Sobhi
Q4 Yasmin Farouk
Q5 Esraa Magdy

2. Index
1. McDonalds profile in terms of its mission
and vision and competitive advantage.
2. Marketing management schemes
3. McDonalds situation analysis.
4. product levels & competitors.
5. McDonald marketing strategy.

3. Mission
“to be our customers’ favorite place and way to eat and drink.”
Our worldwide operations are aligned around a global strategy called the Plan to
Win, which center on an exceptional customer experience – People, Products, Place,
Price and Promotion. We are committed to continuously improving our operations
and enhancing our customers' experience.
Q1

4. Vision
“to move with velocity to drive profitable
growth and become an even better
McDonald’s serving more customers
delicious food each day around the world.”
This statement is included in the growth plan
that the company introduced in 2017.
The company’s previous vision statement
was “Our overall vision is for McDonald’s to
become a modern, progressive burger
company delivering a contemporary customer
experience.”
Q1

5. Competitive advantage
1- Cheat prices is McDonald’s main competitive
advantage: The USP of McDonald's is Quality, Service,
Cleanliness & Value for money which means we focus
on providing our customers high quality products,
served quickly with a smile, in a clean and pleasant
environment at an affordable price
2- True to ‘fast food’ format.
3- Universality of the taste
4- One of the biggest real estate companies in the
world.
Q1

6. Q2
Marketing Management Schemes
McDonald's sets marketing at the beginning of its strategies while keeping the
consumer at the center. They deliver value through a simple process of 3 phases:
1. Choosing the value
2. Providing the value
3. Communicating the value
McDonald's develops its offering following the value proposition of providing steady
quality with decent value pricing that is served quickly and consistently across the
globe. For McDonald's to fulfill value creation and choose its value, it performs
marketing by segmenting its markets and consumers, targeting the attractive
segments, and positioning its brand accordingly.

7. Value proposition
McDonald’s value proposition was written by its founder Ken
Croc: “McDonalds stands for friendliness, cleanliness,
consistency, and convenience”.
McDonald’s is famous for its value proposition: food of a
constant quality that is served quickly and consistently across
the globe.

8. Value Chain
To deliver value, McDonald's enhanced the nine value chain activities:
Inbound logistics, operations, outbound logistics, marketing and sales,
Services, procurement, technology development, infrastructure, and human
resources.
Q2

9. Q2

10. SWOT Analysis
STRENGTHS
Highest brand value in fast food brands
Food quality and place hygiene
Quick service restaurant
Strong position domestically and globally
Large market share
Strong marketing and advertising
Fastest delivery
Mobile application and drive thru service
WEAKNESSES
Unhealthy food
Low differentiation (limited menu items)
High employee turnover
Opportunities
Innovative technology
Healthier menu
Expansion in Asian market
Discounts and offers
Threats
High competition
Different substitutes
The rise in health consciousness
Economic recession
COVID-19
Q3

11. PESTLE Analysis
Political
Increasing international trade agreements
Governmental guidelines for diet and health
Evolving public health policies
Economical
Slow but stable growth of developed
countries
Slowdown of the Chinese economy
Rapid growth of developing countries
Sociocultural
Rising disposable incomes
Busy lifestyles
Increasing cultural diversity
Healthy lifestyle trend
Technological
Moderate R&D activity in the industry
Increasing business automation
Increasing sales through mobile
devices(application)
Easy ordering through device in branches
and drive thru
Legal
Increasing health regulations in workplaces
and schools
Increasing animal welfare regulations
Rising legal minimum wages
In some countries meat should be halal
Food safety and hygiene certificate
Environmental
Rising interest for corporate environmental
programs
Increasing emphasis on sustainable
business strategies
Q3

12. • Core benefit
• Actual Product
• Augmented Product
Q4
Product Level Analysis

13. 1- Core benefit
> Meeting customer hunger and needs
>Dining experience
good value, good service, cleanliness, quality food and
drink—all point to experience, just as they have for decades.
Features like speed, delivery, online ordering and
technology are increasingly important, and they may
determine a restaurant's ability to deliver “good value.”
>Brand share selling
McDonald's Has the Largest Market Share in The Fast Food
Industry (10% Global Share and 43% of the U.S. Fast Serve
Market)
Q4

14. 2- Actual Product
Permanent Product Strategy
McDonald's offering uniform menu that comprises
hamburgers and cheeseburgers, Big Mac,
Quarter Pounder with Cheese, Filet-O-Fish,
several chicken sandwiches, Chicken
McNuggets, wraps, french fries, salads,
oatmeal, shakes, McFlurry desserts, sundaes,
soft serve cones, pies, soft drinks, coffee,
McCafé beverages and other beverages
is an example of a type of marketing known as
permanent product strategy Several products on
their menu are permanent and do not change,
which appeals to loyal customers who frequent the
restaurant chain. After the initial development,
these items remain on the menu for extended
periods of time without undergoing significant
changes. This strategy ensures that there is always
something familiar and predictable for consumers
on the menu.
Q4

15. >Temporary Product Strategy
In addition to its permanent product offerings, McDonald's regularly develops temporary
products. The McRib, for example, is a product that is offered only seasonally. The
Big Ocean burger is an example of a burger that was developed as a temporary product,
offered only for a few months in 2007. The purpose of this product development strategy is
to give customers something new to experience on each visit and to experiment with new
items that may become permanent
>Quality
McDonalds provide high quality products, such as burgers, fries, drinks, muffins, etc, which are
safe and reliable that it does what it is supposed to do, but not only does the quality of the
products matter, the good value for money affects the business. E.g. buy one extra value meal
and get one free with a food voucher that represents the offer only. They ensure that a high
standard of the product is carried out at all times and they try to compete very competitively with
other fast food businesses with their good value for money. Also a customer would know if the
product is good value for money by checking in another food outlet like KFC for their services
and products
Q4

16. Q4
> Packing
The products of McDonalds are safely packaged when it
is required for the product, in order the customer does
not have any problems or and negative feedbacks to
McDonalds. E.g. hot coffee cups have plastic lids on top
so it does not spill or burn on the customer. Also,
McDonalds ensure to offer nutritional guide of the
product clearly state what the product contains.
>Franchise’s value share (Brand name)
Over the past three years, McDonald's has increased its
franchised unit ratio from 81 percent to 91 percent of all
units
As always, McDonald’s upcoming earnings report on
January 30 will draw attention from investors and
competitors around quick service. Most expect the fast-
food giant to post another strong quarter, with Nomura
Instinet analyst Mark Kalinowski predicting same-store
sales to rise 4 percent in Q4.
Q4

17. 3- Augmented Product
McDonald’s recently introduced a new dessert McFlurry, in India a global icon for the brand.
While the product launch is not the big news, the interesting thing about McFlurry is the use of
>Augmented reality (AR) for promoting the brand on digital media.
McDonald’s was not much into digital earlier, so when we decided to enter the space we decided
to do things differently.
explains Rajdeep Chatterjee, marketing head, McDonald’s (North & East).
>Installation. The companies have some technicians in their staff who can install or configure
a product for Fast delivery
>Product quality and customer satisfaction are the basis that enables McDonald's to create
the exceptional fast food service.
>True to ‘fast food’ format of its restaurants, McDonald’s is famous for the speed of customer
service without compromising the quality of the service.
McDonald's launched its hotline for the McDelivery service in 2002 and communicated it over
several years that followed. In 2008, the "delivery" concept
Q4

18. > Cheat prices is McDonald’s main competitive advantage. The company is
engaged in an extensive utilization of economies of scale to achieve the cost
advantage.
>It is important to note that McDonald’s competitive advantage based on
costs can be difficult to sustain in long-term perspective, since new
competitors may emerge with access to cheaper resources
> Parking area
> Kids area
> Discount on menu

19. Competitors
• Privately-owned Burger King is McDonald's closest competitor.
• Yum Brands operates
• Subway is the largest restaurant chain in the world in terms of size, but
sales have been sliding since 2012.
• Chipotle was formed as a spinoff from McDonald’s with a 2006 IPO
and offers a range of Mexican-inspired menu items.
• KFC
• Pizza Hut
• Taco Bell
Q4

20. Marketing Strategy
McDonald’s began with different strategy. First it centered its decisions and actions
on product –oriented strategies (focusing on offering variety) but nowadays it is
attempting to become a more customer-oriented company Therefore, McDonald’s
has been trying to adopt a customer-oriented strategy.
Value Proposition
promising their customers: quality, service,
cleanliness and value, abbreviated to
“QSCV”.
Its global strategy and its target is “to
dominate the global food service industry
Mac McDonald once said:
“if you gave people a choice, there would
be chaos”
Q5

21. Q5
STP 1. McDonalds segmentation, targeting and
positioning is one of the integral components
of its marketing strategy.
2. Segmentation involves dividing population into
groups according to certain characteristics,
3. McDonald's performs four types of segmentation:
Geographic, Demographic, psychographic, and
behavioral segmentation.
4. whereas targeting implies choosing specific
groups identified as a result of segmentation to
sell products.
5. Positioning refers to the selection of the
marketing mix the most suitable for the target
customer segment.
6. McDonald’s uses adaptive type of product
positioning and accordingly, the company is
engaged in periodical re-positioning of products
and services according to changes in the
segment.

23. Brand Positioning
Q5

24. Marketing Mix (Think Global, Act local)
Q5

25. 7P’s
Q5