Principles of Marketing

Assignment # 2

BS Aviation Management

Submitted to:
Miss Mah-e-laqa

Submitted by:
Arslan Aslam (9234)
3rd Semester

Superior University Lahore.

McDonald’s:
McDonald's is the leading global fast-
food serving company with more than 31,000 local
restaurants serving more than 58 million people in 118
countries each day.

McDonald’s serves the world some of its favorite foods - World Famous Fries,
Big Mac, Quarter Pounder, Chicken McNuggets and Egg McMuffin.

McDonald’s history began with his founder, Ray Kroc.

The market environment is a marketing term and refers to all of the forces
outside of marketing that affect marketing management’s ability to build and
maintain successful relationships with target customers. The market
environment consists of both the macro environment and the
microenvironment.
The microenvironment refers to the forces that are close to the company and
affect its ability to serve its customers. It includes;
i. The company itself
ii. Suppliers,
iii. Marketing intermediaries
iv. Competitors,
v. Publics.
McDonald’s Microenvironment:
McDonald’s customers:
Initially the idea of fast foods marketing from
McDonalds is more likely to target on kids and young urban adults who like
to try something new, fast, simple and interesting. Marketing campaign and
associating with merchandise from popular cartoons seems to be a reliable
strategy. Kids are encouraged to eat at McDonalds because influence from
advertising as exposure of this advertising coverage is getting wider as our
nation progress. More and more families have at least one television set at
home, and without doubt these growing children is most likely influenced by
television advertising from McDonalds.

Young adults and teenagers still are a major target groups for McDonalds but
these groups of peoples have a swift changing trends and preferences. In
early stage, McDonalds seems to be a great and popular hangout place for
students and teenagers. However, as people age and grown up, the
McDonald’s image and strategies has been question. McDonalds want to
grow and move along together with its customers from young and morphing
to the new generation. That is the motive McDonalds launched the “Forever
Young” branding in 2006, which is major change over of image since 1970.

McDonalds wants its customer base to be consisted from all lifestyle, age
and different culture so it does not being stereotyped just a restaurant for
kids and teenager. In conclusion, McDonalds target groups are not just from
one segment but it is evolving more to a family oriented restaurant and
people from all walks of life. Previously is more popular among the kids and
teenagers but the concept is now changing, McDonalds has position itself
better than other competitors to be a healthy family restaurant providing
good foods to all, rather than just a fast food operator.

Competitors:
Fast food industry has a wide range of competitors from
small to big size in term of financial capabilities. Competitors of McDonalds,
which McDonalds must compete by offering a differentiation in term of value
and satisfaction to its customers.

Ø Burger King, a major competitor for McDonalds because selling almost

same popular product from McDonalds which is the variety of hamburgers.

Ø MarryBrown a Malaysia owned grown franchise brand, which sells variety

of fast food such as fried chicken with rice, spaghetti, salads, burgers, fries,
etc and Halal certified restaurant that has since expanded to many Islamic
countries such as UAE, Iran and Saudi Arabia.

Ø Kentucky Fried Chicken through KFC Holdings, which has a niche

market in specialized pressured -fried chicken, burgers, and fries which is a
popular fast food brand in Malaysia. KFC has many outlets mostly in
shopping complexes and highly populated area and it is comparable to
McDonalds in term of influence and exposure in Malaysian market. Most
people or consumer will consider McDonalds and KFC is substitutable due to
comparable numbers of outlets and influence in Malaysia. KFC is part of
Yum! Brands Inc, which also owned Pizza Hut, A&W and Taco Bells and was
once a spin-off from Pepsi Co. That, is why we are seeing why in KFC they
are selling Pepsi Cola and McDonalds with Coca Cola.

Ø Pizza Hut also a part from Yum! Brands chain and in Malaysia it is under
KFC Holding. It specialized on selling varieties types of pizza and side dishes
such as salad, tempura, lasagna, spaghetti, breads, soupsetc.

Ø A&W a fast food operator that specialized in hot-dogs and root beer. This
company has not been a major player in Malaysia fast food industry even
though it was once a pioneer during the 1960s.
McDonalds seems to be in direct competition with Starbucks in providing
tasty and value for money coffee to consumers .McDonald
includes in small competition with AFC and SUBWAY. In conclusion,
McDonalds are executing all these customers’ service improvement
programs to constantly portraying itself as a friendly, healthy and quality
food provider to customers.

Suppliers:
MAJOR SUPPLIERS
FOOD
McKey Food
Hamburger patties, bacon and pork products
Service
Buns, ketchup, milk shake syrups, multi-
Golden West Foods
temperature distribution
Sun Valley Poultry Chicken products
McCain French Fries and Hash Browns
Icelandic Freezing
Fish products
Plants
Unigate Dairies Milk products
Ashby Dairies Milk products
Scottish Pride
Milk products
Dairies
Central Edible Oils Vegetable shortening
Howard Long
Salad
International
Kitchen Range
Fruit Pies and Donuts
Foods
Gala Coffee Coffee
Dairy Produce
Cheeses ices
Packers
McCormick Sauces
Coca-Cola Soft drinks

PACKAGING
Banders Napkins and cold drink
 cups
Lin Pac Foam Packaging
Smith
Paper bags
Anderson
Cold drink cups, lids and
Polarcup
straws
Hot drink cups
Fibracan

Marketing Intermediaries:
No marketing intermediaries of
McDonald’s are available.