Professional Documents
Culture Documents
DE LA SALLE UNIVERSITY-DASMARINAS
Research Paper in
Entrepreneurial Marketing
In Entrepreneurship
Submitted to
Submitted by
ALMALVEZ, AILEEN
Table of Contents
McDonald’s McFries Marketing Plan || Page 2
I. EXECUTIVE SUMMARY………………………………………………..pages 3-
C. COMPETITIVE ANALYSIS
10
15
15
D. MARKET ANALYSIS
16
…page 16
A. PRODUCT……………………………………………………………….pages 19-
McDonald’s McFries Marketing Plan || Page 3
22
B. PLACE…………………………………………………...……………….pages 22-
23
C. PRICE…………………………………………………………….…………...page
23
D. PROMOTION…………………………………………………………....pages 24-
25
IV. BUDGET……………………………………………………………………..………...page
26
I. Executive Summary
Today, McDonald’s has grown to have more than 36,000 restaurants all over the world,
serving nearly 50 million people in over 119 countries everyday, making it the number one
offer Filipinos a combination of great tasting, quality food products at value prices with excellent
service. Clearly McDonald’s food give happiness and satisfaction to its customers. So, the
company came up with a plan to bring home the happiness that it gives the customers when
eating McDonald’s world famous French fries. The company's target market are the teens who is
Mcdonald creates brand recognition through promotion and advertisement and also
through its impactful logo design which is golden arch. McDonald identifies the economic, legal
and social factors, the retail environment and many other elements which affect the willingness
of the people to buy mcdonald’s product. It also identifies the important psychological factors
McDonald’s McFries Marketing Plan || Page 4
Mcdonald set up the marketing objective in accordance with the swot analysis and how to
achieve them. Develops the right product according to its customers want and need.
Price is set according to the awareness among people for the brand and also it’s integrity. The
competitive price is set as low price may lead to misconception of low quality.
promotional device is such that it supports each other to bring awareness and not confuse the
Thus by proper combination of marketing mix, setting targets, and delegating the
Company Profile
Mission
To serve the Filipino community by providing great-tasting food and the most relevant
Vision
Company Background
Ray Kroc started it all when he bought the franchise of a small burger joint owned by
Dick and Mac McDonald, and opened his first restaurant in Des Plaines, Illinois in 1955. Now,
McDonald’s has more than 30,000 restaurants, serving nearly 50 million people in over 119
countries everyday, making it the number one quick-service restaurant in the world.
George T. Yang built the first Golden Arches in the Philippines in 1981. As of 2005,
McDonald’s Philippines is a 100% Filipino-owned company. From its first restaurant along
Morayta, Manila in 1981, McDonald’s has grown to become one of the leading fast food chains
with close to 300 restaurants nationwide! With Kenneth S. Yang at the helm, McDonald’s is now
a multi-billion peso company that continues to expand and serve Filipinos all over the country.
of great tasting, quality food products at value prices with excellent service.
Well loved McDonald’s products like the Big Mac, Cheeseburger, World Famous French
Fries, Egg Muffin, Apple Pie, Sundae and the Happy Meal, plus local favorites like Chicken
McDo, Burger McDo and McSpaghetti are products of our passion to always give what our
McDonald’s McFries Marketing Plan || Page 6
customers want. McDonald’s ensures high standards in all aspects of operations, promising our
customers only the best meals in every restaurant at any time. Recently, McDonald’s pioneered
24/7 restaurants and 24/7 delivery service to cater to our customers’ changing lifestyles.
Apart from our products and services, McDonald’s gives back to the community through
the Ronald McDonald House Charities (RMHC). RMHC supports children’s development and
well-being through Bahay Bulilit and Bright Minds Read (BMR). Every Happy Meal purchase
gives 50 centavos to RMHC. Bahay Bulilit, a partnership between RMHC and the Department of
Social Welfare and Development (DSWD), builds day-care centers and provides primary
education to children below 6 years old. Bright Minds Read (BMR), on the other hand, is a
partnership program with the Department of Education that teaches beginning reading to Grade 1
Ray Kroc started it all when he bought the franchise of a small burger joint owned by
brothers Dick and Mac McDonald. He opened his first restaurant in Des Plaines, Illinois and five
McDonald’s continues to serve close to 68 million in over 119 countries every day, making it the
Today, McDonald’s has grown to have more than 36,000 restaurants all over the
world. It was in 1981 when George T. Yang opened the first-ever McDonald’s restaurant in the
Philippines. The historic restaurant still stands on its original location in Morayta, Manila. 1992:
McDonald’s goes nationwide McDonald’s brings its food and convenience closer to every
Filipino as it opens its first stores in Visayas and Mindanao. It was in 1992 when McDonald’s
McDonald’s McFries Marketing Plan || Page 7
restaurants were put-up in the cities of Cebu and Cagayan De Oro. 2005: McDonald’s becomes
100% Filipino-owned In order to achieve its vision of Una Sa Pamilyang Pinoy, McDonald’s
remains all-Filipino to this day. Today, McDonald’s has grown to become one of the country’s
leading fast food chains with more than 500 restaurants nationwide. With President and Chief
Executive Officer Kenneth S. Yang at the helm, McDonald’s is now a multibillion-Peso company
Industry Analysis
McDonald’s is the leading global quick service restaurant retailer as well as one of the
world’s well-known and valuable brands. It has over 31,377 restaurants in 118 countries and its
franchisees operate 20, 505 restaurants. McDonald’s is the industry leader and has been known
as the industry trend setter, yet it has not always been at the forefront on capitalizing new niche
markets. They were the first to create and master the “speedee service system “ also known as
the assembly line. They were also made the first strategic move of purchasing their own land to
rent to franchisees. They were also the first to advertise with an character , which strengthened
Fast food restaurants represent one of the largest segments of the food industry. In the
United States alone, over 200.000 fast food restaurants are operated bringing in $120 Billion a
year. Food industry is and will always remain in high demand because of its genre. The company
is extremely vital to the industry as well as the economy as a whole because its presence impacts
jobs and the success of other industries. This also reinforces the company’s and the industry’s
market strength and attractiveness. As stated by Eurometer International, Outlet opening have
been supported by the increasing number of shopping centres and small community
supermarkets in Metro Manila and key cities nationwide (“Fast Food…,” 2013)
With this, McDonald’s is going to enter the frozen fries industry. Driven largely by the
rising popularity of Western style cuisine particularly the offerings of quick service restaurants
(QSRs), frozen french fries and other frozen potato products have become global commodities
McDonald’s McFries Marketing Plan || Page 9
generating billions of dollars in revenue worldwide each year. Although exact worldwide
production and sales figures for frozen potato products are not available, it has been estimated
that total world frozen potato production capacity is about 11 million metric tons a year
(Huffaker, 2003). The Philippines with a population of 98 million on 300,000 km2 of which 19%
(57,000 km2 = 5.7 million ha) arable land grow potato on 7,000 ha with and estimated
production of about 120,000 t per annum. This means that on average a person eats about 1.2 kg
potatoes produced in the country. The national production is all sold on the fresh market and no
potatoes produced in the country are currently processed into chips (crisps), extruded products or
into French fries. French fries are imported frozen at a quantity of 32,000 t/year. Assuming that 2
tons of potatoes are needed to produce 1t of French fries this represents a quantity of raw
Competitor Analysis
The competitors in the frozen food industry are Frenchies French Fries and Sm Bonus Fries. The
direct competitor is the SM Bonus fries and Frenchies French fries. The indirect competitor are
Table 1
The competitors and its competitive strategies are shown in the table below:
SWOT Analysis
● Strengths
McDonald’s McFries Marketing Plan || Page 11
McDonald's has built up huge brand equity. It is the no 1 fast food company by
sales, with more than 31,000 restaurants serving burgers and fries in almost 120
countries. The image of McDonald's is recognized everywhere. This brand is in top ten of
the most powerful brand names in the world with Coca-Cola, Nokia or GM.
McDonald's is considered as the largest player in size and global reach. When
Wendy’s or Burger King are losing market share in 2006, McDonald's still increases its
market share. Market share of McDonald's in the recent time is about 19% while Yum!
McDonald's is very serious on training managers. This company has its own
University. As a result, McDonald's has many good managers who can help company
development well.
McDonald's customer – focused Plan to Win provide a common framework for its
global business yet allows for local adaptation. Through the execution of initiatives
surrounding the five elements of its Plan to Win – People, Products, Place, Price and
worldwide and grown comparable sales and customer visits in each of the last eight
years. This Plan, combined with financial discipline, has delivered strong results for
company’s shareholders.
McDonald’s McFries Marketing Plan || Page 12
McDonald's is considered the first one enter to fast food industry. It initiates to
other brand to enter this industry. As a result, when think about fast food, customers
always remember McDonalds first. In fact, in some big countries, especially in US,
6. Technology Innovative
terminals in some outlets as well as enabling customers to order online. This will create a
more efficient process that will reduce the amount of lag time between a customer’s
No matter the continent, children and adults know the face of Ronald McDonald
is synonymous with the colossus restaurant chain. This results in wonderful marketing
strategies among management which conducts a very thorough market analysis, resulting
● Weaknesses
McDonald's has been impacted by negative press like the documentary "Supersize
and other fast food chains. In fact, each McDonald's dishes provides large amount of
2. Unbalance meals
meals are still unbalance. For example, there are many dishes with chicken (both grilled
and fried), bacon, beef, rib or egg. Besides, just several dishes are salad with vegetable
3. Legal action
McDonald’s has been involved in a number of lawsuits and other legal cases in
the course. For example, there are many case which involved with trademark issue.
McDonald’s force many others restaurant, company of just a coffee shop to change their
● Opportunities
Fast food industry now is developing significantly. The change of lifestyle leads
to the change in people eating habit. In the past, if just workers, drivers or someone who
had to work busily and didn’t have enough time for a home meal choose fast food;
nowadays, almost people eat fast food and a major of them like fast food very much. It is
a huge chance for fast food brand to increase their revenues, especially McDonald's.
With low cost menu, McDonald's can attract customers who just have low
income. This segment makes up a fairly remarkable part, especially in the recent time,
when global economy is struggling. It is not difficult for McDonald's to apply low cost
3.Conservation
McDonald's should research green energies and green packaging solutions and
● Threats
1. Economic recession
The company's revenue streams are diversified, but depending on the length of
this "recession", they will inevitably be negatively impacted by the trickledown effect.
Recession or downturn in economy may affect the retailer sales, as household budgets
Environment is one of the hottest topics all over the world. Any action which
influence on the earth and human life is criticized strongly. Consequently, if McDonalds
keep using HCFC -22, it may lose customers, especially who really care about the earth.
3. Intensity competitors
Along with the development of fast food industry, there are many new fast food
brand enter to the market. It is nothing to say if there is no strong brand which can
compete with McDonald's. However, in fact, there are some and they are stronger
gradually, for example, Wendy’s or Burger King. Although market share of these brand
are lower than McDonalds, they try to gain more customers from McDonald's. Moreover,
more casual dining restaurants increase their burger offering and decrease the price. If we
are not really hurry, we may choose this kind of restaurant instead of fast food
Marketing Objectives
1. To establish product awareness in the target market by 80% within one year.
3. To become the most preferred brand of frozen french fries within 5 years.
Marketing Strategy
Table 2
Market Lifestyle A These are parents who want to buy French fries for their kids. They
like to store these products as staple which are easy to cook just heat
oil, deep fry then season and it prevent shortage of snacks in their
household.
Market Lifestyle B These are men and women who are busy or always in a hurry which
don't have much time to cook. They are hardworking and punctually
and always busy and living in a workaholic life but when they had a
break they can have this as their comfort food with their love ones.
Market Lifestyle C These Teens and young adults without a source of income and don't
Positioning
McDonald’s McFries Marketing Plan || Page 16
For Filipino parents who have kids that love French fries like in fast food, it is now made
For Filipino who are always in a hurry in need of comfort food, the tastiest French fries
now in pack offers the most satisfying answer to your cravings and good comfort food with your
love ones.
For Filipinos who don't know how to cook, French fries is now made instant even if you
can’t cook all you just need is to heat oil then fry it.
Table 3
Market 18-50
Teens and parents who want to buy instant and easy to cook french fries
Working professionals who do not have the time to cook food and want to
satisfy their craving of comfort food when they are with their love ones
McDonald’s McFries Marketing Plan || Page 17
Tertiary Target:
Trade dealers
1. Supermarket
2. Convenience stores
3. McDonald’s branches
4. Other kiosks or food cart or people who are business minded who want
13-21
Students who prefer to buy less expensive and easy to cook food for their
convenience.
McDonald’s McFries Marketing Plan || Page 18
Product Strategy
Figure 1 is "Mcfries" which consist of French fries and seasoning. This is your ordinary comfort
food that is more affordable and accessible and convenient .Starting a new company, we give all
McDonald’s McFries Marketing Plan || Page 19
our effort to produce a product that is beneficial to almost everyone because it will be available
anytime they want. They could buy few of these and stock it so if they want to eat "French fries"
they don't have to go to a store saving them both time and money. This product has less
preservatives than other product thus adding quality to it. It would be healthier and tastier than
sold in the market “Mcfries" is a non-durable goods meaning this has a limited lifetime which
will depreciate and this product would last for a month or two because we use less preservatives.
Moreover, this product is a convenient product and it can be classified as staple or comfort food
depends on the consumer and the time when the customer consume this food.
“McDonalds’s Corporation" will develop its product line by enhancing its position in the market
and continue developing products which will benefit health and use less preservatives and
continue to be honest to the customer by using company's resources. This would improve the
Figure 2 and 3 shows the packaging of product. The front show the name of the product
which is “McFries" and its tagline " no need to defrost , just fry" and " Less preservative , much
healthier" . In the back packaging or figure 3, the ingredients, nutrition facts, direction, barcode
and expiration date is seen. This provide knowledge and information to customers so that they
know its content and also for them to know if it's safe for their health
Place
McDonald’s McFries Marketing Plan || Page 21
McDonald’s McFries will be available to all of its branches, for those people who want to
cook and eat McDonald’s fries anywhere. McFries will be *available* to different hypermarkets,
supermarkets, and groceries. It will be place on the fridge or freezers as shown in the slotting to
preserve the product and maintain its freshness. Allowance will be provided here and it will also
be placed to the most visible part of the fridge or freezer. This will help boost product visibility
and this will let people be aware of the new McFries product. More so, This will be placed near
its competitors to increase customer curiosity which could help increase McFries’ sales.
Price
The strategies used for frozen McFries are prestige objective, and profitability objective.
By using prestige objective, frozen McFries aims to set its price to the expectation of a high
quality french fries. Frozen McFries also aims to be a profitable product and earn a profit in
McDonald’s McFries Marketing Plan || Page 22
return. Psychological unit pricing is another pricing strategy used for the product. It states the
prices in terms of some recognized unit of measurement (such as grams, and liters) or a standard
numerical count. The price for the product will be based on the of the unit of measurement per
package and the original price of a regular McDo fries. The estimated price for the product will
Promotion
McDonald’s McFries Marketing Plan || Page 23
Newspaper
These ads can do a lot more than just advertise one item or one sale, each one can work
really hard to bring in customers, and then bring them back again and again. They're a good way
to reach a large number of people, especially those aged 45-plus who tend to read the paper more
frequently than younger demographic groups who tend to get their news from television, radio or
the internet. And we can target our ads to the appropriate markets by requesting that our ads run
Television Ads
It is the most effective advertising to convince the target audience to buy McDonald’s
McDonald’s McFries Marketing Plan || Page 24
frozen McFries.
Radio Ads
Mcdonald’s McFries will be mentioned by a radio DJ. Through this, people who listen to
“Consumers are spending more time logging in than tuning in, with Google’s digital
audience to soon eclipse TV viewing.” Most people are spending more time surfing the internet.
etc.) buy.
to 2 months. consumers.
Total of Php 50,800,000.00 is allocated for McDonald’s McFries for its marketing