History of the company First McDonald‘s: founded in 1948 by the McDonald‘s brothers in San Bernardino, California (USA) Previously elaborated food and fast served was offered Base of the success: Sustitution of the conventional plates for paper bags History of the company 1955: Creation of the first local of the corporation by Ray Kroc 50-60 years: The successfull philosophy of the system of the company is established: History of the company Nowadays: The franchise has more than 25.000 restaurants in 117 countries and 5 continents How does McDonald´s work? Phylosophy of the company New originall concept of fast service: The details are taken care to the maximum to give to the clients an excellent product Since 44 years, the operative philosophy of the company: Quality, service, cleanliness & value Offer of the company: Standard-menu and development in each culture of special products ITS WORKERS For McDonald‘s are the most important Thanks to them, the clients have a nice experience in each visit and want to come back The principles of quality, service and cleanliness begin with its own workers THE SUPPLIERS Nowadays they are the biggest food processors and distributors of the world Suppliers' politics: – Long term relationships – benefits for both parts This is the most integrated, effective and original supplies system of the fast food industry THE CLIENTS & THE BEHAVIOR OF BUYING McDonald´s knows its clients and its products are designed according to their characteristics and desires Its target market is well studied, having products for children and adults (segmentation of the market) THE CLIENTS & THE BEHAVIOR OF BUYING McDonald´s knows that the most of the people make life out home, beeing this ones potential consumers Its clients are families and persons who,because of their life style, haven´t time enough to feed in another type of restaurants THE COMPETENCE Introduction of the market: – No barriers of entry Leader of the sector – No competence THE COMPETENCE Since 1955: Fast food service market became one of the most competitive market because of the entry of new companies in the sector. Nowadays: Its main competitor: THE COMPETENCE Strategies opposite to the competence: 1. Differentiation of its products and services across the good quality, the service, the originality and innovation 2. Strategy of growth: challenge to the competence with a risky expansion program THE COMPETENCE McDonald´s: Leader of its market Great competitive advantage Continuous follow-up of its competitors, trying always to : To discover some hollows on the market To discover its threats To look for continuous strategies of differentiation ENVIRONMENT OF MCDONALD´S PHYSICAL ENVIRONMENT – Development of its activity in all the world – Extensive advertising campaigns in all the world DEMOGRAPHIC ENVIRONMENT – Demographic changes don´t affect – It works in developed markets, where the consumption culture is more extended ECONOMIC ENVIRONMENT – The investment of the businessmen in constructing McDonald's restaurants is favored because of the good economic situation and the technological development SOCIOCULTURAL ENVIRONMENT – Extension of the american culture in all the world – Incorporation of the woman in the market – Enormous growth of the cities, beeing imposible go home to eat ENVIRONMENT OF MCDONALD´S Conclusions: The time is vital The nourishing habits change The people come to fast food restaurants McDonald's chooses its market Criteria that mcdonald's uses to segment the market: – Age: Family Singles or emancipated population – Incomes: destinated to people with middle-high incomes – Life-style: Relationated with the geography It depends on cultures, customs ....etc McDonald's chooses its market Strategy of segmentation: – Differentiated market: McDonald´s makes a type of marketing for each segment The market 100% 2% 42% 26% 7-14 years 14-35 years 35-50 years more than 50 30% Marketing-mix Product policy It has two parts: a)Tangible: Food: Many promotions with the products – – – – sales in menus are cheaper than individual 2x1 Promotional gifts with the menus game of Monopoly MARKETING MIX Package – Identificates and diferentiates the product – Supports the food warm – It´s made of reciclable material (the ecologic is fashionable) McDonald´s renews constantly the products. It knows very well the cycle of life. It is necessary to be renewing constantly the scale MARKETING-MIX b) Untangible: Mark: – It helps to the clients to diferentiate the products and services of McDonald´s – The mark McDonald´s supposes for the customers a quality garanty and a good service MARKETING-MIX Service: Marketing for children: – – – – – – Surprise gifts Play Land Organization of birthdays The Clown Chairs for babies Stickers, caps, globes Marketing for adults – – – – Fast service Cleanliness Quality „The smiles are free“ (Slogans like this one) MARKETING-MIX In McDonald´s there is no only a good food which satisfies the basical need of nourishment, the service and the quality, considered as connected services, are perfectly taken care. Nowadays, the healthness and to have a good nourishment are the main desires of the customers, for this reason products are of hight quality MARKETING-MIX PRICE POLICY – McDonald´s recognises the importance of the prices as a factor which differs the product – The high prices agree with the characteristics of its market: for clients with middle/high incomes, getting in this way an image of prestige. MARKETING-MIX – It changes the prices according to the competitors´ reactions – It differs its products with the quality, because „ if you have high quality, the sensibility to the prices will be minor“ – The price is similar in all the world: There is not price discrimination. MARKETING-MIX Service distribution: – the distribution is by the franchising system operated – Installation of franchisings´in the diferent towns of the countries where McDonald´s is – Distribution of the service in the restaurant: McAuto Into the stablishment MARKETING-MIX Promotion policy. – McDonald´s wants to stand out those aspects that motivate to the consumers, such as quality, appetite, fast and health food, and a good place to eat with fun. – In this way, it tries to disable the brakes , such as the situation of the establishment, calories, the fear for a so rapidly made food....etc MARKETING-MIX Promotion policy. – Means and supports: McDonald´s uses the newspaper, radio and the TV as mayority means and supports Also, it uses direct advertising in the establishments ( Cartels, direct advertising from the employers..........etc) MARKETING-MIX Force of sale: This is the most important for two reasons: – Its suitable performance gives the quality and good service image that the company looks for. – It supposes the biggest and the most correct channel of communication to the clients.