36 MCDONALDS DISTRIBUTIONSYSTEM

McDonald uses three types of Distribution strategy

Franchising Licensing Joint venture

McDonalds has a successful franchise business model wherein all restaurants are operated either
by the company or by franchisees, including conventional franchisees under franchise
arrangements and developmental licensees and foreign affiliated markets under license
agreements.

The companys operations are designed to assure consistency and high quality at every restaurant.
When granting franchises or licenses, the company is selective and generally does not franchise to
passive investors. McDonalds has franchised about 80% of its restaurants, while the remainder is
owned and operated by the company. Each of the companys franchisees usually has a standard
20-year franchise license. A franchise license is an authorization granted by either a company or a
government body to an individual or a group that enables them to perform specific commercial
activities. For McDonalds, the franchise model has led to years of profitability, growth, and risk
mitigation. CONSUMPTION It varies from retail outlet to retail outlet, but as a whole we take
average of all retail outlets so we can say that 70 percent consumers prefer chicken items and 30
percent go for meat. Consumption in Mcdonalds Pakistan chicken and meat Chicken Meat

Distribution Strategy of McDonald : McDonald's Corporation is the world's largest chain

of hamburger fast food restaurants, serving more than 58 million customers daily. In
addition to its signature restaurant chain, McDonalds Corporation held a minority
interest in Pret A Manger until 2008, was a major investor in the Chipotle Mexican Grill
until 2006, and owned the restaurant chain Boston Market until 2007.

A McDonald's restaurant is operated by either a franchisee, an affiliate, or the

corporation itself. The corporation's revenues come from the rent, royalties and fees
paid by the franchisees, as well as sales in company-operated restaurants. McDonald's
revenues grew 27% over the three years ending in 2007 to $22.8 billion, and 9%
growth in operating income to $3.9 billion.

McDonald's primarily sells hamburgers, cheeseburgers, chicken products, french fries,

breakfast items, soft drinks, shakes, and desserts. In response to obesity trends in
Western nations and in the face of criticism over the healthiness of its products, the
company has modified its menu to include alternatives considered healthier such as
salads, wraps and fruit.

McDonald's distribution channel and the way in which this fast-food restaurant chain
gets its products to the market. In the theory of the Marketing Mix, place (distribution)
determines where the product will be sold and how it will get there. In fact, as noted
on www.mcdonalds.com, McDonald's is the leading global foodservice retailer, with
more than 30,000 local restaurants serving nearly 46 million people each day in 121
different countries. Approximately 80 percent of all McDonald's restaurants company
wants to be the first in the market and establish the brand as rapidly as possible by
advertising very heavily. This effective distribution strategy (place) has helped
McDonald's develop a strong market share in the fast-food market around the world.
Moreover, according to Kotler stores must have a planned atmosphere that suits the
target market and moves customers to buy. In addition, McDonald's has pre-
determined the locations for many of its stores to help reach a variety and diverse
population. Conclusion. In conclusion, McDonald's has an intensive distribution process
which is a credit to their Marketing department. As businesses and other organizations
move forward, the challenge of making their products

The McDonalds executive claimed that it was about being part of Disney and their
theme parks, their movies and their characters because now you can buy a Happy
Meal at the Happiest Place on Earth. There are multiple places in Disney World to buy a
Happy Meal or more so to buy McDonalds products. A McDonalds kiosk can be found
in between Frontierland and Adventureland and restaurants in Downtown Disney and
next to the Disney All-Star Resorts. Not only can you find these restaurants, they are
also a few of the best McDonalds. The kiosk in the Magic Kingdom is decorated as a
Conestoga wagon depicting the theme of Frontierland. The McDonalds in Downtown
Disney is huge and offers children a great place to play as does the one next to the All-
Star Resort. Although Disney offers a wide range of restaurants and food, visitors flock
to the McDonalds because they know their children love the food, the price is right,
the quality of food is good and it gives their children a place to play during the meal.
This delivery channel was ingenious on McDonalds part; they recognized all they had
to gain by joining in a partnership with the Disney Corporation.