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COLLEGE OF ENGINEERING
DEPARTMENT OF MECHANICAL ENGINEERING
GROUP MEMBERS:
1. ID: ME095512 NAME: MITHRANDASSA NAIR A/L DHAMODHARAN
2. ID: ME094704 NAME: DARYL IAN PALIATH
3. ID: ME096035 NAME: MANIMIT SINGH
4. ID: ME096733 NAME: NOR AMINUDIN IRFAN BIN ABDUL RAHMAN
5. ID: ME096005 NAME: NOR SYIFAA BINTI BAKAR
6. ID: ME095566 NAME: PRAGASRAU A/L APALASAMY
SECTION : 03 GROUP: 4
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Similarly, in the world of fast food chains, McDonalds has never failed to impress its
board of directors with its outstanding revenue generation throughout its chain of franchisee
restaurants. Through simple principles of quick-service, standardized menu and unity-
McDonalds has won the hearts of its patrons since its inception in 1955 [1]. Ever since,
McDonalds have used the same principles to all of its stores and have grown worldwide and
is a renowned brand today. Effective management and Corporate Social Responsibility (CSR)
programmes spearhead the development of McDonalds in the community the same
community that will dine in McDonalds and contribute to revenue generation.
In short, one can define brand as a distinguishable mark that distinguishes a product
with two or more similar products and stand out clearly when compared to other brands. This
brief definition is suggestive that when a customer is presented two items of similar
composition, weight and price, he or she will pick a product with a brand they feel
comfortable with, perhaps due to positive experiences or due to emotional bonds, which is
Positioning a brand simply refers to highlighting the distinctive characteristics that make a
product different from its competitors and appealing to the public in a more convincing
manner. Positioning is crucial as customers are very particular when comparing between
brands, and hence having a strong Branding is necessary. This makes positioning the brand
a pivotal part of the selection process. By strategically positioning the brand it in the minds of
the target audience, the company can build a strong identity or personality of the brand in the
minds of the customers.
A company needs to imagine the perspective of a target customers towards the brand. The
challenges faced by companies in building brands are to be noticed, to be remembered, to
reinforce attitudes, and to create deeper customer emotions towards the brand. Thus in order
to be well known and perceived, companies often rely on general media such as newspapers
advertorials as well social media as effective ways to communicate directly to target
customers.
Companies need to constantly monitor their brand performance against those of competing
brands, especially in the face of aggressive competition. Companies should be wary on their
brand perception and to take corrective actions if needed, and to have the knowledge of the
impacts of certain market interventions that may affect brand performance. Progress can be
monitored by means of several key indicators such as sales volumes, brand defects and
advertising effectiveness. This approach will enable brand marketers to assess the
Leveraging the brand equity refers to linking the brand to some other entity that creates a new
set of associations from the brand to the entity as well as affect existing brand associations.
Organizations often employ different strategies in leveraging their brands through line-
extensions, brand extensions, ingredient branding and co-branding. In ingredient branding,
key attributes of one brand are incorporated into another brand as the said ingredient has been
gaining from increasing popularity. Essentially, ingredient branding enhances the
differentiation of the host brand from competition by characterizing the ingredient attribute in
the host brand more specifically. This results in establishing brand alliances between a
numbers of firms as they link through their products/services or marketing activities. In brand
extensions, the parent brand experience appears to have little impact on long-term repeat
purchasing of an extension across a range of cases in which perceived similarity between the
parent and extension categories vary considerably. If the brand extension fails, it can harm
the brand equity of the parent brand by producing negative tailwind effects.
Case studies of 4 fast food restaurant brands (McDonalds being the main comparison) were
compared to describe the approach for brand building adopted by them. In a way to attract
customers and keep the product in the market. The data collected were based on the
references and thoroughly analyzed. The following suggested through case studies reinforced
the proposed PDCL model for brand building.
2.1 McDONALDS
Positioning
Brand positioning is an important aspect of a company as the right brand perception of the
company can do wonders in the perspective of the customer. In the case of McDonalds, there
are several factors that have led to McDonalds to become the leading fast food franchise in
the world with more than 36000 restaurants across the globe [2]. Despite the sheer number of
restaurants, McDonalds sees their restaurants as one as the brand is well known, and
McDonalds takes advantage of this fact.
McDonalds has been able to achieve this fame by a number of factors, such as having an
extremely efficient service procedure, having a vast menu of fast food items such as
Brand associations
Brand association is another key aspect of companys core values. For instance, in the case of
McDonalds, the word Mc in the menu items is a standard word throughout the globe,
signifying the relation of every food item with McDonalds, which is an important connection.
McDonalds uses this very connection to promote items, and goes to connect them with their
promise of good food and good people slogans [4]. In short, the moment a customer orders an
item with Mc over the counter, the two positive elements of the company are in the mind of
the customer which are positive brand associations.
Campaign
McDonalds has various campaigns throughout the world, most of the times to help those in
need via community programs [5]. McDonalds has always been concerned about the
community, and this perhaps what makes them different from competitors. In the case of
Malaysia, McDonalds is currently hosting the Small change, Huge Impact campaign, which
This programs are under the Corporate Social Responsibility (CSR) initiatives, where
McDonalds is involved in giving back to community. Apart from finding ways of raising
funds, McDonalds Malaysia is also the largest corporate donor of RHMC, and funds the
operations of RHMC as well providing general donations to the RHMC as well from their
yearly profits [7]. This definitely gives McDonalds an edge over competitors, as customers
are more comfortable to dine with an organization that truly gives back to society such as
McDonalds.
Generally, all the leading Companies need to consistently track their brand against the impact
of rivalry, particularly despite forceful rivalry in order to sustain in the latest market
competition. They must be careful to identify their advance in the matter of how their brand
is commercially successful and there are several ways to sustain their brand equity in market.
In the case McDonalds, they had several strategies to maintain their brand performance in
market which divided into certain categories like product performance, service performance
& distribution coverage, customer care, and customer satisfactions.
Product Performance
First and foremost, McDonalds focus in product performance is producing Good
Food. They defined the phrase of Good Food as great taste, modern choices, and real
ingredients. In addition, their concept for attract customers to their fast food stall is by
serving nutritional elements in their foods for all age group people such as include
vegetables, fruits, low-fat dairy, whole grains, reduce salt and sugar, saturated fat and low
calories in all the menu. [8] They also implement nutritional menu for children with Happy
Meal Menu Boards as a children attract marketing. [9]
Brand Extension
Recently McDonalds planned to have brand extension to give a boost to its revenue,
so they are trying to focus on innovation and brand extension like McCafes and delivery
business. This is because to face the competition from the other rival fast food companies like
burger king, Pizza Hut, Dominos pizza and KFC. So, their quick service restaurant and
punctual home-delivery format is very useful to overcome the tough competition. Then, the
McCafes implementation also can be said as one of the great idea to impress customers with
all new type of foods. [15]
On the other hand, McDonalds also merge with some soft drink companies as a
strategy path for brand extension. For example, Coca-Cola, Pepsi, F&N, Nescafe and some
other companies are collaborating with McDonalds to obtain mutual benefits.
Brand associations
- Product name have standardized prefix Mc
COMMUNICATING THE BRAND MESSAGE
Promotion
- Advertorials in various media
- Aggressive instore advertisement techniques
Campaign
- Community orientated programs
- Small Change, Huge Impact campaign to assist underprivileged children in
Malaysia
- CSR initiatives such as RHMC
KFC is the worlds second largest restaurant chain with more than 18,000 KFC outlets
in 120 countries and territories around the world. It is market leader in Non-veg food joints
categories in majority of countries it is in. It is the subsidiary of Yum! Brands, a restaurant
company that also owns the Pizza Hut and Taco Bell. Yum! Brands, the fortune 500
company, is one of the worlds largest fast food restaurant companies in terms of system units
more than 41,000 restaurants around the world in over 125 countries & it help individual
brands in optimizing its resource usage. Although KFC is known for its finger licking
Chickens menu but recently they ventured out in Vegetarian category which is helping them
in increasing their business & attracting both veg & non-veg preferred customers. Sanders
Original Recipe of 11 herbs and spices is one of the most famous trade secrets in the
catering industry. A copy of the recipe, signed by Sanders, is held inside a safe inside a vault
in KFCs Louisville headquarters, along with eleven vials containing the herbs and spices
[16].
KFC has been an extensive advertiser since the establishment of the first franchise in
1952. Founder Harland Sanders initially developed his "Colonel" persona as a low-cost
marketing tool. The Colonel image is still used extensively in the chain's advertising.
The chain is well known for the "finger lickin' good" slogan, which originated in
1956. Moreover, KFC has marketed with NASCAR, sponsoring several cars on a limited
basis throughout the years. KFC's first appearance in NASCAR was in 1997 Cup competition
with Darrell Waltrip Motorsports, as part of a one-race attempt for Rich Bickle and the #26 in
the 1997 Brickyard 400. Several years later in 2004, KFC sponsored Dale Earnhardt Inc.'s #8
for some Busch races with Martin Truex, Jr. and a Busch race at Daytona International
Speedway with Dale Earnhardt, Jr. [17]
Product Performance
KFC is one of the biggest fast -food restaurant in the globe. It made American citizens obese
for a reason. Kidding! It is finger lickin good for a reason too. KFC fried the best part of the
chicken (drumstick, thigh, breast and wings). These chicken parts are all time favourites.
They made surveys in order to meet customer needs. [20]
The restaurant discard any of their meal after 90 minutes if the meal is not sold. This is one of
the restaurants initiative to maintain quality of their product. KFC has one of the most
rigorous health and safety procedures in the world when it comes to cooking chicken. [21]
Service Performance
KFC is devoted in adjusting to local needs. The fast food restaurant is committed in creating
various flavours of the well-known deep fried chicken. KFC adapts to local taste. KFC has
gone world-wide since the 1970s, of course the original Colonel Sanders recipe is still in the
menu and to make it relevant in different market to fit local taste. Certain region in Islamic
countries they have to make it halal in order to sale their product. Example in most Asian
country KFC outlet introduce a spicy Kentucky fried chicken in their respective region or in
the case of Malaysia a little bit of sambal spice. It is the fast food chains initiative of
adapting to local taste. [22]
Other than that, KFC has adopted the drive-thru system where most fast-food restaurant are
currently doing. This is to keep up in the market. Plus, the drive-thru system is really
convenient in the era where consumers prefer a touch and go services.
Social Integration
KFC believe in contributing to society too. The fast food restaurant felt responsible in
improving the quality of their customer. In Malaysia, Projek Penyayang KFC was
developed to provide food 150++ homes every quarter. This project was founded back in
1995 where it serves to feed orphans and underprivileged children across the country. This in
turn, was followed by Tabung Penyayang, a charitable fund also in Malaysia whose sole
purpose is to provide funds for the orphanage. KFC continue to extend its charitable work till
this day. [23]
SUMMARY
POSITIONING THE BRAND PERFORMANCE
- KFC is market leader in Non-veg food joints categories in majority of countries it is
in.
- It is the subsidiary of Yum! Brands, a restaurant company that also owns the Pizza
Hut and Taco Bell.
- They ventured out in Vegetarian category which is helping them in increasing their
business & attracting both veg & non-veg preferred customers.
- Sanders Original Recipe of 11 herbs and spices is one of the most famous trade
secrets in the catering industry
- The chain is well known for the "finger lickin' good" slogan, which originated in
1956.
- KFC has marketed with NASCAR, sponsoring several cars on a limited basis
throughout the years.
Positioning
The brand's positioning is the place in the purchaser mind that you want your brand to own. It
is the benefit you need your customer to see when they think about your brand. A solid brand
position implies that the brand has an exceptional, dependable and manageable position in the
mind of the customer. In A&W Restaurants case, the first thing that will come up to our mind
is their iconic root beer. The company became famous in the United States for its "frosty
mugs", where the mug would be kept in the freezer prior to being filled with root beer and
served to the customer. Today it has franchise locations throughout much of the world,
serving a typical fast-food menu of hamburgers and French fries, as well as hot dogs. In
1962, the first overseas A&W restaurant opens in Guam. The international division quickly
expanded to the countries of the Philippines and Malaysia in 1963 [24].
Promotion
A&W Restaurants developed a three type of communication like emotional, functional, and
promotional. The emotional positioning strongly taps into boomers memories of their youth
at A&W, with the objective of creating smiles and goosebumps. The functional positioning
focuses on the simple indulgence of a great burger just like it was in 1956. The promotional
positioning reflects great value for a premium product. Every year A&W makes 4 to 5
commercials. They also use direct mail coupons on a monthly basis.
Mascots
Rooty, the Great American Root Bear, originated in Canada in 1974 and first appeared in the
United States in 1976. Throughout the 1970s, '80s, and '90s, Rooty was the face of A&W,
both the bottled drinks and the restaurant chain, on television and print advertising. His
presence all but disappeared in the late 1990s, but in 2011, under new ownership, Rooty has
come out of retirement. He has since been featured in print ads, on A&W's website, as the
voice of their official Twitter account, and in a variety of YouTube and Vine videos. In 2013,
Rooty became the first mascot to have an official Linkedin profile, which was quickly shut
down as Rooty was not considered "real" by the authorities at Linkedin. In 1998, the
characters from the comic strip "Blondie", including Blondie and Dagwood Bumstead, were
licensed for use at A&W franchisees as part of an "All American Food" campaign [27]. In
1963, A&W introduced four choices of hamburgers and their corresponding Burger Family
members: Papa Burger, Mama Burger, Teen Burger, and Baby Burger. Each burger had a
wrapper featuring a cartoon image of the corresponding character. Many locations featured
fiberglass statues of the family in front of their stores [28].
Mascots
- Rooty, the Great American Root Bear, originated in Canada in 1974
- Throughout the 1970s, '80s, and '90s, Rooty was the face of A&W, both the bottled
drinks and the restaurant chain, on television and print advertising.
- In 2013, Rooty became the first mascot to have an official Linkedin profile
Product Performance
- deliver high quality food and an enjoyable All-American family Experience
- signature drink A&W Root Beer
Customer Satisfaction
- Burger family which attract family to the restaurant
- Mascots, Rooty the bear
Line Branding
- Lack of innovation
- Creation poor
Ingredient Branding
- use social media to promote new product
- ice-cream for everyone
Wendys is one of the leading international hamburger fast food restaurant chains in the
world. The companys marketing mix supports such industry position. The marketing mix
defines the strategies and tactics the company uses to implement its marketing plan, and
indicates how the business relates with the target market. Wendys marketing mix is the
companys approach to the dynamics of the fast food market. This approach changes
according to trends in the global market. The marketing mix shows how Wendys addresses
issues and needs in the market.
Wendys Products (Product Mix)
Wendys is known for hamburgers. However, the company offers many other
products.
In this component of the marketing mix, organizational outputs are considered. The
Wendys product mix are burgers, chicken sides, salads, beverages and desserts.
Place/Distribution in Wendys Marketing Mix
Wendys completes most of its transactions in its restaurants. This component of the
marketing mix identities the places or venues through which the firm transacts with its
customers. In Wendys case, the places for distributing products are restaurants,
kiosks, website and mobile phone. Wendys generates most of its revenues at its
restaurants.
-Wendys has becoming the first fast-food chain to introduce the salad bar in 1979.
-Garden Sensations Salad were added on in 2002.
-In mid-2007 Wendy's began a national debut of its new breakfast menu in its U.S.
and Canadian stores.
Service performance
-Started to have online order, and can be deliver or pick up services in most of
restaurants worldwide.
Customer care
- Wendys not only focused on their customers based on foods itself but they are
concern on giving back in many different way. The idea came across as the founder,
Dave Thomas himself was adopted as a child. He carried that experience with him
throughout his life, with a strong desire to help other children in need find their
forever homes. Therefore, the community involvement has been particularly focused
on children, on their potential and on helping them develop that potential into the
realization of their dreams, whatever those might be.
- Some examples of charity programmes are:
1) Wendys Wonderful Kids.
2) Dave Thomas Foundation for Adoption.
3) Wendys High School Heisman.
-The Wendys system includes more than 6,500 franchise and Company restaurants in
the U.S. and 29 other countries and U.S. territories worldwide.
Ingredient Branding
-Square patties had corners that stuck out so that customers can see the quality.
Social Integration
-Built partnerships with agencies and big social media platforms like Facebook,
Twitter, and Tumblr from 2011.
-The founder, Dave Thomas himself appeared in more than 800 commercials.
Customer Satisfaction
and Customer Care
- Provide a strong
free Wi-Fi at most
of the restaurants.
- Provide play
Social Integration
- Built partnerships
with agencies and
big social media
platforms like
Facebook, Twitter,
and Tumblr from
2011.
- The founder, Dave
Thomas himself
appeared in more
than 800
commercials.
As shown in the table above, comparison of the four fast food chains, namely McDonalds,
A&W, Wendys and KFC, were established based on the PCDL model. From the four fast
food companies chosen, McDonalds Restaurants is the main company to compare their
PCDL with the other three fast food companies respectively.
First and foremost, by analysing the positioning of brand for these four fast food
companies, it is clear that McDonalds is very popular and successful. McDonalds has
accomplished this distinction by various variables, for instance by having a greatly proficient
administration system, having a limitless menu of fast food items as well as by having
constant promotional advertorials that reflect the brands positive image. McDonalds also
believes in their Unique Philosophy, which is essentially providing food with consistent
high quality and uniform methods of preparation around the globe by taking after a special
way of persuading both franchises and suppliers to believe in the slogan and to work along
McDonalds, promoting a spirit of inclusiveness throughout its supply chain, and standing out
against competitors, giving McDonalds the edge in positioning. Brand association is another
key aspect of organization's centre qualities. For instance, in the case of McDonalds, the word
Mc in the menu is a standard word all through the globe, meaning the connection of each
sustenance thing with McDonalds, which is an essential association.
In the case of A&W Restaurants, the company became famous in the United States
for its "frosty mugs", where the mug would be kept in the freezer prior to being filled with
root beer and served to the customer. Today it has franchises across the globe, serving a
typical fast-food menu of hamburgers and French fries, as well as hot dogs. On the other
hand, Wendys is well known for its hamburgers. In addition, Wendys also offers a host of
other menu items to complement the perfect meal of hamburgers. In the aspect of marketing,
organizational outputs are considered. Wendys had changed their tagline from Now thats
Better to Deliciously Different. This happened as clients reliably stress the diversity of
meat quality contrasted with different competitors. In the case of KFC, they are the market
leader in the market segment of Non-vegetarian food joints categories in majority of
countries they operate in. Recently, they have ventured in the Vegetarian category which is
helping them in expanding their business and pulling in both vegetarian and non-vegetarian
clients, giving them a bigger market share.
In the case of Wendys, their primary tactic is that the company advertises its products
through print media, television, and online media. Personal selling to communicate with
customers is also practised. For instance, the company at times disperses markdown coupons
to clients, which encourages return customers. The restaurant personnel as a rule encourage
clients to purchase more items, for example, pastries or sides dishes. Wendy's applies sales
promotion as fleeting unique offers and rebates. Unlike Wendys, KFC has been a broad
promoter since the foundation of the primary establishment in 1952. Founder Harland
Sanders at first built up his "Colonel" persona as a low-cost marketing tool. The Colonel
picture is still utilized widely as a part of the chains promotion campaigns. The chain is well
known for the "finger lickin' good" slogan, which dates back to 1956. In addition, KFC has
Based on customer satisfaction category, all these companies are employing different
types of strategies to achieve customers satisfactions. In the case of McDonalds, they
provide a free Wi-Fi at most of the stores so that customers can access the internet using their
laptop and mobile devices without any charge. Moreover, McDonalds also provides play
areas for kids at most restaurants to provide entertainment for the kids and to ease the life of
parents while they dine. This facility is a great idea to pull family orientated customers to
McDonalds. Meanwhile, A&W has introduced Burger Family which serves as a purpose to
attract families to dine in their restaurant, where they name their burgers; Papa Bear, Mama
Bear, Teen Burger and Baby burger. This move is a great idea where they keep their All
American Family Food propaganda alive plus kids are attracted to cartoons and bears. The
Last but not least, some brands have worked well in Leveraging the Brand Equity to
sustain their business in market. In the case of McDonalds, they have planned to have brand
expansion to boost its revenue by focusing on innovation and brand expansion like McCafes
and delivery business. McDonalds has also merged with soft drink companies as a strategy
path for brand extension. For example, Coca-Cola, Pepsi, F&N, Nescafe and some other
companies are collaborating with McDonalds to obtain mutual benefits. Even though there
are some companies like KFC and A&W involved in projects for social integration and brand
extensions, McDonalds has still managed to win in this category to stabilize its market
worldwide with the McCafes which was an instant hit for McDonalds. As a conclusion,
McDonalds is having superior manufacturing and marketing tactics compared to its
competitors to sustain as the best brain in fast food chains.
MDP Assignment 1 ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ##
Project Lead: Mithran Nair,Group 4 Section 3 Oct-16 [W44] Oct-16 [W45] Nov-16 [W46]
24 25 26 27 28 29 30 31 1 2 3 4 5 6 7 8 9 10 11 12 13
WBS Task Name Resource Names Start Finish Duration Percent
M T W T F S S M T W T F S S M T W T F S S
Complete
1 Brainstorming Mon 24/Oct/16 Sun 30/Oct/16 5 100%
2 Dividing Task for PCDL Mon 31/Oct/16 Sun 06/Nov/16 5 100%
M Major component of report completed Tue 08/Nov/16 Tue 08/Nov/16 1 -
3 Gathering Information and Analysis for PCDL Mon 31/Oct/16 Sun 06/Nov/16 5 100%
M Report completed & Submitted Fri 11/Nov/16 Fri 11/Nov/16 1 -
4 Final Report compilation and review Mon 07/Nov/16 Thu 10/Nov/16 4 100%
MCDONALDS
[2] Grinding it Out: The Making of McDonalds by Ray A. Kroc, Ray A. Kroc 1977.
[5] https://www.rmhc.org.my/wp-content/uploads/2015/09/McD-Advertorial-2_010915.pdf
[6] https://www.rmhc.org.my/relationship-with-mcd
[8]. http://corporate.mcdonalds.com/content/mcd/sustainability/food.html
[9].GlobalGuidelinesforChildrensMarketing.pdf.2016
http://corporate.mcdonalds.com/content/dam/AboutMcDonalds/2.0/pdfs/Global%20Guidelin
es%20for%20Childrens%20Marketing.pdf
[10]Qualitycomeswithvariety.2016.https://www.mcdonalds.com/us/en-us/about-our-
food/quality-food/variety-of-choices.html
[12]McDonaldsFranchising.2016.
http://corporate.mcdonalds.com/content/mcd/franchising.hml
https://www.mcdonalds.com/us/en-us/services/arch-card.html
https://www.mcdonalds.com/us/en-us/services/playplaces-and-parties.html
[15]http://www.dnaindia.com/money/report-mcdonald-s-to-focus-on-brand-extension-
delivery-business-in-2016-2164078
KFC
[22]http://www.howwemadeitinafrica.com/how-fast-food-chain-kfc-addresses-local-cultures-
and-tastes-in-africa/23478/. Date of access: 8/11/16
A&W
[26] Blondie, Dagwood to pitch for A&W, Advertising Age March 4, 1998
http://adage.com/article/news/blondie-dagwood-pitch-a-w/22562/
[31]http://www.mediapost.com/publications/article/199180/aw-restaurants-social-media-
moves-locked-out-of.html#axzz2Yf1ZSkF9. Date of access: 8/11/2016
WENDYS
[37] http://wendys.com.my/order.php
[38] https://www.wendys.com/en-us/about-wendys/giving-back
[40] https://en.wikipedia.org/wiki/Wendy%27s