ASSIGNMENT OF STRATEGIC MANAGEMENT

ON
MARKETING SCANNING WITH RESPECT TO
STRATEGIC PLANNING WITH MCDONALD’s

SUBMITTED TO: SUBMITTED BY:

Dr. PUSHPINDER SINGH GILL SAHIL SINGLA (11353010)
HUSAN DEEP SINGH(11353006)
PRABHJOT SINGH

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INTRODUCTION TO THE COMPANY

McDonald’s is the world’s one of the leading hamburger fast food restaurant,
serving around 57 million clients each day and having restaurants more than
30,000 in around 119 countries. It's far one of the world’s maximum well-known
and valuable manufacturers and holds a large number of shares inside the globally
branded brief service restaurant phase of the informal consuming-out marketplace
in which they do their business.
McDonald was first started in 1940 in San Bernardino, California. It was opened as
a restaurant concept by two brothers named Richard and Maurice McDonald.
[ CITATION mcd171 \l 1033 ]On 15th April 1995, Ray Kroc founded the
McDonald Corporation in Des Plaines, Illinois and Ray Kroc took over all the
rights from Richard and Maurice McDonald. Ray Kroc became the founder of
McDonald’s employer. McDonald’s achievement these days is rooted within the
work of all three.
In the late 1940s, dick and mac McDonald’s pioneers of McDonald’s had been
searching for a way to enhance their little force-in eating place in San Bernardino,
California, united states; they invented an entirely new idea based totally upon
service speed, low expenses, and large volumes. Phrase of its success unfold
quickly, in 1952 they'd extra than 300 franchising inquiries a month from all over
the United States. Becoming a member of Ray Kroc in 1954, and basis of the
agency that advanced into McDonald’s employer changed into the major turning
factor inside the history of McDonald’s. McDonald’s is now the most important
and first-rate-regarded food service retailer.
At present around 57 million of people are serve by McDonald everyday
worldwide. McDonald’s operates around 30,000 service stores in 119 countries
worldwide. McDonald’s employs currently around 4lac employees. In 1957, Motto
of McDonald’s was coined i.e. QSCV(Quality, Service, Cleanliness and Value).
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McDonald's Motto of QSCV (Quality, Service, Cleanliness and Value) is the
guiding force in the back of its provider to the customers in India. By following its
motto of being sensitive to cultural preferences and local food, first country in the
McDonald's system was India, where they served non-pork products and non-beef.
In India more than 70 percent of Menu has been developed with entire segregation
of non-vegetarian and vegetarian products exactly from a food processing plant to
a point of a serving the consumers.[ CITATION mcd17 \l 1033 ]
McDonald's dedication to its Indian customers is evident even in improvement of
special sauces that use local spices and Chilies. The mayonnaise and all different
sauces are egg-much less. McDonald's additionally pioneered the status quo of
bloodless chain throughout India which allows hold freshness and vitamins in
every product.
McDonald's ordinary scrumptious menu includes wide variety of merchandise like
Mc Aloo tikki, filet-o-fish, highly spiced range, bird Mcgril, Mcveggie, Veg pizza
Mcpuff, bird Mc nuggets, fries, wraps, an assortment of sundaes, tender serve and
refreshing liquids consisting of ice tea & cold espresso with splendid service in a
vibrant and lively ambience, for which McDonald's is known international.
McDonald's had in addition strengthened the branded affordability mantra via the
introduction of the Happy price menu which starts off evolved at Just Rs. 25 most
effective. Maintaining pace with the customer evolving desires McDonald's
additionally features on models that power convenience and create unique
differentiation like Mcdelivery, drive thru, breakfast menu, high ways and
prolonged hours. (Currently, available in select cities)at gift, there are 300
McDonald's restaurants in India.

INTRODUCTION TO THE TOPIC

Marketing environment scanning is monitoring andanalysis of wholemarket.

Environment scanning can be defined as the study and interpretation of external
sources to find out factors that impact an organization, business, an industry or
even whole market. The primary intention is to identify and consult resources
outside the enterprise. Despite the fact that these resources are uncontrollable from
the commercial enterprise' perspective, it is critical to don't forget them in
selection-making processes.
One popular technique of environmental scanning is SWOT analysis. Each letter
stands, S for strengths, W for weaknesses, O for Opportunities, and T for threats.
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The strengths and opportunities are factors within the organization, and the
weaknesses and threats come from out of doors of the company.A complete
strategic planning technique starts offevolved from full-size scanning of outside
and inner environment of an company to recognize the relative positioning of the
firm in the enterprise environment or industry it operates in and to pick out the
relative strengths and weaknesses of the employer. Businesses must constantly
make adjustments inside the way they control their company to hold up with the
competition and to meet the clients.
Factors influencing the marketplace may be categorized under 5 distinct factors:
1. Demographic
2. Economic
3. Technological
4. Political
5. Socio - Cultural

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 Economical

Technological Demographical

Factors help
to scan the
Market

Political Cultural

Demographic factors: are related to converting nature and volume of population.

It follows how humans are accomplishing themselves inside the new international,
growing according to capita profits, urban migration, ethnically diverse towns and
mega towns. Those are a few demographic factors organizations are tracking. For
instance, a rustic like India and china are showing highest attention of youngster’s
population wherein as japan is displaying high quantity of retired employees.
Consequently, demand and consumption of product may also be extraordinary.
Economic factors: deals with feature like shopping strength parity, level of
income, level of saving and rate of interest among many other. As an example,
international locations with a high earnings degree are more likely to have the
funds for luxurious objects compare to a low earnings degree us of a. financial
savings degree and hobby fee determine the borrowing strength as well as paying
ability of consumer.

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Technological Factors: like online internet and net connectivity are converting the
face of enterprise. Nowadays Businessman tries to do business online rather than
offline.Medicine and Science are also one of the partof this technology factors.
Project for the organization is to keep up with new innovations and new offer
products, which are not out of date.
Political surroundings: is likewise converting with an increasing number of
markets based totally device in preference to the socialist gadget or system.
Furthermore, regulatory necessities like,investment policy,competition policy, tax
policy, and so on. Companies sought to look at before
Cultural environment: deals with elements like opinion people have in the
direction of themselves, others, company and society in general. Human beings
have grown to be greater eco conscious, they contributing one or many reasons
they can relate to, need company to be responsible for their movement and are
seeking to open society with meaningful co-life.[ CITATION Sca \l 1033 ]

Marketing Scanning with respect to Strategic planning with McDonald’s

Demographic Factor
McDonald’s uses demographic factors approach with age as a parameter. The
primary goals of segments are youth, the younger families living in urban areas
and children. if they take kids into attention, kids are greater attracted toward the
toys and meals which are delicious and attractive,in these day’s youngsters prefers
such locations for their fun and enjoyment & the urban households choose
McDonald’s on diverse occasion like birthday party, treat to their kids and so forth.
Children are on top most stage in FMCG buy associated with meals products. To
attract kids McDonald’s has satisfied meal in which they present one toy on every
happy meal to kids, there are also toys ranging which starts from hot wheels to
numerous Walt Disney characters. Example of the today's range is the toys of the
film Madagas vehicle. For this, they've a tie-up with Walt Disney. At several
outlets, it also offers facilities like “Place for playing” where kids can play video
games etc. This method is targeting in making McDonald’s fun region wherein you
may revel in both gambling and eating. This additionally helps McDonald’s to
draw the younger urban households who wanted to spend some nice time, at the
same time as their youngsters can enjoy each movement of McDonald’s to target
the teenagers and young. Young people, McDonald’s has priced several
Merchandise aggressively, keeping in thoughts the price sensitivity of this target
customer.

Economic Factors
In conjunction with speed, McDonald’s additionally competes via offering charges
at a low price. cost to offer excessive pleasant merchandise at low price requires
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efficient tactics in the course of the entire McDonald’s. Another time, this purpose
is constructed into their vision statement after they claim that we are able to be the
maximum efficient issuer so that we can be the quality fee to the most people.
McDonald’s contains numerous ways of approaching to offer super price to its
customers. one approach that the business enterprise has employed for decades is
the value meal. the fee meal allows customers to buy a sandwich, French fries, and
beverage at a discount when bought collectively. McDonald’s eating places offer
from seven to twelve fee meals, each for his or her lunch menu and breakfast
menu. inflation has a totally huge impact on McDonald’s as expenses are
increasing and those have low earnings this leads them to put money into
reasonably-priced merchandise, McDonald’s has to boom its costs because it's
resources are getting extra high priced.
The economic crises has additionally affected McDonald’s due to the fact human
beings are saving greater and spending less and as McDonald’s is not considered as
a want and those have many other reasonably-priced substitutes which decreased
sale of McDonald’s. As McDonald’s has an excessive unemployment rate it isn't
always difficult to find employees because McDonald’s has a schooling middle
that trains them and applicants don't need to have unique abilities or certificates to
work at McDonald’s.

Technological Factors
McDonald’s is also utilizing new technologies to their advantage. The present day
McDonald’s website give choice to consumers by lets a consumer choose any
combo of items given in the menu. They also placed the given items within the
online bag, and conduct a dietary evaluation on their selections.McDonalds uses
different new technology in preparing cooking the food to lessen the fats and ldl
cholesterol in nutrients. It has additionally brought new technology to lessen prices
(waste) and increase manufacturing 'performance'
Social-Cultural Factors
McDonalds had first studied the conduct of the Indian consumer and provided a
very extraordinary menu compared to its menu presented in international market. It
removed beef, muttons and pork burgers from menu. India is one &only country in
the world where McDonalds vegetarian menu is served.Even the cheese andsauces
used are 100% vegetarian in India.McDonalds constantly innovates its existing and
new products according to the changing possibilities and tastes of its clients.
The recent instance is theintroducing of the Chicken Mc nuggets and latest
introduction ofchicken style is Chicken Maharaja Mac. As McDonalds function in
lots of special international locations it has to think about their ideals and
traditions.It introduces products except the standard menu which suits to every
culture.McDonalds cares about the various factors that can offend every culture for
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example in USA the red color in McDonalds logo’s considered as evil
consequently McDonalds has introduced logo in the BLUE color.
Political Factors:
The political environment has impact on its industry considered by McDonald’s.
This aspect of analysis refers to effects of macro-environment or governmental
action on the businesses. In McDonald’s case, the political external factors are as a
follows:
 Growing international exchange agreements (opportunity)
 Pending tax reform (opportunity)
 Evolving public fitness policies (threat and opportunity)
McDonald’s has the possibility to expand its commercial enterprise based totally
on advanced international alternate, that can enhance worldwide supply chains.
McDonald’s additionally has the possibility to reform its strategies, techniques and
practices to reduce the effect of tax at the commercial enterprise without any
violating the law. However, public fitness policy an increasing number of has a
tendency to deter people from consuming rapid ingredients from corporations like
McDonald’s. Although, Organization has the great opportunity to cope with this
external issue by using enhancing the healthfulness of its products. On this
component of evaluation of McDonald’s, the political external factors present
opportunities that outweigh threats.
All these types of elements define any marketplace surroundings and organizations
need to recognize them earlier than growing their advertising
approach[ CITATION GRE17 \l 1033 ]

McDonald’s Vision Statement

McDonald’s vision statement is as follows: “Our overall vision is for McDonald’s
to become a modern, progressive burger company delivering a contemporary
customer experience. Modern is about getting the brand to where we need to be
today and progressive is about doing what it takes to be the McDonald’s our
customers will expect tomorrow. To realize this commitment, we are focused on
delivering great tasting, high-quality food to our customers and providing a world-
class experience that makes them feel welcome and valued.”
McDonald’s vision statement covers a number of business aspects. The company
implies innovation to satisfy current market needs, as stated in the “contemporary
customer experience” component of the vision statement. Also, McDonald’s
characterizes its products in the “great-tasting, high-quality food” component of
the vision statement. In saying “modern, progressive” McDonald’s shows that its
vision statement defines the kind of business approach it uses for organizational
development. A strategic objective linked to this vision statement is the innovation

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of McDonald’s goods and services to match consumer preferences and
expectations.

McDonald’s Mission Statement

McDonald’s mission statement is officially stated as follows: “Our mission is to be
our customers’ favorite place and way to eat & drink. We’re dedicated to being a
great place for our people to work; to being a strong, positive presence in your
community; and to delivering the quality, service, cleanliness and value our
customers have come to expect from the Golden Arches – a symbol that’s trusted
around the world.”
In its mission statement, McDonald’s includes details about its market position, as
shown in the “favorite place and way to eat & drink” component. Also, the human
resource management approach is highlighted in the “great place for our people to
work” component. In addition, McDonald’s mission statement covers its corporate
social responsibility position in the “positive presence in your community” part.
The rest of the mission statement indicates McDonald’s brand image and the
character of its products. A strategic objective based on this mission statement is
global brand development to strengthen the company’s ability to attract customers
and investors. A related financial objective based on McDonald’s mission
statement is cost minimization to optimize value.

Tagline – “I’m Lovin’ It”.

McDonald's (NYSE: MCD) has been outperforming the market this year and
recently set a new all-time high. A SWOT analysis – a look at strengths,
weaknesses, opportunities and threats – can help assess whether the fast food giant
can keep the growth on a high-calorie diet.

Strengths:
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 McDonald's has successfully rolled out new items like coffees, smoothies,
and Angus burgers, expanding the range of menu choices.
 With a strong product offering, the company has grown income throughout
the recession, notching strong increases in same-store sales.
 Operations are spread around the world, meaning the company is not
exposed to just once currency or economy.
 Even trading near its highs, McDonald's serves up sizzling dividend
yields that top the 10-year Treasury. The yield comes with a side order of annual
dividend hikes dating back to 1976. The annual dividend payment has gone from
55 cents per share in 2005 to $2.20 this year.
 Brand Equity…world-wide
 42% of US fast-food hamburger business
 Consistency of food
 Successful items: Fries, Happy Meal, Big Mac, Egg McMuffin, Promotions
 Overseas market
Weaknesses:
 It will be harder and harder to find prime locations to build a set of golden
arches. The U.S. is saturated with its restaurants, so growth will have to occur
internationally, posing potential cultural challenges.
 While the annual dividend hikes are likely to continue, the dividend growth
rate has been slowing and will probably continue to slow or level off.
 Declining market share
 Weak product development
 Disgruntled franchisees
 Slowed revenue and income growth

 Opportunities:
 There are opportunities for new restaurants outside the United States, and
McDonald's has been taking advantage of them. China is a great opportunity for
the company, as is much of Asia.
 Low interest rates provide cheap capital for growth. In addition to dollar-
denominated debt, McDonald's recently became the first foreign company to issue
yuan-denominated bonds in Hong Kong.
 Only serving 1% of the world’s population
 Joint ventures with retailers (e.g. supermarkets).
 Consolidation of retailers likely, so better locations for franchisees.

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  Respond to social changes – by innovation within healthier lifestyle foods.
Its move into hot baguettes and healthier snacks (fruit) has supported its
new positioning.
 Use of CRM, database marketing to more accurately market to its
consumer target groups. It could identify likely customers (based on
modelling and profiles of shoppers) and prevent brand switching
 Strengthen its value proposition and offering, to encourage customers who
visit coffee shops into McDonalds.
 The new “formats”, McCafe, having Wifi internet links should help in
attracting segments. Also installing children’s play-parks and its focus on
educating consumers about health, fitness.
 Continued focus on corporate social responsibility, reducing the impact on
the environment and community linkages.
 International expansion into emerging markets of China and India


Threats:
 Governments are considering regulations targeting fast food.
 McDonald's faces competition from strong peers such as recent 11 O'Clock
Stock pick Yum! Brands (NYSE: YUM) and Burger King
 New product rollouts often have to go head-to-head with established players
like Starbucks coffee or Jamba smoothies.
 Commodity price increases could increase costs while a weak economy
limits the ability to pass the price hikes through to consumers.
 Mature/overstored industry
 More health-conscious consumers
 Changing demographic

Marketing Strategy of McDonald’s – McDonald’s Marketing Strategy

McDonald’s fast food chains have spread in more than 100 countries across the
world with its 80% of the outlets based on a franchise model. The informal eating
out segment (IEO) facing intense competition & stagnant growth, even in this
market McDonald is able to attract customers to its 36000+ stores.
Its success in the segment depends upon its capability to act quickly on
shifting consumer demographics, taste & preferences a Segmentation,
targeting, positioning in the Marketing strategy of McDonald’s –

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McDonald’s uses a mix of demographic, geographic & psychographic variables to
segment the market, at the same time considering changing taste & preferences.
Due to change in consumption pattern, consumer buying behaviour & rise in
income level, fast food chain McDonald has started using differentiated targeting
strategy to cater to the customer evolving needs.
Since its inception, McDonald’s has evolved itself from using a product-
based positioning to using Value-based positioning strategy and trends in
innovative supply chain management.

Marketing Mix of McDonalds

The marketing mix of Mcdonalds consists of the various elements in the marketing
mix which form the core of a company’s marketing system and hence helps to
achieve marketing objectives. The marketing mix of Mcdonalds discusses the 4p’s
of the leading burger chain across India offering the tastiest burgers and french
fries.

Product in the Marketing mix of McDonalds

McDonald’s places considerable emphasis on developing a menu which customers
want. Market research establishes exactly what this is. However, customers’
requirements change over time. In order to meet these changes, McDonald’s has
introduced new products and phased out old ones, and will continue to do so. Care
is taken not to adversely affect the sales of one choice by introducing a new choice,
which will cannibalise sales from the existing one (trade off). McDonald’s knows
that items on its menu will vary in popularity.
Their ability to generate profits will vary at different points in their cycle. In India
McDonalds has a diversified product range focussing more on the vegetarian
products as most consumers in India are primarily vegetarian. The happy meal for
the children is a great seller among others.

Price in the Marketing mix of McDonalds

The customer’s perception of value is an important determinant of the price
charged. Customers draw their own mental picture of what a product is worth. A
product is more than a physical item, it also has psychological connotations for the
customer. The danger of using low price as a marketing tool is that the customer
may feel that quality is being compromised. It is important when deciding on price
to be fully aware of the brand and its integrity.
In India McDonalds classifies its products into 2 categories namely the branded
affordability (BA) and branded core value products (BCV). The BCV products
mainly include the McVeggie and McChicken burgers and the BA products

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include McAloo tikki and Chicken McGrill burgers. This has been done to satisfy
consumerswhich different price perceptions.

Promotions in the Marketing mix of McDonalds

The promotions aspect of the marketing mix covers all types of marketing
communications One of the methods employed is advertising, Advertising is
conducted on TV, radio, in cinema, online, using poster sites and in the press for
example in newspapers and magazines.
Other promotional methods include sales promotions, point of sale display,
merchandising, direct mail, loyalty schemes, door drops, etc. The skill in marketing
communications is to develop a campaign which uses several of these methods in a
way that provides the most effective results.
For example, TV advertising makes people aware of a food item and press
advertising provides more detail. Hence, McDonalds uses many above the line
marketing methods. This may be supported by in-store promotions to get people to
try the product and a collectable promotional device to encourage them to keep on
buying the item.
At McDonalds the prime focus is on targeting children. In happy meals too which
are targeted at children small toys are given along with the meal. Apart from this,
various schemes for winning prices by way of lucky draws and scratch cards are
given when an order is placed on the various meal combos.

Place in the Marketing mix of McDonalds

Place, as an element of the marketing mix, is not just about the physical location
or distribution points for products. It encompasses the management of a range of
processes involved in bringing products to the end consumer. McDonald’s outlets
are very evenly spread throughout the cities making them very accessible. Drive in
and drive through options make McDonald’s products further convenient to the
consumers.

People in the Marketing mix of McDonalds

The employees in Mc Donalds have a standard uniform and Mc Donalds specially
focuses on friendly and prompt service to its customers from their employees. All
new franchise’s are trained in customer management and in keeping the customers
happy.
They are also trained for handling negative responses from customers and what to
do when there is high pressure on the outlet. Such kind of training is especially
useful when the employee has no job experience and is working in a McDonalds
outlet which is bound to get crowded on weekends or festivals.

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Process in the Marketing mix if McDonalds
The food manufacturing process at Mc Donalds is completely transparent i.e. the
whole process is visible to the customers. In fact, the fast food joint allows its
customers to view and judge the hygienic standards at Mc Donalds. The customers
are invited to check the ingredients used in food.

Physical evidence in the Marketing mix of McDonalds

McDonalds focuses on clean and hygienic interiors of is outlets and at the same
time the exteriors are attractive and the fast food joint maintains a proper decorum
at its joints

Distribution strategy in the Marketing strategy of McDonald’s –

McDonald’s have several franchised set up to cater to the growing needs of the
different segments and that’s what helps them to survive in the
competitive environment. McDonald’s takeaways are specifically targeted for the
customers offering counter service or drive-thru service. In some of the countries,
it is known as McDrive.
Macafee is specifically designed as in café format targeting the young generation
who want to enjoy an outing with their friends.
The company owned quality centres at a strategic location and integrated supply
chain with the help of 3rd party logistics is helping the company in making
the products available to the consumers across the service delivery channel. Also to
make this kind of store set-ups works properly, TAT (Turnaround time) and
backend integration are necessary which is practised by McDonald’s.
Brand equity in the Marketing strategy of McDonald’s –Extensive branding
through tie-up & sponsorships with well-known entities like FIFA, Olympics
has helped the company in increasing its visibility in the International market.
Presence across different channels for advertising has enabled the company in
creating top of mind awareness.

Competitive analysis in the Marketing strategy of McDonald’s –

Fast food companies are giving head-on competition to McDonald’s but due to its
focused marketing strategies highlighting quality, taste, menu, nutrition & several
other health-related benefits company is able to create sustainable competitive
advantage

Market analysis in the Marketing strategy of McDonald’s –

The fast food market is flooded with MNC’s and local food joints eating each other
market shares. McDonald’s with 36000+ outlets all over the world is fighting hard
with other popular chains like Subway, KFC, and Dominos etc.
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Customer analysis in the Marketing strategy of McDonald’s –
Customers of McDonald’s are majorly in the age group of 15-40 years who love
outing with their friends, family and loved ones. McDonald’s have attracted the
younger population who are outgoing and are in schools or college.

CONCLUSION
McDonald’s Corporation shows that there are so many opportunities for their
business growth. McDonald’s can capitalize on technological techniques to
enhance performance, efficiency and productivity. They can improve product’s
quality to address to political and socio-cultural external factors about fitness or
health. This analysis additionally suggests that the organization need to address a
number of huge threats.

REFERENCE
 mcdonalds history. (n.d.). Retrieved march 22, 2017, from mcdonalds.com:
http://corporate.mcdonalds.com/mcd/our_company/mcdonalds-history.html
 mcdonaldsindia. (n.d.). Retrieved march 22, 2017, from
www.mcdonaldsindia.net: http://www.mcdonaldsindia.net/mcdonalds-
india.aspx

 Scanning the market environment. (n.d.). marketing management, pp.

 http://www.managementstudyguide.com/scanning-market-environment.htm.
 GREENSPAN, R. (2017, feb 3). business management . McDonald’s
PESTEL/PESTLE Analysis & Recommendations.
 http://panmore.com/mcdonalds-vision-statement-mission-statement-analysis
 https://www.fool.com/investing/general/2010/08/25/mcdonalds-strengths-
weaknesses-opportunities-threa.aspx

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