Research paper in Mcdonald’s Philippines Essay

I. Executive SummaryCompanyMcDonalds Philippines is a auxiliary of the Philippine-owned Golden Arches Development Corporation. The first Filipino McDonalds to open for demarcation was in the Morayta university districts in Manila during 1981. These days McDonalds is operating every location 150 restaurants throughout the islands of thePhilippines. Being a 100% Filipino-owned franchise all(a)ows McDonalds Philippines to be more than agile and take quicker actions, devising them an in time more competitive force in the Filipino de look ond- aliment market. McDonalds in the Philippines is owned by Filipino entrepreneur George Yang brought the brand to the coun shew in 1981 after several attempts. In the first few attempts, Yang was turned beat by the heads of McDonalds in the US saying that the Philippines was in the radio detection and ranging (for expansion) but was not yet a priority.ChallengeAccu yard and well-timed(a) demographic information is difficult to obtain in w estern economies the king to collect this precise data is even further strained when the pile is of a expanding country. With a land bea of 300,000 km2 spread over 7000 islands and a domestic population of nearly 100 million multitude, apropos and accurate demographic data requires in-depth, thorough, but quick market surveying. McDonalds Philippines has been operating in an incredibly competitive market for over 25 years. Domestic competition from the ahead(p) local fast- regimen provider Jollibee and common internationalistic rival KFC lose created an environment in which McDonalds must give-up the ghost swiftly and efficiently in order to gain market fortune and increase profitability. In order to expand effectively, McDonalds needs to go bad understand where there atomic cast 18 market gaps that can be filled. Additionally, McDonalds needs to adjudge the most up to date data to adjudicate if current stores are cannibalizing each another(prenominal)s trade area. To accomplish this McDonalds man mount upment will need detailed, porti aced demographic data of the Philippines overlaid with both theirs and competitors restaurant locations.II. Situation analytic thinking1. Product OfferingThey dispense the typical consumer wants handle burgers, spaghetti, fries, floats, ice cream, rice and chicken repasts.2. Market Analysisa. Vision, burster, and determine.Vision Una sa Pamilyang Pinoy.First to respond to the fast changing needs of the Filipino family. First choice when it come ups to food and dining experience.First mention as the ideal employer and socially responsible partnership. First to respond to the changing modus vivendi of the Filipino family.MissionTo serve the Filipino community by providing great-tasting food and the most relevant customer delight experience.ValuesCustomer-Driven Conscious and measured action to exceed the needs and requirements both internal and external customers Malasakit lodge in for the customer, em ployees, co-workers, business partners, community and company. Integrity Being up sound in voice and action, upholding the standards of virtuosos profession and position through honesty, responsibility, and trust Teamwork work as ONE towards achieving a common goalExcellence day to day drive to deliver THE BEST resultsb. Target MarketSEGMENTING BY AGE1. School- mount up Children From toddler to early grade school.2. Tweens (8-12) Biggest influencer over family purchases.3. Generation Y or Millenials (13-19) Commonly referred to as teens or young adult.3. Generation X Born between 1966 and 1981. Family-oriented, well educated, and optimistic.Has a stable career, ready to come down4. Baby Boomers Born between 1946 and 1965. Lucrative segment.Diverse segment that generally tends to value health and flavour of life.5. Seniors Also called the gray or silver market.Elder state, retirees, etc.c. Market TrendsGreen Dining is a trend that we would corresponding to assist, the mechanic s are the customers get the option on bringing their own container for drinks, utensils, and bags for take out, this will deduct a check amount to their bill. With this trend we hope to reduce the waste produced by the food strands and as well as the expenses. The uniqueness of our happy repast box to curl many kids to buy collectible toys.d. Market developing RateMcDonalds Philippines has a current market share of 14% but with some aggressive marketing scheme and a modest bit of adjustments we estimate that the market shares of McDonalds Philippines will boost from 14% to 25% within the following years.CompetitionSWOT AnalysisStrengthsWeaknesses low-cost carrefoursGood locationExcellent customer serviceService gang punctualityQuality of foodCustomer assessmentOpportunitiesThreatsUnique intersection offeringsMedia exposureEffective progress schemesCustomer SafetyHealth certain consumersEnvironmentalistsh. PEST AnalysisPolitical FactorsEconomic FactorsThe change of tax pass judgment in the countryThe raise of lower limit wage rates indecorous allocation of tax fundsInflation rateUnemployment rate function rateSocio-cultural FactorsTechnological FactorsConsumer behaviorInternetSocial Mediai. Market advantageousness on that point are certain factors that affect market profitability, first are Buyer Power. We can safely say that the harvestings of McDonalds are typical favorables, so when the buyers income increases, their purchases of McDonalds food products will similarly increase. Next we have the Supplier Power if we were to purchase raw materials in bulk then we could obtain a trade discount, helping us decrease our expenses and lower the prices of our products,making it more affordable to the consumers. Third we have Barriers to Entry we can decrease the number of competitors by being more efficient in our production, like what I have stated forward regarding the trade discount. This is one way to be efficient and if the company were to develo p innovative products or improve the quality of their product and services, then it would be hard for another firm to enter the market.j. Industry Cost twistFirm Infrastructure Market Strategy, Business StrategyHuman election Management Product Development, Staff recruitment and training Procurement Equipment, piercing materialsInbound Logistics-Pricing-Transportation-FuelOperations-Storage maintenance-Production of food and beverages-Sanitation of facilitiesOutbound Logistics-Delivery-Drive throughgross revenue and Marketing-Promos-Discounts-EventsService-Online delivery-Feedbacks form consumers through social mediak. dispersal ChannelsOur other means of selling the product is through make selling in events like concerts, carnivals, festivals, etc. Exclusive Distribution and we alike see the hypothesis of putting up McDonalds food trucks at areas where McDonalds is unavailable to see the possibility of putting up a restaurantin those areas depending on the gross revenue an d revenues generated.l. Key Success FactorsOur other means of selling the product is through direct selling in events like concerts, carnivals, festivals, etc. We in addition see the possibility of putting up McDonalds food trucks at areas where McDonalds is unavailable to see the possibility of putting up a restaurant in those areas depending on the sales and revenues generated.m. Marketing Mix Strategy (4ps)After analyzing the market, finding the key factor, cigaret segment and understanding the market pauperization, every company needs to come up with an offers or much(prenominal) type of plan, that speed up the ontogeny of the company. For which McDonalds uses 5ps of marketing mix which are as follows1. Product2. postal service3. Price4. forwarding1. ProductProducts include that, how the company should design, manufacture the product so that it enhance the customer experience?Product is the physical product or services offered by the company to its customers. McDonalds in cludes certain aspects of its product such as packaging, desirability, looks, etc. This consists of both tangible and non-tangible aspects of the product and services. And it has purposely unplowed its product depth and product width limited. McDonalds continuously innovates its products according to the changing preferences and tastes of its customers. The recent example is the introduction of the Mc Spicy poulet burger and current introduction of chicken style burger. McDonalds serves the world some of its positron emission tomography food like the Big Mac, Big n Tasty, Quarter stamp with Cheese, Cheeseburger, French Fries, Egg McMuffin, Apple Pie and Sundae. This is what we are famous for, globally and locally. In the Philippines, we are also happy to serve local favorites likeChicken McDo, Burger McDo and McSpaghetti. These favorites were specially made to cater to the unique Filipino palate.2. PlaceThe place consists of distribution channels and outlets of the company. They used to franchise McDonalds near Jollibee food chain so that there is a competition between two food arrange. Usually they put it up near universities and inside the mal and near vacation hotspots. Now McDonalds have also started offering internet facilities at their outlets, on with music system through computers, not the music but the music which preferred by young generation in order to attract them.3. PriceThey released new strategy of acquire products for the consumers. They called it the BFF BURGER BUNDLES and BFFCHICKENBUNDLES .4. PromotionSetting The Promotion MixAn advertisement is targeted to attract the masses it reaches to large number of multitude at a time. Advertising is one of the most key excessivelyls for promotion which had various ways of advertisement in that advertisement through billboards and media are often used by any of the business enterprise. Consumers mostly recognize goods which are advertised goods, as they assume it is more rightful. Due to clear-cut features of advertisement McDonalds also hold the hand of advertising. There are 3 main objectives of advertising for McDonalds are to make people aware of an item, incur positive about it and remember it. The right message has to be communicated to the right people through the right media. McDonalds does its promotion through television commercials, billboards and at one time they used online advertisement. They use print ads and the television programmes are also an important marketing medium for promotion.III. Marketing Strategies1. Business Strategya. Franchise staffAs per franchise model of McDonalds Only 15% of the total number of restaurants are owned by the company. The remaining 85% is operated by franchisees. The company follows all the framework of training and monitoring of its franchises to ensure that they achieve good QUALITY SERVICE, CLEANLINESS AND VALUE FOR THE MONEY offered by the company to its customers.b. Product unanimityBy developing a sophist icated supplier networked operation and distribution system, the company has been able to achieve consistent product taste and quality across the nations of the world.c. Act like a retailer think like a brandMcDonalds focuses not only on a delivering sales for the immediate present, but also protecting its long reliableise brand reputation.2. Segmentation, targeting and PositioningMcDonalds uses demographic segmentation strategy with age as the parameter. The main target segments are children into consideration, children are more attracted towards toys and dainty meals including teenagers such their place foe their entertainment and the urban families select McDonalds on various occasion like birthday party, to treat children. To also for the seniors to enjoy their delicious and yummy burgers.IV. Industrial Analysisa. Threats Of New Entrants doable competing firms are likely to increase because society nowadays is searching for affordable food. Most of the people today refer to affordable but flavorsome that can deal with their customer satisfaction, so the rate of new entrants is pass judgment to increase.b. Bargaining Power Of BuyersThere is a low bargaining actor for the buyers because the company will implyfix but reasonable pricing. The buyers oddity is surely a great factor in buying rate of the products but, it wont be a reason for the decreasing chances of the products price. The increase price of the product will vary upon the market demand and as well as the supplies.c. Bargaining Power Of SuppliersSuppliers tend to bargain on the price of the resources needed like, chicken, beef, potatoes, rice etc. This happens when the prices of the commodities goes up, the company tends to increase their products and services, as a result the companys which they usually supply magnate switch to a different supplier who offers the product and their services at a lower price. There is a low bargaining index for the suppliers because the resources needed f or production are abundantly available in the market.d. emulationMcDonalds is one of the most famous fast food chains in the world compared to its local competitors. They are also one of the leading fast food chains that donate a portion of their sales to charity and create creative TVCs that are family and friend oriented.e. SubstitutesThere are a lot of substitutes for McDonalds like Jollibee, Burger king, KFC, and Wendys to name a few, but despite the variety of substitutes this is no sign of flunk but a sign of strength. McDonalds is also adapting to the fast forward motion of technology like adapting an online delivery portal and social experiments which most people are fond of.V. Customer Analysisa. Surveyb. Profilea. Age all agesb. Class A, B and Cc. Sex both Males and Femalesd. fosterage All levels of education including those who didnt have aneducation e. Income Those with minimum earnings and abovef. Places Cities and ProvincesVI. Competitor Analysisa. Competitor Prof ileTony Tan and his family founded Jollibee with its depleted beginnings as an Ice Cream Parlor, which later grew into an emerging global brand. At the heart of its success is a family-oriented approach to personnel management, making Jollibee one of the most admired employers in the region with an Employer of the Year Award from the military force Management Association of the Philippines, Best Employer in the Philippines Award from Hewitt Associated and a take in 20 Employer in Asia citation from the Asian Wall Street Journal. ValuesCustomer FocusExcellenceRespect for the IndividualTeamworkSpirit of Family and playing periodHumility to Listen and LearnHonesty and IntegrityFrugalityMissionTo serve great tasting food, bringing the joy of eating to everyone. fount http//www.jollibee.com.ph/about-us/b. Competing Product FeaturesProduct FeatureMcDonaldsJollibeeValue MealsAvailable chance(a)Available Monday-FridayDelivery TimeDepends on the orderGuaranteed 30 transactionsBurgersO ptional Double PattiesSingle Pattyc. Target Market pieceAge all agesClass A, B and CSex Both Males and FemalesEducation All levels of education including those who didnt have an education Income Those with minimum wages and abovePlaces Cities and ProvincesFilipino Kids ages 3-10 years old Teens ages 11-21 years old. domiciliate be male/female. Filipino Families even the senior citizen. Social Classes C, D, and E Looking for budget-friendly or quick meals.Target Audience The Traditional Family and all communication materials focus on the importance of family values, making Jollibee the number one family fast food chain in the Philippines.d. Positioning strategyEnsuring full(prenominal) traffic needs an emphasis on store location and localization Jollibee in the minds of the consumer as a place that they would enjoy eating fast food. This entails proper branding and positioning of the service offered. Jollibee also projected itself as world class and not a local brand. The servic e that is offered should be consistent over all Jollibee stores, however this might be a problem as the division has been slimmed recently and resources might be stretched too far.e. Marketing Mix StrategyProduct- they continue to innovate their products which are the rice meals and strengthen its weaknesses to ensure that their clients will be satisfied with their products and continue buying it. They try to make price bundling.Place- they locate their stores near places where it tends to be displace with people, granting them accessibility to their food chains, they also put up restaurants near existence areas like churches, bus stations, hospitals, parks, etc. Just like in SM-Dasmarinas they have 3 branches of Jollibees, every mall has Jollibee like hypermarkets, supermarkets and near plazas.Price- they try to price their products as low as possible, they also provided a value meal that can go head to head with the value meal offered by McDonalds. They also started selling thei r products in ala Carte just like McDonaldsPromotions- Jollibee does its best to hire artists that are currently in demand like Julia baretto, Sarah Geronimo, Carmina Villaruel, etc. They also mix it up with some real life stories to give inspiration to their viewers casting regular people to make it look more legitimate. Consumer Promotion pull promotional activities designated to encourage demand by end like Banded/bundled packs, Continuity Program, prior Discount Coupons, Internet Advertising like sky scrapers, sponsorship ads.f. Differential receipts AnalysisThe advantage of Jollibee over McDonalds is first its a Filipino Brand. Which means the very aggregate values of Jollibee is whatever the core values of a regular Filipino, like Family. Another would be taste, since it is a local brand there is no need to localize it, making their products stays as it is. Whatever they are doing, they are doing it right.