Mcdonalds Slideshare 130416154359 Phpapp02
Mcdonalds Slideshare 130416154359 Phpapp02
PROJECT
PROJECT REPORT AND MARKET
SURVEY OF MCDONALD’S
CLASS : XII-E
CBSE ROLL NO. :
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2 FAST FOOD www.wikipedia.org
RESTAURANT
AN INTRODUCTION
3 MCDONALD’S www.wikipedia.org
AN INTRODUCTION
4 HISTORY OF www.wikipedia.org
MCDONALD’S www.macdonalds.com
6 CORPORATE www.wikipedia.org
OVERVIEW
10 QUESTIONNAIRE www.slideshare.net
www.scribd.com
11 SURVEY RESULT
ANALYSIS
-
12 THE TOP FIVE www.infobarrel.com
REASONS WHY
MCDONALD’S IS SO
POPULAR
13 CONCLUSION
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14 BIBLIOGRAPHY
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ACKNOWLEDGEMENT
I have taken efforts in this project. However, it would not have been
possible without the kind support and help of many individuals and
organizations. I would like to extend my sincere thanks to all of them.
I am highly indebted to the Teacher in Charge Mr. James Thomas for his
guidance and constant supervision as well as for providing necessary
information regarding the project & also for his support in completing the
project.
I would like to express my gratitude towards my parents for their kind co-
operation and encouragement which helped me in the completion of this
project.
Early history
In 1937, Patrick McDonald opened "The Airdrome", an octagonal
food stand, on Huntington Drive in Monrovia, California. In 1940,
his two sons, Maurice and Richard ("Mac" and " Dick"), moved the
entire building to 1398 North E Streets in San Bernardino,
California. The restaurant was renamed "McDonald's Famous
Barbeque" and served over forty barbequed items.
In 1953, the McDonald brothers began to franchise their successful
restaurant, starting in Phoenix, Arizona and Downey and California.
The McDonald brothers created Speedee to symbolize the quick and
efficient service system that they had devised. Downey's Speedee is
one of only a few remaining an d Downey’s restaurant is the oldest
operating McDonald's in the world.
Recognizing the historic and nostalgic value of the intact 1953
structure, the McDonald's Corporation acquired the store in 1990
and rehabilitated it to a modern but nearly original co ndition.
In 1954, Ray Kroc, suggested that they franchise their restaurants
throughout the country. He got the rights to set up McDonald's
restaurants throughout the country, except in a handful of territories
in California and Arizona already licensed by the McDonald
brothers.
Kroc's first McDonald's restaurant opened in Des Plaines, Illinois,
near Chicago, on April 15, 1955, the same day that Kroc
incorporated his company as McDonald's Systems, Inc. (which he
would later rename McDonald's Corporation).
By 1958, there were 34 restaurants. In 1959, however, Kroc opened
68 new restaurants, bringing the total to 102 locations.
Phenomenal growth in the 1960s and 1970s
In 1960, the McDonald's advertising campaign "Look for the Golden
Arches" gave sales a big boost In 1962, McDonald's introduced its
now world-famous Golden Arches logo. A year later, the company
sold its billionth hamburger and introdu ced Ronald McDonald, a
red-haired clown with particular appeal to children.
In the early 1960s, McDonald's really began to take off. In 1961
Kroc bought out the McDonald brothe rs for $2.7 million, aiming at
making McDonald's the number one fast -food chain in the country.
In 1965, McDonald's Corporation went public. In 1985, McDonald's
Corporation became one of the 30 companies that make up the Dow
Jones Industrial Average.
McDonald's success in the 1960s was in large part due to the
company's skilful marketing and flexible response to customer
demand. In 1968 the now legendar y Big Mac made its debut, and in
1969 McDonald's sold its five billionth hamburger. Two years later,
McDonald's restaurants had reached all 50 states.
In 1968, McDonald's opened its 1,000th re staurant; Kroc became
chairman and remained CEO until 1973.
By the late 1960s, many of the candy -striped Golden Arches stores
had been modified with enclosed walk -up order areas and limited
indoor seating. By June 1969, " mansard roof" building design
featuring indoor seating became the standard for McDonald's
restaurants.
The company pioneered breakfast fast food with the introduction of
the Egg McMuffin in 1972 and five years later McDonald's added a
full breakfast line to the menu.
In 1975, McDonald's opened its first drive-thru window in Sierra
Vista, Arizona. This service gave Americans a fast, convenient way
to procure a quick meal. Drive-thru sales eventually accounted for
more than half of McDonald's systemwide sales.
Surviving the 1980s "Burger Wars"
In the late 1970s, competition from other hamburger chains such
as Burger King and Wendy's began to intensify. A period of
aggressive advertising campaigns and price slashing in the early
1980s became known as the "burger wars." Burger King suggested
to customers: "have it your way"; Wendy's offered itself as the
"fresh alternative". But McDonald's sales and market share
continued to grow.
During the 1980s, McDonald's further diversified its menu to suit
changing consumer tastes. The company introduced
the McChicken in 1980. It proved to be a sales disappointment and
was replaced with series of different chicken sandwiches a year
later. Chicken McNuggets were invented in 1979. By the end of
1983, McDonald's was the second largest retailer of chicken in the
world. In 1985, ready-to-eat salads were introduced to lure more
health-conscious consumers. The 1980s were the fastest -paced
decade yet. Efficiency, combined with an expanded menu, continued
to draw customers. McDonald's, already entrenched in the suburbs,
began to focus on urban centres and introduced new architectural
styles.
Despite experts' claims that the fast -food industry was saturated,
McDonald's continued to expand. The first generation raised on
restaurant food had grown up. Eating out had become a habit rather
than a break in the routine, and McDonald's relentless marketing
continued to improve sales.
McDonald's growth in the United States was mirrored by its
stunning growth abroad. By 1991, 37 percent of system wide sales
came from restaurants outside the United States. McDonald's
opened its first foreign restaurant in British Columbia, Canada, in
1967. By the early 1990s the company had established itself in 58
foreign countries and operated more than 3,600 restaurants outside
the United States, through wholly owned subsidiaries, joint
ventures, and franchise agreements. Its strongest foreign markets
were Japan, Canada, Germany, Great Britain, Australia, and France.
Braille menus were introduced in 1979, and picture menus in 1988.
Experiments were conducted to find new technology and to research
new markets to keep McDonald's in front of its competition. New
locations such as hospitals and military bases were tapped as sites
for new restaurants.
1990s: Growing pains
The 10,000th unit was opened in April 1988.It took McDonald's 33
years to open its first 10,000 restaurants. Incredibly, the company
reached the 20,000-restaurant mark in only eight more years, in
mid-1996. By the end of 1997 the total had surpassed 23,000, and
by that time McDonald's was opening 2,000 new restaurants each
year, an average of one every five hours.
In 1993, a new region was added to the empire when the first
McDonald's in the Middle opened in Tel Aviv, Israel.
As the company entered new markets, it showed increasing
flexibility with respect to local food preferences and customs. In
Israel, for example, the first kosher McDonald's opened in a
Jerusalem suburb in 1995. In Arab countries, the restaurant chain
used "Halal" menus.
McDonald's entered India for the first time in 1996, where it
offered a Big Mac made with lamb called the Maharaja Mac.
Overall, the company derived increasing percentages of its revenue
and income from outside the Un ited States. In 1992 about two -
thirds of systemwide sales came from U.S. McDonald's, but by 1997
that figure was down to about 51 percent. Similarly, the operating
income numbers showed a reduction from about 60 percent derived
from the United States in 19 92 to 42.5 percent in 1997.
The company made several notable blunders in the United States in
the 1990s.
A seemingly weakened McDonald's was the object of a Burger King
offensive when the rival fast-food maker launched the Big
King sandwich, a Big Mac clone. Meanwhile, internal taste tests
revealed that customers preferred the fare at Wendy's and Burger
King.
In response to these difficulties, McDonald's drastically cut back on
its U.S. expansion. Plans to open hundreds of smaller restaurants
in Wal-Mart and gasoline stations were abandoned because test sites
did not meet targeted goals.
2010s
In July 2011, McDonald's announced that their largest restaurant in
the world will be built on the 2012 London Olympics site. The
restaurant will contain over 1,500 seats and is half the length of an
American Football field. Over 470 staff will be employed serving
on average (during the 2012 Olympics) 100,000 portions of fries,
50,000 Big Macs and 30,000 Milkshakes. This restaurant will
overshadow the current largest McDonald's in the world in Moscow,
Russia. In January 2012, the company announced revenue for 2011
reached an all-time high of $27 billion, and that 2400 restaurants
would be updated and 1300 new ones opened worldwide.
LIST OF PRODUCTS
Burgers
All beef patties are seasoned, consisting primarily of salt and black
pepper.
Big Mac: Along with the Quarter Pounder with cheese, this is one
of the two McDonald's signature menu items, introduced in 1967 as
a response to the flagship burger at Big Boy restaurants. Two 1.6-
ounce ground beef patties, special Big Mac sauce, shredded iceberg
lettuce, cheese, two gherkin slices, and re-hydrated onions on a
toasted sesame seed bun, with an additional middle bun separating
both beef patties.
Big N' Tasty: The Big N' Tasty consists of a seasoned quarter -
pound beef patty with ketchup, mayonnaise, slivered onions, two
dill pickle slices, leaf lettuce, and one tomato slice on a sesame
seed bun.
Quarter Pounder: Along with the Big Mac, this is one of the two
McDonald's signature menu items. 4 -ounce of ground beef patty
with ketchup, mustard, slivered onions, two gherkin slices, and two
slices of cheese.
Chicken Fajita: Chicken, cheese, red and green bell peppers, and
diced onions in a flour tortilla. Comes with Picante sauce packets
on request, which is available in mild and spicy.
McDonald's sells French fries as its primary side order. They also
sell potato wedges, a type o f French fry that is thick cut and wedge
shaped, fried onion pieces and onion rings.
CORPORATE OVERVIEW
Facts and figures
McDonald's restaurants are found in 119 countries and territories
around the world and serve 58 million customers each day.
McDonald’s operates over 31,000 restaurants worldwide, employing
more than 1.5 million people. The companies also operate other
restaurant brands, such as Piles Café.
Focusing on its core brand, McDonald's began divesting itself of
other chains it had acquired during the 1990s. The company owned
a majority stake in Chipotle Mexican Grill until October 2006,
when McDonald's fully divested from Chipotle through a stock
exchange. Until December 2003, it also owned Donatos Pizza. On
August 27, 2007, McDonald's sold Boston Market to Sun Capital
Partners. Notably, McDonald's has increased shareholder dividends
for 25 consecutive years, making it one of the S&P 500 Dividend
Aristocrats.
Types of restaurants
Most standalone McDonald's restaurants offer both counter service
and drive-through service, with indoor and sometimes outdoor
seating. Drive-Thru, Auto-Mac, Pay and Drive, or "McDrive" as it
is known in many countries, often has separate stations for placing,
paying for, and picking up orders, though the latter two steps are
frequently combined; it was first introduced in Arizona in 1975,
following the lead of other fast -food chains. The first such
restaurant in Britain opened at Fallowfield, Manchester in 1986.
In some countries, "McDrive" locations near highways offer no
counter service or seating. In contrast, locations in high -density city
neighbourhoods often omit drive-through service. There are also a
few locations, located mostly in downtown districts that offer Walk -
Thru service in place of Drive-Thru.
To accommodate the current trend for high quality coffee and the
popularity of coffee shops in general, McDonald's
introduced McCafé, a café-style accompaniment to McDonald's
restaurants in the style of Starbucks. McCafé is a concept created
by McDonald's Australia, starting with Melbourne in 1993. Today,
most McDonald's in Australia have McCafés located within the
existing McDonald's restaurant. In Tasmania, there are McCafés in
every store, with the rest of the states quickly following suit. After
upgrading to the new McCafé look and feel, some Australian stores
have noticed up to a 60% increase in sales. As of the end of 2003
there were over 600 McCafés worldwide.
Some locations are connected to gas stations/convenience
stores, while others called McExpress have limited seating and/or
menu or may be located in a shopping mall. Other McDonald's are
located in Wal-Mart stores. McStop is a location targeted at
truckers and travellers which may have services found at truck
stops.
Since 1997, the only Kosher McDonald's in the world that is not
in Israel is located in the "Abasto de Buenos Aires", Argentina.
Global operations
McDonald's has become emblematic of globalization, sometimes
referred to as the "McDonaldization" of society.
The Economist newspaper uses the "Big Mac Index": the
comparison of a Big Mac's cost in various world currencies can be
used to informally judge these currencies' purchasing power parity.
Norway has the most expensive Big Mac in the world as of J uly
2011, while the country with the least expensive Big Mac is India .
Some observers have suggested that the company should be given
credit for increasing the standard of service in markets that it
enters. A group of anthropologists in a study entitled Golden Arches
East looked at the impact McDonald's had on East Asia, and Hong
Kong in particular.
When it opened in Hong Kong in 1975, McDonald's was the first
restaurant to consistently offer clean restrooms, driving customers
to demand the same of other restaurants and institutions.
McDonald's has taken to partnering up with Sinopec, the second
largest oil company in the People's Republic of China, as it takes
advantage of the country's growing use of personal vehicles by
opening numerous drive-thru restaurants.
McDonald's has opened a McDonald's restaurant and McCa fé on the
underground premises of the French fine arts museum, the Louvre.
The company stated it will open vegetarian -only restaurants in India
by mid-2013.
Redesign
In 2006, McDonald's introduced its "Forever Young" brand by
redesigning all of its restaurants, the first major redesign since the
1970s. McDonald's has invested $1 billion to redesign nearly all of
the 14,000 restaurants by 2015.
The goal of the redesign is to be more like a coffee shop, similar to
Starbucks. The design includes wooden tables, faux -leather chairs,
and muted colours; the red is mut ed to terra cotta, the yellow was
turned golden for a more "sunny" look, and olive and sage green
were also added.
To warm up its look, the restaurants have less plastic and more
brick and wood, with modern hanging lights to produce a softer
glow.
Many restaurants now feature free Wi-Fi and flat screen TVs. Other
upgrades include double drive-thrus, flat roofs instead of the angled
red roofs, and replacing fibre glass with wood. Also, instead of the
familiar golden arches, the restaurants now feature "semi -swooshes"
(half of a golden arch), similar to the Nike swoosh.
Business model
McDonald's Corporation earns revenue as an investor in properties,
a franchiser of restaurants, and an operator of restaurants.
Approximately 15% of McDonald's restaurants are owned and
operated by McDonald's Corporation directly. The remainder are
operated by others through a variety of franchise agreements and
joint ventures.
The McDonald's Corporation's business model is slightly different
from that of most other fast-food chains. In addition to
ordinary franchise fees and marketing fees, which are calculated as
a percentage of sales, McDonald's may also collect rent, which may
also be calculated on the basis of sales.
As a condition of many franchise agreements, which vary by
contract, age, country, and location, the Corporation may own or
lease the properties on which McDonald's franchises are located. In
most, if not all cases, the franchisee does not own the location of its
restaurants.
The United Kingdom and Ireland business model is different than
the U.S, in that fewer than 30% of restaurants are franchised, with
the majority under the ownership of the company. McDonald's
trains its franchisees and others at Hamburger University in Oak
Brook, Illinois.
In other countries, McDonald's restaurants are operated by joint
ventures of McDonald's Corporation and other, local entities or
governments.
As a matter of policy, McDonald's does not make dire ct sales of
food or materials to franchisees, instead organizing the supply of
food and materials to restaurants through approved third party
logistics operators.
According to Fast Food Nation by Eric Schlosser, nearly one in
eight workers in the U.S. have at some time been employed by
McDonald's. It also states that McDonald's is the largest private
operator of playgrounds in the U.S., as well as the single largest
purchaser of beef, pork, potatoes, and apples. The selection of
meats McDonald's uses varies with the culture of the host country.
MARKETING MIX
The marketing mix of a company consists of the various elements as
follows which form the core of a company’s marketing system and
hence helps to achieve marketing objectives. The marketing mix of
McDonald’s is as follows:-
Other than the main four elements mentioned above there are a
few other elements too in the marketing mix, which are as
follows:-
Weakness
The weakness that hits the list of employee turnover rate. Every
year many of their employees are fired out of the restaurant.
Discounts given on every food item may help them gain more
customers.
They can go for a joint venture with the retailers they work with .
Threats
Emerging competition of similar outlets is becoming a problem
for McDonalds.
PRICE/VOLUME High Low Close % Price Chg % Price Chg vs. Mkt. Avg. Daily Vol Total Vol
1 Week - - - 0.0 101 54,041 66,217
4 Weeks 87.43 83.31 84.74 2.7 101 57,129 856,929
13 Weeks 94.16 83.31 91.02 -4.4 98 61,288 3,554,700
26 Weeks 94.16 83.31 87.75 -0.8 93 59,419 7,189,758
52 Weeks 102.22 83.31 98.03 -11.2 79 59,272 14,521,666
YTD 102.22 83.31 - -13.2 77 59,774 13,807,695
Moving Average 5-Days 10-Days 10-Weeks 30-Weeks 200-Days Beta (60-Mnth) Beta (36-Mnth)
86.61 86.31 88.25 89.31 91.74 0.39 0.31
SOLVENCY RATIOS
SHORT-TERM SOLVENCY RATIOS
(LIQUIDITY)
Net Working Capital Ratio 2.71
Current Ratio 1.3
Quick Ratio (Acid Test) 1.0
Liquidity Ratio (Cash) 0.67
Receivables Turnover 21.5
Cash-Flow pS 6.77
LT Debt/Equity 0.84
http://www.aboutmcdonalds.com/content/dam/AboutMcDonalds/Inve
stors/investors-2010-annual-report.pdf
QUESTIONNAIRE (Attn: Attach minimum 5 copies)
Name: ____________________ age: ________
2. Which of the following fast food chain do you visit the most?
Subway McDonald’s KFC Pizza Hut Burger King
10. Do you think McDonald’s will be triumphant over all its competitors?
Yes Maybe Haven’t Thought About That Never
Thank You!!
SURVEY RESPONSE ANALYSIS
Alternate days
Weekends
Once in a month
Subway
MacDonald's
KFC
Pizza Hut
Burger King
Mac Veggie
Big Mac
Chicken Burger
Maharaj Mac
Morning
Noon
Evening
Night
Long queues
Wrong orders
Hygienic problems
Other problems
No problems
Product variety
Hygiene
Ambience
Quick service
Location
Other
THE TOP FIVE REASONS WHY
MCDONALD’S IS SO POPULAR
1. The System
This is the first thing that makes McDonald's so successful, by
having an effective and efficient system in place, which exploits the
minimum wage labour available, in the form of young teenagers who
are just looking to make some cash or pick up fundamental job skills.
2. Convenience
The second reason why McDonald's is so popular is because it's
everywhere. There a McDonald's at every corner of the map, at every
major shopping centre, district, highway, freeway, every place which
attracts even, remotely more than 10 people, will have a McDonald's
restaurant not too far from them. McDonald's is having the best Real
Estate locations around the world which makes it so popular around
the globe.
4. The Menu
McDonald's has one of the most diverse menus, targeting all ages
from little kids to old pensioners, and everyone else in between.
There's Big Macs for the big kids and junior burgers for the little. The
menu's versatility is accentuated when they introduced the "healthy
tick" concept, which target those people who wants to watch
what they eat (even though it doesn't make sense to go to a fast food
restaurant to eat healthy).
5. Consistency
The last reason is, McDonald's is so successful because of its
consistency. The expectations that we have about everything
surrounding the store are fulfilled in almost every store nationwide,
worldwide. So everybody knows what they're getting into before they
come to McDonald's, and by being so consistent, it has a solid
reputation to uphold.
CONCLUSION
What started as a simple food stand on Huntington drive, California
in 1937, through the ages have become a billion Dollar corporation
and the world’s second largest fast -food chain. When analysed, one
would understand that McDonald’s had a stable growth in the past
years.
Through this project report and market survey we saw the how
McDonald’s was formed, its history and the present position. We
also its list of various products offered and the corporate profile.
Through the marketing mix, we saw how they make use of their
product, price, place, promotion mixes. SWOT a nalysis showed us
the strengths and weakness of McDonald’s as well as the
opportunities and threats they have got.
Thank You!!
BIBLIOGRAPHY
www.google.com
www.wikipedia.org
www.macdonalds.com
www.slideshare.net
www.scribd.com
www.marketing91.com
www.infobarrel.com
www.aboutmacdonalds.com
answers.yahoo.com
talkfinanceonline.com
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Attn: Pictures on the next page!!
Pictures to be attached
Attn: Attach these pictures on the backside of the page
which is adjacent to the relevant page.
Logo of McDonald’s