Question

Based on prior knowledge and the prehistory of Mcdonalds Corporation -current time, conduct a market analysis. Please do not simply copy a googled answer of the Internet. Internet research is fine, but conduct the analysis in your own words. Please type the answer only, as previously I have had trouble reading bad handwriting on here in the past.

1. conduct a market analysis

2. what can you conclude?

Answer 1

MARKET ANALYSIS OF MCDONALDS

1) Introduction to the company-

• Founded in 1995
• Headquarters in Chicago, Illinois, US
• Currently 36,000 restaurants in around 120 countries.

2) Market strategy-

• Franchise Model- 80% of the outlets are franchises. Only 20% of the outlets are owned by McDonalds.

• The 7 P model-

The P's	Description
1.Product	The main product sold is a burger. Variety of burgers offered. Apart from this, other snacks like french fries, cold drinks, chicken nuggets, breakfast meals, etc are served. The company keeps introducing new products from time to time.
2. People	Friendly and efficient service offered. Employees well trained.
3.Process	High quality of food maintained The company is transparent about the ingredients used. Use of latest technologies for food processing.
4. Price	Reasonable and affordable Prices Value for money Special offers giving value for money to customers
5.Promotions	Active in promotions of its products through television and billboard advertisements. Sales Promotion through offers like Breakfast Meals and Happy Meals Special Birthday party offers for children
6. Place	Over 36,000 outlets in 120 countries Easily accessible at all times Have the facility of drive-throughs in many cities Offers Home Delivery as an option in various cities
7. Physical Evidence	High standards of services maintained along with quality food and hygiene.

3) Market Statistics-

Global Statistics	2018
Revenue	$21.03 Billion
Number of outlets	36,000
Average Number of employees	1.9 Million
Total assets	$33,840 Million
Price Per Share	$145.21 Million

4) Current market Focus Strategy-

• Maintaining a high quality of food and nutrition
• Focus on using healthier ways of food preparation like low-fat milk in milkshakes and the use of vegetable oil for frying.
• Expansion of the menu through the introduction of new products.
• Focus on positioning the brand through promotions and event sponsorships.

5) Target Market-
The target market of Mc Donalds consists of

• teenagers
• young children
• parents along with their children
• Business customers

6) Competitors-

Other burger chains like KFC, Wendy's, Burger King are the current competitors.

7) New Entrants-

Mc Donalds is an already established 'burger chain' and does not face threat from new entrants.

8) Threats-

• NGOs that have pointed out that the company offers such food which is unhealthy especially for the young generation.
• Tough competition is given by Burger King, another very successful burger chain.

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CONCLUSION

• Mc Donalds is one of the most successful and established fast food chains.
• The company makes profits every year. It is following successful strategies and is a strong company in the market.
• The company faces some threats, especially from other competitors.
• However, it has been able to maintain its position in the market even after the threats posed.

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