Competitor Analysis Company McDonald’s Philippines is a subsidiary of the Filipino-owned Golden Arches Development Corporation. The first Filipino McDonald’s to open for business was in the Moray university districts in Manila during 1 981. These days McDonald’s is operating over 150 restaurants throughout the islands of the Philippines. Being a 100% Filipino-owned franchise allows McDonald’s Philippines to be more agile and take quicker actions, making them an even more competitive force in the Filipino fast-food market.
McDonald’s in the Philippines is owned by Filipino entrepreneur George Yang brought the brand o the country in 1981 after several attempts. In the first few attempts, Yang was turned down by the heads of McDonald’s in the US saying that the Philippines was in the radar (for expansion) but was not yet a priority. Challenge Accurate and timely demographic data is difficult to obtain in western economies; the ability to collect this precise data is even further strained when the survey is of a developing country.
With a land area of 300,000 km spread over 7000 islands and a domestic population of nearly 100 million people, timely and accurate demographic data requires in-depth, thorough, UT quick market surveying. McDonald’s Philippines has been operating in an incredibly competitive market for over 25 years. Domestic competition from the leading local fast-food provider Jollied and common international rival KEF have created an environment in which McDonald’s must move swiftly and efficiently in order to gain market share and increase profitability.
In order to expand effectively, McDonald’s needs to better understand where there are market gaps that can be filled. Additionally, McDonald’s needs to have the most up to date data to determine if current stores are cannibalizing each ether’s trade area. To achieve this McDonald’s management will need detailed, segmented demographic data of the Philippines overlaid with both theirs and competitors’ restaurant locations. 1. Product Offering They serve the typical consumer wants like burgers, spaghetti, fries, floats, ice cream, rice and chicken meals. A. Vision, Mission, and Values. Vision: “Nun as Paying Pinot”.
First to respond to the fast changing needs of the Filipino family. First choice when it comes to food and dining experience. First mention as the ideal employer and socially responsible company. First to spoon to the changing lifestyle of the Filipino family. Mission: To serve the Filipino community by providing great-tasting food and the most relevant customer delight experience. Ball_Jess: Customer-Driven: Conscious and deliberate action to exceed the needs and requirements both internal and external customers; Minimalist: Concern for the customer, employees, co-workers, business partners, community and company.
Integrity: Being upright in character and action, upholding the standards of one’s profession and position through honesty, responsibility, and trust Teamwork: Working as ONE towards achieving a common goal Excellence: Today day drive to deliver THE BEST results SEGMENTING BY AGE 1 . School-Age Children ; From toddler to early grade school. 2. Teens (8-12) Biggest influencer over family purchases. 3. Generation Y or Millennial (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 settle down 4. Baby Boomers ; Born between 1946 and 1965. ; Lucrative segment. Diverse segment that generally tends to value health and quality of life. 5. Seniors Also called the gray or silver market. Elder people, retirees, etc. C. Market Trends Green Dining is a trend that we would like to encourage, the mechanics are the customers get the option on bringing their own container for drinks, utensils, and bags for take out, this will deduct a corresponding amount to their bill.
With this trend we hope to reduce the waste produced by the food chains and as well as the expenses. The uniqueness of our happy meal box to attract many kids to buy collectible toys. D. Market Growth Rate McDonald’s Philippines has a current market share of 14% but with some aggressive marketing scheme and a little bit of adjustments we estimate that the market shares of McDonald’s Philippines will boost from 14% to 25% within the following years. . G. H. Strengths Weaknesses Affordable products Good location Excellent customer service Service crew punctuality Quality of food Customer assessment Opportunities The reads unique product offerings Media exposure Effective promotion schemes Customer Safety Health conscious consumers Environmentalists Political Factors Economic Factors The change of tax rates in the country The raise of minimum wage rates Improper allocation of tax funds
Inflation rate unemployment rate Employment rate Socio-cultural Factors Technological Factors Consumer behavior Internet Social Media There are certain factors that affect market profitability, first are Buyer power. We can safely say that the products of McDonald’s are normal goods, so when the buyer’s income increases, their purchases of McDonald’s food products will also 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 earlier regarding the trade discount. This is one way to be efficient and if the company were to develop innovative products or improve the quality of their product and services, then it would be hard for another firm to enter the market.
Firm Infrastructure: Market Strategy, Business Strategy Human Resource Management: Product Development, Staff recruitment and training Procurement: Equipment, Raw materials Inbound Logistics: Pricing -Transportation Operations: -Storage maintenance -Production of food and beverages -Sanitation of facilities Outbound Logistics: -Delivery -Drive through Sales and Marketing: -Promos -Discounts -Events Service: -Online delivery -Feedbacks form consumers through social media Our other means Of selling the product is through direct selling in events like concerts, carnivals, festivals, etc.
Exclusive Distribution and we also see the possibility of putting up McDonald’s food trucks at areas where McDonald’s is unavailable to see the possibility of putting up a restaurant in those areas pending on the sales and revenues generated. L. Key Success Factors Our other means of selling the product is through direct selling in events like concerts, carnivals, festivals, etc. We also see the possibility of putting up McDonald’s food trucks at areas where McDonald’s is unavailable to see the possibility of putting up a restaurant in those areas depending on the sales and revenues generated.
After analyzing the market, finding the key factor, target segment and understanding the market demand, every company needs to come up with an offers or such type of plan, that speed up the growth of the company. For which McDonald’s uses up’s of marketing mix which are as follows: 1. Product 2. Place 3. Price 4. Promotion 1. Product: Products 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.
McDonald’s includes 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 kept its product depth and product width limited. McDonald’s continuously innovates TTS products according to the changing preferences and tastes of its customers. The recent example is the introduction of the Ms Spicy Chicken burger and latest introduction of chicken style burger.
McDonald’s serves the world some of its favorite food like the Big Mac, Big n’ Tasty, Quarter Pounded with Cheese, Cheeseburger, French Fries, Egg McMullen, 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 like Chicken McCoy, Burger McCoy and Unsympathetic. These favorites were specially made to cater o the unique Filipino palate. 2. Place: The place consists Of distribution channels and outlets Of the company. They used to franchise McDonald’s near Jollied food chain so that there is a competition between two food chains.
Usually they put it up near universities and inside the mall and near vacation hotshots. Now McDonald’s have also started offering internet facilities at their outlets, along with music system through computers, not the music but the music which preferred by young generation in order to attract them. 3. Price: They released new strategy of buying products for the consumers. They called t the “OFF BURGER BUNDLES” and “FECKLESSNESS’S” . 4. Promotion: Setting The Promotion Mix An advertisement is targeted to attract the masses it reaches to large number of people at a time.
Advertising is one of the most important tools 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 perceive goods which are advertised goods, as they assume it is more rightful. Due to distinct features of advertisement McDonald’s also hold the hand of advertising. There are three main objectives f advertising for McDonald’s are to make people aware of an item, feel positive about it and remember it.
The right message has to be communicated to the right people through the right media. McDonald’s does its promotion through television commercials, billboards and now they used online advertisement. They use print ads and the television programmer are also an important marketing medium for promotion. In advance technology they us II. Marketing Strategies 1. Business Strategy a. Franchise Module As per franchise model of McDonald’s Only 15% of the total number Of restaurants are owned by the company. The remaining 85% is operated by franchisees.