Service overview of mcdonalds in morocco

In Morocco Many people say YES to home delivery of McDonalds .As this service is not available in Morocco, but it exists in other countries in the world where the home delivery is part of the culture.

McDonald’s delivery (Mc Delivery) service allows to Moroccan people having their meals delivered home without going out.

In order To introduce the Mc Delivery to the Moroccan market it is necessary to create a Marketing Plan. As it is used for strategic purposes, because it obliges the McDonald’s company to periodically review the status of a service on the Moroccan market and predicting its evolution, as well as anticipate the actions of competitors. As It serves primarily to assess the competitive advantages of a product and adjust periodically in light of the results. Then, the marketing plan serves to coordinate efforts and monitor individual action.

The realization of the marketing plan leads to a better adaptation of the company to its markets.

This plan requires the company to consider new possibilities of developing products and markets, to recognize changes in the environment, and promotes optimum utilization of financial, human and material resources. The marketing plan is the planning tool essential to any business.

This plan helps to assess the needs of our customers and offer them products or services that fit their responds; and also get them to know about the characteristics of Mc Delivery in the Moroccan market. Moreover, to define the distribution channels which allow us to offer this service to our customers in Morocco.

As the mission statement of McDonald’s is: ‘Promote Diversity and Inclusion among our Employees, Owner/Operator’s and Suppliers who represent the diverse populations McDonald’s serves around the globe.’

Source: http://www.ybarra-cgm.com/page/839324.html accessed on 31 December 2010. (see in the bibliography N°1)

(2005). what is McDonald’s mission. Available: McDonald’s mission is: ‘Promote Diversity and Inclusion among our Employees, Owner/Operator’s and Suppliers who represent the diverse populations McDonald’s serves around the globe.’. Last accessed 31 December 2010.

And for the mission statement of Mc delivery service that is new to the Moroccan market is : ”To provide an excellent home delivery by reliable and consistent quality of service in a way of ensuring the food’s safety and dependability to our McDonald’s customers, Whether they are active or unable to come to our restaurant , this service makes their life easier and come to them.”

SITUATION ANALYSES

MCDONALD’S is the largest fast food restaurant chain in the world. As it owns one of the most respected and recognized brand. It operates more than 30,000 restaurants over 119 countries on the six continents.

All MCDONALDS’s brands have a strong competencies in all restaurants operations, marketing and franchising, retailing and real estate , as well as, they are involved in social responsibility area. This organization has extremely changed the eating habits of both Americans and foreigners, due to its foods and services. MCDONALD’S provides high quality and healthy food with a balance between lifestyle, diet and health. It is always working on reducing preservatives and colorants amounts, in products. As foods, they sell sandwiches, chicken, salads, snack and sides, breakfast, ice cream, soft drinks, Mc café, shakes and desserts. MCDONALD’S co seeks new products quality that satisfy customers regarding their both taste and value expectations.

Every restaurant of MCDONALD’S delivers high quality of services and cleanliness to its customers, and give them the opportunity to put their complaints properly in order to meet their needs successfully, as well as this organization facilitates the way of getting the customers’ orders without getting out of their cars through the MC drive. In addition, McDonald’s encompasses play place for children in every restaurant. Moreover, this fast food restaurant allows to its job applicants with the relevant skills and performance for work whatever his or her nationality, race, gender, color, disability or marital status is. And also provides training program for staff.

The financial situation of the mcdonald’s restaurant is as follow

In millions dollars

2001

2000

1999

1998

1997

1996

1995

1994

1993

1992

1991

Franchised Sales

$24,83

24,463

23,830

22,330

20,863

19,969

19,123

17,146

15,756

14,474

12,959

Company-operated Sales

$11,04

10,467

9,512

8,895

8,136

7,571

6,863

5,793

5,157

5,103

4,908

Affiliated Sales

$4,752

5,251

5,149

4,754

4,639

4,272

3,928

3,048

2,674

2,308

2,061

Total System Wide Sales

$40,63

40,181

38,491

35,979

33,638

31,812

29,914

25,987

23,587

21,885

19,928

Total Revenues

$14,87

14,243

13,259

12,421

11,409

10,687

9,795

8,321

7,408

7,133

6,695

Operating Income

$2,697

3,330

3,320

2,762

2,808

2,633

2,601

2,241

1,984

1,862

1,679

Income before Taxes

$2,230

2,882

2,884

2,307

2,407

2,251

2,169

1,887

1,676

1,448

1,299

Net Income

$1,637

1,977

1,948

1,550

1,642

1,573

1,427

1,223

1,083

959

860

Cash provided by operations

$2,688

2,751

3,009

2,766

2,442

2,461

2,296

1,926

1,680

1,426

1,423

Capital Expenditures

$1,906

1,945

1,868

1,879

2,111

2,375

2,064

1,539

1,317

1,087

1,129

Free Cash Flow

$782

806

1,141

887

331

86

232

387

363

339

294

Treasury Stock Purchases

1.090 $

2,002

933

1,162

765

605

321

500

628

92

117

Financial Position at year end

Total assets

$22,53

21,684

20,983

19,784

18,242

17,386

15,415

13,592

12,035

11,681

11,349

Total debt

$8,918

8,474

7,252

7,043

6,463

5,523

4,836

4,351

3,713

3,857

4,615

Total shareholders’equity

$9,488

9,204

9,609

9,465

8,852

8,718

7,861

6,885

6,274

5,892

4,835

Shares outstanding (in millions)

1,280.70

1,304.90

1,350.80

1,356.20

1,371.40

1,389.20

1,399.50

1,387.40

1,414.70

1,454.10

1,434.50

Per Common Share

Net Income

$1.27

1.49

1.44

1.14

1.17

1.11

0.99

0.84

0.73

0.65

0.59

Net-Income Diluted

$1.25

1.46

1.39

1.1

1.15

1.08

0.97

0.82

0.71

0.63

0.57

Dividend Declared

$0.23

0.22

0.2

0.18

0.16

0.15

0.13

0.12

0.11

0.1

0.19

Market price at year end

$26.47

34 34

40.31

38.41

23.88

22.69

22.56

14.63

14.25

12.19

9.5

Franchised Restaurants

17,395

16,795

15,949

15,086

14,197

13,374

12,186

10,944

9,918

9,237

8,735

Company-operated Restaurants

8,378

7,652

6,059

5,433

4,887

4,294

3,783

3,216

2,733

2,551

2,547

Affiliated Restaurants

4,320

4,260

4,301

3,994

3,844

3,216

2,230

1,739

1,476

1,305

1,136

Total Systemwide Restaurants

30,093

28,707

26,309

24,513

22,928

20,884

18,299

15,899

14,127

13,093

12,418

Source: www.mcdonalds.com, accessed on 1 December 2011 (see bibliography N°2)

DISTRIBUTION CHANNELS

It is interesting to qualify the measure for the success of a product or service taking into account its accessibility for the consumer or the weight of its distribution channels. As example we are going to study the distribution channels of McDonald’s in Casablanca.

McDonald’s Casablanca is supplied by the trade marketing Foodipex regarding all raw materials (exclusive provider), it is a direct relationship with the franchisee and the franchiser and subject to control by the latter on standards and procedures of McDonald’s.

Suppliers are nationally accredited by the franchisor, and are providing some materials such as: bread, milk, cake, chips, coffee, packaging for sandwiches and so on…

And for the international suppliers, are through the franchisor, they provide most of the raw materials (meat, sauce for the sandwich, etc …)

PORTER OFFIVE FORCES ANALYSIS FOR MCDONALD’S:

POLITICAL:

Regulation at the level of food imports: response to various crises, and various countries have introduced, by governments, regulations on imports (eg import of beef in France following the mad cow crisis).

The quotas of import are imposed by governments and sometimes embargoes can greatly affect the market of fast food whose main product is definitely the burger.

Policies on the prevention against disease and obesity.

ECONOMICAL:

Strong demand in the global market.

SOCIO-CULTURAL:

Changing the global lifestyle.

The Willingness of speed at meals.

Social mobility.

Each market actor needs to incorporate fast food in its strategy as a factor in dietetics. Indeed, people today seem to dwell more on a daily balanced eating to prevent diseases such as diabetes …

Poor image of fast food: the market participants are identified with “junk food dispensers. This perception by some consumers can be a bottleneck to run, especially with the rise of political movements of today “anti junk food”.

Strong dependence on consuming habits: it is difficult to change the consumers’ habits, including food, once they are established in a given country.

TECHNOLOGICAL:

The democratization of the Internet, consumers can have a variety of information on politics, business strategies. They can also check the locations and new products that market participants offer.

ENVIRONMENTAL:

The message related to the environmental protection provided by governments or by some political parties have more impact today, forcing companies to integrate this issue in their both policy development and overall strategy. Thus, in the same way, the market for fast food should consider this factor in their politics in order to make such savings in natural resources, and to reduce waste for example by reducing the weight and package size, or replace disposables with reusable materials.

Problems of GMOs.

LEGAL:

Problem of Monopolies

PESTEL factors are undeniably the most significant factor in the socio-cultural (as it is to impose a certain mode of eating habits for consumers) the political factor (since the contract is monitored and regulated) and the ecological factor of increasing importance in recent years and tends to take more in the near future.

.

McDonalds SWOT Analysis

Strengths

It has a strong global presence and is considered as a market leader in both the domestic as well as the international markets.

It is a global brand that owns 31,000 restaurants serving in 120 countries. Of these 31,000 restaurants at least14,000 restaurants are situated in the US.

It uses economies of scale for reducing the cost, as its huge expansion diversifies the overall risk involved with the economic performance.

They own an active children’s charity by the name of Ronald McDonald House’.

It takes steps in adjusting the Ingredients and product offerings in order to comply with the upgraded health standards deemed necessary by the USDA.

It earns revenue by fast food sales as well as a property investor and a franchiser of restaurants.

 It has a firm real estate portfolio.

It has branded menu items i-e Big Mac, Chicken McNuggets, which further promote McDonalds.

It is recognized as one of the world’s most recognized logos.

It is recognized as a socially responsible and community oriented firm.

It adapts to the cultural differences regarding the region where the restaurant is seted up.

It has located itself in major airports, cities, highways, tourist locations, theme parks.

It has an efficient food preparation style that follows the process in a systematic way.

It takes food safety with an extreme care.

It was the first to provide the customers about nutrition facts.

It is a global organization.

Weaknesses

It uses advertising that mostly targets children.

High employee turn-over.

It has yet to accomplish going on the trend of organic food.

Price competition with the competitors resulting in low revenue.

Opportunities

We bring up a new service to the Moroccan market which is McDonald’s home delivery. As it is an incredible opportunity for our customers to get their meals in 30 min without going out from their homes.

Threats:

Other home delivery competitors such us pizza- hut, KFC and so many others.

The recession negatively impacts the holding position of the firm regarding its revenue streams, even though they are quite diversified.

MARKET STRATEGIES:

Target market: our Mc delivery service targets people who live nearby and can not reach McDonald’s to buy Mc meals, as well as for physically incapacitated and disabled people who can not come to our fast food restaurant for medical reasons. Moreover, Mc delivery facilitates to officials who are in the workplace and have a short break to get their meals on time without leaving their organizations. This service is also doable for people who don’t like to wait in the queue of McDonalds’ cashiers and prefer their burgers to be delivered home.

MARKETING MIX:

PRODUCT: , Our product is a service, we are going to focus on expanding our Mc delivery in all mcdonald’s of morocco and we will use the policy of standardization to our service which is considered as a part of the overall strategy it consists of a progressive fabrication in all the cities in morocco of identical services, in other words, to deliver the meals home in the same motorcycle design, the same drivers’ uniforms , with the same period of time which 30 min in a good conditions of temperature to preserve Mc meals in a single package. more than that we will consist of speed service by keeping track to our environment in a way of using recycled packaging.

PRICE: The main objectives of McDonald’s for this new service home delivery, is to cover all the Moroccan market and make this service accessible to all mcdonald’s customers in morocco, that is why it always tries to reduce its costs in order to control it margins and works on setting the right prices that fit both customers and the organization. We will set the price depending on the quantity and the price of the meals that the customers’ order, which means that the for an order less than 100dhs the customers will pay 10 dhs per delivery. Whereas, if the quantity ordered is above than 100dhs then we offer the Mc delivery service for free so as to attract more customers to buy our meals.

PLACE: We will delegate and divide tasks to our drivers in terms of place, meaning each one will be responsible for a specific area, such as one driver for 2 mars avenue, another for Abdelmoumen avenue and so on… this service will be used in every McDonald’s in Morocco. As this restaurant applies a standardized approach to explore Mc home delivery service properly.

PROMOTION: To achieve maximum standardization of Mc delivery service, we will rely heavily on advertising. the budget to advertise this service will reach nearly one million dirhams in morocco. As we are going to use bill boards, e-advertising, media, flyers and so on…Basically, this fast food restaurant uses the clown character Ronald to position itself, so in here we are going to use the same personage driving a motorcycle in a purpose of bringing the identification to our Mc delivery and keeping its image in the memory of customers.

PEOPLE: we will hire 5 active drivers in each McDonald’s and train them to do exactly the same gestures strictly defined, and timed tests; the Standardization is displayed as a selling point. McDonald’s believes that a smile is more loyal to a customer than being the best food seller in the world.

MARKETING OBJECTIVES (20 Marks)

3.1 Segmentation

3.2 Targeting

3.3 Positioning

Perceptual mapping

MARKETING OBJECTIVES

SEGMENTATION:

The reference market Mc Home is located on the food delivery.

TARGETING:

Targets of Mc home delivery are traditional targets of McDonald’s restaurants

Indeed, we target consumers who used to have their meals delivered at home. Our core target is young people 17 to 30 years but also households who used to eat McDonald’s menu with their children They can now do at home we also target disabled people and consumers who have medical reasons and cannot leave home.

POSITIONING:

Toward our customers We Will Benefit From The strong brand image of McDonald’s since the sign is in a top of mind of Moroccan customers concerning fast food. Indeed, the restaurant is now worldwide, and it benefits from its strong reputation. That is why our position is already over our consumers.

However, we attempt to adapt our position in that we are moving increasingly towards a trend of sustainable development and environmentally friendly.

SOURCE: http://www.scribd.com/doc/31198587/Exemple-de-Livraison-McDO (Accessed on 24th January 2011) see bibliography N° 3)

PERCEPTUAL MAPPING

HIGH QUALITY

MCDONALD’S PIZZA HUT

KFC

DOMINOS PIZZA

LOW PRICE HIGH PRICE

QUICK

LOW QUALITY

CONCLUSION

Mc Donald’s restaurant is in over 120 countries, and generates annual record profits.

The company has an unquestionable success even if it remains for many a symbol of globalization.

Although largely based in Morocco, home delivery has never been a part of the range of services for Mc Donald’s. Mc Home delivery offers the chain of food the possibility of increasing the sales volume and also to build customers’ loyalty.

Mc Home will come directly to compete actors that are already present in the segment and it is expected to experience and live an incredible success. Indeed, following our market research, we have adapted best to the Moroccan market and hope that it can quickly grow in the minds of consumers. We will absolutely try to avoid that McDonald’s is perceived once again as a harmful. Indeed, with the emergence of obesity, the service would be easily criticized since the consumer can eat McDonalds without leaving home and therefore without the slightest physical effort. That’s why We will use the current strategy of McDonald’s, which focuses on healthy food and sustainable development. Therefore, special care of our communication campaign as poor consumer perception could lead to failure of implantation of Mc delivery; but we always take precautions of

that.