Story about Mcdonalds

Mcdonalds I Introduction II Differentiation III Product Differentiation A. Variety B. Quality C. Taste D. Size E. Price IV Service differentiation a.

Ordering ease 1. At Mcdonalds 2. Drive through b. Delivery 1. A home delivery c.

Miscellaneous services V Personnel Differentiation d. Competence e. Courtesy f. Credibility g.

Reliability h. Responsiveness i.Communication VI Image Differentiation A. Symbol B.

Media C. Atmosphere Conclusion I. Introduction: We have come to a time where the competitions between firms is getting more aggressive than ever before therefore every company has to have a certain weapon to defend itself or to gain new markets.This project is about the differentiation tools used by the McDonlads Company and how it uses it resources to gain a competitive advantage and to be the leader in the market II. Differentiation It is the act of designing a set of meaningful differences top distinguish the company's offering from competitors offering.

The number of differentiation opportunities varies with the type of industry: 1.volume industry: one in which companies can gain on only a few but rather large, competitive advantage. In the construction-equipment industry, a company can strive for the low cost position or the highly differentiated position and win big on either basis. Profitability is correlated with company size and Market share.2.stalemated industry: one in which the are a few potential competitive advantages and each is small.

Profitability is unrelated to the market share 3.fragmented industry (applied on our case):one which companies face many opportunities for differentiation, but each opportunity for competitive advantage is small. Both small and large companies profitable or unprofitable. 4.

specialized industry: one in which companies face many differentiation opportunities, and each differentiation can have a high payoff, some small companies can be profitable as some large companies. III.Product differentiation: Physical products vary in their potential for differentiation .at one extreme we find product that allow little variation ex:(chicken) .At the other extreme products there are products which are capable of high differentiation :(cars). A.

Variety It is how many products the company produces and for how long does have to be in the market before we can introduce new ones. It depends on how long the products are in the market. In a new market, we prefer not to have too much in order to be consistent with the public knowledge.Few products at first is always a better strategy.

I.e.: Big, quarter, pounder, filet o fish. Eventually you introduce more products (Mc royal, Mc feats, Double cheeseburger after a certain period when the people are familiar with the old product (Happy meal) B. Quality It is the quality of the product and what are the steps taken by the firm to have the maximum quality using the available resources When you start with few products this increase the quality Quality requires several needs. Purchasing a product has to be done in a very organized way and it has to pass all the health procedures.

We conduct a training program for all the crew in the kitchen (back area) so we can make sure that they have good sanity and the have the knowledge of the all the required measurements. All this makes sure that quality is food C. Taste Is how the consumer perceive the product even he likes it or not and if he things that it needs improvement or not We get the right ingredients and the right portions of ingredients either locally made or imported to make sure that we are serving the right product and the same taste expected worldwide In some countries after a few years (never at the beginning) we try to offer special product with local taste (spicy chicken & burger in Egypt, Japan with Japanese sauce, China with sweat and sour.) We try to adapt to the local taste in few items and to keep our international flavor as well D. Size Either the company has a size standard and how does it respect it or It doesn't have a standard and how does It act due to this situation We have standard size internationally and we have to respect it, but we do have bigger size (Big Mac) we try to offer the force flavor (local taste) in a bigger sandwich to give more value to the consumer (Upsize your Combo). Size is very important, The more the client pay in a Big size the more it is profitable as we save more on paper cost.

The more the size is bigger the more we save cost. E. Price Price is he selling value of the product whether it is cheep or expensive. This is one of the most important aspects because due to it the customer my change his mind We make a Price sensitivity study (PSS) We conduct interviews and we try to know at which price the consumer is willing to pay.

We come with an average price for every product and if it is profitable, we try to market it When we put the price we look at our coast (food and paper) the more we sell the more we save cost.The purchasing dept. buys in volume to cut down the coast to enable us to: A. Make more profit B. Adjust the price Competition is a very important aspect in price. Since we are the Market leaders, we start the price and usually the market follows.

Advertising is an important factor to make others follow The International average of food coat at Mcdonald is 33 % In Egypt the coast reach's 45% IV. Service differentiation When the physical product cannot easily be differentiated, the key to competitive success may lie in adding valued services and improving their quality. A. Ordering Ease This refers to how easy it is for the customer to place on order with the company. 1.

At McDonalds We give the best at McDonalds for a customer to take a product in the right timing. The product must be ready, this needs a lot of experience .The employee behind the counter has to see (make an evaluation) what is the product the most wanted so he can tell the Back area (the Kitchen) to increase a certain product (if he made a wrong evaluations the product will be ...