McDonalds Corporation.ppt

quick serviceindustryoverview songkikimjeffohlmannadinechamseddine danawilliamsjorgedietrichjoseguzman margintrends2004burger sbigthree mcdonald 10burgerking 10 5wendy s 3mckeyfoods burgers mcdonaldssub sunvalley chicken tgwuunion mccainfoodsgbltd chips northyork sweetheartinternational ronaldmcdonaldcupsandstraws holland compare2004sales mil yum mcdonald marketshare2004burger sbigthree mcdonald 59burgerking 21wendy s 20 porter sfivecompetitiveforces entrants low moderate brandawarenessandlowercostcompetitiveadvantage requiretimeandlargecapitalinvestmentrivalry high burgerking wendy s j b areheavycompetitorspowerofsuppliers low mosthavethepurchasingpowertonegotiatelowerprices porter sfivecompetitiveforces competitiveforce threat power pricesandproductofferingarethemainsourcesofcompetitionsubstitutes low moderate trendsshowconsumerspreferhealthierandmoreexoticalternativesbuyingpower mostplayershavealowercostcompetitiveadvantage topplayersalsoachieveeconomiesofscaleviathis rivalryamongexistingcompetitors intenserivalryandcompetitionmarketshareamongexistingfast foodcompetitorsslowinggrowthrateofsalestoattractcustomers increaseadvertising pricediscount offernewproduct threatofnewentrants economiesofscaleforcenewentrantstoenteratacostdisadvantagerequirehigherfixedcoststoenterexistingmarkethavestrongcustomerloyaltywillingtodefendnewentrantswithpricediscountingandadvertising threatofsubstituteproducts thereare numerousrestaurantsandothereatingalternatives avarietyofhigh quality reasonablypricedeatingalternativescustomerswitchingcostsarelow mcdonaldscorporation mcdonald shistory in1955milkshake machinesalesmanraykroctookoutafranchiseonahamburgerstoreownedbytwomcdonaldbrothers todaymcdonald sisthelargestfastfoodoperatorintheworld 50millioncustomerseveryday 12000restaurantsintheusa and30 000worldwidein119countriesthechainhasgrownbyonenewoutletevery17hoursinthelastdecade marketingstrategy globalbrandawareness goldenarches marketingalliancesglobalsponsorshipalignmentwithcountry levelmarketingactivitiesfocusedonitscustomers marketingbudget advertisingcosts inmillions 2004 619 502003 596 702002 532 30 subsidiaries bostonmarketchipotlemexicangrilldonatospizzeriabusinessnote indecember2003mcdonaldssolddonatospizzeriabusiness supplierseurope goldenwestfoods buns ketchup syrup milkshakemix mcdonald ssubsidiary swotanalysis strengthsfinancialpower mcdonald sspendsmoreonadvertisingonasinglebrandthananyotherorganization in1986acolossal 789m or6 3 ofsystemwidesales wenttoadvertising itisoneofthefivelargesttelevisionadvertisersintheus withchildrenasitsprimetarget aftersantaclaus ronaldmcdonaldisthefigurebestknowntouschildren recipeforsuccess mcdonaldsrevolutionizedthefastfoodindustry theyintroducedanewproductionprocessthatloweredlaborcosts swotanalysis weaknesses opportunities threatsweakness itispossiblethatacompanycanbecomesolargeitsaturatesthemarket opportunities becauseofitsfinancialpowermcdonaldscouldmoveintotootherindustries productsatanytime threats competitors suppliers workersunions attacksofhealthcampaigns andenvironment competitivetrendanalysis burgerking bkbackground foundedin1954secondlargestfastfoodchainworldwideglobaloperationsofthe 11 3billioncompanyburgerking restaurantsserveapproximately1 072customersperrestaurant perday orapproximately11 8millioncustomersdailyworldwidetheburgerking systememploysmorethan300 000peoplesystemwide fascinatingbkfacts today burgerkingoperatesthe 2hamburgerchain behindmcdonald s withmorethan11 200restaurantsacrosstheusandinabout55othercountriessinceitsfoundingin1955 burgerking hassoldwellover2 1billionhamburgersannually bkbrandstrategy brandimagemasculineoriented burger king notburgerqueen king thelargersizethantheaverageburgerfoodgreat tastehighqualityfunvalueportabilityslogan haveityourway customizedcustomer orienteddifferentiationfromotherfast foodcompetitors bkmarketingmixstrategy product whopper price comparewithmcdonald wendy s yum andsubway promotion stickwiththejumbosizeburger theoppositeforceagainsttherecenttrendoflowcarb place distribution bkmarketingmix product whoppersandwichfiregrilledburgerschicken fish veggiessaladsbreakfasttreatssides beverageskidsmenu bkmarketingmix price pricerange 4 8foravaluemealthevaluemealforbreakfast forexample suggestedenormousomeletsandwichretailprice 2 99 or 3 49 bkmarketingmix promotion advertisingslogan 2004 present haveityourway starwarsdeal thefast foodchain sfirstglobalpromotionburgerkingofferinglowcarb allowsubstitutionsoffrenchfrieswithsaladsandbottledwaterforsoftdrinksabigbreakfastatburgerking debutsenormousomeletsandwich burgerkingtargetaudience customerwiththesophisticatedtastebutstillneedfastfoodservicemiddleclasshouseholdwiththediscretionaryincomefamilywithkids financialpicture privatecompany hardtoobtainnumbers11 200restaurants2004sales13billion2004salesgrowth18 2 burgerkinglargestfranchises aafesamerikingaramarkc lcarrollscorp 1franchisecimm scompassdeignan kauffman hmshostnathqualitydiningsodexho marriottsydrantaoperatinggroupveteranscanteenwestwind exclusivesupplier restaurantservices inc rsi cooperativeservingburgerking restaurantownersintheunitedstates foundedin1991purchasingagentforu s burgerkingsystem swotanalysis strengthsglobalbrandequitythesecondlargestfastfoodchain 18 8 ofusfast foodhamburgerbusiness successfulitems whopper sandwichmorethan55globalmarketoperationscustomizedfastfoodservicerealestateinvestment pursuitofthebestlocationintown financialsupportfromtheparentcompany texaspacificgroup strengths 2ndlargestburgerchainbrandrecognitionandrecallover11 000locationsworldwidewhopperhashighestbrandrecognitioneconomyofscaleprovidesbuyingpoweruniqueproducttodifferentiateproduct flamebroiled customizationallowscustomerto haveityourway weaknesses decliningmarketshareself restrictedthediversificationofproductdevelopmentbecauseofstickinesstostrong burgerking brandimageweakproductdevelopmentslowedrevenueandincomegrowth weakness weareina burgerslump bkhasnootherbusinesssegmentameriking 2ndlargestfranchisefiledforchapter11 revolving doorincorporateboardroom 10ceosin14yearshighfranchiseratemakesbkvulnerabletomultipledisparatepoliciesfailuretointroducenewbrandlines3of10largestfranchisesareinchapter11lacklustermarketing internationalexpansiononlyserving1 oftheworld spopulation potentialgrowthinchina indiawithnewproductdevelopment growingdining outmarket opportunities opportunities consumershavepositiveperceptionofbrand takeadvantageofhealthyeatingtrend considernewbrandsandfranchises reducecostofentryforbkfranchiseexpandinasiamarketreduceunderperformingoutlets matureindustryfiercelycompetitiveenvironmentwithotherfranchises mcdonald withthelocalcompetitorgrowinghealth consciousconsumers lowcarbtrend thesocialissueofmcdonald s supersizeme changingdemographics rapidtransitionintotheagingsociety vulnerabilitytothefluctuationofforeignexchangeratesfromexpandingglobaloperationsunreliabilityofsupplierfortherecentcow relateddisease i e madcowdisease threats bkmarketingmix place ameriservefooddistribution itplansanorderlytransitionofdistributionservices approximately5 800burgerkingrestaurantscurrentlyservedh hfoods supplysouthtexas areaburgerking restaurantswithbeefpattiesrestaurantservices inc rsi theexclusivepurchasingagentforthevastmajorityofproductsandservicesusedbyburgerking restaurantownersintheunitedstatesandismanagerofthesystem ssupplychain bibliography corporateinformation sonicdrive in sonic america sdrive in originallytophatdrive in startedasahamburgerandrootbeerstandin1953 sonicisthelargestchainofdrive inrestaurantsintheunitedstatesandmexico withmorethan1millioncustomersadaysonichas3000drive inscoasttocoast sonicmarketingstrategy multi layeredgrowthstrategy targetingearningspershareofapproximately20 fortheyearendingseptember2005 additionofdrive insincreasingmediaexpendituretoboostbrandawarenessacceleratingfranchisedevelopmentandascendingroyaltyrate sonicmarketingstrategy highlydifferentiatedconcept throughpersonalizedcarhopservice andavarietyofmenuchoices acceleratedexpansionprogramopening167newfranchisesin2004opening188newdrive insin2004planningtoopen185drive insin2005 sonicmarketingstrategy solidsalestrendssalesincreaseof13 in2004 and6 5 samestoresalessalesincreaseof18 in2005 and6 8 samestoresales sonicmarketingstrategy solidfinancialperformancerevenuesrose20 to 536million2004and18 inthefirstninemonthsof2005netincomeperdilutedsharerose19 in2004andisupto21 thefirstninemonthsof2005roehasexceeded20 forfiveconsecutiveyears sonicsubsidiaries sonicindustriessonicrestaurant sonicstrengths carhopservice manycustomersenjoythepersonalcarhopwhodeliverstheordertothecarwithafreemintoverallgoodcompany listedforthe10thconsecutiveyearbyforbesmagazinetobeoneofthe 200bestsmallcompaniesinamerica sonicstrengths multi layeredgrowthstrategy listedatnumber50forpercentageincreaseinsalesonthetop50growthchainslist restaurantbusiness july2003 rankednumber80onthehotgrowthcompanieslist businessweek june2003 goodfranchise listedinthetop10onentrepreneurmagazine s franchise500list january2003 greatsalesrecords increaseof13 in2004 and18 inthefirst9monthsof2005 continuouslyincreasedrevenue chart1 sonicstrengths menuuniquemenuitemsthatincludetoastersandwiches extra longcheeseconeys handbatteredonionrings andavarietyofdrinksanddesertsqualityburgers namedoneofthetopthreeinthebestoverallburgerqsrcategoryforsevenconsecutiveyears restaurants institutionsannualchoiceinchainsawards march2003 creampieshakedistinguishedasmostappealinganduniquebeverageinitscategoryandreceives bestinclass award restaurantbusiness may2001 sonicweaknesses internationalpresence exceptfor7drive insinmexico sonicdoesnothaveawellestablishedinternationalmarketbrandawareness althoughsonichasadifferentiatedservicethatisthecarhop andaqualityburger itisstillnotviewedastheleaderinthefastfoodindustry costoftheinternationalfranchise togetasonicinternationalfranchise theinvestormusthave 3 5millioninassetsand 2 5millionincashwhichcouldhinderthedevelopmentofnewfranchisesabroad sonicopportunities internationalmarketgrowthnationalmarket morethanhalfofthe3000drive insarelocatedin9states therestaredevelopingmarkets sonicthreats obesityawareness thiswillpushsonictoincludelightmealsgasprices theriseofgaspriceswillincreasethepricesofsonichurricanekatrinawillhavenegativeimpactonthesonicfranchisessincelouisianaandmississippiaretwocoremarketsforsonic 60restaurantsinlouisiana mississippiandalabamaweredamagedbykatrina madcowdisease thismayeventuallyleadtocustomersshiftingtootherfastfoodsalternatives sonicrevenue revenueforthefiscalyearendedaugust31 2004revenuefortheninemonthsendedmay31 2005projectedrevenuefortheyearendedaugust31 2005 sonicdrive insales salesforthefiscalyearendedaugust31 2004salesfortheninemonthsendedmay31 2005projectedsalesfortheyearendedaugust31 2005 sonicporter sanalysis highrivalryamongcompetitorslittleproductdifferentiationlowcustomerloyaltywhichleadscustomerstoshifteasilytoanotherfastfoodchain highnumberoffastfoodrestaurants sonicporter sanalysis lowthreatofnewentrantseconomiesofscale sonicalonehas3000driveinswhichmakesthecostofmanufacturinglow andthusgivingitacompetitiveadvantagehighcapitalrequirement equipmentandtraining servicedifferentiationthroughcarhops sonicporter sanalysis lowbargainingpowerofsuppliercostofshiftingsuppliersislowsubstituteproductsarenotanoptionbecausebeefispartoftheburger sonicporter sanalysis threatofsubstitutespeoplecanshifttoadifferentfastfoodlowbargainingpowerofbuyernobuyerconcentration sonicreferences http www fastfoodfacts info blog jack thebox competitiveanalysis importantdates borninsandiegocalifornia1 951asapioneersinthe drive thru servingsystemmajorexpansionto1000restaurantsinthewesternandsouthwesternmarketstheybecomeaprivateownedcompanyin19881 992wentpublicwith17 2millionshares1995greatadvertisingcampaignwithexpansiontosoutheasternmarketsuntil2001withalong termgoalofbecominganationalrestaurantcompany jackintheboxenteredthefast casualrestaurantcategoryin2003 strategy jackintheboxinc foundedin1951 isarestaurantcompanythatoperatesandfranchisesjackinthebox restaurantsand throughawhollyownedsubsidiary qdobamexicangrill thecompanyalsooperatesapproximately40proprietaryconveniencestorescalledquickstuff whichisamajor brandedfuelstationandisusuallydevelopedadjacenttoafull sizejackintheboxrestaurant companystrategy jackintheboxisamongthenation sleadingfast foodhamburgerchains withmorethan2 000quick serverestaurantsin17states asthefirstmajorhamburgerchaintodevelopandexpandtheconceptofdrive thrudining jackintheboxhasalwaysemphasizedon the goconvenience withapproximately85percentofthehalf billionguestsservedannuallybuyingfoodatthedrive thruorfortake out inadditiontodrive thruwindows mostrestaurantshaveindoordiningareasandareopen18 24hoursaday companystrategy jackintheboxoffersabroadselectionofdistinctive innovativeproductstargetedattheadultfast foodconsumer includinghamburgers specialtysandwiches saladsandicecreamshakes hamburgersrepresentthecoreofthemenu includingthesignaturejumbojack sourdoughjackandultimatecheeseburger and becausevalueisimportanttofast foodcustomers thecompanyalsooffersvalue pricedproductson jack svaluemenu includingtacos achickensandwichandbreakfastjack subsidiaries qdobamexicangrill whichwasacquiredbyjackintheboxinc injanuary2003 isanemergingleaderinfast casualdiningoperatesmorethan230restaurantsin35states qdobaisrenownedforofferingnouveaumexicancuisine swotanalysis strengthstherevenuesofthecompanyforthelastfouryearsarecontinuallygrowingthecompanyisalsoshowinggoodprofitsthecompanyisremodeling200storesperyearoffershigherqualitycustomerservice weakness thecompanyhastospendanahigherpercentageofmoneyinadvertising assets andstrategicplanning theydonothavemuchpresenceinthesoutheastregionwhichisaprofitablemarket opportunities sincejackintheboxisaverywellknowncompanyinthesouthwesttheycanalwaysusethisgood willinordertoattackothermarketsnowthatthecompanyisgrowing threats thelateincreaseinthemeatandoilpriceschangingconsumertastes preferenceslargeinvestmentsrequiredtostaycompetitiveareeatingawayatprofitmargin trends trends trends yum brands inc yum brandsinc isthelargestrestaurantcompanywithmorethan34 000company franchise license andjointventures inmorethan100counties yum brands inc oct1997pepsico ownerofkfc pizzahut andtacobellformedapubliclyownedandindependentcompany triconglobalrestaurantsinc yum brandsformername may2002thecompanyacquiredyorkshireglobalrestaurants inc andchangedthenametoyum brands inc yum brands inc growthstrategies builddominantchinabrandschinaisthenumberonemarketfornewcompanydevelopmentchinadivisionoperatingprofitsweremorethan 200millionin2004rungreatrestaurants100 champsculturerestaurants cleanliness hospitality accuracy maintenance productqualityandspeed yum brands inc growthdtrategies multi brandgreatbrandsyum istheworldleaderinmulti branding offeringconsumersmorechoicebycombiningtwobrandsunderoneroofyum owns2900multi brandrestaurantsworldwide yum brands inc growthstrategies driveprofitableinternationalgrowthyum restaurantsinternational yri ownsmorethan11 000restaurantsoutsidetheusyriopened700restaurantseveryyearforthepast5years andin2004yriopened3newrestaurantseachdayoftheyear in2004yrirevenuestotaled 2 1billion andoperatingprofitreached 337million yum brands inc a wrestaur