Acknowledgements
I would like to express my deep gratitude to lecturer Ms. T my research supervisors, for her patient guidance, enthusiastic encouragement and constructive suggestions during the planning and development of this research work. Miss Tong willingness to give her time so generously has been very much appreciated.
Moreover, I would also like to thank the staff of the McDonald for enabling me to visit their restaurant to observe their daily operations. A special thanks goes to my classmates, who help me to assemble the parts and gave suggestion about the task of Financial Plan and Production Plan. Last but not least, I wish to thank my mother and sibling those helps and supports me with the encouragement throughout all my studies.
Executive Summary
The title of my report is studies on customer satisfaction in McDonald. McDonald through several market research and marketing tools to find out what customer actually want. Besides that, McDonald should knowing the customer need that can lead to high levels of customer satisfaction. In order to achieve the maximum of customer satisfaction, a certain of objective should be set by McDonald.
McDonald aims to produce the high quality of foods and drinks to suit the customers need. Nowadays, people are gradually more conscious on their healthy diet, because many effects on the body that can cause by fast food. People view of the fast food generally is highly processed and contain large amounts of carbohydrates, added sugar, unhealthy fats and sodium. So, McDonalds had expanded and produce foods include the nutritious of fruits and vegetables across the menu to attract customer to have a healthy eating. Through the effort of improvement that I believe our menu might meet the changing needs of customers.
Furthermore, McDonald make changes due to the environment which change frequently to ensure to accomplish customer satisfaction. When the number of customer visit to McDonalds' increase that will help to increase market shares as well. Since McDonald know their weaknesses as many competitor in the market such as Sugarbun that will impact the revenue of McDonald. However, McDonald can upgrade their management and marketing skills to become more efficiency in the market, so they can improve the weaknesses.
In addition, the McDonald is dividing the market into three segment of group, which are kids, teenagers, and working adult. McDonald have positioning itself as the market leader in the term of pricing and services. For, instance, McDonald position itself to be low cost in fast food restaurant that attracting people of any age because they all are effort to enjoy the delicious foods. Not only that, McDonald is distinguished itself through differentiate strategy by providing the different menu to meet the special need of each target market segment. The McDonald franchises do business in Sibu was also offering halal product which will attract for every single human in Sibu or other regions.
In addition, the McDonald is dividing the market into three segment of group, which are kids, teenagers, and working adult. McDonald have positioning itself as the market leader in the term of pricing and services. For, instance, McDonald position itself to be low cost in fast food restaurant that attracting people of any age because they all are effort to enjoy the delicious foods. Not only that, McDonald is distinguished itself through differentiate strategy by providing the different menu to meet the special need of each target market segment. The McDonald franchises do business in Sibu was also offering halal product which will attract for every single human in Sibu or other regions.
Last but not least, after knowing the market segment of McDonald in Sibu, the company should consider the developing of the marketing mix strategies which include product, price, promotion, and place. The McDonald has certain value pricing of the product with strong image and reputation. McDonald constantly discover the new product and can use persuasive advertising to advertise of their promotion in media or poster site. Additionally, McDonald located in Jalan Central Sibu is the ideal place because stream of people, bus terminal and wharf is around there, and building of Central Market provide car park service. So, there is no doubt that the place can bring economic effect to McDonald.
Introduction
The restaurant that I would like to set up inland town of Sibu is franchises business in nationwide which named McDonald. First of all, we all knew that McDonald is a very famous fast food restaurant in all around the world. The founded of McDonald by Roy Kroc in 1955 where is opened in Des Plains, Illinois. After that, McDonald have growth very fast in the worldwide until today McDonald does their business in more than 100 countries around the world. At December 1980, the USA have gave the license to Malaysia to operate the new begin business of McDonald in our country. The first McDonald open in Malaysia on 29 April 1982 at Jalan Bukit Bintang, Kuala Lumpur. According the McDonald statistics recently, McDonald serving 12 million customer in every month. With the good strategy management, McDonald Malaysia is also expanded rapidly to set up the business around 20 restaurant annually. McDonald always provide various high quality food and drink to feed customer needed in help to accomplish the standard of satisfaction. Because I see the prospective of the McDonald is very popular and still have a lot possibility of improvement to go on, I desire to choose this topic for my Final Year Project, in order to discover more about the McDonald in term of what marketing strategy we can use to achieve high rating of customer satisfaction. These is the new opportunities and a bit challenge for me but I will try my best to prepare well in task of research and survey in the Sibu market of McDonald.
Sibu is a third division city with great location to start my business in Malaysia. According to <Business for Sale> website, I can found that population in Sibu with 162,676 people, and McDonald only remain one operate in main town area which in JALAN SANYAN, nearby the area include shopping mall, kopitiam, bank, and various type of office with crowds of people around the place. The location that I would like to establish my McDonald cooperation in Jalan Central which also located in a biggest market in Sarawak. The traffic jam do not affect a lot of the business operation, because the parking car service have located beside the Central Market, it will allows people to park their car more easily. I believe the place was ideal with a good developing of the business and also can bring the economic effect of McDonald. The future McDonald will build up opposite Central Market in Sibu, these area also close to the bus station and wharf which increase the convenience transportation to serve customers from outskirts, such as Mukah, Kanowit, Kapit, Bintagor and so forth. Daesim Group which is shopping complex nearby the JALAN CENTRAL, a good place that can indirect to increase the profit of the breakfast, brunch, lunch and dinner in McDonald, and it would obviously increase the customer satisfaction.
Nature of Business
The nature of business in McDonald were nationwide restaurant that chain of business in all around the country, although it located in different country but provide similar product and services under the standard control by headquarter management of McDonald in USA. McDonald are providing food and drink service business. McDonald's involved in the provision of food and drink, and will include outside catering services if needed. McDonald's possess a comfortable and easeful environment which have a good eating places retail business. The McDonald is a place that concentrate on cleanliness and regular cleaning will always do by the staffs to ensure the place is snug.
Objectives, Missions, and Visions
The objective of McDonald aims to provide a high quality and standard food and drinks to its customers. McDonald been absorbed in expand and include the nutritious fruit and vegetables across the menu that will attract more customer to enjoy the nutritious food as also care to their children health. In addition, profitability must be targeted to remain and assure continuous to operate our business. With good strategy management to offer best product and reasonable price to all our value customer that can indirectly help business remain profitable. Moreover, the other objective we would like to achieve is customer satisfaction. The customer satisfy with our product and services are important for McDonald continue growth in the market. The loyalty customer will always bring their family or friends to visit our restaurant that can increase the number of customer and raise the profits as well. We need to do the survey and research about what perception of customer toward McDonald. We also need to try to do adjustment if needed to meet the customer desire and requirement, and always fulfill improvement space until better than its competitor.
The mission of McDonald is to be the first favorite place to choice in Sibu. We provide consistently of international management which called principles of Q, S, V & C, such as Quality, Service, Value and Cleanliness to ensure all customer experience the best restaurant in Sibu, Sarawak.
The McDonald in brand vision is to be fast service restaurant in Sibu. Besides, we offer the best quality of product and outstanding service to those who visit and serve them professionally.
PEST analysis
Political
Recently, government are strict on examine fast food restaurant to determine whether the restaurant according the government policy to produce the healthy food to customers. The policy that I mentioned were National Agro-Food Policy. The National Agro-Food Policy has been developed by the Ministry of Agriculture and Argo-based industry Malaysia. The policy are mainly aimed to ensure food that supply in Malaysia based on consumer need for quality, safety, nutrition, and environmental sustainability. Because people eating fast food causing many type of health problem or diseases, such as diabetes mellitus, cardiovascular, and cholesterol. The disease become epidemic disease among the young and children nowadays. Government through limiting the license given and prohibit permission to open more the fast food restaurant to prevent the spotted diseases spread in the market. Moreover, the 6% Government Service Tax (GST) policy will increase the cost of McDonald. The cost of raw material has been charged by government tax that McDonald need to spend more to import products. McDonald was the fast food restaurant that produce many unhealthiness of their products. People and growing public awareness of obesity and heart disease mostly links to high-fat foods. According to a new study published last year by The Lancet, showed that 49% of women and 44% of men were found to be obese. In addition, Malaysia was rated heavyweight at 45.3% of the population. This unhealthy issue of culture that government should take action to reduce the various disease causing by eating fast foods. For example, government takes aim at the various diseases were to restrict the advertising of unhealthy foods within the government regulatory control. With the government regulatory control, and increase the public speech regard the healthy issue to increase the awareness of people about serious of fast food causing vary of disease. Through the government infusion of consciousness, customer are more willing to eat at home rather than visit fast food restaurant, because people more aware the healthy lifestyle.
Economic
McDonald as an international business should often dealing the international sourcing of raw material such as beef, potatoes and many of its product should be imported in local market. When the currencies change will impact the cost to purchase the product materials. McDonald have been paying the 6% Government Service Tax. The tax will be charged from government for operating business in local market and the Sibu as well. Not only that, the McDonald headquarter United States at regular time have to collect the certain franchising fees from McDonald of total business revenue. For instance, the service fee of 4% of monthly sales should pay to the headquarter. Besides that, the local market economic situation also have a big impact to McDonald revenue. When the economic recession, the income of people will affected, and people going to buy the product of McDonald slightly down. Whereas, if the economic prosperity means the income of people will increase, the revenue of McDonald will also raises because people able to buy foods and enjoying delicious foods. The economic currently in Malaysia not too good, because of the GST and many thing had increase the prices, the currency of Malaysia continue decrease recent years. The situation will impact restaurant revenue become low, because consumers eat at home more often to save money. McDonald should increasing advertising to lure consumers back to their restaurants.
Social Culture
The good quality life in Sibu shall helped McDonald in establishing its business here. Although Sibu is a small town but has a good quality of life. Sibu people had different cultural and races live here. McDonald depends on the taste and preferences of the customer and also comfort to a halal food in Malaysia. The preference of fast food for working adults who are rushing on time will visit McDonald because its delivery speed is fast, they need to save time to have a quick breakfast or lunch. The youngster or teenagers preference for fast food, because the delicious burger and salad will attract them to have a gathering with friend or couple in McDonalds.
Technological
Good technological installed in restaurant will bring some impact to their productivity. McDonald can provides integrating technology to managing its operation by giving the easy payment services for customers and install wireless internet that can attract young or business man to visit its restaurant. Other competitors maybe not yet such the innovation, but other can install Wi-Fi as well. In yet, McDonald should move forward first to increase the competitiveness in the Sibu market. McDonald plan to create and advertise their item menu through internet can easy for customer to look into food and drinks provided and see the nutrition of foods information. Moreover, the machine is consider as technology that bring a lot of helpful to making the food more hygienic. The cashiers used by the employees also consider as technological that help employees to serve the customer quickly, because all product prices and number of order will list out in the machine of cashiers make easies to look by employee and increases the effectiveness.
Michael Porter 5 Forces or Competitive Force Model
Bargaining power of suppliers
The bargaining power of suppliers to McDonald in Sibu are moderate. The relationship of the suppliers must be good. The bargaining power of supplier is fairly stable currently. McDonald has a good supply chain of quality materials at fair prices. Besides, the suppliers of McDonald unable to raise the price or lower the quality, because McDonalds under franchise, all the materials and ingredients should be consistently by franchiser appointed supplier, so supplier cannot simply raise the price of the products.
Bargaining power of buyers
As we know, the bargaining power of buyer is high, because of low switching cost to other product. If McDonald's given the high price of product will cause the customer to go other place such as KFC to enjoy their hamburgers or fried chicken. So, McDonald should set the reasonable price and customer could afford to consume the products.
Threat of new entrants
The threat of new entrants in the fast food industry is low, because there are no legal barriers which would prevent a company from entering the industry. The barriers a company faces in this industry are financial problem or economies of scale. The new entrants that they have spent a lot of money investing on the advertising and marketing with their product and also require high fund to pay franchise fees. If they want become a successful new entrant, the company should spend large amounts of capital on advertising and marketing in order to catch the attention of people about the new industry in the market. The new entrant industry in the sense that all they are trying to steal each other customers. In the other hand, McDonald has make an entry barriers to other new entrant of fast food industry difficult to surpass what McDonald has do nowadays. By produce the cheap price of product and quality of service, many of people will be attracted to visit the restaurant. Some of the season time, McDonald had cooperate with Disney by producing the toys in the menu of Happy Meals. McDonald is not only consider their food or service, but also giving some different toy in seasonal time of specified of menu. McDonald should always improve and do innovation to stand in the competitiveness advantage.
Threat of substitute products or services
The threat of substitute products is high. McDonald's involve many substitute of product that easy to let customer to switch the other. For example, hamburger and fried fly can substitute other brand of hamburger and fried fly. The substitute product will cause McDonald's to lose it sales because people can buy the similar food from other fast food chain, such as KFC, Pelicana, and road side burger stalls at Jalan Kampung Nangka. The McDonald's should increase their service getting better and make the customer feel comfort to enjoy the quality foods compare to its competitor. McDonald's should keep doing the advertising, product quality improvement, and product distribution that can improve its collective position, against the substitute.
Rivalry among existing firms in the industry
The competitive rivalry among firms are high, because many competitor now looking for the space of improvement to innovate their product and service then continue to develop their business. McDonald generally competitor are Sugarbun, KFC, and some Taiwanese food restaurant also bring an impact on McDonald sales annually. Competitor always copy each other idea to aim to market segment with different mixes of price, product, service, and features to serve different needs of customers. For example, KFC introducing Fried Chicken original recipe bites, which will compete directly McDonald Chicken McBites. If consumer love more to eat about fried chicken, then they will choose KCF as their preferences.
SWOT Analysis of McDonald
Strengths
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Opportunity
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Weaknesses
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Threat
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Strength
The McDonald provide various product follow each different season and each different country culture to suit customer tastes and favorites. The price of each menu of item is affordable and reasonable for customer to purchase it. McDonald offers many flavors of ice cream from mix to Oreo cookies. McDonald has to customize each menu of product according to the tastes of Sibu people. Moreover, McDonald already had operate many years. McDonald have strong brand name, image and good reputation in the global market. It has a strong global presence and is considered as a market leader in both the domestic and also international markets. In addition, McDonald have create many employment opportunities to Sibu people, regardless of race, color, age, religion and so on. McDonald provide education and training to the people who wanna to join the McD big families. The technology innovative is always do by the McDonald's to increase the productivity and customer convenience. For example, in Singapore is currently installed the machine outlet easy for customer order food by their own through the machine and internet, it help to reduce a lot amount of lag time when pick up the order. I believe this technology will bring to Malaysia's even in Sibu as well to increase the efficiency and effectiveness.
Weaknesses
People see McDonald's as unhealthy food that may create the negative publicity to customers. The McDonald's had a bad image because it will cause a lot of health problem such as obesity is a very serious issue among young people. The high fried and oil of beef and chicken that can damage our health and also can cause some cancer easily. A number of customer awareness of their health will stop to eating at McDonald's that indirect influence the business revenue in the restaurant. Not only the unhealthy food issue, but the higher employee turnover will always bother the business. McDonald's giving low paid to employee and high working pressure that cause many people quit the job. The McDonald's spend a year of training cost to train the new employee, but many of them as a part time worker will switch to other job that will raise the overall costs of McDonald's.
Opportunity
McDonald's increase the demand for healthier food should always consider to reverse its weakness into strength. For example, McDonald's can introduce the vegetarian food for those who caring about their health. McDonald's can also introduce more healthy food as low fat, low calories of hamburger which will attract more people to choose it. However, McDonald's can add one service which is home meal delivery. Besides that, McDonald's can plan to trialled a delivery service in a number of location in Sibu. The length of time taken for the delivery should ensure food in hot and fresh condition after delivered. This services may allow McDonald's exploit a new opportunity and also increase convenience for customer who unable to order themselves at restaurants. For instance, home meal delivery provide convenience for many of people, especially for disabled people, and housewife. Moreover, McDonald's could provide appearance of freebies and discounts. The strategy of different time with different discount might allow customer to enjoy preferential price at every single times. Because of the special discount, the number of loyalty customer will increase as well as maximizes customer satisfactions.
Threat
The major threat to McDonald's is the affect by government attempts to fight obesity. People caring about their health will decrease to take what McDonald's has to offer in its menu. People facing serious problem of health issue, nowadays they more prefer to nutritious and health care product rather than unhealthy food in McDonald's. The intensity competitors are more and more appear in Sibu that try to gain more customer from McDonald's. More fast food industry increase their burger offering and lower the price, customer more prefer the new burger taste and visit other fast food restaurant as that will bring some feeling of freshness. In addition, the economic recession that bring negative impact to McDonald's. Because people will save budgets and reducing spend in eating outside such as visitor of McDonald's decrease during the economic recession. The other fast foods restaurants doing well in Sibu as well, they will become the strong competitor of McDonald's, such as Pizza Hut, KFC, Sugarbun, and the new Pezzo in Sibu. Furthermore, many competitor appear in the market will impact the revenue of McDonald, because of fierce competition. Sugarbun have more and more franchises in Sibu, the biggest Sugarbun with biggest kids playground located close to Bus Terminal Sibu. McDonald's has to compete with these strong brand name and good entertainment services in fast food industry. Hence, McDonald's loose a number of customer who prefer more to Sugarbun and even other fast food restaurant.
Production plan
Schedule of production plan
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Duration
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Register business to get the business license
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3/1/16 - 8/1/16
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Apply the franchisee license
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10/1/16 - 16/1/16
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Choose the strategy location
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18/1/16 - 20/1/16
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Design for renovation
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21/1/16 - 28/1/16
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Interview to select the best worker
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2//2/16 - 4/2/16
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Provide training to increase staff responsibility
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5/2/16 - 7/2/16
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Prepare equipment and supply capabilities
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8/2/16 - 11/2/16
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Inventory management allow provide product in any time
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12/2/16 - 16/2/16
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Start-up business and advertise promotion via social media
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19/2/16 - 26/2/16
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First of all, I should register my business via SSM e-Lodgment services in the SSM's website to get the business license to obtain the permission of operation my business in Sibu. The new business registration may valid for a period of one year. After I get the business license then I can further to apply my franchisee license. Before I buy a franchisee license to start my new business, I should research on the type of franchise to gain the business savvy and the management experience also required. I call and visit the website of the company to obtain the rules and costs associated with the franchise. Besides, I review all funding requirement that make sure I have the required funds from bank to open the franchise. The fees might include the licensing fees, machine purchase and funds required for renovation the restaurants. Afterwards, I might submit a basic application and give a formal presentation to let the cooperative partner and other authorities to understanding how my franchise behaviors basically work. Finally, I should talk to an attorney before I sign the final franchise agreement. The attorney is important for reviewing all terms and conditions to protect my interests and to make sure I understand the obligation of start-up new business.
After I get the business license and franchisee license, then the most important production plan is the strategy location that I need to select and to set up my business. The location I would like to operate my McDonald's is in Jalan Central which close to biggest central market in Sibu, Sarawak. The area has that strategy because bus terminal and wharf is around there which allow different region people easy to visit our McDonald's. The parking car service also beside the Central Market which will reduce the car parking problem. With the good location, I believe it can bring huge revenue to McDonald's.
Moreover, I should define my target market when deciding on a final design for renovation. Most visitor of McDonald's after my analysis and examine the demographic can be consider the age of the visitor around 15-25 young people. The renovation might opt for a more modern and casual design that would make my restaurant more appealing.
The professional interview should be taken by McDonalds to select the right people into the right position. McDonald's should require that candidates undergo skills assessments, such as training program, drug tests, working experience and background screenings before recruit them an official employees of McDonalds.
Staffing should take consider to improve the capabilities of staff members in order to make stronger teams. Staffing is important during lunch and dinner time as the busy time need to have enough worker to give the better services. Besides, it can help to prevent customers complaining about waiting too long for food. McDonald's should always take training and education program into production planning to increase the staff responsibility and be able to respond to any rushes.
The quality of equipment and supply capabilities are important to ensure the kitchen and all the working area are in condition of safe and efficient. McDonald's need to making sure all equipment and machine used was undergo test as meet the standard of requirements to produce foods and drinks. The equipment and machine that McDonald's kitchen used such as low oil volume fryers, grills, ice and beverage machines, and refrigeration units. All machines need to be consistent and up to health department standards.
Additionally, the important of production plan in McDonald's that I think is inventory management. McDonald's should managed inventory properly so product never runs short on any supplies used to prepare products and able in any time provide what customers need. McDonald's need prepare fresher ingredients and more sanitary food storage condition to prevent the waste of food and can start the business.
After start the new business, the vary way of promotion is play important rule to attract the customers. The promotion that I aimed at television advertising and through online to promote McDonald's product. McDonald's can use the public relation through the internet media such as Facebook to update the new product and hot promotion on it. This will also increase the brand image of McDonald's.
Marketing Plan
Market Segmentation
Demographic Segmentation
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Children
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Teenagers
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Working Adults
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Age
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Below 12
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13-21
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Above 21
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Income
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Parent allowance belowRM200
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Parent allowance below RM500
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Above RM800
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Occupation
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Students
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Students, work as part timer
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Full timers
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Geographic
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Region
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Regional cities
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Regional cities
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Regional cities
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Location
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Sibu
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Sibu
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Sibu
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Social Cultural
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Family life cycle
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kids
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Singles, couples
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Singles, couples, married, family
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McDonald provide different advertise and media campaigns target people at different ages such as children, teenagers, working adults to offer different menu of product for them. For example, McDonald offer Happy meal which includes a free toy for kids, and set of burger menu was popular for those people who want to save time and choosing fast food, and also can relax and enjoy the food with idle times. Income segmentation is a good strategy to aims at different income of people. The age below 12 are still economic pillar that depend on his or her families. McDonald's target these people in family package and Happy Meal. The age between 13 until 22 are most financially depend on their family, but some self-independent will spent their own in McDonald's with friends. The above 23 year old consider working adults want the food can fast to eat and strength go to work. The location of McDonald's in town can attract different districts or even neighborhood in Sibu. Geographic segmentation is important because there have many factors contributing to the varying customer needs across different regions of the Sibu. The social cultural of working adults involve different of family life cycle which can effects the McDonald's revenue. Different family unit seek different types of food. McDonald's offer different set of food allow each family to choose according to their preferences. Men and wife who need to working as dual income families that come actually do not have enough time to prepare breakfast or lunch for their families member, they can order breakfast or lunch meal in McDonald' menu. Thus, the benefits that McDonald's to understand the exact needs of the customer and target the particular group which can help to create customized products and services.
Targeting
From the analysis market segmentation, McDonald's should target more working adults market as it seems most profitable in the market. The working adult market is seems as the largest group of consumer compared to kids and youth market in McDonald's. Moreover, above 21 years old mostly has their own income and able to make their own choice of their eating habits. McDonald's is one of the fast food restaurant that provide the fast services to suit those working adults who are always on a go and fast moving in breakfast and lunch times. Additionally, McDonald's open 24 hours also targeting on working adults who work till late at night. And thus, McDonald's have convenience and comfortable environment that attract people to visit in any time and was a good place for midnight snack as well.
Positioning
McDonald's should always creating an image in consumers mind by which consumers can understand and customized the uniqueness about McDonald's product and service when compare to competitor's. McDonalds has positioned itself as the market leader in the sense of pricing and services. McDonald's made itself to be family friendly low cost restaurant in the fast food industry. Furthermore, McDonald's can position itself according to the kids by introducing Happy meal include a toys in the product. Not only that, McDonald's should make special effort to attract teenager to choose the place as gathering and hangout place. McDonald's should also position its product to adults because they can purchase for quality and variety products. This indirectly will increase the recognition of brand in Sibu for all ages.
Marketing Mix Strategies
Product
McDonald's put a lot of effort to emphasis on developing the menu which customer want. Marketing should continuous monitor customer preferences because customers requirement change over time. The customer preferences will change to other, so McDonald's has develop and introduced new products to replace the old products. McDonald's want to serves healthy food, but some changing will effect on the consumers eating experience. For example, saturated oil already replaces with Trans-fat oils have change the taste of McDonald's famous fries, the eating experience will be different.
The product that McDonalds had offer was Burgers & Sandwiches. The burger is delicious, freshly made by premium recipes. Chicken & Fish was from our ever-popular Chicken McNuggets, both chicken and fish from McDonald's are delicious choices. The Breakfast had many options that offer what you need to start your new day. From wholesome choices such as Fruit & Maple Oatmeal and the Egg McMnffin, sausage McMuffin is the delicious choices for breakfast options. The Salads have various option that can be classy. McDonalds offer little panache with select mixed greens, elegant tipping, and choices galore. The beverage that McDonald offer is variety such as coca-cola, diet coke, and different favorite of McCafe that McDonalds got perfect companion for customer favorite menu items. With the special product and always discover new products to suit the customer taste that McDonald definitely can stand on competitiveness advantages.
Price
The price is important to determinant its value of products. If McDonald's offer a low price of the product will cause customer feel that quality is being compromised. McDonald's is a strong image and reputation and it may change to a little high price of their new product range to increase their market share. McDonalds has certain value pricing and bundling strategies such as combo meal, family meal, happy meal and so forth to raise overall sales of the product. McDonald's offer McValue with the specific time of lunch or dinner at 12pm-3pm or 6pm-9pm. The package of McValue was the cheapest price of fast food in McDonald's.
Not only that, McDonald's also offer various set of the menu such as Double Cheeseburger price at RM 7.95, Chicken McNuggets(6pcs) price at RM6.95, Fillet-0-Fish price at RM7.45, Spicy Chicken McDeluxe price at RM9.45, Big Mac price at RM8.95, Quarter Pounder price at RM8.95, Big M Tasty price at RM8.95, and Ayam Goreng McD price at RM9.45. Therefore, the price that I list out was competitive advantage in the market. McDonalds strive to be cost leaders and offer our food at prices that cannot be matched by our competitors in order to keep everyday operations costs as low as possible. Besides that, McDonald's serve our food at lower prices than any other fast food company to stand at competitiveness advantages.
Promotion
McDonalds can through social media to let consumer know the new packaging promotion of McDonalds such as the advertising can conducted on TV, radio, online website, and also cinema. McDonalds can use poster site to let consumer know about the promotion, such as newspapers and magazine. With the TV positive advertisement, consumer will aware of a food item and also can press online to searching more details. The promotional favorable can encourage people to keep buying from McDonalds, and increase the customer satisfaction.
Place
The strategy place is very important because the product must be available to the customer at the right place, even at the right time and in the right quantity. McDonald's outlets build in at Sibu town making consumer very accessible. I will set up McDonalds on opening store in Sibu town which at Jalan Central because according to stream of people that I believe it can bring huge revenue generating market. McDonald's nowadays had install internet facility to attract more young people spend quality time with their friends and family in McDonalds. The location of McDonald's in Jalan Central that I think is ideal place can bring economic effect to McDonald's. These area was close to bus station and wharf which allow different region people easy to visit our McDonald's. The parking car service only beside the Central Market will reduce the car packing problem.
Organizational plan in McDonalds
Role of employees
The CEO consider as top-level managers that should always make decision to improve all aspect of McDonalds. CEO normally do not direct the day-to-day activities of the firm, rather than that CEO provide goals for the organization and direct the company to achieve the objective, vision and mission of organizational.
Operational manager is to developing supervisor with fully skills and techniques required to become effective to manage the restaurant. Supervisor is to provide the task and responsibilities to employees and provide career opportunities which allow employees to develop to their full potential. The kitchen staff need to ensure food preparation surfaces and equipment are kept clean and satisfied. The duties of cashier is simply taking an order, putting into the computer. Cashier should provide quality of customer service to maintain a friendly smile and a good attitude with every customers. Cleaner need to ensure to clean all areas of the McDonalds thoroughly, and key aim of enhancing the customer experience by having a comfortable environment in McDonalds.
Branch manager need to communicate effectively with all employees through a meeting and distribute the task and duties to human resource, marketing, and accounting departments. Human resources aim of recruit people with positive attitude who are capable delivering the good standards of quality, services and cleanliness to our dear customers. Marketing aim to promoting new product of McDonald through social media and poster book to advertise a latest promotion offer by McDonald. Accounting duties are to comprise of releasing financial reports, maintaining tax records, analyzing financial documents in McDonald.
The CEO consider as top-level managers that should always make decision to improve all aspect of McDonalds. CEO normally do not direct the day-to-day activities of the firm, rather than that CEO provide goals for the organization and direct the company to achieve the objective, vision and mission of organizational.
Operational manager is to developing supervisor with fully skills and techniques required to become effective to manage the restaurant. Supervisor is to provide the task and responsibilities to employees and provide career opportunities which allow employees to develop to their full potential. The kitchen staff need to ensure food preparation surfaces and equipment are kept clean and satisfied. The duties of cashier is simply taking an order, putting into the computer. Cashier should provide quality of customer service to maintain a friendly smile and a good attitude with every customers. Cleaner need to ensure to clean all areas of the McDonalds thoroughly, and key aim of enhancing the customer experience by having a comfortable environment in McDonalds.
Branch manager need to communicate effectively with all employees through a meeting and distribute the task and duties to human resource, marketing, and accounting departments. Human resources aim of recruit people with positive attitude who are capable delivering the good standards of quality, services and cleanliness to our dear customers. Marketing aim to promoting new product of McDonald through social media and poster book to advertise a latest promotion offer by McDonald. Accounting duties are to comprise of releasing financial reports, maintaining tax records, analyzing financial documents in McDonald.
Assessment of risk
The first risk McDonald's should consider is financial risk. These risk include the changes in currency rate that will impact our import product cost. The cash flow shortage will also influence the operation of the business. The exchange currency of Malaysia currently have fallen significantly, currently the currency of Ringgit Malaysia change to SGD dollar is 1:0.356. The problem issue will cause the cost of raw material of McDonald's will change as well, McDonalds might pay more to import the product. The inflation rate was very high since December 2014, mainly due to an increase in cost of food, beverages, equipment and routine maintenance. The inflation rate will increase the financial burden of McDonald's. Moreover, McDonald's should always ensure the food in safety condition, it was important because it will strongly effect the brand image of McDonald's. The machinery and equipment should regularly check to make sure its functioning well to produce fresh and original taste of food to every customers, then the risk of getting food poisoning will reduce until it minimum. In addition, the risk of work health and safety that McDonald should consider as well. The worker maybe accident caused by materials, equipment when their use a low oil volume fryers machines, or grills machines to roast chicken. McDonald's should always to make sure every staff are working in safe condition to prevent the risk. Moreover, the risk of the market itself will also might influence McDonald's business. It is because the new entrant of competitor gradually increase in the market. For example, many Taiwanese food restaurant start-up in Sibu, such as T-Time in Medan Mall and 328 Katong Laksa in Premier, these competitor offer delicious food of menu to attract customer, the changes in consumer preference will lead to falling sales revenue in McDonald's.
McDonald should reduce the risk and prevent from the risk. McDonald's can through quality control processes, staff training, regular maintenance to reducing the impact if the risk occurs.
Financial Plan
The McDonald's is the franchises that I need to spend one million for buy the franchisee license to start-up my business. The information can get from Perbadanan Nasional Berhad (PNS), they have help facilitate and fund franchisees.
I can apply the business license via SSM e-Lodgment services in the SSM's website at www.ssm.com.my. The registrations fees include sole proprietorship using personal name in the identity card cost at RM30.00, registration of branches cost at RM5.00, and Business Information Print-out cost at RM10.00, and the total fees was RM45.00.
Capital Budget RM
Land and Building 1,500,000
Franchise Licenses 1,000,000
Business Licenses 45
Kitchen Equipment 200,000
Dining Room Furniture 30,000
Interior Finishes & Equipment 15,000
Exterior Finishes & Equipment 20,000
Pre-Opening Expenses 50,000
Working Capital & Contingency 30,000
Monthly Basic Expenses RM
Cost of Sales 80,000
Operation Manager Salary 3,000
Branch Manager Salary 3,500
Supervisor Salary 2,500
Kitchen Staff Salary (5xRM1200) 6,000
Cashier Salary (3xRM1100) 3,300
Cleaner Salary (2xRM800) 1,600
Accountant Salary 1,800
Marketer 1,500
Human Resource 2,000
Electrical & Water Bills 1,200
Total Expenses include Capital 2,951,445
Legal Plan
McDonald should help employee who is a Malaysian citizen or non-Malaysian employee apply themselves as EPF member in Form of KWSP. Malaysian citizen must furnish their identity card to the McDonald's management to apply the EPF. A non-Malaysian employee was produce their passport and visa together with Form KWSP 16B to the McDonald's management department. The employer should make sure the name and identity card is spelling correctly in the contribution form. The procedure of process are completed then the employee will become EPF member.
McDonald recruit the new employee must be registered with SOCSO not more than 30 days from start working days. Management can either register of employee the application in SOCSO counters or Malaysia Corporate Identity (MyCoID). Registration can be done by employers and summit together with the documents.
The procedure of registration for business license have to follow certain step. Firstly, the business should be register using personal name in the identity card. The registration form should complete in details and I need to sign the completed form. Then I must submit the application form with supporting letter from signature of lawyer to counter or using online through SSM e-lodgment services in the SSM's website at www.ssm.com.my. Business Registration Certificate can be obtained within one hour after payment. The new business registration may valid for a period of one year.
Furthermore, when I want to open new business in selected location that should had contract for building as well. It contain the basic elements of a construction contract. The contract should be signed by both parties and should include four element of information. In the contract, the information should written down such as the names and contact for mine and contractor, the location of the work, the detailed description of the work to be completed, the cost of the work and payment schedule, and the signatures of both parties and the date. Some should make sure first before signing the legally building contract. For example, the builder need provide insurance policy or certificate of currency to me and the procedure for variation of plan should clearly understand then contract can sign and go on.
For acquiring a franchise that have several term and conditions. In Sibu, I would like to enter the system by purchasing a new restaurant of McDonald's. The financial that require form down payment for purchase a new restaurant is 40% of the total cost, which is RM400,000 for my first payments from the total license fees RM1,000,000. The license fees can find in Perbadanan Nasional Berhad (PNS), they has help facilitate and fund franchisees. The down payment should from non-borrowed resources. The remaining balance should pay for a period of no more than seven years. So, I as McDonald owner can enjoy the benefits of our established relationships with national leading institutions.
Moreover, I want to become the franchisee of McDonald's in Sibu, some of the process must going through in order the license can be gain successfully. The first stage of the process, I should filling the McDonald's Malaysia franchise application which can be get from McDonald's official website. When the form have been submitted, once the authorities are satisfied will going to arrange the interview section. I should talk about my goals, objective, mission and vision of McDonald's during the interview. If the authorities satisfied about my prospects, then they will arrange me to work in an existing McDonald's for a several days to examines and observe about my performance in the job. I should provide a better idea and self-assertiveness during the observation work. If I successful pick up by authorities that they will send me a franchisee training for 1 year. Then, after completed the training that I will require to become officially McDonald's franchise in Sibu.
Furthermore, when I want to open new business in selected location that should had contract for building as well. It contain the basic elements of a construction contract. The contract should be signed by both parties and should include four element of information. In the contract, the information should written down such as the names and contact for mine and contractor, the location of the work, the detailed description of the work to be completed, the cost of the work and payment schedule, and the signatures of both parties and the date. Some should make sure first before signing the legally building contract. For example, the builder need provide insurance policy or certificate of currency to me and the procedure for variation of plan should clearly understand then contract can sign and go on.
For acquiring a franchise that have several term and conditions. In Sibu, I would like to enter the system by purchasing a new restaurant of McDonald's. The financial that require form down payment for purchase a new restaurant is 40% of the total cost, which is RM400,000 for my first payments from the total license fees RM1,000,000. The license fees can find in Perbadanan Nasional Berhad (PNS), they has help facilitate and fund franchisees. The down payment should from non-borrowed resources. The remaining balance should pay for a period of no more than seven years. So, I as McDonald owner can enjoy the benefits of our established relationships with national leading institutions.
Moreover, I want to become the franchisee of McDonald's in Sibu, some of the process must going through in order the license can be gain successfully. The first stage of the process, I should filling the McDonald's Malaysia franchise application which can be get from McDonald's official website. When the form have been submitted, once the authorities are satisfied will going to arrange the interview section. I should talk about my goals, objective, mission and vision of McDonald's during the interview. If the authorities satisfied about my prospects, then they will arrange me to work in an existing McDonald's for a several days to examines and observe about my performance in the job. I should provide a better idea and self-assertiveness during the observation work. If I successful pick up by authorities that they will send me a franchisee training for 1 year. Then, after completed the training that I will require to become officially McDonald's franchise in Sibu.
Conclusion
McDonald is operating in Sibu as very profitable organization. In this project I have struggled to study the customer satisfaction of McDonalds starting from its objective to its mission and vision statements in which explained the important of customer satisfied of our product and services, it can indirectly help McDonalds remain profitable. I believe in the McDonald's promise to be the first favorite place to choose in Sibu, will proudly serve an exceptional. McDonald's eating experience that makes all people feel special and makes customer smile. McDonald's will put stringent on principles management of Quality, Service, Value and Cleanliness to provide and ensure 100 percent customer satisfaction. McDonalds should continue advertising that help building brand recall and sustain a brand. Besides that, the other aspects of integrated marketing communication like sales promotion, staff service attitude, comfortable environment, direct marketing plays a vital role is sustaining a brand as well as maximize the customer satisfaction.
Recommendation
All we know that McDonalds is a powerful brand reputation. Thus, the strategies and marketing management seem so good. However, I had some recommendations seem very important and recommend McDonalds should do with its strategies.
Firstly, McDonalds should focus and develop to new production. The company seems not diversify new production regularly, but other competitor stronger and have new product gradually. The competitor innovate new product to introduce to market will cause McDonald's lose number of customer and do not stand competitiveness advantage in market. In order to avoid this, McDonalds should spend more money on Research and Development to create new products and services that help to raise the operational efficiency and effectiveness. For example, McDonald can develop play place for kids, its help customer feel free when gathering with friends while they children play at the place for kids. Customer will satisfy with this service and of course will visit again. McDonald's can bring new vegetarian products to restaurant menu, because McDonald's focus too much on cheese, beef or chicken menu. McDonald's offer organic menu is necessary to maintain its market share.
Additionally, McDonald's should provide quality training to increase the quality customer service of worker. McDonald's employees are evaluated high by customers because of their behaviors and attitude. The proper training should provide and increase worker salary in order to keep them working for a long time. This time is just enough for them to get skills to service customers well. Not only that, McDonald's can increase to recruit a number of part-time worker at the weekend or in the period of lunch time. This will help to improve efficiency during the rush time, and that pressure are shared to avoid the bad attitudes.
Firstly, McDonalds should focus and develop to new production. The company seems not diversify new production regularly, but other competitor stronger and have new product gradually. The competitor innovate new product to introduce to market will cause McDonald's lose number of customer and do not stand competitiveness advantage in market. In order to avoid this, McDonalds should spend more money on Research and Development to create new products and services that help to raise the operational efficiency and effectiveness. For example, McDonald can develop play place for kids, its help customer feel free when gathering with friends while they children play at the place for kids. Customer will satisfy with this service and of course will visit again. McDonald's can bring new vegetarian products to restaurant menu, because McDonald's focus too much on cheese, beef or chicken menu. McDonald's offer organic menu is necessary to maintain its market share.
Additionally, McDonald's should provide quality training to increase the quality customer service of worker. McDonald's employees are evaluated high by customers because of their behaviors and attitude. The proper training should provide and increase worker salary in order to keep them working for a long time. This time is just enough for them to get skills to service customers well. Not only that, McDonald's can increase to recruit a number of part-time worker at the weekend or in the period of lunch time. This will help to improve efficiency during the rush time, and that pressure are shared to avoid the bad attitudes.
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