Marketing assignment (autosaved)

DIMENSIONS INTERNATIONAL COLLEGE
POST GRADUATE DIPLOMA
In Hospitality Management
Students Name : Panawalage Asanka Darshana Sampath
Intake/Class : PGDHM-23
Module/Unit : Marketing for Hospitality Management
Assignment Reference : PGDHM-MKT-v1
Course Consultants Name : Ms. Felice Koay
Date Submitted : 31st July 2015
Student‘s Signature : ………………………………………………….

Marketing for Hospitality Management/PGDHM-MKT-v1
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Panaw alage Asanka Darshana Sampath/PGDHM 23

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Table of Contents
1 Introduction ......................................................................................................................4
1.1.1 Vision of MCD....................................................................................... ………4
1.1.2 Mission of MCD .............................................................................................. 4
1.2 Business model of McD in nutshell .............................................................................4
1.3 Over view of the MacDonald’s in Singapore ................................................................5
1.4 Over view of the marketing management ....................................................................5
1.4.1 Definition of marketing and marketing management .......................................... 5
1.4.2 Roles and function .......................................................................................... 6
1.4.3 Importance of marketing management to an organization .................................. 7
2 Core concepts of marketing...............................................................................................7
3 Marketing process of MCD ................................................................................................8
3.1 STP Analysis for MCD...............................................................................................9
3.1.1 Marketing Segment ......................................................................................... 9
3.1.2 Marketing Target (Customer Profile of MCD) .................................................. 10
3.1.3 Marketing Positioning and differentiation......................................................... 10
3.1.4 Marketing mix .............................................................................................. 13
3.1.5 Product- Service Mix. .................................................................................... 14
3.1.6 Presentation Mix ……………………………………………………………………….16
3.1.7 Communication............................................................................................. 17
3.1.8 Pricing Mix.................................................................................................... 17
3.1.9 Distribution Mix. ............................................................................................ 18
3.2 What type of market segments should MacDonald’s Singapore focus on in future
and reasons for it......................................................................................................18
4 Service Marketing...........................................................................................................20
4.1 Definition of Service Marketing.................................................................................20
4.2 Characteristics of Service Marketing and measures taken by MCD in view of
overcoming negative impact of them ..........................................................................20
Intangibility :.......................................................................................................... 20
Inseparability ........................................................................................................... 21
Variability :............................................................................................................ 22

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Perishability : ........................................................................................................ 23
5 Business Environment of MCD ........................................................................................23
5.1 External Environment of MCD ..................................................................................24
5.1.1 PESTLE analysis for MCD ............................................................................. 25
5.2 Reasons to take Macro-Environment in to consideration During Planning Process ......28
6 Summary .......................................................................................................................29

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1 Introduction
MacDonald’s (McD)story as a restaurant originated in year 1954 in in San Bernardino,
California by its revolutionary pioneer whose name is Raymond Kroc and gradually but swiftly it
became a nationwide fast food chain. After twenty four years Macdonald had started its operation in
USA, they starts infiltrating the Singapore food and beverage market from 1979.The first outlet of
MacDonald in Singapore was opened at Liat Towers on October and very first day they managed to
sell recorded amount of hamburger sales in their history. By today Macdonald’s operates
approximately over 120 restaurants island –wide Singapore and cater the requirements of 1.2 million
consumers each week while around 9,000 employees works for the betterment of the fast food chain
of Macdonald’s. In addition to that many branches operates 24hrs whole year through.
Further, even though McD has considerable number of competitors such as Burger king, Kfc,
Pizza hut, Subway, Dominoes and etc.in fast food industry; McD stands strongly and unevenly.
However, Since Fast food industry is varying based on the customer service, product they offer. McD
also necessary to consider the market they targeting to cater, make and implement marketing
strategies, revise and re-implement them to attract more customers and make retain existing
clientele. This report is basically about the factors that have an influence on bottom-line of McD,
changes in operational environment and how the McD regenerate and adopt marketing strategies to
face particular circumstances.
1.1.1 Vision of MCD
To be the best and leading fast food provider around the globe
1.1.2 Mission of MCD
“Mc Donald’s vision is to be the world’s best quick service restaurant experience. Being the
best means providing outstanding quality, service, cleanliness and value so that we make every
customer in every restaurant smile.”
1.2 Business model of McD in nutshell
 Franchise Model – 85 % of McD restaurants come under franchises model and they
operates under the brand name of McD. A comprehensive training and monitoring is given to
its franchises by McD main company and careful to ensure to keep Quality, Service,
Cleanliness and Value propositions as very same as other 15%of the restaurants run by McD
itself.
 Product and service Consistency – McD has developed classy network of supplying and
sophisticated distribution system. By means of that McD has been able to reach the
achievement of consistent product taste and product quality across the globe. Development of
McD products and service as shown in table 1.

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Table 1 : Development of McD Products & Service
 Acting like a retailer and thinking like a brand – Focus of McD aims not only on delivering
sales for its customers but also on securing and protecting its reputation of brand as McD in
the long run.
1.3 Over view of the MacDonald’s in Singapore
MCD started their operation opening first restaurant in Singapore in 1979 in October at Liat
Towers and at very first day MCD mage to hit a record by selling world’s highest volume of
hamburgers. By today over 120 MCD restaurants operating island-wide and Serves for 1.2 million
customers per week and approximately 9000 employees contribute for the operations of MCD in
Singapore (McDonald’s, 2015).Since then MCD has passed numerous miles tones in Singaporean
fast food market(see appendix A).Moreover, For past 30 years MCD has adopted to different
strategies and adoptions and improvements of their products to increase the marker share and
infiltrate the fast food segment of the Singapore F&B sector(see appendix B).
1.4 Over view of the marketing management
Marketing management is chemistry of choosing target markets and art of building profitable
ties with such target markets. Marketing management depends on the industry that deals with and the
size of the business. Application of effective marketing management procedure will increase the
customer base, improve customer perception about company’s products and services, and improves
perceived value of the company (Marketing Management, 2015).
1.4.1 Definition of marketing and marketing management
Definition of marketing can be introduced as “Marketing is the process by which companies
create value for customers and society, resulting in strong customer relationships that capture value
from the customers return (Kotler P. ,., 2014).”
At the same tine Kotler defines marketing management as a process which comprises with
“analysis, planning, implementation and control of programs designed to bring about the desired

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exchanges with target audiences for the purpose of personal and mutual gain. It relies heavily on
adoption and coordination of the product, price, promotion and place for achieving response”.
In nut shell marketing in action is marketing Management.in other words it is focused on
practically applying of marketing tools and techniques, management of a company’s activities and
resources (Meaning & Functions of Marketing Management, 2010).
1.4.2 Roles and function
Focus of marketing management role is upon both physical and physiological factors of
marketing as shown in figure 1 below (Meaning & Functions of Marketing Management, 2010);
Figure 1 : Role of Marketing Management
Functions of marketing management can be summaries as illustrated in figure 2 which shown
below. (See appendix C).
Physical factors
fulfilling consumer needs &
demands buy better product
design, channel of distribution
and other functions
buy better productdesign
channel of distribution & other
functions
Physiological
factors
Discoveringthe needs and
wants of the consumer
Changing patterns of buying
behavior
Consumer Habit etc.

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Figure 2 : Summarized Functions of Marketing Management
Aim of all foresaid functions is to achieve the goals of marketing.
1.4.3 Importance of marketing management to an organization
As per the Kotler’s thoughts, "Marketing management is accomplished by carrying out marketing
research, planning, implementation, and control" (Keller). It provides a sophisticated mode of
transport for a company to (Emmanuel, 2009);
 determining the customer needs /wants;
 developing the product and/or service to satisfy the needs or wants;
 developing the processes to reach the customers;
 determine the methods to distribute the products and/or service;
 Creating a place for transaction of the product and/or service with the customers and in the final
analysis, satisfying the customer’s needs or wants.
2 Core concepts of marketing
It can be identified three major core concepts of marketing and they are as follows;
 Put consumer needs and wants on their top most priority and by means of that a
profit seeking company seeks to retain and attract profitable customers via satisfying
their demands (Customers’ needs/ wants/ demands). In Singapore and Asia like
Marketing
Management
Analysis and
Evaluation
Staffing
ControlCoordination
Organization
Planning
Direction
Marketing
Objectives

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environments it is more challenging since peoples are more group oriented and the
word of mouth effects is very strong tool (Amy Tan, 2009 , p. 2).
 To focus on generating profits by creating values to customers and satisfying their
needs better than competitors (Profitability) (In another words if marketers put
customers first, customers will care profit factor of the business)
 Make involve all the employees of other departments and all levels to serve and meet
customers’ interests instead of doing the job by marketing department alone (integrated
marketing). Figure 4 summarizes the whole concepts.
Figure 3: Summery of Core Concepts of Marketing (Amy Tan, 2009 , p. 3)
3 Marketing process of MCD
Simplified flow chart of marketing process which is adopted from the Kotler’s marketing process
as shown in figure. Under the marketing it is necessary to find customers unfulfilled needs and bring
the products that satisfy those needs.
Customer
Company
Competitor
3 C Principles
Marketing
Resource
Marketing Principle
(Hospitality Marketing
Mix)
Marketing
Strategy
Implementation
and
Control
Marketing Segment
Marketing Target
Marketing Positioning
STP
Analysis
Figure 4 : Simplified Marketing Process

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Designing a customer driven marketing strategy, constructing an integrated marketing program
that Delivers a superior value, building profitable relationship and creates customer delight and
capturing values from customers to create profit and customers equity also integrated in this process.
3.1 STP Analysis for MCD
STP analysis includes evaluating available market segments, Finding the target market and
positioning of own company among the revival companies available.
3.1.1 Marketing Segment
When segmenting the market, market is divided in to smaller segments of buyers with
districted needs, characteristics, or behaviors that might require separate marketing strategies or
mixes (Phlip Kotler, 2014, p. 214). Marketing segmentation for MCD in Singapore can be categorized
according to Geographically, Demographically, Psychologically and as behaviorally.
3.1.1.1 Geographical segmentation: It can be segmented the potential market according to the 28
districts in Singapore. Such as Tampines, woodland, Clementi Orchard, NTU… etc
Figure 5 : Geographical Segmentation of Singapore according to MCD
3.1.1.2 Demographic segmentation: Demographically it can be divided as Kids, Families and as
Students.
3.1.1.3 Psychographic Segmentation: Under psychographic segmentation it is two categories. They
are convenience seekers and lifestyle seekers.
3.1.1.4 Behavioral segmentation: under this they have identified that a customers that comes to
celebrate special occasions such as birthday parties.

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3.1.2 Marketing Target (Customer Profile of MCD)
Target market is market segment which decides to enter after evaluating the attractiveness of
the segment individually. MCD’s target customer segments in Singapore as follows;
Target Segment Product / service offers
Kids (Age 3 to 7 years) : Happy meals with free toys
Families : Drive-Through, MacDelivery, Happy meal
Students (Primary, Secondary, JC, Poly, uni) : A place to hang out or study, Student
meals,Outlets at SP, NYP, NTU, 24-hour
Café goers : Quieter ambience, a place to relax or read,
even for business entertainments such as
` McCafe
Working Adults : Convenience meals; “grab and go” ability
such as Drive –Through, Takeaways,
McDelivery,24-hour, online
3.1.3 Marketing Positioning and differentiation
Positioning includes arranging for a market offering to occupy a clear, distinctive, and
desirable place relative to competing products in the minds of target consumers (Phlip Kotler, 2014, p.
214). The most important aspect of the marketing management is the proper identification of the
marketing environment (Kotler, et al, 2004).Positioning is done via differentiation. Differentiation
involves with wrapping the company’s products with unique features to answer of customers question
of “why I should buy particular product?” to gain competitive advantage in the market. MCD achieves
its differentiation by becoming “kids’ favorite place” and providing place for” shared lifestyle” and
selling the same taste irrespective of the place they order at the same time with clean and friendly
environment for families.
3.1.3.1 Identifying Major Competitors of MCD in Singapore
The competition is intensified in to the Singapore fast food market channel over past few
decades with the entrance of more players. As results of that more pressure was applied in to the
MCD to attract customers. However MCD manages still be the number one player in Singapore
arena by offering vide variety of daily server meals and time-limited set meal discounts and seasonal
meal offers (EuromonitorInternational, 2014). Competitors of MCD in Singapore can be categories as
shown below.

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Table 2 : Type of Competition and Competitors for McD In Singapore
Type of Competition Competitor
Brand(Direct Competition) McDonald, Burger King, KFC, KFC’s Chucky
Club, Subway, Carl’s Jr
Form(Similar in form but not direct) Long John Silver. Pizza Hut, Yoshinoya
Generic(Satisfy the same need of hunger) Chinese restaurants ,Food Courts, Coffee Shops,
etc.
Desire Ice-cream treat, movies, shopping , etc.
The list of Main competitors of MCD in Singapore and their market share as follows;
Table 4 : Competitors of McCafe in Singapore
Competitors
Starbucks, Coffee Bean, Coffee Club, Spinelli coffee, TCC,
Pacific Coffee Club.
Table 3 : Fast Food Market Share According to the Brand in Singapore

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Based on above analysis it is understood that MCD is a market leader in fast food channel in
Singapore at present and it generates more cash than its expenditures and it generates relatively
stable cash flow. Hence, the existence in MCD in Singapore can be illustrated in BCG matrix model
as follows.
Figure 6 : Market Position of McD in Singapore
3.1.3.2 Positioning of MCD in Singapore
Definition of positioning is denotes as “How you differentiate your product or service from that
of your competitors and then determine which market niche to fill (Encyclopedia, 2015).”
It helps to identity within the eyes of purchaser related to particular product or service and it
can be affected by both company’s positioning strategy and competitor actions by number of variables
related to customers’ requirements and to motivation (Encyclopedia, 2015).MCD launces their
positioning mix in number of ways to influence in customers perceptual map in customers mind.
Positioning Tool Description
“Ronald McDonald” branding “Every child’s best friend “. He is funny, generous,
warm, smart, friendly and caring. He is always
surrounded by his McDonald friends-Hum burglar,
Grimace, Birdie and Gals and Guys. His favorite friends
are children.

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“I’m Loving it” Creates new lifestyle and
branding
Focuses on the optimism and enthusiasm that marks
great times and enriching discoveries.
Whatever the customers pursue (sports, education,
creative endeavors, career advancement, boisterous
companionship or intimate moments) there is every
reason to like what you do and love who you are.
Don’t just live life. Love it-at McDonalds, we‘re certain
it’ll love you back.
Sponsorship Olympics(since 1976),World Cup(Since 1994)
Ronald McDonalds Children’s Charity
Delivering Quality Service to Customers Service quality class recognition (1998)
Excellent service award(1996,2003-2006)
Equal Employment Opportunities Employs the elderly
Best Employers in Singapore 2007,SHRI HR Awards
2007
Only 4-hour fast-food restaurant in
Singapore
Table 5 : Positioning Tools of McD
3.1.4 Marketing mix (4P’s)
To achieve foresaid concepts; marketing managers use universally accepted concept called
marketing mix which is widely known as 4P’s in the sellers point of view and 4C’s in the buyers point
of view as shown below.
Figure 7 : Traditional Marketing Mix (4P's/4 C's)

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However, scholars and researches have been found that this is mostly effective for selling
goods and some mismatches with the hospitality industry which sells service instead of good as their
product and they have introduced alternative marketing mix/Hospitality Marketing Mix (Robert D. Reid,
2010, p. 18) which is going to be discuss related to MCD for hospitality industry since it is an service
selling organization itself (see figure 9).Hospitality marketing mix decides on the product and its
characteristics set of price , decide how to distribute their product and choose method of promoting
their product (Kotler P. ,., 2014, p. 9).
Figure 8 : Mac Donald's Hospitality Marketing Mix
3.1.5 Product- Service Mix : this defines a combination of services and products offered by
operations of hospitality inclusive of both intangible and tangible components. It includes things such
as type of food offered, ambient of the restaurant (appearance) and the broad array of elements
offered to the consumer. Further large part of product- service mix is indeed intangible element of
service.
Mac Donald’s
Hospitality
Marketing Mix
MCD Product-
Service Mix
MCD Distribution
Mix
MCD
Pricing Mix
MCD
Communication
Mix
MCD
Presentation Mix

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In that case MCD takes considerable effort to develop their menu to satisfy customer’s wants and they
attend on continuous market researches to find out the behavior of customers on particular product.
MCD manage to provide sincere and stimulating services to their customers. MCD has introduced
Mac-cafe concept, drive- through, kids play area etc. to concept to satisfy their target segments in
service.
Figure 9 : Product Service Mix of McD in Singapore
In order to answer for changing buying behavior/ requirements overtime MCD has
introduced and made phase out old products over the time they are continuously in that process.
MCD has understood that sales of their menu vary time to time at the different points of their product
life cycle as exhibited chart shown in figure 10 (Corporation, 2008).
Figure 10 : Product Life Cycle of McD Products

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Type of product marketing and resources invested by MCD differs depending on the stage of
the product that has been reached. For an instant, launching of new product involves advertising on
television and other means. MCD has portfolio of products which are existing in different stages of
their life cycle at any given time. According to foresaid portfolio the product “Big Mac” in its “maturity”
stage and some are in growing stage (healthier soup and sandwich offerings) both in Singapore and
international arena.
Figure 11 : Product Line of McD
3.1.6 Presentation Mix : In this, it is concerns about increasing tangibility of a product-
service mix as perceived by their consumer. Presentation mix includes the physical location,
atmosphere (lighting, Color and Sound) and personnel.
Figure 12 : Presentation Mix of McD in Singapore

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All MCD restaurants bears unique ambience and carries their brand name, staff is in
energetic mood and with sincere smile, fragrance of foods inside which stimulates hunger of
customers and maintain cleanliness and tidiness as well as they operates play area for kids to
entertain.
3.1.7 Communication Mix : Communication mix involves all communication with
customer and all hospitality operations. Activities such as advertising, research in marketing, getting
consumer feedback and finding perceptions of customers are involved in this process. Further,
communication in hospitality should be two way communication rather than being one way with the
consumer including both traditional advertising and promotions flows from seller to consumer. At the
same time it paves the path to do marketing researches, and other data collection vehicles initiating
communication with various customer segments for collecting information volatile and data (Robert D.
Reid, 2010, p. 19).In relation to MCD; they launces above the line activities including advertising on
TV, Radio, in Cinema, online, using posters sites and newspapers and magazines as well. Moreover
MCD uses other promotional Medias like sales promotions, point of sales display, merchandising,
direct mails, telemarketing, event sponsoring, seminars, loyalty schemes, door drops, demonstrations
etc. (McDonald’s, 2015). Further, MCD have enabled loyal customer societies “Singaporean Moms
Panel”, “the McFamily” and via them they have managed to initiate interactions to find out what parent
needs for their families and children to respond directly to changing needs of families. As an
example; MCD have used it for development of ‘Happy meal’ choices and development of restaurant
activities and ambience of MCD restaurants (Ankit, 2011).
3.1.8 Pricing Mix : In addition to actual price a form charges, the pricing mix encompasses the
consumer’s perception of value. The pricing mix includes such variables as volume of discounts and
building multiple products together for an overall discount price. This bundling approach is used
extensively by fast-food chains as method to increase spending per customer (Robert D. Reid, 2010,
p. 19).
The pricing mix of MCD is sharply concerns of its price spectrum since their clientele is
bifurcated from “mid-to-lower income part” that are more vigilant about value they gain for their
discretionary spending pattern .Hence MCD’s operates with pricing flexibility and provides “varying
levels of affordability” and a “value ladder” for their customers to climb as per the desire of customer
(see Appendix D) (Thompson, 2013). While maintaining competitive and affordable pricing, they also
practice international pricing and price discrimination such as providing student meal for $4.50 etc.
Again MCD also uses bundling pricing approach as usually adopted by fast food chains (see
appendix E).

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3.1.9 Distribution Mix: Distribution mix defines all distribution channels using between target
market and firm such as restaurants which produces and distributes, food, Internet Sales E-commerce
etc. As distribution mix of MCD it can be identified that direct marketing channels, intensive
distribution and physical outlets including opened by MCD on their own and Franchisees.
3.2 What type of market segments should MacDonald’s Singapore focus
on in future and reasons for it.
Due to improvement in living standards and medical technologies, there has been a rising
trend of aging population as shown in graph below and it results more health conscious population
and increases dependency ratio. Moreover, it shows declining birth rates and Singapore government
is trying to improve the birth ratio by various means.
Price Range of MCD
Figure 13 : Pricing Mix of MCD

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Figure 14 : Annual Fertility Rate and Population Age Pyramid in Singapore
Therefore in future influence of children plays a major role in buying decision of parents since
parents pay more love and care on their children. In that case Children should remain as MCD’s one
of the main target market because;
 “Every parent love their kids”
 It generates cross-selling opportunities
 Irrespective of fall in population for target mareket due to declining birth rates can
boost the demand through in creasing frequency , buying behaviours and upselling
Demand= Population x Price x Frequency.
Further they can capture their potential market which is ageing population via product
development adhering to Ansoff’s market expansion grid which is shown below.
Figure 15 : McD’s Market Expansion Grid

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4 Service Marketing
4.1 Definition of Service Marketing
The definition of service marketing can be denoted as ‘The promotion of economic activities
offered by a business to its clients. Service marketing might include the process of selling
telecommunications, health treatment, financial, hospitality, car rental, air travel, and professional
services’ (www.businessdictionary.com, 2015).
4.2 Characteristics of Service Marketing and measures taken by MCD in
view of overcoming negative impact of them
Service marketing is comprises with four characteristics as shown figure in below .They are;
a. Intangibility
b. Inseparability
c. Variability and
d. Perishability
Figure 16 : Characteristics of Service Marketing
Intangibility : Since service products are intangible, it cannot be seen, tasted felt, heard or
smelled before they purchased by a customer. Therefore customer cannot evaluate it and increases
the uncertainty level. Moreover, hospitality and travel industry products are experiential only; we do
not know the quality of the product until after we have experienced it. A customer of a restaurant will
not know how good the meal is until after he consumed it. (Kotler P. ,., 2014, p. 39) .In cause of
reducing the factor of intangibility, customers of a restaurant are searching for signals of service
quality and they draw conclusion of the service as marketing mix explains. As Kotler explains it is very
important to make tangible the service in order suggest a positive impression about the quality of the
service that they are getting in the minds of customers by the service provider (Kotler, 2014) and such
tangibility plays vital role in service marketing. Intangibility can be reduced by skilled advertising and
publicity in view of supporting strong and clear positioning. Also, ‘The physical evidence of the service

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production process can be used to communicate service quality attributes and create the service
experience.’ Customers evaluate the service during the time the service is delivered to them (Bebko,
2000).
Tactics of MCD : As many other service providing companies MCD also uses physical
evidence and presentation to demonstrate their quality of service and reduces the intangibility.
Further, MCD has organized their physical settings to generate thoughts in customers mind that they
receive efficient and quick service. Staff of MCD has dressed properly and always looks helpful with a
pleasant smile on their face to suggest their good service. Apart from that MCD has kept their pricing
simple and clear and displays the ingredients of their products and without hidden charges. Further,
MCD has managed to present their outlets with clean environment, good layout, good menu, and
proper lightning.
Inseparability : In hospitality sector, products are first sold and producing and consumption
occurs at the same time. In view of occurring a transaction both the service provider, as well as the
customer must be present and both the customer and employee are often part of the service product.
The food in the restaurant may be outstanding, but if the employee serving the food to the customer
has a poor attitude or provides inattentive service, customers will not be satisfied with their
experience’ (Kotler P. ,., 2014, p. 41).According to the argument made by Edvardsson et al. (2005)
inseparability could make problems more than opportunities since it bring uncertainty to the service
providers. The employee of the service organization is a part of service and customer as well. Both
the parties have influence on the service being offered and in that point of view customer also
responsible for the service they receive (Davies, 1998).For example; unethical behavior of a customer
may create dissatisfaction among another. At the same time it gets complicated if a customer
possesses poor knowledge/certainty about the product/ service they need. So the service sector may
train their staffs that provide service to help customer articulate their needs to select the appropriate
services (Davies, 1998). However as per the findings of Kotabe and Murray (2004), it is said that
inseparability of some service activities would make separable via adhering to advance technology.
Further it is said that customers and service providers are dependent on one another for the success
of service provided (Lawler, 2001). Sierra and McQuitty (2005) says that ‘this is the very reason why
there is a social exchange between service employees and customers to improve sense of shared
responsibility to generate positive emotional suggestion with service exchange. Further it is said that
such emotion generates loyalty feeling towards the service providing firm and that would be used to
create brand loyalty for service providing firm.
Tactics of MCD : It can be understood that MCD has taken considerable amount of measures
to inseparability of their service in to separable service to minimize uncertainty that could be
generated and has adapted to Company, Customer and Employee based marketing policy’ for a
longer period as shown figure18 .

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Figure 17 : Three Types of Marketing Policy of MCD
MCD outlets and personals are techno-savvy and welcome advance technology. MCD has
developed online order taking system and installed free wi-fi facility in their outlets around
Singapore.to minimize the ambiguity of customers it has clearly mentioned how to use online order
taking procedure step by step on their web site, path for drive throw counter displaying arrows,
displaying their menu above the counters of outlets. MCD develops social responsibility marketing to
improve brand image and to partnering their customers for their charity events and social events such
as ‘Ronald McDonalds children charity events’, ‘veg-out day’ ‘going green’ and employing elderly etc.
they have created loyal customer groups such as ‘“Singaporean Moms Panel”, “the McFamily” and
‘McDonalds membership card’ and partnering them for development of products via getting insights of
them about MCD’s products. As well as giving continuous periodic training to their staff.
Variability : The quality of service depends on who provides the service, where and when
they are being provided. Thus it is highly variable and because it is produced and consumed
simultaneously, ability controlling the quality is limited and service gap may occur if not meet
customers expectation as shown in figure 17. During peak periods due to fluctuating demands it is
hard to deliver consistent service product. ‘A guest can receive an excellent service one day and
mediocre service from the next day. In the case of mediocre service, the service person may not have
felt well or perhaps experienced an emotional problem. Lack of communication and heterogeneity of
guest expectations also leads to service variability.’ (Kotler P. ,., 2014, p. 41 ). Therefore quality
control becomes critical and in view of achieving that service organizations are necessary to hire right
people, standardize the service and continuously monitor the customer satisfaction. It is necessary to
undergo newly absorbed crew through proper training especially frontline crew who come direct
contact with the customers in order to provide better service for customers (Langford, 2009).It is
necessary to standardize the service and product quality, staff become aware about their
responsibility and act accordingly, as well as certain employee motivation policies also should added
and monitor the customer satisfaction as well.

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Tactics of MCD : MCD has been able to manage internal service quality via superior employee
selection and training both franchise restaurant and own restaurant employees; generate satisfied
and productive service employees via owing more satisfied, loyal, energetic and hardworking
employees; great service value via fast delivery, more efficient and effective customer value creation;
attract and retain satisfied and loyal customer base. They implements employee motivation programs
to motivate and train staff and monitor customer satisfaction by means of surveys, complaints and
suggestion system, organizing interactive sessions with customers etc. Further, MCD has internal
financial and non-financial rewarding system in view of motivating staff such as promotions and
incentives etc.
Perishability : Service products are perishable and cannot be stored or resell. If a service
organization could not able to make an opportunity to sell income will be lost. Hence it is necessary
do real time marketing to overcome form the profit loss which could have gained. Service
organizations should search for ethical possibilities of influencing pre-purchase evaluation of service
characteristics by customers belongs to particular brand by finding solution to intangibility, variability
and inseparability.
Tactics of MCD : MCD is practicing a strategy which finding answers to intangibility, variability
and inseparability issues they come across when they perform the business. They practice various
tactics to solve above issues. For an example MCD tries to leverage their service offering to
differentiate themselves from their competitors and attract customers via differentiating their image
through symbols and via branding demonstrating ‘McDonald’s golden arches.
5 Business Environment of MCD
Environment (events or situations) around a business affects the way of operating of a
business resulting both positive and negative consequences. If a company remains unchanged and
steadfast without properly responding to such events or situations they might get fail to make their
way. Such events or situations which have a potential of affecting a business in positive or negative
way are called as ‘environmental factors’.
Source: CTH Study materials, 2010, p133
Figure 18 : Service Gap

24
Basically, it can be identifying two types of environmental factors; internal environment factors
occur within the company itself and external environmental factors which occurs outside the
organization.
Internal environmental factors easy to control and external environmental factors are rather
difficult to control or impossible to do so. External environment also can be divided in to two
categories as Micro-environment and Macro- environment. The figure 19 illustrates the company
environment clearly and here it is going to be discussing about the Micro and Macro environment
related to MCD. It helps to understand the actors and forces that affect the marketing management
ability of MCD and how MCD develop and maintain successful transactions with its target customers.
Figure 19 : Internal and External Environment of a Company
5.1 External Environment of MCD
The External environment of MCD is shaped by influences of Singapore and global economy,
customer demographic, Societal values and lifestyles, Singaporean governmental legislation and
regulations, technology, suppliers, substitute services, rival fast food restaurants, new entrants to the
fast food channel, and the customers and general public as shown in figure 20. These relevant
factors and influential factors outside the boundaries of MCD and shapes the direction, objectives,
strategy and business model.

25
5.1.1 PESTLE analysis for MCD
PESTLE analysis is used to analyze and understand the external environment of a firm which
operates within a particular geographical area. The word PESTLE denotes Political, Economic, Social,
Technological, Legal Environmental factors of a business. PESTLE analysis for MCD is describes
below;
5.1.1.1 POLITICAL FACTOR
MCD operates more than 110restaurants in Singapore and serves for 1.2 million people per
week. Therefore MCD operations are highly sensitive to changing political situations in Singapore.
Changes of in rules and regulations such as labor laws, taxation, food administration or laws related
to health of the country affects to the business operations of MCD. When it considers the political
situation of Singapore it can find out that the political behavior is bureaucratic and power is totally
vested on government.
Further it is found that Government of Singapore believes in communicating its efforts directly
to the public rather than gathering opinion from the public. Scholars say that Politics of Singapore is a
mixture of democracy and bureaucracy.
Considering the McDonald business we can say that it handles different political situations in
its business operations as it is present in more than 119 countries. At many locations the company
faces problems like changing rules and regulations because of health implications of the fast food e.g.
Figure 20 : Components of McD's External Environment

26
obesity or cholesterol. Handling political situation of Singapore is not difficult for McDonald as it is
required to follow the rules and regulations of the country which it is doing very well.
Further, Singapore government has been active in encouraging healthy living and lifestyles
from diet regimes for national servicemen and students to poster in hawker centers encouraging the
consumption of more vegetables and less meat. Correspondently Singaporeans are increasingly
becoming more health-conscious (Levy taxes on unhealthy foods to tackle obesity, 2007).
5.1.1.2 ECONOMIC
Economy of Singapore is highly attracted by different industries of the world. Heritage
Foundation’s Index of Economic Freedom ranked Singapore as second most open economy of the
world. Economy of Singapore is highly stable in macroeconomic terms. There is no foreign debt on
Singapore; government revenue is high and consistently in surplus. Economy of Singapore has
shown its strength during the financial crisis. When in 2007 – 08 world was suffering from economic
slowdown and many neighboring countries of Singapore were sliding, Singapore showed economic
stability. In fact in 2010 Singapore emerged as the fastest growing economy of the world when most
powerful economies of the world like U.S. and Europe were struggling. Area of Singapore is very
small as well as it has less natural resources. The key industries which contribute in the development
of the economy of Singapore are:
 Exports of electronics items and machinery.
 Tourism.
 Financial Services.
 World’s largest cargo seaport (Guide me Singapore, 2012).
Taking fast food business into the mind we can say that economy of Singapore is highly beneficial
for the food industry. First of all it is a tourist place and that is why there is a scope of establishing
food business for different kind of people. Economy of Singapore is growing at a rate of 4.9 % and
has high level of disposable income. GDP of the country is $ 318.9 billion and GDP per capita is $
62100 according to PPP. With high GDP per capita and continuous growth the country attracts food
business. McDonald has established itself in Singapore very well and has covered the small area of
the country successfully.
5.1.1.3 SOCIAL
Life style of Singapore very high and it has given a motive to start operations in Singapore
though it is small land plot. Further it is multicultural multilingual and multi religious country which has
huge tourist attraction. Therefore, there is an existing high demand for fast food from tourists.
However, since tourists come from different countries they have different tastes and preferences. A

27
fast food business depends on the taste and preferences of the consumers and for McDonald taste
and preferences vary time to time and place to place in Singapore (Focus Singapore, 2012).
Culture of Singapore is materialistic and there is a constant pressure on the people. They
maintain their life according to 5 C’s: Cash, Car, Credit Card, Condo and Country Club. Despite of the
stress Singapore was named as happiest country in Asia in a report of ABC News. People who live in
Singapore are come to visit the country are basically from China, India, Malaysia and other parts of
the world. McDonald has already established its business in these countries and hence it does not
have to face much difficulty in dealing with the social preferences of Singapore (Guide Me Singapore,
2012).As recent trends it can be identify that mere Singaporeans are becoming health conscious and
general perception has been formed that fast foods are considered as unhealthy, junk food.
5.1.1.4 TECHNOLOGICAL
Technology plays a big role in the development of a country as well as in business
development. Singapore is technologically developed country. This also helps McDonald in its
production, distribution and marketing. McDonald mainly uses television commercials for its
marketing. Continuously growing internet facilities and subscribers has helped the company in
establishing its business. Company invests in its branding activities with the help of social networking
websites like Facebook and twitter. Technological improvement in inventory management, vendor
management and supply chain management is highly beneficial for the company. With the help
of computer technology pricing and billing has become very easier (Jessop, S, K, 2010).
5.1.1.5 Legal Factors
There has been the recurrent bellowing in opposition to the fast food industry. This has
similarly made MCD’s apply a more careful consideration on their corporate social responsibilities. On
the whole, this addressed the need of the company to form its corporate reputation to a more positive
one and a more socially responsible company.(2005)The reputation of MCD’s is apparently huge
matter. Seen on the website of the company .it seems that they have acquired strides to take in hand
the key social censures that they have been berating them in the past decades. The company has
provided their customers the relevant data that they need with reference to the nutritional substances
of their products. This is to attend to arguments of obesity charged against the products of the
company. In the same way, the consumers provided freedom in choosing whether or not they want to
purchase their meals.
This tied up with socio-cultural attributes of the market on which they operate. For instance,
operations in predominantly Muslim countries require their meat to conform to the halal requirement s
of the law.in the same regard, those that operate in countries in the European Union should conform
to the existing laws banning the use of genetically modified meat products in their food. Other legal

28
concepts like tax obligations, employment standards and quality requirements are only a few of
important elements on which the company has to take into consideration. Otherwise, smooth
operations shall be hard to achieve.
5.1.1.6 Environmental
The social responsibility of McDonald’s on a region is influenced by the operations of the
company in that specific region. These entail accusations of environmental damage. Among the
reasons why the company is charged with such claims is the employment of non-biodegradable
substances for the glasses and Styrofoam coffers, which is offered for the meals (Ivythesis, 2011).
5.2 Reasons to take Macro-Environment in to consideration During
Planning Process
The forces close to the organization that affect its ability to serve its customers are the micro-
environment (Kotler, et al, 2004). This include the fast food shop itself, competitors – like KFC,
Starbucks and Burger king, and publics – like banks Social media and mass media. Hence, macro-
environment influenced by the larger societal forces that affect the whole micro-environment ( Kotler,
et al, 2004).During the planning process it helps to;
 Determine where the particular company exists at present and where should
company heading to.
 Identify possible opportunities and threats to a particular industry as a whole which
are outside and beyond control of the industry and forecast trends in future in relation
to the industry, rises of interest rates etc.
 After completing the analysis of macro environment a company can answer the
questions of “what will affect the growth of particular industry as a whole” and “what is
the likely impact of all of the things that affect the growth of the industry which
company belongs to”.
When it analyses with the scenario effects on MCD; Singapore is a healthy playground for
MCD since it is a multinational fast food company which has roots on many countries in the world and
in Singapore it has established itself extremely well. PESTEL analysis clearly explains that Singapore
is a highly recommended country for fast food sector since the economy of the country shows
continuous growth and people have high level of disposable income. Moreover Singapore is tourism
based country and because of that provides vast opportunities for fast food industry. Further,
economical, technological and social environment existing are in favor for MCD for its operations with
excellent marketing strategy and sophisticated business plan which implementing at present.

29
6 Summary
McD started its operations on Singapore soil three and a half decades back and has
managed to hold the largest market share in fast food market in Singapore. They have shaped their
marketing management strategies by analyzing both internal and external environment and acting
accordingly to gain profit from volatile environment in Singapore. In this report, it is tried to identify and
analyze usage of marketing core concepts to the McD’s business, explain the characteristics and
impacts of service marketing for the business of McD in Singapore,Mrket segments of McD and what
type of target market they would target in future, etc. However it is not a process which has an end
and it is necessary to continue this regularly.
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APPENDIX A
MILESTONES OF MCD IN SINGAPORE IN BRIEF
 Apr 2009 Hewitt Best Employer Award 2009
o Hewitt Best Employer in Asia Award 2009
 Feb 2009 HRM Awards for Best Employer Branding and Innovation in Recruitment
 Jul, 2007 McDonald’s and Managing Director Recognized in SHRI HR Awards 2007
o After recently being listed among Singapore’s top 10 Best Employers, McDonald’s
was once again recognized for leading HR practices when it was conferred two
awards at The Singapore HR Awards 2007 organized by the Singapore Human
Resources Institute (SHRI) – the Corporate Award and the Leading CEO Award for
its Managing Director, Kenneth Chan.
 May, 2007 “Red PEA – PLAY, EXERCISE, ART” – McDonald’s Unique Brand Family
Entertainment
o Recognizing the significant role Moms play in the well-being of families, and to learn
from their valued views and perspectives, McDonald’s took the initiative to set up the
first Moms Panel, comprising 5 Singaporean moms from diverse backgrounds, to
listen to what parents want for their children and respond directly to families’ changing
needs. The moms’ input would be sought in Happy Meal menu development, Happy
Meal choices, and in-restaurant activities for families and educational outreach for
children’s well-being.
 May, 2007 McDonald’s Sets Up First Moms Panel in Singapore

33
o Recognizing the significant role Moms play in the well-being of families, and to learn
from their valued views and perspectives, McDonald’s took the initiative to set up the
first Moms Panel, comprising 5 Singaporean moms from diverse backgrounds, to
listen to what parents want for their children and respond directly to families’ changing
needs. The moms’ input would be sought in Happy Meal menu development, Happy
Meal choices, and in-restaurant activities for families and educational outreach for
children’s well-being.
 Apr, 2007 McDonald’s Employees Take Centre Stage in Employer Brand Campaign
o “I-stories” abbreviated from “I’m loving’ it” and “inspirational” stories of McDonald’s
employees were unleashed in eye-catching advertisements at the Raffles Place and
City Hall MRT stations as part of an employer brand campaign. Each of the 17
featured employees’ stories celebrates people excellence and the endless
opportunities for individuals who seek a career at the Golden Arches.
 Apr, 2007 McDonald's Amongst Singapore’s Top 10 Best Employers
o McDonald’s long-standing philosophy that the company can grow only if it enables its
employees to grow, contribute and feel pride in their work garnered it a 5th place
ranking among Singapore’s Top 10 Best Employers. The Best Employers in
Singapore 2007 study conducted by global human resources services firm Hewitt
Associates in partnership with The Business Times and The Straits Times Recruit
assessed more than 750 participating companies. The award marked the first time
that a company in the Quick Service Restaurant sector was singled out as one of
Singapore’s Top 10 Best Employers.
 Apr, 2007 The First Ronald McDonald Family RoomTM Opens in Singapore
o Located at KK Women’s and Children’s Hospital, the Ronald McDonald Family Room
is a ‘home away from home’ for parents to stay or rest in, as they tend to their sick
children who are hospitalised. The opening on April 12, 2007 was officiated by Dr
Vivian Balakrishnan, Minister for Community Development, Youth and Sports and
Second Minister for Information, Communications and the Arts. The Ronald
McDonald Family Room occupies one of the closed wards in KKH’s Women’s Wing
and has 12 bedrooms, a dining area, a pantry, ‘quiet rooms’, an adult/children’s
library, a children’s playroom, TV lounge and internet corner.
 Apr, 2007 Felicia Yee, our Singaporean Global Casting Star Goes Global
o The Singapore launch of McDonald’s new packaging featuring 24 “stars” selected
from its first-ever online consumer Global Casting Call with our very own “Star”,
Felicia Yee, greeting more than 50 million people worldwide. She joins the ranks of
famous faces who have been featured on McDonald’s packaging, including Olympic
athletes, tennis superstars Venus Williams and Serena Williams, basketball sensation
Yao Ming and pop group Destiny’s Child.
 Feb, 2007 Breakfast Launch - McCafé Premium Coffee Available All Day Island wide
o In response to popular demand since the first McCafé opened in late 2003,
McDonald’s introduced the all-time McCafé favourites – Cappuccino, Latte and Long
Black – in almost all its restaurants islandwide. With this initiative, McDonald’s has
become the largest purveyor of premium coffee at great value for its customers.
Coffee lovers can enjoy their McCafé premium coffee made only with 100 percent
Arabica beans all day at McDonald’s restaurants and via McDelivery 24/7.
 Nov, 2006 Launch of Grilled Chicken Bun
o In celebration of the year’s World Children’s Day in Singapore, McDonald’s launched
the Grilled Chicken Bun, a new Happy Meal entrée especially for children. Grilled
Chicken Bun is a lightly grilled chicken patty with fresh tomato slice, crisp lettuce and
a light touch of mayonnaise between tasty buns, almost akin to a Happy Meal version
of Mum’s favourite Grilled Chicken Foldover.
 Nov, 2006 Official Opening of McDonald’s Ang Mo Kio Town Garden West

34
o McDonald’s celebrated the official opening of the 24-hour McDonald’s Ang Mo Kio
Town Garden West restaurant, the second collaboration between McDonald’s
Restaurants and the National Parks Board (NParks), after the well-received
McDonald’s West Coast Park Restaurant. Complete with a Drive-Thru and McCafé,
the restaurant iffers a close-to-nature alfresco dining experience with its unique
architectural concept of elevated decks integrated with the natural foliage. The
opening was also held in conjunction with World Children’s Day and the launch of the
new Grilled Chicken Bun Happy Meal item.
 Nov, 2006 Singaporean among McDonald’s 25 Global Casting Stars
o McDonald’s announced the 25 “stars” selected from its first-ever online Global
Casting Call. Felicia Yee from Singapore joined the 24 other selected “stars” from
Asia, Australia, Europe, Latin America and North America to be featured in
McDonald’s first ever global packaging showcasing customers from around the world.
 Aug, 2006 1st 41 Tourists Given A McDonald’s National Day Welcome
o To commemorate Singapore’s 41st birthday, McDonald’s and the Civil Aviation
Authority of Singapore (CAAS) staged a special welcome to the first 41 tourist arrivals
at Changi Airport. Each tourist received an exclusive McDonald’s “Uniquely
Singapore” Teenie Beanie garland, presented by Ronald McDonald, Chief Happiness
Officer at Changi Airport’s Terminal 1.
 Aug, 2006 Veg Out Day
o McDonald’s launched Veg Out Day as part of its ongoing support for the Health
Promotion Board’s “eat 2 servings of fruit + 2 servings of veggies” public educational
outreach. Every first day of the month, customers can enjoy McDonald’s Fresh
Sidekicks such as Corn Cup, Fresh Salad and Apple Dippers at $1 each, with no
additional purchase required. The Fresh Sidekicks are usually priced at $2.50 ala
carte.
 June 2006 McDonald’s Sent Three Singaporean Kids As Player Escorts To World Cup
o For the first time, children from Singapore participated as player escorts at the FIFA
World CupTM. Three parent-and-child teams were selected Danyon Christian Tay,
Luke David Levy and Colin Oon made history as the first children from Singapore to
escort the world’s best football players onto the pitch at the 2006 FIFA World Cup
Germany Opening Match (Germany vs Costa Rica) on June 9, 2006. This was
made possible by McDonald’s which, as a World Cup sponsor, had the exclusive
rights to the 2006 FIFA World Cup Player Escort Programme.
 Mar, 2006 Launch of more menu choices McDonald's commitment to help customers
achieve balanced eating saw the launch of Corn Cup, Apple Dippers and Fresh Salad as
wholesome menu choices to complement Extra Value Meals.
 Dec, 2005 McDonald's makes rice Fàn-tastic! The Chicken Fàn-tastic and Beef Fàn-tastic
were launched, presenting a new, exciting way to enjoy a hand-held rice meal. By February,
one million Fàn-tastic had been sold.
 Aug, 2005 McDonald's goes 24 Hours McDelivery was relaunched as a 24-hour service,
available seven days a week and with no minimum order requirement. 18 McDonald's
restaurants also started staying open 24 hours.
 July, 2005 Olympic Day Run In Singapore, the Olympic Day Run on July 2 was officially
flagged off by Dr Jacques Rogge, President of the International Olympic Committee.
McDonald's is the exclusive worldwide partner of the Olympic Day Run.
 June 2005 Mix 'N' Match Happy Meals McDonald's Singapore launched the Mix 'N' Match
Happy Meals, a new menu concept comprising a wider variety of wholesome choices, at no
extra charge.

35
 Dec, 2004 Launch of Grilled Chicken Foldover McDonald's introduced the Grilled Chicken
Foldover, a new style of McDonald's sandwich made with wholesome flatbread.
 May, 2004 ez-link Cashless Payment and Top-up Service McDonald's became the first quick
service restaurant here to accept the ez-link card as a payment mode, as well as to offer a
top-up service.
 May, 2004 McDonald's West Coast Park
o McDonald's first tropical resort-inspired restaurant opened at West Coast Park.
Includes a McCafé, two alfresco dining areas and a landscaped pond
 Mar, 2004 Wi-Fi at McDonald's Singapore's first "second generation public Wi-Fi network" in
McDonald's was officially launched by Mr Khoong Hock Yun, Assistant Chief Executive
Officer (Industry) of Infocomm Development Authority of Singapore.
 Oct, 2003 "HOT" Customer Service McDonald's introduced the hand-held order taking (HOT)
device, a technological first in McDonald's Asia.
 Oct, 2003 First McCafé opened in Singapore McDonald's opened its first McCafé at Great
World City in Singapore. McCafé's Latte was ranked 4-star, in an independent coffee taste
test conducted by The Straits Times. It surpassed the ranking of numerous established
specialty brands.
 July, 2002 Chicken Big Mac McDonald's Singapore became the first in the world to offer the
Chicken Big Mac.
 Jan, 2001 New Hello Kitty and Dear Daniel plush series launched in Singapore ahead of the
rest of the world Singaporeans' fascination with Hello Kitty and Dear Daniel prompted
McDonald's to launch its new series of "Royal" Hello Kitty and Dear Daniel here, ahead of
other countries.
 Dec, 2000 McDonald's opened 14 more restaurants in 2000 bringing the total to 122
restaurants
 Sep, 2001 McDonald's at KK Women's and Children's Hospital McDonald's first restaurant in
a hospital opened at the KK Women's and Children's Hospital. Special items were added to
the regular menu, including lowfat milk, Coke Light, soup and salad.
 Apr, 2000 McDonald's first alfresco restaurant opened at Scotts Road
 Jan, 2000 Hello Kitty McDonald's launched six exclusively designed pairs of limited edition
Hello Kitty and Dear Daniel plushes in wedding attire. The most successful promotion to date,
there were record sales of the plushes and 'Kitty Mania' made headlines around the world
 Apr, 1999 10 Million Chicken McCrispy sold Chicken McCrispy was a resounding success.
An amazing 10 million pieces was sold in the first year alone. To thank loyal customers, the
original price of $3.90 was brought down to just $2.95.
 Jul, 1999 Celebrating 20 Years of Smiles McDonald's celebrated its 20th anniversary with
an exhibition at the Singapore History Museum and an advertising campaign that featured
ordinary people reminiscing about their first experiences at McDonald's, when it opened at
Liat Towers in 1979.
 Feb, 1999 Pooh Plushes McDonald's Pooh plushes proved once again to be one of the
fastest-selling collectibles with one million plushes cleared within 10 days of the "Pooh's
Back" promotion. This superseded the 700,000 Pooh and friends plushes that were sold in
the first Pooh promotion in 1997.

36
 Dec, 1998 McDonald's opened 8 more stores in 1998 bringing the total to 108 restaurants
island wide
 Dec, 1998 McDonald's continues to be Singapore's largest advertiser with some $10 million
spent across all media in 1998
 Aug, 1998 Snoopy goes on a world tour of McDonald's The Snoopy World Tour featuring 28
designs became one of the most popular McDonald's collectibles with more than 800,000
pieces sold.
 1998 Its the Big Mac's 30th anniversary! Approximately 600 million Big Mac sandwiches
were consumed annually in the United States. In Singapore, 3.3 million Big Mac, i.e. about
one per Singaporean, were sold in 1997.
 Dec, 1997 McDonald's surpassed the 100 store mark with Nanyang Polytechnic as the 100th
store.
 Dec, 1996 McDonald's opened 20 restaurants in 1996
o Dec, 1996 McDonald's sold 21 million meals comprising breakfast, lunch, dinner and
Happy Meals
 Dec, 1996 101 Dalmatians Happy Meal
o With 1.2 million pieces sold, the 101 Dalmatians became the all-time best-
selling
 Happy Meal figurines. The promotion was brought back a year later due to
popular demand.
 Dec, 1996 McDonald's at Seagate, Ang Mo Kio
o First quick service restaurant (QSR) to open in a staff cafeteria of a multinational
company.
 1996 First McDonald's in a Community Centre
o This was not only the first McDonald's restaurant in Hong Kah Community Centre, it
was also the pioneer within the quick-service food industry.
 Dec, 1995 McDonald's opened 11 restaurants in 1995
 Dec, 1995 McDonald's 15th Anniversary of Happy Meal
 In 1995,
o McDonald's celebrated the 15th anniversary of the Happy Meal and introduced 15
collectibles from international licensors.
 Jul 5, 1993
o First McDonald's Restaurant in an Educational Institution McDonald's Singapore
Polytechnic opened.
 Sep, 1992 McDonald's Becomes Halal
o McDonald's received Halal certification from MUIS (The Islamic Religious Council of
Singapore) which approved McDonald's food for consumption by Muslims.
 Apr 10, 1992
o Beijing, China Operations
o McDonald's Singapore sent an 11-member team to help startup operations in the
world's largest McDonald's restaurant in Beijing.

37
 Oct, 1991 "A Day in Singapore"
o This was the first local TV commercial to feature all four official languages in one
advertisement.
 Jun 4, 1991
o Opening of McDonald's Place, McDonald's new corporate headquarters at King
Albert Park
 1989 Ronald McDonald Children's Charity (RMCC)
o RMCC Singapore was established to help raise funds for sick children from needy
families.
 May 22, 1984
o First McDonald's in a Public Housing Estate .It opened at Hougang and set the
growth for more McDonald's restaurants in HDB neighborhoods.
 Oct 27, 1979
o First McDonald's Restaurant in Singapore
o On opening day at Liat Towers, Orchard Road, we served up the world's highest
volume of hamburgers in a single day.
Appendix B
Different Strategies and Adoptions and Improvements of Mcd’s Products
McDonald’s has been in Singapore for 30 years. It has been constantly improving its product
over the years. It has made changes in the ingredients by using healthier alternatives such as the use
of non fat oil for its French fries. In addition, it has also been introducing new products to cater to the
taste of the local Singaporeans.
Since its inception in 1979, McDonald’s Singapore has come up with products that are unique
to the tastes and lifestyles of Singaporeans. Not only are the names of the burgers introduced for
Singapore market are unique, but their tastes and ingredients also reflect the uniqueness of the
Singapore market.
Menu Refinements McDonald’s Singapore not only introduced new products for the local
consumers it also refined its product ingredients. Furthermore due to the increasing public interest in
good health and nutrition, McDonald’s Singapore made these refinements to meet the changing
demand of the contemporary health conscious Singaporeans. Hence, McDonald’s Singapore has
been constantly re-evaluating the ingredients in its product over the last 30 years. In 1992 McDonald’s
dropped monosodium glutamate (MSG) in all its meat patties. In 1996 McDonald’s switched to 100%
vegetable oil to cook its burgers, fries and hash browns. Other than improving the ingredients used,
McDonald’s has made its nutritional information about its menu available to its customers since March
199. McDonald’s Singapore was the first fast food chain to do so in the city-state. This nutritional
information allows Singaporeans to have a good idea of the food that they are eating. This is
important, as increasingly customers are becoming very particular about the type of food they eat and
the kinds of ingredients that are used. Customers can also order any of the McDonald’s Singapore
food without grill seasoning or dressing. Customers who find the mayonnaise or tartar sauce used in
the burger too flattening can place special orders for their burgers to come without these sauces.
Pricing strategy of MCD
Pricing strategy McDonald’s Singapore has adopted a differential pricing strategy across the
state. For instance, the price of a large packet of French fries costs about 20 cents cheaper in
neighborhood stores and outlets at the Singapore polytechnics than its outlet in the Central Business
District (CBD) area. This is largely attributed to the high rental costs in CBD areas. McDonald’s often
distributes coupons to reward loyal customers as well as motivate potential customers to try its menu.
In 1998, there was the giving away of 6 pieces of McNuggets for every chicken value meal
purchased. Sometimes, this strategy ties in with upcoming festive season like Chinese new year,
valentine’s day, national day etc. another move to demonstrate its “everyday good value at
McDonald’s” was the launch of price rollbacks for its products. For example, for a period of time, the

38
price of ice cream was rolled back to 50 cents, hamburger to 88 cents and cheese burger to 99 cents.
Most recently, there was this “$2 a burger” promotion, whereby selected burgers, were priced at $2
each instead of the usual $3 plus for a short period of time.
In addition, McDonald’s has attempted to satisfy the large appetite of its customers by having
low prices for its up-sized value meals. By paying a mere additional 50 cents, a customer’s meal is
upgraded with a large coke and fries.
McCafé -The Revolution
To accommodate the current trend for high quality coffee and the popularity of coffee shops in
general, McDonald's introduced McCafés. The McCafé concept is a café-style accompaniment to
McDonald's restaurants in the style of Starbucks. McCafé is a concept of McDonald's Australia,
starting with Melbourne in 1993.
Today, most McDonald's in Australia have McCafés located within the existing McDonald's
restaurant. In Tasmania there are McCafés in every store, with the rest of the states quickly following
suit. After upgrading to the new McCafe look and feel, some Australian stores have noticed up to a
60% increase in sales. As of the end of 2003 there were over 600 McCafés worldwide.
Home Delivery McDonald’s Singapore has introduced a home delivery service for those who
seek convenience. However, due to lack of expertise and equipment, the McDonald’s Delivery
Service (MDS) in Singapore is currently limited to certain areas of the state.
Appendix C
FUNCTIONS OF MARKETING MANAGEMENT
Marketing Objectives: marketing management determines the marketing objectives. The
marketing objectives may be short term or long term and need a clear approach. They have to be in
coherence with the aims and objectives of the organization. Planning: After objectively determining
the marketing Objectives, the important function of the marketing Management is to plan how to
achieve those objectives. This includes sales forecast, marketing programmes formulation, marketing
strategies.
Organization: A plan once formulated needs implementation. Organizing functions of marketing
management involves the collection and coordination of required means to implement a plan and to
achieve pre-determined objectives. The organization involves structure of marketing organization,
duties, responsibilities and powers of various members of the marketing organization.
Coordination: Coordination refers to harmonious adjustment of the activities of the marketing
organization. It involves coordination among various activities such as sales forecasting, product
planning, product development, transportation, warehousing etc.
Direction: Direction in marketing management refers to development of new markets, leadership
of employees, motivation, inspiration, guiding and supervision of the employees.
Control: Control refers to the effectiveness with which a marketing plan is implemented. It involves
the determination of standards, evaluation of actual performance, adoption of corrective measures.
Staffing: Employment of right and able employees is very crucial to success of a market plan. The
market manager coordinates with the Human Resource Manager of an organization to be able to hire
the staff with desired capability.
Analysis and Evaluation: The marketing management involves the analysis and
evaluation of the productivity and performs mace of individual employees.
Appendix D
McDonald's Value Strategy + More

39
McDonald's Corp. says it will more sharply focus on the value end of its price spectrum
following disappointing Q3 results. That means a heavy marketing push behind the new Dollar Menu
+ More and a likely parade of new McDouble burger variations, as reported earlier. Much of that will
come through new media channels: CEO Don Thompson told analysts the chain intends to ramp up
its "digital engagement" with consumers.
For the three months ended Sept. 30, 2013, McDonald's global same-
store sales rose 0.9% with U.S. comp sales up just 0.7 percent. That less-than-
1 percent gain came despite McDonald's firing some heavy marketing guns
during the quarter: the return of Monopoly and the introductions of steak
breakfast sandwiches, the Quarter Pounder BLT and, most of all, Mighty
Wings, in September.
Thompson said Mighty Wings sales were at "the low end of our expectations." September comp sales
were up just 0.4 percent. He conceded that the wings might have been too pricey for the market at $1
apiece, as franchisees have complained. Although the wings may have been too spicy for some,
McDonald's will sell 35 million pounds of wings, Thompson said. He denied there is a significant rift
between operators and headquarters, saying he has "never seen as strong an alignment in years"
between franchisor and franchisees.
The real problem, Thompson insisted, is not with the McDonald's brand but with tight economic
conditions and heightened competitive pressures that are hampering all Informal Eating Out market
players' growth. Consumers simply are spending a little less at QSRs, he conceded. In particular,
McDonald's customer base has "bifurcated," with the mid-to-lower-income part of the base "more
stressed on discretionary spending" and more value conscious, he said. Given that, the chain says it
expects October sales to be flat despite the rollout of the Southwest Premium McWrap.
The Dollar Menu + More is designed to appeal to that large group of "stressed" consumers. Most
products will be priced from $1 to $2, although some items, such as 20-piece McNuggets will be as
high as $5. McDonald's has been testing several new items for this menu including a Southwest
McDouble burger topped with tortilla strips, a Bacon McDouble (below), a McChicken Deluxe and
others. These give McDonald's operators "pricing flexibility" and gives consumers "varying levels of
affordability" and a "value ladder" they can climb as desired.
The new arrangement expands on the 10-year-old Dollar Menu that Thompson says accounts for 13-
15 percent of sales. One third of all customers leverage the Dollar Menu in some way, he added.
McDonald's pricing is up 2.6 percent this year, lower than the food-away-from-home component of the
Consumer Price Index.
In the third quarter, comp sales in Europe were up 0.2 percent thanks to strong performances in the
UK and Russia and solid results in France that partially offset a decline in Germany. Continuing sales
weakness in China, Japan and Australia dragged down Asia/Pacific/Middle East/Africa (APMEA)
sales 1.4 percent.

40
McDonald's Corp. will lower capital expenditures in 2014, primarily by slowing expansion. Almost all of
the cuts will be in developing markets overseas. Still, the chain plans to open 225 units in the U.S.,
300 in Europe and 750 in APMEA.
Appendix E
Examples for McD’s pricing Mix
Price Range of MCD

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