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McDonald’s vision is to offer the world’s best and quickest service restaurant
experience to its costumers all over the world. Being best in the business means
constantly satisfying costumers better than anyone else through outstanding
quality, service, cleanliness, and value. Supporting this vision are five global
strategies being pursued by McDonald’s worldwide.
Developing its personnel at ever level of organization, beginning in its
restaurants. Constant innovative in its menu, facilities, marketing, operations, and
technology. Expanding its global mindset by sharing best practices and
leveraging their best people and technology resources around the world.
Long term re-invention of the category in which it competes and the development
of other business and growth opportunities. Continue the successful
implementation of changes.
McDonald’s U.A.E
IN 1994, Emirates Fast Food Company acquired the McDonald’s franchise in the
U.A.E.Based on the agreement the 100%local company owns and operates all
McDonald’s restaurants across U.A.E.Since establishing the first restaurant in AL
GHURAIR CITY, McDonald’s UAE has been an active player in the local
community, and a solid supporter of its economy; sourcing around 80% of its
supplies from local and regional suppliers in the ARAB world. Through its
geographical expansion across the EMIRATES, McDonald’s UAE is committed to
serve high quality products to it costumers in pleasant family atmosphere!!
1.2 Introduction to research problem
MOTIVE:
The basic motive of preparing this report is to study the consumer preferences
towards McDonald’s in DUBAI and to know about the BUYING BEHAVIOR of
consumers for McDonald’s.
OBJECTIVES:
The objective of the report is to study the consumer preferences towards
McDonald’s in DUBAI and also to analyze the buying behaviors of Burgers by the
people living in DUBAI.
SCOPE:
This report to some extend will tell us about the success of McDonald’s in DUBAI
and also about the various other fast food outlets like KFC, Burger King, and
Pizza Hut etc in DUBAI. This report will also help me to know more about the
market strategies and selling modes followed by McDonald’s in DUBAI and
various kinds of recommendations n suggestions.
WEAKNESSES
THREATS
ECONOMIC
• McDonald's has the tendency to experience hardship in instances where
the economy of the respective states is hit by inflation and changes in the
exchange rate.
• Market leader.
• Very high target market.
• Low cost and more incomes.
• The rate at which the economy of that particular state grows determines
the purchasing power of the consumers in that country.
SOCIAL
• Working within many social groups.
• Increase employment,
TECHNOLOGICAL
ENVIROMENTAL
• Quality packing.
• Local manufacture using foreign supplies.
Chapter 2 - Literature Review
The Literature Review is a thorough summary of the recognized facts and
information in academic literature about a given subject. Most cited sources in a
dissertation or thesis are listed in the Literature Review. The student must locate
previous research studies (usually found in professional journal articles) that
have contributed to the field in a manner similar to what his or her own thesis or
dissertation proposes.
1) The below article was extracted from dissertations by the students of Skyline
College on Marketing Strategies Adopted by McDonald’s and Consumer
Perception Towards Fast-Food
Purpose: This project involves the service level provided by McDonald’s and its
competitors
Research Objective
To find out the ways by which McDonald’s can improve upon its service quality
and bring more satisfaction to customers and thus add value to its bottom line.
Limitations of Study
Certain limitations were inherent with this project work.100% response rate
was not found from the respondents. Some extent of biasness was found
because of Brand loyalty while answering the questions .Potential biases
such as reluctance of consumers, executives etc. Lack of interest of the
respondent was one of the major problems .The Geographic extent of this
study was limited to the Dubai market only.
Summary
Over the past few years the Indian economy has undergone drastic changes-
changes that have had the market flooded with multinationals and a variety of
products. There has been a sudden upsurge in the Indian industry and
exponential growth in specific industries. Today’s companies work in a war zone
of rapidly changing competitors, technological advances, new laws, managed
trade policies and diminishing customer loyalty.
2) Another related study was done by Peter, Olson in 2005 about Environmental
Impacts on Consumers of McDonald’s. In this dissertation the researcher aims to
critically analyze the social and ethical responsibilities of Mc Donald’s, a
multinational fast food chain. Mc Donald’s is one of the world’s largest chains of
fast food restaurants. Franchises of Mc Donald’s are spread across the world. It
is a success story which has redefined the art of reaching out to people across
the borders. However, in the recent past several questions have been raised
regarding the ethical and moral obligations of the organization. Thus, the
principal objective of the report is to present an argument regarding the social
responsibilities of the organization. The arguments are presented from the point
of view of one of the marketing managers of Mc Donald’s. The argument is
regarding whether Mc Donald’s should only focus only on maximizing its profits
or whether it should also realize and give due importance to its social and ethical
responsibilities. The arguments presented in the report emphasizes the fact that
instead of restricting itself to an organization whose only aim is to garner
maximum profits, Mc Donald’s should concentrate on its moral and ethical
obligations also. In the last few years, Mc Donald’s brand values have declined
considerably, owing to a number of controversies and debates regarding the way
it operates. While presenting the argument, some of the most prominent
controversies associated with the organization, in the recent past, have been
mentioned. These controversies reflect that Mc Donald’s, over the years, has, to
a large extent, neglected its moral and ethical obligations. Ethical and moral
questions regarding the activities of the organization has become a common
affair in the recent past. The steps that have been taken by the organization, to
revive and restore its brand image have not proved to be sufficient. Clearly, the
scenario reflects that the organization has failed to fully realize its basic moral
and ethical duties. Thus, the time has come, when the organization rectifies and
reassesses its strategies
CHAPTER 3 – Research Methodology
3.1 Introduction
The research methodology used in the present research focuses on collecting
information on current position of MacDonald’s and its possibilities of growth in
near future. Data was collected with a survey instrument which focused on the
MacDonald’s context. Responses on the customer satisfaction, expectation, and
perception of services provided by MacDonald’s are measured. Both primary
source and secondary source are used to collect the information.
Broadly two types of research methodologies are used by the researcher in the
research. They are:
Inductive Method
According to Zikmund (2000) “Inductive methodology is a method for generating
new theory from various types of research.”
Deductive Method
According to Zikmund (2000) “Deductive methodology is one that intends to test
existing theory in an empirical setting”.
Research Design
According to Zikmund (2000) “Research design is a master plan that specifies
the methods and procedures for collecting and analyzing the needed information,
it is framework for the research plan of action.” There are three types of research
design which are as follows:
Exploratory Design
According to Zikmund (2000) “Exploratory study is conducted to clarify the nature
of ambiguous problems.”
Descriptive Design
According to Zikmund (2000) “Descriptive research seeks to determine the
answers to who, what, when, where and how questions.”
Causal Design
A causal research is undertaken when the researcher are interested in knowing
the cause and effect between two or more variables. Such studies are based on
reasoning along well tested. (GC Beri 2000)
Descriptive Research
Descriptive research, also known as statistical research, describes data and
characteristics about the population or phenomenon being studied. Descriptive
research answers the questions who, what, where, when and how. Although the
data description is factual, accurate and systematic, the research cannot
describe what caused a situation. Thus, descriptive research cannot be used to
create a causal relationship, where one variable affects another. In other words,
descriptive research can be said to have a low requirement for internal validity.
The description is used for frequencies, averages and other statistical
calculations. Often the best approach, prior to writing description research, is
To conduct a survey investigation.
Primary data:-
Primary data is the data taken primarily. It refers to the collection of
first hand information. This is done by conducting surveys using questionnaires,
personal interviews and observation. In my study I will be interviewing the
respondents with the help of a structured questionnaire. The questionnaire is the
backbone of obtaining first hand data during interviews.
The questionnaire method has certain advantages. One of the main advantages
is its versatility. Another advantage is that of the speed and cost. It is faster and
cheaper than observing. There are certain disadvantages also. One of the main
problems is the unwillingness of respondent to provide information. Questions
about income or personal questions are more likely to be refused. As the
questionnaire is the fast and cheapest method to obtain data so I have chosen
this method. It is the best suitable method for my research.
Secondary data:-
Already existing data is called secondary data. I collected them by following
method
• Internet
• Books
• Articles, Journals, books on customer satisfaction and marketing
perspectives
Survey
Measurement Scales
Scaling is the procedure for the assignment of numbers to a property of objects
in order to impart some of the characteristics to the properties in question.
For the purposes of my research, I shall use only the rating scale. Rating scales
that I may use will include:
• Multiple choice scales: multiple options are given. Multiple choice single
response scale allows participant to select only one answer & multiple
choice double response allows participant to choose more than one
answer.
• Numerical scales: equal intervals that separate their numerical scale
points. E.g. a scale of 1-5 for cleanliness of a restaurant
• Multiple rating list scale: accepts a circled response from the rater and
allows a mental map of the respondents’ evaluation to be evident
After the survey, the questionnaires were complied statistically and analytical
tables were prepared. To consolidate the results of the survey, various statistical
tools such as percentage and mean scores were calculated and these were
represented in the various tables. Based on the tables, different graphs were
prepared for an easier pictorial analysis and interpretation. The findings from the
overall were compiled together under the conclusion and suggestions on the
basis of the same were put forward.
CHAPTER 4 - Data Analysis
No of respondents 52 48
53
52
51
50 Male
49 Female
48
47
46
Male Female
Findings: From the above table it is clearly evident that out of the 100
respondents who were asked about their gender, all responded.
2) Age group of the respondents
No of respondents
Age group
12-16 30
18-24 40
25-30 22
30+ 8
45
40
35
30 16-Dec
25 18-24
20 25-30
15 30+
10
5
0
No of repondents
Findings: From the above table it is clearly evident that out of the 100
respondents who had attempted the survey questionnaire,33% belonged to
the age group of 12-16, 42% belonged to the age group of 18-24 and the 25%
respondents were aged between 25-30 and 8% belonges to the age group of
30+.
Findings: the above bar graph, find’s that 15% respondents were in higher
secondary, 45% were intermediates, 10% were Higher Secondary, 20% are
graduates and 10% were Post Graduate
4) Yearly income of the respondents
Income Respondents
1000-4000 40
5000-8000 40
10000-12000 14
12000+ 6
40
35
30
25 1000-4000
20 5000-8000
15 10000-12000
12000 +
10
5
0
Repondents
Findings: The above tables describe the average annual income of the
respondents who were questioned during the survey. This piece of information
was useful since it provided valuable information regarding spending patterns of
customers. This information allowed us to know the purchasing power of the
customer, as it shows a more realistic picture of the scenario. In the diagram
above, shows that 40% of the respondents earned between 1000-4000Dhs every
month, 40% of the respondents earn 5000-8000Dhs, 14% of the respondent’s
ear 10,000-12,000Dhs and 6% of the respondents earn 12,000Dhs n above.
Mc donalds
Burger King
Hardees
Others
Findings: From the above table it is clearly evident that out of the 100
respondents who had attempted the survey questionnaire,63% of the people
prefer Mc Donalds,22% of the respondents prefer Burger King as their
favourite burger chain,14% of the people prefer Hardees and the remaining
1% prefer other local fast food burger chains.
This clearly indicates that Mc Donald’s enjoy greater competitive advantage
over its competitors in terms of number of customers
6) Fast food burger chains the respondent have utilized in the past.
Findings: From the above table it is clearly evident that out of the 100
respondents who had attempted the survey questionnaire,McDonalds have
been tried out 75 times,Burger King was tried out 70 times,Hardees was
tried out 55 times and the Other fast food burger chains were tried 25 times.
50
40
Everyday
30
Once a week
20 More than once a week
Once a month
10
0
Repondents
Findings: From the above table it is clearly evident that out of the 100
respondents who had attempted the survey questionnaire,15% the
respondents consume burgers everyday,45% consume once a week,20% of
the respondents consumer more than once a week,and 20% consume them
once a month,This clearly indicates that people do consume burgers at
frequent intervals of time.
Findings: According to the survey ,it can know that many of the customers are
satisfied with McDonalds .Since 70% of the respondents said that they very
satisfied , 20% respondents were only satisfied ,5% were unsatisfied with their
choice ,5% were very unsatisfied.
Excellent
Good
Average
Poor
Findings: The above Pie chart shows the response of people towards the
service of McDonalds. Majority of respondents were on the lines of excellent and
good. 14% respondents replied neither good nor bad, though there were about
1% respondents who thought of it as poor.
Findings: From the above chart it is clearly ,35respondents were Not At All
aware of the Value Meals Programm undertaken by Mc Donalds,20 were
Somewhat aware,15 were Not Much aware,20 were Almost aware and 5
were Completely aware of the Value Meals Program by McDonalds.
11) Satisfaction level in terms of pricing with regard to your choice of fast food
burger chain
35
30
25
Very Unsatisfied
20 Unsatisfied
Neutral
15
Satisfied
10 Very Satisfied
0
Mc Donalds Burger King Hardees
Findings: The above column chart clearly depicts the customer satisfaction
levels to their respective preferred fast food burger chain in terms of the pricing of
the products.
Can't say
Over-priced
0 20 40 60 80
Findings: The above horizontal graph shows that 70% of the repondents found
the it is over priced where as 15% replied as worth of money, 5% said they can
pay and are ok with the price and 10% replied they cant say . The veiws given by
all these respondents were pretty much scattered and varied from one and other.
13) Choosing a fast food burger chain depending on the higher brand
name/image
Do you choose your fast food burger chain
dependingon the higher brand name/image it
enjoys?
Yes No
Findings: Out of the 100 respondents, 49% of the respondents said YES that
they depend upon the higher brand name and image of the fast food, whereas
50% said NO
14) Respondents say over if lover prices is offered would you shift to another fast
food burger chain.
Customer Preference Shift In Terms Of Price
Yes
No
Findings: According to the survey, 42% of the respondents said they liked the
speed of the service, along with further 23% of the respondents said the liked the
quality of the product, 7% of them said price it is cheaper than other fast food
chains and 18% of the respondents said because of the convenience .However,
there were a few respondents about 10% of them they like other things about
McDonalds.
Havinga meal
Gatheringwith
friends
Celebratingan
occasion
Findings: According to the survey, 35% of the respondents said they come to
McDonalds for having a meal nothing else drive them here, 45% of the
respondents said it’s a get together point, 20% of them said they only come here
celebrating occasions.
50
20
10
0
Very Good Good Fair Poor
Findings: From the above chart it is clearly ,50% respondents were said that the
variety is very good ,30% said it was only good ,10% were like its “ok”, 10% of
them said its poor.
18) Respondents benefits by the intense competition among the fast food burger
chains which subsequently leads to lower prices.
Do you agreethat you are benefited bythe intense
competition amongst the fast food burger chains
which subsequentlyleads to lower prices?
Yes
No
5.2 RECOMMENDATIONS
McDonald should maintain consistency in the taste and quality of products. They
must include more items in its product line (Variety).McDonalds must not forget
vegetarians. Include more promotional and advertising measures to increase its
sales or to increase its market share. Come up with new offers every time
growing health trends among consumers. They should focus more on their
promotional strategies like advertising etc.
Bibliography:
• www.wikipedia.org
• http://www.woopidoo.com/biography/ray-kroc/index.htm
• http://www.mcdonaldsarabia.com/index.php/en_ae/home-page.html
• http://library.thinkquest.org/06aug/00934/Bibliography.htm