A Report on Mcdonald's Malaysia

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To : McDonald’s Management.
From: Nurul Amirah Binti Umar Shaifuddin.
Title : A Report on McDonald’s in Malaysia.
Date : 14th December 2012.

1.0 Introduction

McDonald’s is the leading global foodservice retailer with more than 34,000 local restaurants serving nearly 69 million people in 119 countries each day. It all started with two brothers, Richard and Maurice McDonald pioneers in the fast food industry and were the first to use assembly-line format in a restaurant kitchen efficiently. In 1940, the brothers decided to open a small drive-in restaurant, because the only business that they had seen succeeding in the current economy was a little hot-dog stand. (Luxebery and Halberstam, n.d.)

Ray Kroc was the exclusive distributor of a milk shake maker called the Multimixer. Meanwhile, two brothers, Richard and Maurice McDonald owned and ran a hamburger restaurant in San Bernadino, California, in the 1950s. Ray Kroc heard how well the McDonald brothers were doing using his Multimixers to serve their customers. He met up with them and acquired the franchising right from them to run McDonald's restaurants. (McDonald’s Official Page, 2012)

2.0 Current Marketing Practice

The current marketing practice of McDonald’s Malaysia is called the “Three-Legged Stool”. It refers to three essential people: employees, suppliers and franchisees (sometimes referred as owner/operators) forming a close-kit foundation that supports the business (McDonald’s Corporate Responsibility Report, 2009).

The functions of the tree-legged stool as McDonald’s Malaysia core strength as a company. Each leg has its own function and important in make up its brand.

3.0 Current Marketing Mix

Marketing mix is the combination of the marketing tools that the organisation uses to achieve its marketing objctives in the target market (Kotler, Ang, Leong and Tan, 1999). Traditionally the marketing mix consisted of 4P’s; Product, price, place and promotion. According to Goldsmith (1999), in order to keep pace with changes in the market place and in marketing practice, the theories of marketing management and strategy need to evolve and change. The concept of the marketing mix is the central to a marketing management (see figure 1). Fifield and Gilligan (1996) affirmed the following variables as an integral part of the marketing mix – people, process and physical evidence. The marketing mix is a conceptual framework which highlights the principal decisions that marketing managers make in configuring their offerings to suit customers needs. The tools can be used to develop both short term tactical programmes and long term strategies (Palmer, 2004).

Figure 1: Marketing Mix

[pic]
Source: Palmer, A. (2004), Introduction to Marketing: Theory and Practice, Oxford University Press.

These 7P’s will be use in analysing the marketing mix of McDonald’s Malaysia:

1) Products and Services
2) Price
3) Place
4) Promotion
5) People
6) Processes
7) Physical Evidence
3.1 Products and Services

According to Kotler, Armstrong and Saunders (2008), products are some goods or services that a firm offers in the market. Attention, acquisiton, or consumption and satisfies wants or needs are something that product can be offered to the customers (Kotler, Armstrong, Saunders, & Wong, 1999). Malaysia is formally an Islamic nation as majority of its population comes from Muslim. McDonalds will have to bind with the Malaysia Law which is Syariat Law, it stated that all food served must be Halal. (M.Azu, 2010).

McDonald’s Malaysia offering various type of products include Spicy Chicken McDeluxe, Big Mac, Double Cheeseburger, Filet-O-Fish and many more.

Currently, McDonald’s come back with the famous ‘Prosperity Meal’ to offer to its customers. Prosperity Meal is the set of juicy beef prosperity burger dipped in aromatic black pepper sauce,...
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