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McDonalds Fast Food Delivery
Transcript of McDonalds Fast Food Delivery
and smartphone App
Concept and Critical Details
Offer McDonalds delivery via a smartphone app
Evaluation of Opportunity
* There is a gap in the market- not many burger fast food outlets deliver.
* Not many competitors, McDonald's already a leader in the market.
* Huge opportunity to increase revenue.
* Low running costs.
* This service would increase revenue.
* App already exists minor adjustments need to be made.
* Facebook pages suggest the service will be successful- over 1000 likes on pages requesting delivery.
* Already implemented in Asian
Stores will be provided technology to enable orders via smartphone
Each store will manage their own delivery zones
Store will earn cost of product, McDonalds group will earn delivery cost and therefore pay for labour and infrastructure
Cost of delivery will be charged per 500m from store
All major smartphone operating systems (iOS, Android and Windows Mobile
Will process payments - cashless
Enable tracking of delivery via GPS
Managed by local stores/franchises
Paid for by McDonalds group
Charged by distance
Delivery vehicles will be environmentally friendly
Known growth industry
Established Customer Base
Strong social media presence
High brand recall and already existing in the market
Lower degree of competition in fast food delivery market
Third parties already offer this service and is popular despite small operations and lack of marketing.
Already exists as McDelivery in Singapore and Hong Kong
Integrates well with product selling points of being quick and convenient
Overtly negative attitudes towards the brand as socially it is perceived as the quintessential unhealthy food product
Low profit margins are expected for the McDonalds organisation, this is due to the costs of delivery and the price sensitivity of the consumer base.
Increasing product reach and overall brand presence
Partnering up with delivery services (i.e. Menu Log) to provide economies of scale and technological advantages
Creating healthier options
Social shift away from fast foods towards healthier products may decrease market size in the long term
Consumers may prefer traditional delivery services which are healthier
Unhealthy nature of food - politicians heavily involved in marketing and advertising techniques to children.
Issue of obesity has stayed outside the public spotlight for the upcoming election, but the unpredictability of candidates suggests caution is needed.
We will recommend that McDonald’s offerings are increased to new ranges that are healthier options for health conscious consumers
McDonalds strong public commitment to CSR
Complications will arise due to the greenhouse emissions produced by the vehicles
Use hybrid vehicles in major regional areas and suburbs and battery operated motorcycles in major city areas
Culturally diverse consumer base: that each demographic will have different expectations of the delivery service
Social shift towards healthier foods and lifestyles in general discourages consumption and McDonalds restaurants
Focused on an online delivering system through a smartphone app, but other complications arise with transportation needs
The adoption rate of smartphones in Australia is currently at 57% which is a high proportion of the population.
Technology is an important factor that must be managed dynamically.
Growth in GDP is steady at 2.6% for the last 12 months, its 22nd consecutive year of economic growth
Household spending increased 0.4% for the last quarter
Petrol, capital and labour costs are the three biggest costs that would inhibit the success of a delivery business
All laws and regulations would need to be abided in the following areas: Food service, Motor licensing, Advertising and marketing to youths
Past McDonald's customers
Generation Y - technologically savvy
In store advertising
Social media campaign