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McDonalds Fast Food Delivery

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by

Alex Boardman

on 5 September 2013

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Transcript of McDonalds Fast Food Delivery

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.
Feasibility
* 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
countries- Mcdelivery
Critical Details
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
The App
All major smartphone operating systems (iOS, Android and Windows Mobile
Will process payments - cashless
Enable tracking of delivery via GPS
Delivery
Managed by local stores/franchises
Paid for by McDonalds group
Charged by distance
Delivery vehicles will be environmentally friendly
Situational Analysis
SWOT
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

PESTEL
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.
Strengths
Weaknesses
Opportunities
Threats
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

Environmental sanctions

Political legislation

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
Political
Environmental
Social
Technological
Economic
Legal
Target Market
Past McDonald's customers
Generation Y - technologically savvy
Advertising Strategy
In store advertising
Social media campaign
TV Commercials
Full transcript