This research survey was conducted on behalf of our client- McDonalds Malaysia on the students' understanding towards McDonald's Malaysia. We interviewed a representative sample of 100 full-time students around the region of Selangor, also including those who took up the online review, in order to look at their view point towards fast food and also McDonalds. This research paper will in a position to aid McDonald in increasing their services to the customer and also to find out the thoughts of the students towards their current services and look for bettering field for the business to grow and sustain the existing customers in Malaysia.
The key studies and topics from the research review are as following:
From the info that we collected we found out that compare to the opponents in Malaysia, McDonalds is more well known as (35%) of the consumers often goes to McDonalds more than the others junk food restaurant. Here we can see that the setting of McDonalds on the market are successful and the advertising works.
The lead of McDonalds appointments are caused by the new craze of the students, which they prefer to assemble in McDonalds because of the Wi-Fi internet services, where we can see that (30%) go to the restaurant for eating and meals, where the slumber (23%) go for access to the internet, (20%) for group discussion and (27%) visit McDonalds for friends gathering or chit chat session.
However with the new development is developing, McDonalds are being treated as a place which is more than a restaurant, a place to have discussion instead of discussion room? A place where you can enjoy the free internet services and do assignments or research.
As we realize that McDonalds are the first fast food restaurant who set up the nutrition's value stand of their menu, however trough this research review we discovered that (23%) of the review takers knows nothing about the nutrition's value of the meals they ate and (35%) don't even be concerned about it. Students are being insufficient health awareness currently even as also know that (31%) of the consumers often eat junk food due to delicious style.
From our research survey we also discovered that the existing delivery and drive thru services are very convenient in the idea of view of the consumers, as many of them they just wished to grab an easy meal and they're rushing time. The delivery service also helps those students where they do not have their own vehicles; this will help them as only a telephone call for meals.
The research shown that most the students (30%) and (20%) of the students felt that the costs of McDonalds foods are pricey, this condition is understandable as the majority of the students aren't having any income at all.
Client Brief
The report of McDonald's first commenced in 1955 when Ray Kroc exposed the first restaurant in Des Plaines, Illinois. It then grew to be considered a worldwide firm spanning 117 countries and serving more than 60million customers every day.
In Dec 1980, Golden Arches Restaurants Sdn. Bhd. (GARSB) won the license to operate McDonald's in Malaysia. The first McDonald's restaurant subsequently opened its gates at Jalan Bukit Bintang on 29 Apr 1982.
The global business is monitored by McDonald's Organization as distinctive geographic segments: United States; Europe; Asia Pacific, Midsection East and Africa (APMEA); Latin America; and Canada. McDonald's Malaysia operated under the umbrella arm of the APMEA group.
As of December 2009, McDonald's Malaysia has 194 restaurants located countrywide, providing 10million customers per month and expanding for a price of 15-20 restaurants yearly. McDonald's Malaysia is totally owned by McDonald's Firm and the restaurants throughout Malaysia are either managed by GARSB or franchisees.
McDonald's Malaysia and franchisees use more than 8, 000 local people with 150 support staff at the head office taking care of the day- to day operations of the business enterprise.
(1) Research Background
Malaysians were first unveiled to junk food during 1963 when A&W firstly started their restaurant. Consumers' popularity of fast foods has been increasing. For the past a decade, there are more and more fast food outlet stores are coming into Malaysia.
There are quick expanding development of diverse diet plan and preferences among consumers for convenience foods, such as fast foods. Nowadays, many Malaysian are becoming increasingly more westernized and seeking better convenience when eating out. In fact, the main customer group of fast food restaurants is students.
Nowadays, many Malaysian have become increasingly more westernized and pursuing increased convenience when eating dinner out. Therefore, fast food restaurants have grown to be especially popular among adolescents. Actually, the main customer band of junk food restaurants is students. Most important school scholar will obtain fast food such as Mc Donald, KFC or Pizza Hut when they spend their family day with parents. While for teenager, they love fast food because it's a good place for them to hang out with friends and chit chat with. Several dietary factors inherent in fast food may cause a number of negative health effects, including overweight, hypercholesterolemia, coronary disease and some cancers due to substantial portion of fast food, high energy denseness, palatability (appealing to primordial taste choices for fats, sugars and salt), high content of saturated and trans unwanted fat, and low content of fibre. To be able to induce students to truly have a correct understanding of the problems associated with junk food and to form a good dietary habit, it's important to realize the way they perceive the effect of junk food on their health insurance and nutrition. The purpose of this study is to examine Malaysian student's perceptions and towards McDonalds junk food. A better knowledge of the behavioural and psychosocial factors associated with eating junk food could provide useful descriptive information for potential intervention development
PROBLEM STATEMENT
A problem affirmation is an obvious description about the issues that require to be solved and a team of problem solving should be made before they make an effort to solve the issue. When combining a team which is necessary for a particular goal this is fixing the problem. In this particular student's conception towards McDonalds junk food restaurant, students thinks that fast food are convenience and efficient. This is actually the factors that lead to the radical upsurge in the statistical research on McDonald's fast food belief and image in Malaysia. This is because they had already set in mind fast food is convenient and less time consuming to purchase compare to a proper restaurants. In order to further our understanding of the thinking about students, also the proceeding of the new development of consumers this research survey were conducted as expecting to be able to aid the expansion of McDonalds fast food restaurant in Malaysia as well as the improvement of the business enterprise operation.
Another problem often being raised towards McDonalds would be the nourishment part which we realize that nutrition performs an very important role in the health of a person. The occurrence of varied sicknesses anticipated to poor diet is growing. These diseases are such as diabetes, over weight, cardiovascular diseases and certain types of cancers. Excessive consumptions of fast foods are mainly the reason for these diseases. Based on the ACNielsen survey (2005), 98% of Malaysian's eat at junk food and take-out restaurants and 59% of Malaysian's have junk food at least one time a week. Steve Mitchell the handling director of ACNielsen Malaysia once said that "Junk food consumptions seems to have turn into a common part of our diets among Malaysian, "
Research Question
Research question 1: What exactly are the student's perceptions and image on McDonald's Malaysia?
Research question 2: What exactly are the factors that influencing the increase in fast food intake among students in Malaysia?
Research Question 3 : What are the additional measures that can be taken up to change the image and belief of McDonald's in Malaysia?
Research Objective
There are a few goals to this marketing research. The main objective of the market research is to perform a conclusive research checking out Malaysian student's behaviour and conception of McDonald's as an easy food restaurant. To examine and identify the factors that influences the increase in fast food utilization among Malaysian students. McDonald's is currently the leading junk food restaurant in Malaysia; McDonald's single-handedly, have more than 185 shops in Malaysia which research was carried out to discover why consumer's choose McDonald's above the other fast food restaurants such as KFC, Pizza Hut and etc. Next, this research will identify and analyze the dynamics that effect the upsurge in fast food usage among students in Malaysia. The complexities in which influence the increase can maintain terms of rates, vitamins and minerals of junk food, convenience and lifestyle and etc. Understandably, most students aren't working people, which means, they do not have set income. Hence, are economical factors the primary cause of the increase in fast food intake among students? At the end of the research, we will be able to obtain the answers to the targets and then suggest effective ways to broaden the business and change the public's perception of McDonald's.
Research Framework
Independent Moderating Dependent
Variables Changing Variable
Price and advertising of Fast Food
Student conception of Mc Donald's in Malaysia
Student's frame of mind towards Fast Food
Demographic
Nutrition of Fast Food
Convenience of Fast Food
This survey suggests that student's perception on Mc Donald's in Malaysia are afflicted by several factors which are price and promotion of purchasing junk food, trend or lifestyle of pupil, nutrition which has and the capability of the fast food. Make reference to the construction, these 4 parameters are important because either one of the variable may cause the notion of student to consume on junk food. Besides, all the variables had been afflicted by moderating adjustable, demography. The demography is include era, gender, income, race and others demography that related to pupil consumption on junk food. Therefore, we take it as our self-employed variables for this research.
Price
The price is a component of the exchange or deal that takes place between two celebrations and identifies what must get up by one get together (example: buyer) in order to obtain something provided by another get together (example: vendor). Price factors are thought to influencing most of the student's conception is due to allowance of their parents are incredibly minimal and students perception in purchasing fast food are thought to be expensive and not full filling. Sometimes, student will give up on eating fast food because of the price itself that will bring a poor view of junk food industries. Therefore, the purchase price is the perception of the college student in fast food usage. Besides that, promotion is another impact factor for everybody including students now days too. We think that a cheap campaign would appeal to more customers especially the low income group which is including the primary to college or university students. Among the successful offers that is launched by Mc Donald's fast food restaurant is the Mc' value meal set which is cheaper price compared to normal price and there are unrestricted refills of carbonated drinks.
Attitude
Besides, frame of mind is also an unbiased adjustable for the university student perception on junk food. Behaviour is kind of manner, disposition, being posture of the body to expressive of an action, emotion respect to a person. This can be show that student attitudes towards Junk food are treating Junk food restaurant as a place for gatherings. Students nowadays prefer to hang around with friends at fast food restaurant compare catalogue; they feel that this is an integral part of their life roughly called "cool". Besides, college student for high institution will spend additional time at fast food restaurant to do their project, surf net, talk with their good friend etc, where each one of these activities can be doing at home, library or any parts of the campus. You can find few factors that can impact the frame of mind of students. Such as the benefits of the Mc value lunchtime campaign, which is every person can enjoy the privilege of unrestricted refills for soda pops.
Nutrition
Nutrition is nutrition in food, how the body uses nutrients, and the partnership between diet, health and disease. This is important to really know what is the diet of the fast food contains and discovered there is a poor nutrient value from the fast food. It is not only contains a very high calorie in a few certain amount of junk food, it includes high monosodium glutamate (MSG), as a food additive and is often marketed as a flavour enhancer that is bad for health if it is highly consumed and fast food is of the contributes to obesity among young adults nowadays. Do students now a day make reference to any nutrition brands before they purchase junk food and can the student aware of health if they have their fast food frequently? So, diet is vital for student belief on junk food that might effect student consumption to possess junk food. But even though junk food is not that healthy, university student in Malaysia seems to disregard the health awareness and keep on consuming fast food.
Convenience
Following is capability of junk food. Convenience is anything that is intended to save lots of resources (time, energy) or irritation. Convenience is one of the factors that a lot of students do go for fast food as they think fast food is very convenient and less time consuming. In the students mind set of fast food is a location for everyone to go to there at anytime everywhere. Compare to a normal restaurant which need to hold back for long queue just for longing waitress to serve and order. However, junk food just desire a few minutes
where students can enjoy their dishes without wasting hard work. That is why junk food brings convenience to pupil.
Pestle Examination of McDonald's
Political Factor
The businesses of McDonalds are overstated with the federal government policies on rules of junk food restaurant operation. At the moment, government is controlling the marketing of junk food restaurant. For the reason that of health concern and many issues more such as obesity and cardiovascular issue among the young children in Malaysia. Governments are also purely controlling the licenses that given for the starting of fast food restaurant and other business regulations must follow for such franchise business. Excellent marriage with the governments in offering common benefits such as career and tax is a must for the company to reach your goals in virtually any of the overseas market. McDonalds should also protect its workers by guaranteeing all the hiring and recompense, training is matching to Malaysian Labour Regulation as set.
Since it is clear that the business is expanding consistently, I recommend that it's smart to offer immediately with the related specialists in this market segments that they plan to work in. That is a great way for establishing a good relationship with the federal government itself. It is advisable that the organization will rests on the nice graces of the federal government in their penetration of market. To get this done, all they have to do is surface finish all the established acts and persuade all the prerequisites for doing business. The company are advised to know about the local business law in order to really know what are their jobs and their potential liabilities.
Economical Factor
McDonalds consider as a business entity, they need to face a relatively good numbers of monetary parameters on its macro environment. McDonald's fast food should be aware on changes of the global resource and the currencies exchange when they offer with international sourcing for his or her materials. McDonalds transfer almost all of its raw materials because of the insufficient supply of materials in the domestic market to achieve the demand of consumers of its product. Their cost of purchase will afflicted when any of the currencies especially buck are changing.
Besides that, McDonalds need to handle different type of regulations on the tax of income such as entertainment and restaurant service tax. Maybe others countries have their own rules and legislation and McDonalds kept no choice but to just follow the regulation of the countries if indeed they want to keep the operation in that particular country. For franchising, they should also pay lots of percentages of the income to the number company in US.
Next, the financial condition and the economical growth of the united states also play an important role to the requirements of the McDonalds products offered. People from the lower income groups will not consume the products even if the prices of fast-food are just a bit more expensive than the standard food. In case the economy of that country is certainly going from bad to most severe and the income per capita of men and women is infected, the demand and use of McDonalds junk food product will definitely drop.
For this scenario, It is suggested that before McDonalds penetrating the marketplace, the business must perform a specialist and accurate general market trends, especially in the activities in the economical environment. The regularity of the shifts in the inflation rate as well as the fluctuations in the exchange rate gives an extremely huge effect on the operations of the company.
Socio-Cultural Factor
The changing life-style of Malaysia anticipated to development of Malaysian current economic climate should be considering. While increasing numbers of people are able in term of fiscally to consume at more costly electric outlet such as fast food restaurant, they'll of course have a higher expectation on the foodstuffs. Normally, they want to have some quality in services and even more conveniences that can show the initial of one restaurant from another.
Young urban consumers like young adults want technology in their life and facilities such as credit card payment, cordless internet, and comforting environment, and other appeal for his or her hangouts and consuming. Each one of these needs also needs to be taken into consideration because the youngster market is also a main factor that enhances McDonald's sales per annum. There is not much difference between ethnical and the purchase of products in one country but for different countries social sensitivity should be recognized down. For instance in India, individuals who have confidence in Hinduism religious do not take meat, Muslim countries do not take pork, German like beers, Finnish like fish type of food menu, Chinese language like to connect food with something good for example, the wealth, Asian like rice and Americans eat in big-sized menu. So far, McDonalds shows good efforts in localization of its menu to suit local tastes but it should continuously survey the marketplace itself and find out about local culture to better understand and design the best product for the kids.
On the social-cultural of each country, I highly suggest McDonalds to obtain the relevant information from the target market in deposition to the individual customers of the organization. It is very important that before a franchise is approved to a particular market, a proper drafted and inclusive general market trends should be conducted at first in order to establish the serves that would comply with good customs, and public policies. The business should find out itself the shifts in areas like the consumer behavior and purchasing habits of the market. This is actually the key condition for executing the right customer romantic relationship management system.
Technological Factor
For a fast food restaurant, technology will not give a high impact on the company and it is not really a major macro environment variables. However McDonalds should be looking to the innovation of their competitors and improve itself in term of integrating technology in working its operation. For example, in record system, the supply string management system which is to manage its source, easy repayment and the ordering systems for its customers and wireless internet technology in their restaurant. Achievement of technology can make the management more effective and cost keeping in view of permanent. This will likely also make customer enjoy if cost savings results in price decrease or promotional plan discount which will benefits them every once in awhile.
Legal Factor
As a certified junk food operator, there are extensive regulations and strategies that McDonalds need to obey. For example, the "Halal" certification that becomes a problem to Muslim consumers in Muslim countries. McDonalds should protect its reliability and consumer self-confidence by guaranteeing all materials and process are to be claimed safe to consume.
Other legal need that the business enterprise owner should follow as set in laws are such as operating time, the business sign up, the tax requirement, labor and work laws where the shop has been accredited. If there is any offenders will be fined and blacklisted from functioning business in this country that can be very dangerous.
What McDonalds should do is to employ local counsels to cope with the legal conflicts in individual market segments on which the company will come across. This is to ensure the company's legal representatives that will handle their legal affairs will be more specialize with the legal routine that could produce out certain creases on their operations.
Environment Factor
McDonalds is one of the world largest beef, rooster and potatoes consumer, the firm always have been critical target for complete world environmentalist. That is because of the high use of beef through the firm operation which causes the green house effect because of the methane gasses which is from the cow's farm. Large level of plantation has effect the environment and lots of green forest are now opening for various plantation activities. The vegetarian environmentalist criticizes the fast-food firm for being cruelty to animals and slaughtering them. In Japan, they once wished to bring in the whale burger, but creating chaos among everyone as the whales are one of the endangered species. Before the using of paper packaging, McDonalds also had been criticized to be numb to pollution because the company uses the polystyrene based mostly packaging for the food they selling. You will find millions of folks buys from the fast food large and the impact is very hard to world environment as those packaging material are extremely hard to be recycled. We are now getting more and more concern on environment concern and business operator should not only look after the firm's profit, but be cautious to use the planet resources for ecological growth and look after surroundings safe practices and health.
To solve the environment problem, It is suggested McDonalds to discover the environmental routine that governs the procedures in every market. And then monitor the waste material disposal of the business. Try to lessen the use of Styrofoam materials and vinyl cups. Constantly upgrading of the communal corporate responsibility is essential. This will also entail that the headquarters should manage a way of internal control of those that could break after this company's aim. Sanctions such as revoking of the franchise certificate or a high fine should be installed to provide the offences as a restriction to violation.
SWOT Examination OF McDONALDS
McDonalds SWOT Strength
High Standing in the Fortune Magazine's most respected food service companies
Both the gold arches and McDonald are among the finest brands that understand on the globe.
The Company have a strong global presence and it is the market head in the international and local markets
The Company often being recognized as a socially liable company and also very community oriented.
The restaurants always have situated in the major airports, along the highways, holiday area, the key places and also theme parks.
The preparing food style are used accordingly to the procedure system, therefore it is very reliable.
It is the first junk food restaurant who provides the consumers the nutrition's simple fact.
The firm uses economies of size in lowering the firm's costs, as the business enterprise hugh extension will diversifies the overall risk of the financial performance.
The company uses branded prepared items in their procedure and also the qop quality of meat and hens products.
They have one of the world's most recognizable and memorable logos.
They operate globally and a huge percentage of the restaurants are franchised.
There are ethnic diversity in the meals they served predicated on the inserting of the restaurant.
McDonalds SWOT Weaknesses
The failure in pizza test market as limited their capability to contend in the pizza junk food providers market.
The companies' training costs are increased because of the firm's high worker turnover.
The firm has an extremely minimal attentiveness or thinking on providing organic and natural foods to the consumers.
The organization products are insufficient innovative and imagination.
The firm's advertising campaign often target children or young kids
Not so focused on bringing better food to the clients.
McDonalds SWOT Research Opportunities
The firm may take part in more joint endeavors with other different vendors.
The firm should become more responsive to the social craze where people are getting more health mindful.
Focus in enhancing the capabilities of Wi-Fi internet services available in the branches.
There are whole lot expansions of market available in the newly developed countries in the world.
The organization should learn to create more upscale appearance in order to attract a more upscale customers.
Continue to venture and creating more innovative products or promotional.
Research more on green packaging in the organization cultural responsible.
Bringing the products up to the allergen free where consumers don't need to fret about having allergies.
McDonalds SWOT Evaluation Threats
The company's marketing strategies that always lure people from young kids and small children to all the way up till individuals and the criticism that often being taken by the business are largely because of it.
Firm being sued multiple times because of the offering of unhealthy foods which may have alleged addictive additives in it.
Emergence of major competitors in junk food, such as Wendy's, KFC, Burger king and etc.
The organization is vulnerable to the result of slow-moving economies of certain countries.
Research Methodology
Introduction
In this research, our main finding is factors that cause students' conception from higher education organization in the junk food consumption. A lot of the students are having pocket money that provided by their parents, money that students spend will automatically been limited as a consequence to amount of parents give to them, so we want to determine that price will change student belief in fast food area. Besides price factor, we will concentrate on the convenience and attitude of students that affect their understanding on fast food consumption. In addition, current condition in nutrition or health knowledge is also important to us to know that students will be impact by the nourishment knowledge when they want to consume junk food.
Sample design
The sample design begins with focus on on Students which includes the capability to consume food using its own understanding in Malaysia. Most of the student's pocket money is provided by their parents. Because of the amount money that given by parent, scholar will automatically have restriction on spending it. So we decide to find out the best price that will lead student perception in fast food area. The sample's location will pieces at Selangor which includes majority of university student consume in junk food restaurant. It'll given a great deal helpful in writing and be easily on improvement during data collection. The research's concentrate on on fast food restaurant such as Mcdonald, KFC, Pizza Hut, Domino & other fast food restaurant. Besides price factor, we also will focus on the conveniences and attitude of students that impact their perception on junk food consumption. In addition of current condition, we will also find out is nutrition or health knowledge will influence student to consume fast food.
Data collection method
We will use the survey method to collect and accumulate data; this is because survey is the simplest way to get answer from scholar comparing with others techniques that is more difficult. Moreover it's the cheapest way and it manages to assemble respond from large potential respondents. Thru massive amount respondent, it allows statistically evaluation to get more exact results.
To accumulate data, questionnaire is more desirable and easy gets the response from decided on society. The questionnaire will accumulate by self given such as on-line questionnaire, postal questionnaire, delivery and collection questionnaire. This newspaper do not use an interview implemented like cell phone questionnaire, structured interview since it is not efficiency and high costly for a student.
It can provide us great chances to gather our review from our concentrate on respondents that are students. Aside from the reason, it'll give us more and correct feeling from students to answer the study, such as Mc-Donald. Nowadays, online is quite typical to every pupil. No matter is because of their academic goal, for fun or for communal, university student will spend tons of amount of time in online. So, through online survey, we can gather response faster and more convenient. The reason why of using 2 means of survey is that people can accumulate different data or view of respondents from different kind of group's people. Most of the junk food restaurants provides different bundle within different time or period. So we separated it into 3 teams which are breakfast, lunch and supper to assemble our survey, additionally, it may name as stratified sampling. Online method can acquire data faster, but we choose to wait for per month to gather more responses. Both this 2 methods will be run along so that we can accumulate more response within short time of time.
Data analysis
The size test has narrow right down to 100 bits of questionnaires and show out with online and collection from junk food restaurant. We had separated our questionnaire into 5 parts, that happen to be Demographic, Price, Conveniences, LIFE-STYLE and Nourishment. The scale technique that people use is Likert size, so that people can get response about student's notion on junk food from the view of price, convenience, frame of mind and diet. For good examples, the answers will placed on a five point Likert type range expressed as 1= Strongly Agree, 2 = Agree, 3 = Natural, 4 = Disagree, and 5 = Strongly Disagree. Before the past 5 part that is talk about, we also established some questions to get basic information about students' belief on fast food consumption. For illustrations, which junk food restaurant that students most prefer to visit?
The data accumulated are examined using the Statistical Program for Social Knowledge Program (SPSS). In the mean time, prior to the data being analyzed, every data will be saved using numerical codes. This is to make the data enter more quickly and ensure fewer problems appear (Saunders et al. , 2007). SPSS software provides most of the statistic research techniques, such as way of measuring of the central inclination (e. g. mean, median, and method) and dispersion (e. g. standard deviation and inter-quartile range).
(4. 3)Limitation
The limitation of the research newspaper are typically about enough time consuming of the review method and the technological area of the paid survey as it details have to be carefully typed and then dispersing the varieties.
(4. 4)Resource
There are a lot of resources where we can get from the company and publications, as this issues occur for long time already and there are many information out there that people may use in the research.
Survey form
1) Name :
2) Gender : Men Female
3) Competition : Malay Chinese Indian Others
4) Income Level or Pocket Money:-
< RM500. 00 RM500. 00 - RM800. 00
RM801. 00 - RM1200. 00 RM1201. 00 - RM1500. 0
> RM1500. 00
5) Which fast food restaurant(s) you most browsing (only 1 choice)
KFC McDonald Burger Ruler Pizza Hut A&W Others:
6) I choose junk food because of it's
Delicious Fast to get meal
No choice Near and easy access
7) How often can you visit fast McDonalds in weekly?
Every day 3 times
2 times Never
8) The reason of you visit McDonalds is basically because of
Friends Gathering Group discussion
For meal Internet access
9) Have you any idea about the Diet of the meals you take in?
Yes Don't Bother
Nothing whatsoever I wanted to know more
10) What do you think about the price rate of McDonalds meals?
Strongly Inexpensive 1 2 3 4 5 Firmly Expensive
11) Is McDonalds Drive Thru and delivery service convenient to you?
Strongly Agree 1 2 3 4 5 Firmly Disagree
