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Introduction The core of this presentation is to discuss the theory of distribution strategy with the underlying real life examples of McDonalds fast-food restaurants in Australia In other words the aim is to discuss McDonalds distribution channel the way this fast-food restaurant gets its products to the market Nonetheless this presentation will demonstrate that McDonalds distribution strategy is effective in many cultures In the theory of marketing mix place distribution determines where the product will be sold and how it will get there In fact McDonalds is the leading global foodservice retailer with more than 30000 local restaurants serving nearly 46 million people each day in 121 different countries Approximately 80 percent of all McDonalds restaurants worldwide are owned and operated by independent franchisors Furthermore at the essence of place decisions Kotler et al 2001 p 513 claims that retailers particularly image fast foods chains often state their seven Ps of marketing to be that is location location location location location location and location Hence a retailers location is the key to attracting customers The costs of the building or leasing facilities is a major factor on the retailers profits Thus site location decisions are among the most important the retailer make Kotler et al 2001 p 513 Intensive Distribution On the other hand McDonalds opened its first restaurant in Australia in December 1971 Today there are more than 690 restaurants throughout Australia and serving in excess of one million customers per day and employing over 55000 staff Therefore you can find them everywhere in Australia where some of the McDonalds are open 24 hours per day which satisfy peoples needs and wants especially for exists their hunger This kind of distribution strategy is called intensive distribution means marking the product available for sale through all possible channels of distribution As defined by Kotler et al 2001 p 487 intensive distribution is stocking the product in as many outlets
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