Andy McKenna Chairman Ralph Alvarez President and Chief Operating Officer Susan E. ArnoldPresident – Global Business Units Jim Skinner Chief Executive Officer Gloria Santona corporate secretary AmitJatia (West & South) Vikram bakshi North & east
DICK & MAC MCDONALDS
Our vision to be world’s "best" quick service restaurant.
1940 McDonalds’ Bar-B-Que
1948 McDonalds' as “SELF SERVICE DRIVE IN RESTAURANT”
1949 MCDONALDS’ world famous FRENCH FRIES
Value Quality Cleanliness Service
1961 Hamburger university opens
1966 First network TV advertisement “MCDONALD’S-WHERE QUALITY STARTS FRESH EVERYDAY”
1967 McDonalds goes international
1969 Golden arches updated
1971 Ronalds new friend Grimace Hamburglar Captain Crook Mayor Cheese
1978 5000th restaurant
197 9 Happy meal debuts
1983 McDonalds in 32 countries
1984 Ray Kroc passes away
1987 Fresh salads added
1988 Fortune magazine names McDonald's hamburgers among the 100 products America makes best
1992 Warsaw location
199 6 McDonald .com launch
2008 Global packaging redesigned
Relaxed in Recession 2009 One of the most successful big companies during recession. Mac Donald's sales increased by 6.8% in U.S, 4% in Europe and 4.1 % in Asia , middle east and Africa . Mcdonald's was one of only two dowjones industrial Average stocks that ended 2008 with a gain. Pundits say the company to be recession proof and that people will come due to its ease on the pocket menu. Inspite of the fluctuations in the prices of the agro products ,the prices of Mac donald’s products remained constant.
Philosophy "We take the burger business more seriously than anyone else."
Fascinating McFacts As of December 31, 2008, the company operated 31,967 restaurants in 118 countries, 25,465 were operated by franchisees; 6,502 were operated by the company. 50 million customers each day $25.00billion -brand value 2004 -worlds biggest marketer of fast food
Earning love and respect of
Reasons for coming to India
132 restaurants in India(79 are in North & East India and 53 in West & South India) 2.5 lakh customers visit McDonald's TM every day At McDonald’s India we have had a single mantra: providing 100% total customer satisfaction McDonald’s in India is a 50-50 joint venture partnership between AmitJatia’s (Western ) & VikramBakshi (Northern)
ENTRY STRATEGIES Wholly owned subsidiary-MIPL Incorporated in 1993 Trained extensively along with their Indian management team, in McDonalds in Indonesia and US before launch. Changes: to establish in India successfully
Menu(75 %localized menu,33%asian countries &other countries <5%)
Product adaption - the Indian challenge Maharaja Mac replaced Big Mac, Chicken Patty instead of beef McAloo Burger, Veg Salad Sandwich, McMasala & Mcimli Sauces Garlic free sauces to get in “hard core” vegetarian customers 40%vegetarian-vegetarian selections to suit Indian taste
Front office operational process Operation Transportation Delay Inspection Storage
SUPPLY CHAIN MANAGMENT
SUPPLY CHAIN COLD CHAIN LOCAL SOURCING SUPPLIERS OVERVIEW
RESTAURANT MANAGEMENT SYSTEM (RMS) 2 SEPARATE MENUS-GREEN- VEG;PURPLE –NONVEG Separate Veg & Non Veg kitchen Different uniform for kitchen crew to distinguish role Clear segregation-kitchen staff Printed broacher of RMS to customer Customer kitchen tour to assure
Human Resource Management
Co-ordination Co-operation Communication
Five People Principles Respect and Recognition Values and Behaviours Competitive Pay and Benefits Resources To Get The Job Done Training, Learning, Development and Personal Growth
Training, Learning, Development and Personal Growth Hire restaurant crews with good work habits and courteous attitudes Proper training a delivering customer satisfaction Employees receive work experience that teaches skills and values Perfect tools provided
JOB STRUCTURE Employees at McDonalds' fall into 3 different categories RESTAURANT WORKERS CORPORATE STAFF FRANCHISEE OWNERS
BENEFITS MAC Card (McDonald's Gold Card membership) Haircut Discounts Wages increases Life insurance Stock Purchase Plan McDirect Shares Paid Vacation Bonus Scheme Education Support Extracurricular Crew activities Scholarship Program Opportunities for advancement
Function Of Human Resource Planning Leading Organizing Controlling
Human Resource Policy
Growth opportunity Reward both individual and team performance Compensation Offer wage rates that are equitable and non-discriminatory in every location Competitive Compensation
Career opportunity Create career opportunities; Have flexible work hours for student employees. "Learn while you earn" Motivation “employee of the month “. Giving them responsibility.
McStrategies Past Product Development Market Development Forward Integration Joint Venture: Franchisees New Product Development: Focus on core business Joint Venture (Franchisee): Change methods of dealing with franchisees Market Penetration and Development Horizontal Integration
Strengths Brand Recognition Leader in Quick Service Sandwich Industry Strongest International Presence Real-Estate Holdings Variety Sources of Income Franchise Business Model Cost advantage Market versatility
Weaknesses Weak product development Dissatisfied franchisee Value/Premium Items Slow revenue and income growth
Opportunities Only serving 1% of worlds population Growth in Global Food Service Industry Initial Public Offerings in Other Countries Acquisition of Other Restaurants Retail Sales of Merchandises Growing dining-out market
Threats Increased Competition from Various Industries Health Conscious Consumer Trend Value-Conscious Consumer Trend Saturation in fast-food Market Slow Growth in Sandwich Segment Price War Business Practices Changing demography
Segmentation Demographically :- 1] young family (<30years) 2]Urban upper & Middle class families. Geographically :- 1]Mostly in urban towns and cities 2]Now opening in 2 and 3 tiers cities 3]Mostly situated in malls having independent franchises Psychographic:- 1]Place to chill out with friends and families 2]Place for enjoyment of the kids
POSITIONING MacDonald meinhainkuchbaath-a place for an entire family to enjoy. Mac Donald I’m lovin it. DIFFERENTIATION Highlighting Brand, Food & Variety.
Target market Only < 10% population possible target market Phase I Phase II Phase III
4 Ps 3 Ps Product People Process Promotion Physical Evidence Place $ Price
Product Product Variation: Variety in products ranging from Burgers to softies Product Innovation: Adapting to Indian conditions creating the “CHICKEN MAHARAJA” Product Elimination: Removal of Beef flavored products Menu: Veg, Non Veg, Frozen Desserts, Beverages
Failures:, Fajita, Carrot Sticks, McLean, and the Arch Deluxe
Price Pricing includes the list of prices & discount available Special offer such as happy meal ,Value meal & Combo meal.
Place Fully owned outlets Franchise owned outlets that does selling from different places McDonald's mainly consists of the distribution channels the product is available to the customer at the right place, at the right time and in the right quantity Offers hygienic environment good ambience and great service Started giving internet facilities Areas for children where they can play and enjoy with their Family and friends Spend some quality time together
Promotion Individual communication Mass communication Free distribution of children toys. Some of the most famous marketing campaigns of McDonald’s are:
“You Deserve a break today, so get up and get away- To McDonald’s”
“Food, Folks, and Fun”
“I’m loving it”.
A History of McDonald's Advertising Themes McDonald's is Your Kind of Place (1967) You Deserve a Break Today (1971) We Do it All for You (1975) Twoallbeefpattiesspecialsaucelettucecheesepicklesonionsonasesameseedbun (1975) You, You're The One (1976) Nobody Can Do It Like McDonald's Can (1979) Renewed: You Deserve a Break Today (1980 & 1981)Nobody Makes Your Day Like McDonald's Can (1981) McDonald's and You (1983) It's a Good Time for the Great Taste of McDonald's (1984) Good Time, Great Taste, That's Why This is My Place (1988) Food, Folks and Fun (1990) McDonald's Today (1991) What You Want is What You Get (1992) Have you Had your Break Today? (1995) My McDonald's (1997) Did Somebody Say McDonald's (1997) We Love to See You Smile (2000) There's a little McDonald's in Everyone (2001) - Canada Only i'mlovin' it (2003)
"Speedee” to promote McDonald's fast service
Hi ! I am Chief Happiness Officer at McDonalds
NEW PRODUCT LAUNCH .Premium spicy chicken sandwich. .Asian Salad.
NEW PRODUCT LAUNCH .Drinkable breakfast enriched like yoghurt. .Mc Nuggets (launched in India recently).
CORPORATE STRATEGIES To make food fast Low cost International expansion
Awards & Achievement
Push-excel corporate partner award, Corporate achievement and image award, Nullities corporate award, Corporate vision award, The circle of inclusion award. The halal journal awards 2008 Hall of fame award Corporate citizenship award Vince nichols memorial award Mcdonald's UAE achievements awarded by mcdonald's corporation CFA presents inaugural lifetime achievement award at 2008 recognition awards luncheon
McDonald's India - A decade of quality service Most Respected Company' for four consecutive years, 2003-2007 in the Food Services sector, by Businessworld Most Wanted Brand of the Year' Award 2003 & 2004 by Franchising Holdings India Ltd. Retailer of the Year' Award for catering services, 2004-2006 at the Images Retail Awards. The 'Most Preferred Fast Food Outlet' 2006 & 2007 by Awaaz Consumer Award, hosted by CNBC. Star Retailer - The Consumer Way, Food Services Retailer' of the Year 2006 & 2007, by Franchise India Amity Corporate Excellence Award'-in 2007 & 2008
Received national recognition for diversity. Push-excel corporate partner award. Corporate achievement and image award. Nullities corporate award. Corporate vision award. The circle of inclusion award.
Take an active community
Sponsor Ronald McDonald Houses: providing a home away from home for families of seriously ill children receiving treatment at nearby hospitals.
Promote workforce diversity,
Support education through student scholarships, teacher awards, and free instructional resources.
Adopt and encourage environmentally friendly practices.
Provide nutritional information on McDonald's products to customers.
ENVIRONMENTAL ACHIEVEMENTS AUDUBON society, Conservation international, Keep America beautiful, The national recycling coalition, The U.S. Environmental protection agency
Reason Of Success ???
McDonald’s the Future..!! Coming up with new schemes that suits to every pocket at any time. McDonald’s undertakes expansion; plans 40 new stores at Rs 150 cr investment in 2009 Mc-delivery has been started so everyone can be at home and enjoy McDonald's food
CONCLUSION CONCLUSION CUSTOMER PROFIT GREATER PROFIT BUT
Operational excellence Leadership marketing Innovation” is key of success. Focus on quality management. Customer is first ,fulfill their expectation . Satisfaction of employees is necessary to increase the productivity. ‘Taking initiative’ leads to success. Think global , act local
Shall we go to McDonalds???
Wait……… Before making any conclusions, have a look……..
REFERENCES www.mcdonalds.com www.macdonaldsindia.net www.scribd.com 4P’S Business &Marketing The marketing warfare Times of India. Business standard