“One world, One Burger”- McDonald’s By VASIM CAlCuttAwAlA
So, Let’s go, Listen My story, Agenda of My story is AGENDA• HISTORY• SOME FACTS ABOUT MCDONALD’S• PAST AND PRESENT STRATEGY• SWOT ANALYSIS• 7 P’S• MCDONALDS LOCATION SELECTION• TECHNOLOGY IN RETAIL• RETAIL FORMAT• STORE LAYOUT• ORGANISATIONAL STRUCTURE
McDonalds Mission Statement"McDonalds vision is to be the worldsbest quick service restaurantexperience. Being the best meansproviding outstanding quality, service,cleanliness, and value, so that we makeevery customer in every restaurantsmile."
Mcdonald’s History McDonalds was started as a drive-in restaurant by two brothers, Richard and Maurice McDonald in California, US in the year 1937. The brothers used assembly lineprocedures in their kitchen for massproduction... As word of their success spread, franchisees started showinginterest. However, the franchising system failed because the
McDonald’s History• At this point, Ray Kroc (Kroc), distributor formilkshake machines.Expressed interest in thebusiness, and he finalized a deal with theMcDonald brothers in 1954.•In 1961, he bought out the McDonald brothersshare for $2.7 million and changed the name ofthe company to McDonalds Corporation. In1965, McDonalds went public...
McDonald’s History INDIA • Entered in India 1996 • McDonalds India is a 50 – 50 JV partnership between MCDONALD’S CORPORATION (U.S.A) and two Indian businessman Amit Jatia and Vikram Bakshi • Localisation: DON’T OFFER ANY BEEF OR PORK ITEM IN INDIA IN PRODUCT LIKE MCVEGGIE, PIZZA MCPUFF ETC.THEY USE SPICES FAVOURED BY INDIANS SOFT SERVES AND MCSHAKES ARE EGGLESS • Actively Involver in many social activities likegi CHILD EDUCATION, PULSE POLIOiesetc.
History in India• 1996 …the first McDonald’s restaurant opened on Oct. 13, at Basant Lok, Vasant Vihar, New Delhi. It was also the first restaurant in the world not serving beef on its menu• 1997…the first Drive –Thru restaurant at Noida• 1999…the first Mall location restaurant at Ansal Plaza – New Delhi• 2000…the first highway restaurant at Mathura• 2001…the first thematic restaurant at Connaught Place• 2002…the first restaurant in a food court at 3C’s, Lajpat Nagar and the first restaurant at the Delhi Metro Station at Inter State Bus Terminus
Segmentation, Targeting andPositioning• McDonald’s uses demographic segmentation strategy with age as the parameter. The main target segments are children, youth and the young urban family
ADAPTION STRATEGY• Menu differences:• Netherlands and Austria– Beer• Germany – Chinese Week• Canada – Mc Pizza• India – Goat and lamb burgers half of menu vegetarian• Japan – ingredients such as cabbage and Teriyaki• USA – Barbecue bacon Burgers, sausage breakfast burritos
Mc -Strategies International Growth Forward Integration -Distribution through Franchisees Backward Integration -Local Sourcing, Suppliers Market penetration & Development McDonaldizing the supplier New Product Development - Aloo Tikki, Salad
BeveragesCold CoffeeIce TeaSoft DrinksMc ShakesHot Serves Menu
McShakes McShakes™ Nutrition at glance Pr Ca Se Ca Fa ote rb. rvi lori t in ng es Pr in in in Ca Fa Type siz in ote g g g rb t (Quantity) e kC in ms ms ms % % in al / % / / / g se se se se ms rve rve rve rve 27 29 5 8 7 52 7 3 19 3Chocolate 40 43 10 75 10 3 19 3(S/M/L) 0 3 13 94 13 3 19 3 50 54 0 1 27 27 5 0 7 46 7 2 17 2Strawberry 40 39 10 67 10 2 17 2(S/M/L) 0 3 12 84 12 2 17 2 50 49 0 1 Menu
Soft Serves Nutrition at glance Calorie Protein Carb. Fat Servin s in Protein in in Fat Type g size in Carb% gms / % gms / gms / % in gms kCal / serve serve serve serveSoft Serve with Hot Fudge (Small) 86 3 25 3 140 4 29 4Soft Serve with Hot Fudge (Medium) 143 6 43 5 241 4 30 4Soft Serve with Strawberry (Small) 86 3 23 3 126 3 26 3Soft Serve with Strawberry (Medium) 143 4 39 4 208 3 27 3 Menu
Soft Serve Cone Nutrition at glance Protein Calories FatServing size Carb. in gms / in kCal / Protein% in gms / Carb% Fat % in gms in gms / serve serve serve serve 71 2 16 2 95 3 22 4 Menu
Non- Veg MenuChicken Maharaja Mac McChicken Fiet-O-FishChicken Mexican Wrap Chicken McGrill Chicken McCurry Menu
Filet-O-FishFilet-O-Fish™Fried, breaded fillet of fish, with ahalf slice of processed cheddarcheese, special tartar sauce servedbetween steamed buns. Nutrition at glance Serving size Protein Carb. Fat in gms in gms / serve in gms / serve in gms / serve 145 13 49 23 Calories Protein% Carb% Fat %in kCal / serve 462 9 34 16 Menu
Chicken Maharaja MacChickenMaharaja Mac™2 Grilled chicken patties with a smoke-flavoured mayonnaise, fresh onions,tomatoes, processed cheddar cheese in atoasted sesame seeded bun.Nutrition at glance Protein Fat Serving size Carb. in gms / in gms / in gms in gms / serve serve serve 255 32 54 26 Calories Protein% Carb% Fat % in kCal / serve 573 12 21 10 Menu
Chicken Mexican WrapChicken Mexican Wrap™A traditional Mexican soft flat bread thatenvelops crispy golden brown chickenencrusted with a Mexican Cajun coating,and a salad mix of iceberg lettuce, carrot,red cabbage and celery, served witheggless mayonnaise, tangy Mexican Salsasauce and cheddar cheeseNutrition at glance Protein Carb. Fat Serving size in gms / in gms / in gms / in gms serve serve serve 192 14 37 21 Calories in kCal / Protein% Carb% Fat % serve 392 7 19 11 Menu
McALOO TikkiMcAloo Tikki™Fried breaded potato & peas pattythat is flavoured with a special spicemix, fresh tomato slices, onion, andveg. tomato mayonnaise betweentoasted buns. Nutrition at glance Serving Protein Carb. Fat size in gms / in gms / in gms / in gms serve serve serve 150 6 53 15 Calories in kCal / Protein% Carb% Fat % serve 367 4 35 10 Menu
Paneer Salsa Wrap Pizza McPuff™ Mixed vegetables (carrot, beans, capsicum, onion and green peas), mozzarella cheese mixed with tomato sauce and spice blend coated with a savoury dough.Nutrition at glance Protein Carb. FatServing size in gms / in gms / in gms / in gms serve serve serve 80 4 26 14 Calories in kCal / Protein% Carb% Fat % serve 245 5 33 17 Menu
4P’s of McDonalds• Product• How should the company design, manufacture the product so that it enhances the customer experience?• Price What should be the pricing strategy?• Place• Where should be the product be available and the role of distribution channels?• Promotion• What is the suitable strategy and channels for promotion of the product?
Past Mc Product Strategies• Product Development – Successes: Fries, Happy Meal, Big Mac, Egg McMuffin, Promotions – Failures: McPizza, Fajita, Carrot Sticks, McLean, and the Arch Deluxe
• 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”“Aap ke zamane mein ,baap ke zamane ke daam”.“Food, Folks, and Fun”“I’m loving it”.
PlaceMcDonalds opened its doors in India in October 1996. Ever since then, ourfamily restaurants in Mumbai, Delhi, Pune, Ahmedabad, Vadodara,Ludhiana, Jaipur, Noida Faridabad, Doraha, Manesar and Gurgaon haveproceeded to demonstrate.
McDonald’s Outlets• The ambience and the environment is same at all the outlets of McDonalds.
Pepole • Each outlet is headed by a Restaurant Manager . He is responsible for the daily operation and customer interaction. • Delivery Crew Member carries basic operation of a restaurant. Ensures customer satisfaction at the restaurants. • In order to motivate there employees they give them stars as per their performance.
McDonalds location SelectionSpace require• In terms of space: Minimum of 2,500 – 3,000 square feet carpet area on the ground floor with a clear height of 11 feet and a frontage of at least 35 to 40 feet.• Offers both Counter Service and Drive through Service• Drive-Thru, Auto-Mac, Pay and Drive, or McDrive as it is known in many countries, often has separate stations for placing, paying for, and picking up orders.• "McDrive" locations near highways offer no counter service or seating.
• In contrast, locations in high-density city neighborhoods often omit drive-through service• There are also a few locations, located mostly in downtown districts that offer Walk-Thru service in place of Drive-Thru.• Some locations are connected to gas stations/convenience stores, while others called McDonalds Express have limited seating and/or menu or may be located in a shopping mall.• Other McDonalds are located in Wal-Mart stores.• McStop is a location targeted at truckers and travelers which may have services found at truck stops.
• McDonald’s India is one of the few countries that provides a home delivery service• Call on 6600 0666 and place the order.• Minimum Charge 15rs Per order• The restaurants will deliver to neighborhoods which are up to 10 minutes away by road.
Recognition [Rewards]• In addition to McDonalds competitive wage and promotion programs, hard work, dedication, motivation and results are recognized and rewarded at McDonalds.• Appreciation comes in many forms - from a simple thank you for a job well done, to restaurant-wide recognition through programs such as the Face of the Month and ‘Face of the Quarter’.• McDonalds also offers great incentive programs with access to gift certificates and merchandise.
Technology In Retail• From old-fashioned cash registers to computerized point-of-sale systems that could track massive amounts of data in seconds• McDonalds was the first quick-service chain to install touch-screen computers at the front counter and in the drive-thru, making it easier for servers to input orders.• New POS, a product developed by Savista, will help McDonalds improve restaurant productivity and enhance the customer experience• Attemt for solution that would permit debit, credit and gift card transactions to be processed through the standard POS system in less than four seconds
• In a small number of restaurants, McDonalds U.S. is evaluating a customer order center concept that involves drive-thru orders taken by employees working remotely at two customer order centers. High-speed data connections are used to transmit the orders from the drive-thrus to the centers as well as from the centers back to restaurant Kitchen Staff.• Meanwhile, pilot tests of self-service ordering kiosks are underway in the Denver and Chicago markets. At this point, the kiosks accept only cashless payments as a way to keep the machines easy and quick to operate
Retail Format : Franchising• Franchising enables McDonald’s to enjoy considerably faster growth and the creation of a truly global brand identity.• On the financial side, McDonald’s receives a monthly rent which is calculated on a sliding scale based on the restaurant’s sales• There is also a service fee of 5% of sales that is contributed to support department activities and royalties.• The purchase price of a restaurant is generally about £150,000 upwards. The new franchisee is expected to fund a minimum of 25% of this from their own unencumbered funds.
Store Layout• The new design will include the traditional McDonalds yellow and red colors, but the red will be muted to terra cotta, the yellow will turn golden for a more "sunny" look and olive and sage green will be added.• To warm up their look, the restaurants will have less plastic and more brick and wood, with modern hanging lights to produce a softer glow.• Contemporary art or framed photographs will hang on the walls.• The exterior will have golden awnings and a "swish brow" instead of the traditional double-slanted mansard roof.
• The new restaurants will feature areas:• The "linger" zone will offer armchairs, sofas, and Wi-Fi connections.• The "grab and go" zone will feature tall counters with bar stools for customers who eat alone; Plasma TVs will offer them news and weather reports.• The "flexible" zone will be targeted toward families and will have booths featuring fabric cushions with colorful patterns and flexible seating.• Different music targeted to each zone.
Supply ChainSuppliers Mfg Dist. Retai Customer Material Flow
Supply Chain Trikaya Agriculture - Supplier of Iceberg Lettuce. successfully grows speciality crops like iceberg lettuce, special herbs and many oriental vegetables. Farm infrastructure features: A specialized nursery with a team of agricultural experts. Drip and sprinkler irrigation in raised farm beds with fertilizer mixing plant. Pre-cooling room and a large cold room for post harvest handling. A large cold room and a refrigerated van for transportation where the temperature and the relative humidity of this crop is maintained between 1º C and 4º C and 95% respectivelyVista Processed Foods Pvt. Ltd. - Supplier ofChicken and Vegetable range of products.A joint venture with OSI Industries Inc., USA, and McDonalds India Pvt.Ltd. Vista Processed Foods Pvt. Ltd. produces a range of frozen chicken andvegetable foods. A world class infrastructure at its plant at Taloja,Maharashtra, has: Separate processing lines for chicken and vegetable foods. Capability to produce frozen foods at temperature as low as -35 DegreeCelsius to retain total freshness. International standards, procedures and support services.
Supply Chain Dynamix Diary - Supplier of Cheese. Dynamix has brought immense benefits to farmers in Baramati, Maharashtra by setting up a network of milk collection centres equipped with bulk coolers. Easy accessibility has enabled farmers augment their income by finding a new market for surplus milk. The factory has: Fully automatic international standard processing facility. Capability to convert milk into cheese, butter/ghee, skimmed milk powder, lactose, casein & whey protein and humanised baby food. Stringent quality control measures and continuous Research & Development. Radhakrishna Foodland - Distribution Centre. An integral part of the Radhakrishna Group, Foodland specialises in handling large volumes, providing the entire range of services including procurement, quality inspection, storage, inventory management, deliveries, data collection, recording and reporting. Salient strengths are: A one-stop shop for all distribution management services. Dry and cold storage facility to store and transport perishable products at temperatures up to - 22 Degrees Celsius. Effective process control for minimum distribution cost.
Jumbo King — The branded vada pav chain Introduced automation, packaging and Created a Brand Jumbo King is a food chain that has branded Mumbai’s favorite snack, The Vada pav. Vada pav is an INR 500 million market in Mumbai itself, out of which jumbo king’s share is more than 100 million Jumbo king has broken the stereotype methodDheraj Gupta and introduce hygienic manhandled vadapv. It has become Mumbais most visited brand with over 40,000 customers per day Jumbo king considers McDonalds it’s “guru” and aims to become India’s McDonald’s.
Contribution to Economic Growth• McDonalds India has already contributed directly & indirectly Rs. 95 crore (approx. 16 per cent of total turnover) as revenue to the Center and the State towards Sales Tax, House tax and Income Tax in the last seven years. By 2005 this amount shall see an increase of more than 30 per cent per annum.