CONTENTS <ul><li>Objective of presentation </li></ul><ul><li>Fast food industry profile </li></ul><ul><li>Profile of company and its objective </li></ul><ul><li>Research methodology </li></ul><ul><li>Data analysis </li></ul><ul><li>Conclusions </li></ul><ul><li>SWOT analysis </li></ul><ul><li>Limitations </li></ul><ul><li>recommendations </li></ul>
Objective of the presentation McDonald’s is the market leader in fast food industry. The aim of this presentation is to get an insight of the frequency of New Product Introduction in Mc Donald’s and to find that whether customers are aware of new products in time and the source of information of new product introduction. The aim is also to find out the factors that make customers try new products. And for what extent the customers satisfied.
Fast food industry profile <ul><li>Up to 1995 there was not much progress in fast food industry. </li></ul><ul><li>Nirulas was the only fast food chain existing in the country with its restaurants expanding with every passing year since its inception. </li></ul><ul><li>However the year 1995-96 witnessed a drastic change. 1996 is considered to be the year of India’s entry into the world food market. International giants such as McDonalds, KFC, TGIF, Dominos, and Pizza Hut all bombarded the Indian food market. </li></ul>
<ul><li>However in earlier 1990 UK-based joint called Wimpy’s had established its chain in the country in 1990 but Wimpy was looked at more of a hangout place rather than eating out with the family. </li></ul><ul><li>Its been the American international giants i.e., McDonalds, Pizza Hut etc., who have targeted their restaurants to the families. </li></ul><ul><li>Almost all the fast food chains both Indian i.e., Nirulas and foreign i.e., McDonalds etc., are targeting the families. </li></ul><ul><li>Each of these restaurants delivers quality, value and services in its own way through its line of strategies. </li></ul>
Profile of company and its objective Founded: May 15, 1940 in San Bernardino, California (USA) Founder: Dick and Mac McDonald Headquarters: Oak Brook, Illinois, USA No. of locations: 31,000+ worldwide Key people , corporate founder: Ray Kroc Vice Chairman/CEO: Andrew J. McKenna Sr. Chairman: Jim Skinner president: Ralph Alvarez COO UK CEO: Steve EasterBrook Vice CEO and COO: David Fairhurst
Achievement of McDonald at glance <ul><li>McDonalds is the largest and the best-known global food service retailer. </li></ul><ul><li>Its global market potential is enormous seeing the member of restaurants it has. </li></ul><ul><li>On any day McDonald’s serves less than one percent of the worlds population. </li></ul><ul><li>It is one of the most recognized brand all over the world </li></ul><ul><li>Their efforts to increase market share, profitability and customer satisfaction have produced good return to shareholders </li></ul>
Products in Fast Food <ul><li>• hamburgers </li></ul><ul><li>• chicken </li></ul><ul><li>• French fries </li></ul><ul><li>wraps </li></ul><ul><li>desserts </li></ul><ul><li>breakfast </li></ul><ul><li>• milkshakes </li></ul>
Number of Restaurants Country 2006 1998 USA 12804 11,368 Europe 5,460 2,597 Asia Pacific 6,260 2,735 Latin America 1,510 584 Canada, Middle East And Africa 1,665 1,105 Other 1,008 0 Total 28,707 18,299
Vision of Mc Donald McDonalds Vision is to dominate the global food service industry. Global dominance means setting the performance standard for customer satisfaction and increasing market share and profitability through successfully implementing convenience value and exception strategies.
Mission of McDonald <ul><li>McDonald’s India serves only the highest quality products. All McDonald’s suppliers adhere to Indian government regulations on food, health and hygiene while continuously maintaining McDonald’s own recognized standards. All McDonald’s products are prepared using the most current, state-of-the-art cooking equipment to ensure quality and safety. </li></ul><ul><li>At McDonald’s the customer always comes first. McDonald’s India provides fast, friendly service - the hallmark of McDonald’s, that sets its restaurants apart from others. </li></ul><ul><li>McDonald’s restaurants provide a clean , comfortable environment especially suited for families. This is achieved through McDonald’s stringent cleaning standards, carefully adhered to. </li></ul><ul><li>McDonald’s menu is priced at a value that the largest segment of Indian </li></ul>
Goal of the McDonald <ul><li>Mc Donald’s ad line goes like: </li></ul><ul><li>“ Food Family Fun” </li></ul><ul><li>So McDonald’s goal is to provide palate tasting ,pure and hygienic food to its customers at very affordable price so that people get fun visiting more and more here. </li></ul>
RESEARCH METHODOLOGY <ul><li>For the purpose of collecting maximum primary data a structured questionnaire was used </li></ul><ul><li>Also, people from the company and Mc Donald outlets were interviewed telephonically & personally </li></ul><ul><li>Sources of Data </li></ul><ul><li>Primary Data – </li></ul><ul><li>Questionnaires </li></ul><ul><li>Interviews </li></ul><ul><li>Secondary Data – </li></ul><ul><li>Internet </li></ul><ul><li>Articles, Newspapers </li></ul><ul><li>Sample Size </li></ul><ul><li>No of People Approached : 25 </li></ul><ul><li>No of respondents: 25 </li></ul><ul><li>Thereby, the sample size surveyed was 25. </li></ul>
Frequency of new product development Frequency of new product development was taken on bases of the survey done and on opinion of the surveyed persons as to what they think about the frequency of introduction of new product by mcdonald’s
Recent change in products of McDonald’s Study of recent changes was done by asking surveyed person about what they think is the latest change in the products of Mcdonald’s and is depicted in graphical form according to their idea about recent change.
Survey Analysis of surveyed persons as to how they find out about new products and change in products already present, what was there frequency of visit to McDonald’s, what was their age group etc. was also made to make referential analysis.
Conclusion <ul><li>68% of the people want innovation in the products offered by Mc Donald’s. </li></ul><ul><li>The level of awareness of new Products among the regular customers is </li></ul><ul><li>on a 50-50 situation </li></ul><ul><li>Awareness of the new products introduced in Mc Donald’s is mostly through </li></ul><ul><li>visit to Mc Donald’s outlets and by seeing the posters pasted on the walls of outlets. </li></ul>
Strength <ul><li>Mc Donald’s serves its customers with high quality products. There are extensive quality tests at the supplier and all products are examined again in the restaurant to ensure that they are of highest quality possible. </li></ul><ul><li>Mc Donald’s provides fast, friendly service. Any customer visiting Mc Donald’s is usually served within 60 seconds. </li></ul><ul><li>Mc Donald’s menu is priced in such a way that the largest segment of Indian consumers can afford. It has a wide variety of products at different prices to be affordable to as many as possible. </li></ul><ul><li>Mc Donald’s is an active participant in community services </li></ul>
Weakness <ul><li>Mc Donald’s has limited range of items in its menu. However, to get a item included in the menu approval has to be made from the high tech kitchens at Mc Donald’s headquarters in suburban Chicago. </li></ul><ul><li>In India burgers are a long way from becoming the common man’s food, having fast food is considered to be another option for dining out, unlike other countries. </li></ul>
Opportunity <ul><li>McDonald is developing two regional training colleges in India, one each in Delhi and Mumbai. This can save the expense of the organization is sending its management team and crewmembers to outside countries like Indonesia and America. </li></ul><ul><li>McDonald expects to expand its chain in the coming years. It plans to open about 50 restaurants by the year 2000. This can have the opportunity to serve and employ more people. </li></ul>
Threats <ul><li>Mc Donald’s faces tough competition from other food chains in the country both international i.e. Kentucky Fried Chicken, Wimpy’s and Pizza hut and domestic i.e. Nirulas. </li></ul><ul><li>The decision taken by Mc Donald’s India to serve ‘Shudh Shakhari” meals at its restaurants can risk the global American image of Mc Donald’s. </li></ul>
Limitations <ul><li>Since the sample size considered for the study is only 50-60 people specifically who are regular customers of Mc Donald’s, it is quite possible that the result obtained from the study are not 100% accurate, because the sample chosen (randomly), may not be an ideal representative of the target market. </li></ul><ul><li>The perfection of the questionnaire analysis. </li></ul><ul><li>Since many analyses is done on the basis of personal interaction with the customers and employees of Mc Donald’s, the responses received may or may not be authentic. </li></ul>
Recommendations <ul><li>McDonald should come with some less calorie products so that it does not harm the growing children who like eating only junk food. It should come up with more of products, which are nutritious because growing children are the major customers of Mc Donald’s. </li></ul><ul><li>Mc Donald’s should first advertise and then come up with new products in the outlets to create maximum recall in the mind of potential customer. </li></ul><ul><li>It should come up with some spicy items also to beat the competition from Nirulas and Indian Dhabas. </li></ul>