History <ul><li>“ If you work just for money, you'll never make it, but if you love what you're doing and you always put the customer first, success will be yours” </li></ul><ul><li>- Ray Kroc, Founder, McDonalds </li></ul><ul><li>In the year 1954, a milk-shake machine salesman, Raymond Kroc found that one of his clients the McDonald’s had purchased eight multimixers! </li></ul><ul><li>The next day Kroc talked the brothers into a deal which allowed him to sell McDonald’s franchises for a price of $950. In return Kroc would keep 1.4% of all sales and the brothers would get 0.5% back. </li></ul>
Brand McDonalds – ‘Not Selling a Burger’ <ul><li>Ray realized that he had to have a process in place to make it succeed. </li></ul><ul><li>Hence, he emphasized on precision to achieve efficiency and delved into setting up an operating service system that would give the same quantity and quality of service to people in any of its outlets anywhere in the country that too at the same prices. </li></ul><ul><li>Ray aimed to achieve recurring business through systems competence and not just the quality of a single store. </li></ul><ul><li>Evidently Kroc was subliminally selling a service and not a product (burger) - thereby giving birth to the franchising industry! </li></ul>
Philosophy of McDonald’s in Going International <ul><li>A Unique Philosophy Ray Kroc wanted to build a restaurant system that would be famous for food of consistently high quality and uniform methods of preparation. He wanted to serve burgers, buns, fries and beverages that tasted just the same in Alaska as they did in Alabama. </li></ul><ul><li>“ working not for McDonald’s, but for themselves, together with McDonald’s ”. </li></ul><ul><li>“ In business for yourself, but not by yourself”. </li></ul><ul><li>Rewarding Innovation Ray Kroc believed in the entrepreneurial spirit, and rewarded his franchisees for individual creativity. </li></ul>
McDonalds- Localization & Standardization <ul><li>“ Think Global, Act Local and Sell like a Retailer” </li></ul><ul><li>McDonald’s followed this international mantra while opening doors to the Indian subcontinent. </li></ul><ul><li>With respect to the cultural and traditional sentiments, not only did McDonalds not serve it’s most popular product The BIGMAC (a beef burger) but also developed an egg-less mayonnaise for the first time in the worldwide system. </li></ul><ul><li>Furthermore, each restaurant kitchen was designed to maintain separate Vegetarian and Non-Vegetarian food counters. </li></ul>
Brand Communication <ul><li>The starting point was to clearly change the consumer perceptions from ‘foreign’, ‘American’, ‘not knowing what to expect’, ‘discomfort to new/different’ to ‘Indian’, ‘values families and culture’, ‘comfortable and easy’. </li></ul><ul><li>‘ friendly place where families would love to enjoy and have a special time’. </li></ul><ul><li>However, the onus was to consistently build and protect the brand while persistently committed to fundamentals of QSC&V (Quality, Service, Cleanliness & Value). </li></ul>
In India , there are no Big Macs because the Hindu people don’t eat beef. However, they have the Maharaja Mac, which is a Big Mac made of lamb or chicken meat. There is also a vegetarian burger, the McAloo Tikki. In fish-loving Norway, they have the McLaks, a sandwich made of grilled salmon and dill sauce .
In Costa Rica , unsurprisingly, you can order Gallo Pinto, meaning rice and beans Rice-loving Hong Kong , has – of course – Rice Burgers, where the burgers are in between, not burger buns, but two patties of glutinous rice.
Japan totally reinvents McDonald’s with its Ebi Filet-O (shrimp burgers), Koroke Burger (mashed potato, cabbage and katsu sauce, all in a sandwich), Ebi-Chiki (shrimp nuggets) and Green Tea It’s not Greek without pita, so when in Greece, have a Greek Mac, a burger made of patties wrapped in pita.
Moving forward <ul><li>Three years ago, McDonald’s changed the way it talks to customers and employees around the world by uniting behind one voice, one campaign, - “i’m lovin’ it”. </li></ul><ul><li>The secret behind the worldwide success of McDonalds is its consistency. </li></ul><ul><li>Today, McDonald’s is the world's leading food service retailer with more than 31,000 restaurants in 118 countries serving 50 million customers each day. </li></ul>