A Retail Management Case Study

1. : MADE FOR INDIA
Presented By: Group 4
Sec-B

2. Company Background
• In the early 1940s, McDonald brothers Dick
and Mac opened their first restaurant in San
Bernandino, California.
• McDonald Corporation was created in the
year 1955.
• Adoption of Quality, Service, Cleanliness
and Value as its motto.
• With more than 32,000 resturants in more
than 117 countries of the world.
• Serves to more than 64 million customers
per day.

3. • Company became public in 1965.
• In 2003, announced its first ever-quarterly
loss of $343.8 million.
• Shifted its emphasis to building sales to
existing resturants
KeyGlobal
SuccessFactors
• Affordability
• Menu Variety
• Beverage choice
• Convinience
• Expansion
• Ongoing Resturant
Reinvestment

4. 1) DOMINO’S ACROSS GLOBE
2) DOMINO’S ACROSS INDIA

7. INDIANSTREET
FOOD

8. McDonald’sIndiaOperation
• In 1993 McDonald’s entered India through MIPL.
• McDonald’s India is a joint venture between McDonald’s Corporation
& two Indian partner
a.Hardcastle Restaurants Private Limited
b. Connaught Plaza Restaurants Private Ltd
• Joint venture agreements were signed in March 1995
• Sourcing the products & developing cold chain had started in 1990
• First restaurant in New Delhi opened on 13th October 1996 & in
Mumbai on 21st October 1996

9. McDonald’sIndiaOperation

10. Serving The Indian Palate
• Accommodation of Indian culture & palate
• McVeggie burger and McAloo Tikki were completely new line of
vegetarian items.
• Additional investment of R.s 15 crore at the factory to separate
the lines for vegetarian and non vegetarian food.
• RMS was created for management of the operation
• Vegetarian menu was printed in green & non-vegetarian menu in
purple to distinguish the menu
• Does not offer pork or beef based products in India
• Innovation of products happened based on consumer insights
and feedback.

12. WHY PEOPLE AND TRAINING IMPORTANT?
• Less Supervision
• Improves morale of Employees
• Improves Productivity

13. TRAININGATMCDONALD’S
• Every employee strives for 100% customer satisfaction
• “If you take care of your people the business takes care
of itself”
• Extensive OJT in Indonesia
• Blend of on-floor and class room training
• Induction training
• Food safety and food handling processes
• Front counter to grill area learning
• Restaurant Leadership Programme
• Checking done by managers time to time

15. DEVELOPING THE SUPPLY CHAIN & ENCOURAGING
ENTREPRENEURSHIP
Supply Chain Of McDonald's :-
a.In a fast food business, supply chain is of highest importance.
b.It helps in minimizing cost, cut down the delivery time, improve the
profits and at the same time maintain the highest standards.
c.Before setting up their first restaurant in India, McDonald's infused around
Rs 400 cr in the supply and delivery chain.
d.McDonald's developed local businesses that supply them the products
and that too of highest standards.
e.Today McDonald's have around 38 suppliers that too on long term basis.

16. MCDONALD'S COLD CHAIN
• The cold chain concept was first implemented in India by McDonald's.
• The process of building the chain took more than 6 years with an
investment of more than Rs 450 cr.
• It immensely benefitted both farmers and the customers getting top
quality food products, absolutely fresh and at great value

17. COLD CHAIN
PROCUREMENT
WAREHOUSING
TRANSPORTATION
RETAILING OF FOOD
PRODUCTS
•McDonald's spent a few years
setting up a unique cold chain.
•The cold chain is necessary to
maintain the integrity of food
products and retain their
freshness and nutritional
values.

18. Developing key suppliers
• McDonald worked with farmers of Gujarat and Maharashtra
to develop process grade potato.
• Trikaya Agriculture benefitted immensely from better
agriculture management.
• Post harvest facility including pre-cooling room, a large cold
room, a refrigerated van.
• Technical and financial support.
• Assistance from international partner Vista provides hi-tech
equipment for food processing.
• Local supply network through RadhaKrishna Foodland Pvt.Ltd.

19. Developing key suppliers
• McDonald’s quality standards are maintained by the
distribution centres.
• Tracking of demand and supply.
• first-in, first-out process to ensure freshness.

21. The Location

22. Residences Shopping
Areas
Entertainment Transit Points
Generators

23. Family ExperienceAdvertisements
BuildingThe
Brand

24. Family
Barring smoking & serving of alcohol.
Introduction of Eco-meals.
First Commercial “ Stage Fright “.
Addressed the fillingness issue with Wrap(2002)
and McCurry Pan(2003)

25. Customer
Experience
Providing a large mix of offering
Happy Price Menu with marketing initiative of “
I’m lovin’ it”.
“What your Bahana is ?” marketing proposition
Home Delivery Services.
Single Toll-Free Number

26. Advertisements
“ McDonald’s main hai kuch baat” campaign
“Stage Fright”
“Toh Aaj McDonald’s Ho Jaye”
“Happy Price Menu” with initiative of “ I’m lovin’
it”
“What your bahana is?”
Worldwide partner with Olympic Games

27. SERVINGTHE
SOCIETY
Pulse Polio Immunization
Programme
Spot light
Education Mukhtangan
Traffic safety week
Pulse polio

28. • More than 3100 restaurants in 118
countries serving 50 million
customers each day.
• 113 restaurants across the country
and is moving strength to strength.
• Enabling customers to get the
highest quality food products.
• Launched various products on
competition with KFC.
• Having brand philosophy of
“Forever Young”.
Current
Scenario

29. QUESTIONS

30. What are the learnings that can be drawn from McDonald’s
strategy in India ?
• The Kings of the
cross-sell/upsell
• Willing to re-
invent and try
new things
• Establishing an
overall brand
presence
• Perfecting the art
of convenience

31. What are the issues that McDonald’s
will need to keep in mind if it has to
develop the franchising model in India
?
• Quality
• Price
• Varieties of Product

32. What are the lessons that can be learnt
from the success of McDonald’s in
India ?
• Product
• Pricing
• Process
• Philosophy:
Quality
Service
Cleanliness
Pricing

33. THANK YOU