Marketing McDonalds


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Marketing McDonalds

  1. 2. The Beginning <ul><li>1954, Ray Kroc, 52, a distributor of milk shake maker – Multimixer, heads west on hearing about the McDonalds Bros hamburger stand in California </li></ul><ul><li>Seizing the opportunity, he pitched the idea of opening up several restaurants to the McDonalds brothers. </li></ul><ul><li>“ Who could we get to open them for us?” they asked “Well”, Kroc answered, “What about me?” </li></ul><ul><li>Ronald McDonald, introduced 1963, second only to Santa Claus in terms of recognition. </li></ul><ul><li>Philosophy and Vision:- </li></ul><ul><li>McDonalds complete commitment to Quality, Service, Cleanliness and Value (QSC&V) </li></ul><ul><li>“ We take the burger business more seriously than anyone else” Ray Kroc </li></ul><ul><li>“ If you’ve got time to lean, you’ve got time to clean” Ray Kroc </li></ul>
  2. 3. McDonalds India <ul><li>To be India’s best quick service restaurant experience – supported by principles and core values </li></ul><ul><li>Wholly owned subsidiary McDondalds India Private Limited. </li></ul><ul><li>Incorporated in India in 1993 </li></ul><ul><li>McDonald’s opened its doors in India in Vasant Vihar, New Delhi in October 1996 </li></ul><ul><li>Entered into two JVs with Connaught Plaza – Vikram Bakshi – North and Hardcastle Restraunts - Amit Jatia – West </li></ul>
  3. 4. Product <ul><li>Product Adaptation:- </li></ul><ul><li>Product adaptations in the Asian Markets to suit Indian Tastes:- </li></ul><ul><li>- Burgers with Thai Basil – Thailand </li></ul><ul><li>- Teriyaki Burger – Japan </li></ul><ul><li>- Rice Dishes – Indonesia </li></ul><ul><li>- Aloo Tikki Burger – India </li></ul><ul><li>Indian Challenge:- </li></ul><ul><li>40% Vegetarians – vegetarian selections to suit Indian Tastes </li></ul><ul><li>Maharaja Mac replaced Big Mac – Chicken Patty instead of beef </li></ul><ul><li>Mc Aloo tikki and Puzza Mcpuff introduced </li></ul>
  4. 5. PRODUCT <ul><li>Restaurants Management System (RMS):- </li></ul><ul><li>2 Separate Menus: Green – Veg and Purple – Non Veg </li></ul><ul><li>Separate veg, nonveg kitchens with dedicated staff, preparation and wrapping areas </li></ul><ul><li>Different uniforms for kitchen crew to clearly distinguish roles </li></ul><ul><li>Family Restaurant Concept:- </li></ul><ul><li>The McDonalds experience for the whole family </li></ul><ul><li>Focus on kids – gifts galore </li></ul><ul><li>Brightly lit, casual, comfortable and contemporary look </li></ul><ul><li>Friendly and well trained staff </li></ul><ul><li>Emphasis on cleanliness </li></ul>
  5. 8. PLACE <ul><li>Location </li></ul><ul><li>Macro Context – India </li></ul><ul><li>Micro Context:- </li></ul><ul><li>Tier 1 cities </li></ul><ul><li>Big family size restaurants: </li></ul><ul><li>High density marketplaces </li></ul><ul><li>Shopping Malls </li></ul><ul><li>Railway Stations/Metro Stations </li></ul><ul><li>Desert Kiosks </li></ul><ul><li>Tier 2 Cities </li></ul><ul><li>National Highways (Drive In’s) </li></ul><ul><li>Channels </li></ul><ul><li>Franchise Model </li></ul><ul><li>Company Owned Flagship Outlets </li></ul><ul><li>Coverage </li></ul><ul><li>Pan India Presence </li></ul>
  6. 9. PLACE <ul><li>Distribution </li></ul><ul><li>Matching supplier production with deliveries to meet schedules and restaurant needs </li></ul><ul><li>3 centralized distribution centers at Mumbai, Delhi and Kochi </li></ul><ul><li>Emphasis on economies of scale </li></ul><ul><li>– High storage volumes </li></ul><ul><li>QIP (Quality Inspection Program) </li></ul><ul><li>– Quality checks at 20 points in the supply chain </li></ul><ul><li>HACCP (Hazard Analysis Critical Control Point) </li></ul><ul><li>– Food safety standards emphasizing prevention of faults rather than detection through inspection </li></ul><ul><li>“ With a Cold Chain in place, there is practically no need for a knife in the restaurant. Chopping and food processing is done in the plants. Restaurants are confined to only the actual cooking” – Amit Jaitia </li></ul><ul><li>Logistics </li></ul><ul><li>AFL Logistics – 50:50 JV between AirFreight and FX Coughlin of USA- McDonalds international logistics partner </li></ul>
  7. 10. PRICE <ul><li>Pricing Strategy </li></ul><ul><li>“ Customers attracted purely by these unsustainable but attractive low prices (Happy Price Menu) would not pay repeat visits” – </li></ul><ul><li>Development of a low cost supply chain – crucial enabling factor </li></ul><ul><li>(Trikaya Agri, Cremica Industries, Amrit Foods, Radhakrishna Foodland, Vista processed foods, Dyanamix Diary) </li></ul><ul><li>Value Pricing:- </li></ul><ul><li>Happy Meals – Small Burgers, fries, coke and toy </li></ul><ul><li>Combo Meals – Burger, fries, coke (Medium size) </li></ul><ul><li>Competitive Pricing:- </li></ul><ul><li>KFC – Rs 59-79 (Burger and Drink) </li></ul><ul><li>Pizza Hut – Family Meal (2 medium pizza’s and pepsi) – Rs 350 – 400 </li></ul><ul><li>Even these low prices ensure a 40% margin!! </li></ul><ul><li>Pricing lower than Pakistan, Sri Lanka and 50% lower than U.S. </li></ul>