2. INTRODUCTION
• McDonald's is an American hamburger and fast food. restaurant chain.
• McDonald's is one of the world's largest restaurant chains.
• serving approximately 69 million customers daily in over 100 countries, across
approximately 36,900 outlets as of 2016.
• McDonald's primarily sells hamburgers, cheeseburgers, chicken products, French fries,
breakfast items, soft drinks, milkshakes, wraps, and desserts.
• A McDonald's restaurant is operated by either a franchisee, an affiliate, or the
corporation itself.
• The McDonald's Corporation revenues come from the rent, royalties, and fees paid by
the franchisees, as well as sales in company-operated restaurants.
• McDonald's is the world's second largest private employer (behind Walmart with 1.9
million employees), 1.5 million of whom work for franchises.
3. HISTORY
• It was founded in 1940 as a barbecue restaurant operated by Richard and Maurice
McDonald, in San Bernardino, California, USA. In 1948
• Ray Kroc was the founder of McDonald’s Corporation.
• The McDonald's headquarters complex, McDonald's Plaza, is located in Oak Brook,
Illinois
• The first McDonald's franchise using the arches logo opened in Phoenix, Arizona, USA
in 1953.
• On May 4, 1961, McDonald's first filed for a U.S. trademark on the name "McDonald's"
with the description "Drive-In Restaurant Services", which continues to be renewed.
• On September 13, 1961, the company filed for a trademark on a new logo—an
overlapping, double-arched "M" symbol.
4. MCDONALD’S INDIA
• McDonald’s opened its doors in India in October 1996. They have restaurants in
Mumbai, Delhi, Pune, Ahmedabad, Vadodara, Ludhiana, Jaipur, Noida Faridabad,
Doraha, Manesar and Gurgaon etc.
• McDonald’s in India is a 50-50 joint venture partnership between McDonald’s
Corporation [USA] and two Indian businessmen. Amit Jatia’s company Hardcastle
Restaurants Pvt. Ltd. owns and operates McDonald’s restaurants in Western India.
While Connaught Plaza Restaurants Pvt. Ltd headed by Vikram Bakshi owns and
operates the Northern operations.
5. BUSINESS MODEL
• McDonald’s is famous for its value proposition: food of a constant quality that is
served quickly and consistently across the globe.
• The main customer segments are families, youngsters, the elderly and business
people.
• McDonald’s main strategic partners are its franchise holders. At year end 2013, more
than 80% of McDonald’s restaurants were franchised.
• The key activities McDonald’s engages in is the marketing and selling food and
beverages.
• McDonald’s distributes its products through the restaurants.
• McDonald’s revenues are generated at the restaurants owned by the company itself
and those owned by its franchise holders.
7. MARKET MIX
• The marketing mix of McDonald's discusses the 4p’s of the leading burger chain across
India offering the tastiest burgers and french fries.
– PRODUCT
– PRICE
– PROMOTIONS
– PLACE
8. PRODUCT
• McDonald’s places considerable emphasis on developing a menu which customers
want
• In India McDonalds has a diversified product range focussing more on the vegetarian
products as most consumers in India are primarily vegetarian. The happy meal for the
children is a great seller among others.
9. PRICE
• The customer’s perception of value is an important determinant of the price charged.
Customers draw their own mental picture of what a product is worth.
• In India McDonalds classifies its products into 2 categories namely the branded
affordability (BA) and branded core value products (BCV). The BCV products mainly
include the McVeggie and McChicken burgers and the BA products include McAloo
tikki and Chicken McGrill burgers. This has been done to satisfy consumers which
different price perceptions.
10. PROMOTIONS
• the methods employed is advertising, Advertising is conducted on TV, radio, in cinema,
online, using poster sites and in the press for example in newspapers and magazines.
• Other promotional methods include sales promotions, point of sale display,
merchandising, direct mail, loyalty schemes, door drops, etc.
• At McDonalds the prime focus is on targeting children. In happy meals too which are
targeted at children small toys are given along with the meal
11. PLACE
• McDonald’s outlets are very evenly spread throughout the cities making them very
accessible.
• Drive in and drive through options make McDonald’s products further convenient to
the consumers.
13. STRENGTH
• Brand Equity…world-wide
• 42% of US fast-food hamburger business
• Consistency of food
• Successful items: Fries, Happy Meal, Big Mac, Egg McMuffin, Promotions
• Overseas market
• Balance sheet position
14. WEEKNESSES
• Declining market share
• Weak product development
• Disgruntled franchisees
• Quality and taste of products
• Slowed revenue and income growth
15. OPPORTUNITIES
• International expansion
• Only serving 1% of the world’s population
• Growing dining-out market
• Joint ventures with retailers (e.g. supermarkets).
• Consolidation of retailers likely, so better locations for franchisees.
• Strengthen its value proposition and offering, to encourage customers who visit coffee
shops into McDonalds.
16. THREATS
• Mature/overstored industry
• Strength of competition
• More health-conscious consumers
• Changing demographics
• Fluctuation of foreign exchange rates; Economies
• Recession or down turn in economy may affect the retailer sales