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  1. 1. MCDONALD’S
  2. 2. •McDonald’s is the world's leading food service retailer with more than 30,000 restaurants in 119 countries serving 47 million customers each day. It is one of the world's most well-known and valuable brands and holds a leading share in the globally branded quick service restaurant segment of the informal eating-out market in virtually every country in which they do business.
  3. 3. • Richard and Maurice McDonald were pioneers of McDonald’s and the quick service restaurant industry. Ray Kroc was the founder of McDonald’s Corporation. McDonald’s success today is rooted in the work of all three. • In the late 1940s, Dick and Mac McDonald’s pioneers of McDonald’s were searching for a way to improve their little drive-in restaurant in San Bernardino, California, U.S.A.; they invented an entirely new concept based upon speed service, low prices, and big volumes. Word of its success spread quickly, in 1952 they had more than 300 franchising inquiries a month from all over the country. Joining of Ray Kroc in 1954, and foundation of the company that evolved into McDonald’s Corporation was the major turning point in the history of McDonald’s. McDonald’s is now the largest and best-known foodservice retailer.
  4. 4. • • 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. 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. 5.  McDonald's is an example of brand franchising. Being their own boss in return, the franchisee agrees to operate the restaurant in accordance with McDonald's standards of quality, service, cleanliness and value.  The cooking processes in McDonald's restaurants are broken down into small, repetitive tasks, enabling the staff to become highly efficient and adapt in all tasks.  There is no need to develop the product or do expensive market research.
  6. 6.  It begins with working in a restaurant, wearing the staff uniform and learning everything from cooking and preparing food to serving customers and cleaning.  It recognises that the success and profitability of McDonald's is inextricably linked to the success of the franchises.  Benefit from national marketing carried out by McDonald's A brand is a name, term, sign, symbol or design, (or a combination of these) which identifies one organisation's products from those of its competitors.
  7. 7. • Marketers need in-depth knowledge about the various dimensions which link consumer behavior. There is research required to find out the eating habits of people in a competitive context. McDonald’s found that a major chunk of its consumers decide to eat a few minutes before they make the purchase decisions and hence it is building small outlets in large supermarkets such as Wal-Mart and Home Depot. It is providing play areas to ensure a number of families visit its outlets with children.
  8. 8. • • “You can never penetrate the Indian market without making an effort to understand the country’s culture and mindset”, Although ‘fast food’ is ingrained in the culinary culture of India, the passage of time has not really resulted in any sort of evolution in the manner in which our traditional fast-foods are prepared or served. It’s still very much a ’cottage industry’ with street vendors accounting for almost all the sales. One cannot imagine a day when the street-side ‘vada pav’, ‘chaat’ or ‘sandwich’ stall in our cities will disappear. It’s such an integral part of who we are as Indians. .
  9. 9. • • • Segmentation strategy: The segmentation strategy of McDonald’s can be discussed under the following heads. Geography: Geographically McDonald’s seem to have categorized the entire Indian market as urban and rural markets. As a strategy for entering the Indian market McDonald’s appear to have adopted the segmentation at the micro level, by directing the entire focus towards only urban market. McDonald’s India as of today caters only to the urban population in India. There could be several reasons for this, like the rural eating habits, their affordability and traditional approach towards food. Demography: Demographically the McDonald’s appears to have segmented its market on the following parameters.
  10. 10. • • • Income level: in a market like India where a significant proportion of India’s population lies in the lower income bracket, the price of the products becomes very critical. Now the challenge was to provide quality products at prices affordable to urban masses. The pricing of the products is done keeping in mind the wants of the middle class and the upper middle class, the income category which has grown at a very significant pace over the past few years. For example, the chain has a product called Mc Aloo tikki costing Rs:20/, which caters mainly to the student community whose pockets are not broad enough Age: The earlier strategy of the McDonald’s was to segment the market on the basis of the age, by catering mainly to the kids and youth. However, now they are trying to blur this segmentation and focus on the all age groups. Family: McDonald’s is now targeting the entire family by offering various incentives packed product schemes like “family meals” at a very competitive price
  11. 11.  Psycho graphical > A parent with two children Visits McDonald’s to give their children a treat. > Children Want to visit McDonald’s as it is a fun place to eat. > A business customer Visits McDonald’s during the day as service is quick, the food tastes great and can be eaten in the car without affecting a busy work schedule. > Teenagers Are attracted by the Saver
  12. 12. BEHAVIOURAL • • Occasions: Under this segmentation the McDonald’s has classified customers on the basis of the frequency of their visits, into regular and occasional customers. Now, to maximise the cluster of regular customers they are coming up with ad lines like “BAHAANA KYA HAI” so that the customers don’t look for a special occasion to visit the outlet. Current position in the Indian market: However in spite of adopting all of the above segmentation and marketing strategies hard realities do exists.Nine years after the big mac first set up in India, the burger gaint has yet to make a rupee as net profit. It hopes to break even in a year or two. In India a Mc store typically takes between 5 to 7 years to break even. Part of the reason for its long break even period has to do with the investments required per store in terms of equipment and infrastructure. Much of the process control equipment that allows Mc to dish out burgers and other orders within its super fast time has to be imported.
  13. 13.  Positioning        In adapting the General Market positioning of “America’s favorite fries” for  the Hispanic customer, it was determined to stress not only the irresistibility  and superiority of McDonald’s fries (“They are the best anywhere, you can’t  resist them”), but to add an element of family inclusivity; to stress that they are  everyone’s favorite.       “Favored by ‘big ones’ (adults) and ‘little ones’ (kids)”.      McDonald’s wanted to revitalize the perceived superiority of their world  famous fries while simultaneously blunting aggressive com­petitive efforts by  Burger King.  [Burger King had just begun market testing “new and  improved” French fries.]  To help accomplish this, McDonald’s decided to use  their partnership with the NBA as the strategic “platform” for a special fries  advertising effort.  As such, the positioning in the General Market evolved to  “America’s favorite Guys enjoy America’s favorite fries!”   
  14. 14.    • • • • • • • • • • • • • • A look at McDonald’s menu indicates that Co. has targeted mass market in India .All  or most of the products have been priced in such a way that average Indian consumer  can afford to enjoy fast food with family . Vegetarian Rs. Happy Meal 55/70/93 McAloo Tikki  20.00 McVeggie 39.50 Paneer Salsa Wrap 49.50 Non Vegetarian  Happy Meal 70/93 Chicken McGrill 20.00 Filet­O­Fish 53.00 Chicken Maharaja Mac 63.00 Starters Veg Pizza McPuff 20.00 Large Fries 38.50 Others
  15. 15. • McShakes • Condiment/Topping • Economy Treat (Burger & Fries) • For 2 109.00 • For 4 199.00 • Family Value Meal • Burgers, Fries, Happy Meal and Small Coke   28/39/50.50 5.50 199.00
  16. 16. • McDonald’s pricing strategy can be further analyzed under following heads: • Product Line Pricing:  • McDonald’s offers a range of products and pricing reflects the benefits of the  range. So one can order just a Coke or a Coke with a Burger at additional  price.  • Product Bundle Pricing:  • McDonald’s combines several products in the same package .For example one  can buy a McAloo Tikki alone or one can exercise various other options which  give the customer a range of products in a single basket.  • Promotional Pricing:  • Discounting a combination of products as one product is also a strategy which  McDonald’s follows. McDonald’s clubs three or four products together as one  and price of this new one will be lesser than the sum total of individual  product.   • Value Pricing:  • McDonald’s has realized that Indian market is a price conscious market and  this has forced McDonald’s to provide value products. Examples are economy  meal and value meal served by McDonald’s in India.
  17. 17. • Promotion is a key ingredient in marketing campaigns, consisting of diverse collection of incentive tools, mostly short term, design to stimulate quicker or greater purchase of particular product or services by consumer. • Communication is a means to convey the message to the consumers. The consumer tends to remember just one thing from any communication about the product -- one strong claim, or one strong concept. Unique communications that are simple enough to make a connection with the consumers create excitement about your brand. Strong communication concepts are the foundation for success of a product. In an environment of ever increasing clutter, the message can't afford to go unnoticed. "A strong product concept along with a commitment to establish your brand through good communication" generates positive attention and that's crucial to succeed in the marketplace.
  18. 18. McDonald's India-West is starting a "Customer Relationship Manager Programme" ("the programme"). The programme is specially designed for McDelivery customers who place orders through McDelivery on the McDelivery Number i.e. 66 000 666 ("McDelivery Number") at McDelivery restaurants operated by Hardcastle Restaurants Private Limited ("HRPL"). McDonald's is the world's number 1 fastfood company by sales, with about 32,000 restaurants serving burgers and fries in about 120 countries. (There are nearly 14,000 Golden Arches locations in the US.) The popular chain is well-known for its Big Macs, Quarter Pounders, and Chicken McNuggets. Most of its outlets are free-standing units, but McDonald's also has many units located in airports and retail areas.
  19. 19. A unique sense of dedication and commitment characterizes McDonald's India - a commitment to be driven by the leadership of local owners. Commitment to provide quality products and fast friendly service at a real value to support other Indian businesses through local sourcing and imparting new skills and to generate local employment by being a part of the local culture. This commitment has translated into enduring benefits to the businesses at the grass root level, in the areas of introduction of new crops, new agricultural practices and food processing methods and procedures. McDonald's unique 'cold chain', on which the QSR major has spent more than six years setting up in India, has brought about a veritable revolution, immensely benefiting the farmers at one end and enabling customers at retail counters to get the highest quality food products, absolutely fresh and at great value. McDonald's, through its unique cold chain, has been able to, both cut down on its operational wastage, as well as maintain the freshness and nutritional value of raw and processed food products. This has involved procurement, warehousing, transportation and retailing of perishable food products, all under controlled temperatures. A McDonald's burger is not just a burger but an outcome of dedicated efforts by farmers, its suppliers, distribution centre and a firm promise by McDonald's. McDonald's contributes a great back end process which enables you to enjoy your favorite burger fresh & hot, and for that, the supply chain truly acts as a backbone of the business. The supply chain begins at the grass root level, with the suppliers receving the crop from the farmers. The crop is then processed and dispatched to the Distribution centres in special temperature controlled trucks, which ensures that the quality of the items is not compromised. These items are stored in rooms with different temperature zones and are finally dispatched to the McDonald's restaurants on the basis of their requirements. McDonald's expectation of 'Cold, Clean, and On-Time Delivery' plays a very vital role in maintaining the integrity of the products throughout the entire 'cold chain'.
  20. 20. THANK YOU