3. • HISTORY
• PAST AND PRESENT
STRATEGY
• SWOT ANALYSIS
• 4 P’S
• ORGANISATIONAL
STRUCTURE
• PROMOTIONAL
STRATEGY
• PRODUCT MIX
• TURNOVER
• DISTRIBUTION
CHANNEL IN
ABOARD
• SEGMENTATION
AGENDA
4. .
As word of their success spread, franchisees started showing
interest. However, the franchising system failed
McDonald's was started as a drive-in
restaurant by two brothers, Richard
and Maurice McDonald in California,
US in the year 1937.
Mcdonald’s History
The original mascot of McDonald's
was a man with a chef's hat on top of a
hamburger shaped head whose name
was Speedee
5. • At this point, Ray Kroc (Kroc), distributor for
milkshake machines . Expressed interest in the
business, and he finalized a deal with the
McDonald brothers in 1954.
•He established a franchising company, the
McDonald System Inc. and appointed
franchisees.
•In 1961, he bought out the McDonald brothers'
share for 16.2 Cr and changed the name of the
company to McDonald's Corporation. In 1965,
McDonald's went public...
Currently McDonald's operates in 121 countries &
having more than 30000 restarunt
McDonald’s History
9. • McDonald's India has already
contributed directly & indirectly
Rs. 95 crore (approx. 16 per cent
of total turnover) as revenue to
the Center and the State towards
Sales Tax, House tax and Income
Tax in the last seven years. By
2005 this amount shall see an
increase of more than 30 per cent
per annum.
Contribution to Economic Growth
12. Current status of McDonald’s
McDonald's is the world's #1 fast-food company by
sales
Serving burgers and fries, it operates more than
36,250 restaurants
It serves in more than 121 countries on six continents
On a day-to-day basis, more than Rs.318 Crores
customers world-wide are served
Employs more than 4,47,000 people
The Boston Market and Chipotle Mexican Grill fast-
casual chains are also owned by McDonald's
Global sales of McDonalds is Rs.5,34,780 Crores in
2013
22. Product Mix in INDIA
‘Vegetarian menu’
Sauces and Cheese
100%vegetarian
Affordable price products
23. Product Mix in China
Menu extensions, convince and value
It opened up a ‘Dollar Menu’ know as the
“Value menu” that offered sandwiches and
other items at a lower price
25. Pricing Strategy
Success of McDonalds has been mainly due to its
value for money offering to the Indian
Consumers
Happy meals comprising of small burgers, coke +
toy
Medium meal combo that consisted of burger,
medium fries and medium coke with the price of
Rs. 75
Maharaja Mac Meal – Rs. 94
26. Place
McDonald's opened its doors in India in October 1996. Ever since then, our
family restaurants in Mumbai, Delhi, Pune, Ahmedabad, Vadodara,
Ludhiana, Jaipur, Noida Faridabad, Doraha, Manesar and Gurgaon have
proceeded to demonstrate.
27. • The ambience and the environment is same at
all the outlets of McDonald's.
McDonald’s Outlets
36. STP Model
McDonald’s has segmented their products
according to 3 different bases
Segmented groups -
Adults, kids, students and family
The 3 bases for segmentation are :
Demographic Segmentation
Psychographic Segmentation
Behavioral Segmentation
37. Target Segment What is McDonalds for me?
A Family with children A treat to children, a fun place to be for
the children
Urban customer on the move Great taste, quick service without
affecting the work schedule
Teenager Hangout with friends, but keep it
affordable
Targeting
39. Declining market share
Declining market share
Weak product
Weak product
development
development
Quality and taste of
Quality and taste of
products
products
42% of US fast-food
42% of US fast-food
hamburger business
hamburger business
Consistency of food
Consistency of food
Successful items: Fries,
Successful items: Fries,
Happy Meal, Aloo tikki, Egg
Happy Meal, Aloo tikki, Egg
McMuffin, Promotions
McMuffin, Promotions
Overseas market
Overseas market
International
International
expansion
expansion
Only serving 1% of the
Only serving 1% of the
world’s population
world’s population
Strength of competition
Strength of competition
More health-conscious
More health-conscious
consumers
consumers
McDonald’s SWOT Analysis
40. Porter’s Five Competitive Forces
Rivalry within industry:
Burger King, Wendy’s, In & Out etc.
Brands - Big Mac, Filet o’ Fish
Innovation – celebrity endorsements, monopoly
Online presence - company info, links to charity works
Threat of new entrants:
Eg.. Burger King
Threat of substitutes:
Any other food industry – high-class restaurants to hot dog
stands
Healthier alternatives (Newman’s Own),
unique products
41. Bargaining power of buyers:
Pay attention to customer demands and trends
Offer specialty products for all segments
First mover- salads, cooking oil
Bargaining power of suppliers:
McDonald’s relies on strong supplier and
distributor relationships
Help suppliers lower costs
Suppliers include: Coca-Cola
Porter’s Five Competitive Forces