The document provides an overview of McDonald's and its operations in India, highlighting its establishment in 1955, adaptation of menu to local tastes, and focus on quality, affordability, and customer satisfaction. It discusses the rise of the fast food market in India, competition from brands like Domino's and KFC, and McDonald's strategies such as menu innovation, supply chain development, and community initiatives. The importance of understanding local culture, ensuring product quality, and responding to consumer preferences are emphasized as key lessons from McDonald's success in the Indian market.

1. MCDONALD’S : Made for India
Presented By : Group-6
Bushra Akhtar
Abhishek Mishra
Tirthankar Moulik
Deepak Kumar Pati
Rajeev Kumar
Rajeev Kumar Ray
“If you take care of your people the business takes care of itself”
-Ray Kroc

2. COMPANY BACKGROUND
• Mc Donald corporation was created in the year 1955 when Ray Kroc
opened his 1st restaurant in Des Plaines, Illinois.
• The company adopted quality, service, cleanliness & value as its
motto.
• It emerged to be a leading global food service retailer with more than
32000 restaurants in more than 117 countries of the world & Serves
more than 64 million customers per day.
• The Company remained focused on key success factors of branded
affordability, menu variety, convenience & operational excellence.

3. RISE OF INDIAN FAST FOOD MARKET
• India is a diverse nation in terms of food habits.
• Each region has it’s own food & dietary habits & food specialities.
• Change in life-styles have fuelled the trend towards eating out &
emergence of new segments like coffee retailing.
• Quick service restaurants (QSR) are known as fast food restaurants
in India with a limited menu offerings.
• Local players like Nirula’s, Haldiram’s existed in specific regions of
the country before the entry of international fast food retailers.

5. DOMINO’S PIZZA
• Domino’s Pizza India ltd. was incorporated in march 1995 as the
master franchisee for India & Nepal, of Domino’s pizza
international USA.
• Mr. Shyam S Bhartia & Mr. Hari S Bhartia of jubilant group were
the promoters of the company.
• The 1st Domino’s Pizza store in India opened in january 1996 at
New Delhi.
• The company’s vision is focused on “Exceptional people on a
mission to be the best pizza delivery company in the world”.

6. DOMINO’S KEY SUCCESS FACTORS
• Committed to bring fun & entertainment to the lives of customers by
delivering delicious pizzas to their doorstep in 30 minutes or less.
• Develops products to suit the taste of the customers thereby bringing
out the wow effect.
• Innovative toppings suitable to the taste buds of the local people.
• Prior to Domino’s not too many outlets offered free home delivery.
• The consumer was not comfortable with the idea of ordering food
from outside & eating it at home.

7. • Made ordering pizza simple by introducing a single number across
the country.
• Apart from launching products at relevant prices for consumers of
lower SEC’s, SEC B & C, the company is also launching new
variants like “Sicilian Wheat Treat Pizza”. It is the 1st time wheat is
being used in an Indian pizza chain according to Domino’s.
• First food services company to launch an online ordering service in
India which enables the customers to pay cash on delivery, debit
card, net banking for the pizzas ordered.

8. YUM! BRANDS
• Yum brands based in louisville, Kentuckey is the world’s largest
restaurant company in terms of system restaurants with more than
35000 restaurants in more than 110 countries & territories.
• Four of the company’s restaurant brands – KFC, Pizza hut, Taco bell
& Long john silver’s are global leaders of chicken, pizza, mexican
style food & quick service sea food categories.
• KFC started operations in India in 1995 & was the 1st western quick
service restaurant to enter the country.
• In the initial years of KFC’s entry it faced several political issues,
however it was relaunched in the year 2003 & the menu included a
wide vegetarian offering.

9. PIZZA HUT
• Entered India in 1996 with it’s 1st restaurant in Bangalore.
• Maintained an impressive growth rate of over 40% p.a.
• Pizza hut restaurants are located in metros & smaller metros.
• Consolidating it’s position by opening more restaurants in metros
where it already has a presence as well as opening outlets in new
markets.
• Pizza hut in India is already present in 34 cities with 171
restaurants & has been voted the most trusted food service brand
for the last 6 years.

10. Future Strategy of YUM! brands
• In 2011 for the 1st time the Indian operations of Yum! Brands will
clock profits of the 1000 stores that Yum plans to open in India in
next 4 years, 50% of which will be KFC.
• The fast food chain will make investments of $150 million over
next 4 years to reach 1000 stores by 2015.
• Also looking to grow the pizza hut delivery model in India where
it faces competition from market leader Domino’s pizza.

11. • Earlier the company operated the pizza hut delivery & dining
platforms from the same unit & that hampered it’s growth on the
delivery side. Now it plans to grow these separately.
• The pizza hut delivery will really be one with a scalable model &
is expected to grow 5 times to 200 outlets over the next 4 years.
• Yum India will also introduce the grilled platform on it’s menu for
KFC over the next month to cater to the growing no of customers
looking for healthier options.

12. NIRULA’S
• Established in 1934, Nirula’s is a diversified group having a chain of elegant
business hotels, waiter service restaurants, ice cream parlours, pastry shops
& food processing plants in India.
• Has 60 outlets operating in 5 states successfully catering to over 50000
guests every day for over 70 years.
• In june 2006 Navis capital partner acquired the Nirula’s group of companies.
The new team at Nirula’s has under taken a massive brand revamp exercise.
• The brand name & logo of Nirula’s has been retained & new sub-brand
logos were created for ice creams, pastry shop, delivery business.
• The company plans to have a national presence by opening 150 new
restaurants in next 3 years which will include ice cream kiosks & express
outlets at shopping malls, petrol pumps & other high footfall locations.

13. MCDONALD’S – Serving the Indian Palate
• Six years before the 1st McDonald restaurant opened in India
McDonald’s & it’s international supply partners worked with local
Indian companies to develop products that met McDonald’s quality
standards.
• McDonald chose to offer a menu that had no beef or pork items &
special product formulations to accommodate the Indian culture.
• Developed special sources with the use of local spices that contained
no beef or pork or any of their flavourings.
• All the vegetarian products including the mayonnaise in vegetable
burgers were eggless & 100% vegetarian.

14. • Additional investment of 15 crore was made at the factory level for
separate lines of vegetarian & non-vegetarian food.
• Additions to the menu has been a regular feature of McDonald’s in
India.
• The product development team works on innovation in products
based on consumers insights & feed back through extensive research.
• Conducts regular qualitative & quantitative studies tracking the target
consumer lifestyle across India, a practise followed internationally as
well.
• The no of changes in the product offerings is the greatest in India.

15. THE INDIAN VALUE PROPOSTION
• McDonald followed a penetrative pricing strategy for most of it’s
products to sustain long term growth & so that a large cross section of
Indian population can afford it.
• It does not scarifies quality for value- leverages economies of scale to
minimize the cost.
• Value at McDonald’s is the sum of total McDonald’s experience that
includes quality food, friendly service, clean environment & prices
that are affordable to a large segment of Indian customers.
• For rupees 10 more the medium value meal can be up sized to a large
value meal.

16. • The burgers, wraps & mc curry pan can be purchased with
either a small drink & small fries to make up a small value mean
or a medium drink & medium fries for a medium value meal.
• ‘The happy price menu’ is the move to demonstrate to the
customers that McDonald is affordable. Under this offering
McAloo Tikki, Chicken Mcgrill, Pizza Mc puff & soft serve
(small) are offered at Rs 20.
• With the new happy meal the company aims at addressing the
issue of value, choice & flexibility. The starting price point is Rs
55 & the company offers a wide range of burgers to choose
from.

18. LOCATION FACTOR
• Various parameters like residences, shopping areas, office,
educational institutions are considered while choosing a
convenient location.
• The company has a requirement of minimum 2500-3000 sq ft
carpet area on the ground floor with a clear height of 11ft & a
frontage of atleast 35-40 ft.
• The premises may be brought or taken on a long term lease.

19. THE PEOPLE & THE TRAINING
• Every employee strives to provide 100% customer satisfaction for
every customer – every visit through friendly service, accurate order
taking and anticipation of customer needs.
• When the Indian joint venture was formalised the management
trainees were given extensive on the job training in Indonesia.
• At McDonald’s training is a combination of on floor & class room
training provided by the learning & development department with
exposure to various aspects of business.
• McDonald’s also provides opportunities of overseas training to those
displaying potential.

20. • Induction training is conducted at the time of an employee’s
joining the organisation which involves one on one interaction as
well as exposure to customer through operations training in
restaurants for a specific period of time.
• Restaurant managers are sent to restaurant leadership programme
held at Hamburger university.
• Restaurant managers walk through the dining areas each hour to
ensure that it is clean & well stocked.

21. DEVELOPING THE SUPPLY CHAIN &
ENCOURAGING ENTREPRENEURSHIP
• McDonald’s India went about creating the cold chain infrastructure
for its restaurants in India.
• Considers the quality of the products to be of utmost importance.
• Believes in developing close relationship with suppliers and sets
standards for them which is the highest in the food industries.
• Encouraged Entrepreneurship by introducing local suppliers to global
suppliers thereby improving quality standards & creating world class
manufacturing facilities in India.

22. DEVELOPING KEY SUPPLIERS
• McCain foods pvt. Ltd. Partnered with McDonald’s to work with
farmers in Gujurat to interact with field assistant to demonstrate the
best agriculture practices.
• The farmers also benefited through incremental monetary as they
sold directly to McCain foods pvt. ltd. instead of commission agents.
• Trikaya Agriculture, the supplier of lettuce & an integral part of
supply chain has benefited through McDonald’s expertise in the area
of agriculture & is now able to grow the crop all year round.

23. • McDonald’s suppliers for chicken & vegetable products are
important players of this cold chain.
• Technical & financial support extended by OSI industries, US &
McDonald’s India pvt. Ltd has helped Vista processed foods pvt.
Ltd. to set up world class infrastructure & ensure freshness of
frozen foods at temperatures as low as -35 degree Celsius.
• Vista has installed hi-tech equipment for both chicken & vegetable
processing lines and utmost care is taken to ensure that the
vegetable products don’t mix with the non-vegetarian products.

24. • McDonald’s supplier of cheese, dynamix dairy has set up a dedicated
quality programme for milk procurement .
• The distribution canters are responsible for procurement, quality
inspection, inventory management, data collection & reporting.
• The DC’s play a very important role in maintaining integrity of the
product that ensures that the products which arrive at the restaurants
from suppliers all over India are absolutely fresh & as per quality
standards of the company.
• In the restaurants products are used on a “first-in, first-out” basis to
ensure freshness. On an average 20 different quality checks are
carried out before any product is served to customers.

25. BULIDING THE BRAND- McDonald’s
• When McDonald’s launched it’s 1st restaurant in India teaser
campaigns in local news papers & extensive PR were used. It
positioned itself as a family restaurant & barred smoking & drinking
on it’s premises.
• From the year 2000 McDonald’s focused on creating a distinct image
of the brand in the minds of the customers & launched it’s
“McDonald’s main hai kuchh baat” campaign. It became the 1st
quick service restaurant in the country to start the advertising in the
country.

26. • In the year 2002 the company moved to anew tag line “Toh aaj
McDonald’s ho jaye” which indicted that now McDonald’s is a
part of our daily life.
• The happy price menu came close on the heels of the marketing
initiative “I am lovin it” which was launched in September 2003
with the purpose of connecting McDonald’s with it’s customers in
highly relevant & culturally significant ways around the world.
• The campaigns have successfully helped in creating an affinity
with audience other than just families & brought a large no of
young adults.

27. • McDonald’s launched a home delivery service in India with an
initial investment of Rs 2 crore with an objective to increase
convenience for the customers & so that they can enjoy
McDonald’s products in the comfort of their homes.
• McDonald’s is the 1st in India to have a single toll-free no. which
customers call to place their order. The call center determines
which restaurant the order should be directed.
• Internationally McDonald’s became an official sponsor of
Olympic games in 1976 & has a long standing commitment to the
Olympic movement.

28. CSR ACTIVITIES
• McDonald’s India has participated in & supported health initiatives
like the Pulse polio immunization programme since 1998.
• Started ‘spotlight’ , an annual inter school arts competition to provide
the students with an atmosphere for healthy competition.
• The unique cold chain has brought about a revolution in food
handling. Benefiting the farmers at one hand & helping customers to
get the highest quality of food products.
• With a brand philosophy of “Forever young” McDonald’s India has
catered to contemporary market requirements & maintained its
leadership position in the fast food industries.

29. • PUBLIC RELATIONS are also an important part of the McDonald’s marketing
strategy. The restaurant employees play a huge role in interacting with the public.
On a day-to-day basis the employees commit themselves to customer and the
customer’s feelings toward the brand.
• POSITIONING STRATEGY McDonald’s positions itself as the leader in quick
service restaurants. Being located in the right place is always critical in retail hence
McDonald’s prefers to be located at a place convenient to the people.
• SERVICE MANAGEMENT STRATEGY Service is the key element of
McDonald’s operations. For this every employee strives to provide 100 % customer
satisfaction for every visit.
• This includes fast ,friendly and attentive service ,accuracy in order taking, filling
and anticipation of customers needs.
What are the learning's that can be drawn from McDonald’s strategy in India?

30. • “You can never penetrate the Indian market without making an effort to
understand the country’s culture and mindset”.
• SERVING THE SOCIETY It followed the international policy of serving
the society.
• Mc Donald’s India has also participated in supported in initiative like the
Pulse Polio Immunization Programmes.
• In the same year 1998 Mc Donald's started Spotlight ,an annual Inter-
school performing arts competition to provide inter-school performing arts
competition for healthy competition.
• Initiated Blue Dot Education initiative for he under Privileged Girl –child.

31. Internationally, McDonald is an example of franchising success, What are the issues that
McDonald’s Will need to keep in mind if it has to develop the franchising model in India ?
• McDonald’s Faces a strong competition ,Offering the cheapest burger in the
world is not an easy. For this the Partners worked with Indian companies to
develop the Products that met quality standards.
• McDonald’s chose to offer a menu that had no beef or pork items and special
product formulations to accommodate the Indian culture and palate.
• EXPANSION There is a large market for McDonald’s still to serve.
Furthermore it has few outlets within cities in which it is currently serving, so
McDonald’s also has opportunity to expand within cities.
• Some of the generators are residence ,shopping areas ,offices ,entertainment
educational institutions and transit points such as metro stations and other
transit points.

32. • FRANCHISEE-OPERATED RESTAURANTS
McDonald’s intends to sell about company-operated restaurants to
franchisees. Loss of goodwill / dilution of brand, if the franchisee acts
independently and does not adhere to certain basic standards.
• GROWING MARKET
As the lifestyle trends of consumers are changing, the dining out market is
growing, that would serve as an opportunity for the McDonald’s.
• THREATS DUE INTENSE COMPETITION
McDonald’s restaurants face intense competition from international, national,
regional and local retailers of food products.
 It competes on the basis of price, convenience, service and quality of food.
 It includes restaurants-QSR establishments, pizza parlors, coffee shops,
street vendors, convenience food stores, delicatessens and supermarkets.
Example Domino’s Pizza India Ltd, Pizza Hut etc.

33. • GROWING HEALTH CONSCIOUSNESS
As the education level has increased, health consciousness has also
increased. A growing consciousness of health matters could reduce
McDonald’s revenues.
• INCREASED SALES TAX
Sales tax has increased which results in the increased customer prices
and reduced sales level.

34. What are the lessons that can be learnt from the success of McDonald’s in India?
• McDonald’s is the most successful fast food franchise in India with 40%
market share.
• The core focus of the organization was in delivering a Quality product,
Served in a friendly environment ,in a clean place at an Affordable price.
• McDonald conducted regular studies tracking the consumer lifestyle across
India, a practice which was done internationally as well.
 Sensitivity to local taste (no beef or pork to value Indian culture)
 Developing special sauces with the use of local spices.
 Coming up with 100% vegetarian Products.
 Affordable Prices
 Promoting a family-dining experience – Innovative practices (e.g. Home-
Delivery).

35. • All new Products were test launched and following the consumer approval
and feedback and the products were taken forward and brought with
necessary changes.
• McDonalds prices its Products in such a way that a very large section of
Indian population can afford it. It also doesn't sacrifice quality for value
rather McDonald’s leverages economies of scale to minimize costs while
maximizing value to the customers .
 They Offered McAloo tikki, Chicken McGrill, Pizza McPuff and soft
serve, Small (hot Fudge and strawberry) are offered at Rs 20
 They came with new Happy Meal starting Price Rs 55.
• Service was the key element of McDonald’s operations .Every Employee
served for 100% customer satisfaction.
• They completely believed in Philosophy of founder Ray Kroc “ if you take
care of your people the business takes care of itself.”

36. THANK YOU