Detailed Case Study on McDonalds India. Target Market, Retail Industry Overview. product, supply chain, pricing strategies, store location, hiring process, employees, promotional strategies, adapting to indian market. McDonalds Retail chain.
its a ppt about hoe mcd adopted various techniques to survive in india.. what were the different challenges faced by mcd in india....
and what are the marketting strategies of mcd...
Marketing Strategy which includes Consumer Analysis, Marketing Mix, Porter`s Five Force Model, PEST analysis, Competitive Scenario, STP and Break Even.
its a ppt about hoe mcd adopted various techniques to survive in india.. what were the different challenges faced by mcd in india....
and what are the marketting strategies of mcd...
Marketing Strategy which includes Consumer Analysis, Marketing Mix, Porter`s Five Force Model, PEST analysis, Competitive Scenario, STP and Break Even.
This presentation gives you the exact idea of what are the strategies MCDonalds had adopted to enter in India.
From the Food menus they had tried a plenty of innovations to survive in India.
Vision of Ray Croc for McDonald's. McDonald's current position in international market. SWOT analysis for McDonald's. PESTEL analysis for McDonald's. Porter's Five forces of market. Conclusion. McDonald's customer satisfaction approach of business. King of international fast food chain.
KFC (the name was originally an initialism for Kentucky Fried Chicken) is a fast food restaurant chain that specializes in fried chicken and is headquartered in Louisville, Kentucky, United States (US). It is the world's second largest restaurant chain overall (as measured by sales) after McDonald's, with over 18,000 outlets in 120 countries and territories as of December 2012. The company is a subsidiary of Yum! Brands, a restaurant company that also owns the Pizza Hut and Taco Bell restaurant chains.
KFC was founded by Harland Sanders, an entrepreneur who began selling fried chicken from his roadside restaurant in Corbin, Kentucky, during the Great Depression. Sanders identified the potential of the restaurant franchising concept, and the first "Kentucky Fried Chicken" franchise opened in Utah in 1952. KFC popularized chicken in the fast food industry, diversifying the market by challenging the established dominance of the hamburger. By branding himself as "Colonel Sanders," Harland became a prominent figure of American cultural history, and his image remains widely used in KFC advertising. However, the company's rapid expansion saw it overwhelm the ageing Sanders, and in 1964 he sold the company to a group of investors led by John Y. Brown, Jr. and Jack C. Massey.
KFC was one of the first fast food chains to expand internationally, opening outlets in England, Mexico and Jamaica by the mid-1960s. Throughout the 1970s and 1980s, KFC experienced mixed fortunes domestically, as it went through a series of changes in corporate ownership with little or no experience in the restaurant business. In the early 1970s, KFC was sold to the spirits distributor Heublein, who were taken over by the R.J. Reynolds food and tobacco conglomerate, who sold the chain to PepsiCo. The chain continued to expand overseas however, and in 1987 KFC became the first Western restaurant chain to open in China. The chain has since expanded rapidly in China, which is now the company's most profitable market. PepsiCo spun off its restaurants division as Tricon Global Restaurants, which later changed its name to Yum! Brands.
KFC's original product is pressure fried chicken pieces, seasoned with Sanders' recipe of 11 herbs and spices. The constituents of the recipe represent a notable trade secret. Larger portions of fried chicken are served in a cardboard "bucket," which has become an icon of the chain since it was first introduced by franchisee Pete Harman in 1957. Since the early 1990s, KFC has expanded its menu to offer other chicken products such as chicken fillet burgers and wraps, as well as salads and side dishes such as French fries and coleslaw, desserts and soft drinks, the latter often supplied by PepsiCo. KFC is known for the slogan "finger lickin' good," which has since been replaced by "Nobody does chicken like KFC" and "So good."
• Project Scope: To evaluate the various aspects of Integrated Marketing Communication (IMC).
• Description: The project involved an official McDonald’s restaurant tour and a deep understanding of advertising, public relations, direct marketing, sales promotion and personal selling.
This presentation gives you the exact idea of what are the strategies MCDonalds had adopted to enter in India.
From the Food menus they had tried a plenty of innovations to survive in India.
Vision of Ray Croc for McDonald's. McDonald's current position in international market. SWOT analysis for McDonald's. PESTEL analysis for McDonald's. Porter's Five forces of market. Conclusion. McDonald's customer satisfaction approach of business. King of international fast food chain.
KFC (the name was originally an initialism for Kentucky Fried Chicken) is a fast food restaurant chain that specializes in fried chicken and is headquartered in Louisville, Kentucky, United States (US). It is the world's second largest restaurant chain overall (as measured by sales) after McDonald's, with over 18,000 outlets in 120 countries and territories as of December 2012. The company is a subsidiary of Yum! Brands, a restaurant company that also owns the Pizza Hut and Taco Bell restaurant chains.
KFC was founded by Harland Sanders, an entrepreneur who began selling fried chicken from his roadside restaurant in Corbin, Kentucky, during the Great Depression. Sanders identified the potential of the restaurant franchising concept, and the first "Kentucky Fried Chicken" franchise opened in Utah in 1952. KFC popularized chicken in the fast food industry, diversifying the market by challenging the established dominance of the hamburger. By branding himself as "Colonel Sanders," Harland became a prominent figure of American cultural history, and his image remains widely used in KFC advertising. However, the company's rapid expansion saw it overwhelm the ageing Sanders, and in 1964 he sold the company to a group of investors led by John Y. Brown, Jr. and Jack C. Massey.
KFC was one of the first fast food chains to expand internationally, opening outlets in England, Mexico and Jamaica by the mid-1960s. Throughout the 1970s and 1980s, KFC experienced mixed fortunes domestically, as it went through a series of changes in corporate ownership with little or no experience in the restaurant business. In the early 1970s, KFC was sold to the spirits distributor Heublein, who were taken over by the R.J. Reynolds food and tobacco conglomerate, who sold the chain to PepsiCo. The chain continued to expand overseas however, and in 1987 KFC became the first Western restaurant chain to open in China. The chain has since expanded rapidly in China, which is now the company's most profitable market. PepsiCo spun off its restaurants division as Tricon Global Restaurants, which later changed its name to Yum! Brands.
KFC's original product is pressure fried chicken pieces, seasoned with Sanders' recipe of 11 herbs and spices. The constituents of the recipe represent a notable trade secret. Larger portions of fried chicken are served in a cardboard "bucket," which has become an icon of the chain since it was first introduced by franchisee Pete Harman in 1957. Since the early 1990s, KFC has expanded its menu to offer other chicken products such as chicken fillet burgers and wraps, as well as salads and side dishes such as French fries and coleslaw, desserts and soft drinks, the latter often supplied by PepsiCo. KFC is known for the slogan "finger lickin' good," which has since been replaced by "Nobody does chicken like KFC" and "So good."
• Project Scope: To evaluate the various aspects of Integrated Marketing Communication (IMC).
• Description: The project involved an official McDonald’s restaurant tour and a deep understanding of advertising, public relations, direct marketing, sales promotion and personal selling.
This presentation is about how MacDonald's has created its presence in Indian Market and the unique techniques and ways it uses to create value for its customers enhancing the brand image.
This paper potrays the history and evolution of Mc Donald’s into India and the challenges faced by the firm and its marketing strategies in India and how it had overcome the challenges and been able to triumph over its last great frontier by providing the country-specific products by 70% indianistation of its products
The central purpose of the study is to determine the best international marketing strategy for McDonalds in India and shedding light on these strategies- Standardisation or Adaptation.
THE KEY FACTORS BEHIND THE SUCCESS OF MC DONALDS IN INDIAVARUN KESAVAN
McDonalds in India. It was as early as 1989 even before the New Industrial Policy of 1991 was introduced the International Team of McDonalds visited India to identify opportunities for entry into a highly traditional and conservative market. As the company was in the process of researching and devising entry strategies the Government of India announced the New Industrial policy of 1991. This paved way for the company and there was a need to fasten its efforts to develop its entry plan into India. During 1991 to 1992 the company had setup a specialised team to understand the regulatory issues pertain to FDI in India. The FDI for this fast food restaurant chain was possible through a Joint venture with two companies in1994. The market for the West was targeted through a Joint venture with Hard castle Restaurants and the market for the North was targeted through a Joint venture with Connaught Plaza Restaurants. As the company was in the process of establishing, it already started training its employees and also setting up the supply chain the most important part of a food chain. With strenuous efforts the company was able to open shop in 1996 with its first store in Delhi and second store in Mumbai both during August1996.With a very humble start the company currently operates more than 300 restaurants in India. The strong foundation laid by Ray Kroc continues even today with the company in its vision and strong commitment in evolving into a value driven brand and recognises the brand affordability as an important proposition for its sustainability in a market like India where majority of the customers belong to the middle class giving them the blend of pure Indian taste at an affordable price.
The company is in the path of Continuous Innovation to strengthen its business model in India and to keep evolving according to the customer needs.
Mc donald's customer loyalty programs and customer relationship managementKartik Mehta
McDonald's is the world's leading food service retailer with more than 33,000 restaurants in 118 countries serving more than 67 million customers each day.
Ownership and management:
–NothernIndia-VikramBakshi'scompany Connaught Plaza Restaurants
–Western India-Amit Jatiathat is HardcastleRestaurants
McDonald's worldwide is well known for the high degree of respect for the local culture of each market it operates in.
In line with this respect for local culture, India is the first country in the world where McDonald's does not offer any beef or pork items.
Most small businesses struggle to see marketing results. In this session, we will eliminate any confusion about what to do next, solving your marketing problems so your business can thrive. You’ll learn how to create a foundational marketing OS (operating system) based on neuroscience and backed by real-world results. You’ll be taught how to develop deep customer connections, and how to have your CRM dynamically segment and sell at any stage in the customer’s journey. By the end of the session, you’ll remove confusion and chaos and replace it with clarity and confidence for long-term marketing success.
Key Takeaways:
• Uncover the power of a foundational marketing system that dynamically communicates with prospects and customers on autopilot.
• Harness neuroscience and Tribal Alignment to transform your communication strategies, turning potential clients into fans and those fans into loyal customers.
• Discover the art of automated segmentation, pinpointing your most lucrative customers and identifying the optimal moments for successful conversions.
• Streamline your business with a content production plan that eliminates guesswork, wasted time, and money.
Digital marketing is the art and science of promoting products or services using digital channels to reach and engage with potential customers. It encompasses a wide range of online tactics and strategies aimed at increasing brand visibility, driving website traffic, generating leads, and ultimately, converting those leads into customers.
https://nidmindia.com/
Most small businesses struggle to see marketing results. In this session, we will eliminate any confusion about what to do next, solving your marketing problems so your business can thrive. You’ll learn how to create a foundational marketing OS (operating system) based on neuroscience and backed by real-world results. You’ll be taught how to develop deep customer connections, and how to have your CRM dynamically segment and sell at any stage in the customer’s journey. By the end of the session, you’ll remove confusion and chaos and replace it with clarity and confidence for long-term marketing success.
Key Takeaways:
• Uncover the power of a foundational marketing system that dynamically communicates with prospects and customers on autopilot.
• Harness neuroscience and Tribal Alignment to transform your communication strategies, turning potential clients into fans and those fans into loyal customers.
• Discover the art of automated segmentation, pinpointing your most lucrative customers and identifying the optimal moments for successful conversions.
• Streamline your business with a content production plan that eliminates guesswork, wasted time, and money.
Mastering Multi-Touchpoint Content Strategy: Navigate Fragmented User JourneysSearch Engine Journal
Digital platforms are constantly multiplying, and with that, user engagement is becoming more intricate and fragmented.
So how do you effectively navigate distributing and tailoring your content across these various touchpoints?
Watch this webinar as we dive into the evolving landscape of content strategy tailored for today's fragmented user journeys. Understanding how to deliver your content to your users is more crucial than ever, and we’ll provide actionable tips for navigating these intricate challenges.
You’ll learn:
- How today’s users engage with content across various channels and devices.
- The latest methodologies for identifying and addressing content gaps to keep your content strategy proactive and relevant.
- What digital shelf space is and how your content strategy needs to pivot.
With Wayne Cichanski, we’ll explore innovative strategies to map out and meet the diverse needs of your audience, ensuring every piece of content resonates and connects, regardless of where or how it is consumed.
A.I. (artificial intelligence) platforms are popping up all the time, and many of them can and should be used to help grow your brand, increase your sales and decrease your marketing costs.In this presentation:We will review some of the best AI platforms that are available for you to use.We will interact with some of the platforms in real-time, so attendees can see how they work.We will also look at some current brands that are using AI to help them create marketing messages, saving them time and money in the process. Lastly, we will discuss the pros and cons of using AI in marketing & branding and have a lively conversation that includes comments from the audience.
Key Takeaways:
Attendees will learn about LLM platforms, like ChatGPT, and how they work, with preset examples and real time interactions with the platform. Attendees will learn about other AI platforms that are creating graphic design elements at the push of a button...pre-set examples and real-time interactions.Attendees will discuss the pros & cons of AI in marketing + branding and share their perspectives with one another. Attendees will learn about the cost savings and the time savings associated with using AI, should they choose to.
It's another new era of digital and marketers are faced with making big bets on their digital strategy. If you are looking at modernizing your tech stack to support your digital evolution, there are a few can't miss (often overlooked) areas that should be part of every conversation. We'll cover setting your vision, avoiding siloes, adding a democratized approach to data strategy, localization, creating critical governance requirements and more. Attendees will walk away with actions they can take into initiatives they are running today and consider for the future.
How to Run Landing Page Tests On and Off Paid Social PlatformsVWO
Join us for an exclusive webinar featuring Mariate, Alexandra and Nima where we will unveil a comprehensive blueprint for crafting a successful paid media strategy focused on landing page testing.With escalating costs in paid advertising, understanding how to maximize each visitor’s experience is crucial for retention and conversion.
This session will dive into the methodologies for executing and analyzing landing page tests within paid social channels, offering a blend of theoretical knowledge and practical insights.
The Pearmill team will guide you through the nuances of setting up and managing landing page experiments on paid social platforms. You will learn about the critical rules to follow, the structure of effective tests, optimal conversion duration and budget allocation.
The session will also cover data analysis techniques and criteria for graduating landing pages.
In the second part of the webinar, Pearmill will explore the use of A/B testing platforms. Discover common pitfalls to avoid in A/B testing and gain insights into analyzing A/B tests results effectively.
In this presentation, Danny Leibrandt explains the impact of AI on SEO and what Google has been doing about it. Learn how to take your SEO game to the next level and win over Google with his new strategy anyone can use. Get actionable steps to rank your name, your business, and your clients on Google - the right way.
Key Takeaways:
1. Real content is king
2. Find ways to show EEAT
3. Repurpose across all platforms
For too many years marketing and sales have operated in silos...while in some forward thinking companies, the two organizations work together to drive new opportunity development and revenue. This session will explore the lessons learned in that beautiful dance that can occur when marketing and sales work together...to drive new opportunity development, account expansion and customer satisfaction.
No, this is not a conversation about MQLs and SQLs. Instead we will focus on a framework that allows the two organizations to drive company success together.
Digital Money Maker Club – von Gunnar Kessler digital.focsh890
Title One is a comprehensive examination of the impact of digital technologies on
modern society. In a world where technology continues to advance rapidly, this article delves into the nuances and complexities of the digital age, exploring Its implications across various sectors and aspects of life.
Monthly Social Media News Update May 2024Andy Lambert
TL;DR. These are the three themes that stood out to us over the course of last month.
1️⃣ Social media is becoming increasingly significant for brand discovery. Marketers are now understanding the impact of social and budgets are shifting accordingly.
2️⃣ Instagram’s new algorithm and latest guidance will help us maintain organic growth. Instagram continues to evolve, but Reels remains the most crucial tool for growth.
3️⃣ Collaboration will help us unlock growth. Who we work with will define how fast we grow. Meta continues to evolve their Creator Marketplace and now TikTok are beginning to push ‘collabs’ more too.
Digital Commerce Lecture for Advanced Digital & Social Media Strategy at UCLA...Valters Lauzums
E-commerce in 2024 is characterized by a dynamic blend of opportunities and significant challenges. Supply chain disruptions and inventory shortages are critical issues, leading to increased shipping delays and rising costs, which impact timely delivery and squeeze profit margins. Efficient logistics management is essential, yet it is often hampered by these external factors. Payment processing, while needing to ensure security and user convenience, grapples with preventing fraud and integrating diverse payment methods, adding another layer of complexity. Furthermore, fulfillment operations require a streamlined approach to handle volume spikes and maintain accuracy in order picking, packing, and shipping, all while meeting customers' heightened expectations for faster delivery times.
Amid these operational challenges, customer data has emerged as an important strategy. By focusing on personalization and enhancing customer experience from historical behavior, businesses can deliver improved website and brand experienced, better product recommendations, optimal promotions, and content to meet individual preferences. Better data analytics can also help in effectively creating marketing campaigns, improving customer retention, and driving product development and inventory management.
Innovative formats such as social commerce and live shopping are beginning to impact the digital commerce landscape, offering new ways to engage with customers and drive sales, and may provide opportunity for brands that have been priced out or seen a downturn with post-pandemic shopping behavior. Social commerce integrates shopping experiences directly into social media platforms, tapping into the massive user bases of these networks to increase reach and engagement. Live shopping, on the other hand, combines entertainment and real-time interaction, providing a dynamic platform for showcasing products and encouraging immediate purchases. These innovations not only enhance customer engagement but also provide valuable data for businesses to refine their strategies and deliver superior shopping experiences.
The e-commerce sector is evolving rapidly, and businesses that effectively manage operational challenges and implement innovative strategies are best positioned for long-term success.
3. Introduction
• The McDonald’s Corporation is the world’s largest chain of
hamburger fast food restaurants, serving around 68 million
customers daily in 119 countries.
• Headquarters in the United States, the company began in
1940 as a barbecue restaurant opened by Richard and
Maurice McDonald. In 1948 they reorganized their
business as a hamburger stand using production line
principles.
• McDonald’s operates over 34,000 restaurants worldwide,
employing more than 1.7 million people.
4. McDonald’s India
Grand Opening: McDonald's opened its doors in India, the
95th country, in 1996 and was the first country to serve non-
beef and non-pork items. Its authority on non-beef and non-
pork products still remains unchallenged.
Ownership: McDonald’s India is a locally owned company
managed by Indians;
- Vikram Bakshi, under Connaught Plaza Restaurants Pvt. Ltd
in Northern and Eastern Region (Headquartered in New Delhi)
through a joint venture
- Smita Jatia, under Hard castle Restaurants Pvt. Ltd. in the
Western and Southern Region(Headquartered in Mumbai)
which is a DL (Development Licensee)
5. McDonald’s India
McDonald’s Philosophy: McDonald’s philosophy of QSCV
(Quality, Service, Cleanliness and Value) is the guiding force
behind it’s service to the customers in India
The Scorecard: The first McDonald's restaurant in India
opened on October 13, 1996 at Basant Lok, New Delhi.
Today, McDonald’s has 242 restaurants operating in India
serving over 5, 00,000 customers’ everyday and has
completed more than 10 years of unparalleled in the country.
Vendor Development; McDonald’s spent more than 5 years
(from 1990 onwards) on developing the first beef-less and
pork-less menu in McDonald’s history.
6. Key Landmarks - McDonald’s
India Journey
1996:
• The first McDonald’s restaurant opened on Oct. 13, at
Basant Lok, Vasant Vihar, New Delhi. It was also the first
McDonald’s restaurant in the world not serving beef on its
menu.
1997:
• The first Drive–Thru restaurant at Noida (UP)
• The first disabled friendly store at Noida (UP)
1999: The first Mall location restaurant at Ansal Plaza (Delhi)
7. Key Landmarks - McDonald’s
India Journey
2000 : The first highway restaurant at Mathura (UP)
2001: The first thematic restaurant at Connaught Place (Delhi)
2002 :
• The first restaurant in a food court at 3C’s, Lajpat Nagar
(New Delhi)
• The first restaurant at the Delhi Metro Station at Inter State
Bus Terminus
• The first fundraiser in association with ORBIS and Dr.
Shroff’s Charity Eye hospital.(Delhi)
8. Key Landmarks -
McDonald’s India Journey
2003: The first Dessert Kiosk – Faridabad (Haryana)
2004: McDonald’s Delivery Service (McDelivery) introduced in
New Delhi.
2003-04: Indigenous products like McAloo Tikki, McVeggie
and Pizza McPuff exported to Middle East countries.
2006:
• McDelivery on Bicycles flagged off at Chandni Chowk
(Delhi)- another first initiative by McDonald’s India
• 100th McDonalds Restaurant in India, 10th year Anniversary.
9. Key Landmarks -
McDonald’s India Journey
2007:
• The first McDonald’s open in Eastern Region at Park Street,
Kolkata.
• The first restaurant opened at Airport (Domestic Airport,
New Delhi).
• The first MFY restaurant opened at Greater Noida, Uttar
Pradesh
2008:
• The first restaurant to start Breakfast Menu at Janpath, New
Delhi
10. Key Landmarks -
McDonald’s India Journey
2008: The First restaurant to start extended hours procedure at
Cyber Greens, Gurgaon and Saket, New Delhi
2009: The first McDonald’s Restaurant opens at Old Delhi
Railway Station.
2010: The first reimaged new look restaurant opened at
Ambiance mall, Vasant Kunj.
2011:
• Introduces premium products in it is menu – McSpicy range
of products
11. Key Landmarks -
McDonald’s India Journey
2011:
• Introduces Mcflurry (premium desserts) in Oreo and
chocolate crispy flavors.
• Wi-Fi services in its restaurants.
2012:
• Spicy Fest – Introducing new spicy variants for a limited time
period
• New product launch in the Happy Price Menu – McEgg –
Rs. 25.
12. Key Landmarks -
McDonald’s India Journey
2012:
• Launch of employee engagement program – Voice of
McDonald’s & Olympic Crew Championship.
• MDS through web in Delhi.
McDonald’s currently has 300 restaurants in India of which 145
are in North & East India and 155 in West & South India.
13. Fast Food Industry In India
• As per new research report “Indian Fast Food Market
Analysis”, India is blessed with one of the fastest growing
fast-food markets in the world. The Indian fast food market is
growing at an annual growth rate of 30-35%.
• Although the market has witnessed robust growth in the past
couple of years, it remains largely under penetrated and
concentrated in the metropolitan cities.
• In 2013, the global fast food market is forecasted to have a
value of $200 billion, an increase of 29.3% and a volume of
94.7 billion transactions, an increase of 10.4% since 2008.
14. Fast Food Industry In India
• It is estimated through credit Suisse Emerging Consumer
Survey, that the average Indian spends just $11 as
compared to his Chinese counterpart who would ideally
spend $20 on fast food. Yet, if we see the Indian spending
on food in totality, they spend 23% of their earnings on the
same while the Chinese spending is 20%.
• Almost all big fast food brands of the world have succeeded
in making their presence felt in the country and most of them
are posting appreciable growth.
15. McDonalds Business Model
Franchise Model :- Only 15% of the total number of
restaurants are owned by the Company. The remaining 85%
is operated by franchises. The company follows a
comprehensive framework of training and monitoring of its
franchises to ensure that they adhere to the Quality, Service,
Cleanliness and Value propositions offered by the company
to its customers.
Product Consistency :- by developing a sophisticated
supplier networked operation and distribution system, the
company has been able to achieve consistent product taste
and quality across geographies.
16. McDonalds Business Model
Act like a retailer and think like a brand :- McDonalds
focuses not only on delivering sales for the immediate
present, but also protecting its long-term brand reputation.
17. Target Market Segment
McDonald’s has segmented their products according to 3
different bases. They have segmented their products and
positioned their products according to kids, students and
family. But they haven’t segmented their products according to
the Adult target group.
The 3 bases for segmentation are :
• Demographic Segmentation
• Psychographic Segmentation
• Behavioral Segmentation
18. Target Market Segment
• Demographic Segmentation :- (Kids, family and students.)
McDonalds offers different products like Happy Meal which
includes a free toy for kids. For family it has made different
outlets and meals which are suitable for takeaways and
drive-thru. McDonalds has made its environment suitable for
school/college students to hangout with their friends and
grab their lunch at McDonalds.
• Psychographic Segmentation :- (Convenience and
lifestyle )McDonalds has adapted itself according to the
convenience and lifestyle of the Indian consumers, as India
has a huge vegetarian population so McDonald’s came up
with a different and new product line which includes items
like Mc Veggie burger and Mc Aloo tikki Burger.
19. Target Market Segment
• Behavioral Segmentation :- (Occasions, for e.g. Birthday
parties for kids). McDonalds at several outlets also provides
facilities like “Play Place” where children can play arcade
games, air hockey etc. This helps McDonalds to attract the
young urban families wanting to spend some quality time
while their children have fun at the outlet.
20. Customer Perception and
Customer Expectation
Customer perception is a key factor affecting a product’s
success. Many potentially revolutionary products have failed
simply because of their inability to build a healthy perception
about themselves in the customers minds. McDonalds being an
internationally renowned brands brings with it certain
expectations for the customers.
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.
21. Challenges in Entering Indian
Markets
• Regiocentricism : Re-engineering the menu –
McDonald’s has continually adapted to the customer’s
tastes, value systems, lifestyle, language and perception.
Globally McDonald’s was known for its hamburgers, beef
and pork burgers. Most Indians are barred by religion not to
consume beef or pork. To survive, the company had to be
responsive to the Indian sensitivities. So McDonald’s came
up with chicken, lamb and fish burger to suite the Indian
palate.
• The Vegetarian customer – India has a huge population of
vegetarians. To cater to this customer segment, the
company came up with a completely new line of vegetarian
items like Mc Veggie burger and Mc Aloo tikki.
22. McDonald’s Marketing Mix
The 5 P’s used by McDonald’s are :-
1. Product
2. Place
3. Price
4. Promotion
5. People
23. Product
McDonalds has intentionally kept its product depth and
product width limited. McDonalds studied the behavior of the
Indian customer and provided a totally different menu as
compared to its International offerings.
It dropped ham, beef and mutton burgers from the menu. India
is the only country where McDonalds serves vegetarian menu.
Even the sauces and cheese used in India are 100%
vegetarian.
McDonalds continuously innovates its products according to
changing preferences and tastes of it customers. The recent
example is the introduction of the Chicken Maharaja Mac.
McDonalds bring with it a globally reputed brand, world class
food quality and excellent customer specific product features.
25. Place
The place mainly consists of the distribution channels. It is
important so that the product is available to the customer at
the right place, at the right time and in right quantity.
There is a certain degree of fun and happiness that a
customer feels each time he dines at McDonalds. There are
certain value propositions that McDonalds offer to its
customers based on their need. McDonalds offers hygienic
environment, good ambience and great service.
26. McDonald’s Supply Chain
An Overview
• 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.
27. McDonald’s Supply Chain
Supply Chain Process
• A McDonald's burger is not just a burger but an outcome of
dedicated efforts by farmers, its suppliers, distribution center
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 receiving the crop from the farmers. The crop is
then processed and dispatched to the Distribution centers in
special temperature controlled trucks, which ensures that
the quality of the items is not compromised.
28. McDonald’s Supply Chain
Supply Chain Process
• 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'.
29. McDonald’s Supply Chain
Sourcing and Storage
Setting up this extensive cold chain distribution system has
involved the transfer of state-of- the-art food processing
technology by McDonald's and its international suppliers to
pioneering Indian enterprises who, today, are an integral
part of the McDonald's cold chain.
McDonald's Supply Chain's distribution partner ensures that
all requirements ranging from liquid products coming from
Punjab, to lettuce from Pune, is received from different parts
of the country.
30. McDonald’s Supply Chain
Sourcing and Storage
McDonald's India has around 40 suppliers and all the
suppliers are HACCP certified, ensuring highest level of
quality. They work cohesively to ensure that the final product
reaches the customer consistently each time and every time
McDonald's India has ensured that this dedicated supply
chain enables the Indian supplier an accesses to latest in
food processing technology, management practices and
advanced agricultural inputs with significant investment at
the back end. This has proved to be a great advantage in
serving the customers better.
31. McDonald’s Supply Chain
Supply Chain: Cost Management
The tremendous value benefit is enabled by McDonald's
renowned supply chain management system and by
leveraging economies, which helps minimize costs while
maximizing value to customers.
McDonald's strong back ward integration connects it directly
with various aspects of the business right up to the farm level,
which helps in increasing the productivity in terms of yields
and helps the brand manage costs.
A well entrenched process driven production system ensures
high levels of standardization and quality, which also keeps
wastage and costs in check
32. McDonald’s Supply Chain
Supply Chain: Menu Management
• Menu innovations are a constant practice at McDonald's.
McDonald's introduced global core products like McNuggets
and have also re-engineered the product range to suit the
Indian palate. This menu innovation has been possible due
to robust supply chain network right up to farm level.
• Every new product requires a special treatment and the
backend process needs to be upgraded to meet the
requirements.
34. Pricing Strategy
Success of McDonalds has been mainly due to its value for
money offering to the Indian Consumers. The prices offered
are in the range of lower middle section of the society.
Moreover it customization in accordance with the taste of
Indian consumers has also worked in its favor. McDonalds
Pricing Strategies are as follows:-
• Value Pricing.
• Product line Pricing.
• Promotional Pricing.
• Penetration Pricing.
35. Pricing Strategy
Value Pricing
McDonalds came with the concept of value pricing for Indian
consumers where in it came out with various combos in form of
• 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
• Famil Dines under Rs. 300.
36. Pricing Strategy
Product line Pricing
McDonalds has a unique price strategy which falls soley on
many of their product lines. Their Value Meals fall into the
category of Product Line Pricing. “where there is a range of
product or services the pricing reflect the benefits of parts of
the rang”. For example, you can order Two Cheeseburger
Value Meal that comes with a medium drink and fries for
around Rs. 75 (prices may vary). You can Super size this meal
to get a large drink and fries for a little money or you can go
with another value meal that might include different items for
different price.
37. Pricing Strategy
Promotional Pricing
If you have driven past a McDonald’s, you will notice that
somewhere on their property, whether it is a banner on their
building or spelled out on their sign, they are always offering
some sort of promotional pricing. This promotion can be seen
as a large banner draped across the building on many
restaurants. This promotion changes weekly and may consist
of different menu items packaged together
38. Pricing Strategy
Penetration Pricing
When McDonald’s first began to break into the coffee market,
they ran a large marketing campaign in order to gain some
market share in the industry. For a limited time frame, you
could get a free small coffee every morning from 4-7 am. This
was to promote their new coffee partnership with Green
Mountain coffee and helped spread the word that McDonald’s
was now offering coffee.
39. Promotion
The various promotion channels being used by McDonalds to
effectively communicate the product information are given
below. A clear understanding of he customer value helps
decide whether the cost of promotion is worth spending.
40. Promotion
There are 3 main objectives of advertising for McDonalds -to
make people aware of an item, feel positive about it and
remember it. The right message has to be communicated to
the right audience through the right media. McDonalds does
its promotion through television, hoardings and bus shelters.
Some of the most famous marketing campaigns of McDonalds
are:
• “You deserve a break today, so get up and get away- To
McDonalds”
• “Aap ke zamane mein, baap ke zamane ke daam”
• “Food, folks and fun.”
41. People
McDonalds understands the value of both its employees and
its customers. It understands the fact that a happy employee
can serve well and result in a happy customer.
McDonald has been one of the most prominent in the global
hospitality for many years. The continuous growth of the
company in a global market addressing various issues
regarding the Human resources hailing from countries with
different culture is really an interesting matter of study.
Generally a HR strategy involves the careful development of
various components of the HRM.
42. Human Resource Strategy
A general discussion of the HR strategy of McDonald has
been made as follows:
1. Organizational Structure.
2. Job Analysis and Job Evaluation.
3. Recruitment and Selection Process.
4. Management development (Training and Development).
5. Motivation Performance management and Appraisal.
6. Reward and Employee Benefits.
43. Human Resource Strategy
1) Organizational Structure
McDonald has 3 different categories in their structure:
• The corporate staff controls the company and manages the
franchises worldwide.
• The Franchisees are given restaurants to manage them
following the standard of practices set by McDonald.
• Restaurant workers are the lower-level wage based
employees who are paid in hourly basis.
44. Human Resource Strategy
2) Job Analysis and Job Evaluation
• Job Analysis method of the McDonald is developed by the
human resource department in consultation with various
other departments. After job description, job restructuring is
performed on the basis of observations of the senior
employees.
• In McDonald’s, Job evaluation involves deciding the wages
and salaries of the employees on the basis of job analysis.
Job evaluation is also referred as compensation in
McDonald. The organization has its predefined standards
for the evaluation of its employees based on their skills,
knowledge and experiences.
45. Human Resource Strategy
3) Recruitment and Selection Process
McDonald screens the applications submitted by the individual
applicants. A well devised recruitment policy is formulated for
the selection process. The screening of the applicants is based
on the merit, institute of previous employment, experience and
so on. Candidates passing through this are further processed
for selection.
46. Human Resource Strategy
4) Management Development
Training and development of employees is of vital concern for
a globalized company like McDonald. McDonald has a
Management Development Program (MDP) designed to
develop the potential leaders. For example, each year,
McDonald trains about 55,000 employees. It also invests more
than $10 million to ongoing employee trainings, providing
valuable skills and knowledge to its franchisees all over the
globe. It has a designated Hamburger University as a
management training center for its valued employees.
47. Human Resource Strategy
5) Performance Appraisal
The performance of the employees is appraised on a regular
basis. Absence of appropriate performance appraisal leads to
employee dissatisfaction and frustration. McDonald makes use
of various performance appraisal methods like Graphical rating
scale and 360 degree feedback.
48. Human Resource Strategy
6) Compensation and Employee Benefits
Compensation in McDonald includes:
• Direct financial payments: wages, salaries, bonuses and
commission.
• Indirect payments: financial benefits like paid insurance
Employee Benefits in McDonald includes perks and benefits
like:
• Free life insurance after 3 years of employment,
• Medical and hospital facilities,
• Provident fund, etc.
49. Competitors Analysis
McDonalds has been a leading fast-food outlet. But the outlet
understudy has other competitors eating away into the market
share. In addition to its traditional rivals – KFC, Dominos, Pizza
Hut- the firm encounters new challenges. Jumbo King
competes using a back to basics approach of quickly serving
up burgers for time-pressed consumer. On the higher end, the
KFC has become potent competitor in the quick service field,
taking away customers from McDonalds.
At this time, a new critical success factor maybe emerging; the
need to create rich, satisfying experience for the consumers.
This brings us to service and experience based competition
which McDonalds can use against Jumbo King.
50. Competitors Analysis
Keeping in mind the demographics of the area, McDonalds
has Wi-Fi enabled the outlet to cater to the student community.
It is for this overall “Food, Fun & Folks” experience customers
pay premium price over the other competitors.
Competition also reduces product lifecycle; inducing firms to
revise their product portfolios and to revisit their product
market to understand changing needs, expectations and
perception of different market segments. The new
McBreakfast woud be introduced between 6 to 11 am as a
pilot project. This would open up a whole new revenue stream
for McDonalds by tapping into student an working population.