McDonald's is the world's largest fast food chain serving 68 million customers daily. It began in 1940 as a barbecue restaurant operated by Richard and Maurice McDonald in the US. Businessman Ray Kroc joined in 1955 and purchased the company, overseeing its worldwide growth. McDonald's emphasizes developing menus customers want through research. It introduces new products and removes old ones to meet changing tastes. McDonald's locations are spread widely for convenience and accessibility.

1. MCDONALD'S
SUBMITTED BY:-
GURU SAI RAM ATMURI

2. INTRODUCTION
◦ McDonald's is the world's largest chain of hamburger fast food restaurants, serving
around 68 million customers daily in 119 countries across 35,000 outlets.
◦ Founded in the United States in 1940, the company began as a barbecue restaurant
operated by Richard and Maurice McDonald. In 1948, they reorganized their business
as a hamburger stand using production line principles.
◦ Businessman Ray Kroc joined the company as a franchise agent in 1955. He
subsequently purchased the chain from the McDonald brothers and oversaw its
worldwide growth.

3. MARKETING MIX

4. PRODUCT
◦ McDonald’s places considerable emphasis on developing a menu which customers want.
Market research establishes exactly what this is. However, customers’ requirements change
over time. In order to meet these changes, McDonald’s has introduced new products and
phased out old ones, and will continue to do so. Care is taken not to adversely affect the sales
of one choice by introducing a new choice, which will cannibalise sales from the existing one
(trade off).

5. ◦ McDonald’s knows that items on its menu will
vary in popularity. Their ability to generate
profits will vary at different points in their
cycle. 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.

6. 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. A product is more than a
physical item, it also has psychological connotations for the customer. The danger of using low
price as a marketing tool is that the customer may feel that quality is being compromised. It is
important when deciding on price to be fully aware of the brand and its integrity.

7. ◦ 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 that cost Rs 50-60 and the BA products
include McAloo tikki and Chicken McGrill burgers which cost Rs20-30 This has been
done to satisfy consumers which different price perceptions.

8. PROMOTION
◦ The promotions aspect of the marketing mix covers all types of marketing communications One of
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. The skill in marketing communications is to develop a campaign which uses several of
these methods in a way that provides the most effective results. For example, TV advertising makes
people aware of a food item and press advertising provides more detail. This may be supported by in-
store promotions to get people to try the product and a collectable promotional device to encourage
them to keep on buying the item.

9. ◦ 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. Apart from this, various
schemes for winning prices by way
of lucky draws and also scratch
cards are given when an order is
placed on the various mean
combos.

10. PLACE
◦ Place, as an element of the marketing mix, is not just about the physical location or distribution
points for products. It encompasses the management of a range of processes involved in
bringing products to the end consumer. 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.
◦ 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 the right quantity. Nearly
50% of U.S.A is within a 3 minute drive from a McDonald's outlet.

11. ◦ There is a certain degree of fun and
happiness that a customer feels each time he
dines at McDonald's. There are certain value
propositions that McDonald's offer to its
customers based on their needs.
◦ McDonald's offers hygienic environment,
good ambience and great service. Now
McDonald's have also started giving internet
facility at their centers and they have been
playing music through radio instead of the
normal music.
◦ There are certain dedicated areas for
children where they can play while their
parents can have some quality time together.

12. PEOPLE
◦ The employees in Mc Donalds have a standard uniform and Mc Donalds specially focuses on friendly
and prompt service to its customers from their employees.
◦ McDonald's 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 continuously does
Internal Marketing. This is important as it must precede external marketing. This includes hiring,
training and motivating able employees. This way they serve customers well and the final result is a
happy customer.
◦ The level of importance has changed to be in the following order (the more important people are at
the top):
◦ 1. Customers
◦ 2. Front line employees
◦ 3. Middle level managers
◦ 4. Front line managers

13. PROCESS
◦ The food manufacturing process at Mc Donalds is completely transparent i.e. the whole process
is visible to the customers.
◦ In fact, the fast food joint allows its customers to view and judge the hygienic standards at Mc
Donalds by allowing them to enter the area where the process takes place. The customers are
invited to check the ingredients used in food.
◦ McDonald's worldwide is well known for the high degree of respect for the local customs and
culture.
◦ The customers are even invited to check the ingredients used in the food.

14. ◦ McDonald's has developed a menu especially
for India with vegetarian selections to suit
Indian tastes and preferences. Keeping in line
with this, McDonald's does not offer any beef
or pork items in India.
◦ In the last decade it has introduced some
vegetarian and non-vegetarian products with
local flavors that have appealed to the Indian
palate.
◦ There have been continuous efforts to
enhance variety in the menu by developing
more such products. It is completely
transparent and visible to the customers,
allowing them to judge hygiene standards
where the process takes place.
◦

15. PHYSICAL EVIDENCE
◦ McDonalds focuses on clean and hygienic interiors of is outlets and at the same time the
interiors are attractive and the fast food joint maintains a proper decorum at its joints.
◦ The physical appearance affects not only the impression outsiders have of a business but also
the way that business functions.

16. ◦ McDonald's focuses on clean and hygienic
interiors of its out lets at the same time they
are attractive. It maintains a proper decorum
at its joints. Staff members dress in
McDonald's Dress code with Green shirts,
Blue trousers, Black caps and Customized
Ronald McDonald's tie.
◦ Building maintenance and visible cues are
provided by the golden arches, the
trademarks and the logos in the premises.
The delivery scooters also add to the
physicality of the company.