McDonald's began in 1940 as a barbecue restaurant operated by Richard and Maurice McDonald in the United States. In 1948, they reorganized as a hamburger stand using production line principles. Ray Kroc later purchased the chain and oversaw its worldwide growth. With over 34,000 restaurants in 119 countries serving 68 million customers daily, McDonald's is the world's largest food service retailer. It entered India in 1996 through joint ventures and has adapted to local tastes by offering items like Aloo Tikki. McDonald's has been able to sustain its brand image in India by creating value for customers through its 5 Ps of marketing - Product, Price, Place, Promotion, and Packaging.

1. Mc Donald’s
Value Creation
Created By:
Pulkit Gupta(13DM142)

2. History
Headquartered in the United States, the company began in 1940 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. Some Facts
McDonald's is the world's leading food service retailer with more than
34,000 restaurants in 119 countries serving more than 68 million
customers each day and employing more than 1.7 million people.
In 1996, McDonald’s entered India through a joint venture with two local
Indian companies— Hardcastle Restaurants Private Limited in the west and
south region and Connaught Plaza Restaurants Private Limited in the north.
Franchise Model – Only 15% of the total number of restaurants are owned
by the Company.

4. Mission Statement
McDonald's brand mission is “to be our customers' favorite place and way
to eat and drink with inspired people who delight each customer with
unmatched quality, service, cleanliness and value every time.”
As per McDonald’s Senior Management:
“Our worldwide operations have been aligned around a global strategy called
the ‘Plan to Win’ centering on the 5 Ps for exceptional customer experience:
People, Products, Place, Price and Promotion.”
“We are a learning organization that aims to anticipate and respond to
changing customer, employee and system needs through constant evolution
and innovation.”

5. The great Indian challenge
As stated by Amit Jatia, vice chairman of McDonald’s India, West & South:
“When the company entered India, it was quick to note that its biggest
challenge would be to cater to the local tastes and preferences. In
addition, most customers initially perceived McDonald’s to be an expensive
restaurant that catered only to the youth. The challenge was to break that
perception and gain acceptance as a family restaurant.”
As stated by Vikram Bakshi , Managing Director ** , North & East:
“It really doesn’t make sense to sell beef in a country where 85% of the
population doesn’t eat or will even shun a restaurant where beef is
served”.
**Role disputed till any notice from London Court of International Arbitration

6. Excellence in 5 Ps
Today we can see that McDonald’s has changed all these consumer
perceptions by its unique value design, communication, delivery mechanism
and despite increasing competition they are able to sustain these values.
Company has established a firm brand image by creating value for
customer in five marketing dimensions:
1. Product
2. Price
3. Place
4. Promotion
5. Packaging

7. Product
McDonald’s changed its product line
altogether by adapting to Indian conditions. It
included some Indian favorites like Aloo and
Paneer items cooked with Indian spices.
Product Elimination: Removal of Beef
flavored products restricted to chicken, fish
and lamb.
Mc Aloo Tikki is the best selling product till
now. It became possible by producing and
selling the burger in Indian style.
Same product variety and taste across India.

8. Product
Recently the fast food giant has launched some new offerings:
Breakfast Meal Shake Shake Fries

9. Price
McDonalds Aloo Tikki created a sensation in price obsessed Indian fast food
market.
They launched it with a introductory price of Rs. 20 only. That was even cheaper
than some local snacks items like Vada Pav.
Today they are offering a number of economic meal options such as
Happy meal ,Value meal, Combo meal etc.
Price Comparisons
McDonalds KFC SUBWAY
McAloo Tikki Meal-Rs 79 Veg Zinger Meal-Rs 99 Veggie Delite-Rs 80
McVeggie Meal-Rs 119 Twister Meal-Rs 135 Veggie Patty-Rs 120
McChicken Mel-Rs 139 Chicken Zinger Meal-Rs 135 Chicken Tikka-Rs 135

10. Some Meal Options

11. Place
McDonald's opened its first Indian outlet in Vasant
Vihar, New Delhi in October 1996.
Today they are present in almost all Tier-1 and
Tier-2 cities, along the major highways.
Different kinds of outlets in India:
1. Big family size restaurants
2. Stores in high density markets
3. In shopping malls
4. At railway stations and bus stations
Different channels for distribution:
1. Franchise outlets
2. Company owned flagship outlets
3. Drive-thru and Home delivery.

12. Promotion
Through innovative advertising and sales
promotions they converted this youth and kids
oriented restaurant to a Family restaurant in India
Individual communication - Word of mouth, peer
group.
Free distribution of children toys with every
happy meal.
Event Catering : like new year, Christmas,
Birthday celebration, company meetings etc.

13. Promotion
Mass communication – Television advertisements and child amusement
activities at outlets, drives and campaigns.
Some of the most famous marketing campaigns of McDonald’s:
“You Deserve a break today, so get up and get away- To McDonald’s”
“Aap ke zamane mein ,baap ke zamane ke daam”.
“Food, Folks, and Fun”
“I’m loving it”.

14. Packaging
McDonald’s uses an internal
global scorecard tool called the
Eco-Filter to help make
packaging decisions while
keeping the environment in
mind.
Use of green and red dots to
indicate vegetarian and non
vegetarian food items.
Convenient packs to carry and
consume food/ beverages while
on the move.

15. Other 3 Ps for Service Industry
People: The employees in McDonald’s have a standard uniform and
McDonald’s specially focuses on friendly and prompt service to its
customers from their employees.
Process: The food manufacturing process at McDonald’s 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 McDonald’s by allowing them to enter the area where the process takes
place. The customers are invited to check the ingredients used in food.
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. In addition to it free Wi-Fi
Internet service at some selected outlets is also being offered.

16. Mc-
Donald’s
Quick
Service
Layout

17. Customer and Management Views
We visited the nearest McDonald’s outlet at Ansal Plaza and we got following
replies by Manager and Customer.
As per Floor Manager “Mr Rajeev Sharma” :
“Our core competencies include Quick Service, Economical Prices and cleanliness”
Combined response of some regular customers:
“McDonald’s is better than other fast food restaurants because of varieties in food
items, convenient locations, lower prices and faster service.
So this small in store survey shows that McDonald's is able to deliver the
value that most of the customers expect from it, which is the most important
parameter for any service industry firm.