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M cdonald
1. MINOR PROJECT REPORT
ON
MCDONALDS CORPORATION
SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT
OF BACHELOR OF BUSINESS ADMINISTRATION (BBA)
A Study on Marketing Mix Elements of
McDonalds Corporation
Submitted to: Submitted By:
Mr.Gaurav Shivam Chhabra
Batch: 2008-11
Roll No .0902151708
Chanderprabhu Jain College of Higher Studies & School of Law
Towards Excellence, Everyday
(Recognized by Govt. of NCT of Delhi and Affiliated to GGSIP University, Delhi)
Plot No. OCF, Sector-A- 8, Narela, Delhi-110040
Tel: 91-11-27284333/34. Fax: 91-11-27284335. Website: www.cpj.edu.in E-mail:
cpj.chs@cpj.edu.in
2. DECLARATION
This is to certify that Report entitled “…………………………………………”which
is submitted by me in partial fulfillment of the requirement for the award of degree
of Bachelor of Business Administration to G.G.S.I.P.University, Kashmere Gate,
Delhi, comprises only my original work and due acknowledgement has been
made in the text to all other material used.
Name & signature of Student
Enrolment no.
Name of the Guide
Date:
3. CERTIFICATE
This is to certify that Report entitled “………………………….” which is submitted
by ……………………………… in partial fulfillment of the requirement for the
award of degree of Bachelor of Business Administration to G.G.S.I.P.University,
Kashmere Gate, Delhi, is a record of the candidate own work carried out by him
under my supervision. The matter embodied in this thesis is original and has not
been submitted for the award of any other degree.
Date: Supervisor
4. ACKNOWLEDGEMENTACKNOWLEDGEMENT
With profound sense of gratitude and regard, I express my sincere thanks to my
guide and mentor for the valuable guidance and the confidence he instilled in me,
that helped me in the successful completion of this project report. Without his help,
this project would have been a distant affair. His thorough understanding of the
subject and the professional guidance is indeed of immense help to me.
I express my sincere gratitude to my Industry guide Mr. Rahul Gupta, Branch Manager of
Mc Donalds Corporation for their able guidance, continuous support and cooperation
throughout my project, without which the present work would not have been possible.
I would also like to thank the entire team of McDonalds, for the constant support and
help in the successful completion of my project.
Shivam Chhabra
Roll No. 0902151708
5. TABLE OF CONTENTS
S. No TOPIC Page. No
1. CHAPTER-1.0 INTRODUCTION
1.1 OVERVIEW OF INDUSTRY AS A WHOLE
1.2 PROFILE OF THE ORGANISATION
1.3 PROBLEMS OF THE ORGANISATION
1.4 COMPETITION INFORMATION
1.5 S.W.O.T ANALYSIS OF THE ORGANISATION
1
18
44
45
51
2. CHAPTER-2.0 OBJECTIVES AND METHODOLOGY
2.1 SIGNIFICANCE
2.2 MANAGERIAL USEFULNESS OF THE STUDY
2.3 OBJECTIVES
2.4 SCOPE OF STUDY
2.5 LIMITATIONS
2.6 METHODOLOGY
59
60
61
61
62
63
3. CHAPTER-3.0 CONCEPTUAL DISCUSSION 64
4. CHAPTER-4.0 DATA ANALYSIS 77
5. CHAPTER-5.0 FINDINGS AND RECOMMENDATIONS 92
ANNEXURE
8. Fast Food Industry
Introduction
The fast food industry is on a high as Indians continue to have a feast. Fuelled by what
can be termed as a perfect ingredient for any industry – large disposable incomes – the
food sector has been witnessing a marked change in consumption patterns, especially in
terms of food. An increasing number of international fast food chains rushing to India is
because all of them see tremendous potential in for this type of business. The large
upwardly mobile population in the urban areas tend to eat out more often or business or
for leisure.
The various players operating in India are the well established Indian chains like Nirula’s,
Haldiram’s and multinational companies like McDonalds, Pizza hut, Domino’s pizza, etc.
In addition to these, apparently some of the best known international food chains are
looking at India. Among them are Sbarro, The Burger King, KFC, Dunkin Donuts, Sub
-way, etc. are some of them to name. At present all these players are fighting for a small
pie, as fast food is really not a big habit with Indians, but they see a big potential.
The players are fighting on products, pricing, positioning and trying to convert their first
trials into regular purchase by providing delightful service quality. The focus is on
product quality and standardization on taste. Consistency is the key, as its standardization
in fast food as the consumer is short on time and wants to satisfy his taste buds with a
consistent taste experience.
Beyond this each player has its own strategy to expand consumer base.
- Some feel that pricing is not the deciding factor since fast food is not price sensitive
market because it is not a single diet of Indians.
- Some others are competing on positioning which is surprisingly varied, giving the small
size of the market.
- For most, targeting children seems the right strategy.
- Advertising is popular.
2
9. However, with competition hooting up most chains are increasing reach as well as
working on establishing a national presence.
There were disturbances in India when it was learned that McDonalds’s were pre-cooked
in beef fat in the USA, because Hindus revere cows and cannot eat beef.
Trends in the fast food industry
The industry is estimated to grow at 9-12 per cent, on the basis of an estimated GDP
growth rate of 6-8 per cent, during the Tenth Five year plan period. Value addition of
food is expected to increase from the current 8 per cent to 35 per cent by the end of 2025.
Fruit and vegetable processing, which is currently around 2 per cent of total production
will increase to 10 per cent by 2010 and to 25 per cent by 2025.
The popularity of food and agro products is not surprising when the sector is now
offering a growth of more than 150 per cent in sales. While US brands such as
McDonald’s, Pizza hut and Kentucky Fried Chicken have become household names,
more are on their way.
The Market Scenario
India among top 10 market for weekly fast food consumption, an online survey has
found. Most of the countries are from the Asia-pacific region, with the US being the
exemption.
According to an A C Neilson study of 28 markets across the US, Europe and the Asia-
Pacific, carried out through the internet in interviews with more than 14000 consumers,
Asians are the world’s greatest fast food fans.
Percentage of adult population eating at takeaway restaurants at least once every week:
Hong Kong 61 %
Malaysia 59 %
Philippines 54 %
Singapore 50 %
Thailand 44 %
3
10. China 41 %
India 37 %
Europe 11 %
Among the international fast food chains and local operators, McDonald’s emerges as the
most popular of all takeaway options with 54% of Americans, 75% of Europeans and
64% of Asians.
McDonald’s is most visited in Australia (84%)
KFC is most visited in China (42%)
Pizza hut is most visited in India (22%)
A typical fast food meal in the India & other Multinational companies consists of fries
and a burger (or other main item).
History
The concept of ready-cooked food for sale is closely connected with urban development.
In Ancient Rome cities had street stands that sold bread and wine. A fixture of East
Asian cities is the noodle shop. Flatbread and falafel are today ubiquitous in the Middle
East. Popular Indian fast food dishes include vada pav, panipuri and dahi vada.Some
trace the modern history of fast food in America to July 7, 1912 with the opening of a
fast food restaurant called the Automat in New York. The Automat was a cafeteria with
its prepared foods behind small glass windows and coin-operated slots. Joseph Horn and
Frank Hardart had already opened the first Horn & Hardart Automat in Philadelphia in
1902, but their “Automat” at Broadway and 13th Street, in New York City, created a
sensation. Numerous Automat restaurants were built around the country to deal with the
demand. Automats remained extremely popular throughout the 1920s and 1930s. The
company also popularized the notion of “take-out” food, with their slogan “Less work for
Mother”. The American company White Castle is generally credited with opening the
second fast-food outlet in Wichita, Kansas in 1921, selling hamburgers for five cents
from its inception and spawned numerous competitors.
4
11. It is arguable because most historians and Secondary School textbooks state that A&W
was the first fast food restaurant, which opened in 1919.After discovering that most of
their profits came from hamburgers, the brothers closed their restaurant for three months
and reopened it in 1948 as a walk-up stand offering a simple menu of hamburgers, french
fries, shakes, coffee, and Coca-Cola, served in disposable paper wrapping. As a result,
they were able to produce hamburgers and fries constantly, without waiting for customer
orders, and could serve them immediately; hamburgers cost 15 cents, about half the price
at a typical diner. Their streamlined production method, which they named the "Speedee
Service System" was influenced by the production line innovations of Henry Ford.
In the cities of Roman antiquity, much of the urban population living in insulae, multi-
storey apartment blocks, depended on food vendors for much of their meals. On New
Year's Day 2008 a study was conducted worldwide counting the number of fast food
restaurants per person. The UK has claimed this title with Australia second and the
United States third. England alone accounted for 25% of all fast food.
Jobs and Labor Issues
First the issue of labor costs. Employees are the backbone of the fast food industry.
Proper training is crucial to the orderly and quick service customers expect. Yet,
employee turnover can be as high as 200% per year. With such a turnover, owner-
operators of franchise and non-fanchise restaurants have the daunting task of constantly
training an entirely new workforce. Policies and procedues need to be explained to each
new employee. The second issue facing all employers and especially fast food restaurant
owner-operators is the steady increase in employment practices lawsuits. The restaurant
industry with its high emotional content is a frequent target of discrimination claims.
About 500 employment practices lawsuits are filed in the United State everyday. Many
employers believe that the greatest legal threat that companies face are employee
lawsuits.
5
12. The various players operating in Fast Food Industry in India & as well as outside India
are being discussed below. It includes Sbarro, Burger King, Dunkin Donuts, kfc, &
Subway which are competitors of Mc Donalds & also come under overview of Industry.
Sbarro
.
Type
Private (family-
owned)
Founded
Brooklyn, New York
(1967)
Headquarters Melville, New York
Number of
locations
1,064
Key people
Peter Beaudrault,
President and CEO
Anthony J. Puglisi,
VP and CFO,
Anthony Missano,
Stuart M. Steinberg,
John Brisco
Industry Fast Food
Products Pizza, Pasta
Revenue
$354.4 million
(2006)
Website www.sbarro.com
Sbarro is a chain of pizza restaurants that sells pizza and other Italian dishes. The chain
specializes in traditional Italian cuisine selling mostly "by the slice."
6
13. History
Sbarro was founded by Gennaro and Carmela Sbarro. In 1956, the Sbarro family opened
their first Salumeria (an Italian grocery store) in Brooklyn, which became popular for its
fresh food and genuine Italian fare. Their Sbarro Italian Delicatessen in Brooklyn, N.Y.
was well received by the local community and was the first of a successful chain. The
success of the Sbarro Salumeria led to the opening of more locations throughout the New
York City area. In 1970, Sbarro opened its first mall-based restaurant in Brooklyn's Kings
Plaza Shopping Center, marking the beginning of the modern Sbarro concept: Italian
food in an open kitchen that allowed for fast self-service.
Brands
• Sbarro – 1,064 locations worldwide.
Sbarro restaurants are located in shopping malls, airports, service areas, cinemas &
college campuses. Sbarro has 1,064 located Fast food restaurant.
Some trace the modern history of fast food in America to July 7, 1912 with the opening
of a fast food restaurant called the Automat in New York. The Automat was a cafeteria
with its prepared foods behind small glass windows and coin-operated slots. Automats
remained extremely popular throughout the 1920s and 1930s. The company also
popularized the notion of “take-out” food, with their slogan “Less work for Mother.As a
result, they were able to produce hamburgers and fries constantly, without waiting for
customer orders, and could serve them immediately; hamburgers cost 15 cents, about half
the price at a typical diner. Nearly from its inception, fast food has been designed to be
eaten "on the go" and often does not require traditional cutlery and is eaten as a finger
food.
Major international brands
7
14. McDonald's, a noted fast food supplier, opened its first franchised restaurant in the US in
1955 (1974 in the UK). Other prominent international fast food companies include
Burger King, Subway, Kfc, Dunkin Donuts, etc.
Major North American brands
Dunkin' Donuts, a New England based chain that emphasized and refined the commissary
model of food preparation; KFC, a part of the largest restaurant chain in the world, and
Domino's Pizza, a pizza chain known for popularizing home delivery of fast food.
Subway restaurants are known for their sub sandwiches and Subway is the largest
restaurant chain to serve such food items. The Subway restaurant chain is the fastest
growing restaurant chain in the world surpassing even McDonald's.
Burger King
8
16. Type Public (NYSE: BKC)
Founded
December 4, 1954 in
Miami, Florida, USA
Founder(s)
James Mc Lamore and
David Edgerton
Headquarters
5505 Blue Lagoon Drive,
Miami-Dade Co, Florida
(near Miami)
Key people
Brian Thomas Swette
(Chairman)
John Chidsey (CEO)
Ben K. Wells (CFO)
Industry Fast food
Products
Fast Food
(hamburgers • chicken •
french fries • soft drinks •
milkshakes • salads •
desserts • breakfast)
Revenue
$2.234 billion USD (2007)
▲ 9.4% over 2006
Operating
income
$290.00 million USD
(2007)
▲ 70% over 2006[1]
Net income
$148 million USD (2007)
▲ 548.1% over 2006[1]
Employees 41,000 (2008)
Parent Burger King Holdings Inc.
10
17. Website
burgerking.com
At the end of its fiscal year 2008, Burger King reported that there are more than 11,550
outlets in 71 countries; 66% are in the United States and 90% are privately owned and
operated. The company has more than 37,000 employees serving approximately 11.4
million customers daily.
Corporate Profile
History
The predecessor to what is now called Burger King was founded in 1953 in Jacksonville,
Florida as Insta-Burger King. The original founders and owners, Kieth J. Kramer and his
wife's uncle Matthew Burns, opened their first stores around a piece of equipment known
as the Insta-Broiler..The rights to open stores in Miami, Florida belonged to two
businessmen named James McLamore and David R. Edgerton, both alumni of the Cornell
University School of Hotel Administration. McLamore visited the original McDonald's
hamburger stand belonging to Dick and Mac McDonald in San Bernardino, California;
sensing potential in their innovative assembly line-based production system, he decided
to open a similar operation of his own. Their first Insta-Burger King's opened on
December 4, 1954 in a suburb of Miami, Florida, and by 1959.
The company eventually became known as Burger King Corporation and began selling
territorial franchise licenses to private owners across the US by 1961.
International expansion
Over the ten year period starting in 2008, Burger King sees 80% of its market share to be
driven by foreign expansion, particularly in the Asia-Pacific and Indian subcontinent
11
18. regional markets. The company plans to add over 250 stores in these Asian territories, as
well as other countries such as Macau, by the end of 2012.
Its expansion into the Indian market has the company at a competitive disadvantage with
other fast food restaurants such as KFC because the country's large Hindu majority's
aversion to beef. At the end of its fiscal 2008 year, Burger King is the second largest
chain of hamburger fast food restaurants in the world behind industry bellwether
McDonald's (31,000 locations) and the fourth largest fast food restaurant chain overall
after Yum! Brands (34,000 locations), McDonald's and Subway (28,400 locations).
Industry innovations
• In the early 1970s, Burger King was the first fast-food restaurant to offer an enclosed
and air-conditioned seating area.
KFC
KFC Corporation
12
19. Type
Private (subsidiary of
Yum! Brands)
Founded
1929 (original) (North
Corbin, Kentucky)
1952 (franchise)
(South Salt Lake,
Utah)
Founder(s) Harland Sanders
Headquarters Louisville, Kentucky
Key people
Roger Eaton
President
Harvey R. Brownlea
COO
James O'Reilly VP for
Marketing
Industry Fast food
Products
Fried Chicken,
Grilled chicken,
related Southern foods
Revenue
$520.3 million USD
(2007)
Employees 24,000 (2007)
Parent Yum! Brands
Website http://www.kfc.com
KFC Corporation, or KFC, founded and also known as Kentucky Fried Chicken, is a
chain of fast food restaurants based in Louisville, Kentucky.
History
The restaurant in North Corbin, Kentucky where Colonel Sanders developed Kentucky
Fried Chicken World's first KFC in South Salt Lake, Utah, since replaced by a new
13
20. KFC on the same site. The company owned many Northern Ohio diner-style restaurants,
the last of which closed in 2004. Sanders sold the entire KFC franchising operation in
1964 for $2 million USD . Since that time, the chain has been sold three more times, most
recently to PepsiCo, which made it part of its Tricon Global Restaurants division,
which in turn was spun off in 1997, and has now been renamed to Yum! Brands.
Additionally, Colonel Sanders' nephew, Lee Cummings, took his own Kentucky Fried
Chicken franchises (and a chicken recipe of his own) and converted them to his own
"spin-off" restaurant chain.Today, some of the older KFC restaurants have become
famous in their own right. It is often used as a travel reference point in the Atlanta area
by locals and pilots. In India, KFC has not established itself in any large way as opposed
to another Yum! brand-name restaurant, Pizza Hut, which is prevalent in most Indian
cities. It has outlets in Chandigarh, Pune, New Delhi,Lucknow, Mumbai, Hyderabad,
Bangalore, Kolkata and Chennai. The success of the Mumbai restaurant led KFC to
introduce the hot and spicy chicken flavor which is more acceptable to the Indian palate.
More recently, KFC has opened outlets in Vashi, Navi Mumbai.
DUNKIN DONUTS
Dunkin' Donuts
Type Wholly owned subsidiary
Founded 1951
Founder(s) William Rosenberg
Headquarters
Dunkin' Brands
130 Royall Street
Canton, Massachusetts, U.S.
Phone: 781-737-3000
Key people Jon L. Luther, (CEO)
14
21. Will Kussell (COO)
Kate LaVelle, (CFO)
Industry Fast food
Products
Doughnuts • Coffee • Bagels •
Muffins • Breakfast sandwiches
Revenue ▲$4.4 billion USD (August 2006)
Owner(s)
Carlyle Group, Bain Capital, and
Thomas H. Lee Partners
Parent Dunkin' Brands
Website DunkinDonuts.com
Dunkin' Donuts is an international donut and coffee retailer founded in 1951 in Quincy,
Massachusetts by William Rosenberg. It is now headquartered in Canton, Massachusetts.
Corporate Profile
History
A Dunkin' Donuts/Baskin-Robbins co-brand in New Castle, Pennsylvania. One of two
Dunkin' Donuts locations in New Castle, this store is a former Mister Donut converted to
Dunkin' in 1994 and completely rebuilt in 2003 with the addition of Baskin-Robbins and
a drive-thru.Dunkin' Donuts claims to be the "world's largest coffee and baked goods
chain", serving 2.7 million customers per day at approximately 8,000 stores in 30
countries which includes approximately 6,400 Dunkin' Donuts locations throughout the
USA. This figure compares with the 15,011 stores of coffee chain Starbucks, whose
baked goods are usually prepared out of shop. Most Dunkin' Donuts stores are franchises.
Dunkin' Donuts, along with Baskin-Robbins, is owned by Dunkin' Brands Inc. Dunkin'
Brands used to own the Togo's chain, but sold this in late 2007 to a private equity firm.
Dunkin' Brands was owned by French beverage company, Pernod Ricard S.A. after it
purchased Allied Domecq. They reached an agreement in December 2005 to sell the
brand to a consortium of three private equity firms, Bain Capital Partners, the Carlyle
Group and Thomas H. Lee Partners.Most of their business competition comes from small
locally owned stores, Krispy Kreme doughnuts and Starbucks; in Canada and parts of the
Great Lakes region, Tim Hortons is a major competitor.
15
22. Expanding its operations
The move is the first of its plans to expand its operations into lodging facilities, airports
and sports arenas. In June 2009, Dunkin' Donuts announced the opening of at least 12
Dunkin' Donuts restaurants in the Dayton, Ohio region. All twelve of the stores are set to
be opened by 2011.
Subway
Subway
Type Private
Founded
Bridgeport,
Connecticut, USA
(1965)
Founder(s)
Fred De Luca and Peter
Buck
Headquarters
Milford, Connecticut,
USA
Key people
Fred De Luca
(President)
Millie Shinn (EVP)
David Worroll
(Controller)
David Cameron (Chief
Marketing Officer)
16
23. Industry Fast Food
Products
Sandwiches
Salads
Pizza
Other food products
Revenue
▲ $9.05 billion USD
(2006)
Website Subway.com
Subway is a fast food franchise that primarily sells submarine sandwiches, salads and
single dish pizzas. It is owned and operated by Doctor's Associates, Inc. (DAI). Subway
is one of the fastest growing franchises in the world with approximately 31,129
restaurants in 90 countries as of May 2009. It is the second largest restaurant operator
globally after Yum! Brands (35,000 locations). In 1999, an Indiana University student
named Jared Fogle lost 245 pounds (110 kg) with a diet made up mostly of Subway
sandwiches combined with exercise.
History
Subway's logo used from 1974 to March 3, 2002. Still in use on many older location
Fred De Luca borrowed $1,000 from family friend Peter Buck to start his first sandwich
shop in 1965, when he was only 17 years old. He was trying to raise money to pay for
college. He chose a mediocre location for his shop, but by noon on the first day of the
opening, customers were pouring in. As of December 30, 2008, the company has 19,310
franchised locations in 87 countries and produces US$9.05 billion sales every year. In
2007For instance, there are over 900 Subway locations inside of Wal-Mart stores and 200
on military bases, including several in Iraq, in addition to three located inside The
Pentagon - as well as an increasing number on college and university campuses.Subway
restaurants have been consistently ranked in Entrepreneur Magazine's Top 500
Franchises, and was selected as the #2 overall franchise in 2008. Additionally, it was
ranked as the #3 "Fastest Growing Franchise", and the #1 "Global Franchise" as well.
Local franchisees operate the stores, and in most markets Subway enters into a contract
17
24. with a franchisee to be its Development Agent for that market. DAI takes an 8% royalty
on all net sales from each store. Global locations:Subway is present in 87 countries and
territories.
Company Profile
McDonalds India
McDonald’s in India is a 50-50 joint venture partnership between McDonald’s
Corporation [USA] and two Indian businessmen. Amit Jatia’s company Hardcastle
Restaurants Pvt. Ltd. owns and operates McDonald's restaurants in Western India. While
Connaught Plaza Restaurants Pvt. Ltd headed by Vikram Bakshi owns and operates the
Northern operations.
Amit Jatia and Vikram Bakshi are like-minded visionaries who share McDonald's
complete commitment to Quality, Service, Cleanliness and Value (QSC&V). Having
signed their joint-venture agreements with McDonald's in April 1995, they trained
extensively, along with their Indian management team, in McDonald's restaurants in
Indonesia and the U.S.A. before opening the first McDonald’s restaurant in India.
Mc Donald’s international through its wholly owned subsidiary mc Donald’s India
entered into two JVs, one with connaught plaza restaurants pvt. Ltd. In the northern &
eastern region and another with hard castle restaurants pvt. Ltd. In the western &
southern region.
As a leader in QSRV (Quick Service Restaurant Value) segment McDonalds has
pioneered various industry benchmark practices over the past decade of serving Indian
customers, including new concepts such as:
# Oil alliances in India by linking with petroleum giants BPCL and HPCL. Three such
alliances with BPCL outlets are in Mathura (2000), (up).
18
25. #Doraha (2002) (Punjab) and Chanakyapuri (new delhi-2005)
# Novel menu formats such as an Express model with a limited menu and kiosks with a
variety of desert offerings.
# Home delivery (Mcdelivery™ -2004); providing even more convenience to our
customers.
# In 2006, Mcdelivery on bicycle at chandni chowk and
#2007 all India single delivery number were introduced.
# First drive thru restaurant in India at Noida (up) in1997.
Restaurant count
McDonald’s has 122 restaurants in India of which 72 are in north & east India and 50 in
west & south India .
Key Facts ~ McDonald’s
Type Public (NYSE: MCD)
Founded May 15, 1940 in San Bernardino, California
Founder Dick and Mac McDonald
Headquarters Oak Brook, Illinois, USA
No. of locations 31,000+ worldwide
Key people
Ray Kroc, corporate founder
Jim Skinner, CEO
Ralph Alvarez, president and COO
Industry Restaurants
Products
Fast Food (including hamburgers, chicken products, french
fries, milkshakes, salads, desserts, breakfast items, and
children's meal ensembles)
Revenue $20.460 Billion USD (2008)
Net income $2.602 Billion USD (2008)
Employees 447,000 (2008)
19
26. Slogan i'm lovin' it
McDonald's vision
McDonald's vision is to be the world's best quick service restaurant experience. Being the
best means providing outstanding quality, service, cleanliness, and value, so that we
make every customer in every restaurant smile.
McDonald's Mission Statement
• Be the best employer for our people in each community around the world
• Deliver operational excellence to our customers in each of our restaurants; and
• Achieve enduring profitable growth by expanding the brand and leveraging the
strengths of the McDonald's system through innovation and technology.
History
McDonald’s journey so far……..
Key Landmarks - McDonald's India Journey
1996 First McDonald’s restaurant opened on 13 Oct, at Vasant Lok, Vasant Vihar
New Delhi. It was also first McDonalds restaurant in the world not serving beef on
its menu.
1996 First drive – thru restaurant at Noida , U.P.
First disabled friendly store at Noida , U.P.
First mall location restaurant at Ansal plaza, New Delhi
1999 First highway restaurant at Mathura ,up
2000 First thematic restaurant at connaught place, new Delhi
2001 First restaurant in a food court at 3C’s Lajpat Nagar , New Delhi
First restaurant at Delhi metro station at inter state bus terminal
First annual fundraiser in association with ORBIS and Dr. Shroff’s charity eye
hospital Delhi.
20
27. 2002 First Desert kiosk Faridabad, Haryana.
2003 Indigenous products like mcaloo tikki, mcveggie and pizza mcpuff exported to
Middle East countries.
2004 Mc Donalds delivery service, mcdelivery introduced in New Delhi
2006 Mc Delivery on bicycles flagged off at Chandni Chowk (Delhi) another first
initiative by McDonalds India.
2007 First restaurant opened in the eastern region at Park Street, Kolkata (west
Bengal.)
2008 First Restaurant opened in Faridabad.
2009 Mc Delivery introduced in Chandni Chowk.
FUTURE ASPECTS OF Mc Donalds
McDonalds Future Includes Hipper Stores, New Menu Items:
New chicken sandwiches. Double-lane drivethrus. And an adjoining McCafe with
gourmet coffees, fancy pastries and a fireplace. McDonald's, or 30,000-plus worldwide;
the Oak Brook restaurant, which opened late last month, doubles as public restaurant and
test site. The company reported first-quarter operating income was up 6 percent to $910
million and revenue rose 9 percent to $4.8 billion over the same time last year. Its stock
price nearly tripled over a two-year period, hitting a four-year high of $34.56 per share in
March, but has since settled around $29. About 1,000, mostly older U.S. McDonald's
have been either renovated or rebuilt since 2002. Some of the additions, such as salads,
white-meat chicken nuggets and fruit options with Happy Meals, have served the dual
purpose of enabling the company to state a commitment to a healthier, balanced menu
while bringing in new customers who aren't there for the hamburgers. McDonald's plans
to introduce more premium coffees later this year, but at its traditional restaurants.
21
28. Mc Donalds to open 180- 190 Restaurants in India
Fast-food chain McDonald's India today said it plans to open 180-190 company-owned
restaurants by 2015 with an estimated investment of up to Rs 570 crore. We have 157
restaurants now, including between 30 to 40 this year," McDonald's India Managing
Director Amit Jatia said it generally takes around Rs 3-crore investment to open a
restaurant. It caters to 30 cities. The company expects sales to grow by 35 per cent this
year. It had recorded around the same level of growth in 2008, as well. McDonald's India,
employs over 5,000 people now and as proposed new restaurants are opened up, the total
headcount will go past the 12,000-mark. "We generally employ 40 people in a
restaurant," Jatia said. Delhi and Mumbai are the two biggest markets for the company in
terms of sales, while cities like Hyderabad and Bangalore are also fast catching
up. McDonald's India plans to open 7 new restaurants in Bangalore this year. McDonald's
India caters to 3-4 lakh customers in a day across the country.
GDP Growth
National Average GDP Annual Growth
1962- 1992 : 3.5%
1992- 2002 : 6.0%
2002- 2020 : (Projected) 7.0%
Highest Average Annual GDP Growth
States with Coastal Access or high Urbanisation – 6- 8%
Lowest Average Annual GDP Growth : 2%
According to a study by National Applied Economic Research (2004), the number of
households with an annual income over Indian Rupees (Rs.) 1 crore (US $228,351) has
grown by 26% since 1995-96 to 20,000 in 2001-02. By 2009-10, it will increase more
than seven times to 1,40,000 households. Rs. 50 lakh (US $114,180) to Rs. 1 crore (US
22
29. Vegetarian menu
Vegetarian ingredients
Vegetables- We use freshly shredded lettuce, onions and tomatoes in our restaurants. All
our vegetable products are processed from high quality graded vegetables in a 100%
dedicated vegetarian plant.
Potatoes - McDonald's world-famous French Fries and our 'chatpatey' Potato Wedges are
produced only from the best quality potatoes. These potatoes are cut, blanched and
processed on state-of-the-art processing lines to ensure maximum retention of nutrients.
23
30. Our French Fries and Potato Wedges are cooked at the plant and our restaurants in 100%
vegetable cooking oil.
Mc Veggie
Breaded fried vegetable patty consist
of peas, carrots, green, beans, red
capsicum, potatoes, onions, rice and
seasoning. The burger also includes
lettuce, eggless mayonnaise in a
toasted sesame seed bun.
Nutrition at glance
Serving
size
in gms
Protein
in gms /
serve
Carb.
in gms /
serve
Fat
in
gms /
serve
172 8 60 25
Calories
in kCal /
serve
Protein% Carb%
Fat
%
491 4 35 14
McAloo Tikki™
Fried breaded potato & peas patty that is
flavoured with a special spice mix, fresh
tomato slices, onion, and veg. tomato
mayonnaise between toasted buns.
Nutrition at glance
Serving
size
in gms
Protein
in gms /
serve
Carb.
in gms /
serve
Fat
in gms
/ serve
150 6 53 15
Calories
in kCal /
Protein% Carb% Fat %
24
31. serve
367 4 35 10
Paneer Salsa Wrap™
A traditional Mexican soft flat bread that
envelops crispy golden brown cottage
cheese encrusted with a Mexican Cajun
coating, and a salad mix of iceberg
lettuce, carrot, red cabbage and celery,
served with eggless mayonnaise, tangy
Mexican Salsa sauce and cheddar cheese.
Nutrition at glance
Serving
size
in gms
Protein
in gms /
serve
Carb.
in gms /
serve
Fat
in gms
/ serve
194 16 39 27
Calories
in kCal /
serve
Protein% Carb% Fat %
463 8 20 14
25
32. Crispy Chinese
A crispy patty that is seasoned with
oriental flavours, topped with a creamy
vegetarian Schezwan sauce and crunchy
iceberg lettuce and served between two
fresh buns.
26
33. Nutrition at glance
Serving
size
in gms
Protein
in gms /
serve
Carb.
in
gms /
serve
Fat
in
gms /
serve
144 7 50 19
Calories
in kCal /
serve
Protein% Carb% Fat %
400 5 34 13
Veg McCurry Pan [Brocolli ‘n’
Mushroom]
A rich Béchamel eggless sauce mixed
with exotic vegetables like broccoli, baby
corn, mushrooms, red capsicum and
freshly baked on rectangular spiced bread
with a cheese topping.
Nutrition at glance
Serving
size
in gms
Protein
in gms /
serve
Carb.
in gms /
serve
Fat
in gms
/ serve
190 18 48 11
Calories
in kCal /
serve
Protein% Carb% Fat %
365 10 25 6
27
34. Pizza McPuff™
Mixed vegetables (carrot, beans,
capsicum, onion and green peas),
mozzarella cheese mixed with tomato
sauce and spice blend coated with a
savoury dough.
Nutrition at glance
Serving
size
in gms
Protein
in gms /
serve
Carb.
in gms /
serve
Fat
in gms
/ serve
80 4 26 14
Calories
in kCal /
serve
Protein% Carb% Fat %
245 5 33 17
Non-Vegetarian menu
28
35. Non-Vegetarian ingredients
Chicken
The chicken patties are made from high quality boned breast and leg meat and are
covered in a specially seasoned, lightly battered coating. They are shaped in uniform
sizes to ensure consistency in weight and value.
Fish
29
36. The fish patties in McDonald's Filet -O-Fish are 100% pure whole white fillets that are
lightly breaded. The fish comes from a variety caught around the south-west coast of
India.
Chicken
Maharaja Mac™
2 Grilled chicken patties with a smoke-flavoured
mayonnaise, fresh onions, tomatoes, processed
cheddar cheese in a toasted sesame seeded bun.
30
37. Serving
size
in gms
Protein
in gms /
serve
Carb.
in gms /
serve
Fat
in gms /
serve
255 32 54 26
Calories
in kCal /
serve
Protein% Carb% Fat %
573 12 21 10
31
38. Filet-O-Fish
Fried, breaded fillet of fish, with a half slice of
processed cheddar cheese, special tartar sauce
served between steamed buns.
32
39. Serving
size
in gms
Protein
in gms /
serve
Carb.
in gms /
serve
Fat
in gms /
serve
145 13 49 23
Calories
in kCal /
serve
Protein% Carb% Fat %
462 11 19 9
33
40. Chicken Mexican Wrap™
A traditional Mexican soft flat bread that
envelops crispy golden brown chicken
encrusted with a Mexican Cajun coating,
and a salad mix of iceberg lettuce, carrot,
red cabbage and celery, served with
eggless mayonnaise, tangy Mexican
Salsa sauce and cheddar cheese.
Nutrition at glance
Serving
size
in gms
Protein
in gms /
serve
Carb.
in gms /
serve
Fat
in gms
/ serve
192 14 37 21
Calories
in kCal /
serve
Protein% Carb% Fat %
392 7 19 11
Chicken McGrill™
Grilled chicken patty flavoured with mint
mayonnaise, and dressed with fresh
onions and tomatoes in a toasted bun.
34
41. Nutrition at glance
Serving
size
in gms
Protein
in gms /
serve
Carb.
in gms /
serve
Fat
in gms
/ serve
140 16 35 12
Calories
in kCal /
serve
Protein% Carb% Fat %
309 11 25 8
Beverages
Cappucino, Café Mocha, Plain Tea,
Cardamom Tea, Hot Chocolate
Nutrition at glance
Type
(Quantity)
Serving
size
in gms
Protein
in
gms /
serve
Calories
in
kCal /
serve
Protein%
Carb.
in
gms /
serve
Fat
in
gms
/
serve
Carb%
Fat
%
Cappuccino 150 4 4 2 50 3 3 1
Café
Mocha
150 4 4 2 47 3 3 1
Plain Tea 150 2 8 1 46 1 5 0
Cardamom
Tea
150 2 8 1 47 1 5 0
Hot
Chocolate
150 4 17 1 90 3 11 0
35
45. Here are 3 golden rules that will help you to choose the right kind of food:
- Balance - have the right mix of nutrients in your daily diet. Don’t compromise one for
the other.
-Moderation – eat neither too much nor too little of any one nutrient.
-Variety – include a range of food types in your meals.
39
46. Achievements
McDonald's India - A decade of quality service
For its unparalleled benchmarks established in the QSRV sector McDonald’s India has
been bestowed with many prestigious awards. To name a few:
# Most respected company for four consecutive years, 2004-2008 in the food services
sector by business world.
# Most wanted brand of the year award 2003 & 2004 by franchising holdings India ltd.
# Retailer of the year’s award for catering services 2004-2006 at the images retail awards.
# The most preferred fast food outlet’ 2006 & 2007 by awaaz consumer award hosted by
CNBC.
# Star retailer – the consumer way, food services retailer’ of the year 2006 by franchise
India.
# Amity corporate excellence award’ in 2007.
#Quality Preservance Award in 2008
# Best Servicing Award in 2009.
McDonald’s Global Sales Rise (Sales Performance)
U.S. and European sales drive strong performance McDonald's Corp. (Oak Brook, Ill.)
reports its global comparable sales rose 2.2 percent in August. By segment, same-store
sales grew 1.7 percent in the U.S. and 3.5 percent in Europe, while sales in the
Asia/Pacific, Middle East and Africa market dropped 0.5 percent.
40
47. McDonald's Corporation (MCD) :
ORGANISATIONAL STRUCTURE:
There are basically two structures! One is the senior management side, the other is the
restaurant side.
At Restaurant Level: -
General Manager
↓
Restaurant Manager
↓
1st Assistant Manager
↓
2nd Assistant Manager
↓
Shift Running Manager
↓
Floor Manager
↓
Staff Training Crew
↓
Crew Members.
41
48. McDONALD'S SENIOR MANAGEMENT
PAUL PRESTON
Chief Executive Officer
+--------------+--------------- -+--------------+------------------+
| | | | |
Andrew Marcus Terence Ed Philip
Taylor Hewson Haynes Oakley Cobden
| | | | |
Operations Marketing Finance Purchasing Property
Field Services Franchising Information Quality Construction/
Training/Ops- Charities Services Assurance Design
Development Security Communications Facilities
Human Resources Local Govt.
McDonald’s India….. Culturally sensitive
McDonald's in India is a locally owned and managed company run by Indians, employing
local staff, procures from local suppliers to serve its customers. McDonald's India opened
its first family restaurant at Basant Lok in Oct, 1996; today it has 122 Restaurants across
India. This vibrant decade has seen McDonald's evolve Indian menus, Indian sensitivities
and yet remain as globally innovative as ever. This journey has seen McDonald's develop
a rich brand identity amongst its customers and employees as well as partners alike.
At McDonald’s India we have had a single mantra: providing 100% total customer
satisfaction and the formula for achieving this goal in our restaurant operation is the long-
standing commitment to the McDonald’s Promise. McDonald’s worldwide is well known
for the high degree of respect for the local customs and culture. McDonald’s has
developed a menu especially for India with vegetarian selections to suit Indian tastes and
preferences. Keeping in line with this, McDonalds does not offer any beef or pork items
in India.
42
49. 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.
McDonald’s has also re-engineered its operations repeatedly in its 11 years in India to
address the special requirements of a vegetarian menu. Vegetable products are 100%
vegetarian, i.e.
- they are prepared separately, using dedicated equipment and utensils
- Only pure vegetarian oil is used as a cooking medium.
- Cheese and sauces are completely vegetarian and egg less.
- Separation of vegetarian and non-vegetarian food products is maintained throughout the
various stages of procurement, cooking and serving.
- McDonald's India has developed a special menu with vegetarian selections to suit
Indian tastes and preferences. McDonald's does not offer any beef or pork items in India.
Only the freshest chicken, fish and vegetable products find their way into our Indian
restaurants.In addition, we've re-formulated some of our products using spices favoured
by Indians. Among these are McVeggie™ burger, McAloo Tikki™ burger, Veg. Pizza
McPuff™ and Chicken McGrill™ burger. We've also created eggless sandwich sauces
for our vegetarian customers. Even our soft serves and McShakes™ are egg-less, offering
a larger variety to our vegetarian consumers.
International Standards
McDonald's India's local suppliers provide us with the highest quality, freshest
ingredients. Complete adherence to the Indian Government regulations on food, health
and hygiene is ensured, while maintaining our own recognized international standards.
Fast, friendly service - the hallmark of McDonald's restaurants the world over is the
mantra we abide by stringent cleaning standards ensure that all tables, chairs, highchairs
and trays are sanitised several times each hour. Such meticulous attention to cleanliness
extends beyond the lobby and kitchen to even the pavement and immediate areas outside
the restaurant.
43
50. The principles that guide us …
• Quality, Service, Cleanliness & Value - It is an unflinching McDonald's ideology
that our customers must always get quality products, served quickly and with a
smile, in a clean and pleasant environment; and all at a fair price.
• We are committed to exceeding our customers' expectations in every restaurant
every time.
• We have a passion and a responsibility for enhancing and protecting the
McDonald's brand.
• We believe in a collaborative management approach, employing a mutually
respectful business philosophy.
• We will seize every opportunity to innovate and lead the industry on behalf of our
customers.
The McDonald's Promise
McDonald’s Global Scenario
# McDonald’s has over 30,000 local restaurants in more than 120 countries 70 percent
of our restaurants worldwide are owned and operated by independent, local businessmen
and businesswomen
# McDonald’s serves nearly 50 million customers each day
# McDonald’s first franchised restaurant opened at Des Plaines, Illinois in 1955 by the
founder Ray Kroc
44
51. # McDonald’s has its own Hamburger University in Illinois, and the first batch
graduated in 1961
# 12 classes offered at Hamburger University are college accredited
# In 1963, McDonald’s sold its one billionth hamburger
# McDonald’s is listed on the New York, Frankfurt, Munich, Paris and Tokyo stock
exchanges
# McDonald’s aired its first network TV advertisement “McDonald’s - Where Quality
Starts Fresh Everyday”, in 1965
# The first McDonald’s Drive-Thru opened in Sierra Vista, Arizona in 1975
# McDonald’s launched the new worldwide Balanced Active Lifestyles public awareness
campaign in 2005
# McDonald’s celebrated its 50th Anniversary on April 15, 2005
What threats did McDonalds face?
'A Threat' to McDonalds, the biggest fast-food chain in the world, is a leaflet which links
the company's meals to heart disease and cancer and accuses it of despoiling the
environment and exploiting the Third World. Bird flu no threat to McDonald's chicken:
Advertisement strategy In a bid to save its plummeting sales of chicken products in
mcdonalds, they have planned an exclusive advertisement campaign. This strategy is a
risk and pressure tactic which would ensure that is a epidemic and bird flu scare spread
they can influence the customers.
45
52. HOW DID Mc DONALDS HANDLE THEM?
By delivering¬Mcdonalds handle these threats by these possible steps. ¬ By decreasing
health problem. ¬superior value to customers then competitors. Mcdonald should
distribute free sample in¬increase advertisement in Europe. Mcdonald have to provide
the job that person¬different offices and colleges. Mcdonald should make¬which can
attract more customers through his stratigies. Mcdonald can¬planning to avoid from
bird flu and other diseases in future. Mcdonald should provide traditional dishes .
WHAT ALTERNATIVE COULD¬ IT HAVE CHOSEN?
Mcdonald can use following alternative to increase his value:
» Mcdonald should stop his product where it's not doing well and take corrective action
and check his quality.
» Mcdonald should open new restaurant in that area where fast food has important part in
the culture of that area.
» Mcdonald has to choose that management which can easily understand the demand of
all customer.
» Mcdonald should decrease its prices in that country where per capita is very low.
» Mcdonalds should make his manuals which include traditional dishes of that area.
» Mcdonald should it think at the level of middle customer rather then the high level
customer.
» Mcdonald should provide bonus to his employees for better performance. "The world
has changed. Our customers have changed.
46
53. Problems Borne by McDonalds
Trans fats cause problems for McDonalds...
Trans fats are formed when liquid vegetable oils go through a chemical process called
hydrogenation. Common in a range of food products — biscuits, chips, doughnuts,
crackers — the hydrogenated vegetable fat is used by food processors because it is solid
at room temperature and has a longer shelf life.In September 2002, McDonald's issued a
statement announcing a significant reduction of trans fats in its fried menu items —
french fries, chicken McNuggets, Filet-O-Fish, Hash Browns and crispy chicken
sandwiches with the introduction of improved cooking oil in all of its 13,000 restaurants.
The change was supposed to be completed by February 2003. However, McDonald’s
encountered operational issues and the oil was not changed. An anti-trans fat group
claims that McDonald's deliberately allowed the public to be misled. Legal action has
forced McDonald’s to give effective notice to the public that the oil was not changed. In
Europe and the US, food makers are under growing pressure from consumer groups to
cut the trans fat content in food products.
47
54. COMPETITORS INFORMATION:
Major players in this field:-
1. Nirula’s
2. Pizza Hut
3. Dominoz Pizza
4. Haldiram’s
These day working executives are busy a lot they don’t have the spare time to cook food
due to there high this possible income and ever increasing arperalional levels they prefer
to it out at this fast food outlets (McDonalds, Nirula’s, Pizza Hut) where they find the
match according to there asperitional level.
1. Nirula’s
Established in 1934, Nirula’s today is a diversified group having a chain of elegant
Business hotels, Waiter service restaurants, Family style restaurants, Ice Cream parlours,
pastry shops and food processing plants in India.The chain with over 60 outlets operating
in 5 states successfully caters to the Indian palate of over 50000 guests every day or over
70 years.
The restaurants serves a wide variety of multi-cuisine foods, both western and Indian
including pizzas, burgers, chana kulcha, saag-roti and much more!
Ice cream parlours offers an extensive range of exciting and innovative ice cream flavors
with one new flavor added every month.Nirula’s pastry shops are a one-stop shop for
bakery and confectionary items.
48
55. History and Background
Nirula’s today is a well known name in the hospitality industry.
Nirula family was the first to offer western style fast food in India. It came to Delhi in
1928. They realized the paucity of good eating places in and around New Delhi, and
started ‘Hotel India’ in 1934 with 12 rooms and a restaurant with a bar license. They also
specialized in catering to parties and soon Nirula’s’ catering became famous.
Meanwhile, Nirula’s’ had set up the ‘India Coffee Shop’ in Janpath on request of the
Coffee board. A few years later, the Coffee Board of India seeing the success of the
international decided to run the business itself.
It 1939, whine the Second World war had started, Nirula’s’ rented more space in
Connaught Circus (what is currently the ground floor of Nirula’s, L-block) and opened a
Restaurant with music and serving a six course dinner for only Rs. 1. The restaurant
proved to be popular with both Indian and foreign guests. It also started serving Indian
food and introduced ball room dancing and caberet. However, business fluctuated widely
since it was dependent on the quality and reputation of that evening’s performer. Hence,
in 1950 the restaurant with the cabaret was given up in favour of the Brasserie.
The Brasserie was a popular self service restaurant serving beer and liquor with a limited
menu of Indian and Western food. The Brasserie gave way to the ‘Cafeteria’, the first of
its kind in India with a variety of Dishes and the guests could help themselves to
whatever they fancied.
Before 1947, Nirula’s’ had also opened the first fruit preservation unit in Delhi. The jams
and squash and other preserves were marketed under the name of Nirula’s and had an all
49
56. India distribution. With the partition of India in 1947, the supply of raw material was
disrupted and this unit was stopped.
In 1950, Nirula’s’ started the ‘Chinese Room’ which was the first restaurant of its kind in
India. Nirula’s’ created history by being the first Indians of non-Chinese origin to have a
Chinese food restaurant in India.
In 1954, Nirula’s’ were the first ones to introduce espresso coffee in India. Gaggia, the
inceptors of espresso coffee machines gave Nirula’s’ sole distribution a right for their
machines and Nirula’s sold these to the luxury hotels and first class restaurants. Nirula’s
store was opened in the 1950’s with a section for cold meat and delicatessen products and
a separate section for bakery and confectionery produce.
Nirula’s Hotel was started in 1958 and was the first modern 3-star hotel in India. In 1960
two specialty restaurants were opened. La Bohame was a modern restaurant where tea,
coffee, snacks and meals were very popular. It was the most popular restaurant of its time
in India. Gufa was an Indian restaurant with Indian style seating and an all silver thali
service in a romantic atmosphere.
The Pastry shop was independently introduced in 1972 and did externally well. The quick
service food business was again ventured into by the opening of the Snack bar in 1972
and Hot Shoppe in 1977, which was instant success. The first Ice Cream Par lour in India
was started in 1978. Potpourri restaurant with the first salad bar in India and the Pegasus
Bar were started in 1979. All of these exist till today.
50
57. 2. Pizza hut
Pizza Hut is the largest pizza restaurant company in the world. It has 12700 outlets in 90
countries. Pizza Hut has an aggressive expansion plan for India. It intends to have 100
outlets by the end of 2004. Pizza Hut will consolidate its presence in cities where it
already exists as an endeavor to create a major share of these profitable markets first
before spreading to other markets. Pizza Hut is one of the largest pizza brands. Further,
all new outlets in India would be franchisee owned resulting from the smooth functioning
of the existing stores which are all franchisee owned. Hence, the same arrangement will
be followed in the future to ensure growth-oriented results.The data written below
represent what Pizza Hut is all about and gives a brief profile of the company.
Their main quote:
"Customer is the reason that we are here."
• No customers
• No Pizzas
That’s the secret ingredient.
The 5 secret principles:
51
58. • Employees are our secret ingredients.
• Show your "care".
• Say "yes" to customers
• Satisfied, capable teams create satisfied customers.
In 1996 Pizza hut came to India with a dine in restaurant in Bangalore that has special
vegetarian pizzas. In addition to traditional Italian topping, it incorporates Indian
favorites such as chicken tikkas, lamb korma, etc. In its list of innovative toppings, along
with pizzas the menu features appetizers like garlic bread and soups, fresh salads, oven
baked pastas and choice fof ice-cream sundaes.
In 1997 pizza hut opened a restaurant in the capital’s building bustling M-Block market
in Greater Kailash-I, unlike the existing pizza hut at shanti niketan which is delivery
counter for just pizzas, this is dine-in where the entire menu is available.
3. Domino’s pizza
52
59. It was incorporated in 1995 as the master franchise o Domino’s pizza international inc.,
of USA.. the first Domino’s pizza store in India opened in January 1996 at new Delhi.
Today it has grown into a countrywide network of over 104 outlets in 30 cities.
Ever since it was established, Domino’s Pizza India has maintained its position of market
leadership with its constant product innovation and maintenance of stringent service
standards. It has established a reputation for being a home delivery specialist capable of
delivering pizzas within 30 minutes. It was the first one to start this facility to customers.
4. Haldiram’s
Haldiram began in 1937as a small sweet shop in Bikaner, in Rajasthan state of India.
In 2001 the turnover of haldiram’s was Rs. 4 billion. The group has presence not only in
India but in several countries all over world.
Till early 1990s, Haldiram comprised of three units- Kolkata, Nagpur and New Delhi.
Haldiram has many ‘firsts’ to its credit- It was first company to brand namkeens. And
first company to offer traditional Indian items like ‘panipuri’, ‘chatpapri’ and so on.
The company faced tough competition not only from sweets and snack food vendors in
unorganized, domestic and international competitors but also from its own units because
of conflict between them.
At Haldiram’s quality is the obsession and this spirit has given its competitors a cutting
edge. Haldiram offers a very wide range of delicacies like- Namkeens, Sweets, Syrups,
Papads, North Indian dishes, South Indian dishes, Pastries.
Sweets itself has a very wide variety Bengali sweets include Sandesh and Rasgullas.
Other popular Indian sweets are:- Kheer, Halwa, Gulabjamun, Rasmalai and Kulfi.
SWOT Analysis of the McDonald’s Corporation (MCD):
53
60. Strengths
• Open door policy to the press
• CERES guidance and co-ordination &
active CSR
• Selective supply chain strategy
• Rigorous food safety standards
• Affordable prices and high quality
products
• Nutritional information available on
packaging
• Decentralised yet connected system
• Innovative excellence program
• Promoting ethical conduct
• Profitable
Weaknesses
• Inflexible to changes in market trends
• Difficult to find and retain employees
• Drive for achieving shareholder value
may counter CSR
• Promote unhealthy food
• Promoted CSR meat imports in error
Opportunities
• Attractive & flexible employment
• Positive environmental commitments
• Higher standards demanded from
suppliers
• Corporate Responsibility Committee
• Honest & real brand image
Threats
• Fabricated stories about the quality of
our chicken
• Unhealthy foods for children
• Health concerns surrounding Beef,
Poultry & Fish
• Labor exploitation in China
• CSR at the risk of profit loss
• Contributor to global warming
• Local fast food restaurants
Strength
54
61. Open door policy to the press
During loss of public confidence arising from the safety of beef and poultry the MD had
an open door, allowing the press into a limited number its restaurants and suppliers. In
March 2001, MD opened its doors to both TV and printed advertisement with a view to
seeing how the company was being managed.
CERES guidance and co-ordination & active CSR
MD co-ordinates with investors, environmental and Corporate Social Responsibility
(CSR) organisations, such as CERES, to continuously improve its social and
environmental programs.
Selective supply chain strategy
MD works to ensure that its suppliers meet safety and quality standards as well as
sustainable food supply and animal welfare.
Rigorous food safety standards
MD works hard to ensure its high food safety standards are met through training, food,
safety and quality and menu development in each restaurant. This filters through to its
partners ensuring that they operate ethically and meet social responsibility standards.
Affordable prices and high quality products
MD is an efficient provider and always seeks to offer the best value to its customers.
Nutritional information available on packaging
MD is one of the first fast food restaurants to disclose its nutritional information on its
packaging and continues to seek new ways in which it can provide nutrition and balanced
active lifestyles for its customers.
55
62. Decentralised yet connected system
MD provides a core system of values, principles and standards which managers adhere to
in combination with its “Freedom within the framework” program which provides them
with the flexibility to respond to the diversity of its customers and local markets.
Innovative excellence program
MD has mystery shoppers which shop unannounced and inspect the premises as
customers and rate it accordingly. Many restaurants provide customer comment contact
numbers and employee satisfaction surveys.
Promoting ethical conduct
MD works hard to maintain its integrity with its shareholders through a
Profitable
MD is profitable with sufficient capital which allows it to grow and realise gains on its
investments. This allows MD to offer help to charities as well as itself when in need.
Weaknesses
Inflexible to changes in market trends
If customer trends move towards eating Eco-friendly or Bio foods, MD would be unable
to follow this trend without changing suppliers and incurring significant financial losses.
MD could consider the introduction of new product with the aid of market research, over
the coming years to prepare them for such an inevitable change.
Difficult to find and retain employees
MD has had hostile relationships with workers rights unions and although this has been
controlled, the company does find it difficult to find and retain good employees. The
company can build on its reputation for developing top level managers to motivate entry
level employees to remain.
56
63. Drive for achieving shareholder value may counter CSR
When MD’s profits fall, its stock price often falls as well and is often forced to take
drastic actions to resolve the problem. This can oftentimes be at the cost of being socially
and environmentally irresponsible. MD could be more proactive in finding more long-
term CSR suppliers and processes that provide low costs and higher profit margins, rather
than being reactive.
Promote unhealthy food
Despite providing healthier product varieties, MD continues to sell burgers that have 850
calories as well as other unhealthy products. This could continue to harm its reputation as
an unhealthy fast food provider. MD could research ways to reduce the calories in its
products whilst still maintaining their taste, or at the least provide low calorie burger
options.
Promoted CSR meat imports in error
MD claimed to provide meat from socially and environmentally responsible sources, but
a court case found that meat had been imported from Latin America where rainforests are
cleared to create green fields for cattle. Where MD carries out CSR processes or
investments it may wish to consider carrying out random checks to ensure their standards
are continually met, to minimise embarrassing press.
Opportunities
Attractive & flexible employment
MD offers a variety of job opportunities and is proud to say that 42% of its top managers
first started by serving customers. It is also helpful to society in being always able to hire
even in times of recession, helping to keep jobless rates lower.
Positive environmental commitments
MD incorporates environmental commitments in its daily operations, from maintaining
daily drive-thru cleanings to providing sustainable fish sources to using recycled
packaging.
57
64. Higher standards demanded from suppliers
MD sets the standards it demands from suppliers for low cost high quality, socially
responsible supplies, in return for a long-term business commitment.
Corporate Responsibility Committee
MD has a standing Corporate Responsibility Committee that acts as an advisor to its
Board of Directors.
Honest & real brand image
MD has built and maintains a trusting relationship with its shareholders and customers
through truthful marketing and communications.
Threats
Fabricated stories about the quality of our chicken
E-mails and websites have published fabricated information that MD is using ‘monster-
chickens’ in its products. MD could build on its open door policy with the press and
apply it to the web, to combat false distribution of information.
Unhealthy foods for children
If competitors begin to offer premium healthy alternatives for children with small gifts to
encourage them to eat healthy, this would be a significant threat to MD. MD’s positive
strategy to provide a range of healthy products could include healthy products for
children.
Health concerns surrounding Beef, Poultry & Fish
There are various initiatives working against hormone induced cows and other issues
such as bird flu epidemics and heavy metal levels in fish could reduce MD’s sales and
cause profits and its share price to fall. MD could use its purchasing power to its
advantage to source supplies that are healthy and at low prices.
58
65. Labour exploitation in China
Chinese manufacturers exploit labour in their production of ‘Happy Meal’ toys. MD
could use its purchasing power to its advantage to demand that manufacturers provide a
toys without exploiting labour.
CSR at the risk of profit loss
If share prices and profitability are under pressure, managers will inevitably seek to
resolve it at the risk of a CSR issue.
Contributor to global warming
MD is the largest consumer of beef. Greenfields used to supply this beef comes at the
expense of rainforests, heavy use of chemicals, fertilizers and pesticides. MD could use
its purchasing power to its advantage to source CSR suppliers.
Local fast food restaurants
Local restaurants which are less environmentally threatening than MD and have less
purchasing power may have better reputations with local suppliers and customers.
From the above SWOT of McDonald’s and the summary that follows it, it can be seen
how an organisation by highlighting its position it can identify areas that could be
strengthened, opportunities seized and threats and weaknesses minimised or prevented
completely.
59
67. RESEARCH METHODOLOGY
Marketing Research is a process of collecting and analyzing marketing information and
ultimately to arrive at certain conclusion. The purpose of this research is to describe the
research procedure. Research Methodology is the mean to plan out the working process
or the course of action to reach the objective. It is extremely crucial and holds the key to
the success of the survey.
McDonalds Corporation is which is marketing products having different brands. Thus a
survey method of marketing research is essentially Descriptive in nature.
IMPORTANCE OF MARKETING RESEARCH
Marketing research has its importance not only for consumers market but also it survey
effectively to the producer of goods and services. The use of marketing research in
consumer market may be explained on the basis of following services rendered by it.
1. It ascertains the position of a company in specified Industry.
2. It indicates the present, future trend of Industry and point out how the company’s
affairs are being turned up.
3. It helps in development and introduction of new product.
61
68. SIGNIFICANCE OF THE STUDY:
1. Any research has its own importance in any business organization. The research
shows the real fact about the products as well as the organization. Research is a
systematic and scientific investigation of any idea either precise and abstract from a
continous basis for learning. It is Descriptive in nature.
2. Research is a systematic and scientific investigation through which any organization
try to find out its strength and weaknesses as well as opportunities and threats. As we
know, in the present era, the business activities have become more complex and
complicated due to modern technology ,globalization and liberalization. And on other
hand, today customers are conscious about products and brand.
3. The research work is highly focused on this issue, which is important for us as well as
for the organization. During research work we learnt customers opinion about
products and brand.
4. It is a strong belief that the research work is significant in all manner. This research is
helpful for organization, managers and customers.
62
69. MANAGERIAL USEFULNESS OF STUDY:
1. Market Survey will help to know the prevailing market condition and also help in
framing the policies accordingly.
2. The Study will help the management to understand the customer mindset and also
estimating the present and future market demand for the products.
3. It will help to estimate the level of awareness established in the market and in
deciding the extent of promotion required.
4. It will help in finding out the customers expansions about the product and also help to
know customer psychology.
5. The Study reveals many facts that have come up during our project and these facts
can either used as opportunities and exploring and expanding business as well as can
be used as safeguards against threats by the competitors to prepare an effective
marketing strategy.
SCOPE OF THE STUDY:
A big boom has been witnessed in fast food industry in recent times. A large number of
new players have entered the market and are surveying to gain market share in this
rapidly improving market. The study deals with McDonalds in focus and the various
segments that it caters to.
63
70. OBJECTIVES OF THE STUDY:
To do customer value analysis which includes identifying the major attributes that
customers value in a fast food chain restaurant, assessing the quality of the different
attributes.
To shed light on different aspects that a service based food chain must follow in order
to increase its market share and for being on a continuous growth stream.
To identify different activities that an aggressive company like McDonald’s follow in
order to establish itself in a local market and increasing sales by being in customer’s
mind and heart.
To know the consumer perception and Preference about McDonalds products.
The research also find out the company on different customer value attributed and try to
find their performance through:
Customer Value Analysis
- Identify the major attributes that customers value in fast food restaurants
- Assess the quantitative importance of different attributes
- Assess McDonald’s performance on different customer values.
- Assess the share of mind and share of heart for McDonald’s.
64
71. LIMITATIONS OF THE STUDY:
Since the road to improvement is never ending, so this study also suffers from certain
limitations. Some of them are as follows:
Scope of project is limited in the sense that only McDonalds has been taken for
consumer research.
The extent of the survey was New Delhi only. So the suggestions or arguments
given in the report may not hold true for other locations in India.
Questionnaire method involves some uncertainty of response. Co-operation on the
part of informants, in some cases, was difficult to presume.
Because of time constraints and reserve constraints, a mix of convenient sampling
and Judgement (Probability & Random) sampling was used.
Also because of above mentioned constraints, the sample size chosen for the
survey was 100 people.
It is possible that the information supplied by the informants may be incorrect. So,
the study may lack accuracy.
65
72. RESEARCH DESIGN
The controlling plan for a marketing research study in which the methods and procedures
for collecting and analyzing the information is to be collected is known as Research
Design or A framework or plan for a study that guides the collection and analysis of the
data.
Descriptive Research
A research design in which the major emphasis is on determining the frequency with
which something occurs. For example, How often users access the Internet in a given
month. The focus of descriptive research is to provide an accurate description for
something that is occurring.
Data Source
In this project both primary data as well as secondary data are used.
PRIMARY DATA
Primary data used in this project is collected through three methods, namely,
QUESTIONNAIRE METHOD and DIRECT PERSONAL INTERVIEW METHOD,
OBSERVATION METHOD. ALL these methods proved to be great help in getting the
required information.
SECONDARY DATA
It is not possible to collect first hand information for each & every thing so, secondary
data from various sources like Internet, A. C Neilson’s report on Jan, 2007, Information
from television channels like CNBC, Z Business, NDTV Profit etc. and Indian Infoline
website were used.
73. STATISTICAL & PRESENTATION TOOLS USED:
PRIMARY DATA is:
First classified i.e. grouped qualitatively and quantitatively according to the situation
or the type of the data which was collected.
After classifying is represented in the form of tables i.e. systematically arranged in
columns and rows.
Some of the data is also graphically represented in the form of PIE DIAGRAM.
SECONDARY DATA is represented:
In the form of tables.
By the way of BAR GRAPHS and PIE CHARTS.
Sample size and Areas covered
A customer-based survey was conducted in which 100 people were asked to fill the
questionnaire in which all 100 people belong to cities of Delhi. Sampling Unit is
restricted to North Delhi.
Because it was not possible to consider each and every person of this city,
PROBABILITY SAMPLE or RANDOM SAMPLE was taken.
67
74. BRIEF REVIEW OF RESEARCH METHODOLOGY
SAMPLING PLAN :
Research Design : Descriptive
Target Segment : Consumer
Sample Size : 100
Area covered : North Delhi
Sampling Method : Probability Sample or
Random Sample.
TECHNIQUES OF DATA COLLECTION:
Data Collection Method : Primary (Interview, Questionnaire Observation)
Method : Personal Interaction
Type of Questionnaire : Open ended questions and multiple choice question.
Research Approaches : Consumer Survey.
68
76. Customer Satisfaction
Through
4 P’s
Of
Marketing Mix
Marketing Mix
Marketing Mix refers to the ingredients or the tools or the variable which the marketer
mixes in order to interact with a particular market.
“Marketing Mix is a set of marketing tools that the firm uses to pursue its marketing
objectives in the target market”
- Kotler
Marketing mix is a term used to describe the combination o the four inputs which
constitute the core of a company’s marketing system: the product; the price structure; the
promotional activities, and the distribution system.
Marketing mix represents the total marketing programme of a firm. It involves decisions
with regard to product, price, place and promotion. Marketing mix is a blending of
decisions in the ‘4 Ps’.Four major ingredients of marketing mix are:
1. Product
A product is any good or service that consumers want. It is a bundle of utilities or a
cluster of tangible and intangible attributes. Product component of the marketing mix
involves planning, developing and producing the right type of products and services. It
deals with the dimensions of product line, durability and other qualities. The total product
should be such that it really satisfies the needs of the target market. In short, product mix
requires decisions with regard to
(a) Size and weight of the product (b) Quality of the product (c) Design of the product
70
77. (d) Volume of output (e) Brand name (f) Packaging (g) Product range (h) Product
testing.
2. Price
Price is an important factor affecting the success of a firm. Pricing decisions and policies
have a direct influence on sales volume and profits of business. Price is, therefore, an
important element in the marketing mix. In practice, it is very difficult to fix the right
price. Right price can be determined through pricing research and test marketing. A lot of
exercise and innovation is req. to determine the price that will enable the firm to sell its
products successfully. Demand, cost, competition, govt. regulation, etc. are the vital
factors that must be taken into consideration in the determination of the price. Price mix
involves decisions regarding base price, discounts, allowances, fright payment, credit,
etc.
3. Promotion
Promotion component o the marketing mix is concerned with bringing products to the
knowledge of customers and persuading them to buy. It is the function of informing and
influencing the customer. Promotion mix involves decisions with respect to advertising,
personal selling and sales promotion. All these techniques help to promote the sale of
products and to fight the competition in the market.
No single method of promotion is effective alone and, therefore, a promotional campaign
usually involves a combination of two or more promotional methods. Growing
competition and widening market have made simultaneous use of more than one
promotional method all the more necessary. Combination of two or more methods in a
single promotional campaign requires an effective blending of promotional inputs so as
to optimize the expenditure on each. There is no one ideal product, type of customers, the
promotion budget, stage of demand, etc. should be taken into consideration.
71
78. 4. Place (Distribution)
This element of marketing mix involves a choice of the place where the products are to
be displayed and made available to the customers. It is concerned with decisions relating
to the wholesale and retail outlets or channels of distribution. The objective of selecting
and managing trade channels is to provide the products to the right customer at the right
time and place on a continuing basis. In deciding where and through whom to sell,
management should consider where the customer wants the goods to be available. A
manufacturer may distribute his goods through his own outlets or he may employ
wholesalers and retailers for this purpose. Irrespective of the channel used management
must continuously evaluate channel performance and make changes whenever
performance falls short of expected targets. In addition, management must develop a
physical distribution system for handling and transporting the products through the
selected channels. In the determination of distribution mix or marketing logistics, a firm
has to make decision with regard to the mode of transporting of goods to middle-men, use
of company vehicles or both.
Product Mix
(McDonald’s Product Mix)
As explained earlier Product mix deals with the dimensions of product line, quality and
design of the product, its packaging, brand name, product range, etc.
In this section we will study the product mix of McDonald’s
Product line of McDonalds includes the products offered for sale, i.e. the range of food
products offered to the customers.
The product breadth or number of products offered by McDonalds can be classified as:
Vegetarian products
Non vegetarian products
Beverages
Deserts
72
79. Add-ons
Vegetarian products include: Non-Vegetarian products include:
Mc Veggie Chicken Maharaja Mac
Mc Aloo tikki Mc Chicken
Paneer Salsa wrap Filet-o-fish
Crispy Chinese Chicken Mexican wrap
Veg Mc Curry pan Chicken Mc Grill
Pizza Mc Puff Chicken Mc Curry Pan
Chicken Mc Nuggets
Beverages Desserts Add-ons
Cold coffee Soft serve cone Fries
Hot serves McSwirl Potato Wedges
McShakes Soft serves
Soft drinks Flavour bursts
Ice tea Floats
All this shows the wide product range of McDonald’s. Besides that the quality of
McDonald’s, according to the survey and general findings, is consistent throughout the
life of the product.
Nothing but the Best
That's how we plan our product range. Food quality is key at McDonald's. That's why we
take pride in the foods we serve you and your family. We seek out fresh lettuce and
tomatoes, quality buns and potatoes, select poultry and fish and wholesome dairy
products. Despite extensive and meticulous quality tests at the supplier end, all products
are once again carefully scrutinized at the restaurant. Our immaculate standards of quality
allow for nothing but the best to reach your tray.
73
80. Cold Chain
The term Cold Chain describes the network for the procurement, warehousing,
transportation and retailing of food products under controlled temperatures. McDonald’s
restaurants store products to be used on a daily basis, within a temperature range of 18ºC
to 4ºC. About 52% of our food products need to be stored under these conditions before
they are used.
Trikaya Agriculture - Supplier of Iceberg Lettuce
Implementation of advanced agricultural practices has enabled Trikaya to successfully
grow specialty crops like iceberg lettuce, special herbs and many oriental vegetables. A
specialized nursery with a team of agricultural experts.
Vista Processed Foods Pvt. Ltd. - Supplier of Chicken and Vegetable range of
products
A joint venture with OSI Industries Inc., USA, and McDonald's India Pvt. Ltd. Vista
Processed Foods Pvt. Ltd. produces a range of frozen chicken and vegetable foods. A
Separate processing lines for chicken and vegetable foods.
Dynamix Diary - Supplier of Cheese
• Dynamix has brought immense benefits to farmers in Baramati, Maharashtra by
setting up a network of milk collection centres equipped with bulk coolers. Easy
accessibility has enabled farmers augment their income by finding a new market for
surplus milk
Product strategies:
In order to achieve the desired rate of profits and growth, a firm has to continuously
adjust its products and product mix to the changing needs and targets of the market.
74
81. This matching of products to the requirements of competition and buyers is known as
product strategy.
Some of the important product strategies, which firms adopt, are as follows:
1) Limited Line Strategy:
This refers to the offering of one product or a small number of products to cater specific
market. The main benefit of this strategy is low cost of operations. However, it cannot
meet the requirements of different types of customers in different markets.
2) Full Line Strategy:
This ids also known as broad line strategy, it implies the offering of a large number of
products to meet the requirements of different customers in different markets.
3) Trading up and trading down:
These are alternate or opposite strategies for expanding the product mix.
Trading up implies addition of some higher priced products to the existing product line of
lowered priced products for improving the sales of old products.
Trading down refers to the addition of lower-priced products to the existing higher priced
product to boost total sales.
75
82. Price Mix
Price and Pricing strategies:
Price is the key element of marketing mix because it relates directly to the generation of
total revenue. The term pricing policy refers to a systematic approach to pricing of
different
products in different markets to evolve an appropriate pattern of prices in the long run. It
is the plan defining the initial price range and the planned price movements through time
that the firm will use to achieve its marketing objectives. Pricing policy includes not only
the determination of base prices but also the terms and conditions of sale.
Company Pricing policies:
The price must be consistent with company pricing policies. Many companies set up a
pricing department to develop policies and establish or approve decisions. The aim is to
ensure that the salespeople quote prices that are reasonable to customers and profitable to
the company.
Now a days most companies follows buyer based pricing. They are basing their prices on
the product’s perceived value. They see buyers’ perception of value, not the seller’s cost,
as the key to pricing.The company using perceived-value pricing must establish the value
in the buyers’ mind concerning different competitive offers.
McDonald began with skimming prices, i.e. setting a very high price for a new product
initially and to reduce the price gradually as competitors enter the market.
The initial high price serves to skim the cream of the market, that is , relatively
insensitive to price. This approach to pricing is, in effect, an experimental search for the
76
83. right price and it may result in a market-determined price. This method starts with a high
price and moves the price downward by steps until the right price is reached.
Initially McDonalds charged high price than what is being charged now. But now it
introduces new schemes for value of money.
Place Mix
(Distribution)
This element of marketing mix involves a choice of the place where the products are to
be displayed and made available to the customers. It is concerned with decisions relating
to the wholesale and retail outlets or channels of distribution. The objective of selecting
and managing trade channels is to provide the products to the right customer at the right
time and place on a continuing basis.
McDonalds distribution centres are wide, located in every area of India.
McDonalds has Dine-in restaurant, Drive-Thru, McDelivery.
McDonald’s has 122 restaurants in India of which 72 are in north & east India and 50 in
west & south India.
72 restaurants in North & East India: with
• 32 in Delhi
• 20 in Uttar Pradesh – Noida (4), Ghaziabad (4), Mathura (1) (Highway and Drive
Thru), Kanpur (2), Meerut (1), Lucknow (4), Agra (1), Allahabad (1), Varanasi (2)
• 10 in Haryana - Faridabad (3), Manesar (1) (Highway and Drive - Thru), Gurgaon
(4), Karnal (1) (Highway and Drive - Thru), Panipat (1)
• 5 in Punjab - Chandigarh (1), Ludhiana (1), Doraha (1) (Highway and Drive - Thru),
Jalandhar (1), Patarsi (1) (Highway and Drive - Thru)
• 2 in Rajasthan - Jaipur (2)
• 1 in Uttaranchal - Dehradun (1)
• 1 in West Bengal – Kolkata (1)
50 restaurants in West & South India:
• 30 in Maharashtra – Mumbai (22), Pune (7), Nasik (1)
• 7 in Gujarat – Ahmedabad (4), Vadodara (2), Surat (1)
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84. • 6 in Karnataka – Bangalore(6)
• 4 in Andhra Pradesh – Hyderabad (4)
• 3 in Madhya Pradesh – Indore (3)
For the Big Mac, the current calendar year will be the biggest in terms of restaurant
openings, and by year-end, 16 new restaurants would be in place, informs Vikram
Bakshi, Managing Director, McDonald's India.
The new outlets will be a combination of highway restaurants, outlets at railway stations,
at shopping malls and cineplexes, besides at residential areas with significant footfalls.
McDonald's India recently won the tender for setting up an outlet each at railway stations
in Mumbai and Jaipur. In Delhi, the chain will mark its presence through an outlet at the
ambitious Delhi Metro Rail Corporation project, expected to be operational by year-end.
And if all goes according to plan, another McDonald's outlet could come up at Delhi's
Nizammuddin railway station.
The fourth McDonald's highway outlet on the Delhi-Jaipur highway is expected to begin
operating shortly. The chain's other three highway restaurants are located on the Delhi-
Agra highway, the Delhi-Ludhiana highway and the Mumbai-Pune highway.
Promotion Mix
Promotion is a process of communication with the potential buyers involving
information, persuasion and influence. It includes all types of personal or impersonal
communication with customers and intermediaries.
Promotion mix refers to the combination o various promotional tools usd by a business
firm to create, maintain and increase demand. It involves an appropriate integration of
advertising, personal selling, sales promotion and publicity.
Advertising:
Advertising is any paid form of non-personal presentation and promotion of goods,
services or ideas.
78
85. The past four years have seen very high trials from first-time customers - averaging 77-80
per cent. Now we are moving away from inducing trials, and striving for repeat
customers," informs Bakshi. Which explains the chain's new advertising tag.
For the first time since it began advertising on Indian television channels, McDonald's
has changed its ad line. It is now `To aaj McDonald's ho jaaye,' against the earlier
`McDonald's mein hai kuch baat'. Therefore, the happy family scenario, complete with
goofy dad and adorable kid. While more commercials could follow later this year, the
theme will be the same. The objective will be to continue to position McDonald's as a
comfort zone for young families. McDonald's ad account too continues to remain with
Mudra.
Sales promotion
Sales promotion includes all those short-term marketing activities, other than personnel
selling and advertising and publicity, that stimulate customer purchasing and dealer
effectiveness.
The main objective of sales promotion is to attract the prospective buyer toward the
product, and induce him to but the product at the point of purchase.
The importance of sales promotion in modern marketing has increased mainly on account
of its ability in promoting sales and preparing the ground for future expansion.
Promotional measures by McDonald’s
A Kids Carnival promotion with Luxor Pens and L'il Tomatoes (a kids' garments'
marketer) is scheduled to take off early next month. The current fiscal's advertising and
promotional budget has been fixed at Rs 18 crore.McDonald’s continually review and
improve its menu offerings to make sure that not only they meet customers’ expectations,
but also exceed them. As a result, they have introduced a series of ongoing value options
to suit their customers’ different needs.
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86. Value Meal
Value Meals consist of a burger, fries and a drink and are available in 3 sizes:
Small, Medium and Large.
Small Value Meal
Burger
+
Potato Wedges
+
Small Drink*
Medium Value Meal
Burger
+
Medium Fries
+
Medium Drink*
Large Value Meal
Burger
+
Large Fries
+
Large Drink*
A Drink includes Coke , Fanta , Sprite.
You can also substitute the drink in your Value Meal with a McShake™, Coffee, Tea,
Hot Chocolate, Vanilla Coke™, Ice Tea or Cold Coffee by paying the difference. For
more details please speak to the counter person at the restaurant.
Happy Meal
A Happy Meal consists of a burger + small drink + toy. You can also substitute the small
drink in the Happy Meal™ with a small Mc Shake by paying the difference. For more
details, please contact our managers.
80
88. Analysis of Questionnaire
Q1. Do you love Outdoor eating?
Yes No
20%
80%
20% NO
80% YES
Out of the Sample of 100, following results were obtained:
• 80% of the people agreed that they love Outdoor eating a lot.
• 20% of the people said that they don’t like Outdoor eating.
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89. Q2. How frequently do you visit McDonalds?
Once a week More than once a week Once a fortnight
Once a month Less than once a month
Out of the sample of 100, following results were obtained:
• 25 informants said that they visit McDonalds once in a fortnight. This section of
people is 50% of the total sample.
• 8 informants said that they visit more than once in a week i.e. 16% of the people
surveyed.
• 7 said that they visit once in a month. They are 14% of the people surveyed.
Population
0
5
10
15
20
25
30
Once a
Week
More than
Once a
Week
Once a
Fortnight
Once a
Month
Less than
Once a
Month
Population
5
8
25
7
5
83
90. • 5 persons each said that they visit once a week and less than once a month
respectively. They are 20% of the people surveyed.
Q3. Restaurants preferred by customers
Restaurant
preferred
No. of persons
McDonalds 17
Pizza hut 15
Domino’s 10
KFC 3
Nirula’s 5
• 17 out of 100 persons surveyed preferred McDonalds over any other restaurant, i.e.
34%.
• 15 persons preferred Pizza hut, i.e. 30%.
17
15
10
3
5
0 5 10 15 20
McDonalds
Pizza hut
Domino’s
KFC
Nirula’s
Restaurantspreferred
no. of persons
84
91. • 10 persons preferred Domino’s, i.e. 20%
• 3 persons preferred KFC, i.e. 6%
• 5 persons preferred Nirula’s, i.e. 10%
This survey conveys that there is a tough competition between McDonalds, Pizza hut and
Domino’s, kfc and burger king.
Q4. Rate McDonalds on the following Attribute Scale:
Attribute V-Good Good Above Avg. Average Poor
Taste of food 30 12 5 2 1
Variety of food 20 25 3 1 1
General hygiene 25 19 4 2 0
Ambience/Décor 9 12 21 5 3
Value for money 6 24 15 4 1
Friendliness of peers 9 20 15 4 2
Promptness of delivery 15 20 10 2 3
85
92. 0
5
10
15
20
25
30
35
Taste
offood
V
ariety
offood
G
eneralhygiene
A
m
bience/D
écor
V
alue
form
oney
Friendliness
ofpeers
P
rom
ptness
ofdelivery
V-Good
Good
Above Avg.
Average
Poor
Out of 100 Persons being surveyed, out of 30 Rating has been done.
• On the Rating Scale 30 is the highest Attribute rating for taste of food which is found
to be V. Good.
• And 25 is the highest Attribute rating which found the Variety of food to be Good.
• 25 is the highest Attribute rating which found the General Hygiene to be V. Good.
• 21 is the highest Attribute rating which found the Ambience/Décor to be Above
Average.
• 24 is the highest Attribute rating which found the Value for Money to be Good.
• 20 is the highest Attribute rating which found the Friendliness of Peers to be Good.
• 20 is the highest Attribute rating which found the Promptness of Delivery to be
Good.
86
93. Q5. Is McDonalds ambience comfortable and well provided?
Views No. of persons
Strongly Disagree 1
Disagree 1
Neither agree 7
Agree 38
Strongly Agree 3
87
94. Regarding the Comfortability of McDonalds,
• 38 persons out of 100 surveyed agreed that its ambience is comfortable i.e. 60%
• 7 persons neither agree nor disagree i.e. 20%
• 3 persons strongly agreed i.e. 15%
• 1 person each disagreed i.e. 5%
Q6. Does McDonalds maintains consistency in its taste and quality?
Views No. of persons
Yes 43
No 7
No. of persons
0
5
10
15
20
25
30
35
40
45
Strongly
Disagree
Disagree Neither
Agree
Agree Strongly
Agree
No. of
Persons
88
95. No. of persons
Yes
86%
No
14%
This question shows whether McDonalds maintains consistency in taste and quality of its
food products.
86% of the persons surveyed agreed that McDonald maintains consistency in its taste and
quality while 14% disagreed.
Q7. Are you satisfied with the prices charged by McDonalds?
Views No. of persons
Very satisfied 9
Satisfied 35
Not satisfied 6
89
96. This question deals with the pricing of McDonalds’ food products.
Out of 100 persons surveyed.
• 35 are satisfied with the prices charged i.e. 55%
• 9 are very satisfied i.e. 30% and
• 6 are not satisfied i.e. 15%
Q8. Do you find the promotional measures adopted by McDonalds effective?
Views No. of persons
Very effective 7
effective 27
Not effective 16
000
9
35
6
1
2
3
90
97. This question deals with whether the promotional measures adopted by McDonalds are
effective or not.
Out of 100 persons being surveyed:
• 7 persons find it very effective i.e. 10%
• 27 persons found it effective i.e. 50% while
• 16 persons doesn’t find it effective i.e. 40%
Q9. What recommendations do you wish to suggest to McDonalds?
Recommendations No. of persons
Include more variety 32
Reduce prices 6
Better advertising and promotion 5
Improve quality 7
No. of persons
0
5
10
15
20
25
30
Very effective Effective Not effective
No. of persons
91
98. This question gives out the suggestions to increase the sales.
Out of 100 persons surveyed:
• 32 persons suggested that McDonalds must include more variety i.e. 52%
• 6 persons suggested to reduce prices i.e. 12%
• 5 suggested to adopt better advertising and promotion measures i.e. 10% and,
• 7 suggested to improve quality i.e. 26%
Q10. How would you describe your eating experience at McDonalds?
Experience No. of Persons
Excellent 4
Very Good 17
0000
32
6
5
7
1
2
3
4
92
99. Good 25
Poor 4
This question describes the eating experience at McDonalds.
Out of 100 persons being surveyed:
• 4 describe their eating experience as excellent i.e. 15%
• 17 as very good i.e.20%
• 25 as good i.e. 50% and
• 4 as poor i.e. 15%
Q11. Are you satisfied with the varieties of McDonalds?
Very satisfied Satisfied Not Satisfied
0
5
10
15
20
25
Excellent Very good Poor Good
No. of persons
No. of persons
93
100. 70%
15%
15% 0%
VERY SATISFIED
SATISFIED
NOT SATISFIED
Out of the Sample of 100, Following results were Obtained:
• 70% of the people said that they were Very much satisfied with the Varieties of
McDonalds.
• 15% of the people said that they were only satisfied with the varieties of McDonalds.
• 15% of the people said that they were not at all satisfied with the varieties provided
by McDonalds.
Q12. Are you aware of the Charity services of McDonalds?
Yes No
94
101. 60%
40%
40% NO
60% YES
From the following pie chart, following information has been obtained:
• 60% of the people say that they are Aware of the Charity Services provided by
McDonalds and,
• 40% of the people say that they are not Aware of the Charity Services Provided by
McDonalds.
CHAPTER – 5
95
103. Going through the analysis of response from the survey conducted, it is concluded that
McDonalds is able to be and retain at top among all the fast food chains like Nirula’s,
Subway and Burger King,Sbarro.
McDonalds is also preferred over Pizza hut, Domino’s and KFC.
McDonalds’s is providing its customers good quality food products.
Though not wide but its product line is quite impressive. It includes meals for both
Vegetarian and Non-Vegetarian and satisfies both section of customers.
McDonalds is also providing its customers a well provided and comfortable ambience.
It has been rated as ‘very good’ by its customers in terms of Taste and Variety of food
and promptness of delivery.
McDonalds maintains its consistency in taste and quality.
Customers are also satisfied with its prices and promotional and advertising activities.
Prices are affordable by all and McDonalds also satisfies its customers by continuously
introducing value for money offers. Best example for this is HAPPY PRICE MENU for
Rs. 20.
Summarising all points we conclude that McDonalds is growing fastly by satisfying its
customers by providing quality and maintaining consistency and also has an impressive
strategy of marketing the products in the form of Marketing Mix Elements.
Recommendations
97
104. The Recommendations to McDonalds is to:
1. Maintain consistency in the taste and quality of products.
2. Include more items in its product line like pizzas for example.
3. Include more promotional and advertising measures to increase its sales or to increase
its market share.
4. They Should also freeze their Ice Creams at higher Temperature so that it does not
get melted so early.
5. The most important thing is that they should also sell burgers without cheese because
today’s generation is more Diet Conscious and each and every Burger of McDonalds
is more or less of cheese so they should make burgers without cheese.
6. One Thing more McDonalds should start is giving Customized waiter Services
instead of Self Services.
7. The Soft Drinks provided in McDonalds is more of Ice and less of Cold Drink. So It
Should include less ice or freeze it at high temperature so that no ice is required.
8. Lastly It should not Charge extra 20 Rs. For its Home Delivery Products.
98
106. Questionnaire:
Name: Age:
Marital Status: Occupation:
No. Of Children: Income:
Q1. Do you love Outdoor eating?
Yes No
Q2. How frequently do you visit McDonalds?
Once a week More than once a week Once a fortnight
Once a month Less than once a month
Q3. Which one of the Fast Food Restaurant would you prefer most?
a. Pizza Hut b. Haldirams c. Kfc d. Dominos
100
107. Q4. Rank the attributes for McDonalds which are key to a fast food restaurant?
1. V- Good 2. Good 3. Above Average 4. Average 5- Poor
Attributes Rank Attributes Rank
Taste of food Value for money
(promotional schemes)
Variety of food Friendliness of peers
General hygiene Promptness of delivery
Ambience/ Décor
Q5. Is McDonalds ambience comfortable and well provided?
Strongly Disagree Disagree Neither agree Agree
Strongly Agree
Q6. Does McDonalds maintains consistency in its taste and quality?
Yes No
Q7.Are you satisfied with the prices charged by McDonalds?
Very satisfied Satisfied Not Satisfied
Q8. Do you find the promotional measures adopted by McDonalds effective?
Very Effective Effective Not effective
101
108. Q9. What recommendations do you wish to suggest to McDonalds..
Include more Variety Reduce prices
Better Advertising and Promotion Improve quality
Q10. How would you describe your eating experience at McDonalds?
Excellent Very good Good Poor
Q11. Are you satisfied with the varieties of McDonalds?
Very satisfied Satisfied Not Satisfied
Q12. Are you aware of the Charity services of McDonalds?
Yes No
(Thank You)
102
109. Bibliography
Books referred:
Kotler P. (2004) ‘Marketing Management: Analysis, Planning, Implementation &
Control’, Prentice Hall of India, New Delhi
Christopher G and Harold W Bukman, ‘
Marketing management C.B.Gupta
Articles referred:
McDonald’s : “Think global, act global” – the marketing mix –
Websites referred:
www.wikipedia.com
www.mcdonalds.com
www.mcdonaldsindia.com
www.emeraldlibrary.com
www.google.com
Websites of different fast food restaurants.
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