McDonald

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McDonalds:

McDonalds Presented By:- Sanket .S. Shirodkar Suresh Solanki Nihar Shah Shruti Jain Fuzail Sopariwala McDonald’s

Industry Overview:

Industry Overview Started in 1950’s Automobiles penetration among Americans and construction of highways Initially catered to suburban automobile owners Although fast food often means traditional American fast food such as hamburgers and fries, some Chinese variants are also gaining popularity- Sushi in Japan Fish and chip shops are a form of fast food popular in the United Kingdom, Australia and New Zealand

Industry Overview:

Industry Overview In 2006, the global fast food market grew by 4.8% and reached a value of 102.4 billion and a volume of 80.3 billion transactions India’s fast food industry is growing at 40% per annum and generates over Rs. 4800 crores in sales. The multinational segment of the industry generates over Rs. 7000 crores In last 6 years, foreign investment in this sector stood at Rs. 3600 million which is about one-fourth of total investment made in this sector

Company Overview:

Company Overview McDonald's was first opened in India in 1996 Leading fastfood chains Ownership and management Nothern India- Vikram Bakshi's company Connaught Plaza Restaurants Western India- Amit Jatia that is Hardcastle Restaurants More than 120 outlets and 1 lakh customers visit daily

Company Overview:

Company Overview Specially developed a customised veg menu for Indian customers along with its universal non veg menu Established a benchmark in the sector of quick service restaurant Awarded many awards like the "Most Respected Company" for four successive years

Vision:

Vision “ To be the world’s best quick service restaurant experience .” To achieve their vision they are focused on three world wide strategies : Be the best employer for people in each community around the world. 2. Deliver optional excellence to customers in each restaurant. 3. Achieve enduring profitable growth by expanding the brand and leveraging the strengths of McDonald’s system through innovation and technology. World Wide Strategies :

Business Model:

Business Model Franchisee driven model 15% owned stores, remaining 85% are operated by franchises Product Consistency By developing a sophisticated supplier networked operation and distribution system Brand Equity McDonald’s focuses not only on delivering sales for the immediate present, but also protecting its long term brand reputation

Segmentation:

Segmentation Demographic: Cater to kids Youth Urban upper & middle class families Geographic: Mostly in urban towns & cities Now opening in 2&3 tier cities Mostly situated in malls having independent franchises Psychographic: Place to chill out with friends & families Place for enjoyment of the Kids

Segmentation:

Segmentation Segmentation on the basis of Vegetarian and Non-Vegetarian class. Specially designed menu’s for both the classes.

Vegetarian/Non-Vegetarian:

Vegetarian/Non-Vegetarian

Targeting :

Targeting TARGET MARKETS Focus on metros, Malls, Multiplex, Highways, Stations & Airports Exposure to western food & culture Move to smaller satellite towns like Gurgaon , Pune Relatively High Income Groups

Cont…. The main target customer for McDonald’s is the new urban Indian family. :

Cont…. The main target customer for McDonald’s is the new urban Indian family. Target Segment What is McDonald’s for me? A Family with children A treat to children, a fun place to be for the children. Urban customer on the move Great taste, quick service without affecting the work schedule Teenager Hangout with friends, but keep it affordable.

Positioning:

Positioning “ Mc Donald’s mein hai kuch baat” projects McDonald’s as a place for the whole family to enjoy. It positions itself as an affordable place to eat without compromising on the quality of food, service and hygiene.

Perceptual Mapping:

Perceptual Mapping

SWOT Analysis (Strengths):

SWOT Analysis (Strengths) Strong Brand Name, Image and Reputation Large market share Strong global presence Specialized training for managers known as the Hamburger University McDonalds Plan to Win focuses on people, products, place, price and promotion Strong financial performance and position Introduction of new products (Product Innovation) Customer focus (centric) Strong performance in the global marketplace Supplier Integration

Weakness:

Weakness High Staff Turnover including Top management. Customer losses due to fierce competition Legal actions related to health issues; use of trans fat & beef oil Uses HCFC-22 to make polystyrene that is contributing to ozone depletion Quality issues across franchisee network Loss in quality due to storage centres

Opportunities:

Opportunities Growing health trends among consumers Globalization, expansion in other countries (especially in China & India) Growth of the fast-food industry Worldwide deregulation Low cost menu that will attract the customers Freebies and discounts, Play parks for children Expand into Tier 2 and Tier 3 cities Increase in the breakfast menu Joint Venture with retailers (Eg: Supermarkets)

Threats:

Threats Health professionals and consumer activists accuse McDonald's of contributing to the country’s health issue of high cholesterol, heart attacks, diabetes, and obesity The relationship between corporate level McDonald's and its franchise dealers McDonald’s competitors threatened market share of the company both internationally and domestically Increased competition from local fast food outlets like Jumbo King Changing customer lifecycle and taste

7 P’s of McDonald (Product):

7 P’s of McDonald (Product) McDonald’s product includes vegetarian and non-vegetarian items Also involves combo pack Concept of product bundling Cares for customer’s sentiments towards religion and Culture Halaal meat processing in middle east Separate cooking area and equipments Product Elimination Removal of beef flavored products

Product:

Product Product variation: Variety in product ranging from burgers to softies McDonalds continuously innovates its products Product innovation: Adapting to Indian conditions creating the “CHICKEN MAHARAJA”

Product :

Product Menu : Veg , Non Veg , Frozen, Desserts, Beverages Successes : Fries, Happy meal, Pizza Mc puff, Big Mac Failures : fajita, carrot sticks, Mclean. etc

Price:

Price Policy which caters to Indian customers Quite affordable products Importance to brand and its integrity McDonalds has certain value pricing and bundling strategies such as happy meal, combo meal, family meal etc to increase overall sales volumes. “ Aap ke zamane mein , baap ke zamane ke daam ” This was to attract the middle and lower class consumers and the effect can clearly be seen in the consumer base McDonalds has now. Price Video

Place:

Place Located at prime locations Almost in all big cities Offers hygienic environment good ambience & great service Started giving internet facility Areas for children where they can play & enjoy with their family Spend some quality time together

Promotion:

Promotion Target customer – Children Promotion is both 'above-the-line' and 'below-the-line'. 'Above' is advertising that is directly paid for, such as TV and press adverts. 'Below' is other promotions such as special offers, value added and competitions. DDB Needham and Leo Burnett agencies appointed for the advertisement Description of Products on Paper Mats placed in the trays. The placing of the pamphlets and banners in and around the outlets 80-20 Menu Board Lucky Promotion strategies

Promotion:

Promotion Individual communication- word of mouth, peer group Mass communication- Advertisements & Child amusement activities at outlets, drives & campaigns Free distribution Of Children toys- with every happy meal Promotion Video Some of the most famous marketing campaigns of McDonalds are: You deserve a break today, so get up & get away- to McDonalds Aap ke Zamane mein , Baap ke zamane ke DAAM Food, Folks,& Fun I m Loving it

People:

People Each store headed by Restaurant Manager Responsible for daily operation and customer interaction Delivery crew member carries out basic tasks like taking orders, etc In touch with customer hence plays major role in customer satisfaction Stars provided to employees based on their performance to motivate employees Gives employees larger role in decisions Customer always comes first Fast friendly service Philosophy of quality, service cleanliness and value is the guiding force behind its service.

Organisation Chart:

Organisation Chart

Physical evidence:

Physical evidence The physical appearance affects not only the impression outsiders have of a business but also the way that business functions. Staff members Location & appearance Building maintenance Visible cues

Process:

Process Food manufacturing transparent to customers Kitchen walkthroughs Training to the licensees Invented the most efficient cooking equipment New methods of food packaging and distribution McDonald’s In India followed the same tradition McDonald’s has its own university Hamburger University- McDonalds centre of training and excellence

Service Blue Print:

Service Blue Print 30 Customer actions customer places order Receive order Line of interaction Crew member takes order Delivery of the order Onstage contact Employee actions Line of visibility Backstage contact Employee actions Line of internal interactions Back stage employee checks order Employees cleaning Table, etc Real time Preparation of the order Checking of order Central data base Support processes

Porters 5 Forces:

Porters 5 Forces Rivalry among existing firms Many small fastfood business Intense competition in the Indian Market with other MNC’s like Domminos , pizza hut, KFC Threat of new entrants- Low Hard to establish brand name for new entrants High cost of entry in the market High R&D costs Price Competition from chain restaurants

Porters 5 Forces:

Porters 5 Forces Threat of Substitutes- High There are many options in fast-foods to customers Customers could choose from Burgers to Pizzas to Beverages to noodles, etc Bargaining power of suppliers- Low McDonalds has gone into Backward integration and influences significant control over suppliers Bargaining power of customers- Medium McDonalds has to focus on value delivery to customers or else customers may switch

CRM:

CRM Feedback and suggestion forms available at each outlet Online feedback form for techno-saavy individuals Information about upcoming products provided in website Order through website Storage of all details like address, phone no, etc

Future Recommendations:

Future Recommendations Introduction of loyalty program for Indian customers Increase its product line, have more variety to choose from, to include more deserts and more items Expand their Happy Meal choices to attract and retain customers To educate about healthy lifestyle, removing misconceptions about fast foods among people Introduction of cafeterias serving premium and specialty coffees and other beverages and other products such as cakes, pastries etc in the existing McDonald’s.

Future Recommendations:

Future Recommendations Focus on gifts for all generations i.e. youth, kids’ especially senior citizen which is a completely new concept. Special promotions during festivals as Indians tend to spend more at such events. Try to sponsor college festivals. Work for social welfare of the society

Thank You!!!:

Thank You!!!

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