mcdonalds

The McDonald’s Story : 

The McDonald’s Story McDonald’s started in 1954, when its founder Raymond Kroc saw a hamburger stand in San Bernardino, California and envisioned a nationwide fast food chain. Today: world’s largest fast food chain serving 47 million customers daily. one of the most valuable brands globally worth more than $25 billion though the company has roots in the US, McDonald’s today has become an accepted citizen of the world.

Business Model: 

Business Model Franchise Model – Only 15% of the total number of restaurants are owned by the company. remaining 85% is operated by franchises. The company follows a comprehensive framework of training and monitoring of its franchises to ensure that they adhere to the Quality, Service, Cleanliness and Value propositions offered by the company to its customers.

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Product Consistency – By developing a sophisticated supplier networked operation and distribution system, the company has been able to achieve consistent product taste and quality across geographies.

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Act like a retailer and think like a brand McDonald’s focuses not only on delivering sales for the immediate present, but also protecting its long term brand reputation.

McDonald’s in India: 

McDonald’s in India McDonald’s entered India in 1996 . McDonald’s India has a 50-50 joint venture with Connaught Plaza Restaurants and Hard Castle Restaurants. Connaught Plaza Restaurants manages operations in North India while Hard Castle Restaurants in Western India . The company is now expanding to Tier2 cities like Pune and Jaipur.

Challenges in Entering Indian Markets: 

Challenges in Entering Indian Markets Re-engineering the Menu The vegetarian customer

Re-engineering the menu: 

Re-engineering the menu McDonald’s has continually adapted to the customer’s tastes, value systems, lifestyle, language and perception. Globally known for its hamburgers, beef and pork burgers. Most Indians are barred by religion not to consume beef or pork. To survive, the company had to be responsive to the Indian sensitivities. So it came up with chicken, lamb and fish burgers.

The Veg challenge: 

The Veg challenge India  huge population of vegetarians. To cater to this customer segment, the company came up with a completely new line of vegetarian items McVeggie burger McAlooTikki . The separation of vegetarian and non-vegetarian sections is maintained throughout the various stages.

Segmentation, Targeting and Positioning: 

Segmentation, Targeting and Positioning McDonald’s uses demographic segmentation strategy with age as the parameter. The main target segments : Children Youth Young urban family.

To attract children: 

To attract children Happy Meal (toys ranging from hot wheels to various Walt Disney characters) Play Place (children can play arcade games, air hockey, etc.) Birthday Parties Fun Days

To target the teenagers: 

To target the teenagers Aggressive pricing, Target AD’s, Facilities like Wi-Fi, Ambience, etc.

Family restaurant: 

Family restaurant When McDonald’s entered in India it was mainly perceived as targeting the urban upper class people. Always projected itself as the Family Restaurant Today it positions itself as an affordable place to eat without compromising on the quality of food service hygiene.

Family value meal: 

Family value meal

Marketing Mix: 7P’s: 

Marketing Mix: 7P’s Product Price Place Promotion People Physical evidence Process

Product : 

Product Veg menus Non- veg Menus Beverages Desserts

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kept its product depth and product width limited. totally different menu as compared to its International offering dropped ham, beef and mutton burgers from the menu.

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India is the only country where McDonalds serve vegetarian menu. Even the sauces and cheese used in India are 100% vegetarian

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Continuously innovates its products according to the changing preferences and tastes The recent example is the introduction of the Chatpata McAlooTikki burger

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A new product range to target the customers in the morning Breakfast Menu

Product strategy:: 

Product strategy: Fast-serviced meal Can be considered as the driving force Healthy food Fat free food Nutritional value displayed Quality Very efficient supply chain management products and suppliers are used on a “first-in, first-out” basis to ensure freshness. On an average 20 different quality checks are carried out before any product is served to our customers. Respect for the Indian Customs and Culture Introduction of vegetarian line only vegetable oil is used as a cooking medium The cheese and cold sauces used are 100% vegetarian.

Price : 

Price McDonald’s leverages economies of scale to minimize costs while maximizing value to customers. Targeted to Middle Class Earlier perception Upper Middle Class Now with aggressive Pricing it has targeted Whole Middle Class

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value pricing and bundling strategies happy meal, combo meal, family meal etc Specifically priced product for every segment it targets

Place : 

Place Strategic location Nearly 50% of U.S.A is within a 3 minute drive from a McDonald’s outlet. Offers Hygienic environment, Good ambience Great service. Internet facility Play Areas

McDelivery: 

McDelivery Started free home delivery to penetrate further Making IT reach the customer rather than customer coming to it

Promotion : 

Promotion Uses every Medium TV, Print, Hoardings Bus Stops Internet Spends 30% of its budget on ads Rs 400-500 mn in 2009 Focuses its ad campaigns on its overall experience and active life style.

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Its ads show happiness. And relates its product with happiness that it brings through low price, hygiene, quality, fast service. Some of the most famous marketing campaigns of McDonald’s are: You Deserve a break today, so get up and get away- To McDonald’s Aap ke zamane mein , baap ke zamane ke daam Food, Folks, and Fun I’m loving it Nowadays its into Social Marketing

Twitter Strategy: 

Twitter Strategy Establish online hub for ongoing and consistent communication to customers, media & influencers Demonstrate that McDonalds listens to its customers & is open to feedback Use insight to share timely customer feedback on important marketing initiatives

McDonalds- Social Brand: 

McDonalds- Social Brand Ranks 32 out of a list of “ 100 Most Social” brands

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Promotional activities keep on happening Tray mats ensure that no new scheme gets unnoticed 80:20 Menu Board

People : 

People McDonald continuously does Internal Marketing. It includes hiring, training and motivating able employees. Gives stars as per their performance It understands the fact that a happy employee can serve well and result in a happy customer Gives employees larger role in decisions. Fast & friendly service The punch line “ I’m loving it” is an attempt to show that the employees are loving their work at McDonalds and will love to serve the customers.

Physical Appearance: 

Physical Appearance Every care given for: Cleanliness Efficient Menu display Ambience Transparency Speed Quality Packaging

Process : 

Process Food manufacturing transparent to customers. 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. Spent Rs. 50 crores on market research.

PLC in McDonalds: 

PLC in McDonalds To counter these changes McDonalds has continuously introduced new products and has phased out the old ones which were at the decline stage of their PLC. For eg . French Fries A perfect example of revitalizing a product in decline phase

French Fries: 

French Fries an important part of the McDonalds menu worldwide But it was in the stage of decline and was actually not generating proper return. To revitalize it, a new variant was introduced namely Shake Shake Fries

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Being served with chatpata spice mix resulted in increase in the sales of French Fries elevated it from to the decline stage.

Swot Analysis: 

Swot Analysis

Swot Analysis: 

Swot Analysis

CSR : 

CSR Instituted a special fund to support green movements in Delhi. In Mumbai, it sponsors various community-related activities—such as “keep your city clean” Organizes McDonald’s Spotlight, which is an annual interschool performing arts competition Celebrates World Children’s Week from November 14-20 & raise funds for children

CSR : 

CSR Blue Dot initiative that supports educational programs for the girl-child Sponsors Pulse Polio program Sponsors & promotes various programs for children

Thank You: 

Thank You