Professional Documents
Culture Documents
MC DONALD'S
MC DONALD'S
UNIVERSITY OF DELHI
PROJECT REPORT
ON
Mc Donald’s
1
Contents
2
Chapter5. Findings & analysis
- Findings based on questionnaire
Chapter7. Annexure
- Sample questionnaire
- Bibliography
3
Declaration
I, SAIDINGLIANA SAILO, declare that the project work entitled study of “ Mc DONALD’S ”
under the guidance of “ Ms. DHANIRAM” in the partial fulfillment of requirement for the award
of Bachelor Of Commerce honors from Ramjas College, University Of Delhi, New Delhi.
4
Acknowledgement
I wish to extend sincere thanks to my mentor Dr. Dhaniram for his dedication, invaluable
guidance, scholarly support and commitment of time throughout this process. He remained a
source of encouragement throughout the course of this study and without her help the project
could not have taken its present form.
I am equally indebted to all my faculty members for their timely cooperation and valuable
suggestions.
Saidingliana Sailo
14056204033
B.com(hons.)
Ramjas College
University of Delhi
5
Introduction
With the increase in spending capacity of Indian Middle Class Society, the mind set of
consumers have changed in relation to recreational activities.
Everybody wants to spend quality time and is ready to pay for good service provided.
More frequently people move out to eat and spend time; this has created scope for many fast
food chains. But along with that it has created competition among different food chains.
Hence each and everyone play a major role in attracting customers. The trend can be seen by the
increasing number of food chains.
That is why this topic was chosen for further study as this particular industry is fast becoming
very competitive.
This project comprises of the analysis of Indian Fast Food Industry and competition that is
defining the trend, different companies and various players are analyzed from their competing
Strategies, Objectives, Strengths and Weakness.
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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 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.
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Research Methodology
The services provided by McDonalds have been assessed on the basis on following dimensions
of service quality:
- Tangibles: appearance of physical facilities, equipment, personnel, and communication
material
- Reliability: ability to perform dependable services accurately
- Empathy: Provision of caring, individualized attention to customers
- Responsiveness: the willingness to help customers and to provide prompt service
- Assurance: the knowledge and courtesy of employees and their ability to convey trust and
confidence.
Data collection
In this project both primary data as well as secondary data are used.
PRIMARY DATA
Primary data used in this project is collected through two methods, namely, QUESTIONNAIRE
METHOD and DIRECT PERSONAL INTERVIEW METHOD. Both these method proved to be
great help in getting the required information.
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SECONDARY DATA
It is not possible to collect firsthand information for each &everything so, secondary data from
various sources like Internet and Indian Info line website were used.
Because it was not possible to consider each and every person, PROBABILITY SAMPLE or
RANDOM SAMPLE was taken.
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Industry Overview
(Fast Food Industries)
Introduction
The 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 are because all of them see tremendous
potential in for this type of business.
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.
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.
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.
- For most, targeting children seems the right strategy.
- Advertising is popular.
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
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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.
Hong Kong 61 %
Malaysia 59 %
Singapore 50 %
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.
McDonald’s is most visited in Australia (84%)
KFC is most visited in China (42%)
Pizza hut is most visited in India (22%)
Major players
In India the major players which constitute the Indian fast food industry includes Indian as well
as Multinational companies.
These are:
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 parlors, pastry shops and
food processing plants in India.
The restaurants serve a wide variety of multi-cuisine foods, both western and Indian including
pizzas, burgers, chana kulcha, saag-roti and much more.
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2. Pizza hut
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 f\of ice-cream
sundaes.
3. Domino’s pizza
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.
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.
It was first company to brand namkeens. And also first company to offer traditional Indian items
like ‘panipuri’, ‘chatpapri’ and so on.
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,Sweet dishes.
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Company
profile
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McDonalds India
Introduction
As a leader in QSR (Quick Service Restaurant) 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.
# Home delivery (Mcdelivery™ -2004); providing even more convenience to our customers.
# 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 .
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History
1996 First McDonald’s restaurant opened on 13 oct, at basant 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, up
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Achievements
McDonald's India - A decade of quality service
For its unparalleled benchmarks established in the QSR sector McDonald’s India has been
bestowed with many prestigious awards. To name a few:
# Most respected company for four consecutive years, 2003-2007 in the food services sector by
business world
# Most wanted brand of the year award 2003 & 2004 by franchising holdings India ltd.
# Star retailer – the consumer way, food services retailer’ of the year 2006 by franchise India
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Key Facts ~ McDonald’s
Industry Restaurants
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Customer Satisfaction
Through
4 P’s
Of
Marketing Mix
Marketing Mix
“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 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. It deals with the dimensions of product line, durability and
other qualities. 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
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(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. In practice, it is very difficult to fix
the right price. 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 of 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.
Campaign requires an effective blending of promotional inputs so as to optimize the
expenditure on each.
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 the determination of distribution mix a firm has to make decision with
regard to the mode of transporting of goods to middle-men, use of company vehiclesor both.
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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.
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
Desserts
Add-ons
BeveragesDessertsAdd-ons
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.
quest.
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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. Our immaculate
standards of quality allow for nothing but the best to reach your tray.
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.
This matching of products to the requirements of competitionand 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.
Trading down refers to the addition of lower-priced products to the existing higher priced
product to boost total sales.
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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.
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.
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 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.
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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. 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
50 restaurants in West & South 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.
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.
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.
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
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Bakshi. Which explains the chain's new advertising tack. 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. The objective will be to continue to
position McDonald's as a comfort zone for young families.
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.
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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Value Meal
Value Meals consist of a burger, fries and a drink and are available in 3 sizes:
Small, Medium and Large.
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 McShake by paying the difference.
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FindingsAndAnalysis
population
30
25
25
20
15 population
10 8 7
5 5
5
0
once a more than once a once a less than
week once a fortnight month once a
week month
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Question2. Restaurants preferred by customers
Restaurant No. of
preferred persons
McDonalds 17
Pizza hut 15
Domino’s 10
KFC 3
Nirula’s 5
Restaurants preferred
Nirula’s 5
KFC 3
Domino’s 10
Pizza hut 15
McDonalds 17
0 5 10 15 20
no. of persons
17 out of 50 persons surveyed preferred McDonalds over any other restaurant, i.e. 34%.
15 persons preferred Pizza hut, i.e. 30%.
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.
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Question3. Rate McDonalds on the following attribute scale:
35
30 V-Good
25 Good
20
Above Avg.
15
10 Average
5 Poor
0
d od e r y rs ry
f oo f fo g ien éco one ee l ive
of y o h y e /D r m of p de
e t l
a st ri e e ra ien c e f o ss s of
e
T Va en mb al u l in n es
G A V nd pt
r ie m
F o
Pr
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Question4. Is McDonalds ambience comfortable and well provided?
Views No. of
persons
Strongly Disagree 1
Disagree 1
Neither agree 7
Agree 38
Strongly Agree 3
45
40
35
30
25
No. of pers ons
20
15
10
5
0
S trongly Dis agree Neither Agree S trongly
Dis agree agree Agree
Regarding the comfort ability of McDonalds, 38 persons out of 50 surveyed agreed that its
ambience is comfortable.
7 persons neither agree nor disagree.
3 persons strongly agreed.
1 person each disagreed.
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Question5. Does McDonalds maintains consistency in its taste and quality?
Views No. of
persons
Yes 43
No 7
No. of persons
No
14%
Yes
86%
This question shows whether McDonald 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.
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Question6. Are you satisfied with the prices charged by McDonalds?
Views No. of
persons
Very satisfied 9
Satisfied 35
Not satisfied 6
6 9
0
1
2
3
4
5
35
31
Question7. Do you find the promotional measures adopted by McDonalds
effective?
Views No. of
persons
Very effective 7
Effective 27
Not effective 16
30
25
20
10
0
Very effective E ffective Not effective
This question deals with whether the promotional measures adopted by McDonalds are effective
or not.
Out of 50 persons surveyed 7 persons find it very effective, 27 persons found it effective while
16 persons doesn’t find it effective.
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Question8. 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
7
0
1
5
2
3
6 4
32
5
33
Question9. How would you describe your eating experience at McDonalds?
Excellent 4
Very good 17
Good 25
Poor 4
25
20
15
0
E xcellent Very good P oor Good
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Conclusions And Recommendations
Conclusions
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 Wimpy.
McDonalds is also preferred over Pizza hut, Domino’s and KFC.
It has been rated as ‘very good’ by its customers in terms of Taste and Variety of food and
promptness of delivery.
Summarising all points we conclude that McDonalds is growingfastly by satisfying its customers
by providing quality and maintaining consistency.
Recommendations
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Annexure
Sample Questionnaire
Q2. Name some of the fast food chains that come to your mind?
a. _________________________
b. _________________________
c. _________________________
d. _________________________
e. _________________________
Q3. Rank the attributes for McDonalds which are key to a fast food restaurant?
1- most important 9- least important
Yes No
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Very effective Effective Not effective
37
Bibliography
Books referred
Articles referred
Websites referred
- www.wikipedia.com
- www.mcdonalds.com
- www.mcdonaldsindia.com
- Websites of different fast food restaurants
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