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Strategic Food and Beverage

Assessment 2: Individual Report

Roll.No:21386057
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Executive Summary:

This report aims to analyse the strategic operations follow in the type of
operation which is opted (Mac Donald’s) with information about its
characteristics, target market, evolution of the consumers, marketing
strategies and finally giving recommendation, which could help the firm
in future after analysing where the firm lacks, relating with the
observation done.
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Contents

Topics Pg. No.

Introduction 4

Mac Donald’s and its characteristics 4

Target Market 5

Evolution of Consumers in Restaurant 6

Marketing 7

Recommendations 8

Conclusion 8

Bibliography 9

Appendices

Appendix A – Checklist of Mac Donald’s 11

Appendix B: Image of Composition of the food service industry 12

Appendix C: Image of market segmentation of the food service industry 13

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Introduction:

The fast food restaurant is chosen for the focus of this research because of growing importance
of this sector in India. A fast food restaurant also known as a Quick Service Restaurant is a kind
of restaurant with both fast food and minimal table services. It is a fast food restaurant. Foods are
typical in fast food restaurants and are offered from a restricted menu; are cooked in bulk and
kept in a warm state; are finished and packaged to order and are generally ready to take,
although seating can be provided. The food is served in a fast food restaurant.
The population of India is around 1,2 bn, but it only has a little over 2,700 chain of fast-food
stores, which, as Euromonitor International says, most people do not reach. Quick food is still
largely spread over the largest cities. India is also home to a new Prime Minister, the vocal
advocate of increasing foreign direct investment, Narendra Modi.
The market of India is expected to grow as the world's younger population and consumer
preferences evolve. "I would have expected it to be a revolution," Kaul said. (CEO of Jubilant
Food Works).
The illustrated image of composition and market segmentation of the food service industry is
illustrated in appendix B & C respectively.
The majority of the food service industry consists of non-organized food outlets while only up to
20% of the organized sector is made up of half of QSRs. It contains all kinds of restaurants with a
variety of fast food and snacks. As shown below, it is further divided

The QSR industry has grown with different branded and unbranded outlets across all parts of the
country, with some of them holding their foot in a specific area of the country, whereas most
brands have a presence in India.
The Indian food service industry is expected to grow by 11% to 16% by 2018 and the Indian fast
food market grows by 25% to 30% annually. Furthermore, foreign fast food chains increase their
presence in the country aggressively. Global brands, including McDonalds, KFC and Dominos,
dominate the market today, represent about 40% of the new businesses and account for 60% of
sophisticated technology, large stores, and Brand Image.

Mac Donald’s and its characteristics

One of the largest retail food service corporations is McDonald Fast Food Company. McDonalds
operates about 30 000 restaurants in over 199 countries. The hot and fresh fried, hamburgers,
burgers and drinks are well known. In the United Kingdom, most McDonalds are franchise
operators. Mc Donald’s is able to compete effectively in an already competitive industry with
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strategic focus and organizational management and thus establish a competitive base in the
industrial environment and enjoy a niche market for their business. Customers go to its outlet
daily due to McDonald's ability to build a corporate image that increases people's familiarity with
the fat food culture. (McDonalds Corporation, 2010). As a result, McDonalds uses an adequate
customer base as a strategy for market entry. McDonald's not only penetrate the market, but also
expand their market size together with advertising companies that give the brand a picture.
Consequently, McDonald builds on a number of strategies to remain competitive in the sector and
reach its company and organizational goals.

According to Euromonitor, McDonald's tweaked approximately 70% of its Indian market menu. In
a country with religious meaning, cows were left out in order for a people to have spicy food with
options such as McSpicy Paneer and Chicken Maharaja Mac. That meant staying away from
beef. Some 100% vegetarian restaurants have been opened as well. (Any 70% of India's
population is non-vegetarian, contrary to perceptions.)
"Mac Donald's location is a strategy for opening restaurants in the world's most popular spot with
the best of work." As Appendix A states, the buildings around it are combined with a large
staircase and marble walls. The outside looked better than the inside. As Appendix A says, during
the entry there was no such gestures or a smile. "McDonald’s welcomes clients from every
culture, age and background with a warm smile and gestures. "McDonald's encourages an ethical
obligation, as stated by Stephanie Dube Dwilson, to be in perfect care in a friendly atmosphere for
all our customers" As stated in Appendix A, employees were not properly clothed and uniformed.
"The light quality in the restaurant is much better; the LED tubes give a brighter, more crisp light
which people love," Eddie leligdowicz (2012) explains. As appendix A says the lightning was dim
and even few lights didn't work. "It was our menu that was located. This means that we are not
only seen as a brand international, but also as a brand that Indians are comfortable with," Jatia
said. But as appendix A says the menu has been highly varied and the menu items have not
been selectable. "Food is central to our company, and we pride ourselves in serving our
customers ' well-known, fun-to-eat favourites. We constantly improve our food, while introducing
new products by setting ever greater goals for taste and quality. (macdonalds.com). But as per
the appendix A The quality of the food was pathogens, regular McChicken was ordered with
added cheese and bacon, chicken brown coloured that was not fresh. "With McDonald's mobile
app, customers can already place orders and pay in the app, as mobile orders become more
widely available” (macdonalds.com). Although, the payment was fast.

Target Market
McDonald's main target customer includes parents, kids, business customers and teenagers with
small children. Maybe McDonald's marketing to children and to parents of young children is the
most obvious marketing. Ronald McDonald was initially launched in 1963 and became a critical
part of the ongoing business of young children. Parents like to visit McDonald's because it is a
treat for the children and the children like the cartoon. As part of their core business, McDonald's
targets business customers also. During workdays, corporate customers may stop and reliably
have good food and quick service. McDonald's marketing is also aimed at adolescents. The value
menu of young people is particularly attractive, and McDonald's markets make their restaurants a
cool place for meeting and working with their friends.
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McDonalds is a well-known Fast Food industry market leader and better known as the' Burger'
industry. Marketing for McDonald is aimed at everyone and has no select audience. The
company claims that their restaurants offer meals for children, a place to relax with free Wi-Fi for
adults, and a quick breakfast for those in a hurry in the morning.
"They have been in the in the in the in the in the in the in the in the process of redesigning the
restaurants in such a way as to connect the brands and and the young segment, which takes
place in phases. They're bringing these restaurants into line with the needs and sensibilities of
young people and are also making them modern. Said Bakshi (MD and joint venture partner,
McDonald's)
Jatia said, "Throughout their efforts to make the food more affordable and to add more filling fare,
they have introduced the spicy range of McDonald's offers specifically for our young adults target
group. Their international McFlurry dessert, extended menu and on - the - go breakfast are
aiming to be relevant to the market place today where they offer a large selection.
McDonald's main target client includes children's parents, young children, business clients and
teens. Maybe McDonald's marketing to children and the parents of young children is the most
obvious marketing. First introduced in 1963, Ronald McDonald was a major part of his on-going
business and marked the beginning of his focus on young children. Parents like to visit
McDonald's because children enjoy the cartoon as well as the atmosphere for children. As part of
their core business, McDonald's targets business clients as well. During the workday, business
customers can stop and expect fast service and good food constantly. McDonald's adolescents
are also a major target for marketing. The value menu is especially appealing to young people
and McDonald's stores are a cool place to meet and work with friends. (The Times 100).

Evolution of Consumers in Restaurant

India's leading property consultant today announced the results of its research into India's
growing prominence in the F&B sector. In the last few years, increasing urbanisation, rising
available incomes, socialization trends, nuclear families and increasing consumption have refined
the way Indian population settles in urban areas, according to the report, entitled–Food for
Thought. Recognizing the potential for F&B growth across the country, both globally and
nationally, their services have been redefined and everything is done to attract Indians to average
diner.
"Creasing globalization, growing exposure to international trends and kitchens have brought
about transformative transformation of the food & drinks segment for India during recent years,"
says Anshuman Magazine, Chairman, India and South East Asia, CBRE. The real estate sector
is having a positive impact with the allocation of restaurant spaces on the highways and
organized retail developments.

A new survey of children aged between five and 15 has shown that children's favourite places to
eat are home, restaurants and schools. The taste remains the highest factor in their choice of the
preferred environment, wherever possible, based on research carried out by the Chicago - based
Y - Pulse LLC.
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Y-Pulse researchers discovered how social interactions affect kids ' preferred food choices in their
study of children, tweens and adolescents throughout the country. Many of the younger children
interviewed said that they enjoy dinner at home because their parents cook well. Elder children
like tweens and young people meanwhile said they want to eat at fast food restaurants and
schools with their friends.

Other initiatives supported these stories. The company's one-minute service guarantee tried to
strengthen its reputation for fast, friendly and accurate service, and has also run moms and
children's events in-store, says Singhal, "Pumping sauce from the sauce machine has become
brand rituals for children who sit on Ronald McDonald bench."
"The pumping of sauce from a sauce machine has become branded rituals for children sitting on
a Ronald McDonald bench," Singhal says. "K.V. "In the launch stage, the communications
focused solely on building brands and product relevance, with brands ' relevance to families and
children very high." Later on, McDonald's realized there was untapped potential in a youth
audience that thought McDonald's was costly and particularly for children, "added Sridhar,
national creative director, Leo Burnett, the India agency.

Sridhar says "They launched a value menu for a younger audience in 2004 with the Happy Price
Menu. For the first time McDonald's India saw an upsurge of younger consumers and people
from the socio - economic class B entering our stores." They realized that Indian customers were
price sensitive and although it succeeded in establishing a sensitivity, Indian customers were
constantly aware of it.

Marketing

McDonald's has conducted a series of marketing and publicity campaigns that are very
successful in ensuring that our clients are all aware of our offers, promotions and good work. TV,
print, display, radio and online advertising are included.
Staff should be friendly and offer a "smile service." They concentrate on satisfying customers
(short wait times, hot food, etc.). Ray Kroc was known to offer refunds to customers waiting
longer than 5 minutes and say comments to workers like “if you've got time to lean, you've got
time to clean” McDonald's Operations Competitive Strategy focuses on cost, speed, and nutrition.
The priority is to "satisfy" the customer.

Ray Kroc who subsequently taken over McDonald's had two different drive windows (one payable
and one food - producing). This led to a faster drive flow, which reduced waiting times.
McDonald's has a special focus on cleanliness–clean bathrooms in particular. McDonald's admits
that people will dine in clean and orderly environments and recognizes that an unclean restaurant
and/or bathroom has a negative effect. McDonald's has a strict safety scheme and standards for
food quality. Chicken McNuggets were asked, which McDonalds debunks via their video.

At this time, their brand would be "I'm really in love" and weave it through their publicity. One of
McDonald's main things is that they focus on building customer memories. This phrase' I'm lovin'
was so influential that it is a part of North Americans ' vocabulary. One example is how Mac
Donald uses his tag lines in their marketing to play with the theme "I'm lovin" and how they can
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overcome hate by replacing hate in the recent commercial "conquest hate" of Big Mac.” - It's a
publicity where fans of Montreal the last person they'd like to hug, Boston Bruins ' Zdeno Charra.
To have a slogan is easy, to remind people of the logo or brand and to make a positive picture of
your company, and McDonald's does so perfectly.
McDonald's uses Branding and Co - Branding with well - known corporations in their marketing
(when both companies work together to market their products and services). McDonald's has
found strategic ways of collaborating with major companies to market their restaurant:
HASBRO Monopoly Game is a beverage supplier that co - branded (who is commonly known
worldwide), Walmart (McDonald's are available in 314 Walmart shops in Canada), Walt Disney
(Happy Meal toys). It is important to note the fact that McDonald's no longer works because they
are concerned about childhood obesity and don't want quick - food, TY Beanie Babies – Happy
Food Miniatural Beanie Babies, Happy Food Toy transformers, the NBA themed cups, toys and
even Michael Jordan named burgers McJordan (Michael Jordan Cups, Dennis Rodman Cups
where your hair will change, depending on temperature), NFL – McDonald's signed up for the
official sponsor of the restaurant and created competitions, for instance "sweepstakes" for
pictures of a thief, happy meal - toys and contests for the sweepstake - taking customer's to win
tickets for the superball, NASCAR – McDonald's have sponsored several NASCAR cars and
other Olympic sponsorship cups. Olympic collectible cards.

Recommendations

 Staff should be well-groomed, and professionalism should be maintained in the premises.

This is the obvious factor, guest notices.

 Mac Donald’s marketing strategy attracts the specific segment of customer i.e., but it
should appeal all the customer profiles to increase sales and revenue.
 The staff were not holding the plate steadily while carrying with wrong form and gestures.
The staff should be well trained because this could lead to serious mis happenings.

Conclusion:
The discussion above shows that the McDonalds strategic management plan has placed
McDonalds as the India’s largest fast-food company. So, its business model is obviously different
from other fast-food chains. One of the major drawback of McDonalds ' is the food preparation
system, the food quality founded was degraded. The staff founded to be un-professional and
ungroomed. The place was not hygienic and sanitised properly. The marketing strategies
founded to be old and un-effective for further growth. The discussion on the strategic thinking and
management of McDonalds concludes and recommendations are given related to human
resource and marketing which If follows can lead to success of the firm.
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Bibliography
 https://www.ukessays.com/essays/business/concepts-of-operations-
management-to-fast-food-industry-business-essay.php
 Binkley, J. (2018). Nutrition and Food Choice: Home vs. Restaurants. Journal of Consumer Affairs.

 Concepts of Operations Management to the Fast Food Industry. [online] Available at:
https://www.ukessays.com/essays/business/concepts-of-operations-management-to-fast-food-
industry-business-essay.php [Accessed 16 Mar. 2019].

 Corporate.mcdonalds.com. (2019). McDonald's - Official Global Corporate Website. [online]

Available at: https://corporate.mcdonalds.com/corpmcd.html [Accessed 16 Mar. 2019].

 Customer Relationship Management. [online] Research-Methodology. Available at:

https://research-methodology.net/mcdonalds-segmentation-targeting-and-positioning/a [Accessed
16 Mar. 2019].

 Food for Thought - The evolution of India’s F&B segment: CBRE report. [online] Available at:
https://www.cbre.co.in/en/about/media-centre/food-for-thought [Accessed 16 Mar. 2019].

 M. Dubas, K. (2017). An exploratory analysis of quick service restaurants using tidyverse tools in R.
Innovative Marketing, 13(2), pp.23-40.

 Markets, R. (2019). India Fast Food Market Report 2015 - 2020: Market is expected to grow at a
CAGR of 18%. [online] Prnewswire.com. Available at: https://www.prnewswire.com/news-
releases/india-fast-food-market-report-2015---2020-market-is-expected-to-grow-at-a-cagr-of-18-
505221141.html [Accessed 16 Mar. 2019].

 Mcdonalds.com. (2019). McDonald's Menu: Our Full McDonald's Food Menu | McDonald's. [online]
Available at: https://www.mcdonalds.com/us/en-us/full-menu.html [Accessed 16 Mar. 2019].

 Mcdonald's Case Study:: Business Case Study. [online] Available at:

https://www.123helpme.com/mcdonalds-case-study-view.asp?id=166353 [Accessed 16 Mar.
2019].

 McDonald's says youth are primary target consumers. [online] Available at:
http://info.shine.com/article/mcdonalds-says-youth-are-primary-target-consumers/6850.html
[Accessed 16 Mar. 2019].

 McDonald's says youth are primary target consumers. [online] Available at:
http://info.shine.com/article/mcdonalds-says-youth-are-primary-target-consumers/6850.html
[Accessed 16 Mar. 2019].

 Mcdonalds.com. (2019). McDonald's: Burgers, Fries & More. Quality Ingredients. [online] Available
at: https://www.mcdonalds.com/us/en-us.html [Accessed 16 Mar. 2019].

 Sahud, H., Binns, H., Meadow, W. and Tanz, R. (2006). Marketing Fast Food: Impact of Fast Food
Restaurants in Children's Hospitals. PEDIATRICS, 118(6), pp.2290-2297.

 Swimberghe, K. and Wooldridge, B. (2014). Drivers of Customer Relationships in Quick-Service

Restaurants. Cornell Hospitality Quarterly, 55(4), pp.354-364.
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 Uzych, L. (1996). Fast food restaurants. Geriatric Nursing, 17(4), p.192.

 Us-uniforms.mcdonalds.com. (2019). McDonalds. [online] Available at: https://us-

uniforms.mcdonalds.com/home [Accessed 16 Mar. 2019].

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https://www.quora.com/What-is-the-target-market-of-McDonald-s [Accessed 16 Mar. 2019].
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Appendices

Appendix A – Checklist of Mac Donald’s

Checklist of Mc Donald’s
Ratings: 1 = Very Bad, 2= Bad, 3= Fine, 4= Good, 5= Very Good, 6= Excellent

1 Outdoor Appearance of the restaurant Ratings (1-5)

Branding 3
Strategy of Advertising 4

2 Welcoming of the Guest

Gesture 1
Etiquettes 2

3 Professionalism of Staff

Uniform 2
Hygiene 2

4 Restaurant Atmosphere

Music 2
Lightning 2
Interior Décor 3
Furnishing 3
Washroom 3

5 Menu Presentation
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Menu design 4
Attractiveness 3
3
Variety of the Menu
4
Prices of the Dishes

6 Order Received

Presentation of the Dish 3

Temperature of food 2
Taste 2

7 Making Payment
Time Delay 4
Gesture of Staff while leaving 4
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Appendix B:
Illustrated Image of Composition of the food service industry
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Appendix C:
Illustrated Image of market segmentation of the food service industry