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Blackbook Project On Mcdonalds Marketing
Blackbook Project On Mcdonalds Marketing
Blackbook Project On Mcdonalds Marketing
McDonald’s
UNIVERSITY OF MUMBAI
PROJECT ON
McDONALD’S
SUBMITTED BY
PROJECT GUIDE
PROF.MRS.MAHALAKSHMI SANKAR.
SEMESTER V
(2009-200!
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McDonald’s
UNIVERSITY OF MUMBAI
PROJECT ON
McDONALD’S
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DEEP NANDKUMAR KADU.
PROJECT GUIDE
PROF.MRS.MAHALAKSHMI SANKAR.
SEMESTER V
(2009-200!
V.E.S COLLEGE OF ARTS" SCIENCE # COMMERCE"
SINDHI COLONY" CHEMBUR - $000%
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McDonald’s
DECLARATION
@@@@@@@@@@@@@@
S*&,+*’5 S)7*&/+
DEEP NANDKUMAR KADU.
N+ 1 S*&,+*
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McDonald’s
CERTIFICATE
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M/5.A.M/*).
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McDonald’s
ACKNOLEDGEMENT
It gives me great pleasure to submit this project to the University of Mumbai as a part of
curriculum of my M! course" I ta#e this opportunity $ith great pleasure to present before you
this project on =McD,’5> $hich is a result of co%operation& hard $or# and good $ishes of
many people"
'o $ords can ade(uately e)press my sincere than#s to all those $ho have help me in ma#ing
this project a success"
*lso I ac#no$ledge my deep sense of gratitude to$ards my guide P/1+55/ M/5 M3?53)
S?/ .
I $ould also li#e to ta#e this opportunity to than#s M/. B3/*.K/)53.V)*8 R+5*&/*
M7+/ (K3;&/ S*/+!.
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McDonald’s
EECUTIVE SUMMARY
McDonald’s is a globally successful fast%food restaurant" .rom the time of its birth it has
gain enormous success and is gro$ing at the international level" /he po$erful entry through
franchisee system the standardi0ation and adaptation strategy play an important role in gaining
the huge success of McDonald’s and brand image of McDonald’s"
McDonald’s strategy of standardi0ing their products on its preparation& techni(ues of
presentation along $ith the adaptation strategy has created a difference in McDonald’s as
compared to that of its competitors"
Mar#eting being my subject interest #no$ing the strategy of one of the most successful
company $ill really help me out" /hus& I have chosen McDonald’s as my study of subject for
my 1 mar#s project in /M!" /his has really helped me out to #no$ lots of mar#eting
techni(ues and practically understand the McDonald’s strategy of standardi0ation and
adaptation"
STUDY
In the project focus has been made on McDonald’s franchisee in India" /he challenges
faced& their target mar#et& segmentation strategies" /he supply chain of the company and its
ability to provide best (uality food at the best cost" /he - ’s of McDonald’s and the various
schemes provided by the company to its employees $hile $or#ing in McDonald’s and even after
their retirement from the company" McDonald’s as a service industry its life cycle is also studies"
/he present strength and $ea#ness of the company and the future opportunities and its future
threats are also study for better analysis of McDonald’s mar#eting in India"
CONCLUSION
!tudying McDonald’s and its mar#eting system has helped me a lot in understanding the
mar#eting subject in a better manner" *nd it $ill be helpful for me in near future"
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McDonald’s
I'D67
TITLE PAGE NO.
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CHAPTER V - MC EMPLOYEE
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McDonald’s
CONCLUSION
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McDonald’s
I'/89DU:/I9'
/he McDonald’s :orporation is one of the most successful global restaurant chains
around the $orld" /hey have used effective management and global e)pansion strategies to enter
ne$ mar#ets and gain a share of the foreign fast food mar#et" McDonald’s has achieved this
enormous success& its best practices in the global food industry& international gro$th trends and
challenges& and various lessons that have been learned from their e)pansion in foreign countries"
/his sho$s ho$ McDonald’s creates both customer and brand loyalty for their products and
services"
In 1@3A rothers Dic# and Mac McDonald open a hot dog stand called the *irdrome at
the airport in Monrovia& :alifornia E in 1@4 the brothers move the *irdrome building to !an
ernardino& :alifornia& $here they open the first McDonaldFs restaurant" *lthough McDonaldFs
did not invent the hamburger or fast food& its name has become nearly synonymous $ith both"
/he McDonaldFs <olden *rches logo $as introduced in 1@52" It $as created by Gim
!chindler to resemble ne$ arch shaped signs on the sides of the restaurants" ;e merged the t$o
golden arches together to form the famous FMF no$ recogni0ed throughout the $orld" !chindlerFs
$or# $as a development of the styli0ed FvF logo s#etched by .red /urner& $hich $as conceived
as a more stylish corporate symbol than the !peedee chef character that had previously been
used" /he McDonaldFs name $as added to the logo in 1@5?"
McDonaldFs has its familiar golden arches logo, McDonaldFs has 31&??5 restaurants
$orld$ide serving ig Macs& :hic#en Mc'uggets& salads and .rench fries" Most restaurants
offer drive%thru service and some suburban locations offer outdoor playgrounds for children"
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McDonald’s
1
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McDonald’s
;I!/98
/he first McDonaldFs restaurant $as located in !an ernardino& :* in 1@-4 and operated
by t$o brothers Dic# and Mac McDonald" 8ay >roc& a mil# sha#e machine salesman& thought
the restaurant $as great and purchased the rights from the brothers" >roc opened his first
McDonaldFs restaurant in Des laines& I+ in 1@-- and preached cleanliness in restaurants"
McDonaldFs $ould gro$ (uic#ly as it signed on franchisees to open restaurants around the
country" McDonaldFs $ould go public in 1@5-"
/he ig Mac $as introduced system $ide in 1@5? and $as the brainchild of Gim
Delligatti& one of 8ay >rocFs earliest franchisees& $ho by the late 1@5s operated a do0en stores
in ittsburgh" /he 6gg McMuffin $as developed by o$ner operator ;erb eterson in 1@A3"
/he site of the McDonald brothersF original restaurant is no$ a monument" Cith the
e)pansion of McDonaldFs into many international mar#ets& the company has become a symbol of
globali0ation and the spread of the *merican $ay of life" Its prominence has also made it a
fre(uent topic of public debates about obesity& corporate ethics and consumer responsibility"
In 2A& the company had record revenues of 22"? billion& a @H increase from the
previous year" 'et income $as 2"3@ billion" McDonaldFs sold the oston Mar#et restaurant
chain in 2A and o$ns a sta#e in :hipotle Me)ican <rill" In 2A& the :ompany completed the
sale of its businesses in ra0il& *rgentina& Me)ico& uerto 8ico& =ene0uela and 13 other
countries in +atin *merica and the :aribbean to a developmental licensee organi0ation" *n
estimated 1H of all $or#ers have once $or#ed at McDonaldFs in their lifetime"
11
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McDonald’s
.8*':;I!66!
12
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McDonald’s
McDonaldFs does business in more than 3& restaurants in 11@ countries around the
$orld serving 4A million customers each day" In many countries around the $orld it does not
have a presence and its current strategy is to focus on the mar#ets $here it does not do business"
'o firm date has been established for the opening of ne$ mar#ets" In certain mar#ets
McDonaldFs have a presence but it is not see#ing franchisees and it has included instructions
regarding those mar#ets" McDonaldFs sincerely appreciate the customers e)pressed interest in
McDonaldFs and their continued patronage of our restaurants"
M:D9'*+D’! I'DI*
/he Indian beginning
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McDonald’s
* -%- joint venture partnership bet$een McDonald’s :orporation U!*K and t$o
Indian business& McDonald’s began its journey in India in 9ctober 1@@5" :onnaught la0a
8estaurants vt" +td headed by =i#ram a#shi o$ns and operates the northern and eastern
operation $hich includes restaurants in 'e$ Delhi& Uttar radesh& 8ajasthan& unjab& ;aryana&
Cest engal etc"
*mit Gatia’s company ;ardcastle vt" +td" 9$ns and operates McDonald’s restaurants
in Cest and !outh India" ;8+ has restaurants in Maharashtra& Madhya radesh& >arnata#a and
*ndhra radesh& :hennai and its gro$ing rapidly"
across t$o building in Mumbai& one at hulbhai Desai 8oad and the
other at !antacru0" /he head office houses all the support departments
re(uired to run the restaurants in the $estern and southern region"
T3+5+ )c&,+5-
:onstruction
It is involves in all construction and design related $or# for the stores as per
McDonald’s standards" It prepares project plans for ne$ stores to be put to the management and
implements the same after approval"
:ountry urchase
*ll the purchases of ra$ material for restaurants products are done by the country
purchase department team for both the Delhi and Mumbai mar#ets" It $or#s as a national supply
chain" /he main aim is to purchase the best (uality material from the authori0ed supplier and at
lo$est possible cost" 9nce the material is ordered by a country
purchase it first goes to the distribution centre and then to the restaurants according to their
re(uirement"
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McDonald’s
:orporate *ffairs
It associates $ith brand building and protection of the brands" It $or#s closely $ith
real estate in doing feasibility studies for sites from a legal angle" It loo#s after license and
liaison activities of the company $ith outside agencies& i"e" regarding media
and government authority"
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McDonald’s
9ur vision is to be the $orld’s best (uic# service restaurant e)perience" /hat means that
our restaurant $ill be the best place for our customers to enjoy fast& friendly services LL fresh
food favoritesLL a clean $elcoming environmentLL and a fun e)perience at a fair price"
9U8 =*+U6!
9ur vision is supported by a set of core values
• Ce are dedicated to providing customers unparalleled levels of (uality& service&
cleanliness& and value" It is $hat 8* >89: taught us"
• Ce are committed to our people because $e #no$ that a diverse team of $ell trained
individuals $or#ing together is the #ey to our continued success"
Ce celebrate our achievements& yet $e are never satisfied $ith our results"
1A
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McDonald’s
McDonald’s $as #no$n for its hamburgers& beef and por# burgers" Most Indians are
barred by religion not to consume beef or por#" /o survive& the company had to be
responsive to the Indian sensitivities" !o McDonald’s came up $ith chic#en& lamb and
fish burgers to suite the Indian palate"
➢ /he vegetarian customer O India has a huge population of vegetarians" /o cater to this
customer segment& the company came up $ith a completely ne$ line of vegetarian items
li#e Mc=eggie burger and Mc*loo/i##i" /he separation of vegetarian and non%
vegetarian sections is maintained throughout the various stages"
McDonald’s uses demographic segmentation strategy $ith age as the parameter" /he
main target segments are children& youth and the young urban family"
1?
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McDonald’s
80% 71%
70% 59%
60% 52%
50%
40%
30%
20%
10%
0%
Biscuits Burgers & Pizzas Fruit Juices
*s sho$n above& #ids reign supreme in .M:< purchase related to food products" !o to
attract children McDonalds has ;appy Meal $ith $hich toys ranging from hot $heels to various
Calt Disney characters are given Pthe latest in this range is the toys of the movie MadagascarQ"
.or this& they have a tie%up $ith Calt Disney" *t several outlets& it also provides special facilities
li#e Rlay lace’ $here children can play arcade games& air hoc#ey& etc" /his strategy is aimed at
ma#ing McDonald’s a fun place to eat" /his also helps McDonald’s to attract the young urban
families $anting to spend some (uality time $hile their children have fun at the outlet" /o target
the teenagers& McDonald’s has priced several products aggressively& #eeping in mind the price
sensitivity of this target customer" In addition& facilities li#e Ci%.i are also provided to attract
students to the outlets li#e the one at =ile arle in Mumbai"
NMc Donald’s Mein ;ai >uch aatS projects McDonald’s as a place for the $hole family
to enjoy" Chen McDonald’s entered in India it $as mainly perceived as targeting the urban
upper class people" /oday it positions itself as an affordable place to eat $ithout compromising
on the (uality of food& service and hygiene" /he outlet ambience and mild bac#ground music
highlight the comfort that McDonald’s promises in slogans li#e Nou deserve a rea# /odayS E
N.eed your inner childS" /his commitment of (uality of food and service in a clean& hygienic and
rela)ing atmosphere has ensured that McDonald’s maintains a positive relationship $ith the
customers"
1@
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McDonald’s
:ustomers e)pect it to be an ambient& hygienic and a little sophisticated brand that respects their
values" /he customer’s e)pect the brand to enhance their self%image" :ustomer responses
obtained at the =ile arle& Mumbai outlet confirmed the fact that they connect strongly $ith the
brand" ;o$ever& fulfilling some of the customer e)pectations li#e a broader product variety
provide McDonald’s a great scope for improvement"
SUPPLY CHAIN
!upply :hain is one of the critical factors for the smooth functioning of any business"
*nd $hen $e are tal#ing about fast food business $ith McDonald’s as the subject of the study it
can e)pected a !upply :hain model of one of the highest precisions" It is this unmatched !upply
:hain !tructure& $hich not just ensures on time delivery of ra$ materials and supplies to
McDonalds but also enables it to cut do$n on its cost and ma)imi0e profitability along $ith
maintaining highest (uality standards of its products" /he level of commitment of McDonalds
can be gauged from the fact that even before it set up its first restaurant in the country it infused
8s 4 :rore to set up its delivery mechanism" McDonald’s initiative to set up an efficient
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McDonald’s
supply chain and deploy state%of%art technology changed the entire Indian fast food industry and
raised the standards of performance to international levels"
*s already mentioned& McDonalds had been $or#ing on its supply chain even before it
opened its first joint in the country" McDonalds& an international brand $hich $as trying to ma#e
inroads into the country& developed its Indian partners in such a manner that they stayed $ith the
company from the beginning" /he success of McDonalds India $as achieved by sourcing all its
re(uired products from $ithin the country" /o ensure this& McDonalds developed local
businesses& $hich can supply it highest (uality products" /oday& McDonalds India $or#s $ith 3?
different suppliers on a long term basis and several other stand alone restaurants for its various
other re(uirements" McDonald’s distribution centres in India came in the follo$ing order 'oida
and >alamboli PMumbaiQ in 1@@5& angalore in 24& and the latest one in >ol#ata P2AQ"
McDonaldFs entered its first distribution partnership agreement $ith 8adha >rishna .oodland& a
part of the 8adha >rishna <roup engaged in food%related service businesses" /he association
goes bac# to Guly 1@@3& $hen it studied the nuances of McDonaldFs operations and re(uirements
for the Indian mar#et" *s distribution centres& the company $as responsible for procurement& the
(uality inspection programme& storage& inventory management& deliveries to the restaurants and
data collection& recording and reporting" =alue%added services li#e shredding of lettuce& re%
pac#ing of promotional items continued since then at the centres playing a vital role in
maintaining the integrity of the products throughout the entire Fcold chainF"
:old :hain $as one of the uni(ue concepts of McDonalds supply chain in India& on
$hich it had spent more than si) years to get the system into place" /his system brought about a
veritable revolution& immensely benefiting the farmers at one end and enabling customers at
retail counters get the highest (uality food products& absolutely fresh and at great value" /hrough
its uni(ue cold chain& McDonalds has been able to both cut do$n on its operational $astage& as
$ell as maintain the freshness and nutritional value of ra$ and processed food products" /his has
involved procurement& $arehousing& transportation and retailing of perishable food products& all
under controlled temperatures" /he follo$ing list of suppliers& $ho build up the major supply
chain of McDonalds& reveal ho$ this R:old :hain’ $or#s and contributes to$ards the efficiency
of McDonalds"
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McDonald’s
• :apability to convert mil# into cheese& butterJghee& s#immed mil# po$der& lactose&
casein E $hey protein and humani0ed baby food"
.rom farm t$o degrees :elsius in @ minutes is the first step to (uality" .or e)ample& the 8s
252%crore Dynami) Dairy Industries& located in aramati in une district of Maharashtra&
manufactures cheese slices for McDonald’s at 1 metric tonnes per month" Dynami) has helped
set up 1- bul# cooling centres throughout the district from $hich it purchases mil#" 6ach cooling
centre& $hich is e(uipped $ith modern measuring and
testing e(uipment and a large cooling tan#& is not more than a fe$ #ilometers a$ay from local
dairy farms" * farmer can deliver mil# even t$ice a day on his bicycle and get a printed receipt
on the spot& $hich also lists the (uality of the mil# supplied by him as per fat content& colour and
solids content"
If the mil# is sub%standard or adulterated& it is rejected on the spot" * batch of mil# can
vary from one litre to 1 litres& or more" 6ach batch is mi)ed in one large stainless steel cooler
and chilled immediately to t$o degrees :elsius to stop bacterial gro$th and preserve freshness"
.rom this point on$ards& until just before the burger is actually served in a McDonald’s
restaurant hundreds of #ilometers a$ay& the temperature is never allo$ed to increase" Chen the
refrigerated mil# arrives at the Dynami) plant at aramati& the mil# in every single tan#er is
thoroughly tested and rejected if found sub%standard& adulterated or contaminated" /he
sophisticated testing lab can chec# fat content $ith an accuracy of "1 per cent" It can even detect
minute traces of pesticides or antibiotics administered to co$s" /his instant feedbac# and the
rejection of the entire tan#er%load forces farmers to follo$ the best practices in terms of animal
husbandry& use proper feeds& cut do$n on the indiscriminate use of pesticides and animal
medicines and completely stop even the slightest attempts at adulteration"
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McDonald’s
/ri#aya *griculture& a major supplier of iceberg lettuce to McDonaldFs India& is one such
enterprise that is an intrinsic part of the cold chain" 6)posure to better agricultural
management practices and sharing of advanced agricultural technology by McDonaldFs has made
/ri#aya *griculture e)tremely conscious of delivering its products $ith utmost care and (uality"
Initially lettuce could only be gro$n during the $inter months but $ith McDonaldFs e)pertise
in the area of agriculture& /ri#aya .arms in /alegaon& Maharashtra& is no$ able to gro$ this crop
all the year round" McDonaldFs has provided assistance in the selection of high (uality seeds&
e)posed the farms to advanced drip%irrigation technology& and helped develop a refrigerated
transportation system allo$ing a small agri%business in Maharashtra to provide fresh& high%
(uality lettuce to McDonaldFs urban restaurant locations thousands of #ilometers a$ay" ost
harvest facilities at /ri#aya include a cold chain consisting of a pre%cooling room to remove field
heat& a large cold room and a refrigerated van for transportation $here the temperature and the
relative humidity of the crop is maintained bet$een 1 : and 4 : and @-H respectively"
=egetables are moved into the pre%cooling room $ithin half an hour of harvesting" /he pre%
cooling room ensures rapid vacuum cooling to 2 : $ithin @ minutes" /he pac# house& pre%
cooling and cold room are located at the farms itself& ensuring no delay bet$een harvesting& pre%
cooling& pac#aging and cold storage" Cith this cold chain infrastructure in place& /ri#aya
*griculture has also a plan to e)port this high value product to other international mar#ets&
especially to McDonaldFs Middle 6ast and *sia acific operations" McDonaldFs e)pertise in
pac#aging& handling and long%distance transportation has helped /ri#aya to do trial shipments to
the <ulf successfully" In addition to e)port& McDonaldFs assistance has enabled /ri#aya
*griculture to supply this crop to a number of star%rated hotels& clubs& flight #itchens and
offshore catering companies all over India"
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McDonald’s
V)5* P/c+55+, F,5 P:*. L*,. (S&;;)+/ 1 C3)c?+ , V+7+*'+ /7+ 1
;/,&c*5 )c&,)7 F/&)* P)+5!
* joint venture $ith 9!I Industries Inc"& U!*& McDonaldFs India vt" +td" and =ista
rocessed .oods vt" +td"& produces a range of fro0en chic#en and vegetable foods" * $orld
class infrastructure at their plant at /aloja& Maharashtra& has
=ista rocessed .oods vt" +td"& McDonaldFs suppliers for the chic#en and vegetable
range of products& is another important player in this cold chain" /echnical and financial support
e)tended by 9!I Industries Inc"& U!* and McDonald’s India rivate +imited have enabled =ista
to set up $orld%class infrastructure and support services" /his includes hi%tech refrigeration
plants for manufacture of fro0en food at temperatures as lo$ as % 3-V :" /his is vital to ensure
that the fro0en food retains it freshness for a long time and the Fcold chainF is maintained" /he
fro0en product is immediately moved to cold storage rooms" Cith continued assistance from its
international partners& =ista has installed hi%tech e(uipment for both the chic#en and vegetable
processing lines& $hich reflect the latest food processing technology Pde%boning& blending&
forming& coating& frying and free0ingQ" .or the vegetable range& the latest vegetable mi)ers and
blenders are in operation" *lso& #eeping cultural sensitivities in mind& both processing lines are
absolutely segregated and utmost care is ta#en to ensure that the vegetable products do not mi)
$ith the non%vegetarian products" 'o$& at =ista& a very $ide range of fro0en and nutritious
chic#en and vegetable products is available" 9ngoing 8ED& both locally and in the parent
companies& $or# to$ards innovation in taste& nutritional value and convenience" /hese products&
besides being supplied to McDonaldFs& are also offered to institutions li#e star%rated hotels&
hospitals& project sites& caterers& corporate canteens& schools and colleges& restaurants& food
service establishments and coffee shops" /oday& production of better (uality fro0en foods that are
both nutritious and fresh has made =ista rocessed .oods vt" +td" a name to rec#on $ithin the
industry"
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McDonald’s
*n integral part of the 8adha#rishna <roup& .oodland speciali0es in handling large volumes&
providing the entire range of services including procurement& (uality inspection& storage&
inventory management& deliveries& data collection& recording and reporting" !alient strengths are
DeliveryF and plays a very vital role in maintaining the integrity of the products throughout the
entire Fcold chainF" 8anging from li(uid products coming from unjab to lettuce from une& the
D: receives items from different parts of the country" /hese items are stored in rooms $ith
different temperature 0ones and are finally dispatched to the McDonaldFs restaurants on the basis
of their re(uirements" /he company has both cold and dry storage facilities $ith capability to
store products up to %22 : as $ell as delivery truc#s to transport products at temperatures
ranging from room temperature to fro0en state"
A/)* F, (S&;;)+/ 1 7 )1+ UHT M)? , M)? P/,&c*5 1/ F/+
D+55+/*5!
<agan Mil# and 'andan <hee at its factory at <ha0iabad& Uttar radesh"
•
Installed capacity of 5 ltrsJhr for producing homogeni0ed U;/ PUltra ;igh
/emperatureQ processed mil# and mil# products"
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McDonald’s
*ll suppliers adhere to Indian government regulations on food& health and hygiene $hile
continuously maintaining McDonaldFs recogni0ed standards" *s the ingredients move from farms
to processing plants to the restaurant& McDonaldFs uality Inspection rogramme PIQ carries
out (uality chec#s at over 2 different points in the :old :hain system" !etting up of the :old
:hain has also enabled it to cut do$n on operational $astage
;a0ard *nalysis :ritical :ontrol oint P;*::Q is a systematic approach to food safety
that emphasi0es prevention $ithin its suppliersF facility and restaurants rather than detection
through inspection of illness or presence of microbiological data" ased on ;*:: guidelines&
control points and critical control points for all McDonaldFs major food processing plants and
restaurants in India have been identified" /he limits have been established for those follo$ed by
monitoring& recording and correcting any deviations" /he ;*:: verification is done at least
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/he place mainly consists of the distribution channels" It is important so that the product is
available to the customer at the right place& at the right time and in the right (uantity" 'early -H
of U"!"* is $ithin a 3 minute drive from a McDonald’s outlet"
/here is a certain degree of fun and happiness that a customer feels each time he dines at
McDonalds" /here are certain value propositions that McDonalds offer to its customers based on
their needs" McDonalds offers hygienic environment& good ambience and great service" 'o$
McDonalds have also started giving internet facility at their centres and they have been playing
music through radio instead of the normal music" /here are certain dedicated areas for children
$here they can play $hile their parents can have some (uality time together"
ricing includes the list price& the discount functions available& the financing options available
etc" It should also ta#e into the consideration the probable reaction from the competitor to the
pricing strategy" /his is the most important part of the mar#eting mi) as this is the only part
$hich generates revenue" *ll the other three are e)penses incurred" /he price must ta#e into
consideration the appropriate demand%supply e(uation"
McDonalds has certain value pricing and bundling strategies such as happy meal& combo meal&
family meal etc to increase overall sales volumes"
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time to add ne$ people to the fold" /he Indian consumers continued to perceive McDonald’s as
an e)pensive eating out option" /he challenge $as to overcome this perception and be accepted
as an affordable brand" Chile the patented products li#e Mc=eggieW and Mc:hic#enW
continued to cater to the patrons& the company needed to broaden the audience base to further
entrench into the mar#et"
P/*) 3* )5 *3+ 5&)*'+ 5*/*+78 , c3+5 1/ ;/*) 1 *3+ ;/,&c*
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/here are three main objectives of advertising for McDonald’s are to ?+ ;+;+
6/+ 1 )*+& 1++ ;5)*):+ '&* )* and /++'+/ )*" /he /)73* +557+ has to be
communicated to the /)73* &,)+c+ through the /)73* +,)" McDonald’s does its promotion
through television& hoardings and bus shelters" /hey use print ads and the television programmes
are also an important mar#eting medium for promotion"
/he first step for the brand $as to establish itself as a familiar&
comfortable place" /a#ing a cue from the Indian family values& the
year 2 sa$ the first ever McDonald’s ad aired in the country" *
child& $ho is unable to recite a poem and suffers stage fright& but $hen
Cor#ing on the insight O similarly $hen his family moves into a ne$ place& the child
misses all that has al$ays been so familiar and dear" ;e then has the comfort of something that is
dear and familiar to bring a smile to his face" McDonald’s $as successful in creating an image of
a $arm and comfortable ambience through its
ads" RMcDonald’s Mein ;ai >uch aat’ Ma#ing McDonalds the consumers’ favorite place and
$ay to eat" Chile #ids and families $ere #ey& it $as also important to tal# to the generation that
had not gro$n up on McDonald’s burgers and fries" *n adult $ho $or#s $ith logic and
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reasoning $ould need a reason tempting enough" *nd $hat better $ay to tal# to them than tal#
about McDonald’s core competence O foodX
6ven in Dreams
McDonald’s reali0ed that the $ay to dra$ more consumers $ould be to increase the
visibility of the brand and its products" /he more a person sa$ food& the greater his urge $ould
be to try it out" /he company came up $ith its ne)t round of campaign to address and reflect this"
/he campaign sho$ed different people dreaming about McDonald’s" It depicted ho$ the
consumers $ere totally involved $ith McDonald’s and the food" 'e$ product stories delivered
in a memorable and engaging approach" It $as imperative for the success of the brand to be
RIndiani0ed’ O to continuously spea# to consumers in their Rlanguage’ $ithout ta#ing a$ay from
its core *merican parentage" R.rom tears to smiles’ % campaigns $ere produced to introduce
ne$& scrumptious products"
/he general brand perception of McDonald’s in India $as that of a place for #ids" Chile
the campaigns had $or#ed in the past& targeting #ids& McDonald’s recogni0ed the fact that it
could not al$ays depend on the #ids’ niche" Chen #ids move up the consumption chain& there is
a possibility of losing out on consumers" Moreover& the family outings $ith children only happen
over the $ee#ends and holidays" It $as imperative to rope in adults $ho $ould patroni0e the
brand over the $ee#ends" :onse(uently& the ne)t series of campaigns $ere targeted to drive in
adult traffic to brea# a$ay from the perception" /he ad depicted a father being invited to a
birthday party at McDonald’s" ;e is not at ease $ith the idea of visiting McDonald’s since he
perceives it as a #ids place" ;is child reminds him of the Mc:urry anW& .ilet%o%.ishW that he
$ould be able to relish at the birthday party" /he food boosts the father to go to the party& $here
to his astonishment is his boss’ party" /he ad asserted that people celebrate birthdays and
McDonald’s understands the value of both its employees and its customers" It
understands the fact that a happy employee can serve $ell and result in a happy customer"
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MC EMPLOYEES
E;8++ '++1)*5
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$hich means that all team members at M: D9'*+D’! are approachable at any time" :re$
meetings are held every month in your restaurant $here all the store related issues are discussed"
esides this you $ill also have rap session and meet - $here you can e)press your vie$
candidly"
RAP SESSION-
8ap session are small informal discuss bet$een cre$ and management for the purpose of
discussing ideas& suggestions and problems" /hese sessions $ill be held about once every three
months or $henever needed by the store manager or a member of the management team" 8ap
sessions are an opportunity for the cre$ to ma#e their vie$s #no$n to the company" ou $ill be
paid for attending a rap session"
O;)) 5&/:+8-
*bout once a year $e $ill as# all employees to complete a confidential
(uestionnaire relating to their $or# and the operation of the store& the ans$ers $ill help us to
improve our management of the restaurant and conditions of employment"
Fc))*)+5
C/+6 /
/his room is provided for the employee for recreation and rest during the brea# time" /he
employee can study& listen to music& and get trained in this room"
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B/+?5
It is not easy to maintain (uality& service& and cleanliness" It ta#e hard $or# and hustle" /o #eep
energy level high& all the cre$ member $or#ing above five consecutive hour are eligible for an
unpaid brea# of an hour"
E;8++ M+
9ne of the best things about $or#ing for McDonald’s is for food" 6mployees can enjoy (uality
nutritious food at $orld standard hygiene levels" It is free to managers and cre$" *ll the meals
consumed must be recorded and consumed in the restaurants itself"
Lc?+/ Fc))*8
+oc#ers are available for the employees use at the restaurants for #eeping the personal
belongings in a safe and secure place during the shift"
O*3+/ Fc))*)+5
In addition to the above facilities the employee also enjoys $ith the team member during the
yearly store outing and various inter%store activities arranged system%$ise and patch$ise" /hese
activities are fun and provide opportunity to have a good time and #no$ fello$ employees better"
E;8++ /+c7)*)
Ic+*):+5
*ll the cre$ at McDonald’s have the opportunity to get McDonald’s branded
merchandise" 6ach restaurant is allotted NMahabuc#sS every month based on monthly store
allocation and various inter%store competitions" Mahabuc#s is a cre$ incentive programme $here
the Mahabuc#s coupons can be redeemed for the set of utility items available for that year" /he
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employee have the opportunity to earn the Mahabuc#s by becoming face of the month& face of
the (uarter& various re$ards organi0ed by the stores and through various inter store competitions"
their academic gro$th by putting them on training programme $hich help them to become
manager faster"
R+*)/++* B++1)*5
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B&5
Depending upon the la$ applicable at the relevant time the employee $ill receive an
amount of ?"33Hof the basic salary earned during the financial year"
G/*&)*8
*ll the full time employee $ho have completed - years of continuous employment $ith
the company are eligible for gratuity" /he employee $ill receive an amount of 1- days basic
salary for every $ee# $or#ed" /he amount is given at the time of separation or retirement from
the company"
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During the !ervice Delivery rocess& each moment of interaction bet$een the firm and
the customer& called NM+*5 1 T/&*3S& helps understand the opportunities that a firm has to
$in or lose the customer" .or e)ample& these Nmoments of truthS are created for McDonald’s
every time the guard at the McDonald’s outlet meets the customer& every time an attendant ta#es
do$n the order from the customer $aiting in the (ueue& every time the cashier interacts $ith the
customer& every time the attendant helps the customer guided the customer to$ards the table&
every time the attendant cleans the tables etc"
tab
“Moments Of Truth” – The Service Encounter
Customer
rocess and the various stages in the process that are e)posed to the customers"
/ransparency in the processes at its outlet has helped McDonald’s bring the bac# office in its
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/o counter these changes McDonalds has continuously introduced ne$ products and has phased
out the old ones $hich $ere at the decline stage of their +:" /he introduction is timed such that
the ne$ product does not cannibali0e the product already in the maturity or gro$th stage" /hus
the secret lies in getting profits $ith different products in the different stages of the +:"
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/he F/+c3 F/)+5 have been an important part of the McDonalds menu $orld$ide" ut
no$ it $as in the stage of decline and $as actually not generating proper return" In an attempt to
revitali0e it& a ne$ variant $as introduced namely S3?+ S3?+ F/)+5. /his is being served $ith
chatpata spice mi) $hich has resulted in increase in the sales of .rench .ries and has elevated it
from to the decline stage" /his is used to delay the decline of a $ell established product $hich
has the potential of generating further revenue"
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ANALYSIS
C;+*)*/5 A85)5
McDonald’s has been a leading fast%foods outlet in =ile arle" ut the outlet understudy has
other competitors eating a$ay into its mar#et share" In addition to its traditional rivalsY>.:&
Dominos& i00a ;utYthe firm encounters ne$ challenges" Gumbo >ing competes using a bac#%
to%basics approach of (uic#ly serving up burgers for time%pressed consumers" 9n the higher end&
the >.: has become potent competitor in the (uic# service field& ta#ing a$ay customers from
McDonald’s" erhaps in the ne$ environment& fast& convenient service is no longer enough to
distinguish the firm" *t this time& a ne$ critical success factor may be emerging the need to
create a rich& satisfying e)perience for consumers" /his brings us to 5+/:)c+ , +;+/)+c+
'5+, c;+*)*) $hich McDonald’s can use for competitive advantage against Gumbo >ing"
>eeping in mind the demographics of the area& McDonald’s has Ci%.i enabled the outlet to cater
to the student community" It is for this overall N.ood& .un E .ol#sS e)perience that customers
pay a premium over the other competitors"
C;+*)*) 5 /+,&c+5 ;/,&c* )1+c8c+ ),&c)7 1)/5 * /+:)5+ *3+)/ ;/,&c*5
;/*1)5 and to revisit their product mar#et to understand changing needs& e)pectations and
perception of different mar#et segments" /he ne$ Mcrea#fast $ould be introduced bet$een 5
to 11 am as a pilot project" /his $ould open up a $hole ne$ revenue stream for McDonald’s by
tapping into the student and $or#ing population by providing a healthy and $holesome
brea#fast" /his sho$s ho$ demographic shift can affect the demand for products and services"
McDonald’s has anticipated these changes to maintain its competitive edge"
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SOT A85)5
➢ Rolling out McBreakfast across all outlets – In India& the company has recently
launched its entry into the brea#fast food category" /his is no$ launched on a pilot basis
on select stores" In Mumbai& it available at the =ile arle outlet" /he company vie$s this
category as a #ey gro$th driver in future"
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E3)')*5
Survey uestionnaire
" Chich is your favorite product at McDonald’sT
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McD6+I=68
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McD9'*+D’s >I9!>
*t McDonalds $e have made effort to cover every possible area for serving to the :ustomer
needs" *fter serving the meals $e have made >ios# as a means of fulfilling the custom of
something s$eet follo$ing the main course"
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• /he :hart belo$ reflects the >I9!> as a strength for the system"
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:9':+U!I9'
*bout - restaurants $ill be added to the 4A already in the India according to =i#ram
a#shi& managing director of :onnaught la0a 8estaurants& $hich holds the franchise for 'e$
Delhi and the north of the country"ZMcDonaldFs considers :hina and India to be vital for
e)pansion and $ill continue to invest more and more in both these countries&Z Mr a#shi told
loomberg 'e$s" ;e said the e)pansion is e)pected to cost bet$een 1bn and 13bn rupees
P[135%1A5m, 211%2A-mQ" Cestern India $ill get fifteen ne$ outlets over the ne)t 12 months at
a cost of 5m rupees& according to *mit Gatia& managing director of regional franchise holder
;ardcastle restaurants"
I,) 7/6*3
McDonaldFs has invested about Abn rupees in India since it entered the mar#et in 1@@5
and reported gro$th of about 4H" India has a population of over 1 billion and an emerging and
affluent middle class" /he food chain has tailored a number of its products to the Indian mar#et&
including the aneer !alsa Crap& Mc*loo /i##i and the mutton speciality for a country $hich
does not eat beef& the :hic#en Maharaja Mac" ZIn the ne)t t$o years& $e should finally have a
menu that is entirely relevant to the Indian household&Z Mr a#shi said"
.rom the above information it is very clear that Mc Donalds is aggressive about its Indian
operations and this fast food chain is here to stay feeding millions of Indians the Gai ho $ay thin#
global act local"
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