“One world, One Burger”- McDonald’s

By VASIM Calcuttawala
 So, Let’s go, Listen My story, Agenda of My story is

AGENDA
• HISTORY
• SOME FACTS ABOUT
MCDONALD’S
• PAST AND PRESENT
STRATEGY
• SWOT ANALYSIS
• 7 P’S
• MCDONALDS LOCATION
SELECTION
• TECHNOLOGY IN RETAIL
• RETAIL FORMAT
• STORE LAYOUT
• ORGANISATIONAL
STRUCTURE
McDonald's Mission Statement

"McDonald's vision is to be the world's

best quick service restaurant
experience. Being the best means
providing outstanding quality, service,
cleanliness, and value, so that we make
every customer in every restaurant
smile."
 Mcdonald’s History
 McDonald's was started as a drive-in
restaurant by two brothers, Richard
and Maurice McDonald in California,
US in the year 1937.

 The brothers used assembly line

procedures in their kitchen for mass
production..

 As word of their success spread, franchisees started showing

interest. However, the franchising system failed because the
 McDonald’s History
• At this point, Ray Kroc (Kroc), distributor for
milkshake machines.Expressed interest in the
business, and he finalized a deal with the
McDonald brothers in 1954.

•In 1961, he bought out the McDonald brothers'

share for $2.7 million and changed the name of
the company to McDonald's Corporation. In
1965, McDonald's went public...
McDonald’s in India
McDonald’s History INDIA
• Entered in India 1996

• McDonald's India is a 50 – 50 JV
partnership between MCDONALD’S
CORPORATION (U.S.A) and two Indian
businessman Amit Jatia and Vikram
Bakshi

• Localisation:
 DON’T OFFER ANY BEEF OR PORK ITEM IN
INDIA
 IN PRODUCT LIKE MCVEGGIE, PIZZA
MCPUFF ETC.THEY USE SPICES
FAVOURED BY INDIANS
 SOFT SERVES AND MCSHAKES ARE
EGGLESS

• Actively Involver in many social activities likegi

CHILD EDUCATION, PULSE POLIOiesetc.
 History in India

• 1996 …the first McDonald’s restaurant opened on Oct.

13, at Basant Lok, Vasant Vihar, New Delhi. It was also
the first restaurant in the world not serving beef on its
menu
• 1997…the first Drive –Thru restaurant at Noida
• 1999…the first Mall location restaurant at Ansal Plaza –
New Delhi
• 2000…the first highway restaurant at Mathura
• 2001…the first thematic restaurant at Connaught Place
• 2002…the first restaurant in a food court at 3C’s,
Lajpat Nagar and the first restaurant at the Delhi Metro
Station at Inter State Bus Terminus
 Segmentation, Targeting and
Positioning
• McDonald‟s uses demographic segmentation strategy
with age as the parameter. The main target segments
are children, youth and the young urban family
 ADAPTION STRATEGY
• Menu differences:
• Netherlands and Austria– Beer
• Germany – Chinese Week
• Canada – Mc Pizza
• India – Goat and lamb burgers half of menu
vegetarian
• Japan – ingredients such as cabbage and
Teriyaki
• USA – Barbecue bacon Burgers, sausage
breakfast burritos
 Mc -Strategies

 International Growth
 Forward Integration
-Distribution through Franchisees
 Backward Integration
-Local Sourcing, Suppliers

 Market penetration & Development

McDonaldizing the supplier
 New Product Development
- Aloo Tikki, Salad
 Beverages

Cold Coffee

Ice Tea

Soft Drinks

Mc Shakes

Hot Serves

Menu
 Ice-Tea

Menu
 McShakes
McShakes™

Nutrition at glance

Pr
Ca Ca Fa
Se ot
lori rb. t
rvi ein
es in in
ng in Pr
in g g Ca Fa
Type siz g ot
kC ms ms rb t
(Quantity) e ms ein
al / / / % %
in / %
se se se
g se
rv rv rv
ms rv
e e e
e

27 29
5 8
7 52 7 3 19 3
Chocolate 40 43
10 75 10 3 19 3
(S/M/L) 0 3
13 94 13 3 19 3
50 54
0 1
27 27
5 0
7 46 7 2 17 2
Strawberry 40 39
10 67 10 2 17 2
(S/M/L) 0 3
12 84 12 2 17 2
50 49
0 1

Menu
Floats

Menu
 Soft Serves
Nutrition at glance
Calorie
Servin Protein Carb. Fat
s Protein Fat
Type g size in gms in gms in gms Carb%
in kCal % %
in gms / serve / serve / serve
/ serve
Soft Serve with Hot Fudge (Small) 86 3 25 3 140 4 29 4
Soft Serve with Hot Fudge (Medium) 143 6 43 5 241 4 30 4
Soft Serve with Strawberry (Small) 86 3 23 3 126 3 26 3
Soft Serve with Strawberry (Medium) 143 4 39 4 208 3 27 3

Menu
 Soft Serve Cone
Nutrition at glance

Protein Calories Fat

Serving size Carb.
in gms / in kCal / Protein% in gms / Carb% Fat %
in gms in gms / serve
serve serve serve
71 2 16 2 95 3 22 4

Menu
 Non- Veg Menu

Chicken Maharaja Mac

McChicken

Fiet-O-Fish

Chicken Mexican Wrap

Chicken McGrill

Chicken McCurry

Menu
 Filet-O-Fish
Filet-O-Fish™

Fried, breaded fillet of fish, with a

half slice of processed cheddar
cheese, special tartar sauce served
between steamed buns.

Nutrition at glance

Serving size Protein Carb. Fat

in gms in gms / serve in gms / serve in gms / serve

145 13 49 23

Calories
Protein% Carb% Fat %
in kCal / serve

462 9 34 16

Menu
 Chicken Maharaja Mac
Chicken
Maharaja Mac™

2 Grilled chicken patties with a smoke-

flavoured mayonnaise, fresh onions,
tomatoes, processed cheddar cheese in a
toasted sesame seeded bun.

Nutrition at glance

Protein Carb. Fat

Serving size
in gms / in gms / in gms /
in gms
serve serve serve

255 32 54 26

Calories
in kCal / Protein% Carb% Fat %
serve

573 12 21 10

Menu
 Chicken Mexican Wrap
Chicken Mexican Wrap™

A traditional Mexican soft flat bread that

envelops crispy golden brown chicken
encrusted with a Mexican Cajun coating,
and a salad mix of iceberg lettuce, carrot,
red cabbage and celery, served with
eggless mayonnaise, tangy Mexican Salsa
sauce and cheddar cheese
Nutrition at glance

Protein Carb. Fat

Serving size
in gms / in gms / in gms /
in gms
serve serve serve
192 14 37 21
Calories
in kCal / Protein% Carb% Fat %
serve
392 7 19 11

Menu
 McALOO Tikki
McAloo Tikki™

Fried breaded potato & peas patty

that is flavoured with a special spice
mix, fresh tomato slices, onion, and
veg. tomato mayonnaise between
toasted buns.

Nutrition at glance

Serving Protein Carb. Fat

size in gms / in gms / in gms /
in gms serve serve serve

150 6 53 15

Calories
in kCal / Protein% Carb% Fat %
serve

367 4 35 10
Menu
 Paneer Salsa Wrap
Pizza McPuff™

Mixed vegetables (carrot, beans,

capsicum, onion and green peas),
mozzarella cheese mixed with
tomato sauce and spice blend
coated with a savoury dough.

Nutrition at glance

Protein Carb. Fat

Serving size
in gms / in gms / in gms /
in gms
serve serve serve
80 4 26 14
Calories
in kCal / Protein% Carb% Fat %
serve
245 5 33 17

Menu
 4P’s of McDonalds
• Product
• How should the company design, manufacture the product so
that it enhances the customer experience?

• Price
 What should be the pricing strategy?

• Place
• Where should be the product be available and the role of
distribution channels?

• Promotion
• What is the suitable strategy and channels for promotion of the
product?
 Past Mc Product Strategies

• Product Development
– Successes: Fries, Happy Meal, Big Mac, Egg
McMuffin, Promotions
– Failures: McPizza, Fajita, Carrot Sticks,
McLean, and the Arch Deluxe
• 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”.
I Love Children- Happy Meal
 Place

McDonald's opened its doors in India in October 1996. Ever since then, our
family restaurants in Mumbai, Delhi, Pune, Ahmedabad, Vadodara,
Ludhiana, Jaipur, Noida Faridabad, Doraha, Manesar and Gurgaon have
proceeded to demonstrate.
 McDonald’s Outlets
• The ambience and the environment is same at
all the outlets of McDonald's.
Pepole

• Each outlet is headed by a

Restaurant Manager . He is
responsible for the daily operation
and customer interaction.

• Delivery Crew Member carries

basic operation of a restaurant.
Ensures customer satisfaction at
the restaurants.

• In order to motivate there

employees they give them stars as
per their performance.
Organizational Chart
Social Events sponsored by McDonald's
McDonalds location Selection
Space require
• In terms of space: Minimum of 2,500 – 3,000 square
feet carpet area on the ground floor with a clear height
of 11 feet and a frontage of at least 35 to 40 feet.

• Offers both Counter Service and Drive through Service

• Drive-Thru, Auto-Mac, Pay and Drive, or McDrive as it is
known in many countries, often has separate stations
for placing, paying for, and picking up orders.
• "McDrive" locations near highways offer no counter
service or seating.
• In contrast, locations in high-density city
neighborhoods often omit drive-through service
• There are also a few locations, located mostly
in downtown districts that offer Walk-Thru
service in place of Drive-Thru.
• Some locations are connected to gas
stations/convenience stores, while others called
McDonald's Express have limited seating and/or
menu or may be located in a shopping mall.
• Other McDonald's are located in Wal-Mart stores.
• McStop is a location targeted at truckers and
travelers which may have services found at truck
stops.
Home Delivery
• McDelivery

11:00 am to 11:00 pm
• McDonald‟s India is one of the few countries
that provides a home delivery service
• Call on 6600 0666 and place the order.
• Minimum Charge 15rs Per order
• The restaurants will deliver to neighborhoods
which are up to 10 minutes away by road.
Recognition [Rewards]
• In addition to McDonald's competitive wage and
promotion programs, hard work, dedication, motivation
and results are recognized and rewarded at McDonald's.
• Appreciation comes in many forms - from a simple
thank you for a job well done, to restaurant-wide
recognition through programs such as the 'Face of the
Month' and „Face of the Quarter‟.
• McDonald's also offers great incentive programs with
access to gift certificates and merchandise.
Technology In Retail
• From old-fashioned cash registers to computerized
point-of-sale systems that could track massive amounts
of data in seconds
• McDonald's was the first quick-service chain to install
touch-screen computers at the front counter and in the
drive-thru, making it easier for servers to input orders.
• New POS, a product developed by Savista, will help
McDonald's improve restaurant productivity and
enhance the customer experience
• Attemt for solution that would permit debit, credit and
gift card transactions to be processed through the
standard POS system in less than four seconds
• In a small number of restaurants, McDonald's U.S. is
evaluating a customer order center concept that
involves drive-thru orders taken by employees working
remotely at two customer order centers. High-speed
data connections are used to transmit the orders from
the drive-thrus to the centers as well as from the
centers back to restaurant Kitchen Staff.
• Meanwhile, pilot tests of self-service ordering kiosks
are underway in the Denver and Chicago markets. At
this point, the kiosks accept only cashless payments as
a way to keep the machines easy and quick to operate
Retail Format : Franchising
• Franchising enables McDonald‟s to enjoy considerably
faster growth and the creation of a truly global brand
identity.
• On the financial side, McDonald‟s receives a monthly rent
which is calculated on a sliding scale based on the
restaurant‟s sales
• There is also a service fee of 5% of sales that is
contributed to support department activities and
royalties.
• The purchase price of a restaurant is generally about
£150,000 upwards. The new franchisee is expected to
fund a minimum of 25% of this from their own
unencumbered funds.
Store Layout
• The new design will include the traditional McDonald's
yellow and red colors, but the red will be muted to
terra cotta, the yellow will turn golden for a more
"sunny" look and olive and sage green will be added.
• To warm up their look, the restaurants will have less
plastic and more brick and wood, with modern hanging
lights to produce a softer glow.
• Contemporary art or framed photographs will hang on
the walls.
• The exterior will have golden awnings and a "swish
brow" instead of the traditional double-slanted mansard
roof.
• The new restaurants will feature areas:
• The "linger" zone will offer armchairs, sofas, and Wi-Fi
connections.
• The "grab and go" zone will feature tall counters with
bar stools for customers who eat alone; Plasma TVs will
offer them news and weather reports.
• The "flexible" zone will be targeted toward families and
will have booths featuring fabric cushions with colorful
patterns and flexible seating.
• Different music targeted to each zone.
Store Layout
Store Layout
Store Layout
 Supply Chain

Suppliers Mfg Dist. Retai Customer

Material Flow
Supply Chain
Trikaya Agriculture - Supplier of Iceberg
Lettuce.
successfully grows speciality crops like iceberg lettuce, special
herbs and many oriental vegetables. Farm infrastructure
features:
 A specialized nursery with a team of agricultural experts.
 Drip and sprinkler irrigation in raised farm
beds with fertilizer mixing plant.
 Pre-cooling room and a large cold room for post harvest
handling.
A large cold room and a refrigerated van for transportation where the
temperature and the relative humidity of this crop is maintained
between 1º C and 4º C and 95% respectively

Vista Processed Foods Pvt. Ltd. - Supplier of

Chicken and Vegetable range of products.
A joint venture with OSI Industries Inc., USA, and McDonald's India Pvt.
Ltd. Vista Processed Foods Pvt. Ltd. produces a range of frozen chicken and
vegetable foods. A world class infrastructure at its plant at Taloja,
Maharashtra, has:
 Separate processing lines for chicken and vegetable foods.
 Capability to produce frozen foods at temperature as low as -35 Degree
Celsius to retain total freshness.
 International standards, procedures and support services.
Supply Chain
Dynamix Diary - Supplier of Cheese.
Dynamix has brought immense benefits to farmers in
Baramati, Maharashtra by setting up a network of milk
collection centres equipped with bulk coolers. Easy
accessibility has enabled farmers augment their income by
finding a new market for surplus milk. The factory has:
 Fully automatic international standard processing
facility.
 Capability to convert milk into cheese, butter/ghee,
skimmed milk powder, lactose, casein & whey protein
and humanised baby food.
 Stringent quality control measures and continuous
Research & Development.

Radhakrishna Foodland -
Distribution Centre.
An integral part of the Radhakrishna Group, Foodland
specialises in handling large volumes, providing the
entire range of services including procurement, quality
inspection, storage, inventory management, deliveries,
data collection, recording and reporting. Salient
strengths are:
 A one-stop shop for all distribution management
services.
 Dry and cold storage facility to store and transport
perishable products at temperatures up to - 22 Degrees
Celsius.
 Effective process control for minimum distribution
cost.
 Jumbo King — The branded vada pav chain

Introduced automation, packaging and Created a

Brand

 Jumbo King is a food chain that has branded

Mumbai’s favorite snack, The Vada pav.
 Vada pav is an INR 500 million market in
Mumbai itself, out of which jumbo king’s share is
more than 100 million
 Jumbo king has broken the stereotype method
Dheraj Gupta and introduce hygienic manhandled vadapv.
 It has become Mumbai's most visited brand
with over 40,000 customers per day
 Jumbo king considers McDonald's it’s “guru”
and aims to become India’s McDonald’s.
 Contribution to Economic Growth

• McDonald's India has already

contributed directly & indirectly
Rs. 95 crore (approx. 16 per cent
of total turnover) as revenue to
the Center and the State towards
Sales Tax, House tax and Income
Tax in the last seven years. By
2005 this amount shall see an
increase of more than 30 per cent
per annum.
BYE BYE SEE U AT McDonald’S