PROJECT REPORT ON

“MARKETING STRATEGIES OF MCDONALD’S”

BACHELOR OF MANAGEMENT STUDIES

SEMESTER - VI

UNIVERSITY OF MUMBAI
SUBMITTED TO
UNIVERSITY OF MUMBAI

UNDER THE GUIDANCE OF

PROF. MAYUR DESAI

SUBMITTED BY
MR. SUYOG SURYAKANT PATIL
ACADEMIC YEAR: 2020-21
ROLL NO. 36
 PROJECT REPORT ON

“MARKETING STRATEGIES OF MCDONALD’S”

BACHELOR OF MANAGEMENT STUDIES

SEMESTER - VI

UNIVERSITY OF MUMBAI

SUBMITTED TO
UNIVERSITY OF MUMBAI

UNDER THE GUIDANCE OF

PROF. MAYUR DESAI

SUBMITTED BY
MR. SUYOG SURYAKANT PATIL
ACADEMIC YEAR: 2020-21
ROLL NO . 36
 CERTIFICATE

This Is To Certify That Mr. Suyog Suryakant Patil has

Worked And Duly Completed His Project Work For The
Degree Of Bachelor Of Management Studies And Her
Project Is Entitled, “Marketing strategies of McDonald’s”
Under My Supervision. I Further Certify That The Entire
Work Has Been Done By The Learner Under My
Guidance And That No Part Of It Has Been Submitted
Previously For Any Degree Or Diploma Of Any University.

It Is His Own Work And Facts Reported By His

Personal Findings And Investigations.

PRINCIPAL EXTERNAL INTERNAL

EXAMINER EXAMINER

DATE:
 DECLARATION

I Undersigned Mr. Suyog Suryakant Patil Student Of

Bachelor Of Management Studies, Hereby Declare That
The Work Embodied In This Project Work Titled
“Marketing Strategies of McDonald’s” Forms My Own
Contribution To The Research Work Carried Out Under
The Guidance Of Prof. Mayur Desai Is A Result Of My
Own Research Work And Has Not Been Previously
Submitted To Any Other University For Any Other
Degree/ Diploma To This Or Any Other University.
Wherever Reference Has Been Made To Previous
Works Of Others, It Has Been Clearly Indicated As Such
And Included In The Bibliography.
I, Here By Further Declare That All Information Of
This Document Has Been Obtained And Presented In
Accordance With Academic Rules And Ethical Conduct.

SIGNATURE OF STUDENT
(Mr. Suyog Suryakant Patil)
 ACKNOWLEDGEMENT

To List Who All Have Helped Me Is Difficult Because They

Are So enormous. I Would Like To Acknowledge The
Following As Being Idealistic Channels And Fresh
Dimensions In The Completion Of This Project.
I Take This Opportunity To Thank The University of
Mumbai For Giving Me Chance To Do The Project. I
Would Like To Thank My Principal Prof. Dr. Prashant
Shelar For ProviDing The Necessary Facilities Required
For Completion Of This Project. I Would Like To Thank
My Project Co-ordinator Prof. Dr. Mayur Desai For
Providing The Necessary Facilities Requires For
Completion Of This Project And For His Moral Support
And Guidance Which Made The Project Successful.
Lastly, I Would Like To Thank Each And Every Person
Who Directly Helped Me In The Completion Of The
Project Especially My Parents And Peers Who Supported
Me Though Out My Project.
 INDEX

SR. PARTICULARS PAGE

NO. NO.
1. INTRODUCTION TO McDonald’s 1-7
2. ENTERANCE OF MC’D IN INDIA 8-15
3. THE SUPPLY CHAIN 16-30
4. MARKETING MIX STRATGY 31-41
5. BENEFITS TO EMPLOYEES 42-49
6. McDonald’s IN RESTAURANT FIELD 50-55
7. DATA ANALYSIS 56-59
8. EXHIBITS 60-66
CONCLUSION 67

 BIBLOGRAHY

 QUESTIONNAIRE
 CHAPTER 1: INTRODUCTION
McDonald’s restaurant is the world’s Biggest chain of
fast food restaurants.
The McDonald’s restaurant is one of the most successful
global restaurant chains around the world. They have
used effective management and global expansion
strategies to enter new markets and gain a share of the
foreign fast food market. McDonald’s has achieved this
enormous success, its best practices in the global food
industry, international growth trends and challenges,
and various lessons that have been learned from their
expansion in foreign countries. This shows how
McDonald’s creates both customer and brand loyalty for
their products and services.
In 1937 Brothers Dick and Mac McDonald started a
hot dog stand called the Airdrome at the airport in
Monrovia, California & in 1940 the brothers move the
Airdrome building to San Bernardino, California, where
they open the first McDonald’s restaurant. Although
McDonald’s did not invent the hamburger or fast food,
its name has become nearly synonymous with both.
The McDonald’s Golden Arches logo was introduced in
1962. It was created by Jim Schindler to resemble new
arch shaped signs on the sides of the restaurants. He

1
merged the two golden arches together to form the
famous “M” now recognized throughout the world.
Schindler’s work was a development of the stylized “V”
logo sketched by Fred Turner, which was convinced as a
more stylish corporate symbol than the Speedee chef
character that had previously been used. The
McDonald’s name was added to the logo in 1968.
McDonald’s has its familiar golden arches logo;
McDonald’s has 31,886 restaurants worldwide serving
Big Macs, Chicken McNuggets, salads and french fries.
Most restaurants offer drive-thru service and some
suburban locations offer outdoor playgrounds for
children. Approximately 70% of McDonald’s restaurants
are operated by independent franchisors. The number
of restaurants in the U.S. has reached saturation and
most new McDonald’s are now being opened in Europe,
Middle East and Asia.
In order to be a franchisee, an individual must have
at least $175,000. There is about 2,400 owner/operators
system wide. McDonald’s s looking to boost sales by
opening restaurants 24 hours a day. An estimated 30%
of store revenue comes from breakfast sales. The
company has instituted a dollar menu includes double
cheeseburger in a bid to boost sales from value-oriented
customers.

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3
 2. HISTORY
The first McDonald’s restaurant was located In San
Bernardino, CA in 1954 and operated by two brothers
Dick and Mac McDonald. Ray Kroc, a milk shake machine
salesman, thought the restaurant was great and
purchased the rights from the brothers. Kroc opened his
first McDonald restaurant in Des Plaines, IL in 1955 and
preached cleanliness in restaurant. McDonald would
grow quickly as it signed on franchisees to open
restaurants around the country. McDonald’s would go
public in 1965.
The Big Mac was introduced system wide in 1968 and
was the brainchild of Jim Delligatti, one of Ray Kroc’s
early franchisees, who by the late 1960 operated a
dozen stores in Pittsburgh. The Egg Mc Muffin was
developed by owner operator Herb Peterson in 1973.
The site of the McDonald brothers’ original
restaurants is now a monument. With the expansion of
McDonald’s into many international markets, the
company has become a symbol of globalization and the
spread of the American way of life. Its prominence has
also made it a Frequent topic of public debates about
obesity, corporate ethics and consumer responsibility.

4
 In 2007, the company had record revenues of $ 22.8
billion, a 9% increase from the previous year. Net
income was $2.39 billion. McDonald’s sold the Boston
Market restaurant chain in 2007 and owns stake in
Chipotle Mexican Grill. In 2007, the company completed
the sale of its business in Brazil, Argentina, Mexico,
Puerto Rico, Venezuela and 13 other countries in Latin
America and the Caribbean to a developmental licensee
organization. An estimated 10% of all workers have once
worked at McDonald’s in their lifetime.

5
 3. FRANCHISEES
Franchising means a joint venture between a franchisor
and a franchisee. The franchisor grants the independent
operator the right to distribute its product, techniques,
and trademarks for percentage of gross monthly sales
and a royalty fee.
Various tangibles and intangibles such as national or
international advertising, training and the other support
services are commonly made available by the franchisor.
Agreement typically last five to twenty years, with the
premature cancellations or terminations of most
contracts bearing serious consequences for franchisees.
McDonald’s does business in more than 30,000
restaurants in 119 countries around the world serving 47
million customers per day, In many countries around the
world it does not have a presence ad its current strategy
is to focus on the markets where it does not do business.
No firm date has been established for the opening of
new markets. In certain markets McDonald’s have a
presence but it is not seeking franchisees and it has
included instructions regarding those markets.
McDonald’s sincerely appreciate the customers
expressed interest in McDonald’s and their continued
patronage of our restaurants.

6
7
CHAPTER 2: ENTERANCE OF MC’D IN INDIA
1. THE INDIAN BEGINNIG
A 50-50 joint venture partnership between McDonald’s
Corporation [USA] and two Indian corporations,
McDonald began its journey in India in October 1996.
Connaught Plaza Restaurants Pvt Ltd. Headed by Vikram
Bakshi own and operates the northern and eastern
operation which includes restaurants in New Delhi, UP,
Rajasthan, Punjab, West Bengal etc.
Amit Jatia’s company Hard-castle Pvt Ltd. Owns &
Operates McDonald’s restaurants in West and South
India. HRPL has restaurants in Maharashtra, MP,Chennai
Andhra Pradesh and its growing rapidly.
The head office for Hard-castle Restaurants Pvt.
Is spread across two building in Mumbai, One at Desai
Road and the other at Santa Cruz. The head office house
all the support departments required to run the Restaur-
Rants in the Western and Southern region.
These includes:-
 Construction
It is involves in all construction and design related
Work for the stores as per McDonald’s standards. It
prepares project plans for new stores to be put to the
management and implements the same after approval.
 Country Purchase

8
 All the purchases of raw material for restaurants
products are done by the country purchase department
team for both the Delhi and Mumbai markets. It works
as a national supply chain. The main aim is to purchase
the best quality material from the authorized supplier
and at lowest possible cost. Once the material is ordered
by a country purchase it first goes to the distribution
centre and then to the restaurants according to their
requirement.
 Country Quality Assurance & Product Development
This Department works closely with the country
Purchase department. It looks after the quality of both
raw material and of finished product. It develops new
Product for the menu based on customer preference.
 Finance and Information Technology
It looks after all the day to day financing accounting
Transaction and taxation related activities of the app-
Lication of Information Technology to the company
processes.
 Corporate affairs
It associates with brand building and protection of
The brands. It works closely with real estate in doing
feasibility studies for sites from a legal angle. It looks
after license and liaison activities of the company with
outside agencies,i.e. regarding media and Govt authority.

9
 Legal & Company Secretarial
It helps the company sign legal deals for the new
Restaurants sites. It safeguards the interest of the com-
pany and act as guardians of the company as regards to
its legal functions. It provides advisory support to the
other departments as regards legal issues and ensures
compliance with applicable laws.
 People Resources/ Human Resources
It conducts activities related to recruitment,
Selection, Remuneration, Retention and matter related
to employee satisfaction.
 Training Learning & Development
It is responsible for the training and development of
employees involved in operational activity and the emp-
loyees in the corporate office.
 Operation
This department is responsible for the day to day
Functioning of the restaurants in profitable manner.
 Marketing & Communication
It is responsible for the brand positioning increasing
Brand awareness and thus resulting in increased sales. It
is also responsible for advertising, media relation and
implementing various product promotion schemes like
Happy Meals, Value Meals, etc.

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 2. VISION
Our vision is to be the world’s best quick service
restaurant experience. This means that our restaurants
will be the best place for our customers to enjoy fast,
friendly services, fresh food favorites, clean welcoming
environment and a fun experience at a fare price.
OUR VALUES
Our vision is supported by a set of core values.
 To provide customers unparalleled levels of quality,
service, cleanliness and value.

 To Operate the business ethically

 To always give back to the communities in which we

do business.

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 3. RESTRICTIONS IN ENTRING INDIAN
MARKET
 Regiocentricism: Re-engineering the menu
McDonald’s has continually adapted to the customer’s
tastes, preference, Value systems, Lifestyles, Languages
and perception globally.
McDonald’s was known for its hamburgers, beef and
pork burgers. Most Indians are barred by religion not to
consume beef or pork.
To survive, the company had to be responsive to the
Indian sensitivities. So McDonald’s came up with chicken,
lamb and fish burgers to suite the Indian culture.

 The vegetarian customer: India has a huge population

of vegetarians. To attract this customer segment, the
company came up with a completely new line of
vegetarian items like Mc Veggie burger and Mc Aloo
Tikki. The separation of vegetarian and non-
vegetarian sections are maintained throughout the
various stages.

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 4. SEGMENTATION, TARGETING AND
POSITIONING
McDonald’s uses demographic segmentation with age as
the parameter. The main target segments are children,
youth and the young urban family.

As shown above, children area is supreme in FMCG

purchase related to food products. So to attract kids
McDonald’s has happy Meal with which toys ranging
from hot wheels to various Walt Disney toys are given
( the latest in the range is the toys of the movie
Madagascar). For this, they have a tie-up with Walt
Disney. At several outlets, it is also provides special
facilities like ‘Playing area’ where children can play
arcade games, air hockey, etc.

13
 This strategy is aimed at making McDonald’s a fun
place to eat. This also helps McDonald’s to attract the
young urban families wanting to spend some quality
time while their have fun at the restaurant.
To target the teenagers, McDonald’s has priced
several products aggressively, keeping in mind the price
sensitivity of this target customer. In addition, facilities
like Wi-Fi are also provided to attract students to the
outlets like the one at Vile Parle in Mumbai.
“McDonald’s I’m loving it” projects McDonald’s as a
place for the whole family to enjoy. When McDonald’s
entered in India it was mainly perceived as targeting the
urban upper class people. Today it positions itself as an
affordable place to eat without compromising on the
quality of food, service price and hygiene. The outlet
ambience and mild background music highlight the
comfort that McDonald’s promises in slogans like “ You
Deserve a Break Today” & “ Feed Your Inner Child” This
commitment of quality of food and service in a clean,
hygienic and relaxing atmosphere has ensured that
McDonald’s maintains a positive relationship with the
customers.
Customer Perception and Customer Expectation
Customer perception is a key factor affecting a
product’s success. Many potentially revolutionary

14
products have failed simply because of their inability to
build up a healthy perception about themselves in the
customers minds. McDonald’s being an internationally
renowned brand brings with it expectations for the
customers.
Target Segment What is McDonald’s for me?
A Family with A treat to children, a fun place to be
children for the children
Urban customer Great taste, quick service without
on the move affecting the work schedule
Teenager Hangout with friends, but keep it
affordable.

Customers expect it to be an ambient, hygienic and a

little sophisticated brand that respects their values. The
customers expect the brand to enhance their self image.
Customers responses obtained at the Vile parle, Mumbai
outlet confirmed the fact that they connect strongly
with the brand. However, fulfilling some of the customer
expectations like a broader product variety provide
McDonald’s a great scope for improvement.

15
 CHATER 3: THE SUPPLY CHAIN
 SUPPLY CHAIN
Supply chain is one of the critical factors for the smooth
functioning of any business. And when we are talking
about fast food business with McDonald’s as the subject
of the study it can expected a Supply Chain model of one
of the highest precision. It is this unmatched Supply
chain structure, which not just ensures on time delivery
of raw materials and supplies to McDonald’s but also
enables it to cut down on it’s cost and maximize
profitability along with maintaining highest quality
standards of it’s products. The level of commitment of
McDonald’s can be gauged from the fact that even
before it set up it’s first restaurant in the country it
infused Rs.400 Crore to set up it’s delivery mechanism.
McDonald’s initiative to set up an efficient supply chain
and deploy state of art technology changed the entire
Indian fast food industry and raised the standards of
performance to international levels.
As already mentioned McDonald’s had been working
on its supply chain even before it opened its first joint in
the country. McDonald’s an international brand which as
trying to make inroads into the country, developed its
Indian partners in such a manner that they stayed with
the company from the beginning. The success of

16
McDonald’s India was achieved by sourcing all its
required products from within the country. To ensure
this, McDonald’s developed local businesses, which can
supply it highest quality product. Today, McDonald’s
India works with 38 different suppliers on a long term
basis and several other stand alone restaurants for its
various other requirements. McDonald’s distribution
centers in India came in the following order: Noida and
Kalamboli (Mumbai) in 1996, Bangalore in 2004 and the
latest one in Kolkata 2007 McDonald’s entered its first
distribution partnership agreement with Radha Krishna
Foodland, a part of the Radha Krishna Group engaged in
food-related service businesses.
The association goes back to July 1993 when it studied
the nuances of McDonald’s operations and requirement
For the Indian market. As distribution centers, the
company was responsible for procurement the quality
inspection programme, storage, inventory management,
deliveries to the restaurants and data collection,
recording and reporting.
Value added services like shredding of lettuce, re-
packing of promotional items continued since then at
the centers playing a vital role in maintaining the
integrity of the products throughout the entire ‘cold
chain’.

17
 Cold chain was one of the unique concepts of
McDonald’s supply chain in India, on which it had spent
more than six years to get the system into place. This
system brought about a veritable revolution, immensely
benefiting the farmers at the one end and enabling
customers at retail counters get the highest quality food
products, absolutely fresh and at great value.
Throughout its unique and cold chain, McDonald’s has
been able to both cut down on its operational wastage,
as well as maintain the freshness and nutritional value of
raw and processed food products. This has involved
procurement, warehousing, transportation and retailing
of perishable food products, all under controlled
temperatures. The following list of suppliers, who build
up the major supply chain of McDonald’s, reveal how
this ‘cold chain’ works and contributed towards the
efficiency of McDonald’s.

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 Dynamix Diary Industries ( supplier of cheese)
Dynamix has brought immense benefits to farmers in
Baramati, Maharashtra by setting up a network of milk
collection centers 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 and whey
protein and humanized baby food.
 Stringent quality control measures and continuous
Research & Development
From farm two degrees Celsius in 90 minutes is the first
step to quality. For example, the Rs. 262-crore Dynamix
Dairy Industries, located in Baramati in Pune district of
Maharashtra, manufactures cheese slices for
McDonald’s at 10 metric tone per month.
Dynamix has helped set up 15 bulk cooling centers
throughout the district from which it purchases milk.
Each cooling center, which is equipped with modern
measuring and Testing equipment and a large cooling
tank, is not more than a few kilometers away from local
diary farms. A farmer can deliver milk even twice a day

19
on his bicycle and get a printed receipt on the spot,
which also lists the quality of the milk supplied by him as
per fat content, colour and solids content.
If the milk is sub-standard or adulterated, it is rejected
on the spot. A batch of milk can vary from one litre to 10
liters, or more. Each batch is mixed in one large stainless
steel cooler and chilled immediately to two degrees
Celsius to stop bacterial growth and preserve freshness.
From this point onwards, until just before the burger is
actually served in a McDonald’s restaurant hundreds of
kilometers away, the temperature is never allowed ti
increase.
When the refrigerated milk arrives at the Dyamix plant
at Baramati, the milk in every single tanker is thoroughly
tested and rejected if found sub-standard, adulterated
or contaminated. The sophisticated testing lab can check
fat content with an accuracy of 0.1 percent. It can even
detect minutes of traces of pesticides or antibiotics
administered to cows.
This instant feedback and the rejection of the entire
tanker-forces farmers to follow the best practices in
terms of animal husbandry, use proper feeds, cut down
on the indiscriminate use of pesticides and animal
medicines and completely stop even the slightest
attempts at adulteration.

20
 Trikaya Agriculture( Supplier of Iceberg
Lettuce)
Implementation of advanced agricultural practices has
enabled Trikaya to successfully grow specialty 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 point
 Pre-cooling room and a large cold room for post-
harvest handling.
 Refrigerated truck for transportation.
Trikaya Agriculture, a major supplier of iceberg lettuce
to McDonald’s India, is one such enterprise that is an
intrinsic part of the cold chain. Exposure to better
agriculture management practices and sharing of
advanced agricultural technology by McDonald’s has
made Trikaya Agriculture extremely conscious of
delivering its products with utmost care and quality.
Initially lettuce could only be grown during the winter
months but with McDonald’s expertise in the area of
agriculture, Trikaya Farms in Talegaon, Maharashtra, is
now able to grow this crop all the year round.
McDonald’s has provided assistance in the selection of

21
high quality seeds, exposed the farms to advanced drip-
irrigation technology, and helped develop a refrigerated
transportation system allowing a small agri-business in
Maharashtra to provide fresh, high quality lettuce to
McDonald’s urban restaurant locations thousands of
kilometers away. Post-harvest facilities at Trikaya
include a cold chain consisting of a pre-cooling room to
remove field heat, a large cold room and a refrigerated
van for transportation where the temperature and the
relative humidity of the crop is maintained between 10C
and 40C and 95% respectively.
Vegetables are moved into the pre-cooling room within
half an hour of harvesting. The pre-cooling room ensures
rapid vacuum cooling to 20C within 90 minutes.
The pack of house pre-cooling and cold room are located
at the farms itself, ensuring no delay between
harvesting, pre-cooling, packaging and cold storage.
With this cold chain infrastructure in place, Trikaya
Agriculture has also a plan to export this high value
product to other international markets, especially to
McDonald’s Middle east And Asia pacific operations.
McDonald’s expertise in packaging, handing and long-
distance transportation has helped Trikaya to do trial
shipments to the Gulf successfully.

22
In addition to export, McDonald’s assistance has
enabled Trikaya Agriculture to supply this crop to a
number of star-rated hotels, clubs, flight kitchens and
off shore catering companies all over India.

23
Vista Processed Foods Pvt. Ltd. (supplier of
chicken and vegetable range of products
including fruit pies)
A joint venture with OST Industries Inc. USA, McDonald’s
India Pvt. Ltd. Produces a range of frozen chicken and
vegetable foods. A world class in infrastructure at their
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.
Vista Processed Foods Pvt. Ltd. McDonald’s suppliers
for the chicken and vegetable range of products, is
another important player in this cold chain. Technical
and financial support extended by OSI Industries Inc,
USA and McDonald’s India Private Limited have enabled
vista to set up world-class infrastructure and support
services. This includes hi-tech refrigeration plants for
manufacture of frozen food at temperatures as low as
-350C. This is vital to ensure that the frozen food retains
it freshness for a long time and the ‘cold chain’ is
maintained. The frozen product is immediately moved
to cold storage rooms. With continued assistance from

24
its international partners, Vista has installed hi-tech
equipment for both the chicken and vegetable
processing lines, which reflects the latest food
processing technology(de-boning, blending, forming,
coating, frying and freezing.) For the vegetable range,
the latest vegetable mixers and blenders are in
operation. Also, keeping cultural sensitivities in mind,
both processing lines are absolutely segregated and
utmost care is taken to ensure that the vegetable
products do not mix with non-vegetarian products. Now,
at vista, a very wide range of frozen and nutritious
chicken and vegetable product is available. Ongoing R&D
both locally and in the parent companies, work towards
innovation in taste, nutritional value and convenience.
These products, besides being supplied to McDonald’s
are also offered to institutions like star-rated hotels,
hospitals, project sites, caterers, corp, corporate
canteens, schools and colleges, restaurants, food service
establishments and coffee shops. Today, production of
better quality frozen foods that are both nutritious and
fresh has made Vista Processed Foods Pvt. Ltd a name to
reckon within the industry.

25
 RadhaKrishna Foodland (Distribution for
Delhi and Mumbai)
An integral part of the RadhaKrishna Group, Foodland
specializes 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 Degree
Cel.
 Effective process control for minimum distribution
cost.
McDonald’s local supply networks through RadhaKrishna
Foodland, which operates distribution centers(DC’s) for
McDonald’s restaurants in Mumbai and Delhi. The DC’s
have focused all their resources to meet McDonald’s
expectations of cold, clean and On-time Delivery and
plays a very vital role in maintaining the integrity of the
products throughout the entire ‘cold chain.’ Ranging
from liquid products coming from Punjab to lettuce from
Pune, the DC receives items from different parts of the
country. These items are stored in rooms with different

26
temperature zones and are finally dispatched to the
McDonald’s restaurants on the basis of their
requirements The company has both cold and dry
storage facilities with capability to store products up to -
220C as well as delivery trucks to transport products at
temperatures ranging from room temperature to frozen
state.

27
 Amrit Food (supplier of long life UHT Milk
and Milk Products for Frozen Desserts)
Amrit Food, an ISO9000 company, manufactures widely
popular brands- Gagan Milk and Nandan Ghee at its
factory at Ghaziabad, Uttar Pradesh.
The factory has
 State-of-the-art fully automatic machinery requiring
no human contact with product, for total hygiene.
 Installed capacity of 6000 Itsr/hr for producing
homogenized UHT (Ultra High Temperature)
 Strict quality control supported by a fully equipped
quality control laboratory.
All the suppliers adhere to Indian government
regulations on food, health and hygiene while
continuously maintaining McDonald’s recognized
standards. As the ingredients move from farms to
processing plants to the restaurants, McDonald’s Quality
Inspections Programme(QIP) carries out quality checks
at over 20 different points in the cold chain system.
Setting up of the cold chain has also enabled it to cut
down on operational wastage.
Hazard Analysis Critical Control Point (HACCP) is a
systematic approach to food safety that emphasizes
prevention within its suppliers facility and restaurants
rather than detection through inspections of illness or

28
presence of microbiological data. Based on HACCP
guidelines, control points and critical points for all
McDonald’s major food processing plants and
restaurants in India have been identified. The limits have
been established for those followed by monitoring,
recording and correcting any deviations. The HACCP
verification is done at least twice in a year and certified.
The relationship between McDonald’s and its Indian
suppliers is mutually beneficial. As McDonald’s expands
in India, the supplier gets the opportunity to expand his
business, have access to the latest in food technology,
exposure to advanced agricultural practices and the
ability to grow or to export. There are many cases of
local suppliers operating out of small towns who have
benefited from their association with McDonald’s India.

29
30
 CHAPTER 4: MARKETING MIX STRATEGY
McDonald’s Marketing Mix (5P’s)
After segmenting the market, finding the target
segment and positioning itself, each company needs to
come up with an offer.

The 5P’s used by McDonald’s are:

1. Product
2. Place
3. Price
4. Promotion
5. People
1. Product : How should the company design ,
manufacture the product so that it enhances the
customer experience?

31
Product is a physical product or service offered to the
consumer. Product includes certain aspects such as
packaging, guarantee, looks etc. This includes both
tangible and the non-tangible aspects of the product
and service.
McDonald’s has intentionally kept its product depth and
product width limited. McDonald’s studied the
behaviour of the Indian customer and provided a totally
different menu as compared ti its international offering.
It dropped ham, beef and mutton burgers from the
menu. McDonald’s success worldwide has been
attributed to the “Think global, Act Local and Sell like a
Retailer” philosophy. McDonald’s followed this
international mantra while opening doors to the Indian
subcontinent. With respect to the cultural and
traditional sentiments, not only did McDonald’s not

32
serve it’s most popular product The BIGMAC (a beef
burger) but also developed an egg-less mayonnaise for
the first time in the worldwide system.

To suit the Indian palette, the Mc Aloo TikkiTM burger,

Veg Pizza McPuffTM and chicken McGrillTM burger were
among other offerings that were formulated and
introduced using spices favoured by Indians.
Furthermore, each restaurants kitchen was designed to
maintain separate Vegetarian and Non-vegetarian food
counters.
Reasons For Introducing the Product
 Beef which was a taboo in the Indian Market was
planned to replace by filling of Aloo Tikki to match up
with the Indian culture.
 Salad Sandwich was introduced targeting the people
who are more conscious about health.

33
 The introduction of Jain salad in the outlet keeping
the Jain people rituals of not eating ginger, onion and
potatoes etc.
 Seeing to the Indian mentality of having wheat
chapattis led to the idea to introduce paneer salsa
wrap and chicken Mexican wrap.
 Filet-o-fish was introduced keeping in mind the
demand of the sea food lovers having no competitors
in the segment before.
2. Place : Where should be the product available and
the role of distribution channels.
The place mainly consist 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
quantity, Nearly 50% of U.S.A is within a 3 minute drive
from a McDonald’s outlet.
There is certain degree of fun and happiness that a
customer feels each time he dines at McDonald’s. There
are certain value propositions that McDonald’s offer to
it’s customers based on their needs. McDonald’s offer
hygienic environment, good ambience and great
services. Now McDonald’s have also started giving
internet facility at their centers and they have been
playing music through radio instead of the normal music.
There are certain dedicated areas for children where

34
they can play while their parents can have some quality
time together.
3. Price : What should be the Pricing strategy?

Pricing includes the list price, the discount functions

available, the financing options available etc. It should
also take into the consideration the probable reaction
from the competitor to the pricing strategy. This is the
most important part of the marketing mix as this is the
only part which generates revenue. All the other three
are expenses incurred. The price must take into
consideration the appropriate demand-supply chain
equation.
McDonald’s has certain value pricing and bundling
strategies such as Happy Meals, Combo Meals, Family
meals etc. To increase overall sales volume.
Branded Affordability : Having established the image of
comfort and familiarity, it now was time to add new

35
people to the fold. The Indian consumers continued to
perceive McDonald’s as an expensive eating out option.
The challenge was to overcome this perception and be
accepted as an affordable brand. While the patented
products like McVeggieTM and McChickenTM continued to
cater to the patrons, the company needed to broaden
the audience base to further entrench into the market.
McDonald’s found success in its strategy of Branded
Affordability and introduced the “Happy price Menu” of
Rs.20/- Engaging and memorable campaigns were
created to establish the Branded Affordability
communication- The ‘Bahanas’ the yesteryears prices, or
‘bees main full dhamal.’
4. Promotion : What is the suitable strategy and
channels for promotion of the product?

36
The various promotion channels being used by
McDonald’s effectively communicate the product
information are given above. A clear understanding of
the customer value helps decide whether the cost of
promotion is worth spending.
There are three main objectives of advertising for
McDonald’s are to make people aware of an item, feel
positive about it and remember it. The Right message
has to be communicated to the Right audience through
the Right media. McDonald’s does it’s promotion
through television, hoardings and bus shelters. They use
print ads and the television programs are also an
important marketing medium for promotion.
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 main, baap ke Zamane ke daam”
 “Food, folks & Fun.”
 “I’m loving it.”

Familiarity breeds’ comfort:

The first step of brand was to establish itself as a
familiar comfortable place. Taking a cue from the Indian
Family values, the year 2000 saw the first ever

37
McDonald’s ad aired in the country. A child, who is
unable to recite a poem and suffers stage fright, but
when he enters McDonald’s he easily recites it when in
the comfortable familiar environment of McDonald’s.

Working on the insight similarity when his family moves

into a new place, the child misses all that has always
been so familiar and dear. He then has the comfort of
something that is dear and familiar to bring a smile to
his face. McDonald’s was successful in creating an image
of a warm and comfortable ambience through it’s ads.

“McDonald’s Main Hai Kuch Baat”: Making McDonald’s

the consumers’ favourite place and way to eat. While
kids and families were key, it was also important to talk
to the generation that had not grown up on McDonald’s
burgers and fries. An adult who works with logic and
Reasoning would need a reason tempting enough. And
what better way to talk to them than talk about
McDonald’s core competence.

Even in dreams:
McDonald’s realized that the way to draw more
consumers would be to increase the visibility of the
brand and its product. The more a person saw food, the

38
grater his urge would be to try it out. The company
came up with its next round of campaign to address and
reflect this. The campaign showed different people
dreaming shout about McDonald’s. It depicted how the
consumers were totally involved with McDonald’s and
the food. New product stories delivered in a memorable
and engaging approach. It was imperative for the
success of the brand to be ‘Indianized’ to continuously
speak to consumers in their language without taking
away from its core American parentage. ‘From tears to
smile’ campaigns were produced to introduce new,
scrumptious products.

Let go the child within you:

The general brand perception of McDonald’s India was
that of a place for kids. While the campaigns had worked
in the past, targeting kids, McDonald’s recognized the
fact that it could not always depend on the kids niche.
When kids move up to the consumption chain, there is a
possibility of losing out on consumers. Moreover, the
family outings with children only happen over the
weekends and holidays. It was imperative to rope in
adults who would patronize the brand over the
weekends. Consequently, the next series of campaigns
were targeted to drive in adult traffic to break away

39
from the perception. The ad depicted a father being
invited to a birthday party at McDonald’s. He is not ease
with the idea of visiting McDonald’s since he perceives it
as a kids place. His child reminds him of the McCurry
PanTM, Filet-o-FishTM that he would be able to relish at
the birthday party. The food boosts the father to go to
the party, where to his astonishment is his boss’ party.
The ad asserted that people celebrate birthdays and
occasions at places they are comfortable in!

5. People: How to converge the benefits of internal and

external marketing?

McDonald’s understands the value of both its

employees and its customers. It understands the fact
that a happy employee can serve well and result in a
happy customer. McDonald’s continuously does
Internal Marketing. This is important as it must precede
external marketing. This includes hiring, training and
motivating able employees. This way they serve
customers well and the final result is a happy customer.

The level of importance has changed to be in the

following order ( the more important people are at the
top)

40
1. Customers
2. Front line employees
3. Middle level Managers
4. Front line managers
The punch line “I’m loving it” is an attempt to show that
the employees are loving their work at McDonald’s and
will love to serve the customers.

41
 CHAPTER 5: BENEFITS TO EMPLOYEES
Employee benefits

McDonald’s provides employees with many

opportunities to talk to your management on any topic
related to your employment/ work. To begin with we
follow an “open door” policy which means that all team
members at McDonald’s are approachable at any time.
Crew meetings are held every month in your restaurant
where all the store related issues are discussed. Besides
this you will also have rap sessions and meet 5 where
you can express your view candidly.

Rap session: Rap sessions are small informal discuss

between crew and management for the purpose of
discussing ideas, suggestions and problems. These
sessions will be held about once every three months or
whenever needed by the store manager or a member of
the management team. Rap sessions are an opportunity
for the crew to make their views known to the company.
You will be paid for attending a rap session.

Opinion survey: About once a year we will ask all

employees to complete a confidential questionnaire

42
relating to their work and the operation of the store, the
answer will help us to improve our management of the
restaurant and conditions of employment.

Open door policy: Should an employee have questions

about the contents of their handbook or have any basis
for concern about any work conditions the management
team’s office door is always open for private discussions
Employees should be encouraged to use this “Open door
policy” whenever they wish. Likewise, operations,
human resources manager encourage you to use the
open door policy if you have a concern unresolved by
your immediate supervisor.

43
 FACILITIES
Crew room: This room is provided for the employee for
recreation and rest during the break time. The employee
can study, listen to music, and get trained in this room.

Break: It is not easy to maintain quality, service and

cleanliness. It take hard work and hustle. To keep energy
level high, all the crew member working about five
consecutive hour are eligible for an unpaid break of an
hour.

Employee meal: One of the best things about working

for McDonald’s is for food. Employees can enjoy quality
Nutritious food at world standard hygiene levels. It is
free to managers and crew. All the meals consumed
must be recorded and consumed in the restaurants itself.

Locker facility: Lockers are available for he employees

use at restaurants for keeping the personal belonging in
a safe and secure place during the shift.

Other facilities: In addition to the above facilities the

employee also enjoys with the team member during the
yearly store outing and various inter-store activities

44
arranged system-wise and patch wise. These activities
are fun and provide opportunity to have a good time
and know fellow employees better.

Employee Recognition

Incentives
All the crew at McDonald’s have the opportunity to
get McDonald’s branded merchandise. Each restaurant
is allotted “Mahabucks” every month based on monthly
store allocation and various inter-store competitions.
Mahabucks is a crew incentive programme where the
Mahabucks coupons can be redeemed for the set of
utility items available for that year.

The employee have the opportunity to earn the

Mahabucks by becoming face of the month, face of the
quarter, various rewards organized by the stores and
through inter store competitions.

Employee referral programme

The employee can refer any friend who is interested
in working at McDonald’s for a crew member’s job at
any of the McDonald’s store. The employee receives an

45
incentive after the referred crew member completes 3
months in the organization.

Graduate Career Advancement Programme

McDonald’s believe that investing in the people is one
of the best ways to build the brand and assure customer
loyalty. Crew member who completes their graduation
are recognized for their academic growth by putting
them on training programme which help them to
become manager faster.

46
 Retirement Benefit
 Employee provident fund
All the employee are eligible for the provident fund
schemes as per the company’s rule. Provident fund is a
retire benefit provided to every employee of McDonald.
Every employee contribute 12% of his basic salary to
his/her PF account. There is an equal contribution by the
Employer.
However 8.33% of the employer’s contribution is
deposited to the Employee’s pension fund and the rest
goes to the Provident Fund.

 Employee State Insurance

All the crew member are eligible for the Employee
State Insurance as per the ESI rule. This benefit is
provided to the employee for free medical treatment in
case of sickness, maternity and employment injury. The
employee contribute 1.75% of his gross salary whereas
the employer contributes 4.75%

 Bonus
Depending upon the law applicable at the relevant
time the employee receive an amount of 8.33% of the
basic salary earned during the financial year.

47
 Gratuity
All the full time employee who have completed 5
years of continuous employment with the company are
eligible for gratuity. The employee will receive an
amount of 15 days basic salary for week worked. The
amount is given at the time of separation o retirement
from the company employer. However 8.33% of the
employer’s contribution is deposited to the Employee’s
pension Fund and the rest goes to the Provident Fund.

48
 CHAPTER 6: McDonald’s IN RESTAUANT
FIELD
THE McDonald’s EXPERIENCE

Marketing in a service industry is becoming an

increasingly complex challenge. The paradigms of
service marketing demand a passionate understanding
of customer expectations and perceptions, and licking
them to a product design and delivery as well as
operational planning. This is where McDonald’s has
excelled due to its ability to successfully integrate the
customer’s perspective in its products and operations in
a comprehensive manner. The revamped menu in India
is an example of McDonald’s strategy of integrating the
customers perspective in its products. And, the
operational integration is evident from McDonald’s
emphasis on its suppliers as its customers as well as its
treatment of its consumers as co-producers of services.

The ultimate aim of service marketing is not just to

become a Service Leader but to create a Service Brand.
The service delivery process is the key to achieving this
aim of service Marketing

49
During the service Delivery Process, each moment of
interaction between the firm and the customer, called
“Moments of Truth” helps understand the opportunities
that a firm has to win or lose the customer. For example,
these “Moment of Truth” are created for McDonald’s
every time the guard at the McDonald’s outlet meets
the customer, every time an attachment takes down the
order from the customer waiting in the queue, every
time the cashier interacts with the customer, every time
the attendant cleans the tables etc.

50
 “Moments of Truth”- The Service Encounter

Managing these “Moments of Truth” is a great challenge

in Service Marketing especially due to customer’s
involvement as a co-producer of services (e.g.
McDonald’s self-service concept wherein the customer
not only collects the order but also cleans the table after
consuming the food) However, McDonald’s has been
able to create a great experience for its customers by
understanding the nature of the Entire Service delivery

Process and the various stages in the process that are

exposed to the customers. Transparency in the

51
processes at its outlet has helped McDonald’s bring the
back office in its outlet at the front so that the customer
is able to know the operations and provide feedback on
service design improvements.
Internal customer focus is equally important as
External customer Orientation in order to win these
“Moments of Truth” McDonald’s focus on its people and
their service delivery methods therefore plays a very
important role in creating a successful Service Brand The
quality and the consistency of the service delivered by
McDonald’s have been greatly enhanced by the
combination of the factors mentioned above. This has
helped McDonald’s become Service Leader and a
successful Service Brand. This is evident from the fact
that very few of its customers opt for take-home parcels
or home deliveries while the most of them prefer to eat
at the outlet and enjoy the McDonald’s experience.

52
 IMPORTANCE OF PLC IN McDonald’s

The requirement of customers change over time and

thus the product offering has to be changed accordingly.
What is the fashion today may be out of market within
few weeks. Thus continuous innovation is required.

To counter these changes McDonald’s has continuously

introduced new products and has phased out the old
ones which were at the decline stage of their PLC. The
introduction is timed such that the new product does
not cannibalize the product already in the maturity or
growth stage. Thus the secret lies in getting profits with
different products in the different stages of the PLC.

53
A perfect example of revitalizing a product in decline
phase

The French Fries have been an important part of the

McDonald’s menu worldwide. But now it was in the
stage of decline and was actually not generating proper
return. In an attempt to revitalize it, a new variant was
introduced namely Shake Shake Fries. This is being
served with chatpata spice mix which has resulted in
increase in the sales of French Fries and has elevated it
from to the decline stage. This is used to delay the
decline of a well-established product which has the
potential of generating further revenue.

54
 CHAPTER 7: DATA ANALYSIS

Competitors Analysis

McDonald’s has been a leading fast-foods outlet in Vile

parle. But the outlay understudy has other competitors
eating away into its market share. In addition to its
traditional rivals KFC, Dominos, Pizza Hut the firm
encounters new challenges. Jumbo king competes using
a back-to-basics approach of quickly serving up burgers
for time pressed consumers. On the higher end, the KFC
has become potent competitor in the quick service field,
taking away customers from McDonald’s. Perhaps in the
new environment, fast, convenient service is no longer
enough to distinguish the firm. At this time, a new
critical success factor may be emerging; the need to
create a rich, satisfying experience of consumer. This
bring us to service and experience based competition
which McDonald’s can use for competitive advantage
against Jumbo King. Keeping in mind the demographic of
the area. McDonald’s has Wi-Fi enabled the outlet to
cater to the student community. It Is for this overall
“Food, Fun & Folks” Experience that customers pay a
premium over the other competitors.

55
Competition also reduces product lifecycle; inducing
firms to revise their products portfolios and to revisit
their product market to understand changing needs,
expectations and perception of different market
segments. The new McBreakfast would be introduced
between 6 to 11 AM as a pilot project. This would open
up a whole new revenue stream for McDonald’s by
tapping into the student and working population by
providing a healthy and wholesome breakfast. This
shows how demographic shift can affect the demand for
products and services. McDonald’s has anticipated these
changes to maintain its competitive edge.

Two Dimensional Perceptual Mapping

56
 SWOT ANALYSIS

Strength Weakness
 Strong Brand  Low depth and width
 Customer Intimacy product
 Product innovation
 Supplier integration

Opportunity Threat
 Expand into Tier 2 and  Changing customer
Tier 3 cities lifestyle and taste
 Entry into breakfast  Increased competition
category from local fast food
outlets like Jumbo King

57
The Road Ahead
 Entry to tier 2 and tier 3 cities - The main target
customer for McDonald’s is the new urban Indian
Family. With the customer demographic constantly
changing and tectonic social and cultural shifts being
observed in Tier 2 and Tier 3 cities due to globalization,
the company is now expanding to Tier 2 cities like
Pune and Jaipur.

 Rolling out McBreakfast across all outlets - In India,

the company has recently launched its entry into the
breakfast food category This is how launched on a
pilot basis on select stores. In Mumbai, it available at
the Vile parle outlet. The company views this category
as a key growth driver in future.

58
 CHAPTER 8: EXHIBITS

Exhibits

1. McDonald’s Indian Menu

Vegetarian Non vegetarian
Mc Veggie Chicken Maharaja Mac
Mc Aloo Tikki Mc Chicken Burger
Paneer Salsa Wrap Chicken Nuggets
Salad Sandwich Wrap Chicken Mexican
Potato Wedges Fillet-O-Fish
Pizza Mcpuff

Survey Questionnaire

1. Gender of the person?

59
2. Have you ever heard of OR visited at McDonald’s?

3. How was your experience when you visited to it for

the first time?

4. Which is your favourite food at McDonald’s?

60
5. Is the product line in McDonald’s adequate?

6. What is the main problem you faced at McDonald’s?

61
7. Which area do you think needs the most
improvement ?

8. What do you like about McDonald’s?

9. Do you use special offer/ coupon for order at

McDonald’s?

62
10. How often do you visit the McDonald’s ?

11. Are you satisfied with the services provided by

McDonald’s?

63
12. What time of the day do you prefer to eat at
McDonald’s?

13. Which of the following do you prefer ?

64
14. Which kind of food you prefer at McDonald’s?

15. Do you think McDonald’s will be No.1 fast food

chain restaurants among all of it’s competitors ?

65
 CONCLUSION
 Indian Growth
McDonald’s has invested about 7bn rupees in India since
it entered the market in 1996 and reported growth of
about 40% India has a population of over 1 billion and an
emerging and affluent middle class. The food chain has
tailored a number of its products to the Indian market,
including the Paneer Salsa Wrap, McSpicy, IndiMcSpicy,
McAloo Tikki & the mutton speciality for a country which
does not eat beef, the Chicken Maharaja Mac.
From the above information it is very clear that
McDonald’s is aggressive about it’s Indian operations
And this fast food chain is here to stay feeding millions
Of Indians the Jai ho way think global local act.

66
 BIBLOGRAPHY

 Search Engine Site

1. https://www.google.co.in/

 Websites
2. https://en.wikipedia.org//

3. https://www.aboutmcdonalds.com/

4. https://www.mcdonalds.com/us/

5. https://www.surveymonkey.com/

67
 QUESTIONNAIRE

DEAR RESPONDENTS,
The actual reason of conducting this research endeavour
is to study the How marketing strategies of McDonald’s
are different from other food Outlet/Restaurants. The
responses given by you would have great importance
and will help me in arriving on logical solutions. I hereby
declare that the information given by you shall be kept
secretly and shall be used for study perspective. Your
information shall not be disclosed.

Yours faithful,
(SUYOG PATIL)

Name:

1) Gender?
a) Male b) Female

2) E-mail id

3) Have you ever heard of and visited at McDonald’s?

a) Yes b) No

68
4) How was your experience when you visited to it for
the first time?
a) Excellent b) Neutral c) Poor

5) Which is your favourite product at McDonald’s?

a) Big Mac Burger b)Cheese Burger c) Mc Chicken

6) Is the product line in McDonald’s adequate?

a) Yes b) No c) Average

7) What is the main problem you faced at McDonald’s?

a) Hygienic Problem b) Wrong order c) Nothing to
Complain about

8) Which area do you think needs the most

improvement?
a) Delivery time b) Product Variety c) Offers & Discount

9) What do you like about McDonald’s?

a) Hygiene b) Quick service c) Location

10) What is the first thing that strikes in your mind

about McDonald’s?

69
11) Do you use special offer/ coupon for your order at
McDonald’s?
a) Yes b) No

12) How often do you visit the McDonald’s?

a) Everyday c) once a month
b) b) Once a week d) Less than once a month

13) Are you satisfied with the services provided by

McDonald’s?
a) Yes b) Sometimes c) Not at all

14) What time of the day do you prefer to eat at

McDonald’s?
a) Morning c) Evening
b) Afternoon d) Night

15) Do you think McDonald’s wil be No.1 fast food

restaurants among all of it’s competitors?
a) It already is b) Most likely to c) Never

16) Which of the following do you prefer?

a) McDonald’s c) KFC
b) Burger king d) The good burger

70
17) Which kind of food you prefer at McDonald’s?
a) Vegetarian b) Non-Vegetarian

71