MC DONALD’S

GETS HEALTH
CONSCIOUS

PRESENTED BY:

AMIT PANDEY PGP21019

KUNAL CHANDHOK PGP21036
PRANJIL KULSHRESTHA PGP21127
SAHIL CHHIBAR PGP21157
MAYANK MISHRA PGP21217
AKSHAY AGGARWAL PGP21250
 INTRODUCTION
 McDonald's is the global fast food giant.
 Founded in 15th may 1940 in CALIFORNIA .
 Founders – RICHARD AND MAURICE
MACDONALDS
 Headquarters – Chicago, Illinois U.S.
 Forty eight years down the line , they are the world’s
largest food-service chain with more than 31,000
restaurants in 119 countries, serving 47 million
customers every day and employing more than 1.5
million
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

Localization:
•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 like Child Education , Pulse
Polio etc.
 BUSINESS MODEL
 McDonald’s corporation earns revenue as an investors in
properties, as franchiser and as an operator of restaurants.
 15% of McDonald’s restaurants are owned and operated by
McDonald’s corporation directly.
 The others are operated through variety of franchisee
agreement and joint ventures.
 In addition to ordinary franchisee fees and marketing fees,
McDonald’s also collect rent on the basis of sales.
 McDonald’s In India developed a range of 100% pure Veg
food , along with Non-Veg range.
 McDonald’s efforts were aimed purely at driving traffic in.
 Objectives of Promotion
Strategy

• Key objective of Mcd’s promotion strategy were to ,

“Get them in. Trade them up. Get them back.”
 Get Them in:- To make consumers step into Mcd’s
restaurant.
 Trade Them up:- To shift the consumer to Mcd’s
core products like Burger with cheese, McChicken
Burger, Fillet-o-Fish, etc.,
 Get Them Back:- To increase the frequency of visit
by making the Mcd’s brand experience.
 STP of McDonald’s

What makes McDonald’s stand out of the crowd and

how McDonald’s came out as market winners?
• McDonalds has segmented their products according
to bases of Demographic, Psychographic and
Behavioral. They have segmented their products and
positioned their products according to kids, students
and family. But they haven’t segmented their
products according to the Adult target group.
 STEPS
 Segmentation

 Targeting

 Positioning
 SEGMENTATION
• Market segmentation is defined as dividing a single
market into smaller segments. Dividing the market
into small segments is to make it simple to address
the needs of smaller groups of customers and try to
manufacture different products according to their
consuming habits. It can be done on the basis of age,
gender, lifestyle, region, etc.
McDonalds in India segmentation it has done is on three different
bases:

1) Demographic Segmentation:
Kids, Family and Students

2) Psychographic segmentation:  
Convenience and lifestyle

3) Behavioral segmentation:
Occasions, for e.g. Birthday Parties of kids
 TARGETING
• McDonald’s can get more customers by whom they can get
most of the share of India Fast Food Industry but they should
emphasis on their Targeting technique.

• To Get a Sustainable Advantage over their competitors

McDonald’s should introduce new as well as modified
products which contains low cholesterol content in it.

• The main target customer for McDonald’s includes children

and their parents, business customers, and teenagers. Perhaps
the most obvious marketing for McDonald’s is its marketing
towards children and their parents.
 POSITIONING
• Positioning is a process of creating an image in the mind of
consumers by which consumers can understand the uniqueness
about your product when compared to competitor’s product. In
India positioning of McDonalds has been directed as a Family
restaurant.

• Then they started positioning according to the kids as well by

introducing new advertising of toys with their products such as
“Happy Meal”. In the start they made certain special efforts to
not allow it to convert into a teenage and adults (20 to 24 years
of age) hangout place.
 SWOT ANALYSIS
 STRENGTHS
• Brand Equity…world-wide
• 42% of US fast-food hamburger business
• Consistency of food
• Successful items: Fries, Happy Meal, Big Mac, Egg McMuffin.

WEAKNESSES
• Declining market share
• Weak product development
• Quality and taste of products
• Slowed revenue and income growth
 OPPORTUNITIES
• International expansion
• Growing dining-out market
• Joint ventures with retailers (e.g. supermarkets).
• Consolidation of retailers likely, so better locations for
franchisees.

 THREATS
• Mature/overstored industry
• Strength of competition
• More health-conscious consumers
• Changing demographics
 VISION
“The world’s best quick service restaurant
experience.”
To achieve their vision they are focused on three world
wide strategies.
• Be the best employer for people in each community
around the world.
• Deliver optional excellence to customers in each
restaurant.
• Achieve enduring profitable growth by expanding the
brand and leveraging the strengths of McDonald’s
system through innovation and technology.
 CONSUMER ANALYSIS
Customer characteristics.
• India is the second largest populated country in the world . It has 28 states
and almost 4 times the population of USA. India has more than four billion
population.
• Three fourth of the population lives in Urban Areas. Though per capita
income is very low in India but still people like to spend on costly and
eating out.
• Consumer in India are highly family oriented. McDonlad’s target high
income earner, middle income earner and lower middle income earner in
India.
• Indian customer are getting awareness through internet, TV, Newspaper,
Radio, Magazine etc.
• Middle income group is getting bigger size day by day as a result of
economic boost in India and that is very good news for McDonald’s .
• Indian customers are now getting environment awareness and like to use
ecofriendly products.
 Contd..
• Family system gives a big chance for McDonald’s to get their
sale rise as Indians are buying food in bulks.
• Indian consumers are becoming very open minded which is a
positive sign for McDonald’s.
• For McDonald’s to succeed as they are now they should go to
expand in urban areas as well as rural areas and target middle
and lower income earners and beside this they should
introduce certain products which can be affordable by low
income earners.
• Customers like spicy foods and McDonald’s has introduced
many products which are spicy and tasty according to the
preference of the Indians.
 MARKETING MIX
PRODUCT
In India McDonald’s has diversified product range focusing more on the
vegetarian products as most of the consumer in India are primarily vegetarian.
PRICE
In India McDonald’s classifies its product into a categories into 2 categories
namely the branded affordability (BA) and branded core value products
(BCV).
PLACE
McDonald’s outlets are very evenly spread throughout the cities making them
very accessible.
PROMOTION
At McDonald’s the prime focus is on targeting children. In happy meals too
which are targeted at children small toys are given along with the meal.
OTHER FACTORS WHICH ALSO AFFECTS ARE:
• People
• Process
• Physical evidence
MCDONALD’S ORGANISATION
STRUCTURE
• Highly tight control of the firm.

• Easily operate the company.

• Improving employee’s performance.

• Atmosphere of cooperation and teamwork.

COMPETITIVE ADVANTAGE
• Striving to be cost leaders: Prices cannot matched by
competitors.

• The speedy delivery of food.

• Strong global presence and largest market share in

fast food industry.

• Net competitive advantage.

 POLITICAL INFLUENCE
• India is quite rich as far as the political structure and policies
are concerned that is the reason why international organization
face difficulties when they are entering in India. In the similar
manner it can be said that India is the nationalist country that
is the reason why they create difficulties for international
entrants. However, there are certain other factors like
consumer taxation, different political infrastructure and the
scenario of the global market.
• Political parties are against fast food chains as they want to see
only vegetarian restaurants in their country. Their party
members always protest against fast food using meat in their
menu.
• Good news is that India is changing slowly from nationalistic
society to liberal mind set up and McDonald’s expanded very
fast in the last decade.
ECONOMICAL INFLUENCE
• Economic variables such as currency exchange rate,
employment, interest rate, tax ratio and need of international
supply.
• Most of the organization depend on foreign supply of raw
materials for their products making.
• Currency exchange also have a great impact on any
organization.
• Business for McDonald’s for India with high employment
rate, dealing in rupees as currency and millions of people
living below poverty line is a concern for McDonald’s. But
India is having a booming economy, low tax rate and
availability of labor in abundance and development of middle
class society in India is a positive sign for McDonald’s future.
SOCIOCULTURAL INFLUENCE
• In India society is very versatile. Though India is heavily populated but
still Hindu’s don’t eat meat.
• Muslims only eat Halal and they don’t eat pork. In India religion has a very
big impact on society. For McDonald’s it is a big concern.
• But in India life style is changing, earning power is increasing, middle
class is getting bigger in its size and people like to eat outside in
restaurants this has a very good impact on society.
• However, the social factors that are associated with McDonald’s India are
the suppliers and the workforce of the organization is fragmented and they
are diversified.
• In the similar manner McDonald’s have to face the pressure of different
social and ethnic groups that are prevalent in the socio culture environment
of India.
• However, the favorable element for McDonald’s is that people of India will
get employment through this organization and this would be favorable for
both McDonald’s sand the local citizens of India.
 TECHNOLOGICAL INFLUENCE

• One positive benefit of globalization was technological advancement.

• Although McDonald’s doesn’t use too many complicated machines in their
food production but still they need highly competitive technology.
• Technology is needed for example in supply chain management , order
taking , inventory control, easy and quick payment procedures. Use of
technology can make management more reliable, effective and cost saving
in short term as well as long term.
• Customers happiness after getting what they are looking for on time and in
a disciplinary way make them come over and over.
• In India as franchises they use high technology .They use very good till
system , good an disciplined order taking and well managed staff who
knows the proper use of technologies inside the store.
STRATEGIES OF MCDONALD: AN OVERVIEW

ENTRANCE STRATEGIES:
• In order to capitalize on the highly price
sensitive economy, and the Indian mentality of
liking anything that in foreign, McDonald’s
strategy was market penetration and the three
circles strategy. This led to localization &
branding of the company.
• They had to suit their burgers to Indian market
was a hyper price sensitive market.
TRAINING STRATEGIES:
• Induction training was conducted at the time of
employee’s joining the organisation.
• This was done through interaction as well as through
exposure with the customer through operation
training within the restaurant for a fixed period of
time
• The organization also provided numerous
opportunities of overseas training to those displaying
potential.
SUPPLY CHAIN STRATEGIES:
In the process Mc Donald’s actually encouraged entrepreneurship,
by introducing the local suppliers to its global suppliers. This
association involves transfer of state –of-the-art food processing
technology, thereby leading to an improvement in quality
standards and helping create world class manufacturing facilities
in India.
In the five-and-a-half, year until startups, Mc Donald’s spends as
much as ₹500 million to setup a supply network, distribution
centers and logistics support.
By mid 2000, some estimates placed the total investment supply
chain at almost ₹3 billion.
 MAJOR REASONS FOR MC DONALD’S
SUCCESS
• The system
• This is the 1st thing that makes Mc Donald’s so successful, by
having an effective and efficient system in a place, which exploids
the minimum wage labour available, in the form of young
teenagers who are just looking to make some cash or pickup
fundamental job skills
• Convenience
• The 2nd reason why Mc Donald’s is so popular because its
everywhere.there a Mc Donald’s every corner of the map,at
every major shopping centers, district, highways every place
which attracts even, remotely more than 10 people, will have Mc
Donald’s restaurants not to far from than
• Likability and familiarity
• The golden arches, the big M . Ronald Mc
Donald, happiness and fun; all these are the
association with Mc Donald’s which makes it so
familiar
• The Menu
• Mc Donald’s has one of the most diverse menu ,
targeting all ages from little kids to old
pensioners, and everyone else in between
 Conclusion
• Mc Donald’s recognized the unique problems and
opportunities of the Indian market the company then
took its time , adapting its products and just as
importantly its corporate strategy and has been hugely
successful since.
• At the same time, the company cannot afford to become
complacent and rest on its laurels. Any future missteps,
however small, could ruin Mc Donald’s efforts and hard
fought gains in the country, allowing the company’s rivals
to catapult past them and onto even greater success.
• In order to sustain in a very competitive market Mc
Donald’s has to continuously think of bringing in
new concepts into all its operations especially in
marketing.
• The result of a spontaneous through led to the
introduction of breakfast outlets and a chance
encounter with a technology specialist ended up
with online booking rand birthday parties and
signature outlets.
• the success of Mc Donald’s in India counld be
measured by its continuous growth in Indian fast-
food market with 210 branches across India.