Symbiosis Institute of Media and Communication, Pune

Marketing Management
-Prof. Chandan Chatterjee

Marketing Diary
Submitted By: Kritika Beri Roll no: 93 MBA Div A Batch: 2011-13

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Marketing Manageme nt of Mc donalds

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Core Marketing Concepts

Need Want Demand Satisfying hunger and thirst Fast food and drinks Mc donalds burger and other products

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Customer value
low-med low med med

high high

low

low

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Customer Value
Benefits Product Service Homogeneous products Clean, hygiene, entertainment, party rooms for birthdays, free home delivery. Help line, orders taken even though its a self service outlet. Western chain of food outlet.

Personnel Image Restheirces/Cos ts Price Time Efforts Perceived Risks

INR Rs 25 to 90 per item i.e affordable for a common man. Instant delivery on desk. Time saving Convenient: available at almost every area Increasing numbers of customers looking for food that is served in a quick and friendly way.

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Product level
Core benefit: fast food Basic product: burger Expected Product: Easy avalibility Augmented product: Socilization Potential Product: Available at lowest price as compared to other outlets of fast food chains

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Marketing Mix Tools (4 Ps)

Product American fast food chain. Price Prices vary from location to location. Place Promotion Initially available only Promoted through a in America, now in mascot (ronald every corner of the mcdonald and world different promotional strategies time to time

Provides burger, Mc chicken puffs, nuggets, In India Rs 50 wraps, drinks and iceMc aloo tiki creams In India Rs 25 Eg: Mc chicken, Mexican wrap, Coke float, Mc Swirl, etc.

Outlet in every location including highway and malls

Association with upcoming movies like Kung fu panda and giving toy as goodies of the movie wit h happy meal

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McDonalds has intentionally kept its product depth and product width limited. McDonalds studied the behavitheir of the Indian customer and provided a totally different menu as compared to its International offering. It dropped ham, beef and mutton burgers from the menu. India is the only country where McDonalds serve vegetarian menu. Even the sauce and cheese used in India are 100% vegetarian. McDonalds continuously innovates its products according to the changing preferences and tastes of its customers. The recent example is the introduction of the Chicken Maharaja Mac. McDonalds bring with it a globally reputed brand, world class food quality and excellent customer specific product features. McDonalds Indian Menu: Vegetarian McVeggie McAlooTikki Paneer Salsa Wrap Pizza McPuff Non vegetarian 4/20/12 Chicken Maharaja Mac

Product

Place
Nearly 50% of U.S.A is within a 3 minute drive from a McDonalds outlet. There is a certain degree of fun and happiness that a customer feels each time he dines at McDonalds. There are certain value propositions that McDonalds offer to its customers based on their needs. McDonalds offers hygienic environment, good ambience and great service. Now McDonalds have also started giving internet facility at their centres and they have been playing music through radio instead of the normal music. There are certain dedicated areas for children where they can play while their parents can have some quality time together. Price

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Price
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 equation. McDonalds came up with a very catchy punch line Aap ke zamane mein ,baap ke zamane ke daam. This was to attract the middle and lower class consumers and the effect can clearly be seen in the consumer base McDonalds has now. McDonalds has certain value pricing and bundling strategies such as happy meal, combo meal, family meal and happy price menu to increase overall sales volumes.
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Promotion
The various promotion channels being used by McDonalds to 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 McDonalds 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. McDonalds does its promotion through television, hoardings and bus shelters. They use print ads and the television programmes are also an important marketing medium for promotion. Some of the most famous marketing campaigns of McDonalds are: You Deserve a break today, so get up and get away- To McDonalds Aap ke zamane mein ,baap ke zamane ke daam. Food, Folks, and Fun Im loving it.

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Physical evidence
The physical appearance affects not only the impression outsiders have of a business but also the way that business functions. McDonalds focuses on clean and hygienic interiors of its out lets at the same time they are attractive. It maintains a proper decorum at its joints. Staff members dress in McDonalds Dress code with Green shirts, Blue trousers, Black caps and Customised Ronald McDonalds tie. Building maintenance and visible cues are provided by the golden arches, the trademarks and the logos in the premises. The delivery scooters also add to the physicality of the company.

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People
McDonalds 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 continuously does Internal Marketing. This is important as it must proceed 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): 1. Customers 2. Front line employees 3. Middle level managers 4. Front line managers
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Processes
McDonalds worldwide is well known for the high degree of respect for the local customs and culture. McDonalds has developed a menu especially for India with vegetarian selections to suit Indian tastes and preferences. Keeping in line with this, McDonalds does not offer any beef or pork items in India. In the last decade it has introduced some vegetarian and non-vegetarian products with local flavtheirs that have appealed to the Indian palate. There have been continuous efforts to enhance variety in the menu by developing more such products. It is completely transparent and visible to the customers, allowing them to judge hygiene standards where the process takes place. The customers are even invited to check the ingredients used in the food. McDonalds has also re-engineered its operations repeatedly in its 11 years in India to address the special requirements of a vegetarian menu. Vegetable products are 100% vegetarian, i.e, They are prepared separately, using dedicated equipment and utensils. Only pure vegetarian oil is used as a cooking medium. Cheese and sauces are completely vegetarian and egg less. Separation of vegetarian and non-vegetarian food products is maintained throughout the various stages of procurement, cooking and serving. Food manufacturing transparent to customers across the counter. Training to the licensees about how to operate the franchise. Invented the most efficient cooking equipment with use of latest technology. New methods of food packaging and distribution are followed

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Product Hierarchy

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Product Mix

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Competition Map
INDIRECT COMPETITORS
Naturals ice cream

DIRECT COMPETITORS CCD

Burger king burger s

Subwa y

kfc meals

Fisher price

Toys

Tibs
Chinese outlets like mainland china

Mc Donald s
Wraps Parties Mall s Pubs and clubs

Mc puff nugget s venky s

Dominoes/Pizza Hut

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Product Life Cycle

Introduction hamburgers, milkshakes and french fries Growth ham burgers, drinks, desserts, fries, wedges, sauces, happy meal and various other products The Maturity: ham burgers, drinks, desserts, fries, wraps, nuggets, wedges, salads, sauces, happy meal, breakfast menu: pan cakes and coffees Decline Phase: mc puff, Chicken maharaja, hot dogs and few other products were discontinued.

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Mc donalds as a whole is in a growth stage in India as it is entering more into the market and also trying to penetrate the rural market to an extent.
q

Industry Life Cycle

Introduction first fast food restaurants introduced in US known as A&W in 1916 and White Castle in 1921 Growth Fast casual restaurants like Corner Bakery Cafe Catering trucks like hot dog caters Maturity Drive thru Decline Conventional sitting restaurants

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Core/Augmented Product/Services Product Service

Core Augmented burger Fries, coke, desserts, etc. Meals, home delivery. Customer satisfaction and hygiene.

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Brand
Name: Mc Donalds Sign: M Symbol: yellow arc with red board Initials : Mc

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Branding
Mcdonalds knows what exactly is Branding. It has become the king of the fast food chain all over world. The initials Mc has such a strong connection to brand that it has become a generic brand. Every product of Mc Donald is being named after the initials Mc. This helps the customer realize and connect with the brand.

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Brand equity

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Brand dynamics pyramid

High Medhigh Med Med high

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Positioning
Image positioning: The brand Mc Donalds carries many associations burger, fun, children, fast food, ambience, all of these makes up the brand image

Competitors positioning: Mc Donalds mein hai kuch baat. Im luvin it.

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Orientation

Mc donalds has the Marketing orientation.

Instead of product centered, make and sell philosophy the use sense and respond philosophy

They focus more on the need of the customer.

For eg: every region has its own personalised menu.

They also have personal services for different situations and occations. 4/20/12

Integrated Marketing Communication Communication Objectives

1. .

Target Audience Is relatively a homogenous groupconsumers feel that it is all the same and wanting it at the lowest price Ranges from all ages whether they are a toddler or a senior citizenis affordable and does not require an outstanding amount of income to purchase their products Established within the rural and suburban communities although there may be less in the rural communities Has many brand loyal customers that come in everyday whether it is for breakfast, lunch, dinner or dessertfocus on their current customers to ensure that their customers will maintain their current purchasing and consumption behavitheir

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Have many favourable brand switchers continue to buy their products, but at the same time they also purchase products from Burger King is communicated to directly to ensure that McDonalds remains in their evoked set Will have to ensure that their main message being sent out is clear and concise so that the new category users believe in it and switch to McDonaldswith their new Lighter Choice Menu, this can attract new users that are more health conscious Will have to focus on other brand switchers closelythese customers purchase other brands such as Burger King, Wenkys or KFCcan find ways of getting these customers to switch overplanning on emphasizing more on brand experience by feelings over features and passion over price.

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2. Communication Objectives Category needfeel that the products satisfies their needs because they meets their expectations and needsit is fast, convenient and affordable Brand awarenesstarget audience has the ability to recognize and/or recall the brandwith the well-known golden arch, everyone can recognize the big M anywhere around the world Ronald McDonald himself is also another well recognizehe was once on the bags and he also has an organization that contributes to a good causeby expanding the role of Ronald McDonald with consumers of all ages, this will create brand awareness. The new slogan Im lovin it also creates brand awareness when the consumer hears or sees the slogan.

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Brand attitudeare satisfied with the reason why they want it because McDonalds has something for everyone and it is affordablewith a good attitude towards McDonalds products maintained, it will generate future sales. Brand purchase intention is not necessarythere is low involvement since consumers consistently purchase McDonalds without putting so much thought into their decision process Purchase facilitationwill not affect McDonaldswell known and will not affect the consumers purchase decision

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IMC PROGRAMES SALES PROMOTION

McDonalds will implement is to stimulate trial purchase by 20% of

the

target market. McDonalds plans to use incentives as they reward or give consumers extra incentives for engaging in certain forms of behaviour. The incentives that will be used include the use of coupons and premiums. Free standing inserts allow us to deliver the coupons with high quality, four coloured images that draw attention of consumers Direct mail is their main focus area for distributing the coupons. Their target redemption rate through the direct mail is expected to be 9% of the 500,000 coupons distributed. Premiums are their most popular way to maintain repurchasing 4/20/12 consumers.

IMC PROGRAMES ADVERTISING

McDonalds will implement is to purchase by 50% of the target market. Will be used to obtain greater success for any new brands by trying to stimulate purchases of the product McDonalds plans to use TV, Radio, and Bill Boards to convey messages. Tactic involved in advertising include McDonalds brand history and brand loyalty by many of their consumers. The timing for these messages will be based all throughout the day especially strong during prime time hours. McDonalds advertises in one week all of the following reasons to select McDonalds.

Family Convenience, Ronald McDonald house, Constant New Menu Items

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IMC PROGRAMES ADVERTISIN G

Mascot Characters Local Restaurants Local Events and Much More

Television Prime Time Radio Out Door Billboards $

$ 12,500,000 120,000 $ 120,000,000

TOTAL COST FOR ADVERTISING

$ 132,620,000

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IMC PROGRAMES DIRECT MARKETING

McDonalds will implement a objective that will seeks a direct response of 9% by the target audience. Objective will be to inform consumers who are not users about us and educate them about how their products are better than the competitors. The strategy that will be used will be Direct Mail, which will help to stimulate trial, build brand loyalty, increase their sales and market share and finally lead consumer to repeat purchases. The timing for these mailing will be based on their overall cost and response by consumer. However, they will all be based on a monthly basis, and will only be good during certain hours of the day.

TOTAL COST FOR THE PROGRAM $ 100,000

Creating ,Communicating and Delivering Customer Value

Tools Creat Communicat Deliver e e
Product Taste Paper packaging Consumption

Price

Affordable price

Fully fledged meals at low price

Happy meals

Promotion

Ronald mc donalds

Ad campaign, I am loving it

Tv commercials and tie ups with latest movie for happy meal Available in every malls, multiplex and market area.

Place

At every locality

Convenient to locate a store. Display of big M to locate.

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SWOT analysis
Strengths E.g. the brand, and detailed market research to create the right marketing mix. Weaknesses McDonalds has been around for a long time. (therefore important to keep innovating). Threats Increasing numbers of customers looking for food that is served in a quick and friendly way. Opportunities New competitors. Changing customer lifestyles.

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