Service Marketing Mix decisionMcdonald

Presented By:

Chandrashekar Meena Kumari Amrin Fodkar Priyanka Kasat

(50) (51) (57) (58)

"McDonald's Mission 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."

Ones upon a time

When I was Baby

 Entered in India 1996 McDonald's India is a 50 50 JV partnership between MCDONALDS CORPORATION (U.S.A) and two Indian businessman Amit Jatia and Vikram Bakshi Trained extensively with their Indian management team in Indonesia and US before launch The entire menu was changed

There are 132 family restaurants in India employing about 5,000 people 79 restaurants in north and east India with 33 in Delhi itself 53 restaurants in south and west India

First McDonalds at India

 The main target segments are children, youth and the young urban family. Targeted audiences
-Children -Teenagers -Adults

 Children -happy meal toys -play place Teenagers -price sensitivity -varieties offered Adults -right ambience -products worth the money -healthy

Product Price Place Promotion People Physical evidence Process

13

3/18/2012

consumer behavior

14

 It dropped ham, beef and mutton burgers from the menu. India is the only country where McDonalds serve vegetarian menu Totally different menu as compared to its International offering

 India is the only country where McDonalds serve vegetarian menu.

Even the sauces and cheese used in India are 100% vegetarian

16

 Continuously innovates its products according to the changing preferences and tastes The recent example is the introduction of the Chatpata McAlooTikki burger

 A new product range to target the customers in the morning Breakfast Menu

40% vegetarians selections to suit Indian tastes. Respect for local culture-no beef or pork served. Soft serves and mc shakes are eggless Re-formulated own products using spices favored by Indians. Only vegetable oil used as cooking medium.

3/18/2012

consumer behavior

19

Product strategy
Fast-serviced meal Can be considered as the driving force Healthy food Fat free food Nutritional value displayed Quality o Very efficient supply chain management o Products and suppliers are used on a first-in, first-out basis to ensure freshness. o On an average 20 different quality checks are carried out before any product is served to our customers. Respect for the Indian Customs and Culture o Introduction of vegetarian line o only vegetable oil is used as a cooking medium o The cheese and cold sauces used are 100% vegetarian.

 This is the most important part of the marketing mix as this is the only part which generates revenue. 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

 McDonalds leverages economies of scale to minimize costs while maximizing value to customers. Targeted to Middle Class Earlier perception Upper Middle Class Now with aggressive Pricing it has targeted Whole Middle Class

 McDonalds has certain value pricing and bundling strategies such as happy meal, combo meal, family meal etc to increase overall sales volumes. Specifically priced product for every segment it targets

 The place mainly consists of the distribution channels. It is important so that the product is available to the customer at the right place, at the right time and in the right quantity McDonalds offers hygienic environment, good ambience and great service. Delivery services are also available now

 Strategic location -Nearly 50% of U.S.A Offers

Hygienic environment, Good ambience Great service. Internet facility Play Areas

is within a 3 minute drive from a McDonalds outlet.

Mc Delivery
Started free home delivery to penetrate further Making IT reach the customer rather than customer coming to it

 There are three main objectives of advertising for McDonalds are to make people aware of an item, feel positive about it and remember it 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.

 Its ads show happiness. And relates its product with happiness that it brings through low price, hygiene, quality, fast service.

 Uses every Medium TV, Print, Hoardings Bus Stops Internet Spends 30% of its budget on ads Rs 400-500 mn in 2009 Focuses its ad campaigns on its overall experience and active life style.

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.

3/18/2012

consumer behavior

31

 Shift of joint families to nuclear families, children became part of purchase decisionmaking. Used somber colors(gloomy) to attract children Replaced the painting with things children can relate to Happy meal Carnival

MCDONALDS- SOCIAL BRAND

Ranks 32 out of a list of 100 Most Social brands

McDonald continuously does Internal Marketing. It includes hiring, training and motivating able employees. Gives stars as per their performance It understands the fact that a happy employee can serve well and result in a happy customer Gives employees larger role in decisions. Fast & friendly service The punch line Im loving it is an attempt to show that the employees are loving their work at McDonalds and will love to serve the customers.

 Mcdonald focuses on clean and hygiene interior of its outlets and at the same time its interiors are attractive. A proper decorum and strict standard of cleanliness are maintained at all the joint. Extra care is given to make the joint children friendly family message throughout the world. Play areas are provided.

 Every care given for:

Cleanliness Efficient Menu display Ambience Transparency Speed Quality Packaging

 Food manufacturing transparent to customers. Training to the licensees.

Invented the most efficient cooking equipment.

New methods of food packaging and distribution. McDonalds in India followed the same tradition. Spent Rs. 50 crores on market research.

 To counter these changes McDonalds has continuously introduced new products and has phased out the old ones which were at the decline stage of their PLC. For eg. French Fries A perfect example of revitalizing a product in decline phase

FRENCH FRIES
An important part of the McDonalds menu worldwide But it was in the stage of decline and was actually not generating proper return.

To revitalize it, a new variant was introduced namely Shake Shake Fries

 Being served with chatpata spice mix resulted in increase in the sales of French Fries elevated it from to the decline stage