TABLE OF CONTENT

History of Organization
Introduction of McDonalds Company
Brief Explanation of McDonalds Company
Historical Strategies And Analysis
Key success of the Organization
Analysis of Productivity and Quality
Major Competitors Analysis

Chapter 2 Topic:
MARKETING STRATEGY ADOPTED BY MCDONALDS
Marketing Objectives
Marketing Strategies
Segmentation
Targeting
Positioning
Marketing Mix
Product Strategies
Pricing Strategies
Promotion
Physical Distribution & Logistics
Supply Chain Management
Research Methodology
Objective of the Study
Research Design
Data Collection
Sample Size
Field Methodology
Findings and Analysis
Conclusion
Suggestion
Bibliography
Appendix

INTROZDUCTION OF MCDONALDS
When the Dick and Mac McDonald opened their first restaurant in San Bernardino,

California in 1948, they never could have imagined the extraordinary growth their

company would experience. From modest beginnings, they found a winning

formula selling high quality products quickly and low-cost. It was not until 1955

when Ray Kroc, a salesman from Chicago, became involved in the business that

McDonald's really began to flourish.

Kroc realized the same successful McDonald's formula could be exploited

throughout the United States and beyond with the use of franchising. A franchise is

an agreement or license to sell companys products exclusively in a particular area,

or to operate a business that carries that companys name.

In 1955, Kroc knew that the key to success was through rapid expansion; thus, the

best way to achieve this was through offering franchises. Today, over 70 percent

of McDonald's Restaurants are franchises. In 1986, the first franchised McDonald's

opened in the United Kingdom. Now, there are over 1,150 restaurants, employing

more than 49,000people, of which 34 percent are operated by franchisees.

Moreover, there are over 30,000 these Restaurants in more than 119 countries,

serving over 47 million customers around the world. In 2000 alone, McDonald's

served over 16 billion customers. For perspective, that number is equivalent to

providing a lunch and dinner for every man, woman, and child in the world!

McDonald's global sales were over $40 billion, making it by far the largest food

service company in the world.

Now McDonalds Corporation USA is the ninth most valuable brand in the world.

In October 1996, McDonalds opened its first Indian outlet in Vasant Vihar, an

affluent residential colony in Indias capital, New Delhi. As of November 2004,

McDonalds has opened a total of 58 restaurants, mostly in the northern and

western part of India. While McDonalds opened 34 restaurants in five years (by

2001), 58 restaurants in eight years (by2004), it is now planning to add more than

90 new restaurants in the next coming years. Although the initial scenes of crowds

lining up for days outside the McDonalds restaurants in Delhi and Mumbai are no
longer seen, Indian consumer response to McDonalds products still remains very

strong.

McDonalds India is a joint-venture company managed by Indians. McDonalds

India, a subsidiary of McDonalds USA, has expanded its presence in India via 2

joint venture companies Connaught Plaza restaurants and hard castle restaurants.

McDonalds (India) has a 50 per cent equity stake each in both joint venture

companies. Connaught Plaza restaurants manages operations and expansions

across North India (Delhi, Jaipur and Punjab) led by Vikram Bakshi and hard

castle restaurants, which is headed by Amit Jatia, manages operations and

expansions across Western India (Mumbai, Pune, and Gujarat).

The growth of McDonalds in India is not as rapid as in other countries. How do

it? How did a hamburger chain become so prominent in a cultural zone dominated

by non-beef, non-pork, vegetarian, and regional foods such as chola bhatura, bhaji,

idly, samosa, dosa, vada, sambar, bhelpuri, and rice? The answer to this question

lies in McDonalds carefully planned entry and expansion strategy in accordance

with Indias changing political, economic, and cultural landscape in the 1990s.

Six years prior to the opening of the first McDonald's restaurant in India,

McDonald's and its international supplier partners worked together with local

Indian Companies to develop products that meet McDonald's rigorous quality

standards. Part of this development involves the transfer of state-of-the-art food

processing technology, which has enabled Indian businesses to grow by improving

their ability to compete in todays international markets.

McDonald's constructs its restaurants using local architects, contractors and labor

and where possible local materials.

McDonald's hires local personnel for all positions within the restaurants and

contributes a portion of its success to communities in the form of municipal taxes

and reinvestment.

The above aspects of McDonalds do not get covered and highlighted by the news

hungry press. But when the false news of using beef allow in the French fries hit

the market, the press did not leave a chance to exaggerate it. Despite the fact that

right form the beginning; no beef ingredients have been used in any of the products

in India.

The marketing agency of McDonalds, Mudra comes to its rescue in such times.

The advertisements created by Mudra are a rage all over the nation, especially

amongst the children. Who can forget the little kid who gets nervous in the school

competition, but becomes happy again when his father takes him to McDonalds?

McDonalds India has tried not to leave any stone un-turned in its objective to

satisfy the Indian customer. But in Amit Jatias words, Customers are generally

not forgiving.
According to the survey conducted, customers demand low prices, more seating

space, more variety, home delivery, and the list is endless.

The fundamental secret to McDonalds success is the way it achieves uniformity

and allegiance to an operating regimen with proper marketing strategy.

McDonalds India has to adhere to many rules and regulations laid down by the

parent company, and it still has to cater to the Indian customer and his needs.

McDonalds India is a case study on how to mix conformity with creativity.

 Objectives Of The Study

To find out the marketing strategy of the company to capture the Indian

market.
To find out the most target market of the company.
To find out the marketing mix strategy of the company related to various

products.
To find out the customers response from the McDonalds product.

Mission
Were determined to continuously improve our social and environmental

performance. We work hard, together with our suppliers and independent

restaurant franchisees, to strive toward a sustainable future for our company and

the communities in which we operate.

From the beginning, weve been a company committed to doing the right thing.

Today, our values continue to be the foundation for who we are, what we do, and

how we operate,

McDonald's brand mission is to be our customers' favorite place and way to eat.

Our worldwide operations are aligned around a global strategy called the Plan to

Win, which center on an exceptional customer experience People, Products,

Place, Price and Promotion. We are committed to continuously improving our

operations and enhancing our customers' experience.

Vision:

McDonalds mission is McDonalds vision is to be the worlds 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.
Values

We place the customer experience at the core of all we do. Our customers are

the reason for our existence. We demonstrate our appreciation by providing them

with high quality food and superior service in a clean, welcoming environment, at

a great value. Our goal is quality, service, cleanliness and value (QSC&V) for each

and every customer, each and every time.

We are committed to our people. We provide opportunity, nurture talent, develop

leaders and reward achievement.

We believe that a team of well-trained individuals with diverse backgrounds and

experiences, working together in an environment that fosters respect and drives

high levels of engagement, is essential to our continued success.

We believe in the McDonalds system. McDonalds business model, depicted by

our three-legged stool of owner/operators, suppliers, and company employees, is

our foundation, and balancing the interests of all three groups is key.

We operate our business ethically. Sound ethics is good business. At

McDonalds, we hold ourselves and conduct our business to high standards of

fairness, honesty, and integrity. We are individually accountable and collectively

responsible.
We give back to our communities. We take seriously the responsibilities that

come with being a leader. We help our customers build better communities, support

Ronald McDonald House Charities, and leverage our size, scope and resources to

help make the world a better place.

We grow our business profitably. McDonalds is a publicly traded company. As

such, we work to provide sustained profitable growth for our shareholders. This

requires a continuous focus on our customers and the health of our system.

We strive continually to improve. We are a learning organization that

aims to anticipate and respond to changing customer, employee and

system needs through constant evolution and innovation.

HISTORICAL STRATEGIES AND ANALYSIS

We will now take a look at the strategies pursued by McDonalds and its two

major competitors- KFC and Pizza Hut all over the world so that we can see where

these companies are headed in terms of strategic goals and objectives.

MCDONALDS

Hummer of a Summer PR strategy:

In August 2006, McDonalds in US launched a PR effort by the name of Hummer

of a Summer. This was a collaborative effort of General Motors and McDonalds

and focused on HUMMER- One of General Motors key divisions.

To announce the program launch, McDonald's staged a three-mile long parade

down Chicago's Michigan Avenue during lunch hour. Ronald McDonald led the

parade on the hood of a HUMMER and was followed by the life-size versions of

the trucks that will be available in the Happy Meals. The parade ended at the

flagship McDonald's restaurant in downtown Chicago. Kids at the restaurant were

also invited to go inside the vehicles. The kids were then treated to free happy

meals.

There were also regional events and

programs sponsored by local

McDonald's restaurants and GM

dealers.

McDonald's Happy Meal and Mighty

Kids Meal HUMMER line-up featured

eight dynamic vehicles, capturing the power, excitement and unique styling that

make HUMMER one of the most recognizable vehicles on (and off) the road.

One of eight toy HUMMERS were packed in each "boy" Happy Meal ("girl" meals

featured Polly Pocket). The full HUMMER lineup was represented, from the now-

defunct H1 to the H3T Concept pickup.

This strategy proved to be quite popular with the kids and the way people at

McDonalds tried to cash the awe and charisma associated with the brand
HUMMER was remarkable. The strategy proved to be a win-win one for both GM

and McDonalds because it not only attracted the kids to the happy meal even more

than before but also magnified the iconic brand status that HUMMER has acquired

over the years.

McMommy Blogging Society:

In December 2007, McDonald's opened up its kitchens to an army of mother

bloggers, who will be reporting their allegedly unedited findings on McDonald's

website, and their verifiably unedited findings on

blogs around the Internet. The fast food giant's

goal was to stem criticism that the restaurant's

offerings are making the country obese by

making their processes more transparent to the

public.

The burger giant apparently also was hoping that the program will help contradict

stories of fattening, unhealthy food that have been detailed in books such as "Fast

Food Nation" and movies such as "Super Size Me."

McDonald's equipped six mothers with laptop computers to record their

impressions of its operations over the next few months. The moms were chosen by

an independent company from a group of 4,000 applicants, and the blogs and
journals were posted "unedited" beginning June 20 2007 on McDonald's home

page, where it hoped to attract other moms interested in seeing the comments,

officials said last week.

Selected moms were expected to participate in as many as three "field trips" lasting

two to three days, and received payment for "reasonable travel expenses."

Nothing like this has ever been done on the internet by a fast food company before

and McDonalds intended to exceed the customer expectations by coming up with

a new strategy that would astonish everybody and the campaign was indeed well

received by the audience.

Tier Pricing Strategy:

For McDonalds, tier-pricing is becoming part of its global strategy. To stay

competitive in an era of food inflation, the US franchise is abandoning its one

price fits all approach.

McDonald's has implemented a tier-pricing system in Taiwan, partitioning the

island into three districts to counter the impact of food price inflation.

The three districts are the rural south and east; the industrial north and west (plus

three southern cities); and entertainment and high-rent districts across the island.
Future prices will be adjusted according to income levels, the consumer price index

and other factors for each district.

Key Success Factors:

McDonald's has an aggressive plan to expand in all other cities of and is rapidly

growing with the focus to provide friendly and a quick service restaurant

experience to its customers.

There are many key success factors

due to which McDonalds is

successful in the market. We have

been successful in identifying a few:

All the franchises of

McDonalds in are owned by

Lakson Group of Companies. Apart from the fact that LGC is one of biggest

corporations, their management allows not only standardization of quality

but a more uniform and effective marketing strategies in order to sustain in

the market. Therefore McDonalds being its part had to continue to strive to

maintain its standards in the local region.

Many McDonald's restaurants have included a playground for children and

advertising geared toward children, and some have been redesigned in a

more 'natural' style, with a particular emphasis on comfort: introducing

lounge areas and fireplaces, and eliminating hard plastic chairs and tables.

This has given a new outlook to the McDonalds as a quick service

restaurant that is still not be seen on other fast food restaurants.

McDonalds doesnt offer just burgers. Their well diversified menu is also

one of the key success factors as most of McDonalds competitors are quite

specialized: KFC in chicken, Pizza Hut in pizzas etc.

When it comes to eating out during Ramadan in any fast food restaurant, the

name that clicks to the customers is McDonalds. The reason is the

affordable deals that they offer, that seem to beat all others when it comes to

prices.

Another advantage that McDonalds has on its competitors is the location of

its franchises. Its main advantage is that it is located in vicinity that is easily

approachable. Secondly it has got in its surroundings other very attractive

places to be visited by people who want to enjoy their life to the full. These

places are a source of attraction not for the services they provide but for

McDonalds as well. For example one of its outlets has been opened in Park
 Towers in Karachi so as to attract the shoppers who visit it very frequently.

Another strategic location that McDonalds has acquired is at the Clifton

beach. This has forced many others nearby restaurants and one of the very

famous cuisine restaurants with the name of Kublai Khan to get closed.

Same is the case in Rawalpindi/Islamabad where McDonalds holds an

important strategic location. The customers that are driven to the Cinepax

are automatically attracted towards McDonalds.

ANALYSIS OF PRODUCTIVITY AND QUALITY

The site of the first McDonald's to be franchised by Ray Kroc is now a museum

in Des Plaines, Illinois. The building is a reproduction of the original, which was

the ninth McDonald's restaurant.

To accommodate the current trend for high quality coffee and the

popularity of coffee shops in general, McDonald's introduced McCafs. The

McCaf concept is a caf-style accompaniment to McDonald's restaurants. McCaf

is a concept of McDonald's Australia, starting with Melbourne in 1993. Today,

most McDonald's in Australia have McCafs located within the existing

McDonald's restaurant. In Tasmania there are McCafs in every store, with the rest

of the states quickly following suit. After upgrading to the new McCaf look and

feel, some Australian stores have noticed up to a 60% increase in sales. As of the

end of 2003 there were over 600 McCafs worldwide.

 Some locations are connected to gas stations/convenience stores, while

others called McDonald's Express have limited seating and/or menu or may be

located in a shopping mall. Other McDonald's are located in Wal-Mart stores.

McStop is a location targeted at truckers and travelers which may have services

found at truck stops. McDonald's announced on May 22, 2008 that, in the U.S. and

Canada, it will be introducing cooking oil for its French fries that contain no trans

fats. The company will use canola-based oil with corn and soy oils by year's end

for its baked items, pies and cookies.

In a bid to tap into growing consumer interest in the provenance of food,

the fast-food chain recently switched its supplier of both coffee beans and milk.

UK chief executive Steve Easterbrook said: "British consumers are increasingly

interested in the quality, sourcing and ethics of the food and drink they buy".

McDonald's coffee is now brewed from beans taken from stocks that have been

certified by the Rainforest Alliance, a conservation group. Similarly, milk supplies

used for its hot drinks and milkshakes have been switched to organic sources

which could account for 5% of the UK's organic milk output. The company has

also expanded the McDonald's menu in recent decades to include alternative meal

options, such as salads and snack wraps, in order to capitalize on growing

consumer interest in health and wellness. McDonald's predominantly sells

hamburgers, various types of chicken sandwiches and products, French fries, soft
drinks, breakfast items, and desserts. In most markets, McDonald's offers salads

and vegetarian items, wraps and other localized fare. This local deviation from the

standard menu is a characteristic for which the chain is particularly known, and

one which is employed either to continue by regional food taboos (such as the

religious prohibition of beef consumption in India) or to make available foods with

which the regional market is more familiar (such as the sale of Mc Rice in

Indonesia). There have been continuous efforts to enhance variety in the menu by

developing more such products.

McDonald's 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, 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.

 Most Respected Company' for four
consecutive years, 2003-2007 in the
Food Services sector, by Businessworld

Most Wanted Brand of the Year'

Award 2003 & 2004 by Franchising
Holdings India Ltd.

Retailer of the Year' Award for

catering services, 2004-2006 at the
Images Retail Awards.

The 'Most Preferred Fast Food Outlet'

2006 & 2007 by Awaaz Consumer
Award, hosted by CNBC.

Star Retailer - The Consumer Way,

Food Services Retailer' of the Year
2006 & 2007, by Franchise India

Amity Corporate Excellence Award'-in

2007 & 2008

McDonald's India - A decade of quality service

For its unparalleled benchmarks established in the QSR sector McDonalds India

has been bestowed with many prestigious awards. To name a few:

79 restaurants in North & East India: with

33 in Delhi

22 in Uttar Pradesh Noida (5),

Ghaziabad (4), Mathura (1) (Highway and Drive Thru), Kanpur (2), Meerut (2),
Lucknow (4), Agra (1), Allahabad (1), Varanasi (2)

11 in Haryana - Faridabad (3), Manesar (1) (Highway and Drive - Thru), Gurgaon
(5), Karnal (1) (Highway and Drive - Thru), Panipat (1)

7 in Punjab - Chandigarh (2), Ludhiana (2), Doraha (1) (Highway and Drive -
Thru), Jalandhar (1), Patarsi (1) (Highway and Drive - Thru)

3 in Rajasthan - Jaipur (3)

1 in Uttaranchal - Dehradun (1)

1 in West Bengal Kolkata (1)

1 in Himachal Pradesh- Jabli (1).

53 Restaurants in West & South India:

32 in Maharashtra Mumbai (23), Pune (8), Nasik (1)

7 in Gujarat Ahmedabad (4), Vadodara (2), Surat (1)

7 in Karnataka Bangalore(7)

4 in Andhra Pradesh Hyderabad (4), 3 in Madhya Pradesh Indore (3)

 MAJOR COMPETITOR ANALYSIS

PIZZA HUT:

Pizza Hut is a global fast food chain, a subsidiary of

Yum! Brands Inc. , the worlds largest restaurant

company. It was founded in Wichita, Kansas, USA in 1958 and is running its

operations in about 91 countries worldwide. Its one of the major competitions of

McDonalds in the Pakistani QSR industry. It started its operations in Pakistan in

1993 with a single outlet at Boat Basin, Clifton, Karachi. Today it operates in nine

cities of Pakistan with 38 outlets. The cities include Karachi, Lahore, Islamabad,

Peshawar, Faisalabad, Multan, Rawalpindi, Sialkot and Hyderabad. Pizza Hut

serves a large variety of starters, soups, salads, sandwiches, Pastas and deserts.

Strategic Objectives:

When we talk about strategic objectives, Pizza hut says: We want to satisfy our

customers by offering them The best. Diversification of the products that they

offer has always been a focal point of strategies at Pizza Hut. The strategies at

Pizza hut are guided by principles like Cleanliness, Hospitality, Accuracy,

Maintenance, Product quality and Speed (CHAMPS). Since its a global chain, the

strategies are based upon customizing the services, advertising and marketing

activities according to the countries that they are operating in. Customer service
and satisfaction have of course always been a vital aspect of the strategies. Another

important feature of the Pizza Huts strategies are the 3 Fs (Fun, Friendly and

Familiar).

Problems and Weaknesses:

At one time, the biggest marketing problem Pizza Hut faced was lunch. As

compared to McDonalds, its restaurants had virtually no lunch time sales, and

neither did any of its pizza competitors. The reason, of course, is that it takes 20

minutes to cook a pizza from scratch in a traditional pizza oven, and most people

wont spend that long at lunch time waiting to be served. By using a new,

continuous-broiling technology adapted from burger business, Pizza Hut developed

a personal pan pizza that could be served in less than 5 minutes. It was quick, tasty

and moderately priced. And Pizza hut rolled it out to all 4500 stores worldwide and

locked up the pizza-lunch business almost everywhere, almost overnight.

One of the weaknesses of Pizza hut that it hasnt overcome yet is its price. Local

chains are constantly springing up, offering lower prices and similar recipes. Most

people dont mind giving a lower price for slightly different taste because of which

the sales at pizza hut at are suffering.

Growing awareness about eco-friendliness has forced a lot of the food chains to

maintain practices that conform to international environmental standards. For

example McDonalds is introducing coffee beans grown in environmental friendly

conditions in order to appeal to the people who are conscious about environmental

friendliness. In the Pizza selling restaurants, organic pizzas are the new concepts

that are appealing to the masses to these days. Its a phenomenon that highlights

the health conscious attitude as well as environmental friendliness. Pizza Hut on

the other hand has not come up with any strategy in this area and if it doesnt even

in the future, it is going to lag behind the chains that offer healthier food.

Competitive Advantages:

Pizza Hut has the first mover advantage in the pizza chains because of which it has

developed a strong customer base which is one of its strengths.

In the Pakistani QSRs industry, the delivery service of Pizza hut is clearly a

competitive advantage that it enjoys. Pizza huts delivery service is one of quickest

and the pizzas delivered are oven hot in the real sense of the world.

Pizza Hut is often referred to as Pizza Innovation Leader because it is constantly

coming up with new varieties of pizzas to appeal the different audiences and at the

same time, people at the pizza hut have a really good idea about which varieties are

appealing to the customers and they are thus retained in the menus

The first mover advantage is an advantage that Pizza hut was born with but time,

Pizza hut has been successfully creating competitive advantages like a traditionally

strong brand name for itself and the quality service that it provides.
KENTUCKY FRIED CHICKEN (KFC):

KFC, founded and also known as Kentucky Fried Chicken, is

a chain of fast food restaurants based in Louisville,

Kentucky. KFC is a brand and operating segment, called a

"concept", of Yum! Brands since 1997, when that company was spun off from

PepsiCo as Tricon Global Restaurants Inc.. KFC has more than 11,000 restaurants

in more than 80 countries.

Strategic Objectives:

KFC has the strategic objectives of expansion along with profits and sales growth.

KFC has also been applying its strategies at improving services and making them

more and more customer friendly. It has not only been customizing it's menu

according to the countries that it has been operating in, it has also been trying to

cater to different ethnic groups like African Americans and Hispanics. Such types

of strategies are focused on increasing the customer base by better customization

of products. Other than the traditional eat-in restaurants, KFC has also been

expanding into non-traditional facilities like shopping malls, hospitals, universities,

stadiums; office buildings etc and a number of strategies have been formulated to

aid this kind of expansion.

Dominos Pizza

Dominos Pizza is the second largest

franchised pizza chain in the U.S.A.,

and the history of Dominos Pizza is

similar to its rival Pizza hut; two

brothers started it with borrowed equity

in the sixties. Tom and James

Monaghan bought a small Michigan

Pizzeria called Dominick's, which was

jointly run by them until James traded his share for a second hand car. Tom

revitalized the image by changing the name to Dominos Pizza .

By the late seventies there were over 200 franchise pizza businesses in the States

and Dominos Pizza was ready to go International. In 1983 Dominos Pizza opened

its doors in Winnipeg, and in the same year opened its one thousandth store. Later

that same year Domino's corporate history was to begin in Australia with its first

franchise in Brisbane, on the East coast.

The locations for Dominos Pizza grew quickly from here as they sprung up in all

sorts of diverse places including Bogot. Despite Domino's Pizza springing up

diverse locations, they were still a very traditional company. Domino's Pizza

menu had been kept very simple and streamlined; they only sold one type of pizza

crust which they named the regular pizza. Domino's Pizza dough was shaped by

tossing the dough and pulling it into shape. The pizza menu included just two sizes

of dough, it was not until much later that competition forced them to add a medium

and extra large sized pizza. There were no such things as side orders you could

have Pizza, pizza or Pizza and you could only drink a Coke with it.

In 1989 the history of Domino's Pizza was to change when the Deep Pan

pizza was introduced, for the first time in twenty five years the company was being

forced to react to market demand. This move consolidated the financial base and

ensured the growth of Domino's Pizza , as the same year they opened their five

thousandth store.

The wind of change had started and by 1992 they were to introduce the first non

pizza itemto their menu, this was obviously a reluctant move as it was bread

sticks. Domino Pizza dough was already on hand and the making of bread sticks is

not so different.

For many years the company had advertised that if the delivery of their pizzas took

longer than thirty minutes then the pizza would be delivered free. This was

parodied by the Teenage Mutant Ninja Turtles movie which specified the "pizza
dude has 30 seconds" to complete the delivery. The turtles pizza was late and they

received a refund of $3 for "being two minutes late, dude!" However the benefits

to Domino Pizza was enormous as millions of kids were to hear the name of

Domino Pizza endorsed on celluloid. In 1993 Domino Pizza discontinued this

policy and stated that if a customer was unhappy they could have a new pizza or a

refund.

By 1994 Dominos Pizza marketing policy widened as chicken wings were

introduced to the menu. At the same time the company hit the African continent as

they opened a store in Egypt . By 1996 Dominos Pizza website was launched and

the company declared global sales of nearly $3 billion.

Despite their reluctance to add a wider range menu they have as a company given

the pizza industry many innovations that have now become standard. The belt

driven pizza ovenwas the invention of Domino Pizza and they began using

corrugated cardboard delivery boxes which were very effective at holding the heat

within the pizza during the delivery time. Ever mindful of the fact that a cold pizza

must be about the worst dining experience on earth Dominos pizza introduced the

"Heat Wave," a portable electrical bag system that keeps the pizza hot during

delivery.
 By 1997 they had also had an internal modern facelift as

their stores were all brightened up and the company

introduced a new logo. Domino Pizza continued to grow

exponentially and in 1997 they opened seven stores in one

day but on 5 different continents.

The Domino's Pizza

In 2004, Super Bowl Sunday was the most hectic pizza
Logo
delivery day of the year when Dominos Pizza sold over a

million pizzas, which was an increase of 42 percent on their normal Sunday

trading volume. As the company continues to grow so rapidly it is just as well the

practice of adding a dot onto the logo was discontinued after three outlets as

Dominos Pizza now has over seven thousand outlets globally.

SWOT ANALYSIS

Strength
 It has built up huge brand equity. It is the no. 1 fast food company by sales,

with move than 31,000 restaurants serving burgers and fries in almost 120

countries.
Good innovation & product development. It continuously innovates to retain

customers in a business.
The McDonalds brands offer consumer choice, resonables values & great

service.
Loyal staff & strong management team.
Advertisement & promotion to make the McDonalds as a brand carves a

strong image on the consumers mind.

Large amount of investments have gone to supporting its franchise network,

75% of stores and franchise.

Weakness

Core product line out of line with the trends towards healthier lifestyles for

adults & childern. Product line heavily focused towards hot food and burger.
 Location are outlets sometimes not to closer to storage counter resulting in

loss of quality.
Quality issue across the franchise network.

Opportunity

Joint venture with retailers (E.g: Supermarket).

Respond to social changes by innovation with in healthies lifestyles foods.

Its move into hot baguettes & healthies snakes (fruits) has supported its new

positioning.
Use to CRM, database marketing to more accrately market to its customer

target groups. It could identily

Likely consumers (based on moldeling and profiles of shoppers) & prevent

brands switching.
Installing childern play praks and focus on edducating consumers about

health, fitness.
Focus on middle-class income group customers with low priced quality good
will enhance the parofit margin.
Senior citizen have been totally deprived of marketing strategy adopted by

McDonalds. The burger & eatables are more indianized sothat senior citizen

find it familier but the introduction of more milky beverages could attract

more seniopr citizen and kids.

Threats
Social changes, governments, consumer groups encouraging balanced

meals, 5 a day fruit & vegitables.

Focus by consumers on nutritionb & healthier lifestyles.
PART-2

AN ANALYSIS OF
 MARKETING STRATEGY
ADOPTED BY
MCDONALDS TO CAPTURE THE
INDIAN THE MARKET.

MARKETING STRATEGY:

FORMULATING THE MARKETING STRATEGY:

SELERCTING THE TARGET MARKET:

Shifted form world wide positioninng of drive in convenience & speedy

service. This world class strategy is the latest element of overall plan to continue

revitalizing McDonalds for consumers through compelling food choice, great

service & restaurant operations, motivating values and exiting new restaurant

decors.

SEGEMENT:

Each company identify the parts of the market that it bcan serve best & most

profitably, which is called the segment of the market it want to serve market

segmentation allows to divide a market into smaller groups of buyers with distinct

needs charcteristics or behaviourswho might requires seprate products or

marketing mixes. McDonalds identify certain segment based on its geographical

& demographical segments as:

Geographic segmentation:

Its calls for dividing the market into different geographical units as: region,

states, countries, cities or neighborhoods. McDonalds India divide the country

into different zones based on direction & concentrated particularly on north and

west zone as its first market segment to attract on.

Demographic segmentation:

Its dividing the market into group based on varriables as: age, gender, family

size, family lifecycle, income, education ,occupation, religion, race, generation &

nationality.
 McDonalds targeted different age groups from childern & teens to adult up

to age less than 30 years. Line it others world wide location, McDnalds targeted

childern as their main clientele in india. They not only influence the market in

terms of parental decision making to buy certain kinds of products, they are also

future consumers. Thus, McDonalds have alone ever thing possible to attract

childern. McDonalds also attract many teenagers, who use the outlets as a venue

to meet their their friends circle, still a tricky issue among indian middle class

families. Income segmentation was done to attract consumers from high income

group.

TARGET:

A target market consists of a set of buyers who share common needs or

characteristics that the company decides to serve.

McDonalds targeted young families who are able to eat out, but the main

focus was on to attract small childerns so that the whole young family follows after

it. The possible target market dercide on was only 10% of the indias population. As
saild by Vikram Bakshi from North Zone we want to first concentrated metros,

then open branches in other cities. We want to set up outlet only in cities where we

can ensure the quality of product.

McDonalds followed concentrated marketing (or niche marketing) a market

coverage strategy in which a firm goes after a large share of or a few segments or

niches.

Different Phases to make into target markets was scheduled on:

Phase I: Focus on cities of relatively high incomes where citizens are

exposed towestern food and culture. High-income urban dwellers are seeking

variety in their choiceof foods and are willing to spend more on international

cuisine, including fast foods.

Phase II: Move to smaller satellite towns (Gurgaon, Pune). Positive spill-over

effect of reputation from main metros. Other cities like Jaipur, Agra were also

targeted to attract foreign tourists who often visit them as favourite tourist

destinations.

Phase III: Move on to crowd pulling centers like malls, multiplexes, highways,

railway stations and airports.

Phase IV: Introduce new low-priced products with same quality and service for

middle class income groups of people.

Positioning the Offer:

Mc Donalds mein hai kuch baat, a place for entire family to enjoy. Mc

Donaldspositioned for youth families. Positioning is about communicating the

unique selling advantage or proposition to the target audience in everything the

firm does i.e., marketing, sales, and customer service. The consistency helps our

customer remember. Our marketplaces have lots of choices. Too many, perhaps, for

the average consumer to evaluate logically. With hundreds of choices in any given

locale, many people simply look for a referral to a product or with professional

services: a company that their friends trust. Those who shop around consider two

or three options and take the best of the three. With hundreds of choices, and with

products and services that most consumers find hard to differentiate, how do you

set yourself, apart from the crowd? Positioning allows a marketer to think about

why a customer would want to do business with them. What do you offer that the

other producers don't? What does a potential client get by doing business with you,

which will serve their needs well?

Positioning has three components:

What are your strengths? Your distinctive competencies?

What about your offerings provide value to your customers?

Who is your target customer? What about makes them an

ideal fit for the value you offer?

 How are you different from your competitors in ways that

your customers and potential customers will value? In other

words, what is your unique selling proposition? Your

competitive advantage?

When all three are put together, we have a positioning statement. Positioning

statements are the bases for all marketing messaging, sales scripts, and at a

corporate level: branding. So here are the things we need to know to be able to

develop your own market positioning.

Who are you? As a company? As a sales rep?

What is your firm or known for? (Ask people what they think.

It may not be what your internal talk says it is. Is it prompt

claims? Or telling it like it is? Or it might just be everyone

knows you.)
What do your customers appreciate about your products or

services? (Ask your colleagues and your customers. Again, it

might not be what you think. Maybe you are known for high

quality. Or perhaps for returning calls promptly or your

problem solving ability. Maybe it is just that you are

convenient.

. What are you particularly strong at? (These are your core competencies.)
 What are you better at, than anyone else in your business?

As a company? As a professional? As a sales rep? (Quality?

Innovation? Cost effective choices?)

Who are your most satisfied customers? What is it that they

value most about what you have to offer?

Based upon your sales goals and annual plan, who is your

target market? The key here is the fit between what you do

well and who or what type of business needs what you are

good at.
What value can you bring your customers that they will

value the most, based upon your unique strengths?

At a company level, can you articulate this competitive value

for your target, best customers? Does your branding reflect

this? Do your communications use this messaging as its

foundation?

Are your web, collateral, and sales force attuned to this value?

Do your services focus on this value?

Does your customer service reflect this value?

Does your customer service reflect the promise of the brand? Or are customers

continually shocked that the customer service is not like the brand image atall?

Your customers are bombarded with hundreds - perhaps thousands - of comercial

messages each day. Believe it or not buying your product or service is probably not
their most important priority. So, in the end, it comes down to relationships. Does

your vendor understand your needs? Thus, positioning is EVERYTHING, because,

positioning is that unique value you offer, to that target market you seek, in ways

that are better, more effective, more amazingly meeting your needs than any of

your competitors.

And, the customer service, and employee relationships need to MATCH or be

INTEGRATED with the market positioning.

Importance of Positioning:

Marketing strategy that aims to make a brand occupy a distinct 'position,' relative to

the competing brands, in the mind of the customer. Firms apply this strategy

either by emphasizing the distinguishing features of their brand (what it is, what it

does and how, etc.)or try to create a suitable image (inexpensive or premium,

utilitarian or luxurious, entry-level or high-end, etc.) through advertising. Once a

brand is positioned, it is very difficult to reposition it without destroying its

credibility.

Develops Brand Image.

Creates Demand.
Creates Value In The Mind Of Customer.
Commands Premium Price.

Assembling the Marketing Mix -

Assembling the marketing mix means assembling the four Ps of marketing viz.

product, price, place, and promotion, in the best possible combination. The

marketing mix should be viewed as an integrated and coordinated package of

benefits that reflect the characteristics of customers and various targeted publics

and satisfy their needs, wants, and expectations. Note that the elements of the

marketing mix should be integrated because each element of the mix usually has

some impact, direct or indirect, on the other three.

For example, if you improve the product or service you probably have to change

the price because it costs more to produce. Although you may not have to change

where the product is delivered to the customer, you will almost certainly have to

change the promotion or communication with the customer because you need to

tell the customer about the changes you have made in the product and how the

changes will make it more desirable and satisfying.

4 ps diagram:

Product Price

Place Promotion

The marketing mix principles (also known as the 4 Ps.) are used by business as

tools to assist them in pursuing their objectives. The marketing mix principles are
control able variables, which have to be carefully managed and must meet the

needs of the defined target group. The marketing mix is apart of the organizations

planning process and consists of analyzing the defined:

How will you design, package and add value to the product? Product

strategies.
What pricing strategy is appropriate to use? Price strategies.
Where will the firm locate? Place strategies.
How will the firm promote its product? Promotion strategies.

Marketing strategies must feature customer orientation, input, and accessibility in

the fight to the top of the market. McDonald's is no different. An example of this is

illustrated with a comparison of McDonalds and Wendy's. At first glance, they may

appear to have roughly the same marketing mix and target markets.

Both are fast food and provide similar products. However, looking closer, one can

recognize that McDonald's primary target market is children ages 3-11 and their

parents. McDonald's understood that the parent was making the purchasing

decision, most likely based on price. What McDonald's marketing executives did

was ingenious. They put an Rs.20 toy in with the hamburger, French fries, and

drink and gave it a special name, the "Happy Meal". Then McDonald's marketed

the Happy Meal to the kids. If you have you ever asked your child where to buy a

Happy Meal, they will tell you that there is only one place you can buy one, and

that is at McDonald's has Ronald McDonald, playgrounds or Play Places, "Happy

Meals," and fun advertisements with brightly colored "Fry Guys" or the "Cheese

Burgerler". Contrastingly, Wendy's targets a more adult market and the restaurants

represent a more mature atmosphere with carpet floors and Dave Thomas

advertisements. Wendy's does have children's meals that offer a toy, but overall the

atmosphere attracts a different demographic group. McDonald's restaurants have a

variety of strategies that apply to product, placement, promotion, and price that

makes them one of the most successful, well-recognized organizations in the

world.

Product strategies

Product Decision

Branding Quality Features

McDonald's marketing strategies should be looked at historically in order to see the

larger picture of the firm's success. There have been so many strategies since the

inception of the firm that it is difficult to account for them all, the two most
memorable are the development of the "Golden Arches" and "Ronald McDonald".

These two icons have given customers a mental image of what to look for when

they want quality food for a low price fast. The firm revolutionized the fast food

industry and positioned itself as the market leader with low-priced, quality food

and provided an entertaining atmosphere for the children. These things were what

that the market wanted at the time and the firm answered in spades.

The perceived secret of McDonald's success is the willingness to innovate, even

while striving to achieve consistency in the operation of its many outlets. The

vegetarian burger menu consists of the McAloo Tikki Burger. It is a vegetable

burger with potato peas and spices, tomato, onion, and a vegetable-tomato

mayonnaise.

McVeggie is another Vegetarian burger on the menu. It looks similar to the above

McAloo Tikki Burger, but is made from mixed vegetables, peas, and spices, lettuce

and veg mayonnaise (referred to as Veg Sauce inIndia).

Another new Menu Item added is the McSurprise burger. It contains a patty, onion,

Italian may onnaise. There is also a Pizza McPuff, consisting of a puff pastry

stuffed with peas, sliced cheese etc. McDonalds concentrated on studying the

Indian culture, its value-systems and its influence in food consumption decision

making. It found that although a substantial proportion of the populations were

non-vegetarians, they stuck to mostly fish, mutton and chicken. Muslim took beef
but though pig meat to be dirty; Hindus preferred neither beef nor pork; Christian

took both beef and pork. McDonalds decided, for the first time in their business

history, to drop ham and beef burger from their menu. 2 years back, they even

excluded mutton burgers from their offerings. McDonalds developed a menu

especially for Indian with vegetarian selection to suite Indian taste. It introduced

products like McTikkiAloo for the Punjabi taste buds. McDonalds has also re-

engineered its operation to address the special requirements of a vegetarian menu.

The cheese and cold sauces used in India is100 % vegetarian. McDonalds are

committed for giving customers wholesome, healthy, and delicious food. They

ensure that the cooking area as well as cooking equipment for vegetarian products

is visibly segregated from the non Vegetarian sections. Whats more-their crew

members cooking vegetarian food items are identifiable by their green aprons.

Franchisees agree to operate their restaurants in the "McDonald's way" but there

remains room for innovation.

Many ideas for new menu items come from franchisees responding to customer

demand.

To maintain consistency in the current menu while the firm tests new products to

expand the product line, McDonald's relies on test marketing new menui tems in

pilot locations. New products are rigorously market tested so that the franchisee

will have a reasonable idea of its potential before it is added to the menu. The
introduction of new products, which have already been researched and tested,

considerably reduces the risk for the franchisee. The franchisees additionally

benefit from the extensive national market research programs that assess consumer

attitudes and perceptions. What products do they want to buy and at what price?

How are they performing compared to their competitors? This approach allows the

firm to identify which items are likely to prove popular with consumers while

ensuring that the company can deliver new products with consistent quality

internationally. McDonald's already has a history of doing this so it will not require

major changes to its operations strategy-at least initially. If the product line-up gets

too large, then the task of maintaining quality becomes exponentially harder. The

trick is to consider how to eliminate some of the existing menu items when you

introduce new ones, while making sure the staff is fully trained in how to execute

these products successfully. Restaurant chains encounter many obstacles in

maintaining their business, but the most common obstacle is the logistical planning

in getting food and supplies. McDonald's established warehouses within a

reasonable proximity to all of their restaurants to solve some of the logistical

problems it had experienced. This, along with owning the warehouses allows the

restaurants to get all of the needs met in one shipment and not deal with multiple

suppliers. Suppliers are a critical part of the value chain. McDonald's considers
product quality to be the most important aspect and sets its standards among the

highest in the food industry built.

The firm's mutual effort with suppliers and franchisees to develop and improve

products and production techniques enables McDonald's to meet the high quality

standards; thus sharing in the growth and success of the restaurant. This growth

and continued success, and the elimination of too many intermediaries, has allowed

McDonald's to pass that value along to the customer.

Pricing Strategies

Pricing is the only mix which generates a turnover for the organization. The

remaining 3ps are the variable cost for the organization. It costs to produce and

design a product; it costs to distribute a product and costs to promote it. Price must

support these elements of the mix. Pricing is difficult and must reflect supply and

demand relationship.

Pricing Strategy:

Peneration
Skimming
Competition
Product Line
Bundle
Psychological
The customer's perception of value is an important determinant of the price

charged. Customers draw their own mental picture of what a product is worth. A

product is more than a physical item; it also has psychological connotations for the

customer. The danger of using low price as a marketing tool is that the customer

may feel that quality is being compromised. It is important when deciding on price

to be fully aware of the brand and its integrity. A further consequence of price

reduction is that competitors match prices resulting in no extra demand. This

means the profit margin has been reduced without increasing sales.

The customer's perception of value is an important determinant of the price

charged. Customers draw their own mental picture of what a product is worth. A

product is more than a physical item; it also has psychological connotations for the

customer.

The danger of using low price as a marketing tool is that the customer may feel

that quality is being compromised. It is important when deciding on price to be

fully aware of the brand and its integrity. A further consequence of price reduction

is that competitors match prices resulting in no extra demand. This means the profit

margin has been reduced without increasing sales.

Worldwide, McDonalds has achieved success by tapping middle-class house

holds. But in India, while McDonalds has been able to get a larger share of rich

and upper-middleclass population, it has not been as successful at effectively

tapping the middle-class and lower middle-class segments. Capturing the latter

segment is critical as McDonalds starts entering into smaller cities. But this

section has mainly stayed away because of a widely prevailed perception that

McDonalds is expensive. This is the reason why the company cut prices on its

vegetable nuggets from Rs 29 to Rs 19 and the soft service ice cream cone from Rs

15 to Rs 7 in 1997. In September 2001, McDonalds offered its enormously

popular shudh shakahari (pure vegetarian) Veg Surprise (a veggie burger) for Rs

17. With this price, McDonalds was able to sell the veggie burger 40% more than

what it expected within a month between September and October of 2001. In

March 2004, McDonalds launched a Happy Price menu under which it sells four

of its burger products at Rs20 each. This has led to a 25% increase in customers.

Clearly, the McDonalds strategy has been to increase sales volume of its products

by making its products available at an affordable price. A very popular punch line

of McDonalds - Aap ke zamane mein, baap ke zamane kadaam. The main

reason of this price strategy was too attract the middle class & the lower class of

people in India. After this not only the upper class prefers going there but all

class of people go there. The company strives to differentiate itself from other fast

food restaurants by offering a variety of menu items that appeal to a variety of

people from those who just want great burgers, to those who just want a quick

healthy meal.
 Value Pricing:-

Happy meal Small burger ,French fries ,Coke + Toy

Medium Meal Combo- Burger , French fries ,Coke-Veg Rs:75 ,Maharaja

Mac Meal Rs: 95

Family Dines under Rs: 300

Prices lower than Pakistan, Sri Lanka, and 50% lower than U.S.

The most important reason for McDonalds pricing flexibility is its well-

established supply chain arrangement, which ensures efficiency and speed in

distribution. Besides, huge increases in volume sales and food processing

technology have been helping the company to offset its cost.

Promotion:

A successful product or service means nothing unless the benefit of such a service

can be communicated clearly to the target market. An organizations promotional

mix cans consist of:

Promotion Mix:

Advertising
Public Relation
Sale Promotion
Personal Selling
Direct Mail
Internet / E- Commerce
The promotions aspect of the marketing mix covers all types of marketing

communications. The methods include advertising, sometimes known as 'above the

line' activity. Advertising is conducted on TV, radio, cinema, online, poster sites

and in the press (newspapers, magazines).Key objectives of advertising are to

make people aware of an item, feel positive about it and remember it. The more

McDonald's knows about the people it is serving the more it is able to

communicate messages which appeal to them Messages should gain customers'

attention and keep their interest. The next stage is to get them to want what is

offered. Showing the benefits which they will obtain by taking action, is usually

sufficient. The right messages must be targeted at the right audience, using the

right media.

The Media Magic

You Deserve a break today, so get up and get away- To McDonaldsThe above

break commercial was one of the initial commercial themes adopted by

McDonalds United State which became the best known commercial song on

television and, in fact, the most identifiable advertising themes of all time.

Needham was one of the first advertising agencies of McDonalds which made

many revolutionary advertisements for the company. Needhams advertising

formula became knowin McDonalds as Food, Folks, and Fun and it remains the

backbone of all the chainsadvertising campaigns. McDonalds is now, one of the

worlds mightiest consumer marketers. Its brand valuation is $25 billion, making

the ninth most valuable brand in the world

Placement Strategies:

McDonald's focuses on store placement and are always looking for the best

locations. This strategy created some weakness in the last 10 years because it

seemed that too many stores were put in some areas, cannibalizing sales from the

other McDonald's.

The company has also made convenience a focus, not only through how fast it

serves customers, but also in the location of its outlets. Freestanding restaurants

are positioned so that you are never more than a few minutes away by foot in the

city or by car in the suburbs. In addition, McDonald's is tucking restaurants into

schools, stores, and more .

Direct Distribution Indirect Distribution

MANUFACTURES MANUFACTURES

RETAILERS

CONSUMER CONSUMER
Logistics play a critical role in McDonalds location strategy. As a part of its

Quick Service Restaurant (QSR) business, McDonalds has initially decided to

open its outlets only with in a 500-km radius of its main distribution centers in

Delhi and Mumbai. This is there on why McDonalds has not opened a single

outlet in metropolitan cities like Kolkata in the eastern part of India, despite the

citys huge urban and cosmopolitan character.

Besides Delhi and Mumbai, other places where McDonalds has opened up

restaurants are satellite cities located near Delhi (such as Noida, Gurgaon, and

Faridabad), or Mumbai (such as Pune); places with tourist appeal (such as Jaipur,

Mathura, and Shimla); and cities with an eating-out culture (such as Ahmedabad,

Chandigarh, and Bangalore). TheMcDonalds outlet in Ahmedabad in the state of

Gujarat is an interesting case.

Ahmedabad is largely a vegetarian city. But, like other metropolitan Indian cities,

Ahmedabad has a significant number of eating-out customers. Given long lines of

people at the counter, It seems that McDonalds well-balanced menus of vegetarian

and non-vegetarian items has provided enough choice and space for customers of

this city. McDonalds has partnered with the state-owned oil company, Bharat

Petroleum Corporation Ltd. (BPCL); to set up restaurants at the latters petrol

stations in and around Delhi to make it more convenient for automobile-driving

consumers. BPCL is the leading petroleum retailer in India and has the largest

number of petroleum stations in and around Delhi.

It is important to note the shift in government attitude toward MNCs that led to a

successful partnership between McDonalds and the largest state-owned company.

Keeping an eye on the huge potential for eating out venues for lower middle-class

Indians, McDonalds has partnered with a railway station and bus station in Delhi

to open its outlets: Delhi Metro Rail Corporation, and the overcrowded Delhis

Inter-State BusTerminus, where thousands of people pass through daily on their

way to different destinations. More importantly, to tap the automobile-driving

consumers, business travelers, and tourists, McDonalds has set up drive-through

outlets in Delhi and along national highways. Two drive-through outlets on the

Delhi-Agra and Mumbai-Pune highways have proven to be successful.

The company has plans to open more drive-through outlets in Delhi and Mumbai

and along national highways - such as the Delhi-Jaipur highway, Delhi-Ambala

highway, and Delhi-Ludhiana highway. The move to set up these new restaurants

has been driven by new business prospects, logistics, and supply chain.In order to

tap into the business of shopping mall and film-going customers, McDonalds has

set up outlets at shopping malls and new multiplexes in metros like Delhi and

Mumbai. The success of its outlet at the Crossroads in Mumbai is evidence that a

strategic location outside a mall can bring in customers in hordes.

Given the premium pricing in the shopping mall, it is not surprising to see that

many people are content with window-shopping at the Crossroads. But they do not

mind spending a few rupees at McDonalds for a burger or spicy fries.

More important, families with children are happy to spend at least 7rupees to buy

an ice cream for their children. Thus, while most shop-owners at the mall are hard-

pressed to break even, the lines at the McDonalds counters seem unending. A

similar trend is seen at the newly opened multiplex in Delhis Vikaspuri.

PHYSICAL DISTRIBUTION AND LOGISTICS

A company the size of McDonald's requires the value chain to be increasingly

important. Not only does McDonald's want to add value for the customers, but also

the firm looks for ways to improve the operations that makes McDonald's a more

efficient business. McDonald's is constantly striving to add value to the firm for

their customers, and in doing so, the firm has created efficiency in getting the

products to the customers quickly and as fresh as possible.

McDonald's is constantly looking for ways to improve and is successful because of

the continuous updates on equipment, improvement on serving time and in finding

more ways than one to satisfy customers. McDonald's value chain is unique

because of the rare need to depend upon other companies for supplies. The firm

owns nearly every portion of the value chain including warehouses, delivery

trucks, and the real estate where their restaurants built. Restaurant chains
encounter many obstacles in maintaining their business, but the most common

obstacle is the logistical planning in getting food and supplies.

McDonald's established warehouses within a reasonable proximity to all of their

restaurants to solve some of the logistical problems it had experienced. This,

along with owning the warehouses allows the restaurants to get all of the needs

met in one shipment and not deal with multiple suppliers. This, of course, does not

eliminate the need for suppliers, but it has eliminated the need to coordinate paper

products deliveries with meat deliveries.

Supply Chain Management:

Another critical strategy was to set up a well-established supply chain in India in

order to achieve three objectives:(1) To operation its globally practiced QSCV

(quality, service, cleanliness, and value)principle;(2) To enjoy flexibility in pricing;

and(3) To launch a new product when necessary. To achieve these three objectives,

McDonalds often uses an outsourcing model in allits markets. In some cases, it

also actively imports. But given Indias relatively higher import duties and foreign

exchange fluctuations, McDonalds decided early on to source its raw materials

from the local suppliers to the maximum extent possible. Currently,

McDonaldsonly imports the process control equipment that allows it to dish out

burgers and other orders within its super-fast time frames.

The company, however, sources 95% of its raw materials from 38 local suppliers.
 Fresh lettuce comes from Delhi, Pune (Maharashtra), Nainital, and Ooty

(UttarPradesh);
Cheese comes from Dynamix Dairies located in Baramati (Maharashtra);
Buns come from Cremica Industries in Phillur (Punjab) and Shah Bector and

Sons inKhopoli (Maharashtra);

Pickles come from Global Green Company in Hyderabad (Andhra Pradesh);
Sauce comes from Bector Foods in Phillur (Punjab); and
Chicken patties, vegetable patties, pies, and pizza puffs come from Vista

Processed Foods in Taloja (Maharashtra).

The entire supply distribution is the responsibility of AFL Logistics Ltd., a joint

venture (50:50) between Airfreight and Coughlin in the U.S., and Radha Krishna

Foodland (P) Ltd. In Thane, Maharashtra. AFL is responsible for temperature

controlled movement of all products from suppliers to distribution centers. Setting

up a well-coordinated supply chain was not easy, given Indias poor transportation

and storage infrastructure, as well as its lower-quality agricultural products. Thus,

six years prior to the opening of its first restaurant in India, McDonalds and its

international suppliers worked together with local Indian companies to develop

products thatmeet the rigorous quality standards McDonalds demands. An

underlying principle in productdevelopment was to strictly adhere to the Indian

governments regulation on food, health, and hygiene and to exceed the

governments standards. To do so, McDonalds transferred its state-of-the-art food

processing technology to India, enabling Indian businesses to grow by improving

their ability to compete in todays international markets. McDonalds has worked

with local Indian suppliers to consistently improve the quality and increase greater

yields of agricultural products. For instance, it helped farmers of Trikaya

Agriculture Company to grow high-quality lettuce year round in Ooty, Pune, Delhi,

and other regions.

McDonalds shared with Trikaya advanced agricultural technology and

expertise like utilization of drip irrigation systems that reduce overall water

consumption and agricultural management practices.

For quality control, Trikayas post-harvest facilities nowinclude a large cold

storage facility, a cold chain consisting of a pre-cooling room to removefield heat

and large refrigerated vans with humidity controls. To ensure standardization and

higher quality, Vista International, which supplies the pies, nuggets, and vegetable

and chicken patties, built a new facility in 1996 with help from McDonalds. This

new facility has insulated panels, temperature control, and chill rooms. Vista

International has obtained American Institute of Bakers and Hazard Analysis

Critical Control Points (HACCP) certification for quality standards. In some cases;

Indian companies like Dynamix Dairies had the technology but no market for their

milk derivative products. By associating with McDonalds Dynamix Dairieshas seen a

regularly growing expansion of its market. Now, it not only supplies products to
McDonalds restaurants in India, but also has an export order of approximately

US$12million per year. Radhakrishna Foodland (P) Ltd., which is responsible for

getting products from various suppliers and delivering products to various

McDonalds outlets, has earned an excellent reputation in maintaining a tight

delivery-on-time schedule. This is possible because of the companys installation

of enterprise resource planning (ERP) software, which provides data of what is

selling where. This way, the company is able to anticipate demand in each retail

outlets and place orders with producers accordingly. With the help of McDonalds,

the company has set up a trucking fleet to move supplies to restaurants at short

notice.

Each of the companys delivery trucks has three degrees of refrigerationa freezer

section for meats, a cold refrigerator section for vegetables, and a non-refrigerated

section for paper Cups, napkins, and plastic cutlery. These ways, each truck

delivers multiple items at one go and saves the company and restaurants a huge

sum of transportation cost.

Radhakrishna Foodland distribution center also maintains high-quality standards in

cleanliness, including personal hygiene for the drivers, packing, and checking

temperatures of the food it transports to various restaurants. The company

maintains detailed data logs to track the movement of each batch of food items. In

case of a complaint about a food item at any McDonalds restaurants, the data logs
help the company to identify the batch from which the particular food item came.

Then the company issues a warning or decides to discontinue the batch from which

the food item came. This ensures a high-quality standard of food items delivered to

each McDonalds outlet. Not surprisingly, the company has obtained American

Institute of Bakers and HACCP certification for quality standards. Such meticulous

planning in setting up a well-coordinated supply chain system haspaid rich

dividends to the McDonalds operations in India. It has minimized costs, optimized

quality control, and ensured higher customer satisfaction, which is so very essential

for the companys growth. More critically, the improved transportation and food

processing technology seems to have served as an important catalyst for increasing

Indias agricultural productivity while raising farmers incomes. This has scored

very well on the political front and won the governments goodwill.
 RESEARCH METHODOLOGY

Research can be defined as systematized effort to gain knowledge. A research is

carried out by different methodology, which has their own pro and cons. .

Research methodology is a way to solve research problem along with the logic

behind them. Thus when we talk of the research methodology we not only take of

research method but also context of our research study and explain why we are

using a particular method or techniques and why we are not using other so that

research result are capable of being evaluated either by the researchers himself or

by others.

Research Methodology means the method carried out to study the problem. It

shows the type of the sample design used, its size and the procedure used to dew

sample. The extent of precision achieved and the method used for handling any

special problem during the course of the study.

IST STEP:

To Decide The Objective Of The Study To Be Carried Out:

To study about McDonalds.

To find the Marketing Strategy of the company.

To find retention strategies of the company.

IInd STEP:

To Decided The Research Design:

What is research design?

Research design is a plan, structure, strategy of investigation conceived so as

to obtain answer to research question and control variance. There are three

types of research design system.

Explanatory Research

Descriptive Research

Casual Research.

Among the above mentioned types descriptive research design has been chosen.

Descriptive research is to find the efficient sales of McDonalds. In order the study

the characteristics and variables, cross sectional analysis was conducted by using
field survey method. In the process of field survey, a questionnaire was developed

and circulated to the respondents, which formed the basis for entire research.

IIIrd STEP:

To Determine The Source Of Data:

Data source are the data resources or collection of fresh and data to obtain results.

There are two types of data sources: thus happen to be original in character.

Primary Data :

Primary data is that which is collected fresh and thus happen to be original in

character.

Secondary Data :

Secondary data is any data, which have been gathered earlier for some

other purpose. Among the above mentioned types of data was used for the

study and analysis of the objective of this project, Also the secondary to data

proved to be helping hand in framing up the industry scenario and also the

relevant topics in the entire project report.

Reason For Selecting Primary Data :

In terms of primary data structure questionnaire was prepared to interview the

customers and employees of McDonalds Agra location. Analysis clearly

 reflected the views and preference regarding the perception of the people

towards liking of McDonalds.

Observation method

Survey method

IVth STEP:

To Design Data Collection Form :

As for as the data collection method for this project is concerned, designing the

data collection forms or survey forms is applicable to the project. The method

selected survey method.

A Survey can be Conducted by : -

Personal interview

Telephonic interview

Amongst the above method personal interview method was conducted to gather

information in detail.

This method was chosen because along with the study of projects primary

objective i.e. study of market research and to satisfy the customers to buy products.
Vth STEP:

To Determine Sample Design Sample Size:

Sample size specification 100 which include childrens, parents and employees of

McDonalds.

VIth STEP:

FIELD METHODOLOGY:

The methodology adopted in the field of to collect the data represented

diagrammatically below:
 DATA ANALYSIS INTERPRETATION

1) How often do you eat at McDonalds?

(once a year/once a month/once a week/every day)

McDonald's
60%

50%

40%
McDonald
30%

20%

10%

0%
Once a Year Once a Month Once a Week Every Day
 2) Would you say that McDonalds is healthy?

(yes/no/not sure)

McDonalds is Healthy
80%

70%

60%

50%
McDonalds is Healthy
40%

30%

20%

10%

0%
YES NO NOT SURE

3) In a month, how much would you roughly spend there?

 (0-20/21-40/40+)

0-20 21-40 40+

4) Why do you eat at McDonalds?

 (25% Taste Good, 30% Cheep, 35% Convenient, 10% I dont eat
McDonald)

Reason to Eat at McDonalds

Tastes Good
Cheap
Conveinent
I dont eat at McDonald

5) Which is your favorite product at McDonalds?

 (6% Maharaja Mac, 15% Mc Chicken Burger, 12% Mc veggie Burger, 30%
French Fries, 12% Mc-Curry Pan, 15% Filet o Fish, 10% Others)

Favourite Product at McDonalds

Maharaja Mc
Mc Chicken Burger
Mc Veggie Burger
French Fries
Mc-Curry Pan
Filet o Fish
Others

6) Is Product line in McDonalds adequate?

 (28% Yes, 34% No, Avg. 38%)

Product Line

Yes
NO
Average

7) What is the main problem you faced at McDonalds?

 (24% long ques., 4% Rude Behavior of Employees, Congestion 16%, Others
16%, No Problem 40%)

Problem Faced in McDonld's

Long Ques
Rude Behavior of
Employees
Congestion
Others
No Problems

8) Which area do you think needs the most improvement?

 (10% Delivery Time,6% Capaciousness,30% Product Variety,24% Prices,20%
Offers & Discount,10% Others)

Improvement Requires

Delivery Time Capaciousness Product Variety Prices Offers & Discount Others

9) What is the first thing that strikes your mind about McDonalds?
(26% Burger,30% Golden Archos,18% Service,4% Value for Money,22% Fun)

First thing about McDonalds that strie custome mind

Burger
Golden Archos
Service
value for money
fun

FINDINGS AND ANALYSIS:

McDonalds maid is a family restaurant.

Customer wants to eat at Mc- D every day.
 They focus on price presentation, services, hygiene etc. .
McDonalds not only highlighted the economics value but also the

experimental aspects at their store.

Customer wants the improvements in terms of product variety.
Aimed at 100% customer satisfaction for every customer on every visit as:
o Service
o Accuracy in order taking
o Knowing needs
o Quality food
Lower supply chain cost so that it can help in cost reducing.
Focus on gifts for all generations i.e. youth, kids especially senior citizen

which is a completely new concept.

CONCLUSION

McDonalds should position as a family restaurant.

Extra care should be taken to make the restaurant children friendly.

McDonalds targeted both see A & B, because no other company targeted

kids quite persistently.

McDonalds strategy is obviously to make the eating- out function the focus

of these outings.
 The McDonalds management claimed that the products that we serve are of

international standards & we believe that our brands have grown because we

deliver our promise, we sustain quality and experience promised to the

consumers in our advertisements in the restaurants.

Every day experience, encouraging the customer to visit regularly.

SUGGESTION

Focused on the electronic media.

They do not use the print media and go for ads which talk about emotions

family ties, fun and all these high usual appeal.

 Redesign happy meal encourages customers with innovative experience

while providing with McDonalds products with in its restaurants.

Started providing coke with small Mc Shake for Rs. 8 or more.

 APPENDIX

QUESTIONNAIRE

NAME:.....
AGE:..

ADDRESS:...

OCCUPATION:

VALID PERIOD:..

1) How often do you eat at McDonalds?

Once a year
Once a month
Once a week
Every day

2) Would you say that McDonalds is healthy?

Yes

No

Not sure

3) In a month, how much would you roughly spend there?

0-20

21-40

40+

4) Why do you eat at McDonalds?

 25% Taste Good
30% Cheep
35% Convenient
10% I dont eat McDonald

5) Which is your favorite product at McDonalds?

6% Maharaja Mac
15% Mc Chicken Burger
12% Mc veggie Burger
30% French Fries
12% Mc-Curry Pan
15% Filet o Fish
10% Others)

6) Is Product line in McDonalds adequate?

28% Yes
34% No
38% Avg.

7) What is the main problem you faced at McDonalds?

24% long ques.

4% Rude Behavior of Employees
Congestion 16%
others 16%
No Problem 40%

8) Which area do you think needs the most improvement?

10% Delivery Time

6% Capaciousness
30% Product Variety
24% Prices
20% Offers & Discount
10% Others
9) What is the first thing that strikes your mind about McDonalds?
26% Burger
30% Golden Archos
18% Service
4% Value for Money
22% Fun
 BIBLOGRAPHY

BOOKS:-

BRAND PRACTICES.

MAZINES:-

BUSINESS WORLD.
100 TOP BRANDS.
THE VALUABLE BRANDS OF INDIA.

WEB SITES:-

www.mcdonaldsindia.com

www.mcdonalds.com