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IIPM

Marketing Research Report On McDonald


Submitted To: Prof. Durgesh Batra

Submitted By: Swati Gupta


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Letter of Acceptance
To: Mr. Durgesh Batra Lecturer IIPM, Jaipur

Subject: PREPARATION OF REPORT I am hereby presenting the report on Company McDonald and assure you submission of our report in compliance with the instruction envisaged. Name of topic is repeated for ready reference please. Marketing Research report on McDonald Yours sincerely,

Swati Gupta

Date: November 03, 2009

Acknowledgement
The successful accomplishment of any task is incomplete without acknowledging the contributing personalities who assisted and inspired and lead us to way of success. At the outset I would like to express my deep sense of gratitude and sincere thanks to Mr. Manish Tiwari, Dean, Indian Institute of Planning and Management, Jaipur for providing an opportunity to discover the corporate world from a close perspective. I also thank Prof. Durgesh Batra, my marketing research guide for this project report to whom I am deeply grateful for his constant report and guidance without which it would not have been possible for me to complete this project. I convey my gratitude to all the staff of McDonald for their kind cooperation throughout my project. I would also like to thank everyone who contributed in any manner to this project. Finally I thank my dearest Parents & Friends for their continued support.

Swati Gupta

TABLE OF CONTENT
Sr. No. Particulars 1. Executive Summary 2. Introduction of McDonalds - History - Business Model - McDonalds in India 3. SWOT Analysis 4. Methodology - Introduction - Research Objective - Research Plan - Research limitations 5. Analysis & Interpretation 6. Conclusion & Recommendations 7. Annexure - Bibliography Page No.

EXECUTIVE SUMMARY
During the past four decades McDonald has built a reputation for excellence that has earned the respect of consumers and industry experts alike. Building a leading company like McDonald has required relentless innovation, commitment to quality and dedication to customer service and value. The qualities of entrepreneurship, growth and leadership have characterized McDonalds business through more than four decades of success. Through the strength of its heritage, its culture and its people and franchisees, McDonald looks forward to more success in future. This report presents an in-depth business, strategic and marketing analysis of McDonald's Corporation. The report provides a comprehensive insight into the company, including business structure and operations, major strategies and key competitors. The hallmark of the report is the detailed marketing research and analysis on the company. The research is done with predefined objectives and aims, with a proper designed procedure in order to carry out the research work efficiently and effectively. The report also enlightens the SWOT (Strength, Weakness, Opportunities and Threats) Analysis of the company so as to examine the companys key business structure and operations, history and products, and provides summary analysis of its key revenue lines and strategy. The research report also includes resultant pie charts based on the survey conducted for the popularity and success of McDonalds. All the limitations while preparing the research report is mentioned and the final analysis and interpretation is revealed.

Introduction of McDonald
McDonald's is the world's #1 fast-food company by sales, with about 32,000 restaurants serving burgers and fries to 52 million people in about 120 countries. (There are nearly 14,000 Golden Arches locations in the US.) The popular chain is well-known for its Big Macs, Quarter Pounders, and Chicken McNuggets. Most of its outlets are freestanding units, but McDonald's also has many units located in airports and retail areas. Each eatery gets its food and packaging from approved suppliers to ensure that a Big Mac purchased in Pittsburgh tastes the same as one bought in Beijing. Nearly 80% of the restaurants are run by franchisees or affiliates. More than 70% of McDonald's restaurants worldwide are owned and operated by independent local men and women.

Mc Donalds Mission Statement "McDonald's vision 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."

Principles of the Organization Principles that guide the organization-:

Quality, Service, Cleanliness & Value - It is an unflinching McDonald's ideology that the customers must always get quality products, served quickly and with a smile, in a clean and pleasant environment; and all at a fair price. They are committed to exceeding our customers' expectations in every restaurant every time. They have a passion and a responsibility for enhancing and protecting the McDonald's brand. Believe in a collaborative management approach, employing a mutually respectful business philosophy, Will seize every opportunity to innovate and lead the industry on behalf of the customers.

Business Model
Franchise Model Only 15% of the total number of restaurants are owned by the Company. The remaining 85% is operated by franchisees. The company follows a comprehensive framework of training and monitoring of its franchises to ensure that they adhere to the Quality, Service, Cleanliness and Value propositions offered by the company to its customers. Product Consistency By developing a sophisticated supplier networked operation and distribution system, the company has been able to achieve consistent product taste and quality across geographies.

Act like a retailer and think like a brand McDonalds focuses not only on delivering sales for the immediate present, but also protecting its long term brand reputation.

McDonalds in India
McDonald's opened its doors in India in October 1996. Ever since then, Mc Donalds family restaurants in Mumbai, Delhi, Pune, Ahmedabad, Vadodara, Ludhiana, Jaipur, Noida Faridabad, Doraha, Manesar and Gurgaon have proceeded to demonstrate, much to the delight of all the customers, what the McDonald's experience is all about. The first restaurant opened on 15th April 1955 in Des Plaines, Illinois, U.S.A. Almost 50 years down the line, its are the world's largest food service system with more than 30,000 restaurants in 100 countries, serving more than 46 million customers every day.

Features:

LOCALLY OWNED

McDonalds in India is a 50-50 joint venture partnership between McDonalds Corporation [USA] and two Indian businessmen. Amit Jatias company hard castle Restaurants Pvt. Ltd. owns and operates McDonald's restaurants in Western India. While Connaught Plaza Restaurants Pvt. Ltd headed by Vikram Bakshi owns and operates the Northern operations.

Amit Jatia and Vikram Bakshi are like-minded visionaries who share McDonald's complete commitment to Quality, Service, Cleanliness and Value (QSC&V). Having signed their joint-venture agreements with McDonald's in April 1995, they trained extensively, along with their Indian management team, in McDonald's restaurants in Indonesia and the U.S.A. before opening the first McDonalds restaurant in India.

RESPECT FOR LOCAL CULTURE

McDonald's India has developed a special menu with vegetarian selections to suit Indian tastes and preferences. McDonald's does not offer any beef or pork items in India. Only the freshest chicken, fish and vegetable products find their way into the Indian restaurants. In addition, they have re-formulated some of the products using spices favored by Indians. Among these are McVeggie burger, McAloo Tikki burger, Veg. Pizza McPuff and Chicken McGrill burger.

SWOT ANALYSIS
Strengths
Successful Advertisement (Im lovin it) Great Partnership (Coco Cola) Clean environment and playground for kids Professional training for employees (Hamburger University)

Weaknesses
Product Development Price Management for franchisees/joint ventures

Opportunities
Internationalization Growing dining out market (Especially young generation and middle age group)

Threats
More health conscious customers Threats from local competitors in different countries The economic downturn Playing in a mature and saturated industry

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Methodology
Research Introduction
The activities of market research include defining marketing opportunities and problems, generating and evaluating marketing ideas, monitoring performance, and understanding the marketing process. The methodology of the study included selection of sample, study/survey of library references, collation and compilation of the primary and secondary data and information obtained through structured questionnaires, open ended interview. The method of research was deductive as conclusion would be drawn after the analysis and interpretation of data collected.

Research Objective
To identify and analyze the various components of the service experience rendered by McDonalds to its customer. To analyze the impact of service experience on customers at McDonalds. To study the challenges in maintaining and improving the service experience rendered by McDonalds.

Research Plan
Research plan is developed into various components Data sources
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Research instrument Sampling methods

Data Sources
Primary data:-

Primary data is collected from the locality of the coverage area. We have taken in to consideration the views of manager, sales manager, marketing manager, auditor, employees, etc. & our professors about the relevant subject & also pay attention towards their suggestions. Their suggestions are incorporated in the report. Beside of all this, some data is also collected by ourselves. Secondary data:Same as above some data is collected from the media also. Newspapers Magazines Books on Management Text books

Research Instruments
To collect the primary data for the Management Thesis, we have selected some questions in concern with the organization. We used these questions as a research instruments for knowing the facts. These questions are as follows: Questions related to their marketing management.
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Questions related to their capital Questions related to their investment. Questions related to their turn over. Questions related to their advertise expenditure. Questions related to their interpersonal relations with Customers Questions related to their competitors. Questions related to their organizational structure. Questions related to training & development of employers Questions related to motivation.

Sampling Methods
The points considered in the sampling plan are as following:Sampling Unit:The staff of the organization including the managers of different departments and the employees was targeted for the Marketing research report. Sampling Quantity:The sampling quantity was 24 & all are related with McDonalds. Apart from this we also considered some customers of McDonalds. Coverage:The coverage of the survey was whole organization i.e. McDonalds.

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Research Limitations
Some limiting factors were faced while conducting the research and preparing the report. These could be summarized as follows: No secondary information was found, such as, any report or research papers on this particular issue. For finding out reasons behind gap between theory and practice, enough number of projects could not be studied due to shortage of time and scope. Only internal specialists were interviewed.

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Analysis & Interpretations


The result of the survey is as follows-

Q1. how frequently do you visit McDonalds?

Daily 10%

Occasionally 30%

Monthly 10%

Weekly 50%

Interpretation
Majorly were weekly visitors to the outlet. The age group 20- 26 majorly consist of the weekly visitors and the occasionally were the adult age group of 35 and above. The daily being a minority also consisted of the college goers. The kids with age group 10-18 were in the weekly group.

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Q2 which is your favorite product at McDonald?

Interpretation
Customers were asked about their favorite product at McDonald. Majority of age 20-26 were for French fries and Mc Aloo Tikki Burger.

Q3. is the product line in McDonald adequate?

Yes 28% Average 38%

No 34%

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Interpretation

Q4 Is the price of the products at McDonalds reasonable?

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Very costly 8%

Cheap 32%

Costly 23%

Resonable 37%

Interpretation
The price of the product according to the majority sample was reasonable. 32% of the sample said that the prices were cheap and they were mostly from the 20-26 age group. But the reasonable category consisted of the 35- above and 20-26 age group and the rest were in the costly and very costly bracket.

Q5 How does you like the infrastructure at McDonald?

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Poor 10% Very Good 23% Average 22%

Good 45%

Interpretation
The infrastructure was rated on the basis of poor, average, good and very good. Mostly of the age group of 16-24 went for good. Poor and average were comparatively less.

Q6 How does you like the service delivery process of McDonald?


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Poor 8%

Average 12%

Impressive 25%

Quick 55%

Interpretation
The customers were asked about the service delivery process. Most of them found it to be quick. Age group of 30-35 voted for average and the ratio of poor was very less.

Q7 what about the cleanliness at McDonald?

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Not Clean 5%
Very Clean 20%

Average 23%

Clean 52%

Interpretation
The cleanliness of the outlet was rated by the sample. The majority rated it as clean, but some part of the sample found it average. The cleanliness pertained to both the dinning as well as the processing area. The washroom was not taken part of it because the washroom is not a part of the outlet but of the plaza.

Q8 How is the design of the outlet?


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Perfect 20%

Bad 12%

Average 30% Good 38%

Interpretation
The design of the outlet is not standardized. It varies from place to place but the inner decoration or the layout is almost or 70% the same. They expressed their views by saying it as stylo outlet and but it did not find it convenient to the storey concept as the order had to be taken from the downstairs and then carried it to the top floor.

Q9 what is the main problem you faced at McDonalds?

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No Problem 40%

Long Queues 24%

Other 20%

Congestion 16%

Interpretation
The customers were asked if any problem was faced by them. They said Availability of space especially at the weekends. Non compliance with the 3-minute reprocessing of the order. Repetition of the order more than twice on some occasions. Crowded Going downstairs again for placing any more order

Q10 what area do you think needs the most Improvement?

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Delivery time 10% Others 11% Capaciousne ss 20%

Price 31% Product Variety 28%

Interpretation
The customers were in the end asked if they want any improvement in any area. The overall ratings were given and various results came as they need reduction in prices and want a more capacious area. Product variety should also be increased.

Conclusions and Recommendations


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Conclusions
Fast food restaurant is that part of service industry which is balanced i.e. the dominance of tangibles and intangibles is equally divided. In this industry it is more of people processing i.e. it is directed at the people and the nature is that of a tangible act. Mc Donalds employs a cold chain system. The above analysis clearly lay out in detail the components of the service experience offered by the MC Donalds to the consumers and the impact of the same on the consumers. Service experience is not only what you get when you arrive at the place but also what happens when you think about it and what your thoughts are when you leave for the outlet. The outlets following the franchise way gives the service experience in the standardized way but as the inherent quality of variability surrounds every service rendered hence the views and the experience also differs. Hence, the overall ratings define clearly the same. The Servuction model is another tool to understand the impact of the customers of the various factors i.e. service experience rendered by the MC Donalds. the model has helped depict what are the various influencing factors and the data tabulation reveals the impact of the same. The service organization has been successful in positioning itself as the affluent, westernized teenager, modern, upscale family, possibly driven by children who enjoy the feeling of eating at the Mc Donalds. Hence, the Mc Donalds can ensure that its consumers are saying I m lovin it.

Recommendations
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Membership participation of the consumers- the Mc Donalds follows

formal relationship but doesnt involve its customers for further association. The membership clubs or helping the Mc Donalds members (through some enrolment process) on some issues or topics e.g. - Backpacking or Trekking etc. Television sets to be placed appropriately- the television sets are placed at the outlet in an inappropriate manner. The upstairs 2 television sets are not placed in a manner in which all consumers can have a good look at it from different places. Water Availability- The water availability at the store should be made. Right now they provide with a small glass of water and that also after asking for the same twice. This may be due to the fact that beverages should be sold and if water is provided for free it may lead to non- purchase of the beverages. Space between the Counters- there isnt any clear cut division between the three counters hence when the order takers ask the customer to step to their left after placing the order, their no actual space to shift to the left at the first two counters. Hence the counters should be placed in a way that they are equally spaced and have enough gaps amongst themselves.

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Storey story- the store concept has really leaded to the dampening of the rating of the design of the outlet. As the plaza opens up, the outlet should adequately cover up for this dampener.

Menu Prices- The price displayed should be reviewed accordingly

and the revised prices should be stated at the display. Salads- Mc Donalds has introduced the salads concept in various other countries but not yet in India. Seeing the growth of health conscious generation salads should be introduced in the menu card of India too.

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Annexure
Bibliography
BOOKS

Hoffman k. Douglas, Bateson John E.G., Marketing of Services, 2006, Cengage learning products, New Delhi 2008. Rajendra Nargundkar, Service Marketing- Text and Cases, 2nd edn, McGraw Hill Companies, New Delhi 2008.

Cooper, Robert G. and Scott J. Edgett (1999), Product Development for the Service Sector:Lessons for Market Leaders. Cambridge, MA: Perseus Books.

Kurtz, David L. and Kenneth E. Clow (1998), Services Marketing. New York: John Wiley & Sons.

WEBSITES

http://www.slideshare.net/kriskate/extended-marketing-mix http://www.oppapers.com/essays/Macdonald-The-Marketing-Mix/212438 http://www.scribd.com/doc/13212962/extendedmarketingmix12344285948016601?autod own=ppt

http://www.oppapers.com/essays/Service-Marketing-Pizza-Hut/160111 http://www.slideshare.net/kriskate/extended-marketing-mix http://www.oppapers.com/essays/Macdonald-The-Marketing-Mix/212438 http://www.oppapers.com/essays/Service-Marketing-Pizza-Hut/160111 http://www.rocw.raifoundation.org/management/mba/brand-manag/lecture-notes/lecture21.pdf

www.wikipedia.com www.economictimes.indiatimes.com www.mcdonaldsindia.com

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