McDonalds

UNIVERSITY OF MUMBAI
PROJECT ON
McDONALDS
SUBMITTED BY
DEEP NANDKUMAR KADU.
PROJECT GUIDE
PROF.MRS.MAHALAKSHMI SANKAR.
BACHELOR OF MANAGEMENT STUDIES
SEMESTER V
(2009-200!
V.E.S COLLEGE OF ARTS" SCIENCE # COMMERCE"
SINDHI COLONY" CHEMBUR - $000%
1
McDonalds
UNIVERSITY OF MUMBAI
PROJECT ON

McDONALDS
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B8
DEEP NANDKUMAR KADU.
PROJECT GUIDE
PROF.MRS.MAHALAKSHMI SANKAR.
BACHELOR OF MANAGEMENT STUDIES
SEMESTER V
(2009-200!
V.E.S COLLEGE OF ARTS" SCIENCE # COMMERCE"
SINDHI COLONY" CHEMBUR - $000%
2
McDonalds
DECLARATION
I" DEEP NANDKUMAR KADU 5*&,+-* 21 BMS 9 S+(+5*+/ V
(2009-200! 3+/+'8 ,+c0./+ *3.* I 3.:+ c2(;0+*+, *3)5 ;/2<+c* 2-
=McDONALDS>.
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DEEP NANDKUMAR KADU.
N.(+ 21 S*&,+-*
3
McDonalds
CERTIFICATE
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S&cc+551&008 c2(;0+*+, *3+ ;/2<+c* 2- =McDONALDS > &-,+/ *3+ 7&),.-c+ 21
PROF.MR S .MAHALAAMI. SANKAR .
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4
McDonalds
ACKNOCLEDGEMENT
It gives me great pleasure to submit this project to the University of Mumbai as a part of
curriculum of my M! course" I ta#e this opportunity $ith great pleasure to present before you
this project on =McD2-.0,5> $hich is a result of co%operation& hard $or# and good $ishes of
many people"
'o $ords can ade(uately e)press my sincere than#s to all those $ho have help me in ma#ing
this project a success"
*lso I ac#no$ledge my deep sense of gratitude to$ards my guide P/21+552/ M/5 M.3.0.?53()
S.-?./ .
I $ould also li#e to ta#e this opportunity to than#s M/. B3./.*.K/)53-..V.)*8 R+5*.&/.-*
M.-.7+/ (K3.0.;&/ S*2/+!.
I am grateful *2 M/5. J.K.P3.,-)5" P/)-c);.0 21 V.E.S C200+7+ 21 A/*5" Sc)+-c+ # C2((+/c+
.-, P/21 M/5. A. M./*)-." BMS C2-2/,)-.*2/ (B.c3+02/ 21 M.-.7+(+-* S*&,)+5!
My debt to those $ho have helped me in one $ay or the other is heavy indeed" I $ould li#e to
appreciate contribution of my family and friends $ho have e)tended their complete support in
completion of this project"
+ast but not the least, I am than#ful to the *lmighty for giving me strength& courage and patience
to complete this project"
-
McDonalds
EAECUTIVE SUMMARY
McDonalds is a globally successful fast%food restaurant" .rom the time of its birth it has
gain enormous success and is gro$ing at the international level" /he po$erful entry through
franchisee system the standardi0ation and adaptation strategy play an important role in gaining
the huge success of McDonalds and brand image of McDonalds"
McDonalds strategy of standardi0ing their products on its preparation& techni(ues of
presentation along $ith the adaptation strategy has created a difference in McDonalds as
compared to that of its competitors"
Mar#eting being my subject interest #no$ing the strategy of one of the most successful
company $ill really help me out" /hus& I have chosen McDonalds as my study of subject for
my 111 mar#s project in /2M!" /his has really helped me out to #no$ lots of mar#eting
techni(ues and practically understand the McDonalds strategy of standardi0ation and
adaptation"
3
STUDYD
In the project focus has been made on McDonalds franchisee in India" /he challenges
faced& their target mar#et& segmentation strategies" /he supply chain of the company and its
ability to provide best (uality food at the best cost" /he - 4s of McDonalds and the various
schemes provided by the company to its employees $hile $or#ing in McDonalds and even after
their retirement from the company" McDonalds as a service industry its life cycle is also studies"
/he present strength and $ea#ness of the company and the future opportunities and its future
threats are also study for better analysis of McDonalds mar#eting in India"
CONCLUSIOND
!tudying McDonalds and its mar#eting system has helped me a lot in understanding the
mar#eting subject in a better manner" *nd it $ill be helpful for me in near future"
5
McDonalds
I'D67
TITLE PAGE NO.
CHAPTER ID-INTRODUCTION
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CHAPTER IID - MCDONALDS IN INDIA
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CHAPTER IIID - MCDONALDIGING THE SUPPLIERS
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CHAPTER IVD - MARKETING MIA
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CHAPTER VD - MC EMPLOYEE
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A
McDonalds
TITLE PAGE NO.
CHAPTER VID-MCDONALDS IN SERVICE INDUSTRY
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CHAPTER VIID- ANALYSIS
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CHAPTER VIIID - EAHIBITS
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CHAPTER IAD - NEED FOR MCDELIVERY AND KIOSK
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CONCLUSION E
?
McDonalds
I'/89DU:/I9'
McD2-.0,J5 C2/;2/.*)2- )5 *3+ 62/0,J5 0./7+5* c3.)- 21 1.5*-122, /+5*.&/.-*5.
/he McDonalds :orporation is one of the most successful global restaurant chains
around the $orld" /hey have used effective management and global e)pansion strategies to enter
ne$ mar#ets and gain a share of the foreign fast food mar#et" McDonalds has achieved this
enormous success& its best practices in the global food industry& international gro$th trends and
challenges& and various lessons that have been learned from their e)pansion in foreign countries"
/his sho$s ho$ McDonalds creates both customer and brand loyalty for their products and
services"
In 1@3A rothers Dic# and Mac McDonald open a hot dog stand called the *irdrome at
the airport in Monrovia& :alifornia E in 1@41 the brothers move the *irdrome building to !an
ernardino& :alifornia& $here they open the first McDonaldFs restaurant" *lthough McDonaldFs
did not invent the hamburger or fast food& its name has become nearly synonymous $ith both"
/he McDonaldFs <olden *rches logo $as introduced in 1@52" It $as created by Gim
!chindler to resemble ne$ arch shaped signs on the sides of the restaurants" ;e merged the t$o
golden arches together to form the famous FMF no$ recogni0ed throughout the $orld" !chindlerFs
$or# $as a development of the styli0ed FvF logo s#etched by .red /urner& $hich $as conceived
as a more stylish corporate symbol than the !peedee chef character that had previously been
used" /he McDonaldFs name $as added to the logo in 1@5?"
McDonaldFs has its familiar golden arches logo, McDonaldFs has 31&??5 restaurants
$orld$ide serving ig Macs& :hic#en Mc'uggets& salads and .rench fries" Most restaurants
offer drive%thru service and some suburban locations offer outdoor playgrounds for children"
*ppro)imately A1H of McDonaldFs restaurants are operated by independent franchisors" /he
number of restaurants in the U"!" has reached saturation and most ne$ McDonaldFs are no$
being opened in 6urope& Middle 6ast and *sia"
@
McDonalds
In order to be a franchisee& an individual must have at least I1A-&111" /here is about
2&411 o$nerJoperators system $ide" McDonaldFs is loo#ing to boost sales by opening restaurants
24 hours a day" *n estimated 31H of store revenue comes from brea#fast sales" /he company
has instituted a dollar menu $hich includes a double cheeseburger in a bid to boost sales from
value%oriented customers"
11
McDonalds
;I!/982
/he first McDonaldFs restaurant $as located in !an ernardino& :* in 1@-4 and operated
by t$o brothers Dic# and Mac McDonald" 8ay >roc& a mil# sha#e machine salesman& thought
the restaurant $as great and purchased the rights from the brothers" >roc opened his first
McDonaldFs restaurant in Des 4laines& I+ in 1@-- and preached cleanliness in restaurants"
McDonaldFs $ould gro$ (uic#ly as it signed on franchisees to open restaurants around the
country" McDonaldFs $ould go public in 1@5-"
/he ig Mac $as introduced system $ide in 1@5? and $as the brainchild of Gim
Delligatti& one of 8ay >rocFs earliest franchisees& $ho by the late 1@51s operated a do0en stores
in 4ittsburgh" /he 6gg McMuffin $as developed by o$ner operator ;erb 4eterson in 1@A3"
/he site of the McDonald brothersF original restaurant is no$ a monument" Cith the
e)pansion of McDonaldFs into many international mar#ets& the company has become a symbol of
globali0ation and the spread of the *merican $ay of life" Its prominence has also made it a
fre(uent topic of public debates about obesity& corporate ethics and consumer responsibility"
In 211A& the company had record revenues of I22"? billion& a @H increase from the
previous year" 'et income $as I2"3@ billion" McDonaldFs sold the oston Mar#et restaurant
chain in 211A and o$ns a sta#e in :hipotle Me)ican <rill" In 211A& the :ompany completed the
sale of its businesses in ra0il& *rgentina& Me)ico& 4uerto 8ico& =ene0uela and 13 other
countries in +atin *merica and the :aribbean to a developmental licensee organi0ation" *n
estimated 11H of all $or#ers have once $or#ed at McDonaldFs in their lifetime"
11
McDonalds
.8*':;I!66!
12
McDonalds
.ranchising refers to the methods of practicing and using another personFs philosophy
of business" /he franchisor grants the independent operator the right to distribute its products&
techni(ues& and trademar#s for a percentage of gross monthly sales and a royalty fee" =arious
tangibles and intangibles such as national or international advertising& training& and other support
services are commonly made available by the franchisor" *greements typically last five to
t$enty years& $ith premature cancellations or terminations of most contracts bearing serious
conse(uences for franchisees"
McDonaldFs does business in more than 31&111 restaurants in 11@ countries around the
$orld serving 4A million customers each day" In many countries around the $orld it does not
have a presence and its current strategy is to focus on the mar#ets $here it does not do business"
'o firm date has been established for the opening of ne$ mar#ets" In certain mar#ets
McDonaldFs have a presence but it is not see#ing franchisees and it has included instructions
regarding those mar#ets" McDonaldFs sincerely appreciate the customers e)pressed interest in
McDonaldFs and their continued patronage of our restaurants"
M:D9'*+D! I'DI*
/he Indian beginning
13
McDonalds
* -1%-1 joint venture partnership bet$een McDonalds :orporation 3U!*K and t$o
Indian business& McDonalds began its journey in India in 9ctober 1@@5" :onnaught 4la0a
8estaurants 4vt" +td headed by =i#ram a#shi o$ns and operates the northern and eastern
operation $hich includes restaurants in 'e$ Delhi& Uttar 4radesh& 8ajasthan& 4unjab& ;aryana&
Cest engal etc"
*mit Gatias company ;ardcastle 4vt" +td" 9$ns and operates McDonalds restaurants
in Cest and !outh India" ;84+ has restaurants in Maharashtra& Madhya 4radesh& >arnata#a and
*ndhra 4radesh& :hennai and its gro$ing rapidly"
/he head office for ;ardcastle 8estaurants 4vt" is spread
across t$o building in Mumbai& one at hulbhai Desai 8oad and the
other at !antacru0" /he head office houses all the support departments
re(uired to run the restaurants in the $estern and southern region"
T3+5+ )-c0&,+5D-
:onstruction
It is involves in all construction and design related $or# for the stores as per
McDonalds standards" It prepares project plans for ne$ stores to be put to the management and
implements the same after approval"
:ountry 4urchase
*ll the purchases of ra$ material for restaurants products are done by the country
purchase department team for both the Delhi and Mumbai mar#ets" It $or#s as a national supply
chain" /he main aim is to purchase the best (uality material from the authori0ed supplier and at
lo$est possible cost" 9nce the material is ordered by a country
purchase it first goes to the distribution centre and then to the restaurants according to their
re(uirement"
14
McDonalds
:ountry Duality *ssurance E 4roduct Development
/his department $or#s closely $ith the country purchase department" It loo#s after the
(uality of both ra$ material and of finished product" It develops ne$ product for the menu based
on customer preference"
. inance E Information /echnol o gy
It loo#s after all the day to day financing accounting transaction and ta)ation related
activities of the application of Information /echnology to the the company processes"
:orporate *ffairs
It associates $ith brand building and protection of the brands" It $or#s closely $ith
real estate in doing feasibility studies for sites from a legal angle" It loo#s after license and
liaison activities of the company $ith outside agencies& i"e" regarding media
and government authority"
+egal E company !ecretarial "
It helps the company sign legal deals for the ne$ restaurants sites" It safeguards the
interest of the company and act as guardians of the company as regards to its legal functions" It
provide advisory support to the other departments as regards legal issues and ensures compliance
$ith applicable la$s"
4eople 8esources J ;uman 8esources "
It conducts activities related to recruitment& selection& remuneration& retention& and
matter related to employee satisfaction"
/raining& +earning E Development "
It is responsible for the training and Development of employees involved in operational
activity and the employees in the :orporate office"
1-
McDonalds
9peration
/his department id responsible for the day to day functioning of the restaurants in a
profitable manner"
Mar#eting E :ommunication "
It is responsible for brand positioning increasing brand a$areness and thus resulting in
increased sales" It is also responsible for advertising& media relation and implementing various
product promotion schemes li#e ;appy Meals& =alue Meals& etc"
15
McDonalds
9ur vision is to be the $orlds best (uic# service restaurant e)perience" /hat means that
our restaurant $ill be the best place for our customers to enjoy fast& friendly services LL fresh
food favoritesLL a clean $elcoming environmentLL and a fun e)perience at a fair price"

9U8 =*+U6!
9ur vision is supported by a set of core valuesM
Ce are dedicated to providing customers unparalleled levels of (uality& service&
cleanliness& and value" It is $hat 8*2 >89: taught us"
Ce are committed to our people because $e #no$ that a diverse team of $ell trained
individuals $or#ing together is the #ey to our continued success"
Ce approach all aspects of our business $ith honesty and integrity"
Ce al$ays give bac# to the communities in $hich $e do business"
Ce celebrate our achievements& yet $e are never satisfied $ith our results"

NT2 '+ 2&/ c&5*2(+/ - 1.:2&/)*+ ;0.c+ .-, 6.8 *2 +.*.>
:;*++6'<6! I' 6'/68I'< I'DI*' M*8>6/!
8egiocentricismM 8e%engineering the menu % McDonalds has continually adapted to
the customers tastes& value systems& lifestyle& language and perception" <lobally
1A
McDonalds
McDonalds $as #no$n for its hamburgers& beef and por# burgers" Most Indians are
barred by religion not to consume beef or por#" /o survive& the company had to be
responsive to the Indian sensitivities" !o McDonalds came up $ith chic#en& lamb and
fish burgers to suite the Indian palate"
/he vegetarian customer O India has a huge population of vegetarians" /o cater to this
customer segment& the company came up $ith a completely ne$ line of vegetarian items
li#e Mc=eggie burger and Mc*loo/i##i" /he separation of vegetarian and non%
vegetarian sections is maintained throughout the various stages"
!6<M6'/*/I9'& /*8<6/I'< *'D 49!I/I9'I'<
McDonalds uses demographic segmentation strategy $ith age as the parameter" /he
main target segments are children& youth and the young urban family"
1?
McDonalds
71%
59%
52%
0%
10%
20%
30%
40%
50%
60%
70%
80%
Biscuits Burgers & Pizzas Fruit Juices
% of kids who influence what FMCG brand their
family buys
*s sho$n above& #ids reign supreme in .M:< purchase related to food products" !o to
attract children McDonalds has ;appy Meal $ith $hich toys ranging from hot $heels to various
Calt Disney characters are given Pthe latest in this range is the toys of the movie MadagascarQ"
.or this& they have a tie%up $ith Calt Disney" *t several outlets& it also provides special facilities
li#e R4lay 4lace $here children can play arcade games& air hoc#ey& etc" /his strategy is aimed at
ma#ing McDonalds a fun place to eat" /his also helps McDonalds to attract the young urban
families $anting to spend some (uality time $hile their children have fun at the outlet" /o target
the teenagers& McDonalds has priced several products aggressively& #eeping in mind the price
sensitivity of this target customer" In addition& facilities li#e Ci%.i are also provided to attract
students to the outlets li#e the one at =ile 4arle in Mumbai"
NMc Donalds Mein ;ai >uch aatS projects McDonalds as a place for the $hole family
to enjoy" Chen McDonalds entered in India it $as mainly perceived as targeting the urban
upper class people" /oday it positions itself as an affordable place to eat $ithout compromising
on the (uality of food& service and hygiene" /he outlet ambience and mild bac#ground music
highlight the comfort that McDonalds promises in slogans li#e N2ou deserve a rea# /odayS E
N.eed your inner childS" /his commitment of (uality of food and service in a clean& hygienic and
rela)ing atmosphere has ensured that McDonalds maintains a positive relationship $ith the
customers"
1@
McDonalds
:ustomer 4erception and :ustomer 6)pectation
:ustomer perception is a #ey factor affecting a products success" Many potentially
revolutionary products have failed simply because of their inability to build a healthy perception
about themselves in the customers minds" McDonalds being an internationally reno$ned brand
brings $ith it certain e)pectations for the customers"
:ustomers e)pect it to be an ambient& hygienic and a little sophisticated brand that respects their
values" /he customers e)pect the brand to enhance their self%image" :ustomer responses
obtained at the =ile 4arle& Mumbai outlet confirmed the fact that they connect strongly $ith the
brand" ;o$ever& fulfilling some of the customer e)pectations li#e a broader product variety
provide McDonalds a great scope for improvement"
McD2-.0,)K)-7 *3+ S&;;0)+/5
SUPPLY CHAIN
!upply :hain is one of the critical factors for the smooth functioning of any business"
*nd $hen $e are tal#ing about fast food business $ith McDonalds as the subject of the study it
can e)pected a !upply :hain model of one of the highest precisions" It is this unmatched !upply
:hain !tructure& $hich not just ensures on time delivery of ra$ materials and supplies to
McDonalds but also enables it to cut do$n on its cost and ma)imi0e profitability along $ith
maintaining highest (uality standards of its products" /he level of commitment of McDonalds
can be gauged from the fact that even before it set up its first restaurant in the country it infused
8s 411 :rore to set up its delivery mechanism" McDonalds initiative to set up an efficient
21
/arget !egment Chat is McDonalds for meT
* .amily $ith children * treat to children& a fun place to be for the children"
Urban customer on the move <reat taste& (uic# service $ithout affecting the $or# schedule
/eenager ;angout $ith friends& but #eep it affordable"
McDonalds
supply chain and deploy state%of%art technology changed the entire Indian fast food industry and
raised the standards of performance to international levels"
*s already mentioned& McDonalds had been $or#ing on its supply chain even before it
opened its first joint in the country" McDonalds& an international brand $hich $as trying to ma#e
inroads into the country& developed its Indian partners in such a manner that they stayed $ith the
company from the beginning" /he success of McDonalds India $as achieved by sourcing all its
re(uired products from $ithin the country" /o ensure this& McDonalds developed local
businesses& $hich can supply it highest (uality products" /oday& McDonalds India $or#s $ith 3?
different suppliers on a long term basis and several other stand alone restaurants for its various
other re(uirements" McDonalds distribution centres in India came in the follo$ing orderM 'oida
and >alamboli PMumbaiQ in 1@@5& angalore in 2114& and the latest one in >ol#ata P211AQ"
McDonaldFs entered its first distribution partnership agreement $ith 8adha >rishna .oodland& a
part of the 8adha >rishna <roup engaged in food%related service businesses" /he association
goes bac# to Guly 1@@3& $hen it studied the nuances of McDonaldFs operations and re(uirements
for the Indian mar#et" *s distribution centres& the company $as responsible for procurement& the
(uality inspection programme& storage& inventory management& deliveries to the restaurants and
data collection& recording and reporting" =alue%added services li#e shredding of lettuce& re%
pac#ing of promotional items continued since then at the centres playing a vital role in
maintaining the integrity of the products throughout the entire Fcold chainF"
:old :hain $as one of the uni(ue concepts of McDonalds supply chain in India& on
$hich it had spent more than si) years to get the system into place" /his system brought about a
veritable revolution& immensely benefiting the farmers at one end and enabling customers at
retail counters get the highest (uality food products& absolutely fresh and at great value" /hrough
its uni(ue cold chain& McDonalds has been able to both cut do$n on its operational $astage& as
$ell as maintain the freshness and nutritional value of ra$ and processed food products" /his has
involved procurement& $arehousing& transportation and retailing of perishable food products& all
under controlled temperatures" /he follo$ing list of suppliers& $ho build up the major supply
chain of McDonalds& reveal ho$ this R:old :hain $or#s and contributes to$ards the efficiency
of McDonalds"
D8-.()B D.)/8 I-,&5*/)+5 (S&;;0)+/ 21 C3++5+!D
21
McDonalds
Dynami) has brought immense benefits to farmers in aramati& Maharashtra by setting up a
net$or# of mil# collection centres e(uipped $ith bul# coolers" 6asy accessibility has enabled
farmers augment their income by finding a ne$ mar#et for surplus mil#" /he factory hasM
.ully automatic international standard processing facility"

:apability to convert mil# into cheese& butterJghee& s#immed mil# po$der& lactose&
casein E $hey protein and humani0ed baby food"
!tringent (uality control measures and continuous 8esearch E Development
.rom farm t$o degrees :elsius in @1 minutes is the first step to (uality" .or e)ample& the 8s
252%crore Dynami) Dairy Industries& located in aramati in 4une district of Maharashtra&
manufactures cheese slices for McDonalds at 11 metric tonnes per month" Dynami) has helped
set up 1- bul# cooling centres throughout the district from $hich it purchases mil#" 6ach cooling
centre& $hich is e(uipped $ith modern measuring and
testing e(uipment and a large cooling tan#& is not more than a fe$ #ilometers a$ay from local
dairy farms" * farmer can deliver mil# even t$ice a day on his bicycle and get a printed receipt
on the spot& $hich also lists the (uality of the mil# supplied by him as per fat content& colour and
solids content"
If the mil# is sub%standard or adulterated& it is rejected on the spot" * batch of mil# can
vary from one litre to 11 litres& or more" 6ach batch is mi)ed in one large stainless steel cooler
and chilled immediately to t$o degrees :elsius to stop bacterial gro$th and preserve freshness"
.rom this point on$ards& until just before the burger is actually served in a McDonalds
restaurant hundreds of #ilometers a$ay& the temperature is never allo$ed to increase" Chen the
refrigerated mil# arrives at the Dynami) plant at aramati& the mil# in every single tan#er is
thoroughly tested and rejected if found sub%standard& adulterated or contaminated" /he
sophisticated testing lab can chec# fat content $ith an accuracy of 1"1 per cent" It can even detect
minute traces of pesticides or antibiotics administered to co$s" /his instant feedbac# and the
rejection of the entire tan#er%load forces farmers to follo$ the best practices in terms of animal
husbandry& use proper feeds& cut do$n on the indiscriminate use of pesticides and animal
medicines and completely stop even the slightest attempts at adulteration"
T/)?.8. A7/)c&0*&/+ (S&;;0)+/ 21 Ic+'+/7 L+**&c+!D
22
McDonalds
Implementation of advanced agricultural practices has enabled /ri#aya to successfully gro$
specialty crops li#e iceberg lettuce& special herbs and many oriental vegetables" .arm
infrastructure featuresM
* speciali0ed nursery $ith a team of agricultural e)perts"
Drip and sprin#ler irrigation in raised farm beds $ith fertili0er mi)ing plant"
4re%cooling room and a large cold room for post harvest handling"
8efrigerated truc# for transportation"
/ri#aya *griculture& a major supplier of iceberg lettuce to McDonaldFs India& is one such
enterprise that is an intrinsic part of the cold chain" 6)posure to better agricultural
management practices and sharing of advanced agricultural technology by McDonaldFs has made
/ri#aya *griculture e)tremely conscious of delivering its products $ith utmost care and (uality"
Initially lettuce could only be gro$n during the $inter months but $ith McDonaldFs e)pertise
in the area of agriculture& /ri#aya .arms in /alegaon& Maharashtra& is no$ able to gro$ this crop
all the year round" McDonaldFs has provided assistance in the selection of high (uality seeds&
e)posed the farms to advanced drip%irrigation technology& and helped develop a refrigerated
transportation system allo$ing a small agri%business in Maharashtra to provide fresh& high%
(uality lettuce to McDonaldFs urban restaurant locations thousands of #ilometers a$ay" 4ost
harvest facilities at /ri#aya include a cold chain consisting of a pre%cooling room to remove field
heat& a large cold room and a refrigerated van for transportation $here the temperature and the
relative humidity of the crop is maintained bet$een 1U : and 4U : and @-H respectively"
=egetables are moved into the pre%cooling room $ithin half an hour of harvesting" /he pre%
cooling room ensures rapid vacuum cooling to 2U : $ithin @1 minutes" /he pac# house& pre%
cooling and cold room are located at the farms itself& ensuring no delay bet$een harvesting& pre%
cooling& pac#aging and cold storage" Cith this cold chain infrastructure in place& /ri#aya
*griculture has also a plan to e)port this high value product to other international mar#ets&
especially to McDonaldFs Middle 6ast and *sia 4acific operations" McDonaldFs e)pertise in
pac#aging& handling and long%distance transportation has helped /ri#aya to do trial shipments to
the <ulf successfully" In addition to e)port& McDonaldFs assistance has enabled /ri#aya
*griculture to supply this crop to a number of star%rated hotels& clubs& flight #itchens and
offshore catering companies all over India"
23
McDonalds
V)5*. P/2c+55+, F22,5 P:*. L*,. (S&;;0)+/ 21 C3)c?+- .-, V+7+*.'0+ /.-7+ 21
;/2,&c*5 )-c0&,)-7 F/&)* P)+5!
* joint venture $ith 9!I Industries Inc"& U!*& McDonaldFs India 4vt" +td" and =ista
4rocessed .oods 4vt" +td"& produces a range of fro0en chic#en and vegetable foods" * $orld
class infrastructure at their plant at /aloja& Maharashtra& hasM
!eparate processing lines for chic#en and vegetable foods"
:apability to produce fro0en foods at temperature as lo$ as %3- Degree :el" to retain
total freshness"
International standards& procedures and support services"
=ista 4rocessed .oods 4vt" +td"& McDonaldFs suppliers for the chic#en and vegetable
range of products& is another important player in this cold chain" /echnical and financial support
e)tended by 9!I Industries Inc"& U!* and McDonalds India 4rivate +imited have enabled =ista
to set up $orld%class infrastructure and support services" /his includes hi%tech refrigeration
plants for manufacture of fro0en food at temperatures as lo$ as % 3-V :" /his is vital to ensure
that the fro0en food retains it freshness for a long time and the Fcold chainF is maintained" /he
fro0en product is immediately moved to cold storage rooms" Cith continued assistance from its
international partners& =ista has installed hi%tech e(uipment for both the chic#en and vegetable
processing lines& $hich reflect the latest food processing technology Pde%boning& blending&
forming& coating& frying and free0ingQ" .or the vegetable range& the latest vegetable mi)ers and
blenders are in operation" *lso& #eeping cultural sensitivities in mind& both processing lines are
absolutely segregated and utmost care is ta#en to ensure that the vegetable products do not mi)
$ith the non%vegetarian products" 'o$& at =ista& a very $ide range of fro0en and nutritious
chic#en and vegetable products is available" 9ngoing 8ED& both locally and in the parent
companies& $or# to$ards innovation in taste& nutritional value and convenience" /hese products&
besides being supplied to McDonaldFs& are also offered to institutions li#e star%rated hotels&
hospitals& project sites& caterers& corporate canteens& schools and colleges& restaurants& food
service establishments and coffee shops" /oday& production of better (uality fro0en foods that are
both nutritious and fresh has made =ista 4rocessed .oods 4vt" +td" a name to rec#on $ithin the
industry"
R.,3.?/)53-. F22,0.-, (D)5*/)'&*)2- C+-*/+5 12/ D+03) .-, M&('.)!
24
McDonalds
*n integral part of the 8adha#rishna <roup& .oodland speciali0es in handling large volumes&
providing the entire range of services including procurement& (uality inspection& storage&
inventory management& deliveries& data collection& recording and reporting" !alient strengths areM
* one%stop shop for all distribution management services"
Dry and cold storage facility to store and transport perishable products at temperatures
upto %22 Degree :el"
6ffective process control for minimum distribution cost"
McDonaldFs local supply net$or#s through 8adha#rishna .oodland& $hich operates
distribution centres PD:sQ for McDonaldFs restaurants in Mumbai and Delhi" /he D:s have
focused all their resources to meet McDonaldFs e)pectation of F:old& :lean& and 9n%/ime
DeliveryF and plays a very vital role in maintaining the integrity of the products throughout the
entire Fcold chainF" 8anging from li(uid products coming from 4unjab to lettuce from 4une& the
D: receives items from different parts of the country" /hese items are stored in rooms $ith
different temperature 0ones and are finally dispatched to the McDonaldFs restaurants on the basis
of their re(uirements" /he company has both cold and dry storage facilities $ith capability to
store products up to %22U : as $ell as delivery truc#s to transport products at temperatures
ranging from room temperature to fro0en state"
A(/)* F22, (S&;;0)+/ 21 02-7 0)1+ UHT M)0? .-, M)0? P/2,&c*5 12/ F/2K+-
D+55+/*5!
*mrit .ood& an I!9 @111 company& manufactures $idely popular brands O
<agan Mil# and 'andan <hee at its factory at <ha0iabad& Uttar 4radesh"
/he factory hasM
!tate%of%the%art fully automatic machinery re(uiring no human contact $ith product& for
total hygiene"
Installed capacity of 5111 ltrsJhr for producing homogeni0ed U;/ PUltra ;igh
/emperatureQ processed mil# and mil# products"
!trict (uality control supported by a fully e(uipped (uality control laboratory"
2-
McDonalds
*ll suppliers adhere to Indian government regulations on food& health and hygiene $hile
continuously maintaining McDonaldFs recogni0ed standards" *s the ingredients move from farms
to processing plants to the restaurant& McDonaldFs Duality Inspection 4rogramme PDI4Q carries
out (uality chec#s at over 21 different points in the :old :hain system" !etting up of the :old
:hain has also enabled it to cut do$n on operational $astage
;a0ard *nalysis :ritical :ontrol 4oint P;*::4Q is a systematic approach to food safety
that emphasi0es prevention $ithin its suppliersF facility and restaurants rather than detection
through inspection of illness or presence of microbiological data" ased on ;*::4 guidelines&
control points and critical control points for all McDonaldFs major food processing plants and
restaurants in India have been identified" /he limits have been established for those follo$ed by
monitoring& recording and correcting any deviations" /he ;*::4 verification is done at least
t$ice in a year and certified"
/he relationship bet$een McDonaldFs and its Indian suppliers is mutually beneficial" *s
McDonaldFs e)pands in India& the supplier gets the opportunity to e)pand his business& have
access to the latest in food technology& e)posure to advanced agricultural practices and the
ability to gro$ or to e)port" /here are many cases of local suppliers operating out of small to$ns
$ho have benefited from their association $ith McDonaldFs India
MCDONALDS MARKETING MIA (E PS!
25
McDonalds
*fter segmenting the mar#et& finding the target segment and positioning itself& each
company needs to come up $ith an offer" /he - 4s used by McDonalds areM
1" 4roduct
2" 4lace
3" 4rice
4" 4romotion
-" 4eople
4roductM ;o$ should the company design& manufacture the product so that it enhances the
customer e)perienceT
4roduct is the physical product or service offered to the consumer" 4roduct includes
certain aspects such as pac#aging& guarantee& loo#s etc" /his includes both the tangible and the
non%tangible aspects of the product and service"
2A
McDonalds
McDonalds has intentionally #ept its product depth and product $idth limited"
McDonalds studied the behaviour of the Indian customer and provided a totally different menu
as compared to its International offering" It dropped ham& beef and mutton burgers from the
menu" McDonaldFs success $orld$ide has been attributed to the RN/hin# <lobal& *ct +ocal and
!ell li#e a 8etailerS philosophy" McDonalds follo$ed this international mantra $hile opening
doors to the Indian subcontinent" Cith respect to the cultural and traditional sentiments& not only
did McDonalds not serve its most popular product /he I<M*: Pa beef burgerQ but also
developed an egg%less mayonnaise for the first time in the $orld$ide system"
/o suit the Indian palette& the Mc*loo /i##iW burger& =eg" 4i00a Mc4uffW and :hic#en
Mc<rillW burger $ere among other offerings that $ere formulated and introduced using spices
favored by Indians" .urthermore& each restaurant #itchen $as designed to maintain separate
=egetarian and 'on%=egetarian food counters"
R+.52-5 12/ )-*/2,&c)-7 *3+ ;/2,&c*5
eef $hich $as a taboo in the Indian mar#et $as planned to replace by filling of *loo
/i##i to match up $ith the Indian culture"
!alad sand$ich $as introduced targeting the people $ho are more conscious about
health"
/he introduction of jain salad in the outlet #eeping the jain people rituals of not eating
ginger &onion& potatoes etc"
!eeing to the Indian mentality of having $heat chapattis led to the idea to introduce
paneer salsa $rap and chic#en Me)ican $rap"
.ilet%o%fish $as introduced #eeping in mind the demand of the sea food lovers having no
competitors in the segment before"
P0.c+D Chere should be the product be available and the role of distribution channelsT
2?
McDonalds
/he place mainly consists of the distribution channels" It is important so that the product is
available to the customer at the right place& at the right time and in the right (uantity" 'early -1H
of U"!"* is $ithin a 3 minute drive from a McDonalds outlet"
/here is a certain degree of fun and happiness that a customer feels each time he dines at
McDonalds" /here are certain value propositions that McDonalds offer to its customers based on
their needs" McDonalds offers hygienic environment& good ambience and great service" 'o$
McDonalds have also started giving internet facility at their centres and they have been playing
music through radio instead of the normal music" /here are certain dedicated areas for children
$here they can play $hile their parents can have some (uality time together"
P/)c+D Chat should be the pricing strategyT

4ricing includes the list price& the discount functions available& the financing options available
etc" It should also ta#e into the consideration the probable reaction from the competitor to the
pricing strategy" /his is the most important part of the mar#eting mi) as this is the only part
$hich generates revenue" *ll the other three are e)penses incurred" /he price must ta#e into
consideration the appropriate demand%supply e(uation"
McDonalds has certain value pricing and bundling strategies such as happy meal& combo meal&
family meal etc to increase overall sales volumes"
B/.-,+, A112/,.')0)*8M ;aving established the image of
comfort and familiarity& it no$ $as
2@
McDonalds
time to add ne$ people to the fold" /he Indian consumers continued to perceive McDonalds as
an e)pensive eating out option" /he challenge $as to overcome this perception and be accepted
as an affordable brand" Chile the patented products li#e Mc=eggieW and Mc:hic#enW
continued to cater to the patrons& the company needed to broaden the audience base to further
entrench into the mar#et"
McDonalds found success in its strategy of randed *ffordability and
introduced the R;appy 4rice Menu of 8s"21J%" 6ngaging and Memorable
campaigns $ere created to establish the randed *ffordability
communication %/he Rahanas& the yesteryears prices& or Rbees mein full
dhamalX
P/2(2*)2-D C3.* )5 *3+ 5&)*.'0+ 5*/.*+78 .-, c3.--+05 12/ ;/2(2*)2- 21 *3+ ;/2,&c*L
/he various promotion channels being used by McDonalds to effectively communicate
the product information are given above" * clear understanding of the customer value helps
decide $hether the cost of promotion is $orth spending"
31
McDonalds
/here are three main objectives of advertising for McDonalds are to (.?+ ;+2;0+
.6./+ 21 .- )*+(& 1++0 ;25)*):+ .'2&* )* and /+(+('+/ )*" /he /)73* (+55.7+ has to be
communicated to the /)73* .&,)+-c+ through the /)73* (+,)." McDonalds does its promotion
through television& hoardings and bus shelters" /hey use print ads and the television programmes
are also an important mar#eting medium for promotion"
!ome of the most famous mar#eting campaigns of McDonalds areM
N2ou Deserve a brea# today& so get up and get a$ay% /o McDonaldsS
N*ap #e 0amane mein& baap #e 0amane #e daamS"
N.ood& .ol#s& and .unS
NIm loving itS"
F.()0)./)*8 '/++,5 c2(12/*D
/he first step for the brand $as to establish itself as a familiar&
comfortable place" /a#ing a cue from the Indian family values& the
year 2111 sa$ the first ever McDonalds ad aired in the country" *
child& $ho is unable to recite a poem and suffers stage fright& but $hen
he enters McDonalds& he easily recites it $hen in the comfortable
familiar environment of McDonalds"
Cor#ing on the insight O similarly $hen his family moves into a ne$ place& the child
misses all that has al$ays been so familiar and dear" ;e then has the comfort of something that is
dear and familiar to bring a smile to his face" McDonalds $as successful in creating an image of
a $arm and comfortable ambience through its
ads" RMcDonalds Mein ;ai >uch aatM Ma#ing McDonalds the consumers favorite place and
$ay to eat" Chile #ids and families $ere #ey& it $as also important to tal# to the generation that
had not gro$n up on McDonalds burgers and fries" *n adult $ho $or#s $ith logic and
31
McDonalds
reasoning $ould need a reason tempting enough" *nd $hat better $ay to tal# to them than tal#
about McDonalds core competence O foodX
6ven in DreamsM
McDonalds reali0ed that the $ay to dra$ more consumers $ould be to increase the
visibility of the brand and its products" /he more a person sa$ food& the greater his urge $ould
be to try it out" /he company came up $ith its ne)t round of campaign to address and reflect this"
/he campaign sho$ed different people dreaming about McDonalds" It depicted ho$ the
consumers $ere totally involved $ith McDonalds and the food" 'e$ product stories delivered
in a memorable and engaging approach" It $as imperative for the success of the brand to be
RIndiani0ed O to continuously spea# to consumers in their Rlanguage $ithout ta#ing a$ay from
its core *merican parentage" R.rom tears to smiles % campaigns $ere produced to introduce
ne$& scrumptious products"
L+* 72 *3+ c3)0, 6)*3)- 82&D
/he general brand perception of McDonalds in India $as that of a place for #ids" Chile
the campaigns had $or#ed in the past& targeting #ids& McDonalds recogni0ed the fact that it
could not al$ays depend on the #ids niche" Chen #ids move up the consumption chain& there is
a possibility of losing out on consumers" Moreover& the family outings $ith children only happen
over the $ee#ends and holidays" It $as imperative to rope in adults $ho $ould patroni0e the
brand over the $ee#ends" :onse(uently& the ne)t series of campaigns $ere targeted to drive in
adult traffic to brea# a$ay from the perception" /he ad depicted a father being invited to a
birthday party at McDonalds" ;e is not at ease $ith the idea of visiting McDonalds since he
perceives it as a #ids place" ;is child reminds him of the Mc:urry 4anW& .ilet%o%.ishW that he
$ould be able to relish at the birthday party" /he food boosts the father to go to the party& $here
to his astonishment is his boss party" /he ad asserted that people celebrate birthdays and
occasions at places they are comfortable inX
P+2;0+D ;o$ to converge the benefits of internal and e)ternal mar#etingT
McDonalds understands the value of both its employees and its customers" It
understands the fact that a happy employee can serve $ell and result in a happy customer"
32
McDonalds
McDonald continuously does I-*+/-.0 M./?+*)-7. /his is important as it must precede e)ternal
mar#eting" /his includes hiring& training and motivating able employees" /his $ay they serve
customers $ell and the final result is a happy customer"
/he level of importance has changed to be in the follo$ing order Pthe more important people are
at the topQM
1" :ustomers
2" .ront line employees
3" Middle level managers
4" .ront line managers
/he punch line NI( 02:)-7 )*S is an attempt to sho$ that the employees are loving their $or# at
McDonalds and $ill love to serve the customers"
MC EMPLOYEES
E(;028++ '+-+1)*5
M: D9'*+D! provides you $ith many opportunities to tal# to your management on
any topic related to your employmentJ$or#" /o begin $ith $e follo$ an Nopen doorS policy&
33
McDonalds
$hich means that all team members at M: D9'*+D! are approachable at any time" :re$
meetings are held every month in your restaurant $here all the store related issues are discussed"
esides this you $ill also have rap session and meet - $here you can e)press your vie$
candidly"
RAP SESSIOND-
8ap session are small informal discuss bet$een cre$ and management for the purpose of
discussing ideas& suggestions and problems" /hese sessions $ill be held about once every three
months or $henever needed by the store manager or a member of the management team" 8ap
sessions are an opportunity for the cre$ to ma#e their vie$s #no$n to the company" 2ou $ill be
paid for attending a rap session"
O;)-)2- 5&/:+8D-
*bout once a year $e $ill as# all employees to complete a confidential
(uestionnaire relating to their $or# and the operation of the store& the ans$ers $ill help us to
improve our management of the restaurant and conditions of employment"
O;+- ,22/ ;20)c8D-
!hould an employee have (uestions about the contents of their handboo# or
have any basis for concern about any $or# conditions the management teams office door is
al$ays open for private discussion" 6mployees should be encouraged to use this Nopen door
policyS $henever they $ish" +i#e$ise& operationsJhuman resources manager encourage you to
use the open door policy if you have a concern unresolved by your immediate supervisor"
F.c)0)*)+5

C/+6 /22(
/his room is provided for the employee for recreation and rest during the brea# time" /he
employee can study& listen to music& and get trained in this room"
34
McDonalds
B/+.?5
It is not easy to maintain (uality& service& and cleanliness" It ta#e hard $or# and hustle" /o #eep
energy level high& all the cre$ member $or#ing above five consecutive hour are eligible for an
unpaid brea# of an hour"
E(;028++ M+.0
9ne of the best things about $or#ing for McDonalds is for food" 6mployees can enjoy (uality
nutritious food at $orld standard hygiene levels" It is free to managers and cre$" *ll the meals
consumed must be recorded and consumed in the restaurants itself"
L2c?+/ F.c)0)*8
+oc#ers are available for the employees use at the restaurants for #eeping the personal
belongings in a safe and secure place during the shift"
O*3+/ F.c)0)*)+5
In addition to the above facilities the employee also enjoys $ith the team member during the
yearly store outing and various inter%store activities arranged system%$ise and patch$ise" /hese
activities are fun and provide opportunity to have a good time and #no$ fello$ employees better"
E(;028++ /+c27-)*)2-
I-c+-*):+5
*ll the cre$ at McDonalds have the opportunity to get McDonalds branded
merchandise" 6ach restaurant is allotted NMahabuc#sS every month based on monthly store
allocation and various inter%store competitions" Mahabuc#s is a cre$ incentive programme $here
the Mahabuc#s coupons can be redeemed for the set of utility items available for that year" /he
3-
McDonalds
employee have the opportunity to earn the Mahabuc#s by becoming face of the month& face of
the (uarter& various re$ards organi0ed by the stores and through various inter store competitions"
E(;028++ R+1+//.0 P/27/.((+
/he employee can refer any friend $ho is interested in $or#ing at McDonalds for a cre$
members job at any of the McDonalds store" /he employee receives an incentive after the
referred cre$ member completes 3 months in the organi0ation"
G/.,&.*+ C./++/ A,:.-c+(+-* P/27/.((+
McDonalds believe that investing in the people is one of the best $ays to build the brand
and assure customer loyalty" :re$ Member $ho completes their graduation are recogni0ed for
their academic gro$th by putting them on training programme $hich help them to become
manager faster"
R+*)/+(+-* B+-+1)*5
E(;028++ ;/2:),+-* 1&-,
*ll the employee are eligible for the provident fund scheme as per the companys rule"
4rovident fund is a retire benefit provided to every employee of McDonalds" 6very employee
contribute 2M of his basic salary to hisJher 4. account" /here is an e(ual contribution by the
35
McDonalds
employer" ;o$ever ?"33H of the employers contribution is deposited to the 6mployees
4ension .und and the rest goes to the 4rovident .und"
E(;028++ S*.*+ I-5&/.-c+
*ll the cre$ member are eligible for the 6mployee !tate Insurance as per the 6!I rule"
/his benefit is provided to the employee for free medical treatment in case of sic#ness&
maternity& and employment injury" /he employee contribute 1"A-H of his gross salary $here as
the employer contributes 4"A-H
B2-&5
Depending upon the la$ applicable at the relevant time the employee $ill receive an
amount of ?"33Hof the basic salary earned during the financial year"
G/.*&)*8
*ll the full time employee $ho have completed - years of continuous employment $ith
the company are eligible for gratuity" /he employee $ill receive an amount of 1- days basic
salary for every $ee# $or#ed" /he amount is given at the time of separation or retirement from
the company"
3A
McDonalds
MCDONALD S IN SERVICE INDUSTRY
THE MCDONALDS EAPERIENCE
Mar#eting in a services industry is becoming an increasingly comple) challenge" /he
paradigms of service mar#eting demand a passionate understanding of customer e)pectations
and perceptions& and lin#ing them to product design E delivery as $ell as operational planning"
/his is $here McDonalds has e)celled due to its ability to successfully integrate the customers
perspective in its products and operations in a comprehensive manner" /he revamped menu in
India is an e)ample of McDonalds strategy of integrating the customers perspective in its
products" *nd& the operational integration is evident from McDonalds emphasis on its suppliers
as its customers as $ell as its treatment of its consumers as co%producers of services"
/he ultimate aim of !ervice Mar#eting is not just to become a !ervice +eader but to create a
!ervice rand" /he !ervice Delivery 4rocess is the #ey to achieving this aim of !ervice
Mar#eting"
3?
Core Product Supplementary
Process
Service Delivery
Process
McDonalds
During the !ervice Delivery 4rocess& each moment of interaction bet$een the firm and
the customer& called NM2(+-*5 21 T/&*3S& helps understand the opportunities that a firm has to
$in or lose the customer" .or e)ample& these Nmoments of truthS are created for McDonalds
every time the guard at the McDonalds outlet meets the customer& every time an attendant ta#es
do$n the order from the customer $aiting in the (ueue& every time the cashier interacts $ith the
customer& every time the attendant helps the customer guided the customer to$ards the table&
every time the attendant cleans the tables etc"
tab
Managing these Nmoments of truthS is a great challenge in !ervice Mar#eting especially
due to customers involvement as a co%producer of services Pe"g" McDonalds self%service
concept $herein the customer not only collects the order but also cleans the table after
consuming the foodQ" ;o$ever& McDonaldFs has been able to create a great e)perience for its
customers by understanding the nature of the entire !ervice Delivery
4rocess and the various stages in the process that are e)posed to the customers"
/ransparency in the processes at its outlet has helped McDonalds bring the bac# office in its
3@
Customer
Service Provider Service Delivery Points
Moments Of Truth The Service Encounter
McDonalds
outlet at the front so that the customer is able to #no$ the operations and provide feedbac# on
service design improvements"
Internal :ustomer .ocus is e(ually important as 6)ternal :ustomer 9rientation in order
to $in these Nmoments of truthS" McDonalds focus on its 4eople and their service delivery
methods therefore plays a very important role in creating a successful !ervice rand" /he (uality
and the consistency of the service delivered by McDonalds have been greatly enhanced by the
combination of the factors mentioned above" /his has helped McDonalds become !ervice
+eader and a successful !ervice rand" /his is evident from the fact that very fe$ of its
customers opt for ta#e%home parcels or home deliveries $hile most of them prefer to eat at the
outlet and enjoy the McDonalds e)perience"
41
McDonalds
IMPORTANCE OF PLC IN MCDONALDS
/he re(uirements of customers change over time and thus the product offering has to be
changed accordingly" Chat is the fashion today may be out of mar#et $ithin fe$ $ee#s" /hus
continuous innovation is re(uired"

/o counter these changes McDonalds has continuously introduced ne$ products and has phased
out the old ones $hich $ere at the decline stage of their 4+:" /he introduction is timed such that
the ne$ product does not cannibali0e the product already in the maturity or gro$th stage" /hus
the secret lies in getting profits $ith different products in the different stages of the 4+:"
A ;+/1+c* +B.(;0+ 21 /+:)*.0)5)-7 . ;/2,&c* )- ,+c0)-+ ;3.5+
41
McDonalds

/he F/+-c3 F/)+5 have been an important part of the McDonalds menu $orld$ide" ut
no$ it $as in the stage of decline and $as actually not generating proper return" In an attempt to
revitali0e it& a ne$ variant $as introduced namely S3.?+ S3.?+ F/)+5. /his is being served $ith
chatpata spice mi) $hich has resulted in increase in the sales of .rench .ries and has elevated it
from to the decline stage" /his is used to delay the decline of a $ell established product $hich
has the potential of generating further revenue"
42
McDonalds
ANALYSIS
C2(;+*)*2/5 A-.085)5
McDonalds has been a leading fast%foods outlet in =ile 4arle" ut the outlet understudy has
other competitors eating a$ay into its mar#et share" In addition to its traditional rivalsY>.:&
Dominos& 4i00a ;utYthe firm encounters ne$ challenges" Gumbo >ing competes using a bac#%
to%basics approach of (uic#ly serving up burgers for time%pressed consumers" 9n the higher end&
the >.: has become potent competitor in the (uic# service field& ta#ing a$ay customers from
McDonalds" 4erhaps in the ne$ environment& fast& convenient service is no longer enough to
distinguish the firm" *t this time& a ne$ critical success factor may be emergingM the need to
create a rich& satisfying e)perience for consumers" /his brings us to 5+/:)c+ .-, +B;+/)+-c+
'.5+, c2(;+*)*)2- $hich McDonalds can use for competitive advantage against Gumbo >ing"
>eeping in mind the demographics of the area& McDonalds has Ci%.i enabled the outlet to cater
to the student community" It is for this overall N.ood& .un E .ol#sS e)perience that customers
pay a premium over the other competitors"
C2(;+*)*)2- .052 /+,&c+5 ;/2,&c* 0)1+c8c0+N )-,&c)-7 1)/(5 *2 /+:)5+ *3+)/ ;/2,&c*5
;2/*120)25 and to revisit their product mar#et to understand changing needs& e)pectations and
perception of different mar#et segments" /he ne$ Mcrea#fast $ould be introduced bet$een 5
to 11 am as a pilot project" /his $ould open up a $hole ne$ revenue stream for McDonalds by
tapping into the student and $or#ing population by providing a healthy and $holesome
brea#fast" /his sho$s ho$ demographic shift can affect the demand for products and services"
McDonalds has anticipated these changes to maintain its competitive edge"
43
McDonalds
T62 D)(+-5)2-.0 P+/c+;*&.0 M.;;)-7
44
McDonalds
SCOT A-.085)5
T3+ R2., A3+.,
Entry to Tier 2 and Tier 3 cities /he main target customer for McDonalds is the ne$
urban Indian family" Cith the customer demographics constantly changing and tectonic
social and cultural shifts being observed in /ier 2 and /ier 3 cities due to globali0ation&
the company is no$ e)panding to /ier 2 cities li#e 4une and Gaipur"
Rolling out McBreakfast across all outlets In India& the company has recently
launched its entry into the brea#fast food category" /his is no$ launched on a pilot basis
on select stores" In Mumbai& it available at the =ile 4arle outlet" /he company vie$s this
category as a #ey gro$th driver in future"
4-
McDonalds
EB3)')*5
1. McDonalds Indian Menu
=egetarian 'on =egetarian
Mc=eggie :hic#en Maharaja Mac
Mc*loo/i##i Mc:hic#en urger
4aneer !alsa Crap :hic#en 'uggets
!alad !and$ich Crap :hic#en Me)ican
4otato Cedges .illet%9%.ish
4i00a Mc4uff
Survey uestionnaire
D" Chich is your favorite product at McDonaldsT
D" Is the product line in McDonalds ade(uateT
45
McDonalds
D" Chat is the main problem you faced at McDonaldsT
D" Chich area do you thin# needs the most improvementT
4A
McDonalds
D" Chat is the first thing that stri#es your mind about McDonaldsT
K),5 ;0.8)-7 .* McD2-.0,5 V)0+ P./0+
4?
McDonalds
4@
McDonalds
THE NEC BREAKFAST MENU STARTED AT SELECT STORES IN MUMBAI.
-1
McDonalds
/he usiness 'eed for McDelivery E #ios#
McDelivery and >ios#s are t$o integral factors in the McDonalds
gro$th model"



-1
McDonalds
McD6+I=682
NIf you cant come to McDonalds& McDonalds $ill come to you"S
*fter nearly eight years in India& McDonaldFs finally started coming to your doorstep" /he #ey
idea is convenience" Ce are a (uic# service restaurant available at high%traffic locations" ut
there is a large number of people $ho find it difficult to travel" /he #ey is to deliver hot and
fresh food"
Chy McDelivery is an Important usiness modelT
McDelivery is one of the Important usiness models of rand e)tensions "
McDelivery contributes to around A"- H of /otal sales"
/he #ey idea is :onvenience because McDonalds believe in being accessible"
y offering home delivery $e can reach out to the :ustomers and increase our
penetration "
MD! !9I contribution to the store system $ise is 1-"31H"
ased on the Data it is presumed that in the :oming days the contribution of McDelivery
$ill be on increasing trend"
:urrent number of MD! !tores O 35
4lan by end of 211@ % 45 MD! stores
*nalysis sho$s that the !ales /rend is continuously on increasing /rend"
In 211? 8egridding phase $as done because of $hich /:s for 211? Cere impacted
compared to 211A but no$ again there is an Increasing trend"
In 211A O 2A MD!
In 211? O 34 MD!
In 211@ 4lan O 45 MD! !tores
In 211@ till dateM 35 stores
In 211A sales ended O 8s ?&31&@?&13?J%
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McDonalds
In 211? !ales ended O 8s"@&1-&?3&A-4J%
!9I :ontribution .igures positive"
Delivery !ales E <: /rend from year 2114%211?
-3
2008 2009 plan Feb YT
MDS GM% 5667% 576% 559%
!a" #$st% 1299% 127% 121%
%utsi&e Ser'ices% 1669% 131% 154%
P(#% 1461% 186% 166%
S%)% 1295% 128% 153%
McDonalds
!trategy for 211@
-4
McDonalds
McD9'*+Ds >I9!>


*t McDonalds $e have made effort to cover every possible area for serving to the :ustomer
needs" *fter serving the meals $e have made >ios# as a means of fulfilling the custom of
something s$eet follo$ing the main course"
--
McDonalds
Chy >I9!> is an Important usiness modelT
>ios# is one of the important model of rand 6)tensions"
>ios# is a usiness model $hich re(uires comparatively less initial investment"
*lso it helps us to increase the number of <uest :ounts and !ales"
It is a $ay of e)tending our rand $ith overall less Initial and 9perating investments"
>ios#s helps us to give vaired choices to our :ustomers
>ios#s contrbute around 3"AH of our /otal !ales"
>ios# provides 23H of positive !9I"
:urrently $e have 2- >ios#s and plan is to reach 2? by Dec 211@"
>ios#s <: E !ales /rend
!ales :ontribution from 'e$ usiness Models >io
-5
McDonalds
*s per the *nanlysis the /rend of !ales of >ios# seems to be
9n increasing terms"
In 211A O 14 >ios#s
In 211? O 22 >ios#s
In 211@ P4lanQ%2? >ios#s
In 211@P/ill datQ%2- >ios#s
/he :hart belo$ reflects the >I9!> as a strength for the system"
-A
2006 2007 2008 2009 *+D
,i$s- GM% 5410% 5514% 5627% 5883%
S.ste/ GM% 5330% 5450% 5590% 5495%
,i$s- P(#% 4106% 4453% 4243% 4416%
S.ste/ P(#% 2321% 2390% 2385%
,i$s- S%)% 2017% 2517% 2076% 2711%
S.ste/ S%)% 093% 059% 0223%
McDonalds
:9':+U!I9'
*bout -1 restaurants $ill be added to the 4A already in the India according to =i#ram
a#shi& managing director of :onnaught 4la0a 8estaurants& $hich holds the franchise for 'e$
Delhi and the north of the country"ZMcDonaldFs considers :hina and India to be vital for
e)pansion and $ill continue to invest more and more in both these countries&Z Mr a#shi told
loomberg 'e$s" ;e said the e)pansion is e)pected to cost bet$een 11bn and 13bn rupees
P[135%1A5m, I211%2A-mQ" Cestern India $ill get fifteen ne$ outlets over the ne)t 12 months at
a cost of 511m rupees& according to *mit Gatia& managing director of regional franchise holder
;ardcastle restaurants"
I-,).- 7/26*3
McDonaldFs has invested about Abn rupees in India since it entered the mar#et in 1@@5
and reported gro$th of about 41H" India has a population of over 1 billion and an emerging and
affluent middle class" /he food chain has tailored a number of its products to the Indian mar#et&
including the 4aneer !alsa Crap& Mc*loo /i##i and the mutton speciality for a country $hich
does not eat beef& the :hic#en Maharaja Mac" ZIn the ne)t t$o years& $e should finally have a
menu that is entirely relevant to the Indian household&Z Mr a#shi said"
.rom the above information it is very clear that Mc Donalds is aggressive about its Indian
operations and this fast food chain is here to stay feeding millions of Indians the Gai ho $ay thin#
global act local"
-?