MARKETING STRATEGIES

OF
MCDONALD ’ S
VS
KFC
 PRESENTED BY:-
•
• CHANDAN SINHA- BBA 4598/08
• KUMAR RAVI- BBA 45103/08
• ROHIT SINGH- BBA 45108/08
• ANIL KR AGARWAL-BBA 4543/08
McDonald ’ s
INDIA
 Mc Donald's in India.
• McDonald’s entered India in 1996.
• McDonald’s India has a joint venture
with Connaught Plaza Restaurants
and Hard Castle Restaurants.
• Connaught Plaza Restaurants
manages operations in North India
whereas Hard Castle Restaurants
operates restaurants in Western
India.
• Today it has 169 Restaurants across
 MARKET PERFORMANCE
• Estimated CAGR of 40%.
•
• Market share of 18% in north India.
•
• Total revenue of 2007-08 was 740.2
million $ in India.
•
 BUSINESS MODEL . CONTD

• Franchise Model – Only 15% of the

total number of restaurants are
owned by the Company. The
remaining 85% is operated by
franchises.
• 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
 BUSINESS MODEL . CONTD

• Act like a retailer and think like a

brand – McDonald’s focuses not
only on delivering sales for the
immediate present, but also
protecting its long term brand
reputation.

 McDonalds
Marketing Mix
(4 P’S).
 PRODUCT.
• The strategy for product is to
provide entry level product so
that the customer can try new
items and graduate to higher
rungs.
• McDonalds has intentionally kept
its product depth and product
width limited.
• Designed the product after deeply
studying the Indian customers.
• For Indian menu ham, beef and
mutton burgers were removed.
• McDonalds continuously
innovates its products
according to the changing
PRICE.


• This is the most important part of the marketing

mix for McDonald’s as this is the only part
which generates revenue. All the other three
are expenses incurred.
• McDonald’s came up with a very catchy punch
line “Aap ke zamane mein ,baap ke
zamane ke daam”. This was to attract the
middle and lower class consumers and the
effect can clearly be seen in the consumer base
McDonalds has now.
• McDonalds has certain value pricing and
bundling strategies such as happy meal,
combo meal, family meal etc to increase
overall sales volumes.
• Competitive pricing.
 Pricing Strategy
• Value Ladder Strategy.
• In March 2004 introduced “AAP KE
ZAMANE ME BAAP KE ZAMANE KE
DAAM”. In this section prices
ranged from 20 to 80, which
resulted high increase in sales
volume.
• Started product bundling.
• Prices are stable because of well
established low cost chain.
PLACE.


• The place mainly consists of the

distribution channels. It is
important so that the product
is available to the customer at
the right place, at the right
time and in the right
quantity.
• The structure is simple for
McDonald's. In India the
outlets in north and east India
are run by Connaught Plaza
rest pvt ltd and outlets in west
and south India are run by
Hard Castle Rest. Pvt ltd.
• 169 outlets all over India.
McDonald’s a Locally Owned
Company.
PROMOTION.


•
• The idea of their promotion is to promote
McDonald’s as a global image.
• “Brand globally, advertise locally” is the
McDonald’s promotional strategy.
• McDonald’s does its promotion through television,
hoardings and bus shelters. They use print ads
and the television programmes are also an
important marketing medium for promotion.
• Intensive advertising aimed at children.
•
 Some of the most famous marketing
campaigns of McDonald’s are:
1. “You Deserve a break today, so get up and get
away- To McDonald’s”
2.
3. “Aap ke zamane mein ,baap ke zamane ke
daam”.
4.
5. “Food, Folks, and Fun”
6.
7. “I’m loving it”. It is one of the most successful ad
campaigns launched in 2003.
 

•
 CO -BRANDING
• McDonald's has major tie up’s with
various companies as their co-
branding strategy.
• Coca cola-
•
• Brabie-
•
• Hot wheels-
•
• Disney-pixar-
 SWOT ANALYSIS.
STERNGTHS.


• Strong brand.
• Customer intimacy.
• Product innovation.
• Supplier Integration.
 SWOT ANALYSIS . CONTD

WEAKNESS.


•
• Low width and depth of the product.
 SWOT ANALYSIS . CONTD

OPPORTUNITY.


• Expand into Tier-2 and Tier-3 cities.

• Entry into breakfast categories.
 THE ROAD AHEAD.
• Entry to Tier 2 and Tier 3 cities – The main
target customer for McDonald’s is the new
urban Indian family. With the customer
demographics constantly changing and
tectonic social and cultural shifts being
observed in Tier 2 and Tier 3 cities due to
globalization, the company is now expanding
to Tier 2 cities like Pune and Jaipur.
 

• Rolling out McBreakfast across all outlets

– In India, the company has recently launched
its entry into the breakfast food category. This
is now launched on a pilot basis on select
stores. In Mumbai, it available at the Vile
Parle outlet. The company views this category
as a key growth driver in future.
 SWOT ANALYSIS . CONTD

THREATS.


• Changing customer lifestyle and

taste.
•
• Increased competition from local fast
food outlets.
KENTUCKY FRIED
CHICKEN
KFC
 ABOUT KFC
• KFC Corporation, or 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.
•
• KFC primarily sells chicken in form of
pieces, wraps, salads and sandwiches.
While its primary focus is fried
chicken, KFC also offers a line of
roasted chicken products, side dishes
and desserts.
 KFC IN INDIA.
• KFC(KENTUCKY FRIED CHICKEN) entered India in
1995.
• Because of KFC not adhering with the Prevention
of Food Adulteration Act, 1954 and certain
other mistakes it had to leave India.
• In 2003 it again came back with revised
strategies and willingness to improve its earlier
mistakes.
• Since then KFC has a strong presence in 11 cities
of India with around 50 stores.
 KFC
MARKETING MIX
4 P’s
 PRODUCT.
• KFC's specialty is fried chicken
served in various forms. KFC's
primary product is pressure-fried
pieces of chicken made with the
original recipe.
• Products are generated based on the
geographical locations.
• In KFC feedback is taken from the
customer in order to know the
customer demands and then
improvements are made in
products.
• KFC focuses on pure and fresh food
in order to create a distinct and
clear position in the minds of
 PRICE.
• They adopt the cost base price strategy. Pricing of
the product includes the govt. tax and excise
duty and then comes the final stage of
determine the price of their product.
• KFC globally enters the market using market
skimming. Their products are priced high and
target the middle to upper class people
• Compared to its competitors, KFC has a monopoly
in fried chickens. Thus KFC has an upper hand
in pricing their fried chickens.
 Demographic factors
• Age: Generally there is no age limit focus by
the KFC. The target and focus is on each
and every individual in a society. KFC finds
its largest demographic in the young of
any society.
• Gender: Both male and females are focused
by KFC, gender does not play any role
here.
• Household Size: This plays a vital role in the
demographic factor of the KFC. Generally
they target whole families rather than
single persons. This being the reason for
their Family Meals which are basically
bundled items served at a nominally
 Economic Factors
• Income: Income is an important key
factor for KFC. This factor decides
which class is to be targeted. In the
early rise of KFC they focused on
the upper class but slowly are
introducing economy meals that
attract the lower to middle classes.
• Consumption Behavior:  It estimates
the behavior of people, their liking
and disliking towards the pricing of
the products.

 PLACE.
 TARGET AREAS
• “Free home Delivery” strategy –
They provide free home delivery to
offices & homes (select countries).
• Accessibility – Resulting in several
outlets to cater to the needs of
people in & around the city.
• Hectic lifestyle – Due to the hectic
lifestyle of office goings individuals
the fast food concept saves time of
preparing food and gives the
customer a full meal quickly.
• Economically convenient – The
pricing appeals to the many classes
of a society.
• CHANNELS-1st level channel ie ;
 Manufacturer---Retailer---
 PLACE CONTD

 Location
– Hectic lifestyle of individuals – giving them
more time at work and less stress about
waiting for food.
– Commercialization of urban and sub-urban
markets leading to more mid-sector
people that find high-end eating joints
very to expensive.
– Mid-sector people are always looking for
change which KFC provides in their range
of fast food.
– Quality conscious – people in urban areas
are more conscious about the quality of
food than rural areas.
 PLACE CONTD

 Placement of
outlets
 Due to KFC placing
itself close to
schools, colleges,
cinemas and markets
which are mostly
populated by the
young and those who
are in a hurry, KFC
enjoys a large
number of footfalls
everyday. In addition,
 PROMOTION.
• At KFC, Promotion is the main tool to bring all
chicken lovers attention towards its delicious
one-of-a-kind product, the Fried Chicken.
• KFC and its new company jingle, “finger lickin
good” is a frequent announcement on
televisions, billboards, flyers and radio.
• The company anthem “finger linkin good” is just a
wake up call to the consumer to remind them
how good they felt the last time they ate KFC
chicken.
• Sponsorship is another tool to strengthen an
organizations image. KFC is currently the
sponsor of the West Indies Cricket Team.
• All KFC outlets offer its customers with various
 SWOT ANALYSIS.
STRENGTHS.


• Strong presence over competitors

with its primary product fried
chicken.
• High global brand image.
 SWOT ANALYSIS . CONTD

WEAKNESS.


• Lesser number of outlets.

• Little or no coverage in Tier-II cities.
 SWOT ANALYSIS . CONTD

OPPORTUNITY.


• Opening more outlets in the four

metros to increase their presence.
• Venturing in potential Tier-II cities.
•
•
 SWOT ANALYSIS . CONTD

THREATS.


• McDonald’s is the biggest threat for KFC, because

of its continuous growth in Indian market.
• Tough competition from the local non-vegetarians
dishes prepared by the local restaurants.
• KFC’c previous brand image.
 CONCLUSION
In India fast food market is strongly


dominated by these 2 brands. But when

it comes to comparing these two brands
the following study brings us to a
conclusion that as far as market
presence and brand value is concerned
McDonald's has definitely proved a
point for themselves. But KFC who re
entered in 2003 has shown a rapid
progress and no wonder if in the
coming years KFC overtakes
McDonald’s in the Indian market share.
Time will be the evidence for this, but
for now it’s Ronald McDonald who is