CHAPTER 1

INTRODUCTION
INTRODUCTION

McDonald's Corporation

McDonald's Corporation is the world's largest chain of hamburger fast food

restaurants, serving more than 68 million customers daily. In addition to its
signature restaurant chain, McDonald’s Corporation held a minority interest
in Pret A Manger until 2008, was a major investor in the Chipotle Mexican
Grill until 2006, and owned the restaurant chain Boston Market until 2007.

A McDonald's restaurant is operated by a franchisee, an affiliate, or the

corporation itself. The corporation's revenues come from the rent, royalties and
fees paid by the franchisees, as well as sales in company-operated restaurants.
McDonald's revenues grew 27% over the three years ending in 2007 to $22.8
billion, and 9% growth in operating income to $3.9 billion. McDonald's primarily
sells hamburgers, cheeseburgers, chicken products, french
fries, breakfast items, soft drinks, shakes, and desserts. In response to obesity
trends in Western nations and in the face of criticism over the healthiness of its
products, the company has modified its menu to include alternatives considered
healthier such as salads, wraps and fruit.

History:

The business began in 1940, with a restaurant opened by brothers Richard and
Maurice McDonald in San Bernardino, California. Their introduction of the
"Speedee Service System" in 1948 established the principles of the modern fast-
food restaurant. The original mascot of McDonald's was a man with a chef's hat
on top of a hamburger shaped head whose name was "Speedee." Speedee was
eventually replaced with Ronald McDonald by 1967 when the company first filed
a U.S. trademark on a clown shaped man having puffed out costume legs.

McDonald's first filed for a U.S. trademark on the name McDonald's on May 4,
1961, with the description "Drive-In Restaurant Services," which continues to be
renewed through the end of December 2009. In the same year, on September 13,
1961, the company filed a logo trademark on an overlapping, double arched "M"
symbol. The overlapping double arched "M" symbol logo was temporarily
disfavored by September 6, 1962, when a trademark was filed for a single arch,
shaped over many of the early McDonald's restaurants in the early years. The
famous double arched "M" symbol in use today did not appear until November
18, 1968, when the company filed a U.S. trademark.

The first McDonald's restaurants opened in the United States, Canada, Costa
Rica, Panama, Japan, the Netherlands, Germany, Australia, France, El Salvador
and Sweden, in order of openings.

The present corporation dates its founding to the opening of

a franchised restaurant by Ray Kroc, in Des Plaines, Illinois, on April 15,
1955, the ninth McDonald's restaurant overall. Kroc later purchased the
McDonald brothers' equity in the company and led its worldwide expansion, and
the company became listed on the public stock markets in 1965. Kroc was also
noted for aggressive business practices, compelling the McDonald brothers to
leave the fast food industry. The McDonald brothers and Kroc feuded over
control of the business, as documented in both Kroc's autobiography and in the
McDonald brothers' autobiography. The site of the McDonald brothers' original
restaurant is now a monument.

With the expansion of McDonald's into many international markets, the company
has become a symbol of globalization and the spread of the American way of life.
Its prominence has also made it a frequent topic of public debates
about obesity, corporate ethics and consumer responsibility.

Corporate Overview:

Facts and Figures:

McDonald's restaurants are found in 119 countries and territories around the
world and serve 58 million customers each day. McDonald's operates over 31,000
restaurants worldwide, employing more than 1.5 million people. The company
also operates other restaurant brands, such as Piles Café.

Focusing on its core brand, McDonald's began divesting itself of other chains it
had acquired during the 1990s. The company owned a majority stake in Chipotle
Mexican Grill until October 2006, when McDonald's fully divested from
Chipotle through a stock exchange. Until December 2003, it also owned Donatos
Pizza. On August 27, 2007, McDonald's sold Boston Market to Sun Capital
Partners.

Types of restaurants:

Most standalone McDonald's restaurants offer both counter service and drive-
through service, with indoor and sometimes outdoor seating. Drive-Thru, Auto-
Mac, Pay and Drive, or "McDrive" as it is known in many countries, often has
separate stations for placing, paying for, and picking up orders, though the latter
two steps are frequently combined; it was first introduced in Arizona in 1975,
following the lead of other fast-food chains. The first such restaurant in Britain
opened at the Merry Hill Shopping Centre in the West Midlands in November
1986.

In some countries, "McDrive" locations near highways offer no counter service

or seating. In contrast, locations in high-density city neighborhoods often
omit drive-through service. There are also a few locations, located mostly in
downtown districts, that offer Walk-Thru service in place of Drive-Thru.

Specially themed restaurants also exist, such as the "Solid Gold McDonald's," a
1950s rock-and-roll–themed restaurant. In Victoria, British Columbia, there is
also a McDonald's with a 24-carat (100%) gold chandelier and similar light
fixtures.

To accommodate the current trend for high quality coffee and the popularity of
coffee shops in general, McDonald's introduced McCafé, a café-style
accompaniment to McDonald's restaurants in the style of Starbucks. McCafé is a
concept created by McDonald's Australia, starting with Melbourne in 1993.
Today, most McDonald's in Australia have McCafés located within the existing
McDonald's restaurant. In Tasmania, there are McCafés in every store, with the
rest of the states quickly following suit. After upgrading to the new McCafé 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 McCafés worldwide.

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

called McExpress 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.

Playgrounds:

Some McDonald's in suburban areas and certain cities feature large indoor or
outdoor playgrounds. The first PlayPlace with the familiar crawl-tube design with
ball pits and slides was introduced in 1987 in the USA, with many more being
constructed soon after. Some PlayPlace playgrounds have been renovated into "R
Gym" areas.

Redesign:
In 2006, McDonald's introduced its "Forever Young" brand by redesigning all of
their restaurants, the first major redesign since the 1970s. The design includes the
traditional McDonald's yellow and red colors, but the red is muted to terra cotta,
the yellow was turned golden for a more "sunny" look, and olive and sage green
were also added. To warm up their look, the restaurants have less plastic and more
brick and wood, with modern hanging lights to produce a softer
glow. Contemporary art or framed photographs hang on the walls.

Business Model:

McDonald's Corporation earns revenue as an investor in properties, a franchiser

of restaurants, and an operator of restaurants. Approximately 15% of McDonald's
restaurants are owned and operated by McDonald's Corporation directly. The
remainder are operated by others through a variety of franchise agreements and
joint ventures. The McDonald's Corporation's business model is slightly different
from that of most other fast-food chains. In addition to ordinary franchise fees
and marketing fees, which are calculated as a percentage of sales, McDonald's
may also collect rent, which may also be calculated on the basis of sales. As a
condition of many franchise agreements, which vary by contract, age, country,
and location, the Corporation may own or lease the properties on which
McDonald's franchises are located. In most, if not all cases, the franchisee does
not own the location of its restaurants.

The UK business model is different, in that fewer than 30% of restaurants are
franchised, with the majority under the ownership of the company. McDonald's
trains its franchisees and others at Hamburger University in Oak Brook, Illinois.
In other countries, McDonald's restaurants are operated by joint ventures of
McDonald's Corporation and other, local entities or governments. As a matter of
policy, McDonald's does not make direct sales of food or materials to franchisees,
instead organizing the supply of food and materials to restaurants through
approved third party logistics operators.

According to Fast Food Nation by Eric Schlosser (2001), nearly one in eight
workers in the U.S. have at some time been employed by McDonald's. (According
to a news piece on Fox News this figure is one in ten.) The book also states that
McDonald's is the largest private operator of playgrounds in the U.S., as well as
the single largest purchaser of beef, pork, potatoes, and apples. The selection of
meats McDonald's uses varies with the culture of the host country.

McDonald’s and KFC

McDonald’s and KFC are everybody’s favorite food destinations. When you like
hamburgers McDonald’s is always the top option. When you like fried chicken,
KFC is always the first thing that comes to everyone’s mind. The reason for this
is these companies claim of particular products that have become their trademark
until now. The difference between McDonald’s and KFC is mainly the cuisine.

KFC
On the other hand, KFC or Kentucky fried chicken started during the great
depression, which was in the year 1930. It was first named as “sanders court and
cafe”, following the name of Harland sanders, the original creator from Kentucky.
Their current and most popular logo is the cartooned image of sanders with their
acronym, KFC. They are popular for their trade secret, their secret recipe made
from 11 herbs and spices that is known to create the “finger link in’ good” flavor
of their chickens.

Their basic products are fried chickens, chicken wraps, sandwiches, salads and
some roasted and grilled chicken cuisines and desserts, too. Be it McDonald’s or
KFC, you’ll surely have a great treat of a meal. Differentiating both will help us
recognize as to what we’d really love to consume. McDonald’s main offer is
hamburgers while KFC offers various kinds of chicken dishes.

McDonald’s V/S KFC

 RANGE:
McDonald’s attention is fundamentally on hamburgers, cheese burgers and
broiled chicken and it have a wide range of burgers.
KFC has a more extensive scope of approaches to get ready chicken. KFC
does wraps, servings of mixed greens and pieces or now and again even
pies and kebabs.

 STARTED
McDonald’s was started in year 1940
KFC was launched in year 1930
 MARKET SHARE
McDonald’s have 19% share in worldwide market.
KFC have only 9% share in worldwide market.

 SERVICES AND PRICES

McDonald’s have very fast services and have relatively low prices for their
products.
KFC have fast services and relatively higher prices for their products.

 PROFITS
McDonald’s annual turnover is almost 27 billion dollars.
KFC is having almost 684.5 million dollars’ turnover.

 BREAKFASTS
McDonald’s also offers breakfasts.
KFC does not offer breakfasts.

 HOME DELIVERY
McDonald’s offers the facility of home delivery.
KFC does not offer the facility of home delivery.

 OUTLETS
The dominant part of McDonald’s outlets is claimed by franchises.
McDonald’s is a privately held and autonomous organization. McDonald’s
has dependably been autonomous.
KFC is held to a great extent by the company or a few vast establishment’s
bunches. KFC is a division of Yum Brands which additionally claims long
John silvers, Taco Bell and others.
  RANKING
McDonald’s always remain on first rank.
KFC ranked from number 7 to number 8.

 SANITATION
McDonald’s is having the best ranking in standards related to sanitation
and quality of food.
KFC is not having best ranking is sanitation and quality as compare to
McDonald’s.

 BRANCHES
McDonald’s branches are in almost 120 countries with more than 35000
branches.
KFC have more than 15000 branches in 109 countries.

 STRENGTH
The strength of McDonald’s is strong brand name, pictures, large share of
market, solid worldwide vicinity.
The strength of KFC are huge famous brand name and high brand
dedication, more number of items. Hygienic sustenance and snappy
administration, good promoting and show casting, strong trademarks
formulas.

INTRODUCTION OF SALES PROMOTION STRATEGY

The term sales promotion covers a wide range of activities intended to provide a
short term increase in sales, some sales promotions are aimed at retailers, some
are aimed at consumers, others are aimed at wholesalers, but in all cases the
intention is to provide an extra incentives to buy a specific brand or product range
sales promotion consists of a diverse collection of incentives tools, mostly short
term designed to stimulate quicker and greater purchases of a particular product
by consumers. When advertising offers a reason to buy, sales promotion offers
an incentive to buy.

MEANING OF SALES PROMOTION STRATEGY

Sales promotion is the process of persuading a potential customer to buy the

product. Sales promotion is designed to be used as a short term tactic to boost
sales it is rarely suitable as a method of building long term customer loyalty.
Some sales promotions are aimed at consumers.

DEFINITION OF SALES PROMOTION STRATEGY

According to W.J. Stanton, “sales promotion defined as demand stimulating

device to supplement advertising and facilitate personal selling.”

According to American Marketing Association, “those marketing activities, other

than personal selling, advertising and publicity that stimulate consumer
purchasing and dealer effectiveness, such as display, show and exhibitions,
demonstration and various non-recurrent selling efforts not in an ordinary routine.

Sales promotion is an important component of a promotion campaigning

programme. It can be specific tool of the marketing strategy of an enterprise.
Because of increasing level of competition and costs of advertisement, producers
largely use this technique as a promotional tool.
Sales promotion techniques are not only useful to the producers and distributors,
but also are useful to consumers. The importance of sales promotion may be
grouped as follows:

1.2 SIGNIFICANCE OF THE STUDY

 Benefits to consumers.
 Benefits to manufactures/producers.
 Benefits to dealers/middleman.
 Benefits to society and the nation.

BENEFITS TO CONSUMERS

 Sufficient product knowledge.

 Availability of product at reduced prices.
 Increase in consumers buying confidence.
 Increase in the quality of goods purchased.
 Higher slandered of living.
 Minimize exploitation

BENEFITS TO MANUFACTURE/PRODUCER

 Increase in sales.
 Regular sales of seasonal product.
 Improve effectiveness of advertisement and personal selling.
 Cooperation from middleman.
 Demand for product and services.
 Able to capture new market.
 Increase in goodwill.
 Direct control.
  Effective steps to face the competition.
 Improvement and new uses of the production.

BENEFITS TO DEALERS/MIDDLEMAN

 Facilitates larger sales.

 More facilitates and assistance.
 Direct relation with customers.

BENEFITS TO THE SOCIETY AND THE NATION

The benefits of sales promotion programme for the society and the nation can be
summarized as below: -

 Increase in standard of living the people.

 Increase in employment opportunities.
 Development and expansion of transport, communication, banning,
insurance and warehousing facilities.
 Increase in Gross National Product and pressures, growing competition
recession, quick returns, competent staff and attitudinal change are the
causes of growing popularity of sales promotion.
 Sales promotion methods or scheme are used at the level of declares,
consumers and salesmen.

ADVANTAGES OF SALES PROMOTION STRATEGY

 Price discrimination
 Effect on consumer behavior
  Effect on trade behavior
 Regional difference

DISADVANTAGES OF SALES PROMOTION STRATEGY

 Increased price sensitivity

 Quality image may become tarnished
 Merchandising support from dealers is doubtful
 Short term orientation

1.3 NEED OF THE STUDY

With the increase in spending capacity of Indian middle class society, the mind
set of consumers have changed in relation to recreational. More frequently people
have started to move out to eat, this has created scope for many fast food chains.
But along with that it has also created competition among different food chains.
Hence each and everyone plays a major role in attracting customers. The trend
can be seen by the increasing number of food chains. That is why this topic was
chosen for further study as this particular industry is fast becoming very
competitive.

This project comprises a brief analysis of the Indian fast food industry and the
competition that marks the trend, different companies and various players are
analyzed from their competing strategies. Some of these fast food chains are
Nirula’s, Pizza Hut, McDonald’s, Haldiram’s.

Further the main scope of the study is to conduct a comparative analysis on

effectiveness of sales promotion activity of two of the major players in the for
services industry, which is McDonald’s and KFC. The research tries to analyze
McDonald’s and KFC’s strengths and their business process very closely with a
greater emphasis on how they do a better job than other competitors at serving
their customers.

VISION AND MISSION OF MCDONALD’S

VISION: - ‘To be the best and leading fast food provider around the globe’

MISSION: - McDonald’s mission is to be the world’s best quick service

restaurant. Providing outstanding quality, service, cleanliness, and value, so that
we make every customer in every restaurant smile.

VISION AND MISSION OF KFC

VISION: - To foresee that real future of long term growth and adjust itself to the
specific cultures of each country that are operating in.

MISSION: - The mission of KFC is to extend its image of excellence, quality and
service all over the globe with an attaining a goal of maximizing profit.

PRODUCTS OF McDonald’s

 Hamburgers
 Chicken
 French fries
 Soft drinks
 Milkshakes
 Salads
 Desserts
  Coffee
 Breakfast
 Wraps

PRODUCTS OF KFC

 Crispy fried chicken

 Zinger
 Twister
 Hotshots
 Chicken Burger
 Hot wings
 Rice and spice
 Fish zinger
 Nuggets
 Corn on the cob
 French fries

COMPETITORS OF McDonald’s

 KFC
 Burger king
 Subway
 Starbucks
 Pizza Hut
 Domino’s
 Dunkin Donuts
 Wendy’s
 Taco Bell
  Chipotle

COMPETITORS OF KFC

 McDonald’s
 Burger king
 Subway
 Dunkin Donuts
 Starbucks
 Pizza Hut
 Domino’s pizza
 Taco Bell
 Wendy’s
 Chipotle

BAGROUND OF McDonald’s

McDonald’s headquarters is located in Oak Brook, lllinois, united states. It is the

largest chain of hamburger fast food restaurant in the world. The company logo
is McDonald’s with a big yellow “M”. large 1 shows that. Richard and Maurice
McDonald started the first McDonald’s store from 1950s in the US, and it
primarily sells hamburgers, French fries, dessert, and salads. In 1955, when the
first McDonald’s restaurant was founded in the united states, there was not much
variety on its menu, but they offered food supply with high quality, low cost and
good environment. By 1983, there were more than 6,000 domestic branches. In
1967, McDonald’s opened its first overseas branch in Canada. By 1985, its total
abroad sales accounted for about 20 percent of its domestic business. Every day
there are more than 18 million people coming to McDonald’s in more than 40
countries. Nowadays McDonald’s has more than 34,000 locations worldwide
with a revenue of 27.56 billion US dollars.
THE BAGROUND OF KFC

Together with Pizza Hut and Taco Bell, KFC belong to yum! Brands Inc. Yum!
Company is the world’s largest restaurant company in terms of system units. KFC
corporation’s headquarters is located in Louisville, Kentucky, United States. It is
the world’s largest fried chicken chain restaurant, measured by sales; it is the
second largest restaurant chain after McDonald’s. more than 11,000 Yum
restaurants have been opened in about 80 countries. Colonel Harland Sanders
founded it in 1952 by selling fried chicken. His kindly grandpa faces also became
KFC logo. Image 2 shows that. Today KFC mainly sell fried chicken,
hamburgers, French fries, soft drinks and other Western-style fast food. It has
about 18,000 locations with a revenue of 15 billion US dollars.
 CHAPTER-2

RESEARCH METHODOLOGY
STATEMENT OF THE PROBLEM

With the developing of living standards, fast food is increasingly being accepted
in people’s lives. It has become an integral part of the daily food. In recent years,
the rise and development of the fast industries have become a very interesting
phenomena in the Chinese market. McDonald’s and KFC have sales mode with
a good quality, excellent services and a clean environment to attract customers.
McDonald’s is ranked at the top of the fast food industries with over 33,000
outlets, whereas KFC only has 11,000 outlets in 80 counties, ranking at 7 th in the
world. KFC, the world largest chain of fried chicken restaurants, may face
pressure from consumer and environmental groups to change how its poultry are
after McDonald’s CORP said it would switch to chicken raised without human
antibiotics.

The study eventually intends to know the problems faced by the two companies
related to various sales promotion activities and also to know which brand gains
a better customer satisfaction for reaching better growth and profit.

2.3 OBJECTIVES OF THE STUDY

 To know a comparative analysis on the marketing parameters practiced by

McDonald’s and KFC to increase the sale.
 To study various aspects of supply chain management, employee
satisfaction and hospitality management of both organizations.
 To study the consumer’s preference amongst McDonald’s and KFC.
 To understand the satisfaction level of customer towards service, hygienic,
advertisement, delivery of the products provided by McDonald’s and KFC.
2.4 SCOPE OF THE STUDY

The scope of the study is limited solely to the markets visited by the researcher
for the purpose of research; this may hence not be a total reflection of the
impact of the company’s activities s

ssin all markets. This study focuses on the promotional activities and its
impact on big mac. The research tries to find the importance of a diversified
promotional strategy on the success of a brand. The researcher aims to find
how the activities of the company have been successful in driving sales and
the market share of the company by focusing on various promotional
activities. This research identifies the current trends in Indian fast food market.
This research performs the comparative analysis among McDonald’s and
KFC. This research analyzes the customer’s perception towards McDonald’s
and KFC. This research measures the opportunities and challenges for fast
food businesses in India.

2.5 METHODOLOGY

SAMPLEING SIZE: The sample size consists of 50 respondents or customers

of McDonald’s and KFC.

SAMPLING AREA: The area of research will be conducted at Bangalore.

SAMPLING TECHNIQUES: Convenient sampling technique is used.

DATA COLLECTION

In this project both primary data as well as secondary data are used.

PRIMARY DATA

Primary data are those, which are collected at fresh and for the first time, and
thus happens to be original in character. Primary data used in this project is
collected through two methods, namely, questionnaire method and direct
personal interview method. Both these methods proved to be great help in
getting the required information.

SECONDARY DATA

Secondary data are those, which have already been collected by someone else
and which have already been passed through the statistical process. Some
related information on the two companies and any past comparison of the two
chains was collected through secondary data from various sources like
internet, print media.

PLAN OF ANALYSIS

On the basis of information collected through questionnaire. The result thus

obtained will be represented through charts and suitable interpretation will be
provided. Charts are used to display series of numerical data and in graphical
format to make it easier to understand large quantities of data and the
relationship between different series of data. It is portrayed through.

 Tables
 Charts
 Graphs
 Diagrams
 Interpretation
 CHAPTER 3

SWOT ANALYSIS
SWOT analysis of Mcdonalds

STRENGHT

 Brand Equity…world-wide
 42% of US fast-food hamburger business
 Consistency of food
 Successful items: Fries, Happy Meal, Big Mac, Egg Mc Muffin,
Promotions
 Overseas market

WEAKNESSES

 Declining market share

 Weak product development

OPPORTUNITIES

 International expansion
 Growing dining-out market
 Joint ventures with retailers (e.g. supermarkets).
 International expansion into emerging markets of China and India.

THREATS

 Mature/overstored industry
 Strength of competition
 More health-conscious consumers
 Changing demographics
 Fluctuation of foreign exchange rates; Economies
 Recession or down turn in economy may affect the retailer sales
SWOT Analysis OF KFC

STRENTHS

1. Global Operations.
2. Strong Franchise network
3. Strong Product line
4. New Broiler for their outlets.
5. Strong branding
6. Less capital intensive

WEAKNESS

1. Decreasing sales in mature markets:

2. Large franchisees.
3. Unstable ownership.

OPPORTUNITIES

1. Market Expansion.
2. Market Penetration
3. Health conscious eatables

THREATS

1. Competition
2. Changing Consumer Eating habits.
3. Raw Material prices.
 CHAPTER 4

DATA COLLECTION AND INTERPRETATION

 TABLE: 4.1

GENDER OF RESPONDENTS

SI. FACTORS NO OF % OF
NO RESPONDENTS RESPONDENTS

1 Male 22 44%

2 Female 28 56%

TOTAL 50 100%

SOURCES: PRIMARY DATA

ANALYSIS:

The above table portrays that 28 number of respondents are female they are more
in number when compare to in the study.

INTERPRETATION:

The above graph is interpreted as only 44% of respondents are male, were female
respondents are occupied in majority
 TABLE: 4.2

AGE OF RESPONDENTS

SI. NO FACTORS NO OF % OF
RESPONDENTS RESPONDENTS

1 Under 18 1 2%
years

2 18-21 19 38%

3 22-25 24 48%

4 26-30 6 12%

TOTAL 50 100%

SOURCES: PRIMARY DATA

ANALYSIS:

From the above table it is analyzed that out of 50 respondents in that maximum
of 24 number of respondents are between the age of 22-25, 1 number of
respondents are between the age of under 18 years.

INTERPRETATION:

From the above we found that 48% of respondents are between the age of 22-25
more outgoing and taking more fast food rather than other age people. The
company can concentrate on attracting below 18 years’ teenagers.
 TABLE:4.3

VEGETARIAN/NON VEGETARIAN RESPONDENTS:

SI. NO FACTORS NO OF RESPONDENTS % OF RESPONDENTS

1 Vegetarian 12 24%

2 Non vegetarian 26 52%

3 Occasionally non 12 24%

vegetarian

TOTAL 50 100%

SOURCES: PRIMARY DATA

ANALYSIS:

The table shows that 26 number of the respondents are non-vegetarians and 12
number of respondents are occasionally non-vegetarian.
INTERPRETATION:

From the above data it indicates 52% of the respondents are non-vegetarian and
24% of the respondents are vegetarian and 24% are occasionally non vegetarian.
Hence majority of the respondents are non-vegetarian.

TABLE:4.4

HOW OFTEN DO YOU VISIT KFC AND MCDONALD’S?

SI. FACTORS NO OF % OF
NO RESPONDENTS RESPONDENTS

1 Daily 18 36%

2 Once in a week 12 24%

3 Once in a 11 22%
month

4 At leisure 9 18%

TOTAL 50 100%

SOURCES: PRIMARY DATA

ANALYSIS:

The table shows that 18 number of respondents visit daily, 12 number of

respondents visit once in a week and 9 number of respondents visit at leisure time.

INTERPRETATION:

From the above table it portrays that 36% of respondents are visit daily, 24% of
respondents are visit once in a week, 22% of respondents are visit once in a month
and 18% of respondents visit at leisure time.

TABLE:4.5

REASONABLE PRICE ON KFC AND MCDONALD’S

SI. FACTORS NO OF % OF
NO RESPONDENTS RESPONDENTS

1 Normal 19 38%

2 Expensive 19 38%

3 Value for 12 24%

money

TOTAL 50 100%

SOURCES: PRIMARY DATA

ANALYSIS:

The table shows that 19 number of respondents feel that the price on KFC and
McDonald’s is normal and 19 number of respondents feel it is too expensive.

INTERPRETATION:

From the above data 38% of respondents feel that the price on KFC and
McDonald’s is very expensive and also 38% of respondents feel that normal price
and 24% of respondents feel that value for money.
 TABLE:4.6

AMOUNT SPEND ON AVERAGE VISIT

SI. FACTORS NO OF % OF
NO RESPONDENTS RESPONDENTS

1 Below Rs100 8 16%

2 Rs100-Rs500 28 56%

3 Above 500 14 28%

TOTAL 50 100%

SOURCES: PRIMARY DATA

ANALYSIS:

The table shows that 28 number of respondents agree that they spend average
visit Rs100-Rs500, 14 number of respondents agree that they spend average visit
above 500 and 8 number of respondents agree that they spend average visit below
Rs100.

INTERPRETATION:

From the above data 28% of respondents are spend above Rs500 per visit and
56% of respondents are spend Rs100-Rs500 average per visit and 16% of
respondents are spend below Rs100 per visit.
 TABLE:4.7

DO YOU THINK ABOUT THE HYGIENE OF THE KFC AND

MCDONALD?

SI. FACTORS NO OF % OF
NO RESPONDENTS RESPONDENTS

1 Satisfactory 39 78%

2 Need attention 9 18%

3 Very poor 2 4%
indeed

TOTAL 50 100%

SOURCES: PRIMARY DATA

ANALYSIS:

It is analyzed the majority number of respondents 39 are satisfaction towards

maintenance of hygiene at KFC and McDonald’s and 2 number of respondents
are very poor indeed.

INTERPRETATION:

From the above data 78% of respondents are feel satisfactory for hygiene of the
place and 18% of respondents are feel need attention and the company
concentrate to satisfactory every customer including those respondents who feel
very poor.
 TABLE:4.8

BEHAVIOUR OF STAFF TOWARDS CUSTOMER

SI. NO FACTORS NO OF % OF RESPONDENTS

RESPONDENTS

1 Friendly 43 86%

2 Indifferent 7 14%

3 Rude 0 0%

TOTAL 50 100

SOURCES: PRIMARY DATA

ANALYSIS:

The table shows that 43 number of respondent’s feel the staff are friendly and 7
number of respondents feel the staff are indifferent.
INTERPRETATION:

From the above graph 86% of respondents feel the staff are friendly and
impressive, 14% of respondents feel the staff are indifferent.

TABLE:4.9

PREFERENCE WHICH OF THESE WOULD YOU CHOOSE

SI. FACTORS NO OF % OF RESPONDENTS

NO RESPONDENTS

1 McDonald’s 18 36%

2 KFC 17 34%

3 Pizza Hut 5 10%

4 Subway 4 8%

5 Others 6 12%

TOTAL 50 100%

SOURCES: PRIMARY DATA

ANALYSIS:

It is analyzed the table 18 number of respondents they choose the McDonald’s

food, 17 number of respondents they choose the KFC food and 4 number of
respondents they choose subway.
INTERPRETATION:

From the above graph represent that out of 50 respondents in that maximum of
36% of respondents they choose McDonald’s food, minimum of 8% of
respondents they choose subway food and most of the respondents choose KFC
food also.

TABLE:4.10

WHICH ENVIRONMENT IS BETTER IN MCDONALD’S AND KFC

SI.NO FACTORS NO OF % OF RESPONDENTS

RESPONDENTS

1 KFC 12 24%

2 McDonald’s 17 34%

3 Both 17 34%

4 None of these 4 8%
 TOTAL 50 100%

SOURCES: PRIMARY DATA

ANALYSIS:

From the above table it is analyzed that out of 50 number of respondents in that
maximum of 17 number of respondents feel the McDonald’s and KFC both
environment is better.

INTERPRETATION:

From the above data it clearly indicates that 34% of respondents feel the
McDonald’s restaurant environment is better and 24% of respondents feel the
KFC environment is also better and good restaurant.
 TABLE:4.11

WHEN COMPARED WHICH IS MOST PREFERABLE

SI.NO FACTORS NO OF % OF RESPONDENTS

RESPONDENTS

1 KFC 8 16%

2 McDonald’s 8 16%

3 Both 27 54%

4 None of 7 14%
these

TOTAL 50 100%

SOURCES: PRIMARY DATA

ANALYSIS:

It is analyzed the table, represent that 27 respondents are highly preferred for both
McDonald’s and KFC and 7 respondents are preferred very less for none of the
above organization.

INTERPRETATION:

From the above graph signifies that 54% of respondents are highly preferred for
both McDonald’s and KFC restaurant and 14% of respondents are very less
preferred for none of these restaurant.
 TABLE:4.12

WILL THE ADVERTISEMENT INFLUENCE YOU TO VISIT KFC AND

MCDONALD’S?

SI. NO FACTORS NO OF RESPONDENTS % OF RESPONDENTS

1 Have a great 12 24%

influence

2 Influence little 19 38%

3 Have no influence 9 18%

4 Not to matter 10 20%

TOTAL 50 100%

SOURCES: PRIMARY DATA

ANALYSI:

The above table specifies that out of 50 respondents in that maximum of 19

responded are influence little and 9 number of respondents are no influence of the
restaurant.

INTERPRETATION:

From the above graph it is interpreted in that maximum 38% of respondents are
influence little of the restaurant and 24% of respondents are saying have a great
influence.
 TABLE:4.13

IS THERE NEGATIVE VIEWS TOWARDS KFC AND MCDONALD’S?

SI. FACTORS NO OF RESPONDENS % OF RESPONDENTS

NO

1 KFC 21 42%

2 McDonald’s 5 10%

3 Both 7 14%

4 They have the same 17 34%

amount of negative
news

TOTAL 50 100%

SOURCES: PRIMARY DATA

ANALYSIS:

From the above table represent that 21 number of respondents have negative
views towards KFC and 5 number of respondents have negative views towards
McDonald’s.
 INTERPRETATION:

From the above graph, it is interpreted that 42% of respondents have more
negative views towards KFC and 10% of respondents have less negative views
towards McDonald’s.

TABLE:4.14

CIRCUMSTANCES TO VISIT MCDONALD’S AND KFC

SI. FACTORS NO OF RESPONDENTS % OF RESPONDENTS

NO

1 It is convenient to have 13 26%

something to eat

2 Meet with friends 37 74%

TOTAL 50 100%

SOURCES: PRIMARY DATA

ANALYSIS:

From the above table signifies that 13 number of respondents visit McDonald’s
and KFC because convenient to have something to eat.37 respondents visit KFC
and McDonald’s when meet with friend’s.
INTERPRETATION:

From the above table signifies that 26% of respondents visit McDonald’s and
KFC because convenient to have something to eat and 74% of respondents visit
KFC and McDonald’s when meet with friend’s.

TABLE:4.15

DO YOU THINK FSAT FOOD IS GOOD FOR HEALTH

SI. FACTORS NO OF % OF RESPONDENTS

NO RESPONDENTS

1 Yes 16 32%

2 No 34 68%

TOTAL 50 100%

SOURCES: PRIMARY DATA

ANALYSIS:

It is analyzed that 16 respondents have agreed that junk food are good for health
and 34 respondents have opinion that junk food is not good for health.

INTERPRETATION:

From the above graph shows that 32% of respondents have agreed that junk food
is good for health and 68% of respondents have opinion that junk food is not good
for health.

TABLE:4.16

SATISFACTION LEVEL TOWARDS MCDONALD’S AND KFC

SERVICES

SI. NO FACTORS NO OF RESPONDENTS % OF RESPONDENTS

1 Yes 45 90%

2 No 05 10%

TOTAL 50 100%

SOURCES: PRIMARY DATA

ANALYSIS:

It is analyzed the table indicates that 45 number of respondents are highly

satisfied with McDonald’s and KFC services and 5 number of respondents are
not satisfied with McDonald’s and KFC services.
INTERPRETATION:

From the above graph, shows that 90% of respondents are satisfied with
McDonald’s and KFC services and 10% of respondents are not satisfied with
McDonald’s and KFC services. Majority of respondents are agreed that
McDonald’s and KFC services.

TABLE 4.17

WHAT FACTOR INFLUENCES TOWARDS MCDONALD AND KFC

FOOD

SI. FACTORS NO OF % OF RESPONDENTS

NO RESPONDENTS

1 Delicious 9 18%

2 Good 28 56%

3 Normal 13 26%

4 Not Good - -

TOTAL 50 100%

SOURCES: PRIMARY DATA

ANALYSIS:

The above table signifies that 28 number of respondents feel the KFC and
McDonald’s food is good and 9 number of respondents feel the KFC and
McDonald’s food is delicious.

INTERPRETATION:

From the above graph that 56% of respondents feel the KFC and McDonald’s
food is good, 18% of respondents feel the KFC and McDonald’s food is delicious
and 26% of respondents feel the KFC and McDonald’s food is normal.
 TABLE:4.18

WHETHER RESTAURANT HAS GOOD STAFF

SI. NO FACTORS NO OF % OF
RESPONDENTS RESPONDENTS

1 McDonald’s 15 30%

2 KFC 28 56%

3 Both 7 14%

TOTAL 50 100%

SOURCES: PRIMARY DATA

ANALYSIS:

From the above table shows that 28 number of respondents feel that KFC
restaurant has good staff and 15 number of respondents feel that both McDonald’s
and KFC restaurant has good staff.

INTERPRETATION:

From the above graph shows that 56% of respondents feel that KFC restaurant
has good staff and 14% of respondents feel that both McDonald’s and KFC
restaurant has good staff.
 TABLE:4.19

Do you think ambience of the food joints influences your choice for a particular
food joint?

INTERPRETATION:

The Aforesaid pie-chart shows the percentage distribution of customers it states

that 33% of customers strongly agree,27% of customers agree,17% of the
customers neither agree nor disagree,17% of customers disagree and 6% stongly
disagree.

TABLE:4.20
Does McDonald’s have better ambience in terms of cleaniness and crowd as
compared to KFC

INTERPRETATION:

The Aforesaid pie-chart shows the percentage distribution of customers it states

that 40% of customers strongly agree,23% of customers agree,27% of the
customers neither agree nor disagree,10% of customers disagree and 0% stongly
disagree.

TABLE:4.21

customer service of McDonalds’ is more prompt than Burger King

INTERPRETATION:

The Aforesaid pie-chart shows the percentage distribution of customers it states

that 33% of customers strongly agree,23% of customers agree,10% of the
customers neither agree nor disagree,17% of customers disagree and 17% stongly
disagree.
 TABLE:4.22

The food products provided by Burger King are more reasonably priced than
that of McDonald’s

INTERPRETATION:

The Aforesaid pie-chart shows the percentage distribution of customers it states

that 30% of customers strongly agree,27% of customers agree,33% of the
customers neither agree nor disagree,10% of customers disagree and 0% stongly
disagree.

TABLE:4.23

Burger King provides frequent discounts relative to McDonalds’

INTERPRETATION:

The Aforesaid pie-chart shows the percentage distribution of customers it states

that 17% of customers strongly agree,20% of customers agree,25% of the
customers neither agree nor disagree,30% of customers disagree and 8% stongly
disagree.
 TABLE:4.24

McDonalds’ food is quite oily , compared to Burger Kind Food

INTERPRETATION:

The Aforesaid pie-chart shows the percentage distribution of customers it states

that 0% of customers strongly agree,30% of customers agree,27% of the
customers neither agree nor disagree,33% of customers disagree and 10% stongly
disagree.
 CHAPTER 5

FINDINGS, CONCLUSIONS AND SUGGESTIONS

5.1 FINDINGS:

 It is being found that 52% of respondents are Non vegetarian.

 It is being found that 24% of respondents visits restaurant once in a week.
 74% of respondents are generally accompanies to visit restaurant with
friends.
 38% of respondents are feel that the Price is expensive
 56% of respondents agree that they spend around Rs100-Rs500 per visit.
 52% respondents are coming restaurants for the non-veg delicacies.
 78% of respondents are satisfied with the hygiene of the place.
 Staff are friendly towards customers.
 Majority of the respondents prefer KFC restaurant more than McDonald’s.
 48% of respondents spend between 300-500 in KFC or McDonald’s.
 According to survey McDonald’s restaurant environment is better compare
to KFC restaurant
 38% of respondents agree that advertisements influence them.
 42% of respondents have negative views on both McDonald’s and KFC.
 Most of respondents are feel fast food is not good for health according to
survey 68% of respondents consider is not good for health.
 Most of respondents are saying KFC and McDonald’s food is good and
better according to survey 56% of respondents saying fast food is good and
delicious.
5.2 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. Both the food giants have
given each other immense competition in terms of customer satisfaction and
promotional strategies.

The range of products and offers offered by each is remarkable in every context.
Although McDonald’s has an upper hand with the vegetarian crowd because of
its exclusive products, KFC is slowly catching up to the challenge. KFC provides
vegetarian alternatives with an added advantage of a complete meal including rice
and desert. Where McDonald’s fall into the snack option KFC had quite evident
which one can be termed as better than the other.

In today’s world one of the major problems is unbalanced growth in customer

loyalty program. This paper exemplifies the environment and the ways loyalty
managers can meet this exacting challenge. This can only have achieved by
making business plan and optimized business process design to compute those
strategies which is maintained by highly technology persons. Overall coverage at
each level is required for business processes which are fully cover up by business
strategies. Technology fully covers the needs of the business processes which are
fully covers the technology requirements.
5.3 SUGGESTIONS:

 The companies have to focus more on non-veg because respondents like

more than vegetarian.
 KFC and McDonald’s restaurant have keep offers to attract customers.
 Price should be reasonable.
 The advertisement can focus more on society so ads should be attractive.
 Restaurant advertising has to focus more on other information also to
attract customers.
 Companies has to focus on avoiding negative news to the restaurants.
 Restaurant advertisement should be more impressive than only customers
like the restaurant to attend.
 The advertisement of newspapers, magazine should improve in market
than only respondents will use more often.
 Food has to be good for health which satisfy the customers, because most
of the respondents are complaints fast food is not good for health.
 Company have to keep main focus on the respondents to survey healthy
food.
 ANNEXURES

BIBLIOGRAPHY

BOOKS
1. Philip Kotler, Kevin Lane Keller: Marketing management, 2008
2. Eric Scholloser: Fast Food Nation, 2001
3. Michael Armstrong: Strategic Human Resources Management 2006
4. “Dr M. J. Mathew”, “Sales management and sales promotion”
5. “Philip Kotler”, “Marketing management “Himalaya publishing house”

WEBSITES
www.google.com
www.shodhgangotri.com
www.kfc.com
http://www.mcdonalds.com