Industry :Fast

Food
Brand: Mc D
Competitor:
KFC Submited By:
Darshan.K.P
Finance 1
 INDUSTRY ANALYSIS
• In 2006, the global fast food market grew by 4.8% and
reached a value of 102.4 billion and a volume of 80.3
billion transactions.
• In India alone the fast food industry is growing by 40%
a year.
• McDonald's is located in 120 and operates over 31,000
restaurants worldwide.
• Burger King has more than 11,100 restaurants in more
than 65 countries
• KFC is located in 25 countries.
• Subway has 29,186 restaurants located in 86
countries,
• Pizza Hut is located in 26 countries, with 100 locations
in China.
STRUCTURE
ISSUE PRIORITY MATRIX:
McDonald’s

Team 11
 Introduction
• McDonald's India opened its doors to India in October 1996. Ever since,
our family restaurants in Mumbai, Delhi, Pune, Ahmadabad, Vadodara,
Ludhiana, Jaipur, Noida Faridabad, Doraha, Manesar, Gurgaon have
proceeded to demonstrate, much to the delight of all our customers, what
the McDonald's experience is all about.
 Strengths
•Brand Recognition
SWOT
Analysis •Leader in Quick Service Sandwich Industry
•World’s Largest Burger Chain
•Over 30,000 Stores, $41 billion in sales
•Strongest International Presence
•120 Countries

•Real-Estate Holdings
•Prime time high-traffic locations
•Have control over what to do with the land
•Easily Recognizable Product
•Big-Mac as Trademark

•Variety Sources of Income

•Franchise – Rent and %-of-Sales
•Company-owned Restaurants
•Brand Portfolio of Restaurants

•Franchise Business Model

 Weaknesses

•Customer Service Level

SWOT •Slow Service at Drive Through Windows (60%
Analysis sales)
•Poor Order Accuracy (84.41%)
•Poor Management
•Management at Corporate Level (Failed
Initiatives)
•Franchise Management (Poor Franchise
Relationships)
•Poor Marketing
-Not responsive to needs
-Cannibalization - Tension
•Not attentive to customer’s needs
•Failed of healthy menu/low fat products

•Struggles in Offering Value/Premium

Items•Markets abroad have not responded well
•High Employee Turnover
•Nature of Industry at 300%
•Higher than Rivals
•Believed to be One of the Factors for Poor Service
Rankings
 Opportunities

SWOT
Analysis •Growth in Global Food Service Industry
•International Expansion
•Grow more than $200 billion (’02-’06)

•Initial Public Offerings in Other Countries

•Success in US and Japan
•120 countries

•Acquisition of Other Restaurants

•Diversifying Brand Portfolio

•Retail Sales of Merchandises

•McDonald’s family characters
•License Agreements (i.e. Disneys)
 Threats

•Increased Competition from Various

•Quick Service Restaurants Industry
SWOT Industries
•Non-Traditional outlets (grocery/convenience
Analysis
stores)
•Health Conscious Consumer Trend
•Decreased consumption of fried food, junk food, and
red meat
•Brand Perception
•Value-Conscious Consumer Trend
•Demand Quality for Good Value for Price

•Saturation of US fast-food Market

•Aggressive Expansion no longer an option

•Slow Growth in Sandwich

Segment
•Price War Business Practices
•Weak Economy – attract value conscious consumers
•Hurt Profitability
 Marketing Analysis
4 P’s Analysis
SWOT

$
Analysis

market
Analysis

Product
•Wide variety of menu items
- traditional items
- health-conscious items
•Local flavors
 Marketing Analysis
4 P’s Analysis
SWOT

$
Analysis

market
Analysis

Promotion
•I’m lovin’ it campaign to attract family
•Feature artists to target teenagers
•Give Ronald a more prominent place
 Marketing Analysis
4 P’s Analysis
SWOT

$
Analysis

Situation
Analysis

Place
•30,000 stores worldwide
•Operations
-Company-owned
-Franchise
 Marketing Analysis
4 P’s Analysis
SWOT

$
Analysis

Situation
Analysis

Price
•Traditionally - value-pricing as competitive weapon
•Now, offer products at range of price points
-attract both price-sensitive and health-conscious consumers
 PESTEL Analysis of McDonald’s
PESTLE ANALYSIS OF McDonald’s
Political • Global market

• Different Political infrastructures

• Consumer taxation
Economic • Market leader

• Very high target market

• Low cost and more incomes

Socio-Cultural • Fragmented supplier/workforce

• Working within many social groups

• Increase employments
Technological • Advanced technology development

• Quality standards
Legal • Legislation for product

• Sustained logo
Environmental • Quality packing

• Local manufacture using foreign supplies

Porter’s five forces analysis of McDonald’s
Competitive analysis
of Mc Donald’s
McDonald’s Competitive Profile Matrix
(CPM):
Market share of players in industry
 KFC:-
• Colonel Harland sanders, born September 9,
1890, actively began franchising his chicken
business at the age of 65.

• A quick service restaurant pioneer, have become

a symbol of entrepreneurial spirit.

• More than two billion of the colonel’s “finger lickin’

good” chicken dinners are served annually.

• The colonel’s cooking is available in more then 82

countries around the world.
 Marketing mix of KFC

• Product: 
• Basically the product is anything that be offered to a market for attention,
acquisition, use, or consumption that might satisfy a want or need. KFC is
specially dealing in the chicken products; Basically, KFC has the special
raspy for chicken products that is why, KFC known as a chicken specialist
allover the globe.
• Price: 
• KFC during pricing their products keep the different points in the mind like
they adopt the cost base price strategy. Pricing of the product includes the
Government taxes and excise duties and then they come at final stage of
determine the price of their products. KFC prices of products are a bit high
according to the market segment and it is also compatible to the stander of
their products.
 Contd.

• Promotion:
• Promotion is one of the necessary plates in any form of business or in other
words you can say that promotion is the key of success. If you promote your
product at the right time. KFC also known the importance and significance of
promotion so they uses the bill boards the major source of advertisement and
one of the most important thing that they uses media especially the
newspapers to promote their products.

• Place
• 20,000 stores worldwide
• Operations
- Company-owned
- Franchise
 SWOT ANALYSIS OF KFC:-
• Strengths:- 
• Brand Equity.
• 2nd Only to McDonald’s in Foreign Sales $550M.
• Very strong Internationally UK, Middle East, Thailand, China, Japan,Korea, Mexico.
• Ranks highest among all chicken restaurant chains for its convenience and menu variety.
• Largest multibranded restaurant in the world 100 KFC and Pizza Hut combos 600 KFC
and Taco Bell combos.

• Weaknesses:-
 
• Recent drop in sales for KFC.
• Lack of point of scale scanning system.
• Lack of knowledge abut their customers.
• Lack of focus on R&D.
•
• Opportunities:- 
• Growth of 18-24 age demographic.
• International beef scare from mad-cow and hoof and mouth disease.
• Home Meal Replacement Market will exceed an estimated $577 billion by 2020.
• Domestic markets.
• Updating restaurants.
• Customer focus.
• Increase delivery service.
 

 
 
• Threats:- 
• Rated 83 out of 100 in terms of competitiveness.
• Increasing wage rates directly affect menu prices.
• 85% annual employee turnover for fast food market.
• Supermarkets and new competitors threaten HMR market.
• International Exchange Rates.
• Quality of Service Focus.
 CONCLUSION
• Fast food industry is one of the fast going industries in India.

• There is a large scope for fast food companies to capture the

market.

• Mc Donald’s came as victorious both in India and in the world

with having more than 20% market share.

• Both Mc Donald’s and KFC have a good future ahead as both

are coming with latest trends and recipies with a healthe menu.
Thank
You.
Team 11