MC DONALDS

INTRODUCTION
McDonalds is the world's leading food service retailer with more than 30,000 restaurants in 119 countries serving 47 million customers each day. It is one of the world's most wellknown and valuable brands and holds a leading share in the globally branded quick service restaurant segment of the informal eating-out market in virtually every country in which they do business.

HISTORY

Richard and Maurice McDonald were pioneers of McDonalds and the quick service restaurant industry. Ray Kroc was the founder of McDonalds Corporation. McDonalds success today is rooted in the work of all three. In the late 1940s, Dick and Mac McDonalds pioneers of McDonalds were searching for a way to improve their little drive-in restaurant in San Bernardino, California, U.S.A.; they invented an entirely new concept based upon speed service, low prices, and big volumes. Word of its success spread quickly, in 1952 they had more than 300 franchising inquiries a month from all over the country. Joining of Ray Kroc in 1954, and foundation of the company that evolved into McDonalds Corporation was the major turning point in the history of McDonalds. McDonalds is now the largest and best-known foodservice retailer.

MCDONALDS INDIA

McDonalds opened its doors in India in October 1996. They have restaurants in Mumbai, Delhi, Pune, Ahmedabad, Vadodara, Ludhiana, Jaipur, Noida Faridabad, Doraha, Manesar and Gurgaon. McDonalds in India is a 50-50 joint venture partnership between McDonalds Corporation [USA] and two Indian businessmen. Amit Jatias company Hardcastle Restaurants Pvt. Ltd. owns and operates McDonalds restaurants in Western India. While Connaught Plaza Restaurants Pvt. Ltd headed by Vikram Bakshi owns and operates the Northern operations.

BRANDING

McDonald's is an example of brand franchising.Being their own boss in return, the franchisee agrees to operate the restaurant in accordance with McDonald's standards of quality, service, cleanliness and value. The cooking processes in McDonald's restaurants are broken down into small, repetitive tasks, enabling the staff to become highly efficient and adept in all tasks. There is no need to develop the product or do expensive market research.

It begins with working in a restaurant, wearing the staff uniform and learning everything from cooking and preparing food to serving customers and cleaning.

It recognises that the success and profitability of McDonald's is inextricably linked to the success of the franchises. Benefit from national marketing carried out by McDonald's A brand is a name, term, sign, symbol or design, (or a combination of these) which identifies one organisation's products from those of its competitors.

CONSUMER BEHAVIOUR ASPECT

Marketers need in-depth knowledge about the various dimensions which link consumer behavior. There is research required to find out the eating habits of people in a competitive context. McDonalds found that a major chunk of its consumers decide to eat a few minutes before they make the purchase decisions and hence it is building small outlets in large supermarkets such as Wal-Mart and Home Depot. It is providing play areas to ensure a number of families visit its outlets with children.

INDIAN MARKET- OVERVIEW

You can never penetrate the Indian market without making an effort to understand the countrys culture and mindset, Although fast food is ingrained in the culinary culture of India, the passage of time has not really resulted in any sort of evolution in the manner in which our traditional fast-foods are prepared or served. Its still very much a cottage industry with street vendors accounting for almost all the sales. One cannot imagine a day when the street-side vada pav, chaat or sendvitch stall in our cities will disappear. Its such an integral part of who we are as Indians. .

TARGET MARKET SEGMENT

Segmentation strategy: The segmentation strategy of McDonalds can be discussed under the following heads. Geography: Geographically McDonalds seem to have categorized the entire Indian market as urban and rural markets. As a strategy for entering the Indian market McDonalds appear to have adopted the segmentation at the micro level, by directing the entire focus towards only urban market. McDonalds India as of today caters only to the urban population in India. There could be several reasons for this, like the rural eating habits, their affordability and traditional approach towards food. Demography: Demographically the McDonalds appears to have segmented its market on the following parameters.

Income level: in a market like India where a significant proportion of Indias population lies in the lower income bracket, the price of the products becomes very critical. Now the challenge was to provide quality products at prices affordable to urban masses. The pricing of the products is done keeping in mind the wants of the middle class and the upper middle class, the income category which has grown at a very significant pace over the past few years. For example, the chain has a product called Mc Aloo tikki costing Rs:20/, which caters mainly to the student community whose pockets are not broad enough Age: The earlier strategy of the McDonalds was to segment the market on the basis of the age, by catering mainly to the kids and youth. However, now they are trying to blur this segmentation and focus on the all age groups. Family: McDonalds is now targeting the entire family by offering various incentives packed product schemes like family meals at a very competitive price

Psychographical A parent with two children Visits McDonalds to give thechildren a treat. Children Want to visit McDonalds as it is a fun place to eat. A business customer Visits McDonalds during the day as service is quick, the food tastes great and can be eaten in the car without affecting a busy work schedule. Teenagers Are attracted by the Saver

BEHAVIOURAL

Occasions: Under this segmentation the McDonalds has classified customers on the basis of the frequency of their visits, into regular and occasional customers. Now, to maximise the cluster of regular customers they are coming up with ad lines like BAHAANA KYA HAI so that the customers dont look for a special occasion to visit the outlet. Current position in the Indian market: However in spite of adopting all of the above segmentation and marketing strategies hard realities do exists.Nine years after the big mac first set up in India, the burger gaint has yet to make a rupee as net profit. It hopes to break even in a year or two. In India a Mac store typically takes between 5 to 7 years to break even. Part of the reason for its long break even period has to do with the investments required per store in terms of equipment and infrastructure. Much of the process control equipment that allows Mac to dish out burgers and other orders within its super fast time has to be imported.

ESSENCE OF MARKETING

Functional

Product

POSITIONING

Positioning In adapting the General Market positioning of Americas favorite fries for the Hispanic customer, it was determined to stress not only the irresistibility and superiority of McDonalds fries (They are the best anywhere, you cant resist them), but to add an element of family inclusivity; to stress that they are everyones favorite: Favored by big ones (adults) and little ones (kids). McDonalds wanted to revitalize the perceived superiority of their world famous fries while simultaneously blunting aggressive competitive efforts by Burger King. [Burger King had just begun market testing new and improved French fries.] To help accomplish this, McDonalds decided to use their partnership with the NBA as the strategic platform for a special fries advertising effort. As such, the positioning in the General Market evolved to Americas favorite Guys enjoy Americas favorite fries!

MCDONALDS PRICING STRATEGY

A look at McDonalds menu indicates that Co. has targeted mass market in India .All or most of the products have been priced in such a way that average Indian consumer can afford to enjoy fast food with family .This strategy has been dictated by the

Vegetarian Rs. Happy Meal 55/70/93 McAloo Tikki 20.00 McVeggie 39.50 Paneer Salsa Wrap 49.50 Non Vegetarian Happy Meal 70/93 Chicken McGrill 20.00 Filet-O-Fish 53.00 Chicken Maharaja Mac Starters Veg Pizza McPuff 20.00 Large Fries 38.50 Others

63.00

McShakes 28/39/50.50 Condiment/Topping 5.50 Economy Treat (Burger & Fries) For 2 109.00 For 4 199.00 Family Value Meal Burgers, Fries, Happy Meal and Small Coke 199.00

McDonalds pricing strategy can be further analyzed under following heads:

Product Line Pricing: McDonalds offers a range of products and pricing reflects the benefits of the range. So one can order just a Coke or a Coke with a Burger at additional price.
Product Bundle Pricing: McDonalds combines several products in the same package .For example one can buy a McAloo Tikki alone or one can exercise various other options which give the customer a range of products in a single basket. Promotional Pricing: Discounting a combination of products as one product is also a strategy which McDonalds follows. McDonalds clubs three or four products together as one and price of this new one will be lesser than the sum total of individual product. Value Pricing: McDonalds has realized that Indian market is a price conscious market and this has forced McDonalds to provide value products. Examples are economy meal and value meal served by McDonalds in India.

PROMOTION AND COMMUNICATION STRATEGIES

Promotion is a key ingredient in marketing campaigns, consisting of diverse collection of incentive tools, mostly short term, design to stimulate quicker or greater purchase of particular product or services by consumer.

Communication is a means to convey the message to the consumers. The consumer tends to remember just one thing from any communication about the product -- one strong claim, or one strong concept. Unique communications that are simple enough to make a connection with the consumers create excitement about your brand. Strong communication concepts are the foundation for success of a product. In an environment of ever increasing clutter, the message can't afford to go unnoticed. "A strong product concept along with a commitment to establish your brand through good communication" generates positive attention and that's crucial to succeed in the marketplace.

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