Introduction

McDonalds is the Eighth Most Poweful Brand in the ----Source: Millward Brown Optimor (including data World.
from brandz, Datamonitor, and Bloomberg)

Total Revenue for 2006-07 was $740.2 million. Estimated CAGR of 40 percent. Rs 400 crore being put in for expansion plans into Tier II cities within next three years.

Doubling of turnover within three years.

Market share of 18 percent in north India.(includes restaurants, cafes, fast food joints, local vendors etc.)

Brief History
McDonald's was started as a drive-in restaurant by two brothers, Richard and Maurice McDonald in California, US in the year 1937. By mid-1950s, the restaurant's revenues had reached $350,000.

Ray Kroc, distributor for milkshake machines, expressed interest in the business, and he finalized a deal for franchising with the McDonald brothers in 1954.
He established a franchising company, the McDonald System Inc. and appointed franchisees.

In 1961, he bought out the McDonald brothers' share for $2.7 million and changed the name of the company to McDonald's Corporation. In 1965, McDonald's went public

McDonalds Vision, Mission and Value

Vision To be the best & leading fast food providers around the globe Mission To be the world's best quick service restaurant experience. Being the best means providing outstanding quality, service, cleanliness, and value, so that we make every customer in every restaurant smile." Values Our values summarized in Q.S.C & V. Provide good quality, services to customer . Have cleanliness environment when customer enjoys their meal .The value of food product makes every customer is smiling.

McDonalds - PROGRAMME

Every customer has some expectation from fast food restaurants and the restaurants try to make their environment according to their expectation. MCDONALDS has a programmer of CHAMPS, which are the six expectations of costumers from fast food restaurants. C ----- Cleanliness.
H ----- Hospitality. A ----- Accuracy. M ---- Maintains of facility. P ---Product quality. S ---- Speed of Services

McDonalds - PRODUCTS all over the WORLD

Some of the world-wide sold Products are :BURGER. Such as big Mac is the most important product of Mc Donalds menu some other important type of burger, are flag ship burger, hamburger and cheese burger etc. Mc Donalds is also providing chicken, fish and pork sand witches. CHICKEN MC NUGGETS. They are introduced in 1983, these are small chicken chunks served with a dipping sauce available in 4,6,10,20 pieces they are made by white chicken strips introduced in 1955 for a limited time and offer again in 2003.

McDonalds - PRODUCTS all over the WORLD (contd.)

OTHER PRODUCTS :
Fish Mac dipper. , Mc Rib. , Mc Muffins (for break fast) , Biscuits cookies , Beverages. --Mc Donalds primary soft drinks supplies is coco Cola Company Mc Donalds is offering also -Cold and hot iced coffee. -Hot and iced tea. -Hot chocolate. -Various juices. -Milk shakes. -Ice cream & Desserts

McDonalds In India
In 1996, first McDonalds restaurant opened on Oct. 13, at Basant Lok, Vasant Vihar, New Delhi. McDonald's India is a 50 50 JV partnership between McDonalds Corporation (U.S.A) and two Indian businessman Amit Jatia (Hardcastle Restaurants Private Limited, Mumbai) and Vikram Bakshi (Connaught Plaza Restaurants Private Limited, Delhi). Approximately 75% of the menu available in McDonalds in India is Indianized and specifically designed to woo Indian customers.

Marketing Mix

Marketing Mix

Advertising

Promotion
Promotional Mix

Public Relation

Sales Promotion

Personal Selling

Reconnecting with customers

throcontemporary global marketing direction ,

Direct Mail

Internet/ E-Commerce

Im loving it

Marketing Mix

Place Direct Distribution Indirect Distribution

Manufacturer Manufacturer Retailer

Consumer

Consumer

Product

Our clear strategy is to bring the customers in initially and provide a range of entry-level products so that they can try new items and graduate to the higher rungs. --Vikram Bakshi, Managing Director,

Product Mix

Product Mix

Veg Menu
McVeggie McAloo Tikki Paneer Salsa Wrap Crispy Chinese Veg McCurry Pan Pizza McPuff

Non-Veg Menu
Chicken Maharaja Mac McChicken Fiet-O-Fish Chicken Mexican Wrap Chicken McGrill

Beverages
Cold Coffee Ice Tea Soft Drinks Mc Shakes Hot Serves

Frozen Deserts
Soft Serve Cone Mc Swirl Soft Serve Flavor Burst Floats

Veg Menu

Non-Veg Menu

Pricing

Initial focus on metros Mumbai and Delhi.

Relatively high income.

Move to smaller satellite towns.(Gurgaon and Pune)

Jaipur and Agra to attract foreign tourists.

Pricing Strategy

Value Ladder strategy :a) Started offering value meals in a range of prices. b) Ensure affordability and attract widest section of customers. c) Brought the customer and provided a range of entrylevel products. d) Try those new items and graduate to higher-rungs. e) E.g- if a customer starts with McAloo Tikki, he will finally graduate to McVeggie and so in Non veg. f) Helped its Volume business.

g) AAP KE ZAMANEY MEIN BAAP KE ZAMANE KE DAAM

Competitive Pricing
Food items
Burgers & Pizzas Combo Meals Beverages

McD
Rs 20- Rs 70 Rs 49-Rs 119 Rs 25- Rs 50 Small300ml Rs 12-Rs 25

SUBWAY
Rs 65- Rs 135 Rs 45- Rs 175 Rs 35- Rs 45 Small300ml Rs 20-Rs 50

KFC
Rs 25 Rs175 Rs 55-Rs 150 Rs 30-Rs 55 Small300ml Rs 15-Rs 65

PIZZAHUT
Rs 55- Rs 175 (regular) Rs 120- Rs 250 Pet beverage MRP (600 ml) Rs 40- Rs 60

DOMINO S
Rs 35- Rs 140 (regular) Rs 120- Rs 230 Rs 30 (600 ml)

Desserts

Rs 25 (100ml cup of Baskin Robbins)

SWOT Analysis

Strengths
Strong Brand name, Image and Reputation Strong Global Presence Large Market Share

Proven Production method and countless innovation Strong financial performance and position

Strong distribution network Customer focus

Weaknesses

Unhealthy food image High employee turnover

Cut throat competition Legal cases in no. of countries

Lack of product offerings Fluctuation in operating profits and net profits

Opportunities

Change in consumer consumption across the global Embracement of fast food product as any other normal food product

Growth of fast food industry

Low cost menu that will attract customer Expansion of menu to meet healthier consumer preference

Threats

More health conscious consumer A fierce campaign against the McDonalds by health professional and consumer activist

Growing strength of competition ranging domestic companies to foreign players

Heavy investment on promotional campaign

Challenges in Indian Market:

Political Cultural/ Social Distribution (Supply chain management).

Political scenario
Worlds largest democracy Fairly stable governments Armed Forces- Neutral Bureaucratic red tape omnipresent

Political challenges
Health and safety guidelines: weight gain, elevate diabetes risk Ecological/ environmental issues:
Largest consumer of paper Food packaging litters roadways, clogs landfills

Home pressure market groups International pressure groups- regulations increasing

Legal Cases
October 16th- World Anti McDonalds day French fries not 100% vegetarian-contained beef products which is sacred in India Promoting obesity by targeting ads towards kids On cruelty against animals On labor and union laws Coffee too hot and hence caused third degree burns to a woman who accidentally spilled it

Environmental Issues
Destruction of tropical forests for cattle ranching. Is their record on recycling and recycled products as green as they make out?

Distribution challenge
Challenges faced by Mc Donalds while entering in India were: Socially and geographically diverse. Bad roads and basic infrastructure bottlenecks. Power situation even in metros Deliver the lowest cost with the highest quality Maintaining McDonald's "cold, clean, on-time" delivery standards in India.

How to overcome these challenges ?

McDonalds infused Rs 400 Crore to set up its delivery mechanism before entering in India. McDonalds, an international brand which was trying to make inroads into the country, developed its Indian partners in such a manner that they stayed with the company from the beginning. McDonalds distribution centres in India came in the following order: Noida and Kalamboli (Mumbai) in 1996, Bangalore in 2004, and the latest one in Kolkata (2007). McDonalds tied up with various suppliers and distributors in India.

Radhakrishna Foodland Private Limited (RFPL)

In 1996, when McDonald's entered India, it was looking for a distribution agent who would act as a hub for all its vendors. The association goes back to July 1993, when it studied the nuances of McDonald's operations and requirements for the Indian market. RFPL stored the products in controlled conditions in Mumbai and New Delhi and supplied them to McDonald's outlets on a daily basis. . FJ Walker of Australia, a McDonald's partner, helped RFPL build a cold storage in Thane, Another cold storage with equipment worth about Rs.75 lakh was built in Delhi in 1998. RFPL also handled.

AFL Logistics Ltd (ALL), a joint venture between and Coughlin of the US, and RFPL was responsible for ensuring these standards. RFPL also handled McDonald's inventory management. RFPL also handled in-city distribution to restaurants. RFPL also ensure that the integrity of the product is maintained throughout the cold chain. Cold Chain was one of the unique concepts of McDonalds supply chain in India, on which it had spent more than six years to get the system into place.

The following list of suppliers, who build up the major supply chain of McDonalds
Dynamix Dairy Industries (Supplier of Cheese) Trikaya Agriculture (Supplier of Iceberg Lettuce)

Vista Processed Foods Pvt. Ltd. (Supplier of Chicken and Vegetable range of products including Fruit Pies)
Amrit Food (Supplier of long life UHT Milk and Milk Products for Frozen Desserts)

Other suppliers
Cheese Dehydrated onions Iceberg lettuce Chicken patty Veg. Patty, Veg. nuggets, Pineapple/Apple pie Chicken (dressed) Buns Eggless mayonnaise Sesame seeds Iceberg lettuce Fish fillet patties Iceberg lettuce Dynamix Dairy Industries Ltd., Pune Jain Foods, Jalgaon Trikaya Agriculture, Pune Vista Foods, Taloja Kitran Foods, Taloja Riverdale, Talegaon Cremica Industries, Phillaur Quaker Cremica Pvt. Ltd., Phillaur Ghaziabad Meena Agritech, Delhi Amalgam Foods Ltd., Kochi. Ooty Farms & Orchards, Ooty Finns Frozen Foods & Jain Foods (Nasik, Jalgaon) Al Kabeer, Hyderabad

Vegetables for the patties

Mutton and mutton patties

 McDonald's philosophy had been 'one world, one burger' i.e. the McDonald's burger should be consistent in terms of cost and quality throughout the world. To ensure this, all of McDonald's suppliers followed the internationally acclaimed HACCP systems wherein both inputs and finished goods were subjected to chemical and microbiological tests. The relationship between McDonald's and its Indian suppliers is mutually beneficial.