PRESENTED BY:-

ANKIT GUPTANAUSHAD ANSARIRAMU

Globalization Of MC DONALDS

MC DONALDSThis is a timeline of the history of McDonald's.

Type Public (NYSE: MCD)

Founded

May 15, 1940 in San Bernardino, California;McDonald's Corporation, 1955 in Des Plaines, Illinois

Founder(s)

Dick and Mac McDonald McDonald's restaurant concept;Ray Kroc, McDonald's Corporation founder.

Headquarters Oak Brook, Illinois, USANumber of locations 31,000+ worldwideArea served Worldwide

Key peopleJames A. Skinner(Chairman) & (CEO)

Industry Restaurants

Products

Fast food(hamburgers • chicken • french fries • soft drinks • coffee • milkshakes • salads • desserts • breakfast)

Revenue ▲ US$ 22.6 billion (FY 2008)

Operating income ▲ US$ 6.51 billion (FY 2008)

Net income ▲ US$ 4.31 billion (FY 2008)

Total assets ▲ US$ 29.2 billion (Q2 2009)

Total equity ▲ US$ 13.2 billion (Q2 2009)

Employees 400,000 (2008)

Website McDonalds.com

A view of headquarters of MC DONALDS

To make global presence world wide McDonald used slogans and jingles for different countries to promote its restaurants and make its image in the mind of prospective minds.

McDonald's has for decades maintained an extensive advertising campaign. In addition to the usual media (television, radio, and newspaper), the company makes significant use of billboards and signage, sponsors sporting events ranging from Little League to the Olympic Games.

Nonetheless, television has always played a central role in the company's advertising strategy.

Advertising

“I'm Lovin' it!”is a famous slogan used by the company in mostly all major countries .But in spite of it has some different one’s for some other countries. Here is a list of some major countries using different slogans. PhilippinesLove ko 'to(I love this)South AfricaMake every day a McDonald's dayUKThere's a McDonald's for everyoneUSWhat we're made of BrazilI really love all this.TurkeyThis is what I love.ChileI love all that.China, Taiwan, Singapore, MalaysiaI just like

Slogan

Franchise Model- Only 15% of total number of restaurants are owned by the company. The remaining 85% are operated by franchises. The company follow the comprehensive framework of training and monitoring of its franchises to ensure that they adhere to the Quality, Service, Cleanliness and Value Propositions offered by the company to its customers.

Product Consistency- By developing a sophisticated supplier network and distribution system the company is able to achieve consistent product taste and quality across geographies.

Business Model

Human Resources Management in McDonald’s

To make a globalize presence Mc Donald's not only concentrated on the product but as we know service industry is dependent on the services to the customer for that company not only have well designed grooming program for their employees but also motivate employees by different ways. When asked how they motivate employees, both managers at restaurant and senior management level stressed the importance of good communication.

Managers are encouraged to apply and concentrate on “motivators”, 'achievement', 'responsibility', 'growth' and 'recognition'. This may take the form of 'employee of the month' awards, day trips and cash bonuses or of encouraging workers to strive for promotion and take on responsibility.

Globalization Strategy of Mc Donald's

1- Investing their time doing marketing research, to find the best places to put a restaurant in different countries.

2- Finding out what it is that people like to eat in different countries and in different regions.

3- McDonald’s has place an extreme focus on their food selection, to not upset or offend any religion in particular and made menu according to preferences of particular countries.

4- The environmental factors which are under macro and micro environment directly or indirectly impacting McDonalds are efficiently solved by the company.

THE 7 P's Of Mc DONALDS'PRODUCT: Mc Donald’s product portfolio primarily comprises of vegetarian and non-vegetarian burgers. Mc Donald's also provides mean combos with medium fries and medium soft drink, happy meal with small soft drink, econo meals with small soft drink and value meals with potato wedges and small soft drink.PRICE: Mc Donalds vegetarian burgers are priced between Rs 20 and Rs 48. Wrap paneer salsa is priced at Rs 45-50. The non vegetarian burgers are priced between Rs 30 and Rs 60. Wrap chicken Mexican is priced at Rs 55. Medium French fries are priced at Rs 28, potato wedges at Rs 20, soft serves at Rs 35, mc swirl at Rs 12, medium soft drinks at Rs 20 and medium shakes at Rs 45 in India.PROMOTION: At Mc Donald's the prime focus is on targeting children. In happy meals too which are targeted at children small toys are given along with the meal. Apart from this, various schemes for winning prices by way of lucky draws and also scratch cards are given when an order is placed on the various mean combos.

PLACE: Mc Donals’ outlets are very evenly spread but Mc Donalds does not offer home delivery but its outlets are very readily accessible. Mc Donalds also offers take away drive through facilities.

PEOPLE : The employees in Mc Donalds have a standard uniform and Mc Donalds specially focuses on friendly and prompt service to its customers from their employees.

PROCESS: The food manufacturing process at Mc Donalds is completely transparent i.e. the whole process is visible to the customers. In fact, the fast food joint allows its customers to view and judge the hygienic standards at Mc Donalds by allowing them to enter the area where the process takes place. The customers are invited to check the ingredients used in food.

PHYSICAL EVIDENCE: Mc Donalds focuses on clean and hygienic interiors of is outlets and at the same time the interiors are attractive and the fast food joint maintains a proper decorum at its joints.

• Product Variation: Variety in products ranging from Burgers to softies

• McDonalds continuously innovates its products

• Product Innovation: Adapting to Indian conditions creating the “CHIKEN MAHARAJA”

• Product Elimination: Removal of Beef flavored products

Menu: Veg, Non Veg, Frozen Desserts, Beverages

Successes: Fries, Happy Meal, Big Mac, paneer wrap , Pizza McPuffFailures:, Fajita, Carrot Sticks, McLean, and the Arch Deluxe

4P Analysis in India Product

Price

•Pricing includes the list of prices & discount available

•The most important part of marketing mix

•Price determines profit of the product

•Special offer such as happy meal ,Value meal Combo meal

Place

• McDonald's has opened its door in India in October 1996 since then its has open his restaurants in all the major cities like Mumbai, Delhi,Ahemdabad and many more

•Fully owned outlets :- Directly selling from McDonalds

•Franchise owned outlets that does selling from different places

•McDonald's mainly consists of the distribution channels the product is available to the customer at the right place, at the right time and in the right quantity

•Offers hygienic environment good ambience and great service

•Started giving internet facilities

•Areas for children where they can play and enjoy with their Family and friends

•Spend some quality time together

Promotion

Individual communication - Word of mouth, peer group

Mass communication – Advertisements and child amusement activities at outlets, drives and campaigns

Free distribution of children toys. With every happy meal

Some of the most famous marketing campaigns of McDonald’s are:

“You Deserve a break today, so get up and get away- To McDonald’s”

“Aap ke zamane mein ,baap ke zamane ke daam”.

“Food, Folks, and Fun”

“I’m loving it”.

Segmentation Demographically :- 1]Cater to kids 2] youth 3]Urban upper & Middle class families.

Geographically :- 1]Mostly in urban towns and cities 2]Now opening in 2 and 3 tiers cities 3]Mostly situated in malls having independent franchises

Psychographic:- 1]Place to chill out with friends and families 2]Place for enjoyment of the kids

TARGET MATKETS• Initial focus on Metros, Malls, Multiplex, Highways, Stations &

Airports.• Exposure to Western food & Culture.• Move to smaller satellite towns like Gurgaon, Pune.• Jaipur & Agra to attract foreign tourists..• Relatively High Income Groups.

POSITIONING• MacDonald mein hain kuch baat -a place for an entire family to enjoy.• To aaj Mc Donald’s ho jaye.• Mac Donald I’m lovin it.

DIFFERTATION• Highlighting Brand, Food & Variety.

TARGETING POSITIONIG DIFFERENTATION

SWOT ANALYSIS

PLEASE ADD UR POINTS STRENGHTS•Strong brand recognition•Strongest International Presence•Customer Intimacy•Product innovation•Supply Chain

OPPORTUNITIES•Expand into Tier1 and Tier 2 cities•Entry into breakfast category•Acquisition of other restaurants

WEAKNESS•Low depth and width of product•High overall costs than rivals

THREATS•Changing customer lifestyle•Increase in competition

McDonalds Jumbo King Pizza hut

Mc Aloo Tikki - 20 Regular Vada Pav - 7 Simple Veg pizza-195

Mc Veggie - 45 Brown Bread Vada Pav-10 Veggie Supreme -345

Mac Chiken Maharaja-99 Butter Vada Pav - 10 Chicken Supreme-360

Value Meal - Chollee vada Pav - 13 Garlic bread platter-90

Happy Meal- Cheese Vada Pav - 16 Soup’s-45 to 80

French fries-38 Schezwan vada pav - 15 Pasta’s-110

Cold Coffee-39 Lassi - 10 Pepsi/7up/Mirinda -40

Iced tea - 25 Mango Lassi - 15 Pizza hut –Royale-80

Soft Serve - 20 Pepsi - 10 Almond Praline-45

COMPETITORS ANALYSIS

McDonald’s the Future..!!McDonald’s has built his strength in strong brand Customer intimacy Product innovation & Supplier integration

It has its independent franchisee models in 2 tiers & 3 tiers cities i.e. Pune, Jaipur and many more

McDonald’s undertakes expansion; plans 40 new stores at Rs 150 cr investment in 2009

Coming up with new schemes that suits to every pocket

Mc-delivery has been started so everyone can be at home and enjoy McDonald's food

BYE BYE SEE YOU AT McDonald's