Team 11

Presenters: Sahil AnandSakshi Joshi

Vidhu JainMansi Dua

Niketa DattaNadira Feroz

Saurabh DhawanVarun Dhingra

About McDonald's

In The Beginning…

• Began by two Brothers:

Dick McDonald

Mac McDonald• Started off as a Hot Dog Stand in CA(1937)

• Hot Dog Stand moves to Rt.66 and becomes a Hamburger Joint

- Offers 25 Menu items

- Becomes car hop

- Highly profitable teen hang-out

1st

McDonald’s

Hamburger

Cost $.15

• Brothers realize Burgers were most profitable

• Close down restaurant and reopen as a “Speedy Service System”– Offer only burgers, shakes, and fries

• McDonald’s is franchised to several locations[1953]– First McDonald’s to feature the Golden Arches

• Ray Kroc discovers McDonald’s [1954]– Creates “McDonald’s System’s Inc” to start franchising [1955]

– Renamed to “McDonald’s Corporation” [1960]

Contd…

World wide strategies

Best employer Operational Excellence Continue to grow and be profitable

- Innovation - Leadership Marketing

Indian Market

India – Entry Strategy

Product Adaptation – The Indian Challenge

Marketing Analysis4 P’s Analysis

$Produ

ct

• Wide variety of menu items - veg and non-veg

product- health-conscious items

• Local flavors

• Variety of product offering

4 P’s Analysis

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Marketing Analysis

Promotion

• I’m lovin’ it campaign to attract family

• Feature artists to target teenagers

• Advertising through media

4 P’s Analysis

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Marketing Analysis

Place

• 31,000 stores worldwide

• About 230 outlets in India

• Mainly focuses in north and west India

• Distribution channel

• Operations- Company-owned- Franchise

4 P’s Analysis

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Marketing Analysis

Price

• Traditionally - value-pricing as competitive weapon

• Now, offer products at range of price points

- attract both price-sensitive and health-conscious consumers

Planned Growth Strategy

Execute planned growth strategy to capitalize opportunitieswithout foregoing a Healthy Franchisor-Franchisee Relationship

STRATEGY

•Slow Expansion

• Focus on Same Store - Sales Growth and Improving Delivery Outlets

• High Growth

• Aggressive ‘Planned’ Expansion - to avoid conflict with current franchisee and future franchisees

Target Markets

Growth Strategies

Reasons for Failure

Benefits from Franchisee Involvement

• For McDonald’s:

-Understand where its franchise management is lacking

-Get Ideas for Future Initiatives

-Enhance Future Franchise Management

Can Thrive even under high pressure/competitive environment

• For McDonald’s Franchisee:

-Attain ability to carry out franchisor’s initiatives

-Improve commitment levels

Conclusion

F

Corporate Policies and Initiatives

Success of Implementation

Depends on Franchisees

F F

McDonald’s Focus Marketing. Product

Innovations

Enhanced Relationship

Mutual Understanding and Raised

Commitment Levels

Turning Initiatives into Successes

Franchise able and willing to Deliver

Initiatives in consistent manners