Macd Final Project....Edited

8/4/2019 Macd Final Project....Edited

1/24

1 | P a g e

THE PROJECT STUDY ON STRATEGIC MANAGEMENT OF

Mc Donalds India LTD.


2/24

2 |P a g e

Project one by:-

Kun l Chitin . Rn-40

Vikshit G l . rn-46

Vinit Chavan. rn-48

Abhishek Kedar. rn-51

Aditya Iyer. rn- 53

Devesh Nair. Rn-58


3/24

3|P a g e

Disclaimer:-

This project has been done under the guidance of Navkar sir.

And the help of Sr. Dept Manager of McDonalds outlet in

Mulund Mr.Shashank Hariharan and the all the staff of this

outlet. We are grateful for their co-ordinance.


4/24

4|P a g e

Index:-

y McDonalds story

y Business model

y McDonalds inIndia

y Challenges in enteringIndia

y Segmentation,targeting and

Positioning

y Marketing (5 ps)

y McDonalds Experience

y Competitors analysis

y SW analysis

y Findings and learnings

y

Co

nclusio

n

y bibliography


5/24

5|P a g e

The McDonalds Story :-

The story of McDonalds started in 1954, when its founder Raymond

Kroc saw a hamburger stand in San Bernardino, California andenvisioned a nationwide fast food chain. Kroc proved himself as a

pioneer who revolutionized the American restaurant industry. TodayMcDonalds is the worlds largest fast food chain serving 47 millioncustomers daily. McDonalds is now one of the most valuable brands

globally, worth more than $25 billion. The Golden Arches and itsmascot Ronald McDonald have gained universal recognition. Thoughthe company has roots in the US, McDonalds today has become anaccepted citizen of the world.

Business Model:-

Franchise ModelOnly 15% of the total number of restaurants areowned by theCompany. The remaining 85% is operated byfranchisees. The company follows acomprehensive framework oftraining and monitoring of its franchises to ensure thatthey adhere to

the Quality, Service, Cleanliness and Value propositions offered bythe company to its customers.

Product Consistency By developing a sophisticated suppliernetworked operationand distribution system, the company has beenable to achieve consistent product tasteand quality across

geographies.

Act like a retailer and think like a brand McDonalds focuses notonly on delivering sales for the immediate present, but also protecting

its long term brand reputation.


6/24

6|P a g e

Vision and mission statements:-

Vision statement: The vision statement for McDonalds issimply, to continue to be the largest fast food chain in the world.

Mission statement:"McDonald's vision is to be the world's

best quick service restaurant experience. Being the best meansproviding outstanding quality, service, cleanliness, and value, so thatwe make every customer in every restaurant smile."

McDonalds inIndia:-

McDonalds entered India in 1996. McDonalds India has a joint

venture with Connaught Plaza Restaurants and Hard CastleRestaurants. Connaught Plaza Restaurants manages operations inNorth India whereas Hard Castle Restaurants operates restaurants in

Western India. Apart from opening outlets in the major metros, thecompany is now expanding to Tier 2 cities like Pune and Jaipur.

Challenges in EnteringIndianMarkets:-

y Regiocentricism: Re-engineering the menu - McDonalds hascontinually adapted to the customers tastes, value systems,

lifestyle, language and perception. Globally McDonalds wasknown for its hamburgers, beef and pork burgers. Most Indiansare barred by religion not to consume beef or pork. To survive,the company had to be responsive to the Indian sensitivities. SoMcDonalds came up with chicken, lamb and fish burgers tosuite the Indian palate.

y The vegetarian customer India has a huge population ofvegetarians. To cater to this customer segment, the companycame up with a completely new line of vegetarian items likeMcVeggie burger and McAlooTikki. The separation of


7/24

7 | P a g e

veget i veget i ecti i i t i edt ghoutthe various stages.

Segmen a ion, Targe ing and Posi ioning:-

McDonalds uses demographic segmentation strategy with age as theparameter. The main target segments are children, youth and theyoung urban family.

Forthis, they have a tie-up with Walt Disney. At several outlets, italso provides special facilities li e Pl Pl where children canplay arcade games, air hockey, etc. This strategy is aimed at makingMcDonalds a fun place to eat. This also helps McDonalds to attractthe young urban families wanting to spend some quality time whiletheir children have fun atthe outlet. To targetthe teenagers,


8/24

8|P a g e

McDonalds has priced several products aggressively, keeping inmind the price sensitivity of this target customer. In addition, facilitieslike Wi-Fi are also provided to attract students to the outlets like theone at in Mumbai.

Mc Donald s mein hai kuch baatprojects McDonalds as a placefor the whole family to enjoy. When McDonalds entered in India itwas mainly perceived as targeting the urban upper class people.

Today it positions itself as an affordable place to eat withoutcompromising on the quality of food, service and hygiene. The outlet

ambience and mild background music highlight the comfort thatMcDonalds promises in slogans like Youdeserve a Break today& Feed your inner child. This commitment of quality of food andservice in a clean, hygienic and relaxing atmosphere has ensured that

McDonalds maintains a positive relationship with the customers.

McDonalds MarketingMix (5 Ps):-

After segmenting the market, finding the target segment andpositioning itself, each company needs to come up with an offer. The5 Ps used by McDonalds are:

1. Product2. Place

3. Price4. Promotion

5. People


9/24

9 | P a g e

Product: How should the company desi n, manufacture the

product so that it enhances the customer experience?

Productis the physical product or service offered to the consumer.Productincludes certain aspects such as packaging, guarantee, looksetc. This includes both the tangible and the non tangible aspects oftheproduct and service.McDonalds has intentionally keptits product depth and productwidth limited. McDonalds studied the behaviour ofthe Indian

customer and provided a totally different menu as compared to itsInternational offering. It dropped ham, beef and mutton burgers fromthe menu. India is the only country where McDonalds servevegetarian menu. Even the sauces and cheese used in India are 100%vegetarian. McDonalds continuously innovates itsproducts


10/24

10|P a g e

according to the changing preferences and tastes of its customers. Therecent example is the introduction of the FILET-O-FISH.

Place: Where should be the product be available and the role of

distribution channels?

The place mainly consists of the distribution channels. It is important

so that the product is available to the customer at the right place, atthe right time and in the right quantity.

Nearly 50% of U.S.A is within a 3 minute drive from a McDonalds

outlet.There is a certain degree of fun and happiness that a customer feelseach time he dines atMcDonalds. There are certain value propositions that McDonaldsoffer to its customers based on their needs. McDonalds offershygienic environment, good ambience and greatservice. Now

McDonalds have also started giving internet facility at their centresand they have been playing music through radio instead of thenormal music. There are certain dedicated areas for children where

they can play while their parents can have some quality time together.


11/24

11 | P a g e

Price: What should be the pricing strategy?

Pricing includes the list price, the discount functions available, thefinancing options available etc. It should also take into the

consideration the probable reaction from the competitorto the pricingstrategy. This is the mostimportant part ofthe marketing mi as thisis the only part which generates revenue. Allthe otherthree areexpenses incurred. The price musttake into consideration theappropriate demand-supply equation.McDonalds came up with a very catchy punch line ap ke zamanemein ,baap ke zamane ke daam. This was to attractthe middle andlower class consumers and the effect canclearly be seen in theconsumer base McDonalds has now.

McDonalds has certain value pricing and bundling strategies suchas happy meal, combo meal, family mealetc to increase overallsales volumes.


12/24

12 | P a g e

Promotion: What is the suitable strategy and channels for

promotion of the product?

The various promotion channels being used by McDonalds toeffectively communicate the productinformation are given above. Aclear understanding ofthe customer value helps decide whetherthecost of promotion is worth spending.There are three main objectives of advertising forMcDonalds are tomake people aware of an item, feel positive aboutit and rememberit.The right messagehas to be communicatedto the right audiencethrough the right media. McDonalds does its promotion throughtelevision, hoardings and bus shelters. They use print ads and thetelevision programmes arealso an important marketing medium forpromotion.

Some ofthe most famous marketing campaigns ofMcDonalds are:You Deserve a breaktoday, so get up and get away- ToMcDonalds

Aap ke zamane mein ,baap ke zamane ke daam.Food, Folks, and FunIm loving it.


13/24

13|P a g e

People: How to converge the benefits of internal and external

marketing?McDonalds understands the value of both its employees and itscustomers. It understands the fact that a happy employee can servewell and result in a happy customer.

McDonald continuously does Internal Marketing. This is importantas it must precede external marketing. This includes hiring, trainingand motivating able employees. This way they serve customers well

and the final result is a happy customer.

The punch line Im loving it is an attempt to show that theemployees are loving their work at McDonalds and will love to servethe customers.


14/24

14|P a g e

The McDonalds Experience:-

Marketing in a services industry is becoming an increasingly complexchallenge. The paradigms of service marketing demand a passionate

understanding of customer expectations and perceptions, and linkingthem to product design & delivery as well as operational planning.

This is where McDonalds has excelled due to its ability tosuccessfully integrate the customers perspective in its products andoperations in a comprehensive manner. The revamped menu in India

is an example of McDonalds strategy of integrating the customers

perspective in its products. And, the operational integration is evidentfrom McDonalds emphasis on its suppliers as its customers as well asits treatment of its consumers as co-producers of services.The ultimate aim of Service Marketing is not just to become a ServiceLeader but to create a Service Brand. The Service Delivery Process isthe key to achieving this aim of Service Marketing.

McDonalds says the every moment they interact with their customers

as moment of truth. Managing these moments of truth is a greatchallenge in Service Marketing especially due to customers

involvement as a co-producer of services (e.g. McDonalds self-service concept wherein the customer not only collects the order butalso cleans the table after consuming the food). However, McDonald's

has been able to create a great experience for its customers byunderstanding the nature of the entire Service Delivery Process andthe various stages in the process that are exposed to the customers.Transparency in the processes at its outlet has helped McDonalds

bring the back office in its outlet at the front so that the customer isable to know the operations and provide feedback on service designimprovements.


15/24

15|P a g e

McDonaldizingthe Suppliers:-

McDonalds has changed the nature of not only the food serviceindustry but also the food processing industry as well. McDonaldsrealized that the battle between fast food chains would increasingly beone of efficiency of supply, lower cost production and greater desireto innovate. It pioneered with innovative and sophisticated fooddistribution and packaging systems when the traditional food

processors were unwilling or unable to supply food items thatMcDonalds demanded. They achieved amazing consistency bydevoting more attention than anyone else to field service and training

at store level. Production was concentrated in huge plants devotedexclusively to McDonalds. McDonalds also started with tiny

suppliers and grew with them displaying great loyalty.Nowhere is the supplier loyalty more evident than in development ofnew, improved products. Some of McDonalds classic food items like

Filet-o-Fish, French Fries, and Chicken Nuggets etc. are results ofsupplier innovation. Interestingly, it took KFC more than three years

before in finally introduced its own version of chicken nuggets. Thussupplier technological expertise had given McDonalds a productwhich was not a mere marketing innovation but a technical one.McDonalds attempted to squeeze labour out of the stores by movingmore preparation back into the processing plant, creating the

opportunity to develop unique products based on suppliersprocessing skills. For the first time, McDonaldssuppliers becamethe focal point of new product development. This converted the fast

food industrys most fragmented distributed system into more

efficient one which helpedMcDonalds reduced its inventory and manages costs effectively.


16/24

16 | P a g e

Imp

or ance of PLC in McDonalds:-

The requirements of customers change overtime and thus the productoffering has to bechanged accordingly. Whatis the fashion todaymay be out of market within few weeks. Thuscontinuous innovationis required.

To counterthese changes McDonalds has continuously introducednew products and has phased outthe old ones which were atthedecline stage oftheirPLC. The introduction is timed such thatthenew product does not cannibalize the product already in the maturityor growth stage. Thus the secretlies in getting profits with different

products in the different stages ofthe PLC.


17/24

17 | P a g e

A perfec example of revi alising a produc

in decline p ase:-

The French Fries have been an important part ofthe McDonaldsmenu worldwide. But now it was in the stage of decline and wasactually not generating proper return. In an attemptto revitalize it, anew variant was introduced namely Shake Shake Fries. This is beingserved with chatpata spice mix which has resulted in increase in thesales of French Fries and has elevated it from to the decline stage.This is used to delay the decline of a well established product whichhas the potential of generating further revenue.


18/24

18|P a g e

Competitors Analysis:-

McDonalds has been a leading fast-foods outlet in . But the outletunderstudy has other competitors eating away into its market share. Inaddition to its traditional rivalsKFC,

Dominos, Pizza Hutthe firm encounters new challenges. JumboKing competes using a back-to-basics approach of quickly serving up

burgers for time-pressed consumers. On the higher end, the KFC hasbecome potent competitor in the quick service field, taking away

customers from McDonalds. Perhaps in the new environment, fast,convenient service is no longer enough to distinguish the firm. At thistime, a new critical success factor may be emerging: the need tocreate a rich, satisfying experience for consumers. This brings us toservice and experience based competition which McDonalds canuse for competitive advantage against Jumbo King. Keeping in mindthe demographics of the area, McDonalds has Wi-Fi enabled theoutlet to cater to the student community. It is for this overall Food,

Fun & Folks experience that customers pay a premium over the other

competitors.


19/24

19 | P a g e

S OT Analysis:-


20/24

20|P a g e

The Road Ahead:-

y Entry to Tier 2 and Tier 3 cities The main target customer forMcDonalds is the new urban Indian family. With the customerdemographics constantly changing and tectonic social and

cultural shifts being observed in Tier 2 and Tier 3 cities due toglobalization, the company is now expanding to Tier 2 citieslike Pune and Jaipur.

y Rolling out McBreakfast across all outlets In India, thecompany has recently launched its entry into the breakfast foodcategory. This is now launched on a pilot basis on select stores.In Mumbai, it available at the outlet. The company views this

category as a key growth driver in future.


21/24

21|P a g e

Exhibits:-

1. McDonalds Indian Menu

Vegetarian Non vegetarian

Mc veggie Chicken Maharaja Mac

Mc Aloo Tikki Mc Chicken Burger

Paneer Salsa Wrap Shahi Chicken Mc curry

Crispy Chinese Wrap chicken Mexican

Mc curry Pan Filet-o-Fish

Pizza Mc puff


22/24

22 |P a g e

Findings and learnings

y From the above information we can say that McDonalds isa store of STRATEGIES for every new situation they come

up with their own new strategies.

y India is a consumer market, and thats why we can see thatMcDonalds focuses on marketing strategies.

y Also they try innovations in their products when they seedownwards sale graph of their any particular product.


23/24

23|P a g e

Conclusion:-

McDonalds was the first foreign company or a brand to

enter in India to establish a business of food chain supply. They

faced many problems at the start of their business such making a

special menu for Indians. But now after catering all those

problems McDonalds is a well establish firm in India even

though they are now facing tough competition with KFC, PIZZA

HUT etc.


24/24

bibliography1. Marketing ManagementDr. Rajan Saxena

2. McDonaldsBehind the ArchesJohn S Love3. www.Mcdonaldsindia.com4. Outlet ManagerMcDonalds

kunal---mcdi story,business model, mcdi in india

vikshita---challenges,segmentation....

vinita----mktg 5p's,,,mcdi experience

abhi----competitors analysis ,,,,suppliers

aditya----SWOT,,,road ahead

dev---exhibits,,findings and learnin,,,conclusion

Macd Final Project....Edited

Documents

Transcript of Macd Final Project....Edited