THE Mac DONALD’S STORY

The story of McDonald’s started in 1954, when its founder Raymond Kroc saw a hamburger stand in San Bernardino, California and envisioned a nationwide fast food chain. Kroc proved himself as a pioneer who revolutionized the American restaurant industry. Today McDonald’s is the world’s largest fast food chain serving 47 million customers daily. McDonald’s is now one of the most valuable brands globally, worth more than $25 billion. The Golden Arches and its mascot Ronald McDonald have gained universal recognition. Though the company has roots in the US, McDonald’s today has become an accepted citizen of the world.

1955 Ray Kroc opens his first restaurant. McDonald’s Corporation is created

1957 Quality, Service, Cleanliness and Value (QSC & V) becomes company motto

1963 Ronald McDonald makes debut1965 The company goes public1968 Big Mac is introduced`1974 Happy Meal is launched1996 McDonald’s opens in India, the 95th country

MARKETING MODEL

Franchise Model – Only 15% of the total number of restaurants are owned by the Company. The remaining 85% is operated by franchises. The company follows a 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

networked operation and distribution system, the company has been able to achieve consistent product taste and quality across geographies.

 Act like a retailer and think like a brand – McDonald’s

focuses not only on delivering sales for the immediate present, but also protecting its long term brand reputation.

Mc DONALD’S IN INDIA

McDonald’s entered India in 1996. McDonald’s India has a joint venture with Connaught Plaza Restaurants and Hard Castle Restaurants. Connaught Plaza Restaurants manages operations in North India whereas Hard Castle Restaurants operates restaurants in Western India.

India has a huge population of vegetarians. To cater to this customer segment, the company came up with a completely new line of vegetarian items like McVeggie burger and McAlooTikki. The separation of vegetarian and non-vegetarian sections is maintained throughout the various stages.

McDonald’s has continually adapted to the customer’s tastes, value systems, lifestyle, language and perception. Globally McDonald’s was known for its hamburgers, beef and pork burgers. Most Indians are barred by religion not to consume beef or pork. To survive, the company had to be responsive to the Indian sensitivities. So McDonald’s came up with chicken, lamb and fish burgers to suite the Indian plate.

MARKET SEGMENTATIONMcDonald’s uses demographic segmentation strategy

with age as the parameter. The main target segments are children, youth and the young urban family.

Customers expect it to be an ambient, hygienic and a little sophisticated brand that respects their values. The customer’s expect the brand to enhance their self-image. Customer responses obtained at the Vile Parle, Mumbai outlet confirmed the fact that they connect strongly with the brand. However, fulfilling some of the customer expectations like a broader product variety provide McDonald’s a great scope for improvement.

Mc DONALD’S MARKETING MIX

The 5 P’s used by McDonalds are:ProductPlacePrice Promotion

PRODUCTMcDonalds has intentionally kept its product depth

and product width limited. McDonalds studied the behaviour of the Indian customer and provided a totally different menu as compared to its International offering. It dropped ham, beef and mutton burgers from the menu. India is the only country where McDonalds serve vegetarian menu. Even the sauces and cheese used in India are 100% vegetarian. McDonalds continuously innovates its products according to the changing preferences and tastes of its customers. The recent example is the introduction of the Chicken Maharaja Mac

PLACEWhere 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, at the right time and in the right quantity. Nearly 50% of U.S.A is within a 3 minute drive from a McDonald’s outlet.

There are certain value propositions that McDonalds offer to its customers based on their needs. Now McDonalds have also started giving internet facility at their centres and they have been playing music through radio instead of the normal music. There are certain dedicated areas for children where they can play while their parents can have some quality time together.

PRIC PRICEMcDonald’s came up with a very catchy

punch line “Aap ke zamane mein ,baap ke zamane ke daam”. This was to attract the middle and lower class consumers and the effect can clearly be seen in the consumer base McDonalds has now.

McDonalds has certain value pricing and bundling strategies such as happy meal, combo meal, family meal etc to increase overall sales volumes.

PROMOTIONThe various promotion channels being used by

McDonald’s to effectively communicate the product information are a clear understanding of the customer value helps decide whether the cost of promotion is worth spending.

The right message has to be communicated to the right audience through the right media. McDonald’s does its promotion through television, hoardings and bus shelters. They use print ads and the television programmes are also an important marketing medium for promotion.

 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”.

THE KFC STORY Kentucky fried chicken (KFC) - one of the most

known fast food chains in the world started in the early 1930’s by kernel sanders in the southern USA as a small franchise operation. Colonel sanders have become a well-known personality through out thousands of KFC restaurants worldwide. Quality, service and cleanliness (QSC) represent the most critical success factors to KFC’s global success.

Food, fun and festivity, this is what KFC is all about

Leading the market since its inception, KFC provides the ultimate chicken meal for the chicken loving nation. Be it colonel sanders secret original recipe chicken or the hot and spicy version, every bite bring a YUM on the face. At KFC we proudly say that: 

KFC has more then 11,000 restaurants in more than 80 countries and territories around the world. In 1971 Heublein Inc, acquired KFC, soon after, conflicts erupted between the colonel and Heublein management over quality control issues and restaurant.

 

MARKETING MODEL

Build an organization dedicated to excellence.Consistently deliver superior quality and value in our products and

services.Maintain a commitment to innovation for continuous improvement

and grow, striving always to be the leader in the market place changes.

Generate consistently superior financial returns and benefits our owner and employees.

To establish in India our position as leading WQSR (Western Quick Service Restaurant) chain, serving good value. Innovative chicken-based products. Consistently, providing a pleasant dining experience, with fast friendly, in a clean and convenient location. At all times we must be dedicated to providing excellent and delighting customers.

KFC is the world’s No.1 Chicken QSR and has industry leading stature across many countries like UK, Australia, South Africa, China,USA, Malaysia and many more.

KFC is the largest brand of Yum Restaurants, a company that owns other leading brands like Pizza Hut, Taco Bell, A&W and Long John Silver. Renowned worldwide for it’s finger licking good food, KFC offers its signature products in India too! KFC has introduced many offerings for its growing customer base in India while staying rooted in the taste legacy of Colonel Harland Sander’s secret recipe. Its signature dishes include the “crispy outside, juicy inside” Hot and Crispy Chicken, flavorful and juicy Original Recipe chicken, the spicy, juicy & crunchy Zinger Burger, Toasted Twister, Chicken Bucket and a host of beverages and desserts. For the vegetarians in India, KFC also has great tasting vegetarian offerings that include the Veggie Burger, Veggie Snacker and Veg Rice meals. In India, KFC is growing rapidly and today has presence in 11 cities with close to 50 restaurants

MARKET SEGEMENTATIONDEMOGRAPHICAL BASIS In demographics their first segment is consisted of the income

factor i.e. high income, average income and low income.

BEHAVIOR In behavioral aspect they segmented the market on the basis

of quality, taste and price. Following are the different possible segments in this regard.  

Taste consciousQuality consciousClass consciousCombination of price and quality

GEOGRAPHICAL BASIS On the basis of the geographical factor we

have divided our market in three main segments.

Urban areasSub urban areas

MARKETING MIX

The marketing mix of KFC consists of 4Ps. It contains every thing KFC do it to influence the demand for their products.

PRODUCTKFC product is classified as consumer product as it has no

intermediates.  KFC offers specialty goods.  The stock turn over of KFC is high.  Price and quality of the product is always compared.  KFC’s product includes  Goods (Burgers, Chicken Meals etc)  Services (cleanliness, quick service, parties)

PRICE In introduction stage KFC entered the market

using market-skimming strategy. Their products were high price and targeted only upper class. Gradually they trickle down focusing on the middle class to penetrate the market. Also KFC follows one price strategy. Price is determined according to the rates of the raw materials and policies of the Govt. The political and legal forces often affect the policies of KFC and eventually results in change of prices that is due to imposing of taxes.

PLACEKFC has only one channel of distribution i.e. direct where

the goods are transferred to the consumer directly. KFC has no middlemen. 

KFC does distribution of consumer goods directly to the consumer.

KFC also does distribution of services to the consumer like parking, sitting, home delivery, etc.

KFC gets Wheels! KFC launched its first mobile unit, which took the streets of Karachi by storm. The mobile unit has been designed to cater to the needs of those who are on the go, and have little time to stop by at a restaurant. It also provides a unique convenience of enjoying the delicious KFC offering anytime, anywhere, thus making fast food truly fast and convenient

PROMOTION They spend 2% of its profits on advertisement

and use print media and most recently doing televised marketing to promote it products.

KFC uses the following tools to further enhance its sales.

• Premiums• Exhibits• Coupons• Entertainment

KFC organize some musical shows and other parties. With the caption “Biggest Birthday Party” The event took place on Louisville, Kentucky, USA, on Sept.8, 1979, to celebrate the 89th birthday of Kentucky Fried Chicken founder Colonel Harland Sanders.

CONCLUSIONMac Donald’s is a brand and quality menu for all the

levels of customers, and available much widely geographically. Its very moderately priced.

Very much popular in India and a trustful relation with the people of India….

KFC is a much more Name Fame menu with high price and not affordable by all the levels of customers, also its not available at every market in India .But very well established in upper class market.

OUR GROUP VOTES FOR Mac Donald’s…………

THANK YOU…..