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“One world, One Burger”- McDonald’s
By VASIM Calcuttawala
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AGENDA• HISTORY• SOME FACTS ABOUT
MCDONALD’S• PAST AND PRESENT
STRATEGY• SWOT ANALYSIS• 7 P’S• MCDONALDS LOCATION
SELECTION• TECHNOLOGY IN RETAIL• RETAIL FORMAT• STORE LAYOUT• ORGANISATIONAL
STRUCTURE
So, Let’s go, Listen My story, Agenda of My story is
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"McDonald's vision is 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."
McDonald's Mission Statement
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.
As word of their success spread, franchisees started showing interest. However, the franchising system failed because the
McDonald's was started as a drive-in restaurant by two brothers, Richard and Maurice McDonald in California, US in the year 1937.
The brothers used assembly line procedures in their kitchen for mass production..
Mcdonald’s History
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• At this point, Ray Kroc (Kroc), distributor for milkshake machines.Expressed interest in the business, and he finalized a deal with the McDonald brothers in 1954.
•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...
McDonald’s History
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Chak De
INDIA
McDonald’s in India
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• Entered in India 1996
• McDonald's India is a 50 – 50 JV partnership between MCDONALD’S CORPORATION (U.S.A) and two Indian businessman Amit Jatia and Vikram Bakshi
• Localisation: DON’T OFFER ANY BEEF OR PORK ITEM
IN INDIA IN PRODUCT LIKE MCVEGGIE, PIZZA
MCPUFF ETC.THEY USE SPICES FAVOURED BY INDIANS
SOFT SERVES AND MCSHAKES ARE EGGLESS
• Actively Involver in many social activities likegi CHILD EDUCATION, PULSE POLIOiesetc.
McDonald’s History INDIA
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• 1996 …the first McDonald’s restaurant opened on Oct. 13, at Basant Lok, Vasant Vihar, New Delhi. It was also the first restaurant in the world not serving beef on its menu
• 1997…the first Drive –Thru restaurant at Noida • 1999…the first Mall location restaurant at Ansal Plaza –
New Delhi • 2000…the first highway restaurant at Mathura • 2001…the first thematic restaurant at Connaught Place• 2002…the first restaurant in a food court at 3C’s,
Lajpat Nagar and the first restaurant at the Delhi Metro Station at Inter State Bus Terminus
History in India
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Segmentation, Targeting and Positioning• McDonald’s uses demographic segmentation
strategy with age as the parameter. The main target segments are children, youth and the young urban family
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ADAPTION STRATEGY• Menu differences:• Netherlands and Austria– Beer• Germany – Chinese Week• Canada – Mc Pizza• India – Goat and lamb burgers half of
menu vegetarian• Japan – ingredients such as cabbage and
Teriyaki• USA – Barbecue bacon Burgers, sausage
breakfast burritos
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Mc -Strategies
International Growth
Forward Integration
-Distribution through Franchisees
Backward Integration
-Local Sourcing, Suppliers
Market penetration & Development
McDonaldizing the supplier
New Product Development
- Aloo Tikki, Salad
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Beverages
Cold Coffee
Ice Tea
Soft Drinks
Mc Shakes
Hot Serves
Menu
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Ice-Tea
Menu
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McShakesMcShakes™
Nutrition at glance
Type(Quantity)
Serving sizein
gms
Proteinin
gms / serve
Caloriesin kCal / serve
Protein%
Carb.
in gms / serve
Fatin
gms / serve
Carb%
Fat
%
Chocolate(S/M/L)
275400500
71013
527594
71013
298433541
333
191919
333
Strawberry(S/M/L)
275400500
71012
466784
71012
270393491
222
171717
222
Menu
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Floats
Menu
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Soft ServesNutrition at glance
TypeServing sizein gms
Proteinin
gms / serve
Caloriesin
kCal / serve
Protein%
Carb. in
gms / serve
Fatin
gms / serve
Carb%Fat %
Soft Serve with Hot Fudge (Small) 86 3 25 3 140 4 29 4
Soft Serve with Hot Fudge (Medium) 143 6 43 5 241 4 30 4
Soft Serve with Strawberry (Small) 86 3 23 3 126 3 26 3
Soft Serve with Strawberry (Medium) 143 4 39 4 208 3 27 3
Menu
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Soft Serve Cone
Menu
Nutrition at glance
Serving sizein gms
Proteinin gms /
serve
Caloriesin kCal /
serveProtein%
Carb. in gms / serve
Fatin gms /
serveCarb% Fat %
71 2 16 2 95 3 22 4
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Non- Veg Menu
Chicken McCurry
Chicken Maharaja Mac
McChicken
Fiet-O-Fish
Chicken Mexican Wrap
Chicken McGrill
Menu
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Filet-O-FishFilet-O-Fish™
Fried, breaded fillet of fish, with a half slice of processed cheddar cheese, special tartar sauce served between steamed buns.
Nutrition at glance
Serving sizein gms
Proteinin gms / serve
Carb.in gms / serve
Fatin gms / serve
145 13 49 23
Caloriesin kCal / serve
Protein% Carb% Fat %
462 9 34 16
Menu
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Chicken Maharaja Mac
Nutrition at glance
Serving sizein gms
Proteinin gms / serve
Carb.in gms / serve
Fatin gms / serve
255 32 54 26
Caloriesin kCal / serve
Protein% Carb% Fat %
573 12 21 10
ChickenMaharaja Mac™
2 Grilled chicken patties with a smoke-flavoured mayonnaise, fresh onions, tomatoes, processed cheddar cheese in a toasted sesame seeded bun.
Menu
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Chicken Mexican Wrap
Menu
Chicken Mexican Wrap™
A traditional Mexican soft flat bread that envelops crispy golden brown chicken encrusted with a Mexican Cajun coating, and a salad mix of iceberg lettuce, carrot, red cabbage and celery, served with eggless mayonnaise, tangy Mexican Salsa sauce and cheddar cheese
Nutrition at glance
Serving sizein gms
Proteinin gms /
serve
Carb.in gms /
serve
Fatin gms /
serve
192 14 37 21
Caloriesin kCal /
serveProtein% Carb% Fat %
392 7 19 11
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McALOO TikkiMcAloo Tikki™
Fried breaded potato & peas patty that is flavoured with a special spice mix, fresh tomato slices, onion, and veg. tomato mayonnaise between toasted buns.
Nutrition at glance
Serving size
in gms
Proteinin gms /
serve
Carb.in gms /
serve
Fatin gms /
serve
150 6 53 15
Caloriesin kCal /
serveProtein% Carb% Fat %
367 4 35 10
Menu
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Paneer Salsa WrapPizza McPuff™
Mixed vegetables (carrot, beans, capsicum, onion and green peas), mozzarella cheese mixed with tomato sauce and spice blend coated with a savoury dough.
Nutrition at glance
Serving sizein gms
Proteinin gms /
serve
Carb.in gms /
serve
Fatin gms /
serve
80 4 26 14
Caloriesin kCal /
serveProtein% Carb% Fat %
245 5 33 17
Menu
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4P’s of McDonalds
• Product• How should the company design, manufacture the
product so that it enhances the customer experience?
• Price What should be the pricing strategy?
• Place• Where should be the product be available and the
role of distribution channels?
• Promotion• What is the suitable strategy and channels for
promotion of the product?
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• Product Development– Successes: Fries, Happy Meal, Big Mac, Egg
McMuffin, Promotions
– Failures: McPizza, Fajita, Carrot Sticks,
McLean, and the Arch Deluxe
Past Mc Product Strategies
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• 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”.
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I Love Children- Happy Meal
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Place
McDonald's opened its doors in India in October 1996. Ever since then, our family restaurants in Mumbai, Delhi, Pune, Ahmedabad, Vadodara, Ludhiana, Jaipur, Noida Faridabad, Doraha, Manesar and Gurgaon have proceeded to demonstrate.
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• The ambience and the environment is same at
all the outlets of McDonald's.
McDonald’s Outlets
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Pepole
• Each outlet is headed by a Restaurant Manager . He is responsible for the daily operation and customer interaction.
• Delivery Crew Member carries basic operation of a restaurant. Ensures customer satisfaction at the restaurants.
• In order to motivate there employees they give them stars as per their performance.
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Organizational Chart
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Social Events sponsored by McDonald's
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McDonalds location SelectionSpace require• In terms of space: Minimum of 2,500 – 3,000 square
feet carpet area on the ground floor with a clear height of 11 feet and a frontage of at least 35 to 40 feet.
• Offers both Counter Service and Drive through Service• Drive-Thru, Auto-Mac, Pay and Drive, or McDrive as it is
known in many countries, often has separate stations for placing, paying for, and picking up orders.
• "McDrive" locations near highways offer no counter service or seating.
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• In contrast, locations in high-density city neighborhoods often omit drive-through service
• There are also a few locations, located mostly in downtown districts that offer Walk-Thru service in place of Drive-Thru.
• Some locations are connected to gas stations/convenience stores, while others called McDonald's Express have limited seating and/or menu or may be located in a shopping mall.
• Other McDonald's are located in Wal-Mart stores. • McStop is a location targeted at truckers and
travelers which may have services found at truck stops.
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Home Delivery
• McDelivery
11:00 am to 11:00 pm
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• McDonald’s India is one of the few countries that provides a home delivery service
• Call on 6600 0666 and place the order.• Minimum Charge 15rs Per order• The restaurants will deliver to
neighborhoods which are up to 10 minutes away by road.
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Recognition [Rewards]• In addition to McDonald's competitive wage and
promotion programs, hard work, dedication, motivation and results are recognized and rewarded at McDonald's.
• Appreciation comes in many forms - from a simple thank you for a job well done, to restaurant-wide recognition through programs such as the 'Face of the Month' and ‘Face of the Quarter’.
• McDonald's also offers great incentive programs with access to gift certificates and merchandise.
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Technology In Retail• From old-fashioned cash registers to computerized
point-of-sale systems that could track massive amounts of data in seconds
• McDonald's was the first quick-service chain to install touch-screen computers at the front counter and in the drive-thru, making it easier for servers to input orders.
• New POS, a product developed by Savista, will help McDonald's improve restaurant productivity and enhance the customer experience
• Attemt for solution that would permit debit, credit and gift card transactions to be processed through the standard POS system in less than four seconds
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• In a small number of restaurants, McDonald's U.S. is evaluating a customer order center concept that involves drive-thru orders taken by employees working remotely at two customer order centers. High-speed data connections are used to transmit the orders from the drive-thrus to the centers as well as from the centers back to
restaurant Kitchen Staff.• Meanwhile, pilot tests of self-service ordering
kiosks are underway in the Denver and Chicago markets. At this point, the kiosks accept only cashless payments as a way to keep the machines easy and quick to operate
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Retail Format : Franchising• Franchising enables McDonald’s to enjoy
considerably faster growth and the creation of a truly global brand identity.
• On the financial side, McDonald’s receives a monthly rent which is calculated on a sliding scale based on the restaurant’s sales
• There is also a service fee of 5% of sales that is contributed to support department activities and royalties.
• The purchase price of a restaurant is generally about £150,000 upwards. The new franchisee is expected to fund a minimum of 25% of this from their own unencumbered funds.
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Store Layout• The new design will include the traditional
McDonald's yellow and red colors, but the red will be muted to terra cotta, the yellow will turn golden for a more "sunny" look and olive and sage green will be added.
• To warm up their look, the restaurants will have less plastic and more brick and wood, with modern hanging lights to produce a softer glow.
• Contemporary art or framed photographs will hang on the walls.
• The exterior will have golden awnings and a "swish brow" instead of the traditional double-slanted mansard roof.
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• The new restaurants will feature areas:• The "linger" zone will offer armchairs, sofas, and
Wi-Fi connections. • The "grab and go" zone will feature tall counters
with bar stools for customers who eat alone; Plasma TVs will offer them news and weather reports.
• The "flexible" zone will be targeted toward families and will have booths featuring fabric cushions with colorful patterns and flexible seating.
• Different music targeted to each zone.
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Store Layout
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Store Layout
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Store Layout
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Supply Chain
Suppliers Mfg Dist. Retai Customer
Material Flow
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Supply ChainTrikaya Agriculture - Supplier of Iceberg
Lettuce.successfully grows speciality crops like iceberg lettuce, special herbs and many oriental vegetables. Farm infrastructure features:
A specialized nursery with a team of agricultural experts.
Drip and sprinkler irrigation in raised farm beds with fertilizer mixing plant.
Pre-cooling room and a large cold room for post harvest handling.
A large cold room and a refrigerated van for transportation where the temperature and the relative humidity of this crop is maintained between 1º C and 4º C and 95% respectively
Vista Processed Foods Pvt. Ltd. - Supplier of Chicken and Vegetable range of products.A joint venture with OSI Industries Inc., USA, and McDonald's India Pvt. Ltd. Vista Processed Foods Pvt. Ltd. produces a range of frozen chicken and vegetable foods. A world class infrastructure at its plant at Taloja, Maharashtra, has: Separate processing lines for chicken and vegetable foods. Capability to produce frozen foods at temperature as low as -35 Degree Celsius to retain total freshness. International standards, procedures and support services.
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Supply ChainDynamix Diary - Supplier of Cheese.Dynamix has brought immense benefits to farmers in Baramati, Maharashtra by setting up a network of milk collection centres equipped with bulk coolers. Easy accessibility has enabled farmers augment their income by finding a new market for surplus milk. The factory has: Fully automatic international standard processing facility. Capability to convert milk into cheese, butter/ghee, skimmed milk powder, lactose, casein & whey protein and humanised baby food. Stringent quality control measures and continuous Research & Development.
Radhakrishna Foodland - Distribution Centre.
An integral part of the Radhakrishna Group, Foodland specialises in handling large volumes, providing the entire range of services including procurement, quality inspection, storage, inventory management, deliveries, data collection, recording and reporting. Salient strengths are: A one-stop shop for all distribution management services. Dry and cold storage facility to store and transport perishable products at temperatures up to - 22 Degrees Celsius. Effective process control for minimum distribution cost.
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Jumbo King — The branded vada pav chain
Dheraj Gupta
Introduced automation, packaging and Created a Brand
Jumbo King is a food chain that has branded Mumbai’s favorite snack, The Vada pav.
Vada pav is an INR 500 million market in Mumbai itself, out of which jumbo king’s share is more than 100 million
Jumbo king has broken the stereotype method and introduce hygienic manhandled vadapv.
It has become Mumbai's most visited brand with over 40,000 customers per day
Jumbo king considers McDonald's it’s “guru” and aims to become India’s McDonald’s.
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• McDonald's India has already contributed directly & indirectly Rs. 95 crore (approx. 16 per cent of total turnover) as revenue to the Center and the State towards Sales Tax, House tax and Income Tax in the last seven years. By 2005 this amount shall see an increase of more than 30 per cent per annum.
Contribution to Economic Growth
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BYE BYE SEE U AT McDonald’S