Reserch Project MC Donalds

MARKETING & BRANDING STRATEGIES
OF
MC DONALDS
IN
INDIA
Submitted To:
Sayanti Banerjee
New Delhi Institution of Management
New Delhi
Submitted By:
Abhishek Pandey
C-03
MBA 2009-11
UNDERTAKING
Marketing & Branding Strategy of Mc Donalds In India
I here by declare that the research work on The Marketing and Branding Strategy
of Mc Donalds is done originally by me. The data used in the report is obtained
directly from the findings from the Questionnaire. The research work is exempted
from any piracy and plagiarism and the data collection, analysis and preparation of
the report is novel and original.
Abhishek Pandey
M.B.A
2009-2011
Prepared By:Abhishek PandeyC-03[Type text]

ACKNOWLEDGEMENT
I express my heartfelt gratitude to several people for their direct and indirect
assistance in the successful completion of my project. It is with the great pleasure,
privilege and humbleness that I express my sincerest gratitude to all the people
who, despite of their busy schedule, have happily rendered me valuable help and
guidance.
My special and sincere thanks to my seniors who guided me at every
step of the research work. It was from their regular assistance that Im able to get
all the data and findings for the project.
Im in-debited to Sayanti Banerjee, my guide who directed me to work at

different stages of the project and learning about Analysis of Options in Indian
Market that helped a lot in furnishing my knowledge of the concerned topic.
Without these extended supports and co-operation, the project wouldnt

have been the same.

Content of Table
S.No. Title Page No.

Synopsis 5
Objective of the Research study 7
Introduction 9
Research Methodology 11
Company Profile 13
Marketing Strategy 25
Branding Strategy of Mc Donalds in India 34
Data Analysis & Findings 49
Limitations 63
Recommendations & Conclusion 65
Annexure 68
Bibliography 70


SYNOPSIS
TITLE :MARKETING & BRANDING STRATEGIES OF MC DONALDS IN INDIA
NAME OF COMPANY : MC DONALDS (INDIA)

SPECIFIC OBJECTIVES :
. To find out the marketing strategy of Mc Donalds
The service quality prevailing in Mc Donalds
To find out the service quality of Mc Donalds in various areas and find out
the deficiency.
The service quality of other players.
To study the factors determining the choice of branding strategy in market.

RESEARCH METHODOLOGY :
A) Primary data
1. Interaction with people in day to day life.
2. Data collected on the basis of questionnaire.
B) Secondary data
1. Business Magazines
2. Newspapers
3. Relevant information form Website of Mc Donalds
4. Other Websites.


Objectives:
To find out the marketing strategy of Mc Donalds
The service quality prevailing in Mc Donalds
To find out the service quality of Mc Donalds in various areas and find
out the deficiency.
The service quality of other players.
To study the factors determining the choice of branding strategy in

market.

INTRODUCTION

McDonald's...
Is the leading global foodservice retailer with more than 30,000 local restaurants
serving 52 million people in more than 100 countries each day. More than 70% of
McDonald's restaurants worldwide are owned and operated by independent local
men and women.
Is one of the world's most well-known and valuable brands and holds a leading
share in the globally branded quick service restaurant segment of the informal
eating-out market in virtually every country in which we do business.
Serves the world some of its favorite foods - World Famous French Fries, Big
Mac, Quarter Pounder, Chicken McNuggets and Egg McMuffin.
Our rich history began with our founder, Ray Kroc. The strong foundation that he
built continues today with McDonald's vision and the commitment of our talented
executives to keep the shine on McDonald's arches for years to come. To read
more about McDonald's history, vision and executives, click on their links in the
left menu.

Research Methodology

Collection Method:
A) Primary Data
B) Secondary Data
C) Primary data
3. Interaction with people in day to day life.
4. Data collected on the basis of questionnaire.
D) Secondary data
5. Business Magazines
6. Newspapers
7. Relevant information form Website of Mc Donalds
8. Other Websites.


COMPANY PROFILE
The McDonald's History - 1954 to 1955
Raymond Albert Kroc 1902-1984, A Salesman
Ray Kroc mortgaged his home and invested his entire life savings to
become the exclusive distributor of a five-spindled milk shake maker called
the Multimixer. Hearing about the McDonald's hamburger stand in
California running eight Multimixers at a time, he packed up his car and
headed West. It was 1954. He was 52 years old.
Dick and Mac McDonald's Restaurant, San Bernardino, California
Ray Kroc had never seen so many people served so quickly when he pulled
up to take a look. Seizing the day, he pitched the idea of opening up several
restaurants to the brothers Dick and Mac McDonald, convinced that he
could sell eight of his Multimixers to each and every one. "Who could we
get to open them for us?" Dick McDonald said.
"Well," Kroc answered, "what about me?"
Where it all began, Des Plaines, Illinois
Ray Kroc opened the Des Plaines restaurant in 1955. First day's
revenues-$366.12! No longer is a functioning restaurant, the
Des Plaines building now a museum containing McDonald's

memorabilia and artifacts, including the Multimixer!
McDonald's Comes To Wall Street
In 1965 McDonald's went public with the company's first offering on the
stock exchange. A hundred shares of stock costing $2,250 dollars that day
would have multiplied into 74,360 shares today, worth approximately $3.3
million on December 31, 2006. In 1985 McDonald's was added to the 30-
company Dow Jones Industrial Average.
A Big Idea Called "Big Mac"
"Introduced system wide in 1968, the Big Mac was the brainchild of Jim
Delligatti, one of Ray Kroc's earliest franchisees, who by the late 1960s
operated a dozen stores in Pittsburgh."
The Egg McMuffin
Introduced in 1973, the Egg McMuffin was developed by owner operator

Herb Peterson.


The First Ronald McDonald House in Philadelphia, PA
In 1974 Fred Hill of the Philadelphia Eagles teamed up with McDonald's to

create Ronald McDonald House. Here the families of critically ill children
have a place to call home while they're away from home as the young
patients undergo treatment for their conditions.
The Happy Meal
Since 1979 the Happy Meal has been making kids visits that much more
special. Clubs the world over collect Happy Meals toys and boxes.
The Future Begins Now
McDonald's Express for a world that can't slow down!. McDonald's is

popping up in more non-traditional locations like Amoco and Chevron
stations, with full menu offerings and dining room seating, just like you'll
find in a traditional McDonald's.
The McDonald's History - 1994 to Today
Kuwait City, Kuwait

Kuwait City is pretty far from Des Plaines, Illinois, but that didn't stop
15,000 customers from lining up here on opening day in 1994. The line at
the drive thru was seven miles long. Proving once again that "Good Times,
Great Taste" is understandable in any language.
Forty three years after opening our first restaurant in Des Plaines,
Illinois, we are proud to come to you on the World Wide Web. Did you
know that McDonalds.com receives millions and millions of hits every
week?
50th Anniversary
McDonald's Corporation celebrated its 50th Anniversary with the

opening of a flagship restaurant in Chicago.
McDonalds Facts Summary

Food Quality
McDonalds serves 100% beef, 100% chicken, and Grade A eggs
McDonalds food comes only from certified suppliers who are audited and
inspected on a regular basis Many of the foods McDonalds serves are from the
same trusted brands consumers purchase at the grocery store to enjoy at home
Dannon, Kraft, Nestl, Tyson, Dasani, Newmans Own, Heinz, Minute
Maid and many others

Food Safety
More than 2,000 safety, quality and inspection checks surround McDonalds food
as it moves from the farms to our restaurants McDonalds requires that 72 safety
protocols are conducted every single day in McDonalds restaurants McDonalds
works closely with independent experts on science, health and food to help
McDonalds develop the most stringent safety protocols
Nutrition
For 30 years, McDonalds has provided comprehensive nutrition information -- the
first in the QSR industry to do so; this year, nutrition information is on packaging,
putting it right in the hands of customers McDonalds serves premium salads,
chicken, yogurt, bottled water, fruit & more .A McDonalds hamburger is 260
calories and 9 grams of fat, and is the same size as it was when introduced in 1955
Jobs & Opportunity
20 of top 50 management started in McDonalds restaurants, including our CEO,
Jim Skinner67,000 McDonalds restaurant managers and assistant managers started
as restaurant staff McDonalds is the only restaurant organization to receive credit
recommendations from the American Council on Education (ACE)
Our People
Best Place to Work for Minorities Fortune Magazine 2005
McDonalds invests more than $1 billion annually in training Hamburger
University has more than 275,000 graduates worldwide & with training, eligible
for college credits One out of 5 Best Places to Work in Latin American
America Economic Magazine 2005
Community Commitment
McDonalds local owners are Moms & Pops too Ronald McDonald Houses are
homes away from homes for families with seriously ill children in more than 259
local communities around the world Ronald McDonald Care Mobile program is
a fleet of state-of-the-art vehicles that deliver cost-effective medical, dental and

education services directly to underserved children in their own neighborhoods

Mc-Donald In India
A Locally Owned Company
McDonald's India is a joint-venture company managed by Indians. In Western
India, Amit Jatias company, Hardcastle Restaurants Private Limited owns and
manages McDonald's restaurants. In Northern India, McDonald's Restaurants are
owned and managed by Vikram Bakshis Connaught Plaza Restaurants Private
Limited. Amit Jatia and Vikram Bakshi are responsible for running McDonald's in
India.
Local Sourcing Is Key For Truly Indian Products
Around the world, McDonald's traditionally operates with local partners or local
management. In India too, McDonald's purchases form local suppliers. McDonald's
constructs its restaurants using local architects, contractors, labour and - where
possible local materials. McDonald's hires local personnel for all positions within
the restaurants and contributes a portion of its success to communities in the form
of municipal taxes and reinvestment.
McDonald's sources food products form local companies. Fresh Lettuce comes
from Pune, Delhi, Nainital and Ooty; Cheese form Dynamix Dairies, Baramati,
Maharashtra; fresh Buns from Cremica, Phillaur, Punjab and Mrs. Bector and
Sons, Khopoli, Maharashtra; Sauce from Bector Foods, Phillaur, Punjab and
Hindustan Lever Limited-Best Foods Division, Thane, Chicken Patties,
Vegetable Patties, Pies and Pizza McPuff from Vista Processed Foods, Taloja,
Maharashtra. Dairy Products from Amrit Food, Ghaziabad, UP.
Mc-Donald Journey in India so Far..

1996 The first McDonald's restaurant opened on Oct. 13, at Basant Lok,
Vasant Vihar, New Delhi. It was also the first McDonald's restaurant
in the world not serving beef on its menu
1997 The first Drive - Thru restaurant at Noida (UP)
The first disabled friendly store at Noida (UP)

1999 The first Mall location restaurant at Ansal Plaza (New Delhi)
2000 The first highway restaurant at Mathura (UP)
2001 The first thematic restaurant at Connaught Place (New Delhi)
2002 The first restaurant in a food court at 3C's, Lajpat Nagar (New Delhi)
The first restaurant at the Delhi Metro Station at Inter State Bus
Terminus
The first annual fundraiser in association with ORBIS and Dr.

Shroff's Charity Eye Hospital.(Delhi)
2003 The first Dessert Kiosk - Faridabad (Haryana)
2003-04 Indigenous products like McAloo Tikki, McVeggie and Pizza McPuff
exported to Middle East countries
2004 McDonald's Delivery Service (McDeliveryTM ) introduced in New
Delhi

2006 McDelivery on Bicycles flagged off at Chandni Chowk (Delhi)-

another first initiative by McDonald's India
100th McDonald's Restaurant in India
10 Year Anniversary
2007 The first Restaurant opened in the Eastern Region at Park Street,
Kolkata (West Bengal)
The first Restaurant opened at Airport.(Domestic Airport, New
Delhi)

McDonald's India - A decade of quality service

For its unparalleled benchmarks established in the QSR sector McDonalds India
has been bestowed with many prestigious awards. To name a few:
Most Respected Company' for four

consecutive years, 2003-2007 in the Food
Services sector, by Businessworld
Most Wanted Brand of the Year' Award

2003 & 2004 by Franchising Holdings
India Ltd.
Retailer of the Year' Award for catering

services, 2004-2006 at the Images Retail
Awards.
The 'Most Preferred Fast Food Outlet' 2006

& 2007 by Awaaz Consumer Award,
hosted by CNBC.
Star Retailer - The Consumer Way, Food

Services Retailer' of the Year 2006 &
2007, by Franchise India
Amity Corporate Excellence Award'-in

2007 & 2008

Strategy Opted by Mc Donald in India

Setting Up Of An Extensive Food Chain
Six years prior to the opening of the first McDonald's restaurant in India,
McDonald's and its international supplier partners worked together with
local Indian Companies to develop products that meet McDonald's rigorous
quality standards. These standards also strictly adhere to Indian Government
regulations on food, health and hygiene. Part of this development involves
the transfer of state-of-the-art food processing technology, which has
enabled Indian businesses to grow by improving their ability to compete in
todays international markets.
For instance, Cremica Industries worked with one of McDonald's suppliers
from Europe to develop technology and expertise, which allowed Cremica to
expand its businesses from baking to also provide breading and batters to
McDonald's India and other companies. Another benefit of expertise in the
areas of agriculture allows McDonald's and its suppliers to work with
farmers in Ooty, Pune and Delhi and other regions to cultivate high quality
lettuce. This includes sharing advanced agricultural technology and expertise
like utilisation of drip irrigation systems that reduce overall water
consumption and agricultural management practices, which result in greater
yields.
In some cases, the Indian suppliers had the technology - but no market for
the products they produced. For example, Dynamix Dairies through its
relationship with McDonald's was introduced to a large consumer to
supply milk casein and other milk derivatives. The two companies entered
into a business relationship resulting in an initial export order of
approximately US $12 million per year with the potential to increase.
McDonald's local supply networks through Radhakrishna Foodland to get
products from various suppliers to restaurants in Delhi, Mumbai and other

parts of India.
Respect For The Indian Customs And Culture
McDonald's worldwide is well known for the high degree of respect to the
local culture. McDonald's has developed a menu especially for India with
vegetarian selections to suit Indian tasted and culture. Keeping in line with
this McDonald's does not offer any beef and pork items in India.
McDonald's has also re-engineered its operations to address the special
requirements of a vegetarian menu. The cheese and cold sauces used in India
are 100% vegetarian. Vegetable products are prepared separately, using
dedicated equipment and utensils. Also in India, only vegetable oil is used
as a cooking medium. This separation of vegetarian and non-vegetarian
food products is maintained throughout the various stages of procurement,
cooking and serving.
An Employer Of Opportunity
McDonald's India is an employer of opportunity, providing quality

employment and long-term careers to the Indian people. The average
McDonald's restaurant employs, on an average, 60-80 people from crew to
restaurant manager. McDonald's world class-training inputs to its employees
can be seen in the present close to 2000 employees currently in Mumbai and
Delhi.
Community Partnership

McDonald's believes in giving back to the community it serves. Wherever

McDonald's goes, it becomes a part of the community it operates in and
contributes towards the development of the locality. For example,
McDonald's has introduced the concept of Litter Patrols McDonald's
employees go around the market every day, picking up garbage left behind
not only by customers from McDonald's restaurants but also by other visitors
to the area. The result is a cleaner neighbourhood.
To commemorate 50 years of Indian independence, on 15th August 1998,
McDonald's Mumbai organised a No Garbage Drive in association with
Brihan Mumbai Municipal Corporation (BMC) and five schools in Bandra.
Inaugurated by the Municipal Commissioner, this was in support of BMCs
Zero Garbage initiative. Other community activities undertaken by
McDonald's in India include the adoption of local public parks for
restoration and beautification, thereby providing a play area for children. In
fact in Delhi, McDonald's even addresses the security issues relevant to a
particular residential colony.
Some of our significant contributions have been:
1995 donation of $25,000/- to the Chief Ministers Relief Fund for Latur
earthquake.
2001 donation of $50,000/- for the Earthquake devastated Bhuj.
2002 donation of $250,000/- to the Rosser Family Foundation to build a

primary school and health clinic for children in the Alaknanda slum of
New Delhi
Apart from these, McDonald's has also played a role in:
Supporting Health drives like Pulse Polio since 1999.
Along with Nehru Science Centre, McDonald's has taken the initiative of
being a partner of the Inter School Science Quiz Competition.
McDonalds Spotlight, an Inter-school Performing Arts Competition

started in 1998 for schools all over Mumbai to provide the students with
an atmosphere for healthy competition in performing arts.
In 2002, McDonalds tied up with the Nalanda Foundation for a period of

three years to generate funds for the education of the underprivileged
Girl-Child
Value as the corner stone of McDonalds strategy
McDonald's worldwide stands for QSC&V, where V stands for value and
therefore the value proposition assumes special significance. Explaining this,
Mr. Amit Jatia, Managing Director, McDonald's Western India says,
McDonald's success has been built on commitment to the delivery of QSC&V
(Quality, Service, Cleanliness and Value) to customers, the expansion of
restaurant numbers to improve convenience and large scale investment in
supplier development, training and people. Getting QS&C consistently, and
overwhelming appreciation of Value keeps our customers satisfied and
maintains our competitive edge.
The value initiative at McDonald's is all-pervasive. Our strategy is to achieve

best value by enhancing experience (offering best quality), while keeping
prices reasonable. This applies to products we serve our customers and to every
other aspect of the way we do business. At McDonald's, costs are kept low by
increasing efficiency and cutting wastage at all levels. This is possible by
advanced operations, management and human behaviour skills tested over time
in around 120 countries across the world.
It is important to understand that delivering highest quality doesnt come
easily. Customers who walk into a McDonald's restaurant, expect to be served
food that is hot and fresh, made from the highest quality ingredients, served
within minutes of placing their order and at a price, which is affordable. Such
is the strength of the brand that they rely on McDonald's to do all this, without
thinking about how it is actually achieved.
This is achieved through to the minutest details and doing things the right way,
whether it is the McDonald's unique cold chain network which ensures that
food products move from farms to restaurants absolutely fresh, at the lowest
possible cost, or, the reverse osmosis water treatment plant at every restaurant
to provide water which is the ultimate in purity, McDonald's in India has
invested heavily in achieving quality.
McDonalds Value offers
Though all McDonald's food products offer tremendous value, McDonald

continually review and improve our menu offerings to make sure that
McDonald not only meet their customers expectations, but also exceed them.
As a result, Mc Donald have introduced a series of ongoing value options to
enable their customers to appreciate this aspect of the brand even more
strongly.
Quality, Service, Cleanliness & Value
McDonald's Philosophy
When asked to explain McDonald's success, founder Ray Kroc used to say,
"We take the hamburger business more seriously than anyone else." Kroc was
a perfectionist. From the day he opened the first restaurant, he vowed to give
his customers high quality products, served quickly and a smile, in a clean
and pleasant environment, and all at a fair price. Quality, Service, Cleanliness
and Value (QSC&V) became the philosophy that drove McDonald's business
from one restaurant in 1955 to around 30,000 restaurants in about 120
countries. This philosophy also guides McDonald's India.
Quality
McDonald's India serves only the highest quality products. The attention
to food quality started long before the first restaurant opened.
McDonald's India has established close relationships with local suppliers
who provide McDonald's with the highest quality, freshest ingredients to
make its products. All suppliers adhere to Indian government
regulations to food, health and hygiene while continuously maintaining
McDonald's own recognized standards. McDonald's has established an
extensive "cold chain" distribution system in India to ensure that the
products that arrive at the restaurant from suppliers all over India are
absolutely fresh. In the restaurants, products and suppliers are used on a
"first-in, first-out" basis to ensure freshness. All McDonald's products
are prepared using the most current state-of-the-art cooking equipment to
ensure quality and safety. On an average 20 different quality checks are

carried out before any product is served to our customers.
Service
McDonald's India provides fast, friendly service the hallmark of
McDonald's, which sets its restaurants apart from others. At
McDonald's, the customer comes first. Every employee strives to
provide 100 percent customer satisfaction for every customer every
visit. This includes fast, friendly and attentive service, accuracy in order
taking and filling, and anticipation of customer's needs.
Cleanliness
McDonald's restaurants provide a clean, comfortable environment
especially suited for families. McDonald's stringent cleaning standards
ensure that all tables, seating, highchairs and trays are sanitized several
times each hour. The attention to cleanliness extends from the lobby to
the kitchen to the sidewalk and even immediate areas outside the
restaurant. In addition to urging customers to dispose of their litter
properly and offering a number of litter bins (both inside and outside the
restaurants) for their convenience, McDonald's "Litter Patrols" walk one
block around the restaurants several times each day picking up
McDonald's litter. Restaurant managers walk through the dining areas
each hour, to ensure that it is clean and well stocked. All restaurants
provide warm and inviting environment and a variety of comfortable
seating arrangements to accommodate anyone from a single individual
to a large family.

Value
McDonald's prices its products in such a way that a very large cross
section of the Indian population can afford it. McDonald's does not
sacrifice quality for value rather McDonald's leverages economies of
scale to minimize costs while maximising value to customers.
McDonald's definition of value is broader than most restaurants of its
kind it is more than even the price. Value at McDonald's is the sum of
the total McDonald's experience: quality food; fast, friendly service; a
clean and pleasant environment and products priced for the largest
segment of Indian consumers possible. That is value at McDonald's.


Mc-Donalds Branding Strategy in India
Mac and Dick McDonald established McDonald's brand in 1940 by using their
surname. In 1962,when Dick McDonald's sent Kroc an illustration of the
McDonald's family crest, Kroc had it added to the sign as a symbol of quality,
replacing Speedee, the boyish chef character that the McDonald's brother had
develop to designate the speedee service system. When others insisted that the
crest was gaudy the search was on for a more stylist corporate symbol. Turner
fiddled with the logo, based on the veldt in the Cadillac insignia, and Schindler
used that to sketch a logo that pictured the slanted roofline of the store piercing a
line drawing of the Golden Arches in the form of an M. In 1968, the roofline image
was dropped and the McDonald's name was added to derive the current logo. Since
then logo has not undergone any major changes. The introductions of the Ronald
McDonald's character later develop a human element in the McDonald's brand, and
provided an instant link with children.
Offering:
A brand is an offering from known source. McDonald's carries many associations
in the minds of people. Hamburger, fun, children, fast food, Golden Arches. These
associations make up the brand image.
McDonald's On Six levels of Meaning.
Attribute
A clean fast food brand which tastes the same any where you eat in the world.
Benefits
You don't have to stay hungry for a long time. McDonald's ready to eat available.
Values
The world leader in fast food restaurants.
Culture
The brand represents culture of social gathering for families and groups.
Personality
The world leader, A giant M.
User
All kinds of consumers buy McDonald's products irrespective of age, sex all over
the world. One can see all types of personalities in the McDonald's restaurant.


Seven Ps Of Marketing
Product:
It is the offering of a company in the market which is primarily for
Use
Consumption
Further Processing.
A service or a product refers to an activity or activities that a marketers offers to
perform which result in satisfaction of a need or want of predetermined target
customers.
The product can be a
Generic product: It is the product at basic level.
Expected product: It is the customers minimum set of expectations from a
product or service.
Augmented product: It is the offering in addition to what customer expects.
Potential product: It is doing every thing potentially feasible to hold &
attract customers.
Prices:
The second P in the formula is price. Develop the habit of continually examining
and reexamining the prices of the products and services you sell to make sure
they're still appropriate to the realities of the current market. Sometimes you need
to lower your prices. At other times, it may be appropriate to raise your prices.
Many companies have found that the profitability of certain products or services
doesn't justify the amount of effort and resources that go into producing them. By

raising their prices, they may lose a percentage of their customers, but the
remaining percentage generates a profit on every sale. Could this be appropriate for
you?
Sometimes you need to change your terms and conditions of sale. Sometimes, by
spreading your price over a series of months or years, you can sell far more than
you are today, and the interest you can charge will more than make up for the delay
in cash receipts. Sometimes you can combine products and services together with
special offers and special promotions. Sometimes you can include free additional
items that cost you very little to produce but make your prices appear far more
attractive to your customers.
In business, as in nature, whenever you experience resistance or frustration in any

part of your sales or marketing activities, be open to revisiting that area. Be open to
the possibility that your current pricing structure is not ideal for the current market.
Be open to the need to revise your prices, if necessary, to remain competitive, to
survive and thrive in a fast-changing marketplace.
Promotion
The third habit in marketing and sales is to think in terms of promotion all the time.
Promotion includes all the ways you tell your customers about your products or
services and how you then market and sell to them.
Small changes in the way you promote and sell your products can lead to dramatic
changes in your results. Even small changes in your advertising can lead
immediately to higher sales. Experienced copywriters can often increase the
response rate from advertising by 500 percent by simply changing the headline on
an advertisement.

Large and small companies in every industry continually experiment with different
ways of advertising, promoting, and selling their products and services. And here is
the rule: Whatever method of marketing and sales you're using today will, sooner
or later, stop working. Sometimes it will stop working for reasons you know, and
sometimes it will be for reasons you don't know. In either case, your methods of
marketing and sales will eventually stop working, and you'll have to develop new
sales, marketing and advertising approaches, offerings, and strategies.
Place
The fourth P in the marketing mix is the place where your product or service is
actually sold. Develop the habit of reviewing and reflecting upon the exact location
where the customer meets the salesperson. Sometimes a change in place can lead
to a rapid increase in sales.
You can sell your product in many different places. Some companies use direct
selling, sending their salespeople out to personally meet and talk with the prospect.
Some sell by telemarketing. Some sell through catalogs or mail order. Some sell at
trade shows or in retail establishments. Some sell in joint ventures with other
similar products or services. Some companies use manufacturers' representatives or
distributors. Many companies use a combination of one or more of these methods.
In each case, the entrepreneur must make the right choice about the very best
location or place for the customer to receive essential buying information on the
product or service needed to make a buying decision. What is yours? In what way
should you change it? Where else could you offer your products or services?
Packaging
The fifth element in the marketing mix is the packaging. Develop the habit of
standing back and looking at every visual element in the packaging of your product

or service through the eyes of a critical prospect. Remember, people form their first
impression about you within the first 30 seconds of seeing you or some element of
your company. Small improvements in the packaging or external appearance of
your product or service can often lead to completely different reactions from your
customers.
With regard to the packaging of your company, your product or service, you
should think in terms of everything that the customer sees from the first moment of
contact with your company all the way through the purchasing process.
Packaging refers to the way your product or service appears from the outside.
Packaging also refers to your people and how they dress and groom. It refers to
your offices, your waiting rooms, your brochures, your correspondence and every
single visual element about your company. Everything counts. Everything helps or
hurts. Everything affects your customer's confidence about dealing with you.
When IBM started under the guidance of Thomas J. Watson, Sr., he very early
concluded that fully 99 percent of the visual contact a customer would have with
his company, at least initially, would be represented by IBM salespeople. Because
IBM was selling relatively sophisticated high-tech equipment, Watson knew
customers would have to have a high level of confidence in the credibility of the
salesperson. He therefore instituted a dress and grooming code that became an
inflexible set of rules and regulations within IBM.
As a result, every salesperson was required to look like a professional in every

respect. Every element of their clothing-including dark suits, dark ties, white shirts,
conservative hairstyles, shined shoes, clean fingernails-and every other feature
gave off the message of professionalism and competence. One of the highest
compliments a person could receive was, "You look like someone from IBM."

Positioning
The next P is positioning. You should develop the habit of thinking continually
about how you are positioned in the hearts and minds of your customers. How do
people think and talk about you when you're not present? How do people think and
talk about your company? What positioning do you have in your market, in terms
of the specific words people use when they describe you and your offerings to
others?
In the famous book by Al Reis and Jack Trout, Positioning, the authors point out
that how you are seen and thought about by your customers is the critical
determinant of your success in a competitive marketplace. Attribution theory says
that most customers think of you in terms of a single attribute, either positive or
negative. Sometimes it's "service." Sometimes it's "excellence." Sometimes it's
"quality engineering," as with Mercedes Benz. Sometimes it's "the ultimate driving
machine," as with BMW. In every case, how deeply entrenched that attribute is in
the minds of your customers and prospective customers determines how readily
they'll buy your product or service and how much they'll pay.
Develop the habit of thinking about how you could improve your positioning.
Begin by determining the position you'd like to have. If you could create the ideal
impression in the hearts and minds of your customers, what would it be? What
would you have to do in every customer interaction to get your customers to think
and talk about in that specific way? What changes do you need to make in the way
interact with customers today in order to be seen as the very best choice for your
customers of tomorrow?
People

The final P of the marketing mix is people. Develop the habit of thinking in terms
of the people inside and outside of your business who are responsible for every
element of your sales and marketing strategy and activities.
It's amazing how many entrepreneurs and businesspeople will work extremely hard
to think through every element of the marketing strategy and the marketing mix,
and then pay little attention to the fact that every single decision and policy has to
be carried out by a specific person, in a specific way. Your ability to select, recruit,
hire and retain the proper people, with the skills and abilities to do the job you need
to have done, is more important than everything else put together.
In his best-selling book, Good to Great, Jim Collins discovered the most important
factor applied by the best companies was that they first of all "got the right people
on the bus, and the wrong people off the bus." Once these companies had hired the
right people, the second step was to "get the right people in the right seats on the
bus."
To be successful in business, you must develop the habit of thinking in terms of

exactly who is going to carry out each task and responsibility. In many cases, it's
not possible to move forward until you can attract and put the right person into the
right position. Many of the best business plans ever developed sit on shelves today
because the [people who created them] could not find the key people who could
execute those plans

Mc-Donalds Seven P of Marketing
Product:
McDonald's food products offer tremendous value, McDonald continually review

and improve our menu offerings to make sure that McDonald not only meet their
customers expectations, but also exceed them. As a result, Mc Donald have
introduced a series of ongoing value options to enable their customers to appreciate
this aspect of the brand even more strongly.
Price:
McDonald's prices its products in such a way that a very large cross section of the
Indian population can afford it. McDonald's does not sacrifice quality for value
rather McDonald's leverages economies of scale to minimize costs while
maximising value to customers. McDonald's definition of value is broader than
most restaurants of its kind it is more than even the price. Value at McDonald's
is the sum of the total McDonald's experience: quality food; fast, friendly service; a
clean and pleasant environment and products priced for the largest segment of
Indian consumers possible. That is value at McDonald's.
Place:
Six years prior to the opening of the first McDonald's restaurant in India,
McDonald's and its international supplier partners worked together with local
Indian Companies to develop products that meet McDonald's rigorous quality
standards. These standards also strictly adhere to Indian Government regulations
on food, health and hygiene. Part of this development involves the transfer of state-
of-the-art food processing technology, which has enabled Indian businesses to

grow by improving their ability to compete in todays international markets.
Promotion:
Attribute
A clean fast food brand which tastes the same any where you eat in the world.
Benefits
You don't have to stay hungry for a long time. McDonald's ready to eat available.
Values
The world leader in fast food restaurants.
Culture
The brand represents culture of social gathering for families and groups.
Personality
The world leader, A giant M.
User
All kinds of consumers buy McDonald's products irrespective of age, sex all over
the world. One can see all types of personalities in the McDonald's restaurant.
People:
McDonald's worldwide is well known for the high degree of respect to the local
culture. McDonald's has developed a menu especially for India with vegetarian
selections to suit Indian tasted and culture. Keeping in line with this McDonald's
does not offer any beef and pork items in India. McDonald's has also re-
engineered its operations to address the special requirements of a vegetarian menu.
The cheese and cold sauces used in India are 100% vegetarian. Vegetable products
are prepared separately, using dedicated equipment and utensils. Also in India,
only vegetable oil is used as a cooking medium. This separation of vegetarian
and non-vegetarian food products is maintained throughout the various stages of
procurement, cooking and serving.
Packaging:
McDonald's India serves only the highest quality products. The attention to food
quality started long before the first restaurant opened. McDonald's India has
established close relationships with local suppliers who provide McDonald's with
the highest quality, freshest ingredients to make its products.
Positioning:
The value initiative at McDonald's is all-pervasive. Our strategy is to achieve best

value by enhancing experience (offering best quality), while keeping prices
reasonable. This applies to products we serve our customers and to every other
aspect of the way we do business. At McDonald's, costs are kept low by increasing
efficiency and cutting wastage at all levels. This is possible by advanced
operations, management and human behaviour skills tested over time in around
120 countries across the world. It is important to understand that delivering highest
quality doesnt come easily. Customers who walk into a McDonald's restaurant,
expect to be served food that is hot and fresh, made from the highest quality
ingredients, served within minutes of placing their order and at a price, which is
affordable. Such is the strength of the brand that they rely on McDonald's to do all
this, without thinking about how it is actually achieved


SWOTANALYSIS
SWOT Analysis is a strategic planning method used to evaluate the Strengths,
Weaknesses, Opportunities, and Threats involved in a project or in a business
venture. It involves specifying the objective of the business venture or project and
identifying the internal and external factors that are favourable and unfavourable to
achieving that objective.
Strengths: attributes of the organization that are helpful to

achieving the objective.
Weaknesses: attributes of the organization that are harmful to
achieving the objective.
Opportunities: external conditions that are helpful to achieving
the objective.
Threats: external conditions which could do damage to the
business's performance.


DATA ANALYSIS & FINDINGS
FINDING-1
FREQUENCY OF VISITING A RESTAURANT
From the above graph, generally the respondents prefers to visit the restaurant
during weekends and special occasion. The proportion of people visiting restarants

is highest in weekends (40)%, followed by special occasions (34%). Very rarely

the respondents like to visit reataurant on daily basis.
FINDING-2
WHICH RESTAURANT CUSTUMER WANTS TO GO

From the above graph, the majority of people prefers to visit Pizza hut as compared
to Mc-Donalds. However quite a healthy proporion of people likes to visit other
restaurants also.
FINDING-3
WHAT INFLUENCE THE CUSTOMER TO VISIT THE RESTAURANT
The quality of food is the most important factor to be considered by the customers
while visiting any restaurant. How ever the better service is also a considerable
factor by the respondents.

FINDING 4
SATISFACTION LEVEL
Above 90% of the customers are satisfied with their preferred restaurant.

FINDING 5
TIME TO PLACE AN ORDER
The time to place an order is generally 5 to 7 mins in most of the cases as 67% of
the respondents are agrreable to the same.

FINDING 6
LEVEL OF HOSPITALITY IN THE RESTAURANT

The hospitality in the restaurant is good in most of the cases. Very rare the
customers are agreeable to the excellent services.
FINDING 7
SATISFACTION LEVEL WITH Mc-DONALDS
The customers of Mc-Donalds are moderately satisfied with its services. As

majority of them are agrreable to that.

FINDING 8
LEVEL OF UNDERSTANDING SERVICE PROBLEM OF CUSTOMDER
In Mc-Donalds the level of understanding the customers problem lies between

average and V-good. The majority of them agreed to V-good.

FINDING 9
FACTORS IN SELECTING FAST FOOD CORNER
About 47% of the respondents are confirming that Service, Price, Promotion and
Location (SPPL) are together required for selection of a fast food corner.
Irrespective of the promotion the remaining three factors i.e. Service, Price and
Location are also able to attract about 40% of the customers.

FINDING 10
WHY Mc-DONALDS
The product of Mc-Donalds is the sole factor to attract the majority of the
customers as 53% of them are satisfied with the product. However Service & Price
is also able to attract 20% each of the custoomers.

FINDING 11
FREQUENCY TO VISIT RESTAURANT OTHER THAN Mc-DONALDS
The customers who are visiting the Mc-Donalds are Occasionally visiting the other
restaurants as majority of them are satisfied with Mc-Donalds.

FINDING12
HAPPY HOUR CONCEPT
About 80% of the respondents feel that Happy Hour is good concept in this
modern life.

FINDING 13
DO YOU RECOMMEND Mc-DONALD TO OTHERS
About 67% of the respondents will recommend Mc-Donalds as one of the

prominent restaurant to visit including 47% who will definitely do do.


Limitations/ Problems in conducting the survey

Some Retail Owners ( Branch Owner) refuse to give information.
Due to festival season during market survey eve they was a great rush and
every one was in hurry.
Illiteracy among some customers is reflected as far as filling questionnaire is
concerned.
Less cooperation from the customers due to busy modern life.
Since the survey is conducted only on 45 customers therefore, analysis cannot
be made accurately.


Conclusion
McDonalds isn't exactly an alien entity in India too. After spending Rs. 25 crores
on its Indian operations, the global food-chain is out to make its presence felt in
every part of the country and it has succeeded in serving up an exciting new combo
to Indian customers.
They consider 3 basic areas.
1. The Total eating out market gives the broadest competitive context and includes
all Restaurants, Hotels, Pubs, and any other outlet where people eat.
2. They also focus on the Quick Service Restaurant Sector. This includes all the
obvious competition and also fish and sandwich shops-any outlet where food is
served quickly.
3. The final sector that they focus on is defined as the Burger House Sector. This
looks at only at restaurants serving hamburgers including Burger King, Wimpy,
Wendy's and all independent Burger bars.

Take two pieces of bun, put in a patty and garnish it with two equation. Price leads
to volumes. children bring in the family. that explains why McDonalds is the only
food chain in India that can afford to stand tall.
With a strong backing of reliable supply chain, extension advertising and efficient
employees, McDonald is trying to fulfill all the customer challenges
Recommendation
On the basis of the survey few suggestions can be brought out:
Mc-Donalds is required to make its presence felt at all the populated part of
the country as many of the respondents have shown some sort of ignorance
towards the brand.
The Menu is very limited. Most of the customers are now demanding change
in the present menu and inclusion of more varieties in it.



Bibliography
S.No Title Author/ Agency

1 Marketing Research-an applied N.K.Malhotra
orientation
2 Market Potential of Consumer John.H.Parfitt
Products
3 Consumer Behaviour L.G.Schiffman
4 The great Indian Market Indian Mart
Websites Referred
www.mcdonaldsinida.net
www.12manage.com
www.wikipedia.com
www.salesforceautomation.com
www.marketingteacher.com
www.harrisinteractive.com


Appendices
Institute Of Marketing & Management
New Delhi-110016
CONSUMER SURVEY
Questionnaire:
1] How frequently do you go to restaurants?
Only holidays. On special Occasions.
Weekends. Everyday.
2] Which restaurants do you go to?

Mc Donalds Pizza Hut
Nirulas others {specify}
3] What drives you to go to this restaurant?

Quality of Food Better service Homely Atmosphere
4] Are you satisfied with the present provided by restaurants?

Yes No
5] What is the time taken to place an order?

Within 2 Minutes 2 to 5 Minutes
5 to 7 Minutes 7 to 10 Minutes
6] What is your view about the Hospitality provided by these restaurants?

Average Good
Very good Excellent
7] What is your satisfaction level with Mc Donalds?

Attributes Percentage
Extremely satisfied
Moderately satisfied
Ok
Moderately dissatisfied
Extremely dissatisfied
8] What is the level of understanding of service problem of the customers?

Excellent
Very good
Good
Poor
9] Which are the combinations of the factors do you think are very vital while you
select a particular fast food?
Service, Price, Promotion
Service, Price, Promotional schemes, Location
Price, Location, Promotional schemes
10] Why do you prefer Mc Donalds?

Service Differentiation Product Differentiation

Price Differentiation Promotional Schemes
11] How frequently do you visit other restaurant except Mc Donalds?

Regularly Frequently
Occasionally Rarely
12] How do you evaluate the various aspects of Mc Donalds, Nirulas & Pizza
Hut?
Marking scale: 5 point scale. 1 minimum and 5 maximum.
Mc Donalds Nirulas Pizza Hut
Ambience
Cleanliness
Behavior of Employees
Space Management
Menu Composition
Quality of Food
Service Quality
13] What do you say about the happy hour concept of Mc Donalds?
Excellent Good Idea
Doesnt Matter Poor
14] Please give suggestion, (if any) for improvement in service, quality?
__________________________________________________________________
15] Which similar restaurant you think has the best service quality and why?
__________________________________________________________________
16] Would you recommend Mc Donalds to friends & relatives?

Definitely Yes
Probably Yes
Probably No
Definitely No

17] Any suggestions for overall improvements of fast food joints?

__________________________________________________________________
Personal Details:
18] Name:
19] Age: 18- 25 25-30 30-40 40-50
20] Occupation:
22] Annual Income: Rs. 0-20,000 Rs. 20,000-50,000 50,000 and above.
21] Address:
22] Contact No.:
Thank you for your valuable time.

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