INTRODUCTION OF MARKETING STRATEGY

Marketing strategy is very much important for developing any of the business.
Without it, the effort of the business to attract customer is random and very
inefficient. The main focus of your strategy must make sure that your product
should fulfill the demands of the consumers and as well as it maintains the long-
term relationship with those consumers. To achieve this, you will have to initiate
flexible strategy that responds to change in customer demand and perception. It
may also give brand name to your product which will help you to run your
business in new markets smooth and efficient manner. First of all the main
purpose of your marketing strategy should be to identify the weather the target
customer’s are satisfied with your product and services of your business.
Once you have created and implemented your strategy, try to identify the feed
from you customer and if any changes or improvement is required apply it for the
maximum satisfaction of customers
This helps you to identify that, where your strategy needs to be improved and
how it can be developed, so that it can be implemented for effective action.
Before applying any strategy in the business proper planning programs must be
organized within the members of the organization.

WHAT IS MARKETING?
“Marketing is the activity, set of institutions, and processes for creating,
communicating, delivering, and exchanging offerings that have value for
customers, clients, partners, and society at large."

Marketing

From the above definition we are able to understand that a successful marketing
deals with satisfaction of both the parties. The definition basically explains that
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there is a simple process i.e. is “selling something to somebody” however, the
definition conveys that an exchange of goods and services without any barter
system and having common currencies, that exchange is called a sale. So while
achieving the goals of the marketing by selling, it is not compulsory that both the
parties should agreed upon the transaction. Satisfaction of both parties is a hided
in the exchange relationship. Marketing must understand the “product, ideas and
services” along with the "Needs & Wants" of the consumers. Marketing must not
only understand this equation but also establish the policy to maintain balance
between both the sides, by implementing “marketing strategy”.

MEANING OF MARKETING STRATEGY

A Marketing strategy defines and describes the objectives or planning through

which you are going to satisfy your consumer needs in the selected target market.
It does not involve written work but, it includes communication between
different departments of the business enterprise for example: sales department,
managers, executives etc.

In fact it is a set of strategies that implied by the organization in order to increase

the growth and development of the business. Normally strategy deals with the
manner in which your organization plan to achieve the consumer satisfaction and
maximize the profit.

DEFINITION OF MARKETING STRATEGY

 “Marketing Strategy is a set of specific ideas and actions that outline and
guide decisions on the best or chosen way to create, distribute, promote,
and price a product or service (manage the marketing mix variables).”

 “A marketing strategy is a process that can allow an organization to

concentrate its limited resources on the greatest opportunities to increase
sales and achieve a sustainable competitive advantage.”

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Marketing strategy is a process that can allow an organization to concentrate its
limited resources on the greatest opportunities to increase sales and achieve a
sustainable competitive advantage. A marketing strategy should be centered on
the key concept that customer satisfaction is the main goal.
Business Advantages

 identifies needs and wants of consumers

 determines demand for product
 aids in design of products that fulfill consumers needs
 outlines measures for generating the cash for daily operation, to repay
debts and to turn a profit
 identifies competitors and analyzes your product's or firm's competitive
advantage
 identifies new product areas
 identifies new and/or potential customers
 allows for test to see if strategies are giving the desired results

Business Disadvantages

 identifies weaknesses in your business skills

 leads to faulty marketing decisions based on improperly analyzed data
 identifies weaknesses in your overall business plan

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“Marketing strategies
of McDonald’s”

ACTUAL FACTS ABOUT MCDONALDS COFFEE CASE

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On February 1992 the headlines of news paper hits with a McDonalds coffee
case news. The case was about Stella Lie beck of Albuquerque, New Mexico,
was in the passenger seat of her grandson's car when she was severely burned by
McDonalds' coffee in February 1992. Lie beck was 79 at the time, ordered
coffee that was served in a Styrofoam cup at the drive through window of a local
McDonalds. After receiving the order, the grandson pulled his car forward and
Stopped momentarily so that Lie beck could add cream and sugar to her Coffee.
Lie beck placed the cup between her knees and attempted to remove the plastic
lid from the cup. As she removed the lid, the entire contents of the cup spilled
into her lap. The sweatpants she was wearing had absorbed the coffee and held it
next to her skin. A surgeon determined that Lie beck suffered full Thickness
burns over 6% of her body, Including her inner thighs, perineum, buttocks, and
genital and groin areas. She was hospitalized for eight days, during which time
she underwent skin grafting. Lie beck, who also underwent debridement
treatments, sought to settle her claim for $20,000, but McDonalds refused.

Till today no one knows about their final ending of the case. The parties
eventually entered into a secret settlement which has never been revealed to the
public.

HISTORY OF MCDONALD’S

The story of McDonald’s was started in1940, as a fast food restaurant by two
brothers’ named Richard and Maurice McDonald in San Bernardino, California
in US. The name of restaurant was McDonald’s Hamburgers, by mid-1950s their
restaurant revenue had reached $350000.Raymond Kroc, the distributor for milk
shake machines expressed interest in their business and finalized the deal for
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franchising with both the brother’s. He established a franchising company called
McDonald system incorporation. In 1955 he became the founder of McDonald’s
and bought out the McDonald brothers share for $2.7 million and changed the
name of the company to McDonald’s corporation. Kroc proved himself as a
pioneer who revolutionized the American restaurant industry. Today McDonald’s
is the California 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. Though the company has roots in the US, McDonald’s today
has become an ACCEPTED CITIZEN OF THE WORLD.

MCDONALD’S STARTS IN INDIA

McDonald’s entered India in 1996.The first McDonald’s restaurant was opened

on October 13th at Basant Lok in Vasant Vihar. McDonald’s in India is a 50-50
joint venture between Connaught Plaza Restaurants and Hard Castle Restaurants.
Which are owned and managed by Vikram Bakshi and Amit Jitia respectively
Connaught Plaza Restaurants operates in North India whereas Hard Castle
Restaurants operates in Western India. After opening their outlets in various
metro cities, the company is now trying to expand in cities like Pune and Jaipur
also.but, the Indian consumers avoid burgers made from beef and pork which is
taboo according to their religions. So in order to evade this problem the Indian
menus of McDonald’s was Indianised and specifically design in such manner that
it can boost its products to Indian consumers, the menu includes chicken burgers,
veg burgers, veg pizza’s, happy meal for children’s, beverages and deserts.
Today there are 79 outlets in north-east India and more than 53 outlets in south-
west India.
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 MCDONALD’S FRANCHISE MODEL

RAYMOND KROC

VIKRAM BAKSHI AMIT JATIA

MISSION STATEMENT
"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."

MARKETING STRATEGIES OF MCDONALD’S

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BUSINESS STRATEGY

FRANCHISE MODLE – As per franchise model of McDonald Only 15% of the

total number of restaurants are owned by the Company. The remaining 85% is
operated by franchises. The company follows all the framework of training and
monitoring of its franchises to ensure that they achieve good QUALITY
SERVICE,CLEANLINESS AND VALUE FOR THE MONEY 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 the nations of the world.

ACT LIKE RETAILER THINK LIKE A BRAND- McDonald’s focuses not only
on delivering sales for the immediate present, but also protecting its long term
brand reputation.

STRATEGY AS PER INDIAN MARKET

RE–ENGINEERING THE MENU-McDonald’s thinks according to the

customer’s tastes, value systems, lifestyle, language and perception. Globally
McDonald’s was famous for its hamburgers which are prepared from beef and
pork burgers. But, most Indians religion does not allow them to consume beef or
pork. So in order to satisfy demand as per Indian preference, McDonald’s came
up with chicken, lamb and fish burgers to suite the Indian diet.

THE VEGITERIAN CUSTOMER-India has a huge population of vegetarians.

To satisfy this customer’s demand, the company came up with a completely new
menu of vegetarian items like McVeggie burger and McAlooTikki. The
separation of vegetarian and non-vegetarian sections is maintained throughout
the various stages.

EXAMPLE OF VEG BURGERS:

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 MCVEGGIE MCALOOTIKKI

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. If they
take children into consideration, children are more attracted towards toys and
delicious meals including today’s youth prefer such places for their entertainment
and the urban families select McDonald’s on various occasion like birthday
party, treat to their children etc.

As shown in the above diagram, kids are on the top most level in FMCG
purchase related to food products. So to attract children’s McDonalds has Happy
Meal in which they gift one toy on each happy meal, there are toys ranging from
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hot wheels to various Walt Disney characters. Example of the latest range is the
toys of the movie Madagascar.

For this, they have a tie-up with Walt Disney. At several outlets, it also provides
special facilities like ‘PLAYING PLACE’ where children can play arcade games,
air hockey, etc.

This strategy is targeting in making McDonald’s a fun place where you can enjoy
both playing and eating. This also helps McDonald’s to attract the young urban
families who wanted to spend some quality time, while their children can enjoy
every movement of McDonald’s. To target the teenagers and young youth,
McDonald’s has priced several products aggressively, keeping in mind the price
sensitivity of this target customer. In addition, facilities like Wi-Fi are also
provided to attract students to the outlets, example of such outlet is of a Vile
Parle situated in Mumbai.

“MCDONALD’S MEIN HAI KUCH BAAT” projects McDonald’s as a place for

the entire family to enjoy. When McDonald’s entered in India it was mainly
targeting the urban upper class people. But, today it had positioned itself as an
affordable place to eat without compromising on the quality of food, service and
hygiene. The outlet atmosphere and mild background music highlight the
comfort that McDonald’s promises in slogans like “YOU DESERVE A BREAK
TODAY”, “FEED YOUR INNER CHILD”. This commitment of quality of food
and service in a clean, hygienic and relaxing atmosphere has ensured that
McDonald’s maintains a positive relationship with their customers.

TOYS FOR CHILDREN WITH HAPPY MEAL

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MCDONALD’S MARKETING MIX (5P’S) STRATEGY

After analyzing the market, finding the key factor, target segment and
understanding the market demand, every company needs to come up with an
offers or such type of plan, that speed up the growth of the company. For which
McDonalds uses 5p’s of marketing mix which are as follows:

1. Product
2. Place
3. Price
4. Promotion
5. People

PRODUCT:

Product includes that, how the company should design, manufacture the product
so that it enhance the customer experience?

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Product is the physical product or services offered by the company to its
customers. McDonalds includes certain aspects of its product such as packaging,
desirability, looks etc. This consists of both tangible and non-tangible aspects of
the product and services.

McDonalds has purposely kept its product depth and product width limited.
McDonalds had first studied the behavior of the Indian customer and provided a
totally different menu as compared to its menu offered in International market. It
removed pork, 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 and latest introduction
of chicken style is Chicken Mcnuggets.

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McDonalds brings best product of quality and of best features as per the
preference and demand of the target market.

PLACE:

The place mainly consists of distribution channels and outlets of the company. It
is considered as very important because the product must be available to the
customer at the right place, at the right time and in the right quantity. In U.S.A
nearly 50% of outlets are situated within the distance of 3 minutes.

There are certain degree of fun and happiness that McDonalds provides to its
customers. It provides value position based on the needs of the customer.
McDonalds offers proper hygienic atmosphere, good abidance and better
services.

Now McDonalds have also started offering internet facilities at their outlets,
along with music system through radio, not the normal music but the music
which is preferred by young generation in order to attract them.

There are also games for children the one example is air hockey. Children play
games till the time there parents spend quality time in McDonalds.

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 ez

PRICE:

Pricing strategy is most important aspect of Marketing Mix. It includes price list,
if any discount facility available or payment facility available. It should also take
into consideration the possible reaction from its competitors regarding the
pricing. Pricing is very much necessary because it is this part, which decides
revenue for the business unit.

All the other three are the expenses incurred in the business. The price needs to
take demand and supply equation into consideration by analyzing the pricing
demand as per Indian market.

McDonald’s came up with a very grasping punch line “Aap ke zamane mein
,baap ke zamane ke daam”. This pricing strategy was founded to attract middle
class and lower class people and the effect can clearly be seen in the consumer
base that McDonalds has now.

McDonalds has certain value pricing and bundling strategies such as happy meal,
combo meal, family meal, happy price menu etc to increase overall sales of the
product.

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PROMOTION:

The promotional activities adopted by the McDonald helps to communicate

efficiently with the target customers. The diagram gives idea about the promotion
strategy of McDonalds. Application of above mentioned Communication Mix
describes the cost that is feasible as per the consumers. Some of the most famous
marketing campaigns of McDonald’s are:
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“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”.

McDonald's corporate used advertising, personal selling, sales promotion, public

relations, and direct marketing and became world’s largest leading Burger
Empire. These five promotion tools are used by McDonalds to integrate
marketing communication program which allows McDonalds to access the
communication channels clearly, consistently and easily transfers messages and
product to the target audiences.

SETTING THE PROMOTION MIX

An Advertisement is targeted to attract the masses it reaches

to large number of people at a time. Advertising is one of the most important
tools for promotion which had various ways of advertisement in that
advertisement through billboards and media are often used by any of the business
enterprise. Consumers mostly perceive goods which are advertised goods, as they
assume it is more rightful.

Due to distinct features of advertisement McDonalds also hold the hand of

Advertising. There are three main objectives of advertising for McDonald’s are
to make people aware of an item, feel positive about it and remember it. The
right message has to be communicated to the right people 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.
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 Personal selling is most effective tool for building buyers
preference, convenience and actions. Personal interaction allows knowing for
feedback and adjustments if required. If the organization had a good Relationship
with Buyers they are more attentive towards personal selling.

In personal selling McDonalds employees working in different outlets are the

best example of personal interaction, the employees are directly serving the
customers so, and the face to face communication is easily possible. In the
McDonalds outlet there are such staff which are appointed for personal selling
they are the one who perform the activities regarding selling up of goods to
customers.

sales promotion activity consist of promoting the business

unit through organizing various contest, programmes, functions, distribution of
free discounts coupons etc that attracts attention of the customers, Also offers
strong purchase incentives, dramatizes offers, boosts sagging sales Stimulates
quick response; Short-lived; Not effective at building long-term brand
preferences.

McDonalds organizes several sales promoting contest and programmes in

different retail markets and outlets in which they distributes free discounts
coupons. The statue of Mascot McDonalds is always there for any occasions that
are also one of the logo of McDonalds.

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 Highly credible; Very believable; Many forms: news stories,
news features, events and sponsorships, etc.; Reaches many prospects missed by
means of other forms of promotion; Dramatizes company or product; Often the
most under used element in the promotional mix; Relatively inexpensive
(certainly not 'free' as many people think--there are costs involved)

Public Relations are also an important part of the McDonald's marketing strategy.
The restaurant employees play a huge role in interacting with the public. On a
day-to-day basis the employees commit themselves to customers and the
customers' feelings toward the brand. McDonald's feels that before they
communicate with their customers they need to be aware of what their
competitors are communicating, so they can create a beneficial difference
between themselves and the competitors.

Many forms: Telephone marketing, direct mail, online

marketing, etc.; Four distinctive characteristics: Nonpublic, Immediate,
Customized, Interactive; Well-suited to highly-targeted marketing efforts.

Direct marketing is also one of the efficient tools for promotion. The McDonalds
uses tool in the home delivery services in which they directly serve the order to
their home. Also they have a websites which are more in preference for direct
marketing in that they usually mentioned all the new offers along with the
contact number of your nearby outlets.

PEOPLE:

McDonald’s understands the importance of both its employees and its customers.
It understands the fact that a happy employee can serve well and result in a happy
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customer. McDonald continuously does Internal Marketing because if the
internal marketing is effective it will automatically lead to in the success of
external marketing.

Internal marketing includes hiring, training and motivating employees. In this

way they can easily serve customers and the result will be the smiling faces of
the customers. The level of importance has to be placed in the following order
(the more important people are at the top):

1. Customers
2. Front line employees
3. Middle level managers
4. Front line managers

The punch line “I’m loving it” is an attempt to show that the employees are
loving their work at McDonalds and will love to serve the customers.

CO-BRANDING STRATEGY

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Co-branding strategy is also one of the beneficial instrument for boosting the
business and providing different the same things in different manner. In fact co-
branding means having a tie ups with another firm and serving the customer with
both the products. It helps in making profit for both the business enterprise as
well as to increase their sales and growth of organization.
The two different brands enter into co-brand through certain contracts or
agreement and as per the agreement they bifurcates their earnings from their
brands. There are different examples of co-branding strategy of McDonalds
which are as follows.

COCA-COLA

Coke is one soft drink brand that had tie up with McDonalds since past many
years. In McDonalds the coke is the best beverage in cold drinks which are
served to the customers along with different menus of the McDonalds for
example happy meal, happy price menu etc. As coke is preferred by children’s
even their parents as well as the young youths. Therefore by keeping in mind the
consumer wants they came up with Coca-cola. In fact this co-brand of
McDonalds is initiated to increase the volume of sales of the both the business
enterprise.
And of course this co-branding strategy has encouraged both the business in
achieving the successful returns of customer’s satisfaction.

On April 27, 2009 – The Coca-Cola Company had announced a 'refreshed' line
up of fountain and bottle beverages that will be added to McDonald's U.S.
restaurants, beginning this year. This effort -- part of a larger beverage strategy --
will provide McDonald's customers even more beverage choices and meet
customers' changing taste preferences and desire for more suitable, convenient
beverage options.

COCA-COLA AND MCDONALDS

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WALT DISNEY

A Parade of Disney Happy Meal Toys.

McDonald's will introduce a collection of 100 exclusive Happy Meal toys as they
are inspired by Disney's admired collection of dramatic, video and television
characters. Representing more than 40 Disney films, the McDonald's premiums
include a mix of new and classic Disney characters, allowing kids and parents of
all ages to recall their favorite Disney memories.

Each Happy Meal premium is fully decorated and is featured on a memorial

base, which includes the character's debut date, character's name and the Walt
Disney World "100 Years of Magic" logo.

The McDonald's Happy Meal promotion featuring the Walt Disney World "100
Years of Magic" celebration is a historical collection of Disney favorites, from
classic characters like Mickey Mouse, Dumbo, Cinderella, and Mary Poppins to
the newer innovations, including: Ariel, Aladdin, Bianca, Pocahontas, Tarzan,
Jesse and Hercules.

One toy is included with each Happy Meal and can be purchased at participating
McDonald's restaurants, while supplies last.But, unfortunately the Walt Disney
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had end the relationship with McDonalds due to some genuine reasons. Thus
Walt Disney is considered as X-co-brand of McDonalds.

WALT DISNEY AND MCDONALDS

BARBIE TOYS

McDonald's Barbie Toys have been included with Happy Meals repeatedly since
the Happy Meal has been in existence. Over the last thirty years, Barbie has been
one of the most popular toys in a McDonald’s Happy Meal. 

Barbie Happy Meal Toys have taken the form of a variety of Barbie doll
favorites. These toys have become a highly sought after segment for collectors of
both Barbie’s and McDonald's toys.

McDonald's Barbie Toys comes in eight collectible characters in 1994, including

Bicycling’ Barbie, Jewel and Glitter Shani, Camp Barbie, and Camp Teresa. 

Each Barbie miniature was 4 and ½ inches tall. Since then, the Barbie and
Friends dolls have been collectible Happy Meals toys in 1996, 2004, 2005 and
2007, to just name a few.  If you missed any of the McDonald's Barbie toys that
you may need to buy for your collection of dolls, you will find them for sale on
eBay.

BARBIE AND MCDONALDS

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CADBURY
McDonald’s have included Cadbury in the beverages prepared with Cadbury and
creamy milk shake mostly loved by children. England has combined two favorite
things that are Cadbury and crème eggs.
Now McDonalds is offering a Cadbury Crème Egg McFlurry. It is tasty and rich
also it is provides some quantity of protein and vitamins as it is made from eggs
and milk, A cold crème eggs with the vanilla ice cream, mix in a sauce that looks
like the yellow yolk, and add in delicious chocolate bits.
The tasteful McFlurry have also worked in anticipating the taste of the customer.
Therefore, it is considered as one of the most preferring beverages in the menus
of McDonalds.
CADBURY AND MCDONALDS

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HOT WHEELS

The History of McDonald's and Hot Wheels die-cast cars: McDonald's has
attempted to develop promotions for children, since 1961 with small related
plastic toys, in their Happy Meals. The first models of cars distributed for
McDonald's started in 1983, using the Hot Wheels models of the normal line and
followed all the way through 1990. In 1991 McDonald's found another way to
distribute the Hot Wheels in their Happy Meals for the first time.

Some of these were Hot Wheels by Collector Number and were also placed in a
factory plastic baggie for the first time. Since then, some annual promotions
related the models of cars had been made. They had enclosed models like, Hot
Wheels, Matchbox, Stompers 4X4, Tonka and Bigfoot toys.

HOT WHEELS AND MCDONALDS

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MCDONALD’S TIE UP WITH HINDUSTAN AND BHARAT
PETROLEUM PERTROL PUMPS
The strategy behind opening their outlets near petrol pumps is that they can serve
their products even on the highways. McDonald’s already has 14 outlets on
national highways and they are planning to open 50% of their stores in the
coming year on the highways.

In order to achieve that, they tie up with oil marketing companies like Hindustan
petroleum and Bharat petroleum to open on revenue-sharing model.

The reason behind starting their outlets on highways is to serve those customers
who perform their day to day activities through highways. People mostly prefer
food stores on highways for dinner purpose, their will hardly some people who
go for a breakfast. So, idea of McDonalds to start on highways is that they can
offer even dinner as well as their existing fast food items.

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ADVERTISING

Advertising - Advertising is any paid form of non-person presentation and

promotion of ideas, goods, or services by an identified sponsor. There are three
goals of advertising. These goals are to:

1. Inform
2. Persuade and
3. Remind.

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The major media for advertising are as follows: Newspapers, Television, Direct
mail, Radio, Magazines, Internet, Outdoor (billboards, blimps, etc.), Yellow
pages, Newsletters, Brochures, and Telephone.

The traditional conceptual model for creating any advertising or marketing

communications message is the AIDA Model: get Attention, hold Interest, arouse
Desire, and then obtain Action.

ADVERTISING STRATEGY

There have been many McDonald's advertising strategy and slogans over the
years. McDonald’s is one of the most widespread fast food advertisers.
McDonald's Canada's corporate website says that the business campaigns have
always focused on the "overall McDonald's experience", rather than just product.
The purpose of the image has always been "portraying warmth and a real slice of
everyday life." Its TV ads, showing various people engaging in popular activities,
usually reflect the season and time period. Finally, they have never in their
advertising history used negative or comparison ads pertaining to any of their
competitors; the ads have always focused only on McDonalds alone. McDonalds
has for decades maintained an extensive advertising campaign. In addition to the
usual media television, radio, and newspaper, the company makes significant use
of billboards and signage, sponsors sporting events ranging from Little League to
the Olympic Games.

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Television has always played a central role in the company's advertising strategy.

Today, McDonald's has used 23 different slogans in United States advertising, as

well as a few other slogans for select countries and regions because slogans is
also considered as important factor in advertising strategy.

SLOGANS
US
Let’s eat out! (1960-1965)
Look for the Golden Arches! (1965-1967)
The closest thing to home (1966-1969)
McDonald's is your kind of place (1967-1971)
You deserve a break today (1971-1975)
Enjoy the best food at McDonald's (1973, concurrent with 1971 slogan)
We do it all for you (also known as you, you're the one) (1975-1979)
Nobody can do it like McDonald's can (1979-1980)
You deserve a break today (1980-1983)
Nobody makes your day like McDonald's can (1980-1983)
We cook it all for you at McDonald's (1982, concurrent with 1980 slogans)
McDonald's and you (1983-1984)
It's a good time for the great taste of McDonald's (1984-1988)
It's Mac Tonight (1985, Mac Tonight advertising)
McDonald's is your place to be (1986)

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Good time, great taste (1988-1990)
There's nothing quite like a McDonald's (1988-1990)
You Deserve A Break Today (1989-1990, concurrent with 1988 slogan)
Food, folks and fun (1990-1991)
McDonald's Today (1991-1992)
What you want is what you get (1992-1995)
Do you believe in magic? (1993-1997, Happy Meal advertising)
Have you had your break today? (1995-1997)
My McDonald's (1997)
Did somebody say McDonald's? (1997-2000)
We love to see you smile (2000-2003)
Put A Smile On (2000-2003)
Smile (2002-2003)
I'm loving' it (2003-present India)

BRANDING AND BRAND LOYALTY

When you see the golden arches, what is the first thing that comes to your mind?
Or what about when you see Ronald the clown, what comes to your mind?
Finally, what has 2 all, special sauce, lettuce salad on a sesames bun? Hmmm…
Sounds a lot like McDonald’s knows how to capture your attention.

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One of things that McDonald’s has proved is that they are good at building its
brand loyalty. Even young children know that when you see the golden arches
that you are close to a McDonald’s. With its international expansion efforts,
McDonald’s has become one of the most recognized brands world-wide. A
couple of the things that has helped to build McDonald’s brand is their constantly
changing menu and brand packaging that meets the needs of their consumers.

POSITIONING STRATEGY

McDonald’s positions itself as the leader in quick service restaurants. In order to

maintain their standard, they have started marketing to a younger set of persons,
much in the same way that their “I’m Loving It” campaign does.

They have send out FSI’s (free standing inserts) as designed at the end of this
report to ensure that their loyal customers will be motivated enough to try the
new campaign even though they have always loved and used McDonalds.
These FSI’s will also act as a way to get customers who may have never been to
the store. Users and non-users alike will use the Club McDonalds to their
advantage. They expect that their younger target will seek out memberships in
Club McDonald’s.
The online points-tracker and profile will add to the innovation factor. No need
of paperwork when figuring out your point totals and prize eligibility. This is
easy to use aspect of the promotion is appealing to those who were born with
computers.

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Club McDonalds is targeted at younger people who are familiar with credit cards
and some of the rewards cards that are part of them.

WORLDWIDE GROWTH STRATEGY

McDonald's growth strategy is based on three elements;

1. Adding restaurants.

2. Maximizing sales and profits at existing restaurants.

3. Improving international profitability.

Maximizing sales and profits at existing restaurants will be

accomplished through better operations, innovation, product
development and refinement, effective marketing and lower
development and operating costs.

Improved international profitability will be realized as economies of scale are

achieved in individual markets and as the company benefits from the global
infrastructure.

SERVICE MANAGEMENT STRATEGY

If we take any fast food restaurants the customer attracts firstly through brand
and secondly with the most important thing to consider i.e. is services offered to
them.

If the services of any enterprise is not suitable to customer than it achieve the aim
that has been proposed by them.

This research describes the service management strategy employed by

McDonald's Corp. in the operation of their fast food restaurant chain.
The company's service management strategy is described within the context of
the service model. In this model, market segment, the philosophy culture image
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of the company, service systems, and human resources are considered. The
service of the company is identified through following tools:

TRAINING POLICY
It is the goal of McDonald's to develop the highest level of skill
among all employees. Therefore, a common training programme
has been established to develop staff and to meet the training
needs of the company.
McDonald’s Head of Training is responsible for implementing and directing the
training programme throughout the company. Operations Supervisors and
Restaurant Management participate in the programme and are responsible for
individual restaurant
results.

CREW MEMBERS
1. Each crew member receives on-the-job training in every area of the restaurant.
2. Full-time staff is fully trained on all stations in the restaurant within five
months, part-time within ten months.
3. All 5-star crew members receive a Basic Certificate in Food Hygiene,
validated by the Institution of Environmental Health Offices.

BUSINESS MANAGEMENT PROGRAMME

1. A management programme for those over 21 aiming for a directroute into
restaurant management following an intensive and structured training course.

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2. All managers follow the Management Development Programme. The first
three months cover the three fundamental areas of the business:

 Food preparation
 Cooking
 Serving customers in clean and hygienic surroundings.

This is followed by a series of 12 training courses designed to back up what is

learnt in the restaurant and develop management, communication and leadership.
When promoted to Restaurant Manager, training continues through the Advanced
Operations Course covering staff development, motivation, stress management,
communication and leadership.

CUSTOMER PERCEPTION AND CUSTOMER EXPECTATION

Customer perception is a key factor affecting a product’s success. Many

potentially changed products have failed simply because of their inability to build
a healthy perception about themselves in the customers’ minds. McDonalds
being an internationally famous brand brings with it certain expectations for the
customers.

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TARGET SEGMENTS VISITS MCDONALDS TO

A parent with two children. Visits McDonald’s to give the children a treat.

children’s Want to visit McDonald’s as it is a fun place to eat.

A business customer Visits McDonald’s during the day as service is

quick; the food tastes great and can be eaten in the
car without affecting a busy work schedule.

Teenager Hangout with friends, but keep it affordable.

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.

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MCDONALD’S HEALTHY EATING POLICY
McDonald's is committed to providing high quality, safe and
healthy food. It recognizes the relationship between a balanced diet, lifestyle and
health.
It supports the recommendations of the 1991 Committee On Medical Aspects of
Food Policy (COMA) report and the targets laid down in the Government's
White Paper’ The Health of the Nation' by ensuring products conform with the
guidelines. McDonald’s contributes to the development of wider healthy eating
policies by working with government departments and organizations dedicated to
healthy eating.

PRODUCTS
McDonald's continually reviews how its products relate to dietary
recommendations, at the same time it ensures maintenance of quality, taste and
value.

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McDonald's continues to seek quality new products which are in
line with dietary recommendations but, which satisfy customers'
expectations. McDonald's committed to reduce the amount of additives,
especially preservatives and colorants in the products.
CUSTOMERS
McDonald's helps customers to balance their diet by providing
detailed Nutritious information on all its products.
STAFF
McDonald's encourages staff to understand the principles of healthy eating.
Specials training programmes are held for attainment of this objectives.
PARTNERS
McDonalds works closely with franchises, suppliers and distributors to meet their
commitments to quality, nutrition, hygiene and food safety.

ANSOFF PRODUCT MARKET GROWTH MATRIX

The Ansoff Product-Market Growth Matrix is a marketing tool created by Igor
Ansoff and first published in his article "Strategies for Diversification" in the
Harvard Business Review (1957). The matrix allows marketers to consider ways
to grow the business via new products, new markets – there are four possible
product/market combinations.
This matrix helps companies decide what course of action should be taken given
current performance. The matrix consists of four strategies:
1. Market penetration strategy
2. Market development strategy
3. Product development strategy
4. Diversification

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MARKET PENETRATION STARTEGY

Market penetration is one of the four growth strategies of the Product-Market

Growth Matrix defined by Ansoff. Market penetration occurs when a company
enters/penetrates a market with current products. The best way to achieve this is
by gaining competitors' customers.
Other ways include attracting non-users of your product or convincing current
clients to use more of your product/service. Market penetration occurs when the
product and market already exists in market. McDonalds is one most popular
brand in fast food in entire world. In 1975, the first McDonalds opened at Hong
Kong, many thought that this is was wrong move for McDonalds. Various
reasons were laid for this claim. Although, the main reasons lays on the fact that
Americans and Hong Kong Chinese at that time have very different perception
about food. McDonalds, being an American food chain, view breads full meal
while Hong Kong Chinese view them as snacks. As time went by, McDonalds
slowly became the part of the Hong Kong landscape and way of life rather than
just being an outpost of American culture. Hong Kong Chinese soon accepted
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that the food McDonalds serve are ordinary, thus they are for ordinary people
like them.
Future more, believes that the introduction of McDonalds to the Hong Kong
society changed the direction of the Hong Kong cultural framework. Along with
the rest of the world, Hong Kong was also McDonalized.

MARKET DEVELPOMENT STARTEGY

A market development strategy targets non-buying customers in currently
targeted segments. It also targets new customers in new segments.
A marketing manager has to think about the following questions before
implementing a market development strategy: Is it profitable? Will it require the
introduction of new or modified products? Is the customer and channel well
enough researched and understood?
The marketing manager uses these four groups to give more focus to the market
segment decision: existing customers, competitor customers, non-buying in
current segments, new segments. McDonalds is currently following above
mentioned strategy, to focus on market segments. For serving synonymously to
the existing customers they are coming up with different menus as per change in
taste and preference of their customer e.g.: happy price menu, beverages
including milk shakes and cold coffees etc. Also, by keeping in mind their rivals
they are introducing products to compete them e.g. to answer the KFC they came
up with chicken mcnuggets. They are adopting pricing policies for non-buying
customer and as well as new segments.

PRODUCT DEVELOPMENT STRATEGY

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In business and engineering, new product development (NPD) is the term used to
describe the complete process of bringing a new product or service to market.
There are two parallel paths involved in the NPD process: one involves the idea
generation, product design, and detail engineering; the other involves market
research and marketing analysis.
Companies typically see new product development as the first stage in generating
and commercializing new products within the overall strategic process of product
life cycle management used to maintain or grow their market share.
McDonald's is always within the fast-food industry, but frequently markets new
burgers. Frequently, when a firm creates new products, it can gain new customers
for these products. Hence, new product development can be a crucial business
development strategy for firms to stay competitive. McDonald’s are always
enhancing their existing product along with it; they also try to introduce new and
new products so that they can easily survive in market.

DIVERSIFICATION
Diversification is a form of growth marketing strategy for a company. It seeks to
increase profitability through greater sales volume obtained from new products
and new markets. Diversification can occur either at the business unit or at the
corporate level. At the business unit level, it is most likely to expand into a new
segment of an industry in which the business is already in.
At the corporate level, it is generally and it’s also very interesting entering a
promising business outside of the scope of the existing business unit.
McDonald's made its foray into the hospitality industry in 2001, opening two
hotels in Switzerland, at Zurich and Lully. The "Golden Arch Hotels" were
positioned as four-star facilities with the latest in-room technology and very
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original, modern interior design. Reactions and reviews of guests following their
stay there were mixed.
Most seemed to agree, that the hotel's four-star rating didn't seem to correspond
with McDonald's image. The Golden Arch in Zurich is McDonald's first hotel.

IMPORTANCE OF PLC IN MCDONALD’S

The requirements of customers change over time and thus the product offering
has to be changed accordingly. What is the trend today may be out of market
within few weeks. Thus continuous innovation is required.

To counter these changes McDonalds has continuously introduced new products

and has phased out the old ones which were at the decline stage of their PLC.
The introduction is timed such that the new product does not cannibalize (which
eats same of it) the product already in the maturity or growth stage. Thus the

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secret lies in getting profits with different products in the different stages of the
PLC.

A perfect example of revitalizing a product in decline phase

The French Fries have been an important part of the McDonalds menu
worldwide. But now it was in the stage of decline and was actually not
generating proper return. In an attempt to revitalize it, a new variant was
introduced namely Shake Shake Fries. This is being served with chatpata spice
mix which has resulted in increase in the sales of French Fries and has elevated it
from to the decline stage.

This is used to delay the decline of a well established product which has the
potential of generating further revenue.

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MCDONALIZING THE SUPPLIERS

McDonald’s has changed the nature of not only the food service industry but also
the food processing industry as well. McDonald’s realized that the battle between
fast food chains would increasingly be one of efficiency of supply, lower cost
production and greater desire to innovate. It pioneered with innovative and
sophisticated food distribution and packaging systems when the traditional food
processors were unwilling or unable to supply food items that McDonald’s
demanded. They achieved amazing consistency by giving more attention than
anyone else to field service and training at store level. Production was
concentrated in huge plants devoted exclusively to McDonald’s. McDonald’s
also started with tiny suppliers and grew with them displaying great loyalty.

Nowhere is the supplier loyalty more evident than in development of new,

improved products. Some of McDonald’s classic food items like Filet-o-Fish,
French Fries, and Chicken Nuggets etc. are results of supplier innovation.
Interestingly, it took KFC more than three years before in finally introduced its
own version of chicken nuggets. Thus supplier technological expertise had given
McDonald’s a product which was not a mere marketing innovation but a
technical one. McDonald’s attempted to squeeze labour out of the stores by
moving more preparation back into the processing plant, creating the opportunity
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to develop unique products based on suppliers’ processing skills. For the first
time, McDonald’s suppliers became the focal point of new product development.
This converted the fast-food industry’s most fragmented distributed system into
more efficient one which helped McDonald’s reduce its inventory and manage
costs effectively.

OPERATIONS COMPETITIVE STRATEGY

McDonald’s Corporation competes in a challenging market segment by

providing need-satisfying products to customers. In this segment, ineffective
competitors often fail without proper strategies.
To sustain its viability, the McDonald’s corporation employs an effective
competitive strategy to make it stand out against competitors such as other fast
food restaurants. McDonald’s competes on several bases, including:
1. Cost
2. Speed and
3. Nutrition
their strongest priority is “making customers happy”. The company recently
made strong changes to its process by introducing the “Made for You” system.

COMPETITOR’S ANALYSIS

McDonald’s has been a leading fast-foods outlet in Vile Parle. But the outlet
understudy has other competitors eating away into its market share. In addition to
its traditional rivals—KFC, Dominos, Pizza Hut—the firm encounters new
challenges. Jumbo King competes using a back-to-basics approach of quickly
serving up burgers for time-pressed consumers. On the higher end, the KFC has
become potent competitor in the quick service field, taking away customers from
McDonald’s.
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Perhaps in the new environment, fast, convenient service is no longer enough to
distinguish the firm. At this time, a new critical success factor may be emerging:
the need to create a rich, satisfying experience for consumers.

This brings us to service and experience based competition which McDonald’s

can use for competitive advantage against Jumbo King. Keeping in mind the
demographics of the area, McDonald’s has Wi-Fi enabled the outlet to cater to
the student community.

It is for this overall “Food, Fun & Folks” experience that customers pay a
premium over the other competitors.

MCDONALD’S COMPETITOR’S:

COMPETITION BASES:
SPEED
McDonald’s competes on several bases mainly to “make their customers happy”
by providing speedy, affordable, and nutritious foods.

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Through extensive market research and survey, the organization discovered that
its customers desire speed as one of the restaurants’ top priorities.
Therefore, McDonald’s vision aims to “provide fast, friendly and accurate
service”. McDonald’s realizes that specific targets are necessary to measure the
performance of speed, and continuously takes relevant measurements to compare
actual performance with desired targets. To achieve efficient service times, the
company utilizes proven, standardized training processes for its employees and
new drive-thru layouts to reduce service times. Along with speed, McDonald’s
also competes by offering prices at a low cost.
COST
To offer high quality products at low cost requires efficient processes throughout
the entire McDonald’s organization.
Once again, this goal is built into their vision statement when they claim that
“We will be the most efficient provider so that we can be the best value to the
most people”. McDonald’s incorporates several ways of approaching to provide
great value to its customers. One strategy that the company has employed for
many years is the value meal.

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The value meal allows customers to buy a sandwich, French fries, and beverage
at a discount when purchased together. McDonald’s restaurants offer from seven
to twelve value meals, both for their lunch menu and breakfast menu.More
recently, McDonald’s began offering a value menu, consisting of many
individual items costing only $1.00 each. First tested in southern California, the
value menu has proved to be very successful and has been since incorporated to
the individual stores.
Some individual franchise owners choose to offer daily specials of special menu
items, such as “$0.39 hamburger Wednesdays,” or other similar specials. Big
Mac Mondays are a popular regional promotion.
NUTRITION
McDonald’s third main competitive base is nutrition. The organization
understands that health trend is an increasingly popular trend therefore; the
organization has recently focused extraordinary efforts to promote their new
nutritious choices. Although not specifically built into the organization’s vision,
McDonald’s has already introduced many options to achieve this goal.
In the United States, “Go-Active” meals have been offered within the last few
years. These meals include a salad, bottled water, and a “step-o-meter” to help
customers keep track of how many steps they take a day.
Other countries have seen similar healthy options. The United Kingdom saw
fresh fruit bags, containing apples and grapes, as an alternative to French fries.
Not only does McDonald’s care about its customers, but it is also considerate of
its employees’ health. In Europe, the organization worked with external
nutritionists to develop an “Employee Guidebook” which contains tips and
nutrition information for healthy lifestyles.
McDonald’s has assembled their Global Advisory Council on Balanced
Lifestyles. This council consists of exercise & obesity specialists,

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environmentalists, and other professionals to ensure that McDonald’s takes
appropriate steps in helping its customers achieve optimal health.
The company is also utilizing technology to their advantage. The current
McDonald’s website lets a user select any combination of menu items, place the
items in the online bag, and conduct a nutritional analysis on their selections. The
user can break down the analysis even further than a menu item, down individual
condiments, including ketchup; pickles etc. Not only has the company introduced
many steps to ensure nutrition, but it will strive to continue the trend toward
nutrition. McDonald’s plans to add additional healthy menu options (fruits and
vegetables) increase nutrition awareness among McDonald’s employees;
conceive new ways to deliver nutrition information to its customers, and other
actions.

CHANGE IN STRATEGY
Made for You
McDonald’s organization recently underwent drastic strategy changes to serve
better to their customers. Under their “old system,” the company would make
several sandwiches at once, and hold the sandwiches in a warming bin until
purchased by a customer. Under this system, management had to accurately
predict how much food had to be put on hold. Accurate prediction had to be used
because if there were not enough food placed on hold, this would create the
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problem of increase waiting times for customers, and too much food would cause
waste of expired items. McDonald’s dramatically changed their strategy in order
to stay competitive with other fast food organizations.
In 1999, McDonald’s spent $181 million to introduce their “Made for You”
system. Under this new system, standard food items are not held in a bin until
they are sold. In the “Made for You” system, modern technology greatly assists
McDonald’s operations. When a customer places an order, the sandwich items
are immediately displayed on a computer monitor in the kitchen and a tone
sounds to alert the kitchen staff.
Upon a new order, an employee in the kitchen will toast the bun, and assemble
the sandwich accordingly.
Standard items simply list the name of the sandwich, while customized orders list
the sandwich name and the desired condiments. Once the sandwich is
assembled, it is presented to the food loading area, where a different staff person
retrieves the sandwich and completes the order by adding French fries, desserts,
etc. The system works the same for front counter orders as well as drive-thru
orders.
Unfortunately, the introduction of the “Made for You” system did not come
easily. McDonald’s watched its customer satisfaction drop for the three
consecutive years beginning in 1999.
After further research, they realized that although the new system provided
fresher food, it was not as quick as the previous system. Instead of reverting back
to the old system, McDonald’s continues to fine tune “Made for You” and add
new options to help the system work faster.
Revitalization Plan
In order to cope with the first ever quarterly loss that resulted from inefficient use
of the Made-for-you-system McDonald’s has devised a new plan to increase

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profits. Previously, the corporation emphasized adding more restaurants to
increase sales, but the new plan places emphasis on increasing sales at existing
restaurants.
The new plan will reduce spending, to enable more cash to shareholders through
dividends and share repurchases. Specific goals of the revitalization plan are to:

 Attract new customers

 Encourage existing customers to visit more often
 Build brand loyalty
 Create enduring profitable growth

The main goal is to increase sales by creating an exceptional customer

experience. McDonald’s plan is to achieve this goal by focusing on its people,
products, places, prices, and promotions.
Menu
Along with changes in their process strategies, McDonald’s has flirted with menu
changes as well. Last year, they offered a “new taste menu,” where they offered
a new sandwich for one week. The purpose was to offer customers a variety of
options to satisfy peoples’ desire for variety. However, the new taste menu
proved to be ineffective.
Some customers would fall in love with an item, but it would only last one week,
and they would be frustrated that they couldn’t purchase their new beloved
favorite sandwich.
More recent changes to the menu have proved effective. McDonald’ realized
that many of today’s customers seek healthy food options, and the
Corporation has offered items accordingly. As mentioned above in “Competition
Bases,” McDonald’s now offers a wider variety of nutritious items and provides
information to help its customers as well as employees make informed healthy
choices.
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 E.g. Vegetarian Menu

CORPORATE SOCIAL RESPONSIBILITY

“At McDonald’s, making customers happy is what our business is all about.
And we know it takes a lot to make that happen. We work hard to provide every
customer with a choice of meals and an experience that exceeds their
expectations.”
The preceding statement is the quote which introduces McDonald’s Worldwide
Corporate Social Responsibility Report (2004). Although the company strives to
compete on several bases, their ambient goal is customer satisfactions. They
reach this goal through a variety of efforts.
McDonald’s visionary goal is to continually improve their organization. One
example is the manager on duty task of completing a “travel path” every thirty
minutes of his shift. During a travel path, the manager personally checks every
aspect of the restaurant, including: the lobby area where customers eat, the
restrooms, the grill area behind the counter, the walk-in refrigerators and
freezers, the stock area, as well as the entire perimeter outside the restaurant.

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Through completing travel paths, management continuously checks every aspect
of the restaurant throughout the day.
In addition to short term continual improvement, McDonald’s organization also
thinks ahead for long term improvement.
To ensure that they serve 100% safe food, McDonald’s conducts food safety tests
multiple times throughout the day. The corporation changes “Food Safety” book
used by the managers several times a year, in efforts to think toward the future
for the most appropriate variables to measure.
Along with internal improvement to the organization, McDonald’s also collects
external information from its customers to discover which aspects the company
performs well, and which aspects could be improved. The manager is supposed
to talk to at least one customer during each travel path and the manager can
immediately react to this direct face-to-face communication. On a larger scale,
McDonald surveys its customers two times per year. To entice customers to
submit feedback, the organization offers a free sandwich in return for a
completed survey.
In summary, McDonald’s strives to reach its goal of “making customers happy”
through their normal competitive bases of speed, price, and nutrition, and they
also ensure customer satisfaction through continual improvement of their
operations.

SWOT ANALYSIS

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The Road Ahead

 Entry to Tier 2 and Tier 3 cities – The main target customer for
McDonald’s is the new urban Indian family. With the customer
demographics constantly changing and tectonic social and cultural shifts
being observed in Tier 2 and Tier 3 cities due to globalization, the
company is now expanding to Tier 2 cities like Pune and Jaipur.

 Rolling out McBreakfast across all outlets – In India, the company has
recently launched its entry into the breakfast food category. This is now
launched on a pilot basis on select stores. In Mumbai, it available at the
Vile Parle outlet. The company views this category as a key growth driver
in future.

VS
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The young generation of India has moved towards junk food against the
traditional Indian homemade food. People have started to live a fast and speedy
life, so much so that they prefer going to the junk foodie’s restaurant and eat food
in just few minutes instead of making lunch/dinner at home and wasting 2 to 3
hrs in preparing it.

It all started with the invention of McDonald’s in INDIA, junk food has become
more popular between the young youth as McDonald’s launched its branch in
most of the major cities of INIDA. Along with McDonald’s many other junk
food brands have started their business here.

One of a direct competition to the evergreen business of McDonald’s that

recently launched here in Mumbai is Kentucky Fried Chicken commonly known
as KFC which is famous for its fried chicken.
Non-Veg lovers can have a feast in KFC, the VEG lovers are sidelined and are
not taken of that much care; there is no variety for the veggies here in KFC, as
much as they have in McDonald’s.
In MC Donald’s you get a wide variety of choices for both VEG and NON-VEG
lovers. When it comes to Quality – KFC is far behind from MC Donald’s, they
really need to maintain their quality standards well if they want to rise up the
ladder and compete with McDonald’s.

Presentation skills also matters – and no one can really beat MC Donald’s for
that, they have these different offers from time to time, they have special offers
for 12 months of the year for kiddies, they give away free toys etc, all this is
really required if you want to win away the masses. KFC does not offer any of
those. Presentation skills at KFC are really poor.

So my advice to KFC would be – pay more attention to people management,

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communication skills, have a complaint box or feedback survey done which will
help you know where and what is you lacking behind.

MCDONALD’S EXPERIENCE

Marketing in a services industry is becoming an increasingly complex challenge.

The paradigms of service marketing demand a passionate understanding of
customer expectations and perceptions, and linking them to product design &
delivery as well as operational planning. This is where McDonald’s has excelled
due to its ability to successfully integrate the customer’s perspective in its
products and operations in a comprehensive manner. The revamped menu in
India is an example of McDonald’s strategy of integrating the customer’s
perspective in its products. And, the operational integration is clear from
McDonald’s emphasis on its suppliers as its customers as well as its treatment of
its consumers as co-producers of services. The ultimate aim of Service Marketing
is not just to become a Service Leader but to create a Service Brand. The Service
Delivery Process is the key to achieving this aim of Service Marketing.

Supplementary process

Service delivery process

Core products

During the Service Delivery Process, each moment of interaction between the
firm and the customer, called “Moments of Truth”, helps understand the
opportunities that a firm has to win or lose the customer. For example, these
“moments of truth” are created for McDonald’s every time the guard at the
McDonald’s outlet meets the customer, every time an attendant takes down the
order from the customer waiting in the queue, every time the cashier interacts
with the customer, every time the attendant helps the customer guided the
customer towards the table, every time the attendant cleans the table, etc.

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 re
c
iv
n
u
lm
d
o
p
ts
y
“Moments Of Truth” – The Service Encounter

Managing these “moments of truth” is a great challenge in Service Marketing

especially due to customer’s involvement as a co-producer of services e.g.
McDonald’s self-service concept wherein the customer not only collects the
order but also cleans the table after consuming the food.

However, McDonald’s has been able to create a great experience for its
customers by understanding the nature of the entire Service Delivery Process and
the various stages in the process that are exposed to the customers. Transparency
in the processes at its outlet has helped McDonald’s bring the back office in its
outlet at the front so that the customer is able to know the operations and provide
feedback on service design improvements.

Internal Customer Focus is equally important as External Customer Orientation

in order to win these “moments of truth”.  McDonald’s focus on its People and
their service delivery methods therefore plays a very important role in creating a
successful Service Brand. The quality and the consistency of the service
delivered by McDonald’s have been greatly enhanced by the combination of the
factors mentioned above. This has helped McDonald’s become Service Leader
and a successful Service Brand. This is evident from the fact that very few of its

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customers opt for take-home parcels or home deliveries while most of them
prefer to eat at the outlet and enjoy the McDonald’s experience.

FACTS AND FIGURES

Year Events
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 debut
1965 The company goes public
1968 Big Mac is introduced`
1974 Happy Meal is launched
1996 McDonald’s opens in India, the 95th country

WORLDWIDE FINANCIAL PERFORMANCE

Dollars in million 1990 1991 1992 1993 1994

No. of restaurants
ACTIVITY 11,803 12,418 13,093TIME 13,993 15,205
BUDGET ($)
System wide sales 18,759 19,928PERIOD
21,885 23,587 25,987
- US 12,252 12,519 13,243 14,186 14,941
Average age of big Mac product 2009-2011 1,000,000.
- Outside US 6,507 7,409 8,642 9,401 1,046
Total revenues 6,640 6,695 7,133 7,408 8,321
Operating
Promotionsprofit 1,596 1,679Complete
of big Mac product 1,862 year
1,984 3,00,000
2,241
Net profit 802 860 2009
959 1,083 1,224

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Mcdelivery service 2009-2011 50,000

Launched N mixed Happy meal 2009-2011 300,000

Reputation in training 2009-2011 25,000

Marketing Advertisements 2009-2011 1,00,000

Adapting automated machines 2009-2011 40,000

Total budget 1,815,000

MCDONALD’S INDIAN SUPPLIERS

NORTH AND EAST INDIA NO.OF OUTLETS

DELHI 33

U.P. 22

HARYANA 11

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PUNJAB 7

RAJASTHAN 3

UTTRANCHAL 1

WEST BENGAL 1

HAMACHAL PRADESH 1

WEST AND SOUTH INDIA NO.OF OUTLETS

MAHARASHTRA 32

GUJARAT 7

KARNATAKA 7

ANDHRA 4

M.P. 3

MCDONALD’S OFFER SCHOLARSHIP TO STUDENTS IN US

Local Chapters of Ronald McDonald House Charities (RMHC), with support

from RMHC Global, McDonald's Corporation and McDonald's restaurants, offer
scholarships to students from communities who face limited access to
educational and career opportunities. These scholarships are part of the RMHC
and McDonald’s ongoing commitment to education.

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HAMBURGER UNIVERSITIES
Today, more than five thousand students attend hamburger universities each
year. Since 1961, more eighty thousand restaurants managers, mid-managers and
owners have graduated from this facility.

QUESTIONNAIRE

Q. Which is your favorite product at McDonald’s?

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 favourite product
0.8 0.9 1.3
0.6
maharaj mc
mc chicken burger
french fries
1
chicken mcnuggets
1 mc puff
fileto fish
other
3.5

Q. Is the product line in McDonald’s adequate?

is the product line adequate

1.5

2.2 1st Qtr

2nd Qtr
3rd Qtr

yes
no
average

1.9

Q. What is the main problem you faced at McDonald’s?

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 problems faced in McDonald's

1.3
1st Qtr 2nd Qtr
1.9
3rd Qtr 4th Qtr
5th Qtr long queues
rude behaviour of congestion
employees
0.2
other no problem
0.6
0.7

Q. Which area do you think needs the most improvement?

improvement

1.1 0.6 3.3 1st Qtr 2nd Qtr

3rd Qtr 4th Qtr
1.1
5th Qtr 6thQtr
delivery capaciousness
product variety price
offers and dis others
2.2 2.5

Q. What is the first thing that strikes your mind about McDonald’s?

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 first thing about McDonald's that strikes customers mind
1.96
2.9

1st Qtr
2nd Qtr
0.4 3rd Qtr
4th Qtr
5th Qtr
burger
golden arches
2.3
1.5 service

Q. Do you like McDonald’s?

customer's view points

1.7
1

1st Qtr
2nd Qtr
3rd Qtr
8.2 4th Qtr
yes
3.6 no
yes & no

CONCLUSION
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Marketing Strategies implied by McDonald’s clearly gives the entire
comprehensive information that is necessary for the growth and development of a
business enterprise. Basically, the strategies that are implemented by
McDonald’s includes many basic essentials features like market research,
innovative ideas, customers views, forecasting consumers demand, planning,
organizing etc, these are the few basic essentials elements that plays a vital role
for the successful business and also in creating the brand name of a product.
Today, in this fast moving dynamic world the demand for goods and services are
increasing at an alarming rate due to which there is greater competency and
competitors ruling in the market. Therefore, most of the companies adopt
different types of marketing strategies in order to serve their customers in a more
better and efficient manner than their competitors so that, their business can
easily survive in the market. Even corporate companies like Reliance and Tata
industries are implementing various strategies from past many years. This shows
that marketing strategies provides competitive edge for every business unit.

BIBILOGRAPHY
www.McDonald’sIndia.com
www.Google.com
www.wikipedia.com

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