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Marketing MixMcdonalds India
Marketing MixMcdonalds India
Presented By:
Abhishek Bhartiya B. Aditya Mohan Geetika Sodhi Mahek Nangia Mukul Kumar Wasim Shaikh
Introduction
McDonalds is the Eighth Most Poweful Brand in the World.---Source: Millward Brown Optimor -
Total Revenue for McDonalds India in 2006-07 was $740.2 million. Estimated CAGR of 40 percent. Rs 400 crores being put in for expansion plans into Tier II cities within next three years. Doubling of turnover within three years. Market share of 18 percent in north India.(includes restaurants, cafes, fast food joints, local vendors etc.)
Brief History
McDonald's was started as a drive-in restaurant by two brothers, Richard and Maurice McDonald in California, US in the year 1937. By mid-1950s, the restaurant's revenues had reached $350,000. Ray Kroc, distributor for milkshake machines, Kroc expressed interest in the business, and he finalized a deal for franchising with the McDonald brothers in 1954. He established a franchising company, the McDonald System Inc. and appointed franchisees. In 1961, he bought out the McDonald brothers' share for $2.7 million and changed the name of the company to McDonald's Corporation. Corporation In 1965, McDonald's went public
In 1996, first McDonalds restaurant opened on Oct. 13, at Basant Lok, Vasant Vihar, New Delhi. McDonald's India is a 50 50 JV partnership between McDonalds Corporation (U.S.A) and two Indian businessman Amit Jatia (Hardcastle Restaurants Private Limited, Mumbai) and Vikram Bakshi (Connaught Plaza Restaurants Approximately 75% of the menu available in McDonalds in India is Indianized and specifically designed to woo Indian customers. The McDonald's philosophy of QSC&V is the guiding force behind its service to the
McDonalds India
In
Product
Our clear strategy is to bring the customers in initially and provide a range of entry-level products so that they can try new items and graduate to the higher rungs. ---
Product Mix
McVeggie McAloo Tikki Paneer Salsa Wrap Crispy Chinese Veg McCurry Pan
Chicken Maharaja Mac McChicken Fiet-O-Fish Chicken Mexican Wrap Chicken McGrill
Veg Menu
Non-Veg Menu
Beverage s
Frozen Deserts
Mentions the name of the burger and the colour is different for different types of burgers
Co Branding
McDonalds has major tie-ups with companies as their co-branding Statergy. various
Pricing
Initial focus on metros Mumbai and Delhi.
Household Expenditures
Pricing Stratergy
Purchasing power pricing:b) In 1997 slashed prices for vegetable nuggets and soft serve cone. c) In September 2001, they offered Veg surprise burgers for Rs 17. d) March 2004 Aap ke zamane mein,
Pricing Stratergy
Value Ladder strategy :b) Started offering value meals in a range of prices. c) Ensure affordability and attract widest section of customers. d) Brought the customer and provided a range of entry-level products. e) Try those new items and graduate to higher-rungs. f) E.g- if a customer starts with McAloo Tikki, he will finally graduate to McVeggie and so in Non veg. g) Helped its Volume business.
Product Bundling
Package deal. The most common startegy in fast food industry. The most preferred style for customers of McD. Plays on Psychological factor of the customer. Customer acquisition costs are high. Consumers appreciate the resulting simplification of the purchase decision.
Competitive Pricing
Sustaining HOW?
Cost control strategy:b) Well established low cost supply chain. c) Ensures efficiency and speed in distribution. d) Huge increase in volume sales. e) Very good food processing technology.
McDonald s India Pvt. Ltd. Hard Castle Rest. Pvt. Ltd. (West & South) Connaught Plaza Rest. Pvt. Ltd. (North & East)
Dynamix Diary
Supplier of Cheese.
Amrit Food
Supplier of long life UHT Milk and Milk Products for Frozen Desserts.
MODIFICATION
EVALUATION
MOTIVATION
West and South India (53) 32 in Maharashtra 7 in Gujarat 7 in Karnataka 4 in Andhra 3 in Madhya Pradesh
Promotion An activity, such as a sale or advertising campaign, designed to increase visibility or sales of a product. McDonalds, for years has maintained an extensive promotion strategy with highest spending on marketing amongst
Advertising
Focus on overall experience. Brand globally and act locally. Overall it is doing what it does the best marketing. Intensive advertising aimed at children. Paper mats on trays ensure that no new scheme goes
Advertising
80-20 menu boards marketing tool. Sponsors sport events with their logos advertised in these events. Significant use of billboards and signage. Image of portraying warmth and a real slice of everyday life has become a trademark
THE mascot
The well known mascot Ronald McDonald is the same throughout the world since 1963. It is supposed to be the next most well recognized figure second only to Santa Claus. The color combination
Campaigns
Im lovin it is an international branding campaign which was launched in 2003 and has proved to be its biggest success. aap ke zamaane mein baap ke zamaane ke daam is a highly localized campaign which aimed at attracting the masses through
Process
Standardization is the key
Ready to cook frozen food material Delivery to customer Universal holding Cabinet Assembler
Initiator
People
Each outlet is headed by a Restaurant Manager . He is responsible for the daily operation and customer interaction. Delivery Crew Member carries basic operation of a restaurant. Ensures customer satisfaction at the restaurants. In order to motivate
Organizational Chart
Trainin g
McDonalds invests more than $1 billion annually in training
Work
Fortune
One out of 5 Best Places to Work in Latin American America Economic Magazine 2005
Training At Hamburger
February 24, 1961, Hamburger Universities first class of 14 students graduated Today, more than 5,000 students attend HAMBURGER UNIVERSITY each year Since 1961, more than 80,000 restaurant managers, mid-managers and owner/operators have graduated from this facility
EXPLOITING WORKERS Low wages No overtimes Accidents like Burns due to pressure of quick service
# (The majority of employees are people who have few job options and so are forced to accept this exploitation, and they r compelled to smile too! Not surprisingly staff turnover at McDonalds is high, making it virtually impossible to unionise and fight for a better deal, which suits McDonalds who have always been opposed to Unions.)
Physical evidence..
Cleanliness, speed, quality and transparency of process is the biggest physical evidence. The interiors are attractive and more or less consistent throughout the world. A proper decorum and strict standards of cleanliness are maintained at all the joints.
Physical evidence..
Family environment message throughout the world, just the way of communication is adjusted to different countries. Play areas are provided so that kids dont become panicky. Counters are kept low and menus pictorially
Thank You