A COMPARITIVE STUDY A COMPARITIVE STUDY Submitted to Dr. Hitesh Kapoor Submitted to Dr.

Hitesh Kapoor

ACKNOWLEDGEMENT

We would like to express our sincere gratitude and appreciation to Dr.Hitesh Kapoor who helped and inspired us to complete this project. We felt motivated and encouraged every time we discussed this important topic in our classroom as well as doing surveys. This project gave us an opportunity to participate and learn about the role of women in entrepreneurship. Finally, we are thankful to God, our parents and friends who have supported us in our project for their support, encouragement and guidance. Without help of anyone mentioned above, we would face many difficulties while doing this project.
Declaration Except where duly acknowledged, we certify that this project is our own work under the supervision of Dr. Hitesh Kapoor.

McDonalds

History of McDonalds

Timeline
1955 Ray Kroc opens his first restaurant in Des Plaines, Illinois and the McDonald's Corporation is created. 1957 Quality, Service, Cleanliness and Value (QSC& V) becomes the company motto. 1959 The 100th McDonald's opens in Chicago. 1961 Hamburger University opens in Elk Grove, near Chicago. 1963 One billion hamburgers sold. Ronald McDonald makes his debut. 1964 Filet-O-Fish sandwich is introduced. 1965 McDonald's Corporation goes public.

Timeline cont
1967 The first restaurants outside of the USA open in Canada and Puerto Rico. 1968 The Big Mac is introduced. The 1,000th restaurant opens in Des Plaines, Illinois. 1972 A new McDonald's restaurant opens every day The Quarter Pounder is introduced. 1973 Egg McMuffin is introduced. 1974 The first Ronald McDonald House opens in Philadelphia. The Happy Meal is launched. 1983 Chicken McNuggets is introduced. New Hamburger University campus opens in Oak Brook, Illinois. Set in 80 wooded acres. Training is provided for every level of McDonald's management worldwide .

Timeline cont
1984 50 billionth hamburger sold. Ronald McDonald Children's Charities is founded in Ray Krocs memory to raise funds in support of child welfare. 1989 McDonald's is listed on the Frankfurt, Munich, Paris and Tokyo stock exchanges. 1990 McDonald's opens in Pushkin Square and Gorky Street, Moscow. 1993 The first McDonald's at sea opens aboard the Silja Europa, the world's largest ferry sailing between Stockholm and Helsinki. 1994 Restaurants open in Bahrain,Bulgaria, Egypt, Kuwait, Latvia,Oman, New Caledonia, Trinidad and United Arab Emirates, bringing the total to over 15,000 in 79 countries on 6 continents. 1996 McDonald's opens in India the 95th country.

McDonald's - A Global Phenomenon.

McDonald's opened its doors in India in October 1996. Ever since then, their family restaurants in Mumbai Delhi Pune Ahmedabad Vadodara Ludhiana Jaipur have proceeded to demonstrate, much to the delight of all our customers, what the McDonald's experience is all about.

Business Model
Franchise Model Product Consistency Act like a retailer and think like a brand

Franchise Model
Only 15% of the total number of restaurants are owned by the Company. The remaining 85% is operated by franchises. The company follows a comprehensive framework of training and monitoring of its franchises to ensure that they adhere to the Quality, Service, Cleanliness and Value propositions offered by the company to its customers.

Product Consistency
By developing a sophisticated supplier networked operation and distribution system, the company has been able to achieve consistent product taste and quality across geographies.

Act like a retailer and think like a brand

McDonalds focuses not only on delivering sales for the immediate present, but also protecting its long term brand reputation. McDonalds entered India in 1996. McDonalds India has a joint venture with Connaught Plaza Restaurants and Hard Castle Restaurants. Connaught Plaza Restaurants manages operations in North India whereas Hard Castle Restaurants operates restaurants in Western India. Apart from opening outlets in the major metros, the company is now expanding to Tier 2 cities like Pune and Jaipur.

Challenges in Entering Indian Markets

Regiocentricism: Re-engineering the menu - McDonalds has continually adapted to the customers tastes, value systems, lifestyle, language and perception. Globally McDonalds was known for its hamburgers, beef and pork burgers. Most Indians are barred by religion not to consume beef or pork. To survive, the company had to be responsive to the Indian sensitivities. So McDonalds came up with chicken, lamb and fish burgers to suite the Indian palate. The vegetarian customer India has a huge population of vegetarians. To cater to this customer segment, the company came up with a completely new line of vegetarian items like McVeggie burger and McAlooTikki. The separation of vegetarian and nonvegetarian sections is maintained throughout the various stages.

Segmentation, Targeting and Positioning

Customer Perception and Customer Expectation

Marketing Model
McDonalds Marketing Mix (Ps)5 After segmenting the market, finding the target segment and positioning itself, each company needs to come up with an offer. The 5 Ps used by McDonalds are: 1. Product 2. Place 3. Price 4. Promotion 5. People

Product
Product is the physical product or service offered to the consumer. Product includes certain aspects such as packaging, guarantee, looks etc. This includes both the tangible and the nontangible aspects of the product and service. McDonalds has intentionally kept its product depth and product width limited. McDonalds studied the behaviour of the Indian customer and provided a totally different menu ascompared to its International offering

Place
Where should be the product be available and the role of distribution channels? The place mainly consists of the distribution channels. It is important so that the product is available to the customer at the right place, at the right time and in the right quantity. Nearly 50% of U.S.A is within a 3 minute drive from a McDonalds outlet.

Price
Pricing includes the list price, the discount functions available, the financing options available etc. It should also take into the consideration the probable reaction from the competitor to the pricing strategy. This is the most important part of the marketing mix as this is the only part which generates revenue. All the other three are expenses incurred. The price must take into consideration the appropriate demand-supply equation. McDonalds came up with a very catchy punch line Aap ke zamane mein ,baap ke zamane ke daam. This was to attract the middle and lower class consumers and the effect can clearly be seen in the consumer base McDonalds has now.

Promotion
There are three main objectives of advertising for McDonalds are
To make people aware of an item Feel positive about it Remember it

People
McDonalds understands the value of both its employees and its customers. It understands the fact that a happy employee can serve well and result in a happy customer. McDonald continuously does Internal Marketing. This is important as it must precede external marketing. This includes hiring, training and motivating able employees. This way they serve customers well and the final result is a happy customer.

Importance of PLC in McDonalds

SWOT Analysis

Exhibits
McDonalds Indian Menu

Vegetarian Menu

Analysis Of Mc Donalds

KENTUCKY FRIED CHICKEN (KFC)

Introduction
KFC Corporation, or KFC, founded and also known as Kentucky Fried Chicken, is a chain of fast food restaurants based in Louisville, Kentucky. KFC is a brand and operating segment, called a "concept" of Yum! Brands since 1997 when that company was spun off from PepsiCo. KFC primarily sells chicken in form of pieces, wraps, salads and sandwiches. While its primary focus is fried chicken, KFC also offers a line of roasted chicken products, side dishes and desserts.

Kentucky Fried Chicken

Four Ps of Marketing mix.

Marketing Mix
The marketing mix is generally accepted as the use and specification of the 'four Ps' describing the strategic position of a product in the marketplace. Product Price Place Promotion

Product
Anything that can be offered to a market to satisfy a want or need. KFC's specialty is fried chicken served in various forms. KFC's primary product is pressure-fried pieces of chicken made with the original recipe. The other chicken offering, extra crispy, is made using a garlic marinade and double dipping the chicken in flour before deep frying in a standard industrial kitchen type machine.

Segmentation
Geographic segmentation : KFC has outlets internationally and sells its products according to geographic needs of the customer. In India KFC focuses how geographically its customers demand different products. In north India Chicken is the main selling product, while in the south the Veg. items sell more than the chicken.

Segmentation
Demographic Segmentation In demographic segmentation, the market is divided into groups based on an age, gender, family size, income, occupation, religion, race and nationality. KFC divides the market on demographic basis in this way: Age is between 6-65. Gender is both males and females. Family size is 1-2, 3-4, 5+ Income is Rs 10,000 n above. Family lifestyle is almost all.

Segmentation
Psychographic segmentation
Dividing a market into different groups based on social class, lifestyle, or personality characteristics is called psychographic segmentation. KFC divides market on the basis of psychographic variables like

Social class- Upper and Middle class. Lifestyle is not specific. Personality is ambitious and authoritarian

TARGET MARKET
The process of evaluating each market segments attractiveness and selecting two or more segments
As the outlets of KFC are in posh area and prices are too high (overhead expenses-rent, air-conditioning, employees), so KFC targets upper and middle classes. Target market depends upon size and growth rate of population, Company resources and structural attractiveness of market segment.

Market Positioning
KFC uses its attributes to Position its Product(Fried Chicken)

For a product to occupy a clear, distinctive and desirable place relative to Competing products in the minds of target consumer. In KFC feedback is taken from the customer in order to know the customer demands and then improvements are made in products. KFC focuses on pure and fresh food in order to create a distinct and clear position in the minds of customers KFC has a strong brand name and they are leading the market in fried chicken.

Price
Price is the any amount of money that customers have to pay while purchasing the product. More broadly, price is the sum of all the values that consumers exchange for benefits of having or using the product or services

Price

Demographic factors
Age: Generally there is no age limit focus by the KFC. The target and focus is on each and every individual in a society. KFC finds its largest demographic in the young of any society. Gender: Both male and females are focused by KFC, gender does not play any role here. Household Size: This plays a vital role in the demographic factor of the KFC. Generally they target whole families rather than single persons. This being the reason for their Family Meals which are basically bundled items served at a nominally cheaper rate.

Price

Economic Factors
Income: Income is an important key factor for KFC. This factor decides which class is to be targeted. In the early rise of KFC they focused on the upper class but slowly are introducing economy meals that attract the lower to middle classes. Consumption Behavior: It estimates the behavior of people, their liking and disliking towards the pricing of the products.

Price

Geographic location preference:

urban semi urban

Price

Behavior segmentation
taste conscious quality conscious class combination of product and quality

Price

Pricing Strategy
Market skimming: KFC globally enters the market using market skimming. Their products are priced high and target the middle to upper class people. Gradually they trickle down the prices focusing on the middle to lower class people to penetrate both sides of the market.

Price

Competition
We can compare the price of their products with McDonald, Dominoes and Pizza Hut. If the competitor provides the same product at a lower price then the organization usually lowers the price of its product too. In the case of KFC, Fried Chicken is its main selling point and controls a monopoly over the Indian fast food market (only with fried chicken). It prices its burgers, French fries and soft beverages with relation to its competitors.

Price

Cost Based
KFC price their product keeping different points in view. They adopt the cost base price strategy. Pricing of the product includes the govt. tax and excise duty and then comes the final stage of determine the price of their product. The products are bit high priced according the market segment and it is also comparable to the standard of their product. In the cost based method we include the variable and fixed cost.

Place
TARGET AREAS
Free home Delivery strategy They provide free home delivery to offices & homes (select countries). Accessibility Resulting in several outlets to cater to the needs of people in & around the city. Hectic lifestyle Due to the hectic lifestyle of office goings individuals the fast food concept saves time of preparing food and gives the customer a full meal quickly. Economically convenient The pricing appeals to the many classes of a society.

Place

TARGET MARKET
1. Location
Hectic lifestyle of individuals giving them more time at work and less stress about waiting for food. Commercialization of urban and sub-urban markets leading to more mid-sector people that find high-end eating joints very to expensive. Mid-sector people are always looking for change which KFC provides in their range of fast food. Quality conscious people in urban areas are more conscious about the quality of food than rural areas. Urban areas are more populated therefore they help with attracting higher revenues.

Place

Target Market
2. Placement of outlets
Due to KFC placing itself close to schools, colleges, cinemas and markets which are mostly populated by the young and those who are in a hurry, KFC enjoys a large number of footfalls everyday. In addition, they also have outlets close to non-vegetarians (mostly Muslim populated areas).

Place

STRATEGY
Given the competitive nature of fast food joints, KFC uses the Push Strategy to help them create:
Awareness Be different Sound attractive

Promotion
Promotion is the method used to inform and educate the chosen target audience about the organization and its products. Using all the resources of promotion: Advertising Sales Promotion Public Relations Events and Experiences Coupons, Discounts and Bundled packages An organization finds most of its meanings and survival through promotion. At KFC, Promotion is the main tool to bring all chicken lovers attention towards its delicious one-of-a-kind product, the Fried Chicken.

Promotion

Advertising

The logo of the smiling Colonel is probably one of the most recognized faces in the world and instantly brings the image of fried chicken to ones mind.

KFC and its new company jingle, finger lcikin good is a frequent announcement on televisions, billboards, flyers and radio. The concept of showing a normal customer deeply involved in devouring his piece of chicken usually turns on the drool factory in everybodys mouth and makes them rush to the nearest KFC. In India where chicken lovers are plenty abound these ads featuring normal people connect instantly and create a rush at their outlets. Using the following methods KFC spreads its message of finger licking good chicken.

Promotion

Advertising

Using Reminder advertisements KFC stimulates repeat purchases of its products. The company anthem finger lickin good is just a wake up call to the consumer to remind them how good they felt the last time they ate KFC chicken. Sponsorship is another tool to strengthen an organizations image. KFC is currently the sponsor of the Australian Cricket Team and the colonel logo can be seen on their uniforms throughout the matches.

Promotion

Sales Promotion
KFC uses the following tools to further enhance its sales. Premiums Exhibits Coupons Entertainment

Promotion

Sales Promotion
All KFC outlets offer its customers with various forms of incentives to buy its Chicken. Using coupons that one can acquire after spending a particular amount over a period of fixed time, customers can enjoy the benefits of free meals or free add-ons. Additionally they provide meal vouchers and exciting offers in their print ads, which the customer must cut and bring along.

SURVEY ANALYSIS

QUESTION 1 Which age group do you belong to?

A) Below 18 B) 18-25 C) 25-35 D) 35-50 E) Above 5 MCDONALDS
3% 10% 6% 4% 32% 39% 19% A B C D E 32% 47% 8% A B C D E

KFC

QUESTION 2 What is your profession?

A) Student B) Service C) Business D) Others KFC McDONALDS
18% 11% A 9% 46%

14%

A B C 55% D

B
C D

20%

27%

QUESTION 3 Are you a vegetarian/non-vegetarian?

A) Vegetarian B) Non-Vegetarian C) Occasionally Non-vegetarian
McDONALDS
60% 90% 80% 40% 70% 60% 30% 52% 46% 20% 50% 40% 30% 20% 10% 10% 2% 0% A 0% B 12% 10% C 78% 50%

KFC

QUESTION 4 How often do you visit here?

A) Daily B) Once a week C) Once a month D) At leisure

McDONALDS

KFC

12% 31% 22% A B C 35% D 41%

6%

14% A B 39% C D

QUESTION 5 Who generally accompanies you?

A) Family B) Friends C) Alone D) Does it really matter?

McDONALDS
2% 14% 45% A 4% 12%

KFC

41% A B 43% C D

B
39% C D

QUESTION 6 What is your saying on the pricing of the joint?

A) Nominal B) Expensive C) Value for Money

McDONALDS
50% 40% 30% 20% 10% 0% A B C 8% 4% 46%

KFC
40% 30%
20%

31%

38% 31%

10%
0% A B C

QUESTION 7 How much do spend on an average per visit?

A) Below Rs 100 B) Rs 100 to Rs 500 C) Above Rs 500

McDONALDS

KFC
1.20%

27%

31% A B 42% C

24%

24% A B C 52%

QUESTION 8 Do you get drawn in by the television commercials of the food items?
A) Yes B) No

MCDONALDS
20% 32%

KFC

A B 68% 80%

A B

QUESTION 9 Do you think the food is indigenous to the place?

A) Yes, I cant find such food anywhere B) No, But I come here for the value C) I come here for its Non Veg delicacies D) For its Vegetarian preparations and its variety

MCDONALDS
6% 27% 12% A B 19% 42% C D 21% 27%

KFC

46%

A B C D

QUESTION 10 What do you think about the hygiene of the place?

A) Satisfactory B) Needs attention C) Very poor Indeed

MCDONALDS
2% 22% A

KFC
1% 22%

B
76% C 77%

A B C

QUESTION 11 How do you find the staff?

A) Friendly B) Indifferent C) Rude

MCDONALDS

KFC

7% 46% A 47% B 43%

9% 48% A B C

QUESTION 12 What do you think about the marketing strategy of the joint?
A) Loud and widespread B) Low profile C) Attended Adequately

MCDONALDS

KFC

30%
40% A 54% A B 60% 10% 6% C

B
C

QUESTION 13 Given a preference which of these would you choose?

A) Mc Donalds B) KFC C) Gopals D) Subway E) Other

MCDONALDS

KFC
2%

3% 14%

7%

6% A B 70% C D E

4%

10%

8% A B C 76% D E