Mc DONALD’S

SHARATH CHANDRA DAS

BBA (BE)
4531/09
 McDonald's Mission
Statement
"McDonald's vision is to be the
world's best quick service
restaurant. Being the best means
providing outstanding quality,
service, cleanliness, and value, so
that they make every customer in
every restaurant SMILE."
INTRODUCTION
• Mc donalds is the leading global food
service retailer with more than 32000
local restaurants serving more than 60
million people in 117 countries each day.
• More than 75% of mc donald's
restaurants world wide are owned and
operated by independent local persons.
HISTORY
• The first McDonald's was built in 1940 by the McDonald
brothers (Dick and Mac) .
• Started off as a hot dog stand in 1937
• The McDonald brothers realized that hamburgers were
their most profitable menu item, and changed their
business to serve a limited menu.
• McDonald’s is a large corporation in the fast food industry.
• They have been around since 1955 when Ray Kroc started
the chain of McDonalds. They have been growing ever
since.
Mc Donald’s in India
• Entered in India 1996

• McDonald's India is a 50 – 50 JV partnership

between MCDONALD’S CORPORATION
(U.S.A) and two Indian businessman Amit Jatia
and Vikram Bakshi

• Localization:
 DON’T OFFER ANY BEEF OR PORK ITEM IN INDIA
 IN PRODUCT LIKE MCVEGGIE, PIZZA MCPUFF
ETC.THEY USE SPICES FAVOURED BY INDIANS
 SOFT SERVES AND MCSHAKES ARE EGGLESS
• 1996 …the first McDonald’s restaurant opened
on Oct. 13, at Basant Lok, Vasant Vihar, New
Delhi. It was also the first restaurant in the
world not serving beef on its menu
• 1997…the first Drive –Thru restaurant at Noida
• 1999…the first Mall location restaurant at Ansal
Plaza – New Delhi
• 2000…the first highway restaurant at Mathura
• 2001…the first thematic restaurant at
Connaught Place
• 2002…the first restaurant in a food court at
3C’s, Lajpat Nagar.
Swot analysis
STRENGTHS
• Brand Equity…world-wide
•Brand awareness
•Brand geographic locations
•Consistency of food
•Overseas market
•Successful items: Fries, Happy Meal,
Aloo tikki, Egg McMuffin.
Swot analysis
WEAKNESSES
•There is lower operating income in
Europe and Canada
•There is a relatively small revenue
growth - In the last 5 years McDonalds
revenues have grown at a rate of 7.5%
compared to industry growth at 13.6%
Swot analysis
OPPORTUNITIES
•Newer products
•More franchises-less risk
•High growth in China and Russia
•Growing dining out market
Swot analysis
THREATS
•Competition - global, national,
regional, and local.
•Growing health conscious
population
Retail format
FRANCHISING
• A franchise business is a method a company
uses to distribute its products or services
through retail outlets owned by independent,
third party operators.
• Mc donelds has being using the franchising
retail format for its operations.
• It only owns 15% of the total number of
restaurant rest 85% is operated by franchisees.
Retail strategy
• Customer perception is a key factor affecting a
product’s success. Many potentially
revolutionary products have failed simply
because of their inability to build a healthy
perception about themselves in the
customers’ minds.
• McDonalds being an internationally renowned
brand brings with it certain expectations for
the customers.
TARGET SEGMENT WHAT IS MCDONALD’S FOR ME?
A family with children A treat to children, a fun place to be for the
children.
Urban customer on the move Great taste, quick service without affecting
the work schedule
Teenager Hangout with friends, but keep it affordable.
Retail strategy
ONE SUCH ADVERTISEMENT TO PROMOTION
Business overview
• In 2009, McDonalds had revenues of $22.7 billion and
operating profits of $6.8 billion. Sales across all of its
company-owned and franchised restaurants total
• Revenues were down 3.3% over 2008, but profits
were up 6.2%. Over 5 years, McDonalds has seen
company revenues increase at an annual rate of 4.9%,
while profits increased by 14.0% and storewide sales
grew by 9.0%.ed $56.9 billion.
• At the same time, operating income increased 1.5%
over the same period last year, reaching $5.0 billion .
BALANCE SHEET