ANNEXURE

Homework no.: 4 course code: MGT251

Course instructor: Kuljeet K. Minhas

Date of allotment: 28th oct.’ 10

Date of submission: 05 nov.’ 10

Student’s roll no.: RQ1906B45

Section no. Q1906

Declaration:

I declare that this assignment is my individual work. I have

not copied from any other student’s work or from any other
source except where due acknowledgement is made explicitly
in the text, nor has any part been written for me by other
person.

STUDENT’S SIGNATURE

KIRANJIT KAUR

INTRODUCTION
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Mc. DONALDS

McDonald’s India provides fast, friendly service – the hallmark of

McDonald’s, which sets its restaurants apart from others. At
McDonald’s, the customer comes first. Every employee strives to
provide 100 percent customer satisfaction – for every customer –
every visit. This includes fast, friendly and attentive service, accuracy
in order taking and filling, and anticipation of customer’s needs.
McDonald’s restaurants provide a clean, comfortable environment
especially suited for families. McDonald’s stringent cleaning standards
ensure that all tables, seating, highchairs and trays are sanitized
several times each hour. McDonald’s prices its products in such a way
that a very large cross section of the Indian population can afford it.
McDonald’s does not sacrifice quality for value – rather McDonald’s
leverages economies of scale to minimize costs while maximizing value
to customers.
McDonald's Quality Management instills the culture of quality through
such principles as being customer driven, managing with facts, valuing
people, and continually improving every aspect of our business Service
that is fast and friendly and has always been a foundation for success
at McDonald's Cleanliness for us means having the cleanest and
freshest facilities from the kitchen to the rest rooms and parking lots

KFC (Kentucky Fried Chicken)

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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.
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 OF KFC

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.
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.
Psychographic segmentation

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 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
Upper and Middle class.
Lifestyle is not specific.
Personality is ambitious and authoritarian
TARGETMARKET
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
For a product to occupy a clear, distinctive and desirable place relative
to ³Competing 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.
KFC uses the Push Strategy´ to help them create:
Awareness
Be different
Sound attractive

Segmentation, targeting and positioning

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McDonald’s uses demographic segmentation strategy with age as the
parameter. The main target segments are children, youth and the
young urban family.
Kids reign supreme in FMCG purchase related to food products. So to
attract children McDonalds has Happy Meal with which toys ranging
from hot wheels to various Walt Disney characters are given. For this,
they have a tie-up with Walt Disney. At several outlets, it also provides
special facilities like ‘Play Place’ where children can play arcade games,
air hockey, etc. This strategy is aimed at making McDonald’s a fun
place to eat. This also helps McDonald’s to attract the young urban
families wanting to spend some quality time while their children have
fun at the outlet. To target the teenagers, 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 like the one at Vile Parle in Mumbai.
“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 the customers.
“Mc Donald’s mein hai kuch baat” projects McDonald’s as a place for
the whole family to enjoy. When McDonald’s entered in India it was
mainly perceived as targeting the urban upper class people. Today it
positions itself as an affordable place to eat without compromising on
the quality of food, service and hygiene.

By analyzing the segmentation, targeting and positioning of the two

major Fast Food Restaurants I think Mc. Donalds still need some
improvements in it. although it provides variety of food and even had
its strong position in the minds of customers but as its an international
renowned brand it also higher the expectations of customers which it
is unable to satisfy. 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
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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.
The main problems which are faced by main customers in Mc. Donald’s
are:

Long queues: as the customers who come to Mc. Donalds are high
society and middle class people they even sometimes don’t have too
much of time but due to their late delivery and too much of rush it
leads to waste their time which leaves on them its negative impact.

Congestion: its an charge made to drive into an area by the Mc.

Donalds.

IMPROVEMENTS WHICH CAN BE DONE FOR ITS BETTERMENT:

 Product variety should be increased.

 As very less of rarely any offers and discounts for customers are
available with them, they should increase them so that more
people will visit and attract towards them.
 Its prices are very high so I think its prices should also be
reduced little bit.
 Delivery time should also be reduced confirm because most
customers are just seen unsatisfied due to the time wasted
during the delivery of their orders which is too late.

It should also improve its segmentation by not only segmenting on the

basis of age, but also on the basis of geographic areas where its other
outlets are opened.