This action might not be possible to undo. Are you sure you want to continue?
McDonald's India opened its doors to India in October 1996. Ever since, our family restaurants in Mumbai, Delhi, Pune, Ahmedabad, Vadodara, Ludhiana, Jaipur, Noida Faridabad, Doraha, Manesar, Gurgaon have proceeded to demonstrate, much to the delight of all our customers, what the McDonald's experience is all about.
Our first restaurant opened on 15th April 1955 in Des Plaines, Illinois, U.S.A. 48 years down the line, we are the world's largest food service system with more than 30,000 restaurants in 100 countries, serving more than 46 million customers every day. Supply chain
A taste of freshness from all over India
Did you know that every year, Rs. 50,000 crore worth of food produce is wasted in India? This is mainly because of the lack of proper infrastructure for storage and transportation under controlled conditions. McDonald's is committed to providing quality products while supporting other Indian businesses. And so, McDonald's spent a few years setting up a unique Cold Chain. The Cold Chain is necessary to maintain the integrity of food products and retain their freshness and nutritional value. It refers to the procurement, warehousing, transportation and retailing of food products under controlled temperatures. Setting up the Cold Chain has involved the transfer of state-of-the-art food processing technology by McDonald's and its international suppliers to pioneering Indian entrepreneurs, who have now become an integral part of the Cold Chain.
Vital links in our Cold Chain
Vital Links in our Cold Chain
All suppliers adhere to Indian government regulations on food, health and hygiene while continuously maintaining McDonald's recognised standards. As the ingredients move from farms to processing plants to the restaurant, McDonald's Quality Inspection Programme (QIP) carries out quality checks at over 20 different points in the Cold Chain system. Setting up of the Cold Chain has also enabled us to cut down on operational wastage Hazard Analysis Critical Control Point (HACCP) is a systematic approach to food safety that emphasizes
prevention within our suppliers' facility and restaurants rather than detection through inspection of illness or presence of microbiological data. Based on HACCP guidelines, control points and critical control points for all McDonald's major food processing plands and restaurants in India have ben identified. The limits have been established for those followed by monitoring, recording and correcting any deviations. The HACCP verification is done at least twice in a year and certified. The relationship between McDonald's and its Indian suppliers is mutually beneficial. As McDonald's expands in India, the supplier gets the opportunity to expand his business, have access to the latest in food technology, exposure to advanced agricultural practices and the ability to grow or to export. There are many cases of local suppliers operating out of small towns who have benefited from their association with McDonald's India. Trikaya Agriculture Suppier of Iceberg Lettuce Implementation of advancved agricultural practices has enabled Trikaya to successfully grow speciality crops like iceberg lettuce, special herbs and many oriental vegetables. Farm infrastructure features: • • • • A specialised nursery with a team of agricultural experts. Drip and sprinkler irrigation in raised farm beds with fertiliser mixing plant. Pre-cooling room and a large cold room for post harvest handling. Refrigerated truck for transportation.
Vista Processed Foods Pvt. Ltd. Supplier of Chicken and Vegetable range of products (including Fruit Pies) A joint venture with OSI Industries Inc., USA, McDonald's India Pvt. Ltd. and Vista Processed Foods Pvt. Ltd., produces a range of frozen chicken and vegetable foods. A world class infrastructure at their plant at Taloja, Maharashtra, has : • • • Separate processing lines for chicken and vegetable foods. Capability to produce frozen foods at temperature as low as -35 Degree Cel. to retain total freshness. International stardards, procedures and support services.
Dynamix Diary Supplier of Cheese Dynamix has brought immense benefits to farmers in Baramati, Maharashtra by setting up a network of milk collection centres equipped with bulk coolers. Easy accessibility has enabled farmers augment their income by finding a new market for surplus milk. The factory has: • • • Fully automatic international stardard processing facility. Capability to convert milk into cheese, butter/ghee, skimmed milk powder, lactose, casein & whey protein and humanised baby food. Stringent quality control measures and continuous Research & Development
Amrit Food Supplier of long life UHT Milk and Milk Products for Frozen Desserts Amrit Food, an ISO 9000 company, manufactures widely popular brands Gagan Milk and Nandan Ghee at its factory at Ghaziabad, Uttar Pradesh. The factory has: • • • State-of-the-art fully automatic machinery requiring no human contact with product, for total hygiene. Installed capacity of 6000 ltrs/hr for producing homegenised UHT (Ultra High Temperature) processed milk and milk products. Strict quality control supported by a fully equipped quality control laboratory.
Radhakrishna Foodland Distribution Centres for Delhi and Mumbai An integral part of the Radhakrishna Group, Foodland specialises in handling large volumes, providing the entire range of services including procurement, quality inspection, storage, inventory management, deliveries, data collection, recording and reporting. Salient strenghts are : • • • A one-stop shop for all distribution management services. Dry and cold storage facility to store and transport perishable products at temperatures upto -22 Degree Cel. Effective process control for minimum distribution cost.
© McDonald's India 2002. Legal Page
Nothing but the Best That's how we perceive our product range. Despite extensive and meticulous quality tests at the supplier end, all products are once again carefully scrutinized at the restaurant. Our immaculate standards of quality allow for nothing but the best to reach your tray. Shudh Shakahari We are committed to giving you wholesome, healthy, and delicious food. At McDonald's, we take great care to ensure the purity and cleanliness of the same. We ensure that the cooking area for vegetarian products is visibly segregated from the other sections and separate set of equipments is used for cooking them. Our products are cooked under extremely hygienic conditions. What's more - our crew members cooking vegetarian food items are identifiable by their green aprons. You are most welcome to see for yourself. Just ask any of our senior manager to conduct a kitchen tour for you, your family and your friends. We at McDonald's have specially developed a range of 100% pure vegetarian food to offer those of you who are vegetarians, a choice. In fact, even the mayonnaise used in the items is eggless. Taking in to account the Indian palate, we have prepared the choicest of products using spices favoured by you. So the next time you think of delicious vegetarian food, rush straight to your nearest McDonald's Family Restaurant.
We have an obligation to give back to the communities that give us so much." - Ray Kroc, 1955 McDonald's is known for it's exemplary contribution to the local economy and environment. Ever since it's first restaurant opened in India, McDonald's has fulfilled its social obligations in every possible manner and bringing smiles to many faces.
Emplo yment Generation When you become a member of the McDonald's family, you open the door to limitless career opportunities. The world-class training that we impart allows you to provide our customers the ultimate McDonald's experience, with the best quality products and the highest levels of service and cleanliness. We are an equal opportunity employer, providing not only employment but long-term careers as well. The average McDonald's restaurant employs as many as 80 people - from crew to the restaurant manager. As of today, we employ close to 2,500 people in Mumbai, Delhi, Pune, Jaipur, Ahmedabad and Ludhiana. Emplo yment Opportunities If you have the inclination and aptitude, we have a job for you at McDonald's. Click here to apply.
© McDonald's India 2002. Legal Page Services:
McDonald's - More Than 15,000 Wi-Fi Enabled Restaurants Around the Globe!
We believe in bringing you innovative and convenient services that enhance your McDonald's restaurant visit, and Wi-Fi is a perfect example. As McDonald's continues to deliver fast and friendly food service at more than 30,000 convenient locations around the world, you can now enjoy the possibility of staying connected with friends, family and co-workers. Just find a Wi-Fi ready restaurant (click here for Wi-Fi enabled locations in your area) and you can check e-mail or chat with your friends while your kids are having fun in the Playplace. To access the Wi-Fi services in a restaurant, you need a Wi-Fi enabled device, such as a laptop or PDA. If you are unsure whether your laptop or PDA is Wi-Fi enabled, click here to determine what hardware is required. Our local service providers provide high-quality Wi-Fi service through several convenient connection options: on-line credit card payment, subscriptions, prepaid cards, or (sometimes) promotional coupons. If you have questions or need technical help, the Wi-Fi provider's customer support number should be handy in the restaurant. Please note that currently there are no roaming capabilities between different countries, neither for customers nor McDonald's employees. You will have to connect separately with the respective Wi-Fi service provider.
Enjoy surfing and working in your local McDonald's!
Connectivity and/or usage fees may apply and be required for Wi-Fi services. Access details, fees and availability subject to change without notice.
Corporate McDonald's | Facts about McDonald's | Podcasts | Voice | ©2007-2008 McDonald's. | Terms & Conditions | Subscribe/Unsubscribe
Posted: 245 days ago, by anonymous Tags: Mcdonalds, Burgers, Fast Food, Home Delivery
In the absence of a Burger King, McDonalds suits us just fine- especially since they did what every other foreign chain does- Indianize their products! So, loaded with the 'McAloo Tikki Burger' and the 'Veg. Surprise Burger', McDonalds took the country by storm and with good prices and super quick service on their side, McDonalds has become (somewhat) akin to the Indian fastfood chain: Haldiram! After a fair amount of years in service here, McDonalds started their Home Delivery service and for reasonable junkfood addicts, like me, it was a boon! Dial an 'easy-to-remember' number and within 20 minutes your order is at your doorstep. A singular number for all customers across Delhi is what you have to dial to place your order and once you store your details with them, the next time you call and give your phone number, they get the required data and you're saved from repeating all your details. The service (as they always promise) is extremely swift and the order usually reaches within 20 minutes. The delivery service is not free- they do charge an extra Rs. 15 as packaging charges.
McDonalds and Sony to offer food with music
By John McLean: Tuesday, 23 March 2004, 7:45 AM
ACCORDING to various reports McDonald's is about to sign a deal with Sony which will enable McDonalds to bundle free downloads with its food and drink offerings all in exchange for the advertising of Sony's download service Sony Connect.
There seems to be no word on how this "Mc-download" will take place so we hope it is something better than its Wi-Fi offering being rolled out in various countries. In Australia last August, the charge for WiFi access for the first 15 minutes was about the same as the price of a McDonald's meal, so the wisdom of using its Wi-Fi to check your email was a little doubtful unless of course you wanted to double the price of your meal. All this for the joy of dirty hands on keyboards, risking food and drink being spilled on your PC and the delight of being near numerous children as the spams roll into the inbox advertising the delights of Viagra and worse. The ubiquity of McDonalds might lend themselves to this kind of service but I just wonder if the Wi-Fi customers will ever return or will find better places to go. As for the download service, maybe McDonalds is expecting a big rush of folk who would not otherwise be enticed into the restaurants. McDonalds might be thinking in terms of tracks like Pink Floyd's "Money", but I wonder if in a few months it will be more like "Wish You Were Here". µ
McDonalds India to invest Rs.3 mn in delivery operations
Global fast food major McDonalds' Indian operation McDonalds India Friday said it would pump in over Rs.3 million to boost up its delivery operations - McDelivery.
New Delhi, Delhi, India, 2007-03-16 23:31:25
Today's Top Headlines
• • • • •
The Best Of Commercial Partners & Participating Designers Budweiser Renews Sponsorship of Manchester United Future Generali launches innovative retirement plans Gujarat Pipavav Port Limited files its Draft Red Herring Prospectus with SEBI Air Arabia Chief Executive named world's best low-cost carrier CEO
Global fast food major McDonalds' Indian operation McDonalds India Friday said it would pump in over Rs.3 million to boost up its delivery operations - McDelivery. 'We plan to invest close to Rs.3 million in enhancing McDelivery operations over the next 3 years,' McDonalds India managing director Vikram Bakshi said at an event here while launching its all India delivery number. According to Bakshi, McDelivery accounts for about five percent sales and with the introduction of its new all-India number it hopes to increase the growth rate to 25 percent. McDonalds currently has 108 restaurants in India and it ventured in eastern India for the first time with the opening of an outlet early this month in Kolkata, where it has plans to invest Rs.1 billion for expansion. Earlier, the company had announced that it would invest about Rs.4 billion for expansion in northern and eastern India and open 25 new restaurants by the end of 2007. The new number launched is 66-000-666 that can be dialled from anywhere in India. Subscribe to daily press alerts via email »
Today McDonald's operates in the global quick service restaurant industry business. McDonald's was the pioneer of this business and it was McDonald's which made the quick service restaurant business a global industry by creating a huge global commercial empire. Currently McDonald's ranks 114th in the list of Fortune 500 companies and thanks to its pioneering processing and standardized approach to the commercial production of fast food, McDonald's has placed the quick service restaurant industry amongst the big economic driving force industries such as steel and automobiles. Raymond Kroc the founder of McDonald's had the vision of a chain of fast food restaurants in every American State and in the world as well. He wanted his fast food restaurants to serve quality food according to fixed standards and specification. When Kroc started business in 1955 there were other well established fast food chains in United States, amongst the most widely known were A&W, Dairy Queen, Tastee......
Mcdonalds Case Study
In order to understand McDonald's structure and culture and why they continue to be the world's largest restaurant chain we conducted a SWOT analysis that allowed us to consider every dimension involved in the business level and corporate level strategies. Our research indicated more viable strengths than weaknesses. Strengths such as brand recognition, steady growth
in global markets, and strong leadership. McDonald's has become part of America's culture and now the same can be said for the global arena based on the demonstration of growth and continued dominance over competitors. Business Week Magazine even ranked McDonald's as "one of the ten most recognized brands in the world", a position that creates significant opportunities for the company. An important strength that continues to have the most dramatic impact on McDonalds is their top level management. Even though this is classified an as internal strength, McDonald's has capitalized on a management style that helps to......
INTRODUCTION: McDonald's Corporation is the world's leading food service organization. The corporation started out as a small drive-through in 1948 by two brothers, Dick and Mac McDonald. Raymond Albert Kroc, a salesman, saw a great opportunity in this market and advised Dick and Mac to expand their operation and open new restaurants. In 1961 Kroc bought out the McDonald brothers. By 1967 McDonalds expanded its operations to countries outside the U.S.A. This unyielding expansion led the Corporation to open 23,000 McDonald's restaurants in 110 countries in 1994, producing $3.4 bn in annual revenues. In addition, McDonald's opens a new restaurant every three hours. Also, McDonald's has twice the market share of its closest U.S. competitor, Burger King, representing 7% of total U.S. eating-out sales. Similarly, McDonald's serves about 1% of the world's population on any given day through its 23,000 restaurants internationally. Big Mac, the world's most sold hamburger was developed by......
multi-channel services. Industry leaders and followers alike are digitizing services in order to become more customer-driven and processcentric. To execute this service digitization strategy, managers must learn to effectively translate business imperatives into multi-channel services processes, applications, and infrastructure. Services Blueprint: Roadmap for Execution reveals how managers can plan, analyze, and execute a coherent services strategy without getting lost in a sea of technical buzzwords. Services Blueprint begins by introducing and defining the concept of services digitization and the two components--focal points and service platforms--required to execute it effectively. The authors then examine the different blueprints: multi-channel customer relationship management, spend management, supply chain management, human capital management, and product lifestyle management. Throughout the book, case studies illustrate key insights and best practices as companies evolve their execution focus: enterprise applications->Web Services->composite applications->services. Drawing on their experience working with leading businesses, Kalakota and Robinson provide readers with a roadmap of how to achieve differentiation through multi-channel services, translate business objectives into process models such as order-to-cash, and leverage enterprise application investments to create new cross-enterprise services platforms. Services Blueprint clearly explains why some firms are better at digitizing business processes and capturing value than others. 0321150392B10062003
a) Explain the 5 TQM performance objectives. Discuss these with the help of a real life example of a process involving products & services, and analyze how the process can be improved upon? b) Illustrate & explain your chosen process with the help of a transformation model.
Answer a) “Many methodologies and techniques for improving operational performance have been developed over the years – these provide structured ways of improving company performance, but they do not explicitly tell us where to start. To be able to improve performance effectively, it is important to identify the particular factors of performance to work with. Furthermore, it is important to find those factors that have a high impact on performance.”
(www.emeraldinsight.com) Performance improvement highlights processes and systems that need to be improved. Then, there is a follow-up with an action plan to improve the outcomes. The five main performance objectives are: • Speed • Cost • Quality • Dependability • Flexibility We will discuss these five objectives using the drive-thru process of McDonalds: • Speed- How much time does a customer spend in McDonalds drive-thru? McDonalds’ drive-thru target is 90 seconds. But, is it really able to achieve this target? No, not all the time. Many people have complained about drivethru errors, waiting for their meals in busy times, being stuck in the queue, etc. As the line gets longer, more people choose to bypass the restaurant and dine elsewhere. So, how can McDonalds overcome these problems? Proper drive thru management: Since queuing is on a strict first-in first-out basis; later customers are generally not served until all previous customers have been taken care of. Therefore, a whole line of people with quick orders can be held up by a single complex order. McDonalds can instead have a dual line layout & if the second customer’s order is ready first, then a green light can be used to signal the second car, so that the person takes his/her’s order & goes. Service times are improved dramatically for short orders, yet not impacted for longer orders due to multiple wait queues. The disadvantage of adopting the dual line layout is that it will take up a lot of time & be costly for McDonalds to change the layouts of all their restaurants. Plus, some customers will get really annoyed if they came in first but served second. To overcome this, McDonalds can have two windows (both left & right), the left one for large orders & the right one for small orders. Again, the question is how the small order meals will be bought to the right window if the kitchen is on the left side. Well, an employee can be especially dedicated to transfer the meals from the left window to the right one! Introduction of the use of mobile order entry terminals: will allow a restaurant employee to physically go to the drivethrough lane and enter orders, which increases through-put by providing two points of entry: the menu sign and the mobile order entry terminal. Problems associated with this option include: (1) interfacing the mobile entry terminal to the current POS (Point of Sale) system; (2) supporting multiple languages and interfaces; (3) constant menu changes and additions; (4) safety of the employee; (5) weather conditions; (6) hardware costs; (7) order sequencing; and (8) the customer is unable to review the menu prior to ordering. Adopt a new system: McDonalds can also adopt a new system called Delphi Order Confirmation where a digital camera is attached to the drive-through menu system. “When an order is placed, a photo is taken of the car and/or the driver from approximately the same angle and distance that the drive-through employee would view when the car is at the payment or presenter window. The digital photo would be matched to the order record created by the POS system. The photo and order record could be presented in a variety of fashions, including a print out on the receipt with the itemized order and number. Alternatively, a touch screen with the patron's picture and order record for each
of the cars currently in the drive-through, and when the order is complete, the presenter would tap the photo on the touch screen indicating the order has been filled and the photo record would be removed from the system. This system will help shave about eight seconds from the order to delivery time. Besides order accuracy, it will also aid in speeding up the drive-thru process and address customer courtesy issues. Specific benefits to this system include easy installation and implementation with existing QSR (Quick Serve Rest) drive-through installations; minimal ongoing support required; limited risk of hardware loss/damage; increased employee safety; fully supported in multilanguage settings; and continues to provide the customer an opportunity to review the menu!” (www.freepatentsonline.com) People will be uncomfortable: with the idea, that they're being photographed every time they make a quick stop for a double cheeseburger with fries. Though, it’s a "non-invasive" procedure & the photos aren't stored in the system. They're deleted as soon as the order is completed. A lot of restaurants already have surveillance cameras on their premises that photograph people. Another trouble is that it will be costly for McDonalds to implement this system. But then again, it will show good results in the long run! • Cost- Is McDonalds charging a lot to its customers? Can they bring down its costs further? Value meal strategy: McDonalds can employ the value meal strategy which allows customers to buy a sandwich, french fries, and beverage at a discount when purchased together. Moreover, it can also offer daily specials of special menu items, such as “9 Dhs Happy meal on Thursdays, from 4:00 PM - 8:00PM” or other similar specials. More number of people will be attracted by such offers & hence McDonalds’ average cost will decrease. However, the limitation is that these daily specials will bring in a lot of customers but also make it harder for McDonalds’ staff to handle so many people together & serve quickly!!! So, they should anticipate having so many customers & moulding their operations according to that. During busy periods, McDonalds requires more than two to three people who are dedicated to the drive-through process. If it adopts the Delphi order system mentioned on page 2 & 3, it will not require a lot of employees to take the orders, enter in the system & make mistakes in matching the orders with the cars, hence cutting down on its costs. However, this might lead to some employees being made redundant. Use Customer order Display: When a drive through worker is taking an order, it can be displayed automatically on a screen available to the customer outside, called the Customer Order Display (COD). The customer can review the COD and correct any mistakes, thus making the ordering process more precise. More precise orders eliminate time wasted from correcting mistakes & the cost arising from order errors. Energy management: Energy costs represent a significant portion of restaurant expenses. Parking-lot lighting,
cooking appliances, ventilation systems, & other utility expenses can add up. These are very real costs that impact the profitability of a restaurant. McDonalds can invest in new equipment (which might be costly but beneficial in the long run), maintenance practices and revising some operating procedures. “Some cost-cutting strategies include are, investing in energy-saving equipment, securing long-term energy contracts, joining energy co-ops, controlling lighting schedules more efficiently, tinting windows, contracting with new energy providers, hiring energy consultants and decreasing deliveries, regular cleaning and upkeep of refrigerator coils. Furthermore, a calendar with the recommended maintenance dates for all parts and equipment, including monthly, quarterly and annual checks can be made.” (www.restaurant.org)
• Quality- Where does McDonalds stand in terms of is service? Not as good as it used to be. Probably the meals are okay, but what about the employees serving the customers & the overall experience which the customers go through? Surprise quality checks: For sure, all McDonalds restaurants already go through periodic inspections in terms of quality checks, but they can have more surprise checks & if the store fails to pass the inspection the second time, the corporate can take over the store and bring in better employees to ensure that the proper processes and equipment are being used properly. Improve the training process & taking care of employees: McDonalds can include online e-learning tools for its restaurant staff. In addition to this, it should make sure that the needs of its staff are met & they are given recognition for good performance. Once this is done, automatically they will be happy to do their jobs & of course happy employees will lead to a better service & eventually happy customers! • Dependability- How can McDonalds make its processes more reliable? If McDonalds opts for dual line layouts & a reliable system like Delphi order confirmation system (mentioned on pages 2 & 3,) then without any doubt its customers can rely on its operations. They will be sure that their meals will always be ready within a specified time without any errors & they’ll be able to get out quickly with the dual line layout. • Flexibility- Can McDonalds adjust its processes to meet customer requirements? Multiple trained staff: McDonalds can have a multiple trained staff in order to be flexible. Again, this will cost money but be beneficial in the long run. Ordering on a toll free number: McDonalds can give their customers the option to place their order by calling on a toll free number & giving them a unique order number so that their meals are ready when they come to pick them up. The drawback is that an employee will have to be specially delegated to take the orders when customers call! Answer b) “A transformation process is any activity or group of activities that takes one or more inputs, transforms and adds value to them, and provides outputs for customers. Where the inputs are raw materials, it is relatively easy to identify the transformation involved, as when milk is transformed into cheese and butter.” (openlearn.open.ac.uk) Where the inputs are information/people, the nature of the transformation may be less obvious. For example, a hospital transforms ill patients (the input) into healthy patients (the output). • Figure 1: The transformation model Source: (openlearn.open.ac.uk) The transformation model of a McDonald’s drive-thru process will look something like this: Feedback Figure 2: Transformation model of McDonalds drive-thru A customer enters the drive-through in his/her vehicle along a path and stops at a sign/menu-board that contains a menu. The customer is prompted by an order-taker to order his/her’s desired meal. Once the order has been confirmed, the driver proceeds (while his/her meal is prepared & packed) toward a drive-through pickup window, in queue behind any previous cars, where the driver submits his/her payment to a window person and then receives
his/her food. Some restaurants use a two-window system during busy times, whereby the driver pays at a payment window and receives his food at the pickup window. Figure 3: Drive-thru process shown in pictures Source: (www.google.com) Inputs & Output Some inputs are used up in the process of creating goods or services; others play a part in the creation process but are not used up. Three types of resource that may be transformed in operations are: • materials – the physical inputs to the process • information that is being processed or used in the process • customers – the people who are transformed in some way. Many transformation processes produce both goods and services. For example, McDonalds provides a service, but also produces goods such as food and drinks. Transformation processes may result in goods/services (output) that are designed to deliver. Feedback A further component of the transformation model in Figure 1 is the feedback loop. Feedback information is used to control the operations system, by adjusting the inputs and transformation processes that are used to achieve desired outputs. For example, a chef relies on a flow of information from the customer, through the waiter, about the quality of the food. Adverse feedback might lead the chef to change the inputs (for example by buying better quality potatoes) or the transformation process (for example by changing the recipe or the cooking method). Feedback is essential & can come from both internal and external sources. Internal sources include testing, evaluation and continuously improving goods and services; external sources include those who supply products or services to end-customers as well as feedback from customers themselves. To sum up, operations performance is an important functional area because it plays a crucial role in determining how well an organization satisfies its customers. Moreover, an understanding of the principles of operations management is important for all organizations, because they provide a systematic way of looking at its processes. Furthermore, the overall transformation process can be further broken down into a series of micro-processes. Attention to processes ‘within’ organizations can provide a powerful tool for understanding organizational performance & minimize errors. Bibliography
McDonalds has built up huge brand equity. It is the No. 1 fast-food company by sales, with more than 31,000 restaurants serving burgers and fries in almost 120 countries. Sales, 2007 (11,4009 million), 5.6% sales growth. Good innovation and product development. It continually innovates to retain customers in the business.
The McDonalds brand offers consumers choice, reasonable value and great service Large amounts of investment have gone into supporting its franchise network, 75% of stores are franchises. Loyal staff and strong management team.
• • Core product line out of line with the trend towards healthier lifestyles for adults and children. Product line heavily focused towards hot food and burgers. Seasonal Quality issues across the franchise network.
• • • Joint ventures with retailers (e.g. supermarkets). Consolidation of retailers likely, so better locations for franchisees. Respond to social changes - by innovation within healthier lifestyle foods. Its move into hot baguettes and healthier snacks (fruit) has supported its new positioning. Use of CRM, database marketing to more accurately market to its consumer target groups. It could identify likely customers (based on modeling and profiles of shoppers) and prevent brand switching. Strengthen its value proposition and offering, to encourage customers who visit coffee shops into McDonalds. The new “formats”, McCafe, having Wifi internet links should help in attracting segments. Also installing children’s play-parks and its focus on educating consumers about health, fitness. Continued focus on corporate social responsibility, reducing the impact on the environment and community linkages. International expansion into emerging markets of China and India.
• Social changes - Government, consumer groups encouraging balanced meals, 5 a day fruit and vegetables. Focus by consumers on nutrition and healthier lifestyles. Competitive pressures on the high street as new entrants offering value and greater product ranges and healthier lifestyles products. E.g. subway, supermarkets, M&S.
Recession or down turn in economy may affect the retailer sales, as household budgets tighten reducing spend and number of visitors. Pressure groups - environmental.
P's Of Mc DONALDS'
• • •
THE 7 P's Of Mc DONALDS' PRODUCT: Mc Donaldâ€™s product portfolio primarily comprises of vegetarian and nonvegetarian burgers. The vegetarian burgers like Veg surprise, salad sandwich, Mc Aloo Tikki Burger, Mc veggie burger are offered to the customers. Non-vegetatarian burgers include Chicken Mc grill, Mc chicken burger, Fliet of fish and chicken maharaja burger. Along with these french-fries, veg pizza mc puff, wrap chicken Mexican, wrap paneer salsa, potato wedges, soft serve pineapple and choclate ice creams, Mc swirl soft drinks, coffee and Mc shakes are also offered to increase the variety in the product portfolio. Mc Donalds also provides mean combos with medium fries and medium soft drink, happy mean with small soft drink, econo meals with small soft drink and value meals with potato wedges and small soft drink. PRICE: Mc Donalds vegetarian burgers are priced between Rs 20 and Rs 48. Wrap paneer salsa is priced at Rs 45-50. The non vegetarian burgers are priced between Rs 30 and Rs 60. Wrap chicken Mexican is priced at Rs 55. Medium French fries are priced at Rs 28, potato wedges at Rs 20, soft serves at Rs 35, mc swirl at Rs 12, medium soft drinks at Rs 20 and medium shakes at Rs 45. PROMOTION: At Mc Donalds the prime focus is on targeting children. In happy meals too which are targeted at children small toys are given along with the meal. Apart from this, various schemes for winning prices by way of lucky draws and also scratch cards are given when an order is placed on the various mean combos. In fact, the various econo meals and value meals also signal to the customer that buying separate items results in greater value for money for the customer. PLACE: Mc Donalsâ€™ outlets are very evenly spread throughout the NCR region. Mc Donalds does not offer home delivery but its outlets are very readily accessible. Mc Donalds also offers take away drive through facilities. PEOPLE:
The employees in Mc Donalds have a standard uniform and Mc Donalds specially focuses on friendly and prompt service to its customers from their employees. PROCESS: The food manufacturing process at Mc Donalds is completely transparent i.e. the whole process is visible to the customers. In fact, the fast food joint allows its customers to view and judge the hygienic standards at Mc Donalds by allowing them to enter the area where the process takes place. The customers are invited to check the ingredients used in food. PHYSICAL EVIDENCE: Mc Donalds focuses on clean and hygienic interiors of is outlets and at the same time the interiors are attractive and the fast food joint maintains a proper decorum at its joints.