This action might not be possible to undo. Are you sure you want to continue?
Name Mohit Kanadkhedkar Kunal Kapoor Anoop Khurana Gurpreet Lamba Subodh Mayekar Pravina Nagpal Chanpreet Kaur Obhan
Roll Number 2012065 2012073 2012081 2012089 2012097 2012105 2012113
Sr.No. 1 2 3 4 5 6 7 8 9 10 11
Particulars Indian Retail Industry Indian Food Industry About McDonalds SWOT Analysis PESTEL Analysis Marketing Mix 7P’s Competitors Analysis STP Analysis Issues Solutions Bibliography
Page Number 4 5 6 10 14 20 28 36 45 49 52
Indian Retail Industry
Retail industry can be classified into two broad categories – organized retail and unorganized retail. Organized retail - Those traders/retailers who are licensed for trading activities and registered to pay taxes to the government. Unorganized retail – It consists of unauthorized small shops - conventional Kirana shops, general stores, corner shops among various other small retail outlets - but remain to be the radiating force of Indian retail industry. Overview Retail industry, being the fifth largest in the world, is one of the sunrise sectors with huge growth potential and accounts for 14-15% of the country’s GDP. Comprising of organized and unorganized sectors, Indian retail industry is one of the fastest growing industries in India, especially over the last few years. According to the Global Retail Development Index 2012, India ranks fifth among the top 30 emerging markets for retail. The recent announcement by the Indian government with Foreign Direct Investment (FDI) in retail, especially allowing 100% FDI in single brands and multi-brand FDI has created positive sentiments in the retail sector. Emerging Areas • • Some sectors that occupy a prominent position with the retail industry are: Apparel Retail: Everybody understands the impact of fashion and textiles on the environment. Almost $19.5 billion were spent on online apparel shopping in the year 2009 and increasing since then. • Fashion & Lifestyle Retail: In India the vast middle class and its almost untapped retail industry are the key attractive forces for global retail giants wanting to enter into newer markets, which in turn will help the retail to grow faster.
Food & Beverage Retail: Backed by huge potential and changing lifestyles, the food and beverage retail market is growing at a robust 30-35 per cent per year.
Pharmaceutical Retail: Driven by therapies like anti-diabetic, vitamin, anti-infectives and dermatology, it accounted for a robust 15% growth in 2011.
E-commerce or E-tailing – the next big revolution: With the advent of e-commerce in the retail industry, retail stores are facing stiff competition from e-stores. The rising demand for e-shopping has lead to a new debate cropping up in the world.
Indian Food Industry
The Indian food services industry is estimated to be nearly worth Rs 75,000 crore (US$ 13.77 billion) and is growing at a healthy compound annual growth rate (CAGR) of 17 per cent, according to a Franchise India report released at the Indian Restaurant Congress. It is expected to reach Rs 1,370 billion (US$ 25.16 billion) by 2015. "In the future, the organised market is expected to grow even faster - at around 20 to 25 per cent per annum," according to Mr Gaurav Marya, President of Franchise India. The Indian food services industry is anticipated to grow at a CAGR of around 12 per cent during 2012-2015, as per a RNCOS research report titled, 'Indian Food Services Market Forecast to 2015'. In addition, India has also been recognised as one of the largest potential market for organic food consumption worldwide. The organic food is invariably increasing among the Indian retailers, especially with the niche retailers, as per RNCOS research report titled, 'Indian Organic Food Market Analysis'. The report further highlighted that the sector will grow at a CAGR of 15 per cent during 2011-2013. India is fast becoming an important investment destination for foreign players with companies like Starbucks and American brand Dunkin' Donuts, who have recently entered the country.
McDonald's primarily sells hamburgers. Businessman Ray Kroc joined the company as a franchise agent in 1955. wraps and smoothies.About McDonalds McDonald's Corporation is the world's largest chain of hamburger fast food restaurants. Mcdonalds Vision 6 . McDonald's revenues grew 27 percent over the three years ending in 2007 to $22. The corporation's revenues come from the rent. A McDonald's restaurant is operated by either a franchisee. The company also operates other restaurant brands. royalties and fees paid by the franchisees. In response to changing consumer tastes. an affiliate. the company began in 1940 as a barbecue restaurant operated by Richard and Maurice McDonald. the company has expanded its menu to include salads. McDonald's restaurants are found in 119 countries and territories around the world and serve 68 million customers each day. cheeseburgers.9 billion. softdrinks. milkshakes and desserts. fish. employing more than 1.7 million people. breakfast items. and 9 percent growth in operating income to $3. serving around 68 million customers daily in 119 countries. as well as sales in companyoperated restaurants. Headquartered in the United States. in 1948 they reorganized their business as a hamburger stand using production line principles. He subsequently purchased the chain from the McDonald brothers and oversaw its worldwide growth. chicken. McDonald's operates over 34.8 billion.000 restaurants worldwide. French fries. such as Piles Café. or the corporation itself.
and Achieve enduring profitable growth by expanding the brand and leveraging the strengths of the McDonald's system through innovation and technology. service. so that we make every customer in every restaurant smile. cleanliness. The remaining 85% is operated by franchises. 7 ." McDonald's Missions • • • Be the best employer for our people in each community around the world Deliver operational excellence to our customers in each of our restaurants. Service. McDonald’s Corporation is created 1957 Quality."McDonald's vision is to be the world's best quick service restaurant experience. Year 1955 Events Ray Kroc opens his first restaurant. The company follows a comprehensive framework of training and monitoring of its franchises to ensure that they adhere to the Quality. and value. Being the best means providing outstanding quality. Cleanliness and Value (QSC & V) becomes company motto 1963 1965 1968 1974 1996 Ronald McDonald makes debut The company goes public Big Mac is introduced` Happy Meal is launched McDonald’s opens in India. the 95th country BUSINESS MODEL • Franchise Model – Only 15% of the total number of restaurants are owned by the Company.
McDonald's in India is a locally owned and managed company run by Indians. Cleanliness and Value propositions offered by the company to its customers. 8 . the company has been consistent geographies. • Product able to Consistency achieve – By developing product a taste sophisticated and quality supplier across networked operation and distribution system.Service. • Act like a retailer and think like a brand – McDonald’s focuses not only on delivering sales for the immediate present. sourcing from local suppliers to serve its customers. employing local staff. but also protecting its long term brand reputation.
India was the only country in McDonald’s system. Vikram Bakshi. SWOT Analysis Strengths 9 . led by Ms. the brand McDonald’s is managed by two entities…Connaught Plaza Restaurants Pvt Limited. led by Mr.In India. Today. is spread across North & East of India. serving a menu which did not have any beef or pork based products. and Hardcastle Restaurants Pvt Limited. is spread across West & South of India. with our presence spread across 45 cities in the country When we opened our doors in India at Basant Lok in New Delhi in October 1996. we are 235 restaurants strong and counting. it was the 95th country where the McDonald’s was operating. Smita Jatia.
One of the main competitive advantages of McDonald’s is strategic locations. tourist locations and shopping malls. Customer knows what to expect when walking into McDonald’s restaurant. This strong brand recognition creates significant opportunities for the company. In international markets. Innovation is a key emphasis for McDonald’s to produce new product and diversifies its business venture to suit to the changing trends and tastes of people and culture around the globe. also the low and mid-range income community who forms the majority of the consumer power in fast food industry. MacDonald’s is well placed to expand and take advantage of long-term economic growth. Strong and marketable product which comes with affordable price are able to captivate children and youth society. McDonald’s marketing has successfully created a brand image of fast food delivery speed.000 restaurants in 125 countries. It has a strong global presence with its nearest domestic competitor being only half its size. cities. Approximately 85% of McDonald’s businesses are owned by franchisee operating full time in more than 33. The McDonald’s brand is the most well known house-hold brand. along the highways. McDonald’s is easily adapted their global restaurants to appeal to cultural indifference’s 10 . MacDonald’s is able to generate more sales because of its brand recognition.McDonald’s is the market leader in fast food franchise with huge customer base around the world. cleanliness and customer care in the minds of millions of consumers. these restaurants have global locations in all major airports. MacDonald’s benefit from cost reduction through economies of scale because of its enormous size and its huge global presence allows it to diversify risk involved with the economic performance of specific countries. the golden arches and spokes character (Ronald McDonald’s the clown) is most recognizable logo in the globe.
In India. For example. McDonald’s runs through 72 safety protocol days to ensure food is maintained in clean and contaminate-free environment. The famous Ronald McDonald’s Houses provides accommodation. Like any other organization in the hospitality industry. in Islamic countries. McDonald’s brand is often related to unhealthy food and obesity. There were more than 2000 inspections checks in the food preparation processes. McDonald’s must start to change its marketing strategy and expand their business into other segment to remain competitive. Its products are localized to the people’s culture and taste in the country. Nutrition information is provided to customer and it is printed on all packaging including in McDonald’s internet web-sites. which leads to more money spent on recruitment and training. signify the compliance with Islamic laws of food preparation. food and sibling support for families with children needing extensive hospital care. McDonald’s is a community oriented and socially responsible company. One of the fastest growing trends in recent year is organic food. McDonald’s has problem 11 . The market segment is too focusing on kids. Weaknesses Over the years. McDonald’s is also faced with high employee turnover rate.around the world. McDonald’s restaurants maintain “Halal” menu. McDonald’s has yet to capitalize on the trend towards organic food. In India employee turnover rate is as high as 83% in front end as per Thomas Reuters Report. following strictly food safety guidelines to provide nutritional values in the food. Little has been done by McDonald’s to counter these claims. such as hamburger. McDonald’s had created successful branding and image in the heart of children and teenage group. the McDonald’s menu is adapted to local Indian culture McDonald’s has good governance of its operating line. french fries.
McDonald’s can introduce healthy food such as low calorie items. These strategies will allow McDonald’s to ensure their place in top spot above all others. the business can be expanded to offer “fast beverages” such as 12 . leverage on off shoring for 24 by 7 customer care hotline and internet online technology for taking orders. MacDonald’s has to deal with the prospect of looming market saturation.with fluctuations in operating and net profits which impact its investor relations. besides “fast food”. McDonald’s can expand its product offering into organic food. the company will survive all the changes and competition in these day and future. putting more effort in the R&D on introducing healthy food and eating habit. The marketing and product R&D will need to work on offering more varieties to entice existing and new customer base. which could make it difficult to add new outlets. Opportunities With a good management and product development. Changing trends in eating habits toward more healthy eating. There is also an increasing price competition driven by too many competitors. McDonald’s also needs to cope with the fast changing consumer needs and trends to ensure sustainability and competitive advantages. For example. which reduces the company’s ability to increase revenue. seen as a threat to McDonalds can also be seen as an opportunity. Nevertheless. The management can improve the company fluctuating operating profit with better cost control to reduce food wastage and better manage its production and front-line offices with lean management. the swift of the company’s focus from a value menu to a more diverse one has recently limited the negative effect of the intense price competition that was traditionally taking place among the industry leaders. McDonald’s can tapped on outsourcing to reduce resources spent on administration and also food delivery.
Openining a fully veg restaurent was really welcomed. Such recent business innovative is Mc Café. If McDonalds keeps inventing like this it has a really huge potential to grow. Subway. McDonalds faces huge competition from KFC. often receives bad press because of its link obesity. Jumbo King and other local vada pav retailers.coffee varieties. Pizza Hut. Other franchisee fast food restaurents also giving McDonalds run for its money. just like other fast food industry. McDonald’s needs to strategize on its business. 13 . market. McDonald’s. McDonald’s has been sued multiple times for “unhealthy food” allegedly with addictive additives contributing to obesity epidemic. McDonald’s still needs to penetrate in many cities and has tremendous opportunity in India. As a leader in the global food service retailing business. internet café surfer. Inflation is increasing in India and it is hard to keep prices low. McDonalds has to find innovative solutions to keep the prices low. McDonald’s had faced critics from parent advocate groups for their marketing practices and ethicality. product R&D to minimize and overcome these threats. One of the strategies that McDonald’s can venture into is expanding its restaurant varieties to capture different market segments such as business executives. Dominos. Threats McDonald’s faces major competition from the fast food industry and hamburger business. Major threat McDonalds faces is to keep prices low. milk shake series.
Specific markets focus on different areas of concern such as that of health. For instance. They have indicated that harmful elements like cholesterol and adverse effects like obesity are attributable to consuming fast food products. worker protection. Europe and the United States that clamour for state actions pertaining to the health implications of eating fast food. For instance. the company is controlled by the individual policies and regulations of operations. there are certain groups in India. All these elements are seen in the government control of the licensing of the restaurants in the respective states of the country. On the other hand. and environment. there is an impending legal dispute in the McDonald’s franchise in India where certain infringement of rights and violation of religious laws pertaining to the 14 .PESTEL Analysis Political Factors The international operations of McDonald’s are highly influenced by the individual country’s policies enforced by each government.
The customers consequently are faced with a stalemate of going over their individual budgets whether or not they should use up more on these foreign fast food chains like McDonalds. In regarding the operations of the company. Economic Factors Organisations in the fast food industry are not excused from any disputes and troubles. these chains may have to put up with the issues of the effects of the economic environment. they do have their individual concerns involving economic factors. Like any business venture. McDonald’s tend to import much of their raw materials into a specific country’s territories if there is a dearth 15 . Specifically. there are certain other factors like consumer taxation. different political infrastructures and the scenario of the global market. India is quite rich as far as the political structure and policies are concerned that is the reason why international organizations face difficulties when they are entering in India. However. In the similar manner it can be said that India is a nationalist country that is the reason why they create difficulties for international entrants.contents of the food. There are also other studies those points to the infringement of McDonald’s Stores with reference to the existing employment laws in the target market. their problem depends on the response of the consumers on these fundamentals and how it could influence their general sales. The existence of meat in their menus in India is apparently offensive to the Hindu religion in the said market. Particularly. Branches and franchises of McDonald’s have the tendency to experience hardship in instances where the economy of the respective countries are hit by inflation and changes in the exchange rates. Hence. India is not an exception to it. these McDonald’s stores have to contend with the issues of employment procedures as well as their tax obligations so as to succeed in the foreign market like India.
the company will also have to consider the economic standing of the country on which they operate on. the organisation improves on establishing a positive mind-set from their core consumers. if a franchise operates in a particularly economically weak country. McDonald’s indulge a particular variety of consumers with definite types of personalities.of supply. In the same regard. McDonald’s has launched a sensibly valued set of food that tenders a reliable level of quality for the respective market where it operates. Socio-cultural Factors McDonald’s seem to function on several fields to guarantee lucrative returns for the organisation. The rate at which the economy of that particular country grows determines the purchasing power of the consumers in that country. To illustrate. then these franchises must take on certain adjustments to maintain the economies of scale. Moreover. Hence. This basically ensures the smooth operations of the McDonald’s franchises. it is imperative that the company be cognizant of the existing tax requirements needed by the individual governments on which they operate. McDonald stores have to take a great deal of consideration with reference to their microenvironment. an option with regards to their dining needs. The company’s international supply as well as the existing exchange rates is merely a part of the overall components needed to guarantee success for the foreign operations of McDonald’s. those who are aged just below the bracket of thirty-five are said to be the most frequent consumers of McDonald’s franchises. It has also been noted that the company have given the markets such as the United Kingdom and India. However in case of India the company has been able to maintain a constant level of prices for their products. their products shall cost higher than the other existing products in the market. As stated in the paragraph above. Exchange rate fluctuations will also play a significant role in the operations of the company. Additionally. 16 .
In the case of McDonald’s they establish a good system in determining the needs of the market. The existence of ‘play spots’ as well as ‘toys in meals’ offered by the company shows this actuality. Other advertising operations employ popular celebrities to promote their products. Collaboration with websites like Snapdeal and Timesdeal to promote sales in India. the operations of McDonald’s have significantly been infused with new technology. The integration of technology in the operations of McDonalds tends to add value to their products.The multifaceted character of business nowadays is reflected in the harsh significance of the information on the subject of the existing market. this 17 . This procedure is essentially identified in the field as market research. It is said to have a major influence on the understanding of the prospective performance of the organisation in a particular market. There are similarly some claims that McDonald’s are inclined to interest the younger populations more. They employ animated depictions of their characters like Grimace. Moreover. television advertisements. Basically. Ronald and Ham burglar. Elements like the inventory system and the management of the value chain of the company allows for easy payments for their suppliers and other vendors which the individual stores in respective markets deal with. The company uses concepts of consumer behaviour product personality and purchasing decisions to its advantage which is clearly evident in case of India as the company was quick in removing their Pork and Mutton products from India’s menu. Information with regards to the appeal and potential fields of the market would double as obstructions to the success of the company if this area of the operations is neglected. Technology Factors McDonald’s generates a demand for its own products. The company’s key tool for marketing is by means of Online Facebook and Google ads. The ‘like’ has become endorsers for McDonald’s worldwide “I’m loving it” campaign. banners and hoardings. Other demonstration of such a marketing strategy is apparent in the commercials they use.
Constant updating of the social corporate responsibility is imperative.time effects of the communications are a good way to find suppliers. Environmental Factors The social responsibilities of McDonald’s on the country are influential to the operations of the company. The improvement of the inventory system as well as its supply chain allows the company to operate in an international context. Among the reasons why they are charged with such claims is the employ of non-biodegradable substances for their drinks glasses and Styrofoam coffers for the meals. It should also monitor the waste disposal of the company. interactivity and real. These involve accusations of environmental damage. a manner of internal control of those that would infringe upon this company objective. The cost-effectiveness.is manifested in the improvements on its value chain. The company must also look into the use of IT to enhance their inventory operations. McDonalds use the internet to their advantage. This should also entail that the headquarters should take in hand. Several civic groups in India have made actions to make the McDonald’s franchises in India aware of the rather abundant use of Styrofoam containers and the resultant abuse of the environment. the company will expect significant savings and reduction of costs in the operations. McDonald’s should minimize the use of Styrofoam materials and plastic cups. 18 . The company should find out the environmental regime that governs the operations in every market. Sanctions such as revoking of the franchise license or a particularly high fine should be installed to serve as a deterrent to infringement. It is also a good way to correspond with the respective McDonald’s headquarters in every Country. As the operations in its inbound and outbound logistics improve.
Otherwise. and quality requirements are only a few of important elements on which the company has to take into consideration. the consumers provided freedom in choosing whether or not they want to purchase their meals. McDonalds should protect its integrity and consumer confidence by ensuring all materials and process are as claimed or must followed.Legal Factors There has been the recurrent bellowing in opposition to the fast food industry. Other legal requirement that the business owner should 19 . operations in predominantly Muslim countries require their meat to conform to the Halal requirements of the law. those that operate in countries in the European Union should conform to the existing laws banning the use of genetically modified meat products in their food. For instance. The reputation of McDonald’s is apparently a huge matter. This is to attend to the arguments of obesity charged against the products of the company. As a certified fast food operator. On the whole. it seems that they have acquired strides to take in hand the key social censures that they have been berating them in the past decades. In the same regard. employment standards. pork and Mutton out of India’s product menu. Seen on the website of the company. This is tied up with the socio-cultural attributes of the market on which they operate. this addressed the need of the company to form its corporate reputation to a more positive one and a more socially responsible company. The company has provided their customers the relevant data that they need with reference to the nutritional substances of their products. In the same way. Other legal concepts like tax obligations. This has similarly made McDonald’s apply a more careful consideration on their corporate social responsibilities. This was prime reason which forced McDonalds to eliminate beef. smooth operations shall be hard to achieve. there are many regulations and procedures that McDonalds should follow.
labour and employment laws and quality & environment certification (such as ISO) in which the outlet has been certified. However. Conclusion As we all know that the most significant contribution of this generation is the combination of globalization and internationalization in the businesses sector.follow as stipulated in laws are such as operating hours. This denotes that having the information on the effects of these alterations swiftly provides these fast food industry giants to take fine-tuning actions on their acts and still preserve their market position. business registration. The legal requirement is important because the offenders will be fined or have their business prohibited from operating which can be disastrous. This level of flexibility can basically be acquired through the acquaintance of both the internal and external environment of the company. As implied the markets of 20 . The company should hire local counsels to deal with the legal conflicts in individual markets on which the company may encounter. Alterations could take place and require intense modifications to the operations such that it could have an adverse effect on the entire structure of the company. The slight changes that take place in the market have an effect on the operations of the business in any case. as indicated in the above PESTEL analysis. this could be acquired by setting a certain level of flexibility in the organisation. but what it preserves as revealed in its processes is the need for flexibility. This shall ensure the company that the lawyers that will handle their legal affairs are more versed with the legal regime that would ease out certain problems on their operations. Even though McDonald’s may have been deemed as demigod in the fast food business in the international scene. Developments in the international setting have an effect on the more particular factors in the operations in individual organisations. tax requirement.
any business in spite of the muscle of the brand name or the size of its reserves could not afford any failures in their individual markets.nowadays manifest a cutthroat rivalry with the individual competitors. recognized brands or otherwise. McDonalds Marketing Mix (7 P’s) 21 . Hence.
Price 4. finding the target segment and positioning itself. Promotion 5. The 5 P’s used by McDonalds are: 1. Place 3. Process Product:How should the company design. each company needs to come up with an offer. Physical Evidence 7.After segmenting the market. People 6. Product 2. manufacture the product so that it enhances the customer experience? 22 .
There is a certain degree of fun and happiness that a customer feels each time he dines at McDonalds. at the right time and in the right quantity. guarantee. McDonalds offers hygienic environment. McDonalds bring with it a globally reputed brand. This includes both the tangible and the non-tangible aspects of the product and service. looks etc. McDonalds studied the behaviour of the Indian customer and provided a totally different menu as compared to its International offering. It dropped ham. Even the sauces and cheese used in India are 100% vegetarian. McDonalds continuously innovates its products according to the changing preferences and tastes of its customers. There are certain value propositions that McDonalds offer to its customers based on their needs. During their study McDonalds found out that India is a country where 85% population doesn’t eat beef so its no point serving beef. Place: Where should be the product be available and the role of distribution channels? The place mainly consists of the distribution channels.Product is the physical product or service offered to the consumer. McDonalds came out with perry perry fries and its latest Mcspicy burgers. Product includes certain aspects such as packaging.good ambience and 23 . Hence. The recent example is the introduction of the Mcspicy Chicken. It is important so that the product is available to the customer at the right place. India is the only country where McDonalds serve vegetarian menu. McDonalds has intentionally kept its product depth and product width limited. beef and mutton burgers from the menu. McDonalds found out that Indians have peculiar connection with spicy food. world class food quality and excellent customer specific product features.
This was to attract the middle and lower class consumers and the effect can clearly be seen in the consumer base McDonalds has now. McDonald’s came up with a very catchy punch line “Aap ke zamane mein . McDonalds has certain value pricing and bundling strategies such as happy meal.great service. Price: What should be the pricing strategy? McDonalds should also take into the consideration the probable reaction from the competitor to the pricing strategy. There are certain dedicated areas for children where they can play while their parents can have some quality time together. This is the most important part of the marketing mix as this is the only part which generates revenue. combo meal. Now McDonalds have also started giving internet facility at their centres and they have been playing music through radio instead of the normal music. 24 . In 2004. All the other three are expenses incurred. family meal etc to increase overall sales volumes.baap ke zamane ke daam”. The price must take into consideration the appropriate demand-supply equation.
They use print ads and the television programmes are also an important marketing medium for promotion.To McDonald’s” • “Aap ke zamane mein .Promotion: What is the suitable strategy and channels for promotion of the product? The various promotion channels being used by McDonald’s to effectively communicate the product information are given above. There are three main objectives of advertising for McDonald’s are to make people aware of an item. Pricing strategies. • “Food. McDonald’s does its promotion through television. hoardings and bus shelters. In this 80% is visual and 20% is descriptive.99 so that its easier for people to understand. and Fun” • “I’m loving it”. A clear understanding of the customer value helps decide whether the cost of promotion is worth spending. McDonalds also banks on its 80 – 20 menu board. 25 . no tips attracts middle class.baap ke zamane ke daam”. Folks. Also it has kept prices like 29. The right message has to be communicated to the right audience through the right media. so get up and get away.69. feel positive about it and remember it.49. Some of the most famous marketing campaigns of McDonald’s are: • “You Deserve a break today. quick service.
McDonald continuously does Internal Marketing. Middle level managers 4. “ Get them in. Fillet-o-Fish. This includes hiring.Get them back ”. This way they serve customers well and the final result is a happy customer. It understands the fact that a happy employee can serve well and result in a happy customer. • • Get Them In : To make consumers step into McDonald’s restaurant. The level of importance has changed to be in the following order (the more important people are at the top): 1. etc.Key objectives of McD’s promotion strategy were to. Customers 2. training and motivating able employees. Trade Them Up : To shift the consumers to McDonald’s core products like Burger with cheese. Front line employees 3. • Get Them Back:To increase the frequency of visit by making the McD’s brand experience People: How to converge the benefits of internal and external marketing? McDonald’s understands the value of both its employees and its customers. McChicken Burger. Front line managers The punch line “I’m loving it” is an attempt to show that the employees are loving their work at McDonalds and will love to serve the customers.Trade them up. This is important as it must precede external marketing.. 26 .
The revamped menu in India is an example of McDonald’s strategy of integrating the customer’s perspective in its products. helps understand 27 . And. This is where McDonald’s has excelled due to its ability to successfully integrate the customer’s perspective in its products and operations in a comprehensive manner. The Service Delivery Process is the key to achieving this aim of Service Marketing. The paradigms of service marketing demand a passionate understanding of customer expectations and perceptions. each moment of interaction between the firm and the customer.The McDonalds Experience Marketing in a services industry is becoming an increasingly complex challenge. the operational integration is evident from McDonald’s emphasis on its suppliers as its customers as well as its treatment of its consumers as co-producers of services. The ultimate aim of Service Marketing is not just to become a Service Leader but to create a Service Brand. called “Moments of Truth”. and linking them to product design & delivery as well as operational planning. Service Delivery Process Core Product Supplementary Process During the Service Delivery Process.
every time the cashier interacts with the customer. Internal Customer Focus is equally important as External Customer Orientation in order to win these “moments of truth”. McDonald’s self-service concept wherein the customer not only collects the order but also cleans the table after consuming the food). Managing these “moments of truth” is a great challenge in Service Marketing especially due to customer’s involvement as a co-producer of services (e. This is evident from the fact that very few of its customers opt for take-home parcels or home deliveries while most of them prefer to eat at the outlet and enjoy the McDonald’s experience. For example. every time an attendant takes down the order from the customer waiting in the queue. The quality and the consistency of the service delivered by McDonald’s have been greatly enhanced by the combination of the factors mentioned above. McDonald's has been able to create a great experience for its customers by understanding the nature of the entire Service Delivery Process and the various stages in the process that are exposed to the customers. Transparency in the processes at its outlet has helped McDonald’s bring the back office in its outlet at the front so that the customer is able to know the operations and provide feedback on service design improvements. every time the attendant helps the customer guided the customer towards the table. etc. Physical evidence 28 .g.the opportunities that a firm has to win or lose the customer. these “moments of truth” are created for McDonald’s every time the guard at the McDonald’s outlet meets the customer. However. This has helped McDonald’s become Service Leader and a successful Service Brand. every time the attendant cleans the table. McDonald’s focus on its People and their service delivery methods therefore plays a very important role in creating a successful Service Brand.
Black caps and Customised Ronald McDonald’s tie. The delivery scooters also add to the physicality of the company. There have been continuous efforts to enhance variety in the menu by developing more such products. In the last decade it has introduced some vegetarian and nonvegetarian products with local flavours that have appealed to the Indian palate. Staff members dress in McDonald’s Dress code with Green shirts. Vegetable products are 100% vegetarian. McDonald’s has also re-engineered its operations repeatedly in its 11 years in India to address the special requirements of a vegetarian menu. It maintains a proper decorum at its joints. McDonald’s does not offer any beef or pork items in India. using dedicated equipment and utensils.e. Only pure vegetarian oil is used as a cooking medium. Blue trousers. • • • They are prepared separately.The physical appearance affects not only the impression outsiders have of a business but also the way that business functions. 29 . It is completely transparent and visible to the customers. The customers are even invited to check the ingredients used in the food. i. Processes McDonald’s worldwide is well known for the high degree of respect for the local customs and culture. McDonald’s focuses on clean and hygienic interiors of its out lets at the same time they are attractive. the trademarks and the logo’s in the premises. McDonald’s has developed a menu especially for India with vegetarian selections to suit Indian tastes and preferences. Building maintenance and visible cues are provided by the golden arches. allowing them to judge hygiene standards where the process takes place. Cheese and sauces are completely vegetarian and egg less. Keeping in line with this.
New methods of food packaging and distribution are followed Competitors Analysis Dominos Pizza : The brand. it has grown into a global network of over 9000 pizza stores in more than 60 countries around the world. The Company is India's largest and fastest growing food service company. Bhartia and Jubilant Enpro Private Ltd. Bhartia. are the Promoters of the Company. The Company was incorporated in 1995 and initiated operations in 1996. Jubilant FoodWorks Limited (the Company) is a Jubilant Bhartia Group Company. Training to the licensees about how to operate the franchise. Domino's Pizza. Nepal. Mr. Food manufacturing transparent to customers across the counter. The Company has strengthened its portfolio by entering into an agreement with Dunkin' 30 . Hari S. Shyam S. The Company got listed on the Indian bourses in February 2010. was founded in the US in 1960 by Thomas and James Monaghan. Since then.• • • • • Separation of vegetarian and non-vegetarian food products is maintained throughout the various stages of procurement. cooking and serving. Bangladesh and Sri Lanka. with a network of 500+ Domino's Pizza stores Stores (as of 31st March. 2012)The Company is the market leader in the organized pizza market with a 54% market share (Euromonitor Report 2010) and 70% share in the pizza home delivery segment in India. Invented the most efficient cooking equipment with use of latest technology. Mr. The Company & its subsidiary operates Domino's Pizza brand with the exclusive rights for India.
We have endeavored to establish a reputation for being a home delivery specialist capable of delivering pizzas within 30 minutes or else FREE to a community of loyal consumers from all our stores around the country. toppings and flavours suitable to the taste buds of Indian Consumers. family and friends come together to share the pizza. our brand positioning: ‘Yeh Hai Rishton Ka Time’ KFC ( Kentucky Fried Chicken ) 31 . Thus. Hence. Domino’s believes strongly in the strategy of ’Think global and act local’. Further providing value for money and affordable products to our consumers has been an important part of our efforts. Domino’s constantly strives to develop products that suit the tastes of our consumers and hence delighting them. Domino’s believes that when a box of pizza is opened. Domino’s vision is focused on " Exceptional people on a mission to be the best pizza delivery company in the world!" We are committed to bringing fun. Over the period since 1996. superior quality. Domino’s Pizza India has remained focused on delivering great tasting Pizzas and sides.Donuts Franchising LLC. time and again we have been innovating with delicious new products such as crusts. Our initiatives such as Fun Meal and Pizza Mania have been extremely popular with consumers looking for an affordable and value for money meal option. exceptional customer service and value for money offerings. for developing the Dunkin' Donuts brand and operating restaurants in India. happiness and convenience to lives of our consumers by delivering delicious pizzas to their doorstep and our efforts are aimed at fulfilling this commitment towards a large and ever-growing customer base.
anti-globalisation and environmental campaigners. which together contain around half of its outlets. by diverting grain from poor people to make the more profitable animal feed. KFC was also accused of using illegally high amounts of monosodium glutamate (MSG) and frying its food in pork fat. An "American icon". Nanjundaswamy claimed that KFC would adversely affect the health of the impoverished. M. This resulted in protests from the left wing. KFC is famous for the slogan "finger lickin' good".000 outlets in 115 countries and territories as of December 2011 The chain primarily sells fried chicken pieces and variations such as chicken sandwiches and wraps. The exact nature of these ingredients are unknown. which has since been replaced by "Nobody does chicken like KFC" and "So good". The Bangalore outlet demanded. salads and side dishes such as French fries and coleslaw. and represent a notable trade secret. desserts and soft drinks. Kentucky. often supplied by PepsiCo. it is the world's largest fried chicken chain and the third largest restaurant chain after Subway and McDonald's. Its most famous product is pressure fried chicken pieces. KFC's two major single markets are in its home country and China. with over 17. but more 32 . as well as local farmers. A store in Delhi was closed by the authorities. The protests came to a head in August 1995. and received. Former environment minister Maneka Gandhi joined the protestors. seasoned with Sanders' "Original Recipe" of 11 herbs and spices. who believed that the chain was bypassing local producers. United States. and the disruption of indigenous traditions.KFC (Kentucky Fried Chicken) is a fast food restaurant chain headquartered in Louisville. the loss of national self-sufficiency. a police van permanently parked outside it for a year. when the Bangalore outlet was repeatedly ransacked. Many Indians protested the onslaught of consumerism. The first Indian KFC was opened in the city of Bangalore in June 1995. which specializes in fried chicken. purportedly for health reasons. D.
not returning until 1999. KFC has also been expanding into nontraditional facilities like shopping malls.likely to avoid a repetition of the Bangalore incident. Subway’s stand regarding obesity in children is not new to its customers. with a new Bangalore outlet. It is owned and operated by Doctor's Associates. Subway Subway is an American restaurant franchise that primarily sells submarine sandwiches (subs) and salads. 2012. KFC eventually abandoned the Indian market. Subway is one of the fastest growing franchises in the world with 37. 33 . universities. Inc. when the chain began to expand. KFC has the strategic objectives of expansion along with profits and sales growth. Such types of strategies are focused on increasing the customer base by better customization of products. KFC has also been applying its strategies at improving services and making them more and more customer friendly. hospitals. it has also been trying to cater to different ethnic groups like African Americans and Hispanics. Sandwiches of Subway have been included in diet plans by experts. (DAI). office buildings etc and a number of strategies have been formulated to aid this kind of expansion. Opened in India in 2001 at Saket. Other than the traditional eat-in restaurants.This was the sole KFC in India until 2004.000 locations). Other than this subway is intent upon introducing the concept of ‘healthy fast food’.Delhi The strategic objectives of Subway focus on creating a global strategic plan to enable Subway restaurants to succeed internationally. It has not only been customizing its menu according to the countries that it has been operating in.881 restaurants in 98 countries and territories as of November 7. stadiums. It is the largest single-brand restaurant chain globally and is the second largest restaurant operator globally after Yum! Brands (over 37.
With its advertising and promotion.Strategies at Subway are not only about a really ambitious increase in franchises all over the world but they are also about making the food more and more appealing to the health conscious customers because health conscious attitudes. buffalo wings. Subway restaurants can even be found in automobile showrooms and Laundromats! This global presence is indeed a sustainable advantage for Subway and needs to be managed properly. to ensure they can access the freshest ingredients. according to the experts. Inc. Another competitive advantage that subway enjoys is the fact that along with traditional locations. universities. fries and pizzas. pasta.000 non traditional locations such as food courts. breadsticks. and garlic bread.000 Pizza Hut restaurants in the United States. Pizza Hut Pizza Hut is an American restaurant chain and international franchise that offers different styles of pizza along with side dishes including salad. health clubs. Subway’s fresh food is also a competitive advantage because unlike its competitors like McDonald’s it allows its franchisees to choose their own food suppliers. are here to stay now. Subway has long been highlighting its healthy food in advertising and promotions and with the passage of time. As of 2012. Corporately known as Pizza Hut. it has established itself as a healthy brand. The salads and sandwiches appeal much more to the people as compared to fried chicken.139 store locations in 94 other countries and territories around the world 34 . amusement parks or just about anywhere. it is a subsidiary of Yum! Brands. hospitals. the world's largest restaurant company. there were more than 6.. and more than 5. Subway restaurants can be found in more than 4. burgers.. In fact. One of the greatest competitive advantages that Subway was born with is its healthy menu. Inc.
Another important feature of the strategies are the 3 Fs (Fun. The strategies at Pizza Maintenance. Hyderabad.500 restaurants across 91 countries. Pizza Hut has 140 restaurants across 34 cities.Problems Hut’s and . its restaurants had virtually no lunch time sales. The reason. Hospitality. and neither did any of its pizza competitors. Kolkata. including Delhi. Inc. Product always been a focal point of strategies at Pizza Hut. Pune. Bangalore. By using a new. Yum! is in the process of opening Pizza Hut restaurants at many more locations to service a larger customer base across the country. is that it takes 20 minutes to cook a pizza from scratch in a traditional pizza oven. which also has KFC. Pizza Hut is the world’s largest pizza chain with over 12. A&W and Long John Silver’s under its umbrella. Pizza Hut says: We want to satisfy our customers by offering them “The best”. Mumbai. In India.. the strategies are based upon customizing the services. Diversification of the products that Hut are guided by they principles like offer Cleanliness. continuous-broiling technology adapted from burger business. Taco Bell. Customer service and satisfaction have of course always been a vital aspect of the strategies. Weaknesses: At one time. of course. the biggest marketing problem Pizza Hut faced was lunch. When we talk about strategic objectives. and Chandigarh amongst others. Since it’s a global chain. has Accuracy.Pizza Hut is one of the flagship brands of Yum! Brands. As compared to McDonald’s. advertising and marketing activities according to the countries that they are operating in. Chennai. and most people won’t spend that long at lunch time waiting to be served. Pizza Hut developed a personal pan pizza that could be served in 35 Pizza Friendly and Familiar). quality and Speed (CHAMPS).
people at the Pizza Hut have a really good idea about which varieties are appealing to the customers and they are thus retained in the menus. tasty and moderately priced. Pizza Hut’s delivery service is one of quickest and the pizzas delivered are oven hot in the real sense of the world. Pizza Hut is often referred to as ‘Pizza Innovation Leader’ because it is constantly coming up with new varieties of pizzas to appeal the different audiences and at the same time. For example McDonald’s is introducing coffee beans grown in environmental friendly conditions in order to appeal to the people who are conscious about environmental friendliness. One of the weaknesses of Pizza Hut that it hasn’t overcome yet is its price. The first mover advantage is an advantage that Pizza Hut was born with but time. Most people don’t mind giving a lower price for slightly different taste because of which the sales at Pizza Hut at are suffering. it is going to lag behind the chains that offer healthier food. Pizza Hut on the other hand has not come up with any strategy in this area and if it doesn’t even in the future. It was quick. And Pizza Hut rolled it out to all 4500 stores worldwide and locked up the pizza-lunch business almost everywhere. It’s a phenomenon that highlights the health conscious attitude as well as environmental friendliness. offering lower prices and similar recipes.less than 5 minutes. In the pizza selling restaurants. Growing awareness about eco-friendliness has forced a lot of the food chains to maintain practices that conform to international environmental standards. almost overnight. In the Indian QSRs industry. organic pizzas are the new concepts that are appealing to the masses to these days. Pizza Hut has the first mover advantage in the pizza chains because of which it has developed a strong customer base which is one of its strengths. Local chains are constantly springing up. Pizza Hut has been successfully creating competitive advantages like a 36 . the delivery service of Pizza Hut is clearly a competitive advantage that it enjoys.
traditionally strong brand name for itself and the quality service that it provides. Local Vada Pav’s and Udipi Restaurants Local vada pav’s and udipi restaurants have long been here in India. These factors have been crucial in their survival. Local Vada Pav is available at 8rs whereas any burger of Mc’D is available from 25rs. low income group individuals prefer these retailers over Mc’D or any other MNC Source : as per each companies website 37 . Local vada pav dealers have traditionally been famous in India because their roadside presence everywhere and low prices. Hence. Despite the entries of various MNC’s entering India these restaurants are still going strong. There are thousands and thousands of these restaurants present in India. The main competitive advantage of these restaurants are affordability and availability near business districts and near home.
Number of outlets of each store 38 .
McDonalds 39 . To communicate product effectively to the customers they need to segment its target market and position the product properly. Targeting and Positioning ) To develop the marketing strategy. companies need to understand its target customers.STP (Segmentation.
SegmentationMcDonalds has segmented their products according to bases of Demographic.McDonalds has adopted itself according to the convenience and lifestyle of the Indian consumers. 40 . as India has a huge vegetarian population so McDonalds came up with a different and new product line which includes items like Mc Veggie burger and Mc Aloo tikki Burger. McDonalds has made its environment which is suitable for students of school to hang out with their friends and can get their lunch at McDonalds. They also made McDonalds as a place to relax and even for entertainment. For families it has made different outlets and meals which are suitable for takeaways and drive-thru. 2) Psychographic. Psychographic and Behavioural. 1) Demographic.Kids. Family and Students McDonalds offers different products like Happy Meal which includes a free toy for kids.
Now youngster and adults has become so use to fast foods that McDonalds has targeted them and tried to position McDonalds 41 . Families. but keep it affordable. In the start they made certain special efforts to not allow it to convert into a teenage and adults (20 to 24 years of age) hangout place. Cafe Goers.Primary.The people who seek place to relax or read or even business entertainments. Secondary as well as college students.3) Behavioural. a fun place to be for the children. the Great taste.Occasions such as birthday etc. Target MarketWorking Adults. Target Segment A Family with children Urban move Teenager customer on What is McDonald’s for me? A treat to children. quick service without affecting the work schedule Hangout with friends. Then they started positioning according to the kids as well by introducing new advertising of toys with their products such as “Happy Meal”.Who seeks convenience meals. PositioningPositioning is a process of creating an image in the mind of consumers by which consumers can understand the uniqueness about your product when compared to competitor’s product. Students.Which prefers to go out for meals on weekend and holidays. In India positioning of McDonalds has been directed as a Family restaurant.
KFC SegmentationGeographicKFC 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. Or we can say that they followed concept of undifferentiated marketing in which they offered same marketing mix to mass audiences. They also targeted adults because they can pay for quality and variety of products. This helped McDonalds to be most recognizable brand in India for people of all ages.as a place for all. 42 .
race and nationality. or personality characteristics is called psychographic segmentation. family size. employees).In north India Chicken is the main selling product. air-conditioning. while in the south the Veg. DemographicIn demographic segmentation. the market is divided into groups based on an age. lifestyle. religion. items sell more than the chicken. occupation. gender. KFC focuses on pure and fresh food in order to create a distinct and clear position in the minds 43 . Company resources and structural attractiveness of market segment. income. Target market depends upon size and growth rate of population. KFC divides market on the basis of psychographic variables like• • Social classes-Middle and upper Personality Target MarketAs the outlets of KFC are in posh area and prices are too high (overhead expenses-rent. PositioningIn KFC feedback is taken from the customer in order to know the customer demands and then improvements are made in products. KFC divides the market on demographic basis in this way: • • • • Age between 6 to 65 Including both genders According to family size According to income level PsychographicDividing a market into different groups based on social class. so KFC targets upper and middle classes.
of customers KFC has a strong brand name and they are leading the market in fried chicken. Pizza Hut Segmentation GeographicLocalize product. promotions and sales efforts to fit the needs of the individual areas and cities. For e. Target MarketThe target market of pizza hut is middle level and upper level class. PsychographicDividing the market into different groups based on social class. Mainly they are targeting the college graduates as they spend a lot on fast foods. advertising.g. Positioning- 44 . they offer their customers to choose price between 499 or 699. lifestyle or personality characteristics.
Pizza hut is positioning themselves on the basis of Quality and Frequency. Therefore. subway segmented the customer based on the trends or psychological. They are using the tagline as ‘Best pizzas under one roof’. Behavioural45 . SUBWAY SegmentationGeographicSubway segmented their market based on the test of different geographic location. they are positioning themselves as best service provider. As more number of people in India is vegetarians. by providing healthy and fresh food. they provide menu mostly with vegetable without beef. Also under the saying ‘Customer mania’. PsychographicSubway core customer between the age of 16 to 39 are found to be more health conscious. DemographicSubway concentrates majority of customers on the age group in between 18 to 39 years mostly the people are either studying or working.
Target Market Subway targets market is young adults between age of 16 & 39. This shows that they segments he customer based on the occasion under behavioural of its customer. The youngsters who like to have nutrition food rather than pizzas. healthy and fast food is required in everyday life. etc. Majority of population in India lies in between these age groups. PositioningProviding a healthy fast food chain for a healthier and hygienic food is a brand value strategy of Subway. It sends messages to its customer that they are positioned as a fresh and healthy food. catering of fresh. although people of all ages and background enjoy the delicious and healthy sandwiches. Subway also make special promotion during occasions like Christmas and new year by offering gift card. The listing of the healthy items includes the fresh and fast food items that reflect the menu. burgers and fries.Subway considers that with hectic and busy lifestyle. 46 . Subway identified its target market as “Demanding Young People Who Know Their Own Minds”. Dominos Pizza Segmentation Geographic • • Region – dominos outlets in different countries is a way of segmenting their market according to region and finding out potential markets. on the purchase of its food.
‘Khushiyon ki Home Delivery’. upper middle class. Dominos has made delivery services for those customers who like to have pizzas in their home with their families or friends. metros. After spending four years with the emotional proposition of Happiness Home delivered. Local Vada Pav and Jumbo King 47 . family income – lower middle class. Positioning India’s Pizza Delivery expert and market leader in the organized pizza home delivery segment announced the launch of their new brand positioning campaign “Yeh Hai Rishton Ka Time”. middle class. through its new brand positioning that focuses on relationships and bonding. Spending habits of college freshmen also indicates a high percentage of money being spent on non-essential items. They also target teenagers of school. 13 to 21 years21 to 35 years. class ii. small towns.• City – they also segment the cities as class i. Domino’s Pizza endeavours to deepen the engagement with consumers. 35 to 50 years. 50+ years. high class Targeting • • • • Dominos pizzas have target the families who like to go out for dinner once in a week. Demographic • • age – under 13years.
on the move.Segmentation They have segmented the market into Psychographic. Its for anyone who needs fast snack. hygiene and size. They also position themselves as the easily available fast food with low cost. Mostly to college going students who prefer easily available fast food also to working professionals who has less time and prefer to have easily available fast food. Lower and middle income group people in Mumbai (mainly students and working class) Target Market They mostly target people between age group of 18-30. Issues 48 . Demographic. PositioningThey have positioned themselves on the basis of quality. Their biggest target customer is the middle level social group.
however. From poor work conditions to appalling food quality. McDonald’s campaign turned negative attention back to itself.McDonald’s #McDStories In mid-January. the #McDStories campaign quickly took a whole different turn very quickly as users started using the hashtag to instead share horror experiences and shock tales. McDonalds launched a Twitter campaign using the hashtag #McDStories. There had been complaints as regards the nutrition. hygiene etc.McDonald’s had been accused of destruction of vast areas of the rainforest for the production of cattle to produce beef. McDonald’s asked users to post nostalgic stories about their experiences on Happy Meals. Social Networking Issues. Here are just a few examples of tweets on the #McDStories Hashtag: 49 . and cruelty to animals. promoting unhealthy food with a risk of cancer and heart disease. taking advantage of children with its advertising and marketing.
Nutrition and Health One of the most fundamental and enjoyable aspects of the day-to-day lives of people had been eating food of their choice and the circumstances in which it was eaten. usually cooked on site and then eaten communally . For most people this generally meant eating the healthiest possible food (bearing in mind constraints of time and poverty).either in a family or 50 .
Mass-produced. They also brought out a whole range of new campaigns and movements dedicated to encouraging healthy eating and healthy lifestyles. now were considered. Macro environmental factors affected McDonald’s. In the health debate. discussed. Bhel Puri. food industry was heavily criticized for creating products that are high in fat. undermining existing patterns of human interaction. Health consciousness was rising amongst people with the obesity crisis hitting the world. or with others while at work or in school. neighbors or in the community in general. India also had its own set of so called nutritious and non-nutritious food. But there were rapid changes as the pace and nature of society had shifted. nutritional issues would continue to be argued and deliberated upon. Many critics blamed McDonalds like businesses for public health concerns. But at the same time. Samosas and Potato Wada which were some of the very popular Indian snacks were 51 . This change in eating habits brought serious consequences to human relations and health. The concern was serious as it was children who were the most affected. diabetes and heart disease and a variety of other diet related problems. In recent decades. forced it to become defensive. it was worthwhile to note that the type of demand exhibited by the market initiated the processes within the companies. McDonald’s capitalized on this situation by promoting quick meals to be eaten outside the home. sugar and salt. whether among families. Nutrition and exercise issues which were important and needed to be reviewed earlier. These consequences sparked a debate about healthy food.home setting. friends. As long as the demand for fast food continued. An industrial or service infrastructure increasingly dominated the local neighborhoods and people's lives. and they had to resort to lip service to try and deflect public criticism. People in India appeared to prefer food for its taste. processed food gradually and increasingly replaced fresh and healthy foods in people's diets over the course of the twentieth century. contending that fast food menus and portion sizes contribute to obesity. and debated only after witnessing the frightening consequences.
When the legal system imposed bans and developed a regulatory framework. Awareness about health needed to be built up and somewhere the responsibility definitely lay with companies which were into the food business. Need for constant Innovation McDonalds find itself in a peculiar situation. In United States. McDonald’s picked new Trans fat free oil for cooking its famous French fries after years of testing. Also for kids it needs to keep up with the trends and get new toys to keep up the interest levels of kids. But just coming out with new products doesn’t solve the problem. Health concern was a global call and responding to this was the need of the hour. Food industry was required to innovate and work on introducing healthy eating options and making them available. McDonalds needs to innovate and bring out new products. the food industry was compelled to respond. A healthy lifestyle only would help overcome the health problems gripping the society. 52 . 2007.fats were bad for human health.fats and their use in food also had been a major controversial issue. They need to be organic and healthy. This would create a situation where the final choice would then be made by the consumers. It needs to constantly innovate its products and practices. In January 2007. a large level of population savored them for the spicy taste ignoring the hygiene and the value in terms of nutrition. In view of the health risks and dangers.weak in terms of nutrition. Trans. it was important that food service did not just confine to respond to the basic need of hunger. One cannot expect youth to have same burger and fries over and over againg. It had been established scientifically that artificial trans. However. McDonalds mainly targets youth and today’s get bored with a same thing very quickly. New York City was the first city to announce a ban on all restaurants from using artificial Trans fats with the deadline on July 1.
McDonalds already has some drive thru’s with the association of HPCL and BPCL. There are number of religious places where people visit in thousands and in some places in lakhs. Dominos. We are also planning 30 to 35 drive thru’s in tier 2 cities at the cost of 175 crores. Increasing Pure Veg Restaurants : In India nearly more than 80 million people are hindu. Jumbo King and local Vada Pav retailers. Subway etc as well Indian franchisee startups as Faasos. So there is huge potential to be tapped. IOC operates nearly 8000 petrol pumps. Mc’D near holy shrines or temples : India is a religious country. Recommendations / Solutions Increasing Drive Thru’s : Mcdonalds is looking to increase drive thru’s with the help of IOC. Indian market is growing at 34% CAGR and if McDonalds wants to grow it has to get back to competition. We are planning to double the current number of driver thru’s. In 2013.Decreasing Market Share McDonalds is facing cut throat competition from other franchisees as KFC. Targeting the festivals like Kumbh Mela : Gatherings like kumbh melas are goldmine if tapped. McDonalds is still the market leader but other competitors are eating away its share. McDonalds recently opened a Pure Veg restaurant near Golden Temple in Punjab. going for more number of veg restaurants can work if planned appropriately. Out of these 80 million people many of them are veg. 80 million people were expected to visit 53 . If McDonalds doesn’t do anything quickly it may find itself in a sticky spot very soon. Hence. This clearly shows that demand is there to be captured. We can initially setup some restaurants on temporary basis and if the idea works we can go forward.
Also. McDonalds is not into delivery in US and other markets. Some experiments have failed while some are hit. Indians traditionally love paneer but sadly till now paneer is limited to only wrap. oats in breakfast etc. Hardly anyone comes alone. sites like snapdeal and timesdeal. we can look forward to creating a healthy menu such as Chicken salad. McDonalds can launch some innovative schemes which can help improve sales and margins. One good thing we did was launching of McDelivery. We can introduce a burger having paneer. Delivery concept is wholly a new idea. Menu Innovations: McDonalds have indianised its menu for its India entry. McDonalds realized Indians taste for spice and launched piri piri fries and McSpicy burgers. if we move fast we can take advantage of First Mover Advantage. BEST buses. Hence. We can setup temporary kiosks at strategic positions and at the same time not compromising on the quality of food served. Indians love to eat with their families and friends. menu innovations need to be there in quick successions. Already companies are looking towards festivals like Kumbh Mela. But India is unique. with this move we hope to take a bit of market share of pizza chains like Dominos. Also. We realized that Indians love to eat with their family and not all the times they would like to come visit store. We can associate with theaters. Associations with other brands : McDonalds can associate with other brands to improve its sales. Even after so many years McDonalds have always been innovative in menu. Innovations : McDonalds need to be innovative and need to think on its feet. Indians love sale and 54 . Keeping this in mind McDonalds needs to improve its brand image as full family restaurants. 80 million is a huge figure even by India’s population.Kumbh Mela. But still menu innovations need to be continued as competition is catching up and people are getting bored really quickly.
A.4 16. As a CSR activities McDonalds can adopt a village or sponsor hospitals or arrange medical programs in the villages.812 per YOY Growth ( in %) 18.652 94.8 12. The cost of above expansion will be aroung 600 crore which can vary. yoy growth and some are being chosen because of high population base as well as tourist centers. We as McDonalds are looking to expand and double our stores in 2 years.1 : http://en. Involvement with community : McDonalds will look to be involve and connect with the society. Especially if we can do CSR activities in the villages from where we source our raw materials it will be very useful in building a brand image.wikipedia.6 18 N.193 121.1 25 17.480 74. We will look to expand in these states .796 101.4 14. Planned Expansion : Name of the state Andhra Pradesh Himachal Pradesh Gujrat Rajasthan Uttarakhand Sikkim Goa Tamil Nadu Maharashtra Delhi Source GDP capita 71.314 175.440 192.899 81400 47.org/wiki/List_of_Indian_states_by_GDP We have chosen above states to expand based on their GDP per capita. 55 .free things so if McDonalds can launch schemes like buy 2 get 1 it will automatically improve its sales.506 82.8 16. 14.
com/industry-andeconomy/marketing/article2741612.aspx http://www.reuters.com/2013/01/social-media-strategy-review-mcdonaldsindia/ http://www.thehindubusinessline.com/2013/01/mcdonalds-opens-its-franchise-inmysore.net/ http://www.mcdonaldsindia.com/Industry-Information/Retail/139.indiafranchiseblog.shine.forbes.indianexpress.html http://www.com/news/mcdonald-s-india-franchisee-to-merge-withparent-westlife/1042164 http://in.socialsamosa.com/article/2012/12/07/mcdonalds-india-franchiseeidINDEE8B609T20121207 56 .ece http://info.com/sites/kenrapoza/2012/07/22/mcdonalds-struggles-to-servein-india/ http://www.Bibliography http://www.
moneycontrol.http://articles.mcdonaldsindia.economictimes.co.in/marketing/marteking-mix-7-p%E2%80%99smcdonalds/ http://www.google.com/2012-1204/india/35594023_1_mcdonald-s-india-process-grade-potato-varieties-vikrambakshi http://businesscasestudies.timesofindia.com/pdf/news/4Ps-Businessand-Marketingnov10.com/viewer? a=v&q=cache:k39N5IwSQL4J:www.com/sites/abrambrown/2013/01/23/mcdonalds-stale-growthmeans-a-future-that-investors-wont-love/ http://www.forbes.co.com/2012-0904/news/33582020_1_restaurant-chain-vikram-bakshi-mcdonald-s-india http://articles.html 57 .indiatimes.uk/mcdonalds-restaurants/the-marketing-process/the4ps.indiatimes.snippapers.pdf+mcdonalds+india+4ps&hl=en&gl=in&pid=bl&srcid=ADGEESgZsNOkoW y40smgVOTMnPIgGsyvUxkheEfMF2JI-kdrxdFNsZUU7Cwx_iqEqSN4489fRk9BcSLyr7CYQtwXtzCWa1Gk5vnLjd8tFKCRW1V1Paf2QSGQ5_bkAKhDxwNNV6IlSY&sig=AHIEtbT_GFg0XAAzXHFDjbWvXp6L UI3E3g http://resources.com/news/features/in-searchthe-perfect-potato-mcdonaldsindia_510376.html#axzz2M5TBZ5Ru https://docs.
This action might not be possible to undo. Are you sure you want to continue?
We've moved you to where you read on your other device.
Get the full title to continue listening from where you left off, or restart the preview.