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mcdonalds marketing strategies Document Transcript 1. INTRODUCTION OF MARKETING STRATEGY 2.

Marketing strategy is very much important for developing any of thebusiness. Without it, the effort of the business to attract customer israndom and very inefficient. The main focus of your strategy must makesure that your product should fulfill the demands of the consumers and aswell as it maintains the long-term relationship with those consumers. Toachieve this, you will have to initiate flexible strategy that responds tochange in customer demand and perception. It may also give brand nameto your product which will help you to run your business in new marketssmooth and efficient manner. First of all the main purpose of yourmarketing strategy should be to identify the weather the target customer¶sare satisfied with your product and services of your business.Once you have created and implemented your strategy, try to identify thefeed from you customer and if any changes or improvement is requiredapply it for the maximum satisfaction of customersThis helps you to identify that, where your strategy needs to be improvedand how it can be developed, so that it can be implemented for effectiveaction. Before applying any strategy in the business proper planningprograms must be organized within the members of the organization. WHAT IS MARKETING?³Marketing is the activity, set of institutions, and processes for creating,communicating, delivering, and exchanging offerings that have value forcustomers, clients, partners, and society at large." Marketing 1|P a ge 2. From the above definition we are able to understand that a successfulmarketing deals with satisfaction of both the parties. The definitionbasically explains that there is a simple process i.e. is ³selling somethingto somebody´ however, the definition conveys that an exchange of goodsand services without any barter system and having common currencies,that exchange is called a sale. So while achieving the goals of themarketing by selling, it is not compulsory that both the parties shouldagreed upon the transaction. Satisfaction of both parties is a hided in theexchange relationship. Marketing must understand the ³product, ideasand services´ along

with the "Needs & Wants" of the consumers.Marketing must not only understand this equation but also establish thepolicy to maintain balance between both the sides, by implementing³marketing strategy´. MEANING OF MARKETING STRATEGYA Marketing strategy defines and describes the objectives or planningthrough which you are going to satisfy your consumer needs in theselected target market. It does not involve written work but, it includescommunication between different departments of the business enterprisefor example: sales department, managers, executives etc.In fact it is a set of strategies that implied by the organization in order toincrease the growth and development of the business. Normally strategydeals with the manner in which your organization plan to achieve theconsumer satisfaction and maximize the profit. DEFINITION OF MARKETING STRATEGY y ³Marketing Strategy is a set of specific ideas and actions that outline and guide decisions on the best or chosen way to create, distribute, promote, and price a product or service (manage the marketing mix variables).´ 2|P a ge 3. y ³A marketing strategy is a process that can allow an organization to concentrate its limited resources on the greatest opportunities to increase sales and achieve a sustainable competitive advantage.´Marketing strategy is a process that can allow an organization toconcentrate its limited resources on the greatest opportunities to increasesales and achieve a sustainable competitive advantage. A marketingstrategy should be centered on the key concept that customer satisfactionis the main goal.Business Advantagesy identifies needs and wants of consumersy determines demand for producty aids in design of products that fulfill consumers needsy outlines measures for generating the cash for daily operation, to repay debts and to turn a profity identifies competitors and analyzes your products or firms competitive advantagey identifies new product areasy identifies new and/or potential customersy allows for test to see if strategies are giving the desired resultsBusiness Disadvantagesy identifies weaknesses in your business skillsy leads to faulty marketing decisions based on improperly analyzed datay identifies weaknesses in your overall business plan 3|P a ge 4. ´Marketing strategies of McDonald¶s´ACTUAL FACTS ABOUT MCDONALDS COFFEE CASE 4|P a ge

MCDONALD¶S STARTS IN INDIAMcDonald¶s entered India in 1996. the distributor for milk shake machines expressed interest in theirbusiness and finalized the deal for franchising with both the brother¶s.The sweatpants she was wearing had absorbed the coffee and held itnext to her skin. Kroc proved himself as apioneer who revolutionized the American restaurant industry. Lie beck placed the cupbetween her knees and attempted to remove the plastic lid from the cup. In 1955 he became the founder of McDonald¶s and boughtout the McDonald brothers share for $2.000. Though the company hasroots in the US. as a fast food restaurant bytwo brothers¶ named Richard and Maurice McDonald in San Bernardino. the entire contents of the cup spilled into her lap. buttocks. worth more than $25 billion. Lie beck.5. ordered coffee that was served in a Styrofoam cup atthe drive through window of a local McDonalds. was in the passenger seat of her grandsons car when shewas severely burned by McDonalds coffee in February 1992.New Mexico. McDonald¶s is now one of the most valuablebrands globally. On February 1992 the headlines of news paper hits with a McDonaldscoffee case news. during which time she underwent skin grafting. but McDonalds refused.The first McDonald¶s restaurant wasopened on October 13th at Basant Lok in . A surgeon determined that Lie beck suffered fullThickness burns over 6% of her body. She was hospitalizedfor eight days. and genital and groin areas. The name of restaurant was McDonald¶s Hamburgers.Till today no one knows about their final ending of the case. Lie beckwas 79 at the time. McDonald¶s today has become an ACCEPTED CITIZENOF THE WORLD. TodayMcDonald¶s is the California world¶s largest fast food chain serving 47million customers daily. The case was about Stella Lie beck of Albuquerque.the grandson pulled his car forward and Stopped momentarily so that Liebeck could add cream and sugar to her Coffee.RaymondKroc. The partieseventually entered into a secret settlement which has never beenrevealed to the public. HISTORY OF MCDONALD¶SThe story of McDonald¶s was started in1940.perineum. Including her inner thighs. sought to settle her claimfor $20. 5|P a ge 6.As she removed the lid.who also underwent debridement treatments.7 million and changed the nameof the company to McDonald¶s corporation. by mid-1950s their restaurant revenue had reached $350000.California in US. Heestablished a franchising company called McDonald systemincorporation. After receiving the order.

the menuincludes chicken burgers. so that we make every customer in everyrestaurant smile. 7|P a ge 8.Vasant Vihar. the company isnow trying to expand in cities like Pune and Jaipur also. lifestyle.By developing a sophisticated suppliernetworked operation and distribution system. After opening their outlets in various metro cities. cleanliness. value systems. So in order to evade this problem the Indian 6|P a ge 7. but also protecting itslong term brand reputation. McDonald¶s inIndia is a 50-50 joint venture between Connaught Plaza Restaurants andHard Castle Restaurants. veg burgers. veg pizza¶s.PRODUCT CONSISTENCY.Globally McDonald¶s was famous for its hamburgers which are preparedfrom beef . the Indianconsumers avoid burgers made from beef and pork which is tabooaccording to their religions. The company follows all theframework of training and monitoring of its franchises to ensure that theyachieve good QUALITY SERVICE. happy meal forchildren¶s.CLEANLINESS AND VALUE FORTHE MONEY offered by the company to its customers. beverages and deserts. MCDONALD¶S FRANCHISE MODEL RAYMOND KROCVIKRAM BAKSHI AMIT JATIA MISSION STATEMENT"McDonalds vision is to be the worlds best quick service restaurantexperience. Theremaining 85% is operated by franchises. language and perception. Which are owned and managed by VikramBakshi and Amit Jitia respectively Connaught Plaza Restaurants operatesin North India whereas Hard Castle Restaurants operates in WesternIndia." MARKETING STRATEGIES OF MCDONALD¶SBUSINESS STRATEGYFRANCHISE MODLE ± As per franchise model of McDonald Only 15% ofthe total number of restaurants are owned by the Company. service. Being the best means providing outstanding quality. Today there are 79 outlets in north-east India and more than 53 outlets in south-west India.STRATEGY AS PER INDIAN MARKETRE±ENGINEERING THE MENUMcDonald¶s thinks according to thecustomer¶s tastes.but.ACT LIKE RETAILER THINK LIKE A BRANDMcDonald¶s focuses notonly on delivering sales for the immediate present. menus of McDonald¶s was Indianised and specifically design in suchmanner that it can boost its products to Indian consumers. the company has been ableto achieve consistent product taste and quality across the nations of theworld. and value.

To satisfy this customer¶s demand.and pork burgers. lamb and fishburgers to suite the Indian diet. But.In addition.THE VEGITERIAN CUSTOMER-India has a huge population ofvegetarians. kids are on the top most level in FMCGpurchase related to food products. As shown in the above diagram. The separation of vegetarian and nonvegetariansections is maintained throughout the various stages.³MCDONALD¶S MEIN HAI KUCH BAAT´ projects McDonald¶s as a placefor the entire family to enjoy. But. 9|P a ge 10. children are moreattracted towards toys and delicious meals including today¶s youth prefersuch places for their entertainment and the urban families selectMcDonald¶s on various occasion like birthday party. TARGETING AND POSITIONINGMcDonald¶s uses demographic segmentation strategy with age as theparameter. To target theteenagers and young youth.This strategy is targeting in making McDonald¶s a fun place where youcan enjoy both playing and eating. This also helps McDonald¶s to attractthe young urban families who wanted to spend some quality time. Indian preference. So to attract children¶s McDonalds hasHappy Meal in which they gift one toy on each happy meal. The main target segments are children. they have a tie-up with Walt Disney. If they take children into consideration. When McDonald¶s entered in India it wasmainly targeting the urban upper class people. So in order to satisfy demand as per 8|P a ge 9. it alsoprovides special facilities like µPLAYING PLACE¶ where children can playarcade games.For this. keeping in mind the price sensitivity of this target customer. At several outlets. example of such outlet is of a Vile Parle situated in Mumbai. whiletheir children can enjoy every movement of McDonald¶s. air hockey. McDonald¶s has priced several productsaggressively. today it .EXAMPLE OF VEG BURGERS: MCVEGGIE MCALOOTIKKISEGMENTATION. facilities like Wi-Fi are also provided to attract students to theoutlets. there are toysranging from hot wheels to various Walt Disney characters. Example ofthe latest range is the toys of the movie Madagascar. etc. McDonald¶s came up with chicken. youth and the youngurban family. the company came upwith a completely new menu of vegetarian items like McVeggie burgerand McAlooTikki. treat to their childrenetc. most Indians religion does not allowthem to consume beef or pork.

manufacture theproduct so that it enhance the customer experience?Product is the physical product or services offered by the company to itscustomers. The outlet atmosphere and mild 10 | P a g e 11. It removed pork. People 11 | P a g e 12.PLACE:The place mainly consists of distribution channels and outlets of thecompany. looks etc. how the company should design.hadpositioned itself as an affordable place to eat without compromising onthe quality of food. ³FEED YOUR INNERCHILD´.S. This commitment of quality of food and service in a clean. every company needs to come upwith an offers or such type of plan.McDonalds continuously innovates its products according to the changingpreferences and tastes of its customers.A nearly 50% of outlets are situated within thedistance of 3 minutes. service and hygiene. target segment andunderstanding the market demand. McDonalds includes certain aspects of its product such aspackaging. TOYS FOR CHILDREN WITH HAPPY MEALMCDONALD¶S MARKETING MIX (5P¶S) STRATEGYAfter analyzing the market.McDonalds has purposely kept its product depth and product widthlimited. 12 | P a g e 13. This consists of both tangible and non-tangible aspects of the product and services. that speed up the growth of thecompany. McDonalds had first studied the behavior of the Indian customerand provided a totally different menu as compared to its menu offered inInternational market. background music highlight the comfort that McDonald¶s promises inslogans like ³YOU DESERVE A BREAK TODAY´. beef and mutton burgers from themenu. Promotion 5. finding the key factor.Even the sauces and cheese used in India are 100% vegetarian. India is the only country where McDonalds serve vegetarian menu. desirability. Place 3. PRODUCT:Product includes that. Product 2. It is considered as very important because the product must beavailable to the customer at the right place.hygienic and relaxing atmosphere has ensured that McDonald¶smaintains a positive relationship with their customers. For which McDonalds uses 5p¶s of marketing mix which are asfollows: 1. In U. McDonalds brings best product of quality and of best features as per thepreference and demand of the target market. The recent example is theintroduction of the Chicken Maharaja Mac and latest introduction ofchicken style is Chicken Mcnuggets. at the right time and in theright quantity.There are certain degree of fun and . Price 4.

The diagram givesidea about the promotion strategy of McDonalds. sales promotion. It provides value position based on the needs of thecustomer.Children play games till the time there parents spend quality time inMcDonalds.happiness that McDonalds providesto its customers. combo meal. The priceneeds to take demand and supply equation into consideration byanalyzing the pricing demand as per Indian market.McDonalds corporate used advertising.baap ke zamane ke daam´. not the normal music butthe music which is preferred by young generation in order to attract them.There are also games for children the one example is air hockey. These five promotion tools are used by McDonalds tointegrate marketing communication program which allows McDonalds toaccess the communication . the consumers. Pricing is very much necessarybecause it is this part. along with music system through radio. This pricing strategy was founded toattract middle class and lower class people and the effect can clearly beseen in the consumer base that McDonalds has now. Some of the most famous marketing campaigns ofMcDonald¶s are:³You Deserve a break today. which decides revenue for the business unit. family meal. Itshould also take into consideration the possible reaction from itscompetitors regarding the pricing. McDonalds offers proper hygienic atmosphere.McDonald¶s came up with a very grasping punch line ³Aap ke zamanemein . happy price menu etc to increaseoverall sales of the product.McDonalds has certain value pricing and bundling strategies such ashappy meal. if any discount facility available or payment facility available. Application of abovementioned Communication Mix describes the cost that is feasible as per 15 | P a g e 16. 13 | P a g e 14. and Fun´³I¶m loving it´. good abidanceand better services. and direct marketing and became world¶s largest leadingBurger Empire. 14 | P a g e 15.³Food.Now McDonalds have also started offering internet facilities at theiroutlets. personal selling.To McDonald¶s´³Aap ke zamane mein .public relations.All the other three are the expenses incurred in the business.baap ke zamane ke daam´. so get up and get away. It includesprice list. Folks. PROMOTION:The promotional activities adopted by the McDonald helps tocommunicate efficiently with the target customers. ezPRICE:Pricing strategy is most important aspect of Marketing Mix.

In personal selling McDonalds employees working in different outlets arethe best example of personal interaction. etc. There are three main objectives of advertising forMcDonald¶s are to make people aware of an item.channels clearly. events and sponsorships.boosts sagging sales Stimulates quick response. The right message has to be communicated to the rightpeople through the right media. Personal selling is most effective tool for buildingbuyers preference.distribution of free discounts coupons etc that attracts attention of thecustomers. 17 | P a g e 18. They use print ads and the television programmes are also an importantmarketing medium for promotion. functions. The statue of Mascot McDonalds is always there forany occasions that are also one of the logo of McDonalds.. Very believable. SETTING THE PROMOTION MIX An Advertisement is targeted to attract the masses itreaches to large number of people at a time. McDonald¶s does its promotion throughtelevision. sales promotion activity consist of promoting thebusiness unit through organizing various contest. news features. consistently and easilytransfers messages and product to the target audiences. 16 | P a g e 17. programmes. In the McDonalds outlet there are such staff which areappointed for personal selling they are the one who perform the activitiesregarding selling up of goods to customers. convenience and actions. If the organization hada good Relationship with Buyers they are more attentive towards personalselling. the employees are directlyserving the customers so. Many forms: newsstories. as they assume it is more rightful. Short-lived. Personal interaction allowsknowing for feedback and adjustments if required. Highly credible. Noteffective at building long-term brand preferences. Also offers strong purchase incentives. . Reaches manyprospects missed by means of other forms of promotion.McDonalds organizes several sales promoting contest and programmesin different retail markets and outlets in which they distributes freediscounts coupons. feel positive about itand remember it.Due to distinct features of advertisement McDonalds also hold the handof Advertising. hoardings and bus shelters. dramatizes offers. Advertising is one of themost important tools for promotion which had various ways ofadvertisement in that advertisement through billboards and media areoften used by any of the business enterprise. and the face to face communication is easilypossible. Consumers mostly perceivegoods which are advertised goods.

Customized.The .Direct marketing is also one of the efficient tools for promotion. Interactive. Inthis way they can easily serve customers and the result will be the smilingfaces of the customers. so they can create abeneficial difference between themselves and the competitors. Front line managersThe punch line ³I¶m loving it´ is an attempt to show that the employees areloving their work at McDonalds and will love to serve the customers. The restaurant employees play a huge role in interacting withthe public. McDonald continuously does InternalMarketing because if the internal marketing is effective it will automaticallylead to in the success of external marketing. Often the most under used element in thepromotional mix. Middle level managers 4. Co-branding strategy is also one of the beneficial instrument for boostingthe business and providing different the same things in different manner. Relatively inexpensive (certainly not free as manypeople think--there are costs involved)Public Relations are also an important part of the McDonalds marketingstrategy. Well-suited to highly-targeted marketing efforts.In fact co-branding means having a tie ups with another firm and servingthe customer with both the products. Customers 2. Many forms: Telephone marketing. It helps in making profit for both thebusiness enterprise as well as to increase their sales and growth oforganization. direct mail.CO-BRANDING STRATEGY 19 | P a g e 20. TheMcDonalds uses tool in the home delivery services in which they directlyserve the order to their home. It understands the fact that a happy employee can serve welland result in a happy customer. etc.Dramatizescompany or product. Also they have a websites which are morein preference for direct marketing in that they usually mentioned all thenew offers along with the contact number of your nearby outlets. On a day-to-day basis the employees commit themselves tocustomers and the customers feelings toward the brand. McDonaldsfeels that before they communicate with their customers they need to beaware of what their competitors are communicating.Internal marketing includes hiring.. The level of importance has to be placed in thefollowing order (the more important people are at the top): 1. Four distinctive characteristics: Nonpublic. training and motivating employees. Front line employees 3. onlinemarketing.PEOPLE: 18 | P a g e 19. Immediate. McDonald¶s understands the importance of both its employees and itscustomers.

In McDonalds the coke is the best beverage in cold drinkswhich are served to the customers along with different menus of theMcDonalds for example happy meal. 21 | P a g e 22. As coke ispreferred by children¶s even their parents as well as the young youths. COCA-COLA AND MCDONALDS 20 | P a g e 21.Bianca.will provide McDonalds customers even morebeverage choices and meet customers changing taste preferences anddesire for more suitable. theMcDonalds premiums include a mix of new and classic Disneycharacters.unfortunately the Walt Disney had end the relationship with .And of course this co-branding strategy has encouraged both thebusiness in achieving the successful returns of customer¶s satisfaction. convenient beverage options. There are different examples of cobranding strategy ofMcDonalds which are as follows.S.McDonalds will introduce a collection of 100 exclusive Happy Meal toysas they are inspired by Disneys admired collection of dramatic. charactersname and the Walt Disney World "100 Years of Magic" logo. which includes the characters debut date.On April 27. Dumbo.COCA-COLACoke is one soft drink brand that had tie up with McDonalds since pastmany years. Jesse and Hercules.and Mary Poppins to the newer innovations. including: Ariel.two different brands enter into co-brand through certain contracts oragreement and as per the agreement they bifurcates their earnings fromtheir brands.The McDonalds Happy Meal promotion featuring the Walt Disney World"100 Years of Magic" celebration is a historical collection of Disneyfavorites. This effort -. In fact this co-brand of McDonalds is initiated to increase thevolume of sales of the both the business enterprise. Tarzan. WALT DISNEYA Parade of Disney Happy Meal Toys. One toy is included with each Happy Meal and can be purchased atparticipating McDonalds restaurants. from classic characters like Mickey Mouse. Aladdin. while supplies last.part of alarger beverage strategy -. allowing kids and parents of all ages to recall their favoriteDisney memories.Each Happy Meal premium is fully decorated and is featured on amemorial base. 2009 ± The Coca-Cola Company had announced arefreshed line up of fountain and bottle beverages that will be added toMcDonalds U. Pocahontas. happy price menu etc. Representing more than 40 Disney films. beginning this year. Cinderella.But. video andtelevision characters.Therefore by keeping in mind the consumer wants they came up withCoca-cola. restaurants.

WALT DISNEY AND MCDONALDSBARBIE TOYSMcDonalds Barbie Toys have been included with Happy Mealsrepeatedly since the Happy Meal has been in existence. It is tastyand rich also it is provides some quantity of protein and vitamins as it ismade from eggs and milk. Barbie has been one of the most popular toys in aMcDonald¶s Happy Meal. to just name a few. BARBIE AND MCDONALDSCADBURYMcDonald¶s have included Cadbury in the beverages prepared withCadbury and creamy milk shake mostly loved by children. In 1991McDonalds found another way to distribute the Hot Wheels in theirHappy Meals for the first time.including Bicycling¶ Barbie. Camp Barbie. in their Happy Meals. Jewel and Glitter Shani. you willfind them for sale on eBay. 22 | P a g e 23. andCamp Teresa.McDonalds Barbie Toys comes in eight collectible characters in 1994. The first models of carsdistributed for McDonalds started in 1983.Barbie Happy Meal Toys have taken the form of a variety of Barbie dollfavorites. Therefore. since 1961 with smallrelated plastic toys.Some of these were Hot Wheels by Collector Number and were alsoplaced in a factory plastic baggie for the first time. Since then. CADBURY AND MCDONALDS 23 | P a g e 24.McDonaldsdue to some genuine reasons. it is considered as one of the most preferringbeverages in the menus of McDonalds. Over the lastthirty years. the Barbieand Friends dolls have been collectible Happy Meals toys in 1996. HOT WHEELSThe History of McDonalds and Hot Wheels die-cast cars: McDonalds hasattempted to develop promotions for children. A cold crème eggs with the vanilla ice cream.2005 and 2007.mix in a sauce that looks like the yellow yolk. Since then. Thus Walt Disney is considered as X-co-brand of McDonalds.The tasteful McFlurry have also worked in anticipating the taste of thecustomer. and add in deliciouschocolate bits. England hascombined two favorite things that are Cadbury and crème eggs. 2004. someannual promotions related the models . If you missed any of the McDonaldsBarbie toys that you may need to buy for your collection of dolls.Now McDonalds is offering a Cadbury Crème Egg McFlurry. Each Barbie miniature was 4 and ½ inches tall. These toys have become a highly sought after segment forcollectors of both Barbie¶s and McDonalds toys. using the Hot Wheels modelsof the normal line and followed all the way through 1990.

etc.ADVERTISING STRATEGYThere have been many McDonalds advertising strategy and slogans overthe years. usually reflectthe season and time period. Newsletters. Remind.The reason behind starting their outlets on highways is to serve thosecustomers who perform their day to day activities through highways. Persuade and 3. hold Interest. goods. Television. McDonald¶s already has14 outlets on national highways and they are planning to open 50% oftheir stores in the coming year on the highways. These goals are to: 1. theirwill hardly some people who go for a breakfast. and then obtain Action.arouse Desire." Its TVads. The major media for advertising are as follows: Newspapers. rather than just product. and Telephone. 25 | P a g e 26. The purpose of the image hasalways been "portraying warmth and a real slice of everyday life.In order to achieve that.). Matchbox.The traditional conceptual model for creating any advertising or marketingcommunications message is the AIDA Model: get Attention. blimps. Brochures. McDonald¶s is one of the most widespread fast foodadvertisers. Inform 2. they have never in their advertisinghistory used negative or comparison ads pertaining to any of theircompetitors. So. Internet. 26 | P a g e 27. Finally. Outdoor (billboards. Magazines.Direct mail. HOT WHEELS AND MCDONALDS 24 | P a g e 25.of cars had been made. In addition to .Advertising is any paid form of non-person presentation andpromotion of ideas. They hadenclosed models like. showing various people engaging in popular activities. Tonka andBigfoot toys. they tie up with oil marketing companies likeHindustan petroleum and Bharat petroleum to open on revenue-sharingmodel. the ads have always focused only on McDonalds alone. Stompers 4X4. McDonalds Canadas corporate website says that thebusiness campaigns have always focused on the "overall McDonaldsexperience".People mostly prefer food stores on highways for dinner purpose. Hot Wheels.McDonalds has for decades maintained an extensive advertisingcampaign. MCDONALD¶S TIE UP WITH HINDUSTAN AND BHARATPETROLEUM PERTROL PUMPSThe strategy behind opening their outlets near petrol pumps is that theycan serve their products even on the highways.Yellow pages. There arethree goals of advertising. idea of McDonalds tostart on highways is that they can offer even dinner as well as theirexisting fast food items. Radio. ADVERTISINGAdvertising . or services by an identified sponsor.

the company makes significant use of billboards and signage. as well as a few other slogans for select countries andregions because slogans is also considered as important factor inadvertising strategy. concurrent with 1988 slogan)Food. radio.the usual media television. 27 | P a g e 28.Today.sponsors sporting events ranging from Little League to the OlympicGames. With itsinternational expansion efforts. BRANDING AND BRAND LOYALTYWhen you see the golden arches. concurrent with 1971 slogan)We do it all for you (also known as you. McDonald¶s has become one of the mostrecognized brands world-wide. what comesto your mind? Finally. Even young children know that when you seethe golden arches that you are close to a McDonald¶s. youre the one) (19751979)Nobody can do it like McDonalds can (1979-1980) 28 | P a g e 29. Television has always played a central role in the companys advertisingstrategy. McDonalds has used 23 different slogans in United Statesadvertising. folks and fun (1990-1991)McDonalds Today (1991-1992)What you want is what you get (1992-1995)Do you believe in magic? (1993-1997. andnewspaper. what is the first thing that comes toyour mind? Or what about when you see Ronald the clown. special sauce. concurrent with 1980 slogans)McDonalds and you (1983-1984)Its a good time for the great taste of McDonalds (1984-1988)Its Mac Tonight (1985. Happy Meal advertising)Have you had your break today? (1995-1997)My McDonalds (1997)Did somebody say McDonalds? (1997-2000)We love to see you smile (2000-2003)Put A Smile On (2000-2003)Smile (2002-2003)Im loving it (2003-present India) 29 | P a g e 30. A couple of .SLOGANSUSLet¶s eat out! (1960-1965)Look for the Golden Arches! (1965-1967)The closest thing to home (1966-1969)McDonalds is your kind of place (19671971)You deserve a break today (1971-1975)Enjoy the best food at McDonalds (1973.One of things that McDonald¶s has proved is that they are good atbuilding its brand loyalty. Mac Tonight advertising)McDonalds is your place to be (1986)Good time. You deserve a break today (1980-1983)Nobody makes your day like McDonalds can (19801983)We cook it all for you at McDonalds (1982. great taste (1988-1990)Theres nothing quite like a McDonalds (1988-1990)You Deserve A Break Today (1989-1990. what has 2 all. lettuce salad on asesames bun? Hmmm« Sounds a lot like McDonald¶s knows how tocapture your attention.

They have send out FSI¶s (free standing inserts) as designed at the endof this report to ensure that their loyal customers will be motivated enoughto try the new campaign even though they have always loved and usedMcDonalds. in the operation of their fast food restaurant chain. Users and non-users alike will use the Club McDonaldsto their advantage. 1.The companys service management strategy is described within thecontext of the service model.Maximizing sales and profits at existing restaurants will beaccomplished through better operations.POSITIONING STRATEGYMcDonald¶s positions itself as the leader in quick service restaurants. The online points-tracker and profile will add to the innovation factor. and humanresources are . 2. 3. Maximizing sales and profits at existing restaurants.This research describes the service management strategy employed byMcDonalds Corp. Noneed of paperwork when figuring out your point totals and prize eligibility. isservices offered to them. Improving international profitability. thephilosophy culture image of the company.If the services of any enterprise is not suitable to customer than it achievethe aim that has been proposed by them.This is easy to use aspect of the promotion is appealing to those whowere born with computers.SERVICE MANAGEMENT STRATEGY 31 | P a g e 32.Club McDonalds is targeted at younger people who are familiar with creditcards and some of the rewards cards that are part of them. market segment. If we take any fast food restaurants the customer attracts firstly throughbrand and secondly with the most important thing to consider i. effective marketing and lowerdevelopment and operating costs.These FSI¶s will also act as a way to get customers who may have neverbeen to the store. productdevelopment and refinement. Adding restaurants.e.WORLDWIDE GROWTH STRATEGYMcDonalds growth strategy is based on three elements. service systems. 30 | P a g e 31. Inorder to maintain their standard.the things that has helped tobuild McDonald¶s brand is their constantly changing menu and brandpackaging that meets the needs of their consumers. In this model. much in the same way that their ³I¶m Loving It´ campaigndoes. They expect that their younger target will seek outmemberships in Club McDonald¶s. they have started marketing to a youngerset of persons.Improved international profitability will be realized as economies of scaleare achieved in individual markets and as the company benefits from theglobal infrastructure. innovation.

All 5-star crew members receive a Basic Certificate in Food Hygiene. Therefore. part-time within ten months. the food tastes . 3.BUSINESS MANAGEMENT PROGRAMME1. 32 | P a g e 33.validated by the Institution of Environmental Health Offices.2.McDonalds being an internationally famous brand brings with it certainexpectations for the customers.TARGET SEGMENTS VISITS MCDONALDS TOA parent with two Visits McDonald¶s to give the children a treat. The service of the company is identifiedthrough following tools:TRAINING POLICYIt is the goal of McDonalds to develop the highest level of skillamong all employees.McDonald¶s Head of Training is responsible for implementing anddirecting the training programme throughout the company. communicationand leadership. A management programme for those over 21 aiming for a directrouteinto restaurant management following an intensive and structured trainingcourse. a common training programmehas been established to develop staff and to meet the trainingneeds of the company. training continues through theAdvanced Operations Course covering staff development. communication and leadership. Each crew member receives on-the-job training in every area of therestaurant. All managers follow the Management Development Programme. CUSTOMER PERCEPTION AND CUSTOMER EXPECTATIONCustomer perception is a key factor affecting a product¶s success. Full-time staff is fully trained on all stations in the restaurant within fivemonths.CREW MEMBERS1.This is followed by a series of 12 training courses designed to back upwhat is learnt in the restaurant and develop management.children¶s Want to visit McDonald¶s as it is a fun place to eat.A business customer Visits McDonald¶s during the day as service is quick.2. OperationsSupervisors and Restaurant Management participate in the programmeand are responsible for individual restaurantresults.stress management.When promoted to Restaurant Manager. Thefirst three months cover the three fundamental areas of the business: y Food preparation y Cooking y Serving customers in clean and hygienic surroundings. motivation.children. Manypotentially changed products have failed simply because of their inabilityto build a healthy perception about themselves in the customers¶ minds. 33 |Page 34.considered.

The customer¶s expect the brand toenhance their self-image. hygiene and food safety.STAFFMcDonalds encourages staff to understand the principles of healthyeating.PRODUCTSMcDonalds continually reviews how its products relate to dietaryrecommendations. at the same time it ensures maintenance of quality. McDonald¶s contributes to thedevelopment of wider healthy eating policies by working with governmentdepartments and organizations dedicated to healthy eating.great and can be eaten in the car without affecting a busy work schedule. The Ansoff Product-Market Growth Matrix is a marketing tool created byIgor Ansoff and first published in his article "Strategies for Diversification"in the Harvard Business Review (1957).taste and value. Customers expect it to be an ambient. Specials training programmes are held for attainment of thisobjectives. 34 | P a g e 35.This matrix helps . McDonalds committed to reduce the amount of additives. provide McDonald¶s a great scope forimprovement. new markets ±there are four possible product/market combinations. However. 35 | P a g e 36. Customer responses obtained at the Vile and health.McDonalds continues to seek quality new products which are inline with dietary recommendations but. nutrition.MCDONALD¶S HEALTHY EATING POLICYMcDonalds is committed to providing high quality. It supports the recommendations of the 1991 Committee On MedicalAspects of Food Policy (COMA) report and the targets laid down in theGovernments White Paper¶ The Health of the Nation by ensuringproducts conform with the guidelines.CUSTOMERSMcDonalds helps customers to balance their diet by providingdetailed Nutritious information on all its products.especially preservatives and colorants in the products. hygienic and a little sophisticatedbrand that respects their values. The matrix allows marketers toconsider ways to grow the business via new products. which satisfy customersexpectations. safe andhealthy food. It recognizes the relationship between a balanced diet.Teenager Hangout with friends. but keep it affordable.Mumbai outlet confirmed the fact that they connect strongly with thebrand.PARTNERSMcDonalds works closely with franchises. fulfilling some of the customer expectations like abroader product variety.ANSOFF PRODUCT MARKET GROWTH MATRIX 36 | P a g e 37. suppliers and distributors tomeet their commitments to quality.

a company enters/penetrates a market with current products.Along with the rest of the world. Market development strategy 3. new segments. Market penetration occurs when 37 | P a g e 38. many thought that this is was wrongmove for McDonalds. Hong Kong Chinese soonaccepted that the food McDonalds serve are ordinary.companies decide what course of action should betaken given current performance. The matrix consists of four strategies: 1. thus they are forordinary people like them. Market penetration strategy 2. competitor customers.MARKET DEVELPOMENT STARTEGYA market development strategy targets non-buying customers in currentlytargeted segments. believes that the introduction of McDonalds to the HongKong society changed the direction of the Hong Kong cultural framework. view breads full meal whileHong Kong Chinese view them as snacks. McDonaldsslowly became the part of the Hong Kong landscape and way of life ratherthan just being an outpost of American culture. Forserving synonymously to the existing customers they . Product development strategy 4. to focus on market segments.Other ways include attracting non-users of your product or convincingcurrent clients to use more of your product/service. nonbuying in current segments. DiversificationMARKET PENETRATION STARTEGYMarket penetration is one of the four growth strategies of the Product-Market Growth Matrix defined by Ansoff. require the introduction of new or modified products? Is the customer andchannel well enough researched and understood?The marketing manager uses these four groups to give more focus to themarket segment decision: existing customers. McDonalds is currentlyfollowing above mentioned strategy. As time went by.the main reasons lays on the fact that Americans and Hong KongChinese at that time have very different perception about food. It also targets new customers in new segments. McDonaldsis one most popular brand in fast food in entire world. being an American food chain. The bestway to achieve this is by gaining competitors customers. Hong Kong was also McDonalized. the firstMcDonalds opened at Hong Kong.Future more. Although. In 1975.A marketing manager has to think about the following questions beforeimplementing a market development strategy: Is it profitable? Will it 38 | P a g e 39. Various reasons were laid for this claim. Market penetrationoccurs when the product and market already exists in market.McDonalds.

Reactions and reviews ofguests following their stay there were mixed. Hence. Diversification can occur either at thebusiness unit or at the corporate level. There are two parallel paths involved in the NPDprocess: one involves the idea generation. Also. product design.g.are coming up withdifferent menus as per change in taste and preference of their customere. at Zurich and Lully.McDonalds made its foray into the hospitality industry in 2001. McDonald¶s are always enhancing their existing product along with it. modern interior design. by keeping in mind their rivals they are introducing products tocompete them e. when a firm creates new products. Frequently. and detailengineering. openingtwo hotels in Switzerland. The "Golden Arch Hotels"were positioned as four-star facilities with the latest inroom technologyand very original.IMPORTANCE OF PLC IN MCDONALD¶S 40 | P a g e . beverages including milk shakes and cold coffeesetc. to answer the KFC they came up with chickenmcnuggets.g.At the corporate level. theyalso try to introduce new and new products so that they can easily survivein market. The Golden Arch in Zurich isMcDonalds first hotel. At the business unit level.McDonalds is always within the fast-food industry. They are adopting pricing policies for non-buying customerand as well as new segments. new product development canbe a crucial business development strategy for firms to stay competitive. 39 | P a g e 40. new product development (NPD) is the termused to describe the complete process of bringing a new product orservice to market. that the hotels four-star rating didnt seem tocorrespond with McDonalds image. Itseeks to increase profitability through greater sales volume obtained fromnew products and new markets. the other involves market research and marketing analysis. it is generally and it¶s also very interesting enteringa promising business outside of the scope of the existing business unit.PRODUCT DEVELOPMENT STRATEGYIn business and engineering. but frequently marketsnew burgers.Most seemed to agree. it ismost likely to expand into a new segment of an industry in which thebusiness is already in.: happy price menu.Companies typically see new product development as the first stage ingenerating and commercializing new products within the overall strategicprocess of product life cycle management used to maintain or grow theirmarket share.DIVERSIFICATIONDiversification is a form of growth marketing strategy for a company. it can gainnew customers for these products.

Production was concentrated in hugeplants devoted exclusively to McDonald¶s. Thus suppliertechnological expertise had given McDonald¶s a product which was not amere marketing innovation but a technical one.This is used to delay the decline of a well established product which hasthe potential of generating further revenue. The requirements of customers change over time and thus the productoffering has to be changed accordingly. lower cost production and greater desire to innovate. and Chicken Nuggets etc. a new variant wasintroduced namely Shake Shake Fries. Thus the secret lies in getting profits withdifferent products in the different stages of the PLC.improved products. McDonald¶s also started withtiny suppliers and grew with them displaying great loyalty. MCDONALIZING THE SUPPLIERSMcDonald¶s has changed the nature of not only the food service industrybut also the food processing industry as well.Nowhere is the supplier loyalty more evident than in development of new. Some of McDonald¶s classic food items like Filet-o-Fish. They achievedamazing consistency by giving more attention than anyone else to fieldservice and training at store level. Thus continuous innovation is required. The French Fries have been an important part of the McDonalds menuworldwide.A perfect example of revitalizing a product in decline phase 41 | P a g e 42.It pioneered with innovative and sophisticated food distribution andpackaging systems when the traditional food processors were unwilling orunable to supply food items that McDonald¶s demanded. French Fries.41. it took KFC more than three years before infinally introduced its own version of chicken nuggets. In an attempt to revitalize it. Interestingly. McDonald¶s . McDonald¶s realized thatthe battle between fast food chains would increasingly be one ofefficiency of supply. 42 | P a g e 43.To counter these changes McDonalds has continuously introduced newproducts and has phased out the old ones which were at the declinestage of their PLC. But now it was in the stage of decline and was actually notgenerating proper return. The introduction is timed such that the new productdoes not cannibalize (which eats same of it) the product already in thematurity or growth stage. This is being served with chatpataspice mix which has resulted in increase in the sales of French Fries andhas elevated it from to the decline stage. are results of supplierinnovation. What is the trend today may beout of market within few weeks.

McDonald¶s has Wi-Fienabled the outlet to cater to the student community. convenient service is no longerenough to distinguish the firm. McDonald¶s Corporation competes in a challenging market segment byproviding needsatisfying products to customers.This brings us to service and experience based competition whichMcDonald¶s can use for competitive advantage against Jumbo King. satisfying experience forconsumers.ineffective competitors often fail without proper strategies. Pizza Hut²thefirm encounters new challenges.It is for this overall ³Food. 44 | P a g e 45. In this segment. Speed and 3. At this time.To sustain its viability. McDonald¶ssuppliers became the focal point of new product development.including: 1.Perhaps in the new environment. Dominos.Through . and nutritious foods. Jumbo King competes using a back-to-basics approach of quickly serving up burgers for timepressedconsumers. Nutritiontheir strongest priority is ³making customers happy´. a new critical success factormay be emerging: the need to create a rich. the KFC has become potent competitor inthe quick service field.COMPETITOR¶S ANALYSISMcDonald¶s has been a leading fast-foods outlet in Vile Parle. The companyrecently made strong changes to its process by introducing the ³Made forYou´ system. Keeping in mind the demographics of the area. But theoutlet understudy has other competitors eating away into its marketshare. For the first time.attempted tosqueeze labour out of the stores by moving more preparation back intothe processing plant. Thisconverted the fast-food industry¶s most fragmented distributed systeminto more efficient one which helped McDonald¶s reduce its inventory andmanage costs effectively. creating the opportunity to develop unique productsbased on suppliers¶ processing skills.OPERATIONS COMPETITIVE STRATEGY 43 | P a g e 44. affordable. On the higher end. In addition to its traditional rivals²KFC. McDonald¶s competes on several bases. the McDonald¶s corporation employs an effectivecompetitive strategy to make it stand out against competitors such asother fast food restaurants. Fun & Folks´ experience that customers pay apremium over the other competitors. taking away customers from McDonald¶s. fast. Cost 2.MCDONALD¶S COMPETITOR¶S:COMPETITION BASES:SPEEDMcDonald¶s competes on several bases mainly to ³make their customershappy´ by providing speedy.

The organizationunderstands that health trend is an increasingly popular trend therefore. measure the performance of speed. ³Go-Active´ meals have been offered within the lastfew years. bottled water. standardizedtraining processes for its employees and new drive-thru layouts to reduceservice times. McDonald¶s vision aims to ³provide fast. McDonald¶s also competes by offeringprices at a low cost.NUTRITIONMcDonald¶s third main competitive base is nutrition. friendly and accurateservice´. McDonald¶s began offering a 46 | P a g e 47. both for their lunchmenu and breakfast menu.Some individual franchise owners choose to offer daily specials of specialmenu items. this goal is built into their vision statement when they claimthat ³We will be the most efficient provider so that we can be the bestvalue to the most people´. the organizationdiscovered that its customers desire speed as one of the restaurants¶ toppriorities. consisting of many individual items costing only $1.39 hamburger Wednesdays. such as ³$0.extensive market research and survey. McDonald¶s realizes that specific targets are necessary to 45 |Page 46. and continuously takes relevantmeasurements to compare actual performance with desired targets. These meals include a salad. McDonald¶srestaurants offer from seven to twelve value meals.First tested in southern California.´ or other similarspecials.the organization has recently focused extraordinary efforts to promotetheir new nutritious choices. One strategy that thecompany has employed for many years is the value meal. the company utilizes proven. Although not specifically built into theorganization¶s vision. value menu. the value menu has proved to be verysuccessful and has been since incorporated to the individual stores.More recently. Along with speed.Therefore.In the United States. Toachieve efficient service times. andbeverage at a discount when purchased together.Once again. French fries. and a ³step-o-meter´ to help customers keep track of how many steps .COSTTo offer high quality products at low cost requires efficient processesthroughout the entire McDonald¶s organization.The value meal allows customers to buy a sandwich. Big Mac Mondays are a popular regional promotion.00 each. McDonald¶s has already introduced many options toachieve this goal. McDonald¶s incorporates several ways ofapproaching to provide great value to its customers.

as an alternative toFrench fries. the organizationworked with external nutritionists to develop an ³Employee Guidebook´which contains tips and nutrition information for healthy lifestyles. and other professionals to ensure that McDonald¶stakes appropriate steps in helping its customers achieve optimal health.environmentalists. 47 | P a g e 48. expired items. Under this had to accurately predict how much food had to be put onhold.they take a day. In Europe. and too much food would cause waste of 48 | P a g e 49. butit will strive to continue the trend toward nutrition. In the ³Made for You´ system. this would create the problem of increasewaiting times for customers. modern technologygreatly assists McDonald¶s . Under this new system. and other actions. McDonald¶s spent $181 million to introduce their ³Made for You´system. containing apples and grapes. including ketchup. McDonald¶s dramatically changed their strategy in order tostay competitive with other fast food organizations. The United Kingdomsaw fresh fruit the items in the online bag. down individual condiments. pickles etc. but it isalso considerate of its employees¶ health.McDonald¶s has assembled their Global Advisory Council on BalancedLifestyles. This council consists of exercise & obesity specialists. Under their ³old system.´ the companywould make several sandwiches at once. McDonald¶s plans toadd additional healthy menu options (fruits and vegetables) increasenutrition awareness among McDonald¶s employees. The currentMcDonald¶s website lets a user select any combination of menu items.CHANGE IN STRATEGYMade for YouMcDonald¶s organization recently underwent drastic strategy changes toserve better to their customers. The company is also utilizing technology to their advantage. and conduct a nutritional analysis ontheir selections. and hold the sandwiches in awarming bin until purchased by a customer. Accurate prediction had to be used because if there were notenough food placed on hold. Not only does McDonald¶s care about its customers.Not only has the company introduced many steps to ensure nutrition. conceive new waysto deliver nutrition information to its customers. The user can break down the analysis even further thana menu item. standard food items are not held in a binuntil they are sold.Other countries have seen similar healthy options.In 1999.

Previously. but it would only last oneweek.´where they offered a new sandwich for one week. Last year.Unfortunately. McDonald¶s has flirtedwith menu changes as well. it is presented to the food loading area. the introduction of the ³Made for You´ system did not comeeasily. they offered a ³new taste menu. When a customer places anorder. The system works the same for frontcounter orders as well as drive-thru orders. while customizedorders list the sandwich name and the desired condiments.More recent changes to the menu have proved effective. McDonald¶s watched its customer satisfaction drop for the threeconsecutive years beginning in 1999.Standard items simply list the name of the sandwich. and promotions. andassemble the sandwich accordingly. McDonald¶s plan is to achieve this goal by focusing on itspeople. Once thesandwich is assembled. Specific goals of therevitalization plan are to: y Attract new customers y Encourage existing customers to visit more often y Build brand loyalty y Create enduring profitable growthThe main goal is to increase sales by creating an exceptional customerexperience.Revitalization PlanIn order to cope with the first ever quarterly loss that resulted frominefficient use of the Made-for-you-system McDonald¶s has devised a newplan to increase profits.MenuAlong with changes in their process strategies.Some customers would fall in love with an item. but the new plan places emphasis onincreasing sales at existing restaurants. products. Insteadof reverting back to the old system. the corporation emphasized adding 49 | Page 50. they realized that although the new systemprovided fresher food. and they would be frustrated that they couldn¶t purchase their newbeloved favorite sandwich.operations. the sandwich items are immediately displayed on a computermonitor in the kitchen and a tone sounds to alert the kitchen staff.However. desserts. prices. to enable more cash to shareholdersthrough dividends and share repurchases. more restaurants to increase sales. it was not as quick as the previous system. places. The purpose was tooffer customers a variety of options to satisfy peoples¶ desire for variety.Upon a new order. the new taste menu proved to be ineffective. McDonald¶s continues to fine tune³Made for You´ and add new options to help the system work faster.The new plan will reduce spending. After further research. McDonald¶realized . where adifferent staff person retrieves the sandwich and completes the order byadding French fries. an employee in the kitchen will toast the bun. etc.

Vegetarian MenuCORPORATE SOCIAL RESPONSIBILITY³At McDonald¶s. as well asthe entire perimeter outside the restaurant. They reach this goal through a variety of efforts. McDonald¶s organizationalso thinks ahead for long term improvement. items and provides information to help its customers as well asemployees make informed healthy choices. their ambient goal iscustomer satisfactions.Along with internal improvement to the organization. We work hard toprovide every customer with a choice of meals and an experience thatexceeds their expectations. the stock area.One example is the manager on duty task of completing a ³travel path´every thirty minutes of his shift. management continuously checks everyaspect of the restaurant throughout the day.Through completing travel paths.´The preceding statement is the quote which introduces McDonald¶sWorldwide Corporate Social Responsibility Report (2004). Although thecompany strives to compete on several bases. the walk-in refrigerators and freezers. The corporation changes³Food Safety´ book used by the managers several times a year. On a larger scale. andtheCorporation has offered items accordingly.McDonald¶s visionary goal is to continually improve their organization. area where customers eat. McDonald¶s conducts foodsafety tests multiple times throughout the day. As mentioned above in³Competition Bases. the managerpersonally checks every aspect of the restaurant.´ McDonald¶s now offers a wider variety of nutritious 50 | P a g e 51. E.that many of today¶s customers seek healthy food options. and which aspects could be improved.In summary. making customers happy is what our business is allabout. the organizationoffers a free sandwich in return for a completed survey. During a travel path. And we know it takes a lot to make that happen.g. To entice customers to submit feedback. McDonald surveys its customers twotimes per year. McDonald¶s alsocollects external information from its customers to discover which aspectsthe company performs well. the grill area behind thecounter. the restrooms. in effortsto think toward the future for the most appropriate variables to measure. . including: the lobby 51 | P a g e 52.To ensure that they serve 100% safe food. Themanager is supposed to talk to at least one customer during each travelpath and the manager can immediately react to this direct face-to-facecommunication.In addition to short term continual improvement.

it available at the Vile Parle outlet. y Rolling out McBreakfast across all outlets ± In India. In Mumbai.Presentation skills also matters ± and no one can really beat MCDonald¶s for that. they have these different offers from time to time. the company has recently launched its entry into the breakfast food category. The Road Ahead y Entry to Tier 2 and Tier 3 cities ± The main target customer for McDonald¶s is the new urban Indian family. junk food hasbecome more popular between the young youth as McDonald¶s launchedits branch in most of the major cities of INIDA.Non-Veg lovers can have a feast in KFC. the VEG lovers are sidelinedand are not taken of that much care. andnutrition. they really need to maintain their quality standards well if theywant to rise up the ladder and compete with McDonald¶s. and they also ensure customer satisfaction through continualimprovement of their operations. theyhave special offers for 12 months of the year for kiddies. This is now launched on a pilot basis on select stores.McDonald¶s strives to reach its goal of ³making customershappy´ through their normal competitive bases of speed.One of a direct competition to the evergreen business of McDonald¶s thatrecently launched here in Mumbai is Kentucky Fried Chicken commonlyknown as KFC which is famous for its fried chicken. When it comes to Quality ± KFC is far behind from MCDonald¶s. the company is now expanding to Tier 2 cities like Pune and Jaipur. Along with McDonald¶smany other junk food brands have started their business here. The company views this category as a key growth driver in future. The young generation of India has moved towards junk food against thetraditional Indian homemade food. price. VS 53 | P a g e 54.SWOT ANALYSIS 52 | P a g e 53. so much so that they prefer going to the junk foodie¶srestaurant and eat food in just few minutes instead of making lunch/dinnerat home and wasting 2 to 3 hrs in preparing it.In MC Donald¶s you get a wide variety of choices for both VEG and NON-VEG lovers. there is no variety for the veggieshere in KFC. People have started to live a fast andspeedy life. they give . as much as they have in McDonald¶s. With the customer demographics constantly changing and tectonic social and cultural shifts being observed in Tier 2 and Tier 3 cities due to globalization.It all started with the invention of McDonald¶s in INDIA.

every time an attendanttakes down the order from the customer waiting in the queue. McDonald¶s self-service concept wherein the customer notonly collects the order but also cleans the table after consuming the food. This iswhere McDonald¶s has excelled due to its ability to successfully integratethe customer¶s perspective in its products and operations in acomprehensive manner. the operational integration is clear from McDonald¶semphasis on its suppliers as its customers as well as its treatment of itsconsumers as co-producers of services.MCDONALD¶S EXPERIENCEMarketing in a services industry is becoming an increasingly complexchallenge. Supplementary process Service delivery process Core productsDuring the Service Delivery Process. etc.g. McDonald¶s has been able to create a great experience for itscustomers by understanding the nature of the entire Service . each moment of interaction betweenthe firm and the customer. communication skills. The paradigms of service marketing demand a passionateunderstanding of customer expectations and perceptions. all this is really required if you want to win away the masses. ³Moments Of Truth´ ± The Service Encounter customer service provider service delivery pointsManaging these ³moments of truth´ is a great challenge in ServiceMarketing especially due to customer¶s involvement as a co-producer ofservices e. have a complaint box or feedbacksurvey done which will help you know where and what is you lackingbehind. every timethe cashier interacts with the customer. For example.However. at the McDonald¶s outlet meets the customer. helps understandthe opportunities that a firm has to win or lose the customer. And. The Service Delivery Process is the key to achieving this aim ofService Marketing. every time the attendantcleans the table. So my advice to KFC would be ± pay more attention to peoplemanagement.awayfree toys etc. 54 | P a g e 55.KFC does not offer any of those. called ³Moments of Truth´. Presentation skills at KFC are reallypoor. The revamped menu in India is an example ofMcDonald¶s strategy of integrating the customer¶s perspective in itsproducts. and linkingthem to product design & delivery as well as operational planning. every time the attendant helps thecustomer guided the customer towards the table.these ³moments of truth´ are created for McDonald¶s every time the guard 55 | P a g e 56. The ultimate aim of ServiceMarketing is not just to become a Service Leader but to create a ServiceBrand.

of restaurants 11.00. This hashelped McDonald¶s become Service Leader and a successful ServiceBrand. McDonald¶s focuson its People and their service delivery methods therefore plays a veryimportant role in creating a successful Service Brand.000 budgetMCDONALD¶S INDIAN SUPPLIERSNORTH AND EAST INDIA NO.205 57 | Page 58.133 7.000 year 2009Mcdelivery service 2009-2011 50.409 8. 22HARYANA .Promotions of big Mac product Complete 3.DeliveryProcess and the various stages in the process that are exposed to thecustomers.941. The quality and theconsistency of the service delivered by McDonald¶s have been greatlyenhanced by the combination of the factors mentioned above.224 ACTIVITY TIME BUDGET ($) PERIODAverage age of big Mac product 2009-2011 1.000.862 1.P.252 12.000Marketing Advertisements 2009-2011 1.596 1.US 12. This is evident from the fact that very few of its customers opt fortake-home parcels or home deliveries while most of them prefer to eat atthe outlet and enjoy the McDonald¶s experience.993 15.640 6. Adapting automated machines 2009-2011 40.815.046Total revenues 6.083 1.093 13.507 7.241Net profit 802 860 959 1.984 2. Cleanliness and Value (QSC & V) becomes company motto1963 Ronald McDonald makes debut1965 The company goes public1968 Big Mac is introduced`1974 Happy Meal is launched1996 McDonald¶s opens in India.885 23.00.FACTS AND FIGURESYear Events1955 Ray Kroc opens his first restaurant.000.243 14. 56 | P a g e 57.987.000Launched N mixed Happy meal 2009-2011 300.Outside US 6.186 14.679 1.321Operating profit 1.759 19.587 25.418 13.408 8. Transparency in the processes at its outlet has helpedMcDonald¶s bring the back office in its outlet at the front so that thecustomer is able to know the operations and provide feedback on servicedesign improvements.695 7.000 58 | P a g e 59.519 13. McDonald¶s Corporation is created1957 Quality.000Reputation in training 2009-2011 25. System wide sales 18.000 Total 1. Internal Customer Focus is equally important as External CustomerOrientation in order to win these ³moments of truth´. Service. the 95th countryWORLDWIDE FINANCIAL PERFORMANCEDollars in million 1990 1991 1992 1993 1994No.OF OUTLETSDELHI 33U.642 9.928 21.401 1.803 12.

innovative ideas.OF OUTLETS 59 | P a g e 60. forecastingconsumers demand. What is the main problem you faced at McDonald¶s? problems faced in McDonalds long queues 40% 28% rude behaviour of employees congestion 13% 15% other 4% no problemQ. McDonalds Corporation and McDonaldsrestaurants.HAMBURGER UNIVERSITIES 60 | P a g e 61. Which area do you think needs the most improvement? 62 | P a g e 63. Is the product line in McDonald¶s adequate? 61 | P age 62. 3MCDONALD¶S OFFER SCHOLARSHIP TO STUDENTS IN USLocal Chapters of Ronald McDonald House Charities (RMHC).QUESTIONNAIREQ. mid-managers and owners have graduated from this facility. more than five thousand students attend hamburger universitieseach year. Do you like McDonald¶s? 63 | P a g e 64. Basically. Thesescholarships are part of the RMHC and McDonald¶s ongoing commitmentto education. customers views. withsupport from RMHC Global. the strategies that areimplemented by McDonald¶s includes many basic essentials features likemarket research. Today. Since 1961. What is the first thing that strikes your mind about McDonald¶s? first thing about McDonalds that strikes customers mind 22% 32%4% burger golden arches service 17% 25% value for money funQ. more eighty thousand restaurants managers.11PUNJAB 7RAJASTHAN 3UTTRANCHAL 1WEST BENGAL 1HAMACHAL PRADESH 1WEST AND SOUTH INDIA NO. Which is your favorite product at McDonald¶s? favourite product 10% 7% 9% 14% maharaj mc11% mc chicken burger 11% french fries chicken mcnuggets mc puff 38% fileto fish otherQ. customers view points 7% 12% yes no 25% 56% yes & no no exp CONCLUSIONMarketing Strategies implied by McDonald¶s clearly gives the entirecomprehensive information that is necessary for the growth anddevelopment of a business enterprise. is the product line adequate 39% 27% yes no average 34%Q. . improvement 10% 6% 10% 31% delivery capaciousness product variety 20% price 23% offers and dis othersQ. offer scholarships to students from communities who facelimited access to educational and career opportunities. planning. MAHARASHTRA 32GUJARAT 7KARNATAKA 7ANDHRA 4M.P.

Therefore. BIBILOGRAPHY www.McDonald¶sIndia. years. these are the few basicessentials elements that plays a vital role for the successful business andalso in creating the brand name of a product. most of the companies adopt differenttypes of marketing strategies in order to serve their customers in a morebetter and efficient manner than their competitors so that.organizing etc. Even corporate companies like Relianceand Tata industries are implementing various strategies from past many 64 | P a g e 65. Today. their businesscan easily survive in the market. This shows that marketing strategies provides competitive edge forevery business 65 | P age .com www. in this fast movingdynamic world the demand for goods and services are increasing at analarming rate due to which there is greater competency and competitorsruling in the market.