Marketing Mix

For

Presented By:

Abhishek Bhartiya
B. Aditya Mohan
Geetika Sodhi
Mahek Nangia
Mukul Kumar
Wasim Shaikh

Introduction
McDonalds is the Eighth Most Poweful Brand in the
----Source: Millward Brown Optimor (including data
World.
from brandz, Datamonitor, and Bloomberg)

Total Revenue for 2006-07 was $740.2 million.

Estimated CAGR of 40 percent.
Rs 400 crore being put in for expansion plans into
Tier II cities within next three years.
Doubling of turnover within three years.
Market share of 18 percent in north India.(includes
restaurants, cafes, fast food joints, local vendors etc.)

Brief History
McDonald's was started as a drive-in restaurant by two
brothers, Richard and Maurice McDonald in California,
US in the year 1937.
By mid-1950s, the restaurant's revenues had reached
$350,000.
Ray Kroc
Kroc, distributor for milkshake machines, expressed
interest in the business, and he finalized a deal for
franchising with the McDonald brothers in 1954.
He established a franchising company, the McDonald
System Inc
Inc.. and appointed franchisees.
In 1961, he bought out the McDonald brothers' share for
$2.7 million and changed the name of the company to
McDonald's Corporation.
Corporation In 1965, McDonald's went
public

McDonalds In India
In 1996, first McDonalds restaurant
opened on Oct. 13, at Basant Lok,
Vasant Vihar, New Delhi.
McDonald's India is a 50 50 JV
partnership
between
McDonalds
Corporation (U.S.A) and two Indian
businessman Amit Jatia (Hardcastle
Restaurants Private Limited, Mumbai)
and Vikram Bakshi (Connaught Plaza
Restaurants Private Limited, Delhi).
Approximately 75% of the menu
available in McDonalds in India is
Indianized and specifically designed to
woo Indian customers.
The McDonald's philosophy of QSC&V
is the guiding force behind its service to
the customers.

Product

Our clear strategy is to bring the

customers in initially and provide a range
of entry-level products so that they can try
new items and graduate to the higher
rungs. --Vikram Bakshi,
Managing Director,
Northern Region, India

Product Mix

Product
Mix

Veg Menu
McVeggie
McAloo Tikki
Paneer Salsa Wrap
Crispy Chinese
Veg McCurry Pan
Pizza McPuff

Non-Veg
Menu
Chicken Maharaja
Mac
McChicken
Fiet-O-Fish
Chicken Mexican
Wrap
Chicken McGrill

Beverages
Cold Coffee
Ice Tea
Soft Drinks
Mc Shakes
Hot Serves

Frozen
Deserts
Soft Serve Cone
Mc Swirl
Soft Serve
Flavor Burst
Floats

Veg Menu

Non--Veg Menu
Non

Beverages

Frozen Deserts

Co - Branding
McDonalds has major tie-ups with various companies as their cobranding Statergy.

Few of Them are listed Below:

Coca-Cola
Barbie
Cadbury
Hotwheels

Pricing

Initial focus on metros Mumbai and Delhi.

Relatively high income.

Move to smaller satellite towns.(Gurgaon and Pune)

Jaipur and Agra to attract foreign tourists.

Household Expenditures

Source: India, the structure of Poverty, WORLD RESOURCE INSTITUTE.

Pricing Strategy

Purchasing power pricing:a)

In 1997 slashed prices for vegetable nuggets and

soft serve cone.

b)

In September 2001, they offered Veg surprise

burgers for Rs 17.

c) March 2004 Aap ke zamane mein, baap ke

zamane ka daam.

Pricing Strategy

Value Ladder strategy :a) Started offering value meals in a range of prices.
b) Ensure affordability and attract widest section of
customers.
c) Brought the customer and provided a range of entrylevel products.
d) Try those new items and graduate to higher-rungs.
e) E.g- if a customer starts with McAloo Tikki, he will
finally graduate to McVeggie and so in Non veg.
f) Helped its Volume business.

Aap ke zamane mein,

baap ke zamane ka daam!!!
daam!!!
Value Pricing.
a)

Happy price menu Rs 20.

b)

Economeal Rs 49(save Rs 11).

c)

McChicken & McVeggie Meal Rs 75,Rs 65 (Save Rs 15).

d)

Happy Meal for Kids Rs 69,99,109 (toy free).

e)

Big saving Meals Combos Rs 109 Rs 119(Save Rs 36).

f)

A-la carte menu Rs 45- Rs 65 (Veg)

Rs 55- Rs 65 (Non Veg)

a)

Desserts Rs 12 Rs 25.

b)

Beverages Rs 25- 50 ( a little costly)

Product Bundling

Package deal.
The most common strategy in fast food industry.
The most preferred style for customers of McD.
Plays on Psychological factor of the customer.
Customer acquisition costs are high.
Consumers appreciate the resulting simplification of
the purchase decision.
The product mix offers are different in various parts of
India.

80--20 Menu Board

80

80% visual.
20% descriptive.
Easier for customers to understand what
29,39,49,59,89,99 rupee options are.
Pricing range, quick service, no-tips
environment attracted middle class and
students.

Competitive Pricing
Food
items

McD

SUBWAY

KFC

PIZZAHUT

DOMINO
S

Burgers &
Pizzas

Rs 20- Rs
70

Rs 65- Rs
135

Rs 25
Rs175

Rs 55- Rs
175
(regular)

Rs 35- Rs
140
(regular)

Combo
Meals

Rs 49-Rs
119

Rs 45- Rs
175

Rs 55-Rs
150

Rs 120- Rs
250

Rs 120- Rs
230

Beverages

Rs 25- Rs
50
Small300ml

Rs 35- Rs
45
Small300ml

Rs 30-Rs
55
Small300ml

Pet
beverage
MRP
(600 ml)

Rs 30
(600 ml)

Desserts

Rs 12-Rs
25

Rs 20-Rs
50

Rs 15-Rs
65

Rs 40- Rs
60

Rs 25
(100ml
cup of
Baskin
Robbins)

Sustaining HOW?

Cost control strategy:a) Well established low cost

supply chain.
b) Ensures efficiency and speed
in distribution.
c) Huge increase in volume
sales.
d) Very good food processing
technology.

McDonalds : A locally Owned

Company

McDonalds
Corporation

McDonalds
India Pvt.
Ltd.

Hard Castle
Rest. Pvt. Ltd.
(West & South)

Connaught
Plaza Rest. Pvt.
Ltd.
(North & East)

McDonalds : A locally Owned

Company
Geographically Diverse suppliers: Ensuring stringent quality standards

McDonalds India: Suppliers

Trikaya Agriculture
Supplier of Iceberg Lettuce

Vista Processed Foods Pvt. Ltd.

Supplier of Chicken and Vegetable range of
products.

Dynamix Diary
Supplier of Cheese.

Amrit Food
Supplier of long life UHT Milk and Milk
Products for Frozen Desserts.

McDonalds India: Suppliers

SELECTION

MODIFICATION

EVALUATION

MOTIVATION

McDonalds India: Distribution

Radhakrishna Foodland
Distribution Centres and cold storages.
With a cold chain in place there is practically no need for a knife in
the restaurant. Chopping and food processing is done in plants.
Restaurants are confined only to actual cooking Amit Jatia.

Completely dedicated distribution and supply chain.

Matching supplier production with deliveries using ERP.
Quality inspection Program, quality check at 20 different points in
supply chain.
HACCP(Hazard analysis critical control points) food safety
standards emphasizing prevention of faults.

McDonalds India: Channel

Network
North and East India (79)
33 in Delhi
22 in Uttar Pradesh
11 in Haryana
7 in Punjab
3 in Rajasthan
1 in Uttaranchal
1 in West Bengal
1 in Himachal Pradesh

West and South India (53)

32 in Maharashtra
7 in Gujarat
7 in Karnataka
4 in Andhra
3 in Madhya Pradesh

McDonalds India: Network &

competitors

COMPANIES

OUTLETS (No.)

CITIES COVERED

McDonalds

132

34

Pizza Hut

137

34

Dominos

220

42

Subway

131

32

Nirulas

65

NCR

KFC

34

09

McDonalds India: Outlets

Standardization is the key!!

McDonalds India: The Road

Ahead

Increasing seating capacity.

Aggressive expansion plans throughout the country.
More drive thrus.
Oil alliance with BPCL in 2002, with HPCL in Jan, 2008.
Independent franchisee model.
McDelivery on cycles.
Entry in new cities.

Promotion

An activity, such as a sale or advertising

campaign, designed to increase visibility
or sales of a product.
McDonalds, for years has maintained an
extensive promotion strategy with
highest spending on marketing amongst
all its competitors.

Advertising
Focus
on
overall
experience.
Brand globally and act
locally.
Overall it is doing what it
does the best marketing.
Intensive advertising aimed
at children.
Paper mats on trays ensure
that no new scheme goes
unnoticed.

Advertising
80-20 menu boards marketing
tool.
Sponsors sport events with
their logos advertised in these
events.
Significant use of billboards
and signage.
Image of portraying warmth
and a real slice of everyday
life has become a trademark
and has created many
memorable commercials.

THE mascot
The well known mascot
Ronald McDonald is the
same throughout the
world since 1963.
It is supposed to be the
next most well recognized
figure second only to
Santa Claus.
The color combination
maximizes
brand
exposure and is supposed
to increase hunger

Campaigns
Im lovin it is an
international branding
campaign which was
launched in 2003 and has
proved to be its biggest
success.
aap ke zamaane mein
baap ke zamaane ke daam
is a highly localized
campaign which aimed at
attracting the masses
through its happy price
menu.

Issues with McDonalds

Nutritionists argue that the type of high fat, low fibre
diet promoted by McDonald's is linked to serious
diseases such as cancer, heart disease, obesity and
diabetes.
Many parents object strongly to the influence this has
over their own children.
Complaints from employees range from discrimination
and lack of rights, to understaffing, few breaks and
illegal hours, to poor safety conditions and kitchens
flooded with sewage, and the sale of food that has
been dropped on the floor.

Issues with McDonalds

They use their financial clout to influence
the media, and legal powers to intimidate
people into not speaking out, directly
threatening free speech.
Conservationists have often focussed on
McDonald's as an industry leader
promoting business practices detrimental
to the environment. And yet the company
spends a fortune promoting itself as
environmentally friendly.

People
Each outlet is headed by a
Restaurant Manager . He is
responsible for the daily
operation and customer
interaction.
Delivery Crew Member
carries basic operation of a
restaurant. Ensures customer
satisfaction at the
restaurants.
In order to motivate there
employees they give them
stars as per their
performance.

Training At Hamburger
Hamburger University McDonalds Centre of Training Excellence

Since its inception, training at Hamburger University has

emphasized consistent restaurant operations procedures, service,
quality and cleanliness. It has become the companys global centre
of excellence for McDonalds operations training and leadership
development
February 24, 1961, Hamburger Universities first class of 14
students graduated
Today, more than 5,000 students attend HAMBURGER UNIVERSITY
each year
Since 1961, more than 80,000 restaurant managers, midmanagers and owner/operators have graduated from this facility

Organizational Chart

Physical evidence..
Cleanliness, speed, quality and transparency
of process is the biggest physical evidence.
The interiors are attractive and more or less
consistent throughout the world.
A proper decorum and strict standards of
cleanliness are maintained at all the joints.
Extra care is given to make the joints children
friendly

Physical evidence..
Family environment message throughout the
world, just the way of communication is
adjusted to different countries.
Play areas are provided so that kids dont
become panicky.
Counters are kept low and menus pictorially
displayed so that children can order for
themselves.

Process

Ready to
cook frozen
food material
Delivery to
customer

Initiator
Universal
holding
Cabinet
Assembler

Thank You