MARKETING STRATEGIES OF MCDONALD ’ S VS KFC

PRESENTED BY:• • • • • CHANDAN SINHA- BBA 4598/08 KUMAR RAVI- BBA 45103/08 ROHIT SINGHBBA 45108/08 ANIL KR AGARWAL-BBA 4543/08

McDonald ’ s INDIA

Mc Donald's in India.
• McDonald’s entered India in 1996. • McDonald’s India has a joint venture with Connaught Plaza Restaurants and Hard Castle Restaurants. • Connaught Plaza Restaurants manages operations in North India whereas Hard Castle Restaurants operates restaurants in Western India. • Today it has 169 Restaurants across

2 million $ in India.MARKET PERFORMANCE • Estimated CAGR of 40%. • • Market share of 18% in north India. • • Total revenue of 2007-08 was 740. • .

• Product Consistency – By developing a sophisticated supplier networked operation and distribution system. the company has been able to achieve consistent product taste and quality across geographies . The remaining 85% is operated by franchises. CONTD • Franchise Model – Only 15% of the total number of restaurants are owned by the Company.BUSINESS MODEL .

BUSINESS MODEL . but also protecting its long term brand reputation. CONTD • Act like a retailer and think like a brand – McDonald’s focuses not only on delivering sales for the immediate present.  .

.McDonalds Marketing Mix (4 P’S).

• For Indian menu ham. • McDonalds has intentionally kept its product depth and product width limited. • McDonalds continuously innovates its products according to the changing . • Designed the product after deeply studying the Indian customers. • The strategy for product is to provide entry level product so that the customer can try new items and graduate to higher rungs. beef and mutton burgers were removed. PRODUCT.

All the other three are expenses incurred. . • Competitive pricing. • McDonald’s came up with a very catchy punch line “Aap ke zamane mein . PRICE. combo meal.baap ke zamane ke daam”. • McDonalds has certain value pricing and bundling strategies such as happy meal. This was to attract the middle and lower class consumers and the effect can clearly be seen in the consumer base McDonalds has now. • This is the most important part of the marketing mix for McDonald’s as this is the only part which generates revenue. family meal etc to increase overall sales volumes.

. • Prices are stable because of well established low cost chain.Pricing Strategy • Value Ladder Strategy. In this section prices ranged from 20 to 80. • In March 2004 introduced “AAP KE ZAMANE ME BAAP KE ZAMANE KE DAAM”. which resulted high increase in sales volume. • Started product bundling.

• 169 outlets all over India. Pvt ltd. . • The place mainly consists of the distribution channels. In India the outlets in north and east India are run by Connaught Plaza rest pvt ltd and outlets in west and south India are run by Hard Castle Rest. PLACE. • The structure is simple for McDonald's. at the right time and in the right quantity. It is important so that the product is available to the customer at the right place.

McDonald’s a Locally Owned Company. .

• “Brand globally. • McDonald’s does its promotion through television. • . advertise locally” is the McDonald’s promotional strategy. • Intensive advertising aimed at children. • • The idea of their promotion is to promote McDonald’s as a global image. They use print ads and the television programmes are also an important marketing medium for promotion. PROMOTION. hoardings and bus shelters.

Some of the most famous marketing campaigns of McDonald’s are: 1. “I’m loving it”.   • . and Fun” 6. “Aap ke zamane mein . “You Deserve a break today.baap ke zamane ke daam”. Folks. 7. so get up and get away. It is one of the most successful ad campaigns launched in 2003.To McDonald’s”  2. “Food. 5. 3. 4.

CO -BRANDING • McDonald's has major tie up’s with various companies as their cobranding strategy. • Coca cola- • • Brabie- • • Hot wheels- • • Disney-pixar- .

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SWOT ANALYSIS. • Strong brand. • Product innovation.  . • Customer intimacy. STERNGTHS. • Supplier Integration.

• • Low width and depth of the product.  .SWOT ANALYSIS . CONTD WEAKNESS.

CONTD OPPORTUNITY.SWOT ANALYSIS .  . • Entry into breakfast categories. • Expand into Tier-2 and Tier-3 cities.

. • Entry to Tier 2 and Tier 3 cities – The main target customer for McDonald’s is the new urban Indian family. the company has recently launched its entry into the breakfast food category.THE ROAD AHEAD. In Mumbai. it available at the Vile Parle outlet.   • Rolling out McBreakfast across all outlets – In India. With the customer demographics constantly changing and tectonic social and cultural shifts being observed in Tier 2 and Tier 3 cities due to globalization. the company is now expanding to Tier 2 cities like Pune and Jaipur. This is now launched on a pilot basis on select stores. The company views this category as a key growth driver in future.

 . CONTD THREATS. • • Increased competition from local fast food outlets.SWOT ANALYSIS . • Changing customer lifestyle and taste.

KENTUCKY FRIED CHICKEN KFC .

Kentucky. . KFC is a brand and operating segment. wraps. side dishes and desserts. salads and sandwiches. called a "concept" of Yum! Brands since 1997 when that company was spun off from PepsiCo. founded and also known as Kentucky Fried Chicken. or KFC.ABOUT KFC • KFC Corporation. • • KFC primarily sells chicken in form of pieces. is a chain of fast food restaurants based in Louisville. KFC also offers a line of roasted chicken products. While its primary focus is fried chicken.

• KFC(KENTUCKY FRIED CHICKEN) entered India in 1995. • Since then KFC has a strong presence in 11 cities of India with around 50 stores. • In 2003 it again came back with revised strategies and willingness to improve its earlier mistakes. 1954 and certain other mistakes it had to leave India. .KFC IN INDIA. • Because of KFC not adhering with the Prevention of Food Adulteration Act.

KFC MARKETING MIX 4 P’s .

KFC's primary product is pressure-fried pieces of chicken made with the original recipe.PRODUCT. • In KFC feedback is taken from the customer in order to know the customer demands and then improvements are made in products. • Products are generated based on the geographical locations. • KFC focuses on pure and fresh food in order to create a distinct and clear position in the minds of . • KFC's specialty is fried chicken served in various forms.

• They adopt the cost base price strategy. Their products are priced high and target the middle to upper class people • Compared to its competitors. • KFC globally enters the market using market skimming. . Pricing of the product includes the govt. Thus KFC has an upper hand in pricing their fried chickens. tax and excise duty and then comes the final stage of determine the price of their product.PRICE. KFC has a monopoly in fried chickens.

Demographic factors • Age: Generally there is no age limit focus by the KFC. Generally they target whole families rather than single persons. gender does not play any role here. The target and focus is on each and every individual in a society. This being the reason for their Family Meals which are basically bundled items served at a nominally . • Household Size: This plays a vital role in the demographic factor of the KFC. KFC finds its largest demographic in the young of any society. • Gender: Both male and females are focused by KFC.

• Consumption Behavior:  It estimates the behavior of people.Economic Factors • Income: Income is an important key factor for KFC. In the early rise of KFC they focused on the upper class but slowly are introducing economy meals that attract the lower to middle classes. their liking and disliking towards the pricing of the products. This factor decides which class is to be targeted.  .

• Accessibility – Resulting in several outlets to cater to the needs of people in & around the city. • Economically convenient – The pricing appeals to the many classes of a society. • CHANNELS-1st level channel ie .  Manufacturer---Retailer--- . • Hectic lifestyle – Due to the hectic lifestyle of office goings individuals the fast food concept saves time of preparing food and gives the customer a full meal quickly.  TARGET AREAS • “Free home Delivery” strategy – They provide free home delivery to offices & homes (select countries).PLACE.

. – Mid-sector people are always looking for change which KFC provides in their range of fast food. – Commercialization of urban and sub-urban markets leading to more mid-sector people that find high-end eating joints very to expensive.PLACE  CONTD Location – Hectic lifestyle of individuals – giving them more time at work and less stress about waiting for food. – Quality conscious – people in urban areas are more conscious about the quality of food than rural areas.

colleges. cinemas and markets which are mostly populated by the young and those who are in a hurry. .PLACE  CONTD Placement of outlets  Due to KFC placing itself close to schools. In addition. KFC enjoys a large number of footfalls everyday.

flyers and radio. • KFC and its new company jingle. “finger lickin good” is a frequent announcement on televisions. • The company anthem “finger linkin good” is just a wake up call to the consumer to remind them how good they felt the last time they ate KFC chicken. KFC is currently the sponsor of the West Indies Cricket Team. the Fried Chicken. Promotion is the main tool to bring all chicken lovers attention towards its delicious one-of-a-kind product. • At KFC.PROMOTION. • Sponsorship is another tool to strengthen an organizations image. • All KFC outlets offer its customers with various . billboards.

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STRENGTHS.  .SWOT ANALYSIS. • High global brand image. • Strong presence over competitors with its primary product fried chicken.

• Little or no coverage in Tier-II cities. CONTD WEAKNESS.  . • Lesser number of outlets.SWOT ANALYSIS .

• Venturing in potential Tier-II cities. CONTD OPPORTUNITY. • Opening more outlets in the four metros to increase their presence.SWOT ANALYSIS . • •  .

• Tough competition from the local non-vegetarians dishes prepared by the local restaurants. • McDonald’s is the biggest threat for KFC.SWOT ANALYSIS . because of its continuous growth in Indian market. • KFC’c previous brand image. CONTD  THREATS. .

But KFC who re entered in 2003 has shown a rapid progress and no wonder if in the coming years KFC overtakes McDonald’s in the Indian market share. Time will be the evidence for this. But when it comes to comparing these two brands the following study brings us to a conclusion that as far as market presence and brand value is concerned McDonald's has definitely proved a point for themselves. but for now it’s Ronald McDonald who is .CONCLUSION  In India fast food market is strongly dominated by these 2 brands.