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A PROJECT REPORT

ON
MARKETING STRATEGY OF Mc DONALD’S IN INDIA

SUBMITTED TO: SUBMITTED BY:


MRS.SEEMA RIZVI NIKHIL JAISWAL
DECLARATION

TITLE OF PROJECT REPORT “MARKETING STRATEGY OF MCDONALDS IN INDIA”

I UNDERSTAND WHAT PLAGIARISM IS AND AM AWARE OF THE UNIVERSITY’S POLICY IN THIS REGARD

I DECLARE THAT

THE WORK SUBMITTED BY ME IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE AWARD OF
DEGREE BBA (3 CONTINENT) ASSESSMENT IN THIS “MARKETING STRATEGY OF MCDONALDS IN INDIA” “IS
MY OWN;IT HAS NOT PREVIOUSLY BEEN PRESENTED FOR ANOTHER ASSESSMENT.

I DECLARE THAT MARKETING STRATEGY OF MCDONALDS IN INDIATHIS MY ORIGINAL WORK.WHEREVER


WORK FORM OTHER SOURCE HAS BEEN USED, ALL DEBTS HAVE BEEN APPROPRIATELY ACKNOWLEDGED
AND REFERENCED IN ACCORDANCE WITH THE REQUIREMENTS OF NTCC REGULATIONS AND GUIDELINES.

a) I HAVE NOT USED WORK PREVIOUSLY PRODUCED BY ANOTHER STUDENT OR ANOTHER PERSON TO
SUBMIT IT AS MY OWN.
b) I HAVE NOT PERMITTED,AND WILL NOT PERMIT ,ANYBODY TO COPY MY WORK WITH PURPOSE OF
PASSING IT OFF AS HIS OR HER OWN WORK.
c) THE WORK CONFORMS TO THE GUIDELINES FOR LAYOUT ,CONTENT AND STYLE AS SET OUT IN THE
REGULATION AND GUIDELINES.
DATE ………….. NAME NIKHIL JAISWAL

ENROLMENT NO A7010415003

PROGRAMME BBA (3 CONTINENT)


FACULTY CERTIFICATE

FORWARDED HERE WITH A TERM PAPER REPORT ON “MARKETING


STRATEGY OF MC DONALDS IN INDIA” SUBMITTED BY NIKHIL
JAISWAL ENROLLMENT NO A7010415003 STUDENT OF BBA (3
CONTINENT) (2015-2018)

THIS PROJECT WORK IS PARTIAL FULFILLMENT OF THE


REQUIREMENT FOR THE DEGREE OF BACHELOR OF BUSINESS
ADMINISTRATION (3 CONTINENT) FROM AMITY UNIVERSITY
LUCKNOW CAMPUS UTTAR PRADESH.

MRS. SEEMA RIZVI

AMITY UNIVERSITY,

LUCKNOW CAMPUS,

UTTAR PRADESH.
STUDENT’S CERTIFICATE

CERTIFIED THAT THIS REPORT IS PREPARED ON TERM PAPER UNDERTAKEN BY


ME IN “MARKETING STRATEGY OF MCDONALDS IN INDIA” IN INDIA FROM 23
APRIL 2015 TO 23 JULY 2015 ,UNDER THE ABLE GUIDENCE OF MRS. SEEMA
RIZVI IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR AWARD OF
DEGREE OF BBA (3 COTINENT) FROM AMITY UNIVERSITY ,UTTAR PRADESH.

DATE……………….

SIGNATURESIGNATURE SIGNATURE

NIKHIL JAISWAL MRS.SEEMA RIZVI

STUDENT FACULTY GUIDE DIRECTOR (ABS)


ACKNOWLEDGEMENT

THIS PROJECT REPORT WOULD NOT HAVE BEEN POSSIBLE WITHOUT


THE SUPPORT AND GUIDANCE OF MY TEACHER MRS. SEEMA RIZVI

I WOULD EXPRESS MY HEART FELT GRATITUDE TOWARDS AND


WITHOUT WHOSE GUIDANCE AND SUPPORT,I WOULD NOT HAVE
BEEN ABLE TO UNDERSTAND THE OBJECTIVE OF THE PROJECT AND
THIS PROJECT WOULD NOT HAVE BEEN COMPLETE.

HE HAS BEEN REALLY UNDERSTANDING AND SUPPORTIVE IN


EXPLAINING ALL THE DETAILS WITH PATIENCE .I WOULD EXPRESS MY
GRATITUDE TOWARDS HIM FOR TAKING TIME OUT OF HIS SCHEDULE
TO GUIDE ME DURING THIS REPORT.
PREFACE

PROJECT REPORT A VERY VITAL PART OF CURRICUALM BBA(3C) IS


THE STEPPING STONE TO MANAGEMENT CAREER.IN ORDER TO
ACHIEVE PRACTICAL, POSITIVE AND CONCRETE RESULT,THE
CLASSROOM LEARNING HAS TO BE EFFECTIVELY SUPPLYMENTED IN
RELATION TO THE SITUATION EXISTING OUTSIDE THE CLASSROOM
FOR DEVELOPING HEALTHY MANGARIAL AND ADMINITRATIVE SKILLS
IN POTENTIAL MANAGER ORGANISATION .THIS PROGRAMME
ENHANCES THE STUDENTS CAPABILITY TO COPE UP WITH
UNCERTAINTIES AND CHALLENGES ,WHICH ARE PART AND PARCEL
OF EVERY ORGANISATION.

I FEEL HIGHLY GRATIFIED IN THIS REPORT.IT HAS BEEN MY


CONSTANT ENDEAVOUR TO PRESENT THIS REPORT IN THE MOST
SYSTEMATIC AND ANALYTICAL MANNER.

AS AN INTEGRAL PART OF THE COURSE CURRICULAM ALL BBA


(3C)STUDENTS ARE REQUIRED TO UNDERGO PROJECT REPORT IN
ANY ORGANISATION.THE MAIN OBJECTIVE OF THIS PROJECT IS TO
SUPPLEMENT STUDENTS THEORETICAL AS AN INTEGRAL PART OF
COURSE CURRICULAM.ALL BBA (3C)STUDENTS ARE REQUIRED TO
UNDERGO PROJECT REPORT IN ANY ORGANISATION.
TABLE OF CONTENTS

 EXECUTIVE SUMMARY
 INTRODUCTION
 COMPANY PROFILE
 AN INSIGHT
 RESEARCH METHODOLOGY
 DATA ANALYSIS
 RESULTS AND FINDINGS
 CONCLUSION
 BIBLOGRAPHY
EXECUTIVE SUMMARY

McDonald's is the world's largest chain of hamburger fast


food restaurants, serving around 68 million customers daily
in 119 countries across 35,000 outlets. Founded in the United
States in 1940, the company began as a barbecue restaurant
operated by Richard and Maurice McDonald. In 1948, they
reorganized their business as a hamburger stand using
production line principles. Businessman Ray Kroc joined the
company as a franchise agent in 1955. He subsequently
purchased the chain from the McDonald brothers and
oversaw its worldwide growth.
A McDonald's restaurant is operated by either a franchisee,
an affiliate, or the corporation itself. The McDonald's
Corporation revenues come from the rent, royalties, and fees
paid by the franchisees, as well as sales in company-operated
restaurants. In 2012, the company had annual revenues of
$27.5 billion and profits of $5.5 billion. According to a 2012
BBC report, McDonald's is the world's second largest private
employer—behind Walmart—with 1.9 million employees, 1.5
million of whom work for franchises.
McDonald's primarily
sells hamburgers, cheeseburgers, chicken, French
fries, breakfast items, soft drinks, milkshakes, and desserts. In
response to changing consumer tastes, the company has
expanded its menu to include salads, fish, wraps, smoothies,
fruit, and seasoned fries.

Revenue  US$
28.1057 billion
(2013)
 US$
27.567 billion
(2012)

Operating  US$
income 8.7643 billion
(2013)
 US$
8.6046 billion
(2012)

Net income  US$


5.5859 billion
(2013)
 US$
5.4648 billion
(2012)
Total assets  US$
36.6263 billion
(2013)
 US$
35.3865 billion
(2012)

Total  US$
equity 16.0097 billion
(2013)
 US$
15.2936 billion
(2012)

It was founded in may 15 1940 in san Bernardino


California(as McDonalds) in april 15 1955 in des plaines
,lllinois(as the McDonalds corporation)
Richard and Maurice McDonalds are the founders of Mc D
McDonalds corporation –ray kroc
Headquater is in oak brook,lllinois,U.S.
Key people are Andrew J McKenna(chairman)steve
esterbrook (President and Ceo)
It trades as nyse:mcd
Dow jones industrial average component
S&P 500 component
On may 4 1961 McDonalds first filed for a U.S. trademark on
the name McDonalds with the description drive in restaurant
services,which continues to be renewed through the end of
dec 2009. On a seasonal basis, McDonald's offers the McRib
sandwich. Some speculate the seasonality of the McRib adds
to its appeal. Various countries, especially in Asia, are
currently serving soup. This local deviation from the standard
menu is a characteristic for which the chain is particularly
known, and one which is employed either to abide by
regional food taboos (such as the religious prohibition of beef
consumption in India) or to make available foods with which
the regional market is more familiar (such as the sale of
McRice in Indonesia, or Ebi (prawn) Burger in Singapore).
In Germany and other Western European countries,
McDonald's sells beer. In New Zealand, McDonald's
sells meat pies, after the local affiliate partially launched
the Georgie Pie fast food chain it bought out in 1996. In the
United States, after limited regional trials, McDonald's plans
to offer breakfast whenever its restaurants are open. Eggs
cannot be cooked at the same time on the same equipment
as hamburgers due to different temperature requirements.
In india McD does not sells beef as they sell it in other
countries due to religious barriers they try to adopt different
cultures around the globe.
INTRODUCTION
McD is a global fast food chain
Entered india in oct 1996.
Forty eight yrs down the line they are the worlds largestfood
service chain with more than 1200 restaurants in 100
countries serving 46 million customers everyday.

STRENGTH
 Strong brand recognition.
 Strong product value.
 Strong international presence.
 Customer intimacy.
 Product innovation.
 Strong distribution network.

WEAKNESS
 High overall cost than rivals.
 Unable to capitalize on the trend towards the organic
food.
 Children as their main target audience.
 Considered as junk food.
OPPORTUNITIES
 Acquisition of other restaurants.
 Provide optional allergen free food items such as Gluten
free and Peanut free.
 Advertising strategies.
 Healthy hamburgers
 Partnership with UAE govt. to reduce carbon footprint.

COMPANY ‘S PROFILE

McDonald's is the world's leading global food


service retailer with over 36,000 locations serving
approximately 69 million customers in over 100
countries each day. More than 80% of McDonald's
restaurants worldwide are owned and operated by
independent local business men and women.
Our Strategic Direction
The strength of the alignment among the Company,
its franchisees and suppliers (collectively referred
to as the "System") has been key to McDonald's
long-term success. By leveraging our System, we
have been able to identify, implement and scale
ideas that meet customers' changing needs and
preferences. In addition, our business model
enables McDonald's to consistently deliver locally-
relevant restaurant experiences to customers and be
an integral part of the communities we serve.
Our overall vision is for McDonald's to become a
modern, progressive burger company delivering a
contemporary customer experience. Modern is
about getting the brand to where we need to be
today and progressive is about doing what it takes
to be the McDonald's our customers will expect
tomorrow. To realize this commitment, we are
focused on delivering great tasting, high-quality
food to our customers and providing a world-class
experience that makes them feel welcome and
valued.
Reporting Segments
The business was managed as distinct geographic
segments through June 30, 2015, that included the
U.S., Europe, Asia/Pacific, Middle East and Africa
(APMEA) and Other Countries & Corporate (OCC)
including Canada, Latin America and Corporate.
Beginning July 1, 2015, McDonald’s started
operating under a new organizational structure with
the following four segments that combine markets
with similar characteristics, challenges, and
opportunities for growth:
 U.S. - the Company’s largest segment,
accounting for more than 40% of the
Company’s 2014 operating income;

 International Lead Markets - established


markets including Australia, Canada, France,
Germany, and the UK, which operate within
similar economic and competitive dynamics,
offer similar growth opportunities and
collectively represented about 40% of the
Company’s 2014 operating income;

 High Growth Markets - markets with


relatively higher restaurant expansion and
franchising potential including China, Italy,
Poland, Russia, Korea, Spain, Switzerland and
the Netherlands. Together these markets
accounted for about 10% of the Company’s
2014 operating income; and

 Foundational Markets & Corporate - the


remaining markets in the McDonald’s system,
each of which has the potential to operate
under a largely franchised model. Corporate
activities will also be reported within this
segment.
In conjunction with these changes, the Company
will provide recast financial information for the
years 2010 to 2014 and quarters ended March 31,
2014 to June 30, 2015 by the end of September
2015.
Restaurant Ownership
We view ourselves primarily as a franchisor and
believe franchising is important to delivering great
customer experiences and driving profitability. At
year-end 2014, more than 80% of McDonald’s
restaurants were franchised. Of the total
McDonald’s restaurants worldwide:
 Over 57% are conventional franchisees

 Approximately 24% are licensed to foreign


affiliates or developmental licensees

 Over 18% are Company-operated


Marketing MIX OF McDonalds

The marketing mix of McDonalds consists of the various


elements in the marketing mix which form the core of a
company’s marketing system and hence helps to achieve
marketing objectives. The marketing mix of McDonalds
discusses the 4p’s of the leading burger chain across
India offering the tastiest burgers and French fries.

Product: - McDonald’s places considerable emphasis


on developing a menu which customers want. Market
research establishes exactly what this is. However,
customers’ requirements change over time. In order to
meet these changes, McDonald’s has introduced new
products and phased out old ones, and will continue to
do so. Care is taken not to adversely affect the sales of
one choice by introducing a new choice, which will
cannibalise sales from the existing one (trade off).
McDonald’s knows that items on its menu will vary in
popularity. Their ability to generate profits will vary at
different points in their cycle. In India McDonalds has a
diversified product range focussing more on the
vegetarian products as most consumers in India are
primarily vegetarian. The happy meal for the children is
a great seller among others.

Price: - The customer’s perception of value is an


important determinant of the price charged. Customers
draw their own mental picture of what a product is
worth. A product is more than a physical item, it also has
psychological connotations for the customer. The danger
of using low price as a marketing tool is that the
customer may feel that quality is being compromised. It
is important when deciding on price to be fully aware of
the brand and its integrity.
In India McDonalds classifies its products into 2
categories namely the branded affordability (BA) and
branded core value products (BCV). The BCV products
mainly include the Mc Veggie and McChicken burgers
that cost Rs. 50-60 and the BA products include McAloo
tikki and Chicken McGrill burgers which cost Rs20-3
This has been done to satisfy consumers which different
price perceptions.

Promotion :- The promotions aspect of the marketing


mix covers all types of marketing communications One
of the methods employed is advertising, Advertising is
conducted on TV, radio, in cinema, online, using poster
sites and in the press for example in newspapers and
magazines. Other promotional methods include sales
promotions, point of sale display, merchandising, direct
mail, loyalty schemes, door drops, etc. The skill in
marketing communications is to develop a campaign
which uses several of these methods in a way that
provides the most effective results. For example, TV
advertising makes people aware of a food item and press
advertising provides more detail. This may be supported
by in-store promotions to get people to try the product
and a collectable promotional device to encourage them
to keep on buying the item.
At McDonalds the prime focus is on targeting children.
In happy meals too which are targeted at children small
toys are given along with the meal. Apart from this,
various schemes for winning prices by way of lucky
draws and also scratch cards are given when an order is
placed on the various mean combos.

Place: - Place, as an element of the marketing mix, is


not just about the physical location or distribution
points for products. It encompasses the management of
a range of processes involved in bringing products to the
end consumer. McDonald’s outlets are very evenly
spread throughout the cities making them very
accessible. Drive in and drive through options make
McDonald’s products further convenient to the
consumers.

People:-The employees in Mc Donalds have a standard


uniform and Mc Donalds specially focuses on friendly
and prompt service to its customers from their
employees.
Process:-The food manufacturing process at Mc
Donalds is completely transparent i.e. the whole process
is visible to the customers. In fact, the fast food joint
allows its customers to view and judge the hygienic
standards at Mc Donalds by allowing them to enter the
area where the process takes place. The customers are
invited to check the ingredients used in food.

Physical evidence: - McDonalds focuses on clean and


hygienic interiors of is outlets and at the same time the
interiors are attractive and the fast food joint maintains
a proper decorum at its joints.
We would be pleased if you can add your own points to
the Marketing Mix of McDonalds. The article will be
duly updated.

RESEARCH METHODOLOGY
In application of market research the research has to go
through several steps or stages and thesesteps are following:
Step 1: Defining the Problem,Defining the problem is the
most important part of the market research process, because
wrongdefinition misdirects research.The type of research to be
carried out, the question to be raised, and the sampling
procedure to befollowed and the data to be collected, all
depends on the current understanding of the problem. One of
these factors isBrand Name.A major step in the conduction of
market research is the decision regarding the nature of
researchdesign we are selecting for the purpose of our
study.The benefits of research design are that it evaluates
client¶s need in terms of results and theanalytical work on the
gathered data that will convert it to useful findings for the
management.The selection of a particular design depends on
the causality of the variables involved.** (Since I don¶t want
to calculate any causality between any variables therefore
descriptiveresearch is preferable)For the purpose of my study
I intend to take up descriptive design .This covers research
design that are intended to produce accurate description of
variablesrelevant to the decision being faced, without
demonstrating that some relationship exist
betweenvariables.Decision maker very often choose or are
willing to accept descriptive data, which would permitonly
inferences to be drawn about causationHere I am using cross-
sectional design to produce a picture of the phenomena in
which thedecision maker is interested.

Step 2: Develop the Research Plan. The second stage of


marketing research calls for developing the most efficient plan
for gatheringthe needed information.Designing the research
plan calls for decision on the data sources, Research
approaches,Research instruments, Sampling plan, and other
contact methods.
Research Design
Primary Data can be collected in five ways:

Observation

Focus Groups

Surveys
Behavioural Data

Experiments

Observation Research
Fresh data can be gathered by, observing the relevant actors
and setting.
Focus Groups
A Focus Group is a gathering of six to ten people who are
invited to spend a few hours with askilled moderator to
discuss a product, service, organization, or other marketing
entity. Themoderator needs to be adjective, knowledgeable on
the issue and skilled in-group dynamics.Participants are
normally paid a small sum for attending. The meeting is
typically held in pleasant surroundings and refreshments are
served.

Survey research
Surveys are best suited for descriptive research. Companies
undertake surveys to learn about people¶s knowledge, beliefs,
preferences and satisfaction, and to measure these magnitude
ingeneral population

Data Sources: The researcher can gather secondary data,


primary data, or both. Secondary data are data that were
collected for other purpose andalready exist some-where.
Primary data is gathered for specific purpose or for a specific
research project.

When the needed data do not exist or are out-dated,


inaccurate, incomplete or unreliable, theresearcher have to
collect primary data. Most marketing research project involve
some primarydata collection.

DATA ANALAYSIS AND FINDINGS

MARKETING STRATEGY

1. Burger King: is second to McDonald's in competition


of hamburger fast food chain. Although as
compared to McDonald's it has more number of
franchised restaurants but revenues are low due to
McDonald's big size.
2.Wendy's: is on third number of fast food chain
competition across the world. It is severely
affected by recession; it has quite small operation
margins as compare to McDonald's.
3.YUM! Brands: includes KFC, Taco Bell, Pizza Hut, and
Long John Silver's American Food Restaurants. China
market is dominated by YUM! Brands. It serves as a
biggest competitor while entering into the china
market. While McDonald'srun its business under one
flag. YUM! Has splits its resources into variety of
brands generating high revenue.
BCG Matrix
In this section we will use certain tools to evaluate
McDonald's current products.Strategic business
units are classified as stars, cash cows, question
marks or dogs.According to analysis initially when
McDonald's as a business unit was a star that has
high growth rate along with high market share, but
now it has turned into cash cows. Cash cows is that
strategic business unit in which has low growth rate
and but it is enjoying high business share or product.
McDonald's is an established strategic unit that now
needs less investment to garb its market share as
compared to other emerging business units.In the BCG
matrix Stars that depicts old traditional products
are now enjoying a high market share without
having too much changes as earlier. They have
reached at sustainable market position, whereas
McDonald's continues with increasing more
innovative food product that enjoys a great market
share as well as shows a high growth rate. But
there are a very few products which can be placed
in dogs.With the passage of time strategic business
units change their position. They complete their life
cycle. A product may starts as a question marks
then it succeeded and becomes stars. Then as time
passes they turned into cash cows and when they
reach to their maturity they ends up as dogs.
PROBLEMS OF MC DONALDS
CUSTOMERS MINDSET
Now in this present time , People are more concerned
for there health they wish to be more fit and fine.
Obviously, the reason for this increased awareness
because all types of information is available and
all reports and research have to link fast foods
with the growing fatness. Nw to encourage people
more about there health various diet programs
have been introduced.this is a major problem as
initially it gained reputation for supplying greasy
unhealthy food.
HUMAN RESOURCE PROBLEM
The employee turnover rate is very high to mangae
them all together is a very difficult task as there
is vast variety of culture and tradition. So lot of
attention, focus and consideration is required to be
given loyalty and harwork are promoted to be the
key success elements. Some persons working here
may not work in harmony and create problem but
overall company is able to blend all employersinto
global company culture.
LACK OF NEW PRODUCT LINE
The third problem that mc donalds faces is the
lack of new product variety,mcdonalds from
the last few years is just striving on its old
products the customers now are getting bored
with the same all food stuff ,where as the
other brands are coming out with different
new innovative products,due to this reason
also mc donalds is getting less customer
attraction.
CONCLUSION
It has been observed that the company has maintained
strong sales and developing new markets and also
adding the value of the brand.McDonalds tries to
adopt to varies cultures around the world and
expending themselves in almost every region with
varies varities traditional spices and flavour embedded
in all their hamburgers. Except burgers they are also
focusing in serving krushers, ice creams,mc puff and
many others.As the competition is tough and many
other companies like kfc subway are strong contenders
in this food serving business.So to be in the market for
long McD has been diversifying itself and is rregularly
increasing its items width.
BIBLIOGRAPHY

WEBSITES
 WWW.marketing91.COM
 WWW.studymode.COM
 WWW.icmrindia.org
 WWW.scribd.com

BOOKS
 MARKETING MANAGEMENT BY KOTLER,KELLY
 BASIC MARKETING-STRATEGIES BY WILLIAM PEREAULT

MAGAZINES
 B2B MARKETING