PROJECT ON

MAREKETING STRATEGIES OF MCDONALDS

IN PARTIAL FULFILLMENT OF THE DEGREE

BACHELOR OF MANAGEMENT STUDES
UNDER THE UNIVERSITY OF MUMBAI

SUBMITTED BY

ANAM PAGARKAR.

TYBMS

(ROLLNO. 8049)

PROJECT GUIDE

PROF.PRAJAKTA BAPAT

BACHELOR OF MANAGEMENT STUDIES

SEMESTER 6

PILLAI COLLEGE OF ARTS COMMERCE AND SCIENCE

DECLARATION

I, ANAM PAGARKAR student of BMS – Semester VI (2019-2020)

hereby declare that I have completed this project on
“McDONALD’S”.

The information submitted is True & Original to the best of my

knowledge.

PLACE:

DATE:

______________
Student’s Signature
ANAM PAGARKAR
NAME OF THE STUDENT

CERTIFICATE
This is to certify that MISS.ANAM PAGARKAR of T.Y.BMS has successfully
completed the project on “McDONALD’S” under the guidance of PROF.MRS
PRAJAKTA

The information submitted is true and original to the best of my knowledge

Project Guide Principal

Prof.PRAJAKTA DAFENE PILLAI

Course Co-ordinator
DR Deepak salve

External Examiner

McDonald’s
 ACKNOWLEDGEMENT

It gives me great pleasure to submit this project to the University of Mumbai as a part of curriculum
of my BMS course. I take this opportunity with great pleasure to present before you this project on
“McDonald’s” which is a result of co-operation, hard work and good wishes of many people.

No words can adequately express my sincere thanks to all those who have help me in making this
project a success.

Also I acknowledge my deep sense of gratitude towards my guide Professor Mrs.

PRAJAKTA

I am grateful to Mr. K.Y. shinde Principal of sant gadge Maharaj College of Commerce
& and Prof Mr. Dipak boricha BMS Co-ordinator (Bachelor of Management Studies)

My debt to those who have helped me in one way or the other is heavy indeed. I would like to
appreciate contribution of my family and friends who have extended their complete support in
completion of this project.

Last but not the least; I am thankful to the Almighty for giving me strength, courage and patience to
complete this project.

(ANAM PAGARKAR)

EXECUTIVE SUMMARY

McDonald’s is a globally successful fast-food restaurant. From the time of its birth it has
gain enormous success and is growing at the international level. The powerful entry through
franchisee system the standardization and adaptation strategy play an important role in gaining the
huge success of McDonald’s and brand image of McDonald’s.

McDonald’s strategy of standardizing their products on its preparation, techniques of

presentation along with the adaptation strategy has created a difference in McDonald’s as compared
to that of its competitors.

Marketing being my subject interest knowing the strategy of one of the most successful
company will really help me out. Thus, I have chosen McDonald’s as my study of subject for my
100 marks project in TYBMS. This has really helped me out to know lots of marketing techniques
and practically understand the McDonald’s strategy of standardization and adaptation.
[

STUDY:

In the project focus has been made on McDonald’s franchise in India. The challenges faced,
their target market, segmentation strategies. The supply chain of the company and its ability to
provide best quality food at the best cost. The 5 P’s of McDonald’s and the various schemes
provided by the company to its employees while working in McDonald’s and even after their
retirement from the company. McDonald’s as a service industry its life cycle is also studies. The
present strength and weakness of the company and the future opportunities and its future threats are
also study for better analysis of McDonald’s marketing in India.

CONCLUSION:

Studying McDonald’s and its marketing system has helped me a lot in understanding the
marketing subject in a better manner. And it will be helpful for me in near future.
CHAPTER 1
 INTRODUCTION
McDonald's Corporation is the world's largest chain of fast-food restaurants.

The McDonald’s Corporation is one of the most successful global restaurant chains around
the world. They have used effective management and global expansion strategies to enter new
markets and gain a share of the foreign fast food market. McDonald’s has achieved this enormous
success, its best practices in the global food industry, international growth trends and challenges,
and various lessons that have been learned from their expansion in foreign countries. This shows
how McDonald’s creates both customer and brand loyalty for their products and services.

In 1948 Brothers Maurice and Richard McDonald open a hot dog stand called the Airdrome
at the airport in Monrovia, California & in 1940 the brothers move the Airdrome building to San
Bernardino, California, where they open the first McDonald's restaurant. Although McDonald's did
not invent the hamburger or fast food, its name has become nearly synonymous with both.

The McDonald's Golden Arches logo was introduced in 1962. It was created by Jim
Schindler to resemble new arch shaped signs on the sides of the restaurants. He merged the two
golden arches together to form the famous 'M' now recognized throughout the world. Schindler's
work was a development of the stylized 'v' logo sketched by Fred Turner, which was conceived as a
more stylish corporate symbol than the Speedee chef character that had previously been used. The
McDonald's name was added to the logo in 1968.

McDonald's has its familiar golden arches logo; McDonald's has 31,886 restaurants
worldwide serving Big Macs, Chicken McNuggets, salads and French fries. Most restaurants offer
drive-thru service and some suburban locations offer outdoor playgrounds for children.
Approximately 70% of McDonald's restaurants are operated by independent franchisors. The
number of restaurants in the U.S. has reached saturation and most new McDonald's are now

McDonald's is the world's largest restaurant chain by revenue,serving over 69 million

customers daily in over 100 countries across 37,855 outlets as of 2018. Although McDonald's is
best known for its hamburgers, cheeseburgers and french fries, they also feature chicken products,
breakfast items, soft drinks, milkshakes, wraps, and desserts. In response to changing consumer
tastes and a negative backlash because of the unhealthiness of their food, the company has added to
its menu salads, fish, smoothies, and fruit. The McDonald's Corporation revenues come from the rent,
royalties, and fees paid by the franchisees, as well as sales in company-operated restaurants. According to
two reports published in 2018, McDonald's is the world's second-largest private employer with 1.7 million
employees (behind Walmart with 2.3 million employees)

Kroc and the McDonald brothers fought for control of the business, as documented in Kroc's
autobiography. The San Bernardino restaurant was eventually torn down (1971, according to Juan
Pollo) and the site was sold to the Juan Pollo chain in 1976. This area now serves as headquarters
for the Juan Pollo chain, and a McDonald's and Route 66 museum. With the expansion of
McDonald's into many international markets, the company has become a symbol of globalization
and the spread of the American way of life. Its prominence has also made it a frequent topic of
public debates about obesity, corporate ethics, and consumer responsibility.

In order to be a franchisee, an individual must have at least $175,000. There is about 2,400
owner/operators system wide. McDonald's is looking to boost sales by opening restaurants 24 hours
a day. An estimated 30% of store revenue comes from breakfast sales. The company has instituted a
dollar menu which includes a double cheeseburger in a bid to boost sales from value-oriented
customers.
 HISTORY

The first McDonald's restaurant was located in San Bernardino, CA in 1954 and operated by
two brothers Dick and Mac McDonald. Ray Kroc, a milk shake machine salesman, thought the
restaurant was great and purchased the rights from the brothers. Kroc opened his first McDonald's
restaurant in Des Plaines, IL in 1955 and preached cleanliness in restaurants. McDonald's would
grow quickly as it signed on franchisees to open restaurants around the country. McDonald's would
go public in 1965.

The Big Mac was introduced system wide in 1968 and was the brainchild of Jim Delligatti,
one of Ray Kroc's earliest franchisees, who by the late 1960s operated a dozen stores in Pittsburgh.
The Egg McMuffin was developed by owner operator Herb Peterson in 1973.

The site of the McDonald brothers' original restaurant is now a monument. With the
expansion of McDonald's into many international markets, the company has become a symbol of
globalization and the spread of the American way of life. Its prominence has also made it a
Frequent topic of public debates about obesity, corporate ethics and consumer responsibility.

In 2007, the company had record revenues of $22.8 billion, a 9% increase from the previous
year. Net income was $2.39 billion. McDonald's sold the Boston Market restaurant chain in 2007
and owns a stake in Chipotle Mexican Grill. In 2007, the Company completed the sale of its
businesses in Brazil, Argentina, Mexico, Puerto Rico, Venezuela and 13 other Countries in Latin
America and the Caribbean to a developmental licensee organization. An estimated 10% of all
workers have once worked at McDonald's in their lifetime.

The McDonald Brothers

Dick and Mac McDonald moved to California to seek opportunities they felt unavailable in
New England. Failing in the movie business, they subsequently proved successful in operating
drive-in restaurants. In 1948 they took a risk by streamlining their operations and introducing
their Speedee Service System featuring 15 cent hamburgers. The restaurant’s success led the
brothers to begin franchising their concept—nine becoming operating restaurants.
 FRANCHISEE

Franchising refers to the methods of practicing and using another person's philosophy
Of business. The franchisor grants the independent operator the right to distribute its products,
techniques, and trademarks for a percentage of gross monthly sales and a royalty fee. Various
tangibles and intangibles such as national or international advertising, training and other support
services are commonly made available by the franchisor. Agreements typically last five to twenty
years, with premature cancellations or terminations of most contracts bearing serious consequences
for franchisees.

McDonald’s does business in more than 30,000 restaurants in 119 countries around the
world serving 47 million customers each day. In many countries around the world it does not have a
presence and its current strategy is to focus on the markets where it does not do business. No firm
date has been established for the opening of new markets. In certain markets McDonald’s have a
presence but it is not seeking franchisees and it has included instructions regarding those markets.
McDonald’s sincerely appreciate the customers expressed interest in McDonald’s and their
continued patronage of our restaurants.

Ray Kroc Envisioned and Implemented A Successful

Franchise Model for McDonald’s
• This franchise model was first to develop a franchise at a large scale with consistent
experiences whatever location they attended.

• Attention to detail – Same set-up, process, and taste. It is said that “attention to detail was
one reason for the company's extraordinary success.”

• McDonald's is the largest Worldwide Franchised Food Service Organization.

• There was training at "Hamburger University" in Illinois. The franchise owners earned
certificates in "Hamburgerology with a minor in french fries". This helped with creating
consistent experiences at each McDonald's.

• McDonald's model had a different approach - A very supportive process to ensure the
franchisees excelled. It was noted that they only collected a fraction of its sales as a service
fee. This contrasted with the territorial model (which the parent company would sell
supplies to the franchise and a large franchise fee) that many other fast foods were utilizing.

• Schlosser notes how most experts would note that key to success with franchises is summed
up in one word “uniformity.”

• Ray Kroc was the one who streamlined operation and franchise to make it successful

• John F. Love writes, "The essence of Kroc’s unique but amazingly simple franchising
philosophy was that a franchising company should not live off the sweat of its franchisees,
but should succeed by helping its franchisees succeed.”

• Kroc was very engaged and involved with his franchisees, encouraging them to call him
directly about any issues. He stressed the importance of each McDonald's being consistent
so it'll reflect well on every other McDonald's that was visited by customers.

• Ray Kroc believed, “In business for yourself, but not by yourself.” He focused on getting
other people to help him achieve his dream of expanding McDonald's by approaching
franchisees. Through this expansion, Canada's first McDonald's was established in
Richmond, British Columbia in 1967
McDonald's Strategy
McDonald's Main Business Strategy Was And Still Is
Investing in Advertising & The Franchise Model
• “In 1967, McDonald's spent $2.3 million, or about 1 percent of its sales, on its first
national advertising campaign, which was an unheard amount for a fast-food chain.”
(22)
• Ray Kroc joined McDonald's in 1955, eventually taking it over and is the one attributed for
its rapid growth and success. He started to franchise and eventually bought McDonald's
from the McDonald's brothers in 1961. Ray valued advertising and marketing. “Kroc
believed that advertising was an investment that would, in the end, come back many
times over, and advertising has always played a key role in the development of the
McDonald's Corporation.” (14)
• McDonald's spends approximately 2 billion dollars in advertising – targeting different
groups including children. (26)
 • There are three objectives McDonald's has for advertising: make people aware of the item,
feel positive about the item, and remember the item. (27)
• McDonald's invested in advertising earlier in their establishment.
• McDonald's Happy Meals included toys like popular Teenie Beanie Baby Promotion in 1996
and 1997 and established a Global Marketing Alliance with Disney/Pixar in 1998 (Promoted
their movies). They advertised towards children targeting popular toys that children would
be drawn towards

McDonald's Advertises Towards Children & Families Producing Recogniable Icons

McDonald's Advertised Towards Children & The Family
• McDonald's marketed towards families and children it's presented as a fun place to go with
your family.
McDonald's Created The Recognizable Icon Of The Golden Arches
• In 1952, the McDonald brothers decided they needed a new building, so they closed down
their store to create a more eye-catching appearance that included the two yellow golden
arches we know today.

McDonald's Created The Recognizable Icon Of Ronald McDonald

• In 1967, Ronald McDonald was introduced by a franchise owner. Franchise owners realized
the importance of advertising and utilizing the icon as a clown to appeal to children.
• It is noted that by 1973, Ronald McDonald was more familiar to 96% of American children
than the name of their president. (15)
• Ronald McDonald ranks second in terms of the most recognizable fictional character after
Santa Claus among U.S. School Children. (21)
 CHAPTER

McDonald’s In India
A Locally Owned Company:
McDonald’s India
McDonald's is the world's leading food service retailer with more than 31,000 restaurants in
119 countries serving more than 50 million customers each day.
In India, McDonald's is a joint-venture company managed by two Indians. While Amit Jatia,
M.D. Hard castle Restaurants Pvt. Ltd. owns and spearheads McDonalds in west & south India,
McDonald’s restaurants in North & East India are owned and managed by Vikram Bakshi’s
Connaught Plaza Restaurants Private Limited.
Celebrating over 12 years of leadership in food service retailing in India, McDonald’s now
has a network of over 160 restaurants across the country, with its first restaurant launch way back in
1996. Prior to its launch, the company invested four years to develop its unique cold chain, which
has brought about a veritable revolution in food handling, immensely benefiting the farmers at one
end and enabling customers to get the highest quality food products, absolutely fresh and at a great
value.
Local Sourcing Is Key for Truly Indian Products:
McDonald's India is committed to sourcing almost all of its products from within the
country. For this purpose, it has developed local Indian businesses, which can supply them the
highest quality products required for their Indian operations. Fresh Lettuce is sourced from Pune,
Delhi, Nainital and Ooty; Cheese from Dynamix Dairies, Baramati, Maharashtra; fresh Buns from
Mrs. Bector Foods, Phillaur, Punjab & Khopoli, Maharashtra; Sauce from Mrs. Bector Foods,
Phillaur, Punjab, Chicken Patties, Vegetable Patties, and Veg.Pizza McPuff from Vista Processed
Foods, Taloja, Maharashtra. Dairy Products are sourced from Amrit Food, Ghaziabad, UP. All our
suppliers are HACCP certified.
Respect for the Indian Customs and Culture:
McDonald's worldwide is well known for the high degree of respect to the local culture.
McDonald's has developed a menu especially for India with vegetarian selections to suit Indian
tastes and culture. In line with its respect for local culture, India is the first country in the world
where McDonald’s does not offer any beef or pork items. McDonald's has also re-engineered its
operations to address the special requirements of vegetarians. Special care is taken to ensure that the
vegetable products are prepared separately, using dedicated equipment and utensils. This separation
of vegetarian and non-vegetarian food products is maintained throughout the various stages of
procurement, cooking and serving. So much so that the mayonnaise and the soft serve are also
100% vegetarian. Also in India, only vegetable oil is used as a cooking medium.
An Employer of Opportunity:
McDonald's India is an employer of opportunity, providing quality employment and long-
term careers to the Indian people. The average McDonald's restaurant employs 60-80 people from
crew to restaurant manager. McDonald's world class-training inputs to its employees can be seen in
the present close to 4000 employees currently in India.
Quality, Service, Cleanliness & Value
The USP of McDonald’s is Quality, Service, Cleanliness & Value for money which means
we focus on providing our customers high quality products, served quickly with a smile, in a clean
and pleasant environment at an affordable price. The McDonald's philosophy of QSC&V is the
guiding force behind its service to the customers. McDonald’s menu is priced at a value that the
largest segment of the Indian consumers can afford. McDonald’s does not sacrifice quality for value
– rather McDonald’s leverages economies to minimise costs while maximising value to customers.
Community Partnership
McDonald's believes in giving back to the community it serves. Wherever McDonald's goes,
it becomes a part of the community it operates in and contributes towards the development of the
locality. For example, McDonald's has introduced the concept of ‘Litter Patrols’ – McDonald's
employees go around the market every day, picking up garbage left behind not only by customers
from McDonald's restaurants but also by other visitors in the area. The result is a cleaner
neighbourhood.

A 50-50 joint venture partnership between McDonald’s Corporation [USA] and two
Indian businesses, McDonald’s began its journey in India in October 1996. Connaught Plaza
Restaurants Pvt. Ltd headed by Vikram Bakshi owns and operates the northern and eastern
operation which includes restaurants in New Delhi, Uttar Pradesh, Rajasthan, Punjab, Haryana,
West Bengal etc.

Amit Jatia’s company Hardcastle Pvt. Ltd. Owns and operates McDonald’s restaurants in
West and South India. HRPL has restaurants in Maharashtra, Madhya Pradesh, Karnataka and
Andhra Pradesh, Chennai and its growing rapidly.

The head office for Hardcastle Restaurants Pvt. Is spread across

two building in Mumbai, one at Bhulbhai Desai Road and the other at
Santa Cruz. The head office houses all the support departments required
to run the restaurants in the western and southern region.
These includes:-
Construction

It is involves in all construction and design related work for the stores as per McDonald’s
standards. It prepares project plans for new stores to be put to the management and implements the
same after approval.

Country Purchase

All the purchases of raw material for restaurants products are done by the country
purchase department team for both the Delhi and Mumbai markets. It works as a national supply
chain. The main aim is to purchase the best quality material from the authorized supplier and at
lowest possible cost. Once the material is ordered by a country

Purchase it first goes to the distribution centre and then to the restaurants according to their
requirement

Country Quality Assurance & Product Development

This department works closely with the country purchase department. It looks after the
quality of both raw material and of finished product. It develops new product for the menu based on
customer preference.

Finance & Information Technology

It looks after all the day to day financing accounting transaction and taxation related
activities of the application of Information Technology to the company processes.

Corporate Affairs

It associates with brand building and protection of the brands. It works closely with real
estate in doing feasibility studies for sites from a legal angle. It looks after license and liaison
activities of the company with outside agencies, i.e. regarding media

And government authority.

Legal & company Secretarial.

It helps the company sign legal deals for the new restaurants sites. It safeguards the
interest of the company and act as guardians of the company as regards to its legal functions. It
provides advisory support to the other departments as regards legal issues and ensures compliance
with applicable laws.
People Resources / Human Resources.

It conducts activities related to recruitment, selection, remuneration, retention, and matter

related to employee satisfaction.

Training, Learning & Development.

It is responsible for the training and Development of employees involved in operational

activity and the employees in the corporate office.
Operation

This department is responsible for the day to day functioning of the restaurants in a
profitable manner.

Marketing & Communication.

 It is responsible for brand positioning increasing brand awareness and thus resulting in
increased sales. It is also responsible for advertising, media relation and implementing various
product promotion schemes like Happy Meals, Value Meals, etc.
• MISSION STATEMENT • "McDonald's vision is to be the world's best quick service
restaurant experience. Being the best means providing outstanding quality, service,
cleanliness, and value, so that we make every customer in every restaurant smile."
• • McDonald’s core competency is providing convenience when people need and want to eat
fast food at prices that are competitive and provide best value for the customer's money. • It
focus on consistency of quality, production of food and use of raw materials all around the
world. CORE COMPETENCY AND SUSTAINABLE COMPETITIVE ADVANTAGE
• MCDONALD’S IN INDIA The India strategy was divided into four phases- • entry •
building the supply chain • aggressive growth • penetration. • In 1993 McDonald’s entered
India through a 100% subsidiary MIPL (McDonald’s India Private Limited) which formed
two 50:50 joint ventures (JV) with Vikram Bakshi of Connaught Plaza Restaurants to
manage North and East India; and Amit Jatia of Hardcastle Restaurants for West and South
India. The staff was trained in India, US and Indonesia to understand the intricacies of
business
• CHALLENGES IN ENTERING INDIAN MARKETS • Surveys commissioned by
McDonald’s, showed a large eating out market in India with an increasing propensity to
spend by customers. • Indians wanted to taste American fast food, but it could not be a
substitute for Indian food. Hence adapting McDonald’s menu to Indian tastes was critical if
they were to succeed in India. • One aspect unique to India was that half its population was
vegetarian for whom a separate menu had to be created.
• THE VEGETARIAN CUSTOMER • India has a huge population of vegetarians. To cater to
this customer segment, the company came up with a completely new line of vegetarian
items like McVeggie burger and McAloo Tikki. The separation of vegetarian and non-
vegetarian sections is maintained throughout the various stages.

• A Restaurant Management System (RMS) was created for efficient management of the
operations. • Separate food lines were maintained throughout the various stages of
procurement, cooking and serving. • Separate kitchens for vegetarian and non-vegetarian
food were created in the restaurants with different uniforms for the kitchen staff. • Separate
areas for preparation and wrapping were created. • The vegetarian menu was printed in
green and the non- vegetarian menu in purple to clearly distinguish the menus. • Customers
were given RMS brochures to assure them of clear segregation of vegetarian and non-
vegetarian food, and taken on kitchen tours to build their confidence, since the hard core
vegetarians usually did not prefer to enter places where non- vegetarian food was served.

• According to BCG Matrix McDonald’s is a star. The reason for this is its high market
growth and high market share in the Indian market. On the other hand KFC and Pizza Hut
are the cash cows because of their low growth rate and high market share. During past some
years KFC and Pizza Hut have lost their market growth because of the fact that they lost
their standard war to their competitor i-e McDonald’s. Another direct competitor of
McDonald’s is Subway. According to BCG Matrix it is a dog. Some of the reasons that are
responsible for its low market share and low market growth are the less expansion strategies
being followed by the company.
 Vision

Our vision is to be the world’s best quick service restaurant experience. That means that our
restaurant will be the best place for our customers to enjoy fast, friendly services …… fresh food
favorites…… a clean welcoming environment…… and a fun experience at a fair price.

OUR VALUES

Our vision is supported by a set of core values:

• We are dedicated to providing customers unparalleled levels of quality, service, cleanliness,

and value. It is what RAY KROC taught us.

• We are committed to our people because we know that a diverse team of well-trained
individuals working together is the key to our continued success.
 • We approach all aspects of our business with honesty and integrity.

• We always give back to the communities in which we do business.

We celebrate our achievements, yet we are never satisfied with our results.

“To be our customer –favorite place and way to eat.”

CHALLENGES IN ENTERING INDIAN MARKETS

➢ Regiocentricism: Re-engineering the menu – McDonald’s has continually adapted to

the customer’s tastes, value systems, lifestyle, language and perception. Globally

McDonald’s was known for its hamburgers, beef and pork burgers. Most Indians are barred
by religion not to consume beef or pork.

To survive, the company had to be responsive to the Indian sensitivities. So McDonald’s

came up with chicken, lamb and fish burgers to suite the Indian palate.

➢ The vegetarian customer – India has a huge population of vegetarians. To cater to this
customer segment, the company came up with a completely new line of vegetarian items
like McVeggie burger and McAlooTikki. The separation of vegetarian and non-vegetarian
sections is maintained throughout the various stages.
Failure To Understand Indian Values:
Undoubtedly, the launch of McDonald’s was a big news in India but due to some circumstances and
conditions it failed to prosper. It had high hopes of gaining success, but it failed to live up to it.
First and foremost, the Management did not understand the true meaning off ‘localise or
localisation’ The Management of the corporation had a western approach which they tried to follow
in India. The two countries India and The United States are different from each other in every
respect like economic, social, and others. People of the countries are different and so are their
cultures, values, morals, beliefs. So understanding the needs and wants of the local people was the
most important factor to achieve its aims. However McDonald’s failed to understand the mentality
and the way of thinking of the common men. Hindus are forbidden from eating beef but
McDonald’s items used beef and the Management believed that the beliefs of the common men will
be changed over a span of time. However, the attitudes and beliefs of the people never changed and
McDonald’s had to face a lot of criticism which reduced its popularity. So it failed to adapt the
culture and tradition of the local people of India. They introduced the Maharaja Mac to change the
tasting habits of the people and it took years to realise the craze for vegetarian food of Indian
citizen.
In protest to curb the use of ‘beef’ by Management, the Bharatiya Janata Party (BJP) protested
against it. Few outlets of McDonald’s situated in the Thane area of Mumbai were shattered by local
people.

Challenges Faced By The Management:

It wasn’t at all easy for the Management to understand the beliefs of Indian citizens. To execute the
task of slaughtering of cows and using meat created a big issue in the market. Slaughtering of cows
is considered to be an unholy act and is never supported by the Hindus. It was truly difficult for the
Management to carry out such tasks in India. According to the Hindu religion, the cows are
considered as sacred as mothers. The Hindus worships cows and slaughtering of thousand of cows
by the management of McDonald’s created a rage among them and they started to protest.
One of such biggest issues faced by the team was during the launch of any new product. During
any launch, McDonald’s could not predict or understand the demand of its food items because they
already had a bad reputation in the public. Indian citizens were also not sure about which
ingredients were being used to prepare the food items as they are strictly opposed to eating beef
products. Also they were confused about the kind of oil that was being used to make the product.
They had a belief that McDonalds used beef fat to fry the products instead of using vegetable oil. So
launching a product and getting a huge response was really a tough thing to achieve considering the
attitudes and believes of the Indians. Since they were unsure of the products or the ingredients, they
stopped eating or dinning out at this food joint. The Management started to face constant
challenges due to such problems.

Diverse Country:
Another reason of failing in India, companies like McDonald’s was very overconfident of
themselves and they believed that they understand India very well. India is a diverse country with
different people from different cultural background. So it is really not an easy task to understand a
country and its diversities. McDonald’s failed to understand the country and the values of the
people of India.

Indian Thinking Is Different From Westerners:

Also most of the population can speak English but the thinking of Indians is never the same as the
westerners. Although being a democratic country but the country is still run by the leaders. India’s
thoughts about leadership and hierarchy are very different as still a leader controls the whole
management. The leaders are considered to be the heads of the company and they are well known
for their personality. Difference in the way of working and operating can also be considered as one
of reasons for failure.

Rules And Regulations:

It is certainly difficult for a person who hails from western countries to come and operate its
business successfully in India. The rules and regulations which are followed in the western
countries are not the same which are followed in India. The westerners have a habit of following
the legal system and thus the rules and regulations related to it. But the Indians do not generally
work as the way the westerners do as Indians have a common hatred towards rules and they very
well know how to adapt to short cut processes to become successful. (Vasudevan, 2007).
The solution to these challenges is McDonald’s should try to sell different kinds of vegetarian items
instead of selling beef and pork products. As most of the Indians are vegetarian, they would
certainly enjoy their meal and also it won’t hurt the sentiments and the emotions of the common
men (Miller, 2012).
 SEGMENTATION, TARGETING AND POSITIONING

McDonald’s uses demographic segmentation strategy with age as the parameter. The main target

Segments are children, youth and the young urban family.

% of kids who influence what FMCG brand their

family buys

8
0
% 71%
 7
0
% 59%

6
0
% 52%

5
0
%

4
0
%

3
0
%

2
0
%

1
0
%

0
%

Biscuit Fruit
s Burgers & Pizzas Juices

As shown above, kids reign supreme in FMCG purchase related to food products. So to
attract children McDonalds has Happy Meal with which toys ranging from hot wheels to various
Walt Disney characters are given (the latest in this range is the toys of the movie Madagascar).

For this, they have a tie-up with Walt Disney. At several outlets, it also provides special
facilities like ‘Play Place’ where children can play arcade games, air hockey, etc

This strategy is aimed at making McDonald’s a fun place to eat. This also helps McDonald’s
to attract the young urban families wanting to spend some quality time while their children have fun
at the outlet.

To target the teenagers, McDonald’s has priced several products aggressively, keeping in
mind the price sensitivity of this target customer. In addition, facilities like Wi-Fi are also provided
to attract students to the outlets like the one at Vile Parle in Mumbai.
 “Mc Donald’s Mein Hai Kuch Baat” projects McDonald’s as a place for the whole family to

enjoy. When McDonald’s entered in India it was mainly perceived as targeting the urban upper class
people. Today it positions itself as an affordable place to eat without compromising on the quality of
food, service and hygiene. The outlet ambience and mild background music highlight the comfort
that McDonald’s promises in slogans like “You deserve a Break Today” & “Feed your inner child”.
This commitment of quality of food and service in a clean, hygienic and relaxing atmosphere has
ensured that McDonald’s maintains a positive relationship with the customers.
Customer Perception and Customer Expectation

Customer perception is a key factor affecting a product’s success. Many potentially

revolutionary products have failed simply because of their inability to build a healthy perception
about themselves in the customers’ minds. McDonalds being an internationally renowned brand
brings with it certain expectations for the customers.

Target Segment What is McDonald’s for me?

A Family with children A treat to children, a fun place to be for the children.
Urban customer on the Great taste, quick service without affecting the work
move schedule
Teenager Hangout with friends, but keep it affordable.

Customers expect it to be an ambient, hygienic and a little sophisticated brand that respects their
values. The customer’s expect the brand to enhance their self-image. Customer responses obtained
at the Vile Parle, Mumbai outlet confirmed the fact that they connect strongly with the brand.
However, fulfilling some of the customer expectations like a broader product variety provide
McDonald’s a great scope for improvement.

McDonaldizing the Suppliers

SUPPLY CHAIN
Supply Chain is one of the critical factors for the smooth functioning of any business. And
when we are talking about fast food business with McDonald’s as the subject of the study it can
expected a Supply Chain model of one of the highest precisions. It is this unmatched Supply Chain
Structure, which not just ensures on time delivery of raw materials and supplies to McDonalds but
also enables it to cut down on its cost and maximise profitability along with maintaining highest
quality standards of its products. The level of commitment of McDonalds can be gauged from the
fact that even before it set up its first restaurant in the country it infused Rs 400 Crore to set up its
delivery mechanism. McDonald’s initiative to set up an efficient

Supply chain and deploy state-of-art technology changed the entire Indian fast food industry
and raised the standards of performance to international levels.

As already mentioned, McDonalds had been working on its supply chain even before it
opened its first joint in the country. McDonalds, an international brand which was trying to
make inroads into the country, developed its Indian partners in such a manner that they stayed
with the company from the beginning. The success of McDonalds India was achieved by
sourcing all its required products from within the country. To ensure this, McDonalds
developed local businesses, which can supply it highest quality products. Today, McDonalds
India works with 38 different suppliers on a long term basis and several other stand alone
restaurants for its various other requirements. McDonald’s distribution centers in India came in
the following order: Noida and Kalamboli (Mumbai) in 1996, Bangalore in 2004, and the latest
one in Kolkata (2007). McDonald’s entered its first distribution partnership agreement with
Radha Krishna Foodland, a part of the Radha Krishna Group engaged in food-related service
business

The association goes back to July 1993, when it studied the nuances of McDonald’s
operations and requirements for the Indian market. As distribution centers, the company was
responsible for procurement, the quality inspection programme, storage, inventory
management, deliveries to the restaurants and data collection, recording and reporting.
 Value-added services like shredding of lettuce, re-packing of promotional items
continued since then at the centers playing a vital role in maintaining the integrity of the
products throughout the entire 'cold chain

Cold

Chain was one of the unique concepts of McDonalds supply chain in India, on which it had
spent more than six years to get the system into place. This system brought about averitable
revolution, immensely benefiting the farmers at one end and enabling customers at retail
counters get the highest quality food products, absolutely fresh and at great value. Through its
unique cold chain, McDonalds has been able to both cut down on its operational wastage, as
well as maintain the freshness and nutritional value of raw and processed food products. This
has involved procurement, warehousing, transportation and retailing of perishable food
products, all under controlled temperatures. The following list of suppliers, who build up the
major supply chain of McDonalds, reveal how this ‘Cold Chain’ works and contributes towards
the efficiency of McDonalds.

Dynamix Dairy Industries (Supplier of Cheese)

Dynamix has brought immense benefits to farmers in Baramati, Maharashtra by setting up a

network of milk collection centres equipped with bulk coolers. Easy accessibility has enabled
farmers augment their income by finding a new market for surplus milk. The factory has:

• Fully automatic international standard processing facility.

 • Capability to convert milk into cheese, butter/ghee, skimmed milk powder, lactose,
casein & whey protein and humanised baby food.

• Stringent quality control measures and continuous Research & Development

From farm two degrees Celsius in 90 minutes is the first step to quality. For example, the
Rs 262-crore Dynamix Dairy Industries, located in Baramati in Pune district of Maharashtra,
manufactures cheese slices for McDonald’s at 10 metric tone per month

. Dynamix has helped set up 15 bulk cooling centers throughout the district from which it
purchases milk. Each cooling centre, which is equipped with modern measuring and Testing
equipment and a large cooling tank, is not more than a few kilometers away from local dairy
farms. A farmer can deliver milk even twice a day on his bicycle and get a printed receipt on
the spot, which also lists the quality of the milk supplied by him as per fat content, colour and
solids content.

If the milk is sub-standard or adulterated, it is rejected on the spot. A batch of milk can
vary from one litre to 10 litres, or more. Each batch is mixed in one large stainless steel cooler
and chilled immediately to two degrees Celsius to stop bacterial growth and preserve freshness.

From this point onwards, until just before the burger is actually served in a McDonald’s
restaurant hundreds of kilometers away, the temperature is never allowed to increase.

When the refrigerated milk arrives at the Dynamix plant at Baramati, the milk in every
single tanker is thoroughly tested and rejected if found sub-standard, adulterated or
contaminated. The sophisticated testing lab can check fat content with an accuracy of 0.1 per
cent. It can even detect minute traces of pesticides or antibiotics administered to cows.
 This instant feedback and the rejection of the entire tanker-load forces farmers to
follow the best practices in terms of animal husbandry, use proper feeds, cut down on the
indiscriminate use of pesticides and animal medicines and completely stop even the slightest
attempts at adulteration

Trikaya Agriculture (Supplier of Iceberg Lettuce)

Implementation of advanced agricultural practices has enabled Trikaya to successfully grow

specialty crops like iceberg lettuce, special herbs and many oriental vegetables. Farm infrastructure
features:

• A specialized nursery with a team of agricultural experts.

• Drip and sprinkler irrigation in raised farm beds with fertilizer mixing plant.
 • Pre-cooling room and a large cold room for post-harvest handling.

• Refrigerated truck for transportation.

Trikaya Agriculture, a major supplier of iceberg lettuce to McDonald's India, is one such
enterprise that is an intrinsic part of the cold chain. Exposure to better agricultural management
practices and sharing of advanced agricultural technology by McDonald's has made Trikaya
Agriculture extremely conscious of delivering its products with utmost care and quality.

Initially lettuce could only be grown during the winter months but with McDonald's expertise in
the area of agriculture, Trikaya Farms in Talegaon, Maharashtra, is now able to grow this crop all
the year round. McDonald's has provided assistance in the selection of high quality seeds, exposed
the farms to advanced drip-irrigation technology, and helped develop a refrigerated transportation
system allowing a small agri-business in Maharashtra to provide fresh, high-quality lettuce to
McDonald's urban restaurant locations thousands of kilometers away. Post-harvest facilities at
Trikaya include a cold chain consisting of a pre-cooling room to remove field heat, a large cold
room and a refrigerated van for transportation where the temperature and the relative humidity of
the crop is maintained between 1º C and 4º C and 95% respectively.

Vegetables are moved into the pre-cooling room within half an hour of harvesting. The pre-
cooling room ensures rapid vacuum cooling to 2º C within 90 minutes.

The pack house, pre-cooling and cold room are located at the farms itself, ensuring no delay
between harvesting, pre-cooling, packaging and cold storage. With this cold chain infrastructure in
place, Trikaya Agriculture has also a plan to export this high value product to other international
markets, especially to McDonald's Middle East and Asia Pacific operations.

McDonald's expertise in packaging, handling and long-distance transportation has helped

Trikaya to do trial shipments to the Gulf successfully.
 In addition to export, McDonald's assistance has enabled Trikaya Agriculture to supply this crop

to a number of star-rated hotels, clubs, flight kitchens and offshore catering companies all over
India.

Vista Processed Foods Pvt. Ltd. (Supplier of Chicken and Vegetable range of
products including Fruit Pies)
A joint venture with OSI Industries Inc., USA, McDonald's India Pvt. Ltd. and Vista
Processed Foods Pvt. Ltd., produces a range of frozen chicken and vegetable foods. A world
class infrastructure at their plant at Taloja, Maharashtra, has:
• Separate processing lines for chicken and vegetable foods.

• Capability to produce frozen foods at temperature as low as -35 Degree Celsius. To

retain total freshness.

• International standards, procedures and support services.

Vista Processed Foods Pvt. Ltd., McDonald's suppliers for the chicken and vegetable
range of products, is another important player in this cold chain. Technical and financial support
extended by OSI Industries Inc., USA and McDonald’s India Private Limited have enabled
Vista to set up world-class infrastructure and support services. This includes hi-tech
refrigeration plants for manufacture of frozen food at temperatures as low as - 35° C. This is
 vital to ensure that the frozen food retains it freshness for a long time and the 'cold chain' is
maintained. The frozen product is immediately moved to cold storage rooms. With continued
assistance from its international partners, Vista has installed hi-tech equipment for both the
chicken and vegetable processing lines, which reflect the latest food processing technology (de-
boning, blending, forming, coating, frying and freezing). For the vegetable range, the latest
vegetable mixers and blenders are in operation. Also, keeping cultural sensitivities in mind, both
processing lines are absolutely segregated and utmost care is taken to ensure that the vegetable
products do not mix with the non-vegetarian products. Now, at Vista, a very wide range of
frozen and nutritious chicken and vegetable products is available. Ongoing R&D, both locally
and in the parent companies, work towards innovation in taste, nutritional value and
convenience. These products, besides being supplied to McDonald's, are also offered to
institutions like star-rated hotels, hospitals, project sites, caterers, corp, corporate canteens,
schools and colleges, restaurants, food service establishments and coffee shops. Today,
production of better quality frozen foods that are both nutritious and fresh has made Vista
Processed Foods Pvt. Ltd. a name to reckon within the industry.

Radhakrishna Foodland (Distribution Centres for Delhi and Mumbai)

An integral part of the Radhakrishna Group, Foodland specializes in handling large volumes,
providing the entire range of services including procurement, quality inspection, storage, inventory
management, deliveries, data collection, recording and reporting. Salient strengths are:

• A one-stop shop for all distribution management services.

• Dry and cold storage facility to store and transport perishable products at temperatures up to
-22 Degree Cel.
• Effective process control for minimum distribution cost.

McDonald's local supply networks through Radhakrishna Foodland, which operates

distribution centres (DCs) for McDonald's restaurants in Mumbai and Delhi. The DCs have focused
all their resources to meet McDonald's expectation of 'Cold, Clean, and On-Time Delivery' and
plays a very vital role in maintaining the integrity of the products throughout the entire 'cold chain'.
Ranging from liquid products coming from Punjab to lettuce from Pune, the DC receives items
from different parts of the country. These items are stored in rooms with different temperature zones
and are finally dispatched to the McDonald's restaurants on the basis of their requirements. The
company has both cold and dry storage facilities with capability to store products up to -22º C as
well as delivery trucks to transport products at temperatures ranging from room temperature to
frozen state.

Amrit Food (Supplier of long life UHT Milk and Milk Products for Frozen
Desserts)
Amrit Food, an ISO 9000 company, manufactures widely popular brands –
Gagan Milk and Nandan Ghee at its factory at Ghaziabad, Uttar Pradesh. The
factory has:
• State-of-the-art fully automatic machinery requiring no human contact with product, for
total hygiene.
• Installed capacity of 6000 ltrs/hr for producing homogenized UHT (Ultra High Temperature)
processed milk and milk products.
• Strict quality control supported by a fully equipped quality control laboratory.

Process & Capabilities

• State-of-the-art dairy processing equipment from Denmark and France.
• Deploys modern technique of Ultra Heat Treatment (UHT) with direct steam
infusion. Only of its kind in India.
• Aseptic packaging in co-extruded multi-layer PE & EVOH film.
• The UHT process and aseptic packaging ensures bacteria free products.
• Milk and milk products can be consumed directly from the pack.
• Long shelf life milk & milk products under ambient storage conditions till pack is
opened.

Quality Management System

At Amrit, utmost importance is given to Quality Management Systems. Our raw milk and other
ingredients acceptance procedures are one of the most stringent in the industry. We give due

emphasis to food safety tools such as GMP (good manufacturing practices) & HACCP (Hazard
Analysis and critical control points) programs on regular and on-going basis. We are an ISO 22000
CERTIFIED and McDonald's audited SQMS (Supplier Quality Management system) certified Unit.

All suppliers adhere to Indian government regulations on food, health and hygiene while
continuously maintaining McDonald's recognized standards. As the ingredients move from farms to
processing plants to the restaurant, McDonald's Quality Inspection Programme (QIP) carries out
quality checks at over 20 different points in the Cold Chain system. Setting up of the Cold Chain
has also enabled it to cut down on operational wastage

Hazard Analysis Critical Control Point (HACCP) is a systematic approach to food safety
that emphasizes prevention within its suppliers' facility and restaurants rather than detection through
inspection of illness or presence of microbiological data. Based on HACCP guidelines, control
points and critical control points for all McDonald's major food processing plants and restaurants in
India have been identified. The limits have been established for those followed by monitoring,
recording and correcting any deviations. The HACCP verification is done at least twice in a year
and certified.

The relationship between McDonald's and its Indian suppliers is mutually beneficial. As
McDonald's expands in India, the supplier gets the opportunity to expand his business, have access
to the latest in food technology, exposure to advanced agricultural practices and the ability to grow
or to export. There are many cases of local suppliers operating out of small towns who have
benefited from their association with McDonald's India

CHAPTER 4
MARKETING MIX

MCDONALDS MARKETING MIX (5 P’S)

After segmenting the market, finding the target segment and positioning itself, each company
needs to come up with an offer. The 5 P’s used by McDonalds are:

1. Product

2. Place

3. Price
 4. Promotion

5. People

Product: How should the company design, manufacture the product so that it enhances the
customer experience?

Product is the physical product or service offered to the consumer. Product includes certain
aspects such as packaging, guarantee, looks etc. This includes both the tangible and the non-
tangible aspects of the product and servicE

McDonalds has intentionally kept its product depth and product width limited. McDonalds
studied the behavior of the Indian customer and provided a totally different menu as compared to its
International offering. It dropped ham, beef and mutton burgers from the menu. McDonald's success
worldwide has been attributed to the ‘“Think Global, Act Local and Sell like a Retailer” philosophy.
McDonald’s followed this international mantra while opening doors to the Indian subcontinent.
With respect to the cultural and traditional sentiments, not only did McDonalds not serve it’s most
popular product The BIGMAC (a beef burger) but also developed an egg-less mayonnaise for the
first time in the worldwide system.
 To suit the Indian palette, the McAloo Tikki™ burger, Veg. Pizza McPuff™ and Chicken
McGrill™ burger were among other offerings that were formulated and introduced using spices
favored by Indians. Furthermore, each restaurant kitchen was designed to maintain separate
Vegetarian and Non-Vegetarian food counters.

Reasons for introducing the products

• Beef which was a taboo in the Indian market was planned to replace by filling of Aloo Tikki
to match up with the Indian culture.
• Salad sandwich was introduced targeting the people who are more conscious about health.
• The introduction of jain salad in the outlet keeping the Jain people rituals of not eating
ginger, onion, potatoes etc.
• Seeing to the Indian mentality of having wheat chapattis led to the idea to introduce paneer
salsa wrap and chicken Mexican wrap.
• Filet-o-fish was introduced keeping in mind the demand of the sea food lovers having no
competitors in the segment before.

Place: where should be the product available and the role of distribution channels
The place mainly consists of the distribution channels. It is important so that the product is available
to the customer at the right place, at the right time and in the right quantity. Nearly 50% of U.S.A is
within a 3 minute drive from a McDonald’s outlet.
There is a certain degree of fun and happiness that a customer feels each time he dines at
McDonalds. There are certain value propositions that McDonalds offer to its customers based on
their needs. McDonalds offers hygienic environment, good ambience and great service. Now
McDonalds have also started giving internet facility at their centres and they have been playing
music through radio instead of the normal music. There are certain dedicated areas for children
where they can play while their parents can have some quality time together.

Price: What should be the pricing strategy?

Pricing includes the list price, the discount functions available, the financing options available etc.
It should also take into the consideration the probable reaction from the competitor to the pricing
strategy. This is the most important part of the marketing mix as this is the only part which
generates revenue. All the other three are expenses incurred. The price must take into consideration
the appropriate demand-supply equation.
McDonalds has certain value pricing and bundling strategies such as happy meal, combo meal,
family meal etc. to increase overall sales volumes.

Branded Affordability: Having established the image of

comfort and familiarity, it now was

Time to add new people to the fold. The Indian consumers continued to perceive McDonald’s as an
expensive eating out option. The challenge was to overcome this perception and be accepted as an
affordable brand. While the patented products like McVeggie™ and McChicken™ continued to
cater to the patrons, the company needed to broaden the audience base to further entrench into the
market.

Time to add new people to the fold. The Indian consumers continued to perceive McDonald’s as an
expensive eating out option. The challenge was to overcome this perception and be accepted as an
affordable brand. While the patented products like McVeggie™ and McChicken™ continued to
cater to the patrons, the company needed to broaden the audience base to further entrench into the
market.

McDonald’s found success in its strategy of Branded Affordability and introduced the “ HAPPY
PRICE MENU JUST FOR Rs 20”. Engaging and Memorable campaigns were created to establish
the branded affordability communication The ‘Bahanas’, the yesteryears prices, or ‘bees mein full
dhamal’!
Promotion: What is the suitable strategy and channels for promotion of the product?

The various promotion channels being used by McDonald’s to effectively communicate the
product information are given above. A clear understanding of the customer value helps decide
whether the cost of promotion is worth spending.

There are three main objectives of advertising for McDonald’s are to make people aware of
an item, feel positive about it and remember it. The right message has to be communicated to the
right audience through the right media. McDonald’s does its promotion through television,
hoardings and bus shelters. They use print ads and the television programs are also an important
marketing medium for promotion.

Some of the most famous marketing campaigns of McDonald’s are:

• “You Deserve a break today, so get up and get away- To McDonald’s”
• “Aap ke zamane mein, baap ke zamane ke daam”.
• “Food, Folks, and Fun”
• “I’m loving it”.

Familiarity breeds’ comfort:

The first step for the brand was to establish itself as a familiar,
comfortable place. Taking a cue from the Indian family values, the year
2000 saw the first ever McDonald’s ad aired in the country. A child, who
is unable to recite a poem and suffers stage fright, but when he enters
McDonald’s, he easily recites it when in the comfortable familiar
environment of McDonalds.

Working on the insight – similarly when his family moves into a new place, the child misses
all that has always been so familiar and dear. He then has the comfort of something that is dear and
familiar to bring a smile to his face. McDonald’s was successful in creating an image of a warm and
comfortable ambience through its

Ads. ‘McDonald’s Mein Hai Kuch Baat’: Making McDonalds the consumers’ favorite place and
way to eat. While kids and families were key, it was also important to talk to the generation that had
not grown up on McDonald’s burgers and fries. An adult who works with logic and
Reasoning would need a reason tempting enough. And what better way to talk to them than talk
about McDonald’s core competence – food!

Even in Dreams:

McDonald’s realized that the way to draw more consumers would be to increase the
visibility of the brand and its products. The more a person saw food, the greater his urge would be
to try it out. The company came up with its next round of campaign to address and reflect this. The
campaign showed different people dreaming about McDonald’s. It depicted how the consumers
were totally involved with McDonald’s and the food. New product stories delivered in a memorable
and engaging approach. It was imperative for the success of the brand to be ‘Indianized’ – to
continuously speak to consumers in their ‘language’ without taking away from its core American
parentage. ‘From tears to smiles’ - campaigns were produced to introduce new, scrumptious
products.

Let go the child within you:

The general brand perception of McDonald’s in India was that of a place for kids. While the
campaigns had worked in the past, targeting kids, McDonald’s recognized the fact that it could not
always depend on the kids’ niche. When kids move up the consumption chain, there is a possibility
of losing out on consumers. Moreover, the family outings with children only happen over the
weekends and holidays. It was imperative to rope in adults who would patronize the brand over the
weekends. Consequently, the next series of campaigns were targeted to drive in adult traffic to break
away from the perception. The ad depicted a father being invited to a birthday party at McDonald’s.
He is not at ease with the idea of visiting McDonald’s since he perceives it as a kids place. His child
reminds him of the McCurry Pan™, Filet-o-Fish™ that he would be able to relish at the birthday
party. The food boosts the father to go to the party, where to his astonishment is his boss’ party. The
ad asserted that people celebrate birthdays and occasions at places they are comfortable in!
People: How to converge the benefits of internal and external marketing?

McDonald’s understands the value of both its employees and its customers understands the
fact that a happy employee can serve well and result in a happy customer.

McDonald continuously does Internal Marketing. This is important as it must precede external
marketing. This includes hiring, training and motivating able employees. This way they serve
customers well and the final result is a happy customer.

The level of importance has changed to be in the following order (the more important people are at
the top):
 1. Customers

2. Front line employees

3. Middle level managers

4. Front line managers

The punch line “I’m loving it” is an attempt to show that the employees are loving their work at
McDonalds and will love to serve the customers.

McDonald's India is an employer of opportunity, providing quality employment and long-term

careers to the Indian people. The average McDonald's restaurant employs 60-80 people from crew
to restaurant manager. McDonald's world class-training inputs to its employees can be seen in the
present close to 4000 employees currently in India.
 CHAPTER 5

MC EMPLOYEES
Employee benefits

MC DONALD’S provides you with many opportunities to talk to your management on any
topic related to your employment/work. To begin with we follow an “open door” policy Which
means that all team members at MC DONALD’S are approachable at any time. Crew meetings are
held every month in your restaurant where all the store related issues are discussed. Besides this you
will also have rap session and meet 5 where you can express your view candidly.

RAP SESSION:-

Rap session are small informal discuss between crew and management for the purpose of
discussing ideas, suggestions and problems. These sessions will be held about once every three
months or whenever needed by the store manager or a member of the management team. Rap
sessions are an opportunity for the crew to make their views known to the company. You will be
paid for attending a rap session.

Opinion survey:-

About once a year we will ask all employees to complete a confidential

questionnaire relating to their work and the operation of the store, the answers will help us to
improve our management of the restaurant and conditions of employment.

EMPLOYEE BENEFITS FOR STAFF

Medical
McDonald’s offers three Preferred Provider Organization (PPO) medical plan options that use the
First Health network of providers. The plans have different benefit levels and pay more for in-
network covered costs than for out-of-network covered costs. All three of the plans feature a
prescription drug program and an unlimited lifetime benefit maximum. In addition, the McDonald's
medical plans cover preventive care, including annual physical exams for employees and covered
family members (up to 28,400 per person per year), well-baby care, and child immunizations and
inoculations. In some areas, HMOs are also available.
Vision Supplement
Employees enrolled in one of the four McDonald's medical plans may elect the vision supplement
plan, which provides coverage for eyeglasses and contact lenses, plus a mail-order contact lens
replacement program, and discounts on Lasik laser vision correction surgery.
Dental
Our dental plan allows employees to see the dentist of their choice and covers a wide range of
dental services. Preventive services, including sealants for children, are covered at 90% with no
deductible. Basic and major services are covered at 80%, after a deductible. The plan also covers
50% of eligible orthodontia expenses for adults and children after a one-time deductible.
Spending Accounts
The flexible spending accounts let employees set aside pre-tax dollars to pay for certain health care
and day care expenses. Employees can set aside up to RS 3,97,600 in the Healthcare Spending
Account for expenses not covered or only partially covered by their medical and dental plans. For
day care expenses that allow employees or their spouses to work, they can set aside up to RS
3,55,000 in the Day Care Spending Account.
Short and long-term disability
Both short and long term disability coverage is provided at no cost to employees. Short term
disability provides benefits if an employee cannot work for more than 10 consecutive days; how
long benefits continue depends on the nature of the employee's disability and years of service. Long
term disability coverage replaces 60% of the employee's monthly base salary while he or she is
disabled.
Employee and dependent life insurance
McDonald's provides basic life insurance of two times the employee's base salary at no cost to the
employee. In addition, employees can purchase additional life insurance coverage for themselves
(either term or universal life). Basic dependent life insurance for their spouse or domestic partner
and/or children is also provided at no cost to the employees. And, if an employee elects optional life
insurance for himself/herself, he/she can purchase additional dependent life insurance coverage.
Accidental death and dismemberment insurance
AD&D covers employees if they die or are seriously injured in an accident. McDonald's provides
AD&D coverage equal to two times the employee's base salary. If the employee elects additional
life insurance coverage, he/she automatically has an equal amount of optional AD&D coverage at
no extra cost.
Travel and business travel accident insurance
McDonald's provides travel accident coverage of two times an employee's base salary at no cost to
employees. Travel accident insurance pays benefits in the event of an accident.

Facilities

Crew room

This room is provided for the employee for recreation and rest during the break time. The
employee can study, listen to music, and get trained in this room.
Breaks

It is not easy to maintain quality, service, and cleanliness. It take hard work and hustle. To keep
energy level high, all the crew member working above five consecutive hour are eligible for an
unpaid break of an hour.

Employee Meal

One of the best things about working for McDonald’s is for food. Employees can enjoy quality
nutritious food at world standard hygiene levels. It is free to managers and crew. All the meals
consumed must be recorded and consumed in the restaurants itself.

Locker Facility

Lockers are available for the employees use at the restaurants for keeping the personal
belongings in a safe and secure place during the shift.

Other Facilities
In addition to the above facilities the employee also enjoys with the team member during the
yearly store outing and various inter-store activities arranged system-wise and patch wise. These
activities are fun and provide opportunity to have a good time and know fellow employees better.

Employee recognition
Incentives
All the crew at McDonald’s have the opportunity to get McDonald’s branded
merchandise. Each restaurant is allotted “Mahabucks” every month based on monthly store
allocation and various inter-store competitions. Mahabucks is a crew incentive programme where
the Mahabucks coupons can be redeemed for the set of utility items available for that year.
 The employee have the opportunity to earn the Mahabucks by becoming face of the
month, face of the quarter, various rewards organized by the stores and through various inter store
competitions.

Employee Referral Programme

The employee can refer any friend who is interested in working at McDonald’s for a crew
member’s job at any of the McDonald’s store. The employee receives an incentive after the referred
crew member completes 3 months in the organization.

Graduate Career Advancement Programme

McDonald’s believe that investing in the people is one of the best ways to build the brand
and assure customer loyalty. Crew Member who completes their graduation are recognized for their
academic growth by putting them on training programme which help them to become manager
faster.

Retirement Benefits

Employee provident fund

All the employee are eligible for the provident fund scheme as per the company’s rule.
Provident fund is a retire benefit provided to every employee of McDonald’s. Every employee
contribute 12% of his basic salary to his/her PF account. There is an equal contribution by the
Employer.
However 8.33% of the employer’s contribution is deposited to the Employee’s Pension
Fund and the rest goes to the Provident Fund.

Employee State Insurance

 All the crew member are eligible for the Employee State Insurance as per the ESI rule. This
benefit is provided to the employee for free medical treatment in case of sickness, maternity, and
employment injury. The employee contribute 1.75% of his gross salary whereas the employer
contributes 4.75%

Bonus

Depending upon the law applicable at the relevant time the employee will receive an amount
of 8.33%of the basic salary earned during the financial year.

Gratuity

All the full time employee who have completed 5 years of continuous employment with the
company are eligible for gratuity. The employee will receive an amount of 15 days basic salary for
every week worked. The amount is given at the time of separation or retirement from the company.

CHAPTER 06

MCDONALD’ S IN SERVICE INDUSTRY

THE MCDONALD’S EXPERIENCE

Marketing in a services industry is becoming an increasingly complex challenge. The

paradigms of service marketing demand a passionate understanding of customer expectations and
perceptions, and linking them to product design & delivery as well as operational planning. This is
where McDonald’s has excelled due to its ability to successfully integrate the customer’s
perspective in its products and operations in a comprehensive manner. The revamped menu in India
is an example of McDonald’s strategy of integrating the customer’s perspective in its products. And,
the operational integration is evident from McDonald’s emphasis on its suppliers as its customers as
well as its treatment of its consumers as co-producers of services.

The ultimate aim of Service Marketing is not just to become a Service Leader but to create a
Service Brand. The Service Delivery Process is the key to achieving this aim of Service Marketing.
Service Delivery
Process
 During the Service Delivery Process, each moment of interaction between the firm and the
customer, called “Moments of Truth”, helps understand the opportunities that a firm has to win or
lose the customer. For example, these “moments of truth” are created for McDonald’s every time
the guard at the McDonald’s outlet meets the customer, every time an attendant takes down the
order from the customer waiting in the queue, every time the cashier interacts with the customer,
every time the attendant helps the customer guided the customer towards the table, every time the
attendant cleans the tables etc.

“Moments Of Truth” – The Service Encounter

SERVICE
PROVIDER Service Delivery Points
 Managing these “moments of truth” is a great challenge in Service Marketing especially due
to customer’s involvement as a co-producer of services (e.g. McDonald’s self-service concept
wherein the customer not only collects the order but also cleans the table after consuming the food).
However, McDonald's has been able to create a great experience for its customers by understanding
the nature of the entire Service Delivery

Process and the various stages in the process that are exposed to the customers.

Transparency in the processes at its outlet has helped McDonald’s bring the back office in
its Outlet at the front so that the customer is able to know the operations and provide feedback on
service design improvements.

Internal Customer Focus is equally important as External Customer Orientation in order to

win these “moments of truth”. McDonald’s focus on its People and their service delivery methods
therefore plays a very important role in creating a successful Service Brand. The quality and the
consistency of the service delivered by McDonald’s have been greatly enhanced by the combination
of the factors mentioned above. This has helped McDonald’s become Service Leader and a
successful Service Brand. This is evident from the fact that very few of its customers opt for take-
home parcels or home deliveries while most of them prefer to eat at the outlet and enjoy the
McDonald’s experienc

McDonald's became the leader in the fast food industry with their strong focus on customer
service, response to competition, and use of marketing techniques early on in their
development. Please note that we are not proposing that the tactics used by McDonald's are the right
or wrong way to strategically or ethically achieve growth.
IMPORTANCE OF PLC IN MCDONALDS

The requirements of customers change over time and thus the product offering has to be
changed accordingly. What is the fashion today may be out of market within few weeks. Thus
continuous innovation is required.

To counter these changes McDonalds has continuously introduced new products and has phased out
the old ones which were at the decline stage of their PLC. The introduction is timed such that the
new product does not cannibalize the product already in the maturity or growth stage. Thus the
secret lies in getting profits with different products in the different stages of the PLC.
A perfect example of revitalizing a product in decline phase

The French Fries have been an important part of the McDonalds menu worldwide. But now
it was in the stage of decline and was actually not generating proper return. In an attempt to
revitalize it, a new variant was introduced namely Shake Shake Fries. This is being served with
chatpata spice mix which has resulted in increase in the sales of French Fries and has elevated it
from to the decline stage. This is used to delay the decline of a well-established product which has
the potential of generating further revenue.

Marketing audit can easily explain as a very important part of a marketing planning. It is a
very valuable process which is carried out at regular intervals during the actual marketing planning
in an organisation. A marketing audit has a lot to offer for the marketing planning process through
the various external and internal factors. There are a number of tools and techniques that are used
during a marketing audit. SWOT Analysis is one of the most valuable tools of marketing audit
which explains organisations Strengths, Weakness, Opportunities and Threats analysis. This tool
offers a lot of help to the decision makers and is used at the beginning of the marketing audit in an
organisation. The SWOT analysis brings a lot of advantages as well as it has some drawbacks.
Some of the drawbacks of SWOT analysis are that it is very subjective and cannot be relied upon
too much. Though, it has always been recommended that the SWOT analysis be used as a guide in
the marketing planning process and not as an only solution to the different problems.

ANALYSIS

Competitors Analysis

McDonald’s has been a leading fast-foods outlet in Vile Parle. But the outlet understudy has other
competitors eating away into its market share. In addition to its traditional rivals—KFC, Dominos,
Pizza Hut—the firm encounters new challenges. Jumbo King competes using a back-to-basics
approach of quickly serving up burgers for time-pressed consumers. On the higher end, the KFC
has become potent competitor in the quick service field, taking away customers from McDonald’s.
Perhaps in the new environment, fast, convenient service is no longer enough to distinguish the
firm. At this time, a new critical success factor may be emerging: the need to create a rich,
satisfying experience for consumers. This brings us to service and experience based competition
which McDonald’s can use for competitive advantage against Jumbo King. Keeping in mind the
demographics of the area, McDonald’s has Wi-Fi enabled the outlet to cater to the student
community. It is for this overall “Food, Fun & Folks” experience that customers pay a premium
over the other competitors.

Competition also reduces product lifecycle; inducing firms to revise their products portfolios
and to revisit their product market to understand changing needs, expectations and perception of
different market segments. The new McBreakfast would be introduced between 6 to 11 am as a

pilot project. This would open up a whole new revenue stream for McDonald’s by tapping into the
student and working population by providing a healthy and wholesome breakfast. This shows how
demographic shift can affect the demand for products and services. McDonald’s has anticipated
these changes to maintain its competitive edge.

• Privately-owned Burger King is McDonald's closest competitors.

 • Yum! Brands operates names like Taco Bell, KFC, and Pizza Hut with more than 49,000
locations worldwide.
• Subway is the largest restaurant chain in the world in terms of size, but sales have been
sliding since 2012.
• Chipotle was formed as a spinoff from McDonald’s with a 2006 IPO and offers a range of
Mexican-inspired menu items.

TWO DIMENSIONAL PERPECTUAL PLANNING:-

SWOT ANALYSIS

Mc Donald’s has been outperforming the market this year and recently set a new all-time high. A
SWOT analysis -- a look at strengths, weaknesses, opportunities, and threats -- can help assess

whether the fast-food giant can keep the growth on a high-calorie diet.

Strengths:
 • McDonald's has successfully rolled out new items like coffees, smoothies, and Angus
burgers, expanding the range of menu choices.
• With a strong product offering, the company has grown income throughout the recession,
notching strong increases in same-store sales.
• Operations are spread around the world, meaning the company is not exposed to just one
currency or economy.

Weaknesses:
• It will be harder and harder to find prime locations to build a set of golden arches. The India
is saturated with its restaurants, so growth will have to occur internationally, posing
potential cultural challenges.
• While the annual dividend hikes are likely to continue, the dividend growth rate has been
slowing and will probably continue to slow or level off.

Opportunities:
• There are opportunities for new restaurants outside the India, and McDonald's has been
taking advantage of them. China is a great opportunity for the company, as is much of Asia.
• Menu innovations are limited only by imagination.
• Low interest rates provide cheap capital for growth. In addition to dollar-denominated debt,
McDonald's recently became the first foreign company to issue yuan-denominated bonds in
Hong Kong.

Threats:

• Governments are considering regulations targeting fast food.

• McDonald's faces competition from strong peers such as recent Kfc Yum! Brands and
Burger King.
• New product rollouts often have to go head-to-head with established players like
Starbucks coffee or Jamba smoothies.
• Commodity price increases could increase costs while a weak economy limits the ability to
pass the price hikes through to consumers.
 CHAPTER 7

Exhibits

1. McDonald’s Indian Menu

Vegetarian Non Vegetarian

McVeggie Chicken Maharaja Mac

McAlooTikki McChicken Burger

Paneer Salsa Wrap Chicken Nuggets

Salad Sandwich Wrap Chicken Mexican

Potato Wedges Fillet-O-Fish

Pizza McPuff

QUESTIONNAIRE:-
1. Which is your favorite product at Mc Donald’s?

2. Is the product line in Mc Donald’s adequate?

3. What is the main problem you faced in Mc Donald’s?

4. Which area do you think needs the most improvement?

5. What is the first thing that strikes your mind about Mc Donald’s
6. What do you like the most?

7. What did you dislike the most?

8. Why did you choose Mc Donald’s over other brands?

9. How is the customer service in Mc Donald’s?

10. Which competitors, if any, did you consider when shopping for Mc Donald’s?

11. How frequently do you visit Mc Donald’s?

12. Is your order on time?

13. Do you feel comfortable in this outlet?

14. Which outlet offers the best service in Mumbai?

15. Where, on a scale of 1-10 (with 10 being high) would you rate Mc Donald’s?

KIDS PLAYING AT Mc Donald’s

 CHAPTER 09
MC DELIVERY

MC DELIVERY APPLICATION

McDelivery – India West & South by McDonald’s India - Hardcastle Restaurants Private Limited
Now you can order food online with just a few taps on your mobile phone using the McDelivery
app. Be it your favourite McDonald’s burger, or a customized McDonald’s meal, McDonald’s food
delivery app fulfills your every food craving. With classic burgers and wraps, and exciting new
offerings like coffee, desserts and sides, online food ordering using McDelivery app has never been
this easy.
Your favourite McDelivery app just got an incredible makeover and is now vibrant, lively and even
more easy-to-use. So, download McDonald’s app in India now! We have made ordering online
delicious McDonald’s meals at home and for your parties, a lot more fun and convenient. Browse
through McDonald’s menu in India with prices listed, customize your orders and choose your drinks
and desserts on McDelivery food ordering app.
Features of McDonald’s Online Delivery App:
Order food online
Order food in advance: Just select a time when you want your McDonald’s online order to be
delivered to you and enjoy delicious food at your convenience!
Place party orders: You can now order McDonald’s burgers, meals, drinks and desserts as many as
you want, right from your phone screen!
Social Logins: Now, you can login to the McDelivery App India using your Facebook or Google+
ID too!
Pay online
Track your order from the nearest McDonald’s restaurant to your doorstep
Hungry at 7AM? View McDonalds’s breakfast menu in India to order breakfast online, and have hot
piping breakfast delivered to you using McDonald’s home delivery app.
In need of a delicious caffeine kick? Order McDonald’s coffee online using McDelivery app.
Craving scrumptious burgers? Order McDonald’s burgers online via McDonald’s online delivery
app and get delicious and tasty burger delivery right at your doorstep. Be it chicken burgers, veggie
burgers, paneer burgers, or fish burgers, our vast burger menu with price list has it all. Know
McDonald’s burger prices in India and get great burger offers. Fast food delivery of veg burgers and
non-veg burgers has never been this easy!
Fancy something substantial? Now you can customize McDonald’s meals and order online using
one of the best online food ordering apps. Apart from burgers, we have paneer wraps, veggie wraps,
aloo wraps, and chicken wraps too! Order meals online from us and satiate you hunger!
Need a cool treat? Get ice cream delivery using McDelivery app online. McDonald’s India delivers
our best-selling Flurry and soft serve varieties that are guaranteed to make you happy at any time of
the day! Order ice cream online from the exciting McDonald’s new menu in India!
Want something to indulge in? You can now order your favourite McCafe products like signature
coffees, smoothies, shakes, and desserts on McDonald’s India delivery app. Order desserts online
with the best food delivery app now!
McDonald’s new menu in India has delightful offerings for every age and preference. You can find
McDonald’s new burgers and other items in India with prices listed. McDonald’s Chatpata Naan,
kebab wraps and burgers are exciting new products available for home delivery.
Avail exciting McDonald’s coupons on orders via our app. We have some great McDonald’s offers
waiting for you!
See all McDonald’s product prices in India and get food home delivered from McDonald’s
instantly! Online food delivery using McDonald’s app India is hassle-free and easy.
McDELIVERY

“If you can’t come to McDonalds, McDonalds will come to you.”

After nearly sixteen years in India, McDonald's finally started coming to your doorstep. The key
idea is convenience. We are a quick service restaurant available at high-traffic locations. But there is
a large number of people who find it difficult to travel. The key is to deliver hot and fresh food.
Why McDelivery is an Important Business model?

• McDelivery is one of the Important Business models of Brand extensions.

• McDelivery contributes to around 7.5 % of Total sales.
• The key idea is Convenience because McDonalds believe in being accessible.
• By offering home delivery we can reach out to the Customers and increase our penetration.
• MDS SOI contribution to the store system wise is 15.30%.
• Based on the Data it is presumed that in the Coming days the contribution of McDelivery
will be on increasing trend.
• Current number of MDS Stores – 36
Plan by end of 2009 - 46 MDS stores
Analysis shows that the Sales Trend is continuously on increasing Trend.
• In 2008 Regrading phase was done because of which TC’s for 2008 Were impacted
Compared to 2007 but now again there is an Increasing trend.
• In 2007 – 27 MDS In
2008 – 34 MDS
In 2009 - 40stores
In 2010 – 100 stores
In 2012- 150 stores
In 2014 celebrating 200 stores
Till now it 300 stores

In 2007 Sales ended 8,31,98,038

• In 2008 Sales ended – Rs.9,05,83,754/-

• SOI Contribution Figures positive.

2008 2009 plan Feb Y

MDS GM% 56.67% 57.6% 55.9
Lab Cost% 12.99% 12.7% 12.1
Outside Services% 16.69% 13.1% 15.4
PAC% 14.61% 18.6% 16.6
SOI% 12.95% 12.8% 15.3

, The chain which entered India with its maiden store in 1996 in Delhi saw its store count grown
from around 100 in 2006 to over 300 at the end of FY13. McDonald’s W & S which had a little less
than half of the stores in FY07 overtook McDonald’s N & E in the number of outlets in FY12 when
it added around 23 outlets, the highest in a single year till then and almost double of what
McDonald’s N & E did in that year, according to sources

Interestingly, the outperformance of McDonald’s W & S coincided with change in operational

ownership. FY12 was also the first year after a change in business structure where the Jatias
acquired the stake held by McDonald’s in their joint venture HRPL while retaining their role as a
master franchisee for two regions of the country. Jatias recently consolidated HRPL under a small
public listed firm Westlife Development.

To be fair, McDonald’s N & E reached break-even faster than its other Indian peer. Connaught Plaza
Restaurants clocked positive EBITDA way back in FY08, one year ahead of Hardcastle
Restaurants. It also clocked net profit one year before Hardcastle, in FY10. While faster rollout of
new stores in FY11 and FY12 allowed Jatias to gain speed, McDonald’s N & E matched the new
addition to stores last year with around 30 new outlets the same as McDonald’s W & S. Few weeks
ago it also set up the single largest McDonald’s outlet in the country in Noida.

Amit Jatia, vice-chairman of Westlife Development, did not comment specifically about the
financial revenues but shared that McDonald’s W & S added 60 restaurants over the past two years,
taking the count up from 107 restaurants in FY11 to the current 166 restaurants (as of June 30,
2013) as the company moved into an acceleration phase and the business has grown significantly.

A consultant with one of the Big Four firm, on condition of anonymity said, he believe that
going forward, Hardcastle (McDonald’s W & S) will do a better job and there will be rapid
expansion by them due to the funds that the company has recently raised.”

Westlife recently raised Rs 180 crore from Arisaig Partners, an asset management firm which
chases investments in public-listed consumer-facing companies.

The consultant further added that real estate cost has gone up for quick service restaurants
(QSRs) and one needs to be well funded to expand and thus Jatias are in a better position to
scale up.

In February this year, according to Amit Jatia, that the firm is planning to increase the number
of outlets in McDonald’s W & S to 250 by 2014. “Typically, we invest Rs 3 crore per restaurant
plus there is the cost of real estate. Hence, we plan to spend around Rs 400-500 crore in the
next two years,” said Jatia.
A stock analyst who tracks consumer sector said, “The last two years have definitely been a
game changer of McDonald’s in India with the brand (franchisees) started making profits
despite heavy competition in the QSR space. In such a scenario, having an organisational
structure like Hardcastle has definitely helped. The franchisee now has solely Indian top
management which has led to faster decision making and scaling up. The restructuring to
bring it under a listed firm, which is as good as a reverse listing, too has helped the company
to raise funds.”

McDONALD’s KIOSK

At McDonalds we have made effort to cover every possible area for serving to the Customer needs
At McDonalds we have made effort to cover every possible area for serving to the Customer needs.
After serving the meals we have made Kiosk as a means of fulfilling the custom of something sweet
following the main course.

Why KIOSK is an Important Business model?

 • Kiosk is one of the important model of Brand Extensions.

• Kiosk is a Business model which requires comparatively less initial investment.

• Also it helps us to increase the number of Guest Counts and Sales.

• It is a way of extending our Brand with overall less Initial and Operating investments.

• Kiosks helps us to give varied choices to our Customers

• Kiosks contribute around 3.7% of our Total Sales.

• Kiosk provides 23% of positive SOI.

• IN 2009 we have 25 Kiosks and plan it has reached

Sales Contribution from New Business Models Kiosk

• As per the Analysis the Trend of Sales of Kiosk seems to be on

increasing terms.
• In 2007 – 14 Kiosks In 2008 –
22 Kiosks
In 2009 (Plan)-28 Kiosks In 2009(Till
data)-25 Kiosks
McDonald's is rolling out self-service kiosks in restaurants across the US that allow customers
to order and pay for their food without ever having to interact with a human

The touch-screen technology is meant to speed up the ordering process and give people more
control over customising their food, while reducing opportunities for human error according to
the company

Global quick service restaurant Major McDonald’s, which launched its store-in-store format
McCafe in India 18 months ago, is planning to cash in on the growing popularity of coffee drinking
in the country. McCafe is the third line of McDonald's business in India, after breakfast (the home
delivery), and kiosk formats.

McCafe has now been launched in South India with the first outlet being opened in Bengaluru. As
of now there are over 15,000 restaurants that sell the McCafe products globally.

“The in-store format enables a quick roll-out of a McCafeé with an investment of Rs 30-35 lakh per
outlet across key trading areas in metro cities of West and South India. Within a span of 18 months
we have expanded our McCafeé network across 41 restaurants in six cities — Mumbai, Ahmedabad,
Nashik, Aurangabad, Pune and Bengaluru. Today, we are well on track to launch over 100 McCafeé s
over the next four years,” said Smita Jatia, managing director — Hardcastle Restaurants Pvt Ltd, in
Bengaluru on Monday. Hardcastle Restaurants is McDonald's master franchise in the western and
southern market

CHAPTER 10

CONCLUSION
 “The in-store format enables a quick roll-out of a McCafé with an investment of Rs 30-35
lakh per outlet across key trading areas in metro cities of West and South India. Within a span of
18 months McDonald’s have expanded the McCafé network across 41 restaurants in six cities
Mumbai, Ahmedabad, Nashik, Aurangabad, Pune and Bengaluru. Today, we are well on track to
launch over 100 McCafés over the next four years,” said Smita Jatia, managing director —
Hardcastle Restaurants Pvt Ltd, in Bengaluru on Monday.
Hardcastle Restaurants is McDonald's master franchise in the western and southern
markets. McCafe has now been launched in South India with the first outlet being opened in
Bengaluru.

Indian growth

McDonald's has invested about 7bn rupees in India since it entered the market in 1996 and
reported growth of about 40%. India has a population of over 1 billion and an emerging and
affluent middle class. The food chain has tailored a number of its products to the Indian market,
including the Paneer Salsa Wrap, Mcspicy and Indi-Mcspicy, McAloo Tikki and the mutton
specialty for a country which does not eat beef, the Chicken Maharaja Mac. "In the next two years,
we should finally have a menu that is entirely relevant to the Indian household," Mr. Bakshi said.

From the above information it is very clear that Mc Donalds is aggressive about its Indian
operations and this fast food chain is here to stay feeding millions of Indians the Jai ho way think
global act local.

BIBLOGRAPHY

1. “McDonald’s History - About McDonald’s." About McDonald's.

http://www.aboutmcdonalds.com/mcd/our_company/mcd_history.html
 2. www.mcdonalds.com
http://www.mcdonalds.com/us/en/home.html

http://www.mcdonalds.com/us/en/our_story/our_history.html

3.https://en.wikipedia.org/wiki/History_of_McDonald%27s

4http://www.business-standard.com/article/companies/mcdonalds-to-open-100-outlets-of-
mccafe-in-india-115042000958_1.html

5 http://www.slideshare.net/pridhavale/mcdonalds-marketing-strategies
(slideshare)

6 https://www.surveymonkey.com/r/?sm=IxqTttG%2Buh0kXJRGO9zaZw%3D%3D

7 https://en.wikipedia.org/wiki/McDonald%27s