SCHOOL OF MANAGEMANT STUDIES

A Major Project Report

On
A STUDY ON CONSUMER BEHAVIOUR AND IMPACT OF
COMPETITION ON MCDONALDS
Submitted in fulfillment of the requirements for the award of the Degree of

Master of Business Administration

Submitted by
MUIZ KHAN
(R18MB156)

Under the guidance of

Dr. ANSHU RANI

May 2020

Rukmini Knowledge Park, Kattigenahalli, Yelahanka, Bengaluru-560064

www.reva.edu.in
1
A STUDY ON CONSUMER BEHAVIOR AND IMPACT OF
COMPETITION ON MCDONALD’S
In reference to

MCDONALDS

Submitted by

MUIZ KHAN
R18MB156

Under The Guidance Of

Dr. ANSHU RANI

SCHOOL OF MANAGEMENT STUDIES

REVA UNIVERSITY
Rukmini Knowledge Park, Kattigenahalli, Yelahanka, Bengaluru – 560 064

MAY, 2020

2
 DECLARATION

I, Mr. MUIZ KHAN Student of MBA belong in to School of Management, REVA University,
declare that this Project Report entitled “A Study On Consumer Behavior And Impact Of
Competition On McDonalds” with reference to ‘MCDONALDS’ is the result of the project
work done by me under the supervision of Dr. ANSHU RANI, School of management studies.

I am submitting this Project Report in partial fulfillment of the requirements for the award of the
degree of Master of Business Administration in Marketing and International business at
REVA University, Bangalore during the academic year 2018-20.

I declare that this project report has been tested for plagiarism, and has passed the plagiarism test
with the similarity score less than 25% and it satisfies the academic requirements in respect of
Project work prescribed for the said Degree.

I further declare that this project report or any part of it has not been submitted for award of any
other Degree / Diploma of this University or any other University/ Institution.

(Signature of the candidate)

Certified that this project work submitted by MUIZ KHAN has been carried out under my / our
guidance and the declaration made by the candidate is true to the best of my knowledge.

Signature of Guide Signature of Co-Guide

Date___________ Date____________

Signature of Director of School

Date__________

Official Seal of the School

3
 SCHOOL OF MANAGEMENT STUDIES

CERTIFICATE

Certified that the project work entitled A Study on Consumer Behavior And Impact Of
Competition On McDonald’s carried out under my / our guidance by MUIZ KHAN,
R18MB156, a Bonafide Student of REVA University during the academic year 2018-2020, is
submitting the project report in partial fulfillment for the award of Master of Business
Administration at REVA University during the academic year 2018-20. The project report has
been tested for plagiarism, and has passed the plagiarism test with the similarity score less than
25%. The project report has been approved as it satisfies the academic requirements in respect of
Project work prescribed for the said Degree.

Signature with date Signature with date Signature with date

Dr. Anshu Rani Dr. Subha A

Co Guide Director
Guide

External Examiner

Name of the Examiner with affiliation Signature with Date

1.

2.

4
 ACKNOWLEDGEMENT

I owe a deep sense of gratitude and allegiance to Dr. Subha A, DIRECTOR, of

School of Management Studies, REVA UNIVERSITY for their encouragement and
kind advice that came along.

I also express my heartfelt gratitude to my guide Dr. Anshu Rani for their great
sense of commitment to make the project report as systematic as possible
inspiring comments, which helped me to gain deeper insight into the horizon of
this project.

I owe my sincere thanks to Mr.SYED RAFIQ AHMED, MANAGER and to all the
Staffs and Employees of “MCDONALDS CORPORATION.” Bangalore.

I express my regards and thanks to everybody who have helped me directly or

indirectly in completing this project.

Finally, I thank my dearest Family Members and Friends for their encouragement
and support and being a pillar of strength in the entire process of this project
work.

Place: Bangalore

Date: MUIZ KHAN

5
 INDEX

SL.NO CONTENTS PAGE NOS

1. EXECUTIVE SUMMARY 7

2. CHAPTER 1 8-16

3. CHAPTER 2 17-36

4. CHAPTER 3 37-45
5. CHAPTER 4 46- 63

6. CHAPTER 5 64-65

7. ANNEXURES 66- 69

8. BIBLIOGRAPHY 70

6
 EXECUTIVE SUMMARY

I have done my research on consumer behavior and the problems faced by different firms at the
time of competition. As a management student it is very important to understand the different
types of consumer behavior and how it changes from person to person for a success of any
organization it is very important to understand consumer behavior and the competition. I choose
McDonald’s because it has wide variety of products and has lots of competitors so I could easily
understand the consumer behavior according to the different products and the techniques used by
McDonald’s to face competition. My duration of study was from 20/02/2020 to 18/03/2020.

McDonald’s McDonald's Corporation is an American fast food company, founded in 1940 as a

restaurant operated by Richard and Maurice McDonald, in San Bernardino, California, United
States. 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 feature chicken products,
breakfast items, soft drinks, milkshakes, wraps, and desserts.

My objective of the study is to understand how consumer behavior changes from product to
product and person to person and what strategies the companies use to face competition.

In my study I got to know how consumer behavior changes according to price, place, product,
many customers prefer other products than McDonald’s I got to know why there is fluctuations
in consumer behavior and such situation arises and company losing their customers the
immediately come up with new strategies to attract new customers and retain existing customers.
Strategies like combo offers, discounts and buy on get offer etc.

I would like to suggest McDonald’s to add different variety of products like offered by KFC in
non vegetarian menu because McDonald’s lacks in this and is more concerned with vegetarian
products if McDonald’s does this they can easily acquire greater market share and can easily face
competition. I got to learn how the managers and staff play important role in managing of a
particular branch and success of the organization and other things.

7
 CHAPTER 1:

1.1 INTRODUCTIONtTOtSTUDY:

ConsumertBehaviourtistimportanttintthetmarketingtindustrytastconsumertmaketbuyingtdecisiont
ontdayttotdaytbasis.tItwilltchosetMcDonaldsttotshowthowttheytmanagedttotunderstandtvariousta
spectstoftconsumertbuyingtbehaviourttotmakettheirtbusinesstsuccessfultworldwide.
McDonaldstistalreadytonetoftthetpopulartfasttfoodtrestauranttintthetworld.tYoutcantfindtitt
anywhere.tTheytoffertincrediblytdiversetfoodtitemstacrosstitstfranchisestaroundtthetworld,t
through StandardisedttemplatestsuchtastHappyMealtortValueMeal.

We all know that consumer behavior changes from consumer to consumer in my term of study I
got to know various changes of consumer behavior in different aspects as consumer behavior
changes from product to product and place to place. For any organization to succeed it really
important for all the organizations to understand the consumer behavior if they fail to do so they
will never be able to attract the customer and will not acquire greater market share and will have
tough time in facing the competitors and will have to wind up the firm in short period of time for
this purpose its really very important to understand the consumer behavior for the survival of the
firm in long run earn sufficient profits and meet the customers wants and needs and acquire more
of the market share compared to that of its competitors. In my study I got know some factors that
majorly have affect on the consumer behavior which are

The factors affecting consumer behavior are

 Cultural factors: we all know that India is a place where many culture are followed
there are many religions in India which have separate cultures and followings such as
Muslims don’t eat pork and people in US love to eat pork items for this purpose
McDonald’s have changed their menu according to the cultures of India and many
Hindus do not eat non veg for this purpose they had to introduce veg items in their menu
to fulfill the needs of the customers and come along with cultural factors of the people in
India.

8
 SocialFactor:alsoiaffectitheibuyingibehaviourioficonsumers.iItialsoistronglyiaffecticons
umeri responses,isoiitimustibeitakeniintoiaccountibyicompanyiwhenidesigningimarketing
strategies.iTheiimportantifactorsihereiareifamily,ireferenceigroupiandistatus.Consumer
isihighlyiinfluencedibyitheimemberiofitheifamily.iIfibuyingidecisioniofisomeiproductiisi
influencedibyichildrenithenMcDonaldsiwillitargetikidsiinitheiriadvertisement.Referencei
groupihaveitheipotentialiiniformingiaiimpressionioripersonsiattitudeitowardsitheiproduct
TheiaffectiofiReferenceigroupsivariesiacrossiproduct.iItitendsitoibeistrongestiwhenithe
productiisivisibleitoiothericonsumers.iForiinstance,iifitheiproductisuchiasiburger,iFrench
fries,isoftidrinkiandisoion itheniinfluenceibyi referenceigroupiwillibeihigh.

 Personal factors: each of the customers thinking varies from place to place and from age
to age such as children way of thinking is different is from compared to that of adults and
teenagers McDonald’s uses various strategies to target its customers from different ages
as for children happymeal box with toys and for teenagers free WIFI which is been used
by teenagers a lot and also provide food to students at less price and also drive through
meal for people who are running out of time or are in hurry all this are done by
McDonald’s to meet the personal factors of the customers.

 Psychological factors: there are many factors in this factor which McDonald’s have to
target to fulfill this factor they are the motivation, perception beliefs and attitude
motivations plays a major role in buying decision of the customers McDonald’s does
many activities to motivate the customers to buy its products and also meet the standards
of customers about the products and it deals with the different attitudes of the customers
and tackle them well so that customer satisfaction can be achieved which will result to
loyal customers of the firm. McDonald’s also comes upto the beliefs of the customers so
that the customer buying the products must be tension free about the quality of the food
served by them and must not hesitate to buy it products if the firm fails to win the belief
of the customers then the customers will hesitate to buy it products .

9
So McDonald’s has to consider all these factors to understand the consumer behavior
which is very important to gain greater market share by the firm. In my study I also have
studied about the competition faced by McDonald’s by various big and small firms by
both international and domestic firms in India. As we all know that competition is very
important in today’s market all firms are facing competition in today’s scenario and all
firm are coming up with different strategies so that they can with stand the competition
faced by them in today’s market. If the firms do not come up with their strategies to face
or deal with the competition they will survive in the long they will run into losses and
eventually have to wind up the firm the best example is DOCOMO which winded up as it
did not bring new strategies to meet the competition and eventually had to wind up by the
competition by its competitors such as JIO, Vodafone and AIRTEL. If DOCOMO had
implemented new strategies against its competitors then it would have survived in the
market place. So is the situation of McDonald’s as it faces huge competition in the
market but still has a good market share in Indian market and across the globe As it
comes up with different strategies which is helping McDonald’s to meet the competition
in the Indian market and across the globe. McDonald’s strategies are very good compared
to its rivals when McDonald’s sees changes or reduction of sales it immediately changes
its strategies and by this McDonald’s has successfully maintained a good market share In
the Indian markets.

The main competitors of McDonald’s are

 KFC.
 BURGER KING.
 SUBWAY.
 Starbucks.
 Dunkin donuts.
 Pizza Hut.
 Dominos pizza
 Others

10
The main strategies used by McDonald’s to face competition are

 They have come up with new innovations in their menu card using their top chefs
as they keep adding items to their menu card to meet the customer needs.
 They have reduced costs of their food items compared to its competitors by
providing better quality as lower costs.
 By formulating and implementing strict rules and regulations to its staff so that
they must follow it strictly and provide better services to its customers.
 McDonald’s started its expansion process and started dominating the small
restaurants as McDonald’s has greater buying power and abundant of resources
which McDonald’s have been using wisely to meet competition.
 McDonald’s provides greater value to its customers which in return leads to
customer attraction and loyal customers which helps McDonald’s to retain greater
market share in the Indian market.
 McDonald’s has the habit of co branding as we all know that two companies are
better than one company and McDonald’s have done co branding with many firms
which helped them to grow rapidly in the market and face the competition easily
some of co brandings are coca-cola with McDonald’s, walmart with McDonald’s.
 McDonald’s makes proper use of its brand image and attracts more and more
customers by using attracting jingle such as “I'm lovin' it” which the customers
find very attractive and nice.
 McDonald’s provides variety of items from low to high pricing and from light
meals to heavy meals and they target customers of different age groups so that
they choose items according to their preferences which leads to more of customer
attraction as from going to other restaurants.

11
1.2 Industry profile :

1.1

1.2

12
ThetMcDonald'stCorporationtistthetworld'stlargesttchaintofthamburgertfast,tservingtaroundt69
tmilliontcustomerstdailytint119tcountriestacrosst35,000toutlets.tHeadquarteredtintthetUnitedt
States,tthetcompanytbegantint1940tastatbarbecuetrestauranttoperatedtbytRichardtandtMaurice
tMcDonald.t
Int1948ttheytreorganizedttheirtbusinesstastathamburgertstandtusingtproductiontlinetprinciples.t
BusinessmantRaytKroctjoinedtthetcompanytastatfranchisetagenttint1955.tHetsubsequentlyt
purchasedtthetchaintfromtthetMcDonaldtbrotherstandtoversawtitstworldwidetgrowth.t
McDonald'stprimarilytsellsthamburgers,tcheeseburgers,tchicken,tFrenchtfries,tbreakfasttitems,
tsofttdrinks,tmilkshakes,tandtdesserts.tIntresponsettotchangingtconsumerttastes,tthetcompanyt
hastexpandedtitstmenuttotincludetsalads,tfish,twraps,tsmoothies,tfruit,tandtseasonedtfries.t

McDonald'stistthetworld'stleadingtglobaltfoodservicetretailertwithtovert35,000tlocationstservin
tapproximatelyt70tmilliontcustomerstintovert100tcountriesteachtday.ttMoretthant80%tofti
McDonald'strestaurantstworldwidetaretownedtandtoperatedtbytindependenttlocaltbusinesstmenti
andtwomen.tOurtgoaltisttotbecometcustomers'tfavoritetplacetandtwayttoteattandtdrinktbyti
servingtcoretfavoritestsuchtastourtWorldtFamoustFries,tBigtMac,tQuartertPoundertandtChickent
McNuggets.tThetstrengthtoftthetalignmenttamongtthetCompany,titstfranchiseestandtsupplierst
i(collectivelytreferredttotastthet"System")thastbeentkeyttotMcDonald'stsuccess.tBytleveragingt
iourtSystem,twetaretablettotidentify,timplementtandtscaletideastthattmeettcustomers'tchangingti
needstandtpreferences.tIntaddition,tourtbusinesstmodeltenablestMcDonald'sttotconsistentlyit
delivertlocallyrelevanttrestauranttexperiencesttotcustomerstandtbetantintegraltparttoftthet
icommunitiesiweiserve.

McDonald'stcustomerfocusedtPlanttotWint("Plan")tprovidestatcommontframeworktthattaligns
tourtglobaltbusinesstandtallowstfortlocaltadaptation.tWetcontinuettotfocustontourtthreetglobalt
growthtprioritiestoftoptimizingtourtmenu,tmodernizingtthetcustomertexperience,tandtbroadening
accessibilityttotBrandtMcDonald'stwithintthetframeworktoftourtPlan.tOurtinitiativestsupport
thesetpriorities,tandtaretexecutedtwithtatfocustontthetPlan'stfivetpillarst
tPeople,tProducts,tPlace,tPricetandtPromotiont-

13
totenhancetourtcustomers'texperiencetandtbuildtshareholdertvaluetovertthetlongtterm.tWet
believetthesetprioritiestaligntwithtourtcustomers'tevolvingtneeds,tandt-
combinedtwithtourtcompetitivetadvantagestoftconvenience,tmenutvariety,tgeographict
diversificationtandtSystemtalignmentt-twilltdrivetlong-termtsustainabletgrowth.

1.5. MISSION :

McDonald'sibrandimissioniisitoibeiouricustomers'ifavoriteiplaceiandiwayitoieatiandidrink.iOuri
worldwideioperationsiareialignediaroundiaiglobalistrategyicalleditheiPlanitoiWin,iwhichicenteri
onianiexceptionalicustomeriexperienceiiPeople,iProducts,iPlace,iPriceiandiPromotion.iWeiare
icommitteditoicontinuouslyiimprovingi ourioperationsiandienhancingiouricustomers'iexperience.

1.6. VISION :

McDonald'sivisioniisitoibeitheiworld'sibestiquickiserviceirestaurantiexperience.Beingitheibesti
means providingioutstandingiquality,iservice,icleanliness,iandivalue,isoithatitheyimakeievery
customeriini everyirestaurantismile.

1.7 MCDONALD’S VALUES:

 Weiplaceitheicustomeriexperienceiatitheicoreiofialliweido.i

Ouricustomersiareitheireasoniforiouriexistence.iWeidemonstrateiouriappreciationiby
providingithemiwithihighiqualityifoodiandisuperioriserviceiiniaiclean,iwelcomingi
environment,iatiaigreativalue.iOurigoaliisiquality,iservice,icleanlinessiandivaluei(QSC&V)i
forieachiandieveryicustomer,ieachiandieveryitime.

14
 Weiareicommitteditoiouripeople.i
Weiprovideiopportunity,inurtureitalent,idevelopileadersiandirewardiachievement.iWe
believeithatiaiteamiofiwelltrainediindividualsiwithidiverseibackgroundsiandiexperiences,
workingitogetheriinianienvironmentithatifostersirespectiandidrivesihighilevelsiofi
engagement,iisiessentialitoiouricontinuedisuccess.

 WeibelieveiinitheiMcDonald’siSystem.i
McDonald’sibusinessimodel,idepictedibyiouri“threeleggedistool”iofiowner/operators,I
suppliers,iandicompanyiemployees,iisiourifoundation,iandibalancingitheiinterestsiofialli
threeigroupsiisikey.

 Weioperateiouribusinessiethically.
iSoundiethicsiisigoodibusiness.iAtiMcDonald’s,iweiholdiourselvesiandiconductiour
ibusinessitoihighistandardsiofifairness,ihonesty,iandintegrity.iWeiareiindividually
iaccountableiandicollectivelyiresponsible.

 Weigiveibackitoiouricommunities.

Weitakeiseriouslyitheiresponsibilitiesithaticomeiwithibeingiaileader.iWeihelpiouricustomesi
buildibettericommunities,isupportiRonaldiMcDonaldiHouseiCharities,iandileverageiouri
size,iscopeiandiresourcesitoihelpimakeitheiworldiaibetteriplace.

 Weigrowiouribusinessiprofitably.i

McDonald’siisiaipubliclyitradedicompany.iAsisuch,iweiworkitoiprovideisustained
profitableigrowthiforiourishareholders.iThisirequiresiaicontinuousifocusioniouricustomersia
nditheihealthiofiourisystem.

15
 Weistriveicontinuallyitoiimprove.i

Weiareiailearningiorganizationithatiaimsitoianticipateiandiresponditoichangingiiicustomer,
iemployeeiandisystemineedsithroughiconstantievolutioniandiinnovation.
McDonald'siisioneiofitheibestknownibrandsiworldwide.iThisicaseistudyishowsihowi
McDonald'sicontinuallyiaimsitoibuildiitsibrandibyilisteningitoiitsicustomers.iItialsoi
identifiesitheivariousistagesiinitheimarketingiprocess.iBrandingidevelopsiaipersonalityifori
aniorganization,iproductioriservice.i

1.3

16
 CHAPTER 2

2 INDUSTRY BRIEF HISTORY :

The siblings Richard and Maurice McDonald opened the first McDonald's at 1398 North E Street
at West 14th Street in San Bernardino, California on May 15, 1940, but it was not the
McDonald's recognizable today; Ray Kroc made changes to the brothers' business to modernize
it. The brothers introduced the "Speedee Service System" in 1948, putting into expanded use the
principles of the modern fast-food restaurant that their predecessor White Castle had put into
practice more than two decades earlier. The original mascot of McDonald's was a chef hat on top
of a hamburger who was referred to as "Speedee". In 1962, the Golden Arches replaced Speedee
as the universal mascot. The symbol, Ronald McDonald, was introduced in 1965. The clown,
Ronald McDonald, appeared in advertising to target their audience of children.

Logo from 1940 until 1948

Logo from 1948 until 1953

Logo from 1953 until 1960

On May 4, 1961, McDonald's first filed for a U.S. trademark on the name "McDonald's" with the
description "Drive-In Restaurant Services", which continues to be renewed. By September 13,
McDonald's, under the guidance of Ray Kroc, filed for a trademark on a new logo—an
overlapping, double-arched "M" symbol. But before the double arches, McDonald's used a single

17
arch for the architecture of their buildings. Although the "Golden Arches" logo appeared in
various forms, the present version was not used until November 18, 1968, when the company
was favored a U.S. trademark.

The present corporation credits its founding to franchised businessman Ray Kroc in on April 15,
1955. This was in fact the ninth opened McDonald's restaurant overall, although this location
was destroyed and rebuilt in 1984. Kroc later purchased the McDonald brothers' equity in the
company and begun the company's worldwide reach. Kroc was recorded as being an aggressive
business partner, driving the McDonald brothers out of the industry.

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 1954, Ray Kroc, a seller of Prince Castle brand Multimixer milkshake machines, learned that
the McDonald brothers were using eight of his machines in their San Bernardino restaurant. His
curiosity was piqued, and he went to take a look at the restaurant. He was joined by good friend
Charles Lewis who had suggested to Kroc several improvements to the McDonald's burger
recipe. At this point, the McDonald brothers had six franchise locations in operation.

Believing the McDonald's formula was a ticket to success, Kroc suggested they franchise their
restaurants throughout the country. The brothers were skeptical, however, that the self-service
approach could succeed in colder, rainier climates; furthermore, their thriving business in San
Bernardino, and franchises already operating or planned, made them reluctant to risk a national
venture. Kroc offered to take the major responsibility for setting up the new franchises
elsewhere. He returned to his home outside of Chicago with rights to set up McDonald's
restaurants throughout the country, except in a handful of territories in California and Arizona
already licensed by the McDonald brothers. The brothers were to receive one-half of one percent

18
of gross sales. Kroc's first McDonald's restaurant opened on April 15, 1955, at 400 North Lee
Street in Des Plaines, Illinois, near Chicago. The Des Plaines interior and exterior was painted by
master painter Eugene Wright, who owned Wright's Decorating Service. Eugene was asked to
come up with a color scheme and he chose yellow and white, with dark brown and red being
secondary trim colors. Those colors would go on to become the colors of all McDonald's
franchises. The restaurant was demolished in 1984. Recognizing its historic and nostalgic value,
in 1990 the McDonald's Corporation acquired the stand and rehabilitated it to a modern but
nearly original condition, and then built an adjacent museum and gift shop to commemorate the
site now called McDonald's #1 Store Museum.

Once the Des Plaines restaurant had become operational, Kroc sought franchisees for his
McDonald's chain. The first snag came quickly. In 1956 he discovered that the McDonald
brothers had licensed the franchise rights for Cook County, Illinois to the Frejlach Ice Cream
Company. Kroc was incensed that the McDonalds had not informed him of this arrangement. He
purchased the rights back for $25,000 ($235,100 today), five times what the Frejlacks had
originally paid, and pressed forward. In 1956, Ray Kroc met Harry J. Sonneborn, a former VP of
finance for Tastee-Freez, who offered an idea to accelerate the growth and investment grade of
Kroc's planned McDonald's operation: Own the real estate that future franchises would be built
on. Kroc hired Sonneborn and his plan was executed through forming a separate company called
Franchise Realty Corp. which was solely designed to hold McDonald's real estate. The new
company signed leases and took out mortgages for both lands and buildings, in turn then passing
these costs on to the franchisee with a 20-40% markup and a reduced initial deposit of $950.The
"Sonneborn model" of real estate ownership within the franchise persists to this day, possibly
being the most important financial decision in the company's history. McDonald's present-day
real estate holdings represent $37.7Bn on its balance sheet, about 99% of the company's assets
and 35% of its annual gross revenue.

McDonald's grew slowly for its first three years. By 1958, there were 34 restaurants. In 1959,
Harry Sonneborn became the president and CEO of McDonald's. The same year, the company
opened 68 new restaurants, bringing the total to 102 locations.

19
 INDUSTRY ANALYSIS PORTER’S MODEL OF MCDONALD’S :

2.1

As we all know that M PORTER have described in detail about the forces that will affect any
organization or firm in the market. These 5 forces explain in detail how an organization will face
problems in its day to day running of the organization or firm. In my study I have discovered the
forces which will affect the working of McDonald’s.

20
This is the detailed 5 porter’s analysis of McDonald’s which is one of the top leading food chain
across the globe though it displays its menu card and keeps on adding new and new items to its
menu card it faces some problems as its very common now a days.

The following is the detailed porters five force analysis:

 COMPETIVIVE RIVALRY –STRONG:

As we all know that competition is the biggest problem that a company or an

organization faces in today’s market similarly McDonald’s faces many problems in the
market form its competitors due to its competitors McDonald’s looses much of its sales to
its competitors due to large number of competitors in the market so for this purpose
McDonald’s comes with its own strategies to meet the competitors each player in the
organization goes on aggressively expanding its business by providing more and more
stores globally so that the customers can gain access to the restaurants anywhere and at
anytime which creates problems to McDonald’s growth and affects it sales.

 THREATH OF NEW ENTRANTS –MODERATE:

Though McDonald’s being the market leader in the food industry will still face threats
from new entrants as we all know that new entrants can come up with certain new
products which the McDonald’s cannot come up with which results to attraction of new
customers and the customers of McDonald’s can also be attracted by these new entrants
so for this purpose McDonald’s has to come up with new items to meet competition from
new entrants on an average scale 2 to 3 outlets in the economy are easily established and
are enough to give competition to McDonald’s.

 BARGAINING POWER OF SUPPLIERS –WEAK:

Suppliers as we all know that play an important role in any organization to produce
products in order to sell them to the customers. McDonald’s require raw materials like
potato and chicken to make their food items as everyone wishes to become the suppliers
of McDonald’s so in this the suppliers do not have the bargaining power as if they

21
 increase the rates of the raw materials the McDonald’s can switch its suppliers in this the
bargaining power of suppliers is weak.

 BARGAINING POWER OF BUYERS –STRONG:

The customers of McDonald’s are not loyal anymore because of the variety of products
are being offered by other restaurants as customer loyalty regarding food products are
decreasing day by day due to variety of products available in the food industry and if
McDonald’s changes its prices then the customers will shift to another brand of food
items so in this process the purchasing power of the customers is very rigid and has a
strong affect on McDonald’s.

 THREATS OF SUBSITUTES –STRONG:

As we all know that each and every day new and new substitutes are available in the
market and these substitutes can dominate the products of big MNC’s and big
organization. The closer the substitutes the greater is the risk of customer switching from
one brand to another brand which will a problem to the organizations. In case of
McDonald’s according to its profile everyday new entrants are entering into the markets
to dominate McDonald’s. The Meals offered by McDonald’s are being replicated my
other new entrants and are attracting McDonald’s customers these new entrants also
provide the same quality of products as offered by McDonald’s which easily attracts the
loyal customers of McDonald’s which is a big problem to McDonald’s. Example KFC,
BURGER KING, PIZZAHUT, and others. So in this case McDonald’s do not have
control over the substitutes and the force of new substitutes on McDonalds is very strong.

2.1 INCEPTION AND HISTORY:

The first McDonald's restaurant was started in 1948 by brothers Maurice (“Mac”) and
Richard McDonald in San Bernardino, California. They bought appliances for their small
hamburger restaurant from salesman Ray Kroc, who was intrigued by their need for eight

22
 malt and shake mixers. A native Chicagoan, Ray Kroc left high school after his
sophomore year to join the World War One Red Cross Ambulance Corps. The war ended
before his unit was sent overseas with Ray returning home to earn a living as a musician
and later selling paper cups. In 1939, he became the exclusive distributor of the
Multimixer (a milkshake mixing machine). He visited the McDonald brothers in 1954
which led to him becoming their franchise agent. He opened up the first restaurant for
McDonald’s System, Inc., a predecessor of McDonald’s Corp. in Des Plaines, Illinois in
April, 1955. McDonald’s acquired the rights to the brother’s company in 1961 for $2.7
million.

Timeline

1940

Dick and Mac McDonald open

McDonald's Bar-B-Q restaurant on
Fourteenth and E streets in San
Bernardino, California. It is a typical
drive-in featuring a large menu and car
hop service.

1948

The McDonald brothers shut down their

restaurant for three months for
alterations. In December it reopens as a
self-service drive-in restaurant. The
menu is reduced to nine items:
hamburger, cheeseburger, soft drinks,
milk, coffee, potato chips and a slice of
pie. The staple of the menu is the 15

23
 cent hamburger.

1949

French Fries replace potato chips and

debut Triple Thick Milkshakes on the
McDonald's menu.

1954

Multimixer salesman Ray Kroc visits

McDonald's in San Bernardino
intending to sell the brothers more
Multimixers. The 52 year old Kroc is
fascinated by the operation. He learns
from the brothers that they are looking
for a nationwide franchising agent. He
has an epiphany and is determined that
his future would be in hamburgers.

1955

Kroc opens his first McDonald's in Des

Plaines, Illinois on April 15. The
attention getting red and white tiled
building with the Golden Arches was
designed by architect Stanley Meston in

24
 1953. First day sales are $366.12.

1956

Fred Turner, future McDonald's

Chairman is hired to work as a counter
man for the Des Plaines McDonald's. He
would soon become the head of
McDonald's Operations defining the
quality, service and cleanliness that
continue to this day.

1961

Hamburger University opens in the

basement of the Elk Grove Village,
Illinois, McDonald's restaurant.
Graduates receive Bachelor of
Hamburgerology degrees.

1961

McDonald’s System, Inc. purchases the

rights from the McDonald brothers for
$2.7 million.

25
 1965

The Filet-O-Fish sandwich was the first

item added to the national menu.
Created by Lou Groen, McDonald's
Cincinnati franchisee to help build
volume in the predominately Roman
Catholic community in which his store
was located.

1968

The Big Mac, developed by

Owner/Operator Jim Delligatti of
Pittsburgh, is added to the national
menu.

1973

The Quarter Pounder and the Quarter

Pounder with Cheese are added to the
menu.

26
 1974

The first Ronald McDonald House

opens in Philadelphia, Pennsylvania. In
1973, Fred Hill, a football player with
the Philadelphia Eagles, had the need for
such a facility at Children's Hospital in
Philadelphia, where his child was being
treated for leukemia. Hill’s dilemma led
to the first Ronald McDonald House.

1975

The Egg McMuffin, created by

Owner/Operator Herb Peterson of Santa
Barbara, California is added to the
national menu.

1983

Chicken McNuggets are introduced into

all domestic U.S. restaurants.

1984

27
 Ray Kroc, Founder and Senior
Chairman of the Board of McDonald's
Corporation, dies on January 14.

1990

On January 31, the first McDonald’s

restaurant in Moscow opens. Located in
Pushkin Square, more than 30,000
customers were served on opening day!

1993

The world’s first McCafe´ opens in

Melbourne, Victoria Australia.

1995

McFlurry Desserts, invented by Ron

McLellan, O/O Canada are added to
McDonald’s Canada menu.

28
 2002

McDonald’s published its first ever

Social Responsibility Report on April
15, 2002.

2003

McDonald’s first global ad campaign,

“i’m lovin’ it” is launched in Munich,
Germany on September 2.

2015

McDonald’s USA launched All Day

Breakfast.

2017

Global McDelivery Day is celebrated on

July 26 to support the global launch of
McDelivery with UberEATS.

29
 BOARD OF DIRECTORS OF MCDONALDS:

As of January 2019, the board of directors had the following members: [57]

 Enrique Hernandez Jr., non-executive chairman. Also president and CEO of Inter-Con
Security
 Lloyd H. Dean, president and CEO of Dignity Health
 Stephen J. Easterbrook, president and CEO of McDonald's
 Robert A. Eckert, operating partner of Friedman Fleischer & Lowe
 Margaret H. Georgiadis, CEO of Ancestry.com
 Jeanne P. Jackson, CEO of MSP Capital
 Richard H. Lenny, non-executive of Conagra Brands, Inc.
 John J. Mulligan, executive vice president and COO of Target Corporation
 Sheila A. Penrose, non-executive chairman of Jones Lang LaSalle Incorpoated
 John W. Rogers Jr., chairman and CEO of Ariel Investments, LLC
 Miles D. White, chairman and CEO of Abbott Laboratories
 Andrew J. McKenna, chairman emeritus. Also chairman emeritus of Schwarz Supply
Source

30
 ORGANIZATION CHART OF MCDONALDS:

MANAGING DIRECTOR

ADMIN MANAGER PLANT MANAGER

ACCOUNTS OFFICER

MANAGEMENT CUSTOMER
REPRESENTATIVE REPRESENTATIVE
ASST PERSONNEL

OFFICE ASST.CUM
TYPIST

IN CHARGE IN CHARGE IN CHARGE IN CHARGE IN CHARGE

QUALITY MAINTENANCE DESIGN DEVELOPMENT STORE

IN CHARGE IN CHARGE
PRODUCTION PURCHASES

31
 2.2 PRODUCT/SERVICE PROFILE:

McDonald’s offers a wide range of products to its customers it targets all its customers of
different ages so that McDonald’s can acquire greater market share. As McDonald’s
knows that if it does not do this it’s very difficult for McDonald’s to survive in the
market for this purpose McDonald’s has come up with various products and services to
meet the needs of different customers of different ages and simultaneously meet the
competitive advantage. In order to compete with cafe coffee day McDonald’s have come
up with its own coffee brand named Mc Cafe which also have attracted many customers
and also helped McDonald’s to compete with cafe coffee day and similarly to meet
competition with KFC McDonald’s have come up with different varieties of burgers so
that McDonald’s can meet the needs of all customers who eat vegetarian and non-
vegetarian. McDonald's franchised restaurants are owned and operated under various
structures, including conventional franchise, developmental license or affiliate. The
Company is primarily a franchisor.

MAIN PRODUCTS OF MCDONALD’S:

 French Fries.
 Big Mac.
 Snack Wrap.
 Happy Meal.
 Egg McMuffin.
 Apple Dippers and Baked Apple Pie.
 Chicken McNuggets and Chicken Select Strips.
 Premium Salads.

32
MARKET SHARE OF MCDONALD’S:

2.2

COMPETITORS OF MCDONALD’S:

 KFC.
 BURGER KING.
 SUBWAY.
 Starbucks.
 Dunkin donuts.
 Pizza Hut.
 Dominos pizza
 Others

33
2.3. GDP CONTRIBUTION BY MCDONALDS:
Every year McDonald’s contributes nearly 60-68% towards the GDP of India. McDonald's has
posted a net profit of Rs 65.2 lakh in FY17-18 in India. In 2016-17, the company's its loss
surged to Rs 305 crore due to its ongoing legal battle with its subsidiary.

2.4. GROWTH AND DEVELOPMENT OF MCDONALD’S:

McDonald's opened its doors in India, the 95th country, in 1996. The first McDonald's
restaurant opened on Oct. 13, 1996 at Basant Lok, Vasant Vihar, New Delhi. It was also the first
McDonald's restaurant in the world not serving beef on its menu.

McDonald's entered the Indian market in 1996 as a joint venture (JV) between Oak Brook III.
and 2 local partners – Hardcastle Restaurants Private Ltd. in western India, and Connaught Plaza
Restaurants Private Ltd. in northern India.McDonald's came to India initially and failed
because no one was interested in their products (Burgers + Non-Veg) as the product did not exist
in India at that time and few people who were trying it were the ones exposed to American
culture. As we Indians were not exposed to these kind of food items so as these items were new
to Indians and they had to get used to these products so initially McDonald’s failed in India. And
as Indian culture was totally different from other countries because there are many religions
practiced in India .As McDonald was a foreign firm it introduced the same culture in the Indian
market as it served pork and beef due to which many MUSLIMS and HINDUS did not go to the
restaurant and finally it resulted in failure of McDonald’s in India. As many prefer to eat
vegetarian and many prefer non-vegetarian food items. After the failure the experts did a
research on why McDonald’s was a failure in India after they got to know the reason is the
culture diversification. Then McDonald’s made changes in its menu and did localization of its
products by introducing both vegetarian and non-vegetarian food items in it’s menu card the
company started to grow drastically and slowly became a market leader. From one outlet to
currently 350 outlets in India and McDonald’s now planning to implement more 1000 outlets by
next decade to serve 1.2 billion Indian Population.The eating-out market in India, which is
dominated by unorganised players, is expected to reach $131 billion by 2022. The total sales of
quick-service restaurants are estimated to grow by 9.2% to reach $21.6 billion by then.
34
2.5 CSR OF MCDONALD’S:

Corporate social responsibility of each companies plays in today’s generation as public is very
much concerned about the society as which firm is doing well to the society the public will also
support the firm for this purpose each of the companies are coming up with CSR. The CSR of
McDonald’s is that its going to promote a healthy and safe working environment to its
employees with the scope of 2020. And McDonald’s is also aiming to increase its in-store
recycling and reusing of items 50% and also reduce its wastages to a maximum level.

2.6. SWOT ANALYSIS OF MCDONALD’S:

STRENGTHS:

 Biggest fast food service firm.

 Good brand value.
 Localization of the food items.
 More number of franchises owned than restaurants.
 Partnership with well recognized brands.
 It operates in 119 countries and has more than 33500 outlets across globe.
 It is the top 7th brand in the food industry.

WEAKNESS:

 Nowadays Customer is concerned about health and avoids unhealthy products.

 Different varieties of cultures are available across the globe.
 It faces negative forces from various firms.
 Cannot change the prices of its products due to competition

35
OPPORTUNITIES:

 Offering variety of products to its customers.

 Cheap pricing of products which is difficult to be matched by its competitors.
 Home meal delivery.
 Availability of stores across the Globe where customers can easily approach the stores.

THREATS:

 Changing government regulations.

 Entry of new entrants into the market.
 Changing consumer behavior.
 Changing in values of the currencies.
 Saturated fast food restaurants in developed economies.
 Environmental factors.

36
 Chapter 3

3.1 STATEMENT OF THE PROBLEM :

As we all know that consumer behavior is very difficult to understand because consumer
behavior changes from each consumer to consumer because each consumer has different tastes
and preferences, likes and dislikes etc so main problem here is understanding the consumer
behavior. Its really difficult to understand a consumer because there is not a single customer
there are number of customers whom an organization needs to understand in order to make its
organization successful. Similarly the competition faced by McDonald’s is very high as now a
days competition level is very high and it is very difficult to find out true competitors of
McDonald’s as there are number of new entrants entering into the market.

3.2 TITTLE OF THE STUDY :

“A STUDY ON CONSUMER BEHAVIOUR AND THE COMPETETION FACED BY

McDonald’s”

3.3 OBJECTIVES OF THE STUDY ;

Studying consumer behavior helps the companies to understand the buying behavior of the
different customers the main objective of the study was to understand how the customers make
the purchasing decision to understand the purchasing pattern of the customers in accordance of
different companies. In my study we can also suggest big managers the reasons behind the
acceptance and rejection of the products by the different customers and in accordance to that the
managers can also change their strategies according to these customers taste and preferences so
the understanding of the consumer behavior is really very important.

37
We also know that competition is very important thing that each and every firm must face in the
market. As if any one of the firm is not serious about the competition then it will b very difficult
for them to survive in the market. Each and every firm which exists in the market has to face
some or the other competition in the market and there are very few firms which are monopoly in
the market but rest of the firms has to face some or the other competition In existing market. If
any firm does not take corrective measures to meet its competition then the firm or the
organization has to wind up soon as its not easy for any organization to survive in any market
where the competition is very high as each and every organization comes up with their own
strategies to meet the competition. Similarly McDonald’s comes up new and new strategies to
beat or meet the competition in my study I have come across many strategies which the firm
keeps on changing due to the change in market conditions as the market is daily being filled with
new and new entrants a for this McDonald’s keeps on changing its strategies so that they can
easily face the competition in the market by new and old entrants. In my study I had come across
various situations where many firms had to wind up their firm due to high competition and
failing to change their strategies in accordance to the changing market some examples are
DOCOMO, Chevrolet, idea etc. this happened as they failed to meet the competition and the
changing market conditions.

Some of the main objectives of study is :

 To understand the behavior of different customers and what are the different types of
customers in the market
 To understand the relationship between consumer behavior and the marketing concept,
the societal marketing concept, as well as segmentation, targeting and positioning.
 To understand the relationship between customer behavior and other aspects of the
markets such as customer value, customer satisfaction, customer trust and customer
retentions.
 To understand how the latest technologies have an impact on the changing customer
behavior Example new ordering machines in McDonald’s to reduce the long ques of the
customers to place their orders to have their meals.

38
 To understand how the economy of the world affects the customer behavior. Like during
recession the purchasing power of the customers reduces due to non flowing of money or
currency in the market and during the time of booming stage the purchasing power of the
customer increases due to more flow of currency in the market.
 To understand how marketing techniques have an impact on the customer behavior. Like
more of advertisement of a particular product influences the customers to buy that
particular product as intensive advertisement leads to changes in consumer behavior as it
may influence or discourage the consumer to buy that particular product.
 To understand how a firm can affect the sales of another firm and how a firm can involve
in winding up of a firm like due to reliance JIO many telecommunication firms like
DOCOMO, idea have gone into losses and AIRTEL, Vodafone are also running into
losses and the reason was reliance JIO
 To understand what are the problems faced by each firm in the market due to competition
and what measures are to be taken to meet them.
 To understand what are the strategies used by each of the firm to meet the competition
and how they can bring changes in their current strategies so that they can meet the
competition in the market.
 To understand how the firm should work on improving its firm by observing their
competitors in the market.
 To understand what happens if the competition in the market is not being faced or met
properly in the market.
 To seek new innovative ideas by looking in the level of competition in the market and
desire of gaining monopoly in the market.

39
3.3. RESEARCH INSTRUMENTS (QUESTIONNAIRE):

1) Which age group you belong to?

 15-20
 20-25
 25-30
 30 & above.

2) How often do you visit fast food restaurants?

 Everyday
 Alternative days
 Weekends
 Once in a month

3) Do you prefer to sit at McDonald’s and have your meal or you prefer take away?

 Sit and have

 Take away

4) When do you like to visit McDonald’s in a day’s time?

 Morning
 Afternoon
 Evening
 Night

40
5) Which restaurant coffee would you prefer to have?

 Café coffee day

 Mc café
 Starbucks
 Others

6) According to you why is McDonald’s known for?

 Variety of products
 Services
 Taste
 Cost

7) According to you McDonald’s products are?

 Cheap
 Average
 Costly
 Very costly

8) What is the range of McDonald’s from you house?

 1 km or less
 1-3 km
 3-5 km
 5km & more

9) Are McDonald’s products hygienic compared to other restaurants?

 Yes
 No

41
10) What are problems faced by you at McDonald’s?

 Long ques
 Non hygienic
 Delay in order delivery
 No problems

11) Do you think McDonald’s can beat its competitors in the market?

 Yes
 No
 May be
 Never thought of it

12) Which of the following is your favorite at McDonald’s?

 Big Mac Burger

 Mac veggie
 Big Mac Chicken Burger
 Maharaja Mac
 Other

13) What would you prefer at McDonald’s?

 Vegetarian
 Non-vegetarian

14) Which restaurants do you prefer for burgers?

 McDonald’s
 KFC
 Burger king
 Others

42
15) With whom would you like to visit McDonald’s?

 Family
 Friends
 Partner
 Office colleagues

16) How much would you like to spend at McDonald’s?

 100-200
 200-300
 300-500
 500 & above

17) How did you get to know about McDonald’s?

 Friends
 Family
 Advertisements
 Other

18) How much time do you spend at McDonald’s?

 10 minutes
 20 minutes
 30 minutes
 1 hour or more

43
3.4. DEFINITION OF THE TERMS USED:

The information is collected by various means

 Circulation of Google form among various people of different age groups having
different consumer behavior.
 Interacting with the employees and manager of the store.
 Interacting with different customers after their meal.
 Circulating of pamphlets among the customers to record the information.
 Through the website of McDonald’s.

3.5. SCOPE AND LIMITATION OF THE STUDY:

SCOPE OF THE STUDY:

 Helps to understand the different consumer behavior of different customers.

 Helps to understand the purchasing and rejection pattern of various customers.
 Helps to understand the wants and needs of the customer.
 Helps to boost the sales and profit by supplying the products which are needed by the
customers.
 Helps the firm to survive in market in long run.
 Helps to meet the competition in the market.
 Helps to understand strategies of different firm and also to change our strategies in
accordance to the competitors.
 Helps to understand how the firms can beat the competition in the market and acquire
greater market share.
 Helps to understand what innovation and modification a firm must do in their career.

44
LIMITATIONS OF THE STUDY:

 Greater difficulty in understanding the consumer behavior as it changes from consumer to

consumer in accordance to place, product, price etc.
 Greater difficulty in collection of the data as customer do not interact much
 Greater difficulty in understanding the big competitors if the firm at many new entrants
are entering in the market.
 Even after collection of data much of the data collected cannot be relied upon.
 Many of the customers were not willing to respond or interaction.
 Data collected may be false also.

3.6. CHAPTER SCHEME:

 STATEMENT OF THE PROBLEM.

 TITTLE OF THE STUDY.
 OBJECTIVE OF THE STUDY.
 RESEARCH INSTRUMENTS (QUESTIONNAIRE).
 SCOPE AND LIMITATION OF THE STUDY.

45
 CHAPTER 4

DATA ANALSIS AND INTERPRETATION.

The following are the 40 responses which I have collected through Google form which shows
how the customer behavior changes from customer to customer and product to product

1) Which age group you belong to?

TABLE 4.1

SL.NO PARTICULARS NO.OF % OF

RESPONDENTS RESPONDENTS
1. 15-20 5 12.5%
2. 20-25 17 42.5 %
3. 25-30 13 32.5%
4. 30 & above 5 12.5%
Total 40 100%

ANALYSIS; From above table we get to know that 12.5% of them belong to 15-20 age group ,
42.5% of them belong to 20-25 age group, 32.5% belong to 25-30 age group and 12.5 % belong
to 30 & above age group.

GRAPH 4.1

INFERENCE: From the above data we get to know that 20-25 age group people visit restaurants
regularly.

46
2) How often do you visit fast food restaurants?

TABLE 4.2

SL.NO PARTICULARS NO.OF % OF

RESPONDENTS RESPONDENTS
1. EVERYDAY 2 5%
2. ALTERNATE 9 22.5 %
DAYS
3. WEEKENDS 17 42.5%
4. ONCE IN A 12 30%
MONTH
Total 40 100%

ANALYSIS: In above table we can see 5% of them visit daily 22.5% of them visit alternate
days, 42.5% of the visit on weekends and 30% of them visit once in a month.

GRAPH 4.2

INFERENCE: From the above data we get to know that majority of people like to visit
restaurants on weekends.

47
3) How much time do you spend at McDonald’s?

TABLE 4.3

SL.NO PARTICULARS NO.OF % OF

RESPONDENTS RESPONDENTS
1. 10 MINUTES 5 12.5%
2. 20 MINUTES 7 22.5 %
3. 30 MINUTES 19 47.5%
4. 1 HOUR OR MORE 9 22.5%
Total 40 100%

ANALYSIS: From above table we get to know 12.5% of them spend 10 min, 22.5% of them
spend 20 minutes, 47.5% of them spend 30 min and 22.5% of them spend 1 hour or more

GRAPH 4.3

INFERENCE: From above data we can make out majority of people like to spend 30 minutes
in McDonald’s.

48
4. Do you prefer to sit at McDonald’s and have your meal or prefer take away?

TABLE 4.4

SL.NO PARTICULARS NO.OF % OF

RESPONDENTS RESPONDENTS
1. SIT AND HAVE 29 72.5%
2. TAKE AWAY 11 27.5 %
Total 40 100%

ANALYSIS: From above table we get to know that 72.5% of the prefer to sit and have and
27.5% of them prefer take away

GRAPH 4.4

INFERENCE: From the above data we get to know that majority of people prefer to sit and have
at McDonald’s.

49
5) when do you like to visit McDonald’s at day’s time?

TABLE 4.5

SL.NO PARTICULARS NO.OF % OF

RESPONDENTS RESPONDENTS
1. MORNING 2 5%
2. AFTERNOON 6 15 %
3. EVENING 22 55%
4. NIGHT 10 25%
Total 40 100%

ANALYSIS: From the above table we get to know that 5% of them like to visit in morning, 15%
of the like to visit in afternoon, 55% of the like to visit in evening and 25% of them like to visit
at night.

GRAPH 4.5

INFERENCE: From the above data we get to know that majority of people like to visit
McDonald’s in evening.

50
6) Which restaurant coffee would you prefer to have?

TABLE 4.6

SL.NO PARTICULARS NO.OF % OF

RESPONDENTS RESPONDENTS
1. CAFÉ COFEE DAY 15 37.5%
2. MC CAFE 5 12.5 %
3. STAR BUCKS 12 30%
4. OTHERS 8 20%
Total 40 100%

ANALYSIS: From the above table we get to know 37.5% prefer café coffee day, 12.5% prefer
Mc café, 30% prefer star bucks and 20% prefer others.

GRAPH 4.6

INFERENCE: From the above data we get to know majority of people prefer café coffee day
coffee over Mc café coffee.

51
7) According to you why is McDonald’s known for ?

TABLE 4.7

SL.NO PARTICULARS NO.OF % OF

RESPONDENTS RESPONDENTS
1. VARIETY OF 17 43.6
PRODUCTS
2. SERVICES 6 15.4 %
3. TASTE 15 38.5%
4. COST 2 2.5 %
Total 40 100%

ANALYSIS: From the above table we get to know that 43.6% see as variety of products, 15.4%
see as services, 38.5% see as taste and 2.5% see McDonald’s as cost.

GRAPH 4.7

INFERENCE: From the collected data we get to know that McDonald’s is known by majority of
people for variety of products.

52
8) According to you McDonald’s products are?

TABLE 4.8

SL.NO PARTICULARS NO.OF % OF

RESPONDENTS RESPONDENTS
1. CHEAP 5 12.5%
2. AVERAGE 32 80 %
3. COSTLY 2 5%
4. VERY COSTLY 1 2.5 %
Total 40 100%

ANALYSIS: From the above table we get to know that 12.5 % of them think its products are
cheap, 80% of them think they are average, 5% of them think its products are costly and 2.5% of
them think its products are very costly.

GRAPH 4.8

INFERENCE: From the data collected we get to know McDonald’s products are cheap
compared to its competitors

53
9) What is the range of McDonald’s from your house?

TABLE 4.9

SL.NO PARTICULARS NO.OF % OF

RESPONDENTS RESPONDENTS
1. 1 KM OR LESS 10 25%
2. 1-3 KMS 12 30%
3. 3-5 KMS 10 25%
4. 5KM & ABOVE 8 20 %
Total 40 100%

ANALYSIS: From the above table we get to know that 25% of them have McDonald’s 1 km or
less, 30 % of them have 1-3km distance, 25% of them have 3-5 km of distance and 20% of them
have 5 km & above.

GRAPH 4.9

INFERENCE: From the data we got to know that majority of the people have a distance of 1-3
km from their house so McDonald’s must open more branches so that people may approach
McDonald’s easily.

54
10) Are McDonald’s products hygienic compared to other restaurants?

TABLE 4.10

SL.NO PARTICULARS NO.OF % OF

RESPONDENTS RESPONDENTS
1. YES 30 76.9%
2. NO 9 23.1%
Total 39 100%

ANALYSIS: From the above table we get to know that 76.9% of them think McDonald’s
products are hygienic and 23.1% of them do not think its hygienic.

GRAPH 4.10

INFERENCE: From the above data majority of the people think McDonald’s are hygienic and
some do not so McDonald’s have to work on this.

55
11) What are the problems faced by you at McDonald’s?

TABLE 4.11

SL.NO PARTICULARS NO.OF % OF

RESPONDENTS RESPONDENTS
1. LONG QUES 7 17.9%
2. NON HYGIENIC 3 5.2%
3. DELAY IN 11 28.2%
ORDERS
4. NO PROBLEMS 19 48.7%
Total 40 100%

ANALYSIS: From the above data we get to know that 17.9% face long ques problem, 5.2% of
them face non hygienic problems 28.2% of them face delay in orders and 48.7% do not face any
problem.

GRAPH 4.11

INFERENCE: From the above data we can see majority of people do not face any problem but
some people face some so McDonald’s have to work to reduce these.

56
12) Do you think McDonald’s can beat its competitors?

TABLE 4.12

SL.NO PARTICULARS NO.OF % OF

RESPONDENTS RESPONDENTS
1. YES 5 12.5%
2. MAY BE 24 60%
3. NO 3 7.5%
4. HAVE NOT 8 20%
THOUGHT
ABOUT IT
Total 40 100%

ANALYSIS: From the above table we get to know that 12.5 % of them think McDonald’s can
beat competition, 60% of them think may be 7.5% of them think no they will not and 20% of
them did not think about it

GRAPH 4.12

INFERENCE: From the above data we get to know that majority of the people think
McDonald’s may or may not beat its competitors in the market.

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13) Which one of the following is your favorite at McDonald’s?

TABLE 4.13

SL.NO PARTICULARS NO.OF % OF

RESPONDENTS RESPONDENTS
1. BIG MAC 10 25%
BURGER
2. MAC VEGGIE 5 12.5%
3. BIG MAC 13 32.5%
CHICKEN
BURGER
4. MAHARAJA MAC 5 12.5%
5. OTHER 7 17.5%
Total 40 100%

ANALYSIS: From the above table we get know that 25% of them prefer Big Mac Burger, 12.5%
of them prefer Mac Veggie, 32.5% of them prefer Big Mac Chicken Burger, 12.5% of them
prefer Maharaja Mac and 17.5% prefer others.

GRAPH 4.13

INFERENCE: From the above data we get to know that Chicken products of McDonald’s are in
more demand than its other VEG products and customer demand for big burgers also.

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14) What would you prefer at McDonald’s?

TABLE 4.14

SL.NO PARTICULARS NO.OF % OF

RESPONDENTS RESPONDENTS
1. VEG 28 30%
2. NON VEG 12 70%
Total 40 100%

ANALYSIS: From the above table we get to know that 70% of them prefer NON VEG and 30%
of them prefer VEG.

GRAPH 4.14

INFERENCE: From the above collected data we get to know that people demand more of NON
VEG than VEG products at McDonald’s.

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15) Which restaurants do you prefer for burgers?

TABLE 4.15

SL.NO PARTICULARS NO.OF % OF

RESPONDENTS RESPONDENTS
1. McDonald’s 21 52.5%
2. KFC 7 17.5%
3. BURGER KING 8 20%
4. OTHERS 4 10%
Total 40 100%

ANALYSIS: From the above table we get to know that 52.5% of them prefer the burgers of
McDonald’s, 17.5 % of them prefer KFC, 20% of them prefer burger king and 10% of them
prefer others.

GRAPH 4.15

INFERENCE: From the above data we get to know that McDonald’s burgers are more in
demand than other fast food restaurants

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16) With whom would you like to visit McDonald’s?

TABLE 4.16

SL.NO PARTICULARS NO.OF % OF

RESPONDENTS RESPONDENTS
1. FAMILY 13 32.5%
2. FRIENDS 21 52.5%
3. PARTNER 3 7.5%
4. OFFICE 3 7.5%
COLLEAGUES
Total 40 100%

ANALYSIS: From the above table we get to know that 32.5% of them like to visit with family,
52.5% of them like to visit with friends, 7.5% of them like to visit their partners and 7.5% of
them like to visit with their office colleagues.

GRAPH 4.16

INFERENCE: From the above data we get to know majority of them like to visit McDonald’s
with their friends than family as it proves to be a friends hang out hub

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17) How much would you like to spend at McDonald’s?

TABLE 4.17

SL.NO PARTICULARS NO.OF % OF

RESPONDENTS RESPONDENTS
1. 100-200 5 12.5%
2. 200-300 6 15%
3. 300-500 10 25%
4. 500 & above 19 47.5%
Total 40 100%

ANALYSIS: From the above table we get to know that 47.5% spend more than 500, 25% of
them spend 300-500, 15% of them spend 200-300 and 12.5% of them spend 100-200.

GRAPH 4.17

INFERENCE: From the above collected data we get to know that majority of the people like to
spend 500 & above which means McDonald’s is taking care of its customers.

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18) How did you get to know about McDonald’s?

TABLE 4.18

SL.NO PARTICULARS NO.OF % OF

RESPONDENTS RESPONDENTS
1. FRIENDS 13 32.5%
2. FAMILY 7 17.5%
3. ADVERTISEMENTS 13 32.5%
4. OTHERS 7 17.5%
Total 40 100%

ANALYSIS: From the above data we get to know that 32.5% got to know about McDonald’s by
friends, 17.5% by family, 32.5% by advertisements and 17.5% by other means.

GRAPH 4.18

INFERENCE: From the above data we get to know that majority of the people got to know about
McDonald’s from friends and advertisements but McDonald’s also must concentrate on other
means of conveying of its message to others.

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 CHAPTER-5

FINDINGS, SUGGESTIONS AND CONCLUSION.

FINDINGS:
 McDonald’s have a very good pricing they target customers from various price
perspective.
 McDonald’s keeps on changes it’s strategies so that it can meet the competition easily.
 McDonald’s have done various innovations to reduce problems faced by customer like
machine order which is convenient and helpful to various customers.
 McDonald’s takes care of its staff and its customers properly because they know it is very
important for them to be successful.
 McDonald’s have adopted latest technologies and working more towards the hygiene of
the products
 McDonald’s keeps on adding products to its menu so that customers do not get bored of
having the items again and again.

SUGGESTIONS:

 Create Better awareness about the product to the consumers from television ads.
 Quality and attributes must be such that customers must feel it as economical.
 There must not be change in price in a short span of time.
 Price must not be increased because many customers want to substitute.
 Bringing about diversity of people in the organization by recruiting outsiders for valuable
posts, ensures that there are a variety of ideas and suggestions for the company, which will
help them to innovate, grow and succeeds.
 McDonald’s must work on more non vegetarian products as its demand is increasing.
 Must improve its sub brand Mc café products in order to meet its competitors.

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CONCLUSION:

The customers can take into confidence so that it helps MCDONALD’S with the better insights
it has strong brand image and also better distribution network. This study clearly indicates that
retailer’s opinion; there is no stage complement towards the milk marketing of MCDONALD’S
and how services can be improved. After liberalization, many foreign companies have entered
into Indian market; so, MCDONALD’S should strengthen all its resources to face their
competitors and adopting itself to changing scenario. McDonald’s also is concentrating on its
customers so that they don’t lose them as they know customers are very important to success of
any organization. McDonald’s is also making many innovations and adding new products to its
product line so that the customers do not feel bored of having the same food again and again.
McDonald’s also keeps changing and implementing new strategies so that the competition can be
met by them. Therefore I would like to conclude that McDonald’s has a greater market share
than other fast food restaurants due to its strong brand image.

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 ANNEXURES:
(QUESTIONNARE)

I MUIZ KHAN STUDENT of REVA UNIVERSITY during a project on CONSUMER

BEHAVIOR AND IMPACT OF COMPETITION ON MCDONALD’S. I would request
you to spare 10 minutes of your time to answer my questionnaire.

Please express your opinion for the following questions without hesitation.

1) Which age group you belong to?

 15-20
 20-25
 25-30
 30 & above.

2) How often do you visit fast food restaurants?

 Everyday
 Alternative days
 Weekends
 Once in a month

3) Do you prefer to sit at McDonald’s and have your meal or you prefer take away?

 Sit and have

 Take away

4) When do you like to visit McDonald’s in a day’s time?

 Morning
 Afternoon
 Evening
 Night

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5) Which restaurant coffee would you prefer to have?

 Café coffee day

 Mc café
 Starbucks
 Others

6) According to you why is McDonald’s known for?

 Variety of products
 Services
 Taste
 Cost

7) According to you McDonald’s products are?

 Cheap
 Average
 Costly
 Very costly

8) What is the range of McDonald’s from you house?

 1 km or less
 1-3 km
 3-5 km
 5km & more

9) Are McDonald’s products hygienic compared to other restaurants?

 Yes
 No

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10) What are problems faced by you at McDonald’s?

 Long ques
 Non hygienic
 Delay in order delivery
 No problems

11) Do you think McDonald’s can beat its competitors in the market?

 Yes
 No
 May be
 Never thought of it

12) Which of the following is your favorite at McDonald’s?

 Big Mac Burger

 Mac veggie
 Big Mac Chicken Burger
 Maharaja Mac
 Other

13) What would you prefer at McDonald’s?

 Vegetarian
 Non-vegetarian

14) Which restaurants do you prefer for burgers?

 McDonald’s
 KFC
 Burger king
 Others

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15) With whom would you like to visit McDonald’s?

 Family
 Friends
 Partner
 Office colleagues

16) How much would you like to spend at McDonald’s?

 100-200
 200-300
 300-500
 500 & above

17) How did you get to know about McDonald’s?

 Friends
 Family
 Advertisements
 Other

18) How much time do you spend at McDonald’s?

 10 minutes
 20 minutes
 30 minutes
 1 hour or more

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BIBLIOGRAPHY:

WEBSITES

GOOGLE SEARCH ENGINE

WWW.MCDONALDS.COM
WWW.MCDONALDS.IN
COMPANY VOUCHERS.

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