PREFACE

The project title A Study on Consumer Satisfaction in “Fast-Food Service” with special refer-
ence to McDonalds is the analysis of the Consumer Satisfaction level of fast food industry. This
project involves the service level provided by McDonalds and other fast-food to its customers. The
survey was conducted so as to analyze the service quality prevailing in the current industry and the
improvement that can be made upon it.

Market research study has been conducted in order to bring out the picture of customer satisfaction
and service quality that exists in this industry. The differences in customer satisfaction and service
quality that exists in the market. What the customer’s preferences are about the hospitality provided
by the fast food industry?

After this a comprehensive and comparative analysis has been made. And conclusion has been
made keeping in mind the detailed analysis of the findings, which has been collected through the
market research.

CONTENTS
S.NO CONTENETS
 1 Executive Summary
2 Introduction
3 Restaurant Industry
3,1 Company profile
3,2 Present position of this industry
4 Research Objective
5 Research Methodology
6 Data Collection and Analysis
7 Conclusion

INTRODUCTION on Customer Satisfaction of McDonalds

THE INDIAN FAST FOOD MARKET - AN OVERVIEW

Up to the year 1995 Indian food market was predominantly dominated by the traditional dhabas, po-
tential restaurants in the customer’s colony and some restaurants in a five star hotel. Having fast
food i.e., burgers, pizzas etc., was considered to be an option for eating

out. It was not at all synonymous with the American concept of fast food as a quick takeaway bite
or a substitute for lunch.

Apart from fast food being available at the local colony restaurants and at some five star restaurants,
Nirula’s was the only fast food chain existing in the country with its restaurants expanding with ev-
ery passing year since its inception. It has been almost 50 years now since its set up and there is
hardly any one who doesn’t know that Nirula’s exists. Nirula’s was the first one to bring fast food
to India back in the 50’s since then it has evolved into an eating place with tremendous brand equity
and brand recognition. It proved to be a perfect eating place for an average middle class who wants
to eat out at an affordable price that can’t afford the five-star restaurants and would not want to go
to the local dhabas.

Nirula’s almost had a monopoly for decades due to the way it has been placed. It is a place where a
person from an average middle class group to upper class group can go to eat out. Its popularity has
increased over the decades. With the trends changing and the incomes rising almost anybody who
can afford to eat out could go for a snack at Nirula’s.

However the year 1995-96 witnessed a drastic change. 1996 is considered to be the year of India’s
entry into the world food market. International giants such as McDonalds, Dominos, and Pizza Hut
all bombarded the Indian food market.

Before these, UK-based joint called Wimpy’s had established its chain in the country in 1990. By
year 1996 it had about three to four joints established in Delhi. However it did

not pose much of a threat to Nirula’s reason being lack of variety and that Wimpy’s was looked at
more of a hangout place rather than eating out with the family.

However, restaurant business is such that it is surrounded by competitors from all sides, be it Indian
joints or foreign joints.

Each of the foreign food joints that have come into the country have their own strategy lined up to
differ from the rest. Each of these studied the Indian tastes and style and thereby targeted the Indian
customer. An average Indian restaurant goes is no convenience eater, unlike the Americans.

If he is paying, he is paying for food that tastes good (Spicy, soft, savory etc.), not for how pleas-
antly the stuff is served or how spotless the windows are. He wants food for that can make him
come back to the restaurant. An Indian food joint owner would definitely understand this but an
American company which comes and places itself directly without knowing the customer is defi-
nitely in for trouble. Customer loyalty in a restaurant business is essentially low. A customer when
he comes to a restaurant usually looks at the quality of food, variety, ambience, speed of delivery
and the location. The variety would influence the frequency of visits since taste is a dominating fac-
tor to the Indian customers.

Almost all the fast food chains both Indian i.e., Nirula’s and foreign i.e., McDonalds etc., are target-
ing the families. This serves to be an advantage because the turnaround time is short and family has
higher propensity to spend because different members order larger variety of dishes.

Each of these restaurants delivers quality, value and services in its own way through its line of
strategies. The emphasis is on the value that the restaurant is delivering to the customers.
RESTAURANT INDUSTRY
Company Profile

Is the world's leading food service retailer with more than 30,000 restau-
rants in 118 countries serving 46 million customers each day?

History and Background

In 1955, Ray Kroc, a 52-year old salesman of milkshake mixing machines, became interested in a
string of seven restaurants owned by Richard and Maurice McDonald. These two founded the quick
service restaurant industry when they converted their barbecue drive in with car hops into the
world’s first McDonald’s limited menu, self service drive-in in 1958, in California. Kroc liked their
fast-food restaurant concept and bought the Chain for $2.7 million.
He opened his first McDonald’s in Illinois in April 1955 and founded the company that evolved into
McDonald’s corporation. He decided to expand the chain by selling Franchises, and the number of
restaurants grew rapidly.

McDonalds is the largest and the best known global food service retailer. Its global market potential
is enormous seeing the member of restaurants it has. On any day McDonald’s serves less than one
percent of the world’s population. Its outstanding brand recognition. (It is one of the most recog-
nized brand all over the world), experienced management, high quality food, site development, high
quality food, site development expertise, advanced operational systems and unique global infra-
structure helps it to capitalize on global opportunities.

McDonald’s Vision: is to dominate the global food service industry. Global dominance means set-
ting the performance standard for customer satisfaction and increasing market share and profitabil-
ity through successfully implementing convenience value and exception strategies.

McDonalds franchises restaurants in many international markets, and decisions relating to the selec-
tion of candidates are made local by the management in the country where the restaurant is located.

Mc Donald’s India
A locally Owned Company
McDonald’s India is a locally owned company managed by Indians. Local Sourcing is Key for
Truly Indian Products

Around the world, McDonald’s traditionally operates with local partners or local management. In
India too, McDonald’s purchases inputs from local suppliers. McDonald’s constructs its restaurants
using local architects, contractors, labour and - where possible - local materials. McDonald’s hires
local personnel for all positions within the restaurants and contributes a portion of its success to
communities in the form of municipal taxes and reinvestment. Nearly 98% of the inputs are sourced
from the domestic market

McDonald’s sources food products from local companies. Mutton patties are supplied by Al-
Kabeer, Hyderabad, Andhra Pradesh; fresh lettuce comes from Pune, Ooty,

Maharashtra and Dehradun; cheese from Dynamic Dairies, Baramati, Maharashtra; sesame seed
buns and sauces from Cremica Industries Phillaur, Punjab, and pickles from VST Natural Foods,
Hyderabad, Andhra Pradesh.

Setting Up of an Extensive Food Chain

For three years before the opening of the first McDonald’s restaurant in India, McDonald’s and its
international supplier partners worked together with local Indian

companies to develop products that meet McDonald’s vigorous quality standards. These standards
also strictly adhere to Indian Government regulation on food, health and hygiene. Part of this devel-
opment involves the transfer of state-of-the-art food processing technology which has enabled In-
dian business to grow by improving their ability to compete in today’s international markets.

For instance, Cremica Industries worked with another McDonald’s supplier from Europe to develop
technology and expertise which allowed Cremica to expand its business from baking to also provid-
ing bread and batters to McDonald’s India and other companies. Another benefit is expertise in the
areas of agriculture which allowed McDonald’s and its suppliers to work with farmers in Ooty,
Pune and Dehradun and other regions to cultivate high quality lettuce. This includes sharing ad-
vanced agricultural technology and expertise like utilization of drip irrigation systems which reduce
overall water consumption and agricultural management practices which result in greater yields.

In some cases, these Indian suppliers had the technology - but no market for the products they pro-
duced. For example, Dynamic Dairies -- through its relationship with McDonald’s was introduced
to a large customer of milk casein and other milk derivatives. The two companies entered into a
business relationship resulting in an initial export order of approximately US $ 12 million per year.
McDonald’s local supply is made through

Radhakrishna Food land, to get products from the various suppliers to restaurants in Delhi.

Respect for the Indian Customers and Culture

McDonald’s worldwide is well known for the high degree of respect to the local culture. McDon-
ald’s has developed a menu especially for India with vegetarian selections to suit Indian tastes and
culture. Keeping in line with this McDonald’s does not offer any beef or pork items in India. Mc-
Donald’s has also re-engineered its operations to address the special requirements of a vegetarian
menu. 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 a

serving.

Community Partnership
McDonald’s believes in giving back to the communities it serves. Wherever McDonald’s goes it be-
comes a part of the community it operates in and contributes towards the development of the local-
ity. For example, McDonald’s has introduced the concept of ‘Litter Patrol’ - McDonalds’s employ-
ees go around the immediate vicinity of the restaurant every day, packing up garbage left behind not
only by customers from McDonald’s restaurants but also by other visitors to the area. The result is a
cleaner neighborhood.

Quality, Service, Cleanliness and Value

The McDonald’s philosophy of QSC & V is the guiding force behind its service to the customers.

McDonald’s India serves only the highest quality products. All McDonald’s suppliers adhere to In-
dian government regulations on food, health and hygiene while continuously maintaining McDon-
ald’s own recognized standards. All McDonald’s products are prepared using the most current,
state-of-the-art cooking equipment to ensure quality and safety.

At McDonald’s the customer always comes first. McDonald’s India provides fast and friendly ser-
vice - the hallmark of McDonald’s which sets its restaurants apart from others.

McDonald’s restaurants provide a clean, comfortable environment especially suited for families.
This is achieved through McDonald’s stringent cleaning standards, carefully adhered to.

McDonald’s menu is priced at a value that the largest segment of Indian consumers can afford. Mc-
Donald’s does not sacrifice quality for price - rather McDonald’s leverages economies of scale to
minimize costs while maximizing value to customers.

MCDONALD’S INDIA-SUPPLY CHAIN

A taste of freshness from all over India

Did you know that every year, Rs. 50,000 Crore worth of food produce is wasted in India? This is
mainly because of the lack of proper infrastructure for storage and transportation under controlled
conditions.

McDonald's is committed to providing quality products while supporting other Indian businesses.
And so, McDonald's spent a few years setting up a unique Cold Chain.

The cold chain is necessary to maintain the integrity of food products and retain their freshness and
nutritional value. It refers to the procurement, warehousing, transportation and retailing of food
products under controlled temperatures. Setting up the cold chain has involved the transfer of state-
of-the-art food processing technology by McDonald’s and its international suppliers to pioneering
Indian entrepreneurs, who have now become an integral part of the cold chain.

PRESENT POSITION OF THIS INDUSTRY

Global: - Globally this industry is witnessing erosion of customer base. This is due to the fact fast-
food contain and access amount of fasts, oil, cholesterol, which increase the health problem the cus-
tomers are becoming more and more Health Conscious and are becoming more conscious in there
food habits.

In India :- The consumer ignore the above mention factors barring if you added to this people ten-
dency to adopt westernized customer has helped fast-food MNC’s to increase there markets.
Major players in this field:-

1. McDonald’s
2. Dominoz Pizza
3. Pizza Hut

These day working executives are busy a lot they don’t have the spare time to cook food due to
there high this possible income and ever increasing arperalional levels they prefer to it out at this
fast food outlets (McDonalds, Dominoz’s, Pizza Hut) where they find the match according to there
asperitional level.

SERVICE

A service is any act or performance that are party can offer to another that is essentially intangible
and does not result in the ownership of anything its production may or may not be tied to a physical
product.

Service GAP. Service gap is factors which cause the unsuccessful delivery. These are five gap
cause the unsuccessful/delivery.

1. Gap between consumer expectation and management perception.

2. Gap between management perception and service quality specification and service delivery.

3. Gap between service delivery and external communication

4. Gap between perceived service and expected service,

PRESENT POSITION OF THIS INDUSTRY IN RESPECT TO SERVICE GAP

Gap between consumer expectation a management perception:-

While the management of pizza hut perceives that the consumers need better quality food, but the
consumers may a clinically want better ambience, (Like, light, music) or work floor area.

Gap between management perceptions Service-quality specification.

The “fast” service provided by McDonald goes very well with its customer perceptions. Here the
negotiation has perceived well what the customer wants but, the main area where at lacks is that it
has not specified its customer “how to serve “or” what quality to be served”.

Gap Between service quality specifications & service delivery

The delivery personnel in McDonald are mainly fresh graduates without a personal degree in “hotel
management”.

If the other person visit except the recognize restaurant like and what is were in some what differ-
ence. They find what have shown in media and what shown here in name some what difference.

Gap between perceived service and expected service.

The customer of McDonald are wanted free home delivery but presently there not providing.
Whereas Pizza Hut is providing home delivery to there customers.

After this analysis we come to no that there is some service gap is there inside this industry which
needed to improve.

PRESENT POSITION OF THIS INDUSTRY IN RESPECT TO SERVICE GAP

Gap between consumer expectation a management perception:-

While the management of pizza hut perceives that the consumers need better quality food, but the
consumers may a clinically want better ambience, (Like, light, music) or work floor area.

Gap between management perceptions Service-quality specification.

The “fast” service provided by McDonald goes very well with its customer perceptions. Here the
negotiation has perceived well what the customer wants but, the main area where at lacks is that it
has not specified its customer “how to serve “or” what quality to be served”.

Gap Between service quality specifications & service delivery

The delivery personnel in McDonald are mainly fresh graduates without a personal degree in “hotel
management”.

If the other person visit except the recognize restaurant like and what is were in some what differ-
ence. They find what have shown in media and what shown here in name some what difference.

Gap between perceived service and expected service.

The customer of McDonald and Nirula’s are wanted free home delivery but presently there not pro-
viding. Whereas Pizza Hut is providing home delivery to there customers.

After this analysis we come to no that there is some service gap is there inside this industry which
needed to improve.

MARKETING SCENARIO
The first step in developing a marketing strategy is to understand the customers, reacting to their
changing needs and the changing dynamics of the market. To this end McDonald’s conducts several
stages of in-depth customer research and audits of the McDonald's brand. The research involves
both quantitative and qualitative research methods. This research describes how McDonald's is per-
ceived and about changes that are taking place in the market. Research is also conducted into the lo-
cal area of their restaurants, into the general market environment, and into specific areas of their
business.

They also believe in having a thorough understanding of their competition, which is considered, at
three distinct levels:
Total Eating out Market gives the broadest competitive context and includes all restaurants, hotels,
pubs, and any other outlet where people eat. This category contains the entire gamut of eating out-
lets ranging from the “mom-&-pop outlet” to the most exclusive five star hotels.

Quick Service Restaurant sector includes any outlet where food is served quickly and the process is
usually self-service. Example: Domino’s, Nirula’s.

Burger House Sector includes those restaurants that serve different varieties of burgers as their pri-
mary menu item. This is the narrowest sector in consideration. Example: Wimpy’s.

Having an in-depth understanding of all aspects related to the competition allows McDonald’s, to
monitor the competitive environment to exploit the opportunities and check threats in time. This is
achieved through the following:

Competitive Pricing: Being in touch with the pricing of their competitors allows them to price
their products correctly, balancing quality with value.

Competitive Promotion: At McDonald’s it is believed that before they communicate with their
customers, they must be aware of what the competitors are communicating so that they can create a
beneficial advantage.

Competitive Place: Distribution is the key to any retailer or brand; McDonald's prides itself on
its superior delivery process.

Competitive Product: Quick Service Restaurants are constantly expanding their menus. This can
be done on a short-term promotional basis or as a long-term expansion strategy.

McDonald’s over the past seven years has been successful to place itself in the mindset of the In-
dian customer as an affordable outing compared to the initial impression of “Americanized Indian
Richies”. With their Flag Ship product “Big Mac” absent from India it seems the Maharaja Mac
comes to be the Indian Flag Ship Product. They consider service as one of their key selling points
and focus on four dimensions with a lot of thrust. These are Quality, Value, Service and Cleanli-
ness. It has tried to reach out to the entire Indian market of middle as well as the upper class. E.g. it
has hit on the middle class by

introducing the McSwirl only for Rs. 12 and similarly before that had introduced the McCone
which was simply Ice cream cone priced at just Rs.7. An important point here to be noticed is that
McDonald’s has been co-branding with some very well known brands. Apart from serving Coca-
Cola I all its outlets the McSwirl previously mentioned was introduced as a co-branded Ice cream
with Cadbury’s. Let us look at the various aspects through which McDonalds has tried to position
itself in the Indian market:

1. Product
McDonald's menu internationally is based on five main ingredients: beef, chicken, bread, potatoes
and milk. Their main products are hamburgers, chicken sandwiches, French fries and beverages. In
addition it serves a variety of breakfast items and desserts.

The original McDonald's menu was simplicity itself -hamburgers, cheeseburgers, fries, soft drinks,
coffee and shakes. This limited menu concept triggered the "fast food" concept, because focusing
on just a few items that were prepared with standardized procedures made food service a model of
efficiency. And buying food supplies in quantity as the restaurant chain grew larger enabled it to
keep prices low. Finally, because the menu was limited, it was able to deliver a consistent product,
no matter which restaurant a customer visited. And this consistency has remained a hallmark of Mc-
Donald's even as its menu has expanded over the years. Customers know they can count on being
served the same Big Mac whether they're at a McDonald's in Moscow, Idaho, or Mumbai,
India...the same world famous fries whether they're in Dallas or Delhi.

Mc Donald's India representative says, "We take the hamburger business more seriously than any-
one else." Surprisingly, in India McDonald's has been particularly successful at catering to local
tastes. The global giant is often criticized for standardizing tastes by serving the same burger the
same way everywhere in the world. But that's far from the

truth. Though the core menu--hamburgers, Big Macs, fries, etc.--is available in all McDonald's
restaurants, it's complimented with an array of localized choices. Usually in Asia, about a third of
the menu is made up of dishes you won't find anywhere else, like Pizza McPuffs in India. In fact,
the 25 McDonald's in Bombay, Pune, Delhi etc., feature a menu that is over 75% locally-developed.

India has been the biggest inspiration for McDonald's fusion chefs. With a population that is mostly
Hindu, the restaurant chain can't serve its mainstay--beef. So most of the standard menu had to be
thrown out, down to the "special sauce" that goes into Big Macs elsewhere. Many Hindus, who are
strict vegetarians, eschew mayonnaise, the sauce's main ingredient. McDonald's India developed a
special egg less mayonnaise for the burgers; instead of eggs it used a large amount of mint. In place
of the Big Mac, McDonald's India developed the Maharaja Mac--a mutton burger. All these extra
steps

have been taken to assure Indian customers of the wholesomeness of both products and

their correct preparation. So intense is the idea of Indianization that McDonald's has opened an all-
vegetarian outlet in Ahmedabad, which is predominantly a vegetarian city.

2. Place
McDonalds is ever expanding and due to this its presence is felt by 3.5 million customers in India
alone and more than a billion people worldwide every day. It has excellent networking capabilities
with its suppliers and ensures quality from them. McDonalds India's outlets are generally located
near community centers (some also have small parks adjacent to them) to provide the complete
family experience).

3. Price:
Aimed at luring the Indian middle class, the ice cream cone was started with zero margins to pull in
crowds. McDonald's has always strive to offer quality products at an affordable price. Its bulk pur-
chasing capabilities have given it the cost advantage. It thus strives to be an optimum-cost producer
-not the lowest cost -since quality comes first for this restaurant chain. The products are priced
keeping in mind the target group. Since the people targeted belong to the Socio Economic Classifi-
cation Grid A & B, the company refrained from excessive or premium pricing. In fact, as already
stated earlier, certain items on the menu are actually loss leaders, which facilitate building traffic
into the restaurant. An interesting piece is that the company claims to have a margin of 40 percent
on its soft cone, which is a big hit among the people. Most of the meal combinations i.e. including
burger, French fries and a coke, price are nominal. This could, according to us be an attempt to use
psychological pricing. McDonald’s has also introduced McHappy Hours, to increase attendance
during the lean time (3 pm to 6 pm). This is also in tune with the school and college kids, who come
would like to go out with their friends after school or college. This has yielded returns and the
turnout during this time has increased sharply.
4. Promotion
The emphasis is on projecting McDonald's as a global brand relevant to the local community. The
positioning of McDonald's as a family restaurant is being carefully put across to the consumers.

A) Advertising: McDonalds advertising in India is being handled by Mudra Communications.

Amit Jatia, MD, McDonald's India (Hardcastle Restaurants) has to say the following for Mudra:
"They're completely involved in the brand. They take an active role and we see them as a partner."
McDonald's spends over 5.5crores each year on advertising: the Golden Arches are now more rec-
ognized by kids in metros than their

favorite super hero. McDonald's is recognized as one of the best marketers of the world, investing
some hundreds of millions of dollars every year for advertising and promotion of its image. “Get
them in. Trade them up. Get them back.” These are the three basic steps of McDonald's marketing
strategy, as defined internally at Mudra Communications, the agency handling the account. Shorn of
jargon, this simply means objective number one is to make consumers' step into McDonald's out-
lets. The second objective is to shift the consumer to McDonald's core products (the Vegetarian
Burger with cheese, the McChicken Burger with cheese and Fillet-o- Fish) by increasing sampling
and showcasing the value aspect of McDonald's. Third, increase the frequency of visits by making
the McDonald's brand experience unique and memorable. The Indianised items like McAloo tikki
burger and pizza McPuff are instrumental in bringing in the traffic into the store.

McDonald's has always shown bits of real life in their commercials that seems to have become a
standard for them. Their marketing efforts go far beyond advertising, including special food promo-
tions, games, videos, cassettes, tapes, videos, CDs that customers couldn't get anywhere else for the
value. Because of the diversity of customers that go to McDonald's, they have developed segmented
marketing programs as various key audiences.

B) Public Relations: McDonald's public relations in India are being handled by Corporate Voice
Shandwick, a subsidiary of Weber Shandwick Worldwide. This begins with franchisee involvement
in their communities and extends to other national passions like cricket (McDonalds invites young
and successful cricketers like Yuvraj Singh to inaugurate their restaurants). This means a well orga-
nized psychological bombing aimed at all kind of people, from every race and social class where
the golden arches result to be the overall winner.

Recently, McDonalds was charged by some fundamentalist organizations with using beef talon in
its French fries. This was picked up by the media and resulted in a big controversy. The consultancy
immediately got into action by sending press releases, calling press conferences and opting for an
independent test of its French fries to show that they did not contain beef talon. This paid off as Mc-
Donalds sailed through the crisis smoothly and the consultancy got the award for the "Best handled
Crisis PR campaign" from the Indian Public Relations Association. The consultancy also gets a lot
of media coverage for the brand.

C) Promotions: Using collectable toys, television adverts, promotional schemes in schools and
figures such as Ronald McDonald the company bombards their main target group: children. Happy
meal combine wholesome food with a toy; Ronald McDonald is a special friend; play places(like in
McDonalds, Priya Complex) provide safe and fun recreation and the alliance with Walt Disney
Company let the children's shout even more.

D) Market Research: McDonald's strategy for communication relies heavily on research to fine
tune its significance and effectiveness. An ear closer to the ground because that's where the action
is! An organization has to be on the look out for any slight signals in the market that, suggest some
kind of change. This is where the role of market research

comes in. it can help an organization identify underlying needs and make changes to capitalize on
them accordingly. This is precisely what McDonald's did. From being classified by consumers as
being 'bland' in 1997 to being sought after in 2000 for

'unique' taste, McDonald's India has been the 'biggest experiment' for the worldwide chain, what
with the Indian outfit having to consistently launch products to tickle Indian taste buds. Even
though the Indian outfit stuck to its core taste that grew on consumers from 'bland' to 'unique' in
three years, with no change factored in by the fast-food chain, McDonald's India's menu is about 75
per cent different from its global menu. All this can be attributed to the menu development team set
up my McDonald's to explore and exploit the Indian taste buds.

Country

Australia China Hong Kong India

Fast Food

McDonald's McDonald's McDonald's Local chains

Soft Drink

Coca-Cola Pepsi Coca-Cola Pepsi

McDonald's was the most popular fast food for children across the Asia Pacific region. Children
from 8 of the 14 countries claimed that McDonald's is their favorite fast food. Coca-Cola was seen
as the most popular soft drink preferred by children from 10 of the 14 countries. But taste is not the
only thing that can draw people to McDonald's. There is the snob appeal of foreign food, which
confers status on middle-class Indians flush with cash. And there is the irresistible attraction of junk
food for children the world over, who are drawn to the high-octane marketing pitch of the fabled
Ronald McDonald character.

5. People
McDonald's relies upon a blend of US human resource practices and host country norms. The firm
has over a million employees, a figure that is estimated to double in the next few years. The organi-
zation has a strong commitment to staffing locally and promoting from within. McDonald's India
employs around 1,500 people in Delhi and Bombay. In Bombay alone, its team comprises a 100-
member management and 800-strong crew. McDonalds

India invites applicants having a minimum qualification of higher secondary, very good communi-
cation skills, ability to work in teams and a friendly nature. To survive in the communal market Mc-
Donald's delivers Quality, Service, Cleanliness and Value (QSCV). This chain is also well known
because of its consistency in delivering a customer experience that has value far beyond good food
at a great price. But probably the most attractive side of McDonald's' activity is the training that
stands as background in every single employee. McDonald's corporation started its fortune trailing
people on how to be kind, fast, precise and effective: it has been an absolute pioneer in this field.

6. Physical Evidence
A standard and differentiating aspect of McDonald’s menu is that it displays two different menu
boards in each restaurant -green for vegetarian products and purple for non- vegetarian, making it
easier for customers to see their options and make their choices. Behind the counter, restaurant
kitchens have separate, dedicated preparation areas for the meat and non-meat products -and even
crew assigned to the products' cooking have different uniforms to distinguish their roles. The com-
pany struck a better chord with the consumers when after the consumers felt that the counters at the
outlets were "too high", making the McDonald's staff "unapproachable" it immediately swung into
action and

reduced the height of the counters. To reinforce its positioning as a family restaurant with the prime
focus on kids, it designed a counter specifically for kids keeping the height in mind. Again, keeping
kids in mind, McDonald's has done away with somber colors in favor of rich, vibrant ones. Even the
paintings that once tended to be abstract have been replaced with things children could relate to. It
has high stools to make the tables more accessible for small kids. Although the medium through
which it is broadcast may vary depending upon the company, McDonald's offer the same message
in every franchise throughout the world. "McDonald's Mein Hai Kuch Baat" is an attempt to adopt a
more personal approach towards its customers, talking "to" them and not "at" them. This is yet an-
other example of adding to their image as a global brand.

7. Process:
A precise way of considering McDonald's' role of operations is through Porter's value chain analy-
sis. The Value chain breaks down the firm into its strategically relevant activities, in order to under-
stand the behavior of costs and the existing or potential sources of differentiation. A firm gains
competitive advantage by perfoffi1ing these strategically important activities more cheaply or better
than its rivals. For a company which feeds some 38 millions clients every day, finding a reliable
quality supplies is a major factor for success. McDonald's has solved the problem by making food
supplies part of their success.

McDonald's distributors are strategically to be accessible to the each restaurant and carry practically
everything, from meat and potatoes to light bulbs. Coca-Cola, the well-known beverage, has been
with McDonald's from the beginning supplying beverages. McDonald's is increasingly using its
leverage to capitalize upon global purchasing practices

The most important part of McDonalds India's operations was developing a cold chain which is the
process of procurement, warehousing, transportation and retailing of food products under controlled
temperatures. Although McDonalds sources most of it's raw materials locally, several products such
as French fries, specialty cheeses, some meats and fishery products, flavors, condiments and ingre-
dients are often imported.

McDonald's India is banking on quality and hygiene as its unique selling proposition to capture a
sizeable portion of the fast- food market in India. This explains the company's attempts to select its
chain of local food suppliers. For three years, before it opened its first restaurant in India, McDon-
ald's and its international supplier partners worked together with local Indian companies to develop
products that met McDonald's quality

standards. These standards are also in keeping with Indian Government regulations on food, health
and hygiene.

SEGMENTATION, TARGETING & POSITIONING

8. Segmentation
McDonald’s has decided on certain criteria to divide the market into relatively homogenous
clusters which it can target for commercial gain. These criteria are as follows:

Based on stage in Family Life Cycle

People buy different goods and services over a lifetime due to the different needs associated with
the distinct stages in life. Thus the consumption pattern is shaped by the stage in the family life-cy-
cle.

SEC based

The education along with occupation is an accepted way to segment a new market. McDonald’s
also segmented the Indian consumers on such a basis. Only urban segments were considered even
within this criterion as the demand for a fast-food restaurant was felt in the urban markets only.

Lifestyle
Lifestyle of a customer dictates his/her spending habits, i.e. where he spends his disposable income.
This was relevant for McDonald’s as they wanted to integrate their product-service hybrid offer
with the customer’s lifestyle.

TARGETING:
SEC target- A look at the new products that have been launched by McDonald’s recently shows that
their focus is on the middle class. This is because they believe that is where the profitability is going
to come from. McDonald’s plan to continue to focus on this category as of now.

Family Life Cycle target- McDonald’s target the following segments in this category:

Full nest I: People in this stage of family life cycle have their youngest child less than 6 years, their
home purchasing is at peak, and they are interested in new and advertised products. Children influ-
ence their buying decisions.

Full nest II: People in this segment have their youngest child 6 years or over, their financial position
is a little better than those in full nests I and they are less influenced by advertised products. They
are interested in special offers, as taken out by McDonald’s from time to time and their decisions
too are influenced by children.

POSITIONING
McDonald’s position them selves as a welcoming and affordable family restaurant committed to
values of quality, fun and excitement. It is also positioned as a restaurant which makes the customer
feel special and makes him smile. So it has a clear positioning as a family restaurant to which the
customer goes for a quick bite. Such customer convenience is integrated into their seven Ps and
through QSCV.

Customer Relationship Management:

McDonalds is probably one of the most famous examples of the philosophy and practice of Cus-
tomer Relationship Management. Each employee who has contact with a customer must conduct
himself or herself in a certain prescribed way. So, no matter where one buys a McDonalds ham-
burger from, it will always be the same hamburger, for the same price, served within the same time
line, with the same smile. Always.

Through careful analysis, McDonalds knows exactly what expectations their client-to-be have of
them and how to fulfill them or, exceed those expectations. Infact, they are not

overly concerned with exceeding people's expectations: just meeting them, time after time.

CRM is the business of managing people during the buying cycle. We define CRM as, "The prof-
itable integration of People, Processes and Technology." McDonald’s conducts regular satisfaction
surveys of the

customer experience, manages high value information

in an organized customer database, makes it easy for the customers to buy from McDonald’s, and
constantly anticipates customer’s need and their expectations.

Suggested Marketing Strategies:

• 1)  New Year and festival strategies through SMS (Cellular Phones) competitions. On any
order above Rs. 50 the customer gets a key against which he gets a question on his mobile
after giving his number. A right entry fetches the customer entry to the daily lucky draw of
bumper prizes.

• 2)  McDonald’s could also have two auto connecting, customized, and dedicated phone lines
under all the potential business giving corporate offices which automatically connect to the
nearest McDonald’s.

• 3)  Reintroduce the Chilly sauce as another differentiated yet standard (McDonald’s) prod-
uct.

• 4)  Seeing that the choice and selection of the children by and large dominate buying behav-
ior of the family, therefore we suggest that McDonalds should try and

capture more of this section. From the past few years McDonald’s is doing the same by introducing
meal combos, toys, and special children day program, but as we see at present fast food in all Asian
countries except India is a synonym for McDonalds, McDonald India has to do the same, make it
presence felt, for long time as giving a Scholarship program for students. A lasting impression in
the student community would help a long way in the Brand Recognition.

• 5)  Combo Options with various movie halls like PVR, Priya etc.

• 6)  Order placing compatibility on the internet for home delivery. Verification done
through a phone call from McDonald’s to the customer.

• 7)  A toll free number for free home delivery. McDonalds currently is not into home deliv-
ery and it could boost up its sales as well as penetrate the potential market with a home de-
livery system. A CRM software probably needs to be developed
for the same which functions in such a manner that a soon as a person dials the 1600-McDonald’s
and places the order, the customer gets the delivery from the nearest McDonald’s outlet. They mar-
ket this scheme with special promotions and by promising a particular time period within which the
order will be delivered or it will be free for the customer. The CRM software could function on the
following Heuristics:

Call Pickup Standard: Max time of 5 seconds before the customer attended to with standard greet-
ing.

Customer Identification for the customer database.

Order Details along with order time and promised order delivery time range. Verification with cus-
tomer for the same imperative.

Identification of nearest McDonald’s outlet.

Check for traffic and cost of delivery vis-à-vis the identified outlet. Evaluate the optimal option and
a go ahead with order processing.

On delivery conformation received against the order number and the outlet identification number.

DATA INTERPRETATION ANALYSIS

McDonald’s is a popular fast-food company. The chain of restaurants is a well-known brand world-
wide. It offers a unique and wide range of products on its menu. From burgers to desserts, McDon-
ald’s offers slightly different menus in various parts of the world to meet the needs of its demo-
graphics.

Due to the Covid-19 pandemic, McDonald’s restaurants saw a dip in their visitors. With the lock-
down in place, most people either ordered food to their homes or cut down on getting food from
outside altogether. McDonald’s also offers its quick and efficient drive-thru service.
In line with this, Real Research has launched a survey to find the voice of avid McDonald’s cus-
tomers. Read more below to know the survey results.

Highlights

• A greater number of the respondents 33.80% said they visit McDonald’s restaurants once a
month. Moreover, 29.73% just visit the restaurant to have a meal.
• More so, 28.42% noted that the staff was very fast in catering to their needs.
• Nearly 40% of the participants were satisfied with the food they purchased at McDonald’s.
For those who were unsatisfied, 33.22% said that they disliked the burgers.
• 51% have used McDonald’s restaurant drive-thru service. 51.69% like that they can speedily
place and complete orders when using the drive-thru service.
• 94% said McDonald’s should enhance their product quality.
The Majority, 33.80%, Visit McDonald’s Once a Month

Results on the Real Research online survey application, show that 33.80% of the respondents visit
McDonald’s restaurants once a month. Thereafter, 19.03% stated that they visit McDonald’s 2-3
times a month. In line with the above 11.65% acknowledged that they go to McDonald’s 4-5 times
a month. 7.88% visit more than 6 times a month.
Respondents stating how many times they visit McDonald’s restau-
rants
Moving on with the results, the Real Research online survey application revealed that 11.28% rarely
visit MacDonald’s. What are the reasons for visiting MacDonald’s? Answering this question on the
Real Research online survey application, 29.73% interestingly replied ‘to have a meal’.

The McDonald’s customer satisfaction survey also shows that 20.60% of the respondents visit Mc-
Donald’s because they ‘did not wish to cook or just wanted to eat out’. Additionally, 17.27% go
there ‘to have a snack’. More so, 10.30% stated the reason ‘to meet up with friends’.
Following that, 5.38% said for ‘special occasions’, while 1.98% visited McDonald’s ‘to purchase a
happy meal that includes a toy’.

Less Than 30% Satisfied with the Staff’s Service

McDonald’s needs to improve its staff service as only 29.95% are satisfied with the services pro-
vided by the staff. Also looking at the results of the McDonald’s customer satisfaction 2021 survey
2021, 20.67% responded that they are ‘somewhat satisfied’ with the services.

McDonald’s customer satisfaction results with the staff’s service

16.91% answered that the service was ‘neutral’ upon visiting McDonald’s restaurant. On the other
hand, 10.57% were ‘somewhat unsatisfied’ while 5.69% said ‘very unsatisfied’. Real Research also
asked how fast the staff was in catering to their needs.

On the McDonald’s customer satisfaction 2021 survey, 28.42% say the service is ‘very fast’.
22.08% expressed that the service by the staff was ‘somewhat fast’. Afterward, 17.06% were
‘neutral’. However, 11.04% state that the service by the staff is ‘somewhat slow’.

Another question asked in the McDonald’s customer satisfaction survey was ‘how clean was the
McDonald’s restaurant when you visited’. Only a little above 30% stated that the McDonald’s
restaurant they visited was ‘very clean’. Furthermore, 20.38% said the restaurants were ‘somewhat
clean’.

Though 38.49% are Satisfied With the Food, 33.22% Dislike the Burgers
The McDonald’s customer satisfaction 2021 survey results highlight that 38.49% of the respondents
are ‘satisfied’ with the food at McDonald’s restaurant. Also responding to the food satisfaction
question, 23.68% are ‘neutral’ regarding the food.

In regards to what they dislike, 33.22% noted that the ‘Burgers’ were unsatisfying after they visited
McDonald’s restaurant.

Most customers were unsatisfied with the burgers

Following after is the ‘Happy Meal’ with 22.70%. Then after comes ‘sandwiches or wraps’ with
12.60%. The ‘breakfast menu’ has 7.29% and ‘sides’ have 2.38%. Moving on, 1.33% noted ‘bever-
ages’. Lastly, ‘desserts and McCafe’ have 0.48% and 0.40% respectively.

More than 50% of the Respondents Have Used McDonald’s Drive-thru

The McDonald’s customer satisfaction 2021 survey results revealed that 51% of the respondents
have utilized the McDonald’s drive-thru.

Figure 4: Respondents who have used McDonald’s Restaurants’ Drive-thru

Hence, reinforcing the results that the highest number (24.83%) of the people who visit Mcdonald’s
go there using a car. Looking at the other side, 17.84% said they walk, and 15.52% use public trans-
port.

Excitingly, in the McDonald’s customer satisfaction survey, respondents also got to express the dif-
ferent advantages of why they like to use the McDonald’s drive-thru. Notably, 51.69% said that
they can speedily place and complete orders when using the McDonald’s drive-thru service.
 Figure 5: Reasons why some customers prefer McDonald’s drive-thru
20.92% said using McDonald’s drive-thru is relatively safe from infectious diseases as you can or-
der with zero physical contact. 4.69% like that personal privacy is protected. Remarkably, 1.67%
noted that senior citizens and pregnant women can also use the service with ease.

39.94% Request that McDonald’s Should Enhance Product Quality

What must McDonald’s restaurants implement to enhance their customer satisfaction level? Re-
sponding to the question requiring customer feedback, 39.94% of the respondents noted that Mc-
donald’s should enhance their product quality.
 Figure 6: What must McDonald’s restaurants implement to enhance their customer satisfaction
level?
26.01% expressed that they should constantly provide new menu options. Furthermore, 10.72% are
requesting that McDonald’s should enhance the staff’s performance and improve staff’ attitude. Be-
sides services, some are requesting that McDonald’s restaurants lower the price of their products
and also open new restaurants in more accessible areas.

To summarize the results, the McDonald’s customer satisfaction survey has shown that the majority
have utilized the McDonald’s drive-thru service. It has, effectively, found its way into the most pop-
ular family restaurant that appeals to children and adults alike and emerged as one of the dominant
forces in the fast-food market.

Methodology

McDonald’s Customer Satisfac-

Survey Title
tion Survey

Duration May 02 – 08, 2021

Number of Participants 280.716

Males and females, aged 19 to

Demographics
99

Afghanistan, Algeria, American

Samoa, Angola, Argentina,
Participating Countries Armenia, Australia, Austria,
Azerbaijan…
More