. McDonalds Marketing mix…………………………. when its founder Raymond Kroc saw a hamburger stand in San Bernardino. California and envisioned a nationwide fast food chain.Targeting. Today McDonald’s is the world’s largest fast food chain serving 47 million customers daily. Kroc proved himself as a pioneer who revolutionized the American restaurant industry. Overview……………………………………………………. McDonald’s is now one of the most valuable . Recommendations……………………………………….• • • • • • • • The McDonalds Genesis………………………………. Challenges entering the Indian market…………. Segmentation. Supply chain………………………………………………. The McDonald’s Story – Genesis The story of McDonald’s started in 1954. Competitor analysis…………………………………….Positioning…………….

Ronald McDonald makes his debut. Set in 80 wooded acres.. 1984 1963 One billion hamburgers sold. Hamburger University opens in Elk Grove. Egypt. 1990 McDonald's opens in Pushkin Square and Gorky Street. 1964 1965 1967 Filet-O-Fish sandwich is introduced. New Caledonia. Training is provided for every level of McDonald's management worldwide.000 in 79 countries on 6 continents. New Hamburger University campus opens in Oak Brook. Bulgaria. . The first Ronald McDonald House opens in Philadelphia. Moscow. bringing the total to over 15. Here are a few milestones of the McDonald's journey . near Chicago. 1983 1957 Quality. The 1. 1994 Restaurants open in Bahrain. Paris and Tokyo stock exchanges. Illinois.brands globally.000th restaurant opens in Des Plaines. 1993 The first McDonald's at sea opens aboard the Silja Europa. Kuwait. The Golden Arches and its mascot Ronald McDonald have gained universal recognition. 1973 1974 Egg McMuffin is introduced. 1989 McDonald's is listed on the Frankfurt. Munich. 1968 The Big Mac is introduced. The first restaurants outside of the USA open in Canada and Puerto Rico. Illinois and the McDonald's Corporation is created. 1996 McDonald's opens in India – the 95th country. Oman. Cleanliness and Value (QSC& V) becomes the company motto. Chicken McNuggets is introduced. Latvia. Trinidad and United Arab Emirates. McDonald's Corporation goes public. 1959 1961 The 100th McDonald's opens in Chicago. Though the company has roots in the US. 1955 Ray Kroc opens his first restaurant in Des Plaines. The Quarter Pounder is introduced. 1972 A new McDonald's restaurant opens every day. 50 billionth hamburger sold. Ronald McDonald Children's Charities is founded in Ray Kroc’s memory to raise funds in support of child welfare.. worth more than $25 billion. Service. the world's largest ferry sailing between Stockholm and Helsinki. McDonald's has come a long way ever since it’s beginning in 1955. McDonald’s today has become an accepted citizen of the world. Illinois.

Locally Owned. McDonald's opened its doors in India in October 1996. Illinois. our family restaurants in Mumbai. Almost 50 years down the line. McDonald’s in India is a 50-50 joint venture partnership between McDonald’s Corporation [USA] and two Indian businessmen.The Happy Meal is launched. Delhi. Manesar and Gurgaon have proceeded to demonstrate. serving more than 46 million customers every day. Amit Jatia’s company Hardcastle Restaurants Pvt. Vadodara.A Global Phenomenon. Ahmedabad. much to the delight of all our customers.A. Doraha. Ever since then. Pune. what the McDonald's experience is all about. Noida Faridabad. Jaipur. OVERVIEW McDonald's . Click here for more information on the history of McDonald’s. we are the world's largest food service system with more than 30. U. Ludhiana. .S. Ltd.000 restaurants in 100 countries. Our first restaurant opened on 15th April 1955 in Des Plaines.

friendly service . . Such meticulous attention to cleanliness extends beyond the lobby and kitchen to even the pavement and immediate areas outside the restaurant.the hallmark of McDonald's restaurants the world over is the mantra we abide by.owns and operates McDonald's restaurants in Western India. while maintaining our own recognized international standards. Complete adherence to the Indian Government regulations on food. health and hygiene is ensured. Only the freshest chicken. they trained extensively. Pizza McPuff™ and Chicken McGrill™ burger.A. Among these are McVeggie™ burger. McDonald's does not offer any beef or pork items in India. before opening the first McDonald’s restaurant in India. offering a larger variety to our vegetarian consumers. Service. Respect for local culture. McDonald's India's local suppliers provide us with the highest quality. we've re-formulated some of our products using spices favoured by Indians. freshest ingredients. In addition. McAloo Tikki™ burger. fish and vegetable products find their way into our Indian restaurants. Cleanliness and Value (QSC&V). Fast. Stringent cleaning standards ensure that all tables. We've also created eggless sandwich sauces for our vegetarian customers. Even our soft serves and McShakes™ are egg-less. highchairs and trays are sanitised several times each hour. McDonald's India has developed a special menu with vegetarian selections to suit Indian tastes and preferences. Having signed their jointventure agreements with McDonald's in April 1995. While Connaught Plaza Restaurants Pvt. Veg. Ltd headed by Vikram Bakshi owns and operates the Northern operations. in McDonald's restaurants in Indonesia and the U. International Standards. along with their Indian management team. Amit Jatia and Vikram Bakshi are like-minded visionaries who share McDonald's complete commitment to Quality.S. chairs.

Rs. Information and money flows in the reverse direction. When there is a balance in the finished product ordering. we spent a few years setting up a unique Supply Chain. Any major fluctuation in the product ordering pattern causes excess / fluctuating inventories. and both upstream and downstream .material flow from suppliers and their "upstream" suppliers at all levels. higher transportation and manufacturing costs.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. transformation of materials into semi-finished and finished products. the Supply Chain may include major product elements. shortages / stock outs.SUPPLY CHAIN Overview Did you know that every year. McDonald's is committed to providing quality products while supporting other Indian businesses. and mistrust between supply chain partners. raw material flows as follows: supplier . 50. So. longer lead times. geographically dispersed activities. A Supply Chain is a network of facilities including . even before we opened our first restaurant in India.manufacturer – distributor – retailer – consumer. The balance between these 3 flows is what a Supply Chain is all about. And so. various suppliers. This is called the Bullwhip Effect. Depending on the situation. and distribution of products to customers and their "downstream" customers at all levels. the Supply Chain operates at its best.

About 52% of our food products need to be stored under these conditions before they are used. The Cold Chain is necessary to maintain the integrity of food products and retain their freshness and nutritional value. health and hygiene were a top priority. Local Sourcing. The term Cold Chain describes the network for the procurement. For example. a diesel engine manufacturer may be able to integrate a GPS locator system into its engine control system.activities. Its immediate customer. Understanding the value to the downstream customer is part of the supply chain management process. we have carefully identified local Indian businesses that take pride in satisfying customers by presenting them with the highest quality products. However. who have now become an integral part of the Cold Chain. warehousing. This assurance is rooted in the philosophy of our company's founder. Cold Chain. In keeping with this belief. may see no need for this functionality. within a temperature range of – 18ºC to 4ºC. It is critical to go beyond one’s immediate suppliers and customers to encompass the entire chain. a heavy truck manufacturer. may be very interested in a locator system. McDonald's has always been committed to sourcing its requirements from local suppliers and farmers. Ray Kroc. Adherence to Indian Government regulations on food. thus ensuring that McDonald's commitment to growth was mirrored by that of its partners. McDonald’s restaurants store products to be used on a daily basis. He firmly believed in mutual benefits arising from a partnership between McDonald's and the local businesses. . The Cold Chain is an integral part of the Supply Chain 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. transportation and retailing of food products under controlled temperatures. a trucking company with a large fleet. the downstream customer. since hidden value often emerges once the entire chain is visualized.

language and perception. • The vegetarian customer – India has a huge population of vegetarians. The separation of vegetarian and non-vegetarian sections is maintained throughout the various stages. the company came up with a completely new line of vegetarian items like McVeggie burger and McAlooTikki. The relationship between McDonald's and its Indian suppliers is mutually beneficial. lifestyle. labour and maximum local content in materials. . lamb and fish burgers to suite the Indian palate.McDonald’s has continually adapted to the customer’s tastes.McDonald's India today purchases more than 96% of its products and supplies from Indian suppliers. So McDonald’s came up with chicken. To cater to this customer segment. Targeting and Positioning McDonald’s uses demographic segmentation strategy with age as the parameter. youth and the young urban family. There are many cases of local suppliers operating out of small towns who have benefited from their association with McDonald's India. Segmentation. get exposure to advanced agricultural practices and the ability to grow or to export. have access to the latest in food technology. value systems. As McDonald's expands in India. the company had to be responsive to the Indian sensitivities. the supplier gets the opportunity to expand his business. Globally McDonald’s was known for its hamburgers. Even our restaurants are constructed using local architects. contractors. The main target segments are children. beef and pork burgers. Challenges in Entering Indian Markets • Re-engineering the menu . Most Indians are barred by religion not to consume beef or pork. To survive.

air hockey. Customer Perception and Customer Expectation . This also helps McDonald’s to attract the young urban families wanting to spend some quality time while their children have fun at the outlet. McDonald’s has priced several products aggressively. In addition. facilities like Wi-Fi are also provided to attract students to the outlets like the one at Vile Parle in Mumbai.As shown above. etc. The outlet ambience and mild background music highlight the comfort that McDonald’s promises in slogans like “You deserve a Break Today” & “Feed your inner child”. they have a tie-up with Walt Disney. kids reign supreme in FMCG purchase related to food products. keeping in mind the price sensitivity of this target customer. This strategy is aimed at making McDonald’s a fun place to eat. So to attract children McDonalds has Happy Meal with which toys ranging from hot wheels to various Walt Disney characters are given (the latest in this range is the toys of the movie Madagascar). service and hygiene. it also provides special facilities like ‘Play Place’ where children can play arcade games. For this. This commitment of quality of food and service in a clean. “Mc Donald’s mein hai kuch baat” projects McDonald’s as a place for the whole family to enjoy. hygienic and relaxing atmosphere has ensured that McDonald’s maintains a positive relationship with the customers. When McDonald’s entered in India it was mainly perceived as targeting the urban upper class people. To target the teenagers. At several outlets. Today it positions itself as an affordable place to eat without compromising on the quality of food.

Product 2. finding the target segment and positioning itself. Customer responses obtained at the Vile Parle. each company needs to come up with an offer. McDonalds Marketing Mix (5 P’s) After segmenting the market. but keep it affordable.Customer perception is a key factor affecting a product’s success. Promotion 5. Urban customer on the move Great taste. quick service without affecting the work schedule Teenager Hangout with friends. Place 3. Urban customer on the move Great taste. However. a fun place to be for the children. Customers expect it to be an ambient. Price 4. hygienic and a little sophisticated brand that respects their values. Mumbai outlet confirmed the fact that they connect strongly with the brand. Target Segment A Family with children What is McDonald’s for me? A treat to children. but keep it affordable. McDonalds being an internationally renowned brand brings with it certain expectations for the customers. The 5 P’s used by McDonalds are: 1. Many potentially revolutionary products have failed simply because of their inability to build a healthy perception about themselves in the customers’ minds. manufacture the product so that it enhances the customer experience? . Product: How should the company design. The customer’s expect the brand to enhance their self-image. fulfilling some of the customer expectations like a broader product variety provide McDonald’s a great scope for improvement. quick service without affecting the work schedule Teenager Hangout with friends. a fun place to be for the children. People Target Segment What is McDonald’s for me? A Family with children A treat to children.

There are certain dedicated areas for children where they can play while their parents can have some quality time together. Even the sauces and cheese used in India are 100% vegetarian. world class food quality and excellent customer specific product features. This is the most important part of the marketing mix as this is the only part which generates revenue. McDonalds has intentionally kept its product depth and product width limited. . The recent example is the introduction of the Chicken Maharaja Mac. looks etc. McDonalds studied the behaviour of the Indian customer and provided a totally different menu as compared to its International offering. family meal etc to increase overall sales volumes. India is the only country where McDonalds serve vegetarian menu. at the right time and in the right quantity. Product includes certain aspects such as packaging. It should also take into the consideration the probable reaction from the competitor to the pricing strategy. combo meal. good ambience and great service. McDonalds continuously innovates its products according to the changing preferences and tastes of its customers. guarantee. McDonalds offers hygienic environment. McDonalds bring with it a globally reputed brand. The price must take into consideration the appropriate demand-supply equation. McDonald’s came up with a very catchy punch line “Aap ke zamane mein . PRODUCT LINE Place: Where should be the product be available and the role of distribution channels? The place mainly consists of the distribution channels. There is a certain degree of fun and happiness that a customer feels each time he dines at McDonalds. It is important so that the product is available to the customer at the right place. Now McDonalds have also started giving internet facility at their centres and they have been playing music through radio instead of the normal music. the financing options available etc. This includes both the tangible and the nontangible aspects of the product and service. This was to attract the middle and lower class consumers and the effect can clearly be seen in the consumer base McDonalds has now.A is within a 3 minute drive from a McDonald’s outlet. It dropped ham. the discount functions available.Product is the physical product or service offered to the consumer. There are certain value propositions that McDonalds offer to its customers based on their needs. Nearly 50% of U. All the other three are expenses incurred. beef and mutton burgers from the menu.S. Price: What should be the pricing strategy? Pricing includes the list price. McDonalds has certain value pricing and bundling strategies such as happy meal.baap ke zamane ke daam”.

McDonald’s does its promotion through television. This is important as it must precede external marketing. · “Food. This way they serve customers well and the final result is a happy customer. People: How to converge the benefits of internal and external marketing? McDonald’s understands the value of both its employees and its customers. There are three main objectives of advertising for McDonald’s are to make people aware of an item. This includes hiring. feel positive about it and remember it. Customers . and Fun” · “I’m loving it”. It understands the fact that a happy employee can serve well and result in a happy customer.baap ke zamane ke daam”. Some of the most famous marketing campaigns of McDonald’s are: · “You Deserve a break today. training and motivating able employees. A clear understanding of the customer value helps decide whether the cost of promotion is worth spending. Folks. so get up and get away. The right message has to be communicated to the right audience through the right media.Promotion: What is the suitable strategy and channels for promotion of the product? The various promotion channels being used by McDonald’s to effectively communicate the product information are given above. McDonald continuously does Internal Marketing. The level of importance has changed to be in the following order (the more important people are at the top): 1.To McDonald’s” · “Aap ke zamane mein . hoardings and bus shelters. They use print ads and the television programmes are also an important marketing medium for promotion.

Branding Consciousness. fast. increase Online's share to achieve better overall results within the same budget  Increase and Provide Delivery Services to every Potential Customer-Potential Segment. COMPETITOR ANALYSIS In addition to its traditional rivals—KFC. This brings us to service and experience based competition which McDonald’s can use for competitive advantage against Jumbo King. McDonald’s has Wi-Fi enabled the outlet to cater to the student community. It is for this overall “Food. expectations and perception of different market segments. McDonald’s has anticipated these changes to maintain its competitive edge. Competition also reduces product lifecycle.S. Perhaps in the new environment. inducing firms to revise their products portfolios and to revisit their product market to understand changing needs. This would open up a whole new revenue stream for McDonald’s by tapping into the student and working population by providing a healthy and wholesome breakfast.Dominos. On the higher end.2. satisfying experience for consumers.  Remove U. Front line employees 3. taking away customers from McDonald’s. Jumbo King competes using a back-to-basics approach of quickly serving up burgers for time-pressed consumers. .  Understand Local Tastes. Keeping in mind the demographics of the area. Pizza Hut—the firm encounters new challenges.  More Awareness to remove Obesity link with McDonald’s. Front line managers The punch line “I’m loving it” is an attempt to show that the employees are loving their work at McDonalds and will love to serve the customers. At this time. a new critical success factor may be emerging: the need to create a rich. or products targeted at the youth segment. Middle level managers 4. RECOMMENDATION  For new products from McDonald’s. This shows how demographic shift can affect the demand for products and services.  Increase Drive Through Branches. the KFC has become potent competitor in the quick service field. convenient service is no longer enough to distinguish the firm.Fun & Folks” experience that customers pay a premium over the other competitors. The new McBreakfast would be introduced between 6 to 11 am as a pilot project.

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