Name : Ashwin Joseph

MC
DONALD’S
 INTRODUCTION

•McDonald’s is the leading food

service
world's retailer with more than 30,000
restaurants in 119 countries serving 47
million customers each day. It is one of the
world's most well-known and valuable
brands and holds a leading share in the
globally branded quick service restaurant
segment of the informal eating-out market in
virtually every country in which they do
business.
HISTORY

• Richard and Maurice McDonald were pioneers of

McDonald’s and the quick service restaurant industry. Ray
Kroc was the founder of McDonald’s Corporation.
McDonald’s success today is rooted in the work of all three.

• In the late 1940s, Dick and Mac McDonald’s

pioneers of McDonald’s were searching for a way to
improve their little drive-in restaurant in San Bernardino,
California, U.S.A.; they invented an entirely new concept
based upon speed service, low prices, and big volumes.
Word of its success spread quickly, in 1952 they had more
than 300 franchising inquiries a month from all over the
country. Joining of Ray Kroc in 1954, and foundation of the
company that evolved into McDonald’s Corporation was
the major turning point in the history of McDonald’s.
McDonald’s is now the largest and best-known foodservice
retailer.
MCDONALD’S INDIA

• McDonald’s opened its doors in India in October

1996. They have restaurants in Mumbai, Delhi,
Pune, Ahmedabad, Vadodara, Ludhiana, Jaipur,
Noida Faridabad, Doraha, Manesar and
Gurgaon.
• McDonald’s in India is a 50-50 joint venture
partnership between McDonald’s Corporation
[USA] and two Indian businessmen. Amit Jatia’s
company Hardcastle Restaurants Pvt. Ltd. owns
and operates McDonald’s restaurants in
Western India. While Connaught Plaza
Restaurants Pvt.
Ltd headed by Vikram Bakshi owns and operates
the Northern operations.
 BRANDING
 McDonald's is an example of brand
franchising.Being their own boss in return, the
franchisee agrees to operate the restaurant in
accordance with McDonald's standards of quality,
service, cleanliness and value.

 The cooking processes in McDonald's restaurants

are broken down into small, repetitive tasks,
enabling the staff to become highly efficient and
adept in all tasks.

 There is no need to develop the product or

d
o expensive market research.
 It begins with working in a
restaurant,
wearing the staff uniform and learning
everything from cooking and preparing food to
serving customers and cleaning.

 It recognises that the success and profitability

of McDonald's is inextricably linked to the
success of the franchises.

 Benefit from national marketing carried out

by McDonald's A brand is a name, term, sign,
symbol or design, (or a combination of these)
which identifies one organisation's products from
those of its competitors.
 CONSUMER BEHAVIOUR
ASPECT

• Marketers need in-depth knowledge about the

various dimensions which link consumer
behavior. There is research required to find out
the eating habits of people in a competitive
context. McDonald’s found that a major chunk of
its consumers decide to eat a few minutes before
they make the purchase decisions and hence it
is building small outlets in large supermarkets
such as Wal-Mart and Home Depot. It is
providing play areas to ensure a number of
families visit its outlets with children.
INDIAN MARKET- OVERVIEW

• “You can never penetrate the Indian market

without making an effort to understand the
country’s culture and mindset”,
• Although ‘fast food’ is ingrained in the culinary
culture of India, the passage of time has not
really resulted in any sort of evolution in the
manner in which our traditional fast-foods are
prepared or served. It’s still very much a ’cottage
industry’ with street vendors accounting for
almost all the sales. One cannot imagine a day
when the street-side ‘vada pav’, ‘chaat’ or
‘sendvitch’ stall in our cities will disappear. It’s
such an integral part of who we are as Indians. .
•
TARGET MARKET
SEGMENT

• Segmentation strategy:
The segmentation strategy of McDonald’s can be discussed
under the following heads.
•
• Geography:
Geographically McDonald’s seem to have categorized the
entire Indian market as urban and rural markets. As a
strategy for entering the Indian market McDonald’s appear to
have adopted the segmentation at the micro level, by directing
the entire focus towards only urban market. McDonald’s
India as of today caters only to the urban population in India.
There could be several reasons for this, like the rural
eating habits, their affordability and traditional
approach towards food.

• Demography:
Demographically the McDonald’s appears to have segmented
its market on the following parameters.
• Income level:
• in a market like India where a significant proportion of India’s
population lies in the lower income bracket, the price of the products
becomes very critical. Now the challenge was to provide quality
products at prices affordable to urban masses.
• The pricing of the products is done keeping in mind the wants of the
middle class and the upper middle class, the income category which
has grown at a very significant pace over the past few years. For
example, the chain has a product called Mc Aloo tikki costing Rs:20/,
which caters mainly to the student community whose pockets are not
broad enough
• Age:
• The earlier strategy of the McDonald’s was to segment the market on
the basis of the age, by catering mainly to the kids and youth.
However, now they are trying to blur this segmentation and focus on
the all age groups.
• Family:
• McDonald’s is now targeting the entire family by offering various
incentives packed product schemes like “family meals” at a very
competitive price


Psychographical
A parent with two children Visits McDonald’s to
give thechildren a treat.
 Children Want to visit McDonald’s as it is a
fun place to eat.
 A business customer Visits McDonald’s during
the day as service is quick, the food tastes
great and can be eaten in the
car without affecting a busy work
schedule.
 Teenagers Are attracted by the
Saver
 BEHAVIOURAL
• Occasions:
Under this segmentation the McDonald’s has classified
customers on the basis of the frequency of their visits, into
regular and occasional customers. Now, to maximise the
cluster of regular customers they are coming up with ad lines
like “BAHAANA KYA HAI” so that the customers don’t look
for a special occasion to visit the outlet.
• Current position in the Indian market:
• However in spite of adopting all of the above segmentation
and marketing strategies hard realities do exists.Nine years
after the big mac first set up in India, the burger gaint has yet
to make a rupee as net profit. It hopes to break even in a year
or two. In India a Mac store typically takes between 5 to 7
years to break even. Part of the reason for its long break even
period has to do with the investments required per store in
terms of equipment and infrastructure. Much of the process
control equipment that allows Mac to dish out burgers and
other orders within its super fast time has to be imported.
ESSENCE OF MARKETING

 Product
Functional
 POSITIONING
 Positioning


 In adapting the General Market positioning of “America’s favorite fries”

for the Hispanic customer, it was determined to stress not only the
irresistibility and superiority of McDonald’s fries (“They are the best
anywhere, you can’t resist them”), but to add an element of family
inclusivity; to stress that they are everyone’s favorite:


 “Favored by ‘big ones’ (adults) and ‘little ones’ (kids)”.

 McDonald’s wanted to revitalize the perceived superiority of their world
famous fries while simultaneously blunting aggressive com-petitive efforts
by Burger King. [Burger King had just begun market testing “new and
improved” French fries.] To help accomplish this, McDonald’s decided to
use their partnership with the NBA as the strategic “platform” for a
special fries advertising effort. As such, the positioning in the General
Market evolved to “America’s favorite Guys enjoy America’s favorite fries!”



 PRICING
STRATEGY

 A look at McDonald’s menu indicates that Co. has

targeted mass market in India .All or most of the
products have been priced in such a way that average
Indian consumer can afford to enjoy fast food with
family .This strategy has been dictated by the
• Vegetarian Rs.
• Happy Meal 55/70/93
• McAloo Tikki 20.00
• McVeggie
• 39.50
Paneer Salsa Wrap 49.50
• Non Vegetarian
• Happy Meal 70/93
• Chicken McGrill 20.00
• Filet-O-Fish 53.00
• Chicken Maharaja Mac 63.00
• Starters
• Veg Pizza McPuff
• 20.00 Large Fries
• 38.50 Others
• McShakes 28/39/50.50
• Condiment/Topping 5.50
• Economy Treat (Burger & Fries)
• For 2 109.00
• For 4 199.00
• Family Value Meal
• Burgers, Fries, Happy Meal and Small Coke
199.00
•

•
• McDonald’s pricing strategy can be further analyzed under following heads:
•
• Product Line Pricing:
• McDonald’s offers a range of products and pricing reflects the benefits of the
range. So one can order just a Coke or a Coke with a Burger at additional
price.
•
• Product Bundle Pricing:
• McDonald’s combines several products in the same package .For example one
can buy a McAloo Tikki alone or one can exercise various other options
which give the customer a range of products in a single basket.
•
• Promotional Pricing:
• Discounting a combination of products as one product is also a strategy which
McDonald’s follows. McDonald’s clubs three or four products together as one
and price of this new one will be lesser than the sum total of individual
product.
•
• Value Pricing:
• McDonald’s has realized that Indian market is a price conscious market and
this has forced McDonald’s to provide value products. Examples are economy
meal and value meal served by McDonald’s in India.
 COMMUNICATION
STRATEGIES

• Promotion is a key ingredient in marketing campaigns, consisting of

diverse collection of incentive tools, mostly short term, design to
stimulate quicker or greater purchase of particular product or
services by consumer.

• Communication is a means to convey the message to the

consumers. The consumer tends to remember just one thing from any
communication about the product -- one strong claim, or one strong
concept. Unique communications that are simple enough to make a
connection with the consumers create excitement about your brand.
 Strong communication concepts are the foundation for success of a
product. In an environment of ever increasing clutter, the
message can't afford to go unnoticed. "A strong product concept
along with a commitment to establish your brand through good
communication" generates positive attention and that's crucial to
succeed in the marketplace.


THANK
YOU