Index

No Of Name of Chapter Page no

Chapter
1 Introduction To The Study

1.1 Introduction
1.2 Objectives of study
1.3 Hypothesis
1.4 Scope of the study
1.5 Research and methodology
1.5.1 Type of research
1.5.2 Methods of data collection
1.5.3 sampling & sample size

2 Profile Of The Organization

2.1 Introduction
2.2 History
2.3 Franchisees
2.4 Future plan
2.5 Organizational chart

3 Marketing Strategy
3.1 Introduction
3.2 Meaning and Definition
3.3 Advantage & Disadvantage

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 3.4 The Indian Beginning
3.5Strategy as per indian market
3.6Segmentation,Targeting, Positioning
3. 7 Marketing Mix
3.8 Setting the promotional mix
3.9 Strategies
3.9.1 Advertising Strategy
3.9.2 World Wide Strategy
3.9.3 Service Management Strategy
3.9.4 Operational Competative Strategy
3.10 McDelivery and Kiosk

4 Data Analysis & Data Interpretation of Data

4.1 Introduction
4.2 Competitors Analysis
4.3 SWOT Analysis
4.4 Data Interpretation

5 Conclusion

Bibliography

Annexure

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Marketing Strategies of McDonalds

Page 3
Page 4
 CHAPTER 01

INTRODUCTION OF STUDY

1.1 INTRODUCTION OF MARKETING STRATEGY

Marketing strategy is very much important for developing any of the business.
Without it, the effort of the business to attract customer is random and inefficient. The
main focus of your strategy must make sure that your product should fulfill the
demands of the consumers and as well as it maintains the long-term relationship with
those customers. To achieve this, you will have to initiate flexible strategy that
responds to change in customer demand and perception. It may also give brand names
to your product which will help you to run your business in new markets smooth and
efficient manner. First of all main purpose of your marketing strategy should be to
identify that whether the target customers are satisfied with your product and services
of your business.

One you have created and implemented your strategy, try to identify the feed from
your customer and if any changes or I,improvement is required apply it for the
maximum satisfaction of the customers.

This helps you to identify that where your strategy needs to be improved and how it
can be developed, so that it can be implemented for effective action. Before applying
any strategy in the business proper planning programs must be organized within the
members of the organization.

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1.2 OBJECTIVES OF THE STUDY

1. To analyze various aspects of Marketing by McDonald's.

2. To study in brief about the types of customers.

3. To get the customers feedback related on service and price .

4. To know various trends in fast food.

1.3 HYPOTHESIS

• H-1 The marketing strategies used by McDonald's are in-line with the
market share growth trends.
• H-2 The Marketing Strategies used by McDonald's will bring positive
customer feedback.
• H-3 The Marketing Strategies Used by mcdonald’s will neither bring
growth in market share nor will bring positive customer feedback.

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1.4 SCOPE OF STUDY

In the project focus has been made on McDonald’s franchise in India. The challenges
faced, their target market, segmentation strategies and Marketing Strategies adopted by
McDonald to suit the Indian customers. The 5 P’s of McDonald's and also various other
strategies specifically used by McDonald like co-branding , advertising etc. The study
also includes Ansoff's product market growth matrix which determines marketers to
consider ways to grow the business. McDonald’s as a service industry its life cycle is
also studied. The present strength and weakness of the company and the future
opportunities and its future threats are also study for better analysis of McDonald’s
marketing in India.

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1.5 RESEARCH METHODOLOGY

The Quality & Reliability of research study is dependent on the information that
is collected in a scientific and methodological manner. Scientific planning of designing
of research method is a blue print for any research study. therefore proper time and
attention should be given in designing the plan of research. Efficient design is that
which ensure that the relevant data are collected accurately.

The researcher has to think about what procedure and techniques should be
adopted in the study. He should arrive at the final choice by seeing that methodology
chosen for project is the best one, when compared with others.

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1.5.1 DATA COLLECTION

➢ Primary Data

In Primary Data collection, you collect the data yourself using qualitative and
quantitative methods. The key is the data you collected is unique to you and your
research.

Collection of primary data includes Questionnaires, observations, surveys, etc.

➢ Secondary Data

Secondary Data is one type of quantitative data that has already been collected by
someone else for a different purpose to yours

Includes data supplied by a marketing organization, or any other source

You can simply report this data in is original format as to support or evidence
for your argument.

SAMPLING

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 CHAPTER 02

PROFILE OF THE ORGANIZATION

2.1 INTRODUCTION

McDonald's Corporation is the world's largest chain of fast-food

restaurants.

The McDonald’s Corporation is one of the most successful global restaurant

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

In 1937 Brothers Dick and Mac McDonald open a hot dog stand called the
Airdrome at the airport in Monrovia, California & in 1940 the brothers move the
Airdrome building to San Bernardino, California, where they open the first McDonald's
restaurant. Although McDonald's did not invent the hamburger or fast food, its name
has become nearly synonymous with both.

The McDonald's Golden Arches logo was introduced in 1962. It was created by
Jim Schindler to resemble new arch shaped signs on the sides of the restaurants. He
merged the two golden arches together to form the famous 'M' now recognized
throughout the world. Schindler's work was a development of the stylized 'v' logo

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sketched by Fred Turner, which was conceived as a more stylish corporate symbol than
the Speedee chef character that had previously been used. The McDonald's name was
added to the logo in 1968.

McDonald's has 31,886 Restaurants worldwide serving Big Macs, Chicken

worldwide
McNuggets, salads and French fries. Most restaurants offer drive thru service and some
drive-thru
suburban locations offer outdoor playgrounds for children. Approximately 70% of
McDonald's restaurants are operated by independent franchisers
franchisers The number of
restaurants in the U.S. has reached saturation and most new McDonald's are now being
opened in Europe, Middle East and Asia. In order to be a franchisee, an individual must
have at least $175,000. There is about 2,400 owner/operators sy
system
stem wide. McDonald's
is looking to boost sales by opening restaurants 24 hours a day. An estimated 30% of
store revenue comes from breakfast sales. The company has instituted a dollar menu
which includes a double cheeseburger in a bid to boost sales from value-oriented
customers.

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 2.2 HISTORY

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

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

Today McDonald's is the worlds largest fast food chain serving 47 million
customers daily, McDonald's is now one of the most valuable brands globally , worth
more than $30 Billion. Though the Company has roots in the US, McDonald's today
has become an ACCEPTED CITIZEN OF THE WORLD,

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 2.3 FRANCHISEES

Franchising refers to the methods of practicing and using another person's

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

McDonald’s does business in more than 30,000 restaurants in 119 countries

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

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 FRANCHISE MODEL

RAY CROC

VIKRAM CROCK AMIT JATIYA

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VISION

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

OUR VALUES

Our vision is supported by a set of core values:

1. We are dedicated to providing customers unparalleled levels of quality, service,

cleanliness, and value. It is what RAY KROC taught us.
2. We are committed to our people because we know that a diverse team of well-
trained individuals working together is the key to our continued success.
3. We approach all aspects of our business with honesty and integrity.

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

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

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

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 2.4 ORGANIZATIONAL CHART

McDonalds is the world’s most popular and successful fast food chain which serves
almost 58 million people every day. With branches spread all over the world, this fast
food chain works on the basis of the very efficient staff base, senior administration and
support staff.

Each person from the top to the bottom of the hierarchy structure at McDonalds works
hard and is important to its functioning. To understand the hierarchy of this fast food
company chain, you can go through the following given information.

Top Level Executives

Like every other big business organization in the world, McDonalds too has several top
level or C-level executives who are responsible for decision making,goal setting,
finances, operations and ensuring smooth functioning. The following are the top level job
positions at McDonalds:

Finance Department

The finance department of McDonalds is the department which handles the finance,
accounting and money matters of the business. It is responsible for ensuring proper flow
of money, right investment and proper handling of the funds. Each country and area has a
separate set of finance and accounting managers to handle the finances of that division.

Marketing Department

The Marketing Department Hierarchy takes care of the marketing and advertising needs
and matters. It ensures that the business gets the right exposure and maintains its brand

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image effectively. Each country or area has a separate marketing department to handle
the advertising and marketing of that area.

Sales Department

The sales department is set to ensure that all sales related duties and tasks are properly
handled and run effectively. Every country has a separate sales head and other sales
employees to ensure the smooth running of the sales departmentof that country.

Restaurant Level Executives

Besides the owners, directors and other chief executives, each branch of McDonalds in
the world is run by a core team the members of which are known as restaurant level
executives. The following are the main executives working at this level for the smooth
management of each branch.

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Page
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 CHAPTER 03

MARKETING STRATEGY

3.1INTRODUCTION

This helps you to identify that where your strategy needs to be improved and how it
can be developed, so that it can be implemented for effective action. Before applying
any strategy in the business proper planning programs must be organized within the
members of the organization.

WHAT IS MARKETING?

“Marketing is the activity, set of institutions, and processes for creating,

communicating, delivering, and exchanging offerings that have value for
customers, clients, partners, and society at large."

From the above definition we are able to understand that a successful marketing
deals with satisfaction of both the parties. The definition basically explains that
there is a simple process i.e. is “selling something to somebody” however, the
definition conveys that an exchange of goods and services without any barter
system and having common currencies, that exchange is called a sale. So while
achieving the goals of the marketing by selling, it is not compulsory that both the
parties should agreed upon the transaction.

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 3.2 DEFINITION OF MARKETING STRATEGY

· “Marketing Strategy is a set of specific ideas and actions that outline and
guide decisions on the best or chosen way to create, distribute, promote,
and price a product or service (manage the marketing mix variables).”
·
· A Marketing strategy defines and describes the objectives or planning
through which you are going to satisfy your consumer needs in the selected target
market. It does not involve written work but, it includes communication between
different departments of the business enterprise for example: sales department,
managers, executives etc.

In fact it is a set of strategies that implied by the organization in order to increase

the growth and development of the business. Normally strategy deals with the
manner in which your organization plan to achieve the consumer satisfaction and
maximize the profit.

Marketing strategy is a process that can allow an organization to concentrate its limited
resources on the greatest opportunities to increase sales and achieve a sustainable
competitive advantage. A marketing strategy should be centered on the key concept that
customer satisfaction is the main goal.

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 3.3 ADVANTAGE & DISADVANTAGE

Business Advantages

· identifies needs and wants of consumers

· determines demand for product

· aids in design of products that fulfill consumers needs

· outlines measures for generating the cash for daily operation, to repay
debts and to turn a profit

· identifies competitors and analyzes your product's or firm's competitive

advantage

Business Disadvantages

· identifies weaknesses in your business skills

· leads to faulty marketing decisions based on improperly analyzed data

· identifies weaknesses in your overall business plan.

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 3.4 The Indian beginning

A 50-50 joint venture partnership between McDonald’s Corporation [USA]

and two Indian businesses, McDonald’s began its journey in India in October 1996.
Connaught Plaza Restaurants Pvt. Ltd headed by VikramBakshi owns and operates the
northern and eastern operation which includes restaurants in New Delhi, Uttar Pradesh,
Rajasthan, Punjab, Haryana, West Bengal etc.

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

The head office for Hardcastle Restaurants Pvt. Is spread across two
building in Mumbai, one at Bhulbhai Desai Road and the other at Santa
Cruz. The head office houses all the support departments required to run the
restaurants in the western and southern region.

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 3.5 STRATEGY AS PER INDIAN MARKETS

➢ Regiocentricism : Re-engineering the menu –

McDonald’s has continually adapted to the customer’s tastes, value systems,

lifestyle, language and perception.
GloballyMcDonald’s was known for its hamburgers, beef and pork burgers. Most
Indians are barred by religion not to consume beef or pork.To survive, the company
had to be responsive to the Indian sensitivities. So McDonald’s came up with
chicken, lamb and fish burgers to suite the Indian palate.

➢ The Vegetarian Customer -

India has a huge population of vegetarians. To cater to this customer segment,

the company came up with a completely new line of vegetarian items like
McVeggie burger and McAlooTikki. The separation of vegetarian and non-
vegetarian sections is maintained throughout the various stages.

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Page
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 3.6 SEGMENTATION, TARGETING AND
POSITIONING

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

The main target Segments are children, youth and the young urban family.

As shown above, kids reign supreme in FMCG purchase related to food products. So to
attract children McDonald's 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 Minions). For this, they have a tie-up with Walt Disney. At several outlets, it also
provides special facilities like ‘Play Place’ where children can play arcade games, air
hockey, etc.

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

To target the teenagers, McDonald’s has priced several products

aggressively, keeping in mind the price sensitivity of this target customer. In
addition, facilities like WI-Fi are also provided to attract students to the outlets like
the one at Vile Parle in Mumbai.

“McDonald’s Mein Hai KuchBaat” projects McDonald’s as a place for the

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

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 3.7MCDONALD MARKETING MIX (5 P’S)

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

1. Product

2. Place

3. Price

4. People

5. Promotion

➔Product:

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

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

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 sellable &
distributable

product
succsess
useful
possiable
&
&
desirable
feasible

McDonald's has intentionally kept its product depth and product width limited.
nd provided a totally
McDonald's studied the behavior of the Indian customer aand
different menu as compared to its International offering. It dropped ham, beef and
mutton burgers from the menu. McDonald's success worldwide has been attributed to
the ‘“Think Global, Act Local and Sell like a Retailer” philosophy. M
McDonald’s
followed this international mantra while opening doors to the Indian subcontinent. With
respect to the cultural and traditional sentiments, not only did McDonald's not serve it’s
most popular product The BIG MAC (a beef burger) but also developed an egg-less
mayonnaise for the first time in the worldwide system.

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 To suit the Indian palette, the McAlooTikki burger, Veg. Pizza McPuff and
Chicken McGrill burger were among other offerings that were formulated and
introduced using spices favored by Indians. Furthermore, each restaurant kitchen was
designed to maintain separate Vegetarian and Non-Vegetarian food counters.

Reasons for introducing the products

Beef which was a taboo in the Indian market was planned to replace by filling
of AlooTikki to match up with the Indian culture.

Salad sandwich was introduced targeting the people who are more conscious
about health.

The introduction of Jain salad in the outlet keeping the Jain people rituals of not
eating ginger, onion, potatoes etc.

Seeing to the Indian mentality of having wheat chapattis led to the idea to
introduce paneer salsa wrap and chicken Mexican wrap.

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 Filet-o-fish was introduced keeping in mind the demand of the sea food lovers
having no competitors in the segment before.

➔Place:

The place mainly consists of distribution channels and outlets of the company. It
is considered as very important because the product must be available to the
customer at the right place, at the right time and in the right quantity. In U.S.A
nearly 50% of outlets are situated within the distance of 3 minutes.

There are certain degree of fun and happiness that McDonald's provides to its
customers. It provides value position based on the needs of the customer.
McDonald's offers proper hygienic atmosphere, good abidance and better
services.

Now McDonald's have also started offering internet facilities at their outlets,
along with music system through radio, not the normal music but the music
which is preferred by young generation in order to attract them.

There are also games for children the one example is air hockey. Children play
games till the time there parents spend quality time in McDonald's

➔Price:

Pricing includes the list price, the discount functions available, the financing options
available etc. It should also take into the consideration the probable reaction from the
competitor to the pricing strategy. This is the most important part of the marketing mix
as this is the only part which generates revenue. All the other three are expenses
incurred. The price must take into consideration the appropriate demand-supply
equation.

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 McDonald’s came up with a very grasping punch line
“Aapkezamanemein,baapkezamanekedaam”. This pricing strategy was
founded to attract middleclass and lower class people and the effect can clearly
be seen in the consumer base that McDonald's has now.

McDonald's has certain value pricing and bundling strategies such as happy meal,
combo meal, family meal etc. to increase overall sales volumes.

McDonald’s found success in its strategy of Branded Affordability and

introduced the ‘Happy Price Menu’ of Rs.20/-. Engaging and Memorable
campaigns were created to establish the Branded Affordability communication.

➔People:

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

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

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

➔ Customers

➔ Front line employees

➔ Middle level managers

➔ Front line managers

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

➔Promotion:

What is the suitable strategy and channels for promotion of the

product?

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 ADVERTISI
NG

SALES
PERSONAL
PROMOTI
SELLING
ON MARKETING
COMMUNICATI
ON MIX

DIRECT
PUBLIC
MARKETIN
RELATION
G

The promotional activities adopted by the McDonald helps to communicate

efficiently with the target customers. The diagram gives idea about the promotion
strategy of McDonald's Application of above mentioned Communication Mix
describes the cost that is feasible as per the consumers.

McDonald's corporate used advertising, personal selling, sales promotion, public

relations, and direct marketing and became world’s largest leading Burger
Empire. These five promotion tools are used by McDonald's to integrate
marketing communication program which allows McDonald's to access the
communication channels clearly, consistently and easily transfers messages and
product to the target audiences.

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 3.8SETTING THE PROMOTION MIX

1) ADVERTISING :

An Advertisement is targeted to attract the masses it reaches to large number

of people at a time. Advertising is one of the most important tools for promotion
which had various ways of advertisement in that advertisement through
billboards and media are often used by any of the business enterprise. Consumers
mostly perceive goods which are advertised goods, as they assume it is more
rightful.

McDonald's also hold the hand of Advertising. There are three main objectives of
advertising for McDonald’s are to make people aware of an item, feel positive
about it and remember it. The right message has to be communicated to the right
people through the right media. McDonald’s does its promotion through
television, hoardings and bus shelters.

2) PERSONAL SELLING :

Personal selling is most effective tool for building buyers preference, convenience
and actions. Personal interaction allows knowing for feedback and adjustments if
required. If the organization had a good Relationship with Buyers they are more
attentive towards personal selling.

In personal selling McDonald's employees working in different outlets are the

best example of personal interaction, the employees are directly serving the
customers so, and the face to face communication is easily possible. In the
McDonald's outlet there are such staff which are appointed for personal selling

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 they are the one who perform the activities regarding selling up of goods to
customers.

3) PUBLIC RELATIONS :

Highly credible; Very believable; Many forms: news stories, news features, events
and sponsor ships, etc.; Reaches many prospects missed by means of other forms of
promotion; Dramatizes company or product; Often the most under use element in
the promotional mix.

Public Relations are also an important part of the McDonald's marketing strategy. The
restaurant employees play a huge role in interacting with the public. On a day-to-day
basis the employees commit themselves to customers and the customers' feelings
toward the brand. McDonald's feels that before they communicate with their
customers they need to be aware of what their competitors are communicating, so they
can create a beneficial difference between themselves and the competitors.

4) DIRECT MARKETING :

Many forms: Telephone marketing, direct mail, online marketing, etc.; Four
distinctive characteristics: Nonpublic, Immediate, Customized, Interactive; Well-
suited to highly-targeted marketing efforts.

Direct marketing is also one of the efficient tools for promotion. The McDonald's
uses tool in the home delivery services in which they directly serve the order to
their home. Also they have a websites which are more in preference for direct

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 marketing in that they usually mentioned all the new offers along with the contact
number of your nearby outlets.

5) SALES PROMOTION :

Sales promotion activity consist of promoting the business unit through organizing
various contest, programs, functions, distribution of free discounts coupons etc that
attracts attention of the customers, Also offers strong purchase incentives,
dramatizes offers, boosts sagging sales Stimulates quick response; Short-lived; Not
effective at building long-term brand preferences.

McDonald's organizes several sales promoting contest and programmes in

different retail markets and outlets in which they distributes free discounts
coupons. The statue of Mascot McDonald's is always there for any occasions that
are also one of the logo of McDonald's

Highly credible; Very believable; Many forms: news stories, news features, events
and sponsor ships, etc.; Reaches many prospects missed by means of other forms of
promotion; Dramatizes company or product; Often the most under used

element in the promotional mix.

Public Relations are also an important part of the McDonald's marketing strategy. The
restaurant employees play a huge role in interacting with the public. On a day-to-day
basis the employees commit themselves to customers and the customers' feelings
toward the brand. McDonald's feels that before they communicate with their
customers they need to be aware of what their competitors are communicating, so they
can create a beneficial difference between themselves and the competitors.

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6) DIRECT MARKETING :

Many forms: Telephone marketing, direct mail, online marketing, etc.; Four
distinctive characteristics: Nonpublic, Immediate, Customized, Interactive; Well-
suited to highly-targeted marketing efforts.

Direct marketing is also one of the efficient tools for promotion. The McDonald's
uses tool in the home delivery services in which they directly serve the order to
their home. Also they have a websites which are more in preference for direct
marketing in that they usually mentioned all the new offers along with the contact
number of your nearby outlets.

7) SALES PROMOTION :

Sales promotion activity consist of promoting the business unit through organizing
various contest, programs, functions, distribution of free discounts coupons etc that
attracts attention of the customers, Also offers strong purchase incentives,
dramatizes offers, boosts sagging sales Stimulates quick response; Short-lived; Not
effective at building long-term brand preferences.

McDonald's organizes several sales promoting contest and programmes in

different retail markets and outlets in which they distributes free discounts
coupons. The statue of Mascot McDonald's is always there for any occasions that
are also one of the logo of McDonald's

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 3.9.1ADVERTISING STRATEGY

There have been many McDonald's advertising strategy and slogans over the
years. McDonald’s is one of the most widespread fast food advertisers.
McDonald's Canada's corporate website says that the business campaigns have
always focused on the "overall McDonald's experience", rather than just product.
The purpose of the image has always been "portraying warmth and a real slice of
everyday life." Its TV ads, showing various people engaging in popular activities,
usually reflect the season and time period. Finally, they have never in their
advertising history used negative or comparison ads pertaining to any of their
competitors; the ads have always focused only on McDonald's alone. McDonald's
has for decades maintained an extensive advertising campaign. In addition to the
usual media television, radio, and newspaper, the company makes significant use
of billboards and signage, sponsors sporting events ranging from Little League to
the Olympic Games. Television has always played a central role in the company's
advertising strategy.

Today, McDonald's has used 23 different slogans in United States advertising, as

well as a few other slogans for select countries and regions because slogans is
also considered as important factor in advertising strategy.

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 SOME OF THE POPULAR SLOGANS

Let’s eat out! (1960-1965)

Look for the Golden Arches! (1965-1967)

You deserve a break today (1971-1975 (1980-1983)

McDonald's and you (1983-1984)

Good time, great taste (1988-1990)

There's nothing quite like McDonald's (1988-1990)

You Deserve A Break Today (1989-1990)

Food, folks and fun (1990-1991)

Have you had your break today? (1995-1997)

My McDonald's (1997)

We love to see you smile (2000-2003)

I'm loving' it (2003-present India)

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 3.9.2WORLDWIDE GROWTH STRATEGY

McDonald's growth strategy is based on three elements;

· Adding restaurants.

· Maximizing sales and profits at existing restaurants.

· Improving international profitability.

Maximizing sales and profits at existing restaurants will be accomplished through
better operations, innovation, product development and refinement, effective
marketing and lower development and operating costs.

Improved international profitability will be realized as economies of scale are

achieved in individual markets and as the company benefits from the global
infrastructure.

3.9.3SERVICE MANAGEMENT STRATEGY

If we take any fast food restaurants the customer attracts firstly through brand
and secondly with the most important thing to consider i.e. is services offered to
them.

If the services of any enterprise is not suitable to customer then it doesn't

achieve the aim that has been proposed by them.

The company's service management strategy is described within the context of

the service model. In this model, market segment, the philosophy culture image
of the company, service systems, and human resources are considered.

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 3.9.4OPERATIONS COMPETITIVE STRATEGY

McDonald’s Corporation competes in a challenging market segment by

providing need-satisfying products to customers. In this segment,
ineffective competitors often fail without proper strategies.

To sustain its viability, the McDonald’s corporation employs an effective

competitive strategy to make it stand out against competitors such as other fast
food restaurants. McDonald’s competes on several bases, including: Cost Speed
and Nutrition. Their strongest priority is ' Making Customers Happy '. The
company recently made strong changes to its process by introducing the “Made
for You” system.

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 3.10 McDELIVERY

“If you can’t come to McDonald's, McDonald's will come to

you.”

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

Why McDelivery is an Important Business model?

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

•
• McDelivery contributes to around 7.5 % of Total sales.

• The key idea is Convenience because McDonald's believe in being accessible.

• By offering home delivery we can reach out to the Customers and increase
our penetration.
• MDS SOI contribution to the store system wise is 15.30%.

• Based on the Data it is presumed that in the Coming days the

contribution of McDelivery will be on increasing trend.
Analysis shows that the Sales Trend is continuously on increasing Trend.

Compared to 2007 now again there is an Increasing trend.

In 2007 – 27 stores

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In 2008 – 34 stores

In 2009 – 40 stores

In 2010 – 100 stores

In 2012- 150 stores

In 2014 celebrated 200 stores

In 2017 37241 locations stores

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 3.10 McDONALD’s KIOSK

McDonald's is rolling out self-service kiosks in restaurants across the US that allow
customers to order and pay for their food without ever having to interact with a
human

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

Why KIOSK is an Important Business model?

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

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

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

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

· Kiosks helps us to give varied choices to our Customers

· Kiosks contribute around 3.7% of our Total Sales.

· Kiosk provides 23% of positive SOI.

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McDonalds Kiosk

McDelivery

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Page
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 CHAPTER 4

DATA ANALYSIS AND DATA INTERPRETATION

4.1ANALYSIS

McDonald’s has been a leading fast-foods outlet in Vile Parle. But the outlet
understudy has other competitors eating away into its market share. In addition to its
traditional rivals—KFC, Dominos, Pizza Hut—the firm encounters new challenges.
Jumbo King competes using a back-to-basics approach of quickly serving up burgers
for time-pressed consumers. On the higher end, the KFC has become potent competitor
in the quick service field, taking away customers from McDonald’s. Perhaps in the new
environment, fast, convenient service is no longer enough to distinguish the firm. At
this time, a new critical success factor may be emerging: the need to create a rich,
satisfying experience for consumers.

This brings us to service and experience based competition which McDonald’s can
use for competitive advantage against Jumbo King. Keeping in mind the demographics
of the area, McDonald’s has Wi-Fi enabled the outlet to cater to the student community.
It is for this overall “Food, Fun & Folks” experience that customers pay a premium over
the other competitors.

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 4.2 MCDONALD’S COMPETITOR’S:

Competition also reduces product life cycle; inducing firms to revise their products
portfolios and to revisit their product market to understand changing needs,expectations
changing
and perception of different market segments

The new McBreakfast would be introduced between 6 to 11 am as a pilot project. This

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

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 4.3 SWOT Analysis of McDonald's

STRENGTH WEAKNESS

1. STRONG BRAND 1. LOW DEPTH AND WIDTH OF

2. CUSTOMER INTIMACY PRODUCT
3. PRODUCT INNOVATION
4. SUPPLIER INTIMATION

OPPORTUNITY THREAT

1. EXPAND INTO TIER 2 AND TIER 3 1. CHANGING CUSTOMER

CITIES LIFESTYLE TASTE

2. ENTRY INTO BREKFAST CATEGORY 2. INCREASED COMPETITION FROM

LOCAL FAST FOOD OUTLETS LIKE
JOMBO KING

• Strength:

McDonald's is a market leader in the fast food industry. McDonald's has a

very strong brand image. McDonald has expanded its business to more than
125 countries with more than 33000 outlets through out the world.
McDonald's has one competitive advantage and that is Strategic location. In
India they are located in busy shopping malls, Airports and busy drive
throughs.

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  Weaknesses:

McDonald's has created very successful brand image but the market segment
and is too focused on Kids. McDonald's is often related to unhealthy food
and obesity.Employee turnover rate is so high in India in particular.

• Opportunity:

McDonald's can introduce healthy food consisting of low calories items.

They should put more efforts in Research and Development. Management
should try and find ways to reduce food wastage which leads to cost
controlNew products with different variety should be introduced to
capture the market.

• Threats:

McDonald's is facing major competition from its rivals KFC and Burger
King all over the world. In India local curry shops are offering great
challenge to McDonald. Company's rapid growth has made McDonald's very
vulnerable to other countries economic slowdownPress associating
McDonald's with obesity destroys McDonald's image., McDonald's in the
past has been sued for its unhealthy products. McDonald's

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 The Road Ahead

➢ Entry to Tier 2 and Tier 3 cities – The main target customer for McDonald’s
isthe new urban Indian family. With the customer demographics constantly changing
and tectonic social and cultural shifts being observed in Tier 2 and Tier 3 cities due
to globalization, the company is now expanding to Tier 2 cities like Pune and Jaipur.

Rolling out McBreakfast across all outlets – In India, the company has
recentlylaunched its entry into the breakfast food category. This is now launched on a
pilot basis on select stores. In Mumbai, it available at the Vile Parle outlet. The
company views this category as a key growth driver in future.

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 4.4 Data interpretation

Q Which is your favorite product at McDonald’s?

PRODUCTS PEOPLE ( % )
Maharaja Mac 7
McChicken 14
McNuggets 38
French Fries 11
McPuff 11
Filet-o-Fish 9
Other 10

10% 7% Maharaja mac

9% 14%
Mcchiken
11%
Mcnuggets

11% French Fries

38% Mcpuff
filet-o-fish
Other

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INTERPRETATION

The question asked was what is their favourite product on the menu. As per analysis,
out of 100 respondents , 7% chose Maharaj Mac, 14% chose McChicken, 38% chose
McNuggets, 11% chose French Fries and McPuff, 9% chose Filet o Fish.

Q What Time of the day preferred to eat at Mcdonalds food ?

Time People
Morning 10
Afternoon 30
Evening 20
Night 40

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 10%

40%
30% Morning
Afternoon
Evening
Night
20%

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INTERPRETATION :

The question ask was what time of day you preffed to eat macdonalds
food. As per analysis out of 100 respodant,10% people eat at morning,
20%people eat at afternoon, 30%people eat in evening, 40% people eat
in night.

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Q. Is the Product Line Adequate?

RESPONSE PEOPLE ( % )
YES 27
NO 34
AVERAGE 39

27%
39%

Yes
No
Average
34%

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INTERPRETATION :

The question asked was what is the Product Line Adequate. As per analysis,
out of 100 respondents , 27% said Yes, 34% said No and 39% said Average

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Q. What is the main problem you faced at McDonald’s?

RESPONSE PEOPLE ( % )
Long Ques 28
Rude Behaviour 4
Congesti
Congestion 15
Other 13
No Problem 40

28%
40%
Long Ques
Rude Behaviour
4%
Congestion
15% Other
13% No Problem

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INTERPRETATION :

The question asked was what is the main problem they've faced at McDonald's.
As per analysis, out of 100 respondents , 28 people said Long Ques, 4 people
said Rude Behavior, 15 people said Congestion, 13 people said other problem,
40 people said No Problem at All.

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

RESPONSE PEOPLE ( % )
Delivery 31
Capaciousness 23
Product Variety 20
Price 10
Offers & Discounts 10
Other 6

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 6%
10%
31%
Delivery
10%
Capaciousness
Product Varity
20% Price
23% Offers & Discount
Other

INTERPRETATION
TION :

The question asked was Which area do you think needs the most improvement.
As per analysis, out of 100 respondents , 31 people selected Delivery, 23
people chose Capaciousness, 20 people chose Product Variety, 10 people chose
Price , 10 people chose
chose Offers & Discounts, 6 people chose other.

Q Do you like Mcdonalds ?

RESPONSE PEOPLE ( % )
YES 56
NO 25

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 MAYBE 12
NO EXPERIENCE 7

7%
12%

Yes
56% No
25%
Maybe
No Experience

INTERPRETATION :

The question asked was did they like Mcdonalds. As per analysis, out of 100
respondents , 59 people
eople said Yes, 25 people said No, 12 people said Maybe, 7
people said they had No Experience

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 CONCLUSION

Marketing Strategies implied by McDonald’s clearly gives the entire

comprehensive information that is necessary for the growth and development of
a business enterprise. Basically, the strategies that are implemented by
McDonald’s includes many basic essentials features like market research,
innovative ideas, customers views, forecasting consumers demand, planning,
organizing etc, these are the few basic essentials elements that plays a vital role
for the successful business and also in creating the brand name of a product.
Today, in this fast moving dynamic world the demand for goods and services are
increasing at an alarming rate due to which there is greater competency and
competitors ruling in the market. Therefore, most of the companies adopt
different types of marketing strategies in order to serve their customers in a
more better and efficient manner than their competitors so that, their business
can easily survive in the market. This hows that marketing strategies provides
competitive edge for every business unit.

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

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

BIBLIOGRAPHY

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

• http://www.aboutmcdonalds.com/mcd/our_company/mcd_history.
html

• www.mcdonalds.com

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

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

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

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63
• https://www.surveymonkey.com/r/?sm=IxqTttG%2Buh0kXJRGO9za
Zw

%3D%3D

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

• http://mcdonaldsblog.in/2017/03/the-restaurant-of-the-future-is-
here/

• http://www.market-think.com.mx/noticias/coca-cola-
mcdonalds-le-disparan-la-bebida-amigo-solo-tuitear/
• http://mcdonalds.wikia.com/wiki/Ray_Kroc

• http://economictimes.indiatimes.com/industry/cons-
products/food/mcdonalds-to-roll-out-self-order-kiosks-
and-table-service/articleshow/57565348.cms

• http://mcdonaldsnindia.blogspot.in/2012/09/mcdonalds-in-
india-full-assignment.html
• https://www.franchiseindiaweb.in/mcdonalds-franchise/

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 QUESTIONNAIRE

Q. Fast-food Chain visited the most ?

a) McDonald's b) Subway

c) KFC d) Starbucks

e) Burger King f) Pizza Hut

g) Domino's Pizza h) Jumbo King

Q. Which is your favorite product at McDonald’s?

a) Maharaja Mac b) McChicken

c) McNuggets d) McPuff

e) Filet-o-Fish f) French Fries

g) Other

Q. Time of the Day preferred to eat at McDONALD'S ?

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a) Morning b) Noon

c) Evening d) Night

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 Q. What do you think about the change of size of food of
McDonald's in recent years?

a) Extremely Small b) Smaller

c) Neutral d) Bigger

e) Extremely Bigger

Q. Do you agree that McDonald is changing its image to

become a healthy ?

a) Yes b) No

Q. Is the Product Line Adequate?

a) Yes b) No c) Average

Q. What do you think about the price of the food in

McDonald's?
a) Extremely Cheap

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 b) Cheap

c) Neutral d) Expensive

e) Extremely Expensive

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Q. Have you heard of the corruption scandal in
McDonald's recently?

a) Yes b) No c) Maybe

Q. What is the main problem you faced at McDonald’s?

a) Long Ques

b) Rude Behavior

c) Congestion

d) Other

e) No Problem

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

a) Delivery

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 b) Capaciousness

c) Product Variety

d) Price

e) Offers & Discounts

Q. In all, are you satisfied with McDonald's performance?

a) Yes b) No c) Maybe

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