UNIVERSITY OF MUMBAI

SHIVAJIRAO S. JONDHALE INSTITUTE OF MANAGEMENT SCIENCE AND RESEARCH,

ASANGAON

PROJECT REPORT ON

“MARKET RESEARCH OF MCDONALD’S”

MMS FINANCE SEMESTER – IV

ACADEMIC YEAR: 2017-2019

Project Report submitted in partial fulfillment for the award of MASTER OF MANAGEMENT STUDIES DEGREE, University of

Mumbai

By

CHETAN DILIP CHAUDHARI

ROLL NO: 17006

Under the guidance of

Prof. Sawita Dongre

SHIVAJIRAO S. JONDHALE INSTITUTE OF MANAGEMENT SCIENCE AND RESEARCH,

ASANGAON.

CERTIFICATE
This is to certify that Mr. Chetan Dilip Chaudhari, Roll No. 17006 student of Second year Master in Management Studies has successfully

completed the Summer Internship Project, work title “MARKET RESEARCH OF MCDONALD’S” in partial fulfillment for the degree of Master

in Management Studies (MMS) University of Mumbai.

This project report is the record of authentic work carried out during the academic year 2017-19.

_______________________ ______________________

(Signature of Project Guide) (Signature of Principal)

DECLARATION

I hereby declare that this Project Report entitled “MARKET RESEARCH OF MCDONALD’S” has been submitted by

me for the award of MASTER OF MANAGEMENT STUDIES DEGREE; University of Mumbai is a record of Project work done by

me during the year 2017-2019.

This is entirely my own work. The information submitted is genuine and practical to the best of my knowledge.

Name: CHETAN DILIP CHAUDHARI

Roll No. 17006

Signature
Place:

Date:

ACKNOWLEDGEMENT
I would like to extend my heartfelt gratitude towards the Management of
MCDONALD for providing me an opportunity to undergo my Summer
Internship Project in their esteemed organization.

I am extremely grateful to my external guide Mr. Sunil Mate, Nashik

Branch for his guidance and cooperative nature that has helped me in
completing this project report.

I would also like to thank Mrs. Mahesh Patil, Igatpuri Branch who
helped me to work on my project and for her timely support and advice
has helped me in preparation of this report.

I express my sincere gratitude to Prof. Sawita Dongre for his guidance,

constant supervision as well as for providing necessary information
regarding the project and also for his support in completing the project
and express my sincere gratitude the Director for giving me an
opportunity to do summer internship project and also express my
gratitude to librarian and other staff members for their help in completion
of the project. I would also like to express my gratitude to my parents.
 CONTENT

Sr. No. Title Page No.

1. ABSTRACT 1

2. 2
INTRODUCTION

3. 3
NEED AND IMPORTANCE OF THE STUDY

4. SCOPE OF THE STUDY 3

5. BACKGROUND LITERATURE 4 to 6

7. OBJECTIVES OF THE STUDY 6

8. 7
METHODOLOGY

9. CONCEPTUAL FRAMEWORK OF THE STUDY 7

10. 8 to 9
ANALYSIS I

11. ANALYSIS II 10

12. 11 to 16
RECOMADATION

13. 17
FINDINGS

14. 18
SUGGESTIONS

15. CONCLUSION 19

16. BIBLIOGRAPHY 20 to 21

17. QUESTIONNAIRE FOR CUSTOMERS 22 to 28

ENTREPRENEURSHIP

PROJECT

PROJECT REPORT AND MARKET RESEARCH OF

MCDONALD’S

I’m loving’ it..

CHAPTER NO-1
 INTRODUCTION

1.1 OVERVIEW OF FAST FOOD INDUSTRIES

The food industry is on a high as Indians continue to have a feast. Fuelled by what can be termed as a perfect

ingredient for any industry - large disposable incomes - the food sector has been witnessing a marked change in

consumption patterns, especially in terms of food. An increasing number of international fast food chains

rushing to India is because all of them see tremendous potential in for this type of business. The large upwardly

mobile population in the urban areas tend to eat out more often or business or for leisure.

The various players operating in India are the well established Indian chains like Nirula's, Haldiram's and

multinational companies like McDonalds, Pizza hut, Domino's pizza, etc.

In addition to these, apparently some of the best known international food chains are looking at India. Among

them are Great American Disaster, The Burger King, Mexican food chain Tacogrill, Move-n-pick, etc. are some

of them to name.

At present all these players are fighting for a small pie, as fast food is really not a big habit with Indians, but

they see a big potential.

The players are fighting on products, pricing, positioning and trying to convert their first trials into regular

purchase by providing delightful service quality. The focus is on product quality and standardization on taste.

Consistency is the key, as its standardization in fast food as the consumer is short on time and wants to satisfy

his taste buds with a consistent taste experience.

Beyond this each player has its own strategy to expand consumer base.

1)Some feel that pricing is not the deciding factors since fast
food is not price sensitive market because it is not a single diet
of India.
2)Some others are competing on positioning which is
surprisingly varied giving the small size of the market.
3)For most targeting children seems the night strategy.
4)Advertising is popular.

However, with competition hooting up most chains are increasing reach as well as working on establishing a

national presence.

The wind of change is blowing through the empire of fast food. The vision of endless growth through new

markets across the planet for fast food companies now looks unsustainable when its time to adapt or die. As the

fast food companies have expanded around the world, they have had to adapt to local sensitivities.

There were disturbances in India when it was learned that McDonalds's were pre-cooked in beef fat in the USA,

because Hindus revere cows and cannot eat beef.

According to a market research company, Euro monitor International, amount of money Indians spend in eating

out has more than doubled in past decade, to about US$ 5 billion a year and is expected to double again in

about half that time.

1.2 TRENDS IN THE FAST FOOD INDUSTRY

The industry is estimated to grow at 9-12 per cent, on the basis of an estimated GDP growth rate of 6-8 per

cent, during the Tenth Five year plan period. Value addition of food is expected to increase from the current 8

per cent to 35 per cent by the end of 2025. Fruit and vegetable processing, which is currently around 2 per cent

of total production will increase to 10 per cent by 2010 and to 25 per cent by 2025.

The popularity of food and agro products is not surprising when the sector is now offering a growth of more

than 150 per cent in sales. With such promise in the sector, a number of foreign companies have joined the fray.

While US brands such as McDonald's, Pizza hut and Kentucky Fried Chicken have become household names,

more are on their way.

1.3 THE MARKET SCENARIO

India among top 10 market for weekly fast food consumption, an online survey has found. Most of the countries

are from the Asia-pacific region, with the US being the exemption.

According to an A C Neilson study of 28 markets across the US,

Europe and the Asia-Pacific, carried out through the internet in
interviews with more than 14000 consumers, Asians are the
world's greatest fast food fans

1.4 MAJOR PLAYERS

In India the major players which constitute the Indian fast food industry includes Indian as well as

Multinational companies.

These are:

1)Nirula's-

Established in 1934, Nirula's today is a diversified group having a chain of elegant Business hotels, Waiter

service restaurants, Family style restaurants, Ice Cream parlors, pastry shops and food processing plants in

India.

The chain with over 60 outlets operating in 5 states successfully caters to the Indian palate of over 50000 guests

every day or over 70 years.

2)Pizza hut-
In 1996 Pizza hut came to India with a dine in restaurant in Bangalore that has special vegetarian pizzas. In

addition to traditional Italian topping, it incorporates Indian favorites such as chicken tikkas, lamb korma, etc. In its

list of innovative toppings, along with pizzas the menu features appetizers like garlic bread and soups, fresh

salads, oven baked pastas and choice f/of ice-cream sundaes.

In 1997 pizza hut opened a restaurant in the capital's building bustling M-Block market in Greater Kailash-I,

unlike the existing pizza hut at shanti niketan which is delivery counter for just pizzas, this is dine-in whise the

entire menu is available.

3)Domino's pizza-

It was incorporated in 1995 as the master franchise o Domino's pizza international inc., of USA. the first

Domino's pizza store in India opened in January 1996 at new Delhi. Today it has grown into a countrywide

network of over 104 outlets in 30 cities.

Ever since it was established, Domino's Pizza India has maintained its position of market leadership with its

constant product innovation and maintenance of stringent service standards. It has established a reputation for

being a home delivery specialist capable of delivering pizzas within 30 minutes. It was the first one to start this

facility to customers.

1.5 COMPANY PROFILE

McDonald's Corporation is the world's largest chain of hamburger fast food restaurants, serving around 68

million customers daily in 119 countries. Headquartered in the United States, the company began in 1940 as a

barbecue restaurant operated by Richard and Maurice McDonald; in 1948 they reorganized their business as a

hamburger stand using production line principles. Businessman Ray Kroc joined the company as a franchise

agent in 1955. He subsequently purchased the chain from the McDonald brothers and oversaw its worldwide

growth.

A McDonald's restaurant is operated by a franchisee, an affiliate, or the corporation itself. The corporation's

revenues come from the rent, royalties and fees paid by the franchises, as well as sales in company-operated
restaurants. McDonald's revenues grew 27 percent over the three years ending in 2007 to $22.8 billion, and 9

percent growth in operating income to $3.9 billion. McDonald's primarily sells hamburgers, cheeseburgers,

chicken, french-fries, breakfast items, soft drinks, milkshakes and desserts. In response to changing consumer

tastes, the company has expanded its menu to include salads, wraps, smoothies and fruit.

1.6 HISTORY

The business began in 1940, with a restaurant opened by brothers Richard and Maurice McDonald at 1398

North E Street at West 14th Street in San Bernardino, California. Their introduction of the "Speeded Service

System" in 1948 furthered the principles of the modern fast-food restaurant that the White hamburger chain had

already put into practice more than two decades earlier. The original mascot of McDonald's was a man with a

chef's hat on top of a hamburger shaped head whose name was "Speeded". Speeded was eventually replaced

with Ronald McDonald by 1967 when the company first filed a U.S. trademark on a clown shaped man having

puffed out costume legs.

McDonald's first filed for a U.S. trademark on the name "McDonald's" on May 4, 1961, with the description

"Drive-In Restaurant Services", which continues to be renewed through the end of December 2009. In the same

year, on September 13, 1961, the company filed a logo trademark on an overlapping, double arched "M"

symbol. The overlapping double arched "M" symbol logo was temporarily disfavored by September 6, 1962,

when a trademark was filed for a single arch, shaped over many of the early McDonald's restaurants in the early

years. Although the "Golden Arches" appeared in various forms, the present form as a letter "M" did not appear

until November 18, 1968, when the company applied for a U.S. trademark. The present corporation dates its

founding to the opening of affranchised restaurant by Ray Kroc, in Des Plaines, Illinois, on April 15, 1955, the

ninth McDonald's restaurant overall. Kroc later purchased the McDonald brothers' equity in the company and

led its worldwide expansion, and the company became listed on the public stock markets in 1965. Kroc was

also noted for aggressive business practices, compelling the McDonald brothers to leave the fast food industry.

The McDonald brothers and Kroc feuded over control of the business, as documented in both Kroc's
autobiography and in the McDonald brothers' autobiography. The San Bernardino store was demolished in

1976 (or 1971, according to Juan Pollo) and the site was sold to the Juan Pollo restaurant chain. It now serves

as headquarters for the Juan Pollo chain, as well as a McDonald's and Route 66 museum. With the expansion of

McDonald's into many international markets, the company has become a symbol of globalization and the

spread of the American way of life. Its prominence has also made it a frequent topic of public debates about

obesity, corporate ethics and consumer responsibility.

1.7 KEY DATES

.
1948:Richard and Maurice McDonald open the first McDonald's restaurant in San Bernardino, California

1954: Ray Kroc gains the rights to set up McDonald's restaurants in most of the country.

1955: Kroc opens his first McDonald's restaurant in Des Plaines, Illinois; he incorporates his company as

McDonald's Corporation.

1960: The slogan, "Look for the Golden Arches," is used in an advertising campaign.

.
1961: Kroc buys out the McDonald brothers for $2.7 million

.
1963: Ronald McDonald makes his debut

1965: McDonald's goes public.

.
1967: The company opens its first foreign restaurant in British Columbia, Canada

.
1968: The Big Mac is added to the menu

1973: Breakfast items begin to appear on the menu, with the debut of the Egg Mc Muffin.

1974:The first Ronald McDonald House opens in Philadelphia.

 .
1975: The first McDonald's drive-thru window appears

.
1979: The children's Happy Meal makes its debut

1983: Chicken Mc Nuggets are introduced.

1985: McDonald's becomes one of the 30 companies that make up the Dow Jones Industrial Average.

1998: The company takes its first stake in another fast-food chain, buying a minority interest in Colorado-

based Chipotle Mexican Grill.

1999: Donatos Pizza Inc. is acquired.

2000: McDonald's buys the bankrupt Boston Market chain.

2002: Restructuring charges of $853 million result in the firm's first quarterly loss since going public.

2003: McDonald's sells Donatos in order to refocus on its core

hamburger business.

1.8 GLOBAL OPERATIONS

McDonald's has become emblematic of globalization, sometimes referred to as the "McDonaldization" of

society. The newspaper uses the "Big Mac Index": the comparison of a Big Mac's cost in various

world currencies can be used to informally judge these currencies' purchasing power parity. Norway has the

most expensive Big Mac in the world as of July 2011, while the country with the least expensive Big Mac is

India (albeit for a Maharaja Mac—the next cheapest Big Mac is Hong Kong).
Thomas Friedman once said that no country with a McDonald's had gone to war with another. However, the

"Golden Arches Theory of Conflict Prevention" is not strictly true. Exceptions are the 1989 United States

invasion of Panama, NATO's bombing of Serbia in 1999, the 2006 Lebanon War, and the 2008 South Ossetia

war.

Some observers have suggested that the company should be given credit for increasing the standard of service

in markets that it enters. A group of anthropologists in a study entitled Golden Arches East looked at the impact

McDonald's had on East Asia, and Hong Kong in particular. When it opened in Hong Kong in 1975,

McDonald's was the first restaurant to consistently offer clean restrooms, driving customers to demand the

same of other restaurants and institutions. McDonald's has taken to partnering up with Sinopec, the second

largest oil company in the People's Republic of China, as it takes advantage of the country's growing use of

personal vehicles by opening numerous drive-thru restaurants. McDonald’s has opened a McDonald's restaurant

and McCafé on the underground premises of the French fine arts museum, the Louvre. The company stated it

will open vegetarian-only restaurants in India by mid-2013.

1.9 BUSINESS MODEL

1)Franchise Model-
Only 15% of the total number of restaurants are owned by the Company. The remaining 85% is operated by

franchises. The company follows a comprehensive framework of training and monitoring of its franchises to en-

sure that they adhere to the Quality, Service, Cleanliness and Value propositions offered by the company to

its customers.

2) Product Consistency-
By developing a sophisticated supplier networked operation and
distribution system, the company has been able to achieve
consistent product taste and quality across geographies

3)Act like a retailer and think like a brand –

McDonald’s focuses not only on delivering sales for the immediate present, but also protecting its long term

brand reputation.

1.10 MCDONALD’S IN INDIA

McDonald’s entered India in 1996. McDonald’s India has a joint venture with Connaught Plaza Restaurants and

Hard Castle Restaurants. Connaught Plaza Restaurants manages operations in North India whereas Hard Castle

Restaurants operates restaurants in Western India. Apart from opening outlets in the major metros, the company

is now expanding to Tier 2 cities like Pune and Jaipur.

Challenges in Entering Indian Markets

1)Regiocentricism: Re-engineering the menu –

McDonald’s has continually adapted to the customer’s tastes, value systems, lifestyle, language and perception.

Globally McDonald’s was known for its hamburgers, beef and pork burgers. Most Indians are barred by reli-

gion 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.

2)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.

1.11 SEGMENTATION & TARGETING

McDonald’s uses demographic segmentation strategy with age

as the parameter. The main target segments are children, youth
and the young urban family.

% of kids who influence what FMCG brand their

family buys

80% 71%
70% 59%
60% 52%
50%
40%
30%
20%
10%
0%
Biscuits Burgers & Pizzas Fruit Juices

As shown above, kids reign supreme in FMCG purchase related

to food products. 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). 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. 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.

“Mc Donald’s mein hai kuch baat” 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 ambience 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.

1.12 CUSTOMER PERCEPTION AND CUSTOMER

EXPECTATION

Customer perception is a key factor affecting a product’s

success. Many potentially revolutionary products have failed
simply because of their inability to build a healthy perception
about themselves in the customers’ minds. McDonalds being an
internationally renowned brand brings with it certain
expectations for the customers.

Target Segment What is McDonald’s for me?

A Family with children A treat to children, a fun place to be for the children.

Urban customer on the move Great taste, quick service without affecting the work schedule

Teenager Hangout with friends, but keep it affordable.

Customers expect it to be an ambient, hygienic and a little sophisticated brand that respects their values. The

customer’s expect the brand to enhance their self-image. Customer responses obtained at the Vile Parle,

Mumbai outlet confirmed the fact that they connect strongly with the brand. However, fulfilling some of the

customer expectations like a broader product variety provide McDonald’s a great scope for improvement.
 RESEARCH METHODOLOGY

INTRODUCTION TO RESEARCH PROBLEM

MOTIVE: - The basic motive of preparing this report is to

study the consumer preference towards McDonald’s in Mumbai
and to know about the Buying Behavior of consumers for
McDonald’s.

OBJECTIVES: -The objective of the report is to study the consumer preference towards McDonald’s in

Mumbai and also to analyze the buying behavior of Burgers by the people living in Mumbai

:
SCOPE -This report to some extend will tell us about the success of the McDonald’s in Mumbai and also

about the various other fast food outlets like KFC, Dominos, Pizza Hut, etc in Mumbai. This report will also

help me to know more about the market strategies and selling modes followed by McDonald’s in Mumbai and

various kinds of recommendations and suggestions.

METHODOLOGY: -- I have got 50 questionnaire filled in
by the localities and customer outside the McDonald’s
regardless of caste, creed, nationality in Mumbai. These
questionnaires will account for my primary data where as the
secondary data has been picked up from the internet, books,
articles and journals.

OBJECTIVES

1)Study and analyze marketing strategies of McDonald’s in Mumbai.

2)Studying the Marketing Mix of the company.

3)Performing the SWOT analysis of the company.

DATA COLLECTION

Secondary data: -

Already existing data is called secondary data. I collected them by following method.

1)INTERNET
2) Books

3) Articles
 CHAPTER-2

ANALYSIS – I

McDonalds Marketing Mix (7 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 McDonalds are:

1. Product

2. Place

3. Price

4. Promotion

5. People

6. Physical Evidence

7. Process
2.1 PRODUCT:

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

experience?

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. McDonalds has
intentionally kept its product depth and product width limited.
McDonalds studied the behavior of the Indian customer and
provided a totally different menu as compared to its
International offering. It dropped ham, beef and mutton burgers
from the menu. India is the only country where McDonalds
serve vegetarian menu. Even the sauces and cheese used in India
are 100% vegetarian. McDonalds continuously innovates its
products according to the changing preferences and tastes of its
customers. The recent example is the introduction of the
Chicken Maharaja Mac. McDonalds bring with it a globally
reputed brand, world class food quality and excellent
customer specific product features.

2.2 PLACE:

Where should be the product be available and role of distribution channels?

The place mainly consists of the distribution channels. It is important so that the product is available to the

customer at the right place, at the right time and in the right quantity.

NEARLY 50% OF U.S.A IS WITHIN A 3 MINUTE DRIVE FROM A MCDONALD’S OUTLET.

THERE IS A CERTAIN DEGREE OF FUN AND HAPPINESS THAT A CUSTOMER FEELS EACH TIME HE DINES AT

MCDONALDS. THERE ARE CERTAIN VALUE PROPOSITIONS THAT MCDONALDS OFFER TO ITS CUSTOMERS BASED

ON THEIR NEEDS. MCDONALDS OFFERS HYGIENIC ENVIRONMENT, GOOD AMBIENCE AND GREAT SERVICE. NOW

MCDONALDS HAVE ALSO STARTED GIVING INTERNET FACILITY AT THEIR CENTRES AND THEY HAVE BEEN

PLAYING MUSIC THROUGH RADIO INSTEAD OF THE NORMAL MUSIC. THERE ARE CERTAIN DEDICATED AREAS FOR

CHILDREN WHERE THEY CAN PLAY WHILE THEIR PARENTS CAN HAVE SOME QUALITY TIME TOGETHER

2.3 PRICE:

What should be the pricing strategy?

Pricing includes the list price, the discount functions available, t
he financing optionsavailable 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.
McDonald’s came up with a very catchy punch line.

“Aap ke zamane mein ,baap ke zamaneke daam”. This was to attract the middle and lower class consumers

and the effect can clearly be seen in the consumer base McDonalds has now. McDonalds has certain value

pricing and bundling strategies such as happy meal , combomeal , family meal etc to increase overall sales

volumes.

2.4 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. A clear understanding of the customer value helps decide
whether the cost of promotion is worth spending. 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 audience through the right media. McDonald’s does its
promotion through television, hoardings and bus shelters. They
use print ads and the television programmer are also an
important marketing medium for promotion. Some of the most
famous marketing campaigns of McDonald’s are:

•“You Deserve a break today, so get up and get away- To McDonald’s”

•“Aap ke zamane mein ,baap ke zamane ke daam”.

•“Food, Folks, and Fun”

•“I’m loving it”.

2.5 PEOPLE:

How to converge the benefits of internal and external marketing?

McDonald’s understands the value of both its employees and its customers. It understands the fact that a happy

employee can serve ell and result in a happy customer. 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.

2.6 PHYSICAL EVIDENCE:

The physical evidence appearance affects not onlythe impression outsiders have of a business but allthe way

that business functions.

McDonalds focuses on clean and hygienic interiors of is outlets
and at the same time the interiors are attractive and the fast food
joint maintains a proper decorum at its joints.

Hence due importance is to be given to :

1) Staff members.

2) Location & appearance.

3) Buildings Maintence.

2.7 PROCESS

The food manufacturing process at Mc Donald is completely transparent i.e. the whole process is visible to the

customers. In fact, the fast food joint allows its customers to view and judge the hygienic standards at Mc Don-

alds by allowing them to enter the area where the process takes place. The customers are invited to check the

ingredients used in food.

Hence, McDonald’s :

 Food manufacturing transparent to customers.

  Training to the licensees.

 Invented the most efficient cooking equipment.

 New methods of food packaging and distribution.

McDonald’s in India followed the same tradition.

2.8 SWOT ANALYSIS

SWOT analysis is a simple framework for generating strategic alternatives from a situation analysis. It is

applicable to either the corporate level or the business unit level and frequently appears in marketing plans.

Such an analysis of the strategic environment is referred to as a SWOT analysis. A scan of the internal and

external environment is an important part of the strategic planning process. Environmental factors internal to

the firm usually can be classified as strengths or weaknesses, and those external to the firm can be classified as

opportunities or threats. The SWOT analysis provides information that is helpful in matching the firm's

resources and capabilities to the competitive environment in which it operates.

STRENGTH

 Strong brand name, image and reputation.

 Large market share.

 Strong global presence.

 Specialized training for managers known as the Hamburger University.

 McDonalds Plan to win focuses on people, products, place, price and promotion.

 Strong financial performance and position.

 Introduction of new products.

 Customer focus (centric).

 Strong performance in the global market place.

OPPORTUNITY

 Expansion of other cashless payment systems.

 Well being and ethical image improvement.

 Expansion of the children market (other business –market penetration)

 Setting up vegetarian menus or outlets to expand the market

 Growing health trends among consumers

 Joint ventures with retailers (e.g. supermarkets).

 Consolidation of retailers likely, so better locations for franchisees.

 International expansion into emerging markets of China and India.

 Diversification and acquisition of other quick-service restaurants.

 Growth of the fast-food industry.

THREATS
 Anti-American sentiments.

 Global recession and fluctuating foreign currencies.

 Intense Competitions

 Growth of health conscious eaters

 Outbreak of diseases (mad cow, H5N1, bird flu, SARS)

 Recent hygiene complaints affect sales.

 CHAPTER – 3

ANALYSIS – II

Survey Questionnaire

Q1) Gender

GENDER

Male
40%
Female
60%

Q2) Age
 AGE

10%
20%
Below 18

18 to 22

23 to 27
34%
28 and above

36%

Q3) Occupation

OCCUPATION

8%
6% Student
24%
Executive
Public sector worke
14% Clerical
Secretarial
6% Manager
Self-employed
Housewife
14% 8%
Others
10%
10%

Q4) Do you prefer to have meal form Fast Food restaurant?

 Prefer to have meal from Fast Food restaurant

32%

YES NO

68%

Q5) Which fast food restaurant(s) do you visit most frequently?

Prefered Fast Food Restaurant

22%
MCDONALD’S
36%
PIZZA HUT

KFC

22%
DOMINOS

20%

Q6) What is the first thing that strikes your mind about McDonald’s?
 First thing that strikes your mind about Mc-
Donald’s

18% BURGER
26%
ADVERTISING

SERVICES
18%
VALUE OF MONEY
16%
FUN

22%

Q7) Is the product line in McDonald’s adequate?

Is the product line adequate

30% YES
36%
NO

AVERAGE

34%

Q8) Which is your favorite product at McDonald’s?

 Favorite product at McDonald’s

10% MAHARAJ MAC

18%
8% MC CHICKEN BURGER

MC VEGGIE BURGER
12%
14%
FRENCH FRIES

MC CURRY PAN

12% FILET-O-FISH
26%
OTHERS

Q9) Which type of McDonald’s promotional advertising catch your eye?

Promotional advertising catch your eye

14% 14%
INTERNET

NEWSPAPERS
12%
16% BILLBOARDS

POSTERS

MAGAZINES
26% 18%
TV

Q10) What is the main problem you faced at McDonald’s?

 Problem faced at McDonald’s

20%
LONG QUEUES
32%

RUDE BEHAVIOUR OF
EMPLOYEES

16% CONGESTION

OTHER
14%
18% NO PROBLEM

Q11 ) For McDonald’s product’s price, is it reasonable? If 10 is perfect, your score as

Product’s price is it reasonable

2%
4%
5%
18% 1 2 3
7%

4 5 6
9%
16%
7 8 9
11%

10
15%
13%

Q12) How often do you visit McDonald’s outlet?

 Visit to McDonald’s outlet

24% WEEKLY

MONTHLY
52%
OCCASIONALLY

24%

Q13) Which area do you think needs the most improvement?

Area needs most improvement

10% 10%
DELIVERY TIME
8%
ENVIRONMENT
20% PRODUCT VARIETY

PRICES

OFFERS AND
30% DISCOUNTS

OTHERS
22%

Q14) What factors do you consider important when visiting McDonald's?

 Factors important when visiting McDonald's

10% Product assortment

18%
8% Price

Food quality

12%
Discounts / coupons
16%
Nutrition

Waiting time

20%
Distance to Mc-
16% Donald's

Q15) Thinking about your most recent visit to McDonald's, to what level of satisfaction do you rank that visit?

Level of satisfaction on recent visit to McDonald's

4%
6%
Very poor
Poor
40%
22%
Good
Very good
Excellent

28%
 CHAPTER-4

SUMMARY, RECOMMENDATIONS & CONCLUSION

SUMMARY

 On the basis of gender male (60%) prefer fast food than female (40%).

 In basis of age majority is at the age of 18-22 (36%) while others are as Below 18 (20%), 23-27 (34%), 28

and above (10%).

 Based on occupation here the majority is students (24%) then Manager (14%), Self-employed (14%), Sec-

retarial and Clerical (10%), Public Sector workers and others (8%) rest Housewife and Executive (6%).

 Almost 68% of people prefer to have food form fast food restaurants.

 MC Donald’s is preferred by 36 % of people while pizza hut (20%), kfc (22%) and dominos (22%).

 First thing that strikes mind about MC Donald’s is burger (26%) advertising (16%) services (22%) value of

money (18%) and fun (18%).

 The product line of MC Donald’s should be improved since most of them commented as average (36%),

no (34%) and yes (30%).

 Majority of people's favourite product is French Fries (26%), Maharaj Mac (18%), mc chicken

Burger(14%), mc curry pan and mc veggie burger (12%) filet-o-fish (8%) and others (10%).
 Posters attract most of customer’s upto (26%) billboards (18%), TV and internet (14%), news papers

(16%) and magazines (12%).

 There is no major problem faced by customers upto (32%) some of the problems are long queues (20%)

rude behaviour of employees (16%) congestion (18%) and other (14%).

 Based on pricing strategy of MC Donald’s upto (18%) customer gave a score of 10, (16%) for 9, (15%) for

8, (13%) for 7, (11%) for 6.

 Customer visit occasionally upto (52%), weekly (24%) and monthly (24%).

 MC Donald’s needs to improve the product variety then prices, offers and disc outs, delivery time and

environment.

RECOMMENDATIONS

 Maintain consistency in the taste and quality of products

 Include more items in its product line. (Variety)

 Include more veg. options

 More promotional and advertising measures to increase its sales or to increase its market share.
  Recognize the small outlets and give more discounts

 Growing health trends among consumers

 They should focus more on their promotional strategies like advertising etc.

CONCLUSION

McDonald’s is one of the largest fast food companies in the world. They continue their path for success by

keeping their consumers in mind regarding their product selection as well as their prices. They encourage their

employees to do a good job, usually promote from within, and offers several scholarships to encourage

education. Though McDonald’s is a centralized, “wait and see” company they find ways to use technological

products that will increase their productivity, service, and sales, everywhere from using the Nintendo DS to

train staff to suing Mew POS touch screen registers. McDonald’s will certainly be around for plenty more years

to come.

McDonald’s has been successful in operating within the food service industry through efficient strategies and

quality standards which enables them to gain competitive advantage. As evidenced by its international market

growth, McDonald’s has already been efficient in gaining entry even in the most challenging markets like

Britain. Through its strong sense of quality service and customer satisfaction, McDonald’s was able to offer its
products to the Britain market. Products were modified to suit the British taste and preferences; affordable

prices were implemented; effective promotions and offers were done.

These are some of the strategies involved in the company’s business strategy which allowed McDonald’s to

gain the Britain support. Despite these successes, the company should take into consideration the growing level

of competitiveness in the food service industry.

In India, several foreign fast food chains offering similar products are also being supported by the India

consumers. Constant strategic change is then necessary to ensure that the company would sustain their

competitive advantage.

In conclusion, McDonald’s has been successful because of the value the company gives for its customers.

Hence, despite the controversial beginning of McDonald’s in India, the company managed to adapt to its

people’s cultural needs. Indeed, McDonald’s is a learning organization, one that is willing to learn and open to

change.

BIBLIOGRAPHY

 http://books.google.co.in

 http://en.wikipedia.org
  http://www.mcdonalds.ca

 http://ezinearticles.com

BOOKS

 th
Kotler, Phillip and Keller, lane Kevin (2008) Marketing Management, 12 Edition. Prentice hall.