blackbook project on mcdonalds marketing

8/11/2019 Blackbook Project on Mcdonalds Marketing

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McDonalds

UNIVERSITY OF MUMBAI

PROJECT ON

McDONALDS

SUBMITTED BY

DEEP NANDKUMAR KADU.

PROJECT GUIDE

PROF.MRS.MAHALAKSHMI SANKAR.

BACHELOR OF MANAGEMENT STUDIES

SEMESTER V(2009-200!

V.E.S COLLEGE OF ARTS" SCIENCE # COMMERCE"SINDHI COLONY" CHEMBUR - $000%

1


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McDonalds

UNIVERSITY OF MUMBAI

PROJECT ON

McDONALDS

S&')**+,

I P/*) F&1)+* 1 *3+ /+4&)/++*5F/ *3+ A6/, 1 *3+ D+7/++ 1Bc3+/ 1 M7++*

B8

DEEP NANDKUMAR KADU.

PROJECT GUIDE

PROF.MRS.MAHALAKSHMI SANKAR.

BACHELOR OF MANAGEMENT STUDIES

SEMESTER V

(2009-200!

V.E.S COLLEGE OF ARTS" SCIENCE # COMMERCE"SINDHI COLONY" CHEMBUR - $000%

2


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McDonalds

DECLARATION

I" DEEP NANDKUMAR KADU 5*&,+* 1 BMS S++5*+/ V

(2009-200! 3+/+'8 ,+c/+ *3* I 3:+ c;+*+, *3)5 ;/.

T3+ )1/*) 5&')**+, )5 T/&+ # O/)7) * *3+ '+5* 1 8

?6+,7+.

@@@@@@@@@@@@@@

S*&,+*5 S)7*&/+ DEEP NANDKUMAR KADU.

N+ 1 S*&,+*

3


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McDonalds

CERTIFICATE

T3)5 )5 * c+/*)18 *3* M/. DEEP NANDKUMAR KADU 1 T.Y.BMS 35

S&cc+551&8 c;+*+, *3+ ;/ &,+/ *3+ 7&),c+ 1

PROF.MR S .MAHALAMI. SANKAR .

P/


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McDonalds

ACKNOLEDGEMENT

It gives me great pleasure to submit this project to the University of Mumbai as a part of

curriculum of my M! course" I ta#e this opportunity $ith great pleasure to present before you

this project on =McD,5> $hich is a result of co%operation& hard $or# and good $ishes of

many people"

'o $ords can ade(uately e)press my sincere than#s to all those $ho have help me in ma#ing

this project a success"

*lso I ac#no$ledge my deep sense of gratitude to$ards my guide P/1+55/ M/5 M3?53)

S?/ .

I $ould also li#e to ta#e this opportunity to than#s M/.B3/*.K/)53.V)*8 R+5*&/*

M7+/ (K3;&/ S*/+!.

I am grateful * M/5. J.K.P3,)5" P/)c); 1 V.E.S C+7+ 1 A/*5" Sc)+c+ # C+/c+

, P/1 M/5. A. M/*)" BMS C-/,)*/ (Bc3+/ 1 M7++* S*&,)+5!

My debt to those $ho have helped me in one $ay or the other is heavy indeed" I $ould li#e to

appreciate contribution of my family and friends $ho have e)tended their complete support in

completion of this project"

+ast but not the least, I am than#ful to the *lmighty for giving me strength& courage and patience

to complete this project"

-


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McDonalds

EECUTIVE SUMMARY

McDonalds is a globally successful fast%food restaurant" .rom the time of its birth it has

gain enormous success and is gro$ing at the international level" /he po$erful entry through

franchisee system the standardi0ation and adaptation strategy play an important role in gaining

the huge success of McDonalds and brand image of McDonalds"

McDonalds strategy of standardi0ing their products on its preparation& techni(ues of

presentation along $ith the adaptation strategy has created a difference in McDonalds as

compared to that of its competitors"

Mar#eting being my subject interest #no$ing the strategy of one of the most successful

company $ill really help me out" /hus& I have chosen McDonalds as my study of subject for

my 1 mar#s project in /M!" /his has really helped me out to #no$ lots of mar#eting

techni(ues and practically understand the McDonalds strategy of standardi0ation and

adaptation"

STUDY

In the project focus has been made on McDonalds franchisee in India" /he challenges

faced& their target mar#et& segmentation strategies" /he supply chain of the company and its

ability to provide best (uality food at the best cost" /he - s of McDonalds and the various

schemes provided by the company to its employees $hile $or#ing in McDonalds and even after

their retirement from the company" McDonalds as a service industry its life cycle is also studies"/he present strength and $ea#ness of the company and the future opportunities and its future

threats are also study for better analysis of McDonalds mar#eting in India"

CONCLUSION

!tudying McDonalds and its mar#eting system has helped me a lot in understanding the

mar#eting subject in a better manner" *nd it $ill be helpful for me in near future"

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McDonalds

I'D67

TITLE PAGE NO.

CHAPTER I-INTRODUCTION

1" I'/89DU:/I9'2" ;I!/983" .8*':;I!66!

0-0

1%23%4

-

CHAPTER II - MCDONALDS IN INDIA

1" /;6 I'DI*' 6


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McDonalds

TITLE PAGE NO.

CHAPTER VI-MCDONALDS IN SERVICE INDUSTRY1" M:D9'*+D! 6768I6':62. M9M6'/ 9. /8U/;3" IM98/*':6 9. 89DU:/ +I.6 ::+64" * 68.6:/ 67*M+6 9. 86=I/*+IBI'


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McDonalds

I'/89DU:/I9'

McD,5 C/;/*) )5 *3+ 6/,5 /7+5* c3) 1 15*-1, /+5*&/*5.

/he McDonalds :orporation is one of the most successful global restaurant chains

around the $orld" /hey have used effective management and global e)pansion strategies to enter

ne$ mar#ets and gain a share of the foreign fast food mar#et" McDonalds has achieved this

enormous success& its best practices in the global food industry& international gro$th trends and

challenges& and various lessons that have been learned from their e)pansion in foreign countries"

/his sho$s ho$ McDonalds creates both customer and brand loyalty for their products and

services"

In 1@3A rothers Dic# and Mac McDonald open a hot dog stand called the *irdrome at

the airport in Monrovia& :alifornia E in 1@4 the brothers move the *irdrome building to !an

ernardino& :alifornia& $here they open the first McDonaldFs restaurant" *lthough McDonaldFs

did not invent the hamburger or fast food& its name has become nearly synonymous $ith both"

/he McDonaldFs


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McDonalds

In order to be a franchisee& an individual must have at least 1A-&" /here is about

2&4 o$nerJoperators system $ide" McDonaldFs is loo#ing to boost sales by opening restaurants

24 hours a day" *n estimated 3H of store revenue comes from brea#fast sales" /he company

has instituted a dollar menu $hich includes a double cheeseburger in a bid to boost sales from

value%oriented customers"

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McDonalds

;I!/98

/he first McDonaldFs restaurant $as located in !an ernardino& :* in 1@-4 and operated

by t$o brothers Dic# and Mac McDonald" 8ay >roc& a mil# sha#e machine salesman& thought

the restaurant $as great and purchased the rights from the brothers" >roc opened his first

McDonaldFs restaurant in Des laines& I+ in 1@-- and preached cleanliness in restaurants"

McDonaldFs $ould gro$ (uic#ly as it signed on franchisees to open restaurants around the

country" McDonaldFs $ould go public in 1@5-"

/he ig Mac $as introduced system $ide in 1@5? and $as the brainchild of Gim

Delligatti& one of 8ay >rocFs earliest franchisees& $ho by the late 1@5s operated a do0en stores

in ittsburgh" /he 6gg McMuffin $as developed by o$ner operator ;erb eterson in 1@A3"

/he site of the McDonald brothersF original restaurant is no$ a monument" Cith the

e)pansion of McDonaldFs into many international mar#ets& the company has become a symbol of

globali0ationand the spread of the *merican $ay of life" Its prominence has also made it a

fre(uent topic of public debates aboutobesity&corporate ethicsand consumerresponsibility"

In 2A& the company had record revenues of 22"? billion& a @H increase from the

previous year" 'et income $as 2"3@ billion" McDonaldFs sold the oston Mar#et restaurant

chain in 2A and o$ns a sta#e in :hipotle Me)ican


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McDonalds

.8*':;I!66!

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McDonalds

.ranchising refers to the methods of practicing and using another personFsphilosophy

of business" /he franchisor grants the independent operator the right to distribute its products&

techni(ues& and trademar#s for a percentage of gross monthly sales and a royalty fee" =arious

tangibles and intangibles such as national or international advertising& training&and other support

services are commonly made available by the franchisor" *greements typically last five to

t$enty years& $ith premature cancellations or terminations of most contracts bearing serious

conse(uences for franchisees"

McDonaldFs does business in more than 3& restaurants in 11@ countries around the

$orld serving 4A million customers each day" In many countries around the $orld it does not

have a presence and its current strategy is to focus on the mar#ets $here it does not do business"

'o firm date has been established for the opening of ne$ mar#ets" In certain mar#ets

McDonaldFs have a presence but it is not see#ing franchisees and it has included instructions

regarding those mar#ets" McDonaldFs sincerely appreciate the customers e)pressed interest in

McDonaldFs and their continued patronage of our restaurants"

M:D9'*+D! I'DI*

/he Indian beginning

13
http://en.wikipedia.org/wiki/Philosophy_of_businesshttp://en.wikipedia.org/wiki/Philosophy_of_businesshttp://en.wikipedia.org/wiki/Advertisinghttp://en.wikipedia.org/wiki/Traininghttp://en.wikipedia.org/wiki/Philosophy_of_businesshttp://en.wikipedia.org/wiki/Philosophy_of_businesshttp://en.wikipedia.org/wiki/Advertisinghttp://en.wikipedia.org/wiki/Training


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McDonalds

* -%- joint venture partnership bet$een McDonalds :orporation U!*K and t$o

Indian business& McDonalds began its journey in India in 9ctober 1@@5" :onnaught la0a

8estaurants vt" +td headed by =i#ram a#shi o$ns and operates the northern and eastern

operation $hich includes restaurants in 'e$ Delhi& Uttar radesh& 8ajasthan& unjab& ;aryana&

Cest engal etc"

*mit Gatias company ;ardcastle vt" +td" 9$ns and operates McDonalds restaurants

in Cest and !outh India" ;8+ has restaurants in Maharashtra& Madhya radesh& >arnata#a and

*ndhra radesh& :hennai and its gro$ing rapidly"

/he head office for ;ardcastle 8estaurants vt" is spread

across t$o building in Mumbai& one at hulbhai Desai 8oad and the

other at !antacru0" /he head office houses all the support departments

re(uired to run the restaurants in the $estern and southern region"

T3+5+ )c&,+5-

:onstruction

It is involves in all construction and design related $or# for the stores as per

McDonalds standards" It prepares project plans for ne$ stores to be put to the management and

implements the same after approval"

:ountry urchase

*ll the purchases of ra$ material for restaurants products are done by the country

purchase department team for both the Delhi and Mumbai mar#ets" It $or#s as a national supply

chain" /he main aim is to purchase the best (uality material from the authori0ed supplier and at

lo$est possible cost" 9nce the material is ordered by a country

purchase it first goes to the distribution centre and then to the restaurants according to their

re(uirement"

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McDonalds

:ountry uality *ssurance E roduct Development

/his department $or#s closely $ith the country purchase department" It loo#s after the

(uality of both ra$ material and of finished product" It develops ne$ product for the menu based

on customer preference"

. inance E Information /echnol ogy

It loo#s after all the day to day financing accounting transaction and ta)ation related

activities of the application of Information /echnology to the the company processes"

:orporate *ffairs

It associates $ith brand building and protection of the brands" It $or#s closely $ith

real estate in doing feasibility studies for sites from a legal angle" It loo#s after license and

liaison activities of the company $ith outside agencies& i"e" regarding media

and government authority"

+egal E company !ecretarial"

It helps the company sign legal deals for the ne$ restaurants sites" It safeguards the

interest of the company and act as guardians of the company as regards to its legal functions" It

provide advisory support to the other departments as regards legal issues and ensures compliance

$ith applicable la$s"

eople 8esources J ;uman 8esources"

It conducts activities related to recruitment& selection& remuneration& retention& and

matter related to employee satisfaction"

/raining& +earning E Development"

It is responsible for the training and Development of employees involved in operational

activity and the employees in the :orporate office"

1-


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McDonalds

9ur vision is to be the $orlds best (uic# service restaurant e)perience" /hat means that

our restaurant $ill be the best place for our customers to enjoy fast& friendly services LL fresh

food favoritesLL a clean $elcoming environmentLL and a fun e)perience at a fair price"

9U8 =*+U6!

9ur vision is supported by a set of core values

Ce are dedicated to providing customers unparalleled levels of (uality& service&

cleanliness& and value" It is $hat 8* >89: taught us"

Ce are committed to our people because $e #no$ that a diverse team of $ell trained

individuals $or#ing together is the #ey to our continued success"

Ce approach all aspects of our business $ith honesty and integrity"

Ce al$ays give bac# to the communities in $hich $e do business"

Ce celebrate our achievements& yet $e are never satisfied $ith our results"

NT '+ &/ c&5*+/ - 1:&/)*+ ;c+ , 68 * +*.>

:;*++6'


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McDonalds

McDonalds $as #no$n for its hamburgers& beef and por# burgers" Most Indians are

barred by religion not to consume beef or por#" /o survive& the company had to be

responsive to the Indian sensitivities" !o McDonalds came up $ith chic#en& lamb and

fish burgers to suite the Indian palate"

/he vegetarian customerO India has a huge population of vegetarians" /o cater to this

customer segment& the company came up $ith a completely ne$ line of vegetarian items

li#e Mc=eggie burger and Mc*loo/i##i" /he separation of vegetarian and non%

vegetarian sections is maintained throughout the various stages"

!6


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McDonalds

71%

59%52%

0%

10%

20%

30%

40%

50%

60%70%

80%

Biscuits Burgers & Pizzas Fruit Juices

% of kids who influence what FMCG brand their

family buys

*s sho$n above& #ids reign supreme in .M:< purchase related to food products" !o to

attract children McDonalds has ;appy Meal $ith $hich toys ranging from hot $heels to various

Calt Disney characters are given Pthe latest in this range is the toys of the movie MadagascarQ"

.or this& they have a tie%up $ith Calt Disney" *t several outlets& it also provides special facilities

li#e Rlay lace $here children can play arcade games& air hoc#ey& etc" /his strategy is aimed at

ma#ing McDonalds a fun place to eat" /his also helps McDonalds to attract the young urban

families $anting to spend some (uality time $hile their children have fun at the outlet" /o target

the teenagers& McDonalds has priced several products aggressively& #eeping in mind the price

sensitivity of this target customer" In addition& facilities li#e Ci%.i are also provided to attract

students to the outlets li#e the one at =ile arle in Mumbai"

NMc Donalds Mein ;ai >uch aatS projects McDonalds as a place for the $hole family

to enjoy" Chen McDonalds entered in India it $as mainly perceived as targeting the urban

upper class people" /oday it positions itself as an affordable place to eat $ithout compromisingon the (uality of food& service and hygiene" /he outlet ambience and mild bac#ground music

highlight the comfort that McDonalds promises in slogans li#e Nou deserve a rea# /odayS E

N.eed your inner childS" /his commitment of (uality of food and service in a clean& hygienic and

rela)ing atmosphere has ensured that McDonalds maintains a positive relationship $ith the

customers"

1@


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McDonalds

:ustomer erception and :ustomer 6)pectation

:ustomer perception is a #ey factor affecting a products 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 reno$ned brand

brings $ith it certain e)pectations for the customers"

:ustomers e)pect it to be an ambient& hygienic and a little sophisticated brand that respects their

values" /he customers e)pect the brand to enhance their self%image" :ustomer responses

obtained at the =ile arle& Mumbai outlet confirmed the fact that they connect strongly $ith the

brand" ;o$ever& fulfilling some of the customer e)pectations li#e a broader product variety

provide McDonalds a great scope for improvement"

McD,))7 *3+ S&;;)+/5

SUPPLY CHAIN

!upply :hain is one of the critical factors for the smooth functioning of any business"

*nd $hen $e are tal#ing about fast food business $ith McDonalds as the subject of the study it

can e)pected a !upply :hain model of one of the highest precisions" It is this unmatched !upply

:hain !tructure& $hich not just ensures on time delivery of ra$ materials and supplies to

McDonalds but also enables it to cut do$n on its cost and ma)imi0e profitability along $ith

maintaining highest (uality standards of its products" /he level of commitment of McDonalds

can be gauged from the fact that even before it set up its first restaurant in the country it infused

8s 4 :rore to set up its delivery mechanism" McDonalds initiative to set up an efficient

2

/arget !egment Chat is McDonalds for meT* .amily $ith children * treat to children& a fun place to be for the children"Urban customer on the move


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McDonalds

supply chain and deploy state%of%art technology changed the entire Indian fast food industry and

raised the standards of performance to international levels"

*s already mentioned& McDonalds had been $or#ing on its supply chain even before it

opened its first joint in the country" McDonalds& an international brand $hich $as trying to ma#e

inroads into the country& developed its Indian partners in such a manner that they stayed $ith the

company from the beginning" /he success of McDonalds India $as achieved by sourcing all its

re(uired products from $ithin the country" /o ensure this& McDonalds developed local

businesses& $hich can supply it highest (uality products" /oday& McDonalds India $or#s $ith 3?

different suppliers on a long term basis and several other stand alone restaurants for its various

other re(uirements" McDonalds distribution centres in India came in the follo$ing order 'oida

and >alamboli PMumbaiQ in 1@@5& angalore in 24& and the latest one in >ol#ata P2AQ"

McDonaldFs entered its first distribution partnership agreement $ith 8adha >rishna .oodland& apart of the 8adha >rishna


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McDonalds

Dynami) has brought immense benefits to farmers in aramati& Maharashtra by setting up anet$or# of mil# collection centres e(uipped $ith bul# coolers" 6asy accessibility has enabledfarmers augment their income by finding a ne$ mar#et for surplus mil#" /he factory has

.ully automatic international standard processing facility"

:apability to convert mil# into cheese& butterJghee& s#immed mil# po$der& lactose&

casein E $hey protein and humani0ed baby food"

!tringent (uality control measures and continuous 8esearch E Development

.rom farm t$o degrees :elsius in @ minutes is the first step to (uality" .or e)ample& the 8s

252%crore Dynami) Dairy Industries& located in aramati in une district of Maharashtra&

manufactures cheese slices for McDonalds at 1 metric tonnes per month" Dynami) has helped

set up 1- bul# cooling centres throughout the district from $hich it purchases mil#" 6ach cooling

centre& $hich is e(uipped $ith modern measuring and

testing e(uipment and a large cooling tan#& is not more than a fe$ #ilometers a$ay from local

dairy farms" * farmer can deliver mil# even t$ice a day on his bicycle and get a printed receipt

on the spot& $hich also lists the (uality of the mil# supplied by him as per fat content& colour and

solids content"

If the mil# is sub%standard or adulterated& it is rejected on the spot" * batch of mil# can

vary from one litre to 1 litres& or more" 6ach batch is mi)ed in one large stainless steel cooler

and chilled immediately to t$o degrees :elsius to stop bacterial gro$th and preserve freshness"

.rom this point on$ards& until just before the burger is actually served in a McDonalds

restaurant hundreds of #ilometers a$ay& the temperature is never allo$ed to increase" Chen the

refrigerated mil# arrives at the Dynami) plant at aramati& the mil# in every single tan#er is

thoroughly tested and rejected if found sub%standard& adulterated or contaminated" /he

sophisticated testing lab can chec# fat content $ith an accuracy of "1 per cent" It can even detect

minute traces of pesticides or antibiotics administered to co$s" /his instant feedbac# and the

rejection of the entire tan#er%load forces farmers to follo$ the best practices in terms of animalhusbandry& use proper feeds& cut do$n on the indiscriminate use of pesticides and animal

medicines and completely stop even the slightest attempts at adulteration"

T/)?8 A7/)c&*&/+ (S&;;)+/ 1 Ic+'+/7 L+**&c+!

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McDonalds

Implementation of advanced agricultural practices has enabled /ri#aya to successfully gro$

specialty crops li#e iceberg lettuce& special herbs and many oriental vegetables" .arm

infrastructure features

* speciali0ed nursery $ith a team of agricultural e)perts"

Drip and sprin#ler irrigation in raised farm beds $ith fertili0er mi)ing plant"

re%cooling room and a large cold room for post harvest handling"

8efrigerated truc# for transportation"

/ri#aya *griculture& a major supplier of iceberg lettuce to McDonaldFs India& is one such

enterprise that is an intrinsic part of the cold chain" 6)posure to better agricultural

management practices and sharing of advanced agricultural technology by McDonaldFs has made

/ri#aya *griculture e)tremely conscious of delivering its products $ith utmost care and (uality"

Initially lettuce could only be gro$n during the $inter months but $ith McDonaldFs e)pertise

in the area of agriculture& /ri#aya .arms in /alegaon& Maharashtra& is no$ able to gro$ this crop

all the year round" McDonaldFs has provided assistance in the selection of high (uality seeds&

e)posed the farms to advanced drip%irrigation technology& and helped develop a refrigerated

transportation system allo$ing a small agri%business in Maharashtra to provide fresh& high%

(uality lettuce to McDonaldFs urban restaurant locations thousands of #ilometers a$ay" ost

harvest facilities at /ri#aya include a cold chain consisting of a pre%cooling room to remove field

heat& a large cold room and a refrigerated van for transportation $here the temperature and the

relative humidity of the crop is maintained bet$een 1 : and 4 : and @-H respectively"

=egetables are moved into the pre%cooling room $ithin half an hour of harvesting" /he pre%

cooling room ensures rapid vacuum cooling to 2 : $ithin @ minutes" /he pac# house& pre%

cooling and cold room are located at the farms itself& ensuring no delay bet$een harvesting& pre%

cooling& pac#aging and cold storage" Cith this cold chain infrastructure in place& /ri#aya

*griculture has also a plan to e)port this high value product to other international mar#ets&

especially to McDonaldFs Middle 6ast and *sia acific operations" McDonaldFs e)pertise in

pac#aging& handling and long%distance transportation has helped /ri#aya to do trial shipments to

the


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McDonalds

V)5* P/c+55+, F,5 P:*. L*,. (S&;;)+/ 1 C3)c?+ , V+7+*'+ /7+ 1

;/,&c*5 )c&,)7 F/&)* P)+5!

* joint venture $ith 9!I Industries Inc"& U!*& McDonaldFs India vt" +td" and =ista

rocessed .oods vt" +td"& produces a range of fro0en chic#en and vegetable foods" * $orldclass infrastructure at their plant at /aloja& Maharashtra& has

!eparate processing lines for chic#en and vegetable foods"

:apability to produce fro0en foods at temperature as lo$ as %3- Degree :el" to retain

total freshness"

International standards& procedures and support services"

=ista rocessed .oods vt" +td"& McDonaldFs suppliers for the chic#en and vegetable

range of products& is another important player in this cold chain" /echnical and financial support

e)tended by 9!I Industries Inc"& U!* and McDonalds India rivate +imited have enabled =ista

to set up $orld%class infrastructure and support services" /his includes hi%tech refrigeration

plants for manufacture of fro0en food at temperatures as lo$ as % 3-V :" /his is vital to ensure

that the fro0en food retains it freshness for a long time and the Fcold chainF is maintained" /he

fro0en product is immediately moved to cold storage rooms" Cith continued assistance from its

international partners& =ista has installed hi%tech e(uipment for both the chic#en and vegetable

processing lines& $hich reflect the latest food processing technology Pde%boning& blending&forming& coating& frying and free0ingQ" .or the vegetable range& the latest vegetable mi)ers and

blendersare in operation" *lso& #eeping cultural sensitivities in mind& both processing lines are

absolutely segregated and utmost care is ta#en to ensure that the vegetable products do not mi)

$ith the non%vegetarian products" 'o$& at =ista& a very $ide range of fro0en and nutritious

chic#en and vegetable products is available" 9ngoing 8ED& both locally and in the parent

companies& $or# to$ards innovation in taste& nutritional value and convenience" /hese products&

besides being supplied to McDonaldFs& are also offered to institutions li#e star%rated hotels&

hospitals& project sites& caterers& corporate canteens& schools and colleges& restaurants& food

service establishments and coffee shops" /oday& production of better (uality fro0en foods that are

both nutritious and fresh has made =ista rocessed .oods vt" +td" a name to rec#on $ithin the

industry"

R,3?/)53 F,, (D)5*/)'&*) C+*/+5 1/ D+3) , M&')!

24
http://www.articlesbase.com/marketing-articles/mcdonalds-india-supply-chain-729402.htmlhttp://www.articlesbase.com/marketing-articles/mcdonalds-india-supply-chain-729402.htmlhttp://www.articlesbase.com/marketing-articles/mcdonalds-india-supply-chain-729402.htmlhttp://www.articlesbase.com/marketing-articles/mcdonalds-india-supply-chain-729402.html


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McDonalds

*n integral part of the 8adha#rishna


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McDonalds

*ll suppliers adhere to Indian government regulations on food& health and hygiene $hile

continuously maintaining McDonaldFs recogni0ed standards" *s the ingredients move from farms

to processing plants to the restaurant& McDonaldFs uality Inspection rogramme PIQ carries

out (uality chec#s at over 2 different points in the :old :hain system" !etting up of the :old

:hain has also enabled it to cut do$n on operational $astage

;a0ard *nalysis :ritical :ontrol oint P;*::Q is a systematic approach to food safety

that emphasi0es prevention $ithin its suppliersF facility and restaurants rather than detection

through inspection of illness or presence of microbiological data" ased on ;*:: guidelines&

control points and critical control points for all McDonaldFs major food processing plants and

restaurants in India have been identified" /he limits have been established for those follo$ed by

monitoring& recording and correcting any deviations" /he ;*:: verification is done at least

t$ice in a year and certified"

/he relationship bet$een McDonaldFs and its Indian suppliers is mutually beneficial" *s

McDonaldFs e)pands in India& the supplier gets the opportunity to e)pand his business& have

access to the latest in food technology& e)posure to advanced agricultural practices and the

ability to gro$ or to e)port" /here are many cases of local suppliers operating out of small to$ns

$ho have benefited from their association $ith McDonaldFs India

MCDONALDS MARKETING MI ( PS!

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McDonalds

/he 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 (uantity" 'early -H

of U"!"* is $ithin a 3 minute drive from a McDonalds outlet"

/here is a certain degree of fun and happiness that a customer feels each time he dines at

McDonalds" /here are certain value propositions that McDonalds offer to its customers based on

their needs" McDonalds offers hygienic environment& good ambience and great service" 'o$

McDonalds have also started giving internet facility at their centres and they have been playing

music through radio instead of the normal music" /here are certain dedicated areas for children

$here they can play $hile their parents can have some (uality time together"

P/)c+Chat should be the pricing strategyT

ricing includes the list price& the discount functions available& the financing options available

etc" It should also ta#e into the consideration the probable reaction from the competitor to the

pricing strategy" /his is the most important part of the mar#eting mi) as this is the only part

$hich generates revenue" *ll the other three are e)penses incurred" /he price must ta#e into

consideration the appropriate demand%supply e(uation"

McDonalds has certain value pricing and bundling strategies such as happy meal& combo meal&

family meal etc to increase overall sales volumes"

B/,+, A11/,'))*8 ;aving established the image of

comfort and familiarity& it no$ $as

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McDonalds

time to add ne$ people to the fold" /he Indian consumers continued to perceive McDonalds as

an e)pensive eating out option" /he challenge $as to overcome this perception and be accepted

as an affordable brand" Chile the patented products li#e Mc=eggieW and Mc:hic#enW

continued to cater to the patrons& the company needed to broaden the audience base to further

entrench into the mar#et"

McDonalds found success in its strategy of randed *ffordability and

introduced the R;appy rice Menu of 8s"2J%" 6ngaging and Memorable

campaigns $ere created to establish the randed *ffordability

communication %/he Rahanas& the yesteryears prices& or Rbees mein full

dhamalX

P/*)3* )5 *3+ 5&)*'+ 5*/*+78 , c3+5 1/ ;/*) 1 *3+ ;/,&c*

/he various promotion channels being used by McDonalds to effectively communicate

the product information are given above" * clear understanding of the customer value helps

decide $hether the cost of promotion is $orth spending"

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McDonalds

/here are three main objectives of advertising for McDonalds are to ?+ ;+;+

6/+ 1 )*+& 1++ ;5)*):+ '&* )* and /++'+/ )*" /he /)73* +557+ has to be

communicated to the /)73* &,)+c+through the /)73* +,)" McDonalds does its promotion

through television& hoardings and bus shelters" /hey use print ads and the television programmes

are also an important mar#eting medium for promotion"

!ome of the most famous mar#eting campaigns of McDonalds are

Nou Deserve a brea# today& so get up and get a$ay% /o McDonaldsS

N*ap #e 0amane mein& baap #e 0amane #e daamS"

N.ood& .ol#s& and .unS

NIm loving itS"

F))/)*8 '/++,5 c1/*

/he first step for the brand $as to establish itself as a familiar&

comfortable place" /a#ing a cue from the Indian family values& the

year 2 sa$ the first ever McDonalds ad aired in the country" *

child& $ho is unable to recite a poem and suffers stage fright& but $hen

he enters McDonalds& he easily recites it $hen in the comfortable

familiar environment of McDonalds"

Cor#ing on the insight O similarly $hen his family moves into a ne$ place& the child

misses all that has al$ays been so familiar and dear" ;e then has the comfort of something that is

dear and familiar to bring a smile to his face" McDonalds $as successful in creating an image of

a $arm and comfortable ambience through its

ads" RMcDonalds Mein ;ai >uch aat Ma#ing McDonalds the consumers favorite place and

$ay to eat" Chile #ids and families $ere #ey& it $as also important to tal# to the generation that

had not gro$n up on McDonalds burgers and fries" *n adult $ho $or#s $ith logic and

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McDonalds

reasoning $ould need a reason tempting enough" *nd $hat better $ay to tal# to them than tal#

about McDonalds core competence O foodX

6ven in Dreams

McDonalds reali0ed that the $ay to dra$ more consumers $ould be to increase the

visibility of the brand and its products" /he more a person sa$ food& the greater his urge $ould

be to try it out" /he company came up $ith its ne)t round of campaign to address and reflect this"

/he campaign sho$ed different people dreaming about McDonalds" It depicted ho$ the

consumers $ere totally involved $ith McDonalds and the food" 'e$ product stories delivered

in a memorable and engaging approach" It $as imperative for the success of the brand to be

RIndiani0ed O to continuously spea# to consumers in their Rlanguage $ithout ta#ing a$ay from

its core *merican parentage" R.rom tears to smiles % campaigns $ere produced to introducene$& scrumptious products"

L+* 7 *3+ c3), 6)*3) 8&

/he general brand perception of McDonalds in India $as that of a place for #ids" Chile

the campaigns had $or#ed in the past& targeting #ids& McDonalds recogni0ed the fact that it

could not al$ays depend on the #ids niche" Chen #ids move up the consumption chain& there is

a possibility of losing out on consumers" Moreover& the family outings $ith children only happen

over the $ee#ends and holidays" It $as imperative to rope in adults $ho $ould patroni0e the

brand over the $ee#ends" :onse(uently& the ne)t series of campaigns $ere targeted to drive in

adult traffic to brea# a$ay from the perception" /he ad depicted a father being invited to a

birthday party at McDonalds" ;e is not at ease $ith the idea of visiting McDonalds since he

perceives it as a #ids place" ;is child reminds him of the Mc:urry anW& .ilet%o%.ishW that he

$ould be able to relish at the birthday party" /he food boosts the father to go to the party& $here

to his astonishment is his boss party" /he ad asserted that people celebrate birthdays and

occasions at places they are comfortable inX

P+;+ ;o$ to converge the benefits of internal and e)ternal mar#etingT

McDonalds 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"

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McDonalds

McDonald continuously doesI*+/ M/?+*)7. /his is important as it must precede e)ternal

mar#eting" /his includes hiring& training and motivating able employees" /his $ay they serve

customers $ell and the final result is a happy customer"

/he level of importance has changed to be in the follo$ing order Pthe more important people are

at the topQ

1" :ustomers

2" .ront line employees

3" Middle level managers

4" .ront line managers

/he punch line NI :)7 )*S is an attempt to sho$ that the employees are loving their $or# at

McDonalds and $ill love to serve the customers"

MC EMPLOYEESE;8++ '++1)*5

M: D9'*+D! provides you $ith many opportunities to tal# to your management on

any topic related to your employmentJ$or#" /o begin $ith $e follo$ an Nopen doorS policy&

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McDonalds

$hich means that all team members at M: D9'*+D! are approachable at any time" :re$

meetings are held every month in your restaurant $here all the store related issues are discussed"

esides this you $ill also have rap session and meet - $here you can e)press your vie$

candidly"

RAP SESSION-

8ap session are small informal discuss bet$een cre$ and management for the purpose of

discussing ideas& suggestions and problems" /hese sessions $ill be held about once every three

months or $henever needed by the store manager or a member of the management team" 8ap

sessions are an opportunity for the cre$ to ma#e their vie$s #no$n to the company" ou $ill be

paid for attending a rap session"

O;)) 5&/:+8-

*bout once a year $e $ill as# all employees to complete a confidential

(uestionnaire relating to their $or# and the operation of the store& the ans$ers $ill help us to

improve our management of the restaurant and conditions of employment"

O;+ ,/ ;)c8-

!hould an employee have (uestions about the contents of their handboo# or

have any basis for concern about any $or# conditions the management teams office door is

al$ays open for private discussion" 6mployees should be encouraged to use this Nopen door

policyS $henever they $ish" +i#e$ise& operationsJhuman resources manager encourage you to

use the open door policy if you have a concern unresolved by your immediate supervisor"

Fc))*)+5

C/+6 /

/his room is provided for the employee for recreation and rest during the brea# time" /he

employee can study& listen to music& and get trained in this room"

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McDonalds

B/+?5

It is not easy to maintain (uality& service& and cleanliness" It ta#e hard $or# and hustle" /o #eep

energy level high& all the cre$ member $or#ing above five consecutive hour are eligible for an

unpaid brea# of an hour"

E;8++ M+

9ne of the best things about $or#ing for McDonalds is for food" 6mployees can enjoy (uality

nutritious food at $orld standard hygiene levels" It is free to managers and cre$" *ll the meals

consumed must be recorded and consumed in the restaurants itself"

Lc?+/ Fc))*8

+oc#ers are available for the employees use at the restaurants for #eeping the personal

belongings in a safe and secure place during the shift"

O*3+/ Fc))*)+5

In addition to the above facilities the employee also enjoys $ith the team member during the

yearly store outing and various inter%store activities arranged system%$ise and patch$ise" /hese

activities are fun and provide opportunity to have a good time and #no$ fello$ employees better"

E;8++ /+c7)*)

Ic+*):+5

*ll the cre$ at McDonalds have the opportunity to get McDonalds branded

merchandise" 6ach restaurant is allotted NMahabuc#sS every month based on monthly store

allocation and various inter%store competitions" Mahabuc#s is a cre$ incentive programme $here

the Mahabuc#s coupons can be redeemed for the set of utility items available for that year" /he

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McDonalds

employee have the opportunity to earn the Mahabuc#s by becoming face of the month& face of

the (uarter& various re$ards organi0ed by the stores and through various inter store competitions"

E;8++ R+1+// P/7/+

/he employee can refer any friend $ho is interested in $or#ing at McDonalds for a cre$

members job at any of the McDonalds store" /he employee receives an incentive after the

referred cre$ member completes 3 months in the organi0ation"

G/,&*+ C/++/ A,:c++* P/7/+

McDonalds believe that investing in the people is one of the best $ays to build the brand

and assure customer loyalty" :re$ Member $ho completes their graduation are recogni0ed for

their academic gro$th by putting them on training programme $hich help them to become

manager faster"

R+*)/++* B++1)*5

E;8++ ;/:),+* 1&,

*ll the employee are eligible for the provident fund scheme as per the companys rule"

rovident fund is a retire benefit provided to every employee of McDonalds" 6very employee

contribute 2 of his basic salary to hisJher . account" /here is an e(ual contribution by the

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McDonalds

employer" ;o$ever ?"33H of the employers contribution is deposited to the 6mployees

ension .und and the rest goes to the rovident .und"

E;8++ S**+ I5&/c+

*ll the cre$ member are eligible for the 6mployee !tate Insurance as per the 6!I rule"

/his benefit is provided to the employee for free medical treatment in case of sic#ness&

maternity& and employment injury" /he employee contribute 1"A-H of his gross salary $here as

the employer contributes 4"A-H

B&5

Depending upon the la$ applicable at the relevant time the employee $ill receive an

amount of ?"33Hof the basic salary earned during the financial year"

G/*&)*8

*ll the full time employee $ho have completed - years of continuous employment $ith

the company are eligible for gratuity" /he employee $ill receive an amount of 1- days basic

salary for every $ee# $or#ed" /he amount is given at the time of separation or retirement from

the company"

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McDonalds

During the !ervice Delivery rocess& each moment of interaction bet$een the firm and

the customer& called NM+*5 1 T/&*3S& helps understand the opportunities that a firm has to

$in or lose the customer" .or e)ample& these Nmoments of truthS are created for McDonalds

every time the guard at the McDonalds outlet meets the customer& every time an attendant ta#es

do$n the order from the customer $aiting in the (ueue& every time the cashier interacts $ith the

customer& every time the attendant helps the customer guided the customer to$ards the table&

every time the attendant cleans the tables etc"

tab

Managing these Nmoments of truthS is a great challenge in !ervice Mar#eting especially

due to customers involvement as a co%producer of services Pe"g" McDonalds self%service

concept $herein the customer not only collects the order but also cleans the table after

consuming the foodQ" ;o$ever& McDonaldFs has been able to create a great e)perience for its

customers by understanding the nature of the entire !ervice Delivery

rocess and the various stages in the process that are e)posed to the customers"

/ransparency in the processes at its outlet has helped McDonalds bring the bac# office in its

3@

Customer

Service Provider Service Delivery Points

Moments Of Truth The Service Encounter


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McDonalds

IMPORTANCE OF PLC IN MCDONALDS

/he re(uirements of customers change over time and thus the product offering has to be

changed accordingly" Chat is the fashion today may be out of mar#et $ithin fe$ $ee#s" /hus

continuous innovation is re(uired"

/o counter these changes McDonalds has continuously introduced ne$ products and has phased

out the old ones $hich $ere at the decline stage of their +:" /he introduction is timed such thatthe ne$ product does not cannibali0e the product already in the maturity or gro$th stage" /hus

the secret lies in getting profits $ith different products in the different stages of the +:"

A ;+/1+c* +;+ 1 /+:)*)5)7 ;/,&c* ) ,+c)+ ;35+

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McDonalds

/he F/+c3 F/)+5have been an important part of the McDonalds menu $orld$ide" ut

no$ it $as in the stage of decline and $as actually not generating proper return" In an attempt to

revitali0e it& a ne$ variant $as introduced namely S3?+ S3?+ F/)+5. /his is being served $ithchatpata spice mi) $hich has resulted in increase in the sales of .rench .ries and has elevated it

from to the decline stage" /his is used to delay the decline of a $ell established product $hich

has the potential of generating further revenue"

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McDonalds

ANALYSIS

C;+*)*/5 A85)5

McDonalds has been a leading fast%foods outlet in =ile arle" ut the outlet understudy has

other competitors eating a$ay into its mar#et share" In addition to its traditional rivalsY>.:&

Dominos& i00a ;utYthe firm encounters ne$ challenges" Gumbo >ing competes using a bac#%

to%basics approach of (uic#ly serving up burgers for time%pressed consumers" 9n the higher end&

the >.: has become potent competitor in the (uic# service field& ta#ing a$ay customers from

McDonalds" erhaps in the ne$ environment& fast& convenient service is no longer enough to

distinguish the firm" *t this time& a ne$ critical success factor may be emerging the need to

create a rich& satisfying e)perience for consumers" /his brings us to 5+/:)c+ , +;+/)+c+

'5+, c;+*)*)$hich McDonalds can use for competitive advantage against Gumbo >ing"

>eeping in mind the demographics of the area& McDonalds has Ci%.i enabled the outlet to cater

to the student community" It is for this overall N.ood& .un E .ol#sS e)perience that customers

pay a premium over the other competitors"

C;+*)*) 5 /+,&c+5 ;/,&c* )1+c8c+ ),&c)7 1)/5 * /+:)5+ *3+)/ ;/,&c*5

;/*1)5and to revisit their product mar#et to understand changing needs& e)pectations andperception of different mar#et segments" /he ne$ Mcrea#fast $ould be introduced bet$een 5

to 11 am as a pilot project" /his $ould open up a $hole ne$ revenue stream for McDonalds by

tapping into the student and $or#ing population by providing a healthy and $holesome

brea#fast" /his sho$s ho$ demographic shift can affect the demand for products and services"

McDonalds has anticipated these changes to maintain its competitive edge"

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McDonalds

T6 D)+5) P+/c+;*& M;;)7

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McDonalds

SOT A85)5

T3+ R, A3+,

Entry to Tier 2 and Tier 3 cities /he main target customer for McDonalds is the ne$urban Indian family" Cith the customer demographics constantly changing and tectonic

social and cultural shifts being observed in /ier 2 and /ier 3 cities due to globali0ation&

the company is no$ e)panding to /ier 2 cities li#e une and Gaipur"

Rolling out McBreakfast across all outlets In India& the company has recently

launched its entry into the brea#fast food category" /his is no$ launched on a pilot basis

on select stores" In Mumbai& it available at the =ile arle outlet" /he company vie$s this

category as a #ey gro$th driver in future"

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McDonalds

E3)')*5

1. McDonalds Indian Menu

=egetarian 'on =egetarianMc=eggie :hic#en Maharaja MacMc*loo/i##i Mc:hic#en urger aneer !alsa Crap :hic#en 'uggets!alad !and$ich Crap :hic#en Me)icanotato Cedges .illet%9%.ishi00a Mcuff

Survey uestionnaire

" Chich is your favorite product at McDonaldsT

" Is the product line in McDonalds ade(uateT

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McDonalds

" Chat is the main problem you faced at McDonaldsT

" Chich area do you thin# needs the most improvementT

4A


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McDonalds

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McDonalds

THE NE BREAKFAST MENU STARTED AT SELECT STORES IN MUMBAI.

-


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McDonalds

/he usiness 'eed for McDelivery E #ios#

McDelivery and >ios#s are t$o integral factors in the McDonalds

gro$th model"

-1


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McDonalds

McD6+I=68

NIf you cant come to McDonalds& McDonalds $ill come to you"S

*fter nearly eight years in India& McDonaldFs finally started coming to your doorstep" /he #ey

idea is convenience" Ce are a (uic# service restaurant available at high%traffic locations" ut

there is a large number of people $ho find it difficult to travel" /he #ey is to deliver hot and

fresh food"

Chy McDelivery is an Important usiness modelT

McDelivery is one of the Important usiness models of rand e)tensions "

McDelivery contributes to around A"- H of /otal sales"

/he #ey idea is :onvenience because McDonalds believe in being accessible"

y offering home delivery $e can reach out to the :ustomers and increase our

penetration "

MD! !9I contribution to the store system $ise is 1-"3H" ased on the Data it is presumed that in the :oming days the contribution of McDelivery

$ill be on increasing trend"

:urrent number of MD! !tores O 35

lan by end of 2@ % 45 MD! stores

*nalysis sho$s that the !ales /rend is continuously on increasing /rend"

In 2? 8egridding phase $as done because of $hich /:s for 2? Cere impacted

compared to 2A but no$ again there is an Increasing trend"

In 2A O 2A MD!

In 2? O 34 MD!

In 2@ lan O 45 MD! !tores

In 2@ till date 35 stores

In 2A sales ended O 8s ?&31&@?&3?J%

-2


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McDonalds

In 2? !ales ended O 8s"@&-&?3&A-4J%

!9I :ontribution .igures positive"

Delivery !ales E


54/58

McDonalds

!trategy for 2@

-4


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McDonalds

McD9'*+Ds >I9!>

*t McDonalds $e have made effort to cover every possible area for serving to the :ustomer

needs" *fter serving the meals $e have made >ios# as a means of fulfilling the custom ofsomething s$eet follo$ing the main course"

--


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McDonalds

*s per the *nanlysis the /rend of !ales of >ios# seems to be

9n increasing terms"

In 2A O 14 >ios#s

In 2? O 22 >ios#s

In 2@ PlanQ%2? >ios#s

In 2@P/ill datQ%2- >ios#s

/he :hart belo$ reflects the >I9!> as a strength for the system"

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McDonalds

:9':+U!I9'

*bout - restaurants $ill be added to the 4A already in the India according to =i#rama#shi& managing director of :onnaught la0a 8estaurants& $hich holds the franchise for 'e$

Delhi and the north of the country"ZMcDonaldFs considers :hina and India to be vital for

e)pansion and $ill continue to invest more and more in both these countries&Z Mr a#shi told

loomberg 'e$s" ;e said the e)pansion is e)pected to cost bet$een 1bn and 13bn rupees

P[135%1A5m, 211%2A-mQ" Cestern India $ill get fifteen ne$ outlets over the ne)t 12 months at

a cost of 5m rupees& according to *mit Gatia& managing director of regional franchise holder

;ardcastle restaurants"

I,) 7/6*3

McDonaldFs has invested about Abn rupees in India since it entered the mar#et in 1@@5

and reported gro$th of about 4H" India has a population of over 1 billion and an emerging and

affluent middle class" /he food chain has tailored a number of its products to the Indian mar#et&

including the aneer !alsa Crap& Mc*loo /i##i and the mutton speciality for a country $hich

does not eat beef& the :hic#en Maharaja Mac" ZIn the ne)t t$o years& $e should finally have a

menu that is entirely relevant to the Indian household&Z Mr a#shi said"

.rom the above information it is very clear that Mc Donalds is aggressive about its Indian

operations and this fast food chain is here to stay feeding millions of Indians the Gai ho $ay thin#

global act local"

blackbook project on mcdonalds marketing

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