complete project

A Project ReportOn

Customer Perception Towards Mc Donalds

Submitted in fulfillment For the Award of the Degree of

Bachelors of Business Administration

(2008-2011)

SUBMITTED BY: SUBMITTED TO:

ABHISHEK YADAV

BBA (FACULTY GUIDE)

ENROLLMENT No. - 0851158002

CERTIFICATE

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This is to certify that the project entitled “CUSTOMER PERCEPTION TOWARDS Mc DONALDs” done by Mr. ABHISHEK YADAV Roll No. 0851158002 is an authentic work Carried out by him under my guidance. The matter embodied in this project work has not been submitted earlier for the award of any degree or diploma to the best of my knowledge and belief.

Date:

FACULTY GUIDE

Signature:

Name: Mrs.

ACKNOWLDGEMENT

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With profound sense of gratitude and regard, I express my sincere thanks to my

guide and mentor Mrs. for her valuable guidance and the confidence she instilled

in me, that helped me in the successful completion of this project report. Without

her help, this project would have been a distant affair.

Her thorough understanding of the subject and the professional guidance is

indeed of immense help to me.

Abhishek Yadav

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Mc Donald’s

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Contents(i) Certificate

(ii) Acknowledgement

Chapter1. Introduction to project - Executive summary of the project - ObjectivesChapter2. Industry overview (fast food industries) - Introduction - Trends in industry - Major players Chapter3. Company profile - Introduction - Product profile - Customer satisfaction through marketing strategies (4 P’s) Chapter4. Research methodology - Data collection: +Primary +Secondary - Sample size - Areas covered

Chapter5. Findings & analysis - Findings based on questionnaireChapter6. Conclusions & limitations - General and based on questionnaireChapter7. Suggestion - Sample questionnaire - Bibliography

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Introduction to Project

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Executive SummaryWith the increase in spending capacity of Indian Middle Class Society, the mind

set of consumers have changed in relation to recreational activities.

Everybody wants to spend quality time and is ready to pay for good service

provided.

More frequently people move out to eat and spend time, this has created scope for

many fast food chains. But along with that it has created competition among

different food chains.

Hence each and everyone plays a major role in attracting customers. The trend

can be seen by the increasing number of food chains.

That is why this topic was chosen for further study as this particular industry is

fast becoming very competitive.

This project comprises of the analysis of Indian Fast Food Industry and

competition that is defining the trend, different companies and various players are

analyzed from their competing Strategies, Objectives, Strengths and Weakness.

The companies that have been analyzed in this project are:

- Nirula’s

- Pizza hut

- Mc Donalds

- Haldiram’s

Further the study conducts a comprehensive study on one of the major players in

the food services industry, which was McDonalds, the research tries to develop a

case study which studies McDonalds and its business process very closely with a

greater emphasis on major activities which it carries out in India, and tries to give

a learning for its Indian counter parts. In addition to this a consumer research

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was undertaken with the objective of assessing the service quality of McDonalds

on the basis of:

Tangibles

Reliability

Empathy

Responsiveness

Assurance

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Objectives of the study

To do customer’s value analysis which includes identifying the major

attributes that customers value in a fast food chain restaurant, assessing the

quality of the different attributes.

To shed light on different aspects that a service based food chain must

follow in order to increase its market share and for being on a continuous

growth stream.

To identify different activities that an aggressive company like McDonald’s

follow in order to establish itself in a local market and increasing sales by

being in customer’s mind and heart.

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IndustryOverview

(Fast Food Industries)

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IntroductionThe 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.

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

- Some feel that pricing is not the deciding factor since fast food is not price

sensitive market because it is not a single diet of Indians.

- Some others are competing on positioning which is surprisingly varied, giving

the small size of the market.

- For most, targeting children seems the right strategy.

- 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.

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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.

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.

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Percentage of adult population eating at takeaway restaurants at least once every

week:

Hong Kong 61 %Malaysia 59 %Philippines 54 %Singapore 50 %Thailand 44 %China 41 %India 37 %Europe 11 %

Type of cuisine, price and convenient location were found to be the most

important criteria across all three regions

Among the international fast food chains and local operators, McDonald’s

emerges as the most popular of all takeaway options with 54% of Americans,

75% of Europeans and 64% of Asians.

McDonald’s is most visited in Australia (84%)

KFC is most visited in China (42%)

Pizza hut is most visited in India (22%)

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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 parlours, 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.

The restaurants serves a wide variety of multi-cuisine foods, both western and

Indian including pizzas, burgers, chana kulcha, saag-roti and much more!

Ice cream parlours offers an extensive range of exciting and innovative ice cream

flavors with one new flavor added every month

Nirula’s pastry shops are a one-stop shop for bakery and confectionary items.

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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 where 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..

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4. Haldiram’s

Haldiram began in 1937as a small sweet shop in Bikaner, in Rajasthan state of

India.

In 2001 the turnover of haldiram’s was Rs. 4 billion. The group has presence not

only in India but in several countries all over world.

Till early 1990s, Haldiram comprised of three units- Kolkata, Nagpur and New

Delhi.

Haldiram has many ‘firsts’ to its credit- It was first company to brand namkeens.

And first company to offer traditional Indian items like ‘panipuri’, ‘chatpapri’

and so on.

The company faced tough competition not only from sweets and snack food

vendors in unorganized, domestic and international competitors but also from its

own units because of conflict between them.

At Haldiram’s quality is the obsession and this spirit has given its competitors a

cutting edge. Haldiram offers a very wide range of delicacies like- Namkeens,

Sweets, Syrups, Papads, North Indian dishes, South Indian dishes, Pastries.

Sweets itself has a very wide variety Bengali sweets include Sandesh and

Rasgullas.

Other popular Indian sweets are:- Kheer, Halwa, Gulabjamun, Rasmalai and

Kulfi.

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Company profile

McDonalds India

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IntroductionMcDonald’s in India is a 50-50 joint venture partnership between McDonald’s Corporation [USA] and two Indian businessmen. Amit Jatia’s company Hardcastle Restaurants Pvt. Ltd. owns and operates McDonald's restaurants in Western India. While Connaught Plaza Restaurants Pvt. Ltd headed by Vikram Bakshi owns and operates the Northern operations.

Amit Jatia and Vikram Bakshi are like-minded visionaries who share McDonald's complete commitment to Quality, Service, Cleanliness and Value (QSC&V). Having signed their joint-venture agreements with McDonald's in April 1995, they trained extensively, along with their Indian management team, in McDonald's restaurants in Indonesia and the U.S.A. before opening the first McDonald’s restaurant in India.

Mc Donald’s international through its wholly owned subsidiary mc Donald’s India entered into two JVs, one with connaught plaza restaurants pvt. Ltd. In the northern & eastern region and another with hard castle restaurants pvt. Ltd. In the western & southern region.

As a leader in QSR (Quick Service Restaurant) segment McDonalds has pioneered various industry benchmark practices over the past decade of serving Indian customers, including new concepts such as

# Oil alliances in India by linking with petroleum giants BPCL and HPCL. Three such alliances with BPCL outlets are in Mathura (2000) (up), Doraha (2002) (Punjab) and Chanakyapuri (new delhi-2005)# Novel menu formats such as an Express model with a limited menu and kiosks with a variety of dessert offerings# Home delivery (Mcdelivery™ -2004); providing even more convenience to our customers. In 2006, Mcdelivery on bicycle at chandni chowk and 2007 all India single delivery number were introduced.

Restaurant count

McDonald’s has 122 restaurants in India of which 72 are in north & east India and 50 in west & south India .

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McDonald’s India….. Culturally sensitive

McDonald's in India is a locally owned and managed company run by Indians, employing local staff, procures from local suppliers to serve its customers. McDonald's India opened its first family restaurant at Basant Lok in Oct, 1996; today it has 122 Restaurants across India. This vibrant decade has seen McDonald's evolve Indian menus, Indian sensitivities and yet remain as globally innovative as ever. This journey has seen McDonald's develop a rich brand identity amongst its customers and employees as well as partners alike.

At McDonald’s India we have had a single mantra: providing 100% total customer satisfaction and the formula for achieving this goal in our restaurant operation is the long-standing commitment to the McDonald’s Promise.

McDonald’s worldwide is well known for the high degree of respect for the local customs and culture. McDonald’s has developed a menu especially for India with vegetarian selections to suit Indian tastes and preferences. Keeping in line with this, McDonalds does not offer any beef or pork items in India.

McDonald's India has developed a special menu with vegetarian selections to suit Indian tastes and preferences. McDonald's does not offer any beef or pork items in India. Only the freshest chicken, fish and vegetable products find their way into our Indian restaurants.In addition, we've re-formulated some of our products using spices favoured by Indians. Among these are McVeggie™ burger, McAloo Tikki™ burger, Veg. Pizza McPuff™ and Chicken McGrill™ burger. We've also created eggless sandwich sauces for our vegetarian customers. Even our soft serves and McShakes™ are egg-less, offering a larger variety to our vegetarian consumer

Stringent cleaning standards ensure that all tables, chairs, highchairs and trays are sanitised several times each hour. Such meticulous attention to cleanliness extends beyond the lobby and kitchen to even the pavement and immediate areas outside the restaurant.

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The McDonald's Promise

McDonald’s global

# McDonald’s has over 30,000 local restaurants in more than 120 countries

70 percent of our restaurants worldwide are owned and operated by

independent, local businessmen and businesswomen

# McDonald’s serves nearly 90 million customers each day

# McDonald’s first franchised restaurant opened at Des Plaines, Illinois in

1955 by the founder Ray Kroc

# McDonald’s has its own Hamburger University in Illinois, and the first

batch graduated in 1961

# 12 classes offered at Hamburger University are college accredited

# In 1963, McDonald’s sold its one billionth hamburger

# McDonald’s is listed on the New York, Frankfurt, Munich, Paris and

Tokyo stock exchanges

# McDonald’s aired its first network TV advertisement “McDonald’s -

Where Quality Starts Fresh Everyday”, in 1965

# The first McDonald’s Drive-Thru opened in Sierra Vista, Arizona in 1975

# McDonald’s launched the new worldwide Balanced Active Lifestyles

public awareness campaign in 2005

# McDonald’s celebrated its 50th Anniversary on April 15, 2005

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Product Profile

Vegetarian menu

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Vegetarian ingredients

Vegetables- We use freshly shredded lettuce, onions and tomatoes in our restaurants. All our vegetable products are processed from high quality graded vegetables in a 100% dedicated vegetarian plant.

Potatoes - McDonald's world-famous French Fries and our 'chatpatey' Potato Wedges are produced only from the best quality potatoes. These potatoes are cut, blanched and processed on state-of-the-art processing lines to ensure maximum retention of nutrients. Our French Fries and Potato Wedges are cooked at the plant and our restaurants in 100% vegetable cooking oil.

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McVeggie™

Breaded fried vegetable patty consist of peas, carrots, green, beans, red capsicum, potatoes, onions, rice and seasoning. The burger also includes lettuce, eggless mayonnaise in a toasted sesame seed bun.

Nutrition at glance

Serving sizein gms

Proteinin gms / serve

Carb.in gms / serve

Fatin gms / serve

172 8 60 25

Caloriesin kCal / serve

Protein% Carb% Fat %

491 4 35 14

McAloo Tikki™

Fried breaded potato & peas patty that is flavoured with a special spice mix, fresh tomato slices, onion, and veg. tomato mayonnaise between toasted buns.

Nutrition at glance

Serving sizein gms


Carb.in gms / serve

Fatin gms / serve

150 6 53 15



367 4 35 10

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Paneer Salsa Wrap™

A traditional Mexican soft flat bread that envelops crispy golden brown cottage cheese encrusted with a Mexican Cajun coating, and a salad mix of iceberg lettuce, carrot, red cabbage and celery, served with eggless mayonnaise, tangy Mexican Salsa sauce and cheddar cheese.

Nutrition at glance

Serving sizein gms


Carb.in gms / serve

Fatin gms / serve

194 16 39 27



463 8 20 14

Crispy Chinese

A crispy patty that is seasoned with oriental flavours, topped with a creamy vegetarian Schezwan sauce and crunchy iceberg lettuce and served between two fresh buns.

Nutrition at glance

Serving sizein gms


Carb.in gms / serve

Fatin gms / serve

144 7 50 19



400 5 34 13

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Veg McCurry Pan™[Brocolli ‘n’ Mushroom]

A rich Béchamel eggless sauce mixed with exotic vegetables like broccoli, baby corn, mushrooms, red capsicum and freshly baked on rectangular spiced bread with a cheese topping.

Nutrition at glance

Serving sizein gms


Carb.in gms / serve

Fatin gms / serve

190 18 48 11



365 10 25 6

Pizza McPuff™

Mixed vegetables (carrot, beans, capsicum, onion and green peas), mozzarella cheese mixed with tomato sauce and spice blend coated with a savoury dough.

Nutrition at glance

Serving sizein gms


Carb.in gms / serve

Fatin gms / serve

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80 4 26 14



245 5 33 17

Non-Vegetarian menu

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ChickenMaharaja Mac™

2 Grilled chicken patties with a smoke-flavoured mayonnaise, fresh onions, tomatoes, processed cheddar cheese in a toasted sesame seeded bun.

Nutrition at glance

Serving sizein gms


Carb.in gms / serve

Fatin gms / serve

255 32 54 26



573 12 21 10

Filet-O-Fish™

Fried, breaded fillet of fish, with a half slice of processed cheddar cheese, special tartar sauce served between steamed buns.

Nutrition at glance

Serving sizein gms


Carb.in gms / serve

Fatin gms / serve

145 13 49 23



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Chicken Mexican Wrap™

A traditional Mexican soft flat bread that envelops crispy golden brown chicken encrusted with a Mexican Cajun coating, and a salad mix of iceberg lettuce, carrot, red cabbage and celery, served with eggless mayonnaise, tangy Mexican Salsa sauce and cheddar cheese.

Nutrition at glance

Serving sizein gms


Carb.in gms / serve

Fatin gms / serve

192 14 37 21



392 7 19 11

Chicken McGrill™

Grilled chicken patty flavoured with mint mayonnaise, and dressed with fresh onions and tomatoes in a toasted bun.

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Nutrition at glance

Serving sizein gms


Carb.in gms / serve

Fatin gms / serve

140 16 35 12



309 11 25 8

BeveragesCappucino, Café Mocha, Plain Tea,

Cardamom Tea, Hot Chocolate Nutrition at glance

Type(Quantity)

Serving size

in gms

Proteinin

gms / serve

Caloriesin

kCal / serve

Protein%

Carb.

in gms / serve

Fatin

gms /

serve

Carb%Fat %

Cappuccino 150 4 4 2 50 3 3 1

Café Mocha

150 4 4 2 47 3 3 1

Plain Tea 150 2 8 1 46 1 5 0

Cardamom Tea

150 2 8 1 47 1 5 0

Hot Chocolate

150 4 17 1 90 3 11 0

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Desserts

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Customer SatisfactionThrough

4 P’sOf

Marketing Mix

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Marketing MixMarketing Mix refers to the ingredients or the tools or the variable which the

marketer mixes in order to interact with a particular market

“Marketing Mix is a set of marketing tools that the firm uses to pursue its

marketing objectives in the target market”

- Kotler

Marketing mix is a term used to describe the combination o the four inputs which

constitute the core of a company’s marketing system: the product; the price

structure; the promotional activities, and the distribution system.

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Marketing mix represents the total marketing programme of a firm. It

involves decisions with regard to product, price, place and promotion. Marketing

mix is a blending of decisions in the ‘4 Ps’.Four major ingredients of marketing

mix are:

1. Product A product is any good or service that consumers want. It is a bundle of utilities or

a cluster of tangible and intangible attributes. Product component of the

marketing mix involves planning, developing and producing the right type of

products and services. It deals with the dimensions of product line, durability and

other qualities. The total product should be such that it really satisfies the needs

of the target market. In short, product mix requires decisions with regard to

(a) Size and weight of the product (b) Quality of the product (c) Design of the

product

(d) Volume of output (e) Brand name (f) Packaging (g) Product range (h)

Product testing

2. Price

Price is an important factor affecting the success of a firm. Pricing decisions and

policies have a direct influence on sales volume and profits of business. Price is,

therefore, an important element in the marketing mix. In practice, it is very

difficult to fix the right price. Right price can be determined through pricing

research and test marketing. A lot of exercise and innovation is req. to determine

the price that will enable the firm to sell its products successfully. Demand, cost,

competition, govt. regulation, etc. are the vital factors that must be taken into

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consideration in the determination of the price. Price mix involves decisions

regarding base price, discounts, allowances, fright payment, credit, etc.

3. Promotion

Promotion component o the marketing mix is concerned with bringing products

to the knowledge of customers and persuading them to buy. It is the function of

informing and influencing the customer. Promotion mix involves decisions with

respect to advertising, personal selling and sales promotion. All these techniques

help to promote the sale of products and to fight the competition in the market.

No single method of promotion is effective alone and, therefore, a

promotional campaign usually involves a combination of two or more

promotional methods. Growing competition and widening market have made

simultaneous use of more than one promotional method all the more necessary.

4. Place (Distribution)

This element of marketing mix involves a choice of the place where the products

are to be displayed and made available to the customers. It is concerned with

decisions relating to the wholesale and retail outlets or channels of distribution.

The objective of selecting and managing trade channels is to provide the products

to the right customer at the right time and place on a continuing basis. In deciding

where and through whom to sell, management should consider where the

customer wants the goods to be available. A manufacturer may distribute his

goods through his own outlets or he may employ wholesalers and retailers for

this purpose. Irrespective of the channel used management must continuously

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evaluate channel performance and make changes whenever performance falls

short of expected targets. In addition, management must develop a physical

distribution system for handling and transporting the products through the

selected channels. In the determination of distribution mix or marketing logistics,

a firm has to make decision with regard to the mode of transporting of goods to

middle-men, use of company vehicles or both.

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Product Mix (McDonald’s Product Mix)

As explained earlier Product mix deals with the dimensions of product line,

quality and design of the product, its packaging, brand name, product range, etc.

In this section we will study the product mix of McDonald’s

Product line of McDonalds includes the products offered for sale, i.e. the range of

food products offered to the customers.

The product breadth or number of products offered by McDonalds can be

classified as:

Vegetarian products

Non vegetarian products

Beverages

Desserts

Add-ons

Vegetarian products include: Non-Vegetarian products include:

McVeggie Chicken Maharaja MacMcAloo tikki McChickenPaneer Salsa wrap Filet-o-fishCrispy Chinese Chicken Mexican wrapVeg McCurry pan Chicken McGrillPizza McPuff Chicken McCurry pan

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Beverages Desserts Add-ons

Cold coffee Soft serve cone FriesHot serves McSwirl Potato WedgesMcShakes Soft serves Soft drinks Flavour burstsIce tea Floats

All this shows the wide product range of McDonald’s. Besides that the quality of

McDonald’s, according to the survey and general findings, is consistent

throughout the life of the product.

quest.

Nothing but the Best

That's how we plan our product range. Food quality is key at McDonald's. That's

why we take pride in the foods we serve you and your family. We seek out fresh

lettuce and tomatoes, quality buns and potatoes, select poultry and fish and

wholesome dairy products. Despite extensive and meticulous quality tests at the

supplier end, all products are once again carefully scrutinized at the restaurant.

Our immaculate standards of quality allow for nothing but the best to reach your

tray.

Cold Chain

The term Cold Chain describes the network for the procurement, warehousing,

transportation and retailing of food products under controlled temperatures.

McDonald’s restaurants store products to be used on a daily basis, within a

temperature range of 18ºC to 4ºC. About 52% of our food products need to be

stored under these conditions before they are used

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Product strategies:

In order to achieve the desired rate of profits and growth, a firm has to

continuously adjust its products and product mix to the changing needs and

targets of the market.

This matching of products to the requirements of competitionand buyers is

known as product strategy.

Some of the important product strategies, which firms adopt,

are as follows:

1) Limited Line Strategy:

This refers to the offering of one product or a small number of products to

cater specific market. The main benefit of this strategy is low cost of

operations. However, it cannot meet the requirements of different types of

customers in different markets.

2) Full Line Strategy:

This ids also known as broad line strategy, it implies the offering of a large

number of products to meet the requirements of different customers in different

markets.

3) Trading up and trading down:

These are alternate or opposite strategies for expanding the product mix.

Trading up implies addition of some higher priced products to the existing

product line of lowered priced products for improving the sales of old products.

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Price MixPrice and Pricing strategies:

Price is the key element of marketing mix because it relates directly to the

generation of total revenue. The term pricing policy refers to a systematic

approach to pricing of different products in different markets to evolve an

appropriate pattern of prices in the long run. It is the plan defining the initial price

range and the planned price movements through time that the firm will use to

achieve its marketing objectives. Pricing policy includes not only the

determination of base prices but also the terms and conditions of sale.

Company Pricing policies:

The price must be consistent with company pricing policies. Many companies set

up a pricing department to develop policies. Now a days most companies follows

buyer based pricing. They are basing their prices on the product’s perceived

value. They see buyers’ perception of value, not the seller’s cost, as the key to

pricing.The company using perceived-value pricing must establish the value in

the buyers’ mind concerning different competitive offers. McDonald began with

skimming prices initially and to reduce the price gradually as competitors enter

the market.The initial high price serves to skim the cream of the market, that is ,

relatively insensitive to price. This approach to pricing is, in effect, an

experimental search for the right price and it may result in a market-determined

price. This method starts with a high price and moves the price downward by

steps until the right price is reached.Initially McDonalds charged high price than

what is being charged now.But now it introduces new schemes for value of

money.

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Place Mix

(Distribution)This element of marketing mix involves a choice of the place where the products

are to be displayed and made available to the customers. It is concerned with

decisions relating to the wholesale and retail outlets or channels of distribution.

The objective of selecting and managing trade channels is to provide the products

to the right customer at the right time and place on a continuing basis.

McDonalds distribution centres are wide, located in every area of India

McDonalds has Dine-in restaurant, Drive-Thru, McDelivery.

McDonald’s has 122 restaurants in India of which 72 are in north & east India

and 50 in west & south India

72 restaurants in North & East India: with

32 in Delhi

20 in Uttar Pradesh – Noida (4), Ghaziabad (4), Mathura (1) (Highway and

Drive Thru), Kanpur (2), Meerut (1), Lucknow (4), Agra (1), Allahabad

(1), Varanasi (2)

10 in Haryana - Faridabad (3), Manesar (1) (Highway and Drive - Thru),

Gurgaon (4), Karnal (1) (Highway and Drive - Thru), Panipat (1)

5 in Punjab - Chandigarh (1), Ludhiana (1), Doraha (1) (Highway and

Drive - Thru), Jalandhar (1), Patarsi (1) (Highway and Drive - Thru)

2 in Rajasthan - Jaipur (2)

1 in Uttaranchal - Dehradun (1)

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1 in West Bengal – Kolkata (1)

1 in Himachal Pradesh- Jabli (1).

50 restaurants in West & South India:

30 in Maharashtra – Mumbai (22), Pune (7), Nasik (1)

7 in Gujarat – Ahmedabad (4), Vadodara (2), Surat (1)

6 in Karnataka – Bangalore(6)

4 in Andhra Pradesh – Hyderabad (4)

3 in Madhya Pradesh – Indore (3)

For the Big Mac, the current calendar year will be the biggest in terms of

restaurant openings, and by year-end, 50 new restaurants would be in place,

informs Vikram Bakshi, Managing Director, McDonald's India

Promotion MixPromotion is a process of communication with the potential buyers involving

information, persuasion and influence. It includes all types of personal or

impersonal communication with customers and intermediaries.

Promotion mix refers to the combination o various promotional tools usd by a

business firm to create, maintain and increase demand. It involves an appropriate

integration of advertising, personal selling, sales promotion and publicity.

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Advertising:

Advertising is any paid form of non-personal presentation and promotion of

goods, services or ideas.

The past four years have seen very high trials from first-time customers -

averaging 77-80 per cent. Now we are moving away from inducing trials, and

striving for repeat customers," informs Bakshi. Which explains the chain's new

advertising tack. For the first time since it began advertising on Indian television

channels, McDonald's has changed its ad line. It is now `To aaj McDonald's ho

jaaye,' against the earlier `McDonald's mein hai kuch baat ' . Therefore, the happy

family scenario, complete with goofy dad and adorable kid. While more

commercials could follow later this year, the theme will be the same. The

objective will be to continue to position McDonald's as a comfort zone for young

families. McDonald's ad account too continues to remain with Mudra.

Sales promotion

Sales promotion includes all those short-term marketing activities, other than

personnel selling and advertising and publicity, that stimulate customer

purchasing and dealer effectiveness.

The main objective of sales promotion is to attract the prospective buyer toward

the product, and induce him to but the product at the point of purchase.

43

The importance of sales promotion in modern marketing has increased mainly on

account of its ability in promoting sales and preparing the ground for future

expansion.

Promotional measures by McDonald’s

A Kids Carnival promotion with Luxor Pens and L'il Tomatoes (a kids' garments'

marketer) is scheduled to take off early next month. The current fiscal's

advertising and promotional budget has been fixed at Rs 18 crore.

McDonald’s continually review and improve its menu offerings to make sure that

not only they meet customers’ expectations, but also exceed them. As a result,

they have introduced a series of ongoing value options to suit their customers’

different needs.

Value Meal

Value Meals consist of a burger, fries and a drink and are available in 3 sizes:

Small, Medium and Large.

Small Value Meal

Burger+

Potato Wedges+

Small Drink*

Medium Value Meal

Burger+

Medium Fries+

Medium Drink*

Large Value Meal

Burger+

Large Fries+

Large Drink*

44

*A Drink includes Coke™, Fanta™, Sprite™.

You can also substitute the drink in your Value Meal with a McShake™, Coffee,

Tea, Hot Chocolate, Vanilla Coke™, Ice Tea or Cold Coffee by paying the

difference. For more details please speak to the counter person at the restaurant.

Happy Meal™

A Happy Meal™ consists of a burger + small drink + toy. You can also substitute

the small drink in the Happy Meal™ with a small McShake by paying the

difference. For more details, please contact our managers.

45

Research Methodology

DATA COLLECTION TOOLS AND TECHNIQUES

For the completion of our project both primary and secondary data

is used.

Secondary data is used only to know about the organization.

46

COLLECTION OF SECONDARY DATA:

1. Internet: The websites of the companies was visited to collect

detailed information about them and the different strategies

adapted by it.

2. Books: For the conceptual background of the faculty satisfaction

certain books of Human Resource were referred.

Primary data is collected with the help of-

Questionnaires and Interviews

COLLECTION OF PRIMARY DATA:

1. Questionnaire: The questionnaire, the tool for collecting

primary data, was used for gathering information from the people

employed in retail store. It includes both type of question, i.e open

ended and closed ended. The closed ended question consisted of

multiple choice questions.

SAMPLING PLAN

1) Sampling Unit: Who is to be surveyed?

Urban Consumers

2) Sample Size: How many people to be surveyed?

50 People

3) Sampling Procedure

47

Random Sampling Technique

We have taken sample from following areas:

New Delhi

48

Findingsand

Analysis

Findings based on Questionnaire

Question1. How frequently do you visit McDonalds?

Once a week More than once a week Once a fortnight Once a month Less than once a month

49

population

0

5

10

15

20

25

30

once aweek

more thanonce aweek

once afortnight

once amonth

less thanonce amonth

population

58

25

75

Out of the sample of 50, following results were obtained:

25 informants said that they visit McDonalds once in a fortnight. This

section of people is 50% of the total sample.

8 informants said that they visit more than once in a week i.e. 16% of the

people surveyed.

7 said that they visit once in a month. They are 14% of the people

surveyed.

5 persons each said that they visit once a week and less than once a month

respectively.

Question2. Restaurants preferred by customers RestaurantPreferred

No. of persons

McDonalds 17Pizza hut 15Domino’s 10KFC 3

50

17

15

10

3

5

0 5 10 15 20

McDonalds

Pizza hut

Domino’s

KFC

Nirula’sR e

sta u

ra n

ts

p

re

fe

rre d

no. of persons

Nirula’s 5

17 out of 50 persons surveyed preferred McDonalds over any other

restaurant, i.e. 34%.

15 persons preferred Pizza hut, i.e. 30%.

10 persons preferred Domino’s, i.e. 20%

3 persons preferred KFC, i.e. 6%

5 persons preferred Nirula’s, i.e. 10%

This survey conveys that there is a tough competition between McDonalds, Pizza

hut and Domino’s.

Question3. Rate McDonalds on the following attribute scale:

Attribute V-Good

Good Above Avg. Average

Poor

Taste of food 30 12 5 2 1Variety of food 20 25 3 1 1General hygiene 25 19 4 2 0Ambience/Décor 9 12 21 5 3

51

Value for money 6 24 15 4 1Friendliness of peers 9 20 15 4 2Promptness of delivery

15 20 10 2 3

Question4. Is McDonalds ambience comfortable and well provided?

Views No. of persons

Strongly Disagree 1Disagree 1Neither agree 7Agree 38Strongly Agree 3

05

101520253035

V-Good

Good

Above Avg.

Average

Poor

52

Regarding the comfort ability of McDonalds, 38 persons out of 50 surveyed

agreed that its ambience is comfortable.

7 persons neither agree nor disagree.

3 persons strongly agreed.

1 person each disagreed.

Question5. Does McDonalds maintains consistency in its taste and quality?


Yes 43No 7

No. of persons

05

1015202530354045

StronglyDisagree

Disagree Neitheragree

Agree StronglyAgree

No. of persons

53

This question shows whether McDonald maintains consistency in taste and

quality of its food products.

86% of the persons surveyed agreed that McDonald maintains consistency in its

taste and quality while 14% disagreed.

No. of persons

Yes86%

No14%

54

Question6. Are you satisfied with the prices charged by McDonalds?


Very satisfied 9Satisfied 35Not satisfied 6

This question deals with the pricing of McDonalds’ food products.

Out of 50 persons surveyed, 35 are satisfied with the prices charged, 9 are very

satisfied and 6 are not satisfied.

0009

35

6

1

2

3

4

5

55

Question7. Do you find the promotional measures adopted by McDonalds effective?


Very effective 7effective 27Not effective 16

This question deals with whether the promotional measures adopted by

McDonalds are effective or not.

Out of 50 persons surveyed 7 persons find it very effective, 27 persons found it

effective while 16 persons doesn’t find it effective.

No. of persons

0

5

10

15

20

25

30

Very effective Effective Not effective

No. of persons

56

Question8. What recommendations do you wish to suggest to McDonalds..

Recommendations No. of persons

Include more variety 32Reduce prices 6Better advertising and promotion 5Improve quality 7

This question gives out the suggestions to increase its sales.

Out of 50 persons surveyed 32 persons suggested that McDonalds must include

more variety, 6 persons suggested to reduce prices, 5 suggested to adopt better

advertising and promotion measures and 7 suggested to improve quality.

0000

326

5

7

1

2

3

4

5

57

Question9. How would you describe your eating experience at McDonalds?

Excellent 4Very good 17 Good 25Poor 4

This question describes the eating experience at McDonalds.

Out of 50 persons surveyed 4 describe their eating experience as excellent, 17 as

very good, 25 as good and 4 as poor.

0

5

10

15

20

25

Excellent Very good Poor Good

No. of persons

No. of persons

58

ConclusionsGoing through the analysis of response from the survey conducted, it is

concluded that McDonalds is able to be and retain at top among all the fast food

chains like Nirula’s, Subway and Wimpy. McDonalds is also preferred over Pizza

hut, Domino’s and KFC. McDonalds’s is providing its customers good quality

food products.Though not wide but its product line is quite impressive. It

includes meals for both Vegetarian and Non-Vegetarian and satisfies both section

of customers. McDonalds is also providing its customers a well provided and

comfortable ambience. It has been rated as ‘very good’ by its customers in terms

of Taste and Variety of food and promptness of delivery. McDonalds maintains

its consistency in taste and quality. Customers are also satisfied with its prices

and promotional and advertising activities. Prices are affordable by all and

McDonalds also satisfies its customers by continuously introducing value for

money offers.

Summarising all points we conclude that McDonalds is growing fastly by

satisfying its customers by providing quality and maintaining consistency.

59

Limitations of the studySince the road to improvement is never ending, so this study also suffers from

certain limitations. Some of them are as follows:

Scope of project is limited in the sense that only McDonalds has been taken

for consumer research.

The extent of the survey was Faridabad and New Delhi only. So the

suggestions or arguments given in the report may not hold true for other

locations in India.

Questionnaire method involves some uncertainty of response. Co-operation

on the part of informants, in some cases, was difficult to presume.

Because of time constraints and reserve constraints, a mix of convenient

sampling and judgement sampling was used.

Because of the Time constraint, the sample size chosen for the survey was

50 people.

It is possible that the information supplied by the informants may be

incorrect. So, the study may lack accuracy.

60

SuggestionsThe suggestions to McDonalds are as follows:-

Maintain consistency in the taste and quality of products.

Include more items in its product line like pizzas for example.

Include more promotional and advertising measures to increase its

sales or to increase its market share.

61

Sample Questionnaire

Q1. How frequently do you visit McDonalds?

Once a week More than once a week Once a fortnight Once a month Less than once a month

Q2. Name some of the fast food chains that come to your mind?

a. _________________________b. _________________________c. _________________________d. _________________________e. _________________________

Q3. Rank the attributes for McDonalds which are key to a fast food restaurant? 1- most important 9- least important

Attributes Rank Attributes RankTaste of food Value for money

(promotional schemes)Variety of food Friendliness of peersGeneral hygiene Promptness of deliveryAmbience/ Décor

Q4. Is McDonalds ambience comfortable and well provided?

Strongly Disagree Disagree Neither agree AgreeStrongly Agree Q5. Does McDonalds maintains consistency in its taste and quality?

Yes No

62

Q6 Are you satisfied with the prices charged by McDonalds?

Very satisfied Satisfied Not Satisfied

Q7 Do you find the promotional measures adopted by McDonalds effective?

Very effective Effective Not effective

Q8 What recommendations do you wish to suggest to McDonalds..

Include more variety Reduce prices

Better advertising and promotion Improve quality

Q9 How would you describe your eating experience at McDonalds?

Excellent Very good Good Poor

63

BibliographyBooks referred

- Kotler P. (2004) ‘Marketing Management: Analysis, Planning,

Implementation & Control’, Prentice Hall of India, New Delhi

- Gupta C.B. (2009), ‘Marketing management’ Paperback ,

New Delhi

Websites referred

- www.wikipedia.com

- www.mcdonalds.com

- www.mcdonaldsindia.com

- Websites of different fast food restaurants

- www.google.com

64

http://www.mcdonalds.com/

http://www.wikipedia.com/

complete project

Documents

different food chains

food sector

terms of food

introductionthe food

food services industry

fast food chain restaurant

project report

project work