mcdonalds marketing strategies

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1. INTRODUCTION OF MARKETING STRATEGY

2. Marketing strategy is very much important for developing any of thebusiness. Without

it, the effort of the business to attract customer israndom and very inefficient. The main

focus of your strategy must makesure that your product should fulfill the demands of

the consumers and aswell as it maintains the long-term relationship with those

consumers. Toachieve this, you will have to initiate flexible strategy that responds

tochange in customer demand and perception. It may also give brand nameto your

product which will help you to run your business in new marketssmooth and efficient

manner. First of all the main purpose of yourmarketing strategy should be to identify

the weather the target customer¶sare satisfied with your product and services of your

business.Once you have created and implemented your strategy, try to identify thefeed

from you customer and if any changes or improvement is requiredapply it for the

maximum satisfaction of customersThis helps you to identify that, where your strategy

needs to be improvedand how it can be developed, so that it can be implemented for

effectiveaction. Before applying any strategy in the business proper planningprograms

must be organized within the members of the organization. WHAT IS MARKETING?

³Marketing is the activity, set of institutions, and processes for creating,communicating,

delivering, and exchanging offerings that have value forcustomers, clients, partners, and

society at large." Marketing 1|P a ge

2. From the above definition we are able to understand that a successfulmarketing deals with

satisfaction of both the parties. The definitionbasically explains that there is a simple process

i.e. is ³selling somethingto somebody´ however, the definition conveys that an exchange of

goodsand services without any barter system and having common currencies,that exchange is

called a sale. So while achieving the goals of themarketing by selling, it is not compulsory that

both the parties shouldagreed upon the transaction. Satisfaction of both parties is a hided in

theexchange relationship. Marketing must understand the ³product, ideasand services´ along

with the "Needs & Wants" of the consumers.Marketing must not only understand this equation

but also establish thepolicy to maintain balance between both the sides, by

implementing³marketing strategy´. MEANING OF MARKETING STRATEGYA Marketing strategy

defines and describes the objectives or planningthrough which you are going to satisfy your

consumer needs in theselected target market. It does not involve written work but, it

includescommunication between different departments of the business enterprisefor example:

sales department, managers, executives etc.In fact it is a set of strategies that implied by the

organization in order toincrease the growth and development of the business. Normally

strategydeals with the manner in which your organization plan to achieve theconsumer

satisfaction and maximize the profit. DEFINITION OF MARKETING STRATEGY y ³Marketing

Strategy is a set of specific ideas and actions that outline and guide decisions on the best or

chosen way to create, distribute, promote, and price a product or service (manage the

marketing mix variables).´ 2|P a ge

3. y ³A marketing strategy is a process that can allow an organization to concentrate its limited

resources on the greatest opportunities to increase sales and achieve a sustainable competitive

advantage.´Marketing strategy is a process that can allow an organization toconcentrate its

limited resources on the greatest opportunities to increasesales and achieve a sustainable

competitive advantage. A marketingstrategy should be centered on the key concept that

customer satisfactionis the main goal.Business Advantagesy identifies needs and wants of

consumersy determines demand for producty aids in design of products that fulfill consumers

needsy outlines measures for generating the cash for daily operation, to repay debts and to

turn a profity identifies competitors and analyzes your products or firms competitive

advantagey identifies new product areasy identifies new and/or potential customersy allows for

test to see if strategies are giving the desired resultsBusiness Disadvantagesy identifies

weaknesses in your business skillsy leads to faulty marketing decisions based on improperly

analyzed datay identifies weaknesses in your overall business plan 3|P a ge

4. ´Marketing strategies of McDonald¶s´ACTUAL FACTS ABOUT MCDONALDS COFFEE CASE 4|P

a ge

5. On February 1992 the headlines of news paper hits with a McDonaldscoffee case news. The

case was about Stella Lie beck of Albuquerque,New Mexico, was in the passenger seat of her

grandsons car when shewas severely burned by McDonalds coffee in February 1992. Lie

beckwas 79 at the time, ordered coffee that was served in a Styrofoam cup atthe drive through

window of a local McDonalds. After receiving the order,the grandson pulled his car forward and

Stopped momentarily so that Liebeck could add cream and sugar to her Coffee. Lie beck placed

the cupbetween her knees and attempted to remove the plastic lid from the cup.As she

removed the lid, the entire contents of the cup spilled into her lap.The sweatpants she was

wearing had absorbed the coffee and held itnext to her skin. A surgeon determined that Lie

beck suffered fullThickness burns over 6% of her body, Including her inner thighs,perineum,

buttocks, and genital and groin areas. She was hospitalizedfor eight days, during which time she

underwent skin grafting. Lie beck,who also underwent debridement treatments, sought to

settle her claimfor $20,000, but McDonalds refused.Till today no one knows about their final

ending of the case. The partieseventually entered into a secret settlement which has never

beenrevealed to the public. HISTORY OF MCDONALD¶SThe story of McDonald¶s was started

in1940, as a fast food restaurant bytwo brothers¶ named Richard and Maurice McDonald in

San Bernardino,California in US. The name of restaurant was McDonald¶s Hamburgers, 5|P a

ge

6. by mid-1950s their restaurant revenue had reached $350000.RaymondKroc, the distributor

for milk shake machines expressed interest in theirbusiness and finalized the deal for

franchising with both the brother¶s. Heestablished a franchising company called McDonald

systemincorporation. In 1955 he became the founder of McDonald¶s and boughtout the

McDonald brothers share for $2.7 million and changed the nameof the company to

McDonald¶s corporation. Kroc proved himself as apioneer who revolutionized the American

restaurant industry. TodayMcDonald¶s is the California world¶s largest fast food chain serving

47million customers daily. McDonald¶s is now one of the most valuablebrands globally, worth

more than $25 billion. Though the company hasroots in the US, McDonald¶s today has become

an ACCEPTED CITIZENOF THE WORLD. MCDONALD¶S STARTS IN INDIAMcDonald¶s entered

India in 1996.The first McDonald¶s restaurant wasopened on October 13th at Basant Lok in

Vasant Vihar. McDonald¶s inIndia is a 50-50 joint venture between Connaught Plaza

Restaurants andHard Castle Restaurants. Which are owned and managed by VikramBakshi and

Amit Jitia respectively Connaught Plaza Restaurants operatesin North India whereas Hard Castle

Restaurants operates in WesternIndia. After opening their outlets in various metro cities, the

company isnow trying to expand in cities like Pune and Jaipur also.but, the Indianconsumers

avoid burgers made from beef and pork which is tabooaccording to their religions. So in order

to evade this problem the Indian 6|P a ge

7. menus of McDonald¶s was Indianised and specifically design in suchmanner that it can boost

its products to Indian consumers, the menuincludes chicken burgers, veg burgers, veg pizza¶s,

happy meal forchildren¶s, beverages and deserts. Today there are 79 outlets in north-east India

and more than 53 outlets in south-west India. MCDONALD¶S FRANCHISE MODEL RAYMOND

KROCVIKRAM BAKSHI AMIT JATIA MISSION STATEMENT"McDonalds vision is to be the worlds

best quick service restaurantexperience. Being the best means providing outstanding quality,

service, 7|P a ge

8. cleanliness, and value, so that we make every customer in everyrestaurant smile."

MARKETING STRATEGIES OF MCDONALD¶SBUSINESS STRATEGYFRANCHISE MODLE ± As per

franchise model of McDonald Only 15% ofthe total number of restaurants are owned by the

Company. Theremaining 85% is operated by franchises. The company follows all theframework

of training and monitoring of its franchises to ensure that theyachieve good QUALITY

SERVICE,CLEANLINESS AND VALUE FORTHE MONEY offered by the company to its

customers.PRODUCT CONSISTENCY- By developing a sophisticated suppliernetworked

operation and distribution system, the company has been ableto achieve consistent product

taste and quality across the nations of theworld.ACT LIKE RETAILER THINK LIKE A BRAND-

McDonald¶s focuses notonly on delivering sales for the immediate present, but also protecting

itslong term brand reputation.STRATEGY AS PER INDIAN MARKETRE±ENGINEERING THE MENU-

McDonald¶s thinks according to thecustomer¶s tastes, value systems, lifestyle, language and

perception.Globally McDonald¶s was famous for its hamburgers which are preparedfrom beef

and pork burgers. But, most Indians religion does not allowthem to consume beef or pork. So in

order to satisfy demand as per 8|P a ge

9. Indian preference, McDonald¶s came up with chicken, lamb and fishburgers to suite the

Indian diet.THE VEGITERIAN CUSTOMER-India has a huge population ofvegetarians. To satisfy

this customer¶s demand, the company came upwith a completely new menu of vegetarian

items like McVeggie burgerand McAlooTikki. The separation of vegetarian and non-

vegetariansections is maintained throughout the various stages.EXAMPLE OF VEG BURGERS:

MCVEGGIE MCALOOTIKKISEGMENTATION, TARGETING AND POSITIONINGMcDonald¶s uses

demographic segmentation strategy with age as theparameter. The main target segments are

children, youth and the youngurban family. If they take children into consideration, children are

moreattracted towards toys and delicious meals including today¶s youth prefersuch places for

their entertainment and the urban families selectMcDonald¶s on various occasion like birthday

party, treat to their childrenetc. 9|P a ge

10. As shown in the above diagram, kids are on the top most level in FMCGpurchase related to

food products. So to attract children¶s McDonalds hasHappy Meal in which they gift one toy on

each happy meal, there are toysranging from hot wheels to various Walt Disney characters.

Example ofthe latest range is the toys of the movie Madagascar.For this, they have a tie-up with

Walt Disney. At several outlets, it alsoprovides special facilities like µPLAYING PLACE¶ where

children can playarcade games, air hockey, etc.This strategy is targeting in making McDonald¶s

a fun place where youcan enjoy both playing and eating. This also helps McDonald¶s to

attractthe young urban families who wanted to spend some quality time, whiletheir children

can enjoy every movement of McDonald¶s. To target theteenagers and young youth,

McDonald¶s has priced several productsaggressively, keeping in mind the price sensitivity of

this target customer.In addition, facilities like Wi-Fi are also provided to attract students to

theoutlets, example of such outlet is of a Vile Parle situated in Mumbai.³MCDONALD¶S MEIN

HAI KUCH BAAT´ projects McDonald¶s as a placefor the entire family to enjoy. When

McDonald¶s entered in India it wasmainly targeting the urban upper class people. But, today it

hadpositioned itself as an affordable place to eat without compromising onthe quality of food,

service and hygiene. The outlet atmosphere and mild 10 | P a g e

11. background music highlight the comfort that McDonald¶s promises inslogans like ³YOU

DESERVE A BREAK TODAY´, ³FEED YOUR INNERCHILD´. This commitment of quality of food and

service in a clean,hygienic and relaxing atmosphere has ensured that McDonald¶smaintains a

positive relationship with their customers. TOYS FOR CHILDREN WITH HAPPY

MEALMCDONALD¶S MARKETING MIX (5P¶S) STRATEGYAfter analyzing the market, finding the

key factor, target segment andunderstanding the market demand, every company needs to

come upwith an offers or such type of plan, that speed up the growth of thecompany. For

which McDonalds uses 5p¶s of marketing mix which are asfollows: 1. Product 2. Place 3. Price

4. Promotion 5. People 11 | P a g e

12. PRODUCT:Product includes that, how the company should design, manufacture theproduct

so that it enhance the customer experience?Product is the physical product or services offered

by the company to itscustomers. McDonalds includes certain aspects of its product such

aspackaging, desirability, looks etc. This consists of both tangible and non-tangible aspects of

the product and services.McDonalds has purposely kept its product depth and product

widthlimited. McDonalds had first studied the behavior of the Indian customerand provided a

totally different menu as compared to its menu offered inInternational market. It removed

pork, beef and mutton burgers from themenu. India is the only country where McDonalds serve

vegetarian menu.Even the sauces and cheese used in India are 100% vegetarian.McDonalds

continuously innovates its products according to the changingpreferences and tastes of its

customers. The recent example is theintroduction of the Chicken Maharaja Mac and latest

introduction ofchicken style is Chicken Mcnuggets. 12 | P a g e

13. McDonalds brings best product of quality and of best features as per thepreference and

demand of the target market.PLACE:The place mainly consists of distribution channels and

outlets of thecompany. It is considered as very important because the product must beavailable

to the customer at the right place, at the right time and in theright quantity. In U.S.A nearly 50%

of outlets are situated within thedistance of 3 minutes.There are certain degree of fun and

happiness that McDonalds providesto its customers. It provides value position based on the

needs of thecustomer. McDonalds offers proper hygienic atmosphere, good abidanceand better

services.Now McDonalds have also started offering internet facilities at theiroutlets, along with

music system through radio, not the normal music butthe music which is preferred by young

generation in order to attract them.There are also games for children the one example is air

hockey.Children play games till the time there parents spend quality time inMcDonalds. 13 | P a

g e

14. ezPRICE:Pricing strategy is most important aspect of Marketing Mix. It includesprice list, if

any discount facility available or payment facility available. Itshould also take into consideration

the possible reaction from itscompetitors regarding the pricing. Pricing is very much

necessarybecause it is this part, which decides revenue for the business unit.All the other three

are the expenses incurred in the business. The priceneeds to take demand and supply equation

into consideration byanalyzing the pricing demand as per Indian market.McDonald¶s came up

with a very grasping punch line ³Aap ke zamanemein ,baap ke zamane ke daam´. This pricing

strategy was founded toattract middle class and lower class people and the effect can clearly

beseen in the consumer base that McDonalds has now.McDonalds has certain value pricing and

bundling strategies such ashappy meal, combo meal, family meal, happy price menu etc to

increaseoverall sales of the product. 14 | P a g e

15. PROMOTION:The promotional activities adopted by the McDonald helps tocommunicate

efficiently with the target customers. The diagram givesidea about the promotion strategy of

McDonalds. Application of abovementioned Communication Mix describes the cost that is

feasible as per 15 | P a g e

16. the consumers. Some of the most famous marketing campaigns ofMcDonald¶s are:³You

Deserve a break today, so get up and get away- To McDonald¶s´³Aap ke zamane mein ,baap ke

zamane ke daam´.³Food, Folks, and Fun´³I¶m loving it´.McDonalds corporate used advertising,

personal selling, sales promotion,public relations, and direct marketing and became world¶s

largest leadingBurger Empire. These five promotion tools are used by McDonalds tointegrate

marketing communication program which allows McDonalds toaccess the communication

channels clearly, consistently and easilytransfers messages and product to the target audiences.

SETTING THE PROMOTION MIX An Advertisement is targeted to attract the masses itreaches to

large number of people at a time. Advertising is one of themost important tools for promotion

which had various ways ofadvertisement in that advertisement through billboards and media

areoften used by any of the business enterprise. Consumers mostly perceivegoods which are

advertised goods, as they assume it is more rightful.Due to distinct features of advertisement

McDonalds also hold the handof Advertising. There are three main objectives of advertising

forMcDonald¶s are to make people aware of an item, feel positive about itand remember it.

The right message has to be communicated to the rightpeople through the right media.

McDonald¶s does its promotion throughtelevision, hoardings and bus shelters. 16 | P a g e

17. They use print ads and the television programmes are also an importantmarketing medium

for promotion. Personal selling is most effective tool for buildingbuyers preference,

convenience and actions. Personal interaction allowsknowing for feedback and adjustments if

required. If the organization hada good Relationship with Buyers they are more attentive

towards personalselling.In personal selling McDonalds employees working in different outlets

arethe best example of personal interaction, the employees are directlyserving the customers

so, and the face to face communication is easilypossible. In the McDonalds outlet there are

such staff which areappointed for personal selling they are the one who perform the

activitiesregarding selling up of goods to customers. sales promotion activity consist of

promoting thebusiness unit through organizing various contest, programmes,

functions,distribution of free discounts coupons etc that attracts attention of thecustomers,

Also offers strong purchase incentives, dramatizes offers,boosts sagging sales Stimulates quick

response; Short-lived; Noteffective at building long-term brand preferences.McDonalds

organizes several sales promoting contest and programmesin different retail markets and

outlets in which they distributes freediscounts coupons. The statue of Mascot McDonalds is

always there forany occasions that are also one of the logo of McDonalds. 17 | P a g e

18. Highly credible; Very believable; Many forms: newsstories, news features, events and

sponsorships, etc.; Reaches manyprospects missed by means of other forms of promotion;

Dramatizescompany or product; Often the most under used element in thepromotional mix;

Relatively inexpensive (certainly not free as manypeople think--there are costs involved)Public

Relations are also an important part of the McDonalds marketingstrategy. The restaurant

employees play a huge role in interacting withthe public. On a day-to-day basis the employees

commit themselves tocustomers and the customers feelings toward the brand. McDonaldsfeels

that before they communicate with their customers they need to beaware of what their

competitors are communicating, so they can create abeneficial difference between themselves

and the competitors. Many forms: Telephone marketing, direct mail, onlinemarketing, etc.;

Four distinctive characteristics: Nonpublic, Immediate,Customized, Interactive; Well-suited to

highly-targeted marketing efforts.Direct marketing is also one of the efficient tools for

promotion. TheMcDonalds uses tool in the home delivery services in which they directlyserve

the order to their home. Also they have a websites which are morein preference for direct

marketing in that they usually mentioned all thenew offers along with the contact number of

your nearby outlets.PEOPLE: 18 | P a g e

19. McDonald¶s understands the importance of both its employees and itscustomers. It

understands the fact that a happy employee can serve welland result in a happy customer.

McDonald continuously does InternalMarketing because if the internal marketing is effective it

will automaticallylead to in the success of external marketing.Internal marketing includes hiring,

training and motivating employees. Inthis way they can easily serve customers and the result

will be the smilingfaces of the customers. The level of importance has to be placed in

thefollowing order (the more important people are at the top): 1. Customers 2. Front line

employees 3. Middle level managers 4. Front line managersThe punch line ³I¶m loving it´ is an

attempt to show that the employees areloving their work at McDonalds and will love to serve

the customers.CO-BRANDING STRATEGY 19 | P a g e

20. Co-branding strategy is also one of the beneficial instrument for boostingthe business and

providing different the same things in different manner.In fact co-branding means having a tie

ups with another firm and servingthe customer with both the products. It helps in making profit

for both thebusiness enterprise as well as to increase their sales and growth oforganization.The

two different brands enter into co-brand through certain contracts oragreement and as per the

agreement they bifurcates their earnings fromtheir brands. There are different examples of co-

branding strategy ofMcDonalds which are as follows.COCA-COLACoke is one soft drink brand

that had tie up with McDonalds since pastmany years. In McDonalds the coke is the best

beverage in cold drinkswhich are served to the customers along with different menus of

theMcDonalds for example happy meal, happy price menu etc. As coke ispreferred by

children¶s even their parents as well as the young youths.Therefore by keeping in mind the

consumer wants they came up withCoca-cola. In fact this co-brand of McDonalds is initiated to

increase thevolume of sales of the both the business enterprise.And of course this co-branding

strategy has encouraged both thebusiness in achieving the successful returns of customer¶s

satisfaction.On April 27, 2009 ± The Coca-Cola Company had announced arefreshed line up of

fountain and bottle beverages that will be added toMcDonalds U.S. restaurants, beginning this

year. This effort -- part of alarger beverage strategy -- will provide McDonalds customers even

morebeverage choices and meet customers changing taste preferences anddesire for more

suitable, convenient beverage options. COCA-COLA AND MCDONALDS 20 | P a g e

21. WALT DISNEYA Parade of Disney Happy Meal Toys.McDonalds will introduce a collection of

100 exclusive Happy Meal toysas they are inspired by Disneys admired collection of dramatic,

video andtelevision characters. Representing more than 40 Disney films, theMcDonalds

premiums include a mix of new and classic Disneycharacters, allowing kids and parents of all

ages to recall their favoriteDisney memories.Each Happy Meal premium is fully decorated and is

featured on amemorial base, which includes the characters debut date, charactersname and

the Walt Disney World "100 Years of Magic" logo.The McDonalds Happy Meal promotion

featuring the Walt Disney World"100 Years of Magic" celebration is a historical collection of

Disneyfavorites, from classic characters like Mickey Mouse, Dumbo, Cinderella,and Mary

Poppins to the newer innovations, including: Ariel, Aladdin,Bianca, Pocahontas, Tarzan, Jesse

and Hercules. 21 | P a g e

22. One toy is included with each Happy Meal and can be purchased atparticipating McDonalds

restaurants, while supplies last.But,unfortunately the Walt Disney had end the relationship with

McDonaldsdue to some genuine reasons. Thus Walt Disney is considered as X-co-brand of

McDonalds. WALT DISNEY AND MCDONALDSBARBIE TOYSMcDonalds Barbie Toys have been

included with Happy Mealsrepeatedly since the Happy Meal has been in existence. Over the

lastthirty years, Barbie has been one of the most popular toys in aMcDonald¶s Happy

Meal.Barbie Happy Meal Toys have taken the form of a variety of Barbie dollfavorites. These

toys have become a highly sought after segment forcollectors of both Barbie¶s and McDonalds

toys.McDonalds Barbie Toys comes in eight collectible characters in 1994,including Bicycling¶

Barbie, Jewel and Glitter Shani, Camp Barbie, andCamp Teresa. 22 | P a g e

23. Each Barbie miniature was 4 and ½ inches tall. Since then, the Barbieand Friends dolls have

been collectible Happy Meals toys in 1996, 2004,2005 and 2007, to just name a few. If you

missed any of the McDonaldsBarbie toys that you may need to buy for your collection of dolls,

you willfind them for sale on eBay. BARBIE AND MCDONALDSCADBURYMcDonald¶s have

included Cadbury in the beverages prepared withCadbury and creamy milk shake mostly loved

by children. England hascombined two favorite things that are Cadbury and crème eggs.Now

McDonalds is offering a Cadbury Crème Egg McFlurry. It is tastyand rich also it is provides some

quantity of protein and vitamins as it ismade from eggs and milk, A cold crème eggs with the

vanilla ice cream,mix in a sauce that looks like the yellow yolk, and add in deliciouschocolate

bits.The tasteful McFlurry have also worked in anticipating the taste of thecustomer. Therefore,

it is considered as one of the most preferringbeverages in the menus of McDonalds. CADBURY

AND MCDONALDS 23 | P a g e

24. HOT WHEELSThe History of McDonalds and Hot Wheels die-cast cars: McDonalds

hasattempted to develop promotions for children, since 1961 with smallrelated plastic toys, in

their Happy Meals. The first models of carsdistributed for McDonalds started in 1983, using the

Hot Wheels modelsof the normal line and followed all the way through 1990. In

1991McDonalds found another way to distribute the Hot Wheels in theirHappy Meals for the

first time.Some of these were Hot Wheels by Collector Number and were alsoplaced in a

factory plastic baggie for the first time. Since then, someannual promotions related the models

of cars had been made. They hadenclosed models like, Hot Wheels, Matchbox, Stompers 4X4,

Tonka andBigfoot toys. HOT WHEELS AND MCDONALDS 24 | P a g e

25. MCDONALD¶S TIE UP WITH HINDUSTAN AND BHARATPETROLEUM PERTROL PUMPSThe

strategy behind opening their outlets near petrol pumps is that theycan serve their products

even on the highways. McDonald¶s already has14 outlets on national highways and they are

planning to open 50% oftheir stores in the coming year on the highways.In order to achieve

that, they tie up with oil marketing companies likeHindustan petroleum and Bharat petroleum

to open on revenue-sharingmodel.The reason behind starting their outlets on highways is to

serve thosecustomers who perform their day to day activities through highways.People mostly

prefer food stores on highways for dinner purpose, theirwill hardly some people who go for a

breakfast. So, idea of McDonalds tostart on highways is that they can offer even dinner as well

as theirexisting fast food items. 25 | P a g e

26. ADVERTISINGAdvertising - Advertising is any paid form of non-person presentation

andpromotion of ideas, goods, or services by an identified sponsor. There arethree goals of

advertising. These goals are to: 1. Inform 2. Persuade and 3. Remind. 26 | P a g e

27. The major media for advertising are as follows: Newspapers, Television,Direct mail, Radio,

Magazines, Internet, Outdoor (billboards, blimps, etc.),Yellow pages, Newsletters, Brochures,

and Telephone.The traditional conceptual model for creating any advertising or

marketingcommunications message is the AIDA Model: get Attention, hold Interest,arouse

Desire, and then obtain Action.ADVERTISING STRATEGYThere have been many McDonalds

advertising strategy and slogans overthe years. McDonald¶s is one of the most widespread fast

foodadvertisers. McDonalds Canadas corporate website says that thebusiness campaigns have

always focused on the "overall McDonaldsexperience", rather than just product. The purpose of

the image hasalways been "portraying warmth and a real slice of everyday life." Its TVads,

showing various people engaging in popular activities, usually reflectthe season and time

period. Finally, they have never in their advertisinghistory used negative or comparison ads

pertaining to any of theircompetitors; the ads have always focused only on McDonalds

alone.McDonalds has for decades maintained an extensive advertisingcampaign. In addition to

the usual media television, radio, andnewspaper, the company makes significant use of

billboards and signage,sponsors sporting events ranging from Little League to the

OlympicGames. 27 | P a g e

28. Television has always played a central role in the companys advertisingstrategy.Today,

McDonalds has used 23 different slogans in United Statesadvertising, as well as a few other

slogans for select countries andregions because slogans is also considered as important factor

inadvertising strategy.SLOGANSUSLet¶s eat out! (1960-1965)Look for the Golden Arches!

(1965-1967)The closest thing to home (1966-1969)McDonalds is your kind of place (1967-

1971)You deserve a break today (1971-1975)Enjoy the best food at McDonalds (1973,

concurrent with 1971 slogan)We do it all for you (also known as you, youre the one) (1975-

1979)Nobody can do it like McDonalds can (1979-1980) 28 | P a g e

29. You deserve a break today (1980-1983)Nobody makes your day like McDonalds can (1980-

1983)We cook it all for you at McDonalds (1982, concurrent with 1980 slogans)McDonalds and

you (1983-1984)Its a good time for the great taste of McDonalds (1984-1988)Its Mac Tonight

(1985, Mac Tonight advertising)McDonalds is your place to be (1986)Good time, great taste

(1988-1990)Theres nothing quite like a McDonalds (1988-1990)You Deserve A Break Today

(1989-1990, concurrent with 1988 slogan)Food, folks and fun (1990-1991)McDonalds Today

(1991-1992)What you want is what you get (1992-1995)Do you believe in magic? (1993-1997,

Happy Meal advertising)Have you had your break today? (1995-1997)My McDonalds (1997)Did

somebody say McDonalds? (1997-2000)We love to see you smile (2000-2003)Put A Smile On

(2000-2003)Smile (2002-2003)Im loving it (2003-present India) 29 | P a g e

30. BRANDING AND BRAND LOYALTYWhen you see the golden arches, what is the first thing

that comes toyour mind? Or what about when you see Ronald the clown, what comesto your

mind? Finally, what has 2 all, special sauce, lettuce salad on asesames bun? Hmmm« Sounds a

lot like McDonald¶s knows how tocapture your attention.One of things that McDonald¶s has

proved is that they are good atbuilding its brand loyalty. Even young children know that when

you seethe golden arches that you are close to a McDonald¶s. With itsinternational expansion

efforts, McDonald¶s has become one of the mostrecognized brands world-wide. A couple of

the things that has helped tobuild McDonald¶s brand is their constantly changing menu and

brandpackaging that meets the needs of their consumers.POSITIONING STRATEGYMcDonald¶s

positions itself as the leader in quick service restaurants. Inorder to maintain their standard,

they have started marketing to a youngerset of persons, much in the same way that their ³I¶m

Loving It´ campaigndoes. 30 | P a g e

31. They have send out FSI¶s (free standing inserts) as designed at the endof this report to

ensure that their loyal customers will be motivated enoughto try the new campaign even

though they have always loved and usedMcDonalds.These FSI¶s will also act as a way to get

customers who may have neverbeen to the store. Users and non-users alike will use the Club

McDonaldsto their advantage. They expect that their younger target will seek outmemberships

in Club McDonald¶s. The online points-tracker and profile will add to the innovation factor.

Noneed of paperwork when figuring out your point totals and prize eligibility.This is easy to use

aspect of the promotion is appealing to those whowere born with computers.Club McDonalds

is targeted at younger people who are familiar with creditcards and some of the rewards cards

that are part of them.WORLDWIDE GROWTH STRATEGYMcDonalds growth strategy is based on

three elements; 1. Adding restaurants. 2. Maximizing sales and profits at existing restaurants. 3.

Improving international profitability.Maximizing sales and profits at existing restaurants will

beaccomplished through better operations, innovation, productdevelopment and refinement,

effective marketing and lowerdevelopment and operating costs.Improved international

profitability will be realized as economies of scaleare achieved in individual markets and as the

company benefits from theglobal infrastructure.SERVICE MANAGEMENT STRATEGY 31 | P a g e

32. If we take any fast food restaurants the customer attracts firstly throughbrand and secondly

with the most important thing to consider i.e. isservices offered to them.If the services of any

enterprise is not suitable to customer than it achievethe aim that has been proposed by

them.This research describes the service management strategy employed byMcDonalds Corp.

in the operation of their fast food restaurant chain.The companys service management strategy

is described within thecontext of the service model. In this model, market segment,

thephilosophy culture image of the company, service systems, and humanresources are

considered. The service of the company is identifiedthrough following tools:TRAINING POLICYIt

is the goal of McDonalds to develop the highest level of skillamong all employees. Therefore, a

common training programmehas been established to develop staff and to meet the

trainingneeds of the company.McDonald¶s Head of Training is responsible for implementing

anddirecting the training programme throughout the company. OperationsSupervisors and

Restaurant Management participate in the programmeand are responsible for individual

restaurantresults.CREW MEMBERS1. Each crew member receives on-the-job training in every

area of therestaurant.2. Full-time staff is fully trained on all stations in the restaurant within

fivemonths, part-time within ten months. 32 | P a g e

33. 3. All 5-star crew members receive a Basic Certificate in Food Hygiene,validated by the

Institution of Environmental Health Offices.BUSINESS MANAGEMENT PROGRAMME1. A

management programme for those over 21 aiming for a directrouteinto restaurant

management following an intensive and structured trainingcourse.2. All managers follow the

Management Development Programme. Thefirst three months cover the three fundamental

areas of the business: y Food preparation y Cooking y Serving customers in clean and hygienic

surroundings.This is followed by a series of 12 training courses designed to back upwhat is

learnt in the restaurant and develop management, communicationand leadership.When

promoted to Restaurant Manager, training continues through theAdvanced Operations Course

covering staff development, motivation,stress management, communication and leadership. 33

| P a g e

34. CUSTOMER PERCEPTION AND CUSTOMER EXPECTATIONCustomer perception is a key factor

affecting a product¶s success. Manypotentially changed products have failed simply because of

their inabilityto build a healthy perception about themselves in the customers¶

minds.McDonalds being an internationally famous brand brings with it certainexpectations for

the customers.TARGET SEGMENTS VISITS MCDONALDS TOA parent with two Visits McDonald¶s

to give the children a treat.children.children¶s Want to visit McDonald¶s as it is a fun place to

eat.A business customer Visits McDonald¶s during the day as service is quick; the food tastes

great and can be eaten in the car without affecting a busy work schedule.Teenager Hangout

with friends, but keep it affordable. 34 | P a g e

35. Customers expect it to be an ambient, hygienic and a little sophisticatedbrand that respects

their values. The customer¶s expect the brand toenhance their self-image. Customer responses

obtained at the Vile Parle,Mumbai outlet confirmed the fact that they connect strongly with

thebrand. However, fulfilling some of the customer expectations like abroader product variety,

provide McDonald¶s a great scope forimprovement.MCDONALD¶S HEALTHY EATING

POLICYMcDonalds is committed to providing high quality, safe andhealthy food. It recognizes

the relationship between a balanced diet,lifestyle and health. 35 | P a g e

36. It supports the recommendations of the 1991 Committee On MedicalAspects of Food Policy

(COMA) report and the targets laid down in theGovernments White Paper¶ The Health of the

Nation by ensuringproducts conform with the guidelines. McDonald¶s contributes to

thedevelopment of wider healthy eating policies by working with governmentdepartments and

organizations dedicated to healthy eating.PRODUCTSMcDonalds continually reviews how its

products relate to dietaryrecommendations, at the same time it ensures maintenance of

quality,taste and value.McDonalds continues to seek quality new products which are inline with

dietary recommendations but, which satisfy customersexpectations. McDonalds committed to

reduce the amount of additives,especially preservatives and colorants in the

products.CUSTOMERSMcDonalds helps customers to balance their diet by providingdetailed

Nutritious information on all its products.STAFFMcDonalds encourages staff to understand the

principles of healthyeating. Specials training programmes are held for attainment of

thisobjectives.PARTNERSMcDonalds works closely with franchises, suppliers and distributors

tomeet their commitments to quality, nutrition, hygiene and food safety.ANSOFF PRODUCT

MARKET GROWTH MATRIX 36 | P a g e

37. The Ansoff Product-Market Growth Matrix is a marketing tool created byIgor Ansoff and

first published in his article "Strategies for Diversification"in the Harvard Business Review

(1957). The matrix allows marketers toconsider ways to grow the business via new products,

new markets ±there are four possible product/market combinations.This matrix helps

companies decide what course of action should betaken given current performance. The matrix

consists of four strategies: 1. Market penetration strategy 2. Market development strategy 3.

Product development strategy 4. DiversificationMARKET PENETRATION STARTEGYMarket

penetration is one of the four growth strategies of the Product-Market Growth Matrix defined

by Ansoff. Market penetration occurs when 37 | P a g e

38. a company enters/penetrates a market with current products. The bestway to achieve this

is by gaining competitors customers.Other ways include attracting non-users of your product or

convincingcurrent clients to use more of your product/service. Market penetrationoccurs when

the product and market already exists in market. McDonaldsis one most popular brand in fast

food in entire world. In 1975, the firstMcDonalds opened at Hong Kong, many thought that this

is was wrongmove for McDonalds. Various reasons were laid for this claim. Although,the main

reasons lays on the fact that Americans and Hong KongChinese at that time have very different

perception about food.McDonalds, being an American food chain, view breads full meal

whileHong Kong Chinese view them as snacks. As time went by, McDonaldsslowly became the

part of the Hong Kong landscape and way of life ratherthan just being an outpost of American

culture. Hong Kong Chinese soonaccepted that the food McDonalds serve are ordinary, thus

they are forordinary people like them.Future more, believes that the introduction of

McDonalds to the HongKong society changed the direction of the Hong Kong cultural

framework.Along with the rest of the world, Hong Kong was also McDonalized.MARKET

DEVELPOMENT STARTEGYA market development strategy targets non-buying customers in

currentlytargeted segments. It also targets new customers in new segments.A marketing

manager has to think about the following questions beforeimplementing a market

development strategy: Is it profitable? Will it 38 | P a g e

39. require the introduction of new or modified products? Is the customer andchannel well

enough researched and understood?The marketing manager uses these four groups to give

more focus to themarket segment decision: existing customers, competitor customers, non-

buying in current segments, new segments. McDonalds is currentlyfollowing above mentioned

strategy, to focus on market segments. Forserving synonymously to the existing customers they

are coming up withdifferent menus as per change in taste and preference of their customere.g.:

happy price menu, beverages including milk shakes and cold coffeesetc. Also, by keeping in

mind their rivals they are introducing products tocompete them e.g. to answer the KFC they

came up with chickenmcnuggets. They are adopting pricing policies for non-buying

customerand as well as new segments.PRODUCT DEVELOPMENT STRATEGYIn business and

engineering, new product development (NPD) is the termused to describe the complete

process of bringing a new product orservice to market. There are two parallel paths involved in

the NPDprocess: one involves the idea generation, product design, and detailengineering; the

other involves market research and marketing analysis.Companies typically see new product

development as the first stage ingenerating and commercializing new products within the

overall strategicprocess of product life cycle management used to maintain or grow

theirmarket share.McDonalds is always within the fast-food industry, but frequently

marketsnew burgers. Frequently, when a firm creates new products, it can gainnew customers

for these products. Hence, new product development canbe a crucial business development

strategy for firms to stay competitive. 39 | P a g e

40. McDonald¶s are always enhancing their existing product along with it; theyalso try to

introduce new and new products so that they can easily survivein

market.DIVERSIFICATIONDiversification is a form of growth marketing strategy for a company.

Itseeks to increase profitability through greater sales volume obtained fromnew products and

new markets. Diversification can occur either at thebusiness unit or at the corporate level. At

the business unit level, it ismost likely to expand into a new segment of an industry in which

thebusiness is already in.At the corporate level, it is generally and it¶s also very interesting

enteringa promising business outside of the scope of the existing business unit.McDonalds

made its foray into the hospitality industry in 2001, openingtwo hotels in Switzerland, at Zurich

and Lully. The "Golden Arch Hotels"were positioned as four-star facilities with the latest in-

room technologyand very original, modern interior design. Reactions and reviews ofguests

following their stay there were mixed.Most seemed to agree, that the hotels four-star rating

didnt seem tocorrespond with McDonalds image. The Golden Arch in Zurich isMcDonalds first

hotel.IMPORTANCE OF PLC IN MCDONALD¶S 40 | P a g e

41. The requirements of customers change over time and thus the productoffering has to be

changed accordingly. What is the trend today may beout of market within few weeks. Thus

continuous innovation is required.To counter these changes McDonalds has continuously

introduced newproducts and has phased out the old ones which were at the declinestage of

their PLC. The introduction is timed such that the new productdoes not cannibalize (which eats

same of it) the product already in thematurity or growth stage. Thus the secret lies in getting

profits withdifferent products in the different stages of the PLC.A perfect example of revitalizing

a product in decline phase 41 | P a g e

42. The French Fries have been an important part of the McDonalds menuworldwide. But now

it was in the stage of decline and was actually notgenerating proper return. In an attempt to

revitalize it, a new variant wasintroduced namely Shake Shake Fries. This is being served with

chatpataspice mix which has resulted in increase in the sales of French Fries andhas elevated it

from to the decline stage.This is used to delay the decline of a well established product which

hasthe potential of generating further revenue. 42 | P a g e

43. MCDONALIZING THE SUPPLIERSMcDonald¶s has changed the nature of not only the food

service industrybut also the food processing industry as well. McDonald¶s realized thatthe

battle between fast food chains would increasingly be one ofefficiency of supply, lower cost

production and greater desire to innovate.It pioneered with innovative and sophisticated food

distribution andpackaging systems when the traditional food processors were unwilling

orunable to supply food items that McDonald¶s demanded. They achievedamazing consistency

by giving more attention than anyone else to fieldservice and training at store level. Production

was concentrated in hugeplants devoted exclusively to McDonald¶s. McDonald¶s also started

withtiny suppliers and grew with them displaying great loyalty.Nowhere is the supplier loyalty

more evident than in development of new,improved products. Some of McDonald¶s classic

food items like Filet-o-Fish, French Fries, and Chicken Nuggets etc. are results of

supplierinnovation. Interestingly, it took KFC more than three years before infinally introduced

its own version of chicken nuggets. Thus suppliertechnological expertise had given McDonald¶s

a product which was not amere marketing innovation but a technical one. McDonald¶s

attempted tosqueeze labour out of the stores by moving more preparation back intothe

processing plant, creating the opportunity to develop unique productsbased on suppliers¶

processing skills. For the first time, McDonald¶ssuppliers became the focal point of new

product development. Thisconverted the fast-food industry¶s most fragmented distributed

systeminto more efficient one which helped McDonald¶s reduce its inventory andmanage costs

effectively.OPERATIONS COMPETITIVE STRATEGY 43 | P a g e

44. McDonald¶s Corporation competes in a challenging market segment byproviding need-

satisfying products to customers. In this segment,ineffective competitors often fail without

proper strategies.To sustain its viability, the McDonald¶s corporation employs an

effectivecompetitive strategy to make it stand out against competitors such asother fast food

restaurants. McDonald¶s competes on several bases,including: 1. Cost 2. Speed and 3.

Nutritiontheir strongest priority is ³making customers happy´. The companyrecently made

strong changes to its process by introducing the ³Made forYou´ system.COMPETITOR¶S

ANALYSISMcDonald¶s has been a leading fast-foods outlet in Vile Parle. But theoutlet

understudy has other competitors eating away into its marketshare. In addition to its traditional

rivals²KFC, Dominos, Pizza Hut²thefirm encounters new challenges. Jumbo King competes using

a back-to-basics approach of quickly serving up burgers for time-pressedconsumers. On the

higher end, the KFC has become potent competitor inthe quick service field, taking away

customers from McDonald¶s.Perhaps in the new environment, fast, convenient service is no

longerenough to distinguish the firm. At this time, a new critical success factormay be

emerging: the need to create a rich, satisfying experience forconsumers.This brings us to

service and experience based competition whichMcDonald¶s can use for competitive

advantage against Jumbo King. 44 | P a g e

45. Keeping in mind the demographics of the area, McDonald¶s has Wi-Fienabled the outlet to

cater to the student community.It is for this overall ³Food, Fun & Folks´ experience that

customers pay apremium over the other competitors.MCDONALD¶S

COMPETITOR¶S:COMPETITION BASES:SPEEDMcDonald¶s competes on several bases mainly to

³make their customershappy´ by providing speedy, affordable, and nutritious foods.Through

extensive market research and survey, the organizationdiscovered that its customers desire

speed as one of the restaurants¶ toppriorities.Therefore, McDonald¶s vision aims to ³provide

fast, friendly and accurateservice´. McDonald¶s realizes that specific targets are necessary to 45

| P a g e

46. measure the performance of speed, and continuously takes relevantmeasurements to

compare actual performance with desired targets. Toachieve efficient service times, the

company utilizes proven, standardizedtraining processes for its employees and new drive-thru

layouts to reduceservice times. Along with speed, McDonald¶s also competes by offeringprices

at a low cost.COSTTo offer high quality products at low cost requires efficient

processesthroughout the entire McDonald¶s organization.Once again, this goal is built into

their vision statement when they claimthat ³We will be the most efficient provider so that we

can be the bestvalue to the most people´. McDonald¶s incorporates several ways

ofapproaching to provide great value to its customers. One strategy that thecompany has

employed for many years is the value meal.The value meal allows customers to buy a sandwich,

French fries, andbeverage at a discount when purchased together. McDonald¶srestaurants

offer from seven to twelve value meals, both for their lunchmenu and breakfast menu.More

recently, McDonald¶s began offering a 46 | P a g e

47. value menu, consisting of many individual items costing only $1.00 each.First tested in

southern California, the value menu has proved to be verysuccessful and has been since

incorporated to the individual stores.Some individual franchise owners choose to offer daily

specials of specialmenu items, such as ³$0.39 hamburger Wednesdays,´ or other similarspecials.

Big Mac Mondays are a popular regional promotion.NUTRITIONMcDonald¶s third main

competitive base is nutrition. The organizationunderstands that health trend is an increasingly

popular trend therefore;the organization has recently focused extraordinary efforts to

promotetheir new nutritious choices. Although not specifically built into theorganization¶s

vision, McDonald¶s has already introduced many options toachieve this goal.In the United

States, ³Go-Active´ meals have been offered within the lastfew years. These meals include a

salad, bottled water, and a ³step-o-meter´ to help customers keep track of how many steps

they take a day.Other countries have seen similar healthy options. The United Kingdomsaw

fresh fruit bags, containing apples and grapes, as an alternative toFrench fries. Not only does

McDonald¶s care about its customers, but it isalso considerate of its employees¶ health. In

Europe, the organizationworked with external nutritionists to develop an ³Employee Guidebook

´which contains tips and nutrition information for healthy lifestyles.McDonald¶s has assembled

their Global Advisory Council on BalancedLifestyles. This council consists of exercise & obesity

specialists,environmentalists, and other professionals to ensure that McDonald¶stakes

appropriate steps in helping its customers achieve optimal health. 47 | P a g e

48. The company is also utilizing technology to their advantage. The currentMcDonald¶s

website lets a user select any combination of menu items,place the items in the online bag, and

conduct a nutritional analysis ontheir selections. The user can break down the analysis even

further thana menu item, down individual condiments, including ketchup; pickles etc.Not only

has the company introduced many steps to ensure nutrition, butit will strive to continue the

trend toward nutrition. McDonald¶s plans toadd additional healthy menu options (fruits and

vegetables) increasenutrition awareness among McDonald¶s employees; conceive new waysto

deliver nutrition information to its customers, and other actions.CHANGE IN STRATEGYMade for

YouMcDonald¶s organization recently underwent drastic strategy changes toserve better to

their customers. Under their ³old system,´ the companywould make several sandwiches at

once, and hold the sandwiches in awarming bin until purchased by a customer. Under this

system,management had to accurately predict how much food had to be put onhold. Accurate

prediction had to be used because if there were notenough food placed on hold, this would

create the problem of increasewaiting times for customers, and too much food would cause

waste of 48 | P a g e

49. expired items. McDonald¶s dramatically changed their strategy in order tostay competitive

with other fast food organizations.In 1999, McDonald¶s spent $181 million to introduce their

³Made for You´system. Under this new system, standard food items are not held in a binuntil

they are sold. In the ³Made for You´ system, modern technologygreatly assists McDonald¶s

operations. When a customer places anorder, the sandwich items are immediately displayed on

a computermonitor in the kitchen and a tone sounds to alert the kitchen staff.Upon a new

order, an employee in the kitchen will toast the bun, andassemble the sandwich

accordingly.Standard items simply list the name of the sandwich, while customizedorders list

the sandwich name and the desired condiments. Once thesandwich is assembled, it is

presented to the food loading area, where adifferent staff person retrieves the sandwich and

completes the order byadding French fries, desserts, etc. The system works the same for

frontcounter orders as well as drive-thru orders.Unfortunately, the introduction of the ³Made

for You´ system did not comeeasily. McDonald¶s watched its customer satisfaction drop for the

threeconsecutive years beginning in 1999. After further research, they realized that although

the new systemprovided fresher food, it was not as quick as the previous system. Insteadof

reverting back to the old system, McDonald¶s continues to fine tune³Made for You´ and add

new options to help the system work faster.Revitalization PlanIn order to cope with the first

ever quarterly loss that resulted frominefficient use of the Made-for-you-system McDonald¶s

has devised a newplan to increase profits. Previously, the corporation emphasized adding 49 | P

a g e

50. more restaurants to increase sales, but the new plan places emphasis onincreasing sales at

existing restaurants.The new plan will reduce spending, to enable more cash to

shareholdersthrough dividends and share repurchases. Specific goals of therevitalization plan

are to: y Attract new customers y Encourage existing customers to visit more often y Build

brand loyalty y Create enduring profitable growthThe main goal is to increase sales by creating

an exceptional customerexperience. McDonald¶s plan is to achieve this goal by focusing on

itspeople, products, places, prices, and promotions.MenuAlong with changes in their process

strategies, McDonald¶s has flirtedwith menu changes as well. Last year, they offered a ³new

taste menu,´where they offered a new sandwich for one week. The purpose was tooffer

customers a variety of options to satisfy peoples¶ desire for variety.However, the new taste

menu proved to be ineffective.Some customers would fall in love with an item, but it would

only last oneweek, and they would be frustrated that they couldn¶t purchase their newbeloved

favorite sandwich.More recent changes to the menu have proved effective. McDonald¶realized

that many of today¶s customers seek healthy food options, andtheCorporation has offered

items accordingly. As mentioned above in³Competition Bases,´ McDonald¶s now offers a wider

variety of nutritious 50 | P a g e

51. items and provides information to help its customers as well asemployees make informed

healthy choices. E.g. Vegetarian MenuCORPORATE SOCIAL RESPONSIBILITY³At McDonald¶s,

making customers happy is what our business is allabout. And we know it takes a lot to make

that happen. We work hard toprovide every customer with a choice of meals and an experience

thatexceeds their expectations.´The preceding statement is the quote which introduces

McDonald¶sWorldwide Corporate Social Responsibility Report (2004). Although thecompany

strives to compete on several bases, their ambient goal iscustomer satisfactions. They reach

this goal through a variety of efforts.McDonald¶s visionary goal is to continually improve their

organization.One example is the manager on duty task of completing a ³travel path´every thirty

minutes of his shift. During a travel path, the managerpersonally checks every aspect of the

restaurant, including: the lobby 51 | P a g e

52. area where customers eat, the restrooms, the grill area behind thecounter, the walk-in

refrigerators and freezers, the stock area, as well asthe entire perimeter outside the

restaurant.Through completing travel paths, management continuously checks everyaspect of

the restaurant throughout the day.In addition to short term continual improvement,

McDonald¶s organizationalso thinks ahead for long term improvement.To ensure that they

serve 100% safe food, McDonald¶s conducts foodsafety tests multiple times throughout the

day. The corporation changes³Food Safety´ book used by the managers several times a year, in

effortsto think toward the future for the most appropriate variables to measure.Along with

internal improvement to the organization, McDonald¶s alsocollects external information from

its customers to discover which aspectsthe company performs well, and which aspects could be

improved. Themanager is supposed to talk to at least one customer during each travelpath and

the manager can immediately react to this direct face-to-facecommunication. On a larger scale,

McDonald surveys its customers twotimes per year. To entice customers to submit feedback,

the organizationoffers a free sandwich in return for a completed survey.In summary,

McDonald¶s strives to reach its goal of ³making customershappy´ through their normal

competitive bases of speed, price, andnutrition, and they also ensure customer satisfaction

through continualimprovement of their operations.SWOT ANALYSIS 52 | P a g e

53. The Road Ahead y Entry to Tier 2 and Tier 3 cities ± The main target customer for

McDonald¶s is the new urban Indian family. With the customer demographics constantly

changing and tectonic social and cultural shifts being observed in Tier 2 and Tier 3 cities due to

globalization, the company is now expanding to Tier 2 cities like Pune and Jaipur. y Rolling out

McBreakfast across all outlets ± In India, the company has recently launched its entry into the

breakfast food category. This is now launched on a pilot basis on select stores. In Mumbai, it

available at the Vile Parle outlet. The company views this category as a key growth driver in

future. VS 53 | P a g e

54. The young generation of India has moved towards junk food against thetraditional Indian

homemade food. People have started to live a fast andspeedy life, so much so that they prefer

going to the junk foodie¶srestaurant and eat food in just few minutes instead of making

lunch/dinnerat home and wasting 2 to 3 hrs in preparing it.It all started with the invention of

McDonald¶s in INDIA, junk food hasbecome more popular between the young youth as

McDonald¶s launchedits branch in most of the major cities of INIDA. Along with

McDonald¶smany other junk food brands have started their business here.One of a direct

competition to the evergreen business of McDonald¶s thatrecently launched here in Mumbai is

Kentucky Fried Chicken commonlyknown as KFC which is famous for its fried chicken.Non-Veg

lovers can have a feast in KFC, the VEG lovers are sidelinedand are not taken of that much care;

there is no variety for the veggieshere in KFC, as much as they have in McDonald¶s.In MC

Donald¶s you get a wide variety of choices for both VEG and NON-VEG lovers. When it comes

to Quality ± KFC is far behind from MCDonald¶s, they really need to maintain their quality

standards well if theywant to rise up the ladder and compete with McDonald¶s.Presentation

skills also matters ± and no one can really beat MCDonald¶s for that, they have these different

offers from time to time, theyhave special offers for 12 months of the year for kiddies, they give

awayfree toys etc, all this is really required if you want to win away the masses.KFC does not

offer any of those. Presentation skills at KFC are reallypoor. 54 | P a g e

55. So my advice to KFC would be ± pay more attention to peoplemanagement, communication

skills, have a complaint box or feedbacksurvey done which will help you know where and what

is you lackingbehind.MCDONALD¶S EXPERIENCEMarketing in a services industry is becoming an

increasingly complexchallenge. The paradigms of service marketing demand a

passionateunderstanding of customer expectations and perceptions, and linkingthem to

product design & delivery as well as operational planning. This iswhere McDonald¶s has

excelled due to its ability to successfully integratethe customer¶s perspective in its products

and operations in acomprehensive manner. The revamped menu in India is an example

ofMcDonald¶s strategy of integrating the customer¶s perspective in itsproducts. And, the

operational integration is clear from McDonald¶semphasis on its suppliers as its customers as

well as its treatment of itsconsumers as co-producers of services. The ultimate aim of

ServiceMarketing is not just to become a Service Leader but to create a ServiceBrand. The

Service Delivery Process is the key to achieving this aim ofService Marketing. Supplementary

process Service delivery process Core productsDuring the Service Delivery Process, each

moment of interaction betweenthe firm and the customer, called ³Moments of Truth´, helps

understandthe opportunities that a firm has to win or lose the customer. For example,these

³moments of truth´ are created for McDonald¶s every time the guard 55 | P a g e

56. at the McDonald¶s outlet meets the customer, every time an attendanttakes down the

order from the customer waiting in the queue, every timethe cashier interacts with the

customer, every time the attendant helps thecustomer guided the customer towards the table,

every time the attendantcleans the table, etc. ³Moments Of Truth´ ± The Service Encounter

customer service provider service delivery pointsManaging these ³moments of truth´ is a great

challenge in ServiceMarketing especially due to customer¶s involvement as a co-producer

ofservices e.g. McDonald¶s self-service concept wherein the customer notonly collects the

order but also cleans the table after consuming the food.However, McDonald¶s has been able

to create a great experience for itscustomers by understanding the nature of the entire Service

DeliveryProcess and the various stages in the process that are exposed to thecustomers.

Transparency in the processes at its outlet has helpedMcDonald¶s bring the back office in its

outlet at the front so that thecustomer is able to know the operations and provide feedback on

servicedesign improvements. 56 | P a g e

57. Internal Customer Focus is equally important as External CustomerOrientation in order to

win these ³moments of truth´. McDonald¶s focuson its People and their service delivery

methods therefore plays a veryimportant role in creating a successful Service Brand. The quality

and theconsistency of the service delivered by McDonald¶s have been greatlyenhanced by the

combination of the factors mentioned above. This hashelped McDonald¶s become Service

Leader and a successful ServiceBrand. This is evident from the fact that very few of its

customers opt fortake-home parcels or home deliveries while most of them prefer to eat atthe

outlet and enjoy the McDonald¶s experience.FACTS AND FIGURESYear Events1955 Ray Kroc

opens his first restaurant. McDonald¶s Corporation is created1957 Quality, Service, Cleanliness

and Value (QSC & V) becomes company motto1963 Ronald McDonald makes debut1965 The

company goes public1968 Big Mac is introduced`1974 Happy Meal is launched1996

McDonald¶s opens in India, the 95th countryWORLDWIDE FINANCIAL PERFORMANCEDollars in

million 1990 1991 1992 1993 1994No. of restaurants 11,803 12,418 13,093 13,993 15,205 57 |

P a g e

58. System wide sales 18,759 19,928 21,885 23,587 25,987- US 12,252 12,519 13,243 14,186

14,941- Outside US 6,507 7,409 8,642 9,401 1,046Total revenues 6,640 6,695 7,133 7,408

8,321Operating profit 1,596 1,679 1,862 1,984 2,241Net profit 802 860 959 1,083 1,224

ACTIVITY TIME BUDGET ($) PERIODAverage age of big Mac product 2009-2011

1,000,000.Promotions of big Mac product Complete 3,00,000 year 2009Mcdelivery service

2009-2011 50,000Launched N mixed Happy meal 2009-2011 300,000Reputation in training

2009-2011 25,000Marketing Advertisements 2009-2011 1,00,000 58 | P a g e

59. Adapting automated machines 2009-2011 40,000 Total 1,815,000 budgetMCDONALD¶S

INDIAN SUPPLIERSNORTH AND EAST INDIA NO.OF OUTLETSDELHI 33U.P. 22HARYANA

11PUNJAB 7RAJASTHAN 3UTTRANCHAL 1WEST BENGAL 1HAMACHAL PRADESH 1WEST AND

SOUTH INDIA NO.OF OUTLETS 59 | P a g e

60. MAHARASHTRA 32GUJARAT 7KARNATAKA 7ANDHRA 4M.P. 3MCDONALD¶S OFFER

SCHOLARSHIP TO STUDENTS IN USLocal Chapters of Ronald McDonald House Charities (RMHC),

withsupport from RMHC Global, McDonalds Corporation and McDonaldsrestaurants, offer

scholarships to students from communities who facelimited access to educational and career

opportunities. Thesescholarships are part of the RMHC and McDonald¶s ongoing

commitmentto education.HAMBURGER UNIVERSITIES 60 | P a g e

61. Today, more than five thousand students attend hamburger universitieseach year. Since

1961, more eighty thousand restaurants managers, mid-managers and owners have graduated

from this facility.QUESTIONNAIREQ. Which is your favorite product at McDonald¶s? favourite

product 10% 7% 9% 14% maharaj mc11% mc chicken burger 11% french fries chicken

mcnuggets mc puff 38% fileto fish otherQ. Is the product line in McDonald¶s adequate? 61 | P a

g e

62. is the product line adequate 39% 27% yes no average 34%Q. What is the main problem you

faced at McDonald¶s? problems faced in McDonalds long queues 40% 28% rude behaviour of

employees congestion 13% 15% other 4% no problemQ. Which area do you think needs the

most improvement? 62 | P a g e

63. improvement 10% 6% 10% 31% delivery capaciousness product variety 20% price 23%

offers and dis othersQ. What is the first thing that strikes your mind about McDonald¶s? first

thing about McDonalds that strikes customers mind 22% 32%4% burger golden arches service

17% 25% value for money funQ. Do you like McDonald¶s? 63 | P a g e

64. customers view points 7% 12% yes no 25% 56% yes & no no exp CONCLUSIONMarketing

Strategies implied by McDonald¶s clearly gives the entirecomprehensive information that is

necessary for the growth anddevelopment of a business enterprise. Basically, the strategies

that areimplemented by McDonald¶s includes many basic essentials features likemarket

research, innovative ideas, customers views, forecastingconsumers demand, planning,

organizing etc, these are the few basicessentials elements that plays a vital role for the

successful business andalso in creating the brand name of a product. Today, in this fast

movingdynamic world the demand for goods and services are increasing at analarming rate due

to which there is greater competency and competitorsruling in the market. Therefore, most of

the companies adopt differenttypes of marketing strategies in order to serve their customers in

a morebetter and efficient manner than their competitors so that, their businesscan easily

survive in the market. Even corporate companies like Relianceand Tata industries are

implementing various strategies from past many 64 | P a g e

65. years. This shows that marketing strategies provides competitive edge forevery business

unit. BIBILOGRAPHY www.McDonald¶sIndia.com www.Google.com www.wikipedia.com 65 | P

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