report on mcdonald

8/22/2019 Report on Mcdonald

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Introduction

Can u guess the name of the company which is

is the ninth most valuable brand in the world? has replaced the us army as the nation largest job training organization?

controls the market share of more than 3 food chains taken together in

America? Its none other than Mcdonalds corporation USA. Looking at the above statistics

makes one wonder that what is the driving force behind all these achievements? How is it that

the chicken burger available in San Francisco is same as the one available in delhi? Many of

these question have been answered in the book Mcdonalds: behind the golden arches

written by john love. But are these standards being carried out in India as well?

The golden arches of Mcdonalds are slowly becoming an integral part of the Indian

landscapes. Everyone knows mcdonalds is big, but very few know just how significant itsimpact on Indian business really is. The inside of Mcdonalds remains a mystery.

Mcdonalds india is a joint venture of Mcdonalds corporation with Amit Jatia and Vikram

Bakshi. Amit jatia handles the operation in westerns region whereas Vikram Bakshi in the

northern region.

Mcdonalds india is an employer of opportunities, providing quality employment and long

term careers to the indian people. The average Mcdonalds restaurants employees more than

100 people in 25 different position-from cashiers to restaurants managers. Mcdonalds world

class-training inputs to its employees can be seen in the present close to 2000 employees

currently in Mumbai and Delhi.

But the most overlooked facts of Mcdonalds india are its contribution to the food industry.

Six years prior to the opening of the first mc donalds restaurant in india, mcdonalds and its

international supplier partners together with local indian companies to develop products that

meet mcdonalds rigorous quality standards. Part of this development involves the transfer of

state of the art food processing technology, which has enabled indian businesses to grow by

improving their ability to compete in todays international markets. Mcdonalds dedication to

its supplier has lead to their growth beyond the boundaries of the india.

These aspects of mcdonalds do not get covered and highlighted by the hungry press. Butwhen the false news of using beef tallow in the french fries hit the market, the press did not

leave a chance to exaggerate it. Despite the fact that right form the beginning; no beef

ingredients have been used in any of the product.


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History of mcdonalds

it all began in 1955, with a salesman named raymond albert kroc and a milk shake makernamed multimate.

Raymond albert kroc (1902-1984)(a salesman)ray kroc mortgaged his home and invested his entire life savings to become the exclusivedistributor of a five-spindled milk shake maker called the multimixer. Hearing about themcdonalds hamburger stand in california running eight multimixers at time, he packed up hiscar and headed west. It was1954. He was 52 years old.

Dick and mac mcdonalds restaurant,san bernardino, californiaray kroc had never seen so many people served so quickly when he pulled up to take a look.

Seizing the day, he pitched the idea of opening up several restaurant to the brothers dick andmac mcdonalds, convinced that he could sell eight of his multimixer to each and everyone.who could we get to open them for us? what about me?

Where it all began, des plaines, illinoisray kroc opened the des plaines restaurant in 1955. First days revenues-$366.12! No longeris a functioning restaurant, the des plaines building now a museum containing mcdonaldsmemorabilia and artifacts, including the multimixer.

In short


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1955- ray kroc opens first restaurant in des plaines, illinois and themcdonalds corporation is created.1957- quality, service, cleanliness and value (qsc&v) becomes thecompany motto.1959- the 100 mcdonalds open in chicago.

1961- hamburger university opens in elk grove, near chicago.1963- one million hamburger sold. Ronald mcdonalds make his debut.1964- filet-o-fresh sandwich is introduced.1965- mcdonalds corporation goes public.

1967- the first restaurants outside of the usa opens in canada and puertorico.1968- the big mac is introduced. The thousand restaurants open indes plaines, illinois.1972- a new restaurant opens everyday. The quarter pounder is introduced.1973- egg mc.muffin introduced.

1974- the first ronald mcdonalds house opens in philadephia. Thehappy meal is launched.

1983- chicken mcnuggest is introduced. New hamburger university opensin oak. Brook, illinois. Set in 80 wooded acres. Training is provided forevery level of mcdonalds worldwide.

1984- 50 billion hamburger sold. Ronald mcdonalds charities is founded in ray krocs memory to raise funds in support of child welfare.1989- mcdonalds is listed on the frankfurt, munich, paris and tokyo stockexchanges.1990- mcdonalds opens in push kin square and gorky street, moscow.

1993- the first mcdonalds at sea opens abroad the silja europe, the worldslargest ferry sailing between stockholm and helsinki.1994- restaurants open in bahrain, bulgaria, egypt, kuwait latvia, omannew caledonia, trinidad and united arab emirates, bringing the totalto over 15,000 in 79 countries on 6 continents.

1996 - mcdonalds opens in india- the 95 country.1997 - the first drive -thru restaurant at noida (up)

1997 - the first disabled friendly store at noida (up)1999 - the first mall location restaurant at ansal plaza - new delhi2000- the first highway restaurant at mathura2001 - the first thematic restaurant at connaught place2002 - the first restaurant in a food court at 3c's, lajpat nagar and the first restaurant at thedelhi metro station at inter state bus terminus2003 - first cold kioskfaridabad

2004 - trash segregation method installed at- east delhi mall, kaushambi, up2004 - mcdonald's delivery service introduced2003 -04 mcaloo tikki, veg burger and pizza mcpuff are now being exported to middle east

countries.


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2005 - 50th store openingfaridabad2006- home delivery is mechanised2007-mc donald store is introduced in Bhopal

History of mcdonalds brand

Mac and dick mcdonald established mcdonalds brand in 1940 by using their surname. In1962,when dick mcdonalds sent kroc an illustration of the mcdonalds family crest, kroc hadit added to the sign as a symbol of quality, replacing speedee, the boyish chef character thatthe mcdonalds brother had develop to designate the speedee service system. When othersinsisted that the crest was gaudy the search was on for a more stylist corporate symbol.Turner fiddled with the logo, based on the veldt in the cadillac insignia, and schindler usedthat to sketch a logo that pictured the slanted roofline of the store piercing a line drawing ofthe golden arches in the form of an m. In 1968, the roofline image was dropped and themcdonalds name was added to derive the current logo. Since then logo has not undergone

any major changes. The introductions of the ronald mcdonalds character later develop ahuman element in the mcdonalds brand, and provided an instant link with children.

Offering:a brand is an offering from known source. Mcdonalds carries many associations in the mindsof people. Hamburger, fun, children, fast food, golden arches. These associations make up the

brand image.Mcdonalds on six levels of meaning.

Attributea clean fast food brand which tastes the same any where you eat in the world.

Benefitsyou dont have to stay hungry for a long time. Mcdonalds ready to eat available.

Valuesthe world leader in fast food restaurants.

Culturethe brand represents culture of social gathering for families and groups.

Personalitythe world leader, a giant m.

Userall kinds of consumers buy mcdonalds products irrespective of age, sex all over the world.One can see all types of personalities in the mcdonalds restaurant.Hamburger universityhamburger university is mcdonalds worldwide management training center located in oak

brook, illinois. Designed exclusively to instruct personnel employed by mcdonaldscorporation or employed by mcdonalds independent franchisees in the various aspects of the

business. All training programs begin with one essential ingredient: the basics of mcdonalds

operations.Founded in 1961, hamburger university has come a long way since mcdonalds opened their


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first training facility in the basement of a mcdonalds restaurants in elk groove village,illinois since that time they have moved hamburger university twice and watched the size ofclasses grow from an average size of about 10 to more than 200 per class.Today more than 65000 managers in mcdonalds restaurants have graduated from hamburgeruniversity, now located in a 130000 square foot, state of the art facility on the mcdonalds

home office campus in oakbrook, illinois, with a faculty of 30 resident professors.Because of the mcdonalds international scope, translators and electronic equipment enable

professors to teach and communicate in 22 languages at one time. Mcdonalds also managesten international training centers, including hamburger universities in england, japan,germany and australia.Mcdonalds marketing strategy worldwide. The first step in developing a marketing strategyis to understand the customers, enabling reaction to their changing needs and the dynamics ofthe market. To this end mcdonalds conduct several stages of in-depth customer research andaudits of the mcdonalds brand. The research involving both quantitative and qualitativeresearch methods. This research tells them a lot about how mcdonalds is perceived and abouttrends that are taking place in the market. They also conduct research into the local area of

their restaurants, into the general market environment, and into specific areas of theirbusiness, children for example.Mcdonald does also have a through understanding of their competition. They consider 3 basicareas.

1. The total eating out market gives the broadest competitive context and includes allrestaurants, hotels, pubs, and any other outlet where people eat.

2. They also focus on the quick service restaurant sector. This includes all the obviouscompetition and also fish and sandwich shops-any outlet where food is served quickly.

3. The final sector that they focus on is defined as the burger house sector. This looks at onlyat restaurants serving hamburgers including burger king, wimpy, wendys and allindependent burger bars.

A useful way to gaining knowledge of all aspects of the competition is the examination of thefour ps of the marketing mix: promotion, pricing, product, and place.

competitive promotion: before they communicate with their customers they must be awareof what the competitors are communicating so that they can create a beneficial difference

between mcdonalds and them.

competitive pricing: being in touch with the pricing of their competitors allows them toprice their products correctly, balancing quality with value.

competitive product: quick service restaurants are constantly expanding their menus. Thiscan be done on a short-term promotional basis or as a long term expansion strategy.


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Mcdonalds in India

India opened its doors to mcdonalds in october 1996. Ever since, family restaurants inmumbai, delhi, pune, ahmedabad, vadodara, ludhiana, faridabad, doraha, manesar, gurgaon,

jaipur and now recently new outlet was launched in allahabad (civil lines) have processed todemonstrate, much to the delight of all the customers, what the mc donalds experience is allabout.Jatia and bakshimcdonalds india is a joint venture company managed by indians. Mcdonalds usa, has

expanded its presence in india via 2 joint venture companies- connaught plaza restaurant andhardcastel restaurants manages operations and expansions across north india (delhi, jaipurand punjab)-led by vikram bakshi-and hardcastle restaurants, which is headed by amit jatia,manages operations and expansion across western india (mumbai, pune, and gujarat)focus on philosophywe take the burger business more seriously than anyone else.When mcdonalds founder, ray kroc made that memorable statement, he was letting the worldin on the philosophy and secret behind mcdonalds phenomenal success.

Quality, service, cleanliness and value

it is an unflinching mcdonalds ideology that the customer must always get quality products,

served quickly and with a smile, in a clean and pleasant environment and all at a fair price.

giving you qsc&v is top priority for us. All our products are prepared in the cleanest of

surroundings- incredible quality, impeccable service at affordable prices.

Mcdonalds indias expansion plans:

encouraged by the overwhelming response to the family restaurants, mcdonalds india has

spread its wings. Currently, mcdonald's has 76 restaurants - 26 in delhi, 3 in gurgaon, 4 in

noida, 3 in faridabad, 3 in ghaziabad & 2 in jaipur, 2 in ludhiana, 1 each in chandigarh,

meerut, lucknow, kanpur, mathura and manesar on the delhi-jaipur highway, the national

highway no 1 in karnal, doraha and in jalandhar. In addition to this, there are 18 restaurants inmumbai, 3 in pune, 1 in vadodara and 1 in ahmedabad. Mcdonald's also opened its doors to

south india with its first restaurant in bangalore in oct. 2004.

They have already invested 450 crores since their arrivals in india in1996. Out of its total

planned invested of rs 850 crores till 2003.

With its india operation showing signs of success, the united state food chain mcdonalds

corporation has sought its pound of flesh. The global food chain major has claimed initial

franchise fee of $45000 and five percent royalty fee of the gross sales from its operation inindia.


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Mcdonalds india pvt ltd has moved an application to the government seeking permission for

payment and remittance of the initial franchise fee and royalty to mcdonalds corporation.

The permission has been sought on two condition: mcdonalds india would pay an initial

franchise fee of $45000 on each of the mcdonalds restaurants already franchised or to befranchised, in the future, in india, and a royalty equal to five percent of the gross sales from

the operations of all its indian restaurants on a monthly basis to mcdonalds international.

The company hopes to break even in 2003. They currently serve around 3 million customers

a day and hope to grow at the rate 50% to 70% a year.

Respect for local culture

mcdonalds india has developed a special menu with vegetarian selection to suite indian

tastes and preferences.

Mcdonalds 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, they have re-formulated some of their products using spices favored by indians.

Among these are mcveggie burger, mcaloo tikki burger, veg pizza, mcpuff and chicken

mcgrill. They have also created eggless sandwich sauces for their vegetarian customers. Even

the soft serves and mcshakes are eggless, offering a larger variety to the vegetarian

customers. Moreover, the mayonnaise used as a topping in burgers in india, is completely

vegetarian.

Vegetarian products are prepared separately, using dedicated equipment and utensils.

Employees in the vegetarian and non vegetarian sections of the restaurants can be identified

by the different coloured aprons that they wear. This separation of vegetarian and non

vegetarian food products is maintained throughout the various stages of procurement from the

suppliers, cooking and serving.

Controversies in india

The french fries issue:

on may 4 2001, the outcry over the alleged use of beef flavoring in the preparation of french

fries by mcdonalds led to attacks on two outlets in mumbai and thane. Within hours of the

story breaking that mcdonalds in the us had been using oil with a beef extract for cooking its

fries the burger giants indian operation knew it had crises on its hands.

Amit jatia and his staff huddled together with pr specialization from corporate voice shan

wick, ad man from mudra ddb, corporate affairs and legal experts. Police security for all

outlets was first red alerted. Then, posters were made from office printers with the headline

100 percent vegetarian french fries in mcdonalds india. Below this were various bullets of


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information such as: no flavors with animal products/extracts are used for preparing any

vegetarian products in india. The posters were plastered overall the big m outlets.

The main imperative was to supply proof. On the day story broke in india, mcdonalds

submitted samples of the fries to leading laboratories in pune and mumbai, such as thecouncil of fairs business practices, as well as delhis central food and technical research

institute. Tests were quickly done by the bmc (bombay municipal corporation) and fda and

local political parties. It took a week but results were clear no beef or meat in the oil or

products- which were rapidly passed to the press. The results were also posted in the various

outlets and put as inserts in the daily papers in sensitive areas like bombays vile parle, charni

road and thane district.

All these marketing effort helped the big mac to avert the crises and regain the confidence of

the customers. For a few days after the news, the sales dropped drastically, but now, the

outlets are back to their usual footfalls and french fries remain the most favorite and most

selling product of mcdonalds in india.

Trans fatty acid

A bit of a problem because fatty acids and saturated fats in a high amount cause health

problems such as artery clogging and related diseases. Although yet to make profits, the

global food chain serves an exciting new combo for indian palates.

The marketing mix and market research

having identified its key audiences a company has to ensure a marketing mix is created those

appeals specifically to those people.

The marketing mix is a term used to describe the four main marketing tools (4ps):

using detailed information about its customers, mcdonald's marketing department can

determine:

1. What products are well received?

2. What prices consumers are willing to pay?

3. What tv programmes, newspapers and advertising consumers read or view?

4. What restaurants are visited?

Market research is the format which enables mcdonald's to identify this key information.

Accurate research is essential in creating the right mix to win customer loyalty.

In all its markets mcdonald's faces competition from other businesses. Additionally,

economic, legal and technological changes, social factors, the retail environment and manyother elements affect mcdonald's success in the market.


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Market research identifies these factors and anticipates how they will affect people's

willingness to buy. As the economy and social attitudes change, so do buying patterns.

Mcdonald's needs to identify whether the number of target customers is growing or shrinking

and whether their buying habits will change in the future.

Market research considers everything that affects buying decisions. These buying decisionscan often be affected by wider factors than just the product itself. Psychological factors are

important, e.g. What image does the product give or how the consumer feels when

purchasing it.

These additional psychological factors are significantly important to the customer. They can

be even more important than the products' physical benefits.

Through marketing, mcdonald's establishes a prominent position in the minds of customers.

This is known as branding.

Meeting the needs of key audiences

there are a limited number of customers in the market. To build long-term business it is

essential to retain people once they have become customers. Customers are not all the same.

Market research identifies different types of customers. For example:

a parent with two children might visit. Visits mcdonalds to give the children a treat.

The children want to visit mcdonalds. As it is a fun place to eat.

A business customer visit mcdonalds during the work day. As service is quick, the food

tastes great and can be eaten in the car, without affecting a busy schedule.

Teenagers visit mcdonalds the menu is affordable, and there is internet access in some

restaurants.These examples represent just a few of mcdonald's possible customer profiles. Each has

different reasons for coming to mcdonald's.

Using this type of information mcdonald's can tailor communication to the needs of specific

groups. It is their needs that determine the type of products and services offered, prices

charged, promotions created and where restaurants are located.

To meet the needs of the key market it is important to analyse the internal marketing

strengths of the organisation. Strengths and weaknesses must be identified, so that a

marketing strategy which is right for the business can be decided upon.

The analysis will include the:

company's products and how appropriate they are for the future.

quality of employees and how well trained they are to offer the best service to customers.

systems and how well they function in providing customer satisfaction e.g. Marketing

databases and restaurant systems.

financial resources available for marketing.

once the strengths and weaknesses are determined, they are combined with the

opportunities and threats in the market place. This is known as swot analysis (strengths,

weaknesses, opportunities, and threats).

The business can then determine what it needs to do in order to increase its chances of


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marketing successfully.

Strenghths (internal) weaknesses (internal)

e.g. The brand and the detailed market research to create the right marketing mix.

Mcdonalds has been around for a long time. (therefore important to keep innovating). Oppurtunities(external) threats(external)

e.g. Increasing numbers of customers looking for food that is served in a quick and friendly

way. New competitors. Changing customer lifestyles

Marketing objective

A marketing plan must be created to meet clear objectives. Objectives guide marketing

actions and are used to measure how well a plan is working.

These can be related to market share, sales, and goals, reaching the target audience andcreating awareness in the marketplace. The objectives communicate what marketers want to

achieve.

Long-term objectives are broken down into shorter-term measurable targets, which

mcdonald's uses as milestones along the way. Results can be analyzed regularly to see

whether objectives are being met. This type of feedback allows the company to change plans.

It gives flexibility.

Once marketing objectives are set the next stage is to define how they will be achieved. The

marketing strategy is the statement of how objectives will be delivered. It explains what

marketing actions and resources will be used and how they will work together.

Mcdonalds product

Mcdonalds concentrated on studying the indian culture, its value-systems and its influence in

food consumption decision making. It found that although a substantial proportion of the

populations were non-vegetarians, they stuck to mostly fish, mutton and chicken. Muslim

took beef but though pig meat to be dirty; hindus preferred neither beef nor pork; christian

took both beef and pork. Mcdonalds decided, for the first time in their business history, to

drop ham and beef burger from their menu. Two years back, they even excluded mutton

burgers from their offerings.

Mcdonalds developed a menu especially for indian with vegetarian selection to suite indian

taste. It introduced products like mctikki aloo for the punjabi taste buds. Mcdonalds has also

re-engineered its operation to address the special requirements of a vegetarian menu. The

cheese and cold sauces used in india is 100 % vegetarian.

Mcdonalds are committed for giving customers wholesome, healthy, and delicious food.

They ensure that the cooking area as well as cooking equipment for vegetarian products is

visibly segregated from the non vegetarian sections. Whats more- their crew members

cooking vegetarian food items are identifiable by their green aprons.In a survey conducted by the restaurateur, it was found that the vegetarian menu was more


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popular than the non-vegetarian ones, (see figure below), with french fries being the most

sought after.

Favorite product

popularity of veg burger and non veg in mcdonalds

veg menu

mcveggie

breaded fried vegetable patty consists of peas, carrots, green, beans, red capsicum, potatoes,

onions, rice and seasoning. The burger also includes lettuce, egg less mayonnaise in a toasted

sesame seed bun.

Mcaloo tikki

fried breaded potato and peas patty that is flavored with a special spice mix, fresh tomato

slices, onion, and veg tomato mayonnaise between toasted buns.

Paneer salsa wrap

a traditional mexican soft flat bread that envelops crispy golden brown cottage cheese

encrusted with a mexican cajun coating, and a salads mix of iceberg lettuce, carrot, red

cabbage and celery, served with egg less mayonnaise, tangy mexican salsa sauce and cheddar

cheese.

Crispy Chinese

a crispy patty that is seasoned with oriental flavors, topped with a creamy vegetarianschezwan sauce and crunchy sauce iceberg lettuce and served between two fresh buns.

Pizza mcpuff

mixed vegetables (carrot, beans, capsicum, onion and green peas), mozzarella cheese mixed

with tomato sauce and spice blend coated with a savory dough

veg mc curry pan

(broccoli n mushroom)

a rich bchamel eggless sauce mixed with exotic vegetables like broccoli, baby corn,

mushroom, red capsicum and freshly baked on rectangular spiced bread with a cheese

topping.

Non veg menu

chicken maharaja mac

two grilled chicken patties with a smoke flavored mayonnaise, fresh onions, tomatoes,

processed cheddar cheese in a toasted sesame seeded bun.

Mcchicken

specially seasoned, breaded and fried chicken patty, with lettuce, veg mayonnaise and toasted

sesame seed bun.


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Filet-o-fish

fried, breaded fillet of fish, with a half slice of processed cheddar cheese, special tartar sauce

served between steamed buns.

Chicken mexican wrapa 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 with eggless mayonnaise, tangy mexican salsa sauce and cheddar cheese.

Chicken mcgrill

grilled chicken patty flavored with mint mayonnaise, and dressed with fresh onions and

tomatoes in a toasted bun.

Chicken mccurry pan

(chicken n tomato)

a blend of italian tomato curry sauce tempered with thyme, basil and oregano mixed with

chicken and capsicum, freshly baked on rectangular spiced bread and topped with cheese.

Veg and non veg product

mcdonalds world famous french fries are produced only from the best quality potatoes.

These potatoes are cut, blanched and processed lines to ensure maximum retention of

nutrients. These fries are cooked at the plant and our restaurants in 100% vegetable cooking

oil. The only thing they add to fries is salt.

Potato wedges

their new potato wedges are produced only from the best quality potatoes. These potatoes arecut, blanched and processed on state of the art processing lines to ensure maximum retention

of nutrients. They are cooked at plant and our restaurant in 100% vegetable cooking oil.

Beverages

Frozen deserts

Meal:

at mcdonalds they continually review and improve their menu offering to make sure that notonly do they meet their customers expectation, but they also exceed them. As a result, they

have introduced a series of ongoing value options to suite their customers different needs.

Value meal:

value meals consist of a burger; fries and a drink are available in 3 sizes.

Small value meal medium value meal large value meal

burger burger burger


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+ + +

potato wedges medium fries large fries

+ + +

small drink medium drink large drink

we can also substitute the drink in tour value meal with a mc shakes, coffee, tea, hit

chocolate, vanilla coke, ice tea or cold coffee by paying the difference.

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 mcshakes by paying the difference.

Family value meal: value for money combination for the entire family.

Pick any 2 of these (mcveggie, filet-o-fish, mcchicken)

+

choose a happy meal (mcaloo tikki or chicken mcgrill+ regular coke+toy)

+

get 2 small fries

+

add 2 regular cokes

home delivery

11:00 am to 11:00 pm

Mcdonalds india is one of the few countries that provide a home delivery service. In western

india, this service is currently available at select localities. However, they do plan to extend

this service to all restaurants.

All we have to do is dial our telephone number - 6600 0666 (pune residents please prefix

9522) and place the order. There is no restriction on the minimum order for home delivery;

however there is a fee of rs 15 per order as delivery charges, irrespective of the size of the

order. The restaurants will deliver to neighbourhoods which are up to 10 minutes away by

road. The reason for this limit being that we need to ensure that they do not compromise on

the quality of their food. The mapping of the delivery area is such that even during peak

hours our customers receive food that is hot and fresh.

Price


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The customer's perception of value is an important determinant of the price charged.

Customers draw their own mental picture of what a product is worth. A product is more than

a physical item; it also has psychological connotations for the customer.

The danger of using low price as a marketing tool is that the customer may feel that quality isbeing compromised. It is important when deciding on price to be fully aware of the brand and

its integrity. A further consequence of price reduction is that competitors match prices

resulting in no extra demand. This means the profit margin has been reduced without

increasing sales.

Physical evidence:

the physical evidence factor of all the mcdonalds centers are the signboards, golden arches,

buildings, interiors, colours combination of yellow and red, clean facilities, visible food

preparation section etc. The site shown in the picture is 52 years-old and is the oldest in the

worldwide chain of 20000 restaurants and the last one with red-and-white stripped tile

exterior. After opening in 1953, it immediately became the standard for the fast food

franchises across the country. The building and its 60-foot high neon sign with speedee the

chef are eligible for listing on the national register of historic.

Promotions

The promotions aspect of the marketing mix covers all types of marketing communications.

The methods include advertising, sometimes known as 'above the line' activity. Advertising is

conducted on tv, radio, cinema, online, poster sites and in the press (newspapers, magazines).

What distinguishes advertising from other marketing communications is that media owners

are paid before the advertiser can take space in the medium. Other promotional methods

include sales promotions, point of sale display, merchandising, direct mail, telemarketing,

exhibitions, seminars, loyalty schemes, door drops, demonstrations, etc.

The skill in marketing communications is to develop a campaign which uses several of these

methods in a way that provides the most effective results. For example, tv advertising makes

people aware of a food item and press advertising provides more detail. This may be

supported by in store promotions to get people to try the product and a collectable

promotional device to encourage them to keep buying the item. It is imperative that the

messages communicated support each other and do not confuse customers. A thoroughunderstanding of what the brand represents is the key to a consistent message.

The purpose of most marketing communications is to move the target audience to some type

of action. This may be to: buy the product, visit a restaurant, recommend the choice to a

friend or increase purchase of the menu item.

Key objectives of advertising are to make people aware of an item, feel positive about it and

remember it. The more mcdonald's knows about the people it is serving the more it is able to

communicate messages which appeal to them.

Messages should gain customers' attention and keep their interest. The next stage is to get

them to want what is offered. Showing the benefits which they will obtain by taking action, isusually sufficient. The right messages must be targeted at the right audience, using the right


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media.

Effective communication

for example, to reach a single professional woman with income above a certain level, it may

be better to take an advertisement in cosmopolitan than woman's own. To advertise tomothers with children, it may be more effective to take advertising space in cinemas during

disney films. The right media depends on who the viewers, readers or listeners are and how

closely they resemble the target audience.

The media magic

you deserve a break today, so get up and get away- to mcdonalds

the above break commercial was one of the initial commercial themes adopted by mcdonalds

united state which became the best known commercial song on television and, in fact, the

most identifiable advertising themes of all time.

Needham was one of the first advertising agencies of mcdonalds which made many

revolutionary advertisements for the company. Needhams advertising formula became know

in mcdonalds as food, folks, and fun and it remains the backbone of all the chains

advertising campaigns.

Mcdonalds is now, one of the worlds mightiest consumer marketers. Its brand valuation is

$25 billion, making the ninth most valuable brand in the world.

Why mudra in india?

Ddb needham and leo burnett are the advertising agencies of mcdonalds are worldwide.

Hence, when they came to india, the subsidiary of both the companies pitched for the account

and mudra the indian partner of ddb needham got the account. Since the very beginning

mudra has been the advertising agency of mcdonalds india.

The mudra team meets up with mcdonalds marketing team on a regular basis and they have a

debate and discussion on the new strategies to be adopted.

Mcdonalds uses various medias like television, hoardings and bus shelters. They are almost

out of print ads. Mcdonalds also sponsor many television programmers like kaun banega

crorepati, children shows etc.

Even the paper mats on the trays at the mcdonalds are designed as per the ongoing marketing

strategy of mcdonalds. For e.g.: during the french fries issues, all their paper mats had

description of the burgers, how the vegetarian products are made etc, to regain the confidence

of the customers. The placing of the pamphlets, banners in and around the outlets is decided

upon by the area sales manager and the operations manager, in co-ordination with the

restaurant manager. For e.g. : currently they have the bugs life theme going on wherein they

give free bugs life toys with the happy meal. All the outlets are decorated with the pictures ofthe toys and even the paper mats have pictures of the toys on them. The hoardings around the


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outlets carry the same theme.

Under the recent research conduct by mcdonalds they found that the consumers would have

a clear remembrance of the 80-20 board. This board also helps give a feel of the product

before it is purchased.The aim is to make things easier for the customer to understand what the 39, 49, 59, 79, 89

rupee option are. And of course it is easier for mcdonalds also to give back one rupee change

so that the service can be quick.

Sales promotion, marketing, and merchandising

enhance the mcdonalds image of quality, service, cleanliness and value globally in via

heavy media advertising and in-store merchandise promotions funded with fees tied to a

percent of sales revenues at each restaurants.

using freebies, soft toys, key chains, etc to attract kids.

they ideally make use of the fad in the market to attract consumers. They often have tie ups

with movie and television cartoon character.

continue to use value pricing and extra value meals to build customers traffic.

use ronald mcdonalds to create greater brand awareness among children, and the mc

prefix to reinforce the connection of menu items and mcdonalds.

Marketing strategy of mcdonalds in india

mcdonalds growth strategy is based on the three elements

stage 1: building the brand

stage 2: awareness of the products

stage 3: gunning for market share

stage 4: building the brand

the stage fright advertisement (we make you smile!)

The initial marketing strategy was focused on the brand name in india. Mcdonalds wanted tobring an awareness of its presence, of the arrival of mcdonalds in india. Hence, even thought

it had presence only in 2 cities, delhi and mumbai, it still went in for nationwide advertising.

The first advertisement of the mcdonalds in india was of a child getting tensed in a fancy

dress competition and forgetting his lines. His father then takes him to mcdonalds where he

forgets all his fears and gives a brilliant performance appreciated by all in the restaurant.

Every child in india could relate itself to the advertisement and it gave the parents the idea

that if their child were unhappy, taking him to mcdonalds would definitely bring a smile to

his face.


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When vikram bakshi was asked how did the idea for the first advertisement come up, his

reply was:

the idea came from the experiences of what we saw happening at the restaurants. I think one

of the things that recent research has shown is that 69 percent of the kids prefer us. That kindof response is overwhelming! We have seen over a period of time that some of the things we

set out to do in 1997-98 are paying off now. Really the kids are very happy to be here. They

find it a hassle free experience. Nobody to say, sit down! Or dont move! He is no longer

told that if he runs around he will bang into someone and spill things over. He doesnt

encounter adults all the time like does in specialty restaurants waiters who are in their thirties

and forties, with faces which say, keep out of my way what he sees when he comes into

mcdonalds that is a place that is brightly lit there are no dark corners that he needs to be

scared of the people working here are all young. He can walk up to the counter and for

whatever he wants, someone will talk to him, take him seriously, look after him ask him

question.

He has a play area where he can run around. And clearly even parents come in with their

children here. I have seen many instances where parents are also enjoying themselves.

There was this lady i met and she asked me, what is this that you do to children? So i said,

what do we do meaning? She said, my two year old recognizes mcdonalds. When i took

her to wimpys the other day she refused to enter the place, saying it was not mcdonalds.

Stage 2: awareness of the product

mcdonalds then felt that it needed to highlight its product along with the experience. Hence,came the series of advertisements highlighted on the products and new launches of

mcdonalds. Mcdonalds wanted the customer to know that they have something for

everybody, be it children or adult, vegetarian or non- vegetarian. The advertisements in these

series were:

the sleeping couple: in the sleeping couple advertisement the husband is shown dreaming

about the various products of mcdonalds. Anyone watching the advertisement felt like going

to mcdonalds right away.

the police and thief: the thief is on a run from the police but makes a stop at mcdonalds tohave the new mc pizza puff and the chicken mcgrill.

the barber and the customer: the customer is getting himself shaved when he hears about

the launch of mc pizza puff and chicken mcgrill, and runs to the nearest mcdonalds half

shaved.

the runaway bridegroom: a couple is getting married when the bridegroom runs away in

the middle of the marriage to have the new mc pizza puff and the chicken mcgrill and the

whole family follows him.

veg surprise: the latest commercial, around 3 of them, are focused on the launch of the new

veg surprise for rs.17 only with the punch line yakein hi nahin hota


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stage 3: gunning for market share

the latest advertisements of mcdonalds are a transition from the first strategy in the initial

advertisements; mcdonalds was attempting to build a relationship with the customers. But

now the advertisements portray that the relationship has already been established. Its got the

mind share, and its now gunning for market share.

The add campaigns are trying to portray mcdonalds as a constant companion, which makes

people feel special. The recent commercial highlighted the bond that mcdonalds shares with

people. It shows a child is once again reassured.

Stage shifting sleeping traffic others none

fright house couple policeman

the recent ad campaign is targeting the indian father, as he is still looked upon as a decision

maker. The new positioning: mcdonalds is a special place where caring dads take their

families to give them a great time. So its a clear positioning as a family restaurant.we are

positioning ourselves as the welcoming and affordable family restaurant committed to values

of quality, fun and excitement. It is also a restaurant which makes you feel special and makes

you smile says amit jatia.

Miscellaneous advertisements

there were many advertisements made by mcdonalds emphasizing on the schemes, the prices

and various other aspects. Some of them were:

the itch karo schemes: this advertisement was to promote the scheme of mc donalds

where in you could win prizes right from a small cadbury to a television and bike.

soft serve cone: there were many advertisements focusing on the rs.7 soft serve cone. One

of them was of a traffic policeman who gets tired of directing the customers to the mc

donalds outlet? This advertisement if of the most liked and remembered advertisements of

mc donalds.

happy meal: there are various advertisements relayed during children programmes on the

television and also children channels emphasizing on the happy meals and the toys you get

with them.Place, process and distribution

in setting up its operating system, mcdonald' displayed no particular genius just tenacity to

survive today, all fast food chains build central organization to develop standards of operation

and train the licensees to meet them. They must be responsible for picking supplier and

setting specifications on all food products. And finally, they must monitor the system to

determine that the franchisees are following standards and that the suppliers are meeting

product specification. As logical and basic as that the sounds, it was a revolutionary concept

in food franchising when mcdonalds took that approach in the 1950s.


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In fact, mcdonalds greatest impact on american business is in the areas that consumers do

not see. In their search for improvement, mcdonalds operations specialist moved back down

the food and equipment supply chain. They change the way farmers grow potatoes and the

way companies process them. They altered the way ranchers raised beef and the way the meet

industry makes the final product. They invented the most efficient cooking equipment andpioneered new methods of food packaging and distribution.

The mcdonalds in india followed the same tradition. Long before the first maharaja mac was

served up, mcdonalds was here in india, setting up the elaborate cold chain that supplies all

the restaurants in the country. It took six years from 1991 when the work started, until the

system was in place. we spent rs.50 crore- even before the first restaurants were set up in

1996, amit jatia confesses.

The supply chain overvies

Did you know that every year, rs. 50000 crore worth of food produce is wasted in india? This

is mainly because of the lack of proper infrastructure for storage and transportation under

controlled conditions. The supply chain age and transportation under controlled conditions.

Mcdonalds is committed to providing quality products while supporting other indian

businesses. And also, they spent a few years setting up unique supply chain, even before they

opened their first restaurant in india.

A supply chain is a network of facilities includingmaterial flow from supplier and their

upstream suppliers at all levels, transformation of materials into semi-finished and finished

products, and distribution of products to customers and their downstream customers at all

levels.

When there is a balance in the finished product ordering, the supply chain operates at its best.

Any major fluctuation in the product ordering pattern causes excess/ fluctuating inventories,

shortages / stockouts, longer lead times, higher transportation and manufacturing costs, and

mistrust between supply chain partners. This is called the bullwhip effect.

The supply chain objectives are assured supply, low cost and safe and consistent quality.During 1990, when they first set out to their infrastructure, they found that the cold chain

system was non existent. There were only 200 refrigerated trucks across the country and they

were few cold storages. The cold storages were prilimarily used by the ice cream sector and

they were of very poor quality. The cold chain system set up involved the transfer of

technology from mcdonalds in the us and its international partners. The standards also

strictly adhere to indian government regulations on food, health and hygiene.

Currently, mcdonalds distribution centers (dcs) are in touch with all the suppliers through

electronics interconnectivity (e-mail). The supply chain converts the 15- days lead-time from

the suppliers to a one day ordering lead-time for the restaurant.The products are picked up in temperature-controlled vehicles by a third-party logistics


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company a delivered at the dsc. The dsc then supply to restaurants on a need-basis. All

products go through the quality control checks before reaching the customer.

According to hardcastle restaurants national supply chain product manager mr. Saravanan:

traditionally, any supply chain functions through suppliers, stockiest, distributors, primarywholesalers, secondary wholesalers and retailers. However, at mcdonalds india, the supply

chain involves only producers, distributors and retailers.

Cold chain:

the cold chain is necessary to maintain the integrity of food products and retain their

freshness and nutritional value. The cold chain is an integral part of the supply chain.

Setting up the cold chain has involved the transfer of state of the art food processing

technology by mcdonalds and its international suppliers to pioneering indian entrepreneurs,

who have now become an integral part of the cold chain.

The term cold chain describes the network for the procurement, warehousing transportation

and retailing of food products to be used controlled temperature. Mcdonalds restaurants store

products to be used on a daily basis, within a temperature range of 18c to 4c. About 52% of

our products need to be stored under these conditions before they are used

the mcdonalds supply chain

after they receive the stockfrom the suppliers, they implement on planning for material

requirement as per the demand from the mcdonalds restaurants sand send orders to suppliers.

A similar copy of the order is also sent for advanced intimation to be made to the third party

logistics company. Air freight ltd. The dc will considerstockin hand, present consumption,

shelf life of the products, truck capacity and lead time. Meanwhile, suppliers produce and

keep products ready as per the demand from the dc.

Mcdonalds post harvest facilities include a cold chain consisting of a vacuumed pre- cooling

room to remove field heat, a large cold room and a refrigerator van for transportation where

the temperature and there relative humidity of this crop is maintained between 1degree

celsius and 4degree celsius and 95 percent, respectively. Vegetables are stocked in the pre-

cooling room within half an hour of harvesting. The pre-cooling room ensures rapid cooling

and cold room to two degrees celsius within 90 minutes. The pack house, pre-cooling cold

room are located at the farms itself, ensuring no delay between harvesting, pre-cooling,

packaging and cold storage. Thus, zero percent spoilage and freshness are being maintained.

Mcdonalds india sources food products through 45 different suppliers and 10 key local

companies. The key local suppliers include: vista processed food (vpd), trikaya agriculture,

dynamix dairy industries, radhakrishna food land, cremica, shah bettor and sons, global greencompany and bector foods.


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Another striking factor of mcdonalds is that it never has any written contracts with the

suppliers. The relationship is only based on the trust. The mcdonalds team help the suppliers

develop, and hence they assured that mcdonalds will stick to them through thick and thin.

The wisdom of local sourcing

mcdonald's has always been committed to sourcing its requirements from local suppliers and

farmers. This assurance is rooted in the philosophy of our company's founder, ray kroc. He

firmly believed in mutual benefits arising from a partnership between mcdonald's and the

local businesses, thus ensuring that mcdonald's commitment to growth was mirrored by that

of its partners.

In keeping with this belief, we have carefully identified local indian businesses that take pride

in satisfying customers by presenting them with the highest quality products. Adherence toindian government regulations on food, health and hygiene were a top priority.

Mcdonald's india today purchases more than 96% of its products and supplies from indian

suppliers. Even our restaurants are constructed using local architects, contractors, labour and

maximum local content in materials.

The relationship between mcdonalds and its indian suppliers is mutually beneficial. As

mcdonalds expands in india, the supplier gets the opportunity to expand his business, have

access to the latest in food technology, and get exposure to advanced agricultural practices

and the ability to grow or to export.

Vital links in our cold chain

all suppliers adhere to indian government regulations on food, health and hygiene while

continuously maintaining mcdonald's recognised standards. As the ingredients move from

farms to processing plants to the restaurant, mcdonald's quality inspection programme (qip)

carries out quality checks at over 20 different points in the cold chain system. Setting up of

the cold chain has also enabled us to cut down on operational wastage

hazard analysis critical control point (haccp) is a systematic approach to food safety that

emphasizes prevention of illness or presence of microbiological data within oursuppliers

facilities and our restaurants rather than its detection through inspection. Based on haccp

guidelines, control points and critical control points for all mcdonald's major food processing

plants and restaurants in india have been identified. The haccp verification is done at leasttwice in a year and certified.

Mechanism of each supplier

amrit food - supplier of long life uht milk and milk products for frozen desserts

amrit food, an iso 9000 company, which manufactures widely popular brands - gagan milk

and nandan ghee at its factory at ghaziabad, uttar pradesh has:

state-of-the-art fully automatic machinery requiring no human contact with product, for

total hygiene.

installed capacity of 6000 litres / hour for producing homogenized uht (ultra hightemperature) processed milk and milk products.


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strict quality control supported by a fully equipped quality control laboratory.

Radhakrishna foodland - distribution centre

an integral part of the radhakrishna group, foodland specializes in handling large volumes,

providing the entire range of services including procurement, quality inspection, storage,

inventory management, deliveries, data collection, recording and reporting. Salient strengthsare:

a one-stop shop for all distribution management services.

dry and cold storage facility to store and transport perishable products at temperatures up

to - 22 degrees celsius.

effective process control for minimum distribution cost.

Trikaya agriculture- supplier of iceberg lettuce

which is an intrinsic part of the cold chain and supplies fresh lettuce to mcdonalds at the rate

of 300 metric tonne per annum. The farm has the total capacity to produce 1000 metric tonne,

per annum.

According to trikaya agriculture pvt ltd farm manager mr. M e gouda; initially, lettuce could

only be grown during the winters. With mcdonald partnership, trikaya is now able to grow

the crop all round the year. Their farm infrastructure features:

a specialized nursery with a term of agricultural experts.

drip and sprinkler irrigation in raised farm beds with fertilizers mixing

plant.

pre-cooling room and a large cold room for post harvest handling.

refrigerated truck for transportation.

India, now supplies lettuce to five star hotels, flight kitchens, clubs and offshore catering

companies. And it will soon be exporting to international markets, especially to mcdonald

asia pacific and middle east operations.

Dynamix diary- supplier of cheese

in some cases, the indian suppliers had the technology but no market for the products they

produced. For example, dynamix diary through its relationship with mcdonalds was

introduced to a large consumer to supply milk case in and other milk derivatives. The two

companies entered into a business relationship resulting in an initial export order ofapproximately us$ 12 million per year with the potential to increase.

After the food products are processes at their respective companies, they are received and

stocked at the mcdonalds distribution partner- the rs.80 crore radhakrishna food land ltd to

ensure that all mcdonalds restaurants are supplied without interruption.

Dynamix has brought immense benefits to farmers in baramati, maharashtra by setting up a

network of milk collection centers equipped with bulk coolers. Easy accessibility has enabled

farmers augment their income by finding a new market for surplus milk.

The factory has:


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fully automatic international standard processing facility.

capability to convert milk into cheese, butter/ghee, skimmed milk powder, lactose, casein

& whey protein and humanized baby food.

stringent quality control measures and continuous research & development.

The company however failed with potato farming, despite spending $10 million in uttarpradesh. But it claims that by 2004, mcdonalds will source potato from india for french fries.

with all 80 restaurants in place, we expect our consumption of french fries to be 10000

metric tones and then it makes economics sense to grow processed grade potatoes in india,

says jatia. However. The newly introduced potato wedges are being made from potatoes.

Long wrong bad other no

queues order music problems problems

problem faced in the visit to mcdonalds

some reaction of the customers to continuous surveys are given below:

vista processed foods pvt. Ltd. - supplier of chicken and vegetable

range of products

based in taloja, maharashtra, with technical and financial support extended by osi industries

inc, us, and mcdonalds corporation inc, us- operates infrastructure and support services. It

supplies vegetable patties, chicken patties, pies and pizza puff at the rate of 30 metric tonne

per month to mcdonalds india.

Mcdonalds vegetable and chicken patties are processed through the latest food processingtechnological plant at vista has installed hi-tech equipment for the purpose of deboning,

blending, coating, passing the patties through the stern breading machine, frying and freezing.

Vistas pie line has the sophisticated, computerized rondosheeter (the machine where

processing takes place) in operation, which includes hi-tech refrigeration plants for the

manufacturing of frozen foods at temperature as low as minus 35 degrees

in short

ingredient

supplier

cheese

dynamix dairy industries, pune

dehydrated onions

jain foods, jalgaon


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iceberg lettuce

trikaya agriculture, pune mina agritech, new delhi, ooty farms and orchids, ooty vista foods,

taloja kirten foods, taloja

chicken patty

vista foods, taloja

vegetable patty, veg nuggests, pineapple pie, apple pie

kirten foods, taloja

chicken dress

river dale, talegaon

buns `

cremica industries, phillaur

egg less mayonnaise

quaker cremica pvt ltd, phillaur, punjab

sesame seeds

ghaziabad

fish fillet pattiesamalgam foods ltd, kochi

vegetable for patties

finns frozen foods, nasik jain foods, jalgaon

mutton and mutton patties

al-kabeer, hyderabad

people

we value you, your growth and your contributions.

Mcdonalds people promise

opportunity: work at mcdonalds means opportunity. Many of their corporate employees

started as members of a restaurant crew. They include president and ceo charlie bell; claire

babrowski, corporate senior executive vice president and chief restaurants operation officers,

and mats lederhausen, managing director, mcdonalds ventures. Vice chairman jim skinner

started as a restaurant manager trainee. Their commitment to opportunity includes support for

their employees education.

Mcdonalds corporation, usa, had undertaken effort to promote itself as an equal opportunityemployer, ensuring that employees and job applicants are selected, trained, promoted and


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treated on the basis of their relevant skills, talents and performance and without reference to

race, colour, nationality, ethnic origin, gender, sexual orientation, marital status, age, or

disability.

They have put in place a diversity policy, which seeks to:

promote and sustain a working environmentregards all of its employees as member of a team where everyones opinion is valued and

everyone is regarded as equal in status and must always be treated with respect

the person responsible for this policy is the human resources and training director, but it is

the responsibility of all employees, particularly managers and area management, to challenge

questionable behavior and practices

the human resources department monitors the effectiveness of the policy at regular

intervals and takes corrective action as necessary to ensure that it is being complied with

employees who feel that they have been unfairly treated in any way regarding this policy

are encouraged to use the remedies outlined in the companys handbooks.

Mcdonalds india was challenge to replicate the same policy in india. It sought to provide

quality employment and long-term careers to the indian people. The average mcdonalds

restaurants employees more than 100 people in 25 different positions- from cashier to

restaurant manager. There are close to 2000 employees currently in mumbai and delhi.

manpower planning: the scheduling manager is in charge of the manpower planning in the

outlet. They have full timers who work for 9 hours and part timers who work for 3-4 hours. If

they expect more customers (during holidays etc) then more part timers are recruited.

recruitment: done by reference of the employees in the outlet or other outlets.

organization and salary structure:

training and development: mcdonalds world class training inputs have been implanted in

india. Training is a continues process at the mcdonalds. It is the responsibility of the training

squad to train the other employees. The training squad maintains logs of the employees,

which clearly states that which employees are to be trained, and on what station.

the 3/30 plan: according to this plan, the training squad has to train 3 people on three

different stations in a month. One employee is trained on one station, say the vegetarian

station for 10 days, and then for the non-vegetarian station for the next 10 days and so on.

This is done till the employees become proficient on the station and its capable of handling

the station on his own.

Performance appraisal:every employee joins in as a trainee crew where he is given the green badge. After a period of

3 months, the employees are checked for the health safety, cleanliness and sanitation after

which he is given the yellow badge. After receiving the yellow badge, there are 5 station that

the employees has to be proficient in:

1. Backroom cleaning: this includes mopping the floors. Clearing the tables, maintenance of

the machines etc.

2. Fried products: this involves frying of the french fries, pizza puff etc. To the right degree.3. Buns, dress and grill (bdg): this includes grilling the buns and dressing them properly.


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There is a time limit given to perform every function and the employees have to perform it

efficiently, with minimum wastages.

4. Counter: the last station is of the counter handling. The employee should be able to

converse with the customers courteously and take proper orders.

5. Personality: the last criteria are the overall personality of the employee. Mcdonalds beingin the service industry, having smart and courteous employees is of utmost importance to

them.

the productivity records have to show 90+ points. The productivity is checked in various

ways. For example- mcdonalds has a policy of serving each customer within one minute on

an average. The productivity at the counter is checked by the time taken by an employee

to complete the order. For example, if rajesh (a serving-counter in charge) has taken shift,

then the shift running manager will speak to him at the end of the shift, and ask him the

reason and accordingly ask him to try and improve. If this trend continues, rajesh is trained

further.

after the productivity record shows 90+ points, the employees have to appear for a

documented written test where they must get more than 90 marks.

having got a 90+ average of the two, the employees is promoted to the next hierarchy level.

Shifts:

mcdonalds have different shifts for managers, full time employees and part time employees.

Their main shifts consist of:

open shifts: 7:00 am to 4.00 pm

mid shifts: 12:00 am to 9.00 pmclose shifts: 3.00am to 12.00 pm

mcdonalds have a special night shift where the managers have to account for the days

transactions, inventory, wastages etc. The night shifts for the managers is from 11.00pm to

8.00 am.

they also have night shifts for the employees where the scrubbing of the entire outlet takes

place. Also, each and every machine is opened and cleaned. The night shift for the employees

is from 7:00 pm to 4:00 am.

both the night shifts i.e. For the managers and the employees are done on rotation basis.

Female employees are generally not allowed to do the night shifts.Holiday and breaks:

the crew members are allowed to take 4 holidays in a month and the managers can take 6

holidays in a month.

if the employee is working for 7 hour shift, he gets a break for 1 hour after 4 hours and if

an employee is working for less than 7 hours, then he gets a break for hour.

Employee grievances:

mcdonalds call it as the rap sessions. Once in a month, the employees can vent theirproblems to the area sales manager is not included in the rap sessions.


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High employee turnover

mcdonalds in india faces a huge problem of high employee turnover recruiting and training

employees is an ongoing process, which never stops at any of the outlets. On an interview

with one of the ex-employees, it was found that the main reasons for the high employee

turnover are: the profile of the employees mainly consists of college students who want to use their spare

time and get some fast money. As a result the turnover is extremely high during the exam

seasons, and similarly, the availability is high during the holidays seasons.

the employees feel that there is very slow growth in the company. It takes one 3 months

just to get the yellow badge, and even after that, the promotions come very slow.

the salary packages are not very attractive.

Despite protest from mcdonalds corporation, usa, websters have included the word mcjob

in its dictionary. It stands for those jobs that are dreary, repetitive and with no scope for value

addition or growth. Its origin lay in the slang description of jobs available at mcdonalds. The

general impression of the workers was that after a few years in mcdonalds, it left them

incapable of being absorbe.

Productivity and quality

There is a concept known as the haccps standing for hazardanalysis and critical control

points is being followed in mcdonalds. There are some key areas identified by mcdonalds, a

list of which is circulated amongst its supplier that have to be strictly adhered to by them. For

example, the patties for the burgers have to be stored at a certain level of temperature.

Surprise checks are made by the mcdonald employees to check if all the quality standards are

being followed. Mcdonalds success is the result of its dedication to operating regimen. More

than any other early competitors in fast food, mcdonalds was deadly serious as it went about

the task of defining its operations, setting basic standards of achievement, and monitoring

suppliers and operators to determine whether standards are being met.

Personal commitment to quality, service and cleanliness is legend. Qsc long ago became the

most popular acronym among fast food operators, but the phrase originated as the use of qsc

to distinguish mcdonalds from all other competitors in an industry that was otherwise rife

with duplication. Qsc has now changed to qsc & v, v stand foe value for money.

Training

mcdonalds invests significant resources in training at every level. Every day, around theworld, restaurants crew members receive the job training and coaching in skills and

procedures essential to their work.

classroom courses developed and led by training experts prepare outstanding restaurant

employees for advancement.

hamburger university provides operations and business management training for restaurant

managers, franchisees, mid level managers, and corporate executives. Courses are offered at

seven campuses around the world, with materials available in 28 languages and

simultaneously translations in up to six languages.

a new computer-based training system is bringing rigorous. Interactive leaning experiencesto crew members and managers right in the restaurants. This award-winning e-learning


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strategy will eventually be in all mcdonalds markets worldwide and include their entire

career-long curriculum.

Ronald mcdonalds

mcdonalds mascot, ronald mcdonalds is a magical and funny clown and every childs bestfriend. But ronald is not only fun and games-he is also involved in some series stuff. One of

his responsibilities is to support mcdonalds charity initiatives- something that he carries out

very sincerely- and deliver the brands message of commitment to the community.

So dont like australia and uk, where mcdonalds has its presence since decades, many of the

marketing strategies have been focused on ronald mcdonalds and his friends like hamburger,

grimace etc. Ronald mcdonalds is a prominent figure in the childrens life of those countries.

The very first ronald mcdonald was the famed weatherman willard scott. In the very first

ronald mcdonald commercial, with willard scott as ronald (c.1960) he actually says

something to the effort of i know youre not supposed to talk to strangers, kids, but its okay

to talk to me, because im ronald the hamburger loving clown! Originally he wore shoes

made of buns, a cup on his nose, and a hat with a hamburger meal on it. Soon this was

dropped for the more familiars clown outfit.

But in india, none of the advertisement currently focuses on ronald mcdonald. The main

reason for this, the company is still trying to build the brand loyalty and awareness in india. It

is still in its developing stage and cannot focus on many aspects at the same time.

Social marketing

mcdonalds believes in giving back you the community in which they do business. Besides

commercial marketing mcdonalds also undertakes many social drives to build brand loyalty

among the customers. Ronald mcdonald house charities (rmhc) work to improve the health

and well being of children by awarding grants to organizations and supporting 206 ronald

mcdonald houses worldwide.

Ronald mcdonald house charities

mission and programs

a strong mind. A strong body and a safe, supportive place to grow. These are things that

every child needs- and deserves- to have. Helping to provide these things is what we do.

By creating, finding and supporting programs that directly improve the health and well being

of children, ronald mcdonald house charities is working to better the lives of children and

their families around the world.

But theres more we need to accomplish. So click on a specific programs link to find out whatwe do, how we do it, and more importantly- how you can help.


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Ronald mcdonald house

A home-away from home

the idea behind ronald mcdonald house is simply provide a home away from- home for

families of seriously ill children who are receiving treatment at nearby hospitals. The ronald

mcdonald house provides a comfortable, supportive alternative for these families. It serves as

a temporary residence near the medical facility where family members can sleep, eat, relax

and find support from other families in similar situations. In return, families are asked to

make a donation ranging from $5 to $20 per day; if that isnt possible, their stay is free.

Ronald mcdonald care mobiles are on the roadsince 2000, ronald mcdonald care mobiles have provided cost-effective medical, dental and

educational services to under-served children in their own communities. Rmhc is planning to

grant 50 ronald mcdonald care mobiles programs by the end of 2005.

Ronald mcdonald family rooms

an extensive of the ronald mcdonald house program, ronald mcdonald family rooms provides

a haven within the hospital for families of children undergoing treatment.

Rmhc scholarshipsrmhc is proud to offer scholarships to those students from disadvantaged communities who

face limited access to educational and career opportunities.

Mcdonalds corporate responsibility

community:

we have an obligation to give back to the community that gives so much to us.

Ray kroc:

mcdonalds and their independent owner/operators contribute to our local communities in

countless ways. Together they support:

education and youth development programs.

local and regional sports programs and events.

neighborhood beautification initiatives.

health care efforts, cultural events, and other programs for youth and families.

fund raisers for ronald mcdonalds house charities and other childrens programs.

Development: mcdonalds restaurants around the world are locally owned and operated. They

provide opportunities for local suppliers, job for local residents, and revenues for local

projects and services. Mcdonalds has helped restore historic sites and contributes to


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neighborhood revitalization.

Helped in need: when people are in trouble, mcdonalds is there. Through the international

red cross network; they provide food and other support to disaster victims and meals for

volunteers on the scene.

after earthquakes in india, china, turkey and greece.

when hurricanes hits the us

during an ice storm in canada.

when flooding hit uruguay and venezuela.

More help in this disaster came from mcdonalds germany. Together with its franchisees,

suppliers, and customers, the company contributed 500000 euros (more than $585000 us$) to

the flood relief efforts of the german red cross.

Environment:

mcdonalds has a long record of industry leadership in environmental protection. Working

with prominent independent experts, they have initiated an ongoing series of measures to

conserve natural recourses and reduce waste.

Responsible purchasing:

mcdonalds purchases only a small fraction of the worlds goods and services. However, they

know they can work with their suppliers to help improve their practices and set an example

for other companies. They believe they have an obligation to use their influence to make the

world a better, safer place.

Animal welfare:

industry leader in animal welfare. Their animal welfare program is global. It is based onguiding principles that apply to all the countries where they do business and includes onsite

audits of our suppliers facilities. To guide continues improvement, they have an independent

animal welfare advisory council of distinguished animal science experts.

Antibiotics:

to help preserve the effectiveness of life saving antibiotics, they have issued a global policy

on antibiotic use in food animals. This initiative calls for mcdonalds suppliers worldwide to

phase out use for animal growth promotion of antibiotics used in human medicines and

provides sustainability guidelines to reduce other uses.

Quality and safety:with million of customers a day, they recognized a profound responsibility to ensure the

highest standards of quality and safety in our products and our restaurant environments. Their

food safety system is farm to counter, with quality and safety standards and regular checks in

critical areas along the way. The toys and other promotional items their restaurants distribute

are extensively reviewed and tested before, during, and after production by independent

experts using state-ofthe art technologies. Equipment for our play place areas is likewise

subject to stringent safety standards.

Supplier social accountability

mcdonalds holds their suppliers to the same high standards of conduct they observe. Our

code of conduct for suppliers establishes their expectation for workplace conditions in their


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facilities. Continues improvement is encouraged by onsite assessments, with enhancement

plans required to correct deficiencies, and by supplier training. Compliance with the code is a

condition of doing business with them.

Mcdonalds events

mcdonald's spotlight

mcdonald's knows that there's a little performer in every child. So in order to help you beat

the stress and tension that everyday homework and tiresome exams bring, we introduced

mcdonald's spotlight.

Mcdonald's spotlight is an annual inter-school performing arts competition. This competition

is open to all secondary schools [standards 5th to 10th] in mumbai, navi mumbai, thane and

pune and entry is absolutely free!Events and their categories in mcdonald's spotlight are:

showtime: (one-act plays in english, hindi & marathi)

step-by-step: (group dancingindian classical, indian folk & fusion moves)

soundtracks: (solo singingin english, hindi & marathi)

scriptless: (impromptu speaking in english, hindi & marathi)

the popularity of mcdonald's spotlight is evident from the number of schools participating in

it. From 28 schools in 1998, the figures have soared to a whopping 120 schools in 2003!

Participants go back with a certificate of participation, while winners receive a certificate of

merit as well as gift vouchers from mcdonalds.

There is a first and second prize for each category. Also schools can vie for the best school

and runner-up school rotating trophies. We introduced the rotating trophies for schools in

mumbai and pune in 2001. In 2003, after popular demand, we held separate grand finals with

independent rotating trophies for pune schools.

World children's week

world childrens day [wcd] is one given day on which mcdonalds restaurants all over the

world come together to raise funds for a charity of their choice. The day is november 20 and

it coincides with the united nations universal childrens day.

2002 was the first year in which mcdonalds celebrated world childrens day. It met with

tremendous success the world over. More than 100 countries helped raise more than $12

million for ronald mcdonald house charities and other childrens causes all over the world.

Did you know?

Wcd is the first-ever global fund raising event by any brand in the world?

On this day, all our restaurants, suppliers and customers come together to raise funds for

children across the world?

World childrens week is an extension of wcd. Since india has already been celebrating

childrens day on november 14, we thought it appropriate to link the 2 important daystogether and make the most of it. Hence, instead of world childrens day, we celebrate world


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childrens week from november 14 20 in mcdonalds restaurants in india.

As part of our first wcw celebration, mcdonalds joined hands with the nalanda foundation to

support education for the girl-child for a period of 5 years.

Mcdonalds blue dot initiative for the education of the girl-child

in november 2002, on occasion of the first world childrens week, mcdonalds in western

india joined hands with the nalanda foundation to support education of the girl-child. This

association is for a period of 3 years and extends up to november 2005.

Why the girl-child?

Research shows that the even today, in india, the girl-child is always less favoured than a

boy. Due to this, she is deprived of many benefits, which should rightfully be hers.

The nalanda foundation is working towards improving the situation of the girl-child by

providing her with all the benefits and privileges that she deserves.

Through the money collected in 2002 with our fund-raising activities, we were able to help

build an english learning resource centre for the students of the anjuman-i-islam girls high

school in bandra. The rest of the money has been used to start other educational programmes

that will help in their development.

In 2003, the fund-raising activity had the mcdonalds french fries as the focus. From

november 1420, for every medium and large fries soldwhether a la carte or as part of

value mealsmcdonalds donated re.1/- for the cause. Additionally, ronald mcdonald house

charities also contributed 4 lakh rupees for the mcdonalds blue dot initiative.

Pulse polio

there is a movement in the world to eradicate polio from the face of the earth. This cause has

received support from various bodies like the rotary foundation, and local health

organizations.

In india, this mission is termed pulse polio and the aim is to make india polio-free by the year2005. This requires that children up to the age of five years be given the polio vaccine. This

drive is carried on a larger scale all over the country and takes place three days in a year so as

to enable everyone to avail of the services.

Mcdonald's has participated in the pulse polio awareness rally by sponsoring food and drinks

for the volunteers. In january 2001, mcdonalds went a step ahead. It joined hands with the

rotary club of pune (west) to set up an inoculation booth outside a mcdonalds restaurant in

pune. The same was met with success and prompted us to continue the practice ever since.

The positive response to this initiative encouraged us to extend it to mcdonalds restaurants in

mumbai centers for inoculation as well for 2002 and thereafter.


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Mcdonalds and nehru science centre inter-school science quiz contest

the nehru science centre, mumbai (nscm) has been conducting the nehru science centre inter-

school quiz contest, an inter-school science quiz contest since 1990. Mcdonald's joined hands

with nscm in 2000 to sponsor this quiz contest.

The quiz contest begins with the qualifying rounds in august and culminates with the finalson february 28 of the following year, which coincides with national science day.

2000 to 2003 saw more than 180 schools from mumbai, navi mumbai and thane participate in

the mcdonalds and nehru science centre inter-school science quiz contest.

Keeping our city clean

cleanliness forms a crucial element in our philosophy of qsc&v [quality, service, cleanliness

and value]. Being a brand that places so much emphasis on hygiene, it was natural to get

involved in activities to help maintain clean and healthy surroundings in cities where we

operate. Here are a few instances.

The bmc zero-garbage day: we gave the brihanmumbai municipal corporation (the bmc) a

helping hand in achieving its objective of a zero-garbage day on the august 15, 1997 to

commemorate 50 years of indias independence.

Students from 4 schools around bandra, mumbai took to the streets, for 2-3 hours, with

brooms and dustpans to spruce up the stretch of road from the linking road junction to the

khar telephone exchange.

The entire exercise was a success and was lauded by the bmc at a small gathering held at the

linking road restaurant after the clean up. Mcdonalds also provided those who participated

with meal combos and happy meals as a token of appreciation.

The bmc-mcdonalds health seminar:

held on the july 17, 1998, the focus was on safe food handling and waste disposal.Representatives from the bmc, mcdonalds and the fhrai [food, hotel and restaurant

association of india] shared their learnings, thoughts and viewpoints on the subject. The

seminar was an eye-opener for the health officials and everyone present and once again,

highlighted mcdonalds commitment to public health and the community.

The mayors marathon for cleanliness:

mcdonalds in thane sponsored t-shirts, caps and drinks for a marathon organised by the

mayor in support of cleanliness in all the electoral wards of the city on april 25, 1999.

Gandhi jayanti cleanliness drive:

mcdonalds thane came together with the ymca [thane] on october 2, 2001 to celebrate gandhi

jayanti by cleaning the thane railway station. Mcdonalds crew could be seen working

shoulder to shoulder with the ymca volunteers and sweeping the station clean. Mcdonalds

sponsored the refreshments, lunch as well as caps for the volunteers.

The public challenge

its the normal morning hours at the crossroads mcdonalds. But the outlet hasnt received

the weekly delivery of its raw materials. An old lady approached the counters and asks:

old lady: fish-ofilet and a coke please.Employee: madam, you are in luck, we dont have fish-o-filet, but you can have any other


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burger and a coke on the house.

Never say no to a customeris the policy of mc donalds clearly visible from the above true

incident. In the words of mr. Amit jatia, we are extremely customer focused. For us

customer is the god and there is no short cut to that.

At mcdonalds each and every outlet has a customer care representative (crr) whose only job

is to look after the customer compla

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