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INDEX OF TABLES

PROBLEM STATEMENT To identify the key success factors of McDonalds in India.

RESEARCH OBJECTIVE To understand the various strategies employed by Mc Donalds to compete with the well-established Local Fast Food market and analyze the differ ences in the consumption pattern of a family and their preferences.

Literature Review About the Success of McDonalds in India McDonalds has become not only the largest fast food restaurant organization, but has come to symbolize globalization itself as it has literally changed eating ha bits around the world. It commands the leading share (42%) of the U.S. fast food market and runs more than 28,000 restaurants in 120 countries. Each day, about eight percent of the U.S. population will eat a meal at McDonalds, and each year, ninety six percent of the U.S. population will eat at a McDonalds. By 1988 McDon alds had opened 10,000 restaurants in just 33 years. It was then able to reach th e 20,000 mark in another 8 years. By 1997 McDonalds was opening 2,000 restaurants per year an average of one every five hours. McDonalds serves less than one perc ent of the global market per day and sees the opportunity to continue growth int o the next century. McDonalds is the worlds largest food service system with mo re than 30,000 restaurants in 100 countries, serving more than 46 million custom ers every day. McDonalds opened its doors in India in October 1996. Ever since then, their family restaurants in Mumbai, Delhi, Pune, Ahmedabad, Vadodara, Ludh iana, Jaipur, Noida Faridabad, Doraha, Manesar and Gurgaon have proceeded to dem onstrate, much to the delight of all the customers, what the McDonalds experien ce is all about. Their first restaurant opened on 15th April 1955 in Des Plaines , Illinois, U.S.A.

Locally Owned McDonalds in India is a 50-50 joint venture partnership between McD onalds Corporation [USA] and two Indian businessmen. Amit Jatias company Hardcastl e Restaurants Pvt. Ltd. owns and operates McDonalds restaurants in Theystern In dia. While Connaught Plaza Restaurants Pvt. Ltd headed by Vikram Bakshi owns and operates the Northern operations. Amit Jatia and Vikram Bakshi are like-minded visionaries who share McDonalds complete commitment to Quality, Service, Cleanl iness and Value (QSC&V). Having signed their joint-venture agreements with McDon alds in April 1995, they trained extensively, along with their Indian managemen t team, in McDonalds restaurants in Indonesia and the U.S.A. before opening the first McDonalds restaurant in India. Respect for local culture McDonalds is so s uccessful in India because of its respect for local culture. McDonalds India ha s developed a special menu with vegetarian selections to suit 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 their Indian restaurants. In addition, theyve re-formulated some of their products using spice s favtheired by Indians. Among these are McVeggie burger, McAloo Tikka burger, V eg. Pizza McPuff and Chicken McGrill burger. Theyve also created eggless sandwi ch sauces for their vegetarian customers. Even their soft serves and McShakes ar e egg-less, offering a larger variety to their vegetarian consumers.

International Standards McDonalds Indias local suppliers provide us with the h ighest quality, freshest ingredients. Complete adherence to the Indian Governmen t regulations on food, health and hygiene is ensured, while maintaining their ow n recognized international standards. Fast, friendly service - the hallmark of M cDonalds restaurants the world over is the mantra they abide by. Stringent clea ning standards ensure that all tables, chairs, highchairs and trays are sanitize d several times each hour. Such meticulous attention to cleanliness extends beyo nd the lobby and kitchen to even the pavement and immediate areas outside the re staurant. McDonalds Philosophy "They take the burger business more seriously tha n anyone else." Principles followed by McDonalds to be successful in India Quali ty, Service, Cleanliness & Value - It is an unflinching McDonalds ideology that their customers must always get quality products, served quickly and with a smi le, in a clean and pleasant environment; and all at a fair price They are commit ted to exceeding their customers expectations in every restaurant every time. T hey have a passion and a responsibility for enhancing and protecting the McDonal ds brand. They believe in a collaborative management approach, employing a mutu ally respectful business philosophy,

They will seize every opportunity to innovate and lead the industry on behalf of their customers. Evolution of McDonalds Richard and Maurice McDonald originally founded McDonalds in the 1930s, but its success is due to the efforts of Ray Kroc, who put the ham burger on the assembly line. Each workers steps were calculated in order to ensur e maximum efficiency. The result was a decrease in preparation time and an incre ase in volume, allowing for cheap prices and fast service. The restaurant chain grew slowly at first. Kroc decided to build all of the restaurants and then fran chise them out in order to have uniformity. He later founded the Hamburger Unive rsity in 1961 in order to train franchisees and corporate decision-makers. Hambu rger Universities were later founded in Tokyo, Munich, and London. He built prim arily in the suburbs as suburban America was just developing in the 1950s after W WII. The popularization of the automobile also increased McDonalds popularity and throughout the 1960s and 70s the chain grew incredibly quickly. In 1973 McDonalds first opened for breakfast with the creation of the Egg McMuffin. By 1987 one fo urth of breakfasts eaten outside the home in the United States came from McDonal ds. In 1975 McDonalds pioneered its first drive-thru window; drive-thru sales even tually accounted for more than half of McDonalds system wide sales. In the 1970s competition with other fast food chains intensified, culminating in the "Burger Wars" of the early 1980s. In order to cater to changing consumer preferences, Mc Donalds introduced Chicken McNuggets in 1983 and by the end of the year, McDonalds was the second largest retailer of chicken in the world.

However, due to a series of difficulties including failed marketing strategies a nd new sandwiches that flopped, growth in the U.S. slowed during the 1990s. Over seas, the 1990s saw an increase in international units from 3,600 in 1991 to mor e than 11,000 by 1998, largely in Japan, Canada, Germany, Great Britain, Austral ia, and France. The number of overall countries with McDonalds nearly doubled fro m 59 in 1991 to 114 in 1998. In 1993 McDonalds first expanded in to the Middle E ast and opened in Tel Aviv, Israel. As the company entered new markets, it showe d flexibility with respect to the local preferences: in Germany, McDonalds serve s beer with meals; in Israel, the first kosher McDonalds opened in Jerusalem in 1 995; in Arab countries, the restaurant chain used Halal menus; in 1996 McDonalds entered India where they offered the Maharaja Mac, made with lamb rather than b eef; in Sweden, the first McSki-thru opened in Lindvallen, Sweden. McDonalds ubiq uity has made it a lightning rod for criticism from numerous fronts. Vegetarian groups, farmers, university students, labor groups, and groups from practically every foreign country have attacked McDonalds for damaging peoples health with ba d food, using produce from huge factory farms, invading college student centers, using toys made in sweatshops, being the front-man for economic globalization, and every kind of global cultural hegemony. Potato Farming In Gujarat McDonalds India, even prior to its entry into India, was committed to working with local suppliers and farmers to source all its requ irements. The company therefore spent 6 years and around Rs. 450 crore to set up the food supply chain even before opening its first restaurant in the country.

India, despite being the worlds second largest producer of food, loses nearly Rs. 50,000 crore worth of food produce due to wastage at various levels, especially due to lack of proper infrastructure for storage and transportation. McDonalds India has pioneered the cold chain management system wherein the freshness, cris pness and nutritional value of vegetables and processed products are retained. I n 1991, McDonalds was looking for a particular variety of potato for manufactur ing its world famous French fries. One of McDonalds suppliers Lamb Weston investe d heavily in setting up production lines to process these potatoes and make the fries. However, production was discontinued, as the right quality of potatoes co uld not be sourced. The right quality potato in India was unavailable as farmers used seeds from the preceding crop, which in turn resulted in a single variety and poor quality potatoes. McDonalds needed the process-grade variety of potato f or its products, which are as per McDonalds international quality standards. Th e variety of potato required by McDonalds had to have a certain length, high soli ds content and low moisture content while the ones that were available were of t he table-grade variety. Nonetheless, as per its initial commitment to local sour cing, McDonalds and its supplier partner, McCain Foods Pvt. Ltd., began to work closely with farmers in Gujarat and Maharashtra to develop process-grade potato varieties. McCain Foods Pvt. Ltd. is the worlds largest French Fry Company in th e world. Established in 1957, today it is a brand that is known and respected in more than 100 countries, generating worldwide sales of more than $5.5 billion. It has more than 55 processing plants on 4 continents (29 of which are French fr y and potato specialty facilities) and exports to more than 80 countries worldwi de. Leaders in agronomy, technology and innovation, McCain Foods Pvt. Ltd. partn ered with McDonalds to work with farmers in Gujarat (specifically the towns

of Deesa and Kheda) to interact with agronomists and field assistants to demonst rate the best practices right from better agronomy techniques like irrigation sy stem, sowing seed treatments, planting methods, fertilizer application programme s and better storage methods for the produce. In addition to this, the farmers a lso benefit through incremental monetary gains as they sell directly to McDonald s. Everyday Value At McDonalds Outlets in India McDonalds India is an employer o f opportunity, providing quality employment and long-term careers to the Indian people. The average McDonalds restaurant employs more than 100 people in 25 dif ferent positions from cashier to restaurant manager. McDonalds world class-trai ning inputs to its employees can be seen in the present close to 2000 employees currently in Mumbai and Delhi. Manpower Planning: The Scheduling Manager is in c harge 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 r eference of the employees in the outlet or other outlets. Training and Developme nt: Training is a continuous process at the McDonalds. It is the responsibility of the training squad to train the other employees. The training squads maintain training logs of the employees, which clearly states that which employee is to be trained, and on what station. The 3/30 Plan: According to this plan, the trai ning squad has to train 3 people on three different stations in a month. One emp loyee is trained on one station, say the vegetarian station for 10 days, and the n for the nonvegetarian station for the next 10 days and so on. This is done til l the

employee becomes proficient on the station and is capable of handling the statio n on his own. Performance Appraisal: Every employee joins in as a Trainee Crew where he is giv en the Green Badge. After a period of 3 months, the employee is checked for the health safety, cleanliness and sanitation after which he is given the Yellow Bad ge. After receiving the Yellow Badge, there are 5 stations that the employee has to be proficient in: 1. Backroom Cleaning This includes mopping the floors, cle aring the tables, maintenance of the machines etc. 2. Fried Products This involv es frying of the French Fries, Pizza Puff etc. to the right degree. 3. Buns, Dre ss and Grill (BDG) This includes grilling the bun and dressing them properly. Th ere is a time limit given to perform every function and the employee has to perf orm it efficiently, with minimum wastage. 4. Counter The last station is of the counter handling. The employee should be able to converse with the customers cou rteously and take proper orders. 5. Personality The last criteria is the overall personality of the employee. McDonalds being in the service industry, having sm art and courteous employees is of utmost importance to them. The productivity re cord has to show 90+ points. The productivity is various ways. For example McDon alds has a policy if

checked in serving each customer within one minute on an average. The productivity at the c ounter is checked by the time taken by an employee to complete

the order. For E.g.: If Freda (A service-counter in charge) has taken 2.5 minute s on a average to serve each customer in her shift, at the end of the shift, the shit running manager will speak to her and ask her the reason and accordingly a sk her to try and improve. If this trend continues, Freda is trained further. Af ter 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 employee is promoted to

the next hierarchy level. McDonalds worldwide stand for QSC&V, where V stands for value and therefore the value proposition assumes special significance. Explain ing this, Mr. Amit Jatia, Managing Director, McDonalds Western India says, McDon alds success has been built on commitment to the delivery of QSC&V (Quality, Se rvice, Cleanliness and Value) to customers, the expansion of restaurant numbers to improve convenience and large scale investment in supplier development, train ing and people. Getting QS&C consistently, and overwhelming appreciation of Valu e keeps our customers satisfied and maintains our competitive edge. The value ini tiative at McDonalds is all-pervasive. Our strategy is to achieve best value by enhancing experience (offering best quality), while keeping prices reasonable. This applies to products we serve our customers and to every other aspect of the way we do business. At McDonalds, costs are kept low by increasing efficiency and cutting wastage at all levels. This is possible by advanced operations, mana gement and human behavior skills tested over time in around 120 countries across the world. It is important to understand that delivering highest quality doesnt come easily. Customers, who walk into a McDonalds restaurant, expect to be serv ed food that is hot and fresh, made from the highest quality ingredients, served within minutes of placing their

order and at a price, which is affordable. Such is the strength of the brand tha t they rely on McDonalds to do all this, without thinking about how it is actua lly achieved. This is achieved through to the minutest details and doing things the right way, whether it is the McDonalds unique cold chain network which ensu res that food products move from farms to restaurants absolutely fresh, at the l owest possible cost, or, the reverse osmosis water treatment plant at every rest aurant to provide water which is the ultimate in purity, McDonalds in India has invested heavily in achieving quality. McDonalds Value offers Though all McDonalds food products offer tremendous value , we continually review and improve our menu offerings to make sure that we not only meet our customers expectations, but also exceed them. As a result, we have introduced a series of ongoing value options to enable our customers to apprecia te this aspect of the brand even more strongly. McDonalds Advertising Strategies DDB Needham and Leo Burnett are the advertising agencies of McDonalds worldwide. Hence, when they came to India, the subsidiaries of both the companies pitched for the account and Mudra, the Indian partner of DDB Needham got the account. Sinc e the very beginning Mudra has been the advertising agency of McDonalds India. Th e Mudra team meets up with McDonalds marketing team on a regular basis and they h ave a debate and discussion on the new strategies to be adopted.

McDonalds uses various medias like television, hoardings and bus shelters. They a re almost out of print ads. McDonalds also sponsor many television programmes lik e 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. Fo r e.g.: During the French fries issue, all their paper mats had description of t he burgers, how the vegetarian products are made etc, to regain the confidence o f the customers. The placing of the pamphlets, banners in and around the outlet is decided upon b y the Area Sales Manager and the Operations Manager, in co-ordination with the R estaurant Manager. For e.g.: Currently they have the Bugs Life Theme going on wh erein they give free Bugs Life toys with the Happy Meal. All the outlets are dec orated with the pictures of the toys and even the paper mats have pictures of th e toys on them. The hoardings around the outlets carry the same theme. Even the menu counters in the outlet are a marketing tool for the company. They have to b e designed such that they catch the attention of the customer and tempt him to o rder the product. So McDonalds have menu boards that are descriptive as well as v isual. They call it the 80-20-menu board-eighty percent visual and twenty percen t descriptive. The aim is to make things easier for the customer to understand w hat the 39, 49, 59, 79, 89 rupee options are. And of course it is easier for McD onalds also to give back the one rupee change so that the service can be quick. T he marketing strategy of McDonalds in India has gone through mainly 3 stages: Sta ge I: Building the Brand Stage II: Awareness of the products Stage III: Gunning for market share.

Stage I: Building the Brand The Stage Fright Advertisement (We make you smile!) The initial marketing strategy was focused on building the brand name in India. McDonalds wanted to bring an awareness of its presence, of the arrival of McDonal ds in India. Hence, even thought it had presence only in 2 cities, Delhi and Mumb ai, it still went in for Nationwide Advertising. The first advertisement of McDo nalds in India was of a child getting tensed in a Fancy dress competition and for getting his lines. His father then takes him to McDonalds where he forgets all hi s fears and gives a brilliant performance appreciated by all in the restaurant. Every child in India could relate itself to the child in the advertisement and i t gave the parents the idea that if their child were unhappy, taking him to McDo nalds would definitely bring a smile to his face. When Vikram Bakshi was asked ho w the idea for the first advertisement came 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 kind of 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 ki ds are very happy to be here. They find it a hassle free experience. Nobody to s ay, "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 th e time like he does in specialty restaurantswaiters who are in their thirties an d forties, with faces which say, "Keep out of my way!" What he sees when he come s into McDonalds is a place that is brightly litthere are no dark corners that h e needs to be scared of. The people working here are all young. He can walk up a lone to the counter and ask for whatever he wants, someone will talk to him, tak e him seriously, look after him, ask him

questions. He has a play area where he can run around. And clearly even parents are happy to bring their children here. I have seen many instances where parents come in with their children; they are playing while the parents are also enjoyi ng themselves. There was this lady I met and she asked me, "What is this that yo u do to children?" So I said, "What do we do meaning?" She said, "My two year-ol d recognizes McDonalds. When I took her to Wimpys the other day she refused to enter the place, saying it was not McDonalds." Stage II: Awareness of the Products McDonalds then felt that it needed to highlig ht its products along with the experience. Hence, came the series of advertiseme nts highlighting on the products and new launches of McDonalds. McDonalds wanted t he customers to know that they have something for everybody, be it children or a dults, vegetarian or non-vegetarian. The advertisements in these series were: Th e Sleeping Couple: In the sleeping couple advertisement the husband is shown dre aming about the various products of McDonalds. Anyone watching the advertisements 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 to have the new McPizza Puff a nd the Chicken McGrill. The Barber and the Customer: The customer is getting him self shaved when he hears about the launch of McPizza Puff and Chicken McGrill, and runs to the nearest McDonalds half shaved.

The Runaway Bridegroom: A couple is getting married when the Bridegroom runs awa y in the middle of the marriage to have the new McPizza Puff and the Chicken McG rill and the whole family follows him. Veg Surprise: The latest commercials, aro und 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. Stage III: transition attempting ts portray share, and Gunning for market share The latest advertisements of McDonalds are a from the first strategy. In the initial advertisements, McDonalds was to build a relationship with the customers. But now, the advertisemen that the relationship has already been established. Its got the mind its now gunning for market share.

The ad campaigns are trying to portray McDonalds as a constant companion, which m akes people feel special. The recent commercial highlights the bond that McDonal ds shares with people. It shows a child moving to a new locality, and he is sad. But when he sees McDonalds in his neighborhood, the child is once again reassured . The recent ad campaign is targeting the Indian is targeting the Indian father, as he is still looked upon as a decision-maker. The new positioning: McDonalds i s a special place where caring dads take their families to give them a great tim e. So its a clear positioning as a family restaurant. We are positioning ourselves as the welcoming and affordable family restaurant committed to values of qualit y, 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 other advertisements made by McDona lds emphasizing on the schemes, the prices and various other aspects. Some of the m were: The Itch Karo Scheme: This advertisement was to promote the scheme of McDo nalds wherein 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 McDonalds outlet. This advertisement if of the most liked an d remembered advertisements of McDonalds. Happy Meal: There are various advertise ments relayed during children programmes on television and also children channel s emphasizing on the happy meals and the toys you get with them. McDonalds India has undertaken many social activities like: Supporting Health dri ves like Pulse Polio since 1998. McDonalds Spotlight, an inter-school performing arts competition started in 1998 for schools all over Mumbai and Navi Mumbai to provide the students with an atmosphere for healthy competition. Over 120 school s participated in 1998,1999 and 2000. McDonalds has tied up with Nehru Science Ce ntre, Mumbai (NSCM) in 2000 for a period of three years to bring the students of Mumbai a

science quiz. This quiz has been conducted by NSCM for the past ten years. With McDonalds, it hopes to get the contest to a new level. Having cleanliness drives with the BMC like the one on 15th August 1997 for making Mumbai garbage free and joined in celebrating 50 years in Indias independence. Outlets in India McDonald s India is an employer of opportunity, providing quality employment and long-te rm careers to the Indian people. The average McDonalds restaurant employs more than 100 people in 25 different positions from cashier to restaurant manager. Mc Donalds world class-training inputs to its employees can be seen in the present close to 2000 employees currently in Mumbai and Delhi. Manpower Planning: The S cheduling 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 the y expect more customers (during holidays etc) then more part timers are recruite d. Recruitment: Done by reference of the employees in the outlet or other outlet s. Training and development: Training is a continuous process at the McDonalds. It is the responsibility of the training squad to train the other employees. The training squads maintain training logs of the employees, which clearly states t hat which employee is to be trained, and on what station. The 3/30 Plan: Accordi ng to this plan, the training squad has to train 3 people on three different sta tions in a month. One employee is trained on one station, say the vegetarian sta tion for 10 days, and then for the nonvegetarian station for the next 10 days an d so on. This is done till the employee becomes proficient on the station and is capable of handling the station on his own.

Performance Appraisal: Every employee joins in as a Trainee Crew where he is giv en the Green Badge. After a period of 3 months, the employee is checked for the health safety, cleanliness and sanitation after which he is given the Yellow Bad ge. After receiving the Yellow Badge, there are 5 stations that the employee has to be proficient in: 1. Backroom Cleaning This includes mopping the floors, cle aring the tables, maintenance of the machines etc. 2. Fried Products This involv es frying of the French Fries, Pizza Puff etc. to the right degree. 3. Buns, Dre ss and Grill (BDG) This includes grilling the bun and dressing them properly. Th ere is a time limit given to perform every function and the employee has to perf orm it efficiently, with minimum wastage. 4. Counter The last station is of the counter handling. The employee should be able to converse with the customers cou rteously and take proper orders. 5. Personality The last criteria is the overall personality of the employee. McDonalds being in the service industry, having sm art and courteous employees is of utmost importance to them. The productivity re cord has to show 90+ points. The productivity is various ways. For example McDon alds has a policy if

checked in serving each customer within one minute on an average. The productivity at the c ounter is checked by the time taken by an employee to complete the order. For E. g.: If Freda (A service-counter in charge) has taken 2.5 minutes on a average to serve each customer in her shift, at the end of the shift, the shit running man ager will speak to her and ask her the reason

and accordingly ask her to try and improve. If this trend continues, Freda is tr ained further. After the productivity record shows 90+ points, the employees hav e

to appear for a documented written test where they must get more than 90 marks. Having got a 90+ average of the two, the employee is promoted to

the next hierarchy level. Consumer Perception about McDonalds in India To be successful in business one ha s to be etched in the minds of its customers. Hence, it is important to understa nd the customers perception. So what is perception? Perception is a process by wh ich an individual selects, organizes and interprets information inputs to create a meaningful picture of the situation. Perception not only depends upon physica l stimuli, but also on the stimulis relation to the surrounding field and connect ions with the individual. The key point is that perceptions can vary among indiv iduals exposed to the same situation. People can emerge with different perceptio n of the same object because of three perceptual processes: Selective Attention Selective Distortion Selective Retention Selective Attention occurs due to indiv iduals being exposed to so much information transmitted to them, they just shut themselves up and pay attention

to only a few information. For example people are likely to notice events that a re pertaining to there current needs. They also notice stimuli that they anticip ate will happen or whose deviation from the normal course is large. Selective Distortion is the tendency to twist information into personal meanings and interpret information in away that fits into the preconceptions. Thus, even noticed stimuli are sometimes go unreacted by the prospect. Selective Retention causes one to remember the good points mentioned and perceived by the mind and forget good points mentioned about the unrelated and concepts that the mind has not perceived yet. In short, perception is a very complex through which one pain ts a unique picture of the situation, a picture that could be very different fro m the reality. Sometimes sensation and perception are used interchangeably but i n fact, they are very different. Sensation is a collective interaction of the se nses while perception is a complicated interaction of selection, organisation an d interpretation. Perception begins with an individual is confronted by a stimul i which then is registered, interpreted by the brain and for which feedback is e nacted. Numerous stimuli are constantly confronting with each other. Thus there are many factors that affect the selectivity of the customer. The factors could be External or Internal. EXTERNAL FACTORS: The external factors consist of environmental influences such as intensity, size, contrast, repetition, motion, and familiarity to name a few.

The intensity principle states that more the intensity of the cause, more likely is it to be perceived. Closely related to intensity is the principle of size. L arger the size of the object, greater is the attention and higher is the probabi lity of making an impact on the perception. The contrast principle states that t he external stimuli that stands out against the background or which is not what people were expected gets noticed which in turn enforces the retention ability. A repeated external stimulus by the retention principle is more attention getter than singly transmitted information. The motion principle states that people pa y more attention to moving objects in there field of vision than they to station ary objects. Familiarity serves as an important attention getting stimuli as peo ple pay more attention to objects which they can relate to. INTERNAL FACTORS: Ap art from the external factor there are some internal factors that also affect th e selectivity process of an individual. People select situations from the enviro nment to which they can appeal to and are compatible with there learning, motiva tion and personality. Learning pays a single biggest role in developing the perc eption of an individual. People generally look to relate information to already existing learning, any deviation from the expectations can either cause the subj ect to look for the reasons for deviation or just shut the mind out and refuse t o incorporate the data.

Motivation also affects the selectivity process the same way as learning does. A motivated individual tries to incorporate any data that could cause him to impr ove his position or reinforce the existing belief that has motivated him. Person ality is another factor which increases the selectivity process of an individual . The onus in todays world is on modifying the consumers selectivity in favor of t he product that is being promoted. Once a product gets rated highly in the perce ption of the individual the product retention gets doubly simpler and helps the product or brand manager as the product gets wide attention and knowledge about the product is already present the consumers mind. REFERENCES OF LITERATURE REVIEW Marketing Management - Philip Kotler (Tenth Edition) ISBN-81-203-1609-6 Organisa tional Behavior - Steven Robbins (Tenth Edition) ISBN-81-203-2283-5 Organisation al Behavior - Fred Luthans (Ninth Edition) ISBN-0-07-120412-1

RESEARCH DESIGN Exploratory Research We will use the descriptive research design where the main contact technique will be a survey method. This method will be u sed because it will help us to get the required responses from the individuals h aving various parameters such as age, sex, occupation, etc. Tool utilized for th e contact: Our research will follow a combination of questionnaire, observation and personal interview method. The personal interview will help us to obtain a b etter insight into demographic and psychographic parameters. Data Analysis: The main data analysis tools used will be: Formulation of cross-tabulated data using chi-square test. Correlation (Factor affecting Perception) Hypothesis testing u sing Chi-square test for closed end questions (yes / no) Sampling Frame: Since i t is not possible to define the exact list of visitors to Mc Donalds in Mumbai, a s there is no sampling frame available from which the sample can be drawn. Defin ing the target Population:

For any research study to be successful it is very important to carefully define the target population so that the proper source from which data is to be collec ted can be identified. Since our study deals with consumer satisfaction with res pect to Mc Donalds so we have chosen the target population that only those indivi duals who are regular visitor of the Mc Donalds. Hence our target population is d efined as all individuals: 1. Aged between 14-50 2. Visits at least once in a mo nth. 3. Have visited at least more than one McDonalds outlet. 4. Resident of Mumb ai. Sample Size: 1. The franchisees of McDonalds in the Mumbai area representing the whole city are to be selected. 2. Sample of Approx. 150 customers selected rando mly from different franchisees of McDonalds in the Mumbai area. Sample Size Deter mination: The sampling unit of our study will include males and females (age gro up of 2550) from middle and upper middle class, professionals and non-profession als. The sample size will consist of approximately 150 sampling units. The resea rch will use Cluster-Sampling method and will use the stratified sampling wherei n a particular stratum will be representative of demographic and psychographic p arameters.

Research would be based on probability sampling where a confidence level of 95% has been assumed with the standard error of 8%. Sample size would be determined after taking into account following factors Confidence Level: Corresponding z va lue (Z): Error in Estimation of proportion: 95 % 1.96 8% In absence of information about the Population probability of customer entering Multiplexes, Population Proportion (P) is assumed to be .5 to be on safer side. Their sample size n is calculated as follows, N N = = = P * (1-P) * (Z/E)2 0.5 * (1 0.5) * (1.96/.08) 2 150.06 150 Our sample size would be around 150, located in different parts of Mumbai. Data Analysis: The main data analysis tools used will be: Formulation of cross-t abulated data using chi-square test. Correlation (Factor affecting Perception) H ypothesis testing using Chi-square test for closed end questions (yes / no)

Nature and form of results: Hypothesis: H0: There exists a significant differenc e the perception of Customers visiting any Fast Food center. H1: There is no sig nificant difference. H0: Demography has significant influence on the number of vi sits to the Fast Food centers H1: Demography does not have significant influence on the number of visits to the Fast Food centers. Measurement instruments: Quest ionnaire Personal Interview Personal Observation Limitations of the study: 1] Th e study is limited to the city of Mumbai. 2] The study can be analyzed to have a brief overview of performance of McDonalds within Mumbai only and not outside it . 3] Time limitations & Cost limitations. Field Work: The sampling would be carr ied out at different McDonalds outlet located in Mumbai. The subjects which have been identified above would be approached at randomly selected hours in a day at the McDonalds outlet.

The subjects would be asked to fill up the questionnaire. DATA TABULATION & DATA ANALYSIS Gender based Male No. Respondents Percentage Respondents (%) of 58.82 41.18 100 of 80 Female 56 Total 136 Out of the 136 respondents questioned 80 (58.82%) were Male while the remaining 56 (41.18%) were Female. Gender F emale 41% M ale M ale 59% F emale

Food habits RESPONDENTS Vegetarians Non Vegetarians TOTAL 50 86 136 PERCENTAGE approx. (%) 37 63 100 Vegetarian 50 Yes 86 No Our survey recorded more Non Vegetarian visiting Mc Donalds than their Vegetarian counterparts.

Frequency of Visit TIME Every day Twice in week Once in Fortnight Once In a Mont h Others TOTAL RESPONDENTS 0 14 32 60 30 136 PERCENTAGE approx. (%) 0 10 24 44 2 2 100 Frequency of Visit 70 60 50 40 30 20 10 0 ve ry Tw da ic y e in O w nc ee e k in F O or nc tn e ite In a M on th ot he rs Days Frequency of Visit Out of the 136 respondents surveyed almost 90% visited McDonalds visit atmost onc e in a fortnight. E

Favourite in McDonalds Products Mc Chicken Burger Mc Veggie Burger French Fries O thers TOTAL RESPONDENTS PERCENTAGE approx. (%) 52 38 38 28 30 22 16 12 136 100 F v rite ao 6 0 5 0 4 0 3 0 2 0 1 0 0 M c C icke h n B rg r u e M c V g ie eg B rg r u e F n re ch F s rie O e th rs F v rite ao The preference of the respondents shows a vast range of variance among the given options. Also the data showed that the preference is not commanded by the food habit as many Non Vegetarians preferred Mc Veggie Burger and French Fries. Avera ge Spending: Spending (Rs.) Less than 50 50-100 100-200 200 and above TOTAL RESP ONDENTS 24 56 46 10 136 PERCENTAGE approx. (%) 18 41 34 7 100

Spending 60 50 40 30 20 10 0 <50 50-100 100-200 200 and above Rs. Spending Most of the visitors in Mc Donalds spend on an average (about 75%) between Rs. 50 to 200. Value for money Views Yes No TOTAL RESPONDENTS PERCENTAGE approx. (%) 106 30 136 78 22 100

Values for Money No 22% Yes No Yes 78% About 78% of the respondents claimed that Mc Donalds provides Value for money. Pr oblems faced: Common Problems Long Queues Wrong Order Bad Music Others Problems No Problems TO TAL RESPONDENTS 54 2 22 22 54 136

Problems 60 50 40 30 20 10 0 es er Q ue u O rd M Problems Common problems faced by those who visit Mc Donalds are Long Queues while equal n o. of respondents responded that they had No Problems during there visits. Some people also sighted Bad Music another major problem. Hesitancy after the "French Fries" issue: Response Yes No Not Aware TOTAL O th er s Lo P ro bl em N s o P ro bl em s W ro ng ng B ad us ic Respondents PERCENTAGE approx. (%) 24 72 40 136 18 53 29 100

Affect of the French Fries Controversy 80 70 60 50 40 30 20 10 0 Yes No Not Aware Responses The survey results showed that more than half of the respondents are not affecte d by the Controversy while only 18% had been affected. USP of Mc Donalds:

Response Food hygiene ambience Quick Service Location TOTAL Respondents PERCENTAGE approx. (%) 40 29 40 29 24 18 20 15 12 9 136 100 USP 45 40 35 30 25 20 15 10 5 0 Food Hygiene Ambience Quick Service Location Respons e

Respondents in the survey gave equal importance to Food and Hygiene as the two m ost identified USPs of Mc Donalds while Ambience, Quick service and Location recei ving lesser weightage.

RECOMMENDATIONS 1. One of the observations from the survey that could be noticed were the usuall y long queues that the customers encountered at the outlets they visited. They h ad to wait in for some time before they can place the order which created some a mount of inconvenience among the customers. So, in order to avoid the i