INDEX

NO

PARTICULAR

PAGE NO

Introduction

SWOT Analysis

15

History of McDonalds

22

Marketing Mix

31

4 PS

33

Position

42

Marketing Research

46

The McDonalds Story Genesis

The story of McDonalds started in 1954, when its founder Raymond Kroc saw a
hamburger stand in San Bernardino, California and envisioned a nationwide fast food
chain. Kroc proved himself as a pioneer who revolutionized the American restaurant
industry. Today McDonalds is the worlds largest fast food chain serving 47 million
customers daily. McDonalds is now one of the most valuable brands globally, worth
more than $25 billion. The Golden Arches and its mascot Ronald McDonald have gained
universal recognition. Though the company has roots in the US, McDonalds today has
become an accepted citizen of the world.
Year
1955
1957

Events
Ray Kroc opens his first restaurant. McDonalds Corporation is created
Quality, Service, Cleanliness and Value (QSC & V) becomes company

1963
1965
1968
1974
1996

motto
Ronald McDonald makes debut
The company goes public
Big Mac is introduced`
Happy Meal is launched
McDonalds opens in India, the 95th country

Business Model
Franchise Model Only 15% of the total number of restaurants are owned by the
Company. The remaining 85% is operated by franchises. The company follows a
comprehensive framework of training and monitoring of its franchises to ensure
that they adhere to the Quality, Service, Cleanliness and Value propositions
offered by the company to its customers.

 Product Consistency By developing a sophisticated supplier networked

operation and distribution system, the company has been able to achieve
consistent product taste and quality across geographies.
Act like a retailer and think like a brand McDonalds focuses not only on
delivering sales for the immediate present, but also protecting its long term brand
reputation.
McDonalds in India
McDonalds entered India in 1996. McDonalds India has a joint venture with Connaught
Plaza Restaurants and Hard Castle Restaurants. Connaught Plaza Restaurants manages
operations in North India whereas Hard Castle Restaurants operates restaurants in
Western India. Apart from opening outlets in the major metros, the company is now
expanding to Tier 2 cities like Pune and Jaipur.

Challenges in Entering Indian Markets

Regiocentricism: Re-engineering the menu - McDonalds has continually
adapted to the customers tastes, value systems, lifestyle, language and
perception. Globally McDonalds was known for its hamburgers, beef and pork
burgers. Most Indians are barred by religion not to consume beef or pork. To
survive, the company had to be responsive to the Indian sensitivities. So
McDonalds came up with chicken, lamb and fish burgers to suite the Indian
palate.

The vegetarian customer India has a huge population of vegetarians. To cater

to this customer segment, the company came up with a completely new line of
vegetarian items like McVeggie burger and McAlooTikki. The separation of
vegetarian and non-vegetarian sections is maintained throughout the various
stages.
Segmentation, Targeting and Positioning
McDonalds uses demographic segmentation strategy with age as the parameter. The
main target segments are children, youth and the young urban family.
4

As shown above, kids reign supreme in FMCG purchase related to food products. So to
attract children McDonalds has Happy Meal with which toys ranging from hot wheels to
various Walt Disney characters are given (the latest in this range is the toys of the movie
Madagascar). For this, they have a tie-up with Walt Disney. At several outlets, it also
provides special facilities like Play Place where children can play arcade games, air
hockey, etc. This strategy is aimed at making McDonalds a fun place to eat. This also
helps McDonalds to attract the young urban families wanting to spend some quality time
while their children have fun at the outlet. To target the teenagers, McDonalds has priced
several products aggressively, keeping in mind the price sensitivity of this target
customer. In addition, facilities like Wi-Fi are also provided to attract students to the
outlets like the one at Vile Parle in Mumbai.
Mc Donalds mein hai kuch baat projects McDonalds as a place for the whole
family to enjoy. When McDonalds entered in India it was mainly perceived as targeting
the urban upper class people. Today it positions itself as an affordable place to eat without
compromising on the quality of food, service and hygiene. The outlet ambience and mild
background music highlight the comfort that McDonalds promises in slogans like You
deserve a Break Today & Feed your inner child. This commitment of quality of
food and service in a clean, hygienic and relaxing atmosphere has ensured that
McDonalds maintains a positive relationship with the customers.

Customer Perception and Customer Expectation

Customer perception is a key factor affecting a products success. Many potentially
revolutionary products have failed simply because of their inability to build a healthy
perception about themselves in the customers minds. McDonalds being an
internationally renowned brand brings with it certain expectations for the customers.

Target Segment
What is McDonalds for me?
A Family with children
A treat to children, a fun place to be for the children.
Urban customer on the Great taste, quick service without affecting the work
move
schedule
Teenager
Hangout with friends, but keep it affordable.
Customers expect it to be an ambient, hygienic and a little sophisticated brand that
respects their values. The customers expect the brand to enhance their self-image.
Customer responses obtained at the Vile Parle, Mumbai outlet confirmed the fact that
they connect strongly with the brand. However, fulfilling some of the customer
expectations like a broader product variety provide McDonalds a great scope for
improvement.

McDonalds Marketing Mix (5 Ps)

After segmenting the market, finding the target segment and positioning itself, each
company needs to come up with an offer. The 5 Ps used by McDonalds are:

1. Product
2. Place
3. Price
4. Promotion
5. People
Product: How should the company design, manufacture the product so that it
enhances the customer experience?

Product is the physical product or service offered to the consumer. Product includes
certain aspects such as packaging, guarantee, looks etc. This includes both the tangible
and the non-tangible aspects of the product and service.
McDonalds has intentionally kept its product depth and product width limited.
McDonalds studied the behaviour of the Indian customer and provided a totally different
menu as compared to its International offering. It dropped ham, beef and mutton burgers
from the menu. India is the only country where McDonalds serve vegetarian menu. Even
the sauces and cheese used in India are 100% vegetarian. McDonalds continuously
innovates its products according to the changing preferences and tastes of its customers.
The recent example is the introduction of the Chicken Maharaja Mac.
McDonalds bring with it a globally reputed brand, world class food quality and
excellent customer specific product features.

Place: Where should be the product be available and the role of distribution
channels?
The place mainly consists of the distribution channels. It is important so that the product
is available to the customer at the right place, at the right time and in the right
quantity. Nearly 50% of U.S.A is within a 3 minute drive from a McDonalds outlet.
There is a certain degree of fun and happiness that a customer feels each time he dines at
McDonalds. There are certain value propositions that McDonalds offer to its customers
based on their needs. McDonalds offers hygienic environment, good ambience and
great service. Now McDonalds have also started giving internet facility at their centres
8

and they have been playing music through radio instead of the normal music. There are
certain dedicated areas for children where they can play while their parents can have
some quality time together.

Price: What should be the pricing strategy?

Pricing includes the list price, the discount functions available, the financing options
available etc. It should also take into the consideration the probable reaction from the
competitor to the pricing strategy. This is the most important part of the marketing mix as
this is the only part which generates revenue. All the other three are expenses incurred.
The price must take into consideration the appropriate demand-supply equation.
McDonalds came up with a very catchy punch line Aap ke zamane mein ,baap ke
zamane ke daam. This was to attract the middle and lower class consumers and the
effect can clearly be seen in the consumer base McDonalds has now.
McDonalds has certain value pricing and bundling strategies such as happy meal,
combo meal, family meal etc to increase overall sales volumes.

Promotion: What is the suitable strategy and channels for promotion of the
product?

The various promotion channels being used by McDonalds to effectively communicate

the product information are given above. A clear understanding of the customer value
helps decide whether the cost of promotion is worth spending.
There are three main objectives of advertising for McDonalds are to make people aware
of an item, feel positive about it and remember it. The right message has to be
communicated to the right audience through the right media. McDonalds does its
promotion through television, hoardings and bus shelters. They use print ads and the
television programmes are also an important marketing medium for promotion.
Some of the most famous marketing campaigns of McDonalds are:
You Deserve a break today, so get up and get away- To McDonalds
Aap ke zamane mein ,baap ke zamane ke daam.
Food, Folks, and Fun
Im loving it.

People: How to converge the benefits of internal and external marketing?

McDonalds understands the value of both its employees and its customers. It
understands the fact that a happy employee can serve well and result in a happy customer.
McDonald continuously does Internal Marketing. This is important as it must precede
external marketing. This includes hiring, training and motivating able employees. This
way they serve customers well and the final result is a happy customer.

10

The level of importance has changed to be in the following order (the more important
people are at the top):
1. Customers
2. Front line employees
3. Middle level managers
4. Front line managers
The punch line Im loving it is an attempt to show that the employees are loving their
work at McDonalds and will love to serve the customers.
The McDonalds Experience
Marketing in a services industry is becoming an increasingly complex challenge. The
paradigms of service marketing demand a passionate understanding of customer
expectations and perceptions, and linking them to product design & delivery as well as
operational planning. This is where McDonalds has excelled due to its ability to
successfully integrate the customers perspective in its products and operations in a
comprehensive manner. The revamped menu in India is an example of McDonalds
strategy of integrating the customers perspective in its products. And, the operational
integration is evident from McDonalds emphasis on its suppliers as its customers as well
as its treatment of its consumers as co-producers of services.
The ultimate aim of Service Marketing is not just to become a Service Leader but to
create a Service Brand. The Service Delivery Process is the key to achieving this aim of
Service Marketing.

11

Service Delivery
Process
Core Product

Supplementary
Process
During the Service Delivery Process, each moment of interaction between the firm and
the customer, called Moments of Truth, helps understand the opportunities that a firm
has to win or lose the customer. For example, these moments of truth are created for
McDonalds every time the guard at the McDonalds outlet meets the customer, every
time an attendant takes down the order from the customer waiting in the queue, every
time the cashier interacts with the customer, every time the attendant helps the customer
guided the customer
towards theOf
table,
every time
the Service
attendant cleans
the table, etc.
Moments
Truth
The
Encounter
Customer

Service Provider

Service Delivery Points

Managing these moments of truth is a great challenge in Service Marketing especially

due to customers involvement as a co-producer of services (e.g. McDonalds self-service
concept wherein the customer not only collects the order but also cleans the table after
12

consuming the food). However, McDonald's has been able to create a great experience for
its customers by understanding the nature of the entire Service Delivery Process and the
various stages in the process that are exposed to the customers. Transparency in the
processes at its outlet has helped McDonalds bring the back office in its outlet at the
front so that the customer is able to know the operations and provide feedback on service
design improvements.
Internal Customer Focus is equally important as External Customer Orientation in order
to win these moments of truth. McDonalds focus on its People and their service
delivery methods therefore plays a very important role in creating a successful Service
Brand. The quality and the consistency of the service delivered by McDonalds have been
greatly enhanced by the combination of the factors mentioned above. This has helped
McDonalds become Service Leader and a successful Service Brand. This is evident from
the fact that very few of its customers opt for take-home parcels or home deliveries while
most of them prefer to eat at the outlet and enjoy the McDonalds experience.
McDonaldizing the Suppliers
McDonalds has changed the nature of not only the food service industry but also the
food processing industry as well. McDonalds realized that the battle between fast food
chains would increasingly be one of efficiency of supply, lower cost production and
greater desire to innovate. It pioneered with innovative and sophisticated food
distribution and packaging systems when the traditional food processors were unwilling
or unable to supply food items that McDonalds demanded. They achieved amazing
consistency by devoting more attention than anyone else to field service and training at
store level. Production was concentrated in huge plants devoted exclusively to
McDonalds. McDonalds also started with tiny suppliers and grew with them displaying
great loyalty.
Nowhere is the supplier loyalty more evident than in development of new, improved
products. Some of McDonalds classic food items like Filet-o-Fish, French Fries, Chicken
Nuggets etc. are results of supplier innovation. Interestingly, it took KFC more than three
years before in finally introduced its own version of chicken nuggets. Thus supplier
technological expertise had given McDonalds a product which was not a mere marketing
innovation but a technical one. McDonalds attempted to squeeze labour out of the stores
by moving more preparation back into the processing plant, creating the opportunity to
13

develop unique products based on suppliers processing skills. For the first time,
McDonalds suppliers became the focal point of new product development. This
converted the fast-food industrys most fragmented distributed system into more efficient
one which helped McDonalds reduce its inventory and manage costs effectively.
Importance of PLC in McDonalds
The requirements of customers change over time and thus the product offering has to be
changed accordingly. What is the fashion today may be out of market within few weeks.
Thus continuous innovation is required.

To counter these changes McDonalds has continuously introduced new products and has
phased out the old ones which were at the decline stage of their PLC. The introduction is
timed such that the new product does not cannibalize the product already in the maturity
or growth stage. Thus the secret lies in getting profits with different products in the
different stages of the PLC.

A perfect example of revitalising a product in decline phase

14

The French Fries have been an important part of the McDonalds menu worldwide. But
now it was in the stage of decline and was actually not generating proper return. In an
attempt to revitalize it, a new variant was introduced namely Shake Shake Fries. This is
being served with chatpata spice mix which has resulted in increase in the sales of French
Fries and has elevated it from to the decline stage. This is used to delay the decline of a
well established product which has the potential of generating further revenue.
Competitors Analysis
McDonalds has been a leading fast-foods outlet in Vile Parle. But the outlet understudy
has other competitors eating away into its market share. In addition to its traditional rivals
KFC, Dominos, Pizza Hutthe firm encounters new challenges. Jumbo King
competes using a back-to-basics approach of quickly serving up burgers for time-pressed
consumers. On the higher end, the KFC has become potent competitor in the quick
service field, taking away customers from McDonalds. Perhaps in the new environment,
fast, convenient service is no longer enough to distinguish the firm. At this time, a new
critical success factor may be emerging: the need to create a rich, satisfying experience
for consumers. This brings us to service and experience based competition which
McDonalds can use for competitive advantage against Jumbo King. Keeping in mind the
demographics of the area, McDonalds has Wi-Fi enabled the outlet to cater to the student
community. It is for this overall Food, Fun & Folks experience that customers pay a
premium over the other competitors.
Competition also reduces product lifecycle; inducing firms to revise their products
portfolios and to revisit their product market to understand changing needs, expectations
and perception of different market segments. The new McBreakfast would be introduced
between 6 to 11 am as a pilot project. This would open up a whole new revenue stream
for McDonalds by tapping into the student and working population by providing a
15

healthy and wholesome breakfast. This shows how demographic shift can affect the
demand for products and services. McDonalds has anticipated these changes to maintain
its competitive edge.
Two Dimensional Perceptual Mapping

SWOT Analysis

16

The Road Ahead

Entry to Tier 2 and Tier 3 cities The main target customer for McDonalds is
the new urban Indian family. With the customer demographics constantly
changing and tectonic social and cultural shifts being observed in Tier 2 and Tier
3 cities due to globalization, the company is now expanding to Tier 2 cities like
Pune and Jaipur.
Rolling out McBreakfast across all outlets In India, the company has recently
launched its entry into the breakfast food category. This is now launched on a
pilot basis on select stores. In Mumbai, it available at the Vile Parle outlet. The
company views this category as a key growth driver in future.

Exhibits

1. McDonalds Indian Menu

Vegetarian
McVeggie
McAlooTikki
Paneer Salsa Wrap
Crispy Chinese
McCurry Pan
Pizza McPuff

Non Vegetarian
Chicken Maharaja Mac
McChicken Burger
Shahi Chicken McCurry
Wrap Chicken Mexican
Fillet-O-Fish

Survey Questionnaire
Q. Which is your favorite product at McDonalds?

17

Q. Is the product line in McDonalds adequate?

18

Q. What is the main problem you faced at McDonalds?

Q. Which area do you think needs the most improvement?

19

Q. What is the first thing that strikes your mind about McDonalds?

20

THE NEW BREAKFAST MENU STARTED AT SELECT STORES IN MUMBAI.

References
1. Marketing Management Dr. Rajan Saxena
2. McDonalds Behind the Arches John S Love
3. www.Mcdonaldsindia.com
4. Outlet Manager McDonalds Vile Parle

SYNOPSIS sS

Can you guess the name of the company which:

Is the ninth most valuable brand in the world?
Has replaced the US army as the Nations 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 questions 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
its impact on Indian business really is. The inside of McDonalds remains a mystery.

21

McDonald's India is a joint venture of McDonalds Corporation with Amit Jatia and
Vikram Bakshi. Amit Jatia handles the operations in western region whereas Vikram
Bakshi in the northern region.
McDonald's India is an employer of opportunity, providing quality employment and longterm careers to the Indian people. The average McDonald's restaurant employs more than
100 people in 25 different positions from cashier to restaurant manager. McDonald's
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 fact of McDonalds India is its contribution to the food
processing industry. Six years prior to the opening of the first McDonald's restaurant
in India, McDonald's and its international supplier partners worked together with
local Indian Companies to develop products that meet McDonald's 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
suppliers has lead to their growth, beyond the boundaries of the India.
These aspects of McDonalds do not get covered and highlighted by the news hungry
press. But when 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 products in India.
The marketing agency of McDonalds, Mudra comes to its rescue in such times. The
advertisements created by Mudra are a rage all over the nation, especially amongst the
children. Who can forget the little kid who gets nervous in the school competition, but
becomes happy again when his father takes him to McDonalds?
McDonalds India has tried not to leave any stone un-turned in its objective to satisfy the
Indian customer. But in Amit Jatias words, Customers are generally not forgiving.

22

According to the survey conducted, customers demand low prices, more seating space,
more variety, home delivery, and the list is endless.
The fundamental secret to McDonalds success is the way it achieves uniformity and
allegiance to an operating regimen. McDonalds India has to adhere to many rules and
regulations laid down by the parent company, and it still has to cater to the Indian
customer and his needs. McDonalds India is a case study on how to mix conformity
with creativity.

HISTORY OF MCDONALDS

In

1954, a fifty-two-year-old milk-shake machine salesman saw a hamburger stand in San

Bernardino, California, and envisioned a massive new industry: fast food. In what should
have been his golden years, Raymond Kroc, the founder and builder of McDonald's
Corporation, proved himself an industrial pioneer no less capable than Henry Ford. He
revolutionized the American restaurant industry by imposing discipline on the production
of hamburgers, French fries, and milk shakes. By developing a sophisticated operating
and delivery system, he insured that the French fries customers bought in Topeka would
be the same as the ones purchased in New York City. Such consistency made McDonald's
the brand name that defined American fast food.
1.2 Worlds Oldest
McDonalds

Worlds Oldest McDonalds

This 44 year-old site is the oldest in the worldwide
chain of 20,000 restaurants and the last one with redand-white striped tile exterior. After opening in 1953,
it immediately became the standard for the fast food
franchises across the country. The building and its 60-

23

foot high neon sign with "Speedee the Chef" are eligible for listing on the National
Register of Historic Places.
Employees wear 50's style uniforms of paper hats, white shirts and bolo ties. The
restaurant serves the original menu of hamburgers, cheeseburgers, fries and old-fashioned
milkshakes. Also available are more recent McDonald's items such as Big Macs and
Happy Meals.
McDonald's reopened the facility as it was with walkup windows and outdoor seating.
They also constructed and addition housing a museum, gift shop, restrooms and more
outdoor seating.

1955
Ray Kroc opens his first restaurant in Des Plaines,
Illinois and the McDonald's Corporation is created.

1957
Quality, Service, Cleanliness and Value (QSC& V)
becomes the company motto.

1983
Chicken McNuggets is introduced.
New Hamburger University campus opens in Oak
Brook, Illinois. Set in 80 wooded acres. Training is
provided for every level of McDonald's management
worldwide.

1984

The 100th McDonald's opens in Chicago.

50 billionth hamburger sold.

Ronald McDonald Children's Charities is founded in
Ray Krocs memory to raise funds in support of child
welfare.

1961

1989

1959

Hamburger University opens in Elk Grove, near

Chicago.

1963
One billion hamburgers sold.
Ronald McDonald makes his debut.

1964
Filet-O-Fish sandwich is introduced.

1965

McDonald's is listed on the Frankfurt, Munich, Paris

and Tokyo stock exchanges.

1990
McDonald's opens in Pushkin Square and Gorky
Street, Moscow.

1993
The first McDonald's at sea opens aboard the Silja
Europe, the world's largest ferry sailing between
Stockholm and Helsinki.

McDonald's Corporation goes public.

1967
The first restaurants outside of the USA open in
Canada and Puerto Rico.

1968
The Big Mac is introduced.

1994
Restaurants open in Bahrain, Bulgaria, Egypt, Kuwait,
Latvia, Oman, New Caledonia, Trinidad and United
Arab Emirates, bringing the total to over 15,000 in 79
countries on 6 continents.

1996

24

The 1,000th restaurant opens in Des Plaines, Illinois. McDonald's opens in India the 95th country.

1972
A new McDonald's restaurant opens every day.
The Quarter Pounder is introduced.

1973
Egg McMuffin is introduced.

1974
The first Ronald McDonald House opens in
Philadelphia.
The Happy Meal is launched.

MCDONALDS IN INDIA
McDonald's

India

is

joint-venture

company managed by Indians. McDonalds

India, a subsidiary of McDonalds USA, has
expanded its presence in India via 2 joint
venture companies Connaught Plaza
restaurants and Hard castle restaurants.
McDonalds (India) has a 50 per cent equity
stake each in both joint venture companies.
Connaught Plaza restaurants manages operations and expansions across North India
(Delhi, Jaipur and Punjab) led by Vikram Bakshi and Hardcastle restaurants, which is
headed by Amit Jatia, manages operations and expansions across Western India (Mumbai,
Pune, and Gujarat).
Around the world, McDonald's traditionally operates with local partners or local
management. In India too, McDonald's purchases form local suppliers. McDonald's
constructs its restaurants using local architects, contractors, labour and - where possible
local materials. McDonald's hires local personnel for all positions within the restaurants
and contributes a portion of its success to communities in the form of municipal taxes and
reinvestment.
Six years prior to the opening of the first McDonald's restaurant in India, McDonald's
25

and its international supplier partners worked together with local Indian Companies to
develop products that meet McDonald's 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.

Mr. Jatia and Mr. Bakshi

McDonalds worldwide is well known for the high degree of respect to the local culture.
McDonald's has developed a menu especially for India with vegetarian selections to suit
Indian tasted and culture. Keeping in line with this McDonald's does not offer any beef
and pork items in India. McDonald's has also re-engineered its operations to address the
special requirements of a vegetarian menu. The cheese and cold sauces used in India is
100% vegetarian. Vegetable products are prepared separately, using dedicated equipment
and utensils. Also in India, only vegetable oil is used as a cooking medium. This
separation of vegetarian and non-vegetarian food products is maintained throughout the
various stages of procurement, cooking and serving.
The McDonald's philosophy of Quality, Service, Cleanliness and Value
(QSC&V) is the guiding force behind its service to the customers. McDonalds India
serves only the highest quality products. All McDonalds suppliers adhere to Indian
Government regulations on food, health and hygiene while continuously maintaining
their own recognized standards. All McDonalds products are prepared using the most
current state-of-the-art cooking equipment to ensure quality and safety. At McDonalds,
the customer always comes first. McDonalds India provides fast friendly service- the
26

hallmark of McDonalds that sets its restaurants apart from others. McDonalds
restaurants provide a clean, comfortable environment especially suited for families. This
is achieved through McDonalds stringent cleaning standards, carefully adhered to.
McDonalds menu is priced at a value that the largest segment of the Indian consumers
can afford. McDonalds does not sacrifice quality for value rather McDonalds
leverages economies to minimize costs while maximizing value to customers.
The company has invested Rs 450 crore so far in its India operations out of its total
planned investment of Rs 850 crore till 2007.
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 Mc
Donalds Corporation.
The permission has been sought on two grounds: McDonalds India would pay an
initial franchise fee of $45,000 on each of the McDonalds restaurants already franchised
or to be franchised, in the future, in India; and a royalty equal to 5 per cent 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 2008. They currently serve around 5 million
customers a day and hope to grow at the rate of 50% to 70% a year.

MCDONALDS Products
27

In order to satisfy the palate of the local population in a country, McDonald's offers a
regionalized version of its menu. The result is McDonald's foods and meals not seen in
other countries.

Asia

Bahrain
In addition to the McArabia, McDonald's restaurants in Bahrain, beginning in March
2008, sell the McCrispy, a meal consisting of 1, 2, or 3 chicken strips served in a wrapper
for a single strip or in a box for 2 or 3, with a choice of barbecue, sweet & sour, or garlic
sauce. Like all Middle Eastern McDonald's restaurants, all food served in Bahraini outlets
is halal.
China

McDonald's Chinese New Year meal, grilled chicken sandwich and twisted French fries.
Tray liner has an image of the Chinese zodiac.

In China, the Chicken McNuggets come with the traditional BBQ, Sweet & Sour, and
Honey Mustard sauces, but there's also a chili garlic sauce (very popular in China). In
28

China there are specific McDonald's restaurants and counters for ice cream, beverages,
and desserts (otherwise rare in China). They also include crispy chicken wings on their
menu which comes in 2, 4, and 6 pieces. There is also a seasonal Chinese New Year meal
available, including Grilled Chicken Burger, curly fries, with a horoscope of the twelve
zodiac animals of Chinese astrology and traditional "red" packets, or gift bags, for
monetary gift giving as good luck. Note that all chicken burgers offered in Chinese
McDonald's use thigh fillet (eg Premium Grilled Thigh Fillet Burger, Hot and Spicy
Grilled Thigh Fillet Burger), rather than breast meat as per usual in occidental countries.
Hong Kong

During the Bun Festival on Cheung Chau, a special item called McVeggie Burgers were
sold.
McDonald's sells beef, chicken and pork burgers. Fried chicken wings and nuggets are
also popular. In some restaurants, a separate counter sells ice cream and desserts to
pedestrians. Soft Serve Ice Cream can be ordered with either red beans or green beans.
Some restaurants have a section for the McCaf. Apart from the general menu, it also
promotes some other foods seasonally or longer, like spicy french fries, the Shogun
Burger (a Teriyaki pork patty with lettuce, served in a sesame seed bun), Grilled Chicken
Burger, twisted macaroni breakfasts, salads, soups, pineapple or red bean sundae,
pineapple pies, taco flatbreads with pork, beef or chicken, rice fan-tastic (a burger-like
entree with rice patties in place of buns) and many others. Hong Kong hosts some of the
world's busiest McDonald's with many operating round the clock. It also sells many toys
or dolls, like Hello Kitty, Snoopy, and Disney figures in addition to set meals, which are
very popular. In Chinese New Year, red packets (lai see) are included in set meals. During
29

the local Bun Festival, McDonald's restaurant on the island of Cheung Chau sells
mushroom burgers instead of hamburgers and any other items which contains meat. In
Kowloon Park, there is also a small counter named Snack Station selling ice cream, as
well as a counter that sells McDonald's drinks in the swimming pool.

India

The McCurry Pan is a very popular dish across India. It is an original creation of
McDonald's India.
Beef and pork products are not served to cater to Indian religious sensitivities. Chicken
(only Halal) along with fish are the only meat products used.
In India, meat and vegetarian meals are prepared in separate areas of the restaurant
because of religious laws about preparation of food for vegetarians and meat-eaters.
Cooks preparing vegetarian dishes wear distinctive green aprons.
The Big Mac is replaced by the Maharaja Mac, which was originally made with lamb but
is now made with chicken.
Mexican-style wraps for both vegetarians and non-vegetarians, such as the Paneer-Salsa
wrap and the Chicken-Mexican wrap, and Curry pans in Shahi-Paneer and Chicken-Tikka
variations are also offered.
Other items on the Indian Menu include chicken products such as the McChicken Burger
and Chicken McGrill (a burger with a thin chicken patty, thin slices of both onions and
tomatoes, filled with green chutney replacing the usual layer of mayonnaise).

30

The vegetarian burger menu consists of the McAloo Tikki Burger. It is a vegetable burger
with potato, peas, and spices, tomato, onion, and a vegetable-tomato mayonnaise.
McVeggie is another Vegetarian burger on the menu. It looks similar to the above
McAloo Tikki Burger, but is made from mixed vegetables, peas, and spices, lettuce and
veg mayonnaise (referred to as Veg Sauce in India).
Another new Menu Item added is the McSurprise burger. It contains a patty, onion, Italian
mayonnaise.There is also a Pizza McPuff, consisting of a puff pastry stuffed with peas,
sliced cheese etc.

Indonesia
McDonald's sells fried chicken, which is by far more popular than the hamburgers.
McRice is also offered, a small mound of steamed, plain rice. McSoup is a chicken
flavored soup with bits of reconstituted croutons and vegetables. A bun containing a beef
patty covered with satay sauce (spicy ground peanut sauce) is sold as Mc Sate.

Malaysia
There is a special menu named Prosperity Burger only for the Chinese New year festive
season. There is also the Ayam Goreng McD which literally translated means McD's
Fried Chicken, a crispy two piece fried chicken meal. The McSpicy available in
Singapore is also available in Malaysia, marketed under the name Chicken McDeluxe.
During the 2006 football season, spicy McNuggets were also introduced for a short
period of time along with spicy Ayam Goreng McD. Another long time favourite is Bubur
Ayam McD which literally translates to "chicken porridge" or congee. Bubur Ikan McD
which is fish porridge/congee was also served for a short time.
Fried chicken is also offered in Malaysia but it is not more popular than hamburgers as in
neighbouring Indonesia, perhaps because of competition from Kentucky Fried Chicken
and local fried chicken outlets.

31

For a limited time only, a burger consisting of four beef patties, called the Mega Mac,
was introduced in Malaysia.

Marketing Mix
Logic:

Marketers

have

four

tools

to

use

to

develop

an

offering

to

meet the needs of their targeted customers. Collectively they are called the
marketing mix.

You may have heard of the "four Ps" of marketing: product, price, place, and
promotion. Collectively these are called the marketing mix. More comprehensively they
are viewed as: product, service, or program - something of value you are offering the
customer, client, or park visitor price - what the customer, client, or park visitor pays
(direct costs are financial, indirect or alternative costs are such things as time it takes and
the things people give up if they choose your offering)
place, distribution, location, or accessibility - where the transaction takes place, perhaps
in a park promotion or communication - this is how you inform the target market the
benefits in your marketing mix. Collectively these are the tools organizations uses to
develop offerings to satisfy their target market(s) ... the only tools at their disposal.
Remember: If your marketing mix doesn't meet their needs they will not be satisfied - and
if

they

aren't

satisfied

you

are

unlikely

to

meet

your

objectives.

The marketing mix should be viewed as an integrated and coordinated package of

benefits that reflect the characteristics of customers and various targeted publics and
satisfy their needs, wants, and expectations. Note that the elements of the marketing mix
should be integrated because each element of the mix usually has some impact, direct or
indirect, on the other three. For example, if you improve the product or service you
probably have to change the price because it costs more to produce. Although you may
not have to change where the product is delivered to the customer, you will almost
certainly have to change the promotion or communication with the customer because you
need to tell the customer about the changes you have made in the product and how the
changes will make it more desirable and satisfying.

32

One problem in many organizations is that different divisions may be responsible for
different elements of the marketing mix. This happens even in well managed
organizations. The result is that the offering is confusing to the target market. Lack of
communication among divisions makes this problem worse. And if they don't share the
same view of organizational objectives, the problem is worse still.
These variables are known as the marketing mix or the 4 P's of marketing. They are the
variables that marketing managers can control in order to best satisfy customers in the
target market. The firm attempts to generate a positive response in the target market by
blending these five marketing mix variables in an optimal manner.

Product

Price

Promotion

The product is the

Pricing decisions
Promotion
physical product or
should take into
decisions
are those
service offered to
account profit
related to
the consumer. In the
margins and the
communicating
and
case of physical
probable pricing
selling to potential
products, it also
response of
consumers. Since
refers to any
competitors. Pricing
these costs can be
services or
includes not only
large
in proportion
conveniences that
the list price, but
to the product price,
are part of the
also discounts,
a break-even
offering. Product
financing, and other
analysis
should be
decisions include
options such as
performed when
aspects such as
leasing.
making
promotion
function,
decisions. It is
appearance,
useful
to know the
packaging, service,
value of a customer
warranty, etc.
in order to
determine whether
additional
customers are worth
the cost of
acquiring them.
Promotion
decisions involve
advertising, public
relations, media
types, etc.

33

Place
Place (or
placement)
decisions are those
associated with
channels of
distribution that
serve as the means
for getting the
product to the target
customers. The
distribution system
performs
transactional,
logistical, and
facilitating
functions.
Distribution
decisions include
market coverage,
channel member
selection, logistics,
and levels of
service.

Product: The product, service, or program includes both tangible and intangible
elements. The tangible, of course, are those things that the customer can see, touch, feel,
taste, or smell. The intangible include such things as the image of the offering ... which
includes the image of the organization making the offering, the psychological aspects of
pricing (high price to many customers is equated with high quality - and vice versa).

Price: The price is what the customer pays. It includes direct and indirect costs as well as
opportunity costs. The benefits of the product have to be great enough to warrant the
price. Price includes all costs associated with the product, service, or program.
Place: The place is where the customer receives the product, service, or program. The
place of delivery, including all of its resources, is part of what the consumer buys. A place
that meets his or her needs better may be worth more. The place may be a park, a visitor
center in the park, or an interpretive exhibit along a trail. In setting its strategy, the
organization must determine how much the target market is willing to pay for atmosphere
and physical resources of place.
Promotion: Promotion includes all forms of communication you use to communicate the
benefits of your offering to the target market(s). The objective is to persuade the customer
in such a way that he or she recognizes that your offering is uniquely qualified to meet his
or her needs. The term promotion mix is commonly used to refer to the types of
communication that are available: advertising, public relations, personal selling,
publicity, and sales promotion. Some authors include direct marketing. Word of mouth,
though seldom discussed, is powerful promotion.

34

The marketing mix principles (also known as the 4 ps.) are used by business as tools to
assist them in pursuing their objectives. The marketing mix principles are controllable
variables, which have to be carefully managed and must meet the needs of the defined
target group. The marketing mix is apart of the organizations planning process and
consists of analyzing the defined:
How will you design, package and add value to the product? Product strategies.
What pricing strategy is appropriate to use? Price strategies.
Where will the firm locate? Place strategies.
How will the firm promote its product Promotion strategies.

Product
Product
Decision

Branding

Quality

35

Features

Benefits offered
We must remember that Marketing is fundamentally about providing the correct bundle
of benefits to the end user, hence the saying Marketing is not about providing products
or services it is essentially about providing changing benefits to the changing needs and
demands of the customer.
The vegetarian burger menu consists of the McAloo Tikki Burger. It is a vegetable burger
with potato, peas, and spices, tomato, onion, and a vegetable-tomato mayonnaise.
McVeggie is another Vegetarian burger on the menu. It looks similar to the above
McAloo Tikki Burger, but is made from mixed vegetables, peas, and spices, lettuce and
veg mayonnaise (referred to as Veg Sauce in India).
Another new Menu Item added is the McSurprise burger. It contains a patty, onion, Italian
mayonnaise.There is also a Pizza McPuff, consisting of a puff pastry stuffed with peas,
sliced cheese etc.
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

36

by

their

green

aprons.

Pricing
Pricing is the only mix which generates a turnover for the organization. The remaining
3ps are the variable cost for the organization. It costs to produce and design a product, it
costs to distribute a product and costs to promote it. Price must support these elements of
the mix. Pricing is difficult and must reflect supply and demand relationship.

Penetration
Skimming
Competition
Pricing Strategies
Product Line
Bundle
Psychological

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 is being 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.

37

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-andwhite 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 Speede the Chef are eligible for listing on the national register of historic.
A very popular punch line of Mcdonals-Aap ke zamane mein, baap ke zamane ka
daam. The main reason of this price strategy was too attract the middle class & the
lower class of people in India. After this not only the upper class prefers going there but
all class of people go there.
Value Pricing

Happy meal small burger ,fries ,coke+toy

Medium Meal Combo- burger ,fries,coke-veg Rs:75 ,Maharaja Mac Meal Rs: 95

Family Dines under Rs: 300

Price lower than Pak ,Srilanka ,50% lower than U.S.

Promotion
A successful product or service means nothing unless the benefit of such a service can be
communicated clearly to the target market. An organizations promotional mix can consist
of:

38

Advertising
Public Relation
Sales Promotion
Promotional Mix
Personal Selling
Direct Mail
Internet/
E-Commerce
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).
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, is usually sufficient. The right messages must be targeted at the right audience,
using the right media.
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
39

advertising

themes

of

all

time.

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.
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 of the toys and even the paper mats have pictures
of the toys on them. The hoardings around the outlets carry the same theme.
Under the recent research conduct by McDonalds they found that the consumers would
Their other lucky Promotion strategies were like : Collaboration with coke, M Tv, Hungama .com, Sony Music, etc.
Scratch cards on large jumbo meals.
Prices- caps, T-shrit, internet card, CDs, Free tickets to Lucky Alis contest.
Purchase of 2nd meal in a month qualified for Opel Corsa/ NZ trip.

Place
Refers to how an organisation will distribute the product or service they are offering to
the end user. The organisation must distribute the product to the user at the right place at
the right time. Efficient and effective distribution is important if the organisation is to
meet its overall marketing objectives. If organisation underestimate demand and
customers cannot purchase products because of it profitability will be affected.

Direct Distribution

Indirect Distribution
40

Manufacture
r

Manufacturer

Consum
er

Retailer

Consumer

The following table summarizes the marketing mix decisions, including a list of some of
the aspects of each of the 4Ps.

Product

Price

Promotion

Place

Functionality

List price

Advertising

Channel members

Appearance

Discounts

Personal selling

Channel motivation

Quality

Allowances

Public relations

Market coverage

Packaging

Financing

Message

Locations

Brand

Leasing options

Media

Logistics

Budget

Service levels

Warranty
Service/Support

41

Positioning
Mc Donalds mein hai kuch baat a place for entire family to enjoy. Mc Donalds
positioned for youth families.
Positioning is about communicating your unique selling advantage or proposition to your
target audience in everything you do. Marketing, sales, customer service. The consistency
helps your customer remember. Can't articulate your unique selling proposition in less
than

10

words?

Maybe

you

lack

clarity

about

positioning.

Our marketplaces have lots of choices. Too many, perhaps, for the average consumer to
evaluate logically. With hundreds of choices in any given locale, many people simply
look for a referral to a product or with professional services: a company that their friends
trust. Those who shop around, consider two or three options and take the best of the three.
With hundreds of choices, and with products and services that most consumers find hard
to

differentiate,

how

do

you

set

yourself,

apart

from

the

crowd?

Positioning allows a marketer to think about why a customer would want to do business
with them. What do you offer that the other producers don't? What does a potential client
42

get

by

doing

business

with

you,

that

will

serve

their

needs

well?

Positioning has three components:

What are your strengths? Your distinctive competencies? What about your offerings
provide value to your customers?

Who is your target customer? What about them, makes them an ideal fit for the value you
offer?

How are you different from your competitors in ways that your customers and potential
customers will value? In other words, what is your unique selling proposition? Your
competitive advantage?

When all three are put together, you have a positioning statement. Positioning statements
are the basis for all marketing messaging, sales scripts, and at a corporate level: branding.
So here are the things you need to know to be able to develop your own market
positioning:

Who are you? As a company? As a sales rep?

What is your firm or known for? (Ask people what they think. It may not be what your
internal talk says it is. Is it prompt claims? Or telling it like it is? Or it might just be
everyone knows you.)

What do your customers appreciate about your products or services? (Ask your
colleagues and your customers. Again, it might not be what you think. Maybe you are
known for high quality. Or perhaps for returning calls promptly or your problem solving
ability. Maybe it is just that you are convenient. )

What are you particularly strong at? (These are your core competencies.)

What are you better at, than anyone else in your business? As a company? As a
professional? As a sales rep? (Quality? Innovation? Cost effective choices?)

43

Who are your most satisfied customers? What is it that they value most about what you
have to offer?

Based upon your sales goals and annual plan, who is your target market? The key here is
the fit between what you do well and who or what type of business needs what you are
good at.

What value can you bring your customers that they will value the most, based upon your
unique strengths?

At a company level, can you articulate this competitive value for your target, best
customers? Does your branding reflect this? Do your communications use this messaging
as its foundation?
o

Are your web, collateral, and sales force attuned to this value?

Do your services focus on this value?

Does your customer service reflect this value?

Does your customer service reflect the promise of the brand? Or are
customers continually shocked that the customer service is not like the
brand image at all?

Your customers are bombarded with hundreds - perhaps thousands - of commercial

messages each day. Believe it or not buying your product or service is probably not their
most important priority. So, in the end, it comes down to relationships. Does your vendor
understand

your

needs?

Thus, positioning is EVERYTHING, because, positioning is that unique value you offer,
to that target market you seek, in ways that are better, more effective, more amazingly
meeting your needs than any of your competitors. And, the customer service, and
employee relationships need to MATCH or be INTEGRATED with the market
positioning.

44

Impotance Of Positioning
Marketing strategy that aims to make a brand occupy a distinct 'position,' relative to the
competing brands, in the mind of the customer. Firms apply this strategy either by
emphasizing the distinguishing features of their brand (what it is, what it does and how,
etc.) or try to create a suitable image (inexpensive or premium, utilitarian or luxurious,
entry-level or high-end, etc.) through advertising. Once a brand is positioned, it is very
difficult to reposition it without destroying its credibility.
Develops Brand Image
Creates Demand
Creates Demand
Creates Value In The Mind Of Customer
Commands Premium Price

45

Marketing Research
If I will Launch Pizza hut in Market I will try keeping the following things in the
mind:

1. Target Customer:
Young Families: They are the people who prefer outing with their
families.These people believe in working hard and partying harder.

Senior citizens: Generally these fast food restaurants have targeted kids
or younger generations. So I would like target them.

2. Price: The burgers I think is rightly priced here but the beverages are little bit
high priced which most people cant afford it. It shouldnt happen that people
come here only to eat burgers but also have these beverages. So the beverages
would be priced accordingly that everyone could afford it.

3. Product: I think the product here are little bit westernized .The senior citizens
would not find it familiar it with them. The burgers and eatables to more
Indianized so that senior citizens find it familiar. And to introduce more milky
beverages so that it would attract more senior citizens and kids.

4. Place: I would try opening these restaurants in residential areas so that senior
citizens would not find any problem in going out. And open these in malls and
multiplexes so that the young generations which likes to hang out in these places
would find it easier to go there.
46

Marketing Research of McDonalds

There are approximately 22,000 registered restaurants in India, which have sales of over
$15,000 per month. In addition, there are more than 100,000 roadside restaurants
(dhabas) selling their prepared foods in small stalls in cities and on highways. There are
1,568 registered hotels in India.

The opportunity for U.S. food companies in India's food service market is small but
growing. Sales by Indian food service companies totaled approximately $6 billion in
fiscal year 1998. Restaurants account for approximately 55 percent of Indian food service
sales. The institutional sector consists of hospitals, prisons, defense establishments,
schools, company canteens, railways and airlines.

3.1 Indian Food Service Sub-Sector Sales

FY 1998
100 percent = $6 billion
Hotels
5%
Restaurants

Institutes
40%

Restaurants
55%

* Excludes roadside restaurants

Source: Literature search, Interviews, PSi analysis

47

Institutes
Hotels

Factors driving increased food service sales:

Growth in Personal Income: The increase in buying power of Indian
consumers is driving growth in the food service sector. India's per capita
income has increased by over 20 percent from 1992 to 1996.
Shrinking Household Size: The total number of households in India has
increased by less than 3 percent per year from 1990 to 1998; however, the
number of households in middle, upper and high-income categories has grown
by more than 12 percent annually. These households have higher disposable
income per member and have a greater propensity to spend on food.
Urbanization: Approximately 50 percent of high, upper and middle-income
group Indian consumer households reside in urban areas.
Growing Number of Women in the Workforce: Over 16 percent of the
population of Indian women work full-time and spend most of their time away
from home. Due to these changes many Indian consumers are opting for meals
away from home.
Menu Diversification: High-income Indian consumers are seeking variety in
their choice of food. Urban Indian consumers are aware of various
international cuisine (e.g. Continental, Chinese, Mexican, Italian, Thai, and
Japanese) and an increasing number are willing to try new foods
A growing number of specialty restaurants, fast food outlets, home delivery and takeaway restaurants have opened in the last few years. A number of foreign restaurant chains

48

(e.g. Domino's, Pizza Hut, Pizza Express,TGIF, KFC and Baskin Robbins) have started
operations in India and have achieved success.

Promotional Techniques Which We

Would Have Used

Before adopting any promotional techniques we would have conducted a survey.

Ratio of Vegetarians and Non-Vegetarians visiting McDonalds

Non-Veg
46%

Veg
54%

Favorite Product

McChicken
Burger
19%

Others
27%

McVeggie
Burger
12%

49

French Fries
42%

Do you find the product line satisfactory?

39%
32%

29%

40%
30%
20%
10%
0%

Yes

No

Its okay

Favorite Advertisement

35%

31%
26%

30%

21%

25%
20%
15%

7%

7%

8%

10%
5%

50

0%

Stage
Fright

Shifting Sleeping Traffic

Others
House Couple Policemen

None

Do you find McDonalds value for money?

No
72%

Yes
28%

Problems faced in the visits to McDonalds

43%
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%

24%

21%
9%
3%

Long
Queues

Wrong
Order

Bad
Music

51

Other
No
Problems Problems

Suggestions to improve McDonalds

22%

No Suggestions
Better Music

7%
13%

More Space

15%

Home Delivery

19%

More Variety

24%

Low Prices
0%

5%

10%

15%

20%

25%

Unique Selling Proposition of McDonalds

30%
25%
20%
15%

26%

10%

24%

19%

17%

5%

52

0%

Food

Hygiene

Ambience

Quick
Service

6%

8%

Location

Others

Based on this survey we arrive at our promotional techniques

which should be appropriate to be used for increasing the sales:
1. Increase its product line.
2. To have more variety to choose from, to include more deserts and more items like
Pizza McPuff.
3. To provide better and quick service.
4. Lower the supply chain cost so that it helps in cost reducing.
5. To expand their Happy Meal choices to attract and retain customers.
6. To educate about healthy lifestyle.
7. Introduction of McCafees serving premium and specialty coffees and other
beverages and other products such as cakes, pastries etc in the existing
McDonalds.
8. Provide with better ambience.
9. Focus on gifts for all generations i.e. youth, kids especially senior citizen which
is a completely new concept.
10. Special promotions during festivals.
11. Increasing the space for provision of birthday party areas.
12. Try to sponsor college festivals.
13. Work for social welfare of the society.
After analyzing the marketing mix of McDonalds, it is clear that the company can be
said to be `global, i.e. combining elements of globalization and internationalization.
McDonalds have achieved this through applying the maxim, `think global, act
local.Which is one of the most important reasons for their success in India.
53