MINOR PROJECT REPORT

ON
MCDONALDS CORPORATION
SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT
OF BACHELOR OF BUSINESS ADMINISTRATION (BBA)

A Study on Marketing Mix Elements of

McDonalds Corporation

Submitted to:

Submitted By:

Mr.Gaurav

Shivam Chhabra
Batch: 2008-11
Roll No .0902151708

Chanderprabhu Jain College of Higher Studies & School of Law

Towards Excellence, Everyday

(Recognized by Govt. of NCT of Delhi and Affiliated to GGSIP University, Delhi)

Plot No. OCF, Sector-A- 8, Narela, Delhi-110040
Tel: 91-11-27284333/34. Fax: 91-11-27284335. Website: www.cpj.edu.in E-mail:
cpj.chs@cpj.edu.in

DECLARATION

This is to certify that Report entitled which

is submitted by me in partial fulfillment of the requirement for the award of degree
of Bachelor of Business Administration to G.G.S.I.P.University, Kashmere Gate,
Delhi, comprises only my original work and due acknowledgement has been
made in the text to all other material used.

Name & signature of Student

Enrolment no.

Name of the Guide

Date:

CERTIFICATE

This is to certify that Report entitled . which is submitted

by in partial fulfillment of the requirement for the
award of degree of Bachelor of Business Administration to G.G.S.I.P.University,
Kashmere Gate, Delhi, is a record of the candidate own work carried out by him
under my supervision. The matter embodied in this thesis is original and has not
been submitted for the award of any other degree.

Date:

Supervisor

ACKNOWLEDGEMENT
With profound sense of gratitude and regard, I express my sincere thanks to my
guide and mentor for the valuable guidance and the confidence he instilled in me,
that helped me in the successful completion of this project report. Without his help,
this project would have been a distant affair. His thorough understanding of the
subject and the professional guidance is indeed of immense help to me.
I express my sincere gratitude to my Industry guide Mr. Rahul Gupta, Branch Manager of
Mc Donalds Corporation for their able guidance, continuous support and cooperation
throughout my project, without which the present work would not have been possible.
I would also like to thank the entire team of McDonalds, for the constant support and
help in the successful completion of my project.

Shivam Chhabra

Roll No. 0902151708

TABLE OF CONTENTS
S. No TOPIC
1.

2.

Page. No

CHAPTER-1.0 INTRODUCTION
1.1 OVERVIEW OF INDUSTRY AS A WHOLE

1.2 PROFILE OF THE ORGANISATION

18

1.3 PROBLEMS OF THE ORGANISATION

44

1.4 COMPETITION INFORMATION

45

1.5 S.W.O.T ANALYSIS OF THE ORGANISATION

51

CHAPTER-2.0 OBJECTIVES AND METHODOLOGY

2.1 SIGNIFICANCE

59

2.2 MANAGERIAL USEFULNESS OF THE STUDY

60

2.3 OBJECTIVES

61

2.4 SCOPE OF STUDY

61

2.5 LIMITATIONS

62

2.6 METHODOLOGY

63

3.

CHAPTER-3.0 CONCEPTUAL DISCUSSION

64

4.

CHAPTER-4.0 DATA ANALYSIS

77

5.

CHAPTER-5.0 FINDINGS AND RECOMMENDATIONS

92

ANNEXURE

QUESTIONNAIRE
BIBLIOGRAPHY

CHAPTER- 1

INDUSTRY
OVERVIEW
(FAST FOOD INDUSTRIES)

Fast Food Industry

Introduction
The fast food industry is on a high as Indians continue to have a feast. Fuelled by what
can be termed as a perfect ingredient for any industry large disposable incomes the
food sector has been witnessing a marked change in consumption patterns, especially in
terms of food. An increasing number of international fast food chains rushing to India is
because all of them see tremendous potential in for this type of business. The large
upwardly mobile population in the urban areas tend to eat out more often or business or
for leisure.
The various players operating in India are the well established Indian chains like Nirulas,
Haldirams and multinational companies like McDonalds, Pizza hut, Dominos pizza, etc.
In addition to these, apparently some of the best known international food chains are
looking at India. Among them are Sbarro, The Burger King, KFC, Dunkin Donuts, Sub
-way, etc. are some of them to name. At present all these players are fighting for a small
pie, as fast food is really not a big habit with Indians, but they see a big potential.
The players are fighting on products, pricing, positioning and trying to convert their first
trials into regular purchase by providing delightful service quality. The focus is on
product quality and standardization on taste. Consistency is the key, as its standardization
in fast food as the consumer is short on time and wants to satisfy his taste buds with a
consistent taste experience.
Beyond this each player has its own strategy to expand consumer base.
- Some feel that pricing is not the deciding factor since fast food is not price sensitive
market because it is not a single diet of Indians.
- Some others are competing on positioning which is surprisingly varied, giving the small
size of the market.
- For most, targeting children seems the right strategy.
- Advertising is popular.

However, with competition hooting up most chains are increasing reach as well as
working on establishing a national presence.
There were disturbances in India when it was learned that McDonaldss were pre-cooked
in beef fat in the USA, because Hindus revere cows and cannot eat beef.

Trends in the fast food industry

The industry is estimated to grow at 9-12 per cent, on the basis of an estimated GDP
growth rate of 6-8 per cent, during the Tenth Five year plan period. Value addition of
food is expected to increase from the current 8 per cent to 35 per cent by the end of 2025.
Fruit and vegetable processing, which is currently around 2 per cent of total production
will increase to 10 per cent by 2010 and to 25 per cent by 2025.
The popularity of food and agro products is not surprising when the sector is now
offering a growth of more than 150 per cent in sales. While US brands such as
McDonalds, Pizza hut and Kentucky Fried Chicken have become household names,
more are on their way.

The Market Scenario

India among top 10 market for weekly fast food consumption, an online survey has
found. Most of the countries are from the Asia-pacific region, with the US being the
exemption.
According to an A C Neilson study of 28 markets across the US, Europe and the AsiaPacific, carried out through the internet in interviews with more than 14000 consumers,
Asians are the worlds greatest fast food fans.
Percentage of adult population eating at takeaway restaurants at least once every week:
Hong Kong
Malaysia
Philippines
Singapore
Thailand

61 %
59 %
54 %
50 %
44 %

China

41 %

India

37 %

Europe

11 %

Among the international fast food chains and local operators, McDonalds emerges as the
most popular of all takeaway options with 54% of Americans, 75% of Europeans and
64% of Asians.
McDonalds is most visited in Australia (84%)
KFC is most visited in China (42%)
Pizza hut is most visited in India (22%)
A typical fast food meal in the India & other Multinational companies consists of fries
and a burger (or other main item).

History
The concept of ready-cooked food for sale is closely connected with urban development.
In Ancient Rome cities had street stands that sold bread and wine. A fixture of East
Asian cities is the noodle shop. Flatbread and falafel are today ubiquitous in the Middle
East. Popular Indian fast food dishes include vada pav, panipuri and dahi vada.Some
trace the modern history of fast food in America to July 7, 1912 with the opening of a fast
food restaurant called the Automat in New York. The Automat was a cafeteria with its
prepared foods behind small glass windows and coin-operated slots. Joseph Horn and
Frank Hardart had already opened the first Horn & Hardart Automat in Philadelphia in
1902, but their Automat at Broadway and 13th Street, in New York City, created a
sensation. Numerous Automat restaurants were built around the country to deal with the
demand. Automats remained extremely popular throughout the 1920s and 1930s. The
company also popularized the notion of take-out food, with their slogan Less work for
Mother. The American company White Castle is generally credited with opening the
second fast-food outlet in Wichita, Kansas in 1921, selling hamburgers for five cents
from its inception and spawned numerous competitors.

It is arguable because most historians and Secondary School textbooks state that A&W
was the first fast food restaurant, which opened in 1919.After discovering that most of
their profits came from hamburgers, the brothers closed their restaurant for three months
and reopened it in 1948 as a walk-up stand offering a simple menu of hamburgers, french
fries, shakes, coffee, and Coca-Cola, served in disposable paper wrapping. As a result,
they were able to produce hamburgers and fries constantly, without waiting for customer
orders, and could serve them immediately; hamburgers cost 15 cents, about half the price
at a typical diner. Their streamlined production method, which they named the "Speedee
Service System" was influenced by the production line innovations of Henry Ford.
In the cities of Roman antiquity, much of the urban population living in insulae, multistorey apartment blocks, depended on food vendors for much of their meals. On New
Year's Day 2008 a study was conducted worldwide counting the number of fast food
restaurants per person. The UK has claimed this title with Australia second and the
United States third. England alone accounted for 25% of all fast food.

Jobs and Labor Issues

First the issue of labor costs. Employees are the backbone of the fast food industry.
Proper training is crucial to the orderly and quick service customers expect. Yet,
employee turnover can be as high as 200% per year. With such a turnover, owneroperators of franchise and non-fanchise restaurants have the daunting task of constantly
training an entirely new workforce. Policies and procedues need to be explained to each
new employee. The second issue facing all employers and especially fast food restaurant
owner-operators is the steady increase in employment practices lawsuits. The restaurant
industry with its high emotional content is a frequent target of discrimination claims.
About 500 employment practices lawsuits are filed in the United State everyday. Many
employers believe that the greatest legal threat that companies face are employee
lawsuits.

The various players operating in Fast Food Industry in India & as well as outside India
are being discussed below. It includes Sbarro, Burger King, Dunkin Donuts, kfc, &
Subway which are competitors of Mc Donalds & also come under overview of Industry.

Sbarro
.

Type
Founded

Private (familyowned)
Brooklyn, New York

(1967)
Headquarters Melville, New York
Number of
1,064
locations
Peter Beaudrault,
President and CEO
Anthony J. Puglisi,
Key people

VP and CFO,
Anthony Missano,
Stuart M. Steinberg,

Industry
Products
Revenue
Website

John Brisco
Fast Food
Pizza, Pasta
$354.4 million
(2006)
www.sbarro.com

Sbarro is a chain of pizza restaurants that sells pizza and other Italian dishes. The chain
specializes in traditional Italian cuisine selling mostly "by the slice."

History
Sbarro was founded by Gennaro and Carmela Sbarro. In 1956, the Sbarro family opened
their first Salumeria (an Italian grocery store) in Brooklyn, which became popular for its
fresh food and genuine Italian fare. Their Sbarro Italian Delicatessen in Brooklyn, N.Y.
was well received by the local community and was the first of a successful chain. The
success of the Sbarro Salumeria led to the opening of more locations throughout the New
York City area. In 1970, Sbarro opened its first mall-based restaurant in Brooklyn's Kings
Plaza Shopping Center, marking the beginning of the modern Sbarro concept: Italian
food in an open kitchen that allowed for fast self-service.

Brands

Sbarro 1,064 locations worldwide.

Sbarro restaurants are located in shopping malls, airports, service areas, cinemas &
college campuses. Sbarro has 1,064 located Fast food restaurant.

Some trace the modern history of fast food in America to July 7, 1912 with the opening
of a fast food restaurant called the Automat in New York. The Automat was a cafeteria
with its prepared foods behind small glass windows and coin-operated slots. Automats
remained extremely popular throughout the 1920s and 1930s. The company also
popularized the notion of take-out food, with their slogan Less work for Mother.As a
result, they were able to produce hamburgers and fries constantly, without waiting for
customer orders, and could serve them immediately; hamburgers cost 15 cents, about half
the price at a typical diner. Nearly from its inception, fast food has been designed to be
eaten "on the go" and often does not require traditional cutlery and is eaten as a finger
food.

Major international brands

McDonald's, a noted fast food supplier, opened its first franchised restaurant in the US in
1955 (1974 in the UK). Other prominent international fast food companies include
Burger King, Subway, Kfc, Dunkin Donuts, etc.

Major North American brands

Dunkin' Donuts, a New England based chain that emphasized and refined the commissary
model of food preparation; KFC, a part of the largest restaurant chain in the world, and
Domino's Pizza, a pizza chain known for popularizing home delivery of fast food.
Subway restaurants are known for their sub sandwiches and Subway is the largest
restaurant chain to serve such food items. The Subway restaurant chain is the fastest
growing restaurant chain in the world surpassing even McDonald's.

Burger King

Burger King

Type

Public (NYSE: BKC)

Founded

December 4, 1954 in
Miami, Florida, USA

Founder(s)

James Mc Lamore and

David Edgerton

5505 Blue Lagoon Drive,

Headquarters Miami-Dade Co, Florida
(near Miami)

Key people

Brian Thomas Swette

(Chairman)
John Chidsey (CEO)
Ben K. Wells (CFO)

Industry

Fast food

Products

Fast Food
(hamburgers chicken
french fries soft drinks
milkshakes salads
desserts breakfast)

Revenue

$2.234 billion USD (2007)

9.4% over 2006

Operating
income

$290.00 million USD

(2007)
70% over 2006[1]

Net income

$148 million USD (2007)

548.1% over 2006[1]

Employees

41,000 (2008)

Parent
Website

Burger King Holdings Inc.

burgerking.com

At the end of its fiscal year 2008, Burger King reported that there are more than 11,550
outlets in 71 countries; 66% are in the United States and 90% are privately owned and
operated. The company has more than 37,000 employees serving approximately 11.4
million customers daily.

Corporate Profile
History
The predecessor to what is now called Burger King was founded in 1953 in Jacksonville,
Florida as Insta-Burger King. The original founders and owners, Kieth J. Kramer and his
wife's uncle Matthew Burns, opened their first stores around a piece of equipment known
as the Insta-Broiler..The rights to open stores in Miami, Florida belonged to two
businessmen named James McLamore and David R. Edgerton, both alumni of the Cornell
University School of Hotel Administration. McLamore visited the original McDonald's
hamburger stand belonging to Dick and Mac McDonald in San Bernardino, California;
sensing potential in their innovative assembly line-based production system, he decided
to open a similar operation of his own. Their first Insta-Burger King's opened on
December 4, 1954 in a suburb of Miami, Florida, and by 1959.
The company eventually became known as Burger King Corporation and began selling
territorial franchise licenses to private owners across the US by 1961.

International expansion

10

Over the ten year period starting in 2008, Burger King sees 80% of its market share to be
driven by foreign expansion, particularly in the Asia-Pacific and Indian subcontinent
regional markets. The company plans to add over 250 stores in these Asian territories, as
well as other countries such as Macau, by the end of 2012.

Its expansion into the Indian market has the company at a competitive disadvantage with
other fast food restaurants such as KFC because the country's large Hindu majority's
aversion to beef. At the end of its fiscal 2008 year, Burger King is the second largest
chain of hamburger fast food restaurants in the world behind industry bellwether
McDonald's (31,000 locations) and the fourth largest fast food restaurant chain overall
after Yum! Brands (34,000 locations), McDonald's and Subway (28,400 locations).

Industry innovations

In the early 1970s, Burger King was the first fast-food restaurant to offer an enclosed
and air-conditioned seating area.

KFC
KFC Corporation

11

Type

Private (subsidiary of
Yum! Brands)
1929 (original) (North
Corbin, Kentucky)

Founded

1952 (franchise)
(South Salt Lake,

Utah)
Founder(s) Harland Sanders
Headquarters Louisville, Kentucky
Roger Eaton
President
Key people

Harvey R. Brownlea
COO
James O'Reilly VP for

Industry

Marketing
Fast food
Fried Chicken,

Products

Grilled chicken,
related Southern foods

Revenue
Employees
Parent
Website

$520.3 million USD

(2007)
24,000 (2007)
Yum! Brands
http://www.kfc.com

12

KFC Corporation, or KFC, founded and also known as Kentucky Fried Chicken, is a
chain of fast food restaurants based in Louisville, Kentucky.

History
The restaurant in North Corbin, Kentucky where Colonel Sanders developed Kentucky
Fried Chicken World's first KFC in South Salt Lake, Utah, since replaced by a new
KFC on the same site. The company owned many Northern Ohio diner-style restaurants,
the last of which closed in 2004. Sanders sold the entire KFC franchising operation in
1964 for $2 million USD . Since that time, the chain has been sold three more times, most
recently to PepsiCo, which made it part of its Tricon Global Restaurants division,
which in turn was spun off in 1997, and has now been renamed to Yum! Brands.
Additionally, Colonel Sanders' nephew, Lee Cummings, took his own Kentucky Fried
Chicken franchises (and a chicken recipe of his own) and converted them to his own
"spin-off" restaurant chain.Today, some of the older KFC restaurants have become
famous in their own right. It is often used as a travel reference point in the Atlanta area
by locals and pilots. In India, KFC has not established itself in any large way as opposed
to another Yum! brand-name restaurant, Pizza Hut, which is prevalent in most Indian
cities. It has outlets in Chandigarh, Pune, New Delhi,Lucknow, Mumbai, Hyderabad,
Bangalore, Kolkata and Chennai. The success of the Mumbai restaurant led KFC to
introduce the hot and spicy chicken flavor which is more acceptable to the Indian palate.
More recently, KFC has opened outlets in Vashi, Navi Mumbai.

DUNKIN DONUTS
Dunkin' Donuts

Type

Wholly owned subsidiary

13

Founded 1951
Founder(s) William Rosenberg
Dunkin' Brands
Headquarters

130 Royall Street

Canton, Massachusetts, U.S.
Phone: 781-737-3000
Jon L. Luther, (CEO)

Key people Will Kussell (COO)

Industry
Products
Revenue
Owner(s)
Parent
Website

Kate LaVelle, (CFO)

Fast food
Doughnuts Coffee Bagels
Muffins Breakfast sandwiches
$4.4 billion USD (August 2006)
Carlyle Group, Bain Capital, and
Thomas H. Lee Partners
Dunkin' Brands
DunkinDonuts.com

Dunkin' Donuts is an international donut and coffee retailer founded in 1951 in Quincy,
Massachusetts by William Rosenberg. It is now headquartered in Canton, Massachusetts.

Corporate Profile
History
A Dunkin' Donuts/Baskin-Robbins co-brand in New Castle, Pennsylvania. One of two
Dunkin' Donuts locations in New Castle, this store is a former Mister Donut converted to
Dunkin' in 1994 and completely rebuilt in 2003 with the addition of Baskin-Robbins and
a drive-thru.Dunkin' Donuts claims to be the "world's largest coffee and baked goods
chain", serving 2.7 million customers per day at approximately 8,000 stores in 30
countries which includes approximately 6,400 Dunkin' Donuts locations throughout the
USA. This figure compares with the 15,011 stores of coffee chain Starbucks, whose
baked goods are usually prepared out of shop. Most Dunkin' Donuts stores are franchises.
Dunkin' Donuts, along with Baskin-Robbins, is owned by Dunkin' Brands Inc. Dunkin'
Brands used to own the Togo's chain, but sold this in late 2007 to a private equity firm.
14

Dunkin' Brands was owned by French beverage company, Pernod Ricard S.A. after it
purchased Allied Domecq. They reached an agreement in December 2005 to sell the
brand to a consortium of three private equity firms, Bain Capital Partners, the Carlyle
Group and Thomas H. Lee Partners.Most of their business competition comes from small
locally owned stores, Krispy Kreme doughnuts and Starbucks; in Canada and parts of the
Great Lakes region, Tim Hortons is a major competitor.

Expanding its operations

The move is the first of its plans to expand its operations into lodging facilities, airports
and sports arenas. In June 2009, Dunkin' Donuts announced the opening of at least 12
Dunkin' Donuts restaurants in the Dayton, Ohio region. All twelve of the stores are set to
be opened by 2011.

Subway
Subway

Type

Private
Bridgeport,

Founded

Founder(s)
Headquarters

Connecticut, USA
(1965)
Fred De Luca and Peter
Buck
Milford, Connecticut,
USA

15

Fred De Luca
(President)
Millie Shinn (EVP)
Key people David Worroll
(Controller)
David Cameron (Chief
Marketing Officer)
Industry

Fast Food
Sandwiches

Products

Revenue
Website

Salads
Pizza
Other food products
$9.05 billion USD
(2006)
Subway.com

Subway is a fast food franchise that primarily sells submarine sandwiches, salads and
single dish pizzas. It is owned and operated by Doctor's Associates, Inc. (DAI). Subway
is one of the fastest growing franchises in the world with approximately 31,129
restaurants in 90 countries as of May 2009. It is the second largest restaurant operator
globally after Yum! Brands (35,000 locations). In 1999, an Indiana University student
named Jared Fogle lost 245 pounds (110 kg) with a diet made up mostly of Subway
sandwiches combined with exercise.

History
Subway's logo used from 1974 to March 3, 2002. Still in use on many older location
Fred De Luca borrowed $1,000 from family friend Peter Buck to start his first sandwich
shop in 1965, when he was only 17 years old. He was trying to raise money to pay for
college. He chose a mediocre location for his shop, but by noon on the first day of the
opening, customers were pouring in. As of December 30, 2008, the company has 19,310
franchised locations in 87 countries and produces US$9.05 billion sales every year. In
2007For instance, there are over 900 Subway locations inside of Wal-Mart stores and 200
16

on military bases, including several in Iraq, in addition to three located inside The
Pentagon - as well as an increasing number on college and university campuses.Subway
restaurants have been consistently ranked in Entrepreneur Magazine's Top 500
Franchises, and was selected as the #2 overall franchise in 2008. Additionally, it was
ranked as the #3 "Fastest Growing Franchise", and the #1 "Global Franchise" as well.
Local franchisees operate the stores, and in most markets Subway enters into a contract
with a franchisee to be its Development Agent for that market. DAI takes an 8% royalty
on all net sales from each store. Global locations:Subway is present in 87 countries and
territories.

Company Profile
McDonalds India
McDonalds in India is a 50-50 joint venture partnership between McDonalds
Corporation [USA] and two Indian businessmen. Amit Jatias company Hardcastle
Restaurants Pvt. Ltd. owns and operates McDonald's restaurants in Western India. While
Connaught Plaza Restaurants Pvt. Ltd headed by Vikram Bakshi owns and operates the
Northern operations.
Amit Jatia and Vikram Bakshi are like-minded visionaries who share McDonald's
complete commitment to Quality, Service, Cleanliness and Value (QSC&V). Having
signed their joint-venture agreements with McDonald's in April 1995, they trained
extensively, along with their Indian management team, in McDonald's restaurants in
Indonesia and the U.S.A. before opening the first McDonalds restaurant in India.
Mc Donalds international through its wholly owned subsidiary mc Donalds India
entered into two JVs, one with connaught plaza restaurants pvt. Ltd. In the northern &
eastern region and another with hard castle restaurants pvt. Ltd. In the western &
southern region.

17

As a leader in QSRV (Quick Service Restaurant Value) segment McDonalds has

pioneered various industry benchmark practices over the past decade of serving Indian
customers, including new concepts such as:
# Oil alliances in India by linking with petroleum giants BPCL and HPCL. Three such
alliances with BPCL outlets are in Mathura (2000), (up).
#Doraha (2002) (Punjab) and Chanakyapuri (new delhi-2005)
# Novel menu formats such as an Express model with a limited menu and kiosks with a
variety of desert offerings.
# Home delivery (Mcdelivery -2004); providing even more convenience to our
customers.
# In 2006, Mcdelivery on bicycle at chandni chowk and
#2007 all India single delivery number were introduced.
# First drive thru restaurant in India at Noida (up) in1997.

Restaurant count
McDonalds has 122 restaurants in India of which 72 are in north & east India and 50 in
west & south India .

Key Facts ~ McDonalds

Type Public (NYSE: MCD)
Founded May 15, 1940 in San Bernardino, California
Founder Dick and Mac McDonald
Headquarters Oak Brook, Illinois, USA
No. of locations 31,000+ worldwide
Ray Kroc, corporate founder
Key people Jim Skinner, CEO
Ralph Alvarez, president and COO
Industry Restaurants

18

Fast Food (including hamburgers, chicken products, french

Products fries, milkshakes, salads, desserts, breakfast items, and
children's meal ensembles)
Revenue $20.460 Billion USD (2008)
Net income $2.602 Billion USD (2008)
Employees 447,000 (2008)
Slogan i'm lovin' it

McDonald's vision
McDonald's vision is to be the world's best quick service restaurant experience. Being the
best means providing outstanding quality, service, cleanliness, and value, so that we make
every customer in every restaurant smile.

McDonald's Mission Statement

Be the best employer for our people in each community around the world

Deliver operational excellence to our customers in each of our restaurants; and

Achieve enduring profitable growth by expanding the brand and leveraging the
strengths of the McDonald's system through innovation and technology.

History
McDonalds journey so far..
Key Landmarks - McDonald's India Journey
1996 First McDonalds restaurant opened on 13 Oct, at Vasant Lok, Vasant Vihar
New Delhi. It was also first McDonalds restaurant in the world not serving beef on
its menu.
1996 First drive thru restaurant at Noida , U.P.
First disabled friendly store at Noida , U.P.

19

First mall location restaurant at Ansal plaza, New Delhi

1999

First highway restaurant at Mathura ,up

2000

First thematic restaurant at connaught place, new Delhi

2001

First restaurant in a food court at 3Cs Lajpat Nagar , New Delhi

First restaurant at Delhi metro station at inter state bus terminal
First annual fundraiser in association with ORBIS and Dr. Shroffs charity eye

hospital Delhi.
2002
2003

First Desert kiosk Faridabad, Haryana.

Indigenous products like mcaloo tikki, mcveggie and pizza mcpuff exported to
Middle East countries.

2004

Mc Donalds delivery service, mcdelivery introduced in New Delhi

2006

Mc Delivery on bicycles flagged off at Chandni Chowk (Delhi) another first

initiative by McDonalds India.

2007

First restaurant opened in the eastern region at Park Street, Kolkata (west
Bengal.)

2008

First Restaurant opened in Faridabad.

2009

Mc Delivery introduced in Chandni Chowk.

FUTURE ASPECTS OF Mc Donalds

McDonalds Future Includes Hipper Stores, New Menu Items:
New chicken sandwiches. Double-lane drivethrus. And an adjoining McCafe with
gourmet coffees, fancy pastries and a fireplace. McDonald's, or 30,000-plus worldwide;
the Oak Brook restaurant, which opened late last month, doubles as public restaurant and
test site. The company reported first-quarter operating income was up 6 percent to $910
million and revenue rose 9 percent to $4.8 billion over the same time last year. Its stock
price nearly tripled over a two-year period, hitting a four-year high of $34.56 per share in
March, but has since settled around $29. About 1,000, mostly older U.S. McDonald's
have been either renovated or rebuilt since 2002. Some of the additions, such as salads,
20

white-meat chicken nuggets and fruit options with Happy Meals, have served the dual
purpose of enabling the company to state a commitment to a healthier, balanced menu
while bringing in new customers who aren't there for the hamburgers. McDonald's plans
to introduce more premium coffees later this year, but at its traditional restaurants.

Mc Donalds to open 180- 190 Restaurants in India

Fast-food chain McDonald's India today said it plans to open 180-190 company-owned
restaurants by 2015 with an estimated investment of up to Rs 570 crore. We have 157
restaurants now, including between 30 to 40 this year," McDonald's India Managing
Director Amit Jatia said it generally takes around Rs 3-crore investment to open a
restaurant. It caters to 30 cities. The company expects sales to grow by 35 per cent this
year. It had recorded around the same level of growth in 2008, as well. McDonald's India,
employs over 5,000 people now and as proposed new restaurants are opened up, the total
headcount will go past the 12,000-mark. "We generally employ 40 people in a
restaurant," Jatia said. Delhi and Mumbai are the two biggest markets for the company in
terms of sales, while cities like Hyderabad and Bangalore are also fast catching
up. McDonald's India plans to open 7 new restaurants in Bangalore this year. McDonald's
India caters to 3-4 lakh customers in a day across the country.

GDP Growth
National Average GDP Annual Growth
1962- 1992 : 3.5%
1992- 2002 : 6.0%
2002- 2020 : (Projected) 7.0%
Highest Average Annual GDP Growth
States with Coastal Access or high Urbanisation 6- 8%

21

Lowest Average Annual GDP Growth : 2%

According to a study by National Applied Economic Research (2004), the number of
households with an annual income over Indian Rupees (Rs.) 1 crore (US $228,351) has
grown by 26% since 1995-96 to 20,000 in 2001-02. By 2009-10, it will increase more
than seven times to 1,40,000 households. Rs. 50 lakh (US $114,180) to Rs. 1 crore (US
$228, 351) bracket 6 the number of households is expected to increase from 40,000 in
2001-02 to over 250,000 in 2009-10.

Product Profile

22

Vegetarian menu

23

Vegetarian ingredients
Vegetables- We use freshly shredded lettuce, onions and tomatoes in our restaurants. All
our vegetable products are processed from high quality graded vegetables in a 100%
dedicated vegetarian plant.
Potatoes - McDonald's world-famous French Fries and our 'chatpatey' Potato Wedges are
produced only from the best quality potatoes. These potatoes are cut, blanched and
processed on state-of-the-art processing lines to ensure maximum retention of nutrients.
Our French Fries and Potato Wedges are cooked at the plant and our restaurants in 100%
vegetable cooking oil.

24

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

Nutrition at glance
Serving
size
in gms
172

Fat
Protein Carb.
in
in gms / in gms /
gms /
serve
serve
serve
8

60

25

Calories
Fat
in kCal / Protein% Carb%
%
serve
491

35

14

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

Nutrition at glance
Serving
size
in gms

Protein
in gms /
serve

150

Carb.
Fat
in gms / in gms
serve / serve
53

15

Calories
in kCal / Protein% Carb% Fat %
serve
367

35

10

25

Paneer Salsa Wrap

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

Nutrition at glance
Serving
size
in gms

Protein
in gms /
serve

194

16

Carb.
Fat
in gms / in gms
serve / serve
39

27

Calories
in kCal / Protein% Carb% Fat %
serve
463

20

14

26

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

Nutrition at glance

Serving Protein
size
in gms /
in gms
serve
144

Carb. Fat
in
in
gms / gms /
serve serve
50

19

Calories
in kCal / Protein% Carb% Fat %
serve
400

34

13

Veg McCurry Pan [Brocolli n

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

Nutrition at glance
Serving
size
in gms

Protein
in gms /
serve

190

18

Carb.
Fat
in gms / in gms
serve / serve
48

11

Calories
in kCal / Protein% Carb% Fat %
serve
365

10

25

27

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

Nutrition at glance
Serving
size
in gms

Protein
in gms /
serve

80

Carb.
Fat
in gms / in gms
serve / serve
26

14

Calories
in kCal / Protein% Carb% Fat %
serve
245

33

17

Non-Vegetarian menu

28

Non-Vegetarian ingredients
Chicken
The chicken patties are made from high quality boned breast and leg meat and are
covered in a specially seasoned, lightly battered coating. They are shaped in uniform
sizes to ensure consistency in weight and value.

Fish

29

The fish patties in McDonald's Filet -O-Fish are 100% pure whole white fillets that are
lightly breaded. The fish comes from a variety caught around the south-west coast of
India.

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

Serving
size
in gms

Protein
in gms /
serve

Carb.
in gms /
serve

Fat
in gms /
serve

255

32

54

26

Calories
in kCal /
serve

Protein%

Carb%

Fat %

573

12

21

10

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

30

Serving
size
in gms

Protein
in gms /
serve

Carb.
in gms /
serve

Fat
in gms /
serve

145

13

49

23

Calories
in kCal /
serve

Protein%

Carb%

Fat %

462

11

19

31

Chicken Mexican Wrap

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

Protein
in gms /
serve

192

14

Carb.
Fat
in gms / in gms
serve / serve
37

21

Calories
in kCal / Protein% Carb% Fat %
serve
392

19

11

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

Nutrition at glance
Serving
size
in gms

Protein
in gms /
serve

140

16

Carb.
Fat
in gms / in gms
serve / serve
35

12

Calories
in kCal / Protein% Carb% Fat %
serve
309

11

25

Beverages

32

Cappucino, Caf Mocha, Plain Tea,

Cardamom Tea, Hot Chocolate
Nutrition at glance
Carb. Fat
Protein Calories
Serving
in
Type
in
in
Fat
size
Protein% in gms Carb%
(Quantity)
gms / kCal /
%
in gms
gms / /
serve serve
serve serve
Cappuccino 150
4
4
2
50
3
3
1
Caf
150
4
4
2
47
3
3
1
Mocha
Plain Tea
150
2
8
1
46
1
5
0
Cardamom
150
2
8
1
47
1
5
0
Tea
Hot
150
4
17
1
90
3
11
0
Chocolate

McShakes
Nutrition at glance
Carb.
Protein Calories
Serving
Type
in
in
size
Protein% in
(Quantity)
gms / kCal /
in gms
gms /
serve serve
serve
275
7
52
7
298
Chocolate
400
10
75
10
433
(S/M/L)
500
13
94
13
541
275
7
46
7
270
Strawberry
400
10
67
10
393
(S/M/L)
500
12
84
12
491

33

Fat
in
Fat
gms Carb%
%
/
serve
3
19
3
3
19
3
3
19
3
2
17
2
2
17
2
2
17
2

Coca Cola, Fanta & Sprite

Nutrition at glance
Carb. Fat
Protein Calories
Serving
in
Type
in
in
Fat
size
Protein% in gms Carb%
(Quantity)
gms / kCal /
%
in gms
gms / /
serve serve
serve serve
300
0
32
0
126 0
11
0
Coca Cola
400
0
42
0
128 0
11
0
(S/M/L)
500
0
53
0
210
0
11
0
300
0
39
0
156 0
13
0
Fanta
400
0
52
0
208 0
13
0
(S/M/L)
500
0
65
0
260 0
13
0

34

Deserts

35

36

Here are 3 golden rules that will help you to choose the right kind of food:
- Balance - have the right mix of nutrients in your daily diet. Dont compromise one for
the other.
-Moderation eat neither too much nor too little of any one nutrient.
-Variety include a range of food types in your meals.

37

Achievements
McDonald's India - A decade of quality service
For its unparalleled benchmarks established in the QSRV sector McDonalds India has
been bestowed with many prestigious awards. To name a few:
# Most respected company for four consecutive years, 2004-2008 in the food services
sector by business world.
# Most wanted brand of the year award 2003 & 2004 by franchising holdings India ltd.
# Retailer of the years award for catering services 2004-2006 at the images retail awards.
# The most preferred fast food outlet 2006 & 2007 by awaaz consumer award hosted by
CNBC.
# Star retailer the consumer way, food services retailer of the year 2006 by franchise
India.
# Amity corporate excellence award in 2007.
#Quality Preservance Award in 2008
# Best Servicing Award in 2009.

McDonalds Global Sales Rise (Sales Performance)

U.S. and European sales drive strong performance McDonald's Corp. (Oak Brook, Ill.)
reports its global comparable sales rose 2.2 percent in August. By segment, same-store
sales grew 1.7 percent in the U.S. and 3.5 percent in Europe, while sales in the
Asia/Pacific, Middle East and Africa market dropped 0.5 percent.

38

McDonald's Corporation (MCD) :

ORGANISATIONAL STRUCTURE:
There are basically two structures! One is the senior management side, the other is the
restaurant side.
At Restaurant Level: General Manager

Restaurant Manager

1st Assistant Manager

2nd Assistant Manager

Shift Running Manager

Floor Manager

Staff Training Crew

Crew Members.

39

McDONALD'S SENIOR MANAGEMENT

PAUL PRESTON
Chief Executive Officer
+--------------+--------------- -+--------------+------------------+
|

Andrew

Marcus

Terence

Ed

Taylor

Hewson

Haynes

Operations

Marketing

Oakley
|

Finance

Field Services

Franchising

Information

Training/Ops-

Charities

Services

Development

Security

Human Resources

Purchasing
Quality

|
Philip
Cobden
|
Property
Construction/

Assurance

Design

Communications

Facilities

Local Govt.

McDonalds India.. Culturally sensitive

McDonald's in India is a locally owned and managed company run by Indians, employing
local staff, procures from local suppliers to serve its customers. McDonald's India opened
its first family restaurant at Basant Lok in Oct, 1996; today it has 122 Restaurants across
India. This vibrant decade has seen McDonald's evolve Indian menus, Indian sensitivities
and yet remain as globally innovative as ever. This journey has seen McDonald's develop
a rich brand identity amongst its customers and employees as well as partners alike.
At McDonalds India we have had a single mantra: providing 100% total customer
satisfaction and the formula for achieving this goal in our restaurant operation is the longstanding commitment to the McDonalds Promise. McDonalds worldwide is well known
for the high degree of respect for the local customs and culture. McDonalds has
developed a menu especially for India with vegetarian selections to suit Indian tastes and
preferences. Keeping in line with this, McDonalds does not offer any beef or pork items
in India.

40

In the last decade it has introduced some vegetarian and non-vegetarian products with
local flavors that have appealed to the Indian palate. There have been continuous efforts
to enhance variety in the menu by developing more such products.
McDonalds has also re-engineered its operations repeatedly in its 11 years in India to
address the special requirements of a vegetarian menu. Vegetable products are 100%
vegetarian, i.e.
- they are prepared separately, using dedicated equipment and utensils
- Only pure vegetarian oil is used as a cooking medium.
- Cheese and sauces are completely vegetarian and egg less.
- Separation of vegetarian and non-vegetarian food products is maintained throughout the
various stages of procurement, cooking and serving.
- McDonald's India has developed a special menu with vegetarian selections to suit
Indian tastes and preferences. McDonald's does not offer any beef or pork items in India.
Only the freshest chicken, fish and vegetable products find their way into our Indian
restaurants.In addition, we've re-formulated some of our products using spices favoured
by Indians. Among these are McVeggie burger, McAloo Tikki burger, Veg. Pizza
McPuff and Chicken McGrill burger. We've also created eggless sandwich sauces for
our vegetarian customers. Even our soft serves and McShakes are egg-less, offering a
larger variety to our vegetarian consumers.

International Standards
McDonald's India's local suppliers provide us with the highest quality, freshest
ingredients. Complete adherence to the Indian Government regulations on food, health
and hygiene is ensured, while maintaining our own recognized international standards.
Fast, friendly service - the hallmark of McDonald's restaurants the world over is the
mantra we abide by stringent cleaning standards ensure that all tables, chairs, highchairs
and trays are sanitised several times each hour. Such meticulous attention to cleanliness
extends beyond the lobby and kitchen to even the pavement and immediate areas outside
the restaurant.
41

The principles that guide us

Quality, Service, Cleanliness & Value - It is an unflinching McDonald's ideology

that our customers must always get quality products, served quickly and with a
smile, in a clean and pleasant environment; and all at a fair price.

We are committed to exceeding our customers' expectations in every restaurant

every time.

We have a passion and a responsibility for enhancing and protecting the

McDonald's brand.

We believe in a collaborative management approach, employing a mutually

respectful business philosophy.

We will seize every opportunity to innovate and lead the industry on behalf of our
customers.

The McDonald's Promise

McDonalds Global Scenario
# McDonalds has over 30,000 local restaurants in more than 120 countries 70

percent

of our restaurants worldwide are owned and operated by independent, local businessmen
and businesswomen
# McDonalds serves nearly 50 million customers each day
# McDonalds first franchised restaurant opened at Des Plaines, Illinois in 1955 by the
founder Ray Kroc

42

# McDonalds has its own Hamburger University in Illinois, and the first batch graduated
in 1961
# 12 classes offered at Hamburger University are college accredited
# In 1963, McDonalds sold its one billionth hamburger
# McDonalds is listed on the New York, Frankfurt, Munich, Paris and Tokyo stock
exchanges
# McDonalds aired its first network TV advertisement McDonalds - Where Quality
Starts Fresh Everyday, in 1965
# The first McDonalds Drive-Thru opened in Sierra Vista, Arizona in 1975
# McDonalds launched the new worldwide Balanced Active Lifestyles public awareness
campaign in 2005
# McDonalds celebrated its 50th Anniversary on April 15, 2005

What threats did McDonalds face?

'A Threat' to McDonalds, the biggest fast-food chain in the world, is a leaflet which links
the company's meals to heart disease and cancer and accuses it of despoiling the
environment and exploiting the Third World. Bird flu no threat to McDonald's chicken:
Advertisement strategy In a bid to save its plummeting sales of chicken products in
mcdonalds, they have planned an exclusive advertisement campaign. This strategy is a
risk and pressure tactic which would ensure that is a epidemic and bird flu scare spread
they can influence the customers.

43

HOW DID Mc DONALDS HANDLE THEM?

By deliveringMcdonalds handle these threats by these possible steps. By decreasing
health problem. superior value to customers then competitors.

Mcdonald should

distribute free sample inincrease advertisement in Europe. Mcdonald have to provide

the job that persondifferent offices and colleges. Mcdonald should makewhich can
attract more customers through his stratigies. Mcdonald canplanning to avoid from
bird flu and other diseases in future. Mcdonald should provide traditional dishes .
WHAT ALTERNATIVE COULD IT HAVE CHOSEN?
Mcdonald can use following alternative to increase his value:
Mcdonald should stop his product where it's not doing well and take corrective action
and check his quality.
Mcdonald should open new restaurant in that area where fast food has important part in
the culture of that area.
Mcdonald has to choose that management which can easily understand the demand of
all customer.
Mcdonald should decrease its prices in that country where per capita is very low.
Mcdonalds should make his manuals which include traditional dishes of that area.
Mcdonald should it think at the level of middle customer rather then the high level
customer.
Mcdonald should provide bonus to his employees for better performance. "The world
has changed. Our customers have changed.

44

Problems Borne by McDonalds

Trans fats cause problems for McDonalds...

Trans fats are formed when liquid vegetable oils go through a chemical process called
hydrogenation. Common in a range of food products biscuits, chips, doughnuts,
crackers the hydrogenated vegetable fat is used by food processors because it is solid
at room temperature and has a longer shelf life.In September 2002, McDonald's issued a
statement announcing a significant reduction of trans fats in its fried menu items
french fries, chicken McNuggets, Filet-O-Fish, Hash Browns and crispy chicken
sandwiches with the introduction of improved cooking oil in all of its 13,000 restaurants.
The change was supposed to be completed by February 2003. However, McDonalds
encountered operational issues and the oil was not changed. An anti-trans fat group
claims that McDonald's deliberately allowed the public to be misled. Legal action has
forced McDonalds to give effective notice to the public that the oil was not changed. In
Europe and the US, food makers are under growing pressure from consumer groups to
cut the trans fat content in food products.

45

COMPETITORS INFORMATION:
Major players in this field:1. Nirulas
2. Pizza Hut
3. Dominoz Pizza
4. Haldirams
These day working executives are busy a lot they dont have the spare time to cook food
due to there high this possible income and ever increasing arperalional levels they prefer
to it out at this fast food outlets (McDonalds, Nirulas, Pizza Hut) where they find the
match according to there asperitional level.

1. Nirulas
Established in 1934, Nirulas today is a diversified group having a chain of elegant
Business hotels, Waiter service restaurants, Family style restaurants, Ice Cream parlours,
pastry shops and food processing plants in India.The chain with over 60 outlets operating
in 5 states successfully caters to the Indian palate of over 50000 guests every day or over
70 years.
The restaurants serves a wide variety of multi-cuisine foods, both western and Indian
including pizzas, burgers, chana kulcha, saag-roti and much more!
Ice cream parlours offers an extensive range of exciting and innovative ice cream flavors
with one new flavor added every month.Nirulas pastry shops are a one-stop shop for
bakery and confectionary items.

46

History and Background

Nirulas today is a well known name in the hospitality industry.
Nirula family was the first to offer western style fast food in India. It came to Delhi in
1928. They realized the paucity of good eating places in and around New Delhi, and
started Hotel India in 1934 with 12 rooms and a restaurant with a bar license. They also
specialized in catering to parties and soon Nirulas catering became famous.
Meanwhile, Nirulas had set up the India Coffee Shop in Janpath on request of the
Coffee board. A few years later, the Coffee Board of India seeing the success of the
international decided to run the business itself.
It 1939, whine the Second World war had started, Nirulas rented more space in
Connaught Circus (what is currently the ground floor of Nirulas, L-block) and opened a
Restaurant with music and serving a six course dinner for only Rs. 1. The restaurant
proved to be popular with both Indian and foreign guests. It also started serving Indian
food and introduced ball room dancing and caberet. However, business fluctuated widely
since it was dependent on the quality and reputation of that evenings performer. Hence,
in 1950 the restaurant with the cabaret was given up in favour of the Brasserie.
The Brasserie was a popular self service restaurant serving beer and liquor with a limited
menu of Indian and Western food. The Brasserie gave way to the Cafeteria, the first of
its kind in India with a variety of Dishes and the guests could help themselves to
whatever they fancied.
Before 1947, Nirulas had also opened the first fruit preservation unit in Delhi. The jams
and squash and other preserves were marketed under the name of Nirulas and had an all

47

India distribution. With the partition of India in 1947, the supply of raw material was
disrupted and this unit was stopped.
In 1950, Nirulas started the Chinese Room which was the first restaurant of its kind in
India. Nirulas created history by being the first Indians of non-Chinese origin to have a
Chinese food restaurant in India.
In 1954, Nirulas were the first ones to introduce espresso coffee in India. Gaggia, the
inceptors of espresso coffee machines gave Nirulas sole distribution a right for their
machines and Nirulas sold these to the luxury hotels and first class restaurants. Nirulas
store was opened in the 1950s with a section for cold meat and delicatessen products and
a separate section for bakery and confectionery produce.
Nirulas Hotel was started in 1958 and was the first modern 3-star hotel in India. In 1960
two specialty restaurants were opened. La Bohame was a modern restaurant where tea,
coffee, snacks and meals were very popular. It was the most popular restaurant of its time
in India. Gufa was an Indian restaurant with Indian style seating and an all silver thali
service in a romantic atmosphere.
The Pastry shop was independently introduced in 1972 and did externally well. The quick
service food business was again ventured into by the opening of the Snack bar in 1972
and Hot Shoppe in 1977, which was instant success. The first Ice Cream Par lour in India
was started in 1978. Potpourri restaurant with the first salad bar in India and the Pegasus
Bar were started in 1979. All of these exist till today.

48

2. Pizza hut

Pizza Hut is the largest pizza restaurant company in the world. It has 12700 outlets in 90
countries. Pizza Hut has an aggressive expansion plan for India. It intends to have 100
outlets by the end of 2004. Pizza Hut will consolidate its presence in cities where it
already exists as an endeavor to create a major share of these profitable markets first
before spreading to other markets. Pizza Hut is one of the largest pizza brands. Further,
all new outlets in India would be franchisee owned resulting from the smooth functioning
of the existing stores which are all franchisee owned. Hence, the same arrangement will
be followed in the future to ensure growth-oriented results.The data written below
represent what Pizza Hut is all about and gives a brief profile of the company.

Their main quote:

"Customer is the reason that we are here."

No customers

No Pizzas

Thats the secret ingredient.

The 5 secret principles:

49

Employees are our secret ingredients.

Show your "care".

Say "yes" to customers

Satisfied, capable teams create satisfied customers.

In 1996 Pizza hut came to India with a dine in restaurant in Bangalore that has special
vegetarian pizzas. In addition to traditional Italian topping, it incorporates Indian
favorites such as chicken tikkas, lamb korma, etc. In its list of innovative toppings, along
with pizzas the menu features appetizers like garlic bread and soups, fresh salads, oven
baked pastas and choice f\of ice-cream sundaes.

In 1997 pizza hut opened a restaurant in the capitals building bustling M-Block market
in Greater Kailash-I, unlike the existing pizza hut at shanti niketan which is delivery
counter for just pizzas, this is dine-in where the entire menu is available.

3. Dominos pizza
50

It was incorporated in 1995 as the master franchise o Dominos pizza international inc.,
of USA.. the first Dominos pizza store in India opened in January 1996 at new Delhi.
Today it has grown into a countrywide network of over 104 outlets in 30 cities.
Ever since it was established, Dominos Pizza India has maintained its position of market
leadership with its constant product innovation and maintenance of stringent service
standards. It has established a reputation for being a home delivery specialist capable of
delivering pizzas within 30 minutes. It was the first one to start this facility to customers.

4. Haldirams
Haldiram began in 1937as a small sweet shop in Bikaner, in Rajasthan state of India.
In 2001 the turnover of haldirams was Rs. 4 billion. The group has presence not only in
India but in several countries all over world.
Till early 1990s, Haldiram comprised of three units- Kolkata, Nagpur and New Delhi.
Haldiram has many firsts to its credit- It was first company to brand namkeens. And
first company to offer traditional Indian items like panipuri, chatpapri and so on.
The company faced tough competition not only from sweets and snack food vendors in
unorganized, domestic and international competitors but also from its own units because
of conflict between them.
At Haldirams quality is the obsession and this spirit has given its competitors a cutting
edge. Haldiram offers a very wide range of delicacies like- Namkeens, Sweets, Syrups,
Papads, North Indian dishes, South Indian dishes, Pastries.
Sweets itself has a very wide variety Bengali sweets include Sandesh and Rasgullas.
Other popular Indian sweets are:- Kheer, Halwa, Gulabjamun, Rasmalai and Kulfi.

SWOT Analysis of the McDonalds Corporation (MCD):

51

Strengths

Weaknesses

Open door policy to the press

CERES guidance and co-ordination &

active CSR

Selective supply chain strategy

Rigorous food safety standards

Affordable prices and high quality

Inflexible to changes in market trends

Difficult to find and retain employees

Drive for achieving shareholder value

may counter CSR

products

Nutritional information available on

Promote unhealthy food

Promoted CSR meat imports in error

packaging

Decentralised yet connected system

Innovative excellence program

Promoting ethical conduct

Profitable

Opportunities

Threats

Attractive & flexible employment

Positive environmental commitments

Higher standards demanded from

Unhealthy foods for children

suppliers

Health concerns surrounding Beef,

Corporate Responsibility Committee

Honest & real brand image

Strength

52

Fabricated stories about the quality of

our chicken

Poultry & Fish

Labor exploitation in China

CSR at the risk of profit loss

Contributor to global warming

Local fast food restaurants

Open door policy to the press

During loss of public confidence arising from the safety of beef and poultry the MD had
an open door, allowing the press into a limited number its restaurants and suppliers. In
March 2001, MD opened its doors to both TV and printed advertisement with a view to
seeing how the company was being managed.
CERES guidance and co-ordination & active CSR
MD co-ordinates with investors, environmental and Corporate Social Responsibility
(CSR) organisations, such as CERES, to continuously improve its social and
environmental programs.
Selective supply chain strategy
MD works to ensure that its suppliers meet safety and quality standards as well as
sustainable food supply and animal welfare.
Rigorous food safety standards
MD works hard to ensure its high food safety standards are met through training, food,
safety and quality and menu development in each restaurant. This filters through to its
partners ensuring that they operate ethically and meet social responsibility standards.
Affordable prices and high quality products
MD is an efficient provider and always seeks to offer the best value to its customers.
Nutritional information available on packaging
MD is one of the first fast food restaurants to disclose its nutritional information on its
packaging and continues to seek new ways in which it can provide nutrition and balanced
active lifestyles for its customers.

53

Decentralised yet connected system

MD provides a core system of values, principles and standards which managers adhere to
in combination with its Freedom within the framework program which provides them
with the flexibility to respond to the diversity of its customers and local markets.
Innovative excellence program
MD has mystery shoppers which shop unannounced and inspect the premises as
customers and rate it accordingly. Many restaurants provide customer comment contact
numbers and employee satisfaction surveys.
Promoting ethical conduct
MD works hard to maintain its integrity with its shareholders through a
Profitable
MD is profitable with sufficient capital which allows it to grow and realise gains on its
investments. This allows MD to offer help to charities as well as itself when in need.

Weaknesses
Inflexible to changes in market trends
If customer trends move towards eating Eco-friendly or Bio foods, MD would be unable
to follow this trend without changing suppliers and incurring significant financial losses.
MD could consider the introduction of new product with the aid of market research, over
the coming years to prepare them for such an inevitable change.
Difficult to find and retain employees
MD has had hostile relationships with workers rights unions and although this has been
controlled, the company does find it difficult to find and retain good employees. The
company can build on its reputation for developing top level managers to motivate entry
level employees to remain.

54

Drive for achieving shareholder value may counter CSR

When MDs profits fall, its stock price often falls as well and is often forced to take
drastic actions to resolve the problem. This can oftentimes be at the cost of being socially
and environmentally irresponsible. MD could be more proactive in finding more longterm CSR suppliers and processes that provide low costs and higher profit margins, rather
than being reactive.
Promote unhealthy food
Despite providing healthier product varieties, MD continues to sell burgers that have 850
calories as well as other unhealthy products. This could continue to harm its reputation as
an unhealthy fast food provider. MD could research ways to reduce the calories in its
products whilst still maintaining their taste, or at the least provide low calorie burger
options.
Promoted CSR meat imports in error
MD claimed to provide meat from socially and environmentally responsible sources, but
a court case found that meat had been imported from Latin America where rainforests are
cleared to create green fields for cattle. Where MD carries out CSR processes or
investments it may wish to consider carrying out random checks to ensure their standards
are continually met, to minimise embarrassing press.

Opportunities
Attractive & flexible employment
MD offers a variety of job opportunities and is proud to say that 42% of its top managers
first started by serving customers. It is also helpful to society in being always able to hire
even in times of recession, helping to keep jobless rates lower.
Positive environmental commitments
MD incorporates environmental commitments in its daily operations, from maintaining
daily drive-thru cleanings to providing sustainable fish sources to using recycled
packaging.

55

Higher standards demanded from suppliers

MD sets the standards it demands from suppliers for low cost high quality, socially
responsible supplies, in return for a long-term business commitment.
Corporate Responsibility Committee
MD has a standing Corporate Responsibility Committee that acts as an advisor to its
Board of Directors.
Honest & real brand image
MD has built and maintains a trusting relationship with its shareholders and customers
through truthful marketing and communications.

Threats
Fabricated stories about the quality of our chicken
E-mails and websites have published fabricated information that MD is using monsterchickens in its products. MD could build on its open door policy with the press and apply
it to the web, to combat false distribution of information.
Unhealthy foods for children
If competitors begin to offer premium healthy alternatives for children with small gifts to
encourage them to eat healthy, this would be a significant threat to MD. MDs positive
strategy to provide a range of healthy products could include healthy products for
children.
Health concerns surrounding Beef, Poultry & Fish
There are various initiatives working against hormone induced cows and other issues
such as bird flu epidemics and heavy metal levels in fish could reduce MDs sales and
cause profits and its share price to fall. MD could use its purchasing power to its
advantage to source supplies that are healthy and at low prices.

56

Labour exploitation in China

Chinese manufacturers exploit labour in their production of Happy Meal toys. MD
could use its purchasing power to its advantage to demand that manufacturers provide a
toys without exploiting labour.
CSR at the risk of profit loss
If share prices and profitability are under pressure, managers will inevitably seek to
resolve it at the risk of a CSR issue.
Contributor to global warming
MD is the largest consumer of beef. Greenfields used to supply this beef comes at the
expense of rainforests, heavy use of chemicals, fertilizers and pesticides. MD could use
its purchasing power to its advantage to source CSR suppliers.
Local fast food restaurants
Local restaurants which are less environmentally threatening than MD and have less
purchasing power may have better reputations with local suppliers and customers.
From the above SWOT of McDonalds and the summary that follows it, it can be seen
how an organisation by highlighting its position it can identify areas that could be
strengthened, opportunities seized and threats and weaknesses minimised or prevented
completely.

57

CHAPTER- 2

RESEARCH
METHODOLOGY

58

RESEARCH METHODOLOGY
Marketing Research is a process of collecting and analyzing marketing information and
ultimately to arrive at certain conclusion. The purpose of this research is to describe the
research procedure. Research Methodology is the mean to plan out the working process
or the course of action to reach the objective. It is extremely crucial and holds the key to
the success of the survey.
McDonalds Corporation is which is marketing products having different brands. Thus a
survey method of marketing research is essentially Descriptive in nature.

IMPORTANCE OF MARKETING RESEARCH

Marketing research has its importance not only for consumers market but also it survey
effectively to the producer of goods and services. The use of marketing research in
consumer market may be explained on the basis of following services rendered by it.
1. It ascertains the position of a company in specified Industry.
2. It indicates the present, future trend of Industry and point out how the companys
affairs are being turned up.
3. It helps in development and introduction of new product.

59

SIGNIFICANCE OF THE STUDY:

1. Any research has its own importance in any business organization. The research
shows the real fact about the products as well as the organization. Research is a
systematic and scientific investigation of any idea either precise and abstract from a
continous basis for learning. It is Descriptive in nature.
2. Research is a systematic and scientific investigation through which any organization
try to find out its strength and weaknesses as well as opportunities and threats. As we
know, in the present era, the business activities have become more complex and
complicated due to modern technology ,globalization and liberalization. And on other
hand, today customers are conscious about products and brand.
3. The research work is highly focused on this issue, which is important for us as well as
for the organization. During research work we learnt customers opinion about
products and brand.
4. It is a strong belief that the research work is significant in all manner. This research is
helpful for organization, managers and customers.

60

MANAGERIAL USEFULNESS OF STUDY:

1. Market Survey will help to know the prevailing market condition and also help in
framing the policies accordingly.
2. The Study will help the management to understand the customer mindset and also
estimating the present and future market demand for the products.
3. It will help to estimate the level of awareness established in the market and in
deciding the extent of promotion required.
4. It will help in finding out the customers expansions about the product and also help to
know customer psychology.
5. The Study reveals many facts that have come up during our project and these facts
can either used as opportunities and exploring and expanding business as well as can
be used as safeguards against threats by the competitors to prepare an effective
marketing strategy.

SCOPE OF THE STUDY:

A big boom has been witnessed in fast food industry in recent times. A large number of
new players have entered the market and are surveying to gain market share in this
rapidly improving market. The study deals with McDonalds in focus and the various
segments that it caters to.

61

OBJECTIVES OF THE STUDY:

To do customer value analysis which includes identifying the major attributes that
customers value in a fast food chain restaurant, assessing the quality of the different
attributes.
To shed light on different aspects that a service based food chain must follow in order
to increase its market share and for being on a continuous growth stream.
To identify different activities that an aggressive company like McDonalds follow in
order to establish itself in a local market and increasing sales by being in customers
mind and heart.
To know the consumer perception and Preference about McDonalds products.
The research also find out the company on different customer value attributed and try to
find their performance through:

Customer Value Analysis

-

Identify the major attributes that customers value in fast food restaurants

Assess the quantitative importance of different attributes

Assess McDonalds performance on different customer values.

Assess the share of mind and share of heart for McDonalds.

62

LIMITATIONS OF THE STUDY:

Since the road to improvement is never ending, so this study also suffers from certain
limitations. Some of them are as follows:
Scope of project is limited in the sense that only McDonalds has been taken for
consumer research.
The extent of the survey was New Delhi only. So the suggestions or arguments
given in the report may not hold true for other locations in India.
Questionnaire method involves some uncertainty of response. Co-operation on the
part of informants, in some cases, was difficult to presume.
Because of time constraints and reserve constraints, a mix of convenient sampling
and Judgement (Probability & Random) sampling was used.
Also because of above mentioned constraints, the sample size chosen for the
survey was 100 people.
It is possible that the information supplied by the informants may be incorrect. So,
the study may lack accuracy.

63

RESEARCH DESIGN
The controlling plan for a marketing research study in which the methods and procedures
for collecting and analyzing the information is to be collected is known as Research
Design or A framework or plan for a study that guides the collection and analysis of the
data.

Descriptive Research
A research design in which the major emphasis is on determining the frequency with
which something occurs. For example, How often users access the Internet in a given
month. The focus of descriptive research is to provide an accurate description for
something that is occurring.

Data Source
In this project both primary data as well as secondary data are used.

PRIMARY DATA
Primary data used in this project is collected through three methods, namely,
QUESTIONNAIRE METHOD and DIRECT PERSONAL INTERVIEW METHOD,
OBSERVATION METHOD. ALL these methods proved to be great help in getting the
required information.

SECONDARY DATA
It is not possible to collect first hand information for each & every thing so, secondary
data from various sources like Internet, A. C Neilsons report on Jan, 2007, Information
from television channels like CNBC, Z Business, NDTV Profit etc. and Indian Infoline
website were used.

STATISTICAL & PRESENTATION TOOLS USED:

PRIMARY DATA is:

First classified i.e. grouped qualitatively and quantitatively according to the situation
or the type of the data which was collected.
After classifying is represented in the form of tables i.e. systematically arranged in
columns and rows.
Some of the data is also graphically represented in the form of PIE DIAGRAM.
SECONDARY DATA is represented:
In the form of tables.
By the way of BAR GRAPHS and PIE CHARTS.

Sample size and Areas covered

A customer-based survey was conducted in which 100 people were asked to fill the
questionnaire in which all 100 people belong to cities of Delhi. Sampling Unit is
restricted to North Delhi.
Because it was not possible to consider each and every person of this city,
PROBABILITY SAMPLE or RANDOM SAMPLE was taken.

65

BRIEF REVIEW OF RESEARCH METHODOLOGY

SAMPLING PLAN :
Research Design : Descriptive
Target Segment : Consumer
Sample Size

: 100

Area covered

Sampling Method
Random Sample.

North Delhi
: Probability Sample or

TECHNIQUES OF DATA COLLECTION:

Data Collection Method : Primary (Interview, Questionnaire Observation)
Method : Personal Interaction
Type of Questionnaire : Open ended questions and multiple choice question.
Research Approaches : Consumer Survey.

66

CHAPTER- 3

CONCEPTUAL
DISCUSSION

67

Customer Satisfaction
Through
4 Ps
Of
Marketing Mix
Marketing Mix
Marketing Mix refers to the ingredients or the tools or the variable which the marketer
mixes in order to interact with a particular market.
Marketing Mix is a set of marketing tools that the firm uses to pursue its marketing
objectives in the target market
- Kotler
Marketing mix is a term used to describe the combination o the four inputs which
constitute the core of a companys marketing system: the product; the price structure; the
promotional activities, and the distribution system.
Marketing mix represents the total marketing programme of a firm. It involves decisions
with regard to product, price, place and promotion. Marketing mix is a blending of
decisions in the 4 Ps.Four major ingredients of marketing mix are:
1. Product
A product is any good or service that consumers want. It is a bundle of utilities or a
cluster of tangible and intangible attributes. Product component of the marketing mix
involves planning, developing and producing the right type of products and services. It
deals with the dimensions of product line, durability and other qualities. The total product
should be such that it really satisfies the needs of the target market. In short, product mix
requires decisions with regard to
(a) Size and weight of the product (b) Quality of the product (c) Design of the product
(d) Volume of output

(e) Brand name (f) Packaging (g) Product range (h) Product

testing.

68

2. Price
Price is an important factor affecting the success of a firm. Pricing decisions and policies
have a direct influence on sales volume and profits of business. Price is, therefore, an
important element in the marketing mix. In practice, it is very difficult to fix the right
price. Right price can be determined through pricing research and test marketing. A lot of
exercise and innovation is req. to determine the price that will enable the firm to sell its
products successfully. Demand, cost, competition, govt. regulation, etc. are the vital
factors that must be taken into consideration in the determination of the price. Price mix
involves decisions regarding base price, discounts, allowances, fright payment, credit,
etc.
3. Promotion
Promotion component o the marketing mix is concerned with bringing products to the
knowledge of customers and persuading them to buy. It is the function of informing and
influencing the customer. Promotion mix involves decisions with respect to advertising,
personal selling and sales promotion. All these techniques help to promote the sale of
products and to fight the competition in the market.
No single method of promotion is effective alone and, therefore, a promotional campaign
usually involves a combination of two or more promotional methods. Growing
competition and widening market have made simultaneous use of more than one
promotional method all the more necessary. Combination of two or more methods in a
single promotional campaign requires an effective blending of promotional inputs so as
to optimize the expenditure on each. There is no one ideal product, type of customers, the
promotion budget, stage of demand, etc. should be taken into consideration.

69

4. Place (Distribution)
This element of marketing mix involves a choice of the place where the products are to
be displayed and made available to the customers. It is concerned with decisions relating
to the wholesale and retail outlets or channels of distribution. The objective of selecting
and managing trade channels is to provide the products to the right customer at the right
time and place on a continuing basis. In deciding where and through whom to sell,
management should consider where the customer wants the goods to be available. A
manufacturer may distribute his goods through his own outlets or he may employ
wholesalers and retailers for this purpose. Irrespective of the channel used management
must continuously evaluate channel performance and make changes whenever
performance falls short of expected targets. In addition, management must develop a
physical distribution system for handling and transporting the products through the
selected channels. In the determination of distribution mix or marketing logistics, a firm
has to make decision with regard to the mode of transporting of goods to middle-men, use
of company vehicles or both.
Product Mix
(McDonalds Product Mix)
As explained earlier Product mix deals with the dimensions of product line, quality and
design of the product, its packaging, brand name, product range, etc.
In this section we will study the product mix of McDonalds
Product line of McDonalds includes the products offered for sale, i.e. the range of food
products offered to the customers.
The product breadth or number of products offered by McDonalds can be classified as:
Vegetarian products
Non vegetarian products
Beverages
Deserts
Add-ons

70

Vegetarian products include:

Non-Vegetarian products include:

Mc Veggie

Chicken Maharaja Mac

Mc Aloo tikki

Mc Chicken

Paneer Salsa wrap

Filet-o-fish

Crispy Chinese

Chicken Mexican wrap

Veg Mc Curry pan

Chicken Mc Grill

Pizza Mc Puff

Chicken Mc Curry Pan

Chicken Mc Nuggets

Beverages

Desserts

Add-ons

Cold coffee

Soft serve cone

Fries

Hot serves

McSwirl

Potato Wedges

McShakes

Soft serves

Soft drinks

Flavour bursts

Ice tea

Floats

All this shows the wide product range of McDonalds. Besides that the quality of
McDonalds, according to the survey and general findings, is consistent throughout the
life of the product.
Nothing but the Best
That's how we plan our product range. Food quality is key at McDonald's. That's why we
take pride in the foods we serve you and your family. We seek out fresh lettuce and
tomatoes, quality buns and potatoes, select poultry and fish and wholesome dairy
products. Despite extensive and meticulous quality tests at the supplier end, all products
are once again carefully scrutinized at the restaurant. Our immaculate standards of quality
allow for nothing but the best to reach your tray.

71

Cold Chain
The term Cold Chain describes the network for the procurement, warehousing,
transportation and retailing of food products under controlled temperatures. McDonalds
restaurants store products to be used on a daily basis, within a temperature range of 18C
to 4C. About 52% of our food products need to be stored under these conditions before
they are used.
Trikaya Agriculture - Supplier of Iceberg Lettuce
Implementation of advanced agricultural practices has enabled Trikaya to successfully
grow specialty crops like iceberg lettuce, special herbs and many oriental vegetables. A
specialized nursery with a team of agricultural experts.
Vista Processed Foods Pvt. Ltd. - Supplier of Chicken and Vegetable range of
products
A joint venture with OSI Industries Inc., USA, and McDonald's India Pvt. Ltd. Vista
Processed Foods Pvt. Ltd. produces a range of frozen chicken and vegetable foods. A
Separate processing lines for chicken and vegetable foods.
Dynamix Diary - Supplier of Cheese

Dynamix has brought immense benefits to farmers in Baramati, Maharashtra by

setting up a network of milk collection centres equipped with bulk coolers. Easy
accessibility has enabled farmers augment their income by finding a new market for
surplus milk

Product strategies:
In order to achieve the desired rate of profits and growth, a firm has to continuously
adjust its products and product mix to the changing needs and targets of the market.
This matching of products to the requirements of competition and buyers is known as
product strategy.

72

Some of the important product strategies, which firms adopt, are as follows:
1) Limited Line Strategy:
This refers to the offering of one product or a small number of products to cater specific
market. The main benefit of this strategy is low cost of operations. However, it cannot
meet the requirements of different types of customers in different markets.
2) Full Line Strategy:
This ids also known as broad line strategy, it implies the offering of a large number of
products to meet the requirements of different customers in different markets.
3) Trading up and trading down:
These are alternate or opposite strategies for expanding the product mix.
Trading up implies addition of some higher priced products to the existing product line of
lowered priced products for improving the sales of old products.
Trading down refers to the addition of lower-priced products to the existing higher priced
product to boost total sales.

73

Price Mix
Price and Pricing strategies:
Price is the key element of marketing mix because it relates directly to the generation of
total revenue. The term pricing policy refers to a systematic approach to pricing of
different
products in different markets to evolve an appropriate pattern of prices in the long run. It
is the plan defining the initial price range and the planned price movements through time
that the firm will use to achieve its marketing objectives. Pricing policy includes not only
the determination of base prices but also the terms and conditions of sale.
Company Pricing policies:
The price must be consistent with company pricing policies. Many companies set up a
pricing department to develop policies and establish or approve decisions. The aim is to
ensure that the salespeople quote prices that are reasonable to customers and profitable to
the company.
Now a days most companies follows buyer based pricing. They are basing their prices on
the products perceived value. They see buyers perception of value, not the sellers cost,
as the key to pricing.The company using perceived-value pricing must establish the value
in the buyers mind concerning different competitive offers.
McDonald began with skimming prices, i.e. setting a very high price for a new product
initially and to reduce the price gradually as competitors enter the market.
The initial high price serves to skim the cream of the market, that is , relatively
insensitive to price. This approach to pricing is, in effect, an experimental search for the
right price and it may result in a market-determined price. This method starts with a high
price and moves the price downward by steps until the right price is reached.
Initially McDonalds charged high price than what is being charged now. But now it
introduces new schemes for value of money.

74

Place Mix
(Distribution)
This element of marketing mix involves a choice of the place where the products are to
be displayed and made available to the customers. It is concerned with decisions relating
to the wholesale and retail outlets or channels of distribution. The objective of selecting
and managing trade channels is to provide the products to the right customer at the right
time and place on a continuing basis.
McDonalds distribution centres are wide, located in every area of India.
McDonalds has Dine-in restaurant, Drive-Thru, McDelivery.
McDonalds has 122 restaurants in India of which 72 are in north & east India and 50 in
west & south India.
72 restaurants in North & East India: with

32 in Delhi

20 in Uttar Pradesh Noida (4), Ghaziabad (4), Mathura (1) (Highway and Drive
Thru), Kanpur (2), Meerut (1), Lucknow (4), Agra (1), Allahabad (1), Varanasi (2)

10 in Haryana - Faridabad (3), Manesar (1) (Highway and Drive - Thru), Gurgaon (4),
Karnal (1) (Highway and Drive - Thru), Panipat (1)

5 in Punjab - Chandigarh (1), Ludhiana (1), Doraha (1) (Highway and Drive - Thru),
Jalandhar (1), Patarsi (1) (Highway and Drive - Thru)

2 in Rajasthan - Jaipur (2)

1 in Uttaranchal - Dehradun (1)

1 in West Bengal Kolkata (1)

50 restaurants in West & South India:

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

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

6 in Karnataka Bangalore(6)

4 in Andhra Pradesh Hyderabad (4)

3 in Madhya Pradesh Indore (3)

75

For the Big Mac, the current calendar year will be the biggest in terms of restaurant
openings, and by year-end, 16 new restaurants would be in place, informs Vikram Bakshi,
Managing Director, McDonald's India.
The new outlets will be a combination of highway restaurants, outlets at railway stations,
at shopping malls and cineplexes, besides at residential areas with significant footfalls.
McDonald's India recently won the tender for setting up an outlet each at railway stations
in Mumbai and Jaipur. In Delhi, the chain will mark its presence through an outlet at the
ambitious Delhi Metro Rail Corporation project, expected to be operational by year-end.
And if all goes according to plan, another McDonald's outlet could come up at Delhi's
Nizammuddin railway station.
The fourth McDonald's highway outlet on the Delhi-Jaipur highway is expected to begin
operating shortly. The chain's other three highway restaurants are located on the DelhiAgra highway, the Delhi-Ludhiana highway and the Mumbai-Pune highway.
Promotion Mix
Promotion is a process of communication with the potential buyers involving
information, persuasion and influence. It includes all types of personal or impersonal
communication with customers and intermediaries.
Promotion mix refers to the combination o various promotional tools usd by a business
firm to create, maintain and increase demand. It involves an appropriate integration of
advertising, personal selling, sales promotion and publicity.

Advertising:
Advertising is any paid form of non-personal presentation and promotion of goods,
services or ideas.
The past four years have seen very high trials from first-time customers - averaging 77-80
per cent. Now we are moving away from inducing trials, and striving for repeat
customers," informs Bakshi. Which explains the chain's new advertising tag.

76

For the first time since it began advertising on Indian television channels, McDonald's
has changed its ad line. It is now `To aaj McDonald's ho jaaye,' against the earlier
`McDonald's mein hai kuch baat'. Therefore, the happy family scenario, complete with
goofy dad and adorable kid. While more commercials could follow later this year, the
theme will be the same. The objective will be to continue to position McDonald's as a
comfort zone for young families. McDonald's ad account too continues to remain with
Mudra.
Sales promotion
Sales promotion includes all those short-term marketing activities, other than personnel
selling and advertising and publicity, that stimulate customer purchasing and dealer
effectiveness.
The main objective of sales promotion is to attract the prospective buyer toward the
product, and induce him to but the product at the point of purchase.
The importance of sales promotion in modern marketing has increased mainly on account
of its ability in promoting sales and preparing the ground for future expansion.

Promotional measures by McDonalds

A Kids Carnival promotion with Luxor Pens and L'il Tomatoes (a kids' garments'
marketer) is scheduled to take off early next month. The current fiscal's advertising and
promotional budget has been fixed at Rs 18 crore.McDonalds continually review and
improve its menu offerings to make sure that not only they meet customers expectations,
but also exceed them. As a result, they have introduced a series of ongoing value options
to suit their customers different needs.

77

Value Meal
Value Meals consist of a burger, fries and a drink and are available in 3 sizes:
Small, Medium and Large.

Small Value Meal

Burger
+
Potato Wedges
+
Small Drink*

Medium Value Meal

Burger
+
Medium Fries
+
Medium Drink*

Large Value Meal

Burger
+
Large Fries
+
Large Drink*

A Drink includes Coke , Fanta , Sprite.

You can also substitute the drink in your Value Meal with a McShake, Coffee, Tea, Hot
Chocolate, Vanilla Coke, Ice Tea or Cold Coffee by paying the difference. For more
details please speak to the counter person at the restaurant.

Happy Meal
A Happy Meal consists of a burger + small drink + toy. You can also substitute the small
drink in the Happy Meal with a small Mc Shake by paying the difference. For more
details, please contact our managers.

78

CHAPTER - 4

DATA ANALYSIS

79

Analysis of Questionnaire

Q1. Do you love Outdoor eating?

Yes

No

Out of the Sample of 100, following results were obtained:

80% of the people agreed that they love Outdoor eating a lot.

20% of the people said that they dont like Outdoor eating.

80

Q2. How frequently do you visit McDonalds?

Once a week

More than once a week

Once a month

Less than once a month

Once a fortnight

Population
30

25

25
20
15
10

Population
5

5
0
Once a More than Once a
Once a
Once a Fortnight Month
Week
Week

Less than
Once a
Month

Out of the sample of 100, following results were obtained:

25 informants said that they visit McDonalds once in a fortnight. This section of
people is 50% of the total sample.

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

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

5 persons each said that they visit once a week and less than once a month
respectively. They are 20% of the people surveyed.

81

Q3. Restaurants preferred by customers

Restaurant

No. of persons

preferred
17

Pizza hut

15

Dominos

10

KFC

Nirulas

Restaurants preferred

McDonalds

Nirulas
KFC

3
10

Dominos

15

Pizza hut

17

McDonalds
0

10
no. of persons

15

20

17 out of 100 persons surveyed preferred McDonalds over any other restaurant, i.e.
34%.

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

10 persons preferred Dominos, i.e. 20%

3 persons preferred KFC, i.e. 6%

5 persons preferred Nirulas, i.e. 10%

82

This survey conveys that there is a tough competition between McDonalds, Pizza hut and
Dominos, kfc and burger king.
Q4. Rate McDonalds on the following Attribute Scale:

Attribute

V-Good

Good

Above Avg.

Average

Poor

Taste of food

30

12

Variety of food

20

25

General hygiene

25

19

Ambience/Dcor

12

21

Value for money

24

15

Friendliness of peers

20

15

Promptness of delivery

15

20

10

83

Out of 100 Persons being surveyed, out of 30 Rating has been done.

On the Rating Scale 30 is the highest Attribute rating for taste of food which is found
to be V. Good.

And 25 is the highest Attribute rating which found the Variety of food to be Good.

25 is the highest Attribute rating which found the General Hygiene to be V. Good.

21 is the highest Attribute rating which found the Ambience/Dcor to be Above

Average.

24 is the highest Attribute rating which found the Value for Money to be Good.

20 is the highest Attribute rating which found the Friendliness of Peers to be Good.

20 is the highest Attribute rating which found the Promptness of Delivery to be

Good.

84

Q5. Is McDonalds ambience comfortable and well provided?

Views

No. of persons

Strongly Disagree
Disagree
Neither agree
Agree
Strongly Agree

1
1
7
38
3

No. of persons
45
40
35
30
25
20
15
10
5
0

No. of
Persons

Strongly Disagree
Disagree

Neither Agree
Agree

Strongly
Agree

Regarding the Comfortability of McDonalds,

38 persons out of 100 surveyed agreed that its ambience is comfortable i.e. 60%

7 persons neither agree nor disagree i.e. 20%

3 persons strongly agreed i.e. 15%

85

1 person each disagreed i.e. 5%

Q6. Does McDonalds maintains consistency in its taste and quality?

Views

No. of persons

Yes
No

43
7

This question shows whether McDonalds maintains consistency in taste and quality of its
food products.
86% of the persons surveyed agreed that McDonald maintains consistency in its taste and
quality while 14% disagreed.

86

Q7. Are you satisfied with the prices charged by McDonalds?

Views

No. of persons

Very satisfied
Satisfied
Not satisfied

9
35
6

6
0

9
1
2
3

35

This question deals with the pricing of McDonalds food products.

Out of 100 persons surveyed.

35 are satisfied with the prices charged i.e. 55%

9 are very satisfied i.e. 30% and

6 are not satisfied i.e. 15%

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Q8. Do you find the promotional measures adopted by McDonalds effective?

Views

No. of persons

Very effective
effective
Not effective

7
27
16

No. of persons
30
25
20
No. of persons

15
10
5
0
Very effective Effective

Not effective

This question deals with whether the promotional measures adopted by McDonalds are
effective or not.
Out of 100 persons being surveyed:

7 persons find it very effective i.e. 10%

27 persons found it effective i.e. 50% while

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16 persons doesnt find it effective i.e. 40%

Q9. What recommendations do you wish to suggest to McDonalds?

Recommendations

No. of persons

Include more variety

Reduce prices
Better advertising and promotion
Improve quality

32
6
5
7

7
0

2
3

32

This question gives out the suggestions to increase the sales.

Out of 100 persons surveyed:

32 persons suggested that McDonalds must include more variety i.e. 52%

6 persons suggested to reduce prices i.e. 12%

5 suggested to adopt better advertising and promotion measures i.e. 10% and,

7 suggested to improve quality i.e. 26%

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Q10. How would you describe your eating experience at McDonalds?

Experience

No. of Persons

Excellent

Very Good

17

Good

25

Poor

No. of persons
25
20
15
No. of persons

10
5
0

Excellent Very good Poor

Good

This question describes the eating experience at McDonalds.

Out of 100 persons being surveyed:

4 describe their eating experience as excellent i.e. 15%

17 as very good i.e.20%

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25 as good i.e. 50% and

4 as poor i.e. 15%

Q11. Are you satisfied with the varieties of McDonalds?

Very satisfied

Satisfied

Not Satisfied

Out of the Sample of 100, Following results were Obtained:

70% of the people said that they were Very much satisfied with the Varieties of
McDonalds.

15% of the people said that they were only satisfied with the varieties of McDonalds.

15% of the people said that they were not at all satisfied with the varieties provided
by McDonalds.

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Q12. Are you aware of the Charity services of McDonalds?

Yes

No

From the following pie chart, following information has been obtained:

60% of the people say that they are Aware of the Charity Services provided by
McDonalds and,

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40% of the people say that they are not Aware of the Charity Services Provided by
McDonalds.

CHAPTER 5

FINDINGS
AND
RECOMMENDATIONS

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Conclusion
Going through the analysis of response from the survey conducted, it is concluded that
McDonalds is able to be and retain at top among all the fast food chains like Nirulas,
Subway and Burger King,Sbarro.
McDonalds is also preferred over Pizza hut, Dominos and KFC.
McDonaldss is providing its customers good quality food products.
Though not wide but its product line is quite impressive. It includes meals for both
Vegetarian and Non-Vegetarian and satisfies both section of customers.
McDonalds is also providing its customers a well provided and comfortable ambience.
It has been rated as very good by its customers in terms of Taste and Variety of food and
promptness of delivery.
McDonalds maintains its consistency in taste and quality.
Customers are also satisfied with its prices and promotional and advertising activities.
Prices are affordable by all and McDonalds also satisfies its customers by continuously
introducing value for money offers. Best example for this is HAPPY PRICE MENU for
Rs. 20.

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Summarising all points we conclude that McDonalds is growing fastly by satisfying its
customers by providing quality and maintaining consistency and also has an impressive
strategy of marketing the products in the form of Marketing Mix Elements.

Recommendations
The Recommendations to McDonalds is to:

1. Maintain consistency in the taste and quality of products.

2. Include more items in its product line like pizzas for example.
3. Include more promotional and advertising measures to increase its sales or to increase
its market share.
4. They Should also freeze their Ice Creams at higher Temperature so that it does not
get melted so early.
5. The most important thing is that they should also sell burgers without cheese because
todays generation is more Diet Conscious and each and every Burger of McDonalds
is more or less of cheese so they should make burgers without cheese.
6. One Thing more McDonalds should start is giving Customized waiter Services
instead of Self Services.
7. The Soft Drinks provided in McDonalds is more of Ice and less of Cold Drink. So It
Should include less ice or freeze it at high temperature so that no ice is required.
8. Lastly It should not Charge extra 20 Rs. For its Home Delivery Products.

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ANNEXURE

Questionnaire
Bibliography

96

Questionnaire:

Name:

Age:

Marital Status:

Occupation:

No. Of Children:

Income:

Q1. Do you love Outdoor eating?

Yes

No

Q2. How frequently do you visit McDonalds?

Once a week

More than once a week

Once a month

Less than once a month

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Once a fortnight

Q3. Which one of the Fast Food Restaurant would you prefer most?
a. Pizza Hut

b. Haldirams

c. Kfc

d. Dominos

Q4. Rank the attributes for McDonalds which are key to a fast food restaurant?
1. V- Good 2. Good 3. Above Average 4. Average 5- Poor
Attributes

Rank

Attributes

Taste of food

Value for money

(promotional schemes)

Variety of food

Friendliness of peers

General hygiene

Promptness of delivery

Rank

Ambience/ Dcor

Q5. Is McDonalds ambience comfortable and well provided?

Strongly Disagree

Disagree

Neither agree

Strongly Agree

Q6. Does McDonalds maintains consistency in its taste and quality?

Yes

No

Q7.Are you satisfied with the prices charged by McDonalds?

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Agree

Very satisfied

Satisfied

Not Satisfied

Q8. Do you find the promotional measures adopted by McDonalds effective?

Very Effective

Effective

Not effective

Q9. What recommendations do you wish to suggest to McDonalds..

Include more Variety

Reduce prices

Better Advertising and Promotion

Improve quality

Q10. How would you describe your eating experience at McDonalds?

Excellent

Very good

Good

Poor

Q11. Are you satisfied with the varieties of McDonalds?

Very satisfied

Satisfied

Not Satisfied

Q12. Are you aware of the Charity services of McDonalds?

Yes

No

(Thank You)

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Bibliography
Books referred:
Kotler P. (2004) Marketing Management: Analysis, Planning, Implementation &
Control, Prentice Hall of India, New Delhi
Christopher G and Harold W Bukman,
Marketing management C.B.Gupta

Articles referred:

McDonalds : Think global, act global the marketing mix

Websites referred:
www.wikipedia.com
www.mcdonalds.com
www.mcdonaldsindia.com
www.emeraldlibrary.com
www.google.com
Websites of different fast food restaurants.

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