FINAL PROJECT REPORT

ON
CUSTOMER SATISFACTION TOWARDS

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DECLARATION BY THE STUDENT

I hereby declare that this project tilted CUSTOMER SATISFACTION TOWARDS MC

DONALDS & KFC is based on the original work carried out by me under the supervision of
MS. MUSKAN is an original and bonafide work carried out in partial fulfillment of the
requirement of the award of the degree of Master of Business Administration of Punjab
Technical University.

Signature of student: Signature of guide:

Ms Muskan Monga MS Shafili Dhawan

1519505 Assistant Proffessor

MBA 4 (Sem) CTIMIT(Jalandhar)

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 CONTENTS
S.No. Particulars P.No

1 Introduction 1-14

2 Literature Review 15-17

3 Objectives 18

4 Research methodology 19-20

5 Data analysis and interpretation 21-32

6 Findings &Recommendations 33-34

7 SUGGESTIONS

8 Limitations 35

9 Conclusions 36

10 Bibliography 37

11 Annexure 38-40

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 Preface
In the present context, not only the theoretical knowledge is important, but the
practical exposure of that theoretical knowledge is equally important too.

This research project is a part of the Master in Business Administration (MBA)

course being taken up at Department of Management Studies, Punjab Technical
University Jalandhar.

The topic of my research is:

CUSTOMER SATISFACTION TOWARDS McDONALDS AND KFC

This project has been of great help in providing me an insight in the real
life working of an organization; it gave me a chance to apply all I had learned to
practical situations, enhancing my understanding and image of the business world.

This experience in decision making and practical application of

knowledge has contributed greatly to my worth both as a person and manager. The
survey has been conducted with due care and delicacy in order to avoid any kind of
mistake.

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INTRODUCTION ABOUT TOPIC
Customer satisfaction is a marketing term that measures how products or services supplied by a
company meet or surpass a customer's expectation. Customer satisfaction is important because
it provides marketers and business owners with a metric that they can use to manage and
improve their businesses.

Here are the top six reasons why customer satisfaction is so important:

Its a leading indicator of consumer repurchase intentions and loyalty

Its a point of differentiation

It reduces customer churn

It increases customer lifetime value

It reduces negative word of mouth

Its cheaper to retain customers than acquire new ones

Kotler defined satisfaction as: a person's feelings of pleasure or

disappointment resulting from comparing a product's perceived performance (or
outcome) in relation to his or her expectations. Customers' needs state the felt
deprivation of a customer (Kotler, 2000)

Schiffman and Kanuk (2004)Woodruff and Gardian (1996) defines

customer satisfaction as The individuals perception of the performance of
the product or service in relation to his or her expectations.

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.

MCDONALDS

McDonalds headquarters is located in Oak Brook, Illinois, United State. It is the

largest chain of hamburger fast food restaurant in the world. The company logo is
McDonalds with a big yellow M. Image 1 shows that. Richard and Maurice
McDonald started the first McDonald's store from 1950s in the US, and it primarily
sells hamburgers, French fries, dessert, and salads. In 1955, when the first
McDonald's restaurant was founded in the United States, there was not much
variety on its menu, but they offered food supply with high quality, low cost and
good environment. By 1983, there were more than 6,000 domestic branches. In
1967, McDonald's opened its first overseas branch in Canada. By 1985, its total
abroad sales accounted for about 20 per cent of its domestic business. Every day
there are more than 18 million people coming to McDonald's in more than 40
countries. Nowadays McDonald's has more than 3,4000 locations worldwide with
a revenue of 27.56 billion US dollars. Table 2 presents the brief background of
McDonaldS.

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 McDonalds Corporation,

U.S. food service and restaurant company that operates one of the worlds largest
fast-food restaurant chains, McDonalds. It owns theme restaurant chains in the
United States and other countries and has interests in restaurant operations and real
estate. Its headquarters are in Oak Brook, Illinois.

The first McDonalds restaurant was started in 1948 by brothers Maurice (Mac)
and Richard McDonald in San Bernardino, California. They bought appliances for
their small hamburger restaurant from salesman Ray Kroc, who was intrigued by
their need for eight malt and shake mixers. When Kroc visited the brothers in 1954
to see how a small shop could sell so many milk shakes, he discovered a simple,
efficient format that permitted the brothers to produce huge quantities of food at
low prices. A basic hamburger cost 15 cents, about half the price charged by
competing restaurants. The self-service counter eliminated the need for waiters and
waitresses; customers received their food quickly because hamburgers were
cooked ahead of time, wrapped, and warmed under heat lamps.

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Seeing great promise in their restaurant concept, Kroc offered to begin a franchise
program for the McDonald brothers. On April 15, 1955, he opened the first
McDonalds franchise in Des Plaines, Illinois, and in the same year launched the
McDonalds Corporation, eventually buying out the McDonald brothers in 1961.
The number of McDonalds outlets would top 1,000 before the end of the decade.
Boosted by steady growth, the companys stock began trading publicly in 1965.

The public face of McDonalds was created in 1963 with the introduction of a
clown named Ronald McDonald, while the double-arch m symbol became
McDonalds most enduring logo in 1962, lasting far longer than the tall yellow
arches that had once dominated the earlier restaurant rooftops. Other products and
symbols would define the McDonalds brand, including the Big Mac (1968), the
Egg McMuffin (1973), Happy Meals (1979), and Chicken McNuggets (1983).

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The chain continued to expand domestically and internationally, extending next to
Canada in 1967, reaching a total of 10,000 restaurants by 1988, and operating more
than 30,000 outlets in 119 countries by the early 21st century. Growth was so swift
in the 1990s that it was said a new McDonalds opened somewhere in the world
every five hours. Development on this scale was accompanied by criticism that
ranged from its associations with a worldwide increase in obesity to the companys
unethical use of beefflavouring in products advertised as vegetarian. However,
despite such negative comments, McDonalds effectively became the most popular
family restaurant in the world, emphasizing affordable food, fun, and flavours that
appeal to children and adults alike.

In the late 20th century, McDonalds moved beyond the hamburger business by
acquiring Chipotle Mexican Grill (1998), Donatos Pizza (1999), and Boston
Market (2000) in the United States, while in the United Kingdom McDonalds
purchased Aroma Cafe (1999) and an interest in Pret A Manger (2001), a sandwich
restaurant chain. However, by late 2008 McDonalds no longer owned or had a
stake in any of those companies, instead concentrating on its own brand.

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McDonalds was also active in charitable work. In 1974 it joined Philadelphia
Eagles football player Fred Hill in founding the Ronald McDonald House in
Philadelphia (now part of Ronald McDonald House Charities, Inc.), and it pursued
programs such as recycling and other practices intended to reduce waste.

PRODUCTS OF MC DONALDS

Mushroom & Smoked Cheese

The Mushroom and Smoked Cheddar sandwich includes two 100% beef patties,
combined with melted smoked cheddar and grilled mushrooms, topped off with a
serving of bacon and cheese sauce, finished off with crispy lettuce and served in a
toasted brioche ciabatta-style bun.

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Grilled Chicken Bacon McWrap

From McDonalds, with love

Enjoy a grilled chicken breast fillet wrapped in a soft tortilla along with shredded
lettuce, fresh tomatoes, bacon and mayo in this healthy alternative meal.

The Chicken Box

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Something for everyone

Sharing is caring, and what better way than with The Chicken Box! Designed with
sharing in mind, this meal includes a portion of 6 cripsy chicken nuggets, 3 tasty
chicken wings and 3 new juicy chicken strips, along with two of your favourite
sauces let the dipping begin!

Potato Wedges

Tease your taste buds

Coarsely sliced premium potatoes sprinkled with a paprika, onion and garlic
seasoning and served with a tangy cream and chive dipping sauce.

*Nutritional values are based on a medium portion of potato wedges.

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McFlurry M&Ms

An all-time favourite

Add some colour to your day by adding a serving of crushed M&Ms to your next
McFlurry!

KFC
Together with Pizza Hut and Taco Bell, KFC (Kentucky Fried Chicken) belong to
Yum! Brands Inc. Yum! Company is the world's largest restaurant company in
terms of system units. KFC Corporations headquarters is located in Louisville,
Kentucky, United States. It is the world's largest fried chicken chain restaurant,
measured by sales; it is the second largest restaurant chain after McDonald's. More
than 11,000 Yum restaurants have been opened in about 80 countries. Colonel
Harland Sanders founded it in 1952 by selling fried chicken. His kindly grandpa
face also became KFC logo. Image 2 shows that. Today KFC mainly sell fried
chicken, hamburgers, French fries, soft drinks and other Western-style fast food. It

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has about 18,000 locations with a revenue of 15 billion US dollars. Table 3 as
follow presents background information.

Kentucky Fried Chicken, better known as KFC, is the largest chicken restaurant
KFC is an internationally fast food industry in the world. They have the main
ambition to increase & maintain the quality in fast food industry. Their aim is to
capture the fast food market. Every day, more than 12 million customers are served
at KFC restaurants in 109 countries and territories around the world more than
15,000 units around the world. . KFC began with Colonel Harland Sanders, in
America in the year 1939, special recipe managed reach an open its first restaurant
in Malaysia in the year 1973 on JalanTunku Abdul Rahman, now it has more than
390 restaurants throughout Malaysia and growing.
KFC is the most famous and largest fast food franchise in the World No 1 brand
in Asia with the market leadership in Japan, China, Malaysia, Indonesia, and
Korea.

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 KFC Malaysia is the famous fast food restaurant in Malaysia; KFC sells in
chicken, burger, nugget, sandwich, potato wedges, drinks, French fries, mashed
potatoes, coleslaw and many more .KFC primary focus is fried chicken also offer
roasted chicken product..
KFC Goals is to capture the market of health conscious and vegetarian customer
by 10 percent in year 2009.Reduce cost of production of 20% by the year
2009.Improve customer satisfaction by 50% through various methods, for example
opinion box; provide training, stringent standardization procedure before year
2010.Increase growth rate from 4% currently to 8% by the year 2009.Increase
market share in rural area by 10% in year 2010. For example: Senadin, Miri.

KFC Malaysia caters to various groups of people, from individual to families, and
children as well. They serve different sets of meals to suit the different group of
customers KFC Malaysia target customer would in the age of between 4 to 40
years old. The fast-food chain known today as "KFC" began back in the 30s when
Harland Sanders, (born September 9, 1890) began serving chicken to the patrons of
his service station in Corbin, KY. He didnt have a restaurant then, but served
people on his own dining table in the living quarters of his service station.
Eventually the operation grew and moved across the street to a motel and
restaurant. In 1935, in recognition of his contributions to the states cuisine
Governor Ruby Laffoon made him a Kentucky Colonel.

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In 1952 Pete Harman became the first Kentucky Fried Chicken franchisee, with a
store in Salt Lake City. In 1956, at the ripe young age of 65, the Colonel sold the
Corbin, KY, location and went on the road to enlist new franchises. In 1964 he sold
the chain to a group of investors including John Y. Brown Jr. and Jack Massey for
$2 million. The Colonel continued on as spokesman for the company, which went
public in 69, and then was sold to Heublein Inc. in 71 until his death 1980.

PepsiCo, Inc. acquired the chain in 86, eventually changing its name and logo to
KFC in 91. Today, KFC has well over 9,000 locations worldwide, including +
+China, Russia, and Australia.

It has only been over the past few years that the company has had a kid meal
program that offered premiums. Virtually all of these have had been licensed
products, looking to Sony (Beakmans World, Ghostbusters); Marvel Comics
(Spider-Man, Hulk, Fantastic Four, Wolverine); Disney (Timon&Pumbaa); Saban
(Masked Rider); and others (Scholastic/ Animorphs; United Media-BBC
Worldwide/Wallace &Gromit).

Unlike many of the other fast food operations, KFC tends to keep their promotions
running for longer periods of time, having only four to six promotions throughout
the course of the year. The advantage to this approach to meal premiums is twofold
with pluses for both KFC and collectors. On KFCs side, the company incurs less
traffic, marketing, and operational expenses that are associated with acquiring and
scheduling promotions. While for collectors, the advantage is that there is more
time to acquire preferred toys.

PRODUCTS OF KFC
OMG Burger*

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An oven baked omelette with onions & bell peppers; filled with Molten cheddar
cheese, jalapeos, paprika &chillies& topped with a crispy Golden hash-brown -
enclosed in a soft bun with spicy chilli mayo!

OMG Roller*

An oven baked omelette with onions and bell peppers; filled with Molten cheddar
cheese, jalapeos, paprika &chillies& topped with a crispy Golden hash-brown -
enclosed in a warm tortilla with spicy chill mayo!

Chicken Snacker*

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A delicious chunk of chicken served in a soft sesame bun, with salad and Thousand
Island sauce.

Potato Krisper

A Crispy potato patty, topped with tangy sauce and served up in a soft, warm bun!

KoldKoffee

An exquisite blend of rich coffee, dairy and a hint of chocolate.

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Following are the objectives which were studied ,analysed
under the study of this project :
1. To identify the factors affecting the choice of Indian young consumers for fast
food.

2. To study the consumption pattern towards fast food with respect to the frequency
of visits, choice of fast food outlets.

3. To analyse the consumer perception about two popular Food Franchisee

McDonalds and KFC in JALANDHAR city.

4. To know the customer preferences towards KFC & McDonalds

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Literature review :
Schiffman and Kanuk (2004)Woodruff and Gardian (1996) defines
customer satisfaction as The individuals perception of the performance of
the product or service in relation to his or her expectations.
According to Hung (1977), . satisfaction is a kind of stepping away from
an experience and evaluating it One could have a pleasurable experience
that caused dissatisfaction because even though it was pleasurable, it wasnt
as pleasurable as it was supposed to be. So satisfaction / dissatisfaction isnt
an emotion, its the evaluation of the emotion. defines Satisfaction, then, is
the evaluation or feeling that results from the disconfirmation process. It is
not the comparison itself (i.e., the disconfirmation process), but it is the
customers response to the comparison. Satisfaction has an emotional
component.
Oliver (1977)Some of the definitions available from web are compiled
below: Customer satisfaction, a business term, is a measure of how
products and services supplied by a company meet or surpass customer
expectation. defines Satisfaction is the consumers fulfilment response. It
is a judgment that a product or service feature, or the product of service
itself, provided (or is providing) a pleasurable level of consumption- related
fulfilment, including levels of under- or over-fulfilment.

McDonalds is one of the biggest fast food restaurants in the world. Its position as
a fast food restaurant is very strong as there are a lot of McDonalds outlets spread
all over the world. In Indonesia, McDonalds has been able to win the competition
from its rival, Burger King and made Burger King close its restaurants
(Tangkudung, 2002).

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The success of McDonalds is also driven by its strategy to maintain its brand
image. According to Sari (2005), one strategy to use is by utilisizing its operations,
managing policies as well as human resources to support its long term goals. In
addition to this, Jacob & Nicholas (2009) also stated that competitive strategy
includes cost or price, quality, delivery speed, delivery reliability, copying with
changing demand, flexibility and new product introduction speed and other product
supports. There are a lot of ways to make customer satisfied and become loyal.
One way is by building positive brand image (Randal, 2001). Creating strong and
positive brand can make customers feel and think that the product or service
offered is better than its competitors. So restaurant owners always try to create
positive brand image in their customers mind.

Sondoh et al. (2007) has studied about the effect of brand image on overall
satisfaction and loyalty intention in the context of color cosmetic by
distributing questionnaires to 97 female respondents in Malaysia. They used
customer satisfaction as a mediating variable. It is found that positive brand
image could influence customer loyalty so that they would repurchase more
product or service and recommend others to buy as much as 41.8%. This
study also shows that there was positive relationship between brand image
and customer loyalty as much as 35.8%. In addition, customer satisfaction
could also lead to customer loyalty as much as 21.1%.

Indian shopping hotspots are sporting more and more golden arches these days. If
McDonald's is expanding like never before, not far away is KFC (Kentucky Fried
Chicken), though on a lesser scale. Their guests are young, their menus glocalized,
their branding established, and their menus are no longer over-priced. After more
than a decade in the highly fragmented quick service restaurant (QSR) segment -
only 20 per cent of the Rs 10,000-crore segment is organized - McDonald's and
KFC are growing at a nippy 20-25 per cent, despite the slowdown.

Amitjatia (2002) "In a recession, we see ourselves as a good substitute for

premium dining," says AmitJatia, managing director of Hardcastle
Restaurants, a joint venture partner of McDonald's. "We are rapidly

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 expanding because we have tested the supply chain for over 15 years and it
has given us the opportunity to scale up." McDonald's, which had 20 stores
in India till 2002, today has 160. It plans to open 200 more over five years,
with an investment of Rs 500 crore. KFC, the smaller player with 52
restaurants, plans to open over 100 more outlets in the next two years.

Unnatverma (2002) Though McDonald's foray into chicken nuggets this

year has taken it into KFC territory, the companies give the impression of
ignoring each other. "The Indian market is very large for QSRs and our
focus is on large portions of white meat, while the competition focuses on
different products," says UnnatVarma, marketing director of Yum
Restaurants, which has been developing KFC and Pizza Hut in India. The
pricing of its menus makes McDonald's a quick eatery with the average per
person spend at Rs 100. KFC's spend is higher, at Rs 125-150.

Many Indian retailers have not turned cash positive because they burnt most of
their money on building the front-end. But, "McDonald's and KFC have got an
amalgam of things right," says Harish Bijoor, a Bangalore-based brand and
marketing consultant. "While McDonald's has converted millions of people with its
Rs 20 happy price menu, KFC has done it with its large portions as a QSR-plus
restaurant."

French SA et al, (2001) pointed out that visiting fast food restaurant is to
spent time with family and friends. Drewnowski and Spectre, (2000)
contends that one of the factor that influences consumption of fast food is by
socio-economic status. Usually people with low economic status prefer
roadside stalls which are inexpensive; hygiene is not a criterion for them. On
the other hand, high income people select branded restaurants as hygiene
and nutrition both the factors are important for them.
Herman and Polivy, (1984) emphasizes that one factor that influences the
choice of fast food restaurants depends upon whether they are from rural

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 area or urban area. He observed that as the density of fast food restaurants is
low in rural areas the consumption of fast food in retails outlet is less.
Dr.Qian Sun at el (2012), found that that visual aesthetics is now as
equally important to the consumer decision making process in India as the
traditional elements of price and functionality. However, the study suggests
that intrinsic factors are still far more important than extrinsic ones in the
Indian consumer decision making process.

Research methodology

It is well known fact that the most important step in marketing research process is
to define the problem. Choose for investigation because a problem well defined is
half solved. That was the reason that at most care was taken while defining various
parameters of the problem. After giving through brain storming session, objectives
were selected and the set on the base of these objectives. A questionnaire was
designed major emphasis of which was gathering new ideas or insight so as to
determine and bind out solution to the problems.

DATA SOURCE

Research included gathering both Primary and Secondary data.

Primary data is the first hand data, which are selected a fresh and thus happen to
be original in character. Primary Data was crucial to know various customers and
past consumer views about bikes and to calculate the market share of this brand in
regards to other brands.

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Secondary data are those which has been collected by some one else and which
already have been passed through statistical process. Secondary data has been
taken from internet, newspaper, magazines and companies web sites.

RESEARCH APPROACH

The research approach was used survey method which is a widely used method for
data collection and best suited for descriptive type of research survey includes
research instrument like questionnaire which can be structured and unstructured.
Target population is well identified and various methods like personal interviews
and telephone interviews are employed.

SAMPLING UNIT

It gives the target population that will be sampled. This research was carried in
Jalandhar.Sample size is 50.

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 1. Do you think fast food is good for our health ?

Particulars No. of respondents

Yes 30
No 70

No. of respondents

30%
Yes
No
70%

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 Interpretation : from above it is clear that 30 of the respondents think that
fast food is good for health and 70 thinks that it is not good for health.

2. Which one do you like the most , KFC or McD ?

Particulars No. of respondents

KFC 18
McD 22
Both of them 5
None of them 5

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 no. of respondents

25

20

15
no. of respondents
10

Interpretation : It can be said that 18 respondents like KFC , 22 like McD

whereas 5 like both of them and 5 does not like any of them.

3. How often do you go to KFC or McDonalds ?

Particulars No. of respondents

Once in a month 10
Twice in a month 15
Not a fixed time 20
I dont go there 5
Total 50

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 no. of respondents
25

20

15

10 no. of respondents

Interpretation : From above data it can be said that 10 respondents visit

McD or KFC once in a month wheras 15 twice a month , 20 had no fixed
time and 5 dont go there.

4. How much money do you spend in KFC or McD ?

Particulars No. of respondents

Less than 100 4
100 500 12
500 1000 8
More than 1000 26

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 no.of respondents

30

25

20
no.of respondents

15

10

0
less than 100 100-500 500-1000 more than 1000

Interpretation : it can be interpreted that 4 respondents spend less than 100 ,

12 spend between 100-500 whereas 8 spend 500-1000 and 26 spend more
than 1000.

5. Which dining environment is better than KFC or McD ?

Particulars No. of respondents

KFC 24
McD 28

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 Both of them 44
None of them 4

no. of respondents
KFC McD both of them none of them

4%
24%

44%

28%

Interpretation : From above analysis it can be interpreted that 44 respondents

feel that dining of both McD and KFC is good whereas 4 feels none of them
has good dining environment , fe24els good of KFC and 28 feels McD has
good dining environment.

6. Which provides better services , KFC or McD ?

Particulars No. of respondents

KFC 17

30
 McD 19
Both of them 14

No. of respondents
20
18
16
14
12 No. of respondents
10
8
6
4
2
0
KFC McD Both of them

Interpretation : Hence , from above it is clear that 17 respondents feels KFC

provides better services , feels 19 McD provides better services and 14 feels
both of them provides good services.

7. Which restaurant is cleaner , KFC or McD ?

Particulars No . of respondents
KFC 15

31
 McD 23
Both of them 8
None of them 4

no. of respondents

Mcd
both of them
none pf them

Interpretation : 15 respondents feels that KFC is cleaner restaurant , 23 feels

McD , 8 feels both of them and 4 feels none of them is cleaner.

8. Are you influenced by the promotional offers provided by the KFC or

McD ?

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Particulars No. of respondents
Yes 12
No 10
Sometimes 28

no. of respondents

30

25

20 no. of respondents

15

10

0
yes no sometimes

Interpretation : From above it can be said that 12 respondents are influenced

by the offers , 10 are not and 28 are sometimes influenced by the offers
provided by KFC or McD.

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9. Do the advertisement influences you to go at McD or KFC ?

Particulars No. of respondents

Yes 28
No 10
Cant say 2
Yes , sometimes 10

no. of respondents

20% yes
no
4% can't say
yes , sometimes
56%
20%

Interpretation : From above it can be interpreted that 28 respondents said

that advertisements influences them , 10 said no , 2 cant say anything and
10 said that they yes sometimes advertisements influences them to go at
KFC or McD.

10.When you prefer most to go at KFC or McD ?

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Particulars No. of respondents
To eat 22
To meet friends 15
Good place to visit 8
Any other 5

no. of respondents
25

20

15

10 no. of respondents
5

Interpretation : It is clear that 22 respondents prefer to go their to eat , 15 to

meet friends , 8 said that it is good place to visit , and 5 go their for any
other reason.

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 11.Which one do you think has more negative news , KFC or McD ?

Particulars No. of respondents

KFC 8
McD 7
Both of them 23
None of them 12

no. of respondents

25

20

15
no. of respondents
10

Interpretation : From 50 respondents 8 respondents thinks that KFC has

more negative news , 7 thinks McD has more , whereas 23 thinks that both
of them has same level of negative news and 12 thinks that none of them
have negative news.

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 12.According to you , why do you choose the restaurant ?

Particulars No. of respondents

Advertisement 4
Taste 10
Products & services 20
Health 2
Good environment 8
Reasonable price 4
Any other 2

no.of respondents
25

20

15

10
no.of respondents
5

Interpretation : From above it can be said that 4 respondents choose

restaurant because of advertisement , 2 because of taste , 20 for products&
services , 2 for health , 8 for good environment , 4 for prices and 2 becaue of
another reasons.

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Findings

In INDIAN market, McDonald's and KFC make continuous development and

achieved great success. However, on the contrary to their performances in the
global market, in this key market KFC surpasses McDonald's in terms of speed,
quality, performance and reputation. The main reasons are that KFC emphasizes on
how to integrate into the Indian market and work out a development strategy with
strong Chinese characteristics. In short, KFC gained a competitive advantage over
McDonald's. It mainly reflected in these two aspects: In the aspect of business
strategy of growth

1) Based on double win strategy, KFC's business scale expended rapidly. The way
of corporation is in line with the investment psychology of the Indian people. At
the same time, McDonald's is mainly seeking stability.

2) McDonald's took the brand extension diversified business strategy adjustment,

however, it is not ended in the success. In the aspect of competitive strategy of
growth

3) KFC has larger scale of business in India. KFC purchased raw material with
almost 100% localization. KFC has a cost advantage compared to McDonald's.

4) KFC has deeper localized product than McDonald's.

5) There are small differences in target market positioning between KFC and
McDonald's. KFC lead McDonald's in many aspects.

6) Both KFC and McDpays a lot of attention to brand building localization.

7) KFC develops localized high-level management personnel in order to make

better company's strategic adjustment. McDonald's personnel diversification is
reflected in employing senior staff from the head office.

8) In supplier management, McDonald's independent spirit advocated by the

United States; KFC integrated into the culture of the INDIAN people way of doing
business, reflecting the "love and loyalty" in Indian culture.

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Recommendations
Through a comparative study of McDonald's and KFC development in India it
focused on business and competitive strategy, I would like to have some
suggestions for other abroad fast food restaurant if they desire to expand their
business in Indian market.

Business strategy:
1. Running more outlets is main way at this stage.

2. The franchise chain will be an inevitable road to business expansion.

Competitive strategy:
1. Providing featured service and health products.

2. Achieving standardization in each process and areas of service.

3. Establishing a brand image that penetrates into the essence of every detail.

4. Setting target market with clear personalized positioning.

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Limitations

The sample size taken is only 50 and as such is very small as compared to
the universe, this is due to the constraints of time and effort, and as such may
not be enough to generalize to the entire population, however it is presumed
that the sample represents the universe.

Respondents might have responded with the actual feelings of facts while
giving responses to the questionnaire.

Time being a limiting factor was not sufficient to gather opinions from
majority of the respondents, who form part of the universal sample.

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Conclusion
Hence , under the study of this project , Customer satisfaction towards
McDonalds and KFC.I gain the driving factors for Indian market operating result
difference of both companies by comparing between McDonald's and KFC from a
strategic point of view, thinks about the strategic issues for the future development
of Indian fast food. However, due to the limitations of time and ability, I was not
able to make this project very comprehensive in which only involved some basic
aspects. Although I collected a lot of information about these two companies, some
of which is related with the company's strategy, high-level attention and guidance
of the two companies is needed.

In the end we can conclude that customers are satisfied from both McD and KFC ,
they are overall satisfied from the products & services of McDonalds and KFC.

Bibliography
41
Websites and books:

www.google.com
www.scribd.com
Consumer behaviour by C.S Kothari
Marketing management by Philip Kotler

Annexure

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1. Do you think fast food is good for our health?

Yes.

No

2. Which one do you like, KFC or McDonalds?

KFC

McDonalds

Both

None of them

3. How often do you go to KFC or McDonalds?

Once a month

Twice a month

Not for a fixed time

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 I dont go there.

4. How much money do you spend in KFC or McDonalds?

Under 500

500-700

700-1000

Above 1000

5. Which dining environment is better, KFC or McDonalds?

KFC

McDonalds

Both

None of them

6. Which service is better, KFC or McDonalds?

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 KFC

McDonalds

Both

None of them

7. Which restaurant is cleaner, KFC or McDonalds?

KFC

McDonalds

Both

None of them

8. Will the advertisement influence you to go to their restaurant?

Have a great influence

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 Influence a little

Have no influence

Not to matter

9. Are you influenced by the promotional offers provided by the KFC or McD?

Yes

No

Sometimes

10. On what occasion will you go to KFC or McDonalds?

It is convenient to have something to eat.

Meet with friends.

It is a good place to have a rest when you are tired of shopping.

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 Other reason:

11.Which one do you think has more negative news, KFC or McDonalds?

KFC

McDonalds

They have the same amount of negative news.

12.According to your choice, why do you choose this restaurant? ( you can choose
more than one answer) [Multiple]

Advertisement

Taste

More new products

Health

Good environment

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 Good service

Reasonable price

Others

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