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Once you have created and implemented your strategy, try to identify the
feed from you customer and if any changes or improvement is required
apply it for the maximum satisfaction of customers
This helps you to identify that, where your strategy needs to be improved
and how it can be developed, so that it can be implemented for effective
action. Before applying any strategy in the business proper planning
programs must be organized within the members of the organization.
WHAT IS MARKETING?
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Marketing
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From the above definition we are able to understand that a successful
marketing deals with satisfaction of both the parties. The definition
basically explains that there is a simple process i.e. is selling something
to somebody however, the definition conveys that an exchange of goods
and services without any barter system and having common currencies,
that exchange is called a sale. So while achieving the goals of the
marketing by selling, it is not compulsory that both the parties should
agreed upon the transaction. Satisfaction of both parties is a hided in the
exchange relationship. Marketing must understand the product, ideas
and services along with the "Needs & Wants" of the consumers.
Marketing must not only understand this equation but also establish the
policy to maintain balance between both the sides, by implementing
marketing strategy.
Business Advantages
Business Disadvantages
Till today no one knows about their final ending of the case. The parties
eventually entered into a secret settlement which has never been
revealed to the public.
HISTORY OF MCDONALDS
The story of McDonalds was started in1940, as a fast food restaurant by
two brothers named Richard and Maurice McDonald in San Bernardino,
California in US. The name of restaurant was McDonalds Hamburgers,
by mid-1950s their restaurant revenue had reached $350000.Raymond
Kroc, the distributor for milk shake machines expressed interest in their
business and finalized the deal for franchising with both the brothers. He
established a franchising company called McDonald system
incorporation. In 1955 he became the founder of McDonalds and bought
out the McDonald brothers share for $2.7 million and changed the name
of the company to McDonalds corporation. Kroc proved himself as a
pioneer who revolutionized the American restaurant industry. Today
McDonalds is the California worlds largest fast food chain serving 47
million customers daily. McDonalds is now one of the most valuable
brands globally, worth more than $25 billion. Though the company has
roots in the US, McDonalds today has become an ACCEPTED CITIZEN
OF THE WORLD.
RAYMOND KROC
MISSION STATEMENT
BUSINESS STRATEGY
MCVEGGIE MCALOOTIKKI
For this, they have a tie-up with Walt Disney. At several outlets, it also
provides special facilities like PLAYING PLACE where children can play
arcade games, air hockey, etc.
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background music highlight the comfort that McDonalds promises in
slogans like YOU DESERVE A BREAK TODAY, FEED YOUR INNER
CHILD. This commitment of quality of food and service in a clean,
hygienic and relaxing atmosphere has ensured that McDonalds
maintains a positive relationship with their customers.
After analyzing the market, finding the key factor, target segment and
understanding the market demand, every company needs to come up
with an offers or such type of plan, that speed up the growth of the
company. For which McDonalds uses 5ps of marketing mix which are as
follows:
1. Product
2. Place
3. Price
4. Promotion
5. People
PRODUCT:
Product includes that, how the company should design, manufacture the
product so that it enhance the customer experience?
McDonalds has purposely kept its product depth and product width
limited. McDonalds had first studied the behavior of the Indian customer
and provided a totally different menu as compared to its menu offered in
International market. It removed pork, beef and mutton burgers from the
menu. India is the only country where McDonalds serve vegetarian menu.
Even the sauces and cheese used in India are 100% vegetarian.
McDonalds continuously innovates its products according to the changing
preferences and tastes of its customers. The recent example is the
introduction of the Chicken Maharaja Mac and latest introduction of
chicken style is Chicken Mcnuggets.
McDonalds brings best product of quality and of best features as per the
preference and demand of the target market.
PLACE:
There are certain degree of fun and happiness that McDonalds provides
to its customers. It provides value position based on the needs of the
customer. McDonalds offers proper hygienic atmosphere, good abidance
and better services.
There are also games for children the one example is air hockey.
Children play games till the time there parents spend quality time in
McDonalds.
PRICE:
All the other three are the expenses incurred in the business. The price
needs to take demand and supply equation into consideration by
analyzing the pricing demand as per Indian market.
Im loving it.
Direct marketing is also one of the efficient tools for promotion. The
McDonalds uses tool in the home delivery services in which they directly
serve the order to their home. Also they have a websites which are more
in preference for direct marketing in that they usually mentioned all the
new offers along with the contact number of your nearby outlets.
PEOPLE:
McDonalds understands the importance of both its employees and its
customers. It understands the fact that a happy employee can serve well
and result in a happy customer. McDonald continuously does Internal
Marketing because if the internal marketing is effective it will automatically
lead to in the success of external marketing.
1. Customers
2. Front line employees
3. Middle level managers
4. Front line managers
The punch line Im loving it is an attempt to show that the employees are
loving their work at McDonalds and will love to serve the customers.
CO-BRANDING STRATEGY
Co-branding strategy is also one of the beneficial instrument for boosting
the business and providing different the same things in different manner.
In fact co-branding means having a tie ups with another firm and serving
the customer with both the products. It helps in making profit for both the
business enterprise as well as to increase their sales and growth of
organization.
The two different brands enter into co-brand through certain contracts or
agreement and as per the agreement they bifurcates their earnings from
their brands. There are different examples of co-branding strategy of
McDonalds which are as follows.
COCA-COLA
Coke is one soft drink brand that had tie up with McDonalds since past
many years. In McDonalds the coke is the best beverage in cold drinks
which are served to the customers along with different menus of the
McDonalds for example happy meal, happy price menu etc. As coke is
preferred by childrens even their parents as well as the young youths.
Therefore by keeping in mind the consumer wants they came up with
Coca-cola. In fact this co-brand of McDonalds is initiated to increase the
volume of sales of the both the business enterprise.
And of course this co-branding strategy has encouraged both the
business in achieving the successful returns of customers satisfaction.
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beverage choices and meet customers' changing taste preferences and
desire for more suitable, convenient beverage options.
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WALT DISNEY
The McDonald's Happy Meal promotion featuring the Walt Disney World
"100 Years of Magic" celebration is a historical collection of Disney
favorites, from classic characters like Mickey Mouse, Dumbo, Cinderella,
and Mary Poppins to the newer innovations, including: Ariel, Aladdin,
Bianca, Pocahontas, Tarzan, Jesse and Hercules.
One toy is included with each Happy Meal and can be purchased at
participating McDonald's restaurants, while supplies last.But,
unfortunately the Walt Disney had end the relationship with McDonalds
due to some genuine reasons. Thus Walt Disney is considered as X-co-
brand of McDonalds.
BARBIE TOYS
Barbie Happy Meal Toys have taken the form of a variety of Barbie doll
favorites. These toys have become a highly sought after segment for
collectors of both Barbies and McDonald's toys.
CADBURY
McDonalds have included Cadbury in the beverages prepared with
Cadbury and creamy milk shake mostly loved by children. England has
combined two favorite things that are Cadbury and crme eggs.
Now McDonalds is offering a Cadbury Crme Egg McFlurry. It is tasty
and rich also it is provides some quantity of protein and vitamins as it is
made from eggs and milk, A cold crme eggs with the vanilla ice cream,
mix in a sauce that looks like the yellow yolk, and add in delicious
chocolate bits.
The tasteful McFlurry have also worked in anticipating the taste of the
customer. Therefore, it is considered as one of the most preferring
beverages in the menus of McDonalds.
CADBURY AND MCDONALDS
HOT WHEELS
The History of McDonald's and Hot Wheels die-cast cars: McDonald's has
attempted to develop promotions for children, since 1961 with small
related plastic toys, in their Happy Meals. The first models of cars
distributed for McDonald's started in 1983, using the Hot Wheels models
of the normal line and followed all the way through 1990. In 1991
McDonald's found another way to distribute the Hot Wheels in their
Happy Meals for the first time.
Some of these were Hot Wheels by Collector Number and were also
placed in a factory plastic baggie for the first time. Since then, some
annual promotions related the models of cars had been made. They had
enclosed models like, Hot Wheels, Matchbox, Stompers 4X4, Tonka and
Bigfoot toys.
In order to achieve that, they tie up with oil marketing companies like
Hindustan petroleum and Bharat petroleum to open on revenue-sharing
model.
1. Inform
2. Persuade and
3. Remind.
The major media for advertising are as follows: Newspapers, Television,
Direct mail, Radio, Magazines, Internet, Outdoor (billboards, blimps, etc.),
Yellow pages, Newsletters, Brochures, and Telephone.
ADVERTISING STRATEGY
There have been many McDonald's advertising strategy and slogans over
the years. McDonalds is one of the most widespread fast food
advertisers. McDonald's Canada's corporate website says that the
business campaigns have always focused on the "overall McDonald's
experience", rather than just product. The purpose of the image has
always been "portraying warmth and a real slice of everyday life." Its TV
ads, showing various people engaging in popular activities, usually reflect
the season and time period. Finally, they have never in their advertising
history used negative or comparison ads pertaining to any of their
competitors; the ads have always focused only on McDonalds alone.
McDonalds has for decades maintained an extensive advertising
campaign. In addition to the usual media television, radio, and
newspaper, the company makes significant use of billboards and signage,
sponsors sporting events ranging from Little League to the Olympic
Games.
Television has always played a central role in the company's advertising
strategy.
SLOGANS
US
We cook it all for you at McDonald's (1982, concurrent with 1980 slogans)
McDonald's and you (1983-1984)
It's a good time for the great taste of McDonald's (1984-1988)
It's Mac Tonight (1985, Mac Tonight advertising)
McDonald's is your place to be (1986)
Good time, great taste (1988-1990)
My McDonald's (1997)
When you see the golden arches, what is the first thing that comes to
your mind? Or what about when you see Ronald the clown, what comes
to your mind? Finally, what has 2 all, special sauce, lettuce salad on a
sesames bun? Hmmm Sounds a lot like McDonalds knows how to
capture your attention.
One of things that McDonalds has proved is that they are good at
building its brand loyalty. Even young children know that when you see
the golden arches that you are close to a McDonalds. With its
international expansion efforts, McDonalds has become one of the most
recognized brands world-wide. A couple of the things that has helped to
build McDonalds brand is their constantly changing menu and brand
packaging that meets the needs of their consumers.
POSITIONING STRATEGY
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They have send out FSIs (free standing inserts) as designed at the end
of this report to ensure that their loyal customers will be motivated enough
to try the new campaign even though they have always loved and used
McDonalds.
These FSIs will also act as a way to get customers who may have never
been to the store. Users and non-users alike will use the Club McDonalds
to their advantage. They expect that their younger target will seek out
memberships in Club McDonalds.
The online points-tracker and profile will add to the innovation factor. No
need of paperwork when figuring out your point totals and prize eligibility.
This is easy to use aspect of the promotion is appealing to those who
were born with computers.
Club McDonalds is targeted at younger people who are familiar with credit
cards and some of the rewards cards that are part of them.
1. Adding restaurants.
2. Maximizing sales and profits at existing restaurants.
3. Improving international profitability.
TRAINING POLICY
It is the goal of McDonald's to develop the highest level of skill
among all employees. Therefore, a common training programme
has been established to develop staff and to meet the training
needs of the company.
McDonalds Head of Training is responsible for implementing and
directing the training programme throughout the company. Operations
Supervisors and Restaurant Management participate in the programme
and are responsible for individual restaurant
results.
CREW MEMBERS
1. Each crew member receives on-the-job training in every area of the
restaurant.
2. Full-time staff is fully trained on all stations in the restaurant within five
months, part-time within ten months.
3. All 5-star crew members receive a Basic Certificate in Food Hygiene,
validated by the Institution of Environmental Health Offices.
Food preparation
Cooking
Serving customers in clean and hygienic surroundings.
PRODUCTS
McDonald's continually reviews how its products relate to dietary
recommendations, at the same time it ensures maintenance of quality,
taste and value.
CUSTOMERS
McDonald's helps customers to balance their diet by providing
detailed Nutritious information on all its products.
STAFF
McDonald's encourages staff to understand the principles of healthy
eating. Specials training programmes are held for attainment of this
objectives.
PARTNERS
McDonalds works closely with franchises, suppliers and distributors to
meet their commitments to quality, nutrition, hygiene and food safety.
DIVERSIFICATION
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The requirements of customers change over time and thus the product
offering has to be changed accordingly. What is the trend today may be
out of market within few weeks. Thus continuous innovation is required.
This is used to delay the decline of a well established product which has
the potential of generating further revenue.
MCDONALIZING THE SUPPLIERS
McDonalds has changed the nature of not only the food service industry
but also the food processing industry as well. McDonalds realized that
the battle between fast food chains would increasingly be one of
efficiency of supply, lower cost production and greater desire to innovate.
It pioneered with innovative and sophisticated food distribution and
packaging systems when the traditional food processors were unwilling or
unable to supply food items that McDonalds demanded. They achieved
amazing consistency by giving more attention than anyone else to field
service and training at store level. Production was concentrated in huge
plants devoted exclusively to McDonalds. McDonalds also started with
tiny suppliers and grew with them displaying great loyalty.
COMPETITORS ANALYSIS
McDonalds has been a leading fast-foods outlet in Vile Parle. But the
outlet understudy has other competitors eating away into its market
share. In addition to its traditional rivalsKFC, Dominos, Pizza Hutthe
firm encounters new challenges. Jumbo King competes using a back-to-
basics approach of quickly serving up burgers for time-pressed
consumers. On the higher end, the KFC has become potent competitor in
the quick service field, taking away customers from McDonalds.
It is for this overall Food, Fun & Folks experience that customers pay a
premium over the other competitors.
MCDONALDS COMPETITORS:
COMPETITION BASES:
SPEED
The value meal allows customers to buy a sandwich, French fries, and
beverage at a discount when purchased together. McDonalds
restaurants offer from seven to twelve value meals, both for their lunch
menu and breakfast menu.More recently, McDonalds began offering a
value menu, consisting of many individual items costing only $1.00 each.
First tested in southern California, the value menu has proved to be very
successful and has been since incorporated to the individual stores.
Other countries have seen similar healthy options. The United Kingdom
saw fresh fruit bags, containing apples and grapes, as an alternative to
French fries. Not only does McDonalds care about its customers, but it is
also considerate of its employees health. In Europe, the organization
worked with external nutritionists to develop an Employee Guidebook
which contains tips and nutrition information for healthy lifestyles.
McDonalds has assembled their Global Advisory Council on Balanced
Lifestyles. This council consists of exercise & obesity specialists,
environmentalists, and other professionals to ensure that McDonalds
takes appropriate steps in helping its customers achieve optimal health.
The company is also utilizing technology to their advantage. The current
McDonalds website lets a user select any combination of menu items,
place the items in the online bag, and conduct a nutritional analysis on
their selections. The user can break down the analysis even further than
a menu item, down individual condiments, including ketchup; pickles etc.
Not only has the company introduced many steps to ensure nutrition, but
it will strive to continue the trend toward nutrition. McDonalds plans to
add additional healthy menu options (fruits and vegetables) increase
nutrition awareness among McDonalds employees; conceive new ways
to deliver nutrition information to its customers, and other actions.
CHANGE IN STRATEGY
Upon a new order, an employee in the kitchen will toast the bun, and
assemble the sandwich accordingly.
Standard items simply list the name of the sandwich, while customized
orders list the sandwich name and the desired condiments. Once the
sandwich is assembled, it is presented to the food loading area, where a
different staff person retrieves the sandwich and completes the order by
adding French fries, desserts, etc. The system works the same for front
counter orders as well as drive-thru orders.
Unfortunately, the introduction of the Made for You system did not come
easily. McDonalds watched its customer satisfaction drop for the three
consecutive years beginning in 1999.
After further research, they realized that although the new system
provided fresher food, it was not as quick as the previous system. Instead
of reverting back to the old system, McDonalds continues to fine tune
Made for You and add new options to help the system work faster.
Revitalization Plan
In order to cope with the first ever quarterly loss that resulted from
inefficient use of the Made-for-you-system McDonalds has devised a new
plan to increase profits. Previously, the corporation emphasized adding
more restaurants to increase sales, but the new plan places emphasis on
increasing sales at existing restaurants.
The new plan will reduce spending, to enable more cash to shareholders
through dividends and share repurchases. Specific goals of the
revitalization plan are to:
Some customers would fall in love with an item, but it would only last one
week, and they would be frustrated that they couldnt purchase their new
beloved favorite sandwich.
More recent changes to the menu have proved effective. McDonald
realized that many of todays customers seek healthy food options, and
the
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items and provides information to help its customers as well as
employees make informed healthy choices.
E.g. Vegetarian Menu
SWOT ANALYSIS
The Road Ahead
Entry to Tier 2 and Tier 3 cities The main target customer for
McDonalds is the new urban Indian family. With the customer
demographics constantly changing and tectonic social and cultural
shifts being observed in Tier 2 and Tier 3 cities due to globalization,
the company is now expanding to Tier 2 cities like Pune and Jaipur.
Ks
The young generation of India has moved towards junk food against the
traditional Indian homemade food. People have started to live a fast and
speedy life, so much so that they prefer going to the junk foodies
restaurant and eat food in just few minutes instead of making lunch/dinner
at home and wasting 2 to 3 hrs in preparing it.
It all started with the invention of McDonalds in INDIA, junk food has
become more popular between the young youth as McDonalds launched
its branch in most of the major cities of INIDA. Along with McDonalds
many other junk food brands have started their business here.
In MC Donalds you get a wide variety of choices for both VEG and NON-
VEG lovers. When it comes to Quality KFC is far behind from MC
Donalds, they really need to maintain their quality standards well if they
want to rise up the ladder and compete with McDonalds.
MCDONALDS EXPERIENCE
Supplementary process
Service delivery process
Core products
During the Service Delivery Process, each moment of interaction between
the firm and the customer, called Moments of Truth, helps understand
the opportunities that a firm has to win or lose the customer. For example,
these moments of truth are created for McDonalds every time the guard
at the McDonalds outlet meets the customer, every time an attendant
takes down the order from the customer waiting in the queue, every time
the cashier interacts with the customer, every time the attendant helps the
customer guided the customer towards the table, every time the attendant
cleans the table, etc.
customer
service provider
However, McDonalds has been able to create a great experience for its
customers by understanding the nature of the entire Service Delivery
Process and the various stages in the process that are exposed to the
customers. Transparency in the processes at its outlet has helped
McDonalds bring the back office in its outlet at the front so that the
customer is able to know the operations and provide feedback on service
design improvements.
Internal Customer Focus is equally important as External Customer
Orientation in order to win these moments of truth. McDonalds focus
on its People and their service delivery methods therefore plays a very
important role in creating a successful Service Brand. The quality and the
consistency of the service delivered by McDonalds have been greatly
enhanced by the combination of the factors mentioned above. This has
helped McDonalds become Service Leader and a successful Service
Brand. This is evident from the fact that very few of its customers opt for
take-home parcels or home deliveries while most of them prefer to eat at
the outlet and enjoy the McDonalds experience.
Year Events
1955 Ray Kroc opens his first restaurant. McDonalds Corporation is
created
1957 Quality, Service, Cleanliness and Value (QSC & V) becomes
company motto
1963 Ronald McDonald makes debut
1965 The company goes public
1968 Big Mac is introduced`
1974 Happy Meal is launched
th
1996 McDonalds opens in India, the 95 country
Total 1,815,000
budget
DELHI 33
U.P. 22
HARYANA 11
PUNJAB 7
RAJASTHAN 3
UTTRANCHAL 1
WEST BENGAL 1
HAMACHAL PRADESH 1
GUJARAT 7
KARNATAKA 7
ANDHRA 4
M.P. 3
HAMBURGER UNIVERSITIES
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Today, more than five thousand students attend hamburger universities
each year. Since 1961, more eighty thousand restaurants managers, mid-
managers and owners have graduated from this facility.
QUESTIONNAIRE
favourite product
7%
10%
9% 14%
maharaj mc
11% mc chicken burger french fries chicken mcnuggets mc puf
fileto fish
other 11%
38%
27%
39%
yes
no average
34%
long queues
28%
40% rude behaviour of
employees
congestion
10% 6%
10% 31% delivery
capaciousness product variety price
ofers and dis
others
20%
23%
Q. What is the first thing that strikes your mind about McDonalds?
22% 32%
4% burger
golden arches service
value for money
fun
17% 25%
yes
25% 56%
no
yes & no
no exp
CONCLUSION
BIBILOGRAPHY
www.McDonaldsIndia.com
www.Google.com
www.wikipedia.com