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A comparative study on mrkt. Strategy of fast food franchise like Mcdonald and Dominos

(Submitted in fulfillment of Master Of Business Administration programe from Uttranchal institute of business studies, Dehradun)

Submitted To:
Mr. Bipin Kandpal
(Faculty Of Mrkt. Dept.) `

Submitted By:
Kapil Quera




What is Franchising? Franchising in general means granting of certain rights by one party (the franchisor) to another (the franchisee) in return for a sum of money. The franchisee then exercises those rights under the guidance of the franchisor. The business format of franchising, being the important one, can be defined as the contractual license granted by one person (the franchisor) to another (the franchisee) which: Permits or requires the franchisee to carry on a particular business using the franchisors know-how under the franchisors brand as an independent business; Allows the franchisor to exercise continuing control over the manner in which the franchisee carries on the franchised business; Obliges the franchisor to provide the franchisee with ongoing support in carrying on the franchised business. Who is a Franchisor? He is the owner of the franchised system. It owns the know-how of the concept and the brand name. It grants franchises to third parties. Who is the Franchisee? He is the one who has been granted the right by the franchisor to carry on the business using the franchisors know-how and the brand name. McDonald's Corporation is the world's largest chain of hamburger fast food restaurants, serving around 64 million customers daily in 119 countries. Headquartered in the United States, the company began in 1940 as a barbecue restaurant operated by the eponymous Richard and Maurice McDonald; in 1948 they reorganized their business as a hamburger stand using production line principles. Businessman Ray Kroc joined the company as a franchise agent in 1955. He subsequently purchased the chain from the McDonald brothers and oversaw its worldwide growth. A McDonald's restaurant is operated by either a franchisee, an affiliate, or the corporation itself. The corporation's revenues come from the rent, royalties and fees paid by the franchisees, as well as sales in company-operated restaurants. McDonald's revenues grew 27 percent over the three years ending in 2007 to $22.8 billion, and 9 percent growth in operating income to $3.9 billion. McDonald's primarily sells hamburgers, cheeseburgers, chicken, french fries, breakfast items, soft drinks, shakes and desserts. In response to changing consumer tastes, the company has expanded its menu to include salads, wraps, smoothies and fruit. Domino's Pizza, Inc. is an international pizza delivery corporation headquartered in Ann Arbor, Michigan, United States of America.[1] Founded in 1960, Domino's is the second-largest pizza chain in the United States[2] and has over 9,000 corporate and franchised stores[3] in 60 countries[4] and all 50 U.S. states. Domino's Pizza was sold to Bain Capital in 1998 and went public in 2004. The menu features both vegetarian and meat pizzas, chicken wings and boneless chicken, potato wedges, garlic breads and a variety of dessert items including cookies and waffles, Ben & Jerry's ice cream and a variety of soft drinks including Coca-Cola, Fanta, and Sprite. Domino's has restaurants in all of the world's major cities such as New York, London and Chicago.


To explore the concept of franchisee. To explore the consumers perception and attitude towards fast food outlets. To explore the market growth of fast food franchisees. To assess the emerging prospects challenges of fast food franchisee. To explore the maketing strategy of McDonald and Dominos Pizza. To explore the market share of McDonald and Dominos in the fast food industry. To explore the competitive advantage of McDonald and Dominos. To explore the pricing strategy of the Mcdonald and Dominos. To explore the promotion strategy of the Mcdonald and Dominos.


Fast Food grows in India

Fast food is one of the worlds fastest growing food types. India is seeing rapid growth in the fast food and restaurant industries. It now accounts for roughly half of all restaurant revenues in the developed countries and continues to expand. The trend is radically changing the way people eat in India. Based on rising disposable income, changing consumer behaviour and favourable demographics, India is witnessing a tremendous growth in its fast food and restaurant industries. Additional reasons include exposure to western cuisine, the rising number of nuclear families and growth in the number of employed women, which are also having a significant impact on the eating out trends and growth of the fast food industry in the country. For a nation that is particular about its food and significantly fond of home cooked and fresh food, this trend is showing the globalisation of India and increase of new markets not witnessed in India before. With increasing number of people eating out the industry offers major opportunities to the players to capture a larger consumer base. As a result of the trend, all the international food players like Pizza Hut, Dominos, McDonalds and KFC are investing huge amount of money to grab a share of this highly lucrative market. Pizza Hut for example, is one of the flagship brands of Yum! Brands, Inc., which also has KFC, Taco Bell, A&W and Long John Silvers under its umbrella. Pizza Hut has 143 stores across 34 cities in India. A report by Research on India has found that traditionally, the Indian consumers have been eating at roadside eateries, dhabas and stalls which still occupy a major share of the unorganised sector, where fast food has been eaten traditionally. However, with the changes in the economy of the country and injection of modern employment from the West, the non-home food market has now changed. The market is highly competitive with a large number of Indian and foreign players seeking business in this upward trend. The market is dominated by global players, specially in the organised fast food segment. Growing trend of consumption of multi cuisines and increasing brand awareness has led to the increase of global players. Organised modern formats like malls and supermarkets have also become a favourite destination for the outlets. Larger companies are teaming up with small franchisors and mall owners to promote their brand.

The growing segment comprises of formats like fast food chains, cafes and fine dining restaurants. Two sub segments of the fast food market are the Pizzas and Burgers. These have now developed into part of the nations eating habits. Their share is continuously growing with the key global brands such as Dominos, McDonalds and KFC making their marks quickly. The chains have had no problems accommodating different menus for the Indian consumer. For example, McDonalds will not sell beef burgers but instead lamb and chicken burgers and have a larger selection of vegetarian food compared to the West. Changing behaviours of the Indian consumer have no doubt contributed to the success. Some of the brand outlets first started only in major cities such as Delhi and Mumbai. Now, they are continuously expanding to cities like Pune, Surat, Ahmedabad, Rajkot, Nasik, Aurangabad, Kolhapur, Chandigarh, Jammu, Chennai, Bhubhaneswar, Goa and Bangalore, to meet major demand. The challenges for the new style of Indian restaurants and fast food joints are food price fluctuations, cumbersome licensing laws, high cost of real estate and lack of skilled manpower.

As we see the present scenario of the 21st century India is developing very fast and therefore the growth opportunities for fast food industry like McDonald , Dominos , KFC,Pizza hut ,Yo china etc coming in India and growing very fast fastly. Therefore, McDonald and Dominos have a very cut throat competition with the domestic and MNC players both. Here we will identify that what marketing strategy are used by the McDonald and Dominos to beat out the competition and satisfy the needs of the customers through their best quality product and services without compromising the food quality.

Research Methodology is the systematic approach to solve the research problem with some logic behind it. Research design is the plan to be followed to answer the research objectives and the structure or frame work to solve a specific problem. But there is always a trade off between research sot and the quality of decision making information provided.


Research designs are concerned with turning the research question into a testing project. The best design depends on your research questions. Every design has its positive and negative ides. The research design has been

considered as a "blueprint" for research, dealing with at least four problems: what questions to study, what data are relevant, what data to collect, and how to analyze the results.


There are three types of research which will be applied in report as follows: DESCRIPTIVE RESEARCH EXPLORATORY RESEARCH


Sample size means how many samples to be interviewed.The sample size of my study will be 100 respondents.


The area of survey of my work regarding McDonald and Dominos is Rajpur road ,Dehradun, Uttrakhand.

1. Convenience Sampling 2.Judgemental Sampling 3.Stratified Sampling 4.Cluster Sampling

METHODS OF DATA COLLECTION Data can be collected by the help of two sources which are given below:
1. Primary data 2. Secondary data 7. CHAPTER PLAN The study is organized in following nine chapters: Chapter 1: Introduction This chapter introduces the Online Apparel Shopping. It throws light on the theoretical background,meaning and concept of topic. Chapter 2: Importance Chapter two reviews the importance of the study. Chapter 3: Rational behind of the study. Chapter three introduces the justification of the study. It describe Why this topis is taken. Chapter 4: Review Of Literature Chapter four reviews the literature in detail and discusses the various research studies on the topic under study. Chapter-5: Problem Identification Chapter five explores the problem identification.This chapter unveils the problem related with current scenario. Chapter-5 Objectives Of The Study This Chapter unfolds the objectives of the study. It describes what is your aim to conduct the study.

Chapter 6: Research Methodology Chapter six traces the research methodology and discusses in detail the various models developed, tools and techniques used for analyzing the research objectives. Chapter 6: Conclusion This chapter summarizes and concludes the research. Areas for future research are also discussed in this chapter


Philip Kotler, Marketing Management, 11 t h Ed, Princeton Marketing Research Naresh K. Malhotra

Hall India 2003

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