The McDonald’s Story

 McDonald’s started in 1954, when its founder

Raymond Kroc saw a hamburger stand in San
Bernardino, California and envisioned a
nationwide fast food chain.
 Today:
 world’s largest fast food chain
 serving 47 million customers daily.
 one of the most valuable brands globally
 worth more than $25 billion
 though the company has roots in the US,
McDonald’s today has become an accepted citizen
of the world.
Business Model
Franchise Model –
 Only 15% of the total number of restaurants are
owned by the company.

 remaining 85% is operated by franchises.

 The company follows a comprehensive

framework of training and monitoring of its
franchises to ensure that they adhere to the
Quality, Service, Cleanliness and Value
propositions offered by the company to its
customers.
 Product Consistency –

By developing a sophisticated supplier

networked operation and distribution
system, the company has been able to
achieve consistent product taste and quality
across geographies.
 Act like a retailer and think like
a brand

McDonald’s focuses not only on delivering

sales for the immediate present, but also
protecting its long term brand reputation.
McDonald’s in India
 McDonald’s entered India in 1996.

 McDonald’s India has a 50-50 joint venture with

Connaught Plaza Restaurants and Hard Castle
Restaurants.

 Connaught Plaza Restaurants manages operations in

North India while Hard Castle Restaurants in Western
India.

 The company is now expanding to Tier2 cities like

Pune and Jaipur.
Challenges in Entering Indian
Markets

 Re-engineering the
Menu

 The vegetarian
customer
Re-engineering the menu
 McDonald’s has continually adapted to the customer’s
tastes, value systems, lifestyle, language and
perception.

 Globally known for its hamburgers, beef and pork

burgers.

 Most Indians are barred by religion not to consume

beef or pork.

 To survive, the company had to be responsive to the

Indian sensitivities.

 So it came up with chicken, lamb and fish burgers.

The Veg challenge
 India huge population of vegetarians.

 To cater to this customer segment, the

company came up with a completely new
line of vegetarian items
McVeggie burger
McAlooTikki.

 The separation of vegetarian and non-

vegetarian sections is maintained
throughout the various stages.
Segmentation, Targeting and
Positioning
 McDonald’s uses demographic
segmentation strategy with age as the
parameter.

 The main target segments :

Children
Youth
Young urban family.
To attract children
Happy Meal (toys ranging from hot wheels
to various Walt Disney characters)

Play Place (children can play arcade

games, air hockey, etc.)

Birthday Parties

Fun Days
To target the teenagers
 Aggressive pricing, Target AD’s, Facilities
like Wi-Fi, Ambience, etc.
Family restaurant
 When McDonald’s entered in India it was mainly
perceived as targeting the urban upper class people.

 Always projected itself as the Family Restaurant

 Today it positions itself as an affordable place to eat

without compromising on the
 quality of food
 service
 hygiene.
Family
value meal
Marketing Mix: 7P’s
 Product
 Price
 Place
 Promotion
 People
 Physical evidence
 Process
Product
 Veg menus

 Non-veg Menus

 Beverages

 Desserts
 kept its product depth and product width
limited.

 totally different menu as compared to its

International offering

 dropped ham, beef and mutton burgers

from the menu.
 India is the only country where
McDonalds serve vegetarian menu.

 Even the sauces and cheese used in

India are 100% vegetarian
 Continuously innovates its
products according to the
changing preferences and
tastes

 The recent example is the

introduction of the Chatpata
McAlooTikki burger
 A new product range to
target the customers in
the morning
Breakfast Menu
Product strategy:
 Fast-serviced meal
○ Can be considered as the driving force
 Healthy food
○ Fat free food
○ Nutritional value displayed
 Quality
 Very efficient supply chain management
 products and suppliers are used on a “first-in, first-out” basis to
ensure freshness.
 On an average 20 different quality checks are carried out before
any product is served to our customers.

 Respect for the Indian Customs and Culture

 Introduction of vegetarian line
 only vegetable oil is used as a cooking medium
 The cheese and cold sauces used are 100% vegetarian.
Price
 McDonald’s leverages economies of scale to
minimize costs while maximizing value to
customers.

 Targeted to Middle Class

 Earlier perception
Upper Middle Class

 Now with aggressive

Pricing it has targeted
Whole Middle Class
value pricing and
bundling strategies
happy meal,
combo meal,
family meal etc

 Specifically priced
product for every
segment it targets
Place
 Strategic location
○ Nearly 50% of U.S.A is within a 3 minute drive
from a McDonald’s outlet.

 Offers
Hygienic environment,
Good ambience
Great service.
Internet facility
Play Areas
McDelivery
 Started free home delivery to penetrate
further
 Making IT reach the customer rather
than customer coming to it
 Promotion
 Uses every Medium
○ TV, Print, Hoardings
○ Bus Stops
○ Internet

 Spends 30% of its budget

on ads

 Rs 400-500 mn in 2009

 Focuses its ad campaigns

on its overall experience
and active life style.
 Its ads show happiness.

 And relates its product with happiness that it brings

through low price, hygiene, quality, fast service.

 Some of the most famous marketing campaigns of

McDonald’s are:
 You Deserve a break today, so get up and get away- To
McDonald’s
 Aap ke zamane mein ,baap ke
zamane ke daam
 Food, Folks, and Fun
 I’m loving it

 Nowadays its into

Social Marketing
Twitter Strategy
 Establish online hub for ongoing and consistent
communication to customers, media & influencers

 Demonstrate that McDonalds listens to its

customers & is open to feedback

 Use insight to share timely customer feedback on

important marketing initiatives
McDonalds- Social Brand
 Ranks 32 out of a list of “100 Most
Social” brands
 Promotional activities keep on
happening
 Tray mats ensure that no new

scheme gets unnoticed

 80:20 Menu Board
 People
 McDonald continuously does
Internal Marketing.

 It includes hiring, training and motivating able employees.

 Gives stars as per their performance

 It understands the fact that a happy employee can serve well and
result in a happy customer

 Gives employees larger role in decisions.

 Fast & friendly service

 The punch line “I’m loving it” is an attempt to show that the
employees are loving their work at McDonalds and will love to
serve the customers.
Physical Appearance
 Every care given for:
Cleanliness
Efficient Menu display
Ambience
Transparency
Speed
Quality
Packaging
Process
 Food manufacturing transparent to customers.

 Training to the licensees.

 Invented the most efficient cooking equipment.

 New methods of food packaging and

distribution.

 McDonald’s in India followed the same tradition.

 Spent Rs. 50 crores on market research.

PLC in McDonalds
 To counter these changes McDonalds has
continuously introduced new products and
has phased out the old ones which were at
the decline stage of their PLC.

 For eg. French Fries

 A perfect example of revitalizing a product
in decline phase
French Fries
 an important part of the McDonalds
menu worldwide

 But it was in the stage of decline and

was actually not generating proper
return.

 To revitalize it, a new variant was

introduced namely Shake Shake Fries
 Being served with chatpata spice mix
 resulted in increase in the sales of
French Fries
 elevated it from to the decline stage.
Swot Analysis
Swot Analysis
 CSR
 Instituted a special fund to support
green movements in Delhi.

 In Mumbai, it sponsors various community-

related activities—such as “keep your city
clean”

 Organizes McDonald’s Spotlight, which is an

annual interschool performing arts competition

 Celebrates World Children’s Week from

November 14-20 & raise funds for children
 CSR
 Blue Dot initiative that supports
educational programs for the girl-child

 Sponsors Pulse Polio program

 Sponsors & promotes various programs

for children
Thank You