McDonalds

Presented By:Group 3 Anindit Borkotoky Hitesh Wadhwani Nisha Raut Saurabh Mehta Sayak Mazumder Vikas Gupta

Flow of the Presentation

Company Overview STP Customer Perception 7 P`s of McDonalds Porters Five Forces Recommendations

Company Overview
McDonald's was first opened in India in 1996
Leading fast-food chains

Ownership and management

Northern India- Vikram Bakshi's company Connaught Plaza Restaurants
Western India- Amit Jatia that is Hard castle Restaurants

More than 120 outlets and 1 lakh customers visit daily

Company Overview
Specially developed a customised veg menu for Indian customers along with its universal non veg menu Established a benchmark in the sector of quick service restaurant
Awarded many awards like the "Most Respected Company" for four successive years

Business Model
Franchisee driven model
15% owned stores, remaining 85% are operated by franchises

Product Consistency
By developing a sophisticated supplier networked operation and distribution system

Brand Equity
McDonalds focuses not only on delivering sales for the immediate present, but also protecting its long term brand reputation

Segmentation
Demographic:
1. 2. 3. Cater to kids Youth Urban upper & middle class families

Geographic:
1. 2. 3. Mostly in urban towns & cities Now opening in 2&3 tier cities Mostly situated in malls having independent franchises

Psychographic:
1. 2. Place to chill out with friends & families Place for enjoyment of the Kids

Segmentation
Segmentation on the basis of Vegetarian and NonVegetarian class. Specially designed menus for both the classes.

Vegetarian/Non-Vegetarian

Targeting
TARGET MARKETS Focus on metros, Malls, Multiplex, Highways, Stations & Airports Exposure to western food & culture Move to smaller satellite towns like Gurgaon, Pune Relatively High Income Groups

Cont.
The main target customer for McDonalds is the new Target Segment What is family. urban Indian McDonalds for me?
A Family with children A treat to children, a fun place to be for the children.

Urban customer on the move

Great taste, quick service without affecting the work schedule

Teenager

Hangout with friends, but keep it affordable.

Positioning
Mc Donalds mein hai kuch baat projects McDonalds as a place for the whole family to enjoy. It positions itself as an affordable place to eat without compromising on the quality of food, service and hygiene.

Perceptual Mapping

Favourite Product at Mc Donalds

Problems faced in Mc Donalds

7 Ps of McDonald (Product)
McDonalds product includes vegetarian and non-vegetarian items Also involves combo pack Concept of product bundling

Cares for customers sentiments towards religion and Culture Halaal meat processing in middle east Separate cooking area and equipments Product Elimination Removal of beef flavored products

Product
Product variation: Variety in product ranging from burgers to softies

McDonalds continuously innovates its products Product innovation: Adapting to Indian conditions creating the CHICKEN MAHARAJA

Product
Menu: Veg, Non Veg, Frozen, Desserts, Beverages Successes: Fries, Happy meal, Pizza Mc puff, Big Mac Failures: Fajita, carrot sticks, Mclean. etc

Price
Policy which caters to Indian customers Quite affordable products Importance to brand and its integrity McDonalds has certain value pricing and bundling strategies such as happy meal, combo meal, family meal etc to increase overall sales volumes. Aap ke zamane mein ,baap ke zamane ke daam This was to attract the middle and lower class consumers and the effect can clearly be seen in the consumer base McDonalds has now.

Place
Located at prime locations Almost in all big cities Offers hygienic environment good ambience & great service Started giving internet facility Areas for children where they can play & enjoy with their family Spend some quality time together

Video

Promotion
Target customer Promotion is both 'above-the-line' and 'below-theline'.
'Above' is advertising that is directly paid for, such as TV and press adverts. 'Below' is other promotions such as special offers, value added and competitions.

Description of Products on Paper Mats placed in the trays. The placing of the pamphlets and banners in and around the outlets

Promotion
Individual communication- word of mouth, peer group Mass communication- Advertisements & Child amusement activities at outlets, drives & campaigns Free distribution Of Children toys- with every happy meal

Some of the most famous marketing campaigns of McDonalds are: 1. You deserve a break today, so get up & get away- to McDonalds 2. Aap ke Zamane mein, Baap ke zamane ke DAAM 3. Food, Folks,& Fun 4. I m Loving it

People
Each store headed by Restaurant Manager
Responsible for daily operation and customer interaction

Stars provided to employees based on their performance to motivate employees Gives employees larger role in decisions Customer always comes first Fast friendly service Philosophy of quality, service cleanliness and value is the guiding force behind its service.

Porters 5 Forces
Rivalry among existing firms
Many small fast food business Intense competition in the Indian Market with other MNCs like Dominos, pizza hut, KFC

Threat of new entrants- Low

Hard to establish brand name for new entrants High cost of entry in the market High R&D costs Price Competition from chain restaurants

Porters 5 Forces
Threat of Substitutes- High There are many options in fast-foods to customers Customers could choose from Burgers to Pizzas to Beverages to noodles, etc Bargaining power of suppliers- Low McDonalds has gone into Backward integration and influences significant control over suppliers Bargaining power of customers- Medium McDonalds has to focus on value delivery to customers or else customers may switch

Future Recommendations
Introduction of loyalty program for Indian customers

Increase its product line, have more variety to choose from, to include more deserts and more items
Expand their Happy Meal choices to attract and retain customers To educate about healthy lifestyle, removing misconceptions about fast foods among people Introduction of cafeterias serving premium and specialty coffees and other beverages and other products such as cakes, pastries etc in the existing McDonalds.

Future Recommendations
Focus on gifts for all generations i.e. youth, kids especially senior citizen which is a completely new concept. Special promotions during festivals as Indians tend to spend more at such events. Try to sponsor college festivals. Work for social welfare of the society

Refrences
Behind The Arches- John S Love McDonalds Kharghar.

Thank You!!!