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Re: McDonald's -
September 1st, 2007
hiiiiiii guys ,
seei don know to upload a project so i'm copyin it in this message box itself
Introduction of Project
Can you Guess the name of the company which:
Is the ninth most valuable brand in the world?
Has replaced the US army as the Nations largest job training organization?
Controls the market share of more than 3 food chains taken together in
It’s none other than McDonald’s Corporation USA. Looking at the above statistics makes one wonder that what is the driving force behind all these achievements? How is it that the chicken burger available in San Francisco is same as the one available in Delhi? Many of these question have been answered in the book “McDonald’s: Behind the Golden Arches” written by John love. But are these standards being carried out in India as well?
The Golden Arches of McDonald’s are slowly becoming an integral part of the Indian landscapes. Everyone knows McDonald’s is big, but very few know just how significant its impact on Indian business really is. The inside of McDonald’s remains a mystery.
McDonald’s India is a joint venture of McDonald’s Corporation with Amit Jatia and Vikram Bakshi. Amit Jatia handles the operation in westerns region whereas Vikram Bakshi in the Northern region.
McDonald’s India is an employer of opportunities, providing quality employment and long term careers to the Indian people. The average McDonald’s restaurants employees more than 100 people in 25 different position-from cashiers to restaurants managers. McDonald’s world class-training inputs to its employees can be seen in the present close to 2000 employees currently in Mumbai and Delhi.
But the most overlooked facts of McDonald’s India are its contribution to the food industry. Six years prior to the opening of the first Mc Donald’s restaurant in India, McDonald’s and its international supplier partners together with local Indian Companies to develop products that meet McDonald’s rigorous quality standards. Part of this development involves the transfer of state of the art food processing technology, which has enabled Indian businesses to grow by improving their ability to compete in today’s international markets. McDonald’s dedication to its supplier has lead to their growth beyond the boundaries of the India.
These aspects of McDonald’s do not get covered and highlighted by the hungry press. But when the false news of using beef tallow in the French fries hit the market, the press did not leave a chance to exaggerate it. Despite the fact that right form the beginning; no beef ingredients have been used in any of the product in India.
The Marketing Agency of McDonald’s, Mudra comes to its rescue in such times. The advertisements created by Mudra are a rage all over the nation, especially amongst the children, who can forget the little kid who gets nervous in the school competition, but becomes happy again when his father takes him to McDonald’s.
McDonald’s India has tried not to leave any stone un-turned in its objective to satisfy the Indian customer. But in Amit Jatia’s words, “customers are generally not forgiving.” According to the survey conducted, customers demand low prices, more seating space, more variety, home delivery, and the list is endless.
The fundamental secret to McDonald’s success is the way it achieves uniformity and allegiance to an operating regimen. McDonald’s India has to adhere to many rules and regulation laid down by the parent company, and it still has to cater to the Indian customer and his needs. McDonald’s India is a case study on how to mix conformity with creativity.
History of McDonald’s
… It all began in 1955, with a salesman named Raymond Albert Kroc and a Milk shake maker named MultiMate.
Raymond Albert Kroc (1902-1984)
Ray Kroc mortgaged his home and invested his entire life savings to become the exclusive distributor of a five-spindled milk shake maker called the Multimixer. Hearing about the McDonald’s hamburger stand in California running eight Multimixers at time, he packed up his car and headed west. It was1954. He was 52 years old.
Dick and Mac McDonald’s Restaurant,
San Bernardino, California
Ray Kroc had never seen so many people served so quickly when he pulled up to take a look. Seizing the day, he pitched the idea of opening up several restaurant to the brothers Dick and Mac McDonald’s, convinced that he could sell eight of his Multimixer to each and everyone. “Who could we get to open them for us? “What about me”?
Where it all began, Des Plaines, Illinois
Ray Kroc opened the Des Plaines restaurant in 1955. First day’s revenues-$366.12! No longer is a functioning restaurant, the Des Plaines building now a museum containing McDonald’s memorabilia and artifacts, including the Multimixer.
1955- Ray Kroc opens first restaurant in Des plaines, Illinois and the
McDonald’s corporation is created.
1957- Quality, Service, Cleanliness and value (QSC&V) becomes the
1959- The 100 McDonald’s open in Chicago.
1961- Hamburger university opens in Elk Grove, near Chicago.
1963- One million hamburger sold. Ronald McDonalds make his debut.
1964- Filet-o-Fresh sandwich is introduced.
1965- McDonald’s corporation goes public.
1967- The first restaurants outside of the USA opens in Canada and Puerto
1968- The Big Mac is introduced. The thousand restaurants open in
Des Plaines, Illinois.
1972- A new restaurant opens everyday. The quarter pounder is introduced.
1973- Egg Mc.Muffin introduced.
1974- The first Ronald McDonald’s house opens in philadephia. The
Happy meal is launched.
1983- Chicken McNuggest is introduced. New Hamburger University opens
In Oak. Brook, Illinois. Set in 80 wooded acres. Training is provided for
Every Level of McDonald’s worldwide.
1984- 50 Billion Hamburger sold. Ronald McDonald’s charities is founded
In Ray Kroc’s memory to raise funds in support of child welfare.
1989- McDonald’s is listed on the Frankfurt, Munich, Paris and Tokyo stock
1990- McDonald’s opens in Push kin Square and Gorky Street, Moscow.
1993- The first McDonald’s at sea opens Abroad the Silja Europe, the worlds
Largest ferry sailing between Stockholm and Helsinki.
1994- Restaurants open in Bahrain, Bulgaria, Egypt, Kuwait Latvia, Oman
New Caledonia, Trinidad and United Arab Emirates, bringing the total
To over 15,000 in 79 countries on 6 continents.
1996 - McDonald’s opens in India- The 95 country.
1997 - The first Drive -Thru restaurant at Noida (UP)
1997 - The first disabled friendly store at Noida (UP)
1999 - The first Mall location restaurant at Ansal Plaza - New Delhi
2000- The first highway restaurant at Mathura
2001 - The first thematic restaurant at Connaught Place
2002 - The first restaurant in a food court at 3C's, Lajpat Nagar and the first restaurant at the Delhi Metro Station at Inter State Bus Terminus
2003 - First Cold Kiosk – Faridabad
2004 - Trash segregation method installed at- East Delhi Mall, Kaushambi, UP
2004 - McDonald's Delivery Service introduced
2003 -04 McAloo Tikki, Veg Burger and Pizza McPuff are now being exported to Middle East countries.
2005 - 50th Store Opening – Faridabad
History of McDonald’s Brand
Mac and Dick McDonald established McDonald’s brand in 1940 by using their surname. In 1962,when Dick McDonald’s sent Kroc an illustration of the McDonald’s family crest, Kroc had it added to the sign as a symbol of quality, replacing Speedee, the boyish chef character that the McDonald’s brother had develop to designate the speedee service system. When others insisted that the crest was gaudy the search was on for a more stylist corporate symbol. Turner fiddled with the logo, based on the veldt in the Cadillac insignia, and Schindler used that to sketch a logo that pictured the slanted roofline of the store piercing a line drawing of the Golden Arches in the form of an M. In 1968, the roofline image was dropped and the McDonald’s name was added to derive the current logo. Since then logo has not undergone any major changes. The introductions of the Ronald McDonald’s character later develop a human element in the McDonald’s brand, and provided an instant link with children.
A brand is an offering from known source. McDonald’s carries many associations in the minds of people. Hamburger, fun, children, fast food, Golden Arches. These associations make up the brand image.
McDonald’s On Six levels of Meaning.
A clean fast food brand which tastes the same any where you eat in the world.
You don’t have to stay hungry for a long time. McDonald’s ready to eat available.
The world leader in fast food restaurants.
The brand represents culture of social gathering for families and groups.
The world leader, A giant M.
All kinds of consumers buy McDonald’s products irrespective of age, sex all over the world. One can see all types of personalities in the McDonald’s restaurant.
Hamburger University is McDonald’s worldwide management training center located in Oak Brook, Illinois. Designed exclusively to instruct personnel employed by McDonald’s Corporation or employed by McDonald’s independent franchisees in the various aspects of the business. All training programs begin with one essential ingredient: the Basics of McDonald’s operations.
Founded in 1961, Hamburger University has come a long way since McDonald’s opened their first training facility in the basement of a McDonald’s restaurants in Elk Groove Village, Illinois Since that time they have moved Hamburger University twice and watched the size of classes grow from an average size of about 10 to more than 200 per class.
Today more than 65000 managers in McDonald’s restaurants have graduated from Hamburger university, now located in a 130000 square foot, state of the art facility on the McDonald’s home Office campus in Oakbrook, Illinois, with a faculty of 30 resident professors.
Because of the McDonald’s international scope, translators and electronic equipment enable professors to teach and communicate in 22 languages at one time. McDonald’s also manages ten international training centers, including Hamburger universities in England, Japan, Germany and Australia.
McDonald’s Marketing Strategy Worldwide
The first step in developing a marketing strategy is to understand the customers, enabling reaction to their changing needs and the dynamics of the market. To this end McDonald’s conduct several stages of In-Depth customer research and audits of the McDonald’s brand. The research involving both quantitative and qualitative research methods. This research tells them a lot about how McDonald’s is perceived and about trends that are taking place in the market. They also conduct research into the local area of their restaurants, into the general market environment, and into specific areas of their business, children for example.
McDonald does also have a through understanding of their competition. They consider 3 basic areas.
1. The Total eating out market gives the broadest competitive context and includes all Restaurants, Hotels, Pubs, and any other outlet where people eat.
2. They also focus on the Quick Service Restaurant Sector. This includes all the obvious competition and also fish and sandwich shops-any outlet where food is served quickly.
3. The final sector that they focus on is defined as the Burger House Sector. This looks at only at restaurants serving hamburgers including Burger King, Wimpy, Wendy’s and all independent Burger bars.
A useful way to gaining Knowledge of all aspects of the competition is the examination of the four P’S of the Marketing Mix: Promotion, Pricing, Product, and Place.
Competitive Promotion: Before they communicate with their customers they must be aware of what the competitors are communicating so that they can create a beneficial difference between McDonald’s and them.
Competitive Pricing: Being in touch with the pricing of their competitors allows them to price their products correctly, balancing quality with value.
Competitive Product: Quick Service restaurants are constantly expanding their menus. This can be done on a short-term Promotional basis or as a long term expansion strategy.
Competitive Place: Distribution is key to any retailer or brand.
McDonald’s In India
India opened its doors to McDonald’s in October 1996. ever since, family restaurants in Mumbai, Delhi, Pune, Ahmedabad, Vadodara, Ludhiana, Faridabad, Doraha, Manesar, Gurgaon, Jaipur and now recently new outlet was launched in Allahabad (Civil lines) have processed to demonstrate, much to the delight of all the customers, what the Mc Donald’s experience is all about.
Jatia and Bakshi
McDonald’s India is a Joint Venture company managed by Indians. McDonald’s USA, has expanded its presence in India Via 2 joint venture companies- Connaught plaza restaurant and Hardcastel restaurants manages operations and expansions across North India (Delhi, Jaipur and Punjab)-led by Vikram Bakshi-and Hardcastle restaurants, which is headed by Amit Jatia, manages operations and expansion across western India (Mumbai, Pune, and Gujarat)
Focus on Philosophy
“We take the burger business more seriously than anyone else.”
When McDonald’s founder, Ray Kroc made that memorable statement, He was letting the world in on the philosophy and secret behind McDonald’s phenomenal success.
Quality, Service, Cleanliness and Value
It is an unflinching McDonald’s ideology that the customer must always get Quality products, served quickly and with a smile, in a clean and pleasant environment and all at a fair price.
“Giving you QSC&V is top priority for us. All our products are prepared in the cleanest of surroundings- incredible quality, impeccable service at affordable prices.”
McDonald’s India’s Expansion Plans:
Encouraged by the overwhelming response to the family restaurants, McDonald’s India has spread its wings. Currently, McDonald's has 76 restaurants - 26 in Delhi, 3 in Gurgaon, 4 in Noida, 3 in Faridabad, 3 in Ghaziabad & 2 in Jaipur, 2 in Ludhiana, 1 each in Chandigarh, Meerut, Lucknow, Kanpur, Mathura and Manesar on the Delhi-Jaipur Highway, the National highway No 1 in Karnal, Doraha and in Jalandhar. In addition to this, there are 18 restaurants in Mumbai, 3 in Pune, 1 in Vadodara and 1 in Ahmedabad. McDonald's also opened its doors to South India with its first restaurant in Bangalore in Oct. 2004.
They have already invested 450 crores since their arrivals in India in1996. Out of its total planned invested of Rs 850 crores till 2003.
With its India operation showing signs of success, the United State food chain McDonald’s corporation has sought its pound of flesh. The global food chain major has claimed initial franchise fee of $45000 and five percent Royalty fee of the gross sales from its operation in India.
McDonald’s India Pvt Ltd has moved an application to the government seeking permission for payment and remittance of the initial franchise fee and Royalty to McDonald’s corporation.
The Permission has been sought on two condition: McDonald’s India would pay an initial franchise fee of $45000 on each of the McDonald’s restaurants already franchised or to be franchised, in the future, in India, and a Royalty equal to five percent of the gross sales from the operations of all its Indian restaurants on a monthly basis to McDonald’s international.
The company hopes to break even in 2003. They currently serve around 3 million customers a day and hope to grow at the rate 50% to 70% a year.
Respect For local Culture
McDonald’s India has developed a special menu with vegetarian selection to suite Indian tastes and preferences.
McDonald’s does not offer any Beef or Pork items in India. Only the freshest chicken, fish and vegetable products find their way into our Indian restaurants.
In addition, they have re-formulated some of their products using spices favored by Indians. Among these are McVeggie burger, McAloo Tikki Burger, Veg Pizza, McPuff and Chicken McGrill. They have also created Eggless sandwich sauces for their vegetarian customers. Even the soft serves and McShakes are eggless, offering a larger variety to the vegetarian customers. Moreover, the mayonnaise used as a topping in burgers in India, is completely vegetarian.
Vegetarian products are prepared separately, using dedicated equipment and utensils. Employees in the vegetarian and non vegetarian sections of the restaurants can be identified by the different coloured aprons that they wear. This separation of vegetarian and non vegetarian food products is maintained throughout the various stages of procurement from the suppliers, cooking and serving.
Controversies In India
The French Fries Issue:
On May 4 2001, the outcry over the alleged use of beef flavoring in the preparation of French fries by McDonald’s led to attacks on two outlets in Mumbai and Thane. Within hours of the story breaking that McDonald’s in the US had been using oil with a beef extract for cooking its fries the burger giants’ Indian operation knew it had crises on its hands.
Amit Jatia and his staff huddled together with PR specialization from corporate voice Shan wick, Ad man from Mudra DDB, Corporate affairs and legal experts. Police security for all outlets was first red alerted. Then, posters were made from office printers with the headline “100 percent vegetarian French fries in McDonald’s India”. Below this were various bullets of information such as: “No flavors with animal products/extracts are used for preparing any vegetarian products in India.” The posters were plastered over all the Big M outlets.
The main imperative was to supply proof. On the day story broke in India, McDonald’s submitted samples of the fries to leading laboratories in pune and Mumbai, such as the council of fairs business practices, as well as Delhi’s central food and technical Research Institute. Tests were quickly done by the BMC (Bombay Municipal Corporation) and FDA and local political parties. It took a week but results were clear No Beef or Meat In the Oil or Products- which were rapidly passed to the press. The results were also posted in the various outlets and put as inserts in the daily papers in sensitive areas like Bombay’s Vile Parle, Charni Road and Thane District.
All these marketing effort helped the Big Mac to avert the crises and regain the confidence of the customers. For a few days after the news, the sales dropped drastically, but now, the outlets are back to their usual footfalls and French fries remain the most favorite and most selling product of McDonald’s in India.
Trans Fatty Acid
McDonald’s has reduced the level of Trans fatty acids in the oil used for frying by substituting it with vegetable oil. The oil previously used was a bit of a problem because fatty acids and saturated fats in a high amount cause health problems such as artery clogging and related diseases. Although yet to make profits, the global food chain serves an exciting new combo for Indian palates.
The Marketing Mix and Market Research
Having identified its key audiences a company has to ensure a marketing mix is created those appeals specifically to those people.
The Marketing Mix is a term used to describe the four main marketing tools (4Ps):
Using detailed information about its customers, McDonald's marketing department can determine:
1. What products are well received?
2. What prices consumers are willing to pay?
3. What TV programmes, newspapers and advertising consumers read or view?
4. What restaurants are visited?
Market Research is the format which enables McDonald's to identify this key information. Accurate research is essential in creating the right mix to win customer loyalty.
In all its markets McDonald's faces competition from other businesses. Additionally, economic, legal and technological changes, social factors, the retail environment and many other elements affect McDonald's success in the market.
Market research identifies these factors and anticipates how they will affect people's willingness to buy. As the economy and social attitudes change, so do buying patterns. McDonald's needs to identify whether the number of target customers is growing or shrinking and whether their buying habits will change in the future.
Market research considers everything that affects buying decisions. These buying decisions can often be affected by wider factors than just the product itself. Psychological factors are important, e.g. what image does the product give or how the consumer feels when purchasing it.
These additional psychological factors are significantly important to the customer. They can be even more important than the products' physical benefits.
Through marketing, McDonald's establishes a prominent position in the minds of customers. This is known as branding.
Meeting the Needs of key Audiences
There are a limited number of customers in the market. To build long-term business it is essential to retain people once they have become customers. Customers are not all the same. Market research identifies different types of customers. For example:
A Parent with two children might visit. Visits McDonald’s to give the children a treat.
The children want to visit McDonald’s. As it is a fun place to eat.
A Business Customer Visit McDonald’s during the work day. As service is quick, the food tastes great and can be eaten in the car, without affecting a busy schedule.
Teenagers visit McDonald’s The menu is affordable, and there is internet access in some restaurants.
These examples represent just a few of McDonald's possible customer profiles. Each has different reasons for coming to McDonald's.
Using this type of information McDonald's can tailor communication to the needs of specific groups. It is their needs that determine the type of products and services offered, prices charged, promotions created and where restaurants are located.
To meet the needs of the key market it is important to analyse the internal marketing strengths of the organisation. Strengths and weaknesses must be identified, so that a marketing strategy which is right for the business can be decided upon.
The analysis will include the:
Company's products and how appropriate they are for the future.
Quality of employees and how well trained they are to offer the best service to customers.
Systems and how well they function in providing customer satisfaction e.g. marketing databases and restaurant systems.
Financial resources available for marketing.
Once the strengths and weaknesses are determined, they are combined with the opportunities and threats in the market place. This is known as SWOT analysis (Strengths, Weaknesses, Opportunities, and Threats).
The business can then determine what it needs to do in order to increase its chances of marketing successfully.
STRENGHTHS (INTERNAL) WEAKNESSES (INTERNAL)
E.G. THE BRAND AND THE DETAILED MARKET RESEARCH TO CREATE THE RIGHT MARKETING MIX. MCDONALD’S HAS BEEN AROUND FOR A LONG TIME. (THEREFORE IMPORTANT TO KEEP INNOVATING).
E.G. INCREASING NUMBERS OF CUSTOMERS LOOKING FOR FOOD THAT IS SERVED IN A QUICK AND FRIENDLY WAY. NEW COMPETITORS. CHANGING CUSTOMER LIFESTYLES
A Marketing plan must be created to meet clear objectives. Objectives guide marketing actions and are used to measure how well a plan is working.
These can be related to market share, sales, and goals, reaching the target audience and creating awareness in the marketplace. The objectives communicate what marketers want to achieve.
Long-term objectives are broken down into shorter-term measurable targets, which McDonald's uses as milestones along the way. Results can be analyzed regularly to see whether objectives are being met. This type of feedback allows the company to change plans. It gives flexibility.
Once marketing objectives are set the next stage is to define how they will be achieved. The marketing strategy is the statement of how objectives will be delivered. It explains what marketing actions and resources will be used and how they will work together.
McDonald’s concentrated on studying the Indian culture, its value-systems and its influence in food consumption decision making. It found that although a substantial proportion of the populations were non-vegetarians, they stuck to mostly fish, mutton and chicken. Muslim took beef but though pig meat to be dirty; Hindus preferred neither beef nor pork; Christian took both beef and pork. McDonald’s decided, for the first time in their business history, to drop ham and beef burger from their menu. Two years back, they even excluded mutton burgers from their offerings.
McDonald’s developed a menu especially for Indian with vegetarian selection to suite Indian taste. It introduced products like McTikki Aloo for the Punjabi taste buds. McDonald’s has also re-engineered its operation to address the special requirements of a vegetarian menu. The cheese and cold sauces used in India is 100 % vegetarian.
McDonald’s are committed for giving customers wholesome, healthy, and delicious food. They ensure that the cooking area as well as cooking equipment for vegetarian products is visibly segregated from the non Vegetarian sections. What’s more- their crew members cooking vegetarian food items are identifiable by their green aprons.
In a survey conducted by the restaurateur, it was found that the vegetarian menu was more popular than the non-vegetarian ones, (see figure below), with French fries being the most sought after.
Popularity of veg burger and non veg in McDonald’s
Breaded fried vegetable patty consists of peas, carrots, green, beans, red capsicum, potatoes, onions, rice and seasoning. The burger also includes lettuce, egg less mayonnaise in a toasted sesame seed bun.
Fried breaded potato and peas patty that is flavored with a special spice mix, fresh tomato slices, onion, and Veg Tomato mayonnaise between toasted buns.
Paneer Salsa Wrap
A traditional Mexican soft flat bread that envelops crispy golden brown cottage cheese encrusted with a Mexican Cajun coating, and a salads mix of iceberg lettuce, carrot, red cabbage and celery, served with egg less mayonnaise, tangy Mexican salsa sauce and cheddar cheese.
A crispy patty that is seasoned with oriental flavors, topped with a creamy vegetarian Schezwan sauce and crunchy sauce iceberg lettuce and served between two fresh buns.
Mixed vegetables (carrot, beans, capsicum, onion and green peas), mozzarella cheese mixed with tomato sauce and spice blend coated with a savory dough
Veg Mc Curry Pan
(Broccoli n Mushroom)
A rich béchamel Eggless sauce mixed with exotic vegetables like broccoli, baby corn, Mushroom, red capsicum and freshly baked on rectangular spiced bread with a cheese topping.
Non Veg Menu
Chicken Maharaja Mac
Two grilled chicken patties with a smoke flavored mayonnaise, fresh onions, tomatoes, processed cheddar cheese in a toasted sesame seeded bun.
Specially seasoned, breaded and fried chicken patty, with lettuce, Veg Mayonnaise and toasted sesame seed bun.
Fried, breaded fillet of fish, with a half slice of processed cheddar cheese, special tartar sauce served between steamed buns.
Chicken Mexican Wrap
A traditional Mexican soft flat bread that envelops crispy golden brown chicken encrusted with a Mexican Cajun coating, and a salad mix of iceberg lettuce, carrot, red cabbage and celery with Eggless mayonnaise, tangy Mexican salsa sauce and cheddar cheese.
Grilled Chicken patty flavored with mint mayonnaise, and dressed with fresh onions and tomatoes in a toasted bun.
Chicken McCurry Pan
(Chicken ‘n’ tomato)
A blend of Italian tomato curry sauce tempered with thyme, basil and oregano mixed with chicken and capsicum, freshly baked on rectangular spiced bread and topped with cheese.
Veg and Non Veg Product
McDonald’s world famous French fries are produced only from the best quality potatoes. These potatoes are cut, blanched and processed lines to ensure maximum retention of nutrients. These fries are cooked at the plant and our restaurants in 100% vegetable cooking oil. The only thing they add to fries is salt.
Their new potato wedges are produced only from the best quality potatoes. These potatoes are cut, blanched and processed on state of the art processing lines to ensure maximum retention of nutrients. They are cooked at plant and our restaurant in 100% vegetable cooking oil.
At McDonald’s they continually review and improve their menu offering to make sure that not only do they meet their customer’s expectation, but they also exceed them. As a result, they have introduced a series of ongoing value options to suite their customer’s different needs.
Value meals consist of a burger; fries and a drink are available in 3 sizes.
Small value meal Medium value meal Large Value Meal
Burger Burger Burger
+ + +
Potato wedges Medium fries Large fries
+ + +
Small drink Medium drink Large drink
We can also substitute the drink in tour value Meal with a Mc Shakes, Coffee, Tea, Hit chocolate, Vanilla coke, Ice Tea or Cold coffee by paying the difference.
A Happy Meal consists of a burger + small drink + toy. You can also substitute the small drink in the happy meal with a small McShakes by paying the difference.
Family Value Meal: Value for money combination for the entire family.
Pick any 2 of these (McVeggie, Filet-O-Fish, McChicken)
Choose a Happy Meal (McAloo Tikki or Chicken McGrill+ Regular Coke+Toy)
Get 2 Small Fries
Add 2 Regular Cokes
11:00 am to 11:00 pm
McDonald’s India is one of the few countries that provide a home delivery service. In western India, this service is currently available at select localities. However, they do plan to extend this service to all restaurants.
All we have to do is dial our telephone number - 6600 0666 (Pune residents please prefix 9522) and place the order. There is no restriction on the minimum order for home delivery; however there is a fee of Rs 15 per order as delivery charges, irrespective of the size of the order. The restaurants will deliver to neighbourhoods which are up to 10 minutes away by road. The reason for this limit being that we need to ensure that they do not compromise on the quality of their food. The mapping of the delivery area is such that even during peak hours our customers receive food that is hot and fresh.
The customer's perception of value is an important determinant of the price charged. Customers draw their own mental picture of what a product is worth. A product is more than a physical item; it also has psychological connotations for the customer.
The danger of using low price as a marketing tool is that the customer may feel that quality is being compromised. It is important when deciding on price to be fully aware of the brand and its integrity. A further consequence of price reduction is that competitors match prices resulting in no extra demand. This means the profit margin has been reduced without increasing sales.
The physical evidence factor of all the McDonalds centers are the signboards, golden arches, buildings, interiors, colours combination of yellow and red, clean facilities, visible food preparation section etc. the site shown in the picture is 52 years-old and is the oldest in the worldwide chain of 20000 restaurants and the last one with red-and-white stripped tile exterior. After opening in 1953, it immediately became the standard for the fast food franchises across the country. The building and its 60-foot high neon sign with “Speedee the Chef” are eligible for listing on the national register of historic.
The promotions aspect of the marketing mix covers all types of marketing communications. The methods include advertising, sometimes known as 'above the line' activity. Advertising is conducted on TV, radio, cinema, online, poster sites and in the press (newspapers, magazines).
What distinguishes advertising from other marketing communications is that media owners are paid before the advertiser can take space in the medium. Other promotional methods include sales promotions, point of sale display, merchandising, direct mail, telemarketing, exhibitions, seminars, loyalty schemes, door drops, demonstrations, etc.
The skill in marketing communications is to develop a campaign which uses several of these methods in a way that provides the most effective results. For example, TV advertising makes people aware of a food item and press advertising provides more detail. This may be supported by in store promotions to get people to try the product and a collectable promotional device to encourage them to keep buying the item. It is imperative that the messages communicated support each other and do not confuse customers. A thorough understanding of what the brand represents is the key to a consistent message.
The purpose of most marketing communications is to move the target audience to some type of action. This may be to: buy the product, visit a restaurant, recommend the choice to a friend or increase purchase of the menu item.
Key objectives of advertising are to make people aware of an item, feel positive about it and remember it. The more McDonald's knows about the people it is serving the more it is able to communicate messages which appeal to them.
Messages should gain customers' attention and keep their interest. The next stage is to get them to want what is offered. Showing the benefits which they will obtain by taking action, is usually sufficient. The right messages must be targeted at the right audience, using the right media.
For example, to reach a single professional woman with income above a certain level, it may be better to take an advertisement in Cosmopolitan than Woman's Own. To advertise to mothers with children, it may be more effective to take advertising space in cinemas during Disney films. The right media depends on who the viewers, readers or listeners are and how closely they resemble the target audience.
The Media Magic
“You Deserve a break today, so get up and get away- To McDonald’s”
The above break commercial was one of the initial commercial themes adopted by McDonald’s United State which became the best known commercial song on television and, in fact, the most identifiable advertising themes of all time.
Needham was one of the first advertising agencies of McDonald’s which made many revolutionary advertisements for the company. Needhams advertising formula became know in McDonald’s as “Food, Folks, and Fun” and it remains the backbone of all the chain’s advertising campaigns.
McDonald’s is now, one of the world’s mightiest consumer marketers. Its brand valuation is $25 billion, making the ninth most valuable brand in the world.
Why Mudra in India?
DDB Needham and Leo Burnett are the advertising agencies of McDonald’s are worldwide. Hence, when they came to India, The subsidiary of both the companies pitched for the account and ‘Mudra’ the Indian partner of DDB Needham got the account. Since the very beginning Mudra has been the advertising agency of McDonald’s India.
The Mudra team meets up with McDonald’s marketing team on a regular basis and they have a debate and discussion on the new strategies to be adopted.
McDonald’s uses various Medias like television, hoardings and bus shelters. They are almost out of print ads. McDonald’s also sponsor many Television Programmers like kaun Banega Crorepati, Children shows etc.
Even the paper Mats on the trays at the McDonald’s are designed as per the ongoing Marketing Strategy of McDonald’s. For e.g.: During the French fries issues, all their Paper mats had description of the burgers, how the vegetarian products are made etc, to regain the confidence of the customers. The placing of the pamphlets, banners in and around the outlets is decided upon by the area sales manager and the operations manager, in co-ordination with the restaurant manager. For e.g. : currently they have the Bugs Life Theme going on wherein they give free Bugs Life toys with the happy meal. All the outlets are decorated with the pictures of the toys and even the paper mats have pictures of the toys on them. The hoardings around the outlets carry the same theme.
The 80-20 Menu Boards
Even the menu counters in the outlet are a marketing tool for the company. They have to be designed such that they catch the attention of the customer and tempt him to order the product. So McDonald’s have menu boards that are descriptive as well as visual. They call it the 80-20 menu board eighty percent visual and twenty percent descriptive.
Under the recent research conduct by McDonald’s they found that the consumers would have a clear remembrance of the 80-20 Board. This board also helps give a feel of the product before it is purchased.
The aim is to make things easier for the customer to understand what the 39, 49, 59, 79, 89 Rupee option are. And of course it is easier for McDonald’s also to give back one rupee change so that the service can be quick.
Sales Promotion, Marketing, and Merchandising
Enhance the McDonald’s image of quality, service, cleanliness and value globally in via heavy media advertising and in-store merchandise promotions funded with fees tied to a percent of sales revenues at each restaurants.
Using freebies, soft toys, key chains, etc to attract kids.
They ideally make use of the fad in the market to attract consumers. They often have tie ups with movie and television cartoon character.
Continue to use value pricing and extra value meals to build customers traffic.
Use Ronald McDonald’s to create greater brand awareness among children, and the “Mc” prefix to reinforce the connection of menu items and McDonald’s”.
Marketing Strategy Of McDonald’s In India
McDonald’s growth strategy is based on the three elements
Stage 1: Building the Brand
Stage 2: Awareness of the Products
Stage 3: Gunning for Market Share
Stage 1: Building the Brand
The Stage fright Advertisement (We Make You Smile!)
The initial marketing strategy was focused on the brand name in India. McDonald’s wanted to bring an awareness of its presence, of the arrival of McDonald’s in India. Hence, even thought it had presence only in 2 cities, Delhi and Mumbai, it still went in for nationwide Advertising.
The first Advertisement of the McDonald’s in India was of a child getting tensed in a fancy dress competition and forgetting his lines. His father then takes him to McDonald’s where he forgets all his fears and gives a brilliant performance appreciated by all in the restaurant. Every child in India could relate itself to the advertisement and it gave the parents the idea that if their child were unhappy, taking him to McDonald’s would definitely bring a smile to his face.
When Vikram Bakshi was asked how did the idea for the first advertisement come up, his reply was:
The idea came from the experiences of what we saw happening at the restaurants. I think one of the things that recent research has shown is that 69 percent of the kids prefer us. That Kind of response is overwhelming! We have seen over a period of time that some of the things we set out to do in 1997-98 are paying off now. Really the kids are very happy to be here. They find it a hassle free experience. Nobody to say, “Sit down!” or “Don’t move!” He is no longer told that if he runs around he will bang into someone and spill things over. He doesn’t encounter adults all the time like does in specialty restaurants waiters who are in their thirties and forties, with faces which say, “Keep out of my way” what he sees when he comes into McDonald’s that is a place that is brightly lit there are no dark corners that he needs to be scared of the people working here are all young. He can walk up to the counter and for whatever he wants, someone will talk to him, take him seriously, look after him ask him question.
He has a play area where he can run around. And clearly even parents come in with their children here. I have seen many instances where parents are also enjoying themselves.
There was this lady I met and she asked me, “What is this that you do to children?” so I said,” What do we do meaning?” she said, “My two year old recognizes McDonald’s. When I took her to Wimpy’s the other day she refused to enter the place, saying it was not McDonald’s.”
Stage 2: Awareness of the Product
McDonald’s then felt that it needed to highlight its product along with the experience. Hence, came the series of advertisements highlighted on the products and new launches of McDonald’s. McDonald’s wanted the customer to know that they have something for everybody, be it children or adult, vegetarian or non- vegetarian. The advertisements in these series were:
The Sleeping Couple: In the sleeping couple advertisement the husband is shown dreaming about the various products of McDonald’s. Anyone watching the advertisement felt like going to McDonald’s right away.
The Police and Thief: The thief is on a run from the police but makes a stop at McDonald’s to have the new Mc Pizza Puff and the chicken McGrill.
The Barber and the Customer: The customer is getting himself shaved when he hears about the launch of Mc Pizza Puff and Chicken McGrill, and runs to the nearest McDonald’s half shaved.
The Runaway Bridegroom: a couple is getting married when the Bridegroom runs away in the middle of the marriage to have the new Mc Pizza Puff and the Chicken McGrill and the whole family follows him.
Veg Surprise: The latest commercial, around 3 of them, are focused on the launch of the new Veg surprise for RS.17 only with the punch line “Yakein Hi Nahin Hota”
Stage 3: Gunning For Market Share
The latest advertisements of McDonald’s are a transition from the first strategy in the initial advertisements; McDonald’s was attempting to build a relationship with the customers. But now the advertisements portray that the relationship has already been established. It’s got the mind share, and its now gunning for market share.
The Add campaigns are trying to portray McDonald’s as a constant companion, which makes people feel special. The recent commercial highlighted the bond that McDonald’s shares with people. It shows a child is once again reassured.
Stage Shifting Sleeping Traffic Others None
Fright House Couple Policeman
The recent ad campaign is targeting the Indian father, as he is still looked upon as a decision maker. The new positioning: McDonald’s is a special place where caring dads take their families to give them a great time. So it’s a clear positioning as a family restaurant. “We are positioning ourselves as the welcoming and affordable family restaurant committed to values of quality, fun and excitement. It is also a restaurant which makes you feel special and makes you Smile” says Amit Jatia.
There were many advertisements made by McDonald’s emphasizing on the schemes, the prices and various other aspects. Some of them were:
The ‘Itch Karo’ Schemes: This advertisement was to promote the scheme of Mc Donald’s where in you could win prizes right from a small Cadbury to a television and bike.
Soft Serve Cone: There were many advertisements focusing on the RS.7 soft serve cone. One of them was of a traffic policeman who gets tired of directing the customers to the Mc Donald’s outlet? This advertisement if of the most liked and remembered advertisements of Mc Donald’s.
Happy Meal: There are various advertisements relayed during children programmes on the television and also children channels emphasizing on the happy meals and the toys you get with them.
Place, Process and Distribution
In setting up its operating system, McDonald' displayed no particular genius just tenacity to survive today, all fast food chains build central organization to develop standards of operation and train the licensees to meet them. They must be responsible for picking supplier and setting specifications on all food products. And finally, they must monitor the system to determine that the franchisees are following standards and that the suppliers are meeting product specification. As logical and basic as that the sounds, it was a revolutionary concept in food franchising when McDonalds took that approach in the 1950s.
In fact, McDonald’s greatest impact on American business is in the areas that consumers do not see. In their search for improvement, McDonald’s operations specialist moved back down the food and equipment supply chain. They change the way farmers grow potatoes and the way companies process them. They altered the way ranchers raised beef and the way the meet industry makes the final product. They invented the most efficient cooking equipment and pioneered new methods of food packaging and distribution.
The McDonalds in India followed the same tradition. Long before the first Maharaja Mac was served up, McDonalds was here in India, setting up the elaborate cold chain that supplies all the restaurants in the country. It took six years from 1991 when the work started, until the system was in place. “We spent Rs.50 Crore- even before the first restaurants were set up in 1996,” Amit Jatia confesses.
The Supply Chain
Did you know that every year, Rs. 50000 Crore worth of food produce is wasted in India? This is mainly because of the lack of proper infrastructure for storage and transportation under controlled conditions. The supply chain age and transportation under controlled conditions. McDonald’s is committed to providing quality products while supporting other Indian businesses. And also, they spent a few years setting up unique supply chain, even before they opened their first restaurant in India.
A supply chain is a network of facilities including – material flow from supplier and their “upstream” suppliers at all levels, transformation of materials into semi-finished and finished products, and distribution of products to customers and their “downstream” customers at all levels.
When there is a balance in the finished product ordering, the supply chain operates at its best. Any major fluctuation in the product ordering pattern causes excess/ fluctuating inventories, shortages / stock outs, longer lead times, higher transportation and manufacturing costs, and mistrust between supply chain partners. This is called the bullwhip effect.
The supply chain objectives are assured supply, low cost and safe and consistent quality. During 1990, when they first set out to their infrastructure, they found that the cold chain system was non existent. There were only 200 refrigerated trucks across the country and they were few cold storages. The cold storages were prilimarily used by the ice cream sector and they were of very poor quality. The cold chain system set up involved the transfer of technology from McDonald’s in the US and its international partners. The standards also strictly adhere to Indian government regulations on food, health and hygiene.
Currently, McDonald’s distribution centers (DCs) are in touch with all the suppliers through electronics interconnectivity (e-mail). The supply chain converts the 15- day’s lead-time from the suppliers to a one day ordering lead-time for the restaurant.
The products are picked up in temperature-controlled vehicles by a third-party logistics company a delivered at the DSc. The DSc then supply to restaurants on a need-basis. All products go through the quality control checks before reaching the customer.
According to Hardcastle restaurants national supply chain product manager Mr. Saravanan: “Traditionally, any supply chain functions through suppliers, stockiest, distributors, primary wholesalers, secondary wholesalers and retailers. However, at McDonald’s India, the supply chain involves only producers, distributors and retailers.”
The cold chain is necessary to maintain the integrity of food products and retain their freshness and nutritional value. The cold chain is an integral part of the supply chain.
Setting up the cold chain has involved the transfer of state of the art food processing technology by McDonald’s and its international suppliers to pioneering Indian entrepreneurs, who have now become an integral part of the cold chain.
The term cold chain describes the network for the procurement, warehousing transportation and retailing of food products to be used controlled temperature. McDonald’s restaurants store products to be used on a daily basis, within a temperature range of 18C to 4C. About 52% of our products need to be stored under these conditions before they are used
The McDonald’s Supply Chain
After they receive the stock from the suppliers, they implement on planning for material requirement as per the demand from the McDonald’s restaurants sand send orders to suppliers. A similar copy of the order is also sent for advanced intimation to be made to the third party logistics company. Air freight Ltd. The DC will consider stock in hand, present consumption, shelf life of the products, truck capacity and lead time. Meanwhile, suppliers produce and keep products ready as per the demand from the DC.
McDonald’s post harvest facilities include a cold chain consisting of a vacuumed pre- cooling room to remove field heat, a large cold room and a refrigerator van for transportation where the temperature and there relative humidity of this crop is maintained between 1degree Celsius and 4degree Celsius and 95 percent, respectively. Vegetables are stocked in the pre-cooling room within half an hour of harvesting. The pre-cooling room ensures rapid cooling and cold room to two degrees Celsius within 90 minutes. The pack house, pre-cooling cold room are located at the farms itself, ensuring no delay between harvesting, pre-cooling, packaging and cold storage. Thus, zero percent spoilage and freshness are being maintained.
McDonald’s India sources food products through 45 different suppliers and 10 key local companies. The key local suppliers include: Vista Processed Food (VPD), Trikaya Agriculture, Dynamix Dairy Industries, Radhakrishna food land, Cremica, Shah Bettor and Sons, Global Green Company and Bector Foods.
Another striking factor of McDonald’s is that it never has any written contracts with the suppliers. The relationship is only based on the trust. The McDonald’s team help the suppliers develop, and hence they assured that McDonald’s will stick to them through thick and thin.
The Wisdom of local Sourcing
McDonald's has always been committed to sourcing its requirements from local suppliers and farmers. This assurance is rooted in the philosophy of our company's founder, Ray Kroc. He firmly believed in mutual benefits arising from a partnership between McDonald's and the local businesses, thus ensuring that McDonald's commitment to growth was mirrored by that of its partners.
In keeping with this belief, we have carefully identified local Indian businesses that take pride in satisfying customers by presenting them with the highest quality products. Adherence to Indian Government regulations on food, health and hygiene were a top priority.
McDonald's India today purchases more than 96% of its products and supplies from Indian suppliers. Even our restaurants are constructed using local architects, contractors, labour and maximum local content in materials.
The relationship between McDonald’s and its Indian suppliers is mutually beneficial. As McDonald’s expands in India, the supplier gets the opportunity to expand his business, have access to the latest in food technology, and get exposure to advanced agricultural practices and the ability to grow or to export.
Vital Links in our Cold Chain
All suppliers adhere to Indian government regulations on food, health and hygiene while continuously maintaining McDonald's recognised standards. As the ingredients move from farms to processing plants to the restaurant, McDonald's Quality Inspection Programme (QIP) carries out quality checks at over 20 different points in the Cold Chain system. Setting up of the Cold Chain has also enabled us to cut down on operational wastage
Hazard Analysis Critical Control Point (HACCP) is a systematic approach to food safety that emphasizes prevention of illness or presence of microbiological data within our supplier’s facilities and our restaurants rather than its detection through inspection. Based on HACCP guidelines, control points and critical control points for all McDonald's major food processing plants and restaurants in India have been identified. The HACCP verification is done at least twice in a year and certified.
Mechanism of Each Supplier
Amrit Food - Supplier of long life UHT Milk and Milk Products for Frozen Desserts
Amrit Food, an ISO 9000 company, which manufactures widely popular brands - Gagan Milk and Nandan Ghee at its factory at Ghaziabad, Uttar Pradesh has:
State-of-the-art fully automatic machinery requiring no human contact with product, for total hygiene.
Installed capacity of 6000 litres / hour for producing homogenized UHT (Ultra High Temperature) processed milk and milk products.
Strict quality control supported by a fully equipped quality control laboratory.
Radhakrishna Foodland - Distribution Centre
An integral part of the Radhakrishna Group, Foodland specializes in handling large volumes, providing the entire range of services including procurement, quality inspection, storage, inventory management, deliveries, data collection, recording and reporting. Salient strengths are:
A one-stop shop for all distribution management services.
Dry and cold storage facility to store and transport perishable products at temperatures up to - 22 Degrees Celsius.
Effective process control for minimum distribution cost.
Trikaya Agriculture- Supplier of Iceberg lettuce
Which is an intrinsic part of the cold chain and supplies fresh lettuce to McDonald’s at the rate of 300 metric tonne per annum. The farm has the total capacity to produce 1000 metric tonne, per annum.
According to Trikaya Agriculture Pvt Ltd farm manager Mr. M E Gouda; “Initially, lettuce could only be grown during the winters. With McDonald partnership, Trikaya is now able to grow the crop all round the year.” Their Farm infrastructure features:
A specialized nursery with a term of agricultural experts.
Drip and sprinkler irrigation in raised farm beds with fertilizers mixing
Pre-cooling room and a large cold room for post harvest handling.
Refrigerated truck for transportation.
India, now supplies lettuce to five star hotels, flight kitchens, clubs and offshore catering companies. And it will soon be exporting to international markets, especially to McDonald Asia Pacific and Middle East operations.
Dynamix Diary- Supplier of Cheese
In some cases, the Indian suppliers had the technology but no market for the products they produced. For example, Dynamix Diary through its relationship with McDonald’s was introduced to a large consumer to supply milk case in and other milk derivatives. The two companies entered into a business relationship resulting in an initial export order of approximately US$ 12 million per year with the potential to increase.
After the food products are processes at their respective companies, they are received and stocked at the McDonald’s distribution partner- the Rs.80 crore Radhakrishna Food land Ltd to ensure that all McDonald’s restaurants are supplied without interruption.
Dynamix has brought immense benefits to farmers in Baramati, Maharashtra by setting up a network of milk collection centers equipped with bulk coolers. Easy accessibility has enabled farmers augment their income by finding a new market for surplus milk.
The Factory has:
Fully automatic international standard processing facility.
Capability to convert milk into cheese, butter/ghee, skimmed milk powder, lactose, casein & whey protein and humanized baby food.
Stringent quality control measures and continuous Research & Development.
The company however failed with potato farming, despite spending $10 million in Uttar Pradesh. But it claims that by 2004, McDonalds will source potato from India for French fries. “With all 80 restaurants in place, we expect our consumption of French fries to be 10000 metric tones and then it makes economics sense to grow processed grade potatoes in India,” says Jatia. However. The newly introduced potato wedges are being made from potatoes.
Long Wrong Bad Other No
Queues Order Music Problems Problems
Problem faced in the visit to McDonald’s
Some Reaction of the customers to continuous surveys are given below:
Vista Processed Foods Pvt. Ltd. - Supplier of Chicken and Vegetable
Range of products
Based in Taloja, Maharashtra, with technical and financial support extended by OSI industries INC, US, and McDonald’s corporation Inc, US- operates infrastructure and support services. It supplies vegetable patties, chicken patties, pies and Pizza Puff at the rate of 30 metric tonne per month to McDonald’s India.
McDonald’s vegetable and chicken patties are processed through the latest food processing technological plant at Vista has installed hi-tech equipment for the purpose of deboning, blending, coating, passing the patties through the stern breading machine, frying and freezing.
Vista’s pie line has the sophisticated, computerized Rondosheeter (the machine where processing takes place) in operation, which includes hi-tech refrigeration plants for the manufacturing of frozen foods at temperature as low as minus 35 degrees.
Dynamix Dairy Industries, Pune
Jain Foods, Jalgaon
Trikaya Agriculture, Pune Mina Agritech, New Delhi, Ooty Farms and Orchids, Ooty Vista foods, Taloja Kirten Foods, Taloja
Vista Foods, Taloja
Vegetable Patty, Veg Nuggests, Pineapple Pie, Apple Pie
Kirten Foods, Taloja
River Dale, Talegaon
Cremica Industries, Phillaur
Egg less Mayonnaise
Quaker Cremica Pvt Ltd, Phillaur, Punjab
Fish Fillet Patties
Amalgam Foods Ltd, Kochi
Vegetable for Patties
Finns Frozen Foods, Nasik Jain Foods, Jalgaon
Mutton and Mutton Patties
We value you, your growth and your contributions.
McDonald’s People Promise
Opportunity: work at McDonald’s means opportunity. Many of their corporate employees started as members of a restaurant crew. They include President and CEO Charlie Bell; Claire Babrowski, Corporate senior executive Vice president and chief restaurants operation officers, and Mats Lederhausen, Managing Director, McDonald’s Ventures. Vice Chairman Jim Skinner started as a restaurant manager trainee. Their commitment to opportunity includes support for their employee’s education.
McDonald’s corporation, USA, had undertaken effort to promote itself “As an equal opportunity employer, ensuring that employees and job applicants are selected, trained, promoted and treated on the basis of their relevant skills, talents and performance and without reference to race, colour, nationality, ethnic origin, gender, sexual orientation, marital status, age, or disability”.
They have put in place a Diversity policy, which seeks to:
Promote and sustain a working environment
Regards all of its employees as member of a team where everyone’s opinion is valued and everyone is regarded as equal in status and must always be treated with respect
The person responsible for this policy is the Human resources and Training Director, but it is the responsibility of all employees, particularly managers and area management, to challenge questionable behavior and practices
The Human Resources department monitors the effectiveness of the policy at regular intervals and takes corrective action as necessary to ensure that it is being complied with
Employees who feel that they have been unfairly treated in any way regarding this policy are encouraged to use the remedies outlined in the company’s handbooks.
McDonalds India was challenge to replicate the same policy in India. It sought to provide quality employment and long-term careers to the Indian people. The average McDonalds restaurants employees more than 100 people in 25 different positions- from cashier to restaurant manager. There are close to 2000 employees currently in Mumbai and Delhi.
Manpower Planning: The scheduling manager is in charge of the manpower planning in the outlet. They have full timers who work for 9 hours and part timers who work for 3-4 hours. If they expect more customers (during holidays etc) then more part timers are recruited.
Recruitment: Done by reference of the employees in the outlet or other outlets.
Organization and salary structure:
Training and Development: McDonald’s world class training inputs have been implanted in India. Training is a continues process at the McDonalds. It is the responsibility of the training squad to train the other employees. The training squad maintains logs of the employees, which clearly states that which employees are to be trained, and on what station.
The 3/30 Plan: According to this plan, the training squad has to train 3 people on three different stations in a month. One employee is trained on one station, say the vegetarian station for 10 days, and then for the non-vegetarian station for the next 10 days and so on. This is done till the employees become proficient on the station and its capable of handling the station on his own.
Every employee joins in as a trainee crew where he is given the Green Badge. After a period of 3 months, the employees are checked for the health safety, cleanliness and sanitation after which he is given the yellow Badge. After receiving the Yellow Badge, there are 5 station that the employees has to be proficient in:
1. Backroom Cleaning: This includes mopping the floors. Clearing the tables, maintenance of the machines etc.
2. Fried Products: This involves frying of the French Fries, Pizza Puff etc. to the right degree.
3. Buns, Dress and Grill (BDG): This includes grilling the buns and dressing them properly. There is a time limit given to perform every function and the employees have to perform it efficiently, with minimum wastages.
4. Counter: The last station is of the counter handling. The employee should be able to converse with the customers courteously and take proper orders.
5. Personality: The last criteria are the overall personality of the employee. McDonald’s being in the service industry, having smart and courteous employees is of utmost importance to them.
The productivity records have to show 90+ points. The productivity is checked in various ways. For example- McDonalds has a policy of serving each customer within one minute on an average. The productivity at the counter is checked by the time taken by an employee to complete the order. For example, if Rajesh (a serving-counter in charge) has taken shift, then the shift running manager will speak to him at the end of the shift, and ask him the reason and accordingly ask him to try and improve. If this trend continues, Rajesh is trained further.
After the productivity record shows 90+ points, the employees have to appear for a documented written test where they must get more than 90 marks.
Having got a 90+ average of the two, the employees is promoted to the next hierarchy level.
McDonalds have different shifts for managers, full time employees and part time employees. Their main shifts consist of:
Open shifts: 7:00 am to 4.00 pm
Mid shifts: 12:00 am to 9.00 pm
Close shifts: 3.00am to 12.00 pm
McDonald’s have a special night shift where the managers have to account for the days transactions, inventory, wastages etc. the night shifts for the managers is from 11.00pm to 8.00 am.
They also have night shifts for the employees where the scrubbing of the entire outlet takes place. Also, each and every machine is opened and cleaned. The night shift for the employees is from 7:00 pm to 4:00 am.
Both the night shifts i.e. for the managers and the employees are done on rotation basis. Female employees are generally not allowed to do the night shifts.
Holiday and Breaks:
The crew members are allowed to take 4 holidays in a month and the managers can take 6 holidays in a month.
If the employee is working for 7 hour shift, he gets a break for 1 hour after 4 hours and if an employee is working for less than 7 hours, then he gets a break for ½ hour.
McDonald’s call it as the RAP SESSIONS. Once in a month, the employees can vent their problems to the Area Sales Manager is not included in the Rap Sessions.
High Employee Turnover
McDonald’s in India faces a huge problem of high employee turnover recruiting and training employees is an ongoing process, which never stops at any of the outlets. On an interview with one of the ex-employees, it was found that the main reasons for the high employee turnover are:
The profile of the employees mainly consists of college students who want to use their spare time and get some fast money. As a result the turnover is extremely high during the exam seasons, and similarly, the availability is high during the holiday’s seasons.
The employees feel that there is very slow growth in the company. It takes one 3 months just to get the yellow badge, and even after that, the promotions come very slow.
The salary packages are not very attractive.
Despite protest from McDonald’s corporation, USA, Webster’s have included the word ‘McJob’ in its dictionary. It stands for those jobs that are dreary, repetitive and with no scope for value addition or growth. Its origin lay in the slang description of jobs available at McDonalds. The general impression of the workers was that after a few years in McDonalds, it left them incapable of being absorbed in other jobs.
Productivity and Quality
There is a concept known as the HACCP’S standing for ‘Hazard Analysis and Critical Control Points’ is being followed in McDonalds. There are some key areas identified by McDonalds, a list of which is circulated amongst its supplier that have to be strictly adhered to by them. For example, the patties for the burgers have to be stored at a certain level of temperature. Surprise checks are made by the McDonald employees to check if all the quality standards are being followed. McDonald’s success is the result of its dedication to operating regimen. More than any other early competitors in fast food, McDonalds was deadly serious as it went about the task of defining its operations, setting basic standards of achievement, and monitoring suppliers and operators to determine whether standards are being met.
Personal commitment to Quality, Service and Cleanliness is legend. QSC long ago became the most popular acronym among fast food operators, but the phrase originated as the use of QSC to distinguish McDonalds from all other competitors in an industry that was otherwise rife with duplication. QSC has now changed to QSC & V, V stand foe Value for money.
McDonald’s invests significant resources in training at every level. Every day, around the world, restaurants crew members receive the job training and coaching in skills and procedures essential to their work.
Classroom courses developed and led by training experts prepare outstanding restaurant employees for advancement.
Hamburger University provides operations and business management training for restaurant managers, franchisees, mid level managers, and corporate executives. Courses are offered at seven campuses around the world, with materials available in 28 languages and simultaneously translations in up to six languages.
A new computer-based training system is bringing rigorous. Interactive leaning experiences to crew members and managers right in the restaurants. This award-winning E-Learning strategy will eventually be in all McDonald’s markets worldwide and include their entire career-long curriculum.
McDonald’s mascot, Ronald McDonald’s is a magical and funny clown and every Childs best friend. But Ronald is not only fun and games-he is also involved in some series stuff. One of his responsibilities is to support McDonald’s charity initiatives- something that he carries out very sincerely- and deliver the brands message of commitment to the community.
So don’t like Australia and UK, where McDonald’s has its presence since decades, many of the marketing strategies have been focused on Ronald McDonald’s and his friends like Hamburger, Grimace etc. Ronald McDonald’s is a prominent figure in the children’s life of those countries.
The very first Ronald McDonald was the famed weatherman Willard Scott. In the very first Ronald McDonald commercial, with Willard Scott as Ronald (c.1960) he actually says something to the effort of “I know you’re not supposed to talk to strangers, kids, but its okay to talk to me, because I’m Ronald the Hamburger – loving clown!” originally he wore shoes made of buns, a cup on his nose, and a hat with a Hamburger meal on it. Soon this was dropped for the more familiars clown outfit.
But in India, none of the advertisement currently focuses on Ronald McDonald. The main reason for this, the company is still trying to build the brand loyalty and awareness in India. It is still in its developing stage and cannot focus on many aspects at the same time.
McDonald’s believes in giving back you the community in which they do business. Besides commercial marketing McDonald’s also undertakes many social drives to build brand loyalty among the customers. Ronald McDonald house charities (RMHC) work to improve the health and well being of children by awarding grants to organizations and supporting 206 Ronald McDonald houses worldwide.
Ronald McDonald House Charities
Mission and programs
A Strong Mind. A Strong body and a safe, supportive place to grow. These are things that every child needs- and deserves- to have. Helping to provide these things is what we do.
By creating, finding and supporting programs that directly improve the health and well being of children, Ronald McDonald house charities is working to better the lives of children and their families around the world.
But there’s more we need to accomplish. So click on a specific programs link to find out what we do, how we do it, and more importantly- how you can help.
Ronald McDonald House
A home-away from home
The idea behind Ronald McDonald house is simply provide a home away from- home for families of seriously ill children who are receiving treatment at nearby hospitals. The Ronald McDonald house provides a comfortable, supportive alternative for these families. It serves as a temporary residence near the medical facility where family members can sleep, eat, relax and find support from other families in similar situations. In return, families are asked to make a donation ranging from $5 to $20 per day; if that isn’t possible, their stay is free.
Ronald McDonald Care Mobiles are on the Road
Since 2000, Ronald McDonald care mobiles have provided cost-effective medical, dental and educational services to under-served children in their own communities. RMHC is planning to grant 50 Ronald McDonald care mobiles programs by the end of 2005.
Ronald McDonald Family Rooms
An extensive of the Ronald McDonald house program, Ronald McDonald family rooms provides a haven within the hospital for families of children undergoing treatment.
RMHC is proud to offer scholarships to those students from disadvantaged communities who face limited access to educational and career opportunities.
McDonald’s Corporate Responsibility
We have an obligation to give back to the community that gives so much to us.
McDonald’s and their independent owner/operators contribute to our local communities in countless ways. Together They support:
Education and youth development programs.
Local and regional sports programs and events.
Neighborhood beautification initiatives.
Health care efforts, cultural events, and other programs for youth and families.
Fund raisers for Ronald McDonald’s House charities and other children’s programs.
Development: McDonald’s restaurants around the world are locally owned and operated. They provide opportunities for local suppliers, job for local residents, and revenues for local projects and services. McDonald’s has helped restore historic sites and contributes to neighborhood revitalization.
Helped in Need: When people are in trouble, McDonald’s is there. Through the international Red Cross Network; they provide food and other support to disaster victims and meals for volunteers on the scene.
After earthquakes in India, China, Turkey and Greece.
When hurricanes hits the US
During an ice storm in Canada.
When flooding hit Uruguay and Venezuela.
More help in this disaster came from McDonalds Germany. Together with its franchisees, suppliers, and customers, the company contributed 500000 Euros (more than $585000 US$) to the flood relief efforts of the German Red Cross.
McDonald’s has a long record of industry leadership in environmental protection. Working with prominent independent experts, they have initiated an ongoing series of measures to conserve natural recourses and reduce waste.
McDonald’s purchases only a small fraction of the world’s goods and services. However, they know they can work with their suppliers to help improve their practices and set an example for other companies. They believe they have an obligation to use their influence to make the world a better, safer place.
Industry leader in animal welfare. Their animal welfare program is global. It is based on guiding principles that apply to all the countries where they do business and includes onsite audits of our suppliers’ facilities. To guide continues improvement, they have an independent animal welfare advisory council of distinguished animal science experts.
To help preserve the effectiveness of life saving antibiotics, they have issued a Global Policy on Antibiotic Use in food Animals. This initiative calls for McDonald’s suppliers worldwide to phase out use for animal growth promotion of antibiotics used in human medicines and provides sustainability guidelines to reduce other uses.
Quality and Safety:
With million of customers a day, they recognized a profound responsibility to ensure the highest standards of quality and safety in our products and our restaurant environments. Their food safety system is farm to counter, with quality and safety standards and regular checks in critical areas along the way. The toys and other promotional items their restaurants distribute are extensively reviewed and tested before, during, and after production by independent experts using State-of –the Art technologies. Equipment for our play place areas is likewise subject to stringent safety standards.
Supplier Social Accountability
McDonald’s holds their suppliers to the same high standards of conduct they observe. Our Code of Conduct for Suppliers establishes their expectation for workplace conditions in their facilities. Continues improvement is encouraged by onsite assessments, with enhancement plans required to correct deficiencies, and by supplier training. Compliance with the Code is a condition of doing business with them.
McDonald's knows that there's a little performer in every child. So in order to help you beat the stress and tension that everyday homework and tiresome exams bring, we introduced McDonald's Spotlight.
McDonald's Spotlight is an annual inter-school performing arts competition. This competition is open to all secondary schools [standards 5th to 10th] in Mumbai, Navi Mumbai, Thane and Pune and entry is absolutely FREE!
Events and their categories in McDonald's Spotlight are:
Showtime: (One-Act Plays in English, Hindi & Marathi)
Step-By-Step: (Group Dancing – Indian Classical, Indian Folk & Fusion Moves)
Soundtracks: (Solo Singing – in English, Hindi & Marathi)
Scriptless: (Impromptu Speaking in English, Hindi & Marathi)
The popularity of McDonald's Spotlight is evident from the number of schools participating in it. From 28 schools in 1998, the figures have soared to a whopping 120 schools in 2003! Participants go back with a Certificate of Participation, while winners receive a Certificate of Merit as well as Gift Vouchers from McDonald’s.
There is a first and second prize for each category. Also schools can vie for the Best School and Runner-up School rotating trophies. We introduced the rotating trophies for schools in Mumbai and Pune in 2001. In 2003, after popular demand, we held separate Grand Finals with independent rotating trophies for Pune schools.
World Children's Week
World Children’s Day [WCD] is one given day on which McDonald’s restaurants all over the world come together to raise funds for a charity of their choice. The day is November 20 and it coincides with the United Nations ‘Universal Children’s Day’.
2002 was the first year in which McDonald’s celebrated World Children’s Day. It met with tremendous success the world over. More than 100 countries helped raise more than $12 million for Ronald McDonald House Charities and other children’s causes all over the world.
Did You Know?
WCD is the first-ever global fund raising event by any brand in the world?
On this day, all our restaurants, suppliers and customers come together to raise funds for children across the world?
World Children’s Week is an extension of WCD. Since India has already been celebrating Children’s Day on November 14, we thought it appropriate to link the 2 important days together and make the most of it. Hence, instead of World Children’s Day, we celebrate World Children’s Week from November 14 – 20 in McDonald’s restaurants in India.
As part of our first WCW celebration, McDonald’s joined hands with The Nalanda Foundation to support education for the girl-child for a period of 5 years.
McDonald’s Blue Dot Initiative for the Education of the Girl-Child
In November 2002, on occasion of the first World Children’s Week, McDonald’s in Western India joined hands with The Nalanda Foundation to support education of the girl-child. This association is for a period of 3 years and extends up to November 2005.
Why the Girl-Child?
Research shows that the even today, in India, the girl-child is always less favoured than a boy. Due to this, she is deprived of many benefits, which should rightfully be hers.
The Nalanda Foundation is working towards improving the situation of the Girl-Child by providing her with all the benefits and privileges that she deserves.
Through the money collected in 2002 with our fund-raising activities, we were able to help build an English Learning Resource Centre for the students of the Anjuman-I-Islam Girls’ High School in Bandra. The rest of the money has been used to start other educational programmes that will help in their development.
In 2003, the fund-raising activity had the McDonald’s French fries as the focus. From November 14 –20, for every medium and large fries sold – whether a la carte or as part of Value Meals – McDonald’s donated Re.1/- for the cause. Additionally, Ronald McDonald House Charities also contributed 4 lakh rupees for the McDonald’s – Blue Dot initiative.
There is a movement in the world to eradicate polio from the face of the earth. This cause has received support from various bodies like the Rotary Foundation, and local health organizations.
In India, this mission is termed Pulse Polio and the aim is to make India polio-free by the year 2005. This requires that children up to the age of five years be given the polio vaccine. This drive is carried on a larger scale all over the country and takes place three days in a year so as to enable everyone to avail of the services.
McDonald's has participated in the Pulse Polio Awareness rally by sponsoring food and drinks for the volunteers. In January 2001, McDonald’s went a step ahead. It joined hands with the Rotary Club of Pune (West) to set up an inoculation booth outside a McDonald’s restaurant in Pune. The same was met with success and prompted us to continue the practice ever since. The positive response to this initiative encouraged us to extend it to McDonald’s restaurants in Mumbai centers for inoculation as well for 2002 and thereafter.
McDonald’s and Nehru Science Centre Inter-School Science Quiz Contest
The Nehru Science Centre, Mumbai (NSCM) has been conducting the Nehru Science Centre Inter-School Quiz Contest, an inter-school science quiz contest since 1990. McDonald's joined hands with NSCM in 2000 to sponsor this quiz contest.
The quiz contest begins with the qualifying rounds in August and culminates with the finals on February 28 of the following year, which coincides with National Science Day.
2000 to 2003 saw more than 180 schools from Mumbai, Navi Mumbai and Thane participate in the McDonald’s and Nehru Science Centre Inter-School Science Quiz Contest.
Keeping Our City Clean
Cleanliness forms a crucial element in our philosophy of QSC&V [Quality, Service, Cleanliness and Value]. Being a brand that places so much emphasis on hygiene, it was natural to get involved in activities to help maintain clean and healthy surroundings in cities where we operate. Here are a few instances.
The BMC Zero-Garbage Day: We gave the Brihanmumbai Municipal Corporation (the BMC) a helping hand in achieving its objective of a Zero-Garbage Day on the August 15, 1997 to commemorate 50 years of India’s Independence.
Students from 4 schools around Bandra, Mumbai took to the streets, for 2-3 hours, with brooms and dustpans to spruce up the stretch of road from the Linking Road junction to the Khar Telephone Exchange.
The entire exercise was a success and was lauded by the BMC at a small gathering held at the Linking Road restaurant after the clean up. McDonald’s also provided those who participated with Meal Combos and Happy Meals as a token of appreciation.
The BMC-McDonald’s Health Seminar:
Held on the July 17, 1998, the focus was on safe food handling and waste disposal. Representatives from the BMC, McDonald’s and the FHRAI [Food, Hotel and Restaurant Association of India] shared their learnings, thoughts and viewpoints on the subject. The seminar was an eye-opener for the health officials and everyone present and once again, highlighted McDonald’s commitment to public health and the community.
The Mayor’s Marathon For Cleanliness:
McDonald’s in Thane sponsored t-shirts, caps and drinks for a marathon organised by the mayor in support of cleanliness in all the electoral wards of the city on April 25, 1999.
Gandhi Jayanti Cleanliness Drive:
McDonald’s Thane came together with the YMCA [Thane] on October 2, 2001 to celebrate Gandhi Jayanti by cleaning the Thane railway station. McDonald’s crew could be seen working shoulder to shoulder with the YMCA volunteers and sweeping the station clean. McDonald’s sponsored the refreshments, lunch as well as caps for the volunteers.
The Public Challenge
It’s the normal morning hours at the crossroad’s McDonald’s. But the outlet hasn’t received the weekly delivery of its raw materials. An old lady approached the counters and asks:
Old lady: Fish-O –Filet and a coke please.
Employee: Madam, you are in luck, we don’t have Fish-O-Filet, but you can have any other burger and a coke on the house.
Never say ‘NO’ to a customer is the policy of Mc Donald’s clearly visible from the above true incident. In the words of Mr. Amit Jatia, “We are extremely customer focused. For us customer is the God and there is no short cut to that.”
At McDonald’s each and every outlet has a customer care Representative (CRR) whose only job is to look after the customer complaints. Any customer problems, be it as small as dropping the coke on the way or as the French fries issues has to be handled by the CRR. Besides the CRR, you also have many host and hostesses who keep taking rounds, making sure that customers are comfortable.
Changes in Customer Perception
From serving just burgers
To ice-cream, fries, shakes and pizza
Bland western food
Less spicy, non-oily, crisp, fresh and different
Expensive western restaurants
Affordable family restaurant, money well spent
Loud for youngsters
Mature,calm,cultured,straightforward for families
Childlike, and young at heart
Steps taken to improve customer service:
Guard placed at the entrance: From this year onwards, a guard has been placed at all the entrances to greet and welcome the customers.
Host and hostesses: More employees are now placed in the front area than the back area to interact with the customers.
Mystery Diner: Delegates of the company visit the outlets as normal customers and check if the services are being given properly and then report to the head office. These surprise checks keep the employees on their toes.
2 Meter Rule: Any employees coming within 2 meters distance of any customer has to greet and smile at the customer.
Served in 60 Seconds: This is an upcoming scheme of McDonald’s wherein every customer will be served within 60 seconds and if they are unable to do so, the customer will get free French fries. This scheme is going to be launched in McDonald’s Asia-wide.
Standarzition: At McDonalds, the way of doing each and every thing has been written down, and so has been the way to take down the order from the customer. They follow a 6 step rule. Ass soon as the customer comes to the counter they have to:
1. Welcome the customer.
2. Take the order.
3. Repeat the order.
4. Take money.
5. Give the ordered products.
6. Greet the customer.
Every brightly lit street has a dark alley. We’ve seen the smiles and glory of McDonalds, but there are also some people who absolutely disagree with the existing image of the conglomerate.
The following letter was posted on the internet by a woman who seems to have lost complete faith in the products or services provided at these family restaurants.
I Hate McDonald’s
The substandard food
Ever since I started eating low-fat/high carbo foods 3 years ago, I lost interest in McDonald’s because the majority of their foods are loaded with fat and provide very little value. It is the lowest standard of food one can get in America, and how some of it-especially the dead cow flesh-gets USDA approval is beyond my comprehension. Hell, most of their food isn’t even suitable for animal consumption, and I should know… my dog won’t even eat it!
One aside here: I call it cow flesh, but if those burgers really are made from cows, then they must be some badly diseased cows. Have you ever broken open of their burgers and taken a Good look inside? It’s green in there. No kidding... it’s a sickly greenish- grey color inside their burgers. No wonder my dog won’t eat them.
You don’t have to take my words for it… just check out the nutritional info that McDonalds provides. However, don’t assume that they’re being entirely honest about their claims… the page lists a small order of fries as having 10 grams of fat, yet the nutritional info listed at my local McDonalds shows a small order of fries as having 14 grams of fat ( and unfortunately more accurate McDonalds nutritional info has mysteriously disappeared).
And for all you folks who order the grilled chicken sandwich because it’s supposedly a “healthier” alternative to burgers… well, here’s some info to choke on:
Grilled chicken sandwich calories: 440, Calories form fat: 180, Total fat: 20 grams, saturated fat: 3 grams, Cholesterol: 60mg, Sodium: 1040mg, Carbohydrate: 38, protein: 27 grams
Number like that ought to leave a very bad taste in your mouth…
McDonald’s A Road Ahead
McDonald’s, that has become synonymous with urban living, is all set to break boundaries and go national. It is doing this through the arteries of the country the national highways and expressways. Puckish travelers zipping from city to city will no longer have to be content with Dhabas offering Dal-Roti. They can look forward to biting into burgers, French fries, McPuffs at all.
McDonald’s (India) is planning to start drive through restaurants on express highways across India. The first is being planned on the Mumbai- Pune highway this week and plans are a foot to have three more on the national highway no.1 in north India. For hungry drivers on the run, the company promises to drivers within 60 seconds after an order is placed. Theoretically, one can be back on the highway in just two minutes.
Of course, the practical reality is that placing the order it could take a little bit more than the said two minutes. McDonald’s is projecting an income of 15 to 20 percent from drive- through business on expressways in the immediately future. This is expected to grow to 40 per cent in the next five years. The company had a tied up with public sector oil company Bharat Petroleum to set up restaurants at petrol pumps across northern India.
Commenting on the clientele for the restaurant on the Mumbai-Pune expressway, which to be launched first, Amit Jatia, managing director, McDonald’s restaurant, Mumbai said, “We are expecting business traveler to frequent the outlet. Our survey reveals that 15000 to 20000 vehicles use the highway everyday. Of this, passenger traffic is around 12000 vehicles per day and the rest is commercial. Besides the vehicular traffic, we are also targeting nearby towns to sustain business.”
McDonald’s will have to face competition from the more affordable Dhabas, the roadside eateries that dot highways all over the country. The company’s confidence stems from a model already in place in north India.
McDonald’s has a 170- seater restaurant at Noida near Delhi. “The restaurant at Noida attracts a lot of drive through business. Around 20 percent of sales at this outlet are from drive through clientele like tourist buses and passenger traffic, that is, the business traveller,” said Vikram Bakshi, managing director, McDonald’s restaurant, New Delhi.
McDonald’s is closely looking at option on National highway. One as it is considered to be one of the busiest highways in India. “In the immediately future, we plan to have three restaurants on this highway and Delhi, Ludhiana highway,” Bakshi added.
While, an extension to expressways may be a recent development, it has been arrived at after looking into the business prospects, logistics and supply chain. Jatia says, “Drive through restaurants is only one of the options to meet McDonald’s target of 80 restaurents across India by 2003 with an investment of Rs.850 crore. Internationally, 40 per cent of the company’s business is from express highways.”
With a strong backing of reliable supply chain, extension advertising and efficient employees, McDonald is trying to fulfill all the customer challenges. Hence, we can truly say that
“McDonald’s Mein Hain Kuch Baat!”
If the Golden Arches are more representative of America than GEORGE BUSH is, McDonalds isn’t exactly an alien entity in India too. After spending Rs. 25 crores on its Indian operations, the global food-chain is out to make its presence felt in every part of the country and it has succeeded in serving up an exciting new combo to Indian customers.
Take two pieces of bun, put in a patty and garnish it with two equation. Price leads to volumes. children bring in the family. that explains why McDonalds is the only food chain in India that can afford to stand tall.
McDonalds is in the throes of a major expansion. the Rs.30 crore plan will be funded through internal accruals and loans. It is adding 10 outlets to the 25 existing ones-13 in Delhi and 12 in Mumbai. Early next year, McDonalds will foray into the southern metros, starting with franchisee operations. McDonalds in corporate India is also associated with the excellent in Supply Chain Management.
Contact number: _______________________
Email ID: _______________________
1. Do you know that McDonald’s is the largest fast food chain in the world?
2. When you hear the word burger does, McDonald’s has come in your
3. Have you been to McDonald’s before?
4. In your family who likes to go to McDonald's?
□ No one
5. With whom do you like to go McDonalds?
6. How often do you go to McDonald’s?
□ Once a week
□ More than once a week
□ Once a month
□ Very rarely
7. With the introduction of new Happy Meal price menu has your number of visits increased?
8. What do you like the most in McDonald’s?
9. How do you rate the service in McDonald’s?
□ Very good
10. Are you satisfied with the quality of food they provide?
11. Do you think McDonalds provides 100% Hygienic product?
12. Are you aware that McDonald’s undertake social activities for the growth of children and other needful people?
13. According to you, how is the relation between the price and the service of McDonald’s?
14. What is the distance of the nearest McDonald’s from your place?
□ Very far
15. What do you suggest what could make McDonald’s better?
With growing outlets in India McDonald’s has started to spread its tentacles in rural areas with its first outlet in Allahabad McDonald’s has started to make its mark since its arrival with its largest Fast food chain franchise today it is ready to tackle the Indian crowd with different Indian items that are delicious and mouth watering.
In order to study how it had a mark on Indian consumers and some other subjects to be studied which are vital for any marketing person an important decision was taken to conduct a Survey.
The survey was conducted in certain areas of Mumbai, with the sample size of 50 comprising of students, businessmen, family members etc. there were various observations made.
Of the sample size 86% knew that McDonalds was the largest fast food chain in the world and the rest 14 % were not aware. With such information we can come to a conclusion that the Brand McDonalds is popular enough in Mumbai and has definitely parked in the minds of the consumer and made a consumer to think of McDonalds whenever the word Burger comes in the mind or in vicinity of consumer.
The other observation was that McDonalds first being only a fast food franchise has evolved itself and made itself a Family restaurants, it is not only that it entertains family members it has diverted itself into catering to teens and adults.
From the sample survey it comes to our notice that the strategy to slash down the prices in order to capture the market has not worked effectively as expected by the McDonalds but it has definitely increased the sales because with Family and Friends it is obvious to spend at a place as such and thereby consuming more at one time visits rather than the regular visits.
With businessmen to discuss deals off the job with clients it could be made out from the survey that they have frequent visits in a months time to such outlets of McDonalds.
However it is important to cover the competitors of such a popular brand. Its major competitor being Jumbo King which has also made its mark and made the consumers feel the vibes of Indian Burger also known as Vada Pav.
It was noticed from other source that though Jumbo King does not earn as much as McDonalds from the Eat in way but sliced the Major share of Market in Take away home. It has definitely made McDonalds a run in this segment of the market since Jumbo King has parked itself in a position where there is maximum commuting in the market and Indian consumers need fast and quick service from that location and at cheap price which it provides. The outlets have been located at both sides of Lifeline of Mumbai i.e. Railways. With maximum number they could open they have started to build itself as the future of Indian fast food chain.
The other competitors in Fast food industry could not be neglected, these being Dominos, Pizza Hut, Kentucky’s Fried Chicken a.k.a. KFC. Dominos is well known for its Pizza delivery in 30 minutes or free and caters to only pizza lovers. Pizza Hut known for its various Indian flavored pizzas has the market rolling in their way with cleverness. KFC being recently launched in India is trying to make consumer aware about its presence in the market. We can say that taking the overall fast food Industry the market share can be divided into:
40% - McDonald’s,
25% - Dominos & Pizza hut,
20% - KFC and Others.
15% - Jumbo King Vada Pav,