Marketing Mix For

Presented By:
• • • • • • Abhishek Bhartiya B. Aditya Mohan Geetika Sodhi Mahek Nangia Mukul Kumar Wasim
haikh
Introduction
• McDonald’s is the Eighth Most Poweful Brand in the ----Source: Millward Brown Opti
mor (including data World.
from brandz, Datamonitor, and Bloomberg)
• Total Revenue for 2006-07 was $740.2 million. • Estimated CAGR of 40 percent. • Rs 4
00 crore being put in for expansion plans into Tier II cities within next three
years. • Doubling of turnover within three years. • Market share of 18 percent in no
rth India.(includes restaurants, cafes, fast food joints, local vendors etc.)
Brief History
• McDonald s was started as a drive-in restaurant by two brothers, Richard and Mau
rice McDonald in California, US in the year 1937. • By mid-1950s, the restaurant s
revenues had reached $350,000. • Ray Kroc distributor for milkshake machines, exp
ressed Kroc, interest in the business, and he finalized a deal for franchising w
ith the McDonald brothers in 1954. • He established a franchising company, the McD
onald System Inc. and appointed franchisees. Inc. • In 1961, he bought out the McD
onald brothers share for $2.7 million and changed the name of the company to Mc
Donald s Corporation. In 1965, McDonald s went Corporation public…
McDonald’s In India
• In 1996, first McDonald’s restaurant opened on Oct. 13, at Basant Lok, Vasant Viha
r, New Delhi. • McDonald s India is a 50 – 50 JV partnership between McDonald’s Corpor
ation (U.S.A) and two Indian businessman Amit Jatia (Hardcastle Restaurants Priv
ate Limited, Mumbai) and Vikram Bakshi (Connaught Plaza Restaurants Private Limi
ted, Delhi). • Approximately 75% of the menu available in McDonald’s in India is Ind
ianized and specifically designed to woo Indian customers. • The McDonald s philos
ophy of QSC&V is the guiding force behind its service to the customers.
Product
“Our clear strategy is to bring the customers in initially and provide a range of
entry-level products so that they can try new items and graduate to the higher r
ungs.” --Vikram Bakshi, Managing Director, Northern Region, India
Product Mix
Product Mix
Veg Menu
• McVeggie™ • McAloo Tikki™ • Paneer Salsa Wrap • Crispy Chinese • Veg McCurry Pan™ • Pizza
Non-Veg Menu
• Chicken Maharaja Mac • McChicken • Fiet-O-Fish • Chicken Mexican Wrap • Chicken McGrill
Beverages
• Cold Coffee • Ice Tea • Soft Drinks • Mc Shakes • Hot Serves
Frozen Deserts
• Soft Serve Cone • Mc Swirl • Soft Serve • Flavor Burst • Floats
Veg Menu
NonNon-Veg Menu
Beverages
Frozen Deserts
Co - Branding
McDonald’s has major tie-ups with various companies as their cobranding Statergy.
Few of Them are listed Below:
Coca-Cola Barbie Cadbury Hotwheels
Pricing
• Initial focus on metros – Mumbai and Delhi.
• Relatively high income.
• Move to smaller satellite towns.(Gurgaon and Pune)
• Jaipur and Agra – to attract foreign tourists.
Household Expenditures
Source: India, the structure of Poverty, WORLD RESOURCE INSTITUTE.
Pricing Strategy
Purchasing power pricing:a) In 1997 slashed prices for vegetable nuggets and sof
t serve cone. b) In September 2001, they offered Veg surprise burgers for Rs 17.
c) March 2004 – Aap ke zamane mein, baap ke
zamane ka daam.
Pricing Strategy
Value Ladder strategy :a) Started offering value meals in a range of prices. b)
Ensure affordability and attract widest section of customers. c) Brought the cus
tomer and provided a range of entrylevel products. d) Try those new items and gr
aduate to higher-rungs. e) E.g- if a customer starts with McAloo Tikki, he will
finally graduate to McVeggie and so in Non veg. f) Helped its Volume business.
Aap ke zamane mein, daam!!! baap ke zamane ka daam!!!
Value Pricing. a) b) c) d) e) f) Happy price menu – Rs 20. Economeal – Rs 49(save Rs
11). McChicken & McVeggie Meal – Rs 75,Rs 65 (Save Rs 15). Happy Meal for Kids – Rs
69,99,109 (toy free). Big saving Meals – Combos Rs 109 – Rs 119(Save Rs 36). A-la c
arte menu – Rs 45- Rs 65 (Veg) Rs 55- Rs 65 (Non Veg) a) b) Desserts – Rs 12 – Rs 25.
Beverages – Rs 25- 50 ( a little costly)
Product Bundling
Package deal. • The most common strategy in fast food industry. • The most preferred
style for customers of McD. • Plays on Psychological factor of the customer. • Cust
omer acquisition costs are high. • Consumers appreciate the resulting simplificati
on of the purchase decision. • The product mix offers are different in various par
ts of India.
8080-20 Menu Board
• 80% visual. • 20% descriptive. • Easier for customers to understand what 29,39,49,59
,89,99 rupee options are. • Pricing range, quick service, no-tips environment attr
acted middle class and students.
Competitive Pricing
Food items Burgers & Pizzas Combo Meals Beverages McD Rs 20- Rs 70 Rs 49-Rs 119
Rs 25- Rs 50 Small300ml Rs 12-Rs 25 SUBWAY Rs 65- Rs 135 Rs 45- Rs 175 Rs 35- Rs
45 Small300ml Rs 20-Rs 50 KFC Rs 25 – Rs175 Rs 55-Rs 150 Rs 30-Rs 55 Small300ml R
s 15-Rs 65 PIZZAHUT Rs 55- Rs 175 (regular) Rs 120- Rs 250 Pet beverage MRP (600
ml) Rs 40- Rs 60 DOMINO’ S Rs 35- Rs 140 (regular) Rs 120- Rs 230 Rs 30 (600 ml)
Desserts
Rs 25 (100ml cup of Baskin Robbins)
Sustaining – HOW?
Cost control strategy:a) Well established low –cost supply chain. b) Ensures effic
iency and speed in distribution. c) Huge increase in volume sales. d) Very good
food processing technology.
McDonald’s : A locally Owned Company
McDonald’s Corporation
McDonald’s India Pvt. Ltd. Connaught Plaza Rest. Pvt. Ltd. (North & East)
Hard Castle Rest. Pvt. Ltd. (West & South)
McDonald’s : A locally Owned Company
Geographically Diverse suppliers: Ensuring stringent quality standards
McDonald’s India: Suppliers
• Trikaya Agriculture
Supplier of Iceberg Lettuce
• Vista Processed Foods Pvt. Ltd.
Supplier of Chicken and Vegetable range of products.
• Dynamix Diary
Supplier of Cheese.
• Amrit Food
Supplier of long life UHT Milk and Milk Products for Frozen Desserts.
McDonald’s India: Suppliers
SELECTION
MODIFICATION
EVALUATION
MOTIVATION
McDonald’s India: Distribution
Radhakrishna Foodland Distribution Centres and cold storages. “With a cold chain i
n place there is practically no need for a knife in the restaurant. Chopping and
food processing is done in plants. Restaurants are confined only to actual cook
ing” – Amit Jatia.
•Completely dedicated distribution and supply chain. • Matching supplier production
with deliveries using ERP. • Quality inspection Program, quality check at 20 diffe
rent points in supply chain. • HACCP(Hazard analysis critical control points) food
safety standards emphasizing prevention of faults.
McDonald’s India: Channel Network
North and East India (79) 33 in Delhi 22 in Uttar Pradesh 11 in Haryana 7 in Pun
jab 3 in Rajasthan 1 in Uttaranchal 1 in West Bengal 1 in Himachal Pradesh
West and South India (53) 32 in Maharashtra 7 in Gujarat 7 in Karnataka 4 in And
hra 3 in Madhya Pradesh
McDonald’s India: Network & competitors
COMPANIES McDonald’s Pizza Hut Domino’s Subway Nirula’s KFC
OUTLETS (No.) 132 137 220 131 65 34
CITIES COVERED 34 34 42 32 NCR 09
McDonald’s India: Outlets
Standardization is the key!!
McDonald’s India: The Road Ahead…
• Increasing seating capacity. • Aggressive expansion plans throughout the country. •
More drive thru’s. • Oil alliance with BPCL in 2002, with HPCL in Jan, 2008. • Indepen
dent franchisee model. • McDelivery on cycles. • Entry in new cities.
Promotion
•An activity, such as a sale or advertising campaign, designed to increase visibil
ity or sales of a product. •McDonalds, for years has maintained an extensive promo
tion strategy with highest spending on marketing amongst all its competitors.
Advertising
• Focus on overall experience. • “Brand globally and act locally”. • Overall it is doing w
hat it does the best – marketing. • Intensive advertising aimed at children. • Paper m
ats on trays ensure that no new scheme goes unnoticed.
Advertising
• 80-20 menu boards marketing tool. • Sponsors sport events with their logos adverti
sed in these events. • Significant use of billboards and signage. • Image of portray
ing warmth and a real slice of everyday life has become a trademark and has crea
ted many memorable commercials.
THE mascot…
• The well known mascot Ronald McDonald is the same throughout the world since 196
3. • It is supposed to be the next most well recognized figure second only to Sant
a Claus. • The color combination maximizes brand exposure and is supposed to incre
ase hunger
Campaigns…
• “I’m lovin’ it” is an international branding campaign which was launched in 2003 and has
proved to be its biggest success. • “aap ke zamaane mein baap ke zamaane ke daam” is
a highly localized campaign which aimed at attracting the masses through its hap
py price menu.
Issues with McDonald’s
• Nutritionists argue that the type of high fat, low fibre diet promoted by McDona
ld s is linked to serious diseases such as cancer, heart disease, obesity and di
abetes. • Many parents object strongly to the influence this has over their own ch
ildren. • Complaints from employees range from discrimination and lack of rights,
to understaffing, few breaks and illegal hours, to poor safety conditions and ki
tchens flooded with sewage, and the sale of food that has been dropped on the fl
oor.
Issues with McDonald’s
• They use their financial clout to influence the media, and legal powers to intim
idate people into not speaking out, directly threatening free speech. • Conservati
onists have often focussed on McDonald s as an industry leader promoting busines
s practices detrimental to the environment. And yet the company spends a fortune
promoting itself as environmentally friendly.
People
• Each outlet is headed by a Restaurant Manager . He is responsible for the daily
operation and customer interaction. • Delivery Crew Member carries basic operation
of a restaurant. Ensures customer satisfaction at the restaurants. • In order to
motivate there employees they give them stars as per their performance.
Training At Hamburger
Hamburger University – McDonald’s Centre of Training Excellence
• Since its inception, training at Hamburger University has emphasized consistent
restaurant operations procedures, service, quality and cleanliness. It has becom
e the company’s global centre of excellence for McDonald’s operations training and l
eadership development • February 24, 1961, Hamburger Universities first class of 1
4 students graduated • Today, more than 5,000 students attend HAMBURGER UNIVERSITY
each year • Since 1961, more than 80,000 restaurant managers, midmanagers and own
er/operators have graduated from this facility
Organizational Chart
Physical evidence..
• Cleanliness, speed, quality and transparency of process is the biggest physical
evidence. • The interiors are attractive and more or less consistent throughout th
e world. • A proper decorum and strict standards of cleanliness are maintained at
all the joints. • Extra care is given to make the joints children friendly
Physical evidence..
• Family environment message throughout the world, just the way of communication i
s adjusted to different countries. • Play areas are provided so that kids don’t beco
me panicky. • Counters are kept low and menus pictorially displayed so that childr
en can order for themselves.
Process
Ready to cook frozen food material Delivery to customer Universal holding Cabine
t Assembler
Initiator
Thank You