Mcuonalds

resented 8y
An|nd|t 8orkotoky
n|tesh Wadhwan|
N|sha kaut
Saurabh Mehta
Sayak Mazumder
V|kas Gupta
low of Lhe resenLaLlon
Company Overview
Vision
STP
SWOT Analysis
7 P`s of McDonalds
Porter Five Forces
Recommendations
ompany Cvervlew
McDonald's was Iirst opened in India in 1996
Leading IastIood chains
Ownership and management
Nothern India- Vikram Bakshi's company Connaught
Plaza Restaurants
Western India- Amit Jatia that is Hardcastle
Restaurants
More than 120 outlets and 1 lakh customers visit
daily
ompany Cvervlew
$pecially developed a customised veg menu
Ior Indian customers along with its universal
non veg menu
Established a benchmark in the sector oI quick
service restaurant
Awarded many awards like the "Most Respected
Company" Ior Iour successive years
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%o achieve their vision they are Iocused on three world wide
strategies:
1. Be the best employer Ior people in each community around the world.
2. Deliver optional excellence to customers in each restaurant.
3. Achieve enduring proIitable growth by expanding the brand and
leveraging the strengths oI McDonald`s system through innovation and
technology.
World Wide $trategies:
slness Model
ranchisee driven model
15 owned stores, remaining 85 are operated by
Iranchises
Product Consistency
By developing a sophisticated supplier networked
operation and distribution system
Brand Equity
McDonald`s Iocuses not only on delivering sales Ior
the immediate present, but also protecting its long term
brand reputation
egmenLaLlon
Demographic:
1. Cater to kids
2. Youth
3. Urban upper & middle class Iamilies
Geographic:
1. Mostly in urban towns & cities
2. Now opening in 2&3 tier cities
3. Mostly situated in malls having independent Iranchises
Psychographic:
1. Place to chill out with Iriends & Iamilies
2. Place Ior enjoyment oI the Kids
egmenLaLlon
$egmentation on the basis oI Vegetarian and Non-
Vegetarian class.
$pecially designed menu`s Ior both the classes.
IegeLarlan/nonIegeLarlan
@argeLlng
%ARGE% MARKE%$
ocus on metros, Malls, Multiplex, Highways,
$tations & Airports
Exposure to western Iood & culture
Move to smaller satellite towns like Gurgaon, Pune
Relatively High Income Groups
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@he maln LargeL csLomer for Mcuonald's ls Lhe new
rban lndlan famlly
@arget Segment What |s McDona|d's for me?
A amlly wlLh chlldren A LreaL Lo chlldren a fn place Lo be for Lhe chlldren
urban csLomer on Lhe
move
CreaL LasLe qlck servlce wlLhoL affecLlng Lhe work
schedle
@eenager
PangoL wlLh frlends bL keep lL affordable
oslLlonlng
Mc Donald`s mein hai kuch baat projects
McDonald`s as a place Ior the whole Iamily to enjoy.
It positions itselI as an aIIordable place to eat without
compromising on the quality oI Iood, service and
hygiene.
ercepLal Mapplng
JC@ Analysls
(LrengLhs)
$trong Brand Name, Image and Reputation
Large market share
$trong global presence
$pecialized training Ior managers known as the Hamburger
University
McDonalds Plan to Win Iocuses on people, products, place,
price and promotion
$trong Iinancial perIormance and position
Introduction oI new products (Product Innovation)
Customer Iocus (centric)
$trong perIormance in the global marketplace
$upplier Integration
Jeakness
High $taII %urnover including %op management.
Customer losses due to Iierce competition
Legal actions related to health issues; use oI trans Iat & beeI
oil
Uses HCC-22 to make polystyrene that is contributing to
ozone depletion
Quality issues across Iranchisee network
Loss in quality due to storage centres
CpporLnlLles
Growing health trends among consumers
Globalization, expansion in other countries (especially in
China & India)
Growth oI the Iast-Iood industry
Worldwide deregulation
Low cost menu that will attract the customers
reebies and discounts, Play parks Ior children
Expand into %ier 2 and %ier 3 cities
Increase in the breakIast menu
Joint Venture with retailers (Eg: $upermarkets)
@hreaLs
Health proIessionals and consumer activists accuse
McDonald's oI contributing to the country`s health issue oI
high cholesterol, heart attacks, diabetes, and obesity.
Increased competition Irom Iast Iood outlets like KC
Changing customer liIecycle and taste
Local lavoured ast Iood joints : Jumbo King
's of Mcuonald
(rodcL)
McDonald`s product includes vegetarian and non-vegetarian
items
Also involves combo pack
Concept oI product bundling
Cares Ior customer`s sentiments towards religion and Culture
Halaal meat processing in middle east
$eparate cooking area and equipments
Product Elimination
Removal oI beeI Ilavored products
rodcL
Product variation: Variety in product ranging Irom burgers to
soIties
McDonalds continuously innovates its products
Product innovation: Adapting to Indian conditions creating the
CHICKEN MAHARAJA
rodcL
Menu: Veg, Non Veg, rozen, Desserts,
Beverages
$uccesses: ries, Happy meal, Pizza Mc puII,
Big Mac
ailures: Iajita, carrot sticks, Mclean. etc
rlce
Policy which caters to Indian customers
Quite aIIordable products
Importance to brand and its integrity
McDonalds has certain value pricing and bundling
strategies such as happy meal, combo meal, Iamily
meal etc to increase overall sales volumes.
Aap ke zamane mein ,baap ke zamane ke daam
%his was to attract the middle and lower class
consumers and the eIIect can clearly be seen in the
consumer base McDonalds has now.
Price Video
lace
Located at prime locations
Almost in all big cities
OIIers hygienic environment good ambience & great
service
$tarted giving internet Iacility
Areas Ior children where they can play & enjoy
with their Iamily
$pend some quality time together
romoLlon
%arget customer Children
Promotion is both 'above-the-line' and 'below-the-
line'.
Above is advertising that is directly paid for,
such as TV and press adverts.
elow is other promotions such as special offers,
value added and competitions.
Description oI Products on Paper Mats placed in
the trays.
%he placing oI the pamphlets and banners in and
around the outlets
romoLlon
Individual communication- word oI mouth, peer group
Mass communication- Advertisements & Child amusement
activities at outlets, drives & campaigns
ree distribution OI Children toys- with every happy meal
Promotion Video
$ome oI the most Iamous marketing campaigns oI McDonalds
are:
1. You deserve a break today, so get up & get away- to
McDonalds
2. Aap ke Zamane mein, Baap ke zamane ke DAAM
3. ood, olks,& un
4. I m Loving it
eople
Each store headed by Restaurant Manager
Responsible Ior daily operation and customer
interaction
$tars provided to employees based on their
perIormance to motivate employees
Gives employees larger role in decisions
Customer always comes Iirst
ast Iriendly service
Philosophy oI quality, service cleanliness and
value is the guiding Iorce behind its service.
orLers 3 orces
Rivalry among existing Iirms
Many small IastIood business
Intense competition in the Indian Market with
other MNC`s like Domminos, pizza hut, KC
%hreat oI new entrants- Low
Hard to establish brand name Ior new entrants
High cost oI entry in the market
High R&D costs
Price Competition Irom chain restaurants
orLers 3 orces
%hreat oI $ubstitutes- High
%here are many options in Iast-Ioods to customers
Customers could choose Irom Burgers to Pizzas to
Beverages to noodles, etc
Bargaining power oI suppliers- Low
McDonalds has gone into Backward integration
and inIluences signiIicant control over suppliers
Bargaining power oI customers- Medium
McDonalds has to Iocus on value delivery to
customers or else customers may switch
Lre 8ecommendaLlons
Introduction oI loyalty program Ior Indian customers
Increase its product line, have more variety to choose
Irom, to include more deserts and more items
Expand their Happy Meal choices to attract and retain
customers
%o educate about healthy liIestyle, removing
misconceptions about Iast Ioods among people
Introduction oI caIeterias serving premium and specialty
coIIees and other beverages and other products such as
cakes, pastries etc in the existing McDonald`s.
Lre 8ecommendaLlons
ocus on giIts Ior all generations i.e. youth, kids`
especially senior citizen which is a completely new
concept.
$pecial promotions during Iestivals as Indians tend to
spend more at such events.
%ry to sponsor college Iestivals.
Work Ior social welIare oI the society
@hank ?o"""