Marketing Mix

For

Presented By:

• Abhishek
Bhartiya
• B. Aditya Mohan
• Geetika Sodhi
• Mahek Nangia
• Mukul Kumar
• Wasim Shaikh
Introduction
• McDonald’s is the Eighth Most Poweful
Brand in the World.----Source: Millward Brown Optimor
(including data from brandz,
Datamonitor, and Bloomberg)

• Total Revenue for McDonald’s India in

2006-07 was $740.2 million.
• Estimated CAGR of 40 percent.

• Rs 400 crores 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 north

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
Maurice McDonald in California, US in the
year 1937.
• By mid-1950s, the restaurant's revenues had
reached $350,000.
• Ray Kroc,
Kroc distributor for milkshake machines,
expressed interest in the business, and he
finalized a deal for franchising with the
McDonald brothers in 1954.
• He established a franchising company, the
McDonald System Inc. and appointed
franchisees.
• In 1961, he bought out the McDonald brothers'
share for $2.7 million and changed the name
of the company to McDonald's Corporation.
Corporation
In 1965, McDonald's went public…
 McDonald’s In
India
• In 1996, first McDonald’s
restaurant opened on Oct. 13,
at Basant Lok, Vasant Vihar,
New Delhi.
• McDonald's India is a 50 – 50 JV
partnership between
McDonald’s Corporation (U.S.A)
and two Indian businessman
Amit Jatia (Hardcastle
Restaurants Private Limited,
Mumbai) and Vikram Bakshi
(Connaught Plaza Restaurants
• Approximately 75% of the menu
available in McDonald’s in India
is Indianized and specifically
designed to woo Indian
customers.
• The McDonald's philosophy of
QSC&V is the guiding force
behind its service to the
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 rungs.” ---
Vikram Bakshi,
Managing Director,
Northern Region, India
Product
Mix

• McVeggie™ • Chicken • Cold Coffee • Soft Serve

• McAloo Tikki™ Maharaja Mac • Ice Tea Cone
• Paneer Salsa • McChicken • Soft Drinks • Mc Swirl
Wrap • Fiet-O-Fish • Mc Shakes • Soft Serve
• Crispy Chinese • Chicken • Hot Serves • Flavor Burst
• Veg McCurry Mexican Wrap • Floats
Pan™ • Chicken
McGrill
Veg
Menu
Non-Veg
Menu
Beverage
s
Frozen Deserts
Break fast
Menu

• Usual working hours: 11am to 11pm

• Recently came up with new timings: 7am to

11pm

• Only available in selected outlets.

• Introduced egg on the menu for breakfast

Packaging and
Labeling

Clearly
mentions
that the
burger is a
Veg or a Non-
Veg Burger

Mentions the
name of the
burger and
the colour is
different for
different
types of
burgers
Co -
Branding
McDonald’s has major tie-ups with various
companies as their co-branding Statergy.

Few of Them are

listed Below:

Coca-
Cola

Barbi
e
Cadbury

Hotwhe
els
 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 Stratergy

Purchasing power pricing:-

b) In 1997 slashed prices for vegetable
nuggets and soft serve cone.
c) In September 2001, they offered Veg
surprise burgers for Rs 17.

d) March 2004 – Aap ke zamane mein,

baap ke zamane ka daam.

Pricing Stratergy

Value Ladder strategy :-

b) Started offering value meals in a range of
prices.
c) Ensure affordability and attract widest
section of customers.
d) Brought the customer and provided a
range of entry-level products.
e) Try those new items and graduate to
higher-rungs.
f) E.g- if a customer starts with McAloo Tikki,
he will finally graduate to McVeggie and
so in Non veg.
g) Helped its Volume business.
 Aap ke zamane mein,
baap ke zamane ka daam!!!

Value Pricing.
b) Happy price menu – Rs 20.
c) Economeal – Rs 49(save Rs 11).
d) McChicken & McVeggie Meal – Rs 75,Rs 65 (Save
Rs 15).
e) Happy Meal for Kids – Rs 69,99,109 (toy free).
f) Big saving Meals – Combos Rs 109 – Rs 119(Save
Rs 36).
g) A-la carte menu – Rs 45- Rs 65 (Veg)
Rs 55- Rs 65 (Non Veg)
i) Desserts – Rs 12 – Rs 25.
 Product Bundling

Package deal.
• The most common startegy in fast food
industry.
• The most preferred style for customers of
McD.
• Plays on Psychological factor of the
customer.
• Customer acquisition costs are high.
• Consumers appreciate the resulting
simplification of the purchase decision.
80-20 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 attracted middle class
and students.
Competitive
Pricing
Sustaining –
HOW?
Cost control strategy:-
b) Well established low –
cost supply chain.
c) Ensures efficiency and
speed in distribution.
d) Huge increase in
volume sales.
e) Very good food
processing technology.
McDonald’s : A locally Owned
Company

McDonal
d’s
Corporati
on

McDonald
’s India
Pvt. Ltd.

Hard Castle Connaught

Rest. Pvt. Plaza Rest.
Ltd. Pvt. Ltd.
(West & (North &
South) East)
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

•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 in 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 cooking” – Amit Jatia.

•Completely dedicated distribution and supply chain.

•Matching supplier production with deliveries using

ERP.

•Quality inspection Program, quality check at 20

different points in supply chain.

•HACCP(Hazard analysis critical control points) food

McDonald’s India: Channel
Network
North and East
India (79)

33 in Delhi
22 in Uttar Pradesh
11 in Haryana
7 in Punjab
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 Andhra
3 in Madhya Pradesh
McDonald’s India: Network &
competitors

CITIES
COMPANIES OUTLETS (No.)
COVERED
McDonald’s 132
34
Pizza Hut 137
34
Domino’s 220
42
Subway 131
32
Nirula’s 65
NCR
KFC 34
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 thrus.

•Oil alliance with BPCL in 2002, with HPCL in Jan,

2008.

•Independent franchisee model.

•McDelivery on cycles.
Promotion

• An activity, such as a sale or

advertising campaign, designed
to increase visibility or sales of a
product.
• McDonalds, for years has
maintained an extensive
promotion strategy with highest
spending on marketing amongst
Advertising

• Focus on overall
experience.
• “Brand globally and
act locally”.
• Overall it is doing
what it does the best –
marketing.
• Intensive advertising
aimed at children.
• Paper mats on trays
ensure that no new
scheme goes
Advertising

• 80-20 menu boards

marketing tool.
• Sponsors sport events
with their logos
advertised in these
events.
• Significant use of
billboards and signage.
• Image of portraying
warmth and a real slice
of everyday life has
become a trademark
 THE
mascot…
• The well known
mascot Ronald
McDonald is the
same throughout the
world since 1963.
• It is supposed to be
the next most well
recognized figure
second only to Santa
Claus.
• The color
combination
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
Process
•Standardization is the key
Ready to
cook
frozen food
material

Delivery to
customer
Initiator
Universal
holding
Cabinet

Assembler
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
Organizational Chart
Trainin
g

• McDonald’s invests more than $1

billion annually in training

•“Best Place to Work” – Fortune

Magazine 2005
• “One out of 5 Best Places to Work in
Latin American” – America Economic
Magazine 2005
 Training At
Hamburger

• February 24, 1961, Hamburger Universities first class

of 14 students graduated
• Today, more than 5,000 students attend HAMBURGER
UNIVERSITY each year
• Since 1961, more than 80,000 restaurant managers,
mid-managers and owner/operators have graduated
from this facility
EXPLOITING WORKERS

• Low wages

• No overtimes

• Accidents like Burns due

to pressure of quick
service

# (The majority of employees are people who have few job

options and so are forced to accept this exploitation, and
they ’r compelled to ‘smile’ too! Not surprisingly staff
turnover at McDonald’s is high, making it virtually
impossible to unionise and fight for a better deal, which
suits McDonald’s who have always been opposed to Unions.)
Physical
evidence..
• Cleanliness, speed,
quality and
transparency of
process is the biggest
physical evidence.
• The interiors are
attractive and more or
less consistent
throughout the world.
• A proper decorum and
strict standards of
cleanliness are
maintained at all the
joints.
Physical
evidence..

• Family environment
message throughout the
world, just the way of
communication is
adjusted to different
countries.

• Play areas are provided

so that kids don’t
become panicky.

• Counters are kept low

and menus pictorially
Issues with McDonald’s

• Nutritionists argue that the type of high fat,

low fibre diet promoted by McDonald's is
linked to serious diseases such as cancer,
heart disease, obesity and diabetes.

• Many parents object strongly to the

influence this has over their own children.

• Complaints from employees range from

discrimination and lack of rights, to
understaffing, few breaks and illegal hours,
to poor safety conditions and kitchens
flooded with sewage, and the sale of food
Issues with McDonald’s

• They use their financial clout to

influence the media, and legal
powers to intimidate people into
not speaking out, directly
threatening free speech.
• Conservationists have often
focussed on McDonald's as an
industry leader promoting business
practices detrimental to the
environment. And yet the company
We Would like to thank:

Mr. AbhishekJain
Area Supervisor
NCR

Mr. Ashish Jayal

Restaurant Manager
Ansal Plaza
Greater Noida.
Thank You