IIPM

Marketing Research Report

On
McDonald

Submitted To:
Prof. Durgesh Batra

Submitted By:
Swati Gupta

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 Letter of Acceptance

To:
Mr. Durgesh Batra
Lecturer IIPM,
Jaipur

Subject: PREPARATION OF REPORT

I am hereby presenting the report on Company McDonald and assure

you submission of our report in compliance with the instruction
envisaged.
Name of topic is repeated for ready reference please.

“Marketing Research report on McDonald”

Yours sincerely,

Swati Gupta

Date: November 03, 2009

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 Acknowledgement

The successful accomplishment of any task is incomplete without

acknowledging the contributing personalities who assisted and inspired
and lead us to way of success.

At the outset I would like to express my deep sense of gratitude and

sincere thanks to Mr. Manish Tiwari, Dean, Indian Institute of Planning
and Management, Jaipur for providing an opportunity to discover the
corporate world from a close perspective.

I also thank Prof. Durgesh Batra, my marketing research guide for this
project report to whom I am deeply grateful for his constant report
and guidance without which it would not have been possible for me to
complete this project.

I convey my gratitude to all the staff of “McDonald” for their kind

cooperation throughout my project. I would also like to thank everyone
who contributed in any manner to this project.

Finally I thank my dearest Parents & Friends for their continued

support.

Swati Gupta

TABLE OF CONTENT
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Sr. No. Particulars Page No.
1. Executive Summary
2. Introduction of McDonald’s
- History
- Business Model
- McDonald’s in India
3. SWOT Analysis
4. Methodology
- Introduction
- Research Objective
- Research Plan
- Research limitations
5. Analysis & Interpretation
6. Conclusion & Recommendations
7. Annexure
- Bibliography

EXECUTIVE SUMMARY
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During the past four decades McDonald has built a reputation for
excellence that has earned the respect of consumers and industry
experts alike. Building a leading company like McDonald has required
relentless innovation, commitment to quality and dedication to
customer service and value. The qualities of entrepreneurship, growth
and leadership have characterized McDonald’s business through more
than four decades of success. Through the strength of its heritage, its
culture and its people and franchisees, McDonald looks forward to
more success in future.

This report presents an in-depth business, strategic and marketing

analysis of McDonald's Corporation. The report provides a
comprehensive insight into the company, including business structure
and operations, major strategies and key competitors. The hallmark of
the report is the detailed marketing research and analysis on the
company. The research is done with predefined objectives and aims,
with a proper designed procedure in order to carry out the research
work efficiently and effectively. The report also enlightens the SWOT
(Strength, Weakness, Opportunities and Threats) Analysis of the
company so as to examine the company’s key business structure and
operations, history and products, and provides summary analysis of its
key revenue lines and strategy. The research report also includes
resultant pie charts based on the survey conducted for the popularity
and success of McDonald’s. All the limitations while preparing the
research report is mentioned and the final analysis and interpretation is
revealed.

Introduction of McDonald
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 McDonald's is the world's #1 fast-food company by sales, with
about 32,000 restaurants serving burgers and fries to 52 million people
in about 120 countries. (There are nearly 14,000 Golden Arches
locations in the US.) The popular chain is well-known for its Big Macs,
Quarter Pounders, and Chicken McNuggets. Most of its outlets are free-
standing units, but McDonald's also has many units located in airports
and retail areas. Each eatery gets its food and packaging from approved
suppliers to ensure that a Big Mac purchased in Pittsburgh tastes the
same as one bought in Beijing. Nearly 80% of the restaurants are run by
franchisees or affiliates. More than 70% of McDonald's restaurants
worldwide are owned and operated by independent local men and
women.

Mc Donald’s Mission Statement

"McDonald's vision is to be the world's best quick service restaurant
experience. Being the best means providing outstanding quality,
service, cleanliness, and value, so that we make every customer in
every restaurant smile."

Principles of the Organization

Principles that guide the organization-:

Quality, Service, Cleanliness & Value - It is an unflinching McDonald's

ideology that the customers must always get quality products, served

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quickly and with a smile, in a clean and pleasant environment; and all at
a fair price.

 They are committed to exceeding our customers' expectations in

every restaurant every time.
 They have a passion and a responsibility for enhancing and
protecting the McDonald's brand.
 Believe in a collaborative management approach, employing a
mutually respectful business philosophy,
 Will seize every opportunity to innovate and lead the industry on
behalf of the customers.

Business Model

 Franchise Model – Only 15% of the total number of restaurants

are owned by the Company. The remaining 85% is operated by
franchisees. The company follows a comprehensive framework of
training and monitoring of its franchises to ensure that they adhere
to the Quality, Service, Cleanliness and Value propositions
offered by the company to its customers.

 Product Consistency – By developing a sophisticated supplier

networked operation and distribution system, the company has
been able to achieve consistent product taste and quality across
geographies.

 Act like a retailer and think like a brand – McDonald’s focuses

not only on delivering sales for the immediate present, but also
protecting its long term brand reputation.

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McDonald’s in India
McDonald's opened its doors in India in October 1996. Ever since then,
Mc Donald’s family restaurants in Mumbai, Delhi, Pune, Ahmedabad,
Vadodara, Ludhiana, Jaipur, Noida Faridabad, Doraha, Manesar and
Gurgaon have proceeded to demonstrate, much to the delight of all the
customers, what the McDonald's experience is all about. The first
restaurant opened on 15th April 1955 in Des Plaines, Illinois, U.S.A.
Almost 50 years down the line, its are the world's largest food service
system with more than 30,000 restaurants in 100 countries, serving
more than 46 million customers every day.

Features:

 LOCALLY OWNED
McDonald’s in India is a 50-50 joint venture partnership between
McDonald’s Corporation [USA] and two Indian businessmen. Amit
Jatia’s company hard castle Restaurants Pvt. Ltd. owns and operates
McDonald's restaurants in Western India. While Connaught Plaza
Restaurants Pvt. Ltd headed by Vikram Bakshi owns and operates the
Northern operations.

Amit Jatia and Vikram Bakshi are like-minded visionaries who share
McDonald's complete commitment to Quality, Service, Cleanliness and
Value (QSC&V). Having signed their joint-venture agreements with

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McDonald's in April 1995, they trained extensively, along with their
Indian management team, in McDonald's restaurants in Indonesia and
the U.S.A. before opening the first McDonald’s restaurant in India.

 RESPECT FOR LOCAL CULTURE

McDonald's India has developed a special menu with vegetarian
selections to suit 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 the Indian restaurants. In
addition, they have re-formulated some of the products using spices
favored by Indians. Among these are McVeggie burger, McAloo Tikki
burger, Veg. Pizza McPuff and Chicken McGrill burger.

SWOT ANALYSIS

Strengths

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Successful Advertisement (I’m lovin it)
Great Partnership (Coco Cola)
Clean environment and playground for kids
Professional training for employees (Hamburger University)

Weaknesses

Product Development
Price
Management for franchisees/joint ventures

Opportunities

Internationalization
Growing dining out market (Especially young generation and middle age
group)

Threats

More health conscious customers

Threats from local competitors in different countries
The economic downturn
Playing in a mature and saturated industry

Methodology

Research Introduction
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The activities of market research include defining marketing
opportunities and problems, generating and evaluating marketing
ideas, monitoring performance, and understanding the marketing
process. The methodology of the study included selection of sample,
study/survey of library references, collation and compilation of the
primary and secondary data and information obtained through
structured questionnaires, open ended interview. The method of
research was deductive as conclusion would be drawn after the analysis
and interpretation of data collected.

Research Objective
 To identify and analyze the various components of the service
experience rendered by McDonald’s to its customer.
 To analyze the impact of service experience on customers at
McDonald’s.
 To study the challenges in maintaining and improving the service
experience rendered by McDonald’s.

Research Plan
Research plan is developed into various components-

 Data sources
 Research instrument
 Sampling methods

Data Sources
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Primary data:-
Primary data is collected from the locality of the coverage area. We
have taken in to consideration the views of manager, sales manager,
marketing manager, auditor, employees, etc. & our professors about
the relevant subject & also pay attention towards their suggestions.
Their suggestions are incorporated in the report. Beside of all this,
some data is also collected by ourselves.

Secondary data:-
Same as above some data is collected from the media also.

 Newspapers
 Magazines
 Books on Management
 Text books

Research Instruments
To collect the primary data for the Management Thesis, we have
selected some questions in concern with the organization. We used
these questions as a research instruments for knowing the facts.

These questions are as follows:-

 Questions related to their marketing management.

 Questions related to their capital
 Questions related to their investment.
 Questions related to their turn over.
 Questions related to their advertise expenditure.
 Questions related to their interpersonal relations with Customers
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  Questions related to their competitors.
 Questions related to their organizational structure.
 Questions related to training & development of employers
 Questions related to motivation.

Sampling Methods
The points considered in the sampling plan are as following:-

Sampling Unit:-
The staff of the organization including the managers of different
departments and the employees was targeted for the Marketing
research report.

Sampling Quantity:-
The sampling quantity was 24 & all are related with McDonald’s. Apart
from this we also considered some customers of McDonald’s.

Coverage:-
The coverage of the survey was whole organization i.e. McDonald’s.

Research Limitations
Some limiting factors were faced while conducting the research and
preparing the report. These could be summarized as follows:

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  No secondary information was found, such as, any report or
research papers on this particular issue.
 For finding out reasons behind gap between theory and practice,
enough number of projects could not be studied due to shortage
of time and scope.
 Only internal specialists were interviewed.

Analysis & Interpretations

The result of the survey is as follows-

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Q1. how frequently do you visit McDonald’s?

Daily
10%

Occasionally
30%

Monthly Weekly
10% 50%

Interpretation
Majorly were weekly visitors to the outlet. The age group 20- 26 majorly consist
of the weekly visitors and the occasionally were the adult age group of 35 and

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above. The daily being a minority also consisted of the college goers. The kids
with age group 10-18 were in the weekly group.

Q2 which is your favorite product at McDonald?

Mc
Veggie
Other Burger
16% 18%

Mc Aloo
Tikki
Burger
22% French
Fries
Mc Puff 34%
10%

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Interpretation
Customers were asked about their favorite product at McDonald. Majority of age
20-26 were for French fries and Mc Aloo Tikki Burger.

Q3. is the product line in McDonald adequate?

Yes
28%
Average
38%

No
34%

Interpretation

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Q4 Is the price of the products at McDonald’s reasonable?

Very
costly
8%
Cheap
32% Costly
23%

Resonabl
e
37%

Interpretation

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The price of the product according to the majority sample was reasonable. 32% of
the sample said that the prices were cheap and they were mostly from the 20-26
age group. But the reasonable category consisted of the 35- above and 20-26 age
group and the rest were in the costly and very costly bracket.

Q5 How does you like the infrastructure at McDonald?

Very Poor
Good 10%
23%

Average
22%

Good
45%

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Interpretation

The infrastructure was rated on the basis of poor, average, good and very good.
Mostly of the age group of 16-24 went for good. Poor and average were
comparatively less.

Q6 How does you like the service delivery process of

McDonald?

Impressiv Poor
e 8%
Average
25%
12%

Quick
55%

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Interpretation
The customers were asked about the service delivery process. Most of them
found it to be quick. Age group of 30-35 voted for average and the ratio of poor
was very less.

Q7 what about the cleanliness at McDonald?

Not
Very Clean
Clean 5%
20%
Average
23%

Clean
52%

Interpretation

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The cleanliness of the outlet was rated by the sample. The majority rated it as
clean, but some part of the sample found it average. The cleanliness pertained to
both the dinning as well as the processing area. The washroom was not taken part
of it because the washroom is not a part of the outlet but of the plaza.

Q8 How is the design of the outlet?

Bad
Perfect
12%
20%

Average
30%

Good
38%

Interpretation

The design of the outlet is not standardized. It varies from place to place but the
inner decoration or the layout is almost or 70% the same. They expressed their

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views by saying it as ‘stylo’ outlet and but it did not find it convenient to the
storey concept as the order had to be taken from the downstairs and then carried
it to the top floor.

Q9 what is the main problem you faced at McDonald’s?

Long
Queues
24%
No
Problem
40%

Congesti
on
16%
Other
20%

Interpretation

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The customers were asked if any problem was faced by them. They said
 Availability of space especially at the weekends.
 Non compliance with the 3-minute reprocessing of the order.
 Repetition of the order more than twice on some occasions.
 Crowded
 Going downstairs again for placing any more order

Q10 what area do you think needs the most Improvement?

Delivery
Others time
11% 10%

Capaciou
sness
20%
Price
31%

Product
Variety
28%

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Interpretation

The customers were in the end asked if they want any improvement in any area.
The overall ratings were given and various results came as they need reduction in
prices and want a more capacious area. Product variety should also be increased.

Conclusions and Recommendations

Conclusions
Fast food restaurant is that part of service industry which is ‘balanced’ i.e. the
dominance of tangibles and intangibles is equally divided. In this industry it is
more of people processing i.e. it is directed at the people and the nature is that of
a tangible act. Mc Donald’s employs a cold chain system.

The above analysis clearly lay out in detail the components of the service
experience offered by the MC Donald’s to the consumers and the impact of the
same on the consumers. Service experience is not only what you get when you
arrive at the place but also what happens when you think about it and what your
thoughts are when you leave for the outlet. The outlets following the franchise
way gives the service experience in the standardized way but as the inherent
quality of variability surrounds every service rendered hence the views and the
experience also differs. Hence, the overall ratings define clearly the same. The
Servuction model is another tool to understand the impact of the customers of
the various factors i.e. service experience rendered by the MC Donald’s. the
model has helped depict what are the various influencing factors and the data

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tabulation reveals the impact of the same. The service organization has been
successful in positioning itself as the affluent, westernized teenager, modern,
upscale family, possibly driven by children who enjoy the feeling of eating at the
Mc Donald’s. Hence, the Mc Donald’s can ensure that its consumers are saying –
“I’ m lovin’ it”.

Recommendations

 Membership participation of the consumers- the Mc Donald’s follows

formal relationship but doesn’t involve its customers for further

association. The membership clubs or helping the Mc Donald’s
members (through some enrolment process) on some issues or
topics e.g. - Backpacking or Trekking etc.

 Television sets to be placed appropriately- the television sets are

placed at the outlet in an inappropriate manner. The upstairs 2
television sets are not placed in a manner in which all consumers
can have a good look at it from different places.

 Water Availability- The water availability at the store should be

made. Right now they provide with a small glass of water and that
also after asking for the same twice. This may be due to the fact
that beverages should be sold and if water is provided for free it
may lead to non- purchase of the beverages.

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 Space between the Counters- there isn’t any clear cut division
between the three counters hence when the order takers ask the
customer to step to their left after placing the order, their no
actual space to shift to the left at the first two counters. Hence
the counters should be placed in a way that they are equally
spaced and have enough gaps amongst themselves.

 Storey story- the store concept has really leaded to the dampening
of the rating of the design of the outlet. As the plaza opens up,
the outlet should adequately cover up for this dampener.

 Menu Prices- The price displayed should be reviewed accordingly

and the revised prices should be stated at the display.

 Salads- Mc Donald’s has introduced the salads concept in various

other countries but not yet in India. Seeing the growth of health
conscious generation salads should be introduced in the menu
card of India too.

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 Annexure
Bibliography
BOOKS

 Hoffman k. Douglas, Bateson John E.G., Marketing of Services, 2006, Cengage learning
products, New Delhi 2008.

 Rajendra Nargundkar, Service Marketing- Text and Cases, 2nd edn, McGraw Hill
Companies, New Delhi 2008.

 Cooper, Robert G. and Scott J. Edgett (1999), Product Development for the Service
Sector:Lessons for Market Leaders. Cambridge, MA: Perseus Books.

 Kurtz, David L. and Kenneth E. Clow (1998), Services Marketing. New York: John
Wiley & Sons.

WEBSITES

 http://www.slideshare.net/kriskate/extended-marketing-mix

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 http://www.oppapers.com/essays/Macdonald-The-Marketing-Mix/212438

 http://www.scribd.com/doc/13212962/extendedmarketingmix12344285948016601?
autodown=ppt

 http://www.oppapers.com/essays/Service-Marketing-Pizza-Hut/160111

 http://www.slideshare.net/kriskate/extended-marketing-mix

 http://www.oppapers.com/essays/Macdonald-The-Marketing-Mix/212438

 http://www.oppapers.com/essays/Service-Marketing-Pizza-Hut/160111

 http://www.rocw.raifoundation.org/management/mba/brand-manag/lecture-notes/lecture-
21.pdf

 www.wikipedia.com

 www.economictimes.indiatimes.com

 www.mcdonaldsindia.com

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