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LITERATURE REVIEW
“Celebrate! McDonald’s is Dying!” it detailed the many, many woes the fast “food” giant was
dealing with at the time, including:
• The first quarterly loss in the firm’s 38 years as a publicly traded company ($343.8 million).
• Its first full-year loss ($186 million) in Japan in 11 years.
• A 58 cent per share drop on the back of a global comparable sales drop of 3.3%.
From that point forward, McDonald's has been experiencing a broad "rebuilding" that
incorporates not just restorative changes ("All-day breakfasts and new esteem menus for
everybody!") except off camera endeavors to trim $500 million from the organization's
working costs. Simply take a gander at the stray pieces of the Q3 2016 profit report: Year-on-
year income is down 2.9% and net pay is down 2.6%. Also, remember; those numbers are in
contrast with the effectively appalling 2015 figures. Furthermore, now the most recent
indication of McDonald's worldwide withdraws (by means of Corbett Report part "Buddha
Force"): "McDonald's surrenders control of its China business in $2 billion arrangement."
Be that as it may, concerning what this story says in regards to the proceeding with decrease
of the once-relentless brilliant curves, there are two primary takeaways to the story, one
discouraging and one positive. On the discouraging front, there is a straightforward explanation
behind the in all cases lull in cheap food deals lately. Yet, on a positive note, we can accept
McDonald's burdens as a sign that, attempt as they may with their extensive purposeful
publicity assets. Individuals are tired of junk food. What's more, albeit a few, worried about
expense, are swinging to eat at home as the less expensive alternative, others are more worried
about what's in their nourishment, where it's sourced from, how it's being readied and who is
being paid for it.
From "McDonald's Struggles to Repeat Success of All-Day Breakfast Launch" By
JOHN KELL, January 23, 2017, we found that, a year back, McDonald's was lounging
in the radiance of a fruitful throughout the day breakfast dispatch that supported deals
at the drive-thru food purveyor's U.S. eateries. That clever move is turning into
somewhat of a weight from the get-go in 2017. McDonald's (MCD, +0.64%) first
appeared it’s throughout the day breakfast menu in October 2015 and a quick deals
shock helped support deals in the U.S. In the final quarter of 2015, equivalent deals
expanded 5.7%—the best quarter McDonald's had announced in almost four years. All
through the majority of 2016, deals kept on murmuring along easily as throughout the
day breakfast tricked clients.

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According to the Analysis of McDonald's Sales Decline | 2015, Published: Tue, 21 Aug 2018,
the association detailed income of $33 billion of every 2014 and has more than 400,000
workers around the world (McDonald's Annual Report, 2014). As an association the firm works
more than 36,000 outlets. Before proceeding onward, it should be featured that while
McDonald's works with a worldwide 'menu'. McDonald's is a notable drive-thru food mark in
the world. It works at more than 3000 areas and has seen development in the course of the last
multiyear (McDonald's Annual Report, 2014). In any case, as of late, McDonald's over the
globe and in India featured a reliable decrease in deals. Research directed by Long et al (2014)
states that one of the real reasons with respect to why there is a sharp decrease in drive-thru
food utilization is weight. This is one of the central points that have affected the McDonald's
piece of the pie and declining deals. Bernhardt et al (2012) express that a normal India
individual is presently 4 times more aware of what they are eating from a wellbeing perspective.
This plainly features clients currently tend to search for solid nourishment choices, which
directly affects the deals and income of McDonald's. McDonald menu has not changed in the
course of recent years, and this directly affects the purchasers and how they see a firm from an
advancement and also an improvement perspective. Kotler and Keller (2012) feature that the
coming of internet-based life implies free data stream over the market. McDonald's is
frequently named as the junk food chain that just thinks about income and not about customer
wellbeing, and web-based life has spread this angle on a vast scale. (Neilan, 2014) This
subsequently impacts the shopper purchasing conduct and adversely impacts the offers of
McDonald's in the showcase.
The past area of the report unmistakably featured numerous components that should be
considered by McDonald's with the end goal to enhance its present circumstance in the
showcase. Keeping the dialog in setting, it is important that reasonable suggestions for the
business are produced with the end goal to enhance the business execution of the association.
With the end goal to build up another model and to enhance the general position of the
association in the market, it is prescribed that McDonald's dispatches another product offering
called 'McDonald's Health!'
The Economist C.R. clarifies, Why McDonald's deals are falling in the year Jan fourteenth
2015 that, MCDONALD'S eateries remain among American free enterprise's most prominent
examples of overcoming adversity. It has been beneficial: after an unstable period in the mid-
2000s, the association's offer cost went from $12 in 2003 to more than $100 toward the finish
of 2011. Yet, now McDonald's has lost its sizzle. Worldwide deals have been declining since
in any event last July.

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SURVEY REPORT

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INTRODUCTION
The point of this report is to examine the present circumstance of McDonalds as an association
in the showcase and to assess their present deals decrease. The essential center is to give a
definite examination of the association and its situation in the showcase, building up a
connection between declining deals and the general move in purchaser conduct. The report at
first gives a diagram of McDonalds as an association. This is trailed by a definite assessment
of the company's current position in the market which interfaces back to why deals are
declining for the firm and what are the main drivers for this in the business. This is trailed by
a proposals area which builds up a ground up technique for the association to enhance its
execution in the showcase.
McDonald's Corporation since it begins in 1955 has remained reliably also known brand name
around the world. With the end goal to accomplish this status, the organization has utilized
showcasing systems that have secured each part of the business and social world. From
promoting and contenders to advertising and philanthropy, McDonald's has an objective and
for what they need to accomplish and has discovered methods for accomplishing those
objectives. All through this paper you will discover portrayals of how McDonald's utilized the
four P's of advertising with the end goal to make an effective and surely understood overall
organization.

INTRODUCTION OF MCDONALD’S
McDonald's drive-thru food eatery is one of the biggest establishments in the United States and
in addition on board. Their best menu things include: ground sirloin sandwiches,
cheeseburgers, McNuggets, and French fries. They are additionally known for one of their
prevalent treats: the crusty fruit-filled treat and their breakfast sandwich: The Egg McMuffin.
There are in excess of 32,000 McDonald's eateries serving in 117 nations. Over 75% of
McDonald's eateries worldwide are claimed and worked by autonomous proprietors.
McDonald's has a few moral and social duty arrangements set up all through their exclusively
possessed and diversified organizations. These arrangements incorporate putting the client
involvement with the center of what they do, focusing on their workers by supporting their
ability and compensating their accomplishments, keeping up exclusive requirements in regards
to the direct for business, and offering back to the networks in which they are built up. These
qualities are invaded through all levels of the organization, which keeps McDonald's
flourishing as a fruitful junk food chain eatery.

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Risk management is basic to McDonald's. They have a hazard evaluation instrument that they
use to decide the nation chance: which relates to the particular nation/district they are situated
in; industry chance: relates to provisions create; and office chance: or, in other words of both
nation and hazard foundation. These variables are all piece of the hazard appraisal device that
is utilized in every one of their organizations to assist them with hazard administration.
McDonald's utilization these surveillance cameras additionally concerning laborers pay cases
or risk claim claims from buyers. McDonald's additionally screens their PC programming
frameworks with an ACS framework that screens the innovative variables of their business.
Our vision & values
Our corporate values appear in everyday working life and guide our deliberate direction and
corporate development.
• We place the customer experience at the core of all we do
• We are committed to our people
• We believe in the McDonald’s System
• We operate our business ethically
• We give back to our communities
• We grow our business profitably
• We strive continually to improve
Meet the Suppliers
Macca’s supply chain is unique. Our supply chain model is based on a culture of partnership
and association which makes it possible for us to serve constantly safe and high-quality food.
It is important to us that our suppliers operate sustainable and profitable businesses and benefit
from their enterprise with McDonald’s Australia. It is equally important to us that we source
our products in a responsible and ethical manner that contributes to the progress of sustainable
agriculture and food manufacturing processes.
Within our supply chain we consider that we have tasks to our suppliers and the public in three
key areas:
• Economic
• Ethical
• Environmental
Economic
In an average year McDonald’s employs more than $650 million on Australian produce.
This includes purchasing an average of:

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• More than 430 million buns

• 100 million kilograms of potatoes
• More than 25 million kilograms of beef
• 5 million kilograms of cheese
• More than 13 million kilograms of chicken
• 57 million litres of fresh milk
• 5.6 million kilograms of lettuce
McDonald’s does not own any businesses that supply to us and we have long term relations in
home with many of our suppliers, for example, we have been working with Ingham for over
25 years.
Ethical
We know that our impact in the market place brings with it a responsibility to ask for more
than quality and price. As well as our environmental strategies for suppliers, we have
procedures and programs in place in relation to social responsibility and animal well-being.
• The foundation of our social responsibility dealer program is our global Code of
Conduct for Suppliers which summaries McDonald’s minimum requirements in the areas of
employment and workplace observes. The aim of this program is to protect the health, safety
and human rights of workers and audits are frequently conducted in Australia to ensure
suppliers are meeting our social responsibility potentials.
Environmental
We work with all our suppliers to assist them to provide us with a nonstop, long term supply
of quality food and packaging in a way that diminishes our influence on the environment. We
also encourage the protection of resources that our suppliers share with the societies in which
they work. Our major consumer packaging suppliers also contribute in this scorecard. Some of
our suppliers have made substantial improvements to their business operations and have been
recognized for this in Australia and internationally.
Some of McDonald’s most important supply partners in Australia include:
• OSI – beef, chicken products and fish;
• Martin Brower - distribution;
• Australian Food Corporation – beef;
• Inghams Enterprises – chicken products;
• Simplot – fries and hash browns;
• McCain – fries and hash browns;
• ARYZTA – buns, English muffins, hotcakes, McCafe cakes;

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HISTORY
McDonald's initially begun as a little cheeseburger remain in Bernardino, California,
possessed by Dick and Mac McDonald. With assurance to improve their business Dick and
Mac shut their business for three months and re-opened December 1948 as a self-benefit
drive-in eatery, serving just nine things: burger, cheeseburger, potato chips, drain, espresso,
and cuts of pie.
1940: Dick and Mac McDonald open McDonald's Bar-B-Q eatery on Fourteenth and E
avenues in San Bernardino, California. It is a normal drive-in including an expansive menu
and auto jump benefit.
1948: The McDonald siblings close down their eatery for three months for modifications. In
December it revives as a self-benefit drive-in eatery. The menu is diminished to nine things:
burger, cheeseburger, soda pops, drain, espresso, potato chips and a cut of pie. The staple of
the menu is the 15-penny ground sirloin sandwich.
1949: French Fries supplant potato chips and introduction Triple Thick Milkshakes on the
McDonald's menu.
1954: Multimixer businessperson Ray Kroc visits McDonald's in San Bernardino proposing
to offer the siblings more Multimixers. The 52-year-old Kroc is interested by the task. He
gains from the siblings that they are searching for an across the nation diversifying operator.
He has a revelation and is resolved that his future would be in ground sirloin sandwiches.
1955: Kroc opens his first McDonald's in Des Plaines, Illinois on April 15. The enticing red
and white tiled working with the Golden Arches was planned by engineer Stanley Meston in
1953. First day deals are $366.12.
1956: Fred Turner, future McDonald's Chairman is contracted to fill in as a counter man for
the Des Plaines McDonald's. He would before long turn into the leader of McDonald's
Operations characterizing the quality, administration and neatness that proceed right up 'til
the present time
1961: Hamburger University opens in the storm cellar of the Elk Grove Village, Illinois,
McDonald's eatery. Graduates get Bachelor of Hamburgerology degrees.
1965: The Filet-O-Fish sandwich was the main thing added to the national menu. Made by
Lou Groen, McDonald's Cincinnati franchisee to help fabricate volume in the predominately
Roman Catholic people group in which his store was found.
1968: The Big Mac, created by Owner/Operator Jim Delligatti of Pittsburgh, is added to the
national menu.

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1973: The Quarter Pounder and the Quarter Pounder with Cheese are added to the menu.
1974: The principal Ronald McDonald House opens in Philadelphia, Pennsylvania. In 1973,
Fred Hill, a football player with the Philadelphia Eagles, had the requirement for such an
office at Children's Hospital in Philadelphia, where his tyke was being treated for leukemia.
Slope's problem prompted the principal Ronald McDonald House.
1975: The Egg McMuffin, made by Owner/Operator Herb Peterson of Santa Barbara,
California is added to the national menu.
1983: Chicken McNuggets are brought into all residential U.S. eateries.
1984: Ray Kroc, Founder and Senior Chairman of the Board of McDonald's Corporation,
passes on January 14.
1990: On January 31, the principal McDonald's eatery in Moscow opens. Situated in Pushkin
Square, in excess of 30,000 clients were served on opening day!
1993: The world's first McCafe' opens in Melbourne, Victoria Australia.
1995: Mc'Flurry Desserts, concocted by Ron McLellan, O/O Canada are added to
McDonald's Canada menu.
2002: McDonald's distributed its first since forever Social Responsibility Report on April 15,
2002.
2003: McDonald's first worldwide advertisement crusade, "I'm Lovin' It" is propelled in
Munich, Germany on September 2.
2015: McDonald's USA propelled All Day Breakfast.
2017: Global Mc'Delivery Day is praised on July 26 to help the worldwide dispatch of
Mc'Delivery with UberEATS.

PRODUCT LINE
McDonald's is one of the world's largest fast food chains, founded in 1940 in San Bernardino,
USA and incorporated in Des Plaines, Illinois in 1955. Since then, McDonald's has become a
domestic name in American households, known for selling a variety of suitability food items
at thousands of locations worldwide. Throughout its history, McDonald's has investigated with
a number of different gifts on the menu.
Hamburgers
McDonald's beef patties are seasoned with salt and ground pepper. This list is based on core
menu items in the United States, with some additions from global products.

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• Hamburger (formerly known as the Junior Burger in some countries) and cheeseburger. It
is also sold as a double or triple burger. The hamburger and cheeseburger are the company's
original grilled burger offerings, having been served as part of the 1948 menu.
• Big Mac – a signature product that was introduced in 1967. The Grand Mac, its bigger-
sized counterpart, was added in January 2017.
• Double Cheeseburger – The double cheeseburger
was offered as a promotional item in the 1950s and was
added to the regular menu in 1965, though many
McDonald's restaurants did not list it on their menu
boards.
• McDouble – similar to a Double Cheeseburger but with just one slice of cheese.
Reintroduced as a permanent dollar-menu item in December 2008 – had been a short-term
product in 1997, advertised with "Eddie the Echo".
• McFeast – The name McFeast lives on though in Scandinavian countries, where a McFeast
has been served since the mid-1980s in Sweden and was later introduced to the rest of the
Nordic countries. The McFeast Deluxe was sold in Australia until the late 1990s.
• Ranger Burger and Super Ranger.
• McSpicy Burger – a very spicy chicken breast, lettuce, cheese and hot sauce-laced mayo,
served as the McSpicy Shake Shake Meal, complete with fries.
• Triple Cheeseburger – similar to the Double Cheeseburger, was added to the Dollar Menu
in December 2014.
Chicken
• McChicken –A full-size version was introduced in 1980, later removed, and reintroduced
in 1988. The larger sandwich was replaced with the Crispy Chicken Deluxe in 1996, and
brought back in 1998 in the current smaller size, and marketed as the Cajun (Style)
McChicken.
• Premium chicken sandwiches – The Premium chicken line was added in July 2005. In the
first week of April 2015, McDonald's replaced the Premium Grilled Chicken sandwich with
the Artisan Grilled Chicken.
• Premium Chicken McWrap – in 2013, McDonald's in the U.S. introduced a larger wrap
that it has had success with in parts of Europe.
• Chicken McNuggets – introduced in 1983 as a replacement for the McChicken.

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• Grilled Chicken Deluxe – It has been sold under various names since 1996. It was replaced
with a Premium chicken sandwich in July 2005, which was in turn replaced with the Artisan
Grilled Chicken in 2015.
• Maharaja Mac – It has created a large Big Mac style chicken burger called the "Chicken
Maharaja Mac", with a chicken patty and vegetable garnishing.
Fish
• Filet-O-Fish – The Fish Filet Deluxe in 1996 and brought back in 1998 albeit with a larger
fish patty.
• Fish McBites –They were taken off the menu at the end of March 2013.
Sauces
• Signature Sauce
• Creamy Ranch Sauce
• Habanero Ranch Sauce
• Honey
• Hot Mustard Sauce
• Honey Mustard Sauce
• Sweet 'N Sour Sauce
• Tangy Barbecue Sauce
• Ketchup
• Mustard
• Mayonnaise
• Szechuan Sauce (Rare)
• Tartar Sauce
Other products
• McDonald's introduced salads to its menu in 1987. Since that time, they have restructured
their salad lines several times. In the U.S., the newest salad offerings are part of
the McDonald's Premium line. First introduced in 2003, the Premium Salads are a mixture
of iceberg lettuce and a special lettuce assortment (romaine, etc.), with cherry tomatoes and
different toppings to differentiate them; additionally, all salads can be topped with warm
grilled or crispy chicken. All of its salads are part of McDonald's move towards creating a
healthier image.
• The Happy Meal/Mighty Kids Meal – McDonald's capitalized on Burger Chef's Fun
meal concept of a children's meal when it introduced the first Happy Meal in 1979. The

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meal includes an entrée, a side dish, a beverage and a toy. The Mighty Kids Meal contains
more food than the Happy Meal, less than the adult meal, and still contains a toy.
The toy is usually a product tie-in with a movie or popular television show.
In mid-February 2012, McDonald's introduced the Happy Meals/Mighty Kids Meals so that
they now come with either a Hamburger, Cheeseburger, 4-piece Chicken McNuggets,
McDouble or the 6-piece Chicken McNuggets with a smaller version of the small fry for the
Happy Meal or a small fry for a Mighty Kids Meal. All kids’ meals now come with fries, apple
slices, and a toy.
▪ McDonald's line of larger chicken sandwiches (The Classic, Club, Ranch BLT, and
Southwest), which are part of the McDonald's Premium line were introduced in July
2005 as part of McDonald's menu revamp.
McDonald's McFries- McDonald's sells french fries as its
primary side order. Until 1967, McFries were never
frozen, but were cut on-site from potatoes and
immediately fried. In some international locations, they
sell potato wedges, a type of French fry that is thick cut
and wedge-shaped and fried onion pieces that are similar to onion rings.
▪ McLobster – Recently, it was only available in Atlantic Canada and New
England region in the summer, when lobster is inexpensive. In the 2010s, McDonald's
had short-term reintroductions in Canada and Italy.
▪ McRice – Most McDonald's restaurants in countries in Asia serve the product due to
popular demand. It is normal rice.
▪ McSpaghetti – was launched in the late 1970s as a part of McD's dinner menu which
included a number of Italian dishes.
▪ The McVeggie burger – a vegetarian burger on a whole wheat bun. Available in India,
Slovenia, Greece, Malaysia, and Portugal.
▪ Veggie Clubhouse - first sandwich with a quinoa patties.
▪ The menu in India has numerous unique items, all of which contain neither beef nor
pork:
• Maharaja Mac
• Paneer Salsa Wrap (paneer is an Indian unsalted white cheese).
• Chicken Mexican Wrap
• McAloo Tikki The cheeseburger is recast as a vegetarian option and served as
an "Aaloo Tikki Burger" containing a potato patty and a slice of cheese.

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▪ Garlic fries were tested in the San Francisco Bay Area in 2016, using locally grown
garlic from Gilroy, California
▪ Veggie Crunch Burger - The vegetarian burger was launched in the Singapore market
on September 6, 2016. The burger has received good reviews.
Breakfast
▪ McDonald's introduced breakfast foods in 1972.
An Egg McMuffin- McMuffins are McDonald's
signature breakfast sandwich. First sold at select
restaurants in 1972 as the Egg McMuffin.
▪ Additional breakfast items include hotcakes; a
platter known as a Big Breakfast comes with scrambled
eggs, a hash brown, sausage or bacon, and a biscuit or
English muffin. Biscuits and gravy are available in parts of the southern U.S.
▪ Oatmeal was added to the breakfast menu on December 27, 2010, after it test-marketed
well in Washington, D.C. and some parts of Maryland.
Beverages
▪ Beverages purveyed by McDonald's varies regionally.
▪ McDonald's primary soft drink supplier is The Coca-Cola Company, except in
restaurants which fall under an overall contract with PepsiCo such as the Staples
Center and the University of Maryland, College Park Student Union.
▪ Hot and iced tea (supplied by S&D Coffee in the U.S.), hot chocolate,
assorted juices and other regional beverages are available in various markets.
▪ The McCafe is an umbrella term for lattes, espresso, iced coffee, hot
chocolate, mocha, malts, smoothies, and other drinks that are sold in several markets
worldwide.
▪ Shakes are available in all U.S. McDonald's and many global markets Permanent
flavors are vanilla, strawberry, and chocolate; regional or seasonal flavors include
Caramel, Coffee, Cherry, Eggnog (during Christmas), Banana etc.
▪ McDonald's also offers 1% milk, 1% chocolate milk, and apple juice, most often as
replacements for fountain drinks in Happy Meals.

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Desserts
McDonald's apple pies- Pies were introduced in 1968,
and were exclusively deep-fried until 1992, when they
were replaced by baked pies in most of the American
market.

A soft serve ice cream product is available in several forms, including sundaes, cones (either
vanilla or chocolate), and as the primary ingredient in the McFlurry.

▪ Freshly baked cookies manufactured by Nestlé are available in some markets. Among
the cookies offered are sugar, oatmeal raisin, or chocolate chip.
▪ Cinnamon Melts – a popular cinnamon roll type item with cream cheese icing.
▪ Brownie melts – Similar to the Cinnamon melt, only chocolate flavored with fudge.
Available only in selected markets.
▪ Smoothies are available in some locations in either Blueberry Pomegranate, Strawberry
Banana, or Mango-Pineapple flavors. In the test market areas, smoothies were
introduced in 2009.

MCDONALD’S IN INDIA
Locally Owned Company: McDonald's is the world's ruling food service retailer with over
40,000 restaurants in 119 countries serving more than 70 million consumers each day. In India,
McDonald's is a joint-venture company. Completing more than 12 years of leadership in food
service retailing in India, McDonald’s has a network of more than 165 restaurants across the
country. Before the launch, the company infused four years in developing its distinctive cold
chain, which has evolved a genuine outbreak in food handling, which gained the farmers and
enabling consumers to get the good quality food products, fresh and at a higher value.
Native resourcing: McDonald's India is devoted to distribute all of its products within the
country. It has developed Indian trading operations, which can provide them the good quality
products required for their Indian workings. Fresh lettuce is procured from Pune, Delhi, fresh
buns from Mrs. Bector Foods, Phillaur, Punjab & Khopoli, Maharashtra; sauce from Mrs.
Bector Foods, Phillaur, Punjab, Chicken Patties, Dairy Products are obtained from Amrit Food,
Ghaziabad. Our distributors are certified with HACCP.
Respect for the Indian Customs and Culture: McDonald's is known for the high degree of
respect to the native culture. McDonald's had advanced a completely new menu especially for

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India with vegetarian items to suit Indian tastes and culture. In line with its respect for local
culture, India is the first country where McDonald’s does not have products containing beef or
pork. McDonald's has also worked out its operations to accost the special requirements of
vegetarian. The vegetable products are cooked separately, using good quality equipment and
utensils. The separation of vegetarian and non-vegetarian food products is maintained during
the different stages of procurement, cooking and serving. The mayonnaise and the soft serve
are purely vegetarian. Vegetable oil is used as a cooking source in India.
An Employer of Opportunity: McDonald's India is a master of opportunities, providing
quality employment and long-term careers to the Indian people. A mediocre McDonald's
restaurant employs 60-80 people from crew to restaurant manager. McDonald's world class-
training inputs to its employees can be seen in the present close to 8000 employees currently
in India.
Quality, Service, Cleanliness & Value: The USP of McDonald’s is quality, service,
cleanliness & value for money which means they focus on supplying customers high quality
products, served quickly with a smile, in a clean and pleasant environment at a reasonable
price. The McDonald's philosophy of QSC&V is the driving force behind its service to the
customers. McDonald’s menu is priced at a value that has largest segment of the Indian
consumers can afford. McDonald’s does not sacrifice quality – rather McDonald’s clout
economies to minimize costs while maximizing value to customers.
Community Partnership: McDonald's considers in giving back to the community it serves.
Wherever McDonald's reaches, it forms a part of the community it operates in and contributes
towards the creation of the locality. For example, McDonald's has popularized the concept of
‘Litter Patrols’ – McDonald's employees go around the market, picking up garbage left behind
not only by customers from McDonald's restaurants but also by other visitors in the area. This
results a clean neighborhood.
STRATEGIES IN INDIA
In order to finance on the highly price sensitive economy, McDonald’s strategy was market
penetration and the three circles strategy. This led to centralization and branding of the
company. The induction of almost all the international brands into India happened at the same
time, while different market conditions resulted in shut down of brands. McDonald’s sustained
only due to clear concept of the Indian economy.
Today McDonald’s has become a household name and finds its rotund in almost every schools
colleges and corporate. It can be concluded that there is no food court without a McDonald’s
and almost every Indian has tried McDonald’s fast food. This is indeed a great breakthrough

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for a very orthodox community that has rigid and fixed eating habits and conventionally very
Indian.
McDonald’s had to clarify to the authorities that their products in India doesn’t contain beef or
pork in it. They had to match their burgers to Indian taste and Indian market which is a hyper
price sensitive market. The introduction of breakfast combos and budget meals contributed in
market penetration. “Aloo Tikki Burger” was McDonald’s priced product in India. Their quick
turnaround times made new roads into the fast food industry. As adding value to the customer
is the key, price sensitivity studies are overseen before determining the pricing. The rate of
inflation is also rechecked
THE ENVIRONMENTAL FACTORS IN INDIA
As India being an exceptionally old nation and one of the terrains of the antiquated stream
valley civic establishments, McDonald's needed to consider the social, financial and
sociopolitical factors in India. The Indian populace is exceptionally various and mind boggling
as country is part between various networks, religions (e.g. Hinduism, Buddhism, Sikhism,
Islam, Jainism and Christianity), convictions and esteem frameworks. Every one of these
elements assume a noteworthy job in countries' inclination for nourishment and eating all in
all. 80% of the whole populace of India hone Hindu which restricts non-veggie lover
nourishment. Along these lines, McDonald's at first just offered a veggie lover menu. Later
they comprehended this wasn't the right methodology. To respect the social contrasts between
religions, the organization ordered the cooking devices and workers in veggie lover and non-
vegan classification. The social factor must be contemplated in such market, as any exclusion
can wreck the notoriety all-inclusive which may confine the odds of business extension. The
adjustment in menu came likewise due to contenders like KFC, whom entered the market first
with non-vegan items. McDonald's figured an appropriate estimating system that can
encourage the high volume of purchasers, focusing on for the most part the lower and white-
collar class. Most of the Indian populace falls into this classification.
MARKET SHARE OF MCDONALD’S IN INDIA
The market in India is totally different from that of the USA. Here the family dining concept
works. This led to concept of breakfast combos. The restaurant was also projected this as a fine
dining restaurant. This became the USP of McDonald’s in India. The television commercials
of ‘Toh Aaj McDonald’s Ho Jaye’ and ‘McDonald’s Mein Hai Kuch Baat’ and the happy price
menu is what attracts Indian people to McDonald’s. The new advertising of prices of the
Yesteryears, attracted the teenager crowd too.

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DEVELOPING THE SUPPLY CHAIN

World over, McDonald’s believed in development of close relationships with suppliers and
this is precisely what it has done in India. In the process, McDonald’s actually encouraged
entrepreneurship, by introducing the local suppliers to its global suppliers. This association
involved transfer of state-of the-art food processing technology, thereby leading to an
improvement in quality standards and helping create world class manufacturing facilities in
India. This was the first step towards creating the unique ‘cold chain’.
BUILDING THE BRAND
McDonald's had situated its eatery as a family eatery that banned smoking and in addition
serving of liquor on its eatery. Around the same time, the organization broadcast its 1V business
for the Rs. 7/ - delicate serve cone crusade, along these lines setting up the offer of the
organization. In any case, this exploration showed that the general population are unconscious
of the nature of sustenance served by the McDonald's. This had prompted formation of the
promoting effort by the organization which began its emphasis on acquainting clients with the
nature of nourishment served at McDonald's. Shopper examine had likewise pointed that an
extensive blend of contributions was required in the veggie lover menu of McDonald and the
organization deliberately tended to this need of its clients. The organization had additionally
turned out to be mindful of the way that eating out, however picking up recurrence was still
fundamentally a family issue. Subsequently, it was ascribed principally to night times and ends
of the week. The 'Upbeat Price Menu' had come nearer on the foot sole areas of the promoting
activity by the organization "I’m lovin' it" which McDonalds had propelled in October 2003.
The correspondence about this new offering was astounding and amusing and tells that
McDonald's is by and large an incredible place, and under the most favorable conditions cost
– which confined not exclusively to its item, yet in addition the experience. In the meantime,
it plans to make the administration bother free and simple to utilize.

MARKETING MIX
McDonald’s product mix
As a food service business, McDonald’s has a product mix composed mainly of food and
beverage products. This element of the marketing mix covers the various organizational outputs
(goods and services) that the company provides to its target markets. Among the 4Ps, products
are a fundamental determinant of McDonald’s brand and corporate image. The company is

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primarily known for its burgers. However, the business gradually expands its product mix. At
present, customers can purchase other products like chicken and fish, desserts, and breakfast
meals. McDonald’s generic strategy and intensive growth strategies influence the product lines
included in this element of the marketing mix.
Place/Distribution
This element of the marketing mix enumerates the venues or locations where products are
offered and where customers can access them. Restaurants are the most prominent places where
the company’s products are distributed. However, the business utilizes various places as part
of this 4P variable. The main places through which McDonald’s distributes its products are as
follows:
▪ Restaurants
▪ Kiosks
▪ McDonald’s mobile apps
▪ Postmates website and app, and others
McDonald’s restaurants are where the company generates most of its sales revenues. Some of
these restaurants also manage kiosks to sell a limited selection of products, such as sundae and
other desserts. Some kiosks are temporary, as in the cases of kiosks used in professional sports
competitions and other seasonal events. This element of McDonald’s marketing mix also
involves the company’s mobile apps. These virtual places are where customers can access
information about the company’s products and buy these products.
For example, the company’s mobile apps for iOS and Android let customers claim special
deals, find restaurant locations, place orders, and pay for such orders involving participating
McDonald’s restaurants.
Promotion (Promotional Mix)
This element of the marketing mix defines the tactics that the business uses to communicate
with customers. Among the 4Ps, this variable focuses on marketing communications with
target customers. For example, the company provides new information to persuade consumers
to purchase new products. McDonald’s uses the following tactics in its promotional mix,
arranged according to significance in the business:
▪ Advertising (most significant)
▪ Sales promotions
▪ Public relations
▪ Direct marketing

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Advertisements are the most notable among McDonald’s promotion tactics. The corporation
uses TV, radio, print media and online media for its advertisements. On the other hand, sales
promotions are used to draw more customers to the company’s restaurants. For example,
McDonald’s offers discount coupons and freebies for certain products and product bundles, as
a way of attracting more consumers. In addition, the company’s public relations activities help
promote the business to the target market through goodwill and brand strengthening.
In India its burgers do not contain beef and they have divided its kitchen into Vegetarian and
Non-Vegetarian zones. It wanted to focus on volume sales at a low price. Currently McDonalds
uses “I’m Lovin it” branding campaign that was created by Heye and Partner.
Prices and Pricing Strategies
This element of the marketing mix specifies the price points and price ranges of the company’s
food and beverage products. The aim is to use prices to maximize profit margins and sales
volume. McDonald’s uses a combination of the following pricing strategies:
▪ Bundle pricing strategy
▪ Psychological pricing strategy
In the bundle pricing strategy, McDonald’s offers meals and other product bundles for prices
that are discounted, compared to purchasing each item separately. For example, customers can
purchase a Happy Meal or an Extra Value Meal to optimize cost and product value.
This pricing strategy helps encourage consumers to purchase the company’s products based on
perceived affordability. Thus, this element of McDonald’s marketing mix highlights the
importance of bundle pricing and psychological pricing to encourage customers to buy more
products. McDonalds involves various price bundling strategies that offer bundling products
with meals and other products for customers.
As part of the promotional pricing strategy, McDonalds offer discounts or bundling on certain
products and combination of different menu items as packed together. Their pricing strategy is
also adapted to tap the lower middle section of the society. McDonalds’ target customers are
mostly young teenagers who wish are brand conscious and want convenience.
People
McDonalds has a unique way of addressing its customers, and also treats its employees very
well. The employees working at McDonalds have a dress code to follow and the company
emphasizes on its employees to be customer friendly, cheering and have affection for people.
The service delivery of McDonalds is given priority and customer satisfaction is of utmost
importance. Employees are given ratings based on their performance and they are encouraged
to take a large part in decision-making process. Hygiene is of utmost importance followed by

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quality and service. Each McDonalds outlet has a restaurant manager who has the responsibility
to undertake the daily proceedings. Achieving customer satisfaction is the goal of the company.
Physical Evidence:
McDonalds leaves an everlasting good impression when it comes to physical evidence in its
marketing mix. The physical evidence creates a great impact in the minds of the consumer. The
attributes of physical evidence displayed are speed of service, quality and hygiene, cleanliness
and transparency of processes. Most McDonalds stores display brand colors and is a visible
cue of the brand they want to promote the feel that it is a family restaurant. In addition, smoking
is banned inside the restaurant with clear-labelled instructions.
McDonalds restaurants have a young, vibrant and family feel to all its restaurants worldwide,
self-service order counters, lively music in the background etc. McDonalds’ physical presence
is also enhanced by its recognizable yellow ‘M’ logo, McDonalds Happy Meal toys, burger
wrappers, ketchup sachets etc. The website of McDonalds is also very user friendly and has a
strong presence.
Process:
McDonalds over the years has improved the cooking methods and process used. It makes use
of the sophisticated equipment’s for food processing and new methods for food packaging and
distribution. McDonalds has invested in research to improve the processes and has automated
several processes. The entire distribution network is streamlined to suit McDonalds Values and
culture. The food manufacturing process is visible to customers. Apart from its, McDonalds
has excellent processes in quick service in restaurants by having less turnaround time, and has
a fast home delivery service. All these conclude the McDonalds marketing mix.
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. 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 analyses the internal marketing strengths of the organization. Strengths and
weaknesses must be identified, so that a marketing strategy which is right for the business can
be decided upon.

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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.

REASONS OF DECLINE
Let's explore some of the reasons for the rut that the fast food giant finds itself in at the moment.
1. Quality is a problem: McDonald's has been trying to upgrade the quality of its food, realizing
that fast casual chains that offer higher-end fare with the convenience of quick-service
restaurants are growing at its expense. Unfortunately, its reputation for having crummy food
even within its own category isn't going away. A Consumer Reports survey of more than 32,000
fast food fans ranked McDonald's dead last among 21 leading burger chains based on taste.
When's the last time an entrenched consumer brand dramatically reshaped consumer perception
of the quality of its grub? It won't be easy for McDonald's.
2. The growing menu is causing delays and prep mistakes: McDonald's is no longer just about
burgers and fries, but giving customers more choices also has its drawbacks. McDonald's
hosted a webcast with its franchisees last year, alerting them on growing number of customer
complaints about employee unfriendliness. What's making customers so unhappy? Industry
trade mag QSR puts out its Drive-Thru Performance Study every year, tracking transaction
speeds. Last year, it found that the average McDonald's customer's wait increased to more than
three minutes after placing an order to receive it. That's worse than the industry average, and a
personal worst for McDonald's.
Connect the dots, and it's easy to see why the more complicated menu at McDonald's is doing
more harm than good.
3. The world is no longer its oyster: It's been a rough go for McDonald's domestically, but it
was holding up relatively better overseas until this summer. August has offered a double
whammy of international setbacks as a supplier scare has decimated its traffic in China, while
Russian regulators shut down several locations on food safety concerns that may or may not
have had political motivations. In short, the same world that was once there for the taking is
starting to turn on McDonald's.

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4. McDonald's is being cast as "the bad guy": It's been a year since the Service Employees
International Union launched the Fight for 15 protests, trying to get fast food chains to boost
their minimum wage to $15. As the country's largest burger chain, McDonald's has become the
poster child for the campaign. The end result is that a lot of people think it's not just the food
that's cheap at McDonald's. It's not entirely fair. As big as McDonald's itself may be, 80% of
the restaurants are owned by independent franchisees working on leaner markups. However,
those siding with the union's push to roughly double wages at McDonald's may be avoiding the
chain on principle, even as most of its burger peers are holding up better in terms of comps.
5. Going back to basics may not be on the table: A common argument is that McDonald's just
needs to return to its simple roots and the Dollar Menu emphasis that served it so well in its
heyday. The problem is that it isn't likely to work. If McDonald's scrapped the fancy coffee
drinks, premium chicken sandwiches, and gourmet burgers off of its menu, do you really think
sales would increase? Outside of a likely improvement in speed of service, it would lose more
customers than it would gain by going back to basics. McDonald's is making drastic changes
to save business.
But on a positive note, we can take McFatfood’s woes as a sign that, try as they might with
their considerable propaganda resources, the corporate chieftains can’t put their egg McMuffin
back together again. People are fed up with fast food. And although some, concerned with cost,
are turning to eating at home as the cheaper option, others are more concerned with what’s in
their food, where it’s sourced from, how it’s being prepared and who is being paid for it. Who
wants instant, nutrition less, food-like substitute rolled up in plastic and slapped down on a tray
by surly, overworked servers (or, increasingly, robots) anyway?

SWOT Analysis
STRENGTHS
McDonalds has been the leader in the fast food industry for decades, literally changing the way
Indians ate, like every other business, McDonald’s is subject to opportunities and threats in
their specific and general sectors. McDonald’s financial condition seems to be fair, but on the
rise and could go back to being strong in the near future the company has enough money to
satisfy it short-term and long-term obligations and their interest payments, signifying that debt
is not a major problem for them. Production: McDonald’s has prided itself on its consistent
productive value.

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WEAKNESSES
An old brand: McDonald’s has been around for so long, and most Americans have eaten at
McDonald’s more times than they count. it causes decrease in profit and puts a bad name on
intangibles such as the McDonald’s name and the golden arch logo.
Current competition: McDonald’s has been a part of fierce competitors between itself and
other fast- food restaurant s (Burger King, Toco Bell, Wendy’s, Arby’s, etc.), but it seems to
be getting more intense. Since the fast-food industry has a lot of growth potential, we are seeing
thousands of new fast-food stores open every year. Quick meals can be found anywhere,
supermarket, convenience stores, and vending machines. The competition McDonald’s faces
are becoming more and more intense and growing larger and larger in number
Marketing: McDonald’s ads were hitting the mark with little kids, but failed to reach teens
and young adults, even alienating them. Consumers were left uncomfortable with the
unfamiliar “I’m Lovin’it” ads. There are many people only ate at McDonald’s because there
was no better alternative. The slow growth of the revenue indicates financial weakness of the
company when compared to Burger King of Yum.
OPPORTUNITIES
Nowadays we live in a culture of more health focused consumers. Thus, to be a first fast food
chain with the FDA approval on marketing a low-fat calorie hamburger would be a great
advantage. Their current low-fat products do not include any of the hamburgers. More opulent
restaurant setting such as the one in New York City, would appeal to a more “sophisticated”
audience. Offering allergen free items (gluten and peanut free, lactose free. etc.) Slowing
down the global expansion would increase the profitability of the brand Offer new products
which would fit into the “digitalized” environment (text alerts, etc.)
THREATS
Criticism on “cradle to grave” marketing forms a great threat to McDonald’s. They were
several lawsuits against the brand with regards to trademark issues, obesity causing legal cases
and the famous coffee burn case Foreign currency and exchange rate are causing loss of
revenue as the company uses standard pricing for its products Significant investments on
marketing campaigns are leading to decreasing of the market share competitive environment
including rapidly growing brands such as Burger King, KFC, Wendy’s, Starbucks, etc.

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Visit to McDonald’s (Derhadun)

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CONCLUSION
McDonald's consistent item development and consumer loyalty through more prominent client
reach. With the end goal to maintain in an exceptionally focused market McDonald's needs to
consistently consider getting new ideas into every one of its activities particularly in
advertising. McDonald's needed to get something that would help in long manageability and
that unrivaled position available as a "footballer". The consequence of an unconstrained idea
prompted the presentation of breakfast outlets and a shot experience with an innovation expert
wound up with web-based booking requests and birthday gatherings and mark outlets. These
are mark results of McDonald's and this will over the long-haul assist McDonald's with
improving it officially ace administrations with better client administration and incredible
shopping background. The accomplishment of McDonalds in India could be estimated by its
persistent development in Indian cheap food showcase with 210 branches crosswise over India.

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