Akanksha Black Book

PROJECT REPORT
ON
“MARKTING STRATEGY OF
McDONALD’S”
BACHELOR DEGREE OF MANAGEMENT
STUDIES
SEMESTER VI
(2021 – 2022)
PROJECT GUIDE
AKASH GUPTA
SUBMITTED BY:
AKANSHA ANIL PARAD

131
RAMNIRANJAN JHUNJHUNWALA
COLLEGE OF COMMERCE
(AUTONOMOUS)
OPPOSITE TO RAILWAY STATION,

GHATKOPAR (WEST), MUMBAI- 400086
MAHARASHTRA, INDIA
Akansha A. Parad
Raminiranjan Jhunjhunwala College
PROJECT REPORT
“MARKTING STRATEGY OF
McDONALD’S”
BACHELOR DEGREE OF MANAGEMENT
STUDIES
SEMESTER VI
Submitted
In Partial Fulfilment of the requirements
For the awards of Degree of
Bachelor of Management Studies
By
AKANSHA ANIL PARAD
131
RAMNIRANJAN JHUNJHUNWALA
COLLEGE OF COMMERCE
(AUTONOMOUS)
OPPOSITE TO RAILWAY STATION,
GHATKOPAR (WEST), MUMBAI- 400086
MAHARASHTRA, INDIA
Akansha A. Parad
DECLARATION
I Akansha A. Parad, the student of

T.Y.B.M.S. Semester VI (2021 – 2022)
Hereby declare that I have completed the
project on “Marketing Strategy of
McDonald’s” The information submitted is
true and original to the best of my knowledge.
AKANSHA ANIL PARAD

131
Akansha A. Parad
CERTIFICATE
This is to certify that, Ms. Akansha Anil Parad, roll no.
131 of Third Year B.M.S., Semester VI (2021-2022) has
successfully completed the project on “Marketing
strategy of Mcdonald’s” under the guidance of Prof.
Akash Gupta.
Prof. Kalai Selvi Nadar

Dr. Himanshu Dawda
(Course Co-Ordinator)
(Principal)
Prof. _________
Akash Gupta
External Examiner
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ACKNOWLEDGEMENT
To list who all have helped me is difficult because they

are so numerous and the depth is so enormous.
I would like to acknowledge the following as being
idealistic channels and fresh dimension in the completion
of this project.
I take this opportunity to thank the University of
Mumbai for giving me chance to do this project.
I would like to thank my Principal, Dr. Himanshu
Dawda, for providing the necessary facilities required
for completion of this project.
I take the opportunity to thank our Coordinator, Prof.
Kalai Selvi Nadar,for the moral support and guidance.
I would also like to express my sincere gratitude towards
my Project guide, Prof._Akash Gupta_. whose
guidance and care made the project successful.
I would also like to thanks my College Library, for
having provided various reference books and magazines
related to my project.
Akansha A. Parad
Lastly, I would like to thank each and every person who

directly or indirectly helped me in the completion of the
project especially my parents and peers who supported
me throughout my project.
Table of Contents
EXECUTIVE SUMMARY
McDonald’s is a globally successful fast-food restaurant. From the time of its

birth it has gain enormous success and is growing at the international level. The
powerful entry through franchisee system the standardization and adaptation strategy
play an important role in gaining the huge success of McDonald’s and brand image of
McDonald’s.
McDonald’s strategy of standardizing their products on its preparation,

techniques of presentation along with the adaptation strategy has created a difference
in McDonald’s as compared to that of its competitors.
Marketing being my subject interest knowing the strategy of one of the most
successful company will really help me out. Thus, I have chosen McDonald’s as my
study of subject for my 100 marks project in TYBMS. This has really helped me out
to know lots of marketing techniques and practically understand the McDonald’s
strategy of standardization and adaptation.
STUDY:
In the project focus has been made on McDonald’s franchise in India. The
challenges faced, their target market, segmentation strategies. The supply chain of the
company and its ability to provide best quality food at the best cost. The 5 P’s of
McDonald’s and the various schemes provided by the company to its employees
while working in McDonald’s and even after their retirement from the company.
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McDonald’s as a service industry its life cycle is also studies. The present strength
and weakness of the company and the future opportunities and its future threats are
also study for better analysis of McDonald’s marketing in India.
CONCLUSION:
Studying McDonald’s and its marketing system has helped me a lot in
understanding the marketing subject in a better manner. And it will be helpful for me
in near future.
CHAPTER
01
INTRODUCTION.
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1 | P a g e : Marketing strategy of McDonald’s
INTRODUCTION
McDonald's Corporation is the world's largest chain of fast-food

restaurants.
The McDonald’s Corporation is one of the most successful global restaurant

chains around the world. They have used effective management and global expansion
strategies to enter new markets and gain a share of the foreign fast-food market.
McDonald’s has achieved this enormous success, its best practices in the global food
industry, international growth trends and challenges, and various lessons that have
been learned from their expansion in foreign countries. This shows how McDonald’s
creates both customer and brand loyalty for their products and services.
In 1937 Brothers Dick and Mac McDonald open a hot dog stand called the
Airdrome at the airport in Monrovia, California & in 1940 the brothers move the
Airdrome building to San Bernardino, California, where they open the first
McDonald's restaurant. Although McDonald's did not invent the hamburger or fast
food, its name has become nearly synonymous with both.
The McDonald's Golden Arches logo was introduced in 1962. It was created
by Jim Schindler to resemble new arch shaped signs on the sides of the restaurants.
He merged the two golden arches together to form the famous 'M' now recognized
throughout the world. Schindler's work was a development of the stylized 'v' logo
sketched by Fred Turner, which was conceived as a more stylish corporate symbol
than the Speedee chef character that had previously been used. The McDonald's name
was added to the logo in 1968.
McDonald's has its familiar golden arches logo; McDonald's has 31,886
restaurants worldwide serving Big Macs, Chicken McNuggets, salads and French
fries. Most restaurants offer drive-thru service and some suburban locations offer
outdoor playgrounds for children. Approximately 70% of McDonald's restaurants are
operated by independent franchisors. The number of restaurants in the U.S. has
reached saturation and most new McDonald's are now being opened in Europe,
Middle East and Asia.
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In order to be a franchisee, an individual must have at least $175,000. There is

about 2,400 owner/operators’ system wide. McDonald's is looking to boost sales by
opening restaurants 24 hours a day. An estimated 30% of store revenue comes from
breakfast sales. The company has instituted a dollar menu which includes a double
cheeseburger in a bid to boost sales from value-oriented customers.
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HISTORY
The first McDonald's restaurant was located in San Bernardino, CA in 1954

and operated by two brothers Dick and Mac McDonald. Ray Kroc, a milk shake
machine salesman, thought the restaurant was great and purchased the rights from the
brothers. Kroc opened his first McDonald's restaurant in Des Plaines, IL in 1955 and
preached cleanliness in restaurants. McDonald's would grow quickly as it signed on
franchisees to open restaurants around the country. McDonald's would go public in
1965.
The Big Mac was introduced system wide in 1968 and was the brainchild of
Jim Delligatti, one of Ray Kroc's earliest franchisees, who by the late 1960s operated
a dozen stores in Pittsburgh. The Egg McMuffin was developed by owner operator
Herb Peterson in 1973.
The site of the McDonald brothers' original restaurant is now a monument.

With the expansion of McDonald's into many international markets, the company has
become a symbol of globalization and the spread of the American way of life. Its
prominence has also made it a
Frequent topic of public debates about obesity, corporate ethics and consumer
responsibility.
In 2007, the company had record revenues of $22.8 billion, a 9% increase

from the previous year. Net income was $2.39 billion. McDonald's sold the Boston
Market restaurant chain in 2007 and owns a stake in Chipotle Mexican Grill. In 2007,
the Company completed the sale of its businesses in Brazil, Argentina, Mexico,
Puerto Rico, Venezuela and 13 other Countries in Latin America and the Caribbean to
a developmental licensee organization. An estimated 10% of all workers have once
worked at McDonald's in their lifetime.
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FRANCHISEES
FRANCHISEES
Franchising refers to the methods of practicing and using another person's

philosophy
Of business. The franchisor grants the independent operator the right to distribute its
products, techniques, and trademarks for a percentage of gross monthly sales and a
royalty fee. Various tangibles and intangibles such as national or international
advertising, training and other support services are commonly made available by the
franchisor. Agreements typically last five to twenty years, with premature
cancellations or terminations of most contracts bearing serious consequences for
franchisees.
McDonald’s does business in more than 30,000 restaurants in 119 countries

around the world serving 47 million customers each day. In many countries around
the world it does not have a presence and its current strategy is to focus on the
markets where it does not do business. No firm date has been established for the
opening of new markets. In certain markets McDonald’s have a presence but it is not
seeking franchisees and it has included instructions regarding those markets.
McDonald’s sincerely appreciate the customers expressed interest in McDonald’s and
their continued patronage of our restaurants.
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CHAPTER
02
OBJECTIVE OF
STUDY.
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McDonald’s Start-up
A 50-50 joint venture partnership between McDonald’s Corporation [USA] and two
Indian businesses, McDonald’s began its journey in India in October 1996. Connaught Plaza
Restaurants Pvt. Ltd headed by Vikram Bakshi owns and operates the northern and eastern
operation which includes restaurants in New Delhi, Uttar Pradesh, Rajasthan, Punjab, Haryana,
West Bengal etc.
Amit Jatia’s company Hardcastle Pvt. Ltd. Owns and operates McDonald’s
restaurants in West and South India. HRPL has restaurants in Maharashtra, Madhya
Pradesh, Karnataka and Andhra Pradesh, Chennai and its growing rapidly.
The head office for Hardcastle Restaurants Pvt. Is

spread across two building in Mumbai, one at Bhulbhai
Desai Road and the other at Santa Cruz. The head office
houses all the support departments required to run the
restaurants in the western and southern region.
These includes: -
Construction
It is involves in all construction and design related work for the stores as per
McDonald’s standards. It prepares project plans for new stores to be put to the
management and implements the same after approval.
Country Purchase
All the purchases of raw material for restaurants products are done by the
country purchase department team for both the Delhi and Mumbai markets. It works
as a national supply chain. The main aim is to purchase the best quality material from
the authorized supplier and at lowest possible cost. Once the material is ordered by a
country
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Purchase it first goes to the distribution centre and then to the restaurants according to
their requirement. 6
Country Quality Assurance & Product Development
This department works closely with the country purchase department. It

looks after the quality of both raw material and of finished product. It develops new
product for the menu based on customer preference.
Finance & Information Technology
It looks after all the day to day financing accounting transaction and taxation
related activities of the application of Information Technology to the company
processes.
Corporate Affairs
It associates with brand building and protection of the brands. It works

closely with real estate in doing feasibility studies for sites from a legal angle. It looks
after license and liaison activities of the company with outside agencies, i.e. regarding
media
And government authority:-

Legal & company Secretarial.
It helps the company sign legal deals for the new restaurants sites. It
safeguards the interest of the company and act as guardians of the company as regards
to its legal functions. It provides advisory support to the other departments as regards
legal issues and ensures compliance with applicable laws.
People Resources / Human Resources.
It conducts activities related to recruitment, selection, remuneration,

retention, and matter related to employee satisfaction.
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Training, Learning & Development.
It is responsible for the training and Development of employees involved in

operational activity and the employees in the corporate office.
Operation
This department is responsible for the day to day functioning of the

restaurants in a profitable manner.
Marketing & Communication.
It is responsible for brand positioning increasing brand awareness and thus

resulting in increased sales. It is also responsible for advertising, media relation and
implementing various product promotion schemes like Happy Meals, Value Meals,
etc.
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VISION
Our vision is to be the world’s best quick service restaurant experience. That
means that our restaurant will be the best place for our customers to enjoy fast,
friendly services fresh food favorites, a clean welcoming environment and a fun
experience at a fair price.
OUR VALUES
Our vision is supported by a set of core values:
· We are dedicated to providing customers unparalleled levels of quality,

service, cleanliness, and value. It is what RAY KROC taught us.
· We are committed to our people because we know that a diverse team of well-
trained individuals working together is the key to our continued success.
· We approach all aspects of our business with honesty and integrity.
· We always give back to the communities in which we do business.
We celebrate our achievements, yet we are never satisfied with our results.
“To be our customer –favorite place and way to eat.”
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CHALLENGES IN ENTERING INDIAN MARKETS
➢ Regiocentricism: Re-engineering the menu – McDonald’s has

continually adapted to the customer’s tastes, value systems, lifestyle, language
and perception. Globally
McDonald’s was known for its hamburgers, beef and pork burgers. Most
Indians are barred by religion not to consume beef or pork.
To survive, the company had to be responsive to the Indian sensitivities. So

McDonald’s came up with chicken, lamb and fish burgers to suite the Indian
palate.
➢ The vegetarian customer – India has a huge population of vegetarians. To cater

to this customer segment, the company came up with a completely new line of
vegetarian items like McVeggie burger and McAlooTikki. The separation of
vegetarian and non-vegetarian sections is maintained throughout the various
stages.
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SEGMENTATION, TARGETING AND POSITIONING
McDonald’s uses demographic segmentation strategy with age as the parameter. The
main target
Segments are children, youth and the young urban family.
80% 71%
70% 59%
60% 52%
50%
40%
30%
20%
10%
0%
Biscuits Burgers & Pizzas Fruit Juices
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% Of kids who influence what FMCC brands their family buys
As shown above, kids reign supreme in FMCG purchase related to food

products. So to attract children McDonalds has Happy Meal with which toys ranging
from hot wheels to various Walt Disney characters are given (the latest in this range is
the toys of the movie Madagascar). For this, they have a tie-up with Walt Disney. At
several outlets, it also provides special facilities like ‘Play Place’ where children can
play arcade games, air hockey, etc.
This strategy is aimed at making McDonald’s a fun place to eat. This also
helps McDonald’s to attract the young urban families wanting to spend some quality
time while their children have fun at the outlet.
To target the teenagers, McDonald’s has priced several products aggressively,

keeping in mind the price sensitivity of this target customer. In addition, facilities like
Wi-Fi are also provided to attract students to the outlets like the one at Vile Parle in
Mumbai.
“Mc Donald’s Mein Hai Kuch Baat” projects McDonald’s as a place for the
whole family to enjoy. When McDonald’s entered in India it was mainly perceived as
targeting the urban upper-class people. Today it positions itself as an affordable place
to eat without compromising on the quality of food, service and hygiene. The outlet
ambience and mild background music highlight the comfort that McDonald’s
promises in slogans like “You deserve a Break Today” & “Feed your inner child”.
This commitment of quality of food and service in a clean, hygienic and relaxing
atmosphere has ensured that McDonald’s maintains a positive relationship with the
customers.
Customer Perception and Customer Expectation
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Customer perception is a key factor affecting a product’s success. Many

potentially revolutionary products have failed simply because of their inability to
build a healthy perception about themselves in the customers’ minds. McDonalds
being an internationally renowned brand brings with it certain expectations for the
customers.
Target Segment What is McDonald’s for me?

A Family with children A treat to children, a fun place to be for the children.
Urban customer on the move Great taste, quick service without affecting the work schedule
Teenager Hangout with friends, but keep it affordable.
Customers expect it to be an ambient, hygienic and a little sophisticated brand that

respects their values. The customer’s expect the brand to enhance their self-image.
Customer responses obtained at the Vile Parle, Mumbai outlet confirmed the fact that
they connect strongly with the brand. However, fulfilling some of the customer
expectations like a broader product variety provide McDonald’s a great scope for
improvement
McDonaldizing the Suppliers

SUPPLY CHAIN
Supply Chain is one of the critical factors for the smooth functioning of any
business. And when we are talking about fast food business with McDonald’s as the
subject of the study it can expected a Supply Chain model of one of the highest
precisions. It is this unmatched Supply Chain Structure, which not just ensures on
time delivery of raw materials and supplies to McDonalds but also enables it to cut
down on its cost and maximize profitability along with maintaining highest quality
standards of its products. The level of commitment of McDonalds can be gauged from
the fact that even before it set up its first restaurant in the country it infused Rs 400
Crore to set up its delivery mechanism. McDonald’s initiative to set up an efficient
Supply chain and deploy state-of-art technology changed the entire Indian fast
food industry and raised the standards of performance to international levels.
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As already mentioned, McDonalds had been working on its supply chain

even before it opened its first joint in the country. McDonalds, an international
brand which was trying to make inroads into the country, developed its Indian
partners in such a manner that they stayed with the company from the beginning.
The success of McDonalds India was achieved by sourcing all its required
products from within the country. To ensure this, McDonalds developed local
businesses, which can supply it highest quality products. Today, McDonalds
India works with 38 different suppliers on a long term basis and several other
stand alone restaurants for its various other requirements. McDonald’s
distribution centers in India came in the following order: Noida and Kalamboli
(Mumbai) in 1996, Bangalore in 2004, and the latest one in Kolkata (2007).
McDonald’s entered its first distribution partnership agreement with Radha
Krishna Foodland, a part of the Radha Krishna Group engaged in food-related
service businesses.
The association goes back to July 1993, when it studied the nuances of
McDonald’s operations and requirements for the Indian market. As distribution
centers, the company was responsible for procurement, the quality inspection
programme, storage, inventory management, deliveries to the restaurants and data
collection, recording and reporting.
Value-added services like shredding of lettuce, re-packing of promotional

items continued since then at the centers playing a vital role in maintaining the
integrity of the products throughout the entire 'cold chain'.
Cold Chain was one of the unique concepts of McDonalds supply chain in
India, on which it had spent more than six years to get the system into place. This
system brought about a veritable revolution, immensely benefiting the farmers at
one end and enabling customers at retail counters get the highest quality food
products, absolutely fresh and at great value. Through its unique cold chain,
McDonalds has been able to both cut down on its operational wastage, as well as
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maintain the freshness and nutritional value of raw and processed food products.
This has involved procurement, warehousing, transportation and retailing of
perishable food products, all under controlled temperatures. The following list of
suppliers, who build up the major supply chain of McDonalds, reveal how this
‘Cold Chain’ works and contributes towards the efficiency of McDonalds.
Dynamix Dairy Industries (Supplier of Cheese
Dynamix has brought immense benefits to farmers in Baramati, Maharashtra by

setting up a network of milk collection centres equipped with bulk coolers. Easy
accessibility has enabled farmers augment their income by finding a new market
for surplus milk. The factory has:
· Fully automatic international standard processing facility.
· Capability to convert milk into cheese, butter/ghee, skimmed milk
powder, lactose, casein & whey protein and humanized baby food.
· Stringent quality control measures and continuous Research &
Development
From farm two degrees Celsius in 90 minutes is the first step to quality. For
example, the Rs 262-crore Dynamix Dairy Industries, located in Baramati in
Pune district of Maharashtra, manufactures cheese slices for McDonald’s at 10
metric tone per month
. Dynamix has helped set up 15 bulk cooling centers throughout the district
from which it purchases milk. Each cooling centre, which is equipped with
modern measuring and Testing equipment and a large cooling tank, is not more
than a few kilometers away from local dairy farms. A farmer can deliver milk
even twice a day on his bicycle and get a printed receipt on the spot, which also
lists the quality of the milk supplied by him as per fat content, colour and solids
content.
If the milk is sub-standard or adulterated, it is rejected on the spot. A
batch of milk can vary from one litre to 10 liters, or more. Each batch is mixed in
one large stainless steel cooler and chilled immediately to two degrees Celsius to
stop bacterial growth and preserve freshness.
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From this point onwards, until just before the burger is actually served in
a McDonald’s restaurant hundreds of kilometers away, the temperature is never
allowed to increase.
When the refrigerated milk arrives at the Dynamix plant at Baramati, the
milk in every single tanker is thoroughly tested and rejected if found sub-
standard, adulterated or contaminated. The sophisticated testing lab can check fat
content with an accuracy of 0.1 per cent. It can even detect minute traces of
pesticides or antibiotics administered to cows.
This instant feedback and the rejection of the entire tanker-load forces
farmers to follow the best practices in terms of animal husbandry, use proper
feeds, cut down on the indiscriminate use of pesticides and animal medicines and
completely stop even the slightest attempts at adulteration.
Trikaya Agriculture (Supplier of Iceberg Lettuce)
Implementation of advanced agricultural practices has enabled Trikaya to successfully

grow specialty crops like iceberg lettuce, special herbs and many oriental vegetables.
Farm infrastructure features:
· A specialized nursery with a team of agricultural experts.
· Drip and sprinkler irrigation in raised farm beds with fertilizer mixing plant.
· Pre-cooling room and a large cold room for post-harvest handling.
· Refrigerated truck for transportation.
Trikaya Agriculture, a major supplier of iceberg lettuce to McDonald's India, is

one such enterprise that is an intrinsic part of the cold chain. Exposure to better
agricultural management practices and sharing of advanced agricultural technology by
McDonald's has made Trikaya Agriculture extremely conscious of delivering its
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products with utmost care and quality.
Initially lettuce could only be grown during the winter months but with
McDonald's expertise in the area of agriculture, Trikaya Farms in Talegaon,
Maharashtra, is now able to grow this crop all the year round. McDonald's has
provided assistance in the selection of high-quality seeds, exposed the farms to
advanced drip-irrigation technology, and helped develop a refrigerated transportation
system allowing a small agri-business in Maharashtra to provide fresh, high-quality
lettuce to McDonald's urban restaurant locations thousands of kilometers away. Post-
harvest facilities at Trikaya include a cold chain consisting of a pre-cooling room to
remove field heat, a large cold room and a refrigerated van for transportation where
the temperature and the relative humidity of the crop is maintained between 1º C and
4º C and 95% respectively.
Vegetables are moved into the pre-cooling room within half an hour of harvesting.
The pre-cooling room ensures rapid vacuum cooling to 2º C within 90 minutes.
The pack house, pre-cooling and cold room are located at the farms itself,
ensuring no delay between harvesting, pre-cooling, packaging and cold storage. With
this cold chain infrastructure in place, Trikaya Agriculture has also a plan to export
this high value product to other international markets, especially to McDonald's
Middle East and Asia Pacific operations.
McDonald's expertise in packaging, handling and long-distance

transportation has helped Trikaya to do trial shipments to the Gulf successfully.
In addition to export, McDonald's assistance has enabled Trikaya Agriculture to

supply this crop to a number of star-rated hotels, clubs, flight kitchens and
offshore catering companies all over India.
Vista Processed Foods Pvt. Ltd. (Supplier of Chicken and Vegetable range of
products including Fruit Pies)
A joint venture with OSI Industries Inc., USA, McDonald's India Pvt. Ltd.
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and Vista Processed Foods Pvt. Ltd., produces a range of frozen chicken and
vegetable foods. A world class infrastructure at their plant at Taloja, Maharashtra,
has:
· Separate processing lines for chicken and vegetable foods.
· Capability to produce frozen foods at temperature as low as -35 Degree

Celsius. To retain total freshness.
· International standards, procedures and support services.
Vista Processed Foods Pvt. Ltd., McDonald's suppliers for the chicken and
vegetable range of products, is another important player in this cold chain. Technical
and financial support extended by OSI Industries Inc., USA and McDonald’s India
Private Limited have enabled Vista to set up world-class infrastructure and support
services. This includes hi-tech refrigeration plants for manufacture of frozen food at
temperatures as low as - 35° C. This is vital to ensure that the frozen food retains it
freshness for a long time and the 'cold chain' is maintained. The frozen product is
immediately moved to cold storage rooms. With continued assistance from its
international partners, Vista has installed hi-tech equipment for both the chicken and
vegetable processing lines, which reflect the latest food processing technology (de-
boning, blending, forming, coating, frying and freezing). For the vegetable range, the
latest vegetable mixers and blenders are in operation. Also, keeping cultural
sensitivities in mind, both processing lines are absolutely segregated and utmost care
is taken to ensure that the vegetable products do not mix with the non-vegetarian
products. Now, at Vista, a very wide range of frozen and nutritious chicken and
vegetable products is available. Ongoing R&D, both locally and in the parent
companies, work towards innovation in taste, nutritional value and convenience.
These products, besides being supplied to McDonald's, are also offered to institutions
like star-rated hotels, hospitals, project sites, caterers, corp, corporate canteens,
schools and colleges, restaurants, food service establishments and coffee shops.
Today, production of better-quality frozen foods that are both nutritious and fresh has
made Vista Processed Foods Pvt. Ltd. a name to reckon within the industry.20
McDonald’s
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Radhakrishna Foodland (Distribution Centres for Delhi and Mumbai)
An integral part of the Radhakrishna Group, Foodland specializes in handling large

volumes, providing the entire range of services including procurement, quality
inspection, storage, inventory management, deliveries, data collection, recording and
reporting. Salient strengths are:
· A one-stop shop for all distribution management services.

· Dry and cold storage facility to store and transport perishable products at
temperatures up to -22 Degree Cel.
· Effective process control for minimum distribution cost.
McDonald's local supply networks through Radhakrishna Foodland, which

operates distribution centres (DCs) for McDonald's restaurants in Mumbai and Delhi.
The DCs have focused all their resources to meet McDonald's expectation of 'Cold,
Clean, and On-Time Delivery' and plays a very vital role in maintaining the integrity
of the products throughout the entire 'cold chain'. Ranging from liquid products
coming from Punjab to lettuce from Pune, the DC receives items from different parts
of the country. These items are stored in rooms with different temperature zones and
are finally dispatched to the McDonald's restaurants on the basis of their
requirements. The company has both cold and dry storage facilities with capability to
store products up to -22º C as well as delivery trucks to transport products at
temperatures ranging from room temperature to frozen state.
Amrit Food (Supplier of long life UHT Milk and Milk Products for Frozen
Desserts)
Amrit Food, an ISO 9000 company, manufactures widely
popular brands – Gagan Milk and Nandan Ghee at its factory at
Ghaziabad, Uttar Pradesh. The factory has:
· State-of-the-art fully automatic machinery requiring no human contact with
product, for total hygiene.
· Installed capacity of 6000 ltrs/hr for producing homogenized UHT (Ultra High
Temperature) processed milk and milk products.
· Strict quality control supported by a fully equipped quality control laboratory.
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All suppliers adhere to Indian government regulations on food, health and hygiene
while continuously maintaining McDonald's recognized standards. As the ingredients
move from farms to processing plants to the restaurant, McDonald's Quality
Inspection Program (QIP) carries out quality checks at over 20 different points in the
Cold Chain system. Setting up of the Cold Chain has also enabled it to cut down on
operational wastage
Hazard Analysis Critical Control Point (HACCP) is a systematic approach to

food safety that emphasizes prevention within its suppliers' facility and restaurants
rather than detection through inspection of illness or presence of microbiological data.
Based on HACCP guidelines, control points and critical control points for all
McDonald's major food processing plants and restaurants in India have been
identified. The limits have been established for those followed by monitoring,
recording and correcting any deviations. The HACCP verification is done at least
twice in a year and certified.
The relationship between McDonald's and its Indian suppliers is mutually
beneficial. As McDonald's expands in India, the supplier gets the opportunity to
expand his business, have access to the latest in food technology, exposure to
advanced agricultural practices and the ability to grow or to export. There are many
cases of local suppliers operating out of small towns who have benefited from their
association with McDonald's India
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CHAPTER
04
RESEARCH &
METHODOLOGY.
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MCDONALDS MARKETING MIX (5 P’S)
After segmenting the market, finding the target segment and positioning itself,
each company needs to come up with an offer. The 5 P’s used by McDonalds are:
1. Product
2. Place
3. Price
4. Promotion
5. People
Product: How should the company design, manufacture the product so that it
enhances the customer experience?
Product is the physical product or service offered to the consumer. Product

includes certain aspects such as packaging, guarantee, looks etc. This includes both
the tangible and the non-tangible aspects of the product and service
McDonalds has intentionally kept its product depth and product width limited.
McDonalds studied the behavior of the Indian customer and provided a totally
different menu as compared to its international offering. It dropped ham, beef and
mutton burgers from the menu. McDonald's success worldwide has been attributed to
the ‘“Think Global, Act Local and Sell like a Retailer” philosophy. McDonald’s
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followed this international mantra while opening doors to the Indian subcontinent.
With respect to the cultural and traditional sentiments, not only did McDonalds not
serve it’s most popular product The BIGMAC (a beef burger) but also developed an
egg-less mayonnaise for the first time in the worldwide system.
To suit the Indian palette, the McAloo Tikki™ burger, Veg. Pizza McPuff™
and Chicken McGrill™ burger were among other offerings that were formulated and
introduced using spices favored by Indians. Furthermore, each restaurant kitchen was
designed to maintain separate Vegetarian and Non-Vegetarian food counters.
Reasons for introducing the products
· Beef which was a taboo in the Indian market was planned to replace by filling
of Aloo Tikki to match up with the Indian culture.
· Salad sandwich was introduced targeting the people who are more conscious
about health.
· The introduction of jain salad in the outlet keeping the Jain people rituals of
not eating ginger, onion, potatoes etc.
· Seeing to the Indian mentality of having wheat chapattis led to the idea to
introduce paneer salsa wrap and chicken Mexican wrap.
· Filet-o-fish was introduced keeping in mind the demand of the sea food lovers
having no competitors in the segment before.
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Place: where should be the product available and the role of distribution channels
The place mainly consists of the distribution channels. It is important so that the
product is available to the customer at the right place, at the right time and in the right
quantity. Nearly 50% of U.S.A is within a 3 minute drive from a McDonald’s outlet.
There is a certain degree of fun and happiness that a customer feels each time he dines
at McDonalds. There are certain value propositions that McDonalds offer to its
customers based on their needs. McDonalds offers hygienic environment, good
ambience and great service. Now McDonalds have also started giving internet facility
at their centres and they have been playing music through radio instead of the normal
music. There are certain dedicated areas for children where they can play while their
parents can have some quality time together.
Price: What should be the pricing strategy?
Pricing: includes the list price, the discount functions available, the financing options
available etc. It should also take into the consideration the probable reaction from the
competitor to the pricing strategy. This is the most important part of the marketing
mix as this is the only part which generates revenue. All the other three are expenses
incurred. The price must take into consideration the appropriate demand-supply
equation.
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McDonalds has certain value pricing and bundling strategies such as happy meal,
combo meal, family meal etc. to increase overall sales volumes.
Branded Affordability: Having established the image of comfort and familiarity, it

now was time to add new people to the fold. The Indian consumers continued to
perceive McDonald’s as an expensive eating out option. The challenge was to
overcome this perception and be accepted as an affordable brand. While the patented
products like McVeggie™ and McChicken™ continued to cater to the patrons, the
company needed to broaden the audience base to further entrench into the market.
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McDonald’s found success in its strategy of Branded

Affordability and introduced the ‘Happy Price Menu’ of Rs.20/-. Engaging and
Memorable campaigns were created to establish the Branded Affordability
communication -The ‘Bahanas’, the yesteryears prices, or ‘bees mein full
dhamal’!
Promotion: What is the suitable strategy and channels for promotion of the
product?
The various promotion channels being used by McDonald’s to effectively
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communicate the product information are given above. A clear understanding of the
customer value helps decide whether the cost of promotion is worth spending.
There are three main objectives of advertising for McDonald’s are to make
people aware of an item, feel positive about it and remember it. The right
message has to be communicated to the right audience through the right media.
McDonald’s does its promotion through television, hoardings and bus shelters. They
use print ads and the television programs are also an important marketing medium for
promotion.
Some of the most famous marketing campaigns of McDonald’s are:

· “You Deserve a break today, so get up and get away- To McDonald’s”
· “Aap ke zamane mein, baap ke zamane ke daam”.
· “Food, Folks, and Fun”
· “I’m loving it”.
Familiarity breeds’ comfort:
The first step for the brand was to establish itself as a

familiar, comfortable place. Taking a cue from the Indian
family values, the year 2000 saw the first ever McDonald’s
ad aired in the country. A child, who is unable to recite a
poem and suffers stage fright, but when he enters
McDonald’s, he easily recites it when in the comfortable
familiar environment of McDonalds.
Working on the insight – similarly when his family moves into a new place,
the child misses all that has always been so familiar and dear. He then has the comfort
of something that is dear and familiar to bring a smile to his face. McDonald’s was
successful in creating an image of a warm and comfortable ambience through its
Ads. ‘McDonald’s Mein Hai Kuch Baat’: Making McDonalds the consumers’
favorite place and way to eat. While kids and families were key, it was also important
to talk to the generation that had not grown up on McDonald’s burgers and fries. An
adult who works with logic and
Reasoning would need a reason tempting enough. And what better way to talk to them
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than talk about McDonald’s core competence – food!
Even in Dreams:
McDonald’s realized that the way to draw more consumers would be to

increase the visibility of the brand and its products. The more a person saw food, the
greater his urge would be to try it out. The company came up with its next round of
campaign to address and reflect this. The campaign showed different people dreaming
about McDonald’s. It depicted how the consumers were totally involved with
McDonald’s and the food. New product stories delivered in a memorable and
engaging approach. It was imperative for the success of the brand to be ‘Indianized’ –
to continuously speak to consumers in their ‘language’ without taking away from its
core American parentage. ‘From tears to smiles’ - campaigns were produced to
introduce new, scrumptious products.
Let go the child within you:
The general brand perception of McDonald’s in India was that of a place for
kids. While the campaigns had worked in the past, targeting kids, McDonald’s
recognized the fact that it could not always depend on the kids’ niche. When kids
move up the consumption chain, there is a possibility of losing out on consumers.
Moreover, the family outings with children only happen over the weekends and
holidays. It was imperative to rope in adults who would patronize the brand over the
weekends. Consequently, the next series of campaigns were targeted to drive in adult
traffic to break away from the perception. The ad depicted a father being invited to a
birthday party at McDonald’s. He is not at ease with the idea of visiting McDonald’s
since he perceives it as a kids place. His child reminds him of the McCurry Pan™,
Filet-o-Fish™ that he would be able to relish at the birthday party. The food boosts
the father to go to the party, where to his astonishment is his boss’ party. The ad
asserted that people celebrate birthdays and occasions at places they are comfortable
in!
People: How to converge the benefits of internal and external marketing?
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McDonald’s understands the value of both its employees and its customers. It
understands the fact that a happy employee can serve well and result in a happy
customer.
McDonald continuously does Internal Marketing. This is important as it must
precede external marketing. This includes hiring, training and motivating able
employees. This way they serve customers well and the final result is a happy
customer.
The level of importance has changed to be in the following order (the more important
people are at the top):
1. Customers
2. Front line employees
3. Middle level managers
4. Front line managers
The punch line “I’m loving it” is an attempt to show that the employees are loving
their work at McDonalds and will love to serve the customers.
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CHAPTER
O5
REVIEW OF
LITERATURE.
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MC EMPLOYEES
Employee benefits
MC DONALD’S provides you with many opportunities to talk to your

management on any topic related to your employment/work. To begin with we follow
an “open door” policy Which means that all team members at MC DONALD’S are
approachable at any time. Crew meetings are held every month in your restaurant
where all the store related issues are discussed. Besides this you will also have rap
session and meet 5 where you can express your view candidly.
RAP SESSION:-
Rap session are small informal discuss between crew and management for the
purpose of discussing ideas, suggestions and problems. These sessions will be held
about once every three months or whenever needed by the store manager or a member
of the management team. Rap sessions are an opportunity for the crew to make their
views known to the company. You will be paid for attending a rap session.
Opinion survey:-
About once a year we will ask all employees to complete a

confidential questionnaire relating to their work and the operation of the store, the
answers will help us to improve our management of the restaurant and conditions of
employment.
Facilities
Crew room
This room is provided for the employee for recreation and rest during the break
time. The employee can study, listen to music, and get trained in this room.
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Breaks
It is not easy to maintain quality, service, and cleanliness. It take hard work and
hustle. To keep energy level high, all the crew member working above five
consecutive hour are eligible for an unpaid break of an hour.
Employee Meal
One of the best things about working for McDonald’s is for food. Employees can
enjoy quality nutritious food at world standard hygiene levels. It is free to managers
and crew. All the meals consumed must be recorded and consumed in the restaurants
itself.
Locker Facility
Lockers are available for the employees use at the restaurants for keeping the
personal belongings in a safe and secure place during the shift.
Other Facilities
In addition to the above facilities the employee also enjoys with the team member
during the yearly store outing and various inter-store activities arranged system-wise
and patch wise. These activities are fun and provide opportunity to have a good time
and know fellow employees better
Employee recognition
Incentives
All the crew at McDonald’s have the opportunity to get McDonald’s
branded merchandise. Each restaurant is allotted “Mahabucks” every month based on
monthly store allocation and various inter-store competitions. Mahabucks is a crew
incentive programme where the Mahabucks coupons can be redeemed for the set of
utility items available for that year.
The employee have the opportunity to earn the Mahabucks by becoming

face of the month, face of the quarter, various rewards organized by the stores and
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through various inter store competitions.
Employee Referral Programme
The employee can refer any friend who is interested in working at

McDonald’s for a crew member’s job at any of the McDonald’s store. The employee
receives an incentive after the referred crew member completes 3 months in the
organization.
Graduate Career Advancement Programme
McDonald’s believe that investing in the people is one of the best ways to
build the brand and assure customer loyalty. Crew Member who completes their
graduation are recognized for their academic growth by putting them on training
programme which help them to become manager faster.
Retirement Benefits
Employee provident fund
All the employee are eligible for the provident fund scheme as per the
company’s rule. Provident fund is a retire benefit provided to every employee of
McDonald’s. Every employee contribute 12% of his basic salary to his/her PF
account. There is an equal contribution by the Employer.
However 8.33% of the employer’s contribution is deposited to the
Employee’s Pension Fund and the rest goes to the Provident Fund.
Employee State Insurance
All the crew member are eligible for the Employee State Insurance as per the
ESI rule. This benefit is provided to the employee for free medical treatment in case
of sickness, maternity, and employment injury. The employee contributes 1.75% of
his gross salary whereas the employer contributes 4.75.
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Bonus
Depending upon the law applicable at the relevant time the employee will
receive an amount of 8.33%of the basic salary earned during the financial year.
Gratuity
All the full time employee who have completed 5 years of continuous
employment with the company are eligible for gratuity. The employee will receive an
amount of 15 days basic salary for every week worked. The amount is given at the
time of separation or retirement from the company.
Employer. However 8.33% of the employer’s contribution is deposited to the

Employee’s Pension Fund and the rest goes to the Provident Fund.
Employee State Insurance
All the crew member are eligible for the Employee State Insurance as per the
ESI rule. This benefit is provided to the employee for free medical treatment in case
of sickness, maternity, and employment injury. The employee contribute 1.75% of his
gross salary whereas the employer contributes 4.75%
Bonus
Depending upon the law applicable at the relevant time the employee will
receive an amount of 8.33%of the basic salary earned during the financial year.
Gratuity
All the full time employee who have completed 5 years of continuous
employment with the company are eligible for gratuity. The employee will receive an
amount of 15 days basic salary for every week worked. The amount is given at the
time of separation or retirement from the company.
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CHAPTER
06
DATA ANALYSIS
&
COMPLIATION.
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MCDONALD’ S IN SERVICE INDUSTRY
THE MCDONALD’S EXPERIENCE
Marketing in a services industry is becoming an increasingly complex

challenge. The paradigms of service marketing demand a passionate understanding of
customer expectations and perceptions, and linking them to product design & delivery
as well as operational planning. This is where McDonald’s has excelled due to its
ability to successfully integrate the customer’s perspective in its products and
operations in a comprehensive manner. The revamped menu in India is an example of
McDonald’s strategy of integrating the customer’s perspective in its products. And,
the operational integration is evident from McDonald’s emphasis on its suppliers as
its customers as well as its treatment of its consumers as co-producers of services.
The ultimate aim of Service Marketing is not just to become a Service Leader but to
create a Service Brand. The Service Delivery Process is the key to achieving this aim
of Service Marketing.
Service Delivery
Process
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During the Service Delivery Process, each moment of interaction between the
firm and the customer, called “Moments of Truth”, helps understand the
opportunities that a firm has to win or lose the customer. For example, these
“moments of truth” are created for McDonald’s every time the guard at the
McDonald’s outlet meets the customer, every time an attendant takes down the order
from the customer waiting in the queue, every time the cashier interacts with the
customer, every time the attendant helps the customer guided the customer towards
the table, every time the attendant cleans the tables etc.
“Moments Of Truth” – The Service Encounter
Service Provider Service Delivery Points
Managing these “moments of truth” is a great challenge in Service Marketing

especially due to customer’s involvement as a co-producer of services (e.g.
McDonald’s self-service concept wherein the customer not only collects the order but
also cleans the table after consuming the food). However, McDonald's has been able
to create a great experience for its customers by understanding the nature of the entire
Service Delivery
Process and the various stages in the process that are exposed to the
customers. Transparency in the processes at its outlet has helped McDonald’s bring
the back office in its
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Outlet at the front so that the customer is able to know the operations and provide
feedback on service design improvements.
Internal Customer Focus is equally important as External Customer

Orientation in order to win these “moments of truth”. McDonald’s focus on its People
and their service delivery methods therefore plays a very important role in creating a
successful Service Brand. The quality and the consistency of the service delivered by
McDonald’s have been greatly enhanced by the combination of the factors mentioned
above. This has helped McDonald’s become Service Leader and a successful Service
Brand. This is evident from the fact that very few of its customers opt for take-home
parcels or home deliveries while most of them prefer to eat at the outlet and enjoy the
McDonald’s experience.
IMPORTANCE OF PLC IN MCDONALDS
The requirements of customers change over time and thus the product offering
has to be changed accordingly. What is the fashion today may be out of market within
few weeks? Thus, continuous innovation is required.
To counter these changes McDonalds has continuously introduced new products and
has phased out the old ones which were at the decline stage of their PLC. The
introduction is timed such that the new product does not cannibalize the product
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already in the maturity or growth stage. Thus, the secret lies in getting profits with
different products in the different stages of the PLC.
A perfect example of revitalizing a product in decline phase
The French Fries have been an important part of the McDonalds menu
worldwide. But now it was in the stage of decline and was actually not generating
proper return. In an attempt to revitalize it, a new variant was introduced namely
Shake Shake Fries. This is being served with chatpata spice mix which has resulted
in increase in the sales of French Fries and has elevated it from to the decline stage.
This is used to delay the decline of a well-established product which has the potential
of generating further revenue.
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ANALYSIS
Competitors Analysis
McDonald’s has been a leading fast-foods outlet in Vile Parle. But the outlet
understudy has other competitors eating away into its market share. In addition to its
traditional rivals—KFC, Dominos, Pizza Hut—the firm encounters new challenges.
Jumbo King competes using a back-to-basics approach of quickly serving up burgers
for time-pressed consumers. On the higher end, the KFC has become potent
competitor in the quick service field, taking away customers from McDonald’s.
Perhaps in the new environment, fast, convenient service is no longer enough to
distinguish the firm. At this time, a new critical success factor may be emerging: the
need to create a rich, satisfying experience for consumers. This brings us to service
and experience based competition which McDonald’s can use for competitive
advantage against Jumbo King. Keeping in mind the demographics of the area,
McDonald’s has Wi-Fi enabled the outlet to cater to the student community. It is for
this overall “Food, Fun & Folks” experience that customers pay a premium over the
other competitors.
Competition also reduces product lifecycle; inducing firms to revise their

products portfolios and to revisit their product market to understand changing needs,
expectations and perception of different market segments. The new McBreakfast
would be introduced between 6 to 11 am as a pilot project. This would open up a
whole new revenue stream for McDonald’s by tapping into the student and working
population by providing a healthy and wholesome breakfast. This shows how
demographic shift can affect the demand for products and services. McDonald’s has
anticipated these changes to maintain its competitive edge.
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Two-Dimensional Perceptual Mapping
SWOT Analysis
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The Road Ahead

➢ Entry to Tier 2 and Tier 3 cities – The main target customer for McDonald’s
is the new urban Indian family. With the customer demographics constantly
changing and tectonic social and cultural shifts being observed in Tier 2 and
Tier 3 cities due to globalization, the company is now expanding to Tier 2
cities like Pune and Jaipur.
➢ Rolling out McBreakfast across all outlets – In India, the company has
recently launched its entry into the breakfast food category. This is now
launched on a pilot basis on select stores. In Mumbai, it available at the Vile
Parle outlet. The company views this category as a key growth driver in
future.
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Exhibits
1. McDonald’s Indian Menu
Vegetarian Non Vegetarian

McVeggie Chicken Maharaja Mac
McAlooTikki McChicken Burger
Paneer Salsa Wrap Chicken Nuggets
Salad Sandwich Wrap Chicken Mexican
Potato Wedges Fillet-O-Fish
Pizza McPuff
Survey Questionnaire
Q. Which is your favorite product at McDonald’s?
Q. Is the product line in McDonald’s adequate?
Q. What is the main problem you faced at McDonald’s?

Q. Which area do you think needs the most improvement?
Q. What is the first thing that strikes your mind about McDonald’s?
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Kids playing at McDonalds Vile Parle
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THE NEW BREAKFAST MENU STARTED AT SELECT STORES IN

MUMBAI.
The Business Need for Delivery & kiosk
McDelivery and Kiosks are two integral factors in the McDonalds growth model.
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McDELIVERY
“If you can’t come to McDonalds, McDonalds will come to you.”

After nearly sixteen years in India, McDonald's finally started coming to your
doorstep. The key idea is convenience. We are a quick service restaurant available at
high-traffic locations. But there is a large number of people who find it difficult to
travel. The key is to deliver hot and fresh food.
Why McDelivery is an Important Business model?
• McDelivery is one of the Important Business models of Brand extensions.

• McDelivery contributes to around 7.5 % of Total sales.
• The key idea is Convenience because McDonalds believe in being accessible.
• By offering home delivery we can reach out to the Customers and increase our
penetration.
• MDS SOI contribution to the store system wise is 15.30%.
• Based on the Data it is presumed that in the Coming days the contribution of
McDelivery will be on increasing trend.
• Current number of MDS Stores – 36
Plan by end of 2009 - 46 MDS stores
Analysis shows that the Sales Trend is continuously on increasing Trend.
· In 2008 Regrading phase was done because of which TC’s for 2008 Were
impacted
Compared to 2007 but now again there is an Increasing trend.
· In 2007 – 27
MDS In 2008
– 34 MDS
In 2009 - 40stores
In 2010 – 100 stores
In 2012- 150 stores
In 2014 celebrating 200
stores
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Till now it 300 stores 49 McDonald’s
In 2007 Sales ended 8,31,98,038
· In 2008 Sales ended – Rs.9,05,83,754/-

· SOI Contribution Figures positive.
2008 2009 plan Feb Y

MDS GM% 56.67% 57.6% 55.9
Lab Cost% 12.99% 12.7% 12.1
Outside Services% 16.69% 13.1% 15.4
PAC% 14.61% 18.6% 16.6
SOI% 12.95% 12.8% 15.3
, The chain which entered India with its maiden store in 1996 in Delhi saw its store
count grown from around 100 in 2006 to over 300 at the end of FY13. McDonald’s W
& S which had a little less than half of the stores in FY07 overtook McDonald’s N &
E in the number of outlets in FY12 when it added around 23 outlets, the highest in a
single year till then and almost double of what McDonald’s N & E did in that year,
according to sources
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Interestingly, the outperformance of McDonald’s W & S coincided with change in

operational ownership. FY12 was also the first year after a change in business
structure where the Jatias acquired the stake held by McDonald’s in their joint venture
HRPL while retaining their role as a master franchisee for two regions of the country.
Jatias recently consolidated HRPL under a small public listed firm Westlife
Development.
To be fair, McDonald’s N & E reached break-even faster than its other Indian peer.
Connaught Plaza Restaurants clocked positive EBITDA way back in FY08, one year
ahead of Hardcastle Restaurants. It also clocked net profit one year before Hardcastle,
in FY10. While faster rollout of new stores in FY11 and FY12 allowed Jatias to gain
speed, McDonald’s N & E matched the new addition to stores last year with around
30 new outlets the same as McDonald’s W & S. Few weeks ago it also set up the
single largest McDonald’s outlet in the country in Noida.
Amit Jatia, vice-chairman of Westlife Development, did not comment specifically

about the financial revenues but shared that McDonald’s W & S added 60 restaurants
over the past two years, taking the count up from 107 restaurants in FY11 to the
current 166 restaurants (as of June 30, 2013) as the company moved into an
acceleration phase and the business has grown significantly.
A consultant with one of the Big Four firm, on condition of anonymity said, he
believe that going forward, Hardcastle (McDonald’s W & S) will do a better job and
there will be rapid expansion by them due to the funds that the company has recently
raised.”
Westlife recently raised Rs 180 crore from Arisaig Partners, an asset management
firm which chases investments in public-listed consumer-facing companies.
The consultant further added that real estate cost has gone up for quick service
restaurants (QSRs) and one needs to be well funded to expand and thus Jatias are in a
better position to scale up.
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In February this year, according to Amit Jatia, that the firm is planning to increase the
number of outlets in McDonald’s W & S to 250 by 2014. “Typically, we invest Rs 3
crore per restaurant plus there is the cost of real estate. Hence, we plan to spend
around Rs 400-500 crore in the next two years,” said Jatia.
A stock analyst who tracks consumer sector said, “The last two years have definitely
been a game changer of McDonald’s in India with the brand (franchisees) started
making profits despite heavy competition in the QSR space. In such a scenario,
having an organizational structure like Hardcastle has definitely helped. The
franchisee now has solely Indian top management which has led to faster decision
making and scaling up. The restructuring to bring it under a listed firm, which is as
good as a reverse listing, too has helped the company to raise funds.”
Strategy for future
McDONALD’s KIOSK
At McDonalds we have made effort to cover every possible area for serving to the
Customer needs. After serving the meals we have made Kiosk as a means of fulfilling
the custom of something sweet following the main course.
Why KIOSK is an Important Business model?
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· Kiosk is one of the important model of Brand Extensions.
· Kiosk is a Business model which requires comparatively less initial

investment.
· Also it helps us to increase the number of Guest Counts and Sales.
· It is a way of extending our Brand with overall less Initial and Operating
investments.
· Kiosks helps us to give varied choices to our Customers
· Kiosks contribute around 3.7% of our Total Sales.
· Kiosk provides 23% of positive SOI.
· IN 2009 we have 25 Kiosks and plan it has reached
Sales Contribution from New Business Models Kio

· As per the Analysis the Trend of Sales of Kiosk seems to
be on increasing terms.
· In 2007 – 14
Kiosks In 2008
– 22 Kiosks
In 2009 (Plan)-28
Kiosks In 2009(Till
data)-25 Kiosks
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McDonald's is rolling out self-service kiosks in restaurants across the US that allow
customers to order and pay for their food without ever having to interact with a
human
The touch-screen technology is meant to speed up the ordering process and give
people more control over customizing their food, while reducing opportunities for
human error according to the company
Global quick service restaurant Major McDonald’s, which launched its store-in-store
format McCafe in India 18 months ago, is planning to cash in on the growing
popularity of coffee drinking in the country. McCafe is the third line of McDonald's
business in India, after breakfast (the home delivery), and kiosk formats.
McCafe has now been launched in South India with the first outlet being opened in
Bengaluru. As of now there are over 15,000 restaurants that sell the McCafe products
globally.
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“The in-store format enables a quick roll-out of a McCafé with an investment of Rs

30-35 lakh per outlet across key trading areas in metro cities of West and South India.
Within a span of 18 months we have expanded our McCafé network across 41
restaurants in six cities — Mumbai, Ahmedabad, Nashik, Aurangabad, Pune and
Bengaluru. Today, we are well on track to launch over 100 McCafés over the next
four years,” said Smita Jatia, managing director — Hardcastle Restaurants Pvt Ltd, in
Bengaluru on Monday. Hardcastle Restaurants is McDonald's master franchise in the
western and southern markets.
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CHAPTER
07
CONCLUSION.
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CONCLUSION
“The in-store format enables a quick roll-out of a McCafé with an investment

of Rs 30-35 lakh per outlet across key trading areas in metro cities of West and
South India. Within a span of 18 months McDonald’s have expanded the McCafé
network across 41 restaurants in six cities Mumbai, Ahmedabad, Nashik,
Aurangabad, Pune and Bengaluru. Today, we are well on track to launch over 100
McCafés over the next four years,” said Smita Jatia, managing director —
Hardcastle Restaurants Pvt Ltd, in Bengaluru on Monday.
Hardcastle Restaurants is McDonald's master franchise in the western and
southern markets. McCafe has now been launched in South India with the first outlet
being opened in Bengaluru.
Indian growth
McDonald's has invested about 7bn rupees in India since it entered the
market in 1996 and reported growth of about 40%. India has a population of over 1
billion and an emerging and affluent middle class. The food chain has tailored a
number of its products to the Indian market, including the Paneer Salsa Wrap,
Mcspicy and Indi-Mcspicy, McAloo Tikki and the mutton specialty for a country
which does not eat beef, the Chicken Maharaja Mac. "In the next two years, we
should finally have a menu that is entirely relevant to the Indian household," Mr.
Bakshi said.
From the above information it is very clear that Mc Donalds is aggressive

about its Indian operations and this fast-food chain is here to stay feeding millions of
Indians the Jai ho way think global act local.
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CHAPTER
08
BIBLOGRAPHY.
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BIBLOGRAPHY
1. “McDonald’s History - About McDonald’s." About McDonald's.

http://www.aboutmcdonalds.com/mcd/our_company/mcd_history.html
2. www.mcdonalds.com
http://www.mcdonalds.com/us/en/home.html
http://www.mcdonalds.com/us/en/our_story/our_history.html
https://en.wikipedia.org/wiki/History_of_McDonald%27s
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https://en.wikipedia.org/wiki/McDonald%27s
Akansha A. Parad

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PROJECT REPORT

AKANSHA ANIL PARAD

OPPOSITE TO RAILWAY STATION,

I Akansha A. Parad, the student of

AKANSHA ANIL PARAD

Prof. Kalai Selvi Nadar

To list who all have helped me is difficult because they

Lastly, I would like to thank each and every person who

McDonald’s is a globally successful fast-food restaurant. From the time of its

McDonald’s strategy of standardizing their products on its preparation,

McDonald's Corporation is the world's largest chain of fast-food

The McDonald’s Corporation is one of the most successful global restaurant

In order to be a franchisee, an individual must have at least $175,000. There is

The first McDonald's restaurant was located in San Bernardino, CA in 1954

The site of the McDonald brothers' original restaurant is now a monument.

In 2007, the company had record revenues of $22.8 billion, a 9% increase

Franchising refers to the methods of practicing and using another person's

McDonald’s does business in more than 30,000 restaurants in 119 countries

The head office for Hardcastle Restaurants Pvt. Is

Country Quality Assurance & Product Development

This department works closely with the country purchase department. It

Finance & Information Technology

It associates with brand building and protection of the brands. It works

And government authority:-

People Resources / Human Resources.

It conducts activities related to recruitment, selection, remuneration,

Training, Learning & Development.

It is responsible for the training and Development of employees involved in

This department is responsible for the day to day functioning of the

Marketing & Communication.

It is responsible for brand positioning increasing brand awareness and thus

Our vision is supported by a set of core values:

· We are dedicated to providing customers unparalleled levels of quality,

· We approach all aspects of our business with honesty and integrity.

· We always give back to the communities in which we do business.

“To be our customer –favorite place and way to eat.”

CHALLENGES IN ENTERING INDIAN MARKETS

➢ Regiocentricism: Re-engineering the menu – McDonald’s has

To survive, the company had to be responsive to the Indian sensitivities. So

➢ The vegetarian customer – India has a huge population of vegetarians. To cater

SEGMENTATION, TARGETING AND POSITIONING

Segments are children, youth and the young urban family.

% Of kids who influence what FMCC brands their family buys

As shown above, kids reign supreme in FMCG purchase related to food

To target the teenagers, McDonald’s has priced several products aggressively,

Customer Perception and Customer Expectation

Customer perception is a key factor affecting a product’s success. Many

Target Segment What is McDonald’s for me?

Customers expect it to be an ambient, hygienic and a little sophisticated brand that

McDonaldizing the Suppliers

As already mentioned, McDonalds had been working on its supply chain

Value-added services like shredding of lettuce, re-packing of promotional

Dynamix Dairy Industries (Supplier of Cheese

Dynamix has brought immense benefits to farmers in Baramati, Maharashtra by

Trikaya Agriculture (Supplier of Iceberg Lettuce)

Implementation of advanced agricultural practices has enabled Trikaya to successfully

· A specialized nursery with a team of agricultural experts.

· Pre-cooling room and a large cold room for post-harvest handling.

· Refrigerated truck for transportation.

Trikaya Agriculture, a major supplier of iceberg lettuce to McDonald's India, is