PROJECT REPORT ON

“ CUSTOMER SATISFACTION OF MCDONALD’S”

SUBMITTED BY
KRISHNA HITESHBHAI PATEL
UNDER GUIDANCE OF
PROF. PRIYANKA GAIKWAD
SUBMITTED TO

SAVITRIBAI PHULE PUNE UNIVERSITY

AS A PARTIAL FULFILLMENT OF THE REQUIREMENT OF THE
DEGREE OF BACHELOR OF BUSSINESS ADMINISTRATION
(BBA)
YEAR 2022-2023
SUBMITTED THROUGH

AUDYOGIK SHIKSHAN MANDAL’S COLLEGE OF COMMERCE

SCIENCE AND TECHNOLOGY, PIMPRI, PUNE 411019

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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 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 franchisers. 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. In order to be a franchisee, an individual must have at least

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$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.

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. Today McDonald's is the worlds largest fast food chain serving
47 million customers daily, McDonald's is now one of the most valuable brands globally , worth
more than $30 Billion. Though the Company has roots in the US, McDonald's today has become
an ACCEPTED CITIZEN OF THE WORLD.

FRANCHISEES

Franchising refers to the methods of practicing and using another person's philosophy of
business. The franchiser 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 franchiser. 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

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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 .

THE INDIAN BEGINNING

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.

An American Burger enters Indian for the first time. Let’s start from the beginning. McDonald’s
initially had only two franchises in India, one which belongs to Delhi-based Vikram Bakshi and
the other Mumbai-based Amit Jatia. The interesting fact about this story is that Amit is a
vegetarian person who doesn’t even touch eggs.

Despite that, the man wanted to bring this famous American brand to his country, that deals with
a huge variety of meats. Meats that we don’t eat and are a topic of controversy in India, apart
from the humble chicken.

Another obstacle that came in his path was his strict vegetarian family, where doing a business
that involves chicken burgers is a call for violence. But his belief made him finally convince his
family to invest in bringing the brand to the country. In a way, he convinced India to accept
McDonald’s. This is how an American Burger got into India.

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McDonald’s gave a lot of effort to understand Indian culture and its uniqueness. It chose to be
different from what it is for this diverse country and reinvented itself for India. They considered
the essence of the local culture, choices, and flavors. They shifted the burger to a complete meal
when they realized that Indian’s look into food and spend on it differently. They wanted the 40
bucks spent by Indians to be a value for money. McDonald’s in India was started in 1996 in
Bandra, Mumbai with one single restaurant. It took almost twelve years to grow one restaurant to
50. In the next three years, hundreds of restaurants came that is by 2007- 2010. Thus we can say
that it was a remarkable success they were riding on, which can be attributed to two things: The
Happy meal for children and a full value meal for adults. A complete family package.

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 NEED OF THE STUDY
1. To understand the customer satisfaction of McDonald’s.
2. To understand the needs of the customers.
3. To understand the SWOC analysis of McDonald’s.
4. To analyze customer satisfaction and preferences through customer survey.
5. To study the marketing mix of McDonald’s.
6.

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 OBJECTIVE AND SCOPE

OBJECTIVES:
 To examine the factors influence to purchase McDonald’s.
 To identify overall satisfaction among the customers in McDonald’s
 To understand the needs of the customer of McDonald’s.
 To identify the overall satisfaction among the customers in McDonald’s.
 To study the customers affordability in McDonald’s.
 To measure quantities offered in the product.
 To get feedback from the customer.

SCOPE:
1. The study has been undertaken to know the customer satisfaction of Mc Donald’s in
Coimbatore city.
2. This would help Mc Donald’s to know the level of satisfaction and expectations of
their customers, the impacts of different features of their service and the ways to improve
their service which would increase both sales and reputation.

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 CUSTOMER SATISFACTION
Customer satisfaction is defined as a measurement that determines how happy customers are
with a company’s products, services, and capabilities. Customer satisfaction information,
including surveys and ratings, can help a company determine how to best improve or changes its
products and services. An organization’s main focus must be to satisfy its customers. This
applies to industrial firms, retail and wholesale businesses, government bodies, service
companies, nonprofit organizations, and every subgroup within an organization. It is a measure
of how well a company’s products and services meet customers’ expectations. It reflects your
business’ health by showing how well your products are resonating with buyers. Customer
satisfaction is a focused strategy for many organizations because happy, loyal customers help
businesses earn more money. Measuring customer satisfaction can help a company determine
what’s working well with its products, services and internal processes and what it could improve
or change. Learning about customer satisfaction can help you improve your sales skills and
provide stronger products and services to consumers.

LITERATURE REVIEW
Customer satisfaction Since the latter part of the 20th century, customer satisfaction has been a
topic of great interest to organizations in all market sectors, including, for example, the airline
industry, the hospitality and tourism industry and the food service sector (Anderson and Sullivan,
1993; Churchill and Surprenant, 1982). However, before the 1980s, most businesses were not
customer focused. Rather, they were focused on products, and if customer satisfaction was
evaluated, it tended to be measured informally (Dayr et al., 2003). ―Customer satisfaction refers
to a person's feelings of pleasure or disappointment‖ (Kotler and Keller, 2011: 144) compared to
his or her expectations, post-purchase (Soriano, 2002; Srivastava and Rai, 2018). Customer
satisfaction has most likely been an important key to success since the first forms of trading and
economic exchange existed. In modern theory and practice, customer satisfaction is viewed as
one of the most important drivers of organizational success and a key component of marketing
(Erevelles and Leavitt, 1992; Kurian and Muzumdar, 2017; Leninkumar, 2017; Morgan et al.,
1996; McQuitty et al., 2000). The importance of customer satisfaction in marketing results from

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its role as a predictor of consumer buying behavior (Anderson et al., 1994, 2004; McQuitty et al.,
2000). Customer satisfaction is ―the summary of psychological state that results when the
emotion surrounding disconfirmed expectations is coupled with prior feelings about the customer
experience‖ (Oliver 1999: 28). Later, Oliver (2014: 262) elaborated on the concept of customer
satisfaction and provided a more comprehensive definition, stating that satisfaction is ―the
consumer's fulfillment response. It is a judgment that a product or service feature, or the product
or service itself, provides (or is providing) a pleasurable level of consumption which results in
customer dissatisfaction (El-Manstrly, 2016). A distinction is made in the marketing literature
between transaction-specific and cumulative customer satisfaction (Andreassen, 2000; El-
Manstrly, 2016; Johnson et al., 1995). Transaction-specific customer satisfaction occurs after the
product is consumed and involves an evaluation of one specific purchase (Oliver, 1980, 1993).
Cumulative customer satisfaction is a consumer‘s comprehensive evaluation of product
purchases and subsequent consumption over time (Fornell, 1992; Han et al., 2018; Johnson and
Fornell, 1991; Nguyen et al., 2018). Cumulative customer satisfaction is argued to be more
valuable than transaction-specific satisfaction when predicting consumer buying behavior, as
well as the performance of the organization (Fornell et al., 1996; Johnson et al., 2001; Nguyen et
al.., 2018). Customer satisfaction, whether transaction-specific or cumulative, is associated with
the level of affection customers have of the organization and its brand(s). Oliver (1999, 2014)
noted that customers develop a positive attitude towards the brand when they experience
satisfaction, and that repetitive experiences (cumulative satisfaction) increases customers‘
positive attitudes.

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 MARKETING SCENARIO
The first step in developing a marketing strategy is to understand the customers, reacting to their
changing needs and the changing dynamics of the market. To this end McDonald’s conducts
several stages of in-depth customer research and audits of the McDonald's brand. The research
involves both quantitative and qualitative research methods. This research describes how
McDonald's is perceived and about changes that are taking place in the market. Research is also
conducted into the local area of their restaurants, into the general market environment, and into
specific areas of their business.

Let us look at the various aspects through which McDonalds has tried to position itself in
the Indian market:

1. Product: McDonald's menu internationally is based on five main ingredients: beef, chicken,
bread, potatoes and milk. Their main products are hamburgers, chicken sandwiches, French
fries and beverages. In addition it serves a variety of breakfast items and desserts. The
original McDonald's menu was simplicity itself -hamburgers, cheeseburgers, fries, soft
drinks, coffee and shakes. This limited menu concept triggered the "fast food" concept,
because focusing on just a few items that were prepared with standardized procedures made
food service a model of efficiency. And buying food supplies in quantity as the restaurant
chain grew larger enabled it to keep prices low. Finally, because the menu was limited, it
was able to deliver a consistent product, no matter which restaurant a customer visited. And
this consistency has remained a hallmark of McDonald's even as its menu has expanded over
the years. Customers know they can count on being served the same Big Mac whether
they're at a McDonald's in Moscow, Idaho, or Mumbai, India…the same world famous fries
whether they're in Dallas or Delhi. Mc Donald's India representative says, "We take the
hamburger business more seriously than anyone else." Surprisingly, in India McDonald's has
been particularly successful at catering to local tastes. The global giant is often criticized for
standardizing tastes by serving the same burger the same way everywhere in the world. But
that's far from the truth. Though the core menu--hamburgers, Big Macs, fries, etc.--is
available in all McDonald's restaurants, it's complimented with an array of localized choices.
Usually in Asia, about a third of the menu is made up of dishes you won't find anywhere
else, like Pizza McPuffs in India. In fact, the 25 McDonald's in Bombay, Pune, Delhi etc.,

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 feature a menu that is over 75% locally-developed. India has been the biggest inspiration for
McDonald's fusion chefs. With a population that is mostly Hindu, the restaurant chain can't
serve its mainstay--beef. So most of the standard menu had to be thrown out, down to the
"special sauce" that goes into Big Macs elsewhere. Many Hindus, who are strict vegetarians,
eschew mayonnaise, the sauce's main ingredient. McDonald's India developed a special egg
less mayonnaise for the burgers; instead of eggs it used a large amount of mint. In place of
the Big Mac, McDonald's India developed the Maharaja Mac--a mutton burger. All these
extra steps have been taken to assure Indian customers of the wholesomeness of both
products and their correct preparation. So intense is the idea of Indianization that
McDonald's has opened an all- vegetarian outlet in Ahmedabad, which is predominantly a
vegetarian city.
2. Place: McDonalds is ever expanding and due to this its presence is felt by 3.5 million
customers in India alone and more than a billion people worldwide every day. It has
excellent networking capabilities with its suppliers and ensures quality from them.
McDonalds India's outlets are generally located near community centers (some also have
small parks adjacent to them) to provide the complete family experience).

3. Price: Aimed at luring the Indian middle class, the ice cream cone was started with zero
margins to pull in crowds. McDonald's has always strive to offer quality products at an
affordable price. Its bulk purchasing capabilities have given it the cost advantage. It thus strives
to be an optimum-cost producer -not the lowest cost -since quality comes first for this restaurant
chain. The products are priced keeping in mind the target group. Since the people targeted
belong to the Socio Economic Classification Grid A & B, the company refrained from excessive
or premium pricing. In fact, as already stated earlier, certain items on the menu are actually loss
leaders, which facilitate building traffic into the restaurant. An interesting piece is that the
company claims to have a margin of 40 percent on its soft cone, which is a big hit among the
people. Most of the meal combinations i.e. including burger, French fries and a coke, price are
nominal. This could, according to us be an attempt to use psychological pricing. McDonald’s has
also introduced McHappy Hours, to increase attendance during the lean time (3 pm to 6 pm).
This is also in tune with the school and college kids, who come would like to go out with their
friends after school or college. This has yielded returns and the turnout during this time has
increased sharply.

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4. Promotion: The emphasis is on projecting McDonald's as a global brand relevant to the local
community. The positioning of McDonald's as a family restaurant is being carefully put across to
the consumers.

A) Advertising: McDonalds advertising in India is being handled by Mudra Communications.

Amit Jatia, MD, McDonald's India (Hardcastle Restaurants) has to say the following for Mudra:
"They're completely involved in the brand. They take an active role and we see them as a
partner." McDonald's spends over 5.5crores each year on advertising: the Golden Arches are now
more recognized by kids in metros than their favorite super hero. McDonald's is recognized as
one of the best marketers of the world, investing some hundreds of millions of dollars every year
for advertising and promotion of its image. “Get them in. Trade them up. Get them back.” These
are the three basic steps of McDonald's marketing strategy, as defined internally at Mudra
Communications, the agency handling the account. Shorn of jargon, this simply means objective
number one is to make consumers' step into McDonald's outlets. The second objective is to shift
the consumer to McDonald's core products (the Vegetarian Burger with cheese, the McChicken
Burger with cheese and Fillet-o- Fish) by increasing sampling and showcasing the value aspect
of McDonald's. Third, increase the frequency of visits by making the McDonald's brand
experience unique and memorable. The Indianised items like McAloo tikki burger and pizza
McPuff are instrumental in bringing in the traffic into the store. McDonald's has always shown
bits of real life in their commercials that seems to have become a standard for them. Their
marketing efforts go far beyond advertising, including special food promotions, games, videos,
cassettes, tapes, videos, CDs that customers couldn't get anywhere else for the value. Because of
the diversity of customers that go to McDonald's, they have developed segmented marketing
programs as various key audiences.

B) Public Relations: McDonald's public relations in India are being handled by Corporate Voice
Shandwick, a subsidiary of Weber Shandwick Worldwide. This begins with franchisee
involvement in their communities and extends to other national passions like cricket (McDonalds
invites young and successful cricketers like Yuvraj Singh to inaugurate their restaurants). This
means a well organized psychological bombing aimed at all kind of people, from every race and
social class where the golden arches result to be the overall winner. Recently, McDonalds was
charged by some fundamentalist organizations with using beef talon in its French fries. This was

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picked up by the media and resulted in a big controversy. The consultancy immediately got into
action by sending press releases, calling press conferences and opting for an independent test of
its French fries to show that they did not contain beef talon. This paid off as McDonalds sailed
through the crisis smoothly and the consultancy got the award for the "Best handled Crisis PR
campaign" from the Indian Public Relations Association. The consultancy also gets a lot of
media coverage for the brand.

C) Promotions: Using collectable toys, television adverts, promotional schemes in schools and
figures such as Ronald McDonald the company bombards their main target group: children.
Happy meal combine wholesome food with a toy; Ronald McDonald is a special friend; play
places(like in McDonalds, Priya Complex) provide safe and fun recreation and the alliance with
Walt Disney Company let the children's shout even more.

D) Market Research: McDonald's strategy for communication relies heavily on research to fine
tune its significance and effectiveness. An ear closer to the ground because that's where the
action is! An organization has to be on the look out for any slight signals in the market that,
suggest some kind of change. This is where the role of market research comes in. it can help an
organization identify underlying needs and make changes to capitalize on them accordingly. This
is precisely what McDonald's did. From being classified by consumers as being 'bland' in 1997 to
being sought after in 2000 for 'unique' taste, McDonald's India has been the 'biggest experiment'
for the worldwide chain, what with the Indian outfit having to consistently launch products to
tickle Indian taste buds. Even though the Indian outfit stuck to its core taste that grew on
consumers from 'bland' to 'unique' in three years, with no change factored in by the fast-food
chain, McDonald's India's menu is about 75 per cent different from its global menu. All this can
be attributed to the menu development team set up my McDonald's to explore and exploit the
Indian taste buds.

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McDonald's was the most popular fast food for children across the Asia Pacific region. Children
from 8 of the 14 countries claimed that McDonald's is their favorite fast food. Coca-Cola was
seen as the most popular soft drink preferred by children from 10 of the 14 countries. But taste is
not the only thing that can draw people to McDonald's. There is the snob appeal of foreign food,
which confers status on middle-class Indians flush with cash. And there is the irresistible
attraction of junk food for children the world over, who are drawn to the high-octane marketing
pitch of the fabled Ronald McDonald character.

5. People: McDonald's relies upon a blend of US human resource practices and host country
norms. The firm has over a million employees, a figure that is estimated to double in the next
few years. The organization has a strong commitment to staffing locally and promoting from
within. McDonald's India employs around 1,500 people in Delhi and Bombay. In Bombay alone,
its team comprises a 100-member management and 800-strong crew. McDonalds India invites
applicants having a minimum qualification of higher secondary, very good communication skills,
ability to work in teams and a friendly nature. To survive in the communal market McDonald's
delivers Quality, Service, Cleanliness and Value (QSCV). This chain is also well known because
of its consistency in delivering a customer experience that has value far beyond good food at a
great price. But probably the most attractive side of McDonald's' activity is the training that
stands as background in every single employee. McDonald's corporation started its fortune
trailing people on how to be kind, fast, precise and effective: it has been an absolute pioneer in
this field.

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6. Physical Evidence: A standard and differentiating aspect of McDonald’s menu is that it
displays two different menu boards in each restaurant -green for vegetarian products and purple
for nonvegetarian, making it easier for customers to see their options and make their choices.
Behind the counter, restaurant kitchens have separate, dedicated preparation areas for the meat
and non-meat products -and even crew assigned to the products' cooking have different uniforms
to distinguish their roles. The company struck a better chord with the consumers when after the
consumers felt that the counters at the outlets were "too high", making the McDonald's staff
"unapproachable" it immediately swung into action and reduced the height of the counters. To
reinforce its positioning as a family restaurant with the prime focus on kids, it designed a counter
specifically for kids keeping the height in mind. Again, keeping kids in mind, McDonald's has
done away with somber colors in favor of rich, vibrant ones. Even the paintings that once tended
to be abstract have been replaced with things children could relate to. It has high stools to make
the tables more accessible for small kids. Although the medium through which it is broadcast
may vary depending upon the company, McDonald's offer the same message in every franchise
throughout the world. "McDonald's Mein Hai Kuch Baat" is an attempt to adopt a more personal
approach towards its customers, talking "to" them and not "at" them. This is yet another example
of adding to their image as a global brand.

7. Process: A precise way of considering McDonald's' role of operations is through Porter's

value chain analysis. The Value chain breaks down the firm into its strategically relevant
activities, in order to understand the behavior of costs and the existing or potential sources of
differentiation. A firm gains competitive advantage by perfoffi1ing these strategically important
activities more cheaply or better than its rivals. For a company which feeds some 38 millions
clients every day, finding a reliable quality supplies is a major factor for success. McDonald's
has solved the problem by making food supplies part of their success. McDonald's distributors
are strategically to be accessible to the each restaurant and carry practically everything, from
meat and potatoes to light bulbs. Coca-Cola, the well-known beverage, has been with
McDonald's from the beginning supplying beverages. McDonald's is increasingly using its
leverage to capitalize upon global purchasing practices The most important part of McDonalds
India's operations was developing a cold chain which is the process of procurement,
warehousing, transportation and retailing of food products under controlled temperatures.
Although McDonalds sources most of it's raw materials locally, several products such as French

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fries, specialty cheeses, some meats and fishery products, flavors, condiments and ingredients are
often imported. McDonald's India is banking on quality and hygiene as its unique selling
proposition to capture a sizeable portion of the fast- food market in India. This explains the
company's attempts to select its chain of local food suppliers. For three years, before it opened its
first restaurant in India, McDonald's and its international supplier partners worked together with
local Indian companies to develop products that met McDonald's quality standards. These
standards are also in keeping with Indian Government regulations on food, health and hygiene.

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Market Segmentation of McDonald's

It is important to make a marketing plan because it is important to understand the company's

target clients for better communication and marketing. It's easier to communicate with a
consumer base after you've figured out who they are. This turns into the most successful
advertising to the consumer base imaginable. McDonald's divided their items into categories
based on psychographic, behavioral, and demographic factors. Children, learners, families, and
businessmen are all targets for their products. McDonald's targets these market sectors because
of their enormous size, as well as the projected growth rates. These categories are known for
having extremely high-profit margins. Segmentation of the Market.

Placement Segmentation

The division of a single market into smaller market segments is known as market segmentation.
This is done to make it simpler to respond to the needs of small categories of customers. As a
result, McDonald's may market various goods to groups based on their consumption habits. A
segment usually refers to a group of people who have similar traits. Gender, geography, age,
lifestyle, economic level, and a variety of other factors are among them.

Behavioral Segmentation

Special occasions, such as children's birthday celebrations, are related to behavioral

segmentation. McDonald's attracts local youth clubs and sports teams not just because of its low
costs but also because of its convenient location. McDonald's can accommodate a large
population of persons and appeals to the younger audience. Their food and promotion are
targeted primarily toward retaining a young consumer base.

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Demographic Segmentation

McDonald's prefers to concentrate on demographic segmentation as a major segment. This group

consists of students, children, and parents. McDonald's provides a welcoming setting for
students, allowing them to socialize with their peers. McDonald's is a popular lunch venue for
students as well as an after-school hangout. McDonald's scores big with their happy meal and the
complimentary toy that comes with it because kids are a significant emphasis.

Psychographic Segmentation

McDonald's needs to create and advertise new goods, as well as modified products with minimal
fat and cholesterol, to stay ahead of the competition. This is the current trend, and eating healthy
is on everyone's mind in the United States. McDonald's and the fast-food business face fierce
competition. With it in consideration, it's time to devise a penetrating pricing plan. This would
enable the corporation to launch new and improved items at a cheaper cost than the competitors.
This will boost the company's market share and align with its marketing goals. The final
objective is to grow sales to increase overall income.

Targeting of McDonald's

Targeting refers to selling things to certain groups determined through segmentation. How well
does McDonald's choose and target the proper demographics? Marketers should iterate between
establishing corporate culture and having knowledge about segment size and anticipated
profitability, according to experts. McDonald's, on the other hand, according to its marketing
director, seeks out certain parts of its target demographic and then tailors or positions its products
to each category. McDonald's does not employ a Big Mac manager or a salad group, unlike other
large packaged goods firms that have brand managers for their numerous products.

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Positioning of McDonald's

The term "positioning" refers to the process of selecting the marketing mix that is most suited to
the target client group. The positioning matrix indicates that certain combinations make far more
sense than others, and positioning is done by manipulating the marketing mix 4Ps. McDonald's
employs adaptive product positioning, which entails the corporation redefining products and
services regularly in response to market developments.

SWOT ANALYSIS OF MCDONALD’S.

 Strength:

McDonald's is a market leader in the fast food industry. McDonald's has a very strong brand
image. McDonald has expanded its business to more than 125 countries with more than 33000
outlets through out the world. McDonald's has one competitive advantage and that is Strategic
location. In India they are located in busy shopping malls, Airports and busy drive throughs.

 Weaknesses:

McDonald's has created very successful brand image but the market segment and is too focused
on Kids. McDonald's is often related to unhealthy food and obesity. Employee turn over rate is
so high in India in particular.

 Opportunity:

McDonald's can introduce healthy food consisting of low calories items. They should put more
efforts in Research and Development. Management should try and find ways to reduce food
wastage which leads to cost control new products with different variety should be introduced to
capture the market.

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 • Threats:

McDonald's is facing major competition from its rivals KFC and Burger King all over the world.
In India local curry shops are offering great challenge to McDonald. Company's rapid growth
has made McDonald's very vulnerable to other countries economic slowdown Press associating
McDonald's with obesity destroys McDonald's image. McDonald's in the past has been sued for
its unhealthy products. McDonald's

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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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.

Moments of Truth

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

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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 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.

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SOME OF THE POPULAR SLOGANS

Let’s eat out! (1960-1965)

Look for the Golden Arches! (1965-1967)

You deserve a break today (1971-1975 (1980-1983)

McDonald's and you (1983-1984)

Good time, great taste (1988-1990)

There's nothing quite like McDonald's (1988-1990)

You Deserve A Break Today (1989-1990)

Food, folks and fun (1990-1991)

Have you had your break today? (1995-1997)

My McDonald's (1997)

We love to see you smile (2000-2003)

I'm loving' it (2003-present India)

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STANDARDIZATION V/S ADAPTATION

Standardization :

McDonald's has a slogan.” Think globally and act locally”.McDonald's sell standardized product
the taste, make up,ingredients,looks,weight etc will be similar In one part of the world to the
other part of the world. Cheese Burger in United Kingdom will taste similar to a cheese burger in
USA. Think globally and act locally can be proved in India as McDonald's in India has changed
its menu list,.Halal Burger and McVeggie burgers have been introduced looking to the customers
believes in India. Similar experience has been exercised in Middle east and Fiji. In Middle east
eating of Bacon is banned by government and Religious beliefs, .Halal food is served in Middle
east, .McVeggie Burger in India will taste the same in comparison to McVeggie burger in Fiji.
McDonald's sell standardized products. All the products should be looking,tasting,weighing and
prepared in the same way across the globe. McVeggie burger was prepared in India after
Research and Development was conducted purely in India.

Adaptation :

McDonald's follows strategy of product adaptation. McDonald's slogan ”think globally and act
locally” is the best example for McDonald's Adaptation strategy will be India. McDonald's
cannot use beef at all to fry the fries and burger cutlets (Cows are sacred due to religious belief
of Hindu’s) Bacon cannot be used in Middle east as there are Muslim countries and it is against
their religious belief to eat pork products are tailored according to the personal taste of the
country people where it operates. Due to adaptation McDonald's menu in various countries is
different.

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 RESEARCH METHODOLOGY

The Quality & Reliability of research study is dependent on the information that is collected in a
scientific and methodological manner. Scientific planning of designing of research method is a
blue print for any research study. therefore proper time and attention should be given in
designing the plan of research. Efficient design is that which ensure that the relevant data are
collected accurately. The researcher has to think about what procedure and techniques should be
adopted in the study. He should arrive at the final choice by seeing that methodology chosen for
project is the best one, when compared with others.

DATA COLLECTION

 PRIMARY DATA

Primary data has been collected through survey of customers and manager.

 SECONDARY DATA

Secondary data has been collected from the browser.

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 DATA ANALYSIS

According to the customer survey data analysis has been done. Following are the responses
given by the customers.

Q.1 Are you satisfied with the service provided by McDonald’s?

YES
NO
MAYBE

The above pie chart shows that 83.3% people are satisfied with the services provided by
McDonald’s and 16.7% people are unsure about it.

Q.2 What is the main problem you faced at McDonald’s?

LONG QUEUE
WRONG ORDER
HYGIENE PROBLEMS
NOTHING TO COMPLAIN

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The above pie chart shows that 16.7% people have problem with long queues, 16.7% people
have faced problem of wrong order and 66.7% people have nothing to complain.

Q.3 What do you like about McDonald’s?

SERVICE
PRODUCT VARIETY
HYGIENE
LOCATION

The above pie diagram shows that 16.7% people like the services provided by McDonald’s,
33.3%50% people like the product variety, 33.3% people like the hygiene.

Q.4 Do you think McDonald’s will be number one fast food chain restaurants among all of its
competitors?

YES
NO
MAYBE

31
16.7% people think that McDonald’s will be number one fastest food chain restaurants among its
competitors and 83.3% people think there’s a probability of it happening.

Q.5 Which type of McDonald’s promotion advertising catch your eyes?

INTERNET
TV
NEWSPAPER

The above data shows that 80% people are attracted to McDonald’s by internet advertising and
20% by TV advertising.

Q.6 Does the McDonald’s advertising influence you?

YES
NO
MAYBE

50% people think they are probably influenced by the advertising and 50% people are sure about
it.

32
Q.7 Do you use special offer/coupons for your order?

YES
NO

50% customers use special offers/coupons and 50% of them does not use them.

Q.8 Which aspects of McDonald’s attracts you?

FOOD
ADVERTISING
TASTE
ENVIRONMENT

16.7% people are attracted to McDonald’s by the food and environment and 33.3% people are
attracted by the advertising and taste.

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Q.9 Would you recommend McDonald’s to others?

YES
NO

100% customer’s will recommend McDonald’s to their friends and family.

Q.10 Are you satisfied with the food of McDonald’s?

YES
NO

100% customer’s are satisfied with the food provided by McDonald’s.

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 LIMITATIONS

Certain limitations are inherent with this project work.100% response rate was not found from
the respondents. Some extent of biasness was found because of Brand loyalty while answering
the questions.

Lack of interest of the respondent was one of the major problems.

35
 CONCLUSION

Marketing Strategies implied by McDonald’s clearly gives the entire comprehensive information
that is necessary for the growth and development of a business enterprise.

Basically, the strategies that are implemented by McDonald’s includes many basic essentials
features like market research, innovative ideas, customers views, forecasting consumers demand,
planning, organizing etc, these are the few basic essentials elements that plays a vital role for the
successful business and also in creating the brand name of a product. Today, in this fast moving
dynamic world the demand for goods and services are increasing at an alarming rate due to
which there is greater competency and competitors ruling in the market. Therefore, most of the
companies adopt different types of marketing strategies in order to serve their customers in a
more better and efficient manner than their competitors so that, their business can easily survive
in the market. This is how that marketing strategies provides competitive edge for every business
unit.

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 McDonald's 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.

36
 BIBLIOGRAPHY
• http://www.aboutmcdonalds.com/mcd/our_company/mcd_history.html

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open-100-outlets-of-mccafe-in-india-115042000958_1.html

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solo-tuitear/

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37
38
 McDonald’s over the past seven years has been successful to place itself in the
mindset of the Indian customer as an affordable outing compared to the initial
impression of “BIBLIOGRAPHY

• http://www.aboutmcdonalds.com/mcd/our_company/mcd_history.html

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open-100-outlets-of-mccafe-in-india-115042000958_1.html

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%3D

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bebida-amigo-solo-tuitear/

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products/food/mcdonalds-to-roll-out-self-order-kiosks-and-table-

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39