Project report on “MARKETING STRATEGIES OF

McDONALDS”

SUBMITTED IN PARTIAL FULFILLMENT FOR THE AWARD

OF THE DEGREE OF
BACHELOR OF BUSINESS ADMINISTRATION 2021-2024

UNDER THE GUIDANCE OF

MS. SHAILLY BHASIN
ASSISTANT PROFESSOR, VIPS

SUBMITTED BY:VAIBHAV SHARMA

Roll no: 06117701721
Batch No. :2021-2024
(BBA 2 SEMESTER Section: B)

VIVEKANANDA SCHOOL OF BUSINESS STUDIES

VIVEKANANDA INSTITUTE OF PROFESSIONAL STUDIES
AU BLOCK (OUTER RING ROAD) PITAMPURA DELHI -
110034
 STUDENT DECLARATION

This is to certify that I have completed the Project titled “MARKETING

STRATEGIES OF McDONALDS” under the guidance of “(MS. SHAILLY
BHASIN)” in partial fulfillment of the requirement for the award of degree
of Bachelor of Business Administration (BBA) at Vivekananda Institute of
Professional Studies, Vivekananda School of Business Studies, New Delhi.
This is an original piece of work and has not been submitted elsewhere.

DATE: 11 JULY 2022

STUDENTSIGNATURE:

STUDENT NAME: VAIBHAV SHARMA

ENROL NO: 06117701721

 ACKNOWLEDGEMENT

It is a matter of great satisfaction and pleasure to present this project report

on “MARKETING STRATEGIES OF McDONALDS”. I take this
opportunity to thank all my faculty for their encouragement and able
guidance at every stage of the project.

I am grateful to Ms. Shailly Bhasin, my project guide for sparing her

precious time and guiding me and for giving valuable suggestions for
compiling the project report. I express my heartfelt gratitude to all those
people who have helped me directly or indirectly in completing this project.
 CERTIFICATE

This is to certify that the project titled “MARKETING STRATEGIES OF

McDONALDS” is an academic work done by “VAIBHAV SHARMA”
submitted in the partial fulfillment of the requirement for the award of the
degree of Bachelor of Business Administration (BBA) from Vivekananda
Institute of Professional Studies, Vivekananda School of Business Studies,
New Delhi., under my guidance & direction. To the best of my knowledge
and belief the data & information presented by him/her in the project has
not been submitted earlier.

Project Guide

SHAILLY BHASIN
 SUMMARY

McDonald's is a highly successful fast-food chain worldwide. Since its inception,

it has experienced great success and is expanding globally. Strong franchisee
entry, standardisation, and adaption strategies all contributed significantly to
McDonald's enormous growth and positive brand image.

When compared to its rivals, McDonald's stands apart thanks to its policy of
standardising its goods' preparation, presentation techniques, and adaption
approach.

Knowing the approach of one of the most successful companies will be really
helpful to me because marketing is my area of interest. As a result, I decided to
research McDonald's for my 100-point project at TYBMS.

Studying McDonald's and its marketing system has greatly aided my ability to
comprehend marketing concepts, marketing strategies, and the actual application
of McDonald's standardisation and adaptability strategies.
 SCOPE OF THE STUDY

The project's primary focus is the Indian McDonald's franchise. the difficulties
they encountered, their target market, segmentation techniques, and the
marketing strategies McDonald's used to cater to Indian clients. The five
principles of McDonald's as well as numerous more tactics utilised exclusively
by McDonald, such as co-branding, advertising, etc. Ansoff's product market
growth matrix, which directs marketers to think about methods to expand the
firm, is also included in the study. The life cycle of McDonald's as a service
sector is also investigated. For a more thorough examination of McDonald's
marketing in India, it is also studied the company's current strengths and
weaknesses, as well as its potential future prospects and potential threats.
 OBJECTIVES OF THE STUDY

1. To analyze various aspects of Marketing by McDonald's.

2. To study in brief about the nature and types of customers of
McDonald's.
3. To estimate the future trends of McDonald's in the Market.
4. To know various trends in Marketing.
5. To get the customer feedback on McDonald's

•
 RESEARCH METHODOLOGY

The information must be gathered in a scientifically and methodologically sound

manner in order for the research study to be of high quality and reliability. The
blueprint for any research study is scientific planning and development of the research
methodology. Therefore, careful thought and time should be put into creating the study
plan. Effective designs make sure that the pertinent facts are accurately collected.
The researcher must consider the methods and procedures that should be used in the
investigation. By determining that the methodology selected for the project is the best
one when compared to others, he should arrive at his final decision.

DATA COLLECTION

Primary Data

You gather the data yourself utilising both qualitative and quantitative techniques when
collecting primary data. The fact that the data you gathered is specific to you and your
research is crucial.
Surveys, observations, questionnaires, and other methods are used to collect primary
data.

TITLE
 CHAPTER 1: INTRODUCTION (1 – 5)

1. INTRODUCTION 2

2. HISTORY 4

3. FRANCHISES 5

CHAPTER 2 : LITERATURE REVIEW (6 – 8)

1. INTRODUCTION TO STRATEGY 7

2. IMPLEMENTATION OF STRATEGIES 8

CHAPTER 3 : COMPANY’S OVERVIEW AND MARKETING

STRATEGY (9 – 37)

1. INTRODUCTION TO MARKETING STRATEGY 10

2. THE INDIAN BEGINNING 14
3. FRANCHISEE MODEL 15
4. VISION 16
5. STRATEGY AS PER INDIAN MARKET 17
6. SEGMENTATION, TARGETING AND POSITIONING 18
7. MCDONALD'S MARKETING MIX 20
8. SETTING THE PROMOTION MIX 26
9. CO-BRANDING STRATEGY 27
10. ADVERTISING STRATEGY 31
11. WORLD-WIDE GROWTH STRATEGY 32
12. OPERATIONS COMPETITIVE STRATEGY 33

CHAPTER 4 : OTHER STRATEGIES (38 – 42)

CHAPTER 5 : DATA ANALYSIS AND INTERPRETITION (43 – 48)

CHAPTER 6 : CONCLUSION (49 – 50)

QUESTIONNAIRE (51 – 53)

LIMITATIONS (54)

SUGGESTIONS (55)

REFERENCES (56)
 CHAPTER-01
INTRODUCTION

1
 INTRODUCTION

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

One of the most prosperous international restaurant companies is the McDonald's Corporation. In
order to penetrate new markets and take a piece of the international fast food business, they have
implemented effective management and global expansion tactics. This great success of
McDonald's has been made possible by the company's best practises in the worldwide food
sector, global growth trends and obstacles, and many lessons learnt from their international
expansion. This demonstrates how McDonald's builds brand and customer loyalty for its goods
and services.

Brothers Dick and Mac McDonald establish the Airdrome, a hot dog stand, near the Monrovia,
California, airport in 1937. A year later, in 1940, the brothers relocate the Airdrome facility to San
Bernardino, where they establish the first McDonald's restaurant. Despite not having created the
hamburger or fast food, McDonald's has virtually become synonymous with both.

In 1962, the McDonald's Golden Arches symbol was first used. Jim Schindler designed it to imitate
brand-new arch-shaped restaurant signage on the building's exterior. He combined the two golden
arches to create the recognisable "M" that can be seen all over the world. The stylised "v" logo
created by Fred Turner and developed by Schindler was intended to be a more fashionable business
emblem than the Speed chef figure that had previously been utilised.
In 1968, the McDonald's name was incorporated into the logo.
There are 31,886 McDonald's restaurants around the world that serve Big Macs, Chicken McNuggets,
salads, and French fries. The majority of eateries have drive-through service, and some suburban
establishments provide kid-friendly outside play areas.

2
McDonald's restaurants are run by independent franchisers in about 70% of cases. Since there are
already too many locations in the United States, most new McDonald's are now being opened in Asia,
the Middle East, and Europe.

An individual must have at least $175,000 to be a franchisee. In the entire system, there are around
2,400 owner/operators. McDonald's wants to increase sales by keeping its doors open all day long.
Sales of breakfast items are thought to account for 30% of retail sales. A double cheeseburger is part
of the company's dollar menu, which it introduced in an effort to attract clients who value
affordability.

3
 HISTORY

Dick and Mac McDonald, two brothers, opened the first McDonald's restaurant in 1954 in San
Bernardino, California. Since he believed the restaurant was fantastic, milk shake machine salesman
Ray Kroc bought the brothers' rights to the business. In 1955, Ray Kroc built the first McDonald's in
Des Plaines, Illinois, and advocated for cleanliness in dining establishments. As it signed franchisees
to open locations across the nation, McDonald's would expand swiftly. In 1965, McDonald's would
become public.

One of Ray Kroc's earliest franchisees, Jim Delligatti, came up with the idea for the Big Mac, which
was first distributed throughout the company in 1968. By the late 1960s, he had twelve locations
running in Pittsburgh. Herb Peterson, the proprietor, created the Egg McMuffin 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,

4
 FRANCHISES

Franchising is the process of putting another person's business theory into practise. For a portion of
the independent operator's gross monthly sales as well as a royalty fee, the franchisor offers the
independent operator the right to market its goods, methods, and trademarks. The franchiser
frequently makes available a variety of tangibles and intangibles, including training, national or
worldwide advertising, and other support services. Most contracts have a lifespan of five to twenty
years, and franchisees will suffer substantial repercussions if they are prematurely cancelled or
terminated.

Every day, McDonald's serves 47 million customers from its more than 30,000 outlets spread
throughout 119 different nations Its present plan is to concentrate on the markets where it does not
currently operate because it has no presence in many nations throughout the world. The launch of
new markets isn't scheduled to happen on any specific day. McDonald's has a presence in some
markets, although it does not seek franchisees there, and it has provided guidance in those markets.
The customers' expressed interest in McDonald's and their ongoing support of our outlets are much
appreciated by McDonald's.

5
 CHAPTER-02

Literature Review

6
 Introduction to strategy

‘Strategy defines how organization should use their resources to meet their objectives.’ Companies
must be flexible to respond rapidly to competitive and market changes .They must benchmark
continuously to achieve best practice. They must outsource aggressively to gain efficiencies .And
they must nurture a few core competencies in the race to stay ahead of rivals. Operational
effectiveness and strategy are both essential to superior performance, which is the primary goal of
any enterprise .But they work in different ways. In the article what is strategy? The primary purpose
of all organizations established is to have ‘superior performance’ (Porter, November-December 1996
p.61). To accomplish desirable profit, two important needs are verified .The first critical success
factor is the operational effectiveness within company .Operational effectiveness is described as
‘performing similar activities better than rivals perform them’ (Poter, November-December 1996
p.62). However, it is not enough just to learn how to perform the activities better today .The success
in operational effectiveness must be sustained over time. Therefore, there must constantly be
improvements in a company’s operational effectiveness; otherwise there is a possibility for
competitors to approach easily. Operational effectiveness means performing similar activities better
than rivals perform them .Operational effectiveness includes but is not limited to efficiency .It refers
to any number of practices that allow a company to better utilize its inputs by, for example, reducing
defects in products or developing better products faster. On the other hand, strategic positioning
means performing different activities from rivals or performing similar activities in different ways.

7
 Implementation of strategies

A strategy implementation framework encompasses by clear and quantifiable strategic goals,

enabling strategic initiatives, enabling strategic assets and enabling change management
competencies and tools, After developing and formulating the strategies, the company has reached
the second step of the cycle. Strategies can communicate to all employees within the organization. It
is important to accomplish with good precision. Helpful instruments like, strategy maps, balanced
scoreboards and strategic themes make the translating process of strategy easier. The strategy map for
example, visualizes the chain of cause and effect relationship between strategic objectives and a
balanced scoreboard is a tool that visualizes the target 8 for each strategic objective. The last
suggested instrument is strategic themes, which can describe as a simplification of the strategic map.
Once strategies have been developed and communicated, the subsequent step is to make plans in how
to achieve. At first the company needs to decide what processes should priorities on improving .Then
plan operations which can be divided into four steps, such as, improving of processes, sales plans,
resource capacity plan, dynamic operating and capital budgets. To get more output of their input we
need to eliminate wasted effort employ, more advanced technology, motivate employees better,
having greater insight into managing particular activities or sets of activities. These are important
source of differences in profitability among competitors because they directly affect relative cost
positions and levels of differentiation.

8
 CHAPTER – 03

COMPANY’S OVERVIEW AND

MARKETING STRATEGY

9
 INTRODUCTION OF MARKETING STRATEGY

Developing a marketing strategy is crucial to the success of any firm. Without it, a company's
efforts to draw customers are haphazard and ineffective. Your strategy's primary goal should be
to ensure that your product satisfies consumer wants and fosters enduring relationships with
those customers. You will need to implement a flexible strategy that adapts to shifting client
demand and perception in order to do this. Additionally, it may provide your product a brand
name, which will assist you in operating your business smoothly and effectively in new areas.
First of all main purpose of your marketing strategy should be to identify that whether the target
customers are satisfied with your product and services of your business.

Once your strategy has been developed and put into effect, try to ascertain client feedback and,
if necessary, make any necessary changes or improvements to ensure that customers are
completely satisfied.

This assists you in determining where your plan needs to be strengthened and how to enhance it
so that it can be put into practise for efficient action. Before implementing any strategy, the
organization's members must first develop proper planning programmes.

10
 WHAT IS MARKETING?

“Marketing is the activity, set of institutions, and processes for creating, communicating,
delivering, and exchanging offerings that have value for customers, clients, partners, and
society at large."

Satisfaction of needs & wants

Through Ideas,Products And
Services

From the above definition we are able to understand that a successful marketing deals
with satisfaction of both the parties. The definition basically explains that there is a
simple process i.e. is “selling something to somebody” however, the definition conveys
that an exchange of goods and services without any barter system and having common
currencies, that exchange is called a sale. So while achieving the goals of the marketing
by selling, it is not compulsory that both the parties should agreed upon the transaction.

11
 DEFINITION OF MARKETING STRATEGY

· “Marketing Strategy is a set of specific ideas and actions that outline and guide
decisions on the best or chosen way to create, distribute, promote, and price a product or
service (manage the marketing mix variables).”

A Marketing strategy defines and describes the objectives or planning through which you
are going to satisfy your consumer needs in the selected target market. It does not
involve written work but, it includes communication between different departments of
the business enterprise for example: sales department, managers, executives etc.

In fact it is a set of strategies that implied by the organization in order to increase the
growth and development of the business. Normally strategy deals with the manner in
which your organization plan to achieve the consumer satisfaction and maximize the
profit.

Marketing strategy is a process that can allow an organization to concentrate its limited
resources on the greatest opportunities to increase sales and achieve a sustainable
competitive advantage. A marketing strategy should be centered on the key concept that
customer satisfaction is the main goal.

12
 Business Advantages

· Identifies needs and wants of consumers

· Determines demand for product
· Aids in design of products that fulfill consumers needs
· Outlines measures for generating the cash for daily operation, to repay debts and to
turn a profit
· Identifies competitors and analyzes your product's or firm's competitive advantage
· Identifies new product areas
· Identifies new and/or potential customers
· Allows for test to see if strategies are giving the desired results

Business Disadvantages

·Identifies weaknesses in your business skills

·Leads to faulty marketing decisions based on improperly analyzed data
·Identifies weaknesses in your overall business plan

13
 The Indian beginning

McDonald's commenced operations in India in October 1996 as a 50/50 joint venture between the
McDonald's Corporation [USA] and two Indian companies. The northern and eastern operations of
Connaught Plaza Restaurants Pvt. Ltd, which is led by Vikram Bakshi, comprise restaurants in New
Delhi, Uttar Pradesh, Rajasthan, Punjab, Haryana, West Bengal, etc.

McDonald's restaurants are owned and run by Amit Jatia's business, Hardcastle Pvt. Ltd. In addition
to Chennai, HRPL has restaurants in Madhya Pradesh, Karnataka, Maharashtra, and Andhra Pradesh.

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.

14
 FRANCHISE MODEL

RAY KROC

VIKRAM BAKSHI AMIT JATIA

15
 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, a clean welcoming environment and a fun experience at a fair price.

OUR VALUES

Our vision is supported by a set of core values:

1. We are dedicated to providing customers unparalleled levels of quality , service,

cleanliness, and value. It is what RAY KROC taught us.

2. 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.

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

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

5. We celebrate our achievements, yet we are never satisfied with our results.

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

16
 STRATEGY AS PER INDIAN MARKETS

➢ Regiocentricism: Re-engineering the menu – McDonald's continuously adapts to the tastes,

value systems, lifestyle, language, and perception of its customers. McDonald's was well-
known throughout the world for its beef and pork burgers. Religion forbids the majority of
Indians from eating beef or pork.

The business needed to be sensitive to Indian sensibilities in order to survive. To suit the Indian.

➢ The Vegetarian Customer: India has a sizable vegetarian population. The business developed an
entirely new line of vegetarian products, including the McVeggie burger and McAlooTikki, to
cater to this customer sector. Throughout each level, there is a distinct segment for vegetarians
and non-vegetarians.palate, McDonald's developed chicken, lamb, and fish burgers.

17
 SEGMENTATION, TARGETING AND POSITIONING

Age is the criterion used by McDonald's in its demographic segmentation strategy.

Children, young people, and the young urban family are the key target segments.

As was just mentioned, children are the biggest consumers of FMCG items connected to
food. To draw in kids, McDonald's offers the Happy Meal, which includes toys like Hot
Wheels and numerous Walt Disney characters (the latest in this range is the toys of the
movie Minions). They have a partnership with Walt Disney for this. It also offers unique
amenities like 'Play Place' at a number of its locations, where kids may play arcade
games, air hockey, etc.

18
 This plan aims to transform McDonald's into an enjoyable dining experience. This helps
McDonald's draw in young urban families looking to spend some quality time together
as their kids enjoy themselves at the restaurant.

McDonald's has aggressively priced a number of products in order to appeal to

youngsters, bearing in mind their high price sensitivity. Additionally, amenities like Wi-
Fi are offered to draw students to stores like the one in Mumbai's Vile Parle.

McDonald's is portrayed in "McDonald's Mein Hai Kuch Baat" as a family-friendly

restaurant. When McDonald's first arrived in India, it was thought that it was primarily
going after metropolitan upper class residents. It now markets itself as an inexpensive
dining option without sacrificing the standard of the cuisine, service, or cleanliness.
McDonald's promises relaxation in phrases like "You deserve a Break Today" and "Feed
your inner child," which are highlighted by the atmosphere of the restaurant and the
soothing background music. 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.

soothing background music. 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

TARGET SEGMENTS VISITS McDONALD's TO

A parent with two Visits McDonald’s to give the

children a treat. Children
want to visit McDonald’s as it is
a fun place to eat.

A business customer Visits McDonald’s during the

day
as service is quick; the food

19
 tastes great and can be
eaten in the car without
affecting a busy work
schedule
Teenager Hangout with friends, but keep it
affordable.

MCDONALD 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 McDonald's are:

1. Product

2. Place

3. Price

4. People

5. Promotion

➔Product:

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 .

How should the company design, manufacture the product so that it enhances the customer
experience?

20
McDonald's has purposefully kept the depth and breadth of its product offerings minimal. In contrast
to its international menu, McDonald's offered a completely different menu after studying the
behaviour of Indian customers. Burgers made of ham, beef, and mutton were removed off the menu.
The "Think Global, Act Local, and Sell like a Retailer" strategy has been credited with contributing
to McDonald's success on a global scale. In order to enter the Indian subcontinent, McDonald's
adhered to this universal maxim. In consideration of cultural and traditional sensibilities, McDonald's
not only discontinued serving its most well-known product, The BIG MAC (a beef burger), but also
created an egg-free mayonnaise for the first time in the system globally.

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
favoured by Indians. Furthermore, each restaurant kitchen was designed to maintain separate
Vegetarian and Non-Vegetarian food counters.

21
 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.

➔Place :

The location mostly consists of the company's outlets and distribution channels. It is seen as
being extremely significant since the buyer must be able to purchase the goods at the proper
location, appropriate moment, and appropriate amount. Nearly half of the stores in the United
States are within three minutes of each other.

The level of enjoyment and satisfaction offered to customers by McDonald's varies. Based on
the demands of the consumer, it offers value positioning. McDonald's provides a proper,
hygienic environment as well as improved services.

In order to attract customers, McDonald's has recently began providing internet access at their
locations coupled with a music system through a radio that plays music popular among the
younger population rather than standard music.

There are also games for children the one example is air hockey. Children play games till the
time there parents spend quality time in McDonald's

22
 ➔Price:

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.

McDonald’s came up with a very grasping punch line “Aap ke zamane mein ,baap ke
zamane ke daam”. This pricing strategy was founded to attract middle class and lower class
people and the effect can clearly be seen in the consumer base that McDonald's has now.

To boost overall sales volumes, McDonald's uses various value pricing and bundling methods
like the happy meal, combo meal, family meal, etc.

McDonald's launched their 'Happy Price Menu' for Rs. 20/- after finding success with its
Branded Affordability approach. The Branded Affordability communication established via
the creation of memorable and engaging campaigns.

23
➔People:

McDonald's is aware of the worth of both its clients and staff. It is aware that contented
workers provide good service, which in turn makes customers pleased.

Internal marketing is something McDonald does constantly. This is significant because

external marketing must come first. This entails finding competent individuals and
developing their skills. By doing this, companies may provide excellent customer service
and ultimately have pleased clients.

The level of importance has changed to be in the following order (the more important people are at
the top):

➔ Customers

➔ Front line employees

➔ Middle level managers

➔ Front line managers

The punch line “I’m loving it” is an attempt to show that the employees are loving their work at
McDonald's and will love to serve the customers.

➔Promotion:

What is the suitable strategy and channels for promotion of the product?

24
The marketing strategies used by McDonald's facilitate effective communication with the target
audience. The illustration illustrates McDonald's promotion approach. The cost that is reasonable in
accordance with the customers is described by the use of the aforementioned communication mix.

In order to establish itself as the world's top Burger Empire, McDonald's corporate used advertising,
personal selling, sales promotion, public relations, and direct marketing. By integrating these five
promotion methods into its marketing communication strategy, McDonald's is able to reach its target
audiences with messages and products that are delivered in a clear, consistent, and simple manner.

25
 SETTING THE PROMOTION MIX

1) ADVERTISING : An advertisement reaches a lot of people at once since it is designed to

appeal to the masses. One of the most crucial instruments for promotion is advertising. There
are many different forms of advertising, but all businesses frequently employ billboards and
the media. Consumers typically view products that have been advertised as being more
legitimate.

Furthermore, McDonald's holds the hand of advertising. The three major goals of
McDonald's advertising are to raise awareness of a product, foster pleasant feelings toward
it, and cement its memory. The appropriate audience must get the appropriate message
through the appropriate media. McDonald's advertises on television, in billboards, and on
bus shelters.

2) PERSONAL SELLING : The best tool for establishing buyer preferences, convenience, and
behaviours is personal selling. Personal engagement enables receiving feedback and, if
necessary, making modifications. If a firm and its customers have a positive relationship,
personal selling will receive greater attention.

Employees of McDonald's working in various locations are the best example of personal
interaction in personal selling because they are serving consumers directly and can easily
have face-to-face interactions. The employees at the McDonald's outlet who have been
designated for personal selling are the ones who handle the tasks associated with selling
products to customers.

3) PUBLIC RELATIONS : Very believable; highly credible numerous formats, including news
articles, news features, events, and sponsor ships; reaches a large number of prospects that are
ignored by conventional techniques of promotion; plays up a brand or item; frequently the
component of the promotion mix that is least employed; reasonably priced (while it's not
"free" as many people believe—there are charges associated with it)
Another crucial component of McDonald's marketing strategy is public relations. The
interaction with the patrons is greatly influenced by the restaurant staff. The personnel
dedicate their daily efforts to the clients and their perceptions of the brand. McDonald's
believes that in order to effectively differentiate itself from the competition, it is important to
be aware of what the competitors are saying before engaging with their customers.

4) DIRECT MARKETING : Numerous formats: telemarketing, direct mail, web marketing, etc.;
Four distinguishing traits: non public , immediate, customised, interactive; Ideal for highly
focused marketing initiatives.

26
 Direct marketing is one of the most effective methods for advertising. When providing home
delivery services, McDonald's employs a tool to bring the customer's order right to their door.
Additionally, they have websites that are more suited for direct marketing because they
frequently list all the latest offers along with the phone numbers of your nearest locations.

5) SALES PROMOTION : Offering significant purchase incentives, dramatising offerings, and

advertising the business unit through various contests, programmes, events, and the
distribution of free discount coupons, among other things, captures clients' attention and
increases drooping sales. encourages prompt response; Short-lived; Ineffective for creating
enduring brand preferences.
In various retail areas and shops, McDonald's runs a number of sales-promoting contests and
programmes where they hand out free discount coupons. For any occasion, the McDonald's
mascot statue, which is also a part of the company's emblem, is always present.

CO-BRANDING STRATEGY

One of the useful tools for growing a firm and offering the same items in various ways is the co-
branding plan. Co-branding actually entails forming a partnership with another company and
providing the customer with both of the items. It aids in generating profits for the company as well as
in boosting sales and organisational development.
Through specific contracts or agreements, the two distinct brands become a co-brand, and in
accordance with the agreement, they divide the profits from their respective brands. The following
list includes various examples of McDonald's co-branding strategy.

• COCA-COLA

One soft drink company, Coke, has a long-standing partnership with McDonald's. Coca-Cola is
the greatest cold drink available at McDonald's, and it is offered to consumers alongside a
variety of McDonald's menu items, such as happy meals and happy pricing menus. Because
children and young people alike prefer coke, so do their parents. Thus, Coca-cola was developed

27
 by keeping in mind what the consumer wanted. The purpose of this co-branding initiative by
McDonald's is to boost both companies' sales volumes.

Of course, this co-branding technique has helped both businesses succeed in gaining the
happiness of their customers.

The Coca-Cola Company said on April 27, 2009, that starting this year, McDonald's U.S.
locations will offer a "refreshed" line up of fountain and bottle beverages. This initiative, which
is a component of a bigger beverage strategy, will give McDonald's customers even more
beverage options, satisfy their evolving beverage preferences, and satisfy their desire for more
suitable, practical beverage selections.

 WALT DISNEY

McDonald's has unveiled a line of 100 limited-edition Happy Meal toys that draw inspiration
from Disney's beloved cast of animated, theatrical, and television characters. The McDonald's
premiums feature a combination of current and vintage Disney characters, representing more than
40 Disney films, allowing children and parents of all ages to reminisce about their greatest Disney
experiences.

Each Happy Meal premium is completely adorned and is displayed on a memorial base that bears
the character's name, the Walt Disney World "100 Years of Magic" logo, as well as the
character's debut date.
28
 Ariel, Aladdin, Bianca, Pocahontas, Tarzan, Jesse, and Hercules are among the more recent
additions to the historical cast of Disney characters featured in the McDonald's Happy Meal
promotion featuring the Walt Disney World "100 Years of Magic" celebration. Other Disney
favourites include Mickey Mouse, Dumbo, Cinderella, and Mary Poppins.

Each Happy Meal comes with one toy, which can also be purchased at participating McDonald's
restaurants.

 B ARBIE TOYS

Since the Happy Meal has been available, McDonald's Barbie toys have frequently been bundled
with them. One of the most well-liked toys in a McDonald's Happy Meal for the past 30 years has
been Barbie. Barbie Happy Meal Toys come in the shape of several popular Barbie dolls. These
toys have grown to be a highly sought-after category for both Barbie and McDonald's toy
collectors.

Eight collectible Barbie dolls were released by McDonald's in 1994, including Bicycling Barbie,
Jewel and Glitter Shani, Camp Barbie, and Camp Teresa.

 HOT WHEELS

McDonald's and Hot Wheels die-cast car history: Since 1961, McDonald's has made an effort to
create marketing for kids by including little, relevant plastic toys with their Happy Meals. Using
the Hot Wheels models from the regular line, the first car models delivered for McDonald's began
in 1983 and continued through 1990. McDonald's discovered a different method in 1991 to
introduce the Hot Wheels in its Happy Meals.

Some of these were Hot Wheels by Collector Number, which were moreover initially put in a
factory plastic baggie. Since then, there have been occasional yearly promotions for particular car
models. They offered enclosed toys such Bigfoot, Tonka, Hot Wheels, Matchbox, Stompers 4X4,
and Hot Wheels models.

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  MCDONALD'S TIE-UP WITH BHARAT AND HINDUSTAN PETROLEUM PETROL
PUMPS

The idea behind placing their stores close to gas stations is to enable them to sell their goods on
highways as well. McDonald's already has 14 locations along major thoroughfares, and they
intend to open half of its restaurants along these routes in the upcoming year.

They collaborate with oil marketing firms like Hindustan Petroleum and Bharat Petroleum to
launch on a revenue-sharing basis in order to do that.

To service the clients who conduct their daily activities through roads, businesses
sprouted up on major thoroughfares. Most people choose to shop at food outlets near
highways for dinner; few people go for breakfast. So, idea of McDonald's to start on
highways is that they can offer even dinner as well as their existing fast food items.

30
 ADVERTISING STRATEGY

Over the years, McDonald's has used a variety of advertising campaigns and catchphrases. One of
the most well-known fast food advertisements is McDonald's. According to the corporate website
of McDonald's Canada, the company's marketing campaigns have always emphasised the "whole
McDonald's experience" rather than just the food. It has always been intended to "portray warmth
and a real slice of everyday life." Its TV commercials typically reflect the season and time of year
by featuring a variety of people doing in well-liked activities. Additionally, they have never in the
history of their advertising employed comparison or derogatory ads regarding any of their rivals;
instead, all of their advertisements have exclusively highlighted McDonald's.For many years,
McDonald's has maintained a robust marketing effort. The corporation heavily utilises billboards
and signs in addition to the traditional media outlets like television, radio, and newspapers. It also
sponsors sporting events like Little League and the Olympics.

Television has always played a central role in the company's advertising strategy.

Due to the fact that slogans are now seen as a crucial component of advertising strategy, McDonald's
currently uses 23 distinct slogans in its advertising in the United States as well as a few more for
specific countries and regions.

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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 WORLDWIDE GROWTH STRATEGY

Three key components make up McDonald's expansion strategy:

The three pillars of McDonald's expansion plan are:

(1) opening new restaurants;

(2) increasing sales and profits at current restaurants; and

(3) enhancing international profitability.

Better operations, innovation, product creation and refinement, efficient marketing, and reduced
development and running expenses will be used to increase sales and profits at currently
operating restaurants.

As economies of scale are attained in specific markets and the business reaps the rewards of the
global infrastructure, improved worldwide profitability will be gained.

SERVICE MANAGEMENT STRATEGY

If we look at any fast food restaurants, the client is drawn in first by the brand and then by the
most crucial factor, which is the services provided to them.

Any company's services must be appropriate for its customers in order to fulfil its stated
objectives.

The service model is discussed in relation to the company's service management strategy. This
model takes into account the market sector, the company's philosophy, culture, and image, as
well as its service delivery methods and people resources.

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 OPERATIONS COMPETITIVE STRATEGY

McDonald's Corporation competes in a difficult market niche by offering clients products that meet
their needs. Without sound plans, ineffective competitors frequently fall short in this market.

The McDonald's firm has a strong competitive strategy to set itself apart from rivals like other fast
food restaurants in order to maintain its sustainability. McDonald's competes on a variety of bases,
such as: Speed, Price, and Nutrition

Making customers happy is their top goal. By implementing the "Made for You" approach, the
company recently underwent significant adjustments to its procedure.

ANSOFF PRODUCT MARKET GROWTH MATRIX

Igor Ansoff developed the Ansoff Product-Market Growth Matrix, a marketing technique that was
initially presented in his Harvard Business Review article "Strategies for Diversification" (1957).
There are four different conceivable product/market pairings, therefore the matrix enables marketers
to think about how to expand the company through new goods and new markets.

This matrix aids businesses in determining the best course of action given their existing performance.
The matrix includes the following four tactics:

1. A plan for entering new markets

2. Market expansion strategy
3. 3. A plan for product development
4. 4. Diversification

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 o MARKET PENETRATION STRATEGY

When a business enters or penetrates a market with its current products, market penetration happens.
The greatest way to do this is to take advantage of your rivals' customers.

Other strategies include luring customers who have never used your product before or persuading
repeat customers to buy more of it. When a product and a market are already established, market
penetration takes place. The world's most well-known fast food brand is McDonald's. Many people
believed that opening the first McDonald's in Hong Kong in 1975 was a mistake for the fast food
chain. Several defences were offered for this assertion.

However, the fundamental factor is that at that time, Americans and Hong Kong Chinese had quite
different views on eating. While Hong Kong Chinese see breads as snacks, the American fast food
business McDonald's views them as a full meal. Instead of being only a relic of American culture,
McDonald's gradually assimilated into Hong Kong's culture and way of life. The McDonald's cuisine
was quickly accepted by the Hong Kong Chinese as being suitable for individuals just like them
because it is common fare.

Future More contends that the arrival of McDonald's in Hong Kong society altered the cultural
landscape of the city. Hong Kong underwent the same McDonalization as the rest of the world.

o MARKET DEVELOPMENT STRATEGY

In currently targeted segments, a market development strategy aims to attract non-buying customers.
Additionally, it aims to reach fresh markets of clients.

Before executing a market development strategy, a marketing manager must consider the following
issues: Is it successful? Will new or modified items need to be introduced as a result? Has the
consumer and the channel been sufficiently analysed and studied?

34
Existing customers, competition customers, non-buyers in current segments, and future segments are
the four groups the marketing manager employs to focus more on the market segment selection.
McDonald's is currently focusing on market segments using the technique outlined above.As their
consumers' tastes and preferences vary, they are developing new menus to serve them synonymously,
such as happy pricing menus and beverages like milk shakes and cold coffees. Additionally, by
keeping their competitors in mind, they are developing items to compete with them, such as the
chicken McNuggets they developed in response to KFC. They are implementing price strategies for
both previously untapped markets and non-buying customers.

o PRODUCT DEVELOPMENT STRATEGY

The term "new product development" (NPD) is used in business and engineering to refer to the entire
process of bringing a new good or service to market. In the NPD process, there are two parallel paths:
one involves concept generation, product design, and detail engineering; the other involves market
research and marketing analysis.

In their entire strategic process of product life cycle management, which they utilise to retain or
increase their market share, businesses often view new product development as the initial stage in
creating and commercialising new products.

When a business develops new items, it frequently attracts new clients for those products. Thus, for
businesses to remain competitive, new product development can be a significant business
development strategy.

35
36
 o DIVERSIFICATION

One type of growth marketing plan for a firm is diversification. Through increasing sales volume
attained from new items and new markets, it aims to boost profitability. Either at the corporate level
or the level of the business unit, diversification might take place.

It is most likely that it will grow into a new sector of an industry that the business is already a part of
at the business unit level.

At the corporate level, it's typically quite exciting to venture into a potential industry outside the
purview of the current business unit.

In 2001, McDonald's opened two hotels in Switzerland, one each in Zurich and Lully, marking the
company's entry into the hospitality sector.

The "Golden Arch Hotels" were marketed as four-star establishments with the most up-to-date
technology in each room and extremely creative, contemporary interior design. Guests' reactions and
evaluations of their stays there were diverse.

Most people appeared to think that the hotel's four stars didn't seem to fit with McDonald's
reputation. The first hotel owned by McDonald's was the Zurich Golden Arch.

37
 CHAPTER-03
ANALYSIS

38
 ANALYSIS

In Vile Parle, McDonald's has long been a popular fast-food restaurant. However, the outlet
underdog's market share is being eaten away by other rivals. The company faces new difficulties in
addition to its usual rivals—KFC, Domino's, and Pizza Hut. Jumbo King competes by providing
customers with burgers promptly in order to meet their time constraints. On the higher end, KFC has
emerged as a formidable rival in the fast service industry and is displacing McDonald's.

Fast and convenient service may not be enough to set the company apart in the new climate. A new
crucial success component might be forming right now: the requirement to give customers a rich,
gratifying experience.

We now come to the service- and experience-based rivalry that McDonald's can employ to its
advantage while competing against Jumbo King. Given the local demographics, McDonald's
equipped the outlet with Wi-Fi to serve the student population. Customers pay more than other
competitors for this whole "Food, Fun & Folks" experience.

39
 MCDONALD’S COMPETITOR’S:

Competition also shortens the life cycle of products, forcing companies to review their product
portfolios and revisit their markets in order to understand how different market groups'
requirements, expectations, and perceptions are changing.
As a pilot experiment, the new McBreakfast would be offered from 6 to 11 am. Through the
provision of a nutritious breakfast, McDonald's would be able to reach out to the working and
student populations, creating a whole new revenue stream.
This demonstrates how changing demographics can impact consumer demand for goods and
services. In order to maintain its competitive advantage, McDonald's has anticipated these changes.

40
 SWOT Analysis of McDonald's

• Strength: McDonald's is a market leader in the fast food sector, which is a strength. McDonald's enjoys
a highly positive brand reputation. More than 125 nations now have McDonald's restaurants, and there are
more than 33000 locations worldwide. One competitive advantage that McDonald's has is its strategic
location. In India, they can be found in crowded airports, drive-through lanes, and shopping centres.

• Weaknesses: Although McDonald's has developed a highly effective brand image, the company is
overly concentrated on the kid market. McDonald's is frequently linked to bad food and obesity.

Particularly in India, there is a very high rate of employee turnover.

• Opportunities: McDonald's has the potential to introduce wholesome foods with few calories. They
ought to work harder on R&D. In order to gain market share, management should look for strategies to
reduce food waste, which would help them control costs.

41
• Threats: Around the world, McDonald's competitors Burger King and KFC pose a serious threat. Local
curry businesses present a formidable competition to McDonald's in India. McDonald's is extremely
exposed to the economic recession in other nations as a result of the company's rapid growth.

McDonald's reputation is ruined when the media links it to obesity. In the past, McDonald's has been sued
for selling unhealthful food.

The Road Ahead

➢ Entry into Tier 2 and Tier 3 cities - The new urban Indian family is McDonald's main target market.
The company is currently growing to Tier 2 cities like Pune and Jaipur due to the shifting
demographics of its customers and the tectonic social and cultural changes that can be seen in Tier 2
and Tier 3 cities as a result of globalisation.

➢ Rolling out McBreakfast across all locations - The company recently debuted McBreakfast in India,
its foray into the breakfast meal market. This has now been introduced as a pilot programme in a few
stores. It is offered in the Vile Parle location in Mumbai. The business sees this sector as a major
future development engine.

42
 CHAPTER -04
DATA ANALYSIS AND
INTERPRETATION

43
Q. Which is your favourite product at McDonalds ?

PRODUCTS PEOPLE ( % )

Maharaja Mac 19.8

McChicken 16.5

McNuggets 9.9

French Fries 23.1

McPuff 23.1

Mc Aloo Tikki 0.8

Other 6.8

INTERPRETATION :

What item on the menu is your favourite? was the inquiry posed. According to study, out of 121
responses, 19.8% selected Maharaj Mac, 16.5 % selected McChicken, 9.9 % selected McNuggets,
23.1 % selected French Fries and McPuff, 0.8 % selected Aloo Tikki, and 6.8 % selected Others.

44
 Q. Is the product line adequate ?

RESPONSE PEOPLE ( % )

YES 71.9

NO 28.1

INTERPRETATION :

Is the Product Line Adequate? was the query. According to study, out of 121 respondents, 71.9% said
yes, 28.1% said no.

Q. What is the main problem you faced at McDonalds ?

45
 RESPONSE PEOPLE ( % )

Rude Behaviour 4.1

Congestion 14.9

Other 5

Food Quality 19

No Problem 57

INTERPRETATION :

What is the biggest issue that they have encountered at McDonald's was the question posed.
According to analysis, out of 121 replies, 19 persons mentioned food quality, 4.1 mentioned rude
behaviour, 14.9 mentioned traffic, 5 mentioned another issue, and 57 mentioned no issue at all.

46
 Q. Which area do you think needs the most important ?

RESPONSE PEOPLE ( % )

Delivery 19

Product Variety 23.1

Price 18.2

Offers & Discounts 36.4

Other 3.3

INTERPRETATION :

Which area do you believe needs the most improvement, was the query. Out of 121 respondents,
19 selected delivery, 23.1 selected product variety, 18.2 selected price, 36.4 selected offers &
discounts, and 3.3 selected other, according to study.

Q. How satisfied are you with McDonalds ?

47
 INTERPRETATION :

Question asked was how satisfied are they with McDonald’s. As per analysis, out of 121
respondents, 3.3% rated 1, 9.1% rated 2, 26.4% rated 3, 34.7% rated 4, 26.4% rated 5.

48
 CHAPTER-5
CONCLUSION

49
 CONCLUSION

McDonald's marketing strategies clearly provide all of the comprehensive information required for a
commercial enterprise's growth and development. In general, the strategies used by McDonald's
include a number of fundamental elements, such as market research, creative ideas, customer
opinions, forecasting consumer demand, planning, organising, etc. These are just a few of the
fundamental elements that are essential for a successful business as well as for developing a product's
brand name. The demand for goods and services is rising alarmingly quickly in today's fast-paced,
dynamic world, which has increased market competition and competency. In order to service their
clients better and more effectively than their rivals, most businesses therefore employ a variety of
marketing methods, which helps them maintain their market share. This demonstrates how marketing
techniques give every business unit a competitive advantage.

Since entering the market in 1996, McDonald's has invested over 7 billion rupees in India and has
seen growth of about 40%. India features a middle class that is both emerging and wealthy, with a
population of over 1 billion people. The restaurant business has adapted a number of its menu items
for the Indian market, including the Paneer Salsa Wrap, Mcspicy and IndiMcspicy, McAloo Tikki,
and the Chicken Maharaja Mac, a mutton specialty for a nation that does not consume beef. In the
next two years, Mr. Bakshi predicted, "we should have a menu that is fully appropriate to the Indian
household."

Given the information above, it is abundantly evident that McDonald's is aggressive about its Indian
operations and that this fast food restaurant company is here to stay, serving millions of Indians
according to the Jai Ho philosophy of thinking locally but acting globally.

50
 QUESTIONNAIRE

NAME :
GENDER :
AGE :
CONTACT NUMBER :

Q. Fast-food Chain visited the most ?

a) McDonald's b) Subway

c) KFC d) Starbucks

e) Burger King f) Pizza Hut

g) Domino's Pizza

Q. Which is your favourite product at McDonald’s?

a) Maharaja Mac b) McChicken

c) McNuggets d) McPuff

e) Mc Aloo Tikki f) French Fries

g) Other

Q. Time of the Day preferred to eat at McDONALD'S ?

a) Morning b) Noon

c) Evening d) Night

51
 Q. What do you think about the change of size of food of McDonald's in recent years?

a) Extremely Small b) Smaller

c) Neutral d) Bigger

e) Extremely Bigger

Q. Do you agree that McDonald is changing its image to become a healthy ?

a) Yes b) No

Q. Is the Product Line Adequate?

a) Yes b) No

Q. What do you think about the price of the food in McDonald's?

a) Extremely Cheap b) Cheap

c) Neutral d) Expensive

e) Extremely Expensive

52
 Q. Have you heard of the corruption scandal in McDonald's recently?

a) Yes b) No c) Maybe

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

a) Long Ques

b) Rude Behaviour

c) Congestion

d) Other

e) No Problem

Q. Which area do you think needs the most improvement?

a) Delivery

b) Capaciousness

c) Product Variety

d) Price

e) Offers & Discounts

f) Other

Q. In all, are you satisfied with McDonald's performance?

53
 a) Yes b) No c) Maybe

54
 LIMITATIONS

 The study is very limited demographically.

 The sample size is very small so the conclusion cannot be generalized.
 Lack of time was also a major limitations.
 Some of the responses to the questionnaire were not very accurate or detailed due to the
busy schedules of the respondents.

55
 SUGGESTIONS

McDonalds‟ can use following promotional techniques which should be appropriate to be used
for increasing the sales:

 Increase its product line.

 To have more variety to choose from, to include more deserts and more items.
 To provide better and quick service
 .4. Lower the supply chain cost so that it helps in cost reducing.
 To expand their Happy Meal choices to attract and retain customers.
 To educate about healthy lifestyle.
 Introduction of cafeterias serving premium and specialty coffees and other beverages
 and other products such as cakes, pastries etc in the existing McDonald‘s.
 Provide with better ambience.
 Focus on gifts for all generations i.e. youth, kids‘ especially senior citizen which is
 completely new concept.
 Special promotions during festivals as Indians tend to spend more at such events.
 Increasing the space for provision of birthday party areas.
 Try to sponsor college festivals.
 Work for social welfare of the society

56
 REFERENCES

• “McDonald’s History - About McDonald’s." About McDonald's.

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

• www.mcdonalds.com

• http://www.mcdonalds.com/us/en/our_story/our_history.html

• https://en.wikipedia.org/wiki/History_of_McDonald%27s

• http://www.business-standard.com/article/companies/mcdonalds-toopen-100-
outlets-of-mccafe-in-india-115042000958_1.html
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%3D%3D

• https://en.wikipedia.org/wiki/McDonald%27s

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bebida-amigo-solo-tuitear/
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• http://economictimes.indiatimes.com/industry/consproducts/food/mcdonalds-to-
roll-out-self-order-kiosks-and-tableservice/articleshow/57565348.cms
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