CHAPTER

01

INTRODUCTION OF STUDY

1
 1.1 INTRODUCTION OF MARKETING STRATEGY

Marketing strategy is very much important for developing any of the business. Without it, the effort of
the business to attract customer is random and inefficient. The main focus of your strategy must make
sure that your product should fulfill the demands of the consumers and as well as it maintains the
long-term relationship with those customers. To achieve this, you will have to initiate flexible strategy
that responds to change in customer demand and perception. It may also give brand names to your
product which will help you to run your business in new markets smooth and efficient manner. First
of all main purpose of your marketing strategy should be to identify that whether the target customers
are satisfied with your product andservices of your business.

One you have created and implemented your strategy, try to identify the feed from your customer and
if anychanges or I,improvement is required apply it for the maximum satisfaction of the customers.

This helps you to identify that where your strategy needs to be improved and how it can be developed,
so thatit can be implemented for effective action. Before applying any strategy in the business proper
planning programs must be organized within the members of the organization.

1.2 OBJECTIVES OF THE STUDY

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

2. To study in brief about the types of customers.

3. To get the customers feedback related on service and price .

4. To know various trends in fast food.

2
1.3 HYPOTHESIS

• H-1 The marketing strategies used by McDonald's are in-line with the market share growth trends.
• H-2 The Marketing Strategies used by McDonald's will bring positive customer feedback.
• H-3 The Marketing Strategies Used by mcdonald’s will neither bring growth in market share norwill
bring positive customer feedback.

1.4 SCOPE OF STUDY

In the project focus has been made on McDonald’s franchise in India. The challenges faced, their target
market, segmentation strategies and Marketing Strategies adopted by McDonald to suit the Indian
customers. The 5 P’s of McDonald's and also various other strategies specifically used by McDonald
like co-branding , advertising etc. The study also includes Ansoff's product market growth matrix which
determines marketers to consider ways to grow the business. McDonald’s as a service industry its life
cycle is also studied. The present strength and weakness of the company and the future opportunities
and its future threats are also study forbetter analysis of McDonald’s marketing in India.

3
1.5 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
comparedwith others.

1.5.1 DATA COLLECTION

➢ Primary Data

In Primary Data collection, you collect the data yourself using qualitative and quantitative
methods. Thekey is the data you collected is unique to you and your research.

Collection of primary data includes Questionnaires, observations, surveys, etc.

➢ Secondary Data
Secondary Data is one type of quantitative data that has already been collected by someone else for a
differentpurpose to yours

Includes data supplied by a marketing organization, or any other source

You can simply report this data in is original format as to support or evidence for your argument.

1.5.2 SAMPLING

McDonald's employs various marketing strategies, including sampling, to attract customers.

Sampling involves offering small portions of food or beverages for free to potential customers to
encourage trial and drive future sales. The sample size for McDonald's sampling campaigns typically
4
depends on factors such as the target audience, location, budget, and specific goals of the campaign.
McDonald's may conduct sampling events at high-traffic locations, events, or through partnerships with
other businesses to reach a larger audience. The sample size can vary from a few hundred to thousands
of samples distributed during a single campaign. Additionally, McDonald's may leverage digital
platforms and social media to extend the reach of sampling initiatives and gather feedback from
customers.

5
 CHAPTER

02

PROFILE OF THE ORGANIZATION

6
2.1 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 thestylized '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.

7
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 $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. Anestimated 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.

8
2.2 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,

9
2.3 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
worldserving 47 million customers each day. In many countries around the world it does not have a
presence and itscurrent strategy is to focus on the markets where it does not do business. No firm date
has been established forthe 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.

10
 FRANCHISE MODEL

RAY CROC

VIKRAM CROCK AMIT JATIYA

11
 2.4 FUTURE PLANS

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. Itis what RAY KROC taught us.
2. We are committed to our people because we know that a diverse team of well-trained individuals
workingtogether 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 –favorite place and way to eat.”

12
2.5 ORGANIZATIONAL CHART

McDonalds is the world’s most popular and successful fast food chain which serves almost 58 million

people every day. With branches spread all over the world, this fast food chain works onthe basis of

the very efficient staff base, senior administration and support staff.

Each person from the top to the bottom of the hierarchy structure at McDonalds works hard and is

important to its functioning. To understand the hierarchy of this fast food company chain, youcan go

through the following given information.

Top Level Executives

Like every other big business organization in the world, McDonalds too has several top level or C-

level executives who are responsible for decision making,goal setting, finances, operations and

ensuring smooth functioning. The following are the top level job positions at McDonalds:

Finance Department

The finance department of McDonalds is the department which handles the finance, accounting and

money matters of the business. It is responsible for ensuring proper flow of money, right investment

and proper handling of the funds. Each country and area has a separate set of financeand accounting

managers to handle the finances of that division.

Marketing Department

14
The Marketing Department Hierarchy takes care of the marketing and advertising needs and matters.

It ensures that the business gets the right exposure and maintains its brand image effectively. Each

country or area has a separate marketing department to handle the advertisingand marketing of that

area.

Sales Department

The sales department is set to ensure that all sales related duties and tasks are properly handled and

run effectively. Every country has a separate sales head and other sales employees to ensurethe

smooth running of the sales departmentof that country.

Restaurant Level Executives

Besides the owners, directors and other chief executives, each branch of McDonalds in the worldis

run by a core team the members of which are known as restaurant level executives. The following are

the main executives working at this level for the smooth management of each branch .

15
16
 CHAPTER

03

MARKETING STRATEGY

17
 3.1 INTRODUCTION

This helps you to identify that where your strategy needs to be improved and how it can be developed,
so that it can be implemented for effective action. Before applying any strategy inthe business proper
planning programs must be organized within the members of the organization.

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, andsociety at large."

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.

3.2 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 aproduct or service (manage the marketing mix
variables).”
·
· A Marketing strategy defines and describes the objectives or planning through whichyou 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.

18
 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 resourceson
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 goa l.

3.3 ADVANTAGE & DISADVANTAGE

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 andto turn a profit

· identifies competitors and analyzes your product's or firm's competitive advantage

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.

19
3.4 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 andsouthern region.

20
3.5 STRATEGY AS PER INDIAN MARKETS

➢ Regiocentricism : Re-engineering the menu –

McDonald’s has continually adapted to the customer’s tastes, value systems, lifestyle,language and
perception.
GloballyMcDonald’s was known for its hamburgers, beef and pork burgers. Most Indians are barred
by religion not to consume beef or pork.To survive, the company had to be responsive to the Indian
sensitivities. So McDonald’s came up with chicken, lamb and fishburgers to suite the Indian palate.

➢ The Vegetarian Customer -

India has a huge population of vegetarians. To cater to this customer segment, the company came up
with a completely new line of vegetarian items like McVeggie burger and McAlooTikki. The
separation of vegetarian and non-vegetarian sections is maintained throughout the various stages.

21
3.6 SEGMENTATION, TARGETING ANDPOSITIONING

McDonald’s uses demographic segmentation strategy with age as the parameter.The main target
Segments are children, youth and the young urban family.

As shown above, kids reign supreme in FMCG purchase related to food products. So to attract children
McDonald's has Happy Meal with which toys ranging from hot wheels to various Walt Disney
characters are given (the latest in this range is the toys of the movie Minions). For this, they have a tie-
up with Walt Disney. At several outlets, it also provides special facilities like ‘Play Place’ where
children can play arcade games, air hockey, etc.

22
This strategy is aimed at making McDonald’s a fun place to eat. This also helps McDonald’s to attract
the young urban families wanting to spend some quality time while their children have fun at the outlet.

To target the teenagers, McDonald’s has priced several products aggressively, keeping in
mind the price sensitivity of this target customer. In addition, facilities like WI-Fi are also provided to
attract students to the outlets like the one at Vile Parle in Mumbai.

“McDonald’s Mein Hai Kuch Baat” projects McDonald’s as a place for the whole family to
enjoy. When McDonald’s entered in India it was mainly perceived as targeting the urban upper class
people. Today it positions itself as an affordable place to eat without compromising on the quality
offood, service and hygiene. The outlet ambiance and mild background music highlight the comfort
that McDonald’s promises in slogans like “You deserve a Break Today” & “Feed your inner child”.
This commitment of quality of food and service in a clean, hygienic and relaxing atmosphere has
ensured that McDonald’s maintains a positive relationship with the customers.

23
 3.7 MCDONALD MARKETING MIX (5 P’S)

After segmenting the market, finding the target segment and positioning itself, each company

needsto 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?

sellable &
distributable

product
succsess
useful
possiable
&
&
desirable feasible

24
 McDonald's has intentionally kept its product depth and product width limited. McDonald's
studied thebehavior of the Indian customer and provided a totally different menu as compared to its
International offering. It dropped ham, beef and mutton burgers from the menu. McDonald's success
worldwide has been attributed to the ‘“Think Global, Act Local and Sell like a Retailer” philosophy.
McDonald’s followed this international mantra while opening doors to the Indian subcontinent. With
respect to the cultural and traditional sentiments, not only did McDonald's not serve it’s most popular
product The BIG MAC (a beef burger) but also developed an egg-less mayonnaise for the first time in
the worldwide system.

To suit the Indian palette, the McAloo Tikki burger, Veg. Pizza McPuff and Chicken McGrill
burger were among other offerings that were formulated and introduced using spices favored by
Indians. Furthermore, each restaurant kitchen was designed to maintain separate Vegetarian and Non-
Vegetarian food counters.

Reasons for introducing the products

Beef which was a taboo in the Indian market was planned to replace by filling of Aloo Tikki to match
up with the Indian culture.

Salad sandwich was introduced targeting the people who are more conscious about health.

The introduction of Jain salad in the outlet keeping the Jain people rituals of not eating ginger, onion,
potatoes etc.

25
 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 place mainly consists of distribution channels and outlets of the company. It is considered as very
important because the product must be available to the customer at the right place, at the right time and
in the right quantity. In U.S.A nearly 50% of outlets are situated within the distance of 3 minutes.

There are certain degree of fun and happiness that McDonald's provides to its customers. It provides
value position based on the needs of the customer. McDonald's offers proper hygienic atmosphere, good
abidance and better services.

Now McDonald's have also started offering internet facilities at their outlets, along with music system
through radio, not the normal music but the music which is preferred by young generation in order to
attract them.

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

➔ 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.

26
 McDonald's has certain value pricing and bundling strategies such as happy meal, combo
meal, familymeal etc. to increase overall sales volumes.

McDonald’s found success in its strategy of Branded Affordability and introduced the ‘Happy Price
Menu’ of Rs.20/-. Engaging and Memorable campaigns were created to establish the Branded
Affordability communication.

➔ People:

McDonald’s understands the value of both its employees and its customers. It understands the factthat
a happy employee can serve well and result in a happy customer.

McDonald continuously does Internal Marketing. This is important as it must precede external
marketing. This includes hiring, training and motivating able employees. This way they serve customers
well and the final result is a happy customer.

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

➔ Customers

➔ Front line employees

➔ Middle level managers

➔ Front line managers

27
 The punch line “I’m loving it” is an attempt to show that the employees are loving their workat
McDonald's and will love to serve the customers.

➔ Promotion:

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

ADVERTISI
NG

SALES
PERSONAL
PROMOTI
SELLING
ON MARKETING
COMMUNICATI
ON MIX

DIRECT
PUBLIC
MARKETIN
RELATION
G

The promotional activities adopted by the McDonald helps to communicate efficiently with the target
customers. The diagram gives idea about the promotion strategy of McDonald's Application of above
mentioned Communication Mix describes the cost that is feasible as per the consumers.

McDonald's corporate used advertising, personal selling, sales promotion, public relations, and direct
marketing and became world’s largest leading Burger Empire. These five promotion tools are used by
McDonald's to integrate marketing communication program which allows McDonald's to access the
communication channels clearly, consistently and easily transfers messages and product to the target
audiences.

28
3.8 SETTING THE PROMOTION MIX

1) ADVERTISING :

An Advertisement is targeted to attract the masses it reaches to large number of people at a time.
Advertising is one of the most important tools for promotion which had various ways of advertisement
in that advertisement through billboards and media are often used by any of the business enterprise.
Consumers mostly perceive goods which are advertised goods, as they assume it is more rightful.

McDonald's also hold the hand of Advertising. There are three main objectives of advertising for
McDonald’s are to make people aware of an item, feel positive about it and remember it. The right
message has to be communicated to the right people through the right media. McDonald’s does its
promotion through television, hoardings and bus shelters.

2) PERSONAL SELLING :

Personal selling is most effective tool for building buyers preference, convenience and actions. Personal
interaction allows knowing for feedback and adjustments if required. If the organization had a good
Relationship with Buyers they are more attentive towards personal selling.

In personal selling McDonald's employees working in different outlets are the best example of personal
interaction, the employees are directly serving the customers so, and the face to face communication is
easily possible. In the McDonald's outlet there are such staff which are appointed for personal selling
they are the one who perform the activities regarding selling up of goods to customers.

3) PUBLIC RELATIONS :

Highly credible; Very believable; Many forms: news stories, news features, events and sponsor ships,
etc.;Reaches many prospects missed by means of other forms of promotion; Dramatizes company or
product; Often the most under use element in the promotional mix.

Public Relations are also an important part of the McDonald's marketing strategy. The restaurant
employeesplay a huge role in interacting with the public. On a day-to-day basis the employees
commit themselves to customers and the customers' feelings toward the brand. McDonald's feels that
before they communicate

29
with their customers they need to be aware of what their competitors are communicating, so they can
create abeneficial difference between themselves and the competitors.

4) DIRECT MARKETING :

Many forms: Telephone marketing, direct mail, online marketing, etc.; Four distinctive
characteristics:Nonpublic, Immediate, Customized, Interactive; Well-suited to highly-targeted
marketing efforts.

Direct marketing is also one of the efficient tools for promotion. The McDonald's uses tool in the home
delivery services in which they directly serve the order to their home. Also they have a websites which
are more in preference for direct marketing in that they usually mentioned all the new offers along with
the contact number of your nearby outlets.

5) SALES PROMOTION :

Sales promotion activity consist of promoting the business unit through organizing various contest,
programs, functions, distribution of free discounts coupons etc that attracts attention of the customers,
Also offers strong purchase incentives, dramatizes offers, boosts sagging sales Stimulates quick
response; Short-lived; Not effective at building long-term brand preferences.

McDonald's organizes several sales promoting contest and programmes in different retail markets and
outlets in which they distributes free discounts coupons. The statue of Mascot McDonald's is always
there for any occasions that are also one of the logo of McDonald's

Highly credible; Very believable; Many forms: news stories, news features, events and sponsor ships,
etc.;Reaches many prospects missed by means of other forms of promotion; Dramatizes company or
product;
Often the most under used element in the promotional mix.

Public Relations are also an important part of the McDonald's marketing strategy. The restaurant
employees
play a huge role in interacting with the public. On a day-to-day basis the employees commit
themselves to customers and the customers' feelings toward the brand. McDonald's feels that before
they communicate with their customers they need to be aware of what their competitors are
communicating, so they can create abeneficial difference between themselves and the competitors.

30
6) DIRECT MARKETING :

Many forms: Telephone marketing, direct mail, online marketing, etc.; Four distinctive characteristics:
Nonpublic, Immediate, Customized, Interactive; Well-suited to highly-targeted marketing efforts.

Direct marketing is also one of the efficient tools for promotion. The McDonald's uses tool in the home
delivery services in which they directly serve the order to their home. Also they have a websites which
are more in preference for direct marketing in that they usually mentioned all the new offers along with
the contact number of your nearby outlets.

7) SALES PROMOTION :

Sales promotion activity consist of promoting the business unit through organizing various contest,
programs, functions, distribution of free discounts coupons etc that attracts attention of the customers,
Also offers strong purchase incentives, dramatizes offers, boosts sagging sales Stimulates quick
response; Short-lived; Not effective at building long-term brand preferences.

McDonald's organizes several sales promoting contest and programmes in different retail markets and
outlets in which they distributes free discounts coupons. The statue of Mascot McDonald's is always
there for any occasions that are also one of the logo of McDonald's

31
3.9 STRATEGIES

3.9.1 ADVERTISING STRATEGY

There have been many McDonald's advertising strategy and slogans over the years. McDonald’s is one
of the most widespread fast food advertisers. McDonald's Canada's corporate website says that the
business campaigns have always focused on the "overall McDonald's experience", rather than just
product. The purpose of the image has always been "portraying warmth and a real slice of everyday
life." Its TV ads, showing various people engaging in popular activities, usually reflect the season and
time period. Finally, they have never in their advertising history used negative or comparison ads
pertaining to any of their competitors; the ads have always focused only on McDonald's alone.
McDonald's has for decades maintained an extensive advertising campaign. In addition to the usual
media television, radio, and newspaper, the company makes significant use of billboards and signage,
sponsors sporting events ranging from Little League to the Olympic Games. Television has always
played a central role in the company's advertising strategy.

Today, McDonald's has used 23 different slogans in United States advertising, as well as a few other
slogans for select countries and regions because slogans is also considered as important factor in
advertising strategy.

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)

32
 3.9.2 WORLDWIDE GROWTH STRATEGY

McDonald's growth strategy is based on three elements;

· Adding restaurants.
· Maximizing sales and profits at existing restaurants.

· Improving international profitability.

Maximizing sales and profits at existing restaurants will be accomplished through better operations,
innovation, product development and refinement, effective marketing and lower development and
operating costs.

Improved international profitability will be realized as economies of scale are achieved in individual
markets and as the company benefits from the global infrastructure.

3.9.3 SERVICE MANAGEMENT STRATEGY

If we take any fast food restaurants the customer attracts firstly through brand and secondly with the
most important thing to consider i.e. is services offered to them.

If the services of any enterprise is not suitable to customer then it doesn't achieve the aim that has
beenproposed by them.

The company's service management strategy is described within the context of the service model. In
thismodel, market segment, the philosophy culture image of the company, service systems, and human
resources are considered.

3.9.4 OPERATIONS COMPETITIVE STRATEGY

McDonald’s Corporation competes in a challenging market segment by providing need-satisfying
products to customers. In this segment, ineffective competitors often fail without proper strategies.

To sustain its viability, the McDonald’s corporation employs an effective competitive strategy to
makeit stand out against competitors such as other fast food restaurants. McDonald’s competes on
several bases, including: Cost Speed and Nutrition. Their strongest priority is ' Making Customers
Happy '.The company recently made strong changes to its process by introducing the “Made for You”
system.

33
 McDELIVERY

“If you can’t come to McDonald's, McDonald's will come to you.”

After nearly sixteen years in India, McDonald's finally started coming to your doorstep. The key idea
is convenience. We are a quick service restaurant available at high-traffic locations. But there is a large
number of people who find it difficult to travel. The key is to deliver hot and fresh food.

Why McDelivery is an Important Business model?

• McDelivery is one of the Important Business models of Brand extensions.

• McDelivery contributes to around 7.5 % of Total sales.

• The key idea is Convenience because McDonald's believe in being accessible.

• By offering home delivery we can reach out to the Customers and increase our penetration.
• MDS SOI contribution to the store system wise is 15.30%.

• Based on the Data it is presumed that in the Coming days the contribution of McDelivery willbe on
increasing trend.
Analysis shows that the Sales Trend is continuously on increasing Trend.
Compared to 2007 now again there is an Increasing trend.
In 2007 – 27 stores
In 2008 – 34 stores
In 2009 – 40 stores
In 2010 – 100 stores

In 2012- 150 stores

In 2014 celebrated 200 stores
In 2017 37241 locations stores

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3.10 McDONALD’s KIOSK

McDonald's is rolling out self-service kiosks in restaurants across the US that allow customers to

order andpay for their food without ever having to interact with a human

The touch-screen technology is meant to speed up the ordering process and give people more
control overcustomizing their food, while reducing opportunities for human error according to the
company

Why KIOSK is an Important Business model?

Kiosk is one of the important model of Brand Extensions.

Kiosk is a Business model which requires comparatively less initial investment.

Also it helps us to increase the number of Guest Counts and Sales.

It is a way of extending our Brand with overall less Initial and Operating investments.

Kiosks helps us to give varied choices to our Customers

Kiosks contribute around 3.7% of our Total Sales.

Kiosk provides 23% of positive SOI.

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McDonalds Kiosk

McDelivery

36
 CHAPTER

DATA ANALYSIS AND DATA INTERPRETATION

37
4.1 INTRODUCTION

ANALYSIS

McDonald’s has been a leading fast-foods outlet in Vile Parle. But the outlet understudy has other
competitorseating away into its market share. In addition to its traditional rivals—KFC, Dominos, Pizza
Hut—the firm encounters new challenges. Jumbo King competes using a back-to-basics approach of
quickly serving up burgers for time-pressed consumers. On the higher end, the KFC has become potent
competitor in the quick service field, taking away customers from McDonald’s. Perhaps in the new
environment, fast, convenient service is no longer enough to distinguish the firm. At this time, a new
critical success factor may be emerging: the need to create a rich, satisfying experience for consumers.

This brings us to service and experience based competition which McDonald’s can use for
competitive advantage against Jumbo King. Keeping in mind the demographics of the area, McDonald’s
has Wi-Fi enabled the outlet to cater to the student community. It is for this overall “Food, Fun & Folks”
experience that customers pay a premium over the other competitors.

4.2 MCDONALD’S COMPETITOR’S:

Competition also reduces product life cycle; inducing firms to revise their products portfolios
and torevisit their product market to understand changing needs, expectations and perception of
different market
38
segments

The new McBreakfast would be introduced between 6 to 11 am as a pilot project. This would open up
a wholenew revenue stream for McDonald’s by tapping into the student and working population by
providing a healthy and wholesome breakfast.This shows how demographic shift can affect the demand
for products and services. McDonald’s has anticipated these changes to maintain its competitive edge.

4.3 SWOT Analysis of McDonald's

STRENGTH WEAKNESS
1. STRONG BRAND 1. LOW DEPTH AND WIDTH OF
PRODUCT
2. CUSTOMER INTIMACY
3. PRODUCT INNOVATION
4. SUPPLIER INTIMATION

OPPORTUNITY THREAT
1. EXPAND INTO TIER 2 AND 1. CHANGING CUSTOMERLIFESTYLE
TIER 3CITIES TASTE
2. ENTRY INTO BREKFAST 2. INCREASED COMPETITION FROM
CATEGORY LOCAL FAST FOOD OUTLETS LIKE
JOMBO KING

• 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 through.

 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 turnover rate is so high

39
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 controlNew products with different variety should be introduced tocapture the market.

• 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 slowdownPress associating McDonald's
with obesity destroys McDonald's image., McDonald's in the past has been sued for itsunhealthy
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 intothe 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.

47
4.4 DATA INTERPRETATION

Q Which is your favorite product at McDonald’s?

PRODUCTS PEOPLE
(%)
Maharaja Mac 7
McChicken 14
McNuggets 38
French Fries 11
McPuff 11
Filet-o-Fish 9
Other 10

10% 7%
9% 14%

11%

11%
38%

INTERPRETATION

The question asked was what is their favourite product on the menu. As per analysis, out of 100 respondents ,
7% chose Maharaj Mac, 14% chose McChicken, 38% chose McNuggets, 11% chose French Fries and McPuff,
9% chose Filet o Fish.

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Q What Time of the day preferred to eat at McDonald’s food ?

Time People
Morning 10
Afternoon 30
Evening 20
Night 40

INTERPRETATION:

The question ask was what time of day you preffied to eat MacDonald’s food. As per analysis out of 100
respodant,10% people eat at morning, 20%people eat at afternoon, 30%people eat in evening, 40% people eat in
night.

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Q. Is the Product Line Adequate?

INTERPRETATION :

The question asked was what is the Product Line Adequate. As per analysis, out of 100
respondents , 27% said Yes, 34% said No and 39% said Average

50
 Q. What is the main problem you faced at McDonald’s?

RESPONSE PEOPLE ( % )
Long Ques 28
Rude Behaviour 4
Congestion 15
Other 13
No Problem 40

28%
40%

4%

15%
13%

INTERPRETATION :

The question asked was what is the main problem they've faced at McDonald's. As peranalysis,
out of 100 respondents , 28 people said Long Ques, 4 people said Rude Behavior, 15 people said
Congestion, 13 people said other problem, 40 people said NoProblem at All.

51
Q. Which area do you think needs the most improvement?

RESPONSE PEOPLE
(%)
Delivery 31
Capaciousness 23
Product Variety 20
Price 10
Offers & Discounts 10
Other 6

6%
10%
31%
10%

20%
23%

INTERPRETATION :

The question asked was Which area do you think needs the most improvement. As peranalysis,
out of 100 respondents , 31 people selected Delivery, 23 people chose Capaciousness, 20 people
chose Product Variety, 10 people chose Price , 10 people chose Offers & Discounts, 6 people
chose other

52
 Q Do you like Mcdonalds ?

RESPONSE PEOPLE
(%)
YES 56
NO 25
MAYBE 12
NO EXPERIENCE 7

7%
12%

56%
25%

INTERPRETATION :

The question asked was did they like Mcdonalds. As per analysis, out of 100 respondents 59
people said Yes, 25 people said No, 12 people said Maybe, 7 people said they hadNo Experience

53
 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 brandname 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 competencyand
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 hows that marketing strategies provides
competitive edge for every business unit.

McDonald's has invested about 7bn rupees in India since it entered the marketin
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.

54
 QUESTIONNAIRE

Q1. Fast-food Chain visited the most ?

1. McDonald's 5. Subway

2. KFC 6. Starbucks

3. Burger King 7. Pizza Hut

4. Domino's Pizza 8. Jumbo King

Q2. Which is your favorite product at McDonald’s?

a) Maharaja Mac b) McChicken

c) McNuggets d) McPuff
e) Filet-o-Fish f) French Fries
g) Other

Q3. Time of the Day preferred to eat at McDONALD'S ?

a) Morning b) Noon

c) Evening d) Night

55
Q4. 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

Q5. Do you agree that McDonald is changing its image tobecome

a healthy ?

a) Yes b) No

Q6. Is the Product Line Adequate?

a) Yes b) No c) Average

Q7. What do you think about the price of the food inMcDonald's?

a) Extremely Cheap b) Cheap

c) Neutral d) Expensive

e) Extremely
Expensive

56
 Q8. Have you heard of the corruption scandal in McDonald'srecently?

a) Yes b) No c) Maybe

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

a) Long Ques

b) Rude Behavior

c) Congestion

d) Other

e) No Problem

Q10. Which area do you think needs the most improvement?

a) Delivery

b) Capaciousness

c) Product Variety

d) Price

e) Offers & Discounts

Q11. In all, are you satisfied with McDonald's performance?

a) Yes b) No c) Maybe

57
 BIBLIOGRAPHY

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

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