Marketing Strategies of

Presented By:
Himanshu Dalakoti (028) Mahima Jain (068)

Introduction
McDonalds is the Eighth Most Poweful Brand in the World. Total Revenue for McDonalds in 2011-12 was $27006 million. And from India it was $740.2 million.

Brief History
McDonald's was started as a drive-in restaurant by two brothers, Richard and Maurice McDonald in California, US in the year 1937.

By mid-1950s, the restaurant's revenues had reached $350,000.

In 1957- Quality, Service, Cleanliness and Value became companys motto. In 1965, McDonald's went public

McDonalds In India
In 1996, first McDonalds restaurant opened on Oct. 13, at Basant Lok, Vasant Vihar, New Delhi. McDonald's India is a 50 50 JV partnership between McDonalds Corporation (U.S.A) and two Indian businessman Amit Jatia (Hardcastle Restaurants Private Limited, Mumbai) and Vikram Bakshi (Connaught Plaza Restaurants Private Limited, Delhi). Approximately 75% of the menu available in McDonalds in India is Indianized and specifically designed to woo Indian customers.

Product Mix

Product Mix

Veg Menu
McVeggie McAloo Tikki Paneer Salsa Wrap Crispy Chinese Veg McCurry Pan Pizza McPuff

Non-Veg Menu
Chicken Maharaja Mac McChicken Fiet-O-Fish Chicken Mexican Wrap Chicken McGrill

Beverages
Cold Coffee Ice Tea Soft Drinks Mc Shakes Hot Serves

Frozen Deserts
Soft Serve Cone Mc Swirl Soft Serve Flavor Burst Floats

Break fast Menu

Usual working hours: 11am to 11pm Recently came up with new timings: 7am to 11pm Only available in selected outlets. Introduced egg on the menu for breakfast

Packaging and Labeling

Clearly mentions

that the burger is a Veg or a Non-Veg Burger

Mentions the name of the burger and the colour is different for different types of burgers

Co - Branding
McDonalds has major tie-ups with various companies as their cobranding Statergy.

Few of Them are listed Below:

Coca-Cola Barbie Cadbury Hotwheels

Pricing

Initial focus on metros Mumbai and Delhi.

Relatively high income.

Move to smaller satellite towns.(Gurgaon and Pune)

Jaipur and Agra to attract foreign tourists.

Pricing Strategy

Purchasing power pricing:a) In 1997 slashed prices for vegetable nuggets and soft serve cone.

b)

In September 2001, they offered Veg surprise

burgers for Rs 17.

c) March 2004 Aap ke zamane mein, baap ke

zamane ka daam.

Pricing Stratergy
Value Ladder strategy :a) Started offering value meals in a range of prices. b) Ensure affordability and attract widest section of customers. c) Brought the customer and provided a range of entrylevel products. d) Try those new items and graduate to higher-rungs. e) E.g- if a customer starts with McAloo Tikki, he will finally graduate to McVeggie and so in Non veg. f) Helped its Volume business.

Aap ke zamane mein, baap ke zamane ka daam!!!

Value Pricing. a) Happy price menu Rs 20.

b)
c) d)

Economeal Rs 49(save Rs 11).

McChicken & McVeggie Meal Rs 75,Rs 65 (Save Rs 15). Happy Meal for Kids Rs 69,99,109 (toy free).

e)
f)

Big saving Meals Combos Rs 109 Rs 119(Save Rs 36).

A-la carte menu Rs 45- Rs 65 (Veg) Rs 55- Rs 65 (Non Veg)

a)
b)

Desserts Rs 12 Rs 25.
Beverages Rs 25- 50 ( a little costly)

Product Bundling

Package deal. The most common startegy in fast food industry. The most preferred style for customers of McD.

Plays on Psychological factor of the customer.

Customer acquisition costs are high. Consumers appreciate the resulting simplification of

the purchase decision.

The product mix offers are different in various parts of India.

80-20 Menu Board

80% visual. 20% descriptive. Easier for customers to understand what 29,39,49,59,89,99 rupee options are. Pricing range, quick service, no-tips environment attracted middle class and

students.

Competitive Pricing
Food items McD SUBWAY KFC PIZZAHUT DOMINO S

Burgers & Pizzas

Combo Meals Beverages

Rs 20- Rs 70
Rs 49-Rs 119 Rs 25- Rs 50 Small300ml Rs 12-Rs 25

Rs 65- Rs 135
Rs 45- Rs 175 Rs 35- Rs 45 Small300ml Rs 20-Rs 50

Rs 25 Rs175
Rs 55-Rs 150 Rs 30-Rs 55 Small300ml Rs 15-Rs 65

Rs 55- Rs 175 (regular)

Rs 120- Rs 250 Pet beverage MRP (600 ml) Rs 40- Rs 60

Rs 35- Rs 140 (regular)

Rs 120- Rs 230 Rs 30 (600 ml)

Desserts

Rs 25 (100ml cup of Baskin Robbins)

Sustaining HOW?
Cost control strategy:-

a) Well established low cost

supply chain. b) Ensures efficiency and speed

in distribution.
c) Huge increase in volume sales. d) Very good food processing technology.

McDonalds : A locally Owned Company

McDonalds Corporation

McDonalds India Pvt. Ltd. Connaught Plaza Rest. Pvt. Ltd. (North & East)

Hard Castle Rest. Pvt. Ltd. (West & South)

McDonalds : A locally Owned Company

Geographically Diverse suppliers: Ensuring stringent quality standards

McDonalds India: Suppliers

Trikaya Agriculture
Supplier of Iceberg Lettuce

Vista Processed Foods Pvt. Ltd.

Supplier of Chicken and Vegetable range of products.

Dynamix Diary
Supplier of Cheese.

Amrit Food
Supplier of long life UHT Milk and Milk Products for Frozen Desserts.

McDonalds India: Suppliers

SELECTION

MODIFICATION

EVALUATION

MOTIVATION

McDonalds India: Distribution

Radhakrishna Foodland Distribution Centres and cold storages. With a cold chain in place there is practically no need for a knife in the restaurant. Chopping and food processing is done in plants. Restaurants are confined only to actual cooking Amit Jatia. Completely dedicated distribution and supply chain. Matching supplier production with deliveries using ERP. Quality inspection Program, quality check at 20 different points in supply chain. HACCP(Hazard analysis critical control points) food safety standards emphasizing prevention of faults.

McDonalds India: Channel Network

North and East India (79) 33 in Delhi 22 in Uttar Pradesh 11 in Haryana 7 in Punjab 3 in Rajasthan 1 in Uttaranchal 1 in West Bengal 1 in Himachal Pradesh

West and South India (53) 32 in Maharashtra 7 in Gujarat 7 in Karnataka 4 in Andhra 3 in Madhya Pradesh

McDonalds India: Network & competitors

COMPANIES McDonalds Pizza Hut Dominos Subway Nirulas KFC

OUTLETS (No.) 132 137 220 131 65 34

CITIES COVERED 34 34 42 32 NCR 09

McDonalds India: Outlets

Standardization is the key!!

McDonalds India: The Road Ahead

Increasing seating capacity. Aggressive expansion plans throughout the country. More drive thrus. Oil alliance with BPCL in 2002, with HPCL in Jan, 2008. Independent franchisee model.

McDelivery on cycles.
Entry in new cities.

Promotion
An activity, such as a sale or advertising campaign, designed to increase visibility or sales of a product.

McDonalds, for years has maintained an extensive promotion strategy with highest spending on marketing amongst all its competitors.

Advertising
Focus on overall experience. Brand globally and act locally. Overall it is doing what it does the best marketing. Intensive advertising aimed at children. Paper mats on trays ensure that no new scheme goes unnoticed.

Advertising
80-20 menu boards marketing tool. Sponsors sport events with their logos advertised in these events. Significant use of billboards and signage. Image of portraying warmth and a real slice of everyday life has become a trademark and has created many memorable commercials.

THE mascot
The well known mascot Ronald McDonald is the same throughout the world since 1963. It is supposed to be the next most well recognized figure second only to Santa Claus. The color combination maximizes brand exposure and is supposed to increase hunger

Campaigns
Im lovin it is an international branding campaign which was launched in 2003 and has proved to be its biggest success. aap ke zamaane mein baap ke zamaane ke daam is a highly localized campaign which aimed at attracting the masses through its happy price menu.

Process
Standardization is the key Ready to cook frozen food material

Initiator Universal holding Cabinet

Assembler

Delivery to customer

People
Each outlet is headed by a Restaurant Manager . He is responsible for the daily operation and customer interaction.
Delivery Crew Member carries basic operation of a restaurant. Ensures customer satisfaction at the restaurants. In order to motivate there employees they give them stars as per their performance.

Organizational Chart

Training
McDonalds invests more than $1 billion annually in training

Has replaced the US army as the Nations largest job training organization
Best Place to Work Fortune Magazine 2005

One out of 5 Best Places to Work in Latin American America Economic Magazine 2005

Training At Hamburger
Hamburger University McDonalds Center of Training Excellence Since its inception, training at Hamburger University has emphasized consistent restaurant operations procedures, service, quality and cleanliness. It has become the companys global centre of excellence for McDonalds operations training and leadership development February 24, 1961, Hamburger Universities first class of 14 students graduated Today, more than 5,000 students attend HAMBURGER UNIVERSITY each year Since 1961, more than 80,000 restaurant managers, midmanagers and owner/operators have graduated from this facility

EXPLOITING WORKERS Low wages No overtimes

Accidents like Burns due to pressure of quick service

# (The majority of employees are people who have few job options and so are forced to accept this exploitation, and they r compelled to smile too! Not surprisingly staff turnover at McDonalds is high, making it virtually impossible to unionise and fight for a better deal, which suits McDonalds who have always been opposed to Unions.)

Physical evidence..
Cleanliness, speed, quality and transparency of process is the biggest physical evidence. The interiors are attractive and more or less consistent throughout the world. A proper decorum and strict standards of cleanliness are maintained at all the joints. Extra care is given to make the joints children friendly

Physical evidence..
Family environment message throughout the world, just the way of communication is adjusted to different countries.

Play areas are provided so that kids dont become panicky.

Counters are kept low and menus pictorially displayed so that children can order for themselves.

Issues with McDonalds

Nutritionists argue that the type of high fat, low fibre diet promoted by McDonald's is linked to serious diseases such as cancer, heart disease, obesity and diabetes. Many parents object strongly to the influence this has over their own children. Complaints from employees range from discrimination and lack of rights, to understaffing, few breaks and illegal hours, to poor safety conditions and kitchens flooded with sewage, and the sale of food that has been dropped on the floor.

Issues with McDonalds

They use their financial clout to influence the media, and legal powers to intimidate people into not speaking out, directly threatening free speech. Conservationists have often focussed on McDonald's as an industry leader promoting business practices detrimental to the environment. And yet the company spends a fortune promoting itself as environmentally friendly.

We Would like to thank:

Mr. AbhishekJain
Area Supervisor NCR

Mr. Ashish Jayal

Restaurant Manager Ansal Plaza Greater Noida.

Thank You