Mc Donalds live case

Introduction
 Raymond Kroc – The founder

 Speedee Service System

 31,000 local restaurants serving more than 58 million
people in 118 countries each day

 Criticism over healthiness

 Changed the food processing industry

 Business model
The Mc Donald’s Promise: QSC&V…The
Foundation of McDonald's success

 Franchise Model

 Product Consistency

 Act like a retailer and think like a brand

 McD in India
 McDonald's India entered into two Joint Ventures
 Vikram Bakshi, Connaught Plaza Restaurants Pvt. Ltd.
in the Northern & Eastern region
 Amit Jatia, Hard Castle Restaurants Pvt. Ltd. in the
Western & Southern region.
 Local Sourcing, the Key to Truly Indian Products
 Regio-centricism: Re-engineering the menu
 Culturally Sensitive and Respect for Indian
Customs
 An Employer of Opportunity
 India-specific Novel Introductions
 Segmentation, Targeting, Positioning
 Demographic Segmentation Strategy
 Main targets– Children, Youth, Young Urban
family
 Play Place, Wifi Areas
 Initially targeted upper urban class

 Evolved as an economical place with no

compromises

 “Mc Donalds me hai kuch baat”

 “Feed your inner child”

 Customer Perception, Customer
Expectation
 Ambient, Hygienic, brand respecting values.
Target Segment What is
McDonald’s for
me
A Family with A treat to children,
children fun place
A customer on the Great taste, quick
move service, without
interrupting the
work schedule
Teenager Hangout with
friends, keeping it
affordable
 THE 7 P's Of Mc DONALDS'
 Product
a. Large options
b. Customer’s Preferences
c. Product Life Cycle

 Price
a. Economy
b. Skimming
c. Penetration
d. Premium
  Promotion
a. Right Message
b. Right Audience
c. Right Media

 Placement
a. Right Place
b. Right Time
c. Right Quality
  People
a. Employees Value
b. Customers Value

 Process
a. Transparent
b. Standardized

 Physical Evidence
a. Clean and Hygienic Interiors
b. Proper Decorum
 THE MCDONALD’S EXPERIENCE

•“Moments Of Truth” – The Service Encounter

•Transparency

•Quality and the consistency of the service

 Supply Chain Partners

 Dynamix Dairy Industries - Supplier of Cheese

 Trikaya Agriculture - Supplier of Iceberg Lettuce
 Vista Processed Foods Pvt. Ltd. - Supplier of
Chicken and Vegetable
 Radhakrishna Foodland - Distribution Centres for
Delhi and Mumbai
 Need of Marketing Strategy During
Product Life

 Economic conditions changes

 Competitors launch new products

 Product passes through new stage of buyer interest

and requirements
 Product Life Cycle has to assert :
 Product have a limited life

 Profits rise and fall at different stages of the Product

Life Cycle

 Product sales pass through distinct stages, each

posing different challenges,opportunity and problem
to seller
Stages of Product Life Cycle
Revitalising a product in decline phase
Market Share
Mcdonalds v/s Jumbo King
 Subway v/s Mcdonald’s

More people are becoming health conscious

General perception has been formed that fast
foods are considered as unhealthy, junk food.
Subway provide us with
 Healthy Choices
 Very Customizable

 Calorie Chart in all countries

 McDonald’s vs. Burger King
McDonald’s: Burger King:
 Founded in
 Founded in
1954
1955
 Founder:
 Founder: Ray McLamore &
Kroc Edgerton
 13,000  7,800
restaurants restaurants
(domestic) (domestic)
At
 SWOT

Strength Weakness

Mc Donalds

Threat
Opportunity
 Strength
 Think Global Act Local
 Strong Brand Recognition
 Supplier Integration
 Locality of Outlets – Visibility, traffic Volume
and Ease of Access.
 Innovative Ideas – First to provide nutrition
values, Kids play zone, Break fast menu
 Weakness
• Advertisements targets mainly children
segment
• High Employee turnover – More money on
training
• No trend of health conscious food – perceived
as unhealthy
• Price Competition with competitors
• Unable to cater diversified needs – Failure of
pizza
 Opportunities
 Expansion into Tier 2 and Tier 3 cities
 Usage of technologies to influence revenue
strategy
 Provide optional allergen free food items –
gluten free and peanut free
 Environment friendly – Go green
 More emphasis on breakfast items
 Threats
 Highly vulnerable to global economic recession
 Foreign Currency fluctuations
 Increased competition – Burger king, Star
bucks, local fast food outlets
 Health issues regarding fast “ junk” foods
 Increase in complaints filed
Customer Survey
Customer Survey
Customer Survey
Customer Survey
 Customer Survey
First Thing About McDonald's That
Strikes Customer's mind

22%
30% Burger
Golden Arches
4% Service
Value for Money
18% Fun

26%