1.

2. The Beginning

• 1954, Ray Kroc, 52, a distributor of milk shake maker Multimixer, heads west on hearing about the McDonalds Bros hamburger stand in California

• Seizing the opportunity, he pitched the idea of opening up several restaurants to the McDonalds brothers.

• Who could we get to open them for us? they asked Well, Kroc answered, What about me?

• Ronald McDonald, introduced 1963, second only to Santa Claus in terms of recognition.

• Philosophy and Vision:-

• McDonalds complete commitment to Quality, Service, Cleanliness and Value (QSC&V)

• We take the burger business more seriously than anyone else Ray Kroc

• If youve got time to lean, youve got time to clean Ray Kroc

3. McDonalds India

• To be Indias best quick service restaurant experience supported by principles and core values

• Wholly owned subsidiary McDondalds India Private Limited.

• Incorporated in India in 1993

• McDonalds opened its doors in India in Vasant Vihar, New Delhi in October 1996

• Entered into two JVs with Connaught Plaza Vikram Bakshi North and Hardcastle Restraunts - Amit Jatia West

4. Product

• Product Adaptation:-

• Product adaptations in the Asian Markets to suit Indian Tastes:-

• - Burgers with Thai Basil Thailand

• - Teriyaki Burger Japan

• - Rice Dishes Indonesia

• - Aloo Tikki Burger India

• Indian Challenge:-

• 40% Vegetarians vegetarian selections to suit Indian Tastes

• Maharaja Mac replaced Big Mac Chicken Patty instead of beef

• Mc Aloo tikki and Puzza Mcpuff introduced

5. PRODUCT

• Restaurants Management System (RMS):-

• 2 Separate Menus: Green Veg and Purple Non Veg

• Separate veg, nonveg kitchens with dedicated staff, preparation and wrapping areas

• Different uniforms for kitchen crew to clearly distinguish roles

• Family Restaurant Concept:-

• The McDonalds experience for the whole family

• Focus on kids gifts galore

• Brightly lit, casual, comfortable and contemporary look

• Friendly and well trained staff

• Emphasis on cleanliness

6.

7.

8. PLACE

• Location

• Macro Context India

• Micro Context:-

• Tier 1 cities

• Big family size restaurants:

• High density marketplaces

• Shopping Malls

• Railway Stations/Metro Stations

• Desert Kiosks

• Tier 2 Cities

• National Highways (Drive Ins)

• Channels

• Franchise Model

• Company Owned Flagship Outlets

• Coverage

• Pan India Presence

9. PLACE

• Distribution

• Matching supplier production with deliveries to meet schedules and restaurant needs

• 3 centralized distribution centers at Mumbai, Delhi and Kochi

• Emphasis on economies of scale

• High storage volumes

• QIP (Quality Inspection Program)

• Quality checks at 20 points in the supply chain

• HACCP (Hazard Analysis Critical Control Point)

• Food safety standards emphasizing prevention of faults rather than detection through inspection

• With a Cold Chain in place, there is practically no need for a knife in the restaurant. Chopping and food processing is done in the plants. Restaurants are confined to only the actual cooking Amit Jaitia

• Logistics

• AFL Logistics 50:50 JV between AirFreight and FX Coughlin of USA- McDonalds international logistics partner

10. PRICE

• Pricing Strategy

• Customers attracted purely by these unsustainable but attractive low prices (Happy Price Menu) would not pay repeat visits

• Development of a low cost supply chain crucial enabling factor

• (Trikaya Agri, Cremica Industries, Amrit Foods, Radhakrishna Foodland, Vista processed foods, Dyanamix Diary)

• Value Pricing:-

• Happy Meals Small Burgers, fries, coke and toy

• Combo Meals Burger, fries, coke (Medium size)

• Competitive Pricing:-

• KFC Rs 59-79 (Burger and Drink)

• Pizza Hut Family Meal (2 medium pizzas and pepsi) Rs 350 400

• Even these low prices ensure a 40% margin!!

• Pricing lower than Pakistan, Sri Lanka and 50% lower than U.S.