McDonalds Final (1)

8/8/2019 McDonalds Final (1)

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McDonalds in India

Presented by-

Anshu Jain

Apoorv Misra

Atul Jain

Aayushi Khandelwal

Bidisha Mukherjee



McDONALDS

Founded by Richard McDonald and Maurice McDonald

in 1941

Over 31,000 outlets world wide serving more than 46

million customers every day

Popularized the concept of drive-in

Later introduced the concept of self-service

Ray Kroc initiated restaurants with franchise concept



Ray Kroc was working as a multi-mixer

salesman when he was stunned by the

operational effectiveness of McDonalds Pitched his vision of creating McDonalds

restaurants to the founders

In 1955 he founded the McDonalds Corporation

and in 1960 bought exclusive rights to the

McDonalds name

The Ray Kroc Story



Planned to build a restaurant system famous for

high quality and uniform methods of preparation

Principle of 3-legged stool

Rewarded innovation

In 1961 launched Hamburger University in Elk

Grove Village, Illinois



McDonalds in India

Opened first restaurant in Basant Lok market inVasant Vihar, New Delhi in 1996

132 restaurants acrossIndia: 79 in north and east

India and 53 in west and south India

Entered into two JVs: one with Connaught Plaza

Restaurants Pvt. Ltd. in north and east region; other with Hard Castle Restaurants Pvt. Ltd. in west and

south region



Segmentation

Demographically :-

1]Cater to kids

2] youth

3]Urban upper & Middle class families.

Geographically :-

1]Mostly in urban towns and cities

2]Now opening in 2 and 3 tiers cities

3]Mostly situated in malls

Psychographic:-

1]Place to chill out with friends and families

2]Place for enjoyment of the kids



TAR GET MARK ETS

Initial focus on Metros, Malls, Multiplex, Highways, Stations &

Airports.

Exposure to Western food & Culture.

Move to smaller satellite towns lik e Gurgaon,Pune.

Jaipur & Agra to attract foreign tourists..

DIFFER ENTIATION

Highlighting:

Brand

Food

Local taste

TAR GETING &

DIFFER ENTATION



Culturally Sensitive

Developed menu specially for India

Does not offer beef or pork items

Vegetable products are 100% vegetarian i.e.

They are prepared separately, using dedicated equipment andutensils.

Only pure vegetarian oil is used as a cooking medium.

Cheese and sauces are completely vegetarian and egg less.

Separation of vegetarian and non-vegetarian food products ismaintained throughout the various stages of procurement,

cooking and serving.



Promotion

Individual communication - Word of mouth, peer group

Mass communication ± Advertisements and child

amusement activities at outlets, drives and campaigns

Free distribution of children toys. With every happy meal

Some of the most famous marketing campaigns of McDonald¶s are:

³You Deserve a break today, so get up and get away- To McDonald¶s´

³Aap ke zamane mein ,baap ke zamane ke daam´.

³Food, Folks, and Fun´

³I¶m loving it´.



Variety of value, premium & wholesale Menus giving more

customers more reasons to visit

Expanded Happy Meal choices to attract & retain customers

Education people about healthy, active lifestyles, premium

Salads < 10 gm fat

Lucky Draws & Scratch Card

Value Meals

Clean and Hygienic Interiors

Tie with comic company to release little toys



Ronald McDonald, introduced 1963, second only to

Santa Claus in terms of recognition

In one Advertisement, Salim of Movie Mughal ±e- Azam

takes a break during the shoot to bite on a McDonald¶s

burger

Happy Price Menu to highlight low price through an

Advertisement of a retired Army officer who is shown

remembering his army days after hearing the price

Free gifts to children along with the core product

Positioning ± µMcDonalds mein hai kuch baat¶- a place

for the entire family to enjoy



Pricing

Pricing includes the list price, the discount functions available,

the financing options available

It should also take into the consideration the probable reactionfrom the competitor to the pricing strategy.

Pricing is the only mix which generates a turnover for the

organization

The remaining 3p¶s being the variable cost for the

organization, Price must support these elements of the mix



The danger of using low price as a marketing tool is that the

customer may feel that quality is being compromised

It is important when deciding on price to be fully aware of the brand

and its integrity

A further consequence of price reduction is that competitors match

prices resulting in no extra demand. This means the profit margin

has been reduced without increasing sales. Pricing is difficult and must reflect supply and demand relationship



McDonalds Pricing Strategy

In September 2009, McDonald¶s announced reduction in prices byalmost 25% for its lunch and dinner menus.

Prices for its extra-value meals like McVeggie and McChicken were

reduced to Rs. 85 and 95 respectively from Rs. 110 and 120

respectively and Typically a meal consists of burger, French fries

and soft drinks

This strategy was surprising as it came at a time when food prices

were increasing by the day

the management was convinced that tweaking the prices of it

combo meal offering would help customers prefer McDonald¶s as a

lunch and dining destination as well



Special offer such as happy meal ,Value meal and Combo meal

Heavily marketed µ Happy Price meal¶

Prices are adjusted by the mutual discussions by the owners or

franchisers, where is it located.

The price is always set by keeping in mind the economic factor and

the purchasing power of the customer and geographically



McDonald¶s came up with a very catchy punch line

³Aap ke zamane mein ,baap ke zamane ke daam´

They follow the local price and local flavour but

international standards



Value Pricing

Happy Meal

± Small Burger + Coke + French fries + Toy

Medium Meal combo

± Burger, fries, coke (Rs 75 for Veg)

Maharaja Mac meal ± R 94

Family dines under Rs300

Pricing of the menu is less than Pak, Sri Lanka and 50% lesser than in

the U.S.



Competitive Pricing

K FC

± Rs 59 to Rs 79 (Burger/K FC + Drink)

± Chicken Rice gravy meal for Rs 39

Pizza Hut ± Family meal ± two medium pizza + Coke for Rs 350+

Wimpy

± Mega Meal starting from Rs35

Mc Donalds

± Value meals starting at Rs 39, Quick bites Rs25 and Soft serve

for Rs 8

± Low prices with profit margin of about 40%.



Pricing strategy Matrix







Product

Wide Product Portfolio ± Vegetarian and non-vegetarian

The vegetarian burgers :Veg surprise, salad sandwich, Mc Aloo

Tikki Burger, Mc veggie burger etc. are offered to the customers.

Non-vegetatarian burgers include Chicken Mc grill, Mc chicken

burger, Fliet of fish and chicken maharaja burger etc.

Product Innovation: Chicken Maharaja

Product elimination: Removal of Beef flavour

Product Controversy (2001)





Place

Evenly spread outlets across cities

Tak e away counters

Home delivery

Expanding in two tier cities lik e Pune and Jaipur



Fully owned outlets :- Directly selling from McDonalds

McDonald's mainly consists of the distribution channels the

product is available to the customer at the right place, at the

right time and in the right quantity

Offers hygienic environment, good ambience and great service

Started giving internet facilities

Areas for children where they can play and enjoy with their

family and friends



SWOTANALYSIS

PLEASE ADD UR POINTS STRENGHTS

Strong brand recognition

Strongest International

Presence

Customer Intimacy

Product innovation

Supply Chain

OPPO RTUNITIES Expand into Tier1 and Tier

2 cities

Entry into breakfast

category

Acquisition of other

restaurants

WEAKNESS

Low depth and width of

productHigh overall costs than rivals

THREATS

Changing customer lifestyle

Increase in competition



McDonalds Jum

bo King

Pizzah

ut

McAloo Tikki - 20 R egular Vada Pav - 7 Simple Veg pizza-195

Mc Veggie - 45BrownBread Vada Pav-10

Veggie Supreme -345

Mac Chik en Maharaja-

99B

utter VadaP

av - 10 Chicken Supreme-360

Value Meal - Chollee vada Pav - 13 Garlic bread platter-90

Happy Meal- CheeseVada Pav - 16 Soup¶s-45 to 80

French fries-38 Schezwan vada pav - 15 Pasta¶s-110

Cold Coff ee-39 Lassi - 10 Pepsi/7up/Mirinda -40

Iced tea - 25 Mango Lassi - 15 Pizza hut ±Royale-80

Soft Serve - 20 Pepsi - 10 Almond Praline-45

COMPETITORS ANALYSIS



Past McStrategies

Product Development

± Successes: Fries, Happy Meal, Big Mac, Egg

McMuffin, Chicken maharaja ,Chicken nuggets

± Failures: McPizza, Fajita, Carrot Sticks, McLean,

and the Arch Deluxe





New McStrategies

Leverage Brand Equity

Product Development:

Focus on

core business

² Quality and taste issues

Food delivery methods MBX (McDonald·s Big Extra)

² Family Value Meal



New McStrategies

Joint Venture (Franchisee): Change

methods of dealing with franchisees

² To better motivate owners and foster

team spirit

² Enhance owners· participation in process

improvements



New McStrategies

Market Penetration and Development

² Continue International expansion

Retrenchment² Home office cost reductions

² Splitting into five geographic divisions

Horizontal Integration

² Purchase competition with differing target

markets



McDonald¶s the Future..!!

McDonald¶s has built his strength in strong brand Customer intimacy

Product innovation & Supplier integration

It has its independent franchisee models in 2 tiers & 3 tiers cities i.e. Pune,Jaipur and many more

McDonald¶s undertakes expansion; plans 80 new stores at Rs 3000 cr

investment in 2009

Coming up with new schemes that suits to every pocket

Mc-delivery has been started so everyone can be at home and enjoy

McDonald's food



BYE BYE SEE Y OU AT

McDonald's

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McDonalds Final (1)

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