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Ray Kroc, a milkshake mixer salesman, ventured to California in 1954 to visit McDonald's hamburger stand, where he heard they

were running eight mixers at once. Kroc was impressed by how rapidly customers were served and, seeing an opportunity to sell many more milkshake machines, encouraged brothers Dick and Mac McDonald to open a chain of their restaurants. Kroc became their business partner and opened the first McDonald's in Des Plaines, Illinois in 1955. McDonald's and the Golden Arches have since become an internationally-recognized symbol of quick-service hamburgers, fries, chicken, breakfast items, salads and milkshakes.

Franchise Units
YEAR 2012 2011 2010 2009 U.S. 12,605 12,546 12,477 12,221 CANADIAN 1,152 1,125 1,097 1,070 INTERNATIONAL 14,125 13,407 12,764 12,510 COMPANY OWNED 6,598 6,439 6,399 6,357

Where Seeking Franchisees: Franchisor is seeking new franchise units worldwide.

Startup Costs, Ongoing Fees and Financing


Total Investment: $1,068,850 - $1,892,400 Franchise Fee: $45,000 Term of Franchise Agreement: 20 years, renewable FINANCIAL REQUIREMENTS Liquid Cash Available: $750,000 OPERATIONS 88% of all franchisees own more than one unit. Absentee ownership of franchise is NOT allowed. (100% of current franchisees are owner/operators).

FINANCING TYPE Franchise Fee Startup Costs Equipment Inventory

IN-HOUSE

THIRD PARTY

Accounts Receivable Payroll

How This Franchise Supports Franchisees


Training: Available at headquarters: 1 week. At local McDonald's restaurant : 12-24 months. Ongoing Support: Newsletter, Meetings, Toll-free phone line, Grand opening, Internet, Security/safety procedures, Field operations/evaluations, Purchasing cooperatives, Lease Negotiation Marketing Support: Co-op advertising, Ad slicks, National media, Regional advertising, Other marketing support: Restaurant-specific support

Franchise Ranking History


Franchise 500: #9 (2013), #6 (2012), #3 (2011), #2 (2010), #2 (2009), Fastest-Growing: #58 (2013), #27 (2012), #12 (2011), #6 (2010), #13 (2009), America's Top Global: #5 (2012), #3 (2011), #2 (2010), #2 (2009),

About KFC Corp.


In 1930, Harland Sanders opened Sanders Court & Cafe in the front room of a gas station in Corbin, Kentucky. He was named an honorary Kentucky Colonel in 1936 for his contributions to local cuisine. Colonel Sanders began franchising in 1952 and awarded the first franchise to Pete Harman in Salt Lake City, Utah. Their handshake agreement stipulated that the corporation would receive a royalty of one nickel for each chicken Harman sold. His recipe is still a secret, but billions of Colonel Sanders' chicken dinners are served annually in more than 80 countries. KFC is now part of Yum! Brands, which also includes A&W Restaurants, Long John Silver's, Pizza Hut and Taco Bell.

Franchise Units
YEAR 2012 2011 2010 U.S. 4,321 4,275 4,307 CANADIAN 0 0 0 INTERNATIONAL 8,710 8,353 7,676 COMPANY OWNED 4,370 4,225 4,281

2009

4,297

7,482

3,801

Where Seeking Franchisees: Franchisor is seeking new franchise units worldwide.

Startup Costs, Ongoing Fees and Financing


Total Investment: $1,308,800 - $2,471,000 Franchise Fee: $45,000 Ongoing Royalty Fee: 5% Term of Franchise Agreement: 20 years, renewable FINANCIAL REQUIREMENTS Net Worth: $1,500,000 Liquid Cash Available: $750,000

FINANCING TYPE Franchise Fee Startup Costs Equipment Inventory Accounts Receivable Payroll

IN-HOUSE

THIRD PARTY

Franchise Ranking History


Franchise 500: #15 (2013), #17 (2012), #16 (2011), #24 (2010), #14 (2009), Fastest-Growing: #51 (2013), America's Top Global: #16 (2012), #14 (2011), #19 (2010), #13 (2009),

1940- McDonald's BBQ opens in San Bernadino, California 1948- McDonald's closes and reopens as a "self-service drive in" with only 9 menu items 1949- They replace potato chips with the fries that everyone knows and loves today also the Triple Thick Milk Shake is introduced 1953- Golden Arches designed by Stanley Meston

1955- First franchise opened in Des Plaines, Illinois 1956- Fred Turner is hired to work the counter later he became Head of Operations. He implemented the service requirements that are still in place today

1958- The 100 millionth burger was sold 1959- The 100th franchise was opened in Wisconsin 1961- "Hamburger University" opened its doors underneath the Elk Grove, Illinois location 1962- First indoor seating implemented in Denver, Colorado 1965- The first public stock was sold at $22.50 a share 1966- Ronald McDonald made his television advertising debut 1967- The first international franchises were opened in Canada and Puerto Rico 1968- The Big Mac was officially introduced 1971- The Hamburglar, Grimace, Big Mac, Captain Crook, and Mayor McCheese made there debut 1973- The Quarter pounder was added to the menu 1974- The first Ronald McDonald House opened

The Big Mac jingle is introduced 1975- The first drive through and breakfast were implemented this year 1978- 5000th franchise opened in Japan 1979- Happy meals made their debut 1983- Chicken McNuggets added to the menu 1987- Fresh Salads were added to appeal to the health conscious 1988- McDonald's hamburgers were named in the top 100 America Makes 1996- The corporate website was launched 2008- The packaging was given a complete overhaul

McDonald's Positioning

Strategic Positioning is defined as doing different activities than your comp differently. This is the way your company becomes a superior performer in t their positioning based on their customer base. For example, Burger King fo their target customer. There strategy and positioning is directed to satisfy th on the other hand has a different positioning. They base their positioning to individuals. They both differ from our strategy. When you simplify things do basic types of positioning; low cost or differentiation. This is how you choos how your customer base guides you to operate. You choose your customer b

scope. The company needs to select one or the other in both categories or th results and be mediocre. We have selected one and are doing it well

McDonalds has made itself to be the family friendly low cost restaurant in narrow scope for a customer base and a low cost strategy. In recent years w to appeal to more customers. In recent years due to lost sales we have starte healthy option. We still try to keep our target market narrowed down to fam as well. We are focused on cutting delivery time and cutting the cost of food. technologically advanced equipment in our restaurants to make your job easi machinery allows you to keep cost low by only needing a few employees to d allows your employees to do it quicker. Our strategy is conveyed throughout you notice, many McDonald's have dual drive-through to decrease wait time customers served. This may be a good idea for your location. We have stuc years even through the changing times. We have included playgrounds in m marketing schemes feature family friendly ads and slogans. The term happy children worldwide and has become a house hold name. McDonald's does thi by marketing to the family market where as its competitors market to a broa different generations such as Burger King marketing to young adults. McDon forefront of fast-food technology and sets the standards for the rest of the in

3. McDonald's Industry

Industry refers to the competitive environment a company operates in. In an forces of competition: rivalry among competitors, barriers to entry, bargainin power of suppliers, and the threat of substitutes. These five forces affect just

The fast food industry is highly competitive. Consumers make their purchasi convenience. Customer loyalty isn't prevalent. We have numerous companies King, Taco Bell, KFC, Jack in the Box, Sonic, and Wendy's. Competition also e The barriers for entry are low for the fast food industry. Meaning that a new c Consumers make their purchasing decisions based on price and convenience, power. Suppliers also have bargaining power. With the higher energy and oil p

had an increase in prices as well. These higher commodity prices have reduced the profit marg problem is that with the intense price driven competition we can't push these margin loses bac hit because of the extremely high number of substitutes available. The fast food industry is a d McDonald's still reigns supreme.

We are the largest fast food chain in the world. When consumers think of fas History and prestige gives us an advantage against other chains. Prices have wealth's ability to take a hit on price margins and the international expansion sales. The numerous stores also satisfy consumers on convenience. Being in us to lock in certain suppliers at beneficial prices. Customers have remained competitive strategy and it shows. McDonald's took $16.6 billion in company owns several chain restaurants at $9.84 billion.

4. McDonald's Competitive Advantage

Very simply, the term competitive advantage means the positioning a firm its industry. According to Michael Porter, there are three different way to sus advantage. These three different strategies are cost leadership, differentiatio leadership describes when a firm provides the same or similar services or pro a lower price. The term differentiation means a firm offers a superior produc inferior products. This superiority is often just perceived by the consumer. comes into play. For example, a company may choose to have their product as durability. This may make their product different than another firms, and consumers believe their product is superior to other similar products in the m term means a company or firm will focus on a narrow segment of the market this area and appeal to a niche consumer base.

Here at McDonalds, we have a very specific set of competitive adva strive to be cost leaders and offer our food at prices that cannot be matched this, your store must be efficient and keep everyday operations costs as low our stores to be superior to other fast food restaurants because we can serve

other fast food company. Another important competitive advantage we have here at McDonalds is the speedy delivery of our food. In over other fast food chains, you must make the processes of cooking food sim must be easy to learn and easy to execute with a low failure rate to ensure th

your food. These two competitive advantages comply directly with the vision follows: McDonald's vision is to be the world's best quick service restaurant providing outstanding quality, service, cleanliness, and value, so that we mak restaurant smile. Just like any other firm, McDonalds competitive advantage when compared to other companies. These aspects of McDonalds are what h fast food distributor in the world.

McDonald's Tradeoffs

In business strategy there exist limitations. A company may have difficulty being bo goods, while simultaneously catering to the needs of wealthy clientele. A company, w attention to detail, must often sacrifice the speed of production. An investments ban trained employees, does not wish to offer both high end consulting as well as free fin scenarios demonstrate tradeoffs, or the exceptions a company must make in order t self-reinforcing strategy. Michael Porter notes that tradeoffs occur for three main re image or reputation, from the inability to change activities, and due to the limits on control. The first example we used demonstrates an inconsistencies in image and rep seen as a low cost provider were to suddenly offer high end products, their image, a

strategy, would change drastically.

The second examp change activities. To speed up production under the same conditions, would mean to spend les therefore allot less attention to detail. Our final example demonstrates the limits on internal co trained employees desire to reap the benefits of their hard work, and are not willing to give aw This inconsistency in hiring and business practices causes confusion. Tradeoffs allow us to dem advantage is not created through unique positioning alone. A company must use tradeoffs to l thereby better define their business strategy. Tradeoffs allow companies to restrict other comp straddling their business practices, thus guaranteeing their unique position.

At McDonalds our use and realization of tradeoffs has helped us be the le

industry for over half a decade. We have always striven to be a provider of quality, h understanding and embracing our limitations as a company we have drilled down wh exactly McDonalds, and what has consistently made our customers smile. To guaran

value oriented, we make sure costs dont get out of hand, with practices such as wa standardization. Another example is that while the fast food industry experiences a hig

McDonalds have learned to work with the system. We make the trade off of an advanced train simplified, pictographic, assembly line procedure, which insures quality and consistency by na and therefore their required training. Such practices have allowed McDonalds to beat out comp business costs on the customers via their product, rather than make internal tradeoffs. By und limitations, but also McDonalds identity, you as a future franchiser will better understand the n tradeoffs will play in sustaining your store.

McDonald's Fit

Fit is one of the elements that a company must consider when trying to creat advantage. What the term fit actually means in regards to the business worl companys activities so that it all works towards a common goal. Through th company can develop a sustainable advantage that makes it hard for compet for a company can be a challenging task however. It is difficult because ever the shipping methods to the packaging, has to complement its goal and visio imitate a company with a good fit and steal some of their market share, the c entire organization, whereas a company without a good fit, a competitor can steal the market share. Although difficult, achieving this fit is highly beneficia excellent internal and external fit is McDonald's.

When a customer goes into McDonald's he or she expects two thing out fast, and it will be inexpensive. That is what we aim for here at McDonal everything we do within the organization works towards these goals. Our fit when we had a mascot named Speedee Man. This immediately let the cu meal quick, McDonald's was the place to go. Sometimes fit comes at a cost h

that is not perceived as high quality. Our speed throughout our organization and is very convenient to the customer. We bui building a McDonald's store everywhere. So whenever a customer is driving hungry, there is sure to be a McDonald's close by. Another goal that we at M low cost restaurant. We have this sustainable advantage because all of our a cutting costs. Once again, we have to make sacrifices to cut costs. Instead ingredients, we must settle for the lower grade meat in order for it to fit with keep employee wages low, and minimal training is required for a job at a McD characteristics go a long way in keeping our food cheaper than many of its co training, turnover for us is also not as expensive as other companies. Our Mc hard organization for competitors to copy as our fit, both internally and exter

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Reference for Business


Encyclopedia of Business, 2nd ed.
Reference for Business Encyclopedia of Business, 2nd ed. Ex-Gov Franchising

FRANCHISING

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When an individual has the desire and drive to run their own business but lacks a strong idea for a company, this person may look to franchising in order to be their own boss and run a proven business. Franchising is an agreement or alliance between two organizationsthe franchisor and the franchisee. The franchisor has the business model, training materials, and other materials for the business. The franchisee is the entrepreneur who agrees to operate a branch of the business in their location while paying the franchisor various fees and royalties for the use of the business idea or model.

TYPES OF FRANCHISING
Business-format franchising exists when a franchisor allows someone to market products or service, using the business name or trademark, in return for fess and royalties. When franchising is mentioned, most people think of this business-format franchising, like McDonald's, AAMCO Transmission, or Molly Maid. There is also product or trademark franchising. This is a limited franchise where a manufacturer may grant another party license to sell goods produced by the manufacturer. This might includes sales of cars through dealerships (e.g., Ford dealerships), sales of gasoline through service stations (e.g., Shell stations), and sales of soft drinks through local franchising (e.g., Coca Cola bottlers). A final type of franchising is conversion franchising. This franchising model is designed to bring formerly-independentlyoperating businesses together under the collective power of a national name and advertising. An example of the conversion franchising is Century 21 Realtors, an affiliation of previously-established real estate agents.

FRANCHISE START-UP
Franchise fees typically include a lump-sum entrance fee and other charges for regular services including royalties on sales, advertising fees, and marketing. In exchange for these licensing fees, the franchisor retains control over the delivery of the products and services, as well as marketing and the operational and quality standards of the franchise. The franchising company's revenue is generated through the franchisee that pays these on-going sales royalties, typically averaging 5 percent of sales. The contract, or franchise agreement, is signed by both parties and establishes the relationship between the franchisee and the franchisor. It also details the responsibilities of both sides.

Franchises include such popular names as Kentucky Fried Chicken (KFC), McDonald's, 7-Eleven, Body Shop, Tie Rack, Pizza Hut, and Jiffy Lube. These franchise operations have well-established names, brands, and reputations. The best franchises provide a strong brand or trademark of the concept, a proven business system, extensive training and product development, along with a number of initial and ongoing managerial support services. Some help the franchisee secure funding and offer benefits, including discounted supplies. Typically, the franchised business is less risky than other forms of new venture creation because the business idea has been tested. There are mutual advantages to both parties to the agreement. The Service Corps of Retired Executives(SCORE), a volunteer group involved in counseling would-be entrepreneurs, report franchises are safer that other business forms and report less than a 5 percent failure rate compared to an 80 percent five-year failure rate for independent businesses and a 90 percent failure rate from independent restaurants. Banks are also supportive of the franchising business model and many will offer up to 70 percent of the initial capital costs.

WHY FRANCHISE?
Franchising allows a business to rapidly expand beyond its original owners. The franchisee pursues a new business, experiences the advantages of running their own business and being their own boss, and can gain wealth through a proven business idea. They provide the management skills to run the business, as well as contribute the capital to fund the opening and ongoing operations. The franchisor also benefits by the partnership and gains economy of scope advantages as more franchises are established. National or international advertising is then possible and the franchisor can more easily expand business locations with the help and capital from the franchisee. The franchisee helps to build brand awareness through market proliferation. The franchisee has a unique opportunity to run a business with a greater chance of success. There is experience from the franchisor for starting the business and many of the initial mistakes have been made and corrected. The franchisee creates their own job and often creates a number of new jobs in the area as they hire employees. As the franchise becomes successful, the franchisee may chose to open other stores to create even more wealth. Franchising is popular in the United States as well as internationally. Franchising is at a mature level in the U.S., Europe and

Australia, while Asia, South America, Mexico, and Central America report rapid growth. China, too, is experiencing franchise business growth.

RESEARCHING FRANCHISES
It is important to carefully perform initial due diligence to thoroughly examine the franchise offering. A Federal Trade Commission (FTC) rule was created and adopted in the mid-1970s that requires franchisors to disclose to franchisees very specific information including information about themselves, the business, and the terms of the relationship. This document is the Uniform Franchise Offering Circular (UFOC) and provides important legal information about the franchisor and its franchising program. When deciding on a franchise, it is important to first gather information about an individual's personal goals for business ownership and to examine the franchise offering to find a compatible opportunity. While there are no guarantees in franchising, a welldeveloped operating plan is often an advantage. An entrepreneur should consider a number of issues regarding a possible franchise. For example, is the franchise in only a state or local market, or does it have a regional or national presence? Lower-risk franchises have a national presence and benefit from the size advantage. The franchisee will also want to consider if most of the existing outlets are profitable, and whether the franchise is the market leader with the largest market share among competitors. The entrepreneur should evaluate the presence of a national marketing and purchasing program. The lower-risk franchises also have documented training, manuals, field support, marketing and promotion, standardized operating procedures, and on-going feedback channels between the franchisor and the franchisees. The terms of the license agreement vary from less than ten years to more than twenty years and some have automatic renewal. Capital requirements for obtaining the franchise also vary. Other factors to consider include territory limitations, failure rates, and any relevant litigation history against the franchise. Investment requirements should also be clearly disclosed. It is often a good idea to interview existing franchise owners to determine if start-up costs and processes are realistic. The expertise of a lawyer may be required to negotiate and interpret the franchise agreement contract. SCORE also recommends that potential franchising clients plan and analyze their options. This planning and analysis should include researching Chamber of Commerce and Better Business Bureau records for a given franchise. SCORE agrees the most important step for choosing a franchise is also

considering the entrepreneur's interests, personal skills, and experience. It is easier to evaluate an established franchise than a new franchise. There may be few, if any, owners with whom to speak about the franchise. It is important that the new franchise have strong franchisee support and a proven business system. The business strategy should also be examined carefully.

FRANCHISING AND THE ECONOMY


A study by the International Franchise Association (IFA) revealed that more than 9.7 million people are employed by franchised businesses. This group of 767,483 franchises, ranging from automobile dealers to food operations, have a $506.6 billion U.S. payroll. These businesses are clearly important to the economy. The IFA also reports that the start-up costs for franchising can range from less than $5,000, to more than $500,000. IFA offers information on franchisingincluding news and events as well as discussion forums and education. It also includes information on government regulations for franchising. In a 2004 study conducted by Pricewaterhouse-Coopers (for the International Franchise Association Educational Foundation) on the economic impact of franchised businesses, more than 760,000 franchised businesses exist in the United States and they generate some $1.53 trillion each year. This represents 9.5 percent of the privatesector economic output in the United States. These franchises generate one out of every seven jobs in America. The IFA established a Franchise Index to track the market performance of the top fifty U.S. public franchisors. The index has increased steadily since January 2000, compared to a drop of 20.1 percent in the Standard and Poors (S&P) 500 Index over the same period. Interestingly, the franchise index has grown during tough economic times. Thus, franchising is a major economic force and franchising has a significant impact on the nation's economy. The franchising business model attracts a number of qualified individuals, particularly in times of recession or slow business growth. Individuals are attracted to franchising through the opportunity to create their own jobs. While franchising is not a get-richquick proposition, many do have attractive returns on investment. Most analysts agree a three- to five-year period of hard work and dedication is needed before the franchised

business is profitable. Over the years, more individuals are touting the advantages and value of franchising. These franchises are quick to pick up on key business trends, social and demographic changes, and changing lifestyleshealthy fast food, home health care for the elderly, pet care, education, personal services, home services, business services, automotive services, and travel services. Many also offer exclusive territories in a given market. Additional advice on finding and comparing franchising opportunities is available on the franchise-broker websites (e.g., www.FranNet.com,www.FranChoice.com , and www.francorpconnect.com ). FranNet.com is a franchise-broker website representing franchise consultants. Some potential franchisees prefer using a broker to find a franchise. While there are many advantages to franchising, there are some disadvantages. Once a business grows beyond a certain size, it could make more money if it were wholly owned, since a percentage of the profit margin goes to the franchisor. Even if a franchise is capable of making strong profit figures, the individual running the franchise needs to enjoy the process of dealing with the franchisor as well as operating the business. The franchisee needs to be committed to the idea and the business model. The individual also needs to be supportive of the franchisor's system since the key to a successful product or service is the consistency of the offering. Customers expect a similar product or service from a franchise. Individuals who do not want to follow the predetermined structure and operating procedures of the franchise may not be successful. The franchising arrangement is a balance of entrepreneurial spirit, standard business procedures, and following instructions. The venture, like other start-ups, will require a time and energy commitment as well. A disadvantage for the franchisor is the difficulty encountered in finding a franchisee with drive, energy, and business experience to run the business according to the franchise guidelines. The franchise also needs an appropriate location that must be researched to discern its current and future growth potential. Finally, the franchisee must provide some of their own funds for the start-up. SEE ALSO: Business Plan ; Due Diligence ; Entrepreneurship ; Strategy Formulation Marilyn M. Helms

FURTHER READING:
Caplin, J. "How Do I Find the Right Franchise?" Money 33, no. 5 (2004): 55. Doehrman, Marylou. "Pros and Cons of a Franchised Business." Daily Record and the Kansas City Daily News-Press, 3 January 2005: 1. Inma, Chutarat. "Purposeful Franchising: Re-Thinking of the Franchising Rationale." Singapore Management Review 27, no. 1 (2005): 2748. Ng, L. "Unfolding Franchising." Malaysian Business, 1 September 2004, 50. Timmons, Jeffry A., and Stephen Spinelli. New Venture Creation: Entrepreneurship for the 21st Century. Boston: McGraw-Hill Irwin, 2004. Zaragoza, S. "Due Aims to Take Pain Out of Franchising." Dallas Business Journal 28, no. 17 (2004): 12.

More and more businesses are discovering the franchise model as a method for increasing sales and brand visibility through independent business owners. Over the past two decades, franchising has been one of the largest growth industries in our nations economy, with a net annual economic impact close to one trillion dollars. Franchising is no longer just for roadside motels and quick service restaurants; today, companies are franchising their businesses in industries as diverse as mortgage brokerage firms, medical spa treatment centers, auto repair shops and veterinary clinics. If you are thinking about growing your business, either within Las Vegas or on a broader (state or national) scope, you may want to consider franchising as a way to reach your goals. While most people have general knowledge about franchising from their experience as consumers, not many understand how it works. Simply put, a franchise is a license granted to an individual or business entity (the franchisee) to market a companys (the franchisor) goods or services in a particular territory using the franchisors business systems, trademarks and methods of operation.

There are many reasons that businesses decide to franchise. Franchising offers the potential for rapid growth with a relatively low capital investment. Moreover, franchise companies retain a significant level of control over the use of their brand and system, while at the same time having the comfort of knowing that each location is being operated by an independent business owner that is highly motivated to maximize the sales and profits of the business. A business is a good candidate for franchising when the company has a method of doing business or system of operations that is easily reproduced and can easily be adopted by others through training. It should have a proven track record of economic success with a unique trademark with a distinct identity the brand. Indeed, many business owners begin to consider franchising when customers begin to ask about other locations and business opportunities with the brand. Importantly, there are many legal considerations that go along with a businesss decision to franchise its concept. Franchise relationships are regulated under a variety of state and federal laws and under the Federal Trade Commissions Franchise Rule.

Aside from having a well-written franchise contract, a franchise company is required to provide each of its franchisees with information regarding the franchise in the form of a Franchise Disclosure Document. As a result, its a good idea to contact an attorney who understands franchising before taking your business to that next level. Franchising is a powerful model that has a proven history of helping business owners and individuals to realize their dreams, but its not for everyone. As a result, it is important to have a good understanding of how franchising works and what it will mean to your business operations before you take that leap. For further information regarding franchising, contact the International Franchise Association, www.franchise.org, or visit my firms website at www.hollandhart.com. About the Author: Matt Kreutzer, an attorney with Holland & Hart LLP in Las Vega, focuses his practice on franchising. Mr. Kreutzer assists companies in evaluating franchising as a possible growth strategy, and assists companies in establishing and developing franchise programs for their businesses.

Research on preference pattern of consumers of KFC and McDonalds

Submitted By

Neel Patel (AM1012) Puspendra Singh (AM2312)

Submitted To

Prof. Shreekant Iyengar Date 10 November 2012 RESEARCH ON PREFRENCE PATTREN OF McDonalds AND KFC IN AHMEDABAD MARKET INTRODUCTION: McDonalds and KFC are everybodys favorite food trip destinations. When you like hamburgers, McDonalds is always the top option. When you like fried chicken, KFC is always the first thing that comes to everyones mind. The reason for this is these companies claim of particular products that have became their trademark until now. The difference between McDonalds and KFC is mainly the cuisine. KFC is part of Yum! Brand Inc., which is worlds largest restaurant system. KFC has more than 11000 restaurants in more than 80 countries, serving more than 12 million customers each day. McDonalds restaurants are found in 119 countries and operates over 31,000 restaurants worldwide, employing almost 1.5 million people, serving more than 58 million customers daily. Approximately 15% of McDonalds restaurants are owned and operated by McDonalds Corporation directly.

PROBLEM STATEMENT: What factors are currently influencing the consumer decision-making process in selecting between the McDonalds and KFC and how these companies responding to changing environment and consumer behavior to target each other? Our main Objectives from this research are to find: * What is their perception about quality of domestic and international food products?

* Where do they prefer to eat and why? * How McDonalds and KFC target each other?

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