PRESENTED BY:- PATEL

MANSI H
FINANCE - B
ROLL NO:- 4
MC DONALDS
 INTRODUCTION

McDonalds is the world's leading food

service retailer with more than 30,000
restaurants in 119 countries serving 47
million customers each day. It is one of the
world's most well-known and valuable
brands and holds a leading share in the
globally branded quick service restaurant
segment of the informal eating-out market in
virtually every country in which they do
business.
HISTORY

Richard and Maurice McDonald were pioneers of

McDonalds and the quick service restaurant industry. Ray
Kroc was the founder of McDonalds Corporation.
McDonalds success today is rooted in the work of all three.

In the late 1940s, Dick and Mac McDonalds

pioneers of McDonalds were searching for a way to improve
their little drive-in restaurant in San Bernardino,
California, U.S.A.; they invented an entirely new concept
based upon speed service, low prices, and big volumes.
Word of its success spread quickly, in 1952 they had more
than 300 franchising inquiries a month from all over the
country. Joining of Ray Kroc in 1954, and foundation of the
company that evolved into McDonalds Corporation was the
major turning point in the history of McDonalds.
McDonalds is now the largest and best-known foodservice
retailer.
MCDONALDS INDIA

McDonalds opened its doors in India in October

1996. They have restaurants in Mumbai, Delhi,
Pune, Ahmedabad, Vadodara, Ludhiana, Jaipur,
Noida Faridabad, Doraha, Manesar and
Gurgaon.
McDonalds in India is a 50-50 joint venture
partnership between McDonalds Corporation
[USA] and two Indian businessmen. Amit Jatias
company Hardcastle Restaurants Pvt. Ltd. owns
and operates McDonalds restaurants in Western
India. While Connaught Plaza Restaurants Pvt.
Ltd headed by Vikram Bakshi owns and operates
the Northern operations.
 BRANDING
McDonald's is an example of brand franchising.Being
their own boss in return, the franchisee agrees to
operate the restaurant in accordance with McDonald's
standards of quality, service, cleanliness and value.

The cooking processes in McDonald's restaurants are

broken down into small, repetitive tasks, enabling the
staff to become highly efficient and adept in all tasks.

There is no need to develop the product or do expensive

market research.

 It begins with working in a restaurant,

wearing the staff uniform and learning everything
from cooking and preparing food to serving customers
and cleaning.

It recognises that the success and profitability of

McDonald's is inextricably linked to the success of the
franchises.

Benefit from national marketing carried out by

McDonald's A brand is a name, term, sign, symbol or
design, (or a combination of these) which identifies one
organisation's products from those of its competitors.
 CONSUMER BEHAVIOUR
ASPECT

Marketers need in-depth knowledge about the

various dimensions which link consumer
behavior. There is research required to find out
the eating habits of people in a competitive
context. McDonalds found that a major chunk of
its consumers decide to eat a few minutes before
they make the purchase decisions and hence it is
building small outlets in large supermarkets such
as Wal-Mart and Home Depot. It is providing
play areas to ensure a number of families visit its
outlets with children.
INDIAN MARKET- OVERVIEW

You can never penetrate the Indian market

without making an effort to understand the
countrys culture and mindset,
Although fast food is ingrained in the culinary
culture of India, the passage of time has not
really resulted in any sort of evolution in the
manner in which our traditional fast-foods are
prepared or served. Its still very much a cottage
industry with street vendors accounting for
almost all the sales. One cannot imagine a day
when the street-side vada pav, chaat or
sendvitch stall in our cities will disappear. Its
such an integral part of who we are as Indians. .

TARGET MARKET
SEGMENT
Segmentation strategy:
The segmentation strategy of McDonalds can be discussed
under the following heads.

Geography:
Geographically McDonalds seem to have categorized the entire
Indian market as urban and rural markets. As a strategy for
entering the Indian market McDonalds appear to have adopted
the segmentation at the micro level, by directing the entire
focus towards only urban market. McDonalds India as of today
caters only to the urban population in India.
There could be several reasons for this, like the rural
eating habits, their affordability and traditional approach
towards food.

Demography:
Demographically the McDonalds appears to have segmented
its market on the following parameters.
 Income level:
in a market like India where a significant proportion of Indias
population lies in the lower income bracket, the price of the
products becomes very critical. Now the challenge was to
provide quality products at prices affordable to urban masses.
The pricing of the products is done keeping in mind the wants
of the middle class and the upper middle class, the income
category which has grown at a very significant pace over the
past few years. For example, the chain has a product called Mc
Aloo tikki costing Rs:20/, which caters mainly to the student
community whose pockets are not broad enough
Age:
The earlier strategy of the McDonalds was to segment the
market on the basis of the age, by catering mainly to the kids
and youth. However, now they are trying to blur this
segmentation and focus on the all age groups.
Family:
McDonalds is now targeting the entire family by offering
various incentives packed product schemes like family meals
at a very competitive price
 Psychographical
A parent with two children Visits McDonalds to
give thechildren a treat.
Children Want to visit McDonalds as it is a

fun place to eat.

A business customer Visits McDonalds during
the day as service is quick, the food tastes
great and can be eaten in the
car without affecting a busy work
schedule.
Teenagers Are attracted by the Saver
 Occasions:
Under this segmentation the McDonalds has classified
customers on the basis of the frequency of their visits, into
regular and occasional customers. Now, to maximise the
cluster of regular customers they are coming up with ad lines
BEHAVIOURAL
like BAHAANA KYA HAI so that the customers dont look for
a special occasion to visit the outlet.
Current position in the Indian market:
However in spite of adopting all of the above segmentation and
marketing strategies hard realities do exists.Nine years after
the big mac first set up in India, the burger gaint has yet to
make a rupee as net profit. It hopes to break even in a year or
two. In India a Mac store typically takes between 5 to 7 years
to break even. Part of the reason for its long break even period
has to do with the investments required per store in terms of
equipment and infrastructure. Much of the process control
equipment that allows Mac to dish out burgers and other
orders within its super fast time has to be imported.
 POSITIONING
Positioning

In adapting the General Market positioning of Americas favorite fries for
the Hispanic customer, it was determined to stress not only the
irresistibility and superiority of McDonalds fries (They are the best
anywhere, you cant resist them), but to add an element of family
inclusivity; to stress that they are everyones favorite:

Favored by big ones (adults) and little ones (kids).
McDonalds wanted to revitalize the perceived superiority of their world
famous fries while simultaneously blunting aggressive competitive efforts
by Burger King. [Burger King had just begun market testing new and
improved French fries.] To help accomplish this, McDonalds decided to
use their partnership with the NBA as the strategic platform for a
special fries advertising effort. As such, the positioning in the General
Market evolved to Americas favorite Guys enjoy Americas favorite fries!


 PRICING
STRATEGY

A look at McDonalds menu indicates that Co. has

targeted mass market in India .All or most of the
products have been priced in such a way that average
Indian consumer can afford to enjoy fast food with
family .This strategy has been dictated by the

 Vegetarian Rs.
Happy Meal 55/70/93
McAloo Tikki 20.00
McVeggie 39.50
Paneer Salsa Wrap 49.50
Non Vegetarian
Happy Meal 70/93
Chicken McGrill 20.00
Filet-O-Fish 53.00
Chicken Maharaja Mac 63.00
Starters
Veg Pizza McPuff 20.00
Large Fries 38.50
Others
 McShakes 28/39/50.50
Condiment/Topping 5.50
Economy Treat (Burger & Fries)
For 2 109.00
For 4 199.00
Family Value Meal
Burgers, Fries, Happy Meal and Small Coke
199.00

 McDonalds pricing strategy can be further analyzed under following heads:

Product Line Pricing:

McDonalds offers a range of products and pricing reflects the benefits of the
range. So one can order just a Coke or a Coke with a Burger at additional price.

Product Bundle Pricing:

McDonalds combines several products in the same package .For example one
can buy a McAloo Tikki alone or one can exercise various other options which
give the customer a range of products in a single basket.

Promotional Pricing:
Discounting a combination of products as one product is also a strategy which
McDonalds follows. McDonalds clubs three or four products together as one
and price of this new one will be lesser than the sum total of individual
product.

Value Pricing:
McDonalds has realized that Indian market is a price conscious market and
this has forced McDonalds to provide value products. Examples are economy
meal and value meal served by McDonalds in India.
 PROMOTION AND
COMMUNICATION
STRATEGIES
Promotion is a key ingredient in marketing campaigns, consisting of
diverse collection of incentive tools, mostly short term, design to
stimulate quicker or greater purchase of particular product or
services by consumer.

Communication is a means to convey the message to the consumers.

The consumer tends to remember just one thing from any
communication about the product -- one strong claim, or one strong
concept. Unique communications that are simple enough to make a
connection with the consumers create excitement about your brand.
Strong communication concepts are the foundation for success of a
product. In an environment of ever increasing clutter, the message
can't afford to go unnoticed. "A strong product concept along with a
commitment to establish your brand through good communication"
generates positive attention and that's crucial to succeed in the
marketplace.

THANK YOU