13142703 Marketing MixMcdonalds India

8/6/2019 13142703 Marketing MixMcdonalds India

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Presented By:

AbhishekBhartiya

B. Aditya Mohan Geetika Sodhi Mahek Nangia Mukul Kumar Wasim Shaikh

Marketing MixFor


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IntroductionIntroduction

Total Revenue for McDonalds India in2006-07 was $740.2 million.

Estimated CAGR of 40 percent.

Rs 400 crores being put in for expansionplans into Tier II cities within next three

Doubling of turnover within three years.

Market share of 18 percent in north

India.(includes restaurants, cafes, fast

McDonalds is the Eighth Most PowefulBrand in the World.----Source: Millward Brown Optimor

(including data from brandz,


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Brief HistoryBrief History

McDonald's was started as a drive-inrestaurant by two brothers, RichardRichard andMaurice McDonaldMaurice McDonald in California, US in the

By mid-1950s, the restaurant's revenues hadreached $350,000.

Ray KrocRay Kroc, distributor for milkshake machines,expressed interest in the business, and hefinalized a deal for franchising with the

He established a franchising company, theMcDonald System Inc.McDonald System Inc. and appointed

In 1961, he bought out the McDonald brothers'share for $2.7 million and changed the nameof the company to McDonald's CorporationMcDonald's Corporation.

In 1965, McDonald's went public


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McDonalds InMcDonalds In

In 1996, first McDonalds

restaurant opened on Oct. 13,at Basant Lok, Vasant Vihar,

McDonald's India is a 50 50 JVpartnership betweenMcDonalds Corporation (U.S.A)

and two Indian businessmanAmit JatiaAmit Jatia (HardcastleRestaurants Private Limited,Mumbai) and Vikram BakshiVikram Bakshi

Approximately 75% of the menuavailable in McDonalds in Indiais Indianized and specificallydesigned to woo Indian

The McDonald's philosophy of

QSC&VQSC&V is the guiding forcebehind its service to the


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ProductProduct

Our clear strategy is to bring thecustomers in initially and providea range of entry-level products sothat they can try new items andgraduate to the higher rungs.---

Vikram Bakshi,

Managing Director,Northern Region, India


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ProductProduct

McVeggieMcAloo TikkiPaneer SalsaWrap

Crispy ChineseVeg McCurry

ChickenMaharaja Mac

McChickenFiet-O-FishChickenMexican Wrap

Chicken

Cold Coffee Ice Tea Soft Drinks Mc Shakes Hot Serves

Soft ServeCone

Mc SwirlSoft ServeFlavor Burst


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VegVeg


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Non-VegNon-Veg


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BeverageBeverage


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Frozen DesertsFrozen Deserts


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Break fastBreak fast

Usual working hours: 11am to 11pm

Recently came up with new timings: 7am to11pm

Only available in selected outlets.

Introduced egg on the menu for breakfast


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Packaging andPackaging and

Clearlymentionsthat the

burger is a

Veg or a Non-Veg Burger

Mentions thename of the

burger andthe colour isdifferent for

differenttypes ofburgers


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Co -Co -

McDonalds has major tie-ups with variouscompanies as their co-branding Statergy.

Few of Them are

Coca-

Barbi

Hotwhe

Cadbury


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PricingPricing

Initial focus on metros Mumbai and Delhi.

Relatively high income.

Move to smaller satellite towns.(Gurgaon

and Pune)

Jaipur and Agra to attract foreign tourists.


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HouseholdHousehold

Source: India, the structure of Poverty, WORLD RESOURCE INSTITUTE.


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Purchasing power pricing:-

b) In 1997 slashed prices for vegetable

nuggets and soft serve cone.

c) In September 2001, they offered Veg

surprise burgers for Rs 17.

d) March 2004 Aap ke zamane mein,

baap ke zamane ka daam.

Pricing StratergyPricing Stratergy


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Pricing StratergyPricing Stratergy

Value Ladder strategy :-

b) Started offering value meals in a range ofprices.

c) Ensure affordability and attract widestsection of customers.

d) Brought the customer and provided arange of entry-level products.

e) Try those new items and graduate tohigher-rungs.

f) E.g- if a customer starts with McAloo Tikki,he will finally graduate to McVeggie andso in Non veg.


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Aap ke zamane mein,Aap ke zamane mein,baap ke zamane kabaap ke zamane ka daam!!!daam!!!

Value Pricing.

b) Happy price menu Rs 20.

c) Economeal Rs 49(save Rs 11).

d) McChicken & McVeggie Meal Rs 75,Rs 65 (SaveRs 15).

e) Happy Meal for Kids Rs 69,99,109 (toy free).

f) Big saving Meals Combos Rs 109 Rs 119(Save

Rs 36).

g) A-la carte menu Rs 45- Rs 65 (Veg)

Rs 55- Rs 65 (Non Veg)

i Desserts Rs 12 Rs 25.


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Package deal.

The most common startegy in fast food

industry.

The most preferred style for customers of

McD.

Plays on Psychological factor of the

customer.

Customer acquisition costs are high.

Consumers appreciate the resulting

Product BundlingProduct Bundling


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CompetitiveCompetitive


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McDonalds : A locally OwnedMcDonalds : A locally OwnedCompanyCompany

McDonalds IndiaPvt. Ltd.

McDonalds

Corporation

Hard Castle

Rest. Pvt.Ltd.

(West &South)

Connaught

Plaza Rest.Pvt. Ltd.(North &

East)


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Geographically Diverse suppliers: Ensuring stringent

McDonalds : A locally OwnedMcDonalds : A locally OwnedCompanyCompany


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McDonalds India: SuppliersMcDonalds India: Suppliers

Trikaya AgricultureSupplier of Iceberg Lettuce

Vista Processed FoodsPvt. Ltd.

Su lier of Chicken and Ve etable

Dynamix DiarySupplier of Cheese.

Amrit FoodSupplier of long life UHT Milk andMilk Products for Frozen Desserts.


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McDonalds India: SuppliersMcDonalds India: Suppliers

SELECTION

MOTIVATION

EVALUATION

MODIFICATION


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McDonalds India: DistributionMcDonalds India: Distribution

Radhakrishna Foodland

Distribution Centres and coldstorages.

With a cold chain in place there is practically no needfor a knife in the restaurant. Chopping and foodprocessing is done in plants. Restaurants are confinedonly to actual cooking Amit Jatia.

Completely dedicated distribution and supply chain.

Matching supplier production with deliveries usingERP.

Quality inspection Program, quality check at 20different points in supply chain.


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McDonalds India: ChannelMcDonalds India: ChannelNetworkNetwork

North and EastIndia (79)

33 in Delhi22 in Uttar Pradesh11 in Haryana7 in Punjab3 in Rajasthan

1 in Uttaranchal1 in West Bengal1 in Himachal Pradesh

West and SouthIndia (53)

32 in Maharashtra7 in Gujarat7 in Karnataka4 in Andhra3 in Madhya Pradesh


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McDonalds India: Network &McDonalds India: Network &competitorscompetitors

COMPANIES

McDonalds

Pizza Hut

Dominos

Subway

Nirulas

KFC

OUTLETS (No.)

132

137

220

131

65

34

CITIESCOVERED

34

34

42

32

NCR

09


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McDonalds India: OutletsMcDonalds India: Outlets

Standardization is the


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McDonalds India: The RoadMcDonalds India: The RoadAheadAhead

Increasing seating capacity.

Aggressive expansion plans throughout thecountry.

More drive thrus.

Oil alliance with BPCL in 2002, with HPCL in Jan,2008.

Independent franchisee model.

McDelivery on cycles.


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PromotionPromotion

An activity, such as a sale oradvertising campaign, designedto increase visibility or sales of a

product.

McDonalds, for years hasmaintained an extensivepromotion strategy with highests endin on marketin amon st


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AdvertisingAdvertising

Focus on overallexperience.

Brand globally and

act locally.Overall it is doingwhat it does the best marketing.

Intensive advertisingaimed at children.

Paper mats on traysensure that no new


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80-20 menu boardsmarketing tool.

Sponsors sport eventswith their logos

advertised in theseevents.

Significant use ofbillboards and signage.

Image of portrayingwarmth and a real sliceof everyday life has

AdvertisingAdvertising

THETHE


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THETHEmascotmascot

The well knownmascot RonaldMcDonald is thesame throughout the

world since 1963. It is supposed to bethe next most wellrecognized figure

second only to SantaClaus.

The color


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CampaignsCampaigns

Im lovin it is aninternational brandingcampaign which waslaunched in 2003 andhas proved to be itsbiggest success.

aap ke zamaane

mein baap kezamaane ke daam isa highly localizedcampaign which

aimed at attracting


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ProcessProcess

Standardization is the key

Ready tocook

frozen foodmaterial

Initiator

Assembler

Universalholding

Cabinet

Delivery tocustomer


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PeoplePeople

Each outlet is headedby a RestaurantManager . He isresponsible for thedaily operation andcustomer interaction.

Delivery Crew Membercarries basic operationof a restaurant.Ensures customer

satisfaction at therestaurants.


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Organizational ChartOrganizational Chart


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TraininTrainin

McDonalds invests more than $1billion annually in training

Best Place to Work Fortune

One out of 5 Best Places to Work inLatin American America EconomicMagazine 2005


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Training AtTraining At

February 24, 1961, Hamburger Universities first classof 14 students graduated

Today, more than 5,000 students attend HAMBURGER

UNIVERSITY each year Since 1961, more than 80,000 restaurant managers,

mid-managers and owner/operators have graduatedfrom this facility


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EXPLOITING WORKERSEXPLOITING WORKERS

Low wages

No overtimes

Accidents like Burns dueto pressure of quickservice

# (The majority of employees are people who have few joboptions and so are forced to accept this exploitation, andthey r compelled to smile too! Not surprisingly staffturnover at McDonalds is high, making it virtuallyimpossible to unionise and fight for a better deal, which


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Family environmentmessage throughout theworld, just the way ocommunication isadjusted to differentcountries.

Play areas are provided

so that kids dontbecome panicky.

Counters are kept low

PhysicalPhysical


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Issues with McDonaldsIssues with McDonalds

Nutritionists argue that the type of high fat,low fibre diet promoted by McDonald's islinked to serious diseases such as cancer,heart disease, obesity and diabetes.

Many parents object strongly to theinfluence this has over their own children.

Complaints from employees range from

discrimination and lack of rights, tounderstaffing, few breaks and illegal hours,to poor safety conditions and kitchens


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They use their financial clout toinfluence the media, and legalpowers to intimidate people into

not speaking out, directlythreatening free speech.

Conservationists have oftenfocussed on McDonald's as anindustry leader promoting businesspractices detrimental to theenvironment. And et the com an

Issues with McDonaldsIssues with McDonalds


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We Would like to thank:

Mr. AbhishekJainArea Supervisor

NCR

Mr. Ashish JayalRestaurant Manager

Ansal PlazaGreater Noida.


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Thank You

Documents

13142703 Marketing MixMcdonalds India