mcdonald-120207034454-phpapp02

8/3/2019 mcdonald-120207034454-phpapp02

http://slidepdf.com/reader/full/mcdonald-120207034454-phpapp02 1/36

PRESENTATION

ONMcDONALD¶S & DOMINO¶S

SUPPLY CHAIN

UNDER GUIDANCE OF:

MR. ANOOP R OHRIPRESENTED BY:

KIRANDEEP KAUR

DEEPIKA SHARMA

NIKHIL RANA

VISHAL

JASMEET SINGH

8/3/2019 mcdonald-120207034454-phpapp02


8/3/2019 mcdonald-120207034454-phpapp02


DOMINO¶S

Founded in 1960

Domino's is the second-largest pizza

chain in the United States

over 9,000 corporate and franchised stores in 60countries and all 50 U.S states

Pizza, sandwiches, pasta, chicken wings , desserts

Focus on delivering great tasting Pizzas and sides,superior quality, exceptional customer service and value

for money offerings. Domino¶s pizza believes strongly in the strategy of

¶Think global and act local¶.

8/3/2019 mcdonald-120207034454-phpapp02


HISTORY OF DOMINO¶S

In 1960, Tom Monaghan and his brother, James, purchasedDomi Nick's, a small pizza store in Ypsilanti, Michigannear Eastern Michigan University.

Monaghan renamed the business Domino's Pizza, Inc. in

1965. In 1967, the first Domino's Pizza franchise store opened in

Ypsilanti

On May 12, 1983, Domino's opened its first internationalstore, in Winnipeg, Manitoba, Canada

In 1998, after 38 years of ownership, Domino's Pizzafounder Tom Monaghan announced his retirement and sold93 percent of the company to Bain Capital, Inc. for about $1 billion

8/3/2019 mcdonald-120207034454-phpapp02


DOMINO¶S IN

INDIA It entered India in 1996

Through franchise agreement with Delhi basedindustrial Vam Bhartiya Corp.

In late 1999, Indocean Chase (private Equityfund) bought 25% stake in Domino¶s operationsfrom Bhartiya

Advised to go beyond its 16 outlets in Delhi to

exploit the potential in the pizza delivery business.

By 2002 it had around 150 outlets covering over 20 major cities in India

8/3/2019 mcdonald-120207034454-phpapp02


CURRENT STATUS

Domino¶s pizza targeting to doubleits outlets in India to more than 800

over the next five years.

Currently, there are 411 Domino¶s stores in India.

India is the fifth largest market for the domino¶s after US, UK,

Mexico and Australia.

In India, Jubilant foodworks ltd operates domino¶s pizza stores

with exclusive rights for India, Nepal, Bangladesh & Sri Lanka.

Domino¶s is the market leader in the organized pizza market in

India. With over 50% market share and 70% share in the pizzahome delivery segment.

8/3/2019 mcdonald-120207034454-phpapp02


In metros, domino¶s focuses on on ±time delivery

tag line/slogan ± khushiyo ki home delivery ; Hungry kya ?

USP - Home delivery in 30 minutes else free

In term of top global markets for Domino¶s, India is currently

ranked at ninth position.

Home delivery contributes about 60% of the revenue.

8/3/2019 mcdonald-120207034454-phpapp02


8/3/2019 mcdonald-120207034454-phpapp02


INTRODUCTION

World's largest chain of hamburger

fast food restaurants

Dealing in 123 countries .

Headquarter in the United States

More than 33,000 restaurants worldwide

More than 4,00,000 employees

Fast food:hamburgers, chicken, french fries, soft drinks,coffee, milkshakes, salads, desserts, breakfast.

8/3/2019 mcdonald-120207034454-phpapp02


The McDonald¶s philosophy of Quality, Se

rvice, Cleanliness and Value (QSC&V)is the guiding force behind its service to the

customers.

Reconnect with customers through

contemporary global marketing direction ³I¶m

lovin¶ it´

8/3/2019 mcdonald-120207034454-phpapp02


Background

The company began in 1940 as a barbecue restaurant in California

operated by the eponymous RICHARD

AND MAURICE McDONALD

In 1948 , they reorganized their business as a

hamburger stand Businessman RAY KROC joined the

company as a franchise agent in 1955 and

later on purchased the chain from the

McDonald brothers and oversaw itsworldwide growth.

Regarded as a symbol of globalization and

the spread of the American way of life.

8/3/2019 mcdonald-120207034454-phpapp02


FOOD INDUSTRY IN INDIA

In India, food industry and particularly informal eating out

market is very small. In India,over quarter of a millioncustomers visit McDonald¶sfamily restaurants every day. TheIndian fast food market is valued

at $1-billion (Rs 4,547 crore)approx.

8/3/2019 mcdonald-120207034454-phpapp02


Business model

Only 15% of the total number of restaurants are owned by the Company &Only 15% of the total number of restaurants are owned by the Company &

remaining 85% is operated by franchiseesremaining 85% is operated by franchisees

In addition to ordinaryIn addition to ordinary franchisefranchise fees and marketing fees, McDonald's alsofees and marketing fees, McDonald's also

collectcollect rent, which is calculated on the basis of sales.rent, which is calculated on the basis of sales.

Condition of franchise agreements vary by contract, age, country, andCondition of franchise agreements vary by contract, age, country, andlocationlocation

In most of the countries,In most of the countries, restaurants are operated by joint ventures andrestaurants are operated by joint ventures and

other, local entities or governments.other, local entities or governments.

To boost sales, McDonald¶s is looking at new business channels instead of To boost sales, McDonald¶s is looking at new business channels instead of

rapid expansion. New business channels include home delivery, kiosks,rapid expansion. New business channels include home delivery, kiosks, breakfast, extended hours and drive breakfast, extended hours and drive--throughsthroughs..

comprehensive framework comprehensive framework of training and monitoring of its franchises toof training and monitoring of its franchises to

ensure that they adhere to the Quality, Service, Cleanliness and Valueensure that they adhere to the Quality, Service, Cleanliness and Value

propositions offered by the company to its customers. propositions offered by the company to its customers.

Act like a retailer and think like a brandAct like a retailer and think like a brand

Only 15% of the total number of restaurants are owned by the Company &Only 15% of the total number of restaurants are owned by the Company &

remaining 85% is operated by franchiseesremaining 85% is operated by franchisees

In addition to ordinaryIn addition to ordinary franchisefranchise fees and marketing fees, McDonald's alsofees and marketing fees, McDonald's also

collectcollect rent, which is calculated on the basis of sales.rent, which is calculated on the basis of sales.

Condition of franchise agreements vary by contract, age, country, andCondition of franchise agreements vary by contract, age, country, andlocationlocation

In most of the countries,In most of the countries, restaurants are operated by joint ventures andrestaurants are operated by joint ventures and

other, local entities or governments.other, local entities or governments.

To boost sales, McDonald¶s is looking at new business channels instead of To boost sales, McDonald¶s is looking at new business channels instead of

rapid expansion. New business channels include home delivery, kiosks,rapid expansion. New business channels include home delivery, kiosks, breakfast, extended hours and drive breakfast, extended hours and drive--throughsthroughs..

comprehensive framework comprehensive framework of training and monitoring of its franchises toof training and monitoring of its franchises to

ensure that they adhere to the Quality, Service, Cleanliness and Valueensure that they adhere to the Quality, Service, Cleanliness and Value

propositions offered by the company to its customers. propositions offered by the company to its customers.

Act like a retailer and think like a brandAct like a retailer and think like a brand

8/3/2019 mcdonald-120207034454-phpapp02


McDonald in INDIA

first Indian outlet opened in Mumbai in 1996.

Beef and pork products were not offered

meat and vegetarian meals are prepared in

separate areas of the restaurant because of religious laws In India

In 2009, McDonald¶s India won the CNBC AwaazConsumer Awards for the third time in the

category of the Most Preferred Multi Brand FastFood outlets.

McDonald¶s first launched home delivery of meals in Mumbai in 2004.

8/3/2019 mcdonald-120207034454-phpapp02


Target market

Initial focus on metros- Mumbai, Delhi

Relatively high incomes

Exposure to western food & culture

Move to smaller satellite towns

(Gurgaon,Pune)

Positive spillover effects of reputation

Jaipur & Agra- To attract foreign tourists

8/3/2019 mcdonald-120207034454-phpapp02


McDonald¶s has a dedicated supply chain in

India and sources 99% of its products from

within the country.

strong backward integration right up to the

farm level.

8/3/2019 mcdonald-120207034454-phpapp02


Competitors in INDIA

Pizza Hut

Domino¶s Pizza

Papa John¶s

Narula¶s

KFC

8/3/2019 mcdonald-120207034454-phpapp02


Competitors

Burger King ²Second largest burger chain

Wendy's ²World's third largest hamburger fast food chain

Jack in the Box ²American fast food chain

Subway²Largest single-brand restaurant chain

Carl's Jr.²Fifth largest American fast food chain

Five Guys²American fast food chain

Whataburger ²American fast food chain

Krystal ²American fast food chain

White Castle ²American fast food chain Yum! ²Largest multi-brand restaurant chain

8/3/2019 mcdonald-120207034454-phpapp02


Supply chain

critical for success

strong local channels of suppliers and

distributers operation and training to match international

quality and hygiene standards

invested 50 crore before setting up 1

st

store inindia

8/3/2019 mcdonald-120207034454-phpapp02


Suppliers

Trikaya agriculture

8/3/2019 mcdonald-120207034454-phpapp02


QUESTIONS

1. What are the key changes which have made

supply chain management a critical function

to succeed in present day business world?

8/3/2019 mcdonald-120207034454-phpapp02


Ans 1

growing urbanization

Improvement in overall education level

Increased scope of processed food

Integration of the economies of the world Satisfying increased demand

Rapid development in IT

competition

Companies need Long term collaboration with suppliers- need of the

hour

Minimum cost

8/3/2019 mcdonald-120207034454-phpapp02


QUES«

2. How does an efficient supply chain lead to

strategic competitive advantage?

8/3/2019 mcdonald-120207034454-phpapp02


Ans 2

Affordable prices

Timely delivery of goods

Quality assurance

Increase in sales

Low wastage

Fulfill the demand of the customers

8/3/2019 mcdonald-120207034454-phpapp02


QUES«

3. How domino¶s revamped its supply chain

model in the wake of its extended spread in

Indian industry?

8/3/2019 mcdonald-120207034454-phpapp02


ANS 3

8/3/2019 mcdonald-120207034454-phpapp02


8/3/2019 mcdonald-120207034454-phpapp02


WHEAT

DOUGH

WHAREHOUSE

RETAIL

OUTLETY

REFRIGERATED

TRUCK

8/3/2019 mcdonald-120207034454-phpapp02


Recomendations

Understand latent demand

Delight needs

Innovations

Create demand

8/3/2019 mcdonald-120207034454-phpapp02


8/3/2019 mcdonald-120207034454-phpapp02


8/3/2019 mcdonald-120207034454-phpapp02


8/3/2019 mcdonald-120207034454-phpapp02


8/3/2019 mcdonald-120207034454-phpapp02


8/3/2019 mcdonald-120207034454-phpapp02


8/3/2019 mcdonald-120207034454-phpapp02


Documents

mcdonald-120207034454-phpapp02