2010-2012

Indian Institute of Planning and Management

Bhopal (MP)

A Project Report

On

“Sales Management a Comparative study Of McDonalds’ & KFC”

Submitted To: Submitted by:

Prof Sonia Raizada Satyendra Singh Chouhan

1

Indian Institute of Planning and Management

Bhopal (MP)

CERTIFICATE YEAR 2010-2012

This is to certify that project report on–“Sales Management A Comparative study Of McDonalds’ & KFC”, Presented by Satyendra singh chouhan, (PGP), have successfully completed the project report in academic duration 2010-2012 and submitted the file with detail of the Project.

Prof Sonia Raizada

2

Indian Institute of Planning and Management

Bhopal (MP)

DECLARATION

Year 2010-2012

I, Satyendra Singh Chouhan, hereby state that the study and work undertaken by us towards that fulfillment of the requirements of the project on –“ Sales Management A Comparative study Of McDonalds’ & KFC” Is our original work . The project done under the supervision and guidance of Prof. Sonia Raizada.

Satyendra Singh Chouhan

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S.No Content Page No1 Acknowledgement 52 Executive summary 63 Objective 74 Fast Food Industry Overview 86 KFC Overview 127 McDonald’s Overview 168 STP & SWOT Analysis 239 Analysis 2519 Conclusion 3621 Bibliography 3722

ANNEXURES I Questionnaire

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Acknowledgement:

I would like to thank Prof. Sonia Raizada For guidance and support for the project Report.

I would like to thank Mr. of McDonalds’ and Mr. of KFC for their guidance, time and patience without which I would not have completed my project report.

I would like to thank all the participants in the survey for their time and patience.

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EXECUTIVE SUMMARY

The project assigned to me was to study and work on the Sales Management and a comparative study of McDonalds sales stratagy. The study was conducted in two phases-

1. Phase I – literature review of the McDonalds & KFC.

2. Phase II – Conducting a survey on the consumer behavior by the help of questionnaire and personal interview.The sample size was 50 .

After the analysis i came to the conclusion that indeed McDonalds is a famous brand amongst the public and is popular because of price and product line.

It was indeed a great pleasure and privilege to work to understand the consumer behavior and how awareness about the fast food is effecting the purchasing decision of the consumer and the way in which McDonalds is committed to maintain the quality of the product line.

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OBJECTIVES

OBJECTIVES OF THE STUDY

1. The primary objective of the study was to learn Sales Management.

2. The study was also aimed to understand the marketing strategies of McDonalds’ and KFC.

3. Another important objective of the study the consumer behavior in these fast food joint.

4. The study of the promotional campaign and advertising features of these fast food joint.

Industry Overview (Fast Food Industries)

Introduction

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The food industry is on a high as Indians continue to have a feast. Fuelled by what can be termed as a perfect ingredient for any industry - large disposable incomes - the food sector has been witnessing a marked change in consumption patterns, especially in terms of food. An increasing number of international fast food chains rushing to India is because all of them see tremendous potential in for this type of business. The large upwardly mobile population in the urban areas tend to eat out more often or business or for leisure.The various players operating in India are the well established Indian chains like Nirula's, Haldiram's and multinational companies like McDonalds, Pizza hut, Domino's pizza, KFC etc.In addition to these, apparently some of the best known international food chains are looking at India. Among them are Great American Disaster, The Burger King, Mexican food chain Taco grill, Move-n-pick, etc. are some of them to name.At present all these players are fighting for a small pie, as fast food is really not a big habit with Indians, but they see a big potential.The players are fighting on products, pricing, positioning and trying to convert their first trials into regular purchase by providing delightful service quality. The focus is on product quality and standardization on taste. Consistency is the key, as its standardization in fast food as the consumer is short on time and wants to satisfy his taste buds with a consistent taste experience.Beyond this each player has its own strategy to expand consumer base.

Some feel that pricing is not the deciding factor since fast food is not price sensitive market because it is not a single diet of Indians.

Some others are competing on positioning which is surprisingly varied, giving the small size of the market.

For most, targeting children seems the right strategy. Advertising is popular.

However, with competition hooting up most chains are increasing reach as well as working on establishing a national presence.The wind of change is blowing through the empire of fast food. The vision of endless growth through new markets across the planet for fast food companies now looks unsustainable when its time to adapt or die. As the fast food companies have expanded around the world, they have had to adapt to local sensitivities.

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There were disturbances in India when it was learned that McDonalds's were pre-cooked in beef fat in the USA, because Hindus revere cows and cannot eat beef.According to a market research company, Euromonitor International, amount of money Indians spend in eating out has more than doubled in past decade, to about US$ 5 billion a year and is expected to double again in about half that time.

Trends in the fast food industry

The industry is estimated to grow at 9-12 per cent, on the basis of an estimated GDP growth rate of 6-8 per cent, during the Tenth Five year plan period. Value addition of food is expected to increase from the current 8 per cent to 35 per cent by the end of 2025. Fruit and vegetable processing, which is currently around 2 per cent of total production will increase to 10 per cent by 2010 and to 25 per cent by 2025.The popularity of food and agro products is not surprising when the sector is now offering a growth of more than 150 per cent in sales. With such promise in the sector, a number of foreign companies have joined the fray. While US brands such as McDonald's, Pizza hut and Kentucky Fried Chicken have become household names, more are on their way.

The importance of food service industry stems from the large direct and indirect employment it provides, the revenue it generates for the government and the role it plays in promoting tourism.

The industry provides direct employment to 5 million individuals, five times the IT industry and 10 times the Hotel industry.

There are 10 million street vendors in India, of which 6 million sell ready to eat food.

The evolving industry is a significant contributor in terms of tax or VAT to the economy. Currently it contributes $220 million and has the potential to reach $770 million.

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According to a report by Techno pak Analysis, the market size of the food service sector is estimated to be $8.1 billion by 2013 and $9.6 billion by 2018. It is growing @ 5-6% per annum.

The organized segment of the restaurant industry, at 16-20% of the total industry is more than the organized segment of the retail industry, which currently stands at 8%, and is growing faster than the overall restaurant industry, at 20-25% per annum.

This segment is dominated by restaurants which constitute 40% of the market. Cafes, pubs, clubs and bars together constitute 32% of the organized food service industry.

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India is beginning to show up on the radar of the top food service chains and is likely to account for 10% of new unit growth in the next four to five years.

100% FDI is permissible in the sector under the automatic route.

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KFC Corporation

KFC Corporation, based in Louisville, Kentucky, is the world’s most popular chicken restaurant chain, specializing in Original Recipe ®, Extra Crispy TM , and Colonel’s Crispy Strips® chicken with home style sides and f i v e new freshly made sandwiches. Every day, nearly eight million customers are served around the world. KFC’s menu everywhere includes Original Recipe® chicken—made with the same great taste Colonel Harland Sanders created more than a half-century ago. Customers around the globe also enjoy more than 300 other products—from a Chunky Chicken Pot Piein the United States to a salmon sandwich in Japan. KFC continues reaching out to customers with home delivery in more than300 restaurants in the United States and several other countries. And in quite a few U.S. cities, KFC is teaming up with other restaurants, Taco Bell and Pizza Hut, selling nearly fifty years ago; Colonel Sanders invented what is now called “home meal replacement” – selling complete meals to harried, time-strapped families. He called it, “Sunday Dinner, Seven Days a Week.”Today, the Colonel’s spirit and heritage are reflected in KFC’s brand identity – the logo features Colonel Harland Sanders, one of the best-recognized icons in the world.

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KFC specialized in

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chicken and they says,

“No body’s cooking like KFC today and we are the chicken experts”“There is no competitor for spicy chicken which is made by KFC”

Pricing Issues

PRICING POLICY FOR PRODUCT OF TWISTER Manufacturing cost RS. 100/-5% marketing cost (PER UNIT) RS. 5/-Total cost RS.105/-15% G.S.T +15% RETAIL MARGIN RS.25/-Total retail Price RS.140/-

PRICING STRATEGY FOR DEALManufacturing cost RS. 140/-5% marketing cost (PER UNIT) RS. 25/-Total cost RS.165/-15% G.S.T +15% RETAIL MARGIN RS.55/-Total retail Price RS.220/-

Mission statement of KFC

“To be the leader in western style quick service restaurants through friendly service, good quality food and clean atmosphere”

Goals of KFC

Build an organization dedicated to excellence.

Consistently deliver superior quality and value in our products and services.

Maintain a commitment to innovation for continuous improvement and grow, striving always to be the leader in the market place changes.

Generate consistently superior financial returns and benefits our owner and employees. To establish in India our position as leading WQSR (Western Quick Service Restaurant) chain, serving good value. Innovative chicken-based products. Consistently, providing a pleasant dining experience, with

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fast friendly, in a

c l ean and conven ien t l oca t i on . A t a l l t imes we mus t be ded i ca ted t o providing excellent and delighting customers.

KFC History

KFC is an internationally renowned fast food industry in the world. They have the main ambition to increase & maintain the quality in fast food industry. Their aim is to capture the fast food market. Basically they want to provide their products to anyone that is why they expanding their branches in all over the world. They want to increase their profit through giving maximum satisfaction & other better facilities to people that they want. Now after catching such a marvelous position in the International Market, KFC is introducing a new item “Boneless Fried Chicken”, with even more attractive and charming taste.

KFC India

KFC is the world’s No.1 Chicken QSR and has industry leading stature across many countries like UK, Australia, South Africa, China, USA, Malaysia and many more.KFC is the largest brand of Yum Restaurants, a company that owns other leading brands like Pizza Hut, Taco Bell, A&W and Long John Silver. Renowned worldwide for it’s finger licking good food, KFC offers its signature products in India too! KFC has introduced many offerings for its growing customer base in India while staying rooted in the taste legacy of Colonel Harland Sander’s secret recipe. Its signature dishes include the “crispy outside, juicy inside” Hot and Crispy Chicken, flavorful and juicy Original Recipe chicken, the spicy, juicy & crunchy Zinger Burger, Toasted Twister, Chicken Bucket and a host of beverages and desserts. For the vegetarians in India, KFC also has great tasting vegetarian offerings that include the Veggie Burger, Veggie Snacker and Veg Rice meals. In India, KFC is growing rapidly and today has presence in 11 cities with close to 50 restaurants.

Values of KFC

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Focus all our resources to our restaurants operation because that is where we serve our customers.

Reward and respect the contributions of each individual at KFC.

Expand and update training with time and be the best we can be and more.

Be open, honest and direct in our dealings with one and other.

C o m m i t o u r s e l v e s t o t h e h i g h e s t s t a n d a r d t o t h e p e r s o n a l a n d professional integrity at all times.

Encourage new and innovative ideas because these are the key to our competitive growth.

Reward result and not simple efforts.

Dedicate ourselves to continuous growth in sales, profit and size of organization.

Work as a team.

PHILOSOPHY OF KFC The CHAMPS Program

Champs stands for our belief that the most important thing each of us can do is to focus on the customer. It stands for our commitment to provide the best food and best experience for the best value. CHAMPS stand for the six universal areas of customer expectation common to all cultures and all restaurants concepts.

THE CHAMPSThese are: -CleanlinessHospitalityAccuracyMaintenance of Facilities

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Product QualitySpeed of Service

CHAMPSI s t h e p h i l o s o p h y t o e n s u r e t h a t t h e customer has the consistent quali ty experience in every restaurant, everyday, on every occasions and you will be playing role in delivering CHAMPS to our customers.

McDonald's IndiaIntroductionMcDonald's in India is a 50-50 joint venture partnership between McDonald's Corporation [USA] and two Indian businessmen. Amit Jatia's company Hard castle Restaurants Pvt. Ltd. owns and operates McDonald's restaurants in Western India. While Connaught Plaza Restaurants Pvt. Ltd headed by Vikram Bakshi owns and operates the Northern operations.Amit Jatia and Vikram Bakshi are like-minded visionaries who share McDonald's complete commitment to Quality, Service, Cleanliness and Value (QSC&V). Having signed their joint-venture agreements with McDonald's in April 1995, they trained extensively, along with their Indian

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management team, in McDonald's restaurants in Indonesia and the U.S.A. before opening the first McDonald's restaurant in India.Mc Donald's international through its wholly owned subsidiary McDonald's India entered into two JVs, one with Connaught Plaza Restaurants Pvt. Ltd. in the northern & eastern region and another with Hard castle Restaurants Pvt. Ltd. in the western & southern region.As a leader in QSR (Quick Service Restaurant) segment McDonalds has pioneered various industry benchmark practices over the past decade of serving Indian customers, including new concepts such as

Restaurant countMcDonald's has 165 restaurants in India of which 90 are in north & east India and 75 in west & south India McDonald's India..... Culturally sensitive.

McDonald's in India is a locally owned and managed company run by Indians, employing local staff, procures from local suppliers to serve its customers. McDonald's India opened its first family restaurant at Basant Lok in Oct, 1996; today it has 165 Restaurants across India. This vibrant decade has seen McDonald's evolve Indian menus, Indian sensitivities and yet remain as globally innovative as ever. This journey has seen McDonald's develop a rich brand identity amongst its customers and employees as well as partners alike.

At McDonald's India we have had a single mantra: providing 100% total customer satisfaction and the formula for achieving this goal in our restaurant operation is the long-standing commitment to the McDonald's Promise.

McDonald's worldwide is well known for the high degree of respect for the local customs and culture. McDonalds has developed a menu especially for India with vegetarian selections to suit Indian tastes and preferences. Keeping in line with this, McDonalds does not offer any beef or pork items in India. In the last decade it has introduced some vegetarian and non-vegetarian products with local flavors that have appealed to the Indian palate. There have been continuous efforts to enhance variety in the menu by developing more such products.

McDonald's has also re-engineered its operations repeatedly in its 13 years in India to address the special requirements of a vegetarian menu. Vegetable products are 100% vegetarian, i.e.,

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They are prepared separately, using dedicated equipment and utensils.

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 is

maintainedthroughout the various stages of procurement, cooking and serving.

McDonald's India has developed a special menu with vegetarian selections to suit Indian tastes and preferences. Only the freshest chicken, fish and vegetable products find their way into our Indian restaurants. In addition, we've re-formulated some of our products using spices flavored by Indians. Among these are :-McVeggie burger,McAloo Tikki burger,Veg. Pizza McPuff andChicken McGrill burger.We've also created eggless sandwich sauces for our vegetarian customers. Even our Soft serves (Ice-creams) and McShakes are egg-less, offering a larger variety to our vegetarian consumers.

International Standards.

McDonald's India's local suppliers provide us with the highest quality, freshest ingredients. Complete adherence to the Indian Government regulations on food, health and hygiene is ensured, while maintaining our own recognized international standards. Fast, friendly service - the hallmark of McDonald's restaurants the world over is the mantra we abide by.Stringent cleaning standards ensure that all tables, chairs, highchairs and trays are sanitized several times each hour. Such meticulous attention to cleanliness extends beyond the lobby and kitchen to even the pavement and immediate areas outside the restaurant.

Mcdonald's Philosophy.

“We take the burger business more seriously than anyone else.” When McDonald's founder, Ray Kroc made that memorable statement, he was

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letting the world in on the philosophy and secret behind McDonald's phenomenal success.Our vision to be India's “best” quick service restaurant experience is supported by a set of principles and core values [McDonald's Way]The principles that guide McDonald's...

Quality, Service, Cleanliness & Value - It is an unflinching McDonald's ideology that our customers must always get quality products, served quickly and with a smile, in a clean and pleasant environment; and all at a fair price.

Committed to exceeding our customers' expectations in every restaurant every time.

A passion and a responsibility for enhancing and protecting the McDonald's brand.

We believe in a collaborative management approach, employing a mutually respectful business philosophy,

We will seize every opportunity to innovate and lead the industry on behalf of our customers.

The McDonald's Promise.

QSC&V......The Foundation that built McDonald's success. When asked to explain McDonald's success, founder Ray Kroc used to say, “We take the hamburger business more seriously than anyone else.”Kroc was a perfectionist. From the day he opened his first restaurant, he vowed to give his customers high quality products, served quickly -and with a smile, in a clean and pleasant environment, and all at a fair price. Quality, Service, Cleanliness and Value (QSC&V) became the philosophy that drove McDonald's business.McDonald's Quality Management instills the culture of quality through such principles as being customer driven, managing with facts, valuing people, and continually improving every aspect of our business. Service that is fast and friendly and has always been a foundation for success at McDonald's.Cleanliness for us means having the cleanest and freshest facilities from the kitchen to the rest rooms and parking lots. Value at McDonald's means the total experience...... great food, friendly folks, a clean environment, quick and accurate service and fun.

McDonalds global

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McDonald's has over 30,000 local restaurants in more than 120 countries 70 percent of our restaurants worldwide are owned and operated by independent, local businessmen and businesswomen.

McDonald's serves nearly 50 million customers each day McDonald's first franchised restaurant opened at Des Plaines, Illinois

in 1955 by the founder Ray Kroc McDonald's has its own Hamburger University in Illinois, and the first

batch graduated in 1961. 12 classes offered at Hamburger University are college accredited In 1963, McDonalds sold its one billionth hamburger McDonald's is listed on the New York, Frankfurt, Munich, Paris and

Tokyo stock exchanges McDonald's aired its first network TV advertisement “McDonald's -

Wise Quality Starts Fresh Everyday”, in 1965 The first McDonalds Drive-Thru opened in Sierra Vista, Arizona in

1975 Happy Meals were added to McDonald's menu in 1979 McDonald's launched the new worldwide Balanced Active Lifestyles

public awareness campaign in 2005 McDonald's celebrated its 50th Anniversary on April 15, 2005

Achievements.

McDonald's India - A decade of quality serviceFor its unparalleled benchmarks established in the QSR sector McDonald's India has been bestowed with many prestigious awards. To name a few:

Most respected company for four consecutive years, 2003-2007 in the food services sector by business world

Most wanted brand of the year award 2003 & 2004 by franchising holdings India ltd.

Retailer of the years award for catering services, 2004-2006 at the images retail awards

The most preferred fast food outlet 2006 & 2007 by awaaz consumer award hosted by CNBC

Star retailer - the consumer way, food services retailer' of the year 2006 by franchise India

Amity corporate excellence award' in 2007 Received CNBC consumer award in2009 in QSR category

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McDonald's worldwide is well known for the high degree of respect for the local culture of each market it operates in. In line with this respect for local culture, India is the first country in the world where McDonald's does not offer any beef or pork items. McDonald's has developed a menu especially for India with vegetarian selections to suit the Indian palate, and has also re-engineered its operations to address the special requirements of vegetarians. Special care is taken to ensure that all vegetable products are prepared separately, using dedicated equipment and utensils. This separation of vegetarian and non-vegetarian food products is maintained throughout the various stages of procurement, cooking and serving. So much so that the mayonnaise and soft serves are also 100% vegetarian, and McDonald's uses only vegetable oil as a cooking medium in India.

McDonald's India Journey

1996 …the first McDonald's restaurant opened on Oct. 13, at Basant Lok, Vasant Vihar, New Delhi. It was also the first McDonald's restaurant in the world not serving beef on its menu

1997…the first Drive -Thru restaurant at Noida (UP)

the first disabled friendly store at Noida (UP)

1999…the first Mall location restaurant at Ansal Plaza (New Delhi)

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2000…the first highway restaurant at Mathura (UP)

2001…the first thematic restaurant at Connaught Place (New Delhi)

2002… The first restaurant in a food court at 3C's, Lajpat Nagar (New Delhi)

The first restaurant at the Delhi Metro Station at Inter State Bus Terminus

The first fundraiser in association with ORBIS and Dr. Shroff's Charity Eye hospital.(Delhi)

2003... The first Dessert Kiosk - Faridabad (Haryana)

2004… McDonald's Delivery Service (McDelivery) introduced in New Delhi

2003-04…Indigenous products like McAloo Tikki, McVeggie and Pizza McPuff exported to Middle East countries

2006 McDelivery on Bicycles flagged off at Chandni Chowk (Delhi)- another first initiative by McDonald's India. 100th McDonald's Restaurant in India 10th Year Anniversary

2007 The first McDonald's open in Eastern Region at Park Street, Kolkata

The first restaurant opened at Airport (Domestic Airport, New Delhi)

The first MFY restaurant opened at Greater Noida, Uttar Pradesh

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2008…The First restaurant to start extended hours procedure at Cyber Greens, Gurgaon and Saket, New Delhi

The first restaurant to start Breakfast Menu at Janpath, New Delhi

2009…The first McDonald's Restaurant opens at Old Delhi Railway Station

2010…The first reimaged new look restaurant opened at Ambiance mall, Vasant Kunj 6

2011… McDonald's introduces premium products in it is menu - McSpicy range of products

McDonald's introduces Mcflurry (premium desserts) in Oreo and chocolate crispy flavors

McDonald's introduces Wi-Fi across Delhi/NCR region

STP &SWOT Analysis

McDonalds

Parent Company McDonalds

Category Fast food eating joints

Sector Food Products

Tagline/ Slogan I'm Loving it

USP Excellent food quality and great service

STP

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Segment

People willing to have a hygienic and delicious non conventional meal at a

restaurant

Target GroupChildren and youth from middle and upper

class

PositioningA fun filled food joint the entire family to

enjoy

SWOT Analysis

Strength

1.Huge popular brand name and high brand loyalty

2.High number of products

3.Hygenic food and quick service

4.Drive in service for motorists

4.Good advertising and marketing

5.Happy meal for attracting children

Weakness

1.High fat and high calorie food not good for health conscious people2.Franchise management

Opportunity

1.McDonald's can improve home delivery service

2.Get more innovative products for the vegetarian market

3.Venture into newer markets

Threats

1.Threat from other eating joints/restaurants

2.Health conscious people

Competition

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Competitors

1.KFC

2.Pizza Hut

3.Dominoes

4.Subway

5.Burger King

6.Smokin Joes

7.TacoBell

8.Papa John's Pizza

Analysis1. Have you ever been to the fast food joint McDonald’s? Yes, 40 No 10

If your answer to the above question is No, then do you plan to visit the joint in near future

Yes, 9 No 1

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YES80%

NO20%

Visited Mcdonalds

YES90%

NO10%

Will Visit Mcdonald

When we started the interview at the McDonalds outlet we asked some of the people who were rooming in the DB malls food court and 80% people said they have visited the McDonalds and rest said they will be visiting it soon.

2. What do you think of the product prices? Consumer friendly. 25 Average. 15 Highly expensive. 10

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Consumer friendly50%

Average30%

Highly expensive20%

Product Price

Most people thought that the price of the McDonalds product is quite reasonable and is economical and affordable.

3. Are you satisfied by the current product line or the Menu at Mcdonald’s? Yes 42 No 8

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YES84%

NO16%

Satisfied by Product line

Most people who visit the McDonalds restaurant are satisfied with the product line with certain exceptions which was found in old people who still don’t get the concept of burger and pizza as fast food, still they visit as their children and grand children wants them too.

4. Which kind of fast food you buy more often? Burger 38 Pizza 12

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Burger76%

Pizza

24%

Taste Preference

People who visit McDonalds definitely prefer Burger over Pizza.

5. How often do you visit McDonalds’? Occasionally 29 Monthly 21

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Occa-sionally

58%

Monthly42%

Visit to Mcdonalds

People visit McDonalds on Occasional basis not on monthly terms. People in Bhopal do not go to McDonalds for meals but they visit the joint to celebrate the occasion which they want to celebrate with family and friends.

6. Do you think McDonalds’ provides neat & clean environment? Strongly disagree 1 Disagree 3 Neutral 10 Agree 14 Strongly agree 22

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Strongly disagree2%

Disagree6% Neutral

20%

Agree28%

Strongly agree44%

Neat & Clean Environment

Most people thought that McDonalds location and the way in which its maintained is very good it’s a neat and clean place and the staff work really hard to maintain it.

7. Do you think the McDonalds’ staff takes care of its customers? Strongly disagree 2 Disagree 7 Neutral 12

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Agree 12 Strongly agree 17

Strongly disagree4%Disagree

14%

Neutral24%

Agree24%

Strongly agree34%

Positive Staff Behaviour

Most of the people who were interviewed agreed that staff of McDonald’s did take care of them and they were very polite in interaction and are very friendly in nature

8.9. Do you think McDonalds’ provides a best birthday parties arrangement? Strongly disagree 5 Disagree 7 Neutral 20 Agree 10 Strongly agree 8

33

Strongly disagree10%

Disagree14%

Neutral40%

Agree20%

Strongly agree16%

Birthday Party Arrangement

Bhopal still does not have the culture of celebrating birthdays outside but now the trends are changing slowly and in the coming future this type of events will be more frequent in McDonald’s.

10. On a scale 1 to 4 where 1 represent excellent and 4 represent poor.- How would you rate McDonalds’ fast food?

Excellent 20 Good 18 Satisfactory 8

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Poor 4

Excellent40%

Good36%

Satisfactory16%

Poor8%

Mcdonalds Rating

Most of the people thought that McDonald’s is a good place to hang out with family and friends and is economical to the pocket also.

During the project we asked some questions to the McDonald’s outlet manager for which he answered in the following way.

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How many customers visit the McDonalds’ outlet daily?Around 2000/ day.

Which is the most popular product amongst the Bhopal crowd?Mac Alloo Tickky

How many people are working in the McDonalds’?40

Can you please describe the organization structure in brief?Crew member -> Assistant Manager -> Restaurant Manager -> Area Manager

Did you find any particular pattern in consumer behavior in Bhopal?They are more sophisticated compared to other cities; they are polite and wait for their turn without causing any fuzz.

Do you think McDonalds’ is successful in Bhopal?McDonald’s is a huge success in Bhopal

Is there any scope of opening more branches in the city?We are coming up with another branch in November in Aura Mall.

I heard that McDonalds’ deal in real estate. Is it true? If so how the system function?It is very true that McDonalds deal in real estate as it owns the space where it has established but as in India McDonald’s could not purchase the land so they have tied up with two business house they own the space and take the McDonalds franchise and do the business with some profit sharing basis. In India, McDonald's has two Indian entrepreneurs. Amit Jatia, Vice Chairman, Hardcastle Restaurants Pvt. Ltd which has been awarded a Development Licensee spearheads McDonald's operations in West & South India, while McDonald's restaurants in North & East India is

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a joint venture with McDonald's Corp managed by Vikram Bakshi's Connaught Plaza Restaurants Private Limited.

McDonald's ensures that the transfer to a Development Licensee takes place only after the financial strength, viability, profitability and long term sustainability of the business is assured.

McDonald's is present in about 52 towns and cities across India. There are around 250 McDonald's restaurants in the country out of which Hardcastle Restaurants Pvt. Ltd owns approximately 135 in the various locations of Andhra Pradesh, Gujarat, Karnataka, Maharashtra and Tamil Nadu which includes formats like Kiosks, Drive Thru's and affiliation with Petrol Pumps in addition to the regular family restaurants.

What is the best part working in the McDonalds?At McDonald's, I believe, the training imparted here is equivalent to that of an MBA as our Management Development Programme provides an in-depth knowledge of subjects that are covered in an MBA, like leadership skills, time management, business controls and inventory maintenance, to name a few. It has been a wonderful learning experience and at the same time, a thoroughly enjoyable one. At McDonald's one is not relegated to one department alone, its hands on training across all departments.

Describe the work culture of the McDonalds’?McDonald's India is an employer of opportunity, providing quality employment and long-term careers to professionals across the country. The average McDonald's restaurant employs 40-60 people from crew to restaurant manager. McDonald's invests in its employees, leveraging world class-training inputs to create ambassadors of the brand and creating food service professionals with global outlook.

Conclusion

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With growing disposable income and changing dietary habits, the demand for fast foods and organized food chains is rising in India. International brands have enhanced their presence as have existing domestic ones and newer start ups seeding every day. While growth in organized segment is over 20%, the market is still significantly unorganized in comparison to many Asian peers, and we expect this to change rapidly in this decade. We expect this to be consumer driven on back of need for higher quality, hygiene, nutrition and disposable incomes. Most of these drivers are gaining fast traction on back of experience from organized segment and consumer education from various sources.

The food services industry in India is at an inflexion point and despite the challenges, we believe this will be one of the best performing growth sectors in India driven by the graduating and increasingly aware consumer and compelling demographics in India.

In India, the company has to market products to a group of people who prefer family dining. Thus, McDonald’s was marketed as a fine dining restaurant where a family can enjoy group meals in a comfortable set up. Incorporating this philosophy in the USP of the company, McDonald’s launched a series of television commercials, such as ‘Toh Aaj McDonald’s Ho Jaye’ (Let’s go to McDonald’s today) and ‘McDonald’s Mein Hai Kuch Baat’ (McDonald’s has something that attracts you). Initially, the restaurant targeted children and teenagers. In 2004, the Happy Price Menu was launched to attract price-sensitive middle-class individuals to the restaurants. In 2008, a new advertising campaign, Prices of the Yesteryears, was launched to attract teenagers as well as adults

McDonald’s has become the leading brand in chained retail food services in India (2009). With a blend of Indian flavor in fast food products, McDonald’s has been able to attract the loyalties of Indian customers. Interestingly, sales in India became a boon for recession-hit McDonald’s in western nations. While McDonald’s restaurants in the US faced losses in business due to the economic turmoil, their Indian counterparts continued to move on an upward trajectory.

Bibliography

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I would like to thank Prof. Sonia Raizada for her support and guidance in preparing the project report. Different sites from where the supports were taken are-

www.thirdeyesight.in/articles/mcdonalds.htm www.buddingmarkets.com/?p=39\ www.mcdonaldsindia.com

Sample McDonald’s Questionnaire

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Name: _________________________Sex: ______________________Email Address:_________________D.O.B.:___________________

1. Have you ever been to the fast food joint McDonald’s? Yes, No

If your answer to the above question is No, then do you plan to visit the joint in near future

Yes, No2. What do you think of the product prices? Consumer friendly. Average. Highly expensive.3. Are you satisfied by the current product line or the Menu at Mcdonald’s? Yes No4. Which kind of fast food you buy more often? Burger Pizza Sandwich5. How often do you visit McDonalds’? Occasionally Monthly Weekly6. Do you think McDonalds’ provides neat & clean environment? Strongly disagree Disagree Neutral Agree Strongly agree7. Do you think the McDonalds’ staff takes care of its customers? Strongly disagree Disagree Neutral Agree Strongly agree8. Do you think McDonalds’ provides a best birthday parties arrangement? Strongly disagree Disagree Neutral Agree Strongly agree9. On a scale 1 to 4 where 1 represent excellent and 4 represent poor.

- How would you rate McDonalds’ fast food? Excellent Good Satisfactory Poor

Question asked to the McDonalds’ manager.

How many customers visit the McDonalds’ outlet daily?

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Which is the most popular product amongst the Bhopal crowd? How many people are working in the McDonalds’? Can you please describe the organization structure in brief? Did you find any particular pattern in consumer behavior in Bhopal? Do you think McDonalds’ is successful in Bhopal? Is there any scope of opening more branches in the city? I heard that McDonalds’ deal in real estate. Is it true? If so how the

system function? What is the best part working in the McDonalds? Describe the work culture of the McDonalds’?

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