Team 11

Presenters: Sahil AnandSakshi Joshi

Vidhu JainMansi Dua

Niketa DattaNadira Feroz

Saurabh DhawanVarun Dhingra

"McDonald's vision is to be the world's best quick service restaurant experience. Being the best means providing outstanding quality, service, cleanliness, and value, so that we make every customer in every restaurant smile."

Vision statement

About McDonald's

Began in 1940

Located in 122 countries

31000 Restaurants

51 million people are served a day at 31000 different locations

Independent local business people own and operate more than 80% of McDonald’s Globally

In The Beginning…

• Started by two Brothers:Dick McDonaldMac McDonald

• Started off as a Hot Dog Stand in CA(1937)

• Hot Dog Stand moves to Rt.66 and becomes a Hamburger Joint- Offers 25 Menu items- Becomes car hop- Highly profitable teen hang-out

1st

McDonald’s

Hamburger

Cost $.15

• Brothers realize Burgers were most profitable

• Close down restaurant and reopen as a “Speedy Service System”– Offer only burgers, shakes, and fries

• McDonald’s is franchised to several locations[1953]– First McDonald’s to feature the Golden Arches

• Ray Kroc discovers McDonald’s [1954]– Creates “McDonald’s System’s Inc” to start franchising [1955]

– Renamed to “McDonald’s Corporation” [1960]

Contd…

World wide strategies

Best employer Operational Excellence Continue to grow and be profitable

- Innovation - Leadership Marketing

Indian Market• Size of eating out market – Substantial

• India’s food expenditure- $77 Bn/ $4000 Bn (2%)

• Highly fragmented food market

• Millions of roadside stalls/carts – major market share

• Organized chains- Narula’s, Wimpy’s, Pizza Hut, Udipis

India – Entry Strategy

Wholly owned subsidiary – MIPL

Incorporated in1993

McDonald’s opened its door

in India in Vasant Vihar, New Delhi in October 1996

Trained extensively,

along with their Indian

management team, in Mc Donald’s in

Indonesia & the US before launch

Initial focus on metros- Mumbai

& Delhi

Product Adaptation – The Indian Challenge

40% vegetarians

Maharaja Mac replaced by Big Mac

Respect for local culture

Only vegetable oil use as a cooking medium

Re-formulated own products using spics favored by Indians

Marketing Analysis4 P’s Analysis

$Produ

ct

• Wide variety of menu items - veg and non-veg

product

• Local flavors

• Variety of product offering

4 P’s Analysis

$

Marketing Analysis

Promotion

• I’m lovin’ it campaign to attract family

• Feature artists to target teenagers

• Advertising through media

4 P’s Analysis

$

Marketing Analysis

Place

• 31,000 stores worldwide

• About 230 outlets in India

• Mainly focuses in north and west India

• Distribution channel

• Operations- Company-owned- Franchise

4 P’s Analysis

$

Marketing Analysis

Price

• Traditionally - value-pricing as competitive weapon

• Now, offer products at range of price points

- attract price-sensitive

Planned Growth Strategy

Execute planned growth strategy to capitalize opportunitieswithout foregoing a Healthy Franchisor-Franchisee Relationship

STRATEGY

• Slow Expansion• Focus on Same Store - Sales Growth and

Improving Delivery Outlets

• High Growth• Aggressive ‘Planned’ Expansion - to avoid

conflict with current franchisee and future franchisees

Phase I – Focus on cities of

relatively high incomes

where citizens are exposed to

western food & culture

Phase II – Move

to smaller satellite towns

(Gurgaon, Pune)

Phase III – Malls, Multiple

xes, Highway

s, Stations

& Airports.

Target Markets

Increasing seating capacity

Highways & Petrol pump

ISBT Terminal Delhi

Airport & Railway station- Mumbai & Jaipur

Enter new cities- Ahemdabad, Baroda- lower spending power, population density

Malls & Multiplexes- lower outlet investments than traditional

Growth Strategies

Benefits from Franchisee Involvement

• For McDonald’s:

-Understand where its franchise management is lacking

- Get Ideas for Future Initiatives

- Enhance Future Franchise Management

Can Thrive even under high pressure/competitive environment

• For McDonald’s Franchisee:

-Attain ability to carry out franchisor’s initiatives

-Improve commitment levels

Challenges

Conclusion

F

Corporate Policies and Initiatives

Success of Implementation

Depends on Franchisees

F F

McDonald’s Focus

Enhanced Relationship

Turning Initiatives into Successes