Project on service scenario of Mc Donalds

Submitted to: Submitted by:

Ms. Deepti dabas harzarika Gaurav Kumar

Vikram Kumar Prajapati

Shiva Verma

Madan

Abhinav Gupta

Mc DONALD’S

Is the leading global foodservice retailer with more than 30,000 local restaurants

serving 52 million people in more than 100 countries each day. More than 70% of

McDonald's restaurants worldwide are owned and operated by independent local

men and women. Is one of the world's most well-known and valuable brands and

holds a leadingshare in the globally branded quick service restaurant segment of

the informaleating-out market in virtually every country in which we do business.

Serves the world some of its favorite foods - World Famous French Fries, Big

Mac, Quarter Pounder, Chicken McNuggets and Egg McMuffin.

Our rich history began with our founder, Ray Kroc. The strong foundation that he

built continues today with McDonald's vision and the commitment of our talented

executives to keep the shine on McDonald's arches for years to come

Mc-Donald In India

A Locally Owned Company McDonald's India is a joint-venture company

managed by Indians. In Western India, Amit Jatia’s company, Hardcastle

Restaurants Private Limited owns and manages McDonald's restaurants. In

Northern India, McDonald's Restaurants are owned and managed by Vikram

Bakshi’s Connaught Plaza Restaurants Private Limited. Amit Jatia and Vikram

Bakshi are responsible for running McDonald's in India. Local Sourcing is Key for

Truly Indian Products Around the world, McDonald's traditionally operates with

local partners or local management. In India too, McDonald's purchases form local

suppliers. McDonald's constructs its restaurants using local architects, contractors,

labour and - wherepossible – local materials. McDonald's hires local personnel for

all positions within the restaurants and contributes a portion of its success to

communities in the form of municipal taxes and reinvestment. McDonald's sources

food products form local companies. Fresh Lettuce comes from Pune, Delhi,

Nainital and Ooty; Cheese form Dynamix Dairies, Baramati, Maharashtra; fresh

Buns from Cremica, Phillaur, Punjab and Mrs. Bector andSons, Khopoli,

Maharashtra; Sauce from Bector Foods, Phillaur, Punjab and Hindustan Lever

Limited-Best Foods Division, Thane, Chicken Patties, Vegetable Patties, Pies and

Pizza McPuff™ from Vista Processed Foods, Taloja, Maharashtra. Dairy Products

from Amrit Food, Ghaziabad, UP.

McDonald's India - A decade of quality service

For 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 Businessworld.

Most Wanted Brand of the Year' Award 2003 & 2004 by Franchising Holdings

India Ltd .

Retailer of the Year' 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 &

2007, by Franchise India

Amity Corporate Excellence Award'-in 2007 & 2008

Mc-Donald’s Seven P of Marketing

Product:

McDonald's food products offer tremendous value, McDonald continually review

and improve our menu offerings to make sure that McDonald not only meet their

customers’ expectations, but also exceed them. As a result, Mc Donald have

introduced a series of ongoing value options to enable their customers to appreciate

this aspect of the brand even more strongly.

Price:

McDonald's prices its products in such a way that a very large cross section of the

Indian population can afford it. McDonald's does not sacrifice quality for value –

rather McDonald's leverages economies of scale to minimize costs while

maximising value to customers. McDonald's definition of value is broader than

most restaurants of its kind – it is more than even the price. Value at McDonald's

is the sum of the total McDonald's experience: quality food; fast, friendly service; a

clean and pleasant environment and products priced for the largest segment of

Indian consumers possible. That is value at McDonald's.

Place:

Six years prior to the opening of the first McDonald's restaurant in India,

McDonald's and its international supplier partners worked together with local

Indian Companies to develop products that meet McDonald's rigorous quality

standards. These standards also strictly adhere to Indian Government regulations

on food, health and hygiene. Part of this development involves the transfer of state-

of-the-art food processing technology, which has enabled Indian businesses to

grow by improving their ability to compete in today’s international markets.

Promotion:

A clean fast food brand which tastes the same any where you eat in the world.

BenefitsYou don't have to stay hungry for a long time. McDonald's ready to eat

available.

Values- The world leader in fast food restaurants.

Culture-The brand represents culture of social gathering for families and groups.

Personality

All kinds of consumers buy McDonald's products irrespective of age, sex all over

the world. One can see all types of personalities in the McDonald's restaurant.

People: McDonald's worldwide is well known for the high degree of respect to the

local culture. McDonald's has developed a menu especially for India with

vegetarian selections to suit Indian tasted and culture. Keeping in line with this

McDonald's does not offer any beef and pork items in India. McDonald's has also

reengineered its operations to address the special requirements of a vegetarian

menu. The cheese and cold sauces used in India are 100% vegetarian. Vegetable

products are prepared separately, using dedicated equipment and utensils. Also in

India, only vegetable oil is used as a cooking medium. This separation of

vegetarian

and non-vegetarian food products is maintained throughout the various stages of

procurement, cooking and serving.

Packaging:

McDonald's India serves only the highest quality products. The attention to food

quality started long before the first restaurant opened. McDonald's India has

established close relationships with local suppliers who provide McDonald's with

the highest quality, freshest ingredients to make its products.

Positioning:

The value initiative at McDonald's is all-pervasive. Our strategy is to achieve best

value by enhancing experience (offering best quality), while keeping prices

reasonable. This applies to products we serve our customers and to every other

aspect of the way we do business. At McDonald's, costs are kept low by increasing

efficiency and cutting wastage at all levels. This is possible by advanced

operations, management and human behaviour skills tested over time in around

120 countries across the world. It is important to understand that delivering highest

quality doesn’t come easily. Customers who walk into a McDonald's restaurant,

expect to be served food that is hot and fresh, made from the highest quality

ingredients, served within minutes of placing their order and at a price, which is

affordable. Such is the strength of the brand that they rely on McDonald's to do all

this, without thinking about how it is actually achieved

Mc donalds offers its services of food chain through wide range of products, its

capacity covers fast food range eg burger ,fries, Mc Puff, etc and its also offers

wide range of burgers

Now mc donalds offers these services through (QSC $ U) strategy i.e quality,

service, cleanliness and value) to customer. The main goal while offering service is

to achieve best value of entirely experience( offering best quality), while price

reasonable. The value initiative at mc donalds is all persuasive , their food product

offer tremendous value they still continually review and improve mere offerings to

make sure they not only meet customers expectations but also exceeds them.

Tangibility Spectrum:

Mc Donalds is not into food chain that offers fast food to its cutomers. As far as

their services are concerned with relation with tangibility spectrum. They are not

into pure service industry.

If we plot tangibility tangibility spectrum diagram restaurant comes in exact

middle of the line there is thin line that differentiates product and services with

relation to tangibility spectrum. Major factor that middle of the line there is thin

line that differentiates product and services with relation to tangibility spectrum.

Major factor that middle of the line there is thin line that differentiates product and

services with relation to tangibility spectrum. Major factor that middle of the line

there is thin line that differentiates product and services with relation to tangibility

spectrum. Major factor that middle of the line there is thin line that diffenciates

product and services with relation to tangibility spectrum. Major factor that middle

of the line there is thin line that differentiates product and services with relation to

tangibility spectrum. Major factor that middle of the line there is thin line that

differentiates product and services with relation to tangibility spectrum. Major

factor that middle of the line there is thin line that differentiates product and

services with relation to tangibility spectrum. Major factor that differentiate a

service from a product is its intangibility and the line separating product and

services in fast thinking down because now a days service provider also gived the

customer a tangible element bundled together with his service. As in case of food

chain and service industry, food itself constitutes some tangibility in itself but

when we talk of Mc Donalds they attach a lot of their services most importantly

they constantly try to attract kids for this, they have special menu for that; called as

happy hour meals which includes attractive packaging and toys which itself leads

to tangible side of their services.

So as far as tangibility spectrum is concerned especially in Mc Donald they have

lot of tangibility attached to their services starting from packaging material to free

gift offerings.

6) Customer Expectations

Customer expectations play a key role in a company’s success and have a deeper

meaning in services marketing than being mere reqiurement of a custmer.customer

expections are based on custmer experience with product or sevice; feedback

recived from friends, colleagues, relatives; or may passed on their present needs or

you can say word of mouth.

Reliability -on time delivery with quality food

Assurance -trusted name, good safety record, dedicated employees

Tangibles -Outlets, Order counters, Sitting area, uniforms

Empathy- understanding of special individual needs, anticipates customer needs

Responsiveness - prompt service delivery

RELIABILITY = Ability to perform the promised service dependably and

accurately. This would basically be that company delivers to the customer what is

promised & the customers basically like to deal with companies that can fulfill

their promises. When we look at the Mc Donalds we can see the following things

the customer would expect certain basic facilities like: some functional

infrastructure provided to him, the quality food, hygienic ambience and lot more

things.

ASSURANCE = Employees knowledge and courtesy and their ability to inspire

trust and confidence Assurance relates to knowledge and accuracy of employees

and their ability to convey trust and confidence. This dimension is of great

significance for services where a customer perceives high risk and is not sure of

the outcomes. The employees should have a positive morale & should be

motivated if they have to promote the firm & create a sense of assurance in the

flyer’s mind. Mc Donald’s is generally considered the more customer friendly .

The staff there is nicer to old people and they are well dedicated. But the young

generation people who aggressively take t. Though Mc Donald’s has a very young

staff, so some of the members could possibly not match the kind of experience the

competitors provides.

TANGIBLES

Appearance of physical facilities, equipment, personnel and written materials

Tangible features would be those physical features, which can be seen by the

customer. These would be the physical proofs, which would help the customer to

judge the quality of service. The customers evaluate the quality of these services

on the basis of the tangibles provided by the service providers. The marketers of

services emphasize on tangiblising the intangibles. In case of the Mc Donald’s it’s

be the infrastructure and franchisee store they are using, how old they are, and the

kind of facilities that are provided inside the outlet or in the waiting area. The kind

of skilled staff that they have the uniform that the staff wears. The tangibles

would also include the infrastructural facilities present at the Mc Donald’s. This is

where we find most of the food outlets lacking. They have no proper arrangements

to handle the customers.

Empathy

Caring, Individualized attention given to customers Empathy basically is when the

employees of the organization make the customer feel at home, at ease, making

him feel wanted. The customers are mostly offered the same service from most of

the food chain counter. The easiest way for the outlets of Mc Donald is to

maintain and grow its client base is to be empathetic towards their customers, to

understand their specific needs and to cater to them & they should make each

customer feel like he is a unique asset to the company & like their single most

important customers.

Responsiveness

Willingness to help customers and provide prompt service. Responsiveness is

willingness to help the customers and provide prompt service the degree of

responsiveness shows the level of commitment that the people of the company

have towards their work. It is very necessary for the company to concentrate on

prompt & the right kind of responsiveness to the needs of the customer.

The customer’s judgment of overall excellence of the service provided in relation

to the quality that was expected.

Customer perceptions

It is the process of making a meaningful picture by selectively organizing a set of

stimuli. It includes service encounter. Customer perception of service quality is

primarily influenced by the service encounter

SERVICE ENCOUNTER

The interaction between the customer and service provider in the Mc Donalds

means that the employee often represents the mc Donalds as a best service provider

for customer.

SERVICE RESEARCH:

Customer Complaints

Relationship Surveys

Post purchase behavior

Customer focus group survey

Employee’s survey

Lost customer research

Future expectations

SWOTANALYSIS

SWOT Analysis is a strategic planning method used to evaluate the Strengths,

Weaknesses, Opportunities, and Threats involved in a project or in a business

venture. It involves specifying the objective of the business venture or project and

identifying the internal and external factors that are favourable and unfavourable to

achieving that objective.

· Strengths: attributes of the organization that are helpful to achieving the

objective.

· Weaknesses: attributes of the organization that are harmful to achieving the

objective.

· Opportunities: external conditions that are helpful to achieving the objective.

· Threats: external conditions which could do damage to the business's

performance.

SERVICE FAILURE:

When Mc donalds first came in India it got failed to operate services, its because

they came up with beef product in India which causes a huge failure to Mc

Donalds product. According to Indian customs and religion beef is ground

breaking for Indian so Mc donalds had a bad impact while entering into Indian

Market.

SERVICE RECOVERY:

Later on Mc Donalds feels that they should make their product and services

according to Indian customers so they reframed their strategies. McDonald's later

on become well known for the high degree of respect to the local culture.

McDonald's has developed a menu especially for India with vegetarian selections

to suit Indian tasted and culture. Keeping in line withthis McDonald's does not

offer any beef and pork items in India. McDonald's has also re-engineered its

operations to address the special requirements of a vegetarian menu. The cheese

and cold sauces used in India are 100% vegetarian. Vegetable products are

prepared separately, using dedicated equipment and utensils. Also in India, only

vegetable oil is used as a cooking medium. This separation of vegetarian and

non-vegetarian food products is maintained throughout the various stages of

procurement, cooking and serving.

Classification of services

Classification of services is very much necessary to formulate strategies in relation

of their marketing policies. It gives number of solution to the basic question that

arises in how that service must be offered to get optimum result. Classify the

services gives us the clear picture of or we can say it give us clear cut dimension

on which field we have to work upon.

Macdonald’s services classified into following way:

1) Based on degree of involvement of customer.

It is very much a kind of people processing because a customer need to be

physically present to give its preferred order and also should be present there to

consume the ordered food as in this services is directed at the customer.

2) Based on service tangibility:

We can classify macdonald food chain services in highly tangible because as far as

tangibility is concerned, customer obtains fast food that is burger, soft drink etc,

that is tangible, though it may consumed only in small period of time.

Thus we can link macdonald food services with tangible goods linked to services

also because there is number of tangible product along with services is requested

by customers or also given by macdonalds for comfort of customers.

For example; packaging of food products, gifts to kids with their special “ happy

meal”.

3) based on skills and expertise required.

We can no doubt classify mcdonald’s food services into professional services as

these services require the services provider to be formally trained to deliver the

services.

As there is unique operation process in Mcdonald’s for preparation of food

products, so that there should be same taste that in each and every outlets

throughoutthe country.

4) Based on business orientation of service provider;

Mcdonald is commercial organisation in which the main objective of service

provider is to earn revenue and make profits, as they charge customers for the

services they offer and attempt to continuosly improve their services and

profitability.

For example: mcdonald is always innovative with their varity of offering in their

services, they regularly add on varity in their menu

To attract more and more consumer to generate more and more revenue.