mcdonald

CHAPTER 1

MINOR PROJECT REPORT ON MCDONALDS CORPORATIONSUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT OF BACHELOR OF BUSINESS ADMINISTRATION (BBA) A Study on Marketing Mix Elements of

McDonalds Corporation

Submitted to: Submitted By: Mr.Gaurav Shivam Chhabra Batch: 2008-11 Roll No .0902151708Chanderprabhu Jain College of Higher Studies & School of LawTowards Excellence, Everyday(Recognized by Govt. of NCT of Delhi and Affiliated to GGSIP University, Delhi)

Plot No. OCF, Sector-A- 8, Narela, Delhi-110040

Tel: 91-11-27284333/34. Fax: 91-11-27284335. Website: www.cpj.edu.in E-mail: [email protected]

DECLARATIONThis is to certify that Report entitled which is submitted by me in partial fulfillment of the requirement for the award of degree of Bachelor of Business Administration to G.G.S.I.P.University, Kashmere Gate, Delhi, comprises only my original work and due acknowledgement has been made in the text to all other material used.

Name & signature of StudentEnrolment no.

Name of the GuideDate: CERTIFICATE

This is to certify that Report entitled . which is submitted by in partial fulfillment of the requirement for the award of degree of Bachelor of Business Administration to G.G.S.I.P.University, Kashmere Gate, Delhi, is a record of the candidate own work carried out by him under my supervision. The matter embodied in this thesis is original and has not been submitted for the award of any other degree.

Date:

Supervisor

AcknowledgementWith profound sense of gratitude and regard, I express my sincere thanks to my guide and mentor for the valuable guidance and the confidence he instilled in me, that helped me in the successful completion of this project report. Without his help, this project would have been a distant affair. His thorough understanding of the subject and the professional guidance is indeed of immense help to me.

I express my sincere gratitude to my Industry guide Mr. Rahul Gupta, Branch Manager of Mc Donalds Corporation for their able guidance, continuous support and cooperation throughout my project, without which the present work would not have been possible.

I would also like to thank the entire team of McDonalds, for the constant support and help in the successful completion of my project.Shivam ChhabraRoll No. 0902151708TABLE OF CONTENTS

S. NoTOPICPage. No

1.CHAPTER-1.0 INTRODUCTION

1.1OVERVIEW OF INDUSTRY AS A WHOLE1.2PROFILE OF THE ORGANISATION1.3PROBLEMS OF THE ORGANISATION1.4COMPETITION INFORMATION 1.5S.W.O.T ANALYSIS OF THE ORGANISATION

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2.CHAPTER-2.0 OBJECTIVES AND METHODOLOGY 2.1SIGNIFICANCE 2.2MANAGERIAL USEFULNESS OF THE STUDY 2.3OBJECTIVES2.4SCOPE OF STUDY2.5LIMITATIONS

2.6 METHODOLOGY

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63

3.CHAPTER-3.0 CONCEPTUAL DISCUSSION64

4.CHAPTER-4.0 DATA ANALYSIS77

5.CHAPTER-5.0 FINDINGS AND RECOMMENDATIONS

92

ANNEXURE

QUESTIONNAIRE BIBLIOGRAPHY

CHAPTER- 1

INDUSTRY OVERVIEW (FAST FOOD INDUSTRIES)

Fast Food IndustryIntroduction

The fast 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 Nirulas, Haldirams and multinational companies like McDonalds, Pizza hut, Dominos pizza, etc.

In addition to these, apparently some of the best known international food chains are looking at India. Among them are Sbarro, The Burger King, KFC, Dunkin Donuts, Sub

-way, 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.

There were disturbances in India when it was learned that McDonaldss were pre-cooked in beef fat in the USA, because Hindus revere cows and cannot eat beef.

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. While US brands such as McDonalds, Pizza hut and Kentucky Fried Chicken have become household names, more are on their way.

The Market Scenario

India among top 10 market for weekly fast food consumption, an online survey has found. Most of the countries are from the Asia-pacific region, with the US being the exemption.

According to an A C Neilson study of 28 markets across the US, Europe and the Asia-Pacific, carried out through the internet in interviews with more than 14000 consumers, Asians are the worlds greatest fast food fans.

Percentage of adult population eating at takeaway restaurants at least once every week:

Hong Kong 61 %

Malaysia 59 %

Philippines 54 %

Singapore 50 %

Thailand 44 %

China 41 %

India 37 %

Europe 11 %

Among the international fast food chains and local operators, McDonalds emerges as the most popular of all takeaway options with 54% of Americans, 75% of Europeans and 64% of Asians.McDonalds is most visited in Australia (84%)

KFC is most visited in China (42%)

Pizza hut is most visited in India (22%)A typical fast food meal in the India & other Multinational companies consists of fries and a burger (or other main item).

HistoryThe concept of ready-cooked food for sale is closely connected with urban development. In Ancient Rome cities had street stands that sold bread and wine. A fixture of East Asian cities is the noodle shop. Flatbread and falafel are today ubiquitous in the Middle East. Popular Indian fast food dishes include vada pav, panipuri and dahi vada.Some trace the modern history of fast food in America to July 7, 1912 with the opening of a fast food restaurant called the Automat in New York. The Automat was a cafeteria with its prepared foods behind small glass windows and coin-operated slots. Joseph Horn and Frank Hardart had already opened the first Horn & Hardart Automat in Philadelphia in 1902, but their Automat at Broadway and 13th Street, in New York City, created a sensation. Numerous Automat restaurants were built around the country to deal with the demand. Automats remained extremely popular throughout the 1920s and 1930s. The company also popularized the notion of take-out food, with their slogan Less work for Mother. The American company White Castle is generally credited with opening the second fast-food outlet in Wichita, Kansas in 1921, selling hamburgers for five cents from its inception and spawned numerous competitors. It is arguable because most historians and Secondary School textbooks state that A&W was the first fast food restaurant, which opened in 1919.After discovering that most of their profits came from hamburgers, the brothers closed their restaurant for three months and reopened it in 1948 as a walk-up stand offering a simple menu of hamburgers, french fries, shakes, coffee, and Coca-Cola, served in disposable paper wrapping. As a result, they were able to produce hamburgers and fries constantly, without waiting for customer orders, and could serve them immediately; hamburgers cost 15 cents, about half the price at a typical diner. Their streamlined production method, which they named the "Speedee Service System" was influenced by the production line innovations of Henry Ford.

In the cities of Roman antiquity, much of the urban population living in insulae, multi-storey apartment blocks, depended on food vendors for much of their meals. On New Year's Day 2008 a study was conducted worldwide counting the number of fast food restaurants per person. The UK has claimed this title with Australia second and the United States third. England alone accounted for 25% of all fast food. Jobs and Labor Issues

First the issue of labor costs. Employees are the backbone of the fast food industry. Proper training is crucial to the orderly and quick service customers expect. Yet, employee turnover can be as high as 200% per year. With such a turnover, owner-operators of franchise and non-fanchise restaurants have the daunting task of constantly training an entirely new workforce. Policies and procedues need to be explained to each new employee. The second issue facing all employers and especially fast food restaurant owner-operators is the steady increase in employment practices lawsuits. The restaurant industry with its high emotional content is a frequent target of discrimination claims. About 500 employment practices lawsuits are filed in the United State everyday. Many employers believe that the greatest legal threat that companies face are employee lawsuits. The various players operating in Fast Food Industry in India & as well as outside India are being discussed below. It includes Sbarro, Burger King, Dunkin Donuts, kfc, & Subway which are competitors of Mc Donalds & also come under overview of Industry.Sbarro

.

TypePrivate (family-owned)

FoundedBrooklyn, New York (1967)

HeadquartersMelville, New York

Number of locations1,064

Key peoplePeter Beaudrault, President and CEOAnthony J. Puglisi, VP and CFO, Anthony Missano, Stuart M. Steinberg, John Brisco

IndustryFast Food

ProductsPizza, Pasta

Revenue$354.4 million (2006)

Websitewww.sbarro.com

Sbarro is a chain of pizza restaurants that sells pizza and other Italian dishes. The chain specializes in traditional Italian cuisine selling mostly "by the slice."

HistorySbarro was founded by Gennaro and Carmela Sbarro. In 1956, the Sbarro family opened their first Salumeria (an Italian grocery store) in Brooklyn, which became popular for its fresh food and genuine Italian fare. Their Sbarro Italian Delicatessen in Brooklyn, N.Y. was well received by the local community and was the first of a successful chain. The success of the Sbarro Salumeria led to the opening of more locations throughout the New York City area. In 1970, Sbarro opened its first mall-based restaurant in Brooklyn's Kings Plaza Shopping Center, marking the beginning of the modern Sbarro concept: Italian food in an open kitchen that allowed for fast self-service.

Brands Sbarro 1,064 locations worldwide.

Sbarro restaurants are located in shopping malls, airports, service areas, cinemas &

college campuses. Sbarro has 1,064 located Fast food restaurant.

Some trace the modern history of fast food in America to July 7, 1912 with the opening of a fast food restaurant called the Automat in New York. The Automat was a cafeteria with its prepared foods behind small glass windows and coin-operated slots. Automats remained extremely popular throughout the 1920s and 1930s. The company also popularized the notion of take-out food, with their slogan Less work for Mother.As a result, they were able to produce hamburgers and fries constantly, without waiting for customer orders, and could serve them immediately; hamburgers cost 15 cents, about half the price at a typical diner. Nearly from its inception, fast food has been designed to be eaten "on the go" and often does not require traditional cutlery and is eaten as a finger food. Major international brandsMcDonald's, a noted fast food supplier, opened its first franchised restaurant in the US in 1955 (1974 in the UK). Other prominent international fast food companies include Burger King, Subway, Kfc, Dunkin Donuts, etc.Major North American brandsDunkin' Donuts, a New England based chain that emphasized and refined the commissary model of food preparation; KFC, a part of the largest restaurant chain in the world, and Domino's Pizza, a pizza chain known for popularizing home delivery of fast food. Subway restaurants are known for their sub sandwiches and Subway is the largest restaurant chain to serve such food items. The Subway restaurant chain is the fastest growing restaurant chain in the world surpassing even McDonald's. Burger King

Burger King

TypePublic (NYSE:BKC)

FoundedDecember 4, 1954 in Miami, Florida, USA

Founder(s)James Mc Lamore and David Edgerton

Headquarters5505 Blue Lagoon Drive,Miami-Dade Co, Florida (near Miami)

Key peopleBrian Thomas Swette (Chairman)John Chidsey (CEO)Ben K. Wells (CFO)

IndustryFast food

ProductsFast Food(hamburgers chicken french fries soft drinks milkshakes salads desserts breakfast)

Revenue

Operating income$290.00 million USD (2007) 70% over 2006[1]

Net income$148 million USD (2007) 548.1% over 2006[1]

Employees41,000 (2008)

ParentBurger King Holdings Inc.

Websiteburgerking.com

At the end of its fiscal year 2008, Burger King reported that there are more than 11,550 outlets in 71 countries; 66% are in the United States and 90% are privately owned and operated. The company has more than 37,000 employees serving approximately 11.4 million customers daily.

Corporate ProfileHistoryThe predecessor to what is now called Burger King was founded in 1953 in Jacksonville, Florida as Insta-Burger King. The original founders and owners, Kieth J. Kramer and his wife's uncle Matthew Burns, opened their first stores around a piece of equipment known as the Insta-Broiler..The rights to open stores in Miami, Florida belonged to two businessmen named James McLamore and David R. Edgerton, both alumni of the Cornell University School of Hotel Administration. McLamore visited the original McDonald's hamburger stand belonging to Dick and Mac McDonald in San Bernardino, California; sensing potential in their innovative assembly line-based production system, he decided to open a similar operation of his own. Their first Insta-Burger King's opened on December 4, 1954 in a suburb of Miami, Florida, and by 1959. The company eventually became known as Burger King Corporation and began selling territorial franchise licenses to private owners across the US by 1961.International expansion Over the ten year period starting in 2008, Burger King sees 80% of its market share to be driven by foreign expansion, particularly in the Asia-Pacific and Indian subcontinent regional markets. The company plans to add over 250 stores in these Asian territories, as well as other countries such as Macau, by the end of 2012. Its expansion into the Indian market has the company at a competitive disadvantage with other fast food restaurants such as KFC because the country's large Hindu majority's aversion to beef. At the end of its fiscal 2008 year, Burger King is the second largest chain of hamburger fast food restaurants in the world behind industry bellwether McDonald's (31,000 locations) and the fourth largest fast food restaurant chain overall after Yum! Brands (34,000 locations), McDonald's and Subway (28,400 locations). Industry innovations In the early 1970s, Burger King was the first fast-food restaurant to offer an enclosed and air-conditioned seating area. KFC

KFC Corporation

TypePrivate (subsidiary of Yum! Brands)

Founded1929 (original) (North Corbin, Kentucky)1952 (franchise) (South Salt Lake, Utah)

Founder(s)Harland Sanders

HeadquartersLouisville, Kentucky

Key peopleRoger Eaton PresidentHarvey R. Brownlea COOJames O'Reilly VP for Marketing

IndustryFast food

ProductsFried Chicken, Grilled chicken, related Southern foods

Revenue$520.3 million USD (2007)

Employees24,000 (2007)

ParentYum! Brands

Websitehttp://www.kfc.com

KFC Corporation, or KFC, founded and also known as Kentucky Fried Chicken, is a chain of fast food restaurants based in Louisville, Kentucky. HistoryThe restaurant in North Corbin, Kentucky where Colonel Sanders developed Kentucky Fried Chicken World's first KFC in South Salt Lake, Utah, since replaced by a new KFC on the same site. The company owned many Northern Ohio diner-style restaurants, the last of which closed in 2004. Sanders sold the entire KFC franchising operation in 1964 for $2 million USD . Since that time, the chain has been sold three more times, most recently to PepsiCo, which made it part of its Tricon Global Restaurants division, which in turn was spun off in 1997, and has now been renamed to Yum! Brands. Additionally, Colonel Sanders' nephew, Lee Cummings, took his own Kentucky Fried Chicken franchises (and a chicken recipe of his own) and converted them to his own "spin-off" restaurant chain.Today, some of the older KFC restaurants have become famous in their own right. It is often used as a travel reference point in the Atlanta area by locals and pilots. In India, KFC has not established itself in any large way as opposed to another Yum! brand-name restaurant, Pizza Hut, which is prevalent in most Indian cities. It has outlets in Chandigarh, Pune, New Delhi,Lucknow, Mumbai, Hyderabad, Bangalore, Kolkata and Chennai. The success of the Mumbai restaurant led KFC to introduce the hot and spicy chicken flavor which is more acceptable to the Indian palate. More recently, KFC has opened outlets in Vashi, Navi Mumbai.DUNKIN DONUTS

Dunkin' Donuts

TypeWholly owned subsidiary

Founded1951

Founder(s)William Rosenberg

HeadquartersDunkin' Brands130 Royall StreetCanton, Massachusetts, U.S.Phone: 781-737-3000

Key peopleJon L. Luther, (CEO)Will Kussell (COO)Kate LaVelle, (CFO)

IndustryFast food

ProductsDoughnuts Coffee Bagels Muffins Breakfast sandwiches

Revenue$4.4 billion USD (August 2006)

Owner(s)Carlyle Group, Bain Capital, and Thomas H. Lee Partners

ParentDunkin' Brands

WebsiteDunkinDonuts.com

Dunkin' Donuts is an international donut and coffee retailer founded in 1951 in Quincy, Massachusetts by William Rosenberg. It is now headquartered in Canton, Massachusetts.

Corporate ProfileHistoryA Dunkin' Donuts/Baskin-Robbins co-brand in New Castle, Pennsylvania. One of two Dunkin' Donuts locations in New Castle, this store is a former Mister Donut converted to Dunkin' in 1994 and completely rebuilt in 2003 with the addition of Baskin-Robbins and a drive-thru.Dunkin' Donuts claims to be the "world's largest coffee and baked goods chain", serving 2.7 million customers per day at approximately 8,000 stores in 30 countries which includes approximately 6,400 Dunkin' Donuts locations throughout the USA. This figure compares with the 15,011 stores of coffee chain Starbucks, whose baked goods are usually prepared out of shop. Most Dunkin' Donuts stores are franchises. Dunkin' Donuts, along with Baskin-Robbins, is owned by Dunkin' Brands Inc. Dunkin' Brands used to own the Togo's chain, but sold this in late 2007 to a private equity firm. Dunkin' Brands was owned by French beverage company, Pernod Ricard S.A. after it purchased Allied Domecq. They reached an agreement in December 2005 to sell the brand to a consortium of three private equity firms, Bain Capital Partners, the Carlyle Group and Thomas H. Lee Partners.Most of their business competition comes from small locally owned stores, Krispy Kreme doughnuts and Starbucks; in Canada and parts of the Great Lakes region, Tim Hortons is a major competitor. Expanding its operationsThe move is the first of its plans to expand its operations into lodging facilities, airports and sports arenas. In June 2009, Dunkin' Donuts announced the opening of at least 12 Dunkin' Donuts restaurants in the Dayton, Ohio region. All twelve of the stores are set to be opened by 2011. Subway

Subway

TypePrivate

FoundedBridgeport, Connecticut, USA (1965)

Founder(s)Fred De Luca and Peter Buck

HeadquartersMilford, Connecticut, USA

Key peopleFred De Luca (President)Millie Shinn (EVP)David Worroll (Controller)David Cameron (Chief Marketing Officer)

IndustryFast Food

ProductsSandwichesSaladsPizzaOther food products

Revenue $9.05 billion USD (2006)

WebsiteSubway.com

Subway is a fast food franchise that primarily sells submarine sandwiches, salads and single dish pizzas. It is owned and operated by Doctor's Associates, Inc. (DAI). Subway is one of the fastest growing franchises in the world with approximately 31,129 restaurants in 90 countries as of May 2009. It is the second largest restaurant operator globally after Yum! Brands (35,000 locations). In 1999, an Indiana University student named Jared Fogle lost 245 pounds (110kg) with a diet made up mostly of Subway sandwiches combined with exercise. History

Subway's logo used from 1974 to March 3, 2002. Still in use on many older location

Fred De Luca borrowed $1,000 from family friend Peter Buck to start his first sandwich shop in 1965, when he was only 17 years old. He was trying to raise money to pay for college. He chose a mediocre location for his shop, but by noon on the first day of the opening, customers were pouring in. As of December 30, 2008, the company has 19,310 franchised locations in 87 countries and produces US$9.05 billion sales every year. In 2007For instance, there are over 900 Subway locations inside of Wal-Mart stores and 200 on military bases, including several in Iraq, in addition to three located inside The Pentagon - as well as an increasing number on college and university campuses.Subway restaurants have been consistently ranked in Entrepreneur Magazine's Top 500 Franchises, and was selected as the #2 overall franchise in 2008. Additionally, it was ranked as the #3 "Fastest Growing Franchise", and the #1 "Global Franchise" as well. Local franchisees operate the stores, and in most markets Subway enters into a contract with a franchisee to be its Development Agent for that market. DAI takes an 8% royalty on all net sales from each store. Global locations:Subway is present in 87 countries and territories.Company ProfileMcDonalds IndiaMcDonalds in India is a 50-50 joint venture partnership between McDonalds Corporation [USA] and two Indian businessmen. Amit Jatias company Hardcastle 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 management team, in McDonald's restaurants in Indonesia and the U.S.A. before opening the first McDonalds restaurant in India.

Mc Donalds international through its wholly owned subsidiary mc Donalds 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 QSRV (Quick Service Restaurant Value) segment McDonalds has pioneered various industry benchmark practices over the past decade of serving Indian customers, including new concepts such as:# Oil alliances in India by linking with petroleum giants BPCL and HPCL. Three such alliances with BPCL outlets are in Mathura (2000), (up). #Doraha (2002) (Punjab) and Chanakyapuri (new delhi-2005)

# Novel menu formats such as an Express model with a limited menu and kiosks with a variety of desert offerings.# Home delivery (Mcdelivery -2004); providing even more convenience to our customers.# In 2006, Mcdelivery on bicycle at chandni chowk and #2007 all India single delivery number were introduced.

# First drive thru restaurant in India at Noida (up) in1997.

Restaurant count

McDonalds has 122 restaurants in India of which 72 are in north & east India and 50 in west & south India .Key Facts ~ McDonalds

TypePublic (NYSE:MCD)

FoundedMay 15, 1940 in San Bernardino, California

FounderDick and Mac McDonald

HeadquartersOak Brook, Illinois, USA

No.of locations31,000+ worldwide

KeypeopleRay Kroc, corporate founderJim Skinner, CEORalph Alvarez, president and COO

IndustryRestaurants

ProductsFast Food (including hamburgers, chicken products, french fries, milkshakes, salads, desserts, breakfast items, and children's meal ensembles)

RevenueUSD HYPERLINK "http://en.wikipedia.org/wiki/Image:Green_Arrow_Up_Darker.svg" \o "Green Arrow Up Darker.svg"

$20.460 Billion (2008)

Net incomeUSD HYPERLINK "http://en.wikipedia.org/wiki/Image:Green_Arrow_Up_Darker.svg" \o "Green Arrow Up Darker.svg"

$2.602 Billion (2008)

Employees447,000 (2008)

Slogani'm lovin' it

McDonald's vision 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.

McDonald's Mission Statement Be the best employer for our people in each community around the world

Deliver operational excellence to our customers in each of our restaurants; and

Achieve enduring profitable growth by expanding the brand and leveraging the strengths of the McDonald's system through innovation and technology.History

McDonalds journey so far..

Key Landmarks - McDonald's India Journey

1996 First McDonalds restaurant opened on 13 Oct, at Vasant Lok, Vasant Vihar New Delhi. It was also first McDonalds restaurant in the world not serving beef on its menu.1996 First drive thru restaurant at Noida , U.P. First disabled friendly store at Noida , U.P. First mall location restaurant at Ansal plaza, New Delhi

1999 First highway restaurant at Mathura ,up

2000 First thematic restaurant at connaught place, new Delhi

2001 First restaurant in a food court at 3Cs Lajpat Nagar , New Delhi

First restaurant at Delhi metro station at inter state bus terminal

First annual fundraiser in association with ORBIS and Dr. Shroffs charity eye hospital Delhi.2002 First Desert kiosk Faridabad, Haryana.2003 Indigenous products like mcaloo tikki, mcveggie and pizza mcpuff exported to Middle East countries.

2004 Mc Donalds delivery service, mcdelivery introduced in New Delhi

2006 Mc Delivery on bicycles flagged off at Chandni Chowk (Delhi) another first initiative by McDonalds India.2007 First restaurant opened in the eastern region at Park Street, Kolkata (west Bengal.)

2008 First Restaurant opened in Faridabad.2009 Mc Delivery introduced in Chandni Chowk.FUTURE ASPECTS OF Mc Donalds

McDonalds Future Includes Hipper Stores, New Menu Items:New chicken sandwiches. Double-lane drivethrus. And an adjoining McCafe with gourmet coffees, fancy pastries and a fireplace. McDonald's, or 30,000-plus worldwide; the Oak Brook restaurant, which opened late last month, doubles as public restaurant and test site. The company reported first-quarter operating income was up 6 percent to $910 million and revenue rose 9 percent to $4.8 billion over the same time last year. Its stock price nearly tripled over a two-year period, hitting a four-year high of $34.56 per share in March, but has since settled around $29. About 1,000, mostly older U.S. McDonald's have been either renovated or rebuilt since 2002. Some of the additions, such as salads, white-meat chicken nuggets and fruit options with Happy Meals, have served the dual purpose of enabling the company to state a commitment to a healthier, balanced menu while bringing in new customers who aren't there for the hamburgers. McDonald's plans to introduce more premium coffees later this year, but at its traditional restaurants. Mc Donalds to open 180- 190 Restaurants in India

Fast-food chain McDonald's India today said it plans to open 180-190 company-owned restaurants by 2015 with an estimated investment of up to Rs 570 crore. We have 157 restaurants now, including between 30 to 40 this year," McDonald's India Managing Director Amit Jatia said it generally takes around Rs 3-crore investment to open a restaurant. It caters to 30 cities. The company expects sales to grow by 35 per cent this year. It had recorded around the same level of growth in 2008, as well.McDonald's India, employs over 5,000 people now and as proposed new restaurants are opened up, the total headcount will go past the 12,000-mark. "We generally employ 40 people in a restaurant," Jatia said. Delhi and Mumbai are the two biggest markets for the company in terms of sales, while cities like Hyderabad and Bangalore are also fast catching up.McDonald's India plans to open 7 new restaurants in Bangalore this year. McDonald's India caters to 3-4 lakh customers in a day across the country.GDP GrowthNational Average GDP Annual Growth

1962- 1992 : 3.5%

1992- 2002 : 6.0%

2002- 2020 : (Projected) 7.0% Highest Average Annual GDP Growth States with Coastal Access or high Urbanisation 6- 8%Lowest Average Annual GDP Growth : 2%According to a study by National Applied Economic Research (2004), the number of households with an annual income over Indian Rupees (Rs.) 1 crore (US $228,351) has grown by 26% since 1995-96 to 20,000 in 2001-02. By 2009-10, it will increase more than seven times to 1,40,000 households. Rs. 50 lakh (US $114,180) to Rs. 1 crore (US $228, 351) bracket 6 the number of households is expected to increase from 40,000 in 2001-02 to over 250,000 in 2009-10.

Product Profile

Vegetarian menu

Vegetarian ingredientsVegetables- We use freshly shredded lettuce, onions and tomatoes in our restaurants. All our vegetable products are processed from high quality graded vegetables in a 100% dedicated vegetarian plant.

Potatoes - McDonald's world-famous French Fries and our 'chatpatey' Potato Wedges are produced only from the best quality potatoes. These potatoes are cut, blanched and processed on state-of-the-art processing lines to ensure maximum retention of nutrients. Our French Fries and Potato Wedges are cooked at the plant and our restaurants in 100% vegetable cooking oil.

Mc VeggieBreaded fried vegetable patty consist of peas, carrots, green, beans, red capsicum, potatoes, onions, rice and seasoning. The burger also includes lettuce, eggless mayonnaise in a toasted sesame seed bun.

Nutrition at glance

Serving sizein gmsProteinin gms / serveCarb.in gms / serveFatin gms / serve172

8

60

25

Caloriesin kCal / serve

Protein%Carb%Fat %491

4

35

14

McAloo Tikki

Fried breaded potato & peas patty that is flavoured with a special spice mix, fresh tomato slices, onion, and veg. tomato mayonnaise between toasted buns.

Nutrition at glance


6

53

15



4

35

10

Paneer Salsa Wrap

A traditional Mexican soft flat bread that envelops crispy golden brown cottage cheese encrusted with a Mexican Cajun coating, and a salad mix of iceberg lettuce, carrot, red cabbage and celery, served with eggless mayonnaise, tangy Mexican Salsa sauce and cheddar cheese.

Nutrition at glance


16

39

27



8

20

14

Crispy Chinese

A crispy patty that is seasoned with oriental flavours, topped with a creamy vegetarian Schezwan sauce and crunchy iceberg lettuce and served between two fresh buns.

Nutrition at glance


7

50

19



5

34

13

Veg McCurry Pan [Brocolli n Mushroom]

A rich Bchamel eggless sauce mixed with exotic vegetables like broccoli, baby corn, mushrooms, red capsicum and freshly baked on rectangular spiced bread with a cheese topping.

Nutrition at glance


18

48

11



10

25

6

Pizza McPuff

Mixed vegetables (carrot, beans, capsicum, onion and green peas), mozzarella cheese mixed with tomato sauce and spice blend coated with a savoury dough.

Nutrition at glance


4

26

14



5

33

17

Non-Vegetarian menu

Non-Vegetarian ingredientsChickenThe chicken patties are made from high quality boned breast and leg meat and are covered in a specially seasoned, lightly battered coating. They are shaped in uniform sizes to ensure consistency in weight and value.

FishThe fish patties in McDonald's Filet -O-Fish are 100% pure whole white fillets that are lightly breaded. The fish comes from a variety caught around the south-west coast of India.

ChickenMaharaja Mac

2 Grilled chicken patties with a smoke-flavoured mayonnaise, fresh onions, tomatoes, processed cheddar cheese in a toasted sesame seeded bun.

Nutrition at glance


32

54

26



12

21

10

Filet-O-Fish

Fried, breaded fillet of fish, with a half slice of processed cheddar cheese, special tartar sauce served between steamed buns.

Nutrition at glance


13

49

23


Protein%Carb%Fat % 46211199

Chicken Mexican Wrap

A traditional Mexican soft flat bread that envelops crispy golden brown chicken encrusted with a Mexican Cajun coating, and a salad mix of iceberg lettuce, carrot, red cabbage and celery, served with eggless mayonnaise, tangy Mexican Salsa sauce and cheddar cheese.

Nutrition at glance


14

37

21



7

19

11

Chicken McGrill

Grilled chicken patty flavoured with mint mayonnaise, and dressed with fresh onions and tomatoes in a toasted bun.

Nutrition at glance


16

35

12



11

25

8

Beverages

Cappucino, Caf Mocha, Plain Tea,Cardamom Tea, Hot Chocolate

Nutrition at glance

Type(Quantity) Serving sizein gms

Proteinin gms / serve


Protein%Carb. in gms / serve

Fatin gms / serve

Carb%Fat %Cappuccino

150

4

4

2

50

3

3

1

Caf Mocha

150

4

4

2

47

3

3

1

Plain Tea

150

2

8

1

46

1

5

0

Cardamom Tea

150

2

8

1

47

1

5

0

Hot Chocolate

150

4

17

1

90

3

11

0

McShakes

Nutrition at glance





Fatin gms / serve

Carb%Fat %Chocolate(S/M/L)

275400500

71013

527594

71013

298433541

333

191919

333

Strawberry(S/M/L)

275400500

71012

466784

71012

270393491

222

171717

222

Coca Cola, Fanta & Sprite Nutrition at glance





Fatin gms / serve

Carb%Fat %Coca Cola(S/M/L)

300400500

000

324253

000

126128210

000

111111

000

Fanta(S/M/L)

300400500

000

395265

000

156208260

000

131313

000

Deserts

Here are 3 golden rules that will help you to choose the right kind of food: - Balance - have the right mix of nutrients in your daily diet. Dont compromise one for the other. -Moderation eat neither too much nor too little of any one nutrient. -Variety include a range of food types in your meals.

Achievements

McDonald's India - A decade of quality service

For its unparalleled benchmarks established in the QSRV sector McDonalds India has been bestowed with many prestigious awards. To name a few:

# Most respected company for four consecutive years, 2004-2008 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.#Quality Preservance Award in 2008

# Best Servicing Award in 2009.McDonalds Global Sales Rise (Sales Performance)U.S. and European sales drive strong performance McDonald's Corp. (Oak Brook, Ill.) reports its global comparable sales rose 2.2 percent in August. By segment, same-store sales grew 1.7 percent in the U.S. and 3.5 percent in Europe, while sales in the Asia/Pacific, Middle East and Africa market dropped 0.5 percent.McDonald's Corporation (MCD):

ORGANISATIONAL STRUCTURE:

There are basically two structures! One is the senior management side, the other is the restaurant side.

At Restaurant Level: - General Manager( Restaurant Manager ( 1st Assistant Manager

( 2nd Assistant Manager ( Shift Running Manager ( Floor Manager ( Staff Training Crew (

Crew Members.

McDONALD'S SENIOR MANAGEMENTPAUL PRESTONChief Executive Officer

+--------------+--------------- -+--------------+------------------+

| | | | |

Andrew Marcus Terence Ed Philip

Taylor Hewson Haynes Oakley Cobden

| | | | |

Operations Marketing Finance Purchasing Property

Field Services Franchising Information Quality Construction/

Training/Ops- Charities Services Assurance Design

Development Security Communications Facilities Human Resources Local Govt.McDonalds 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 122 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 McDonalds 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 McDonalds Promise. McDonalds 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.

McDonalds has also re-engineered its operations repeatedly in its 11 years in India to address the special requirements of a vegetarian menu. Vegetable products are 100% vegetarian, i.e.- 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 maintained throughout 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. McDonald's does not offer any beef or pork items in India. 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 favoured by Indians. Among these are McVeggie burger, McAloo Tikki burger, Veg. Pizza McPuff and Chicken McGrill burger. We've also created eggless sandwich sauces for our vegetarian customers. Even our soft serves 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 sanitised 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. The principles that guide us

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.

We are committed to exceeding our customers' expectations in every restaurant every time.

We have 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

McDonalds Global Scenario# McDonalds 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

# McDonalds serves nearly 50 million customers each day

# McDonalds first franchised restaurant opened at Des Plaines, Illinois in 1955 by the founder Ray Kroc

# McDonalds 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

# McDonalds is listed on the New York, Frankfurt, Munich, Paris and Tokyo stock exchanges

# McDonalds aired its first network TV advertisement McDonalds - Where Quality Starts Fresh Everyday, in 1965

# The first McDonalds Drive-Thru opened in Sierra Vista, Arizona in 1975

# McDonalds launched the new worldwide Balanced Active Lifestyles public awareness campaign in 2005

# McDonalds celebrated its 50th Anniversary on April 15, 2005What threats did McDonalds face?

'A Threat' to McDonalds, the biggest fast-food chain in the world, is a leaflet which links the company's meals to heart disease and cancer and accuses it of despoiling the environment and exploiting the Third World. Bird flu no threat to McDonald's chicken: Advertisement strategy In a bid to save its plummeting sales of chicken products in mcdonalds, they have planned an exclusive advertisement campaign. This strategy is a risk and pressure tactic which would ensure that is a epidemic and bird flu scare spread they can influence the customers.

HOW DID Mc DONALDS HANDLE THEM?

By delivering(Mcdonalds handle these threats by these possible steps. ( By decreasing health problem. (superior value to customers then competitors. Mcdonald should distribute free sample in(increase advertisement in Europe. Mcdonald have to provide the job that person(different offices and colleges. Mcdonald should make(which can attract more customers through his stratigies. Mcdonald can(planning to avoid from bird flu and other diseases in future. Mcdonald should provide traditional dishes . WHAT ALTERNATIVE COULD( IT HAVE CHOSEN? Mcdonald can use following alternative to increase his value: Mcdonald should stop his product where it's not doing well and take corrective action and check his quality. Mcdonald should open new restaurant in that area where fast food has important part in the culture of that area. Mcdonald has to choose that management which can easily understand the demand of all customer. Mcdonald should decrease its prices in that country where per capita is very low. Mcdonalds should make his manuals which include traditional dishes of that area. Mcdonald should it think at the level of middle customer rather then the high level customer. Mcdonald should provide bonus to his employees for better performance. "The world has changed. Our customers have changed.Problems Borne by McDonalds

Trans fats cause problems for McDonalds...

Trans fats are formed when liquid vegetable oils go through a chemical process called hydrogenation. Common in a range of food products biscuits, chips, doughnuts, crackers the hydrogenated vegetable fat is used by food processors because it is solid at room temperature and has a longer shelf life.In September 2002, McDonald's issued a statement announcing a significant reduction of trans fats in its fried menu items french fries, chicken McNuggets, Filet-O-Fish, Hash Browns and crispy chicken sandwiches with the introduction of improved cooking oil in all of its 13,000 restaurants.The change was supposed to be completed by February 2003. However, McDonalds encountered operational issues and the oil was not changed. An anti-trans fat group claims that McDonald's deliberately allowed the public to be misled. Legal action has forced McDonalds to give effective notice to the public that the oil was not changed. In Europe and the US, food makers are under growing pressure from consumer groups to cut the trans fat content in food products.

COMPETITORS information:

Major players in this field:-

1. Nirulas

2. Pizza Hut

3. Dominoz Pizza 4. Haldirams

These day working executives are busy a lot they dont have the spare time to cook food due to there high this possible income and ever increasing arperalional levels they prefer to it out at this fast food outlets (McDonalds, Nirulas, Pizza Hut) where they find the match according to there asperitional level.1. Nirulas

Established in 1934, Nirulas today is a diversified group having a chain of elegant Business hotels, Waiter service restaurants, Family style restaurants, Ice Cream parlours, pastry shops and food processing plants in India.The chain with over 60 outlets operating in 5 states successfully caters to the Indian palate of over 50000 guests every day or over 70 years.

The restaurants serves a wide variety of multi-cuisine foods, both western and Indian including pizzas, burgers, chana kulcha, saag-roti and much more!

Ice cream parlours offers an extensive range of exciting and innovative ice cream flavors with one new flavor added every month.Nirulas pastry shops are a one-stop shop for bakery and confectionary items.

History and Background

Nirulas today is a well known name in the hospitality industry.

Nirula family was the first to offer western style fast food in India. It came to Delhi in 1928. They realized the paucity of good eating places in and around New Delhi, and started Hotel India in 1934 with 12 rooms and a restaurant with a bar license. They also specialized in catering to parties and soon Nirulas catering became famous.

Meanwhile, Nirulas had set up the India Coffee Shop in Janpath on request of the Coffee board. A few years later, the Coffee Board of India seeing the success of the international decided to run the business itself.

It 1939, whine the Second World war had started, Nirulas rented more space in Connaught Circus (what is currently the ground floor of Nirulas, L-block) and opened a Restaurant with music and serving a six course dinner for only Rs. 1. The restaurant proved to be popular with both Indian and foreign guests. It also started serving Indian food and introduced ball room dancing and caberet. However, business fluctuated widely since it was dependent on the quality and reputation of that evenings performer. Hence, in 1950 the restaurant with the cabaret was given up in favour of the Brasserie.

The Brasserie was a popular self service restaurant serving beer and liquor with a limited menu of Indian and Western food. The Brasserie gave way to the Cafeteria, the first of its kind in India with a variety of Dishes and the guests could help themselves to whatever they fancied.

Before 1947, Nirulas had also opened the first fruit preservation unit in Delhi. The jams and squash and other preserves were marketed under the name of Nirulas and had an all India distribution. With the partition of India in 1947, the supply of raw material was disrupted and this unit was stopped.

In 1950, Nirulas started the Chinese Room which was the first restaurant of its kind in India. Nirulas created history by being the first Indians of non-Chinese origin to have a Chinese food restaurant in India.

In 1954, Nirulas were the first ones to introduce espresso coffee in India. Gaggia, the inceptors of espresso coffee machines gave Nirulas sole distribution a right for their machines and Nirulas sold these to the luxury hotels and first class restaurants. Nirulas store was opened in the 1950s with a section for cold meat and delicatessen products and a separate section for bakery and confectionery produce.

Nirulas Hotel was started in 1958 and was the first modern 3-star hotel in India. In 1960 two specialty restaurants were opened. La Bohame was a modern restaurant where tea, coffee, snacks and meals were very popular. It was the most popular restaurant of its time in India. Gufa was an Indian restaurant with Indian style seating and an all silver thali service in a romantic atmosphere.

The Pastry shop was independently introduced in 1972 and did externally well. The quick service food business was again ventured into by the opening of the Snack bar in 1972 and Hot Shoppe in 1977, which was instant success. The first Ice Cream Par lour in India was started in 1978. Potpourri restaurant with the first salad bar in India and the Pegasus Bar were started in 1979. All of these exist till today.2. Pizza hut

Pizza Hut is the largest pizza restaurant company in the world. It has 12700 outlets in 90 countries. Pizza Hut has an aggressive expansion plan for India. It intends to have 100 outlets by the end of 2004. Pizza Hut will consolidate its presence in cities where it already exists as an endeavor to create a major share of these profitable markets first before spreading to other markets. Pizza Hut is one of the largest pizza brands. Further, all new outlets in India would be franchisee owned resulting from the smooth functioning of the existing stores which are all franchisee owned. Hence, the same arrangement will be followed in the future to ensure growth-oriented results.The data written below represent what Pizza Hut is all about and gives a brief profile of the company.Their main quote:"Customer is the reason that we are here."

No customers

No Pizzas

Thats the secret ingredient.

The 5 secret principles: Employees are our secret ingredients.

Show your "care".

Say "yes" to customers

Satisfied, capable teams create satisfied customers.In 1996 Pizza hut came to India with a dine in restaurant in Bangalore that has special vegetarian pizzas. In addition to traditional Italian topping, it incorporates Indian favorites such as chicken tikkas, lamb korma, etc. In its list of innovative toppings, along with pizzas the menu features appetizers like garlic bread and soups, fresh salads, oven baked pastas and choice f\of ice-cream sundaes.

In 1997 pizza hut opened a restaurant in the capitals building bustling M-Block market in Greater Kailash-I, unlike the existing pizza hut at shanti niketan which is delivery counter for just pizzas, this is dine-in where the entire menu is available.

3. Dominos pizzaIt was incorporated in 1995 as the master franchise o Dominos pizza international inc., of USA.. the first Dominos pizza store in India opened in January 1996 at new Delhi. Today it has grown into a countrywide network of over 104 outlets in 30 cities.

Ever since it was established, Dominos Pizza India has maintained its position of market leadership with its constant product innovation and maintenance of stringent service standards. It has established a reputation for being a home delivery specialist capable of delivering pizzas within 30 minutes. It was the first one to start this facility to customers.4. Haldirams

Haldiram began in 1937as a small sweet shop in Bikaner, in Rajasthan state of India.

In 2001 the turnover of haldirams was Rs. 4 billion. The group has presence not only in India but in several countries all over world.

Till early 1990s, Haldiram comprised of three units- Kolkata, Nagpur and New Delhi.

Haldiram has many firsts to its credit- It was first company to brand namkeens. And first company to offer traditional Indian items like panipuri, chatpapri and so on.The company faced tough competition not only from sweets and snack food vendors in unorganized, domestic and international competitors but also from its own units because of conflict between them.

At Haldirams quality is the obsession and this spirit has given its competitors a cutting edge. Haldiram offers a very wide range of delicacies like- Namkeens, Sweets, Syrups, Papads, North Indian dishes, South Indian dishes, Pastries.

Sweets itself has a very wide variety Bengali sweets include Sandesh and Rasgullas.

Other popular Indian sweets are:- Kheer, Halwa, Gulabjamun, Rasmalai and Kulfi.SWOT Analysis of the McDonalds Corporation (MCD):

Strengths Open door policy to the press

CERES guidance and co-ordination & active CSR

Selective supply chain strategy

Rigorous food safety standards

Affordable prices and high quality products

Nutritional information available on packaging

Decentralised yet connected system

Innovative excellence program

Promoting ethical conduct

Profitable Weaknesses Inflexible to changes in market trends

Difficult to find and retain employees

Drive for achieving shareholder value may counter CSR

Promote unhealthy food

Promoted CSR meat imports in error

Opportunities Attractive & flexible employment

Positive environmental commitments

Higher standards demanded from suppliers

Corporate Responsibility Committee

Honest & real brand image

Threats Fabricated stories about the quality of our chicken

Unhealthy foods for children

Health concerns surrounding Beef, Poultry & Fish

Labor exploitation in China

CSR at the risk of profit loss

Contributor to global warming

Local fast food restaurants

Strength

Open door policy to the pressDuring loss of public confidence arising from the safety of beef and poultry the MD had an open door, allowing the press into a limited number its restaurants and suppliers. In March 2001, MD opened its doors to both TV and printed advertisement with a view to seeing how the company was being managed.

CERES guidance and co-ordination & active CSRMD co-ordinates with investors, environmental and Corporate Social Responsibility (CSR) organisations, such as CERES, to continuously improve its social and environmental programs.

Selective supply chain strategyMD works to ensure that its suppliers meet safety and quality standards as well as sustainable food supply and animal welfare.

Rigorous food safety standardsMD works hard to ensure its high food safety standards are met through training, food, safety and quality and menu development in each restaurant. This filters through to its partners ensuring that they operate ethically and meet social responsibility standards.

Affordable prices and high quality productsMD is an efficient provider and always seeks to offer the best value to its customers.

Nutritional information available on packagingMD is one of the first fast food restaurants to disclose its nutritional information on its packaging and continues to seek new ways in which it can provide nutrition and balanced active lifestyles for its customers.

Decentralised yet connected systemMD provides a core system of values, principles and standards which managers adhere to in combination with its Freedom within the framework program which provides them with the flexibility to respond to the diversity of its customers and local markets.

Innovative excellence programMD has mystery shoppers which shop unannounced and inspect the premises as customers and rate it accordingly. Many restaurants provide customer comment contact numbers and employee satisfaction surveys.

Promoting ethical conductMD works hard to maintain its integrity with its shareholders through a

ProfitableMD is profitable with sufficient capital which allows it to grow and realise gains on its investments. This allows MD to offer help to charities as well as itself when in need. WeaknessesInflexible to changes in market trendsIf customer trends move towards eating Eco-friendly or Bio foods, MD would be unable to follow this trend without changing suppliers and incurring significant financial losses. MD could consider the introduction of new product with the aid of market research, over the coming years to prepare them for such an inevitable change.

Difficult to find and retain employeesMD has had hostile relationships with workers rights unions and although this has been controlled, the company does find it difficult to find and retain good employees. The company can build on its reputation for developing top level managers to motivate entry level employees to remain.

Drive for achieving shareholder value may counter CSR When MDs profits fall, its stock price often falls as well and is often forced to take drastic actions to resolve the problem. This can oftentimes be at the cost of being socially and environmentally irresponsible. MD could be more proactive in finding more long-term CSR suppliers and processes that provide low costs and higher profit margins, rather than being reactive.

Promote unhealthy foodDespite providing healthier product varieties, MD continues to sell burgers that have 850 calories as well as other unhealthy products. This could continue to harm its reputation as an unhealthy fast food provider. MD could research ways to reduce the calories in its products whilst still maintaining their taste, or at the least provide low calorie burger options.Promoted CSR meat imports in errorMD claimed to provide meat from socially and environmentally responsible sources, but a court case found that meat had been imported from Latin America where rainforests are cleared to create green fields for cattle. Where MD carries out CSR processes or investments it may wish to consider carrying out random checks to ensure their standards are continually met, to minimise embarrassing press. OpportunitiesAttractive & flexible employmentMD offers a variety of job opportunities and is proud to say that 42% of its top managers first started by serving customers. It is also helpful to society in being always able to hire even in times of recession, helping to keep jobless rates lower.

Positive environmental commitments MD incorporates environmental commitments in its daily operations, from maintaining daily drive-thru cleanings to providing sustainable fish sources to using recycled packaging.

Higher standards demanded from suppliersMD sets the standards it demands from suppliers for low cost high quality, socially responsible supplies, in return for a long-term business commitment.

Corporate Responsibility CommitteeMD has a standing Corporate Responsibility Committee that acts as an advisor to its Board of Directors.

Honest & real brand imageMD has built and maintains a trusting relationship with its shareholders and customers through truthful marketing and communications.

ThreatsFabricated stories about the quality of our chickenE-mails and websites have published fabricated information that MD is using monster-chickens in its products. MD could build on its open door policy with the press and apply it to the web, to combat false distribution of information.

Unhealthy foods for childrenIf competitors begin to offer premium healthy alternatives for children with small gifts to encourage them to eat healthy, this would be a significant threat to MD. MDs positive strategy to provide a range of healthy products could include healthy products for children.

Health concerns surrounding Beef, Poultry & FishThere are various initiatives working against hormone induced cows and other issues such as bird flu epidemics and heavy metal levels in fish could reduce MDs sales and cause profits and its share price to fall. MD could use its purchasing power to its advantage to source supplies that are healthy and at low prices.

Labour exploitation in ChinaChinese manufacturers exploit labour in their production of Happy Meal toys. MD could use its purchasing power to its advantage to demand that manufacturers provide a toys without exploiting labour.

CSR at the risk of profit lossIf share prices and profitability are under pressure, managers will inevitably seek to resolve it at the risk of a CSR issue.

Contributor to global warmingMD is the largest consumer of beef. Greenfields used to supply this beef comes at the expense of rainforests, heavy use of chemicals, fertilizers and pesticides. MD could use its purchasing power to its advantage to source CSR suppliers.

Local fast food restaurantsLocal restaurants which are less environmentally threatening than MD and have less purchasing power may have better reputations with local suppliers and customers. From the above SWOT of McDonalds and the summary that follows it, it can be seen how an organisation by highlighting its position it can identify areas that could be strengthened, opportunities seized and threats and weaknesses minimised or prevented completely.

CHAPTER- 2

RESEARCH

METHODOLOGY

RESEARCH METHODOLOGYMarketing Research is a process of collecting and analyzing marketing information and ultimately to arrive at certain conclusion. The purpose of this research is to describe the research procedure. Research Methodology is the mean to plan out the working process or the course of action to reach the objective. It is extremely crucial and holds the key to the success of the survey.

McDonalds Corporation is which is marketing products having different brands. Thus a survey method of marketing research is essentially Descriptive in nature.IMPORTANCE OF MARKETING RESEARCHMarketing research has its importance not only for consumers market but also it survey effectively to the producer of goods and services. The use of marketing research in consumer market may be explained on the basis of following services rendered by it.1. It ascertains the position of a company in specified Industry.

2. It indicates the present, future trend of Industry and point out how the companys affairs are being turned up.

3. It helps in development and introduction of new product.

SIGNIFICANCE OF THE STUDY:

1. Any research has its own importance in any business organization. The research shows the real fact about the products as well as the organization. Research is a systematic and scientific investigation of any idea either precise and abstract from a continous basis for learning. It is Descriptive in nature.2. Research is a systematic and scientific investigation through which any organization try to find out its strength and weaknesses as well as opportunities and threats. As we know, in the present era, the business activities have become more complex and complicated due to modern technology ,globalization and liberalization. And on other hand, today customers are conscious about products and brand.3. The research work is highly focused on this issue, which is important for us as well as for the organization. During research work we learnt customers opinion about products and brand.4. It is a strong belief that the research work is significant in all manner. This research is helpful for organization, managers and customers.

MANAGERIAL USEFULNESS OF STUDY:

1. Market Survey will help to know the prevailing market condition and also help in framing the policies accordingly.

2. The Study will help the management to understand the customer mindset and also estimating the present and future market demand for the products.

3. It will help to estimate the level of awareness established in the market and in deciding the extent of promotion required.

4. It will help in finding out the customers expansions about the product and also help to know customer psychology.

5. The Study reveals many facts that have come up during our project and these facts can either used as opportunities and exploring and expanding business as well as can be used as safeguards against threats by the competitors to prepare an effective marketing strategy.SCOPE OF THE STUDY:

A big boom has been witnessed in fast food industry in recent times. A large number of new players have entered the market and are surveying to gain market share in this rapidly improving market. The study deals with McDonalds in focus and the various segments that it caters to.OBJECTIVES OF THE STUDY: To do customer value analysis which includes identifying the major attributes that customers value in a fast food chain restaurant, assessing the quality of the different attributes.

To shed light on different aspects that a service based food chain must follow in order to increase its market share and for being on a continuous growth stream.

To identify different activities that an aggressive company like McDonalds follow in order to establish itself in a local market and increasing sales by being in customers mind and heart. To know the consumer perception and Preference about McDonalds products.The research also find out the company on different customer value attributed and try to find their performance through:

Customer Value Analysis

Identify the major attributes that customers value in fast food restaurants

Assess the quantitative importance of different attributes

Assess McDonalds performance on different customer values.

Assess the share of mind and share of heart for McDonalds.LIMITATIONS OF THE STUDY:Since the road to improvement is never ending, so this study also suffers from certain limitations. Some of them are as follows: Scope of project is limited in the sense that only McDonalds has been taken for consumer research.

The extent of the survey was New Delhi only. So the suggestions or arguments given in the report may not hold true for other locations in India.

Questionnaire method involves some uncertainty of response. Co-operation on the part of informants, in some cases, was difficult to presume.

Because of time constraints and reserve constraints, a mix of convenient sampling and Judgement (Probability & Random) sampling was used.

Also because of above mentioned constraints, the sample size chosen for the survey was 100 people.

It is possible that the information supplied by the informants may be incorrect. So, the study may lack accuracy.RESEARCH DESIGNThe controlling plan for a marketing research study in which the methods and procedures for collecting and analyzing the information is to be collected is known as Research Design or A framework or plan for a study that guides the collection and analysis of the data.Descriptive Research

A research design in which the major emphasis is on determining the frequency with which something occurs. For example, How often users access the Internet in a given month. The focus of descriptive research is to provide an accurate description for something that is occurring.

Data Source

In this project both primary data as well as secondary data are used.

PRIMARY DATAPrimary data used in this project is collected through three methods, namely, Questionnaire method and Direct personal Interview method, OBSERVATION METHOD. All these methods proved to be great help in getting the required information.SECONDARY DATA

It is not possible to collect first hand information for each & every thing so, secondary data from various sources like Internet, A. C Neilsons report on Jan, 2007, Information from television channels like CNBC, Z Business, NDTV Profit etc. and Indian Infoline website were used.STATISTICAL & PRESENTATION TOOLS USED:primary data is:

First classified i.e. grouped qualitatively and quantitatively according to the situation or the type of the data which was collected. After classifying is represented in the form of tables i.e. systematically arranged in columns and rows. Some of the data is also graphically represented in the form of Pie diagram.secondary data is represented: In the form of tables.

By the way of bar graphs and Pie CHARTS.Sample size and Areas coveredA customer-based survey was conducted in which 100 people were asked to fill the questionnaire in which all 100 people belong to cities of Delhi. Sampling Unit is restricted to North Delhi.Because it was not possible to consider each and every person of this city,

PROBABILITY SAMPLE or RANDOM SAMPLE was taken.BRIEF REVIEW OF RESEARCH METHODOLOGY

SAMPLING PLAN:Research Design: Descriptive

Target Segment : Consumer

Sample Size : 100Area covered : North Delhi

Sampling Method : Probability Sample or Random Sample.TECHNIQUES OF DATA COLLECTION:

Data Collection Method :Primary (Interview, Questionnaire Observation)Method :Personal Interaction

Type of Questionnaire :Open ended questions and multiple choice question.Research Approaches:Consumer Survey. CHAPTER- 3 CONCEPTUAL

DISCUSSION

Customer Satisfaction

Through

4 Ps

Of

Marketing Mix

Marketing Mix

Marketing Mix refers to the ingredients or the tools or the variable which the marketer mixes in order to interact with a particular market.

Marketing Mix is a set of marketing tools that the firm uses to pursue its marketing objectives in the target market

- Kotler

Marketing mix is a term used to describe the combination o the four inputs which constitute the core of a companys marketing system: the product; the price structure; the promotional activities, and the distribution system.Marketing mix represents the total marketing programme of a firm. It involves decisions with regard to product, price, place and promotion. Marketing mix is a blending of decisions in the 4 Ps.Four major ingredients of marketing mix are:1. Product

A product is any good or service that consumers want. It is a bundle of utilities or a cluster of tangible and intangible attributes. Product component of the marketing mix involves planning, developing and producing the right type of products and services. It deals with the dimensions of product line, durability and other qualities. The total product should be such that it really satisfies the needs of the target market. In short, product mix requires decisions with regard to (a) Size and weight of the product (b) Quality of the product (c) Design of the product

(d) Volume of output (e) Brand name (f) Packaging (g) Product range (h) Product testing.2. Price Price is an important factor affecting the success of a firm. Pricing decisions and policies have a direct influence on sales volume and profits of business. Price is, therefore, an important element in the marketing mix. In practice, it is very difficult to fix the right price. Right price can be determined through pricing research and test marketing. A lot of exercise and innovation is req. to determine the price that will enable the firm to sell its products successfully. Demand, cost, competition, govt. regulation, etc. are the vital factors that must be taken into consideration in the determination of the price. Price mix involves decisions regarding base price, discounts, allowances, fright payment, credit, etc.

3. Promotion

Promotion component o the marketing mix is concerned with bringing products to the knowledge of customers and persuading them to buy. It is the function of informing and influencing the customer. Promotion mix involves decisions with respect to advertising, personal selling and sales promotion. All these techniques help to promote the sale of products and to fight the competition in the market.No single method of promotion is effective alone and, therefore, a promotional campaign usually involves a combination of two or more promotional methods. Growing competition and widening market have made simultaneous use of more than one promotional method all the more necessary. Combination of two or more methods in a single promotional campaign requires an effective blending of promotional inputs so as to optimize the expenditure on each. There is no one ideal product, type of customers, the promotion budget, stage of demand, etc. should be taken into consideration.

4. Place (Distribution)This element of marketing mix involves a choice of the place where the products are to be displayed and made available to the customers. It is concerned with decisions relating to the wholesale and retail outlets or channels of distribution. The objective of selecting and managing trade channels is to provide the products to the right customer at the right time and place on a continuing basis. In deciding where and through whom to sell, management should consider where the customer wants the goods to be available. A manufacturer may distribute his goods through his own outlets or he may employ wholesalers and retailers for this purpose. Irrespective of the channel used management must continuously evaluate channel performance and make changes whenever performance falls short of expected targets. In addition, management must develop a physical distribution system for handling and transporting the products through the selected channels. In the determination of distribution mix or marketing logistics, a firm has to make decision with regard to the mode of transporting of goods to middle-men, use of company vehicles or both. Product Mix (McDonalds Product Mix)As explained earlier Product mix deals with the dimensions of product line, quality and design of the product, its packaging, brand name, product range, etc.

In this section we will study the product mix of McDonalds

Product line of McDonalds includes the products offered for sale, i.e. the range of food products offered to the customers.

The product breadth or number of products offered by McDonalds can be classified as:Vegetarian productsNon vegetarian productsBeverages

DesertsAdd-onsVegetarian products include: Non-Vegetarian products include:

Mc Veggie

Chicken Maharaja Mac

Mc Aloo tikki

Mc Chicken

Paneer Salsa wrap

Filet-o-fish

Crispy Chinese

Chicken Mexican wrap

Veg Mc Curry pan

Chicken Mc Grill

Pizza Mc Puff

Chicken Mc Curry Pan Chicken Mc Nuggets

Beverages Desserts Add-onsCold coffee Soft serve cone Fries

Hot serves McSwirl Potato Wedges

McShakes Soft serves

Soft drinks Flavour bursts

Ice tea Floats

All this shows the wide product range of McDonalds. Besides that the quality of McDonalds, according to the survey and general findings, is consistent throughout the life of the product.Nothing but the BestThat's how we plan our product range. Food quality is key at McDonald's. That's why we take pride in the foods we serve you and your family. We seek out fresh lettuce and tomatoes, quality buns and potatoes, select poultry and fish and wholesome dairy products. Despite extensive and meticulous quality tests at the supplier end, all products are once again carefully scrutinized at the restaurant. Our immaculate standards of quality allow for nothing but the best to reach your tray.Cold Chain

The term Cold Chain describes the network for the procurement, warehousing, transportation and retailing of food products under controlled temperatures. McDonalds restaurants store products to be used on a daily basis, within a temperature range of 18C to 4C. About 52% of our food products need to be stored under these conditions before they are used.Trikaya Agriculture - Supplier of Iceberg Lettuce

Implementation of advanced agricultural practices has enabled Trikaya to successfully grow specialty crops like iceberg lettuce, special herbs and many oriental vegetables. A specialized nursery with a team of agricultural experts.

Vista Processed Foods Pvt. Ltd. - Supplier of Chicken and Vegetable range of products A joint venture with OSI Industries Inc., USA, and McDonald's India Pvt. Ltd. Vista Processed Foods Pvt. Ltd. produces a range of frozen chicken and vegetable foods. A Separate processing lines for chicken and vegetable foods.

Dynamix Diary - Supplier of Cheese Dynamix has brought immense benefits to farmers in Baramati, Maharashtra by setting up a network of milk collection centres equipped with bulk coolers. Easy accessibility has enabled farmers augment their income by finding a new market for surplus milk

Product strategies:

In order to achieve the desired rate of profits and growth, a firm has to continuously adjust its products and product mix to the changing needs and targets of the market.

This matching of products to the requirements of competition and buyers is known as product strategy.

Some of the important product strategies, which firms adopt, are as follows:1) Limited Line Strategy:This refers to the offering of one product or a small number of products to cater specific market. The main benefit of this strategy is low cost of operations. However, it cannot meet the requirements of different types of customers in different markets.

2) Full Line Strategy:

This ids also known as broad line strategy, it implies the offering of a large number of products to meet the requirements of different customers in different markets.

3) Trading up and trading down:

These are alternate or opposite strategies for expanding the product mix.

Trading up implies addition of some higher priced products to the existing product line of lowered priced products for improving the sales of old products.

Trading down refers to the addition of lower-priced products to the existing higher priced product to boost total sales.

Price Mix

Price and Pricing strategies:

Price is the key element of marketing mix because it relates directly to the generation of total revenue. The term pricing policy refers to a systematic approach to pricing of different

products in different markets to evolve an appropriate pattern of prices in the long run. It is the plan defining the initial price range and the planned price movements through time that the firm will use to achieve its marketing objectives. Pricing policy includes not only the determination of base prices but also the terms and conditions of sale.

Company Pricing policies:The price must be consistent with company pricing policies. Many companies set up a pricing department to develop policies and establish or approve decisions. The aim is to

ensure that the salespeople quote prices that are reasonable to customers and profitable to the company.Now a days most companies follows buyer based pricing. They are basing their prices on the products perceived value. They see buyers perception of value, not the sellers cost, as the key to pricing.The company using perceived-value pricing must establish the value in the buyers mind concerning different competitive offers.McDonald began with skimming prices, i.e. setting a very high price for a new product initially and to reduce the price gradually as competitors enter the market.

The initial high price serves to skim the cream of the market, that is , relatively insensitive to price. This approach to pricing is, in effect, an experimental search for the right price and it may result in a market-determined price. This method starts with a high price and moves the price downward by steps until the right price is reached.

Initially McDonalds charged high price than what is being charged now. But now it introduces new schemes for value of money. Place Mix(Distribution)

This element of marketing mix involves a choice of the place where the products are to be displayed and made available to the customers. It is concerned with decisions relating to the wholesale and retail outlets or channels of distribution. The objective of selecting and managing trade channels is to provide the products to the right customer at the right time and place on a continuing basis.McDonalds distribution centres are wide, located in every area of India.McDonalds has Dine-in restaurant, Drive-Thru, McDelivery.

McDonalds has 122 restaurants in India of which 72 are in north & east India and 50 in west & south India.

72 restaurants in North & East India: with

32 in Delhi

20 in Uttar Pradesh Noida (4), Ghaziabad (4), Mathura (1) (Highway and Drive Thru), Kanpur (2), Meerut (1), Lucknow (4), Agra (1), Allahabad (1), Varanasi (2)

10 in Haryana - Faridabad (3), Manesar (1) (Highway and Drive - Thru), Gurgaon (4), Karnal (1) (Highway and Drive - Thru), Panipat (1)

5 in Punjab - Chandigarh (1), Ludhiana (1), Doraha (1) (Highway and Drive - Thru), Jalandhar (1), Patarsi (1) (Highway and Drive - Thru)

2 in Rajasthan - Jaipur (2)

1 in Uttaranchal - Dehradun (1)

1 in West Bengal Kolkata (1) 50 restaurants in West & South India:

30 in Maharashtra Mumbai (22), Pune (7), Nasik (1)

7 in Gujarat Ahmedabad (4), Vadodara (2), Surat (1)

6 in Karnataka Bangalore(6)

4 in Andhra Pradesh Hyderabad (4)

3 in Madhya Pradesh Indore (3)

For the Big Mac, the current calendar year will be the biggest in terms of restaurant openings, and by year-end, 16 new restaurants would be in place, informs Vikram Bakshi, Managing Director, McDonald's India. The new outlets will be a combination of highway restaurants, outlets at railway stations, at shopping malls and cineplexes, besides at residential areas with significant footfalls. McDonald's India recently won the tender for setting up an outlet each at railway stations in Mumbai and Jaipur. In Delhi, the chain will mark its presence through an outlet at the ambitious Delhi Metro Rail Corporation project, expected to be operational by year-end. And if all goes according to plan, another McDonald's outlet could come up at Delhi's Nizammuddin railway station. The fourth McDonald's highway outlet on the Delhi-Jaipur highway is expected to begin operating shortly. The chain's other three highway restaurants are located on the Delhi-Agra highway, the Delhi-Ludhiana highway and the Mumbai-Pune highway. Promotion MixPromotion is a process of communication with the potential buyers involving information, persuasion and influence. It includes all types of personal or impersonal communication with customers and intermediaries.

Promotion mix refers to the combination o various promotional tools usd by a business firm to create, maintain and increase demand. It involves an appropriate integration of advertising, personal selling, sales promotion and publicity.

Advertising:

Advertising is any paid form of non-personal presentation and promotion of goods, services or ideas.

The past four years have seen very high trials from first-time customers - averaging 77-80 per cent. Now we are moving away from inducing trials, and striving for repeat customers," informs Baksh

mcdonald

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