mcdonalds final (1)
TRANSCRIPT
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McDonalds in India
Presented by-
Anshu Jain
Apoorv Misra
Atul Jain
Aayushi Khandelwal
Bidisha Mukherjee
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McDONALDS
Founded by Richard McDonald and Maurice McDonald
in 1941
Over 31,000 outlets world wide serving more than 46
million customers every day
Popularized the concept of drive-in
Later introduced the concept of self-service
Ray Kroc initiated restaurants with franchise concept
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Ray Kroc was working as a multi-mixer
salesman when he was stunned by the
operational effectiveness of McDonalds Pitched his vision of creating McDonalds
restaurants to the founders
In 1955 he founded the McDonalds Corporation
and in 1960 bought exclusive rights to the
McDonalds name
The Ray Kroc Story
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Planned to build a restaurant system famous for
high quality and uniform methods of preparation
Principle of 3-legged stool
Rewarded innovation
In 1961 launched Hamburger University in Elk
Grove Village, Illinois
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McDonalds in India
Opened first restaurant in Basant Lok market inVasant Vihar, New Delhi in 1996
132 restaurants acrossIndia: 79 in north and east
India and 53 in west and south India
Entered into two JVs: one with Connaught Plaza
Restaurants Pvt. Ltd. in north and east region; other with Hard Castle Restaurants Pvt. Ltd. in west and
south region
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Segmentation
Demographically :-
1]Cater to kids
2] youth
3]Urban upper & Middle class families.
Geographically :-
1]Mostly in urban towns and cities
2]Now opening in 2 and 3 tiers cities
3]Mostly situated in malls
Psychographic:-
1]Place to chill out with friends and families
2]Place for enjoyment of the kids
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TAR GET MARK ETS
Initial focus on Metros, Malls, Multiplex, Highways, Stations &
Airports.
Exposure to Western food & Culture.
Move to smaller satellite towns lik e Gurgaon,Pune.
Jaipur & Agra to attract foreign tourists..
DIFFER ENTIATION
Highlighting:
Brand
Food
Local taste
TAR GETING &
DIFFER ENTATION
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Culturally Sensitive
Developed menu specially for India
Does not offer beef or pork items
Vegetable products are 100% vegetarian i.e.
They are prepared separately, using dedicated equipment andutensils.
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 ismaintained throughout the various stages of procurement,
cooking and serving.
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Promotion
Individual communication - Word of mouth, peer group
Mass communication ± Advertisements and child
amusement activities at outlets, drives and campaigns
Free distribution of children toys. With every happy meal
Some of the most famous marketing campaigns of McDonald¶s are:
³You Deserve a break today, so get up and get away- To McDonald¶s´
³Aap ke zamane mein ,baap ke zamane ke daam´.
³Food, Folks, and Fun´
³I¶m loving it´.
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Variety of value, premium & wholesale Menus giving more
customers more reasons to visit
Expanded Happy Meal choices to attract & retain customers
Education people about healthy, active lifestyles, premium
Salads < 10 gm fat
Lucky Draws & Scratch Card
Value Meals
Clean and Hygienic Interiors
Tie with comic company to release little toys
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Ronald McDonald, introduced 1963, second only to
Santa Claus in terms of recognition
In one Advertisement, Salim of Movie Mughal ±e- Azam
takes a break during the shoot to bite on a McDonald¶s
burger
Happy Price Menu to highlight low price through an
Advertisement of a retired Army officer who is shown
remembering his army days after hearing the price
Free gifts to children along with the core product
Positioning ± µMcDonalds mein hai kuch baat¶- a place
for the entire family to enjoy
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Pricing
Pricing includes the list price, the discount functions available,
the financing options available
It should also take into the consideration the probable reactionfrom the competitor to the pricing strategy.
Pricing is the only mix which generates a turnover for the
organization
The remaining 3p¶s being the variable cost for the
organization, Price must support these elements of the mix
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The danger of using low price as a marketing tool is that the
customer may feel that quality is being compromised
It is important when deciding on price to be fully aware of the brand
and its integrity
A further consequence of price reduction is that competitors match
prices resulting in no extra demand. This means the profit margin
has been reduced without increasing sales. Pricing is difficult and must reflect supply and demand relationship
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McDonalds Pricing Strategy
In September 2009, McDonald¶s announced reduction in prices byalmost 25% for its lunch and dinner menus.
Prices for its extra-value meals like McVeggie and McChicken were
reduced to Rs. 85 and 95 respectively from Rs. 110 and 120
respectively and Typically a meal consists of burger, French fries
and soft drinks
This strategy was surprising as it came at a time when food prices
were increasing by the day
the management was convinced that tweaking the prices of it
combo meal offering would help customers prefer McDonald¶s as a
lunch and dining destination as well
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Special offer such as happy meal ,Value meal and Combo meal
Heavily marketed µ Happy Price meal¶
Prices are adjusted by the mutual discussions by the owners or
franchisers, where is it located.
The price is always set by keeping in mind the economic factor and
the purchasing power of the customer and geographically
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McDonald¶s came up with a very catchy punch line
³Aap ke zamane mein ,baap ke zamane ke daam´
They follow the local price and local flavour but
international standards
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Value Pricing
Happy Meal
± Small Burger + Coke + French fries + Toy
Medium Meal combo
± Burger, fries, coke (Rs 75 for Veg)
Maharaja Mac meal ± R 94
Family dines under Rs300
Pricing of the menu is less than Pak, Sri Lanka and 50% lesser than in
the U.S.
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Competitive Pricing
K FC
± Rs 59 to Rs 79 (Burger/K FC + Drink)
± Chicken Rice gravy meal for Rs 39
Pizza Hut ± Family meal ± two medium pizza + Coke for Rs 350+
Wimpy
± Mega Meal starting from Rs35
Mc Donalds
± Value meals starting at Rs 39, Quick bites Rs25 and Soft serve
for Rs 8
± Low prices with profit margin of about 40%.
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Pricing strategy Matrix
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Product
Wide Product Portfolio ± Vegetarian and non-vegetarian
The vegetarian burgers :Veg surprise, salad sandwich, Mc Aloo
Tikki Burger, Mc veggie burger etc. are offered to the customers.
Non-vegetatarian burgers include Chicken Mc grill, Mc chicken
burger, Fliet of fish and chicken maharaja burger etc.
Product Innovation: Chicken Maharaja
Product elimination: Removal of Beef flavour
Product Controversy (2001)
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Place
Evenly spread outlets across cities
Tak e away counters
Home delivery
Expanding in two tier cities lik e Pune and Jaipur
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Fully owned outlets :- Directly selling from McDonalds
McDonald's mainly consists of the distribution channels the
product is available to the customer at the right place, at the
right time and in the right quantity
Offers hygienic environment, good ambience and great service
Started giving internet facilities
Areas for children where they can play and enjoy with their
family and friends
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SWOTANALYSIS
PLEASE ADD UR POINTS STRENGHTS
Strong brand recognition
Strongest International
Presence
Customer Intimacy
Product innovation
Supply Chain
OPPO RTUNITIES Expand into Tier1 and Tier
2 cities
Entry into breakfast
category
Acquisition of other
restaurants
WEAKNESS
Low depth and width of
productHigh overall costs than rivals
THREATS
Changing customer lifestyle
Increase in competition
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McDonalds Jum
bo King
Pizzah
ut
McAloo Tikki - 20 R egular Vada Pav - 7 Simple Veg pizza-195
Mc Veggie - 45BrownBread Vada Pav-10
Veggie Supreme -345
Mac Chik en Maharaja-
99B
utter VadaP
av - 10 Chicken Supreme-360
Value Meal - Chollee vada Pav - 13 Garlic bread platter-90
Happy Meal- CheeseVada Pav - 16 Soup¶s-45 to 80
French fries-38 Schezwan vada pav - 15 Pasta¶s-110
Cold Coff ee-39 Lassi - 10 Pepsi/7up/Mirinda -40
Iced tea - 25 Mango Lassi - 15 Pizza hut ±Royale-80
Soft Serve - 20 Pepsi - 10 Almond Praline-45
COMPETITORS ANALYSIS
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Past McStrategies
Product Development
± Successes: Fries, Happy Meal, Big Mac, Egg
McMuffin, Chicken maharaja ,Chicken nuggets
± Failures: McPizza, Fajita, Carrot Sticks, McLean,
and the Arch Deluxe
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New McStrategies
Leverage Brand Equity
Product Development:
Focus on
core business
² Quality and taste issues
Food delivery methods MBX (McDonald·s Big Extra)
² Family Value Meal
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New McStrategies
Joint Venture (Franchisee): Change
methods of dealing with franchisees
² To better motivate owners and foster
team spirit
² Enhance owners· participation in process
improvements
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New McStrategies
Market Penetration and Development
² Continue International expansion
Retrenchment² Home office cost reductions
² Splitting into five geographic divisions
Horizontal Integration
² Purchase competition with differing target
markets
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McDonald¶s the Future..!!
McDonald¶s has built his strength in strong brand Customer intimacy
Product innovation & Supplier integration
It has its independent franchisee models in 2 tiers & 3 tiers cities i.e. Pune,Jaipur and many more
McDonald¶s undertakes expansion; plans 80 new stores at Rs 3000 cr
investment in 2009
Coming up with new schemes that suits to every pocket
Mc-delivery has been started so everyone can be at home and enjoy
McDonald's food
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BYE BYE SEE Y OU AT
McDonald's