09bs0002792 gopal krishan mc donald's assignment

8/7/2019 09bs0002792 Gopal Krishan Mc Donald's Assignment

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ICFAI

UNIVERSITY

DEHRADUN

Name: Gopal Krishan

IUD Number: 0901202792

IBS Number: 09BS0002792

Course Name: Marketing Management I

Course Code: SLMM501

Faculty Name: Shafiulla B.

Title of Assignment: Mc Donalds Cross cultural environment

effect, Product life cycle and Mc Donalds Vs KFC

Date of submission: 2nd

September 2009

Students Signature Faculty Signature


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Table of Contents

History ................................ ................................ ................................ ................................ .................... 3

Business Model ................................ ................................ ................................ ................................ ....... 3

Franchise: ................................ ................................ ................................ ................................ ........ 3

Product Mix:................................ ................................ ................................ ................................ ........ 3

Marketing Mix:................................ ................................ ................................ ................................ 3

Mc Donalds in India ................................ ................................ ................................ ............................... 4

Socio culture environment in India:................................ ................................ ................................ .. 4

STP strategy of Mc Donald's in India ................................ ................................ ................................ ....... 5

Geographical segmentation ................................ ................................ ................................ .............. 5

Demographic segmentation:................................ ................................ ................................ ............. 5

Product Life Cycle in Mc Donald's: ................................ ................................ ................................ ......... 5

Corporate Social Responsibility: ................................ ................................ ................................ .............. 5

Health Conscious Mc Donald's:................................ ................................ ................................ ........ 5

Mc Donald's Vs. KFC................................ ................................ ................................ .............................. 6

Targeting Kids: ................................ ................................ ................................ ................................ .... 6

Going Healthy: ................................ ................................ ................................ ................................ .... 6

Mc Donald's Suppliers: ................................ ................................ ................................ ........................ 6

Opportunities for Mc Donald's and suggestions:................................ ................................ ....................... 6

Carry away and drive through: ................................ ................................ ................................ ............. 6

McCafe:................................ ................................ ................................ ................................ ............... 7

Bibliography................................ ................................ ................................ ................................ ............ 7


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HistoryM l t t i 1955 R u t i

Bernardino, Cali ornia and he planned to make a nation wide chain of fast foodrestaurant Today Mc Donalds is the worlds largest fast food restaurant chain operating in119 countries and having 31,000 restaurants. According to their records, Mc Donalds served1 billion more customers in 2007 as compared to the year 2006. Everyday 47 million

customers visitMc Donalds restaurant because they know the love ofthe Golden Arches.In1968, the Big Mac sandwich was introduced and in 1979 the Happy Meals was introducedwhich is liked by kids a lot because of the gifts and toys they get inside. In 1984 Ray Kroc

passed away. 1995, Mc Donalds came to India. In 1996, Mc Donalds site was launched. In2005, Mc Donalds celebrated its 50th anniversary.

As perthe annual reports ofMc Donalds 2008, it has achieved a growth of 6.9% in globalsales and the total revenues are at a whooping $23.5 billion. The company has divided a sumof $5.8 billion to its shareholders in terms of dividends of share repurchases.

(http://www.mcdonalds.ca/en/aboutus/marketing.aspx)

Business ModelFranchise: The business model ofMc Donalds is franchisee based. The supply chain oftherestaurants is based on the franchisees, and only 15% of the total restaurants are actuallyowned by the company. Rest 85% of the restaurants is operated by franchisees. But thecompany follows a comprehensive training and monitoring to ensure that they provide withthe best services to the customers. The value that a customer gets in Mc Donalds has to bemaintained by each and every restaurant opened under the name ofMc Ds ifthe companywants to sustain the competitive advantage.

Product Mix:

Mc Donald's operate in 3 major categories of food items namely:

Marketing Mix: Restaurant is a sectorin marketing which is considered to have quality ofboth goods as well as services. Because the customer would like to have a good meal in therestaurant and along with that he will accept good service as well. Thus the restaurants havenot just 4 Ps of marketing but follow more than 4 Ps. Beside the product, place, promotionand prices, Mc Donald's also has good people who are always ready to serve and provide the

best quality services to their customers.

y Promotion: Overthe years, McDonald's has developed TV advertisingcampaigns that have become, like McDonald's, a part of ourlives and culture.McDonald's commercials have focused not only on product, but rather on theoverallMcDonald's experience, portraying warmth and a real slice of everyday life. This "image" or "reputation" advertising has become a trademark ofthe company and created many memorable television moments and themes,including:

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McDonald's is Your Kind of Place ( 67)

You Deserve a Break Today ( 7 )We Do it All for You ( 7 )

You You're The One ( 76)Nobody Can Do It Like McDonald's Can ( 7 )

Renewed: You Deserve a Break Today ( 80 & 8 )Nobody Makes Your Day Like McDonald's Can ( 8 )McDonald's and You ( 83)It's a Good Time for the Great Taste of McDonald's ( 84)

Good Time, Great Taste, That's Why This is My Place ( 88)

Food, Folks and Fun ( 0)McDonald's Today ( )

What You Want is What You Get ( 2)Have you Had yourBreak Today? ( )My McDonald's ( 7)

Did Somebody Say McDonald's ( 7)We Love to See You Smile (2000)

There's a little McDonald's in Everyone (200 ) - Canada OnlyI'm lovin' it (2003)

(http://www.mcdonalds.ca/en/aboutus/marketing.aspx)

The change in the advertisement has made Mc Donald's sustain in the market. It has becomea part of our lives. The TV commercials also are based on the same themes and they try totouch some aspect of our everyday lives, and thus Mc Donald's makes bondage with itscustomers.

Mc Donalds in India

When Mc Donalds entered Indian market in the year , it has to take care of a lotbusiness environment factors. And because of its proactive strategies and farsightedness, iswas able not only to enter the Indian market successfully but also to sustain in it and capture amajor chunk of the market. People in India were changing in their lifestyles and they weremoving towards fast food. That was looked by Mc Donald's as an opport unity and theyentered the Indian market.

Environmental factors that affected Mc Donalds entry in India:

Socio culture environment in India:Mc Donald's is known for its hamburgers, pork products and beef burgers. But it surelycouldnt enter the Indian market with the same products and menu. The major task in front ofMc Donald's was to reframe their menu which was acceptable by Indians. Therefore they

came out with more vegetarian products and they used chicken for their non-vegetarianproducts.

Mc Donald's made Mc Aloo Tikki for the Indian veg customers and Chicken Mc Grill for thenon-veg customers. This gave Mc Donald's a space in market to enter and it is still sustainingin the market with these products for past 4 years.


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STP strategy ofMc Donald's in IndiaMc Donald's has followed a comprehensive strategy in terms of segmentation on Indian

market. It has segmented the market on geographical, demographic and psychological basis.

Geographical segmentation: Mc Donald's has opened its restaurants in tier one cities inIndia till now but now it is slowly moving towards the tier two cities as well like Nagpur,

Jaipur, etc.

Demographic segmentation: Mc Donald's has divided the market based on two variables,one being the age factor and the other is the income. It has targeted kids mostly. Mc Donald's

even introduced some cartoon characters to influence the kids. Happy Meals by Mc Donald'sis also meant to target the kids because they give free toys in the meal pack for collection.

Product Life Cycle in Mc Donald's:An example of product life cycle can be seen in Mc Donald's. The French Fries have been animportant part of the McDonalds menu worldwide. But from past some time it was in thestage of decline and was actually not generating proper return. In an attempt to revitalize it, anew variant was introduced namely Shake Shake Fries.This is being served with chatpata

spice mix which has resulted in increase in the sales of French Fries and has elevated it fromto the decline stage. This is used to delay the decline of a well established product which hasthe potential of generating further revenue.

(NMIMS)

Corporate Social Responsibility:

Mc Donalds is finding a way to improve the energy consumption through various ways.

They are making their kitchens more energy efficient, reducing the impact on environment bythe packing and waste of restaurant operation, and designing Green Restaurants. In 2007-2008 In 2007 and 2008, McDonalds was ranked second among food service companies by

Climate Counts, designating our company in the organizations Starting category as a

better choice for the climate conscious

82 of the consumer packing material used by Mc Donalds is made of recycled material.

Health Conscious Mc Donald's:

Mc Donald's was considered to be the source of the worst eating habits. But now McDonalds has also become nutrition conscious about its consumers. Taking into considerationthe increasing obesity rate it has included the green salad into its menu and light snacks alsolike salad sandwich in order to serve those people who are health conscious. It even has the


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nutrition information chart about its diets and they guide people about their approach tonutrition and well-being. It has introduced the green salads

Mc Donald's Vs. KFC

KFC is the biggest competitor of Mc Donald's at present. Mc Donald's is trying its level best to

compete with it and to retain its market share.

Following are the strategies followed by Mc Donald's to be on top of its competitor:

Targeting Kids:

Mc Donald's have been targeting kids since the very beginning and kids are the biggest influencers in

the family where as the image of KFC is more to do with adults. The ambience at the Mc Donald's is

also meant for kids and its a place where kids enjoy a lot. Mc Donald's even organizes parties for

birthdays which are again competitive advantage for Mc Donald's.

Going Healthy:

Mc Donald's, to survive the changing scenario of health consciousness, is moving towards the healthy

food and nutritious food as well.

Mc Donald's Suppliers:McDonald's suppliers include leading Canadian companies such as Coca-Cola, DANONE, Heinz, McCain,

Minute Maid, Mother Parkers, Nestle, Newman's Own, Quaker and Saputo. McDonald's suppliers play a pivotal

role in our success, providing quality products at competitive prices.

Coca Cola for sift drinks

Heinz for tomato ketchup

McCain for potatoes and vegetables

Mother Parker for tea and coffee

Nestle for coffee

Saputo for cheese and milk products

These marketing strategies give Mc Donald's a competitive edge over KFC. Also KFC is famous for its non veg

products whereas, Mc Donald's has made its name in veg products also. And seeing the Indian culture Mc

Donald's has actually been playing a planned game. It came with altogether new menu when it entered in the

Indian market and now it even has health food like veg salad, etc.

Opportunities forMc Donald's and suggestions:

Carry away and drive through:

Mc Donald's is providing with the carry away but it can add one more dimension to it. It can open the

drive away where customers can order and take their order by sitting in their car itself. They need not

get down of their vehicle, customers just have to order from their window and they can have their

order right in their vehicle.


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09bs0002792 gopal krishan mc donald's assignment

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