effectivity of marketing strategies adoped by mcdonalds in banalore city

EFFECTIVITY OF MARKETING STRATEGIES

ADOPTED BY MCDONALD’S

IN BANGALORE CITY

En

INSTITUTE OF HOTEL MANAGEMENT

TECHNOLOGY & APPLIED NUTRITION,

In partial fulfilment of the requirement for the degree of

Master of Science in


ADOPTED BY MCDONALD’S

IN BANGALORE CITY

By

SANSAR BIRMAN

Enrolment No: 118263141

A

DISSERTATION

Submitted to the

INSTITUTE OF HOTEL MANAGEMENT, CATERING

TECHNOLOGY & APPLIED NUTRITION, BANGALORE

fulfilment of the requirement for the degree of

Science in Hospitality Administration

2011-2013


, CATERING

BANGALORE

fulfilment of the requirement for the degree of

ACKNOWLEDGEMENT

The researcher is first of all thankful to the Almighty for providing abundant

grace, good health and knowledge to do this research project.

A deep sense of gratitude is expressed to Mr. V. R Venkatadri, Principal,

Institute of Hotel Management Bangalore, for making this study possible.

The researcher is indebted to Dr.S. Kannan (HOD), Institute of Hotel

Management, Bangalore for his guidance, generous advice, great enthusiasm,

scholastic attitude and constant Inspiration.

The researcher would like to thank Mr. Pramod Naick (Senior Lecturer)

Institute of Hotel Management, Bangalore for his inspiration and enthusiasm

for this project and also for always making himself available to assist for this

collection.

Above all the researcher is grateful to the members of his family and

colleagues, without whose love and constant support, this study would not

have been possible.

Sansar Birman

(Researcher)

(II)

TABLE OF CONTENTS

PAGE NO.

LIST OF TABLES V

LIST OF FIGURES VI-VII

CHAPTERS 1 - 79

1. INTRODUCTION 1 - 22

Company profile

Statement of the problem

Objectives

Limitations

2. REVIEW OF RELATED LITERATURE 23 - 50

3. RESEARCH METHODOLOGY 51 - 53

Research Objective

Thesis Analysis Methods

4. DATA PRESENTATION AND INTERPRETATION 54 - 67

Analysis of data

Discussion of findings

(III)

5. CONCLUSIONS AND RECOMMENDATIONS 68 - 70

Conclusions

Recommendations

APPENDIX 71 - 76

BIBLIOGRAPHY 77 - 79

Books

Journals and Periodicals

Websites

(IV)

LIST OF TABLES

SL. NO. TABLE PAGE NO.

1.The brief background of McDonald’s

2.Journey of McDonald’s

3.Overall response of Consumers and Employees

4.Table showing responses on visit to McDonald's

5. Table showing response on product knowledge ofMcDonald’s

6. Table showing response on McDonald's menurevision

7. Table showing response on constraints from eating at McDonald’s

8. Table showing response on accessibility to the nearest McDonald's

9. Table showing response on Marketing strategies used by McDonald’s

10. Table showing response that McDonald's have enough promotions in Bangalore or not

11. Table showing response on increase in sales byintroduction of happy price menu

12. Table showing response on the biggest competitor ofMcDonald's

(V)

LIST OF FIGURES

SL.

NO.FIGURE

PAGE

NO.

1.McDonald’s logo image

2.Targeting, Positioning and Differentiation

3.McDonald’s in India

4.Distribution of McDonald's

5.McDonald's campaign

6.McDonald's "Happy Price" campaign

7.Product success

8.McDonald’s marketing communication

9.Ansoff Matrix

10. Graph showing overall response of Consumers and Employees

11. Bar diagram showing have you ever been to McDonald's

12. Graph showing when you hear the word 'burger', does McDonald’s come in your mind

13. Graph showing do you think McDonald's need to revise their menu

14. Graph showing what restricts from eating at McDonald’s

15. Graph showing what is the distance of the nearest McDonald's from your place

16. Pie chart showing the Marketing strategies used by McDonald’s

17. Bar diagram showing does McDonald's have enough promotions in Bangalore

18. Graph showing do you think that introduction of happy price menu has boosted the sales up

19. Graph showing who do you think is the biggest competitor for McDonald's

20.Moment of Truth

(VII)

Abstract

McDonald's is an international fast food restaurant. They expanded their

businesses in global scale. It is obvious that McDonald surpassed other fast

food joints in terms of sales and fame in international level. However, in India,

KFC performs better than McDonald's now.

The aim of this study is to find out how this company developed its marketing

strategies differently in Indian market. By making a comparative study of

McDonald’s different operation and marketing strategy theory will be

integrated with their development situation. Research is made based on

strategy theory, Internet sources and interviews.

The thesis is started with general information, Indian fast food industrial

situation introduction and thesis structure. After having introduced the

company background, we illustrated strategy theory as thesis theoretical basis.

Next, by comparing McDonald’s marketing strategies, we analyzed the main

difference and some similarities comprehensively of McDonald’s and other

fast food joints in India.

In research finding chapter, we took qualitative finding, it is the main research

method we have used. The thesis is ended in conclusion, after main finding,

recommendation will be given to improve the present strategies adopted by the

McDonald and suggestions will be given for further research.

Keywords

Comparative study, business strategy, marketing strategy, fast food

development in India.

INTRODUCTION

COMPANY PROFILE

McDonald’s headquarters is located in Oak Brook, Illinois, United State. It is

the largest chain of hamburger fast food restaurant in the world. The company

logo is McDonald’s with a big yellow “M”. Figure 1 shows that. Richard and

Maurice McDonald started the first McDonald's store from 1950s in the US,

and it primarily sells hamburgers, French fries, dessert, and salads. In 1955,

when the first McDonald's restaurant was founded in the United States, there

was not much variety on its menu, but they offered food supply with high

quality, low cost and good environment. By 1983, there were more than 6,000

domestic branches. In 1967, McDonald's opened its first overseas branch in

Canada. By 1985, its total abroad sales accounted for about 20 per cent of its

domestic business. Every day there are more than 18 million people coming to

McDonald's in more than 40 countries. Nowadays McDonald's has more than

3,4000 locations worldwide with a revenue of 27.56 billion US dollars.

Table 1: The brief background of McDonald’s

The name of company McDonald’s

Headquarters location： America

Establishment time: 1954Business field: Western-style fast food, dessertsCompany slogan: I’m lovin’ it

The number of employees: 1,800,000 (2013)

Fig 1: McDonald’s logo image

BUSINESS STRATEGY

FRANCHISE MODEL

Only 15% of the total numbers of restaurants are owned by the company.

The remaining 85% is operated by franchisees. The company follows a

comprehensive framework of training and monitoring of its franchises to

ensure that they adhere to the quality, service, cleanliness and value

propositions offered by the company to its customers.

PRODUCT CONSISTENCY

By developing a sophisticated supplier networked operation and distribution

system, the company has been able to achieve consistent product taste and

quality across geographies.

ACT LIKE A RETAILER AND THINK LIKE A BRAND

McDonald’s focuses not only on delivering sales for the immediate present,

but also protecting its long term brand reputation.

RE-ENGINEERING THE MENU

McDonald’s thinks according to the customer’s tastes, value systems,

lifestyle, language and perception. Globally McDonald’s was famous for its

hamburgers which are prepared from beef and pork burgers. But, most

Indians religion does not allow them to consume beef or pork. So in order to

satisfy demand as per Indian preference, McDonald’s came up with chicken

and fish burgers to suite the Indian diet.

THE VEGITERIAN CUSTOMER

India has a huge population of vegetarians. To satisfy this customer’s

demand, the company came up with a completely new menu of vegetarian

items and non-vegetarian sections is maintained throughout the various

stages.

SEGMENTATION, TARGETING AND

POSITIONING

McDonald’s uses demographic segmentation strategy with age as the

parameter. The main target segments are children, youth and the young urban

family. If they take children into consideration, children are more attracted

towards toys and delicious meals including today’s youth prefer such places

for their entertainment and the urban families select McDonald’s on various

occasion like birthday party, treat to their children etc.

Kids are on the top most level in FMCG purchased related to food products.

Figure 2: Targeting, Positioning and Differentiation

So to attract children, McDonald’s has Happy Meal in which they gift one toy

on each happy meal, there are toys ranging from hot wheels to various Walt

Disney characters. Example of the latest range is the toys of the movie

Madagascar.

For this, they have a tie-up with Walt Disney. At several outlets, it also

provides special facilities like ‘Playing Place’ where children can play arcade

games, air hockey, etc.

Thus strategy is targeting in making McDonald’s a fun place where customers

can enjoy both playing and eating. This also helps McDonald’s to attract the

young urban families who wanted to spend some quality time, while their

children can enjoy every movement of McDonald’s. To target the teenagers

and young youth, McDonald’s has priced several products aggressively,

keeping in mind the price sensitivity of this target customer.

JOURNEY OF MCDONALD’S

Year Events

1955 Ray Kroc opens his first restaurant in Des Plaines, Illinois and

the McDonald’s Corporation is created.

1957 Quality, service, cleanliness and value (QSC&V) becomes the

company motto.

1959 The 100th McDonald’s opened in Chicago.

1961 Hamburger University opens in Elk Grove, near Chicago.

1963 One Billion hamburgers sold. Ronald McDonald makes his

debut.

1964 Fillet-o-fish sandwich is introduced

1965 McDonald’s Corporation goes public.

1968 The big Mac is introduced. The 1000th restaurant opened in

Des Plaines, Illinois.

1972 A new McDonald’s restaurant opens every day.

1973 Egg McMuffin is introduced.

1983 Chicken McNuggets is introduced. New Hamburger University

campus opens in Oak Brook, Illinois. Set in 80 wooded acres.

Training is provided for entry level of McDonald’s

management worldwide.

1984 50 billionth hamburger sold. Ronald McDonald Children’s

Charities is founded in Ray Kroc’s memory to raise funds in

support of child welfare.

1989 McDonald’s opens in Pushkin Square and Gorky Street,

Moscow.

1996 McDonald’s opens in India – the 95th country.

1994 Restaurants open in Bahrain, Bulgaria, Egypt, Kuwait, Latvia,

and Oman.

Table 2: Journey of McDonald’s

MARKETING OBJECTIVES

A marketing plan must be created to meet clear objectives. Objectives guide

marketing actions and are used to measure how well a plan is working. These

can be related to market share, sales and goals, reaching the target audience

and creating awareness in the marketplace. The objectives communicate what

marketers want to achieve. Long –term objectives are broken down into

shorter-term measurable targets, which McDonald’s uses as milestones along

the way. Results can be analyzed regularly to see whether objectives are being

met. This type of feedback allows the company to change plans. It gives

flexibility. Once marketing objectives are set the next stage is to define how

they will be achieved. The marketing strategy is the statement of how

objectives will be delivered. It explains what marketing actions and resources

will be used and how they will work together.

McDonald’s plans to open as many as 140 restaurants throughout India

this year, focusing on drive-through outlets.

Investment of more than Rs.400crores in the next two years to expand

its operations.

Transform itself into a high-volume, mass-market brand with

compounded annual growth at around 30 percent to 35 percent in the

next few years.

Addition of franchisees as current 75% income generated is from

franchisee centres affiliated to McDonald’s.

Moving out of the metros and concentrate its efforts on other mid-sized

cities in providing service. The plan is to enter a new city, understand

the market and then multiply by opening up more outlets in these cities

rather than spreading to too many cities at a time.

Increase the number of customers turning up at its restaurants by

providing the same service and quality by achieving 100% customer

satisfaction.

Target on customers between age- groups 24-38 with children’s to

position itself as a family restaurant and the ideal place for kids and

teenagers.

Increase brand loyalty among customers. To build a new generation

who will stay with the brand and then emerge as a long term player.

Introduce new innovative menus by development of new products,

which cater to peoples’ needs by keeping Indian tastes in mind and to

provide greater choice whilst ensuring that the products meet the

requirements of a balanced diet, so that the crowds keep pouring

through the doors.

MANAGEMENT PROCESS

McDonald’s management process has a lot to do with the following

managerial steps.

PLANNING

A plan can play a vital role in helping to avoid mistakes or recognize hidden

opportunities. Preparing a satisfactory plan of the organization is essential.

The planning process enables management to understand more clearly what

they want to achieve, and how and when they can do it. A well prepared

business plan demonstrates that the managers know the business and that they

thought through its development in terms of products, management, finances,

and most importantly, markets and competition. Planning helps in forecasting

the future, makes the future visible to some extent, it bridges between where

and we are and where we want to go. Planning is looking ahead. At

McDonald’s, planning is done with great concentration keeping all the

environmental aspects in view. Planning at McDonald’s is done before taking

up every step like before entering into a new market. Setting up a new

franchise requires the management to look at the determinants of demand and

supply in that particular region. Market research is conducted by research and

development department. A through survey is conducted about the

demographics and behavioural aspects of the markets’ potential customers. In

Punjab acceptance level of fast food is higher than other provinces and so

McDonald’s planning seeks to figure out the existing market trends in Punjab

so to be in a better position to capitalize upon the opportunities. Consumers

taste patterns and cultural variables are brought into consideration and then a

decision is made which region McDonald’s should enter into and which area

can be left alone. Apart from entering into new markets, existing markets are

constantly under observations, and planning is done before launching any new

product. The appropriate match between the consumers taste and product is

judged by the management by product testing. R&D department takes the

responsibility of such planning. Operational planning is another key area in

McDonald’s. Plans are laid out while deciding about selection of suppliers.

What resources McDonald’s should create for itself and which resources

should be outsourced are planned out. Financial planning, as told by the

McDonald’s management, is a vital area for its economic success. Finance

department has hired qualified and skilled accountants who plan and approve

of the marketing, HR and production budgets. All the planning done by

finance department is sent to higher management for further study and

approval.

ORGANIZING

Organizing at McDonald’s is done by every department on its own based on

the activities performed. However mutual coordination and communication is

intense so to keep the objectives of all the departments in alignment.

McDonald’s management does organizing by work specialization to minimize

the interference of unconcerned people which causes a delay in

implementation of planning. For example, the finance department organizes its

work among accountants, auditors, and forecasters. Marketing department has

allocated certain people. Brand managers are there to work in association with

R&D department to keep a check on brand performance by conducting brand

audits and brand tracking. Regional managers are there to look at the regions

sales, take the problems into account, taking immediate action within the

authorities , forwarding the problems to concerned authorities, for example if

sales trend in a region goes down without overt reasons, brand management is

informed to seek out the reasons and suggest solutions. Brand managers are

made responsible for keeping command over operational activities. Customer

cares, branch maintenance secure transaction , security checks, and sustaining

healthy environment is their responsibility. All of these activities are in mutual

coordination and the interdepartmental mobile communication channel is held

responsible for upholding the highest level of coordination among

departments.

LEADING

Every organization needs strong leaders who can lead the employees by

motivating, guiding and directing them. McDonald’s has been blessed with

efficient employees as ensured by its strong recruitment and selection policy.

First of all the leadership qualities of a branch manager are vitally important

for McDonald’s the ground staff who are in contact with the customers need to

be motivated in order to deliver high service standards. The standardization of

service criteria of McDonald’s requires high competencies of employees who

are working close to the customer as they are the one who will please or

displease a customer on the spot. So in this case the leadership quality of a

branch manager comes out to be more important. He needs to guide, direct and

keep the staff motivated by setting high examples of commitment and

professionalism. He has to be vigilant as well as tenacious for that.

McDonald’s training and development staff ensures to transfer good

leadership tactics to the branch managers. The managing director of

McDonald’s holds special events and personally meets those employees who

get the best performance awards at all 20 restaurants countrywide. This

inspires the ground employees to work harder and show high performance.

Another way of leading is to set high performance standards.

CONTROLLING

Controlling becomes a vital phenomenon in an organization as grows larger

and larger. With expanding resources and areas of business becoming bigger

brings some serious concerns for management to keep control over all the

facets of the organizational resources and dimensions of business. McDonald’s

has become a multinational working in more than 100 countries and running

more than 30,000 restaurants around the world. This is huge controlling in this

case becomes a pulse for the business. There has to be a system in place for

controlling factor and all the management has to be on its toes in order to

make sure the smooth and right running of the business.

McDonald’s in this area has excelled over the period of time feeling and

realizing the need of having tight control over its resources and processes

thereby providing the highest level of value to its precious customers. In

controlling, McDonald’s emphasizes seriously on financial control. Budgets

are allocated to critical success factors appropriately. For that the finance

department works in coordination with marketing department. Marketing men

pose recommendations to add value in its supply chain to get greater margins.

Finance department then considers the feasibility of implementation of those

recommendations from financial point of view. For that the financial analysts

and charted accountants are there. Finance department again asks marketing

department to review the recommendation and points out the key areas where

cost can be controlled. Marketing then again analysis the situation and ponders

upon the areas which can be forgone to come in balanced state where

maximum value can be created for approximate costs. Once the budgets are

made with areas defined, the execution patterns are transferred through high

communication to lower levels where the actual work has to be done. If the

budgets are not communicated properly, there is a high chance of

misallocation of financial resources and hence mismanagement. Head of

marketing takes over the matters and senior marketing executives are given

the charge. They ensure the right use of budgets. If something goes wrong on

lower level or even on the same hierarchy, respective personals take actions.

Operational controls in another area where serious emphasis has to be made.

McDonald’s delivers the fastest burger and other foods delivery to its

customers. For that efficiency has to be achieved through proper operations

and deployment of skilled employees. Customers concerned are directly

conveyed to branch manager who takes on the steps to rectify the manner. No

one has to be socks. This is the key. Everyone on the job has to put on the

socks. Improvements in operations are constantly made through proper

control. For that right training has to be given to the employees. At

McDonald’s, training and development of employees is a vital hand of gaining

control over operations. If the employees are rightly trained, they will function

in the most efficient manner. Human resource management requires control as

well. Having to know the right requirement of human resources depends on

the right forecasting of personals. The right selection and recruitment is done

through criterion. Once the selection is done, controlling comes into play by

providing the employees with right compensation and keeping an eye on their

training needs. Training and development department is constantly responsible

for providing training.

SWOT ANALYSIS

1. STRENGTHS

GLOBAL BRAND

McDonald’s has a very well-established global brand that appeals to all age

groups and customer segments. In 2005, McDonald’s placed ninth in the top

100 global brands ranking of business week magazine and interbrand, a

branding consultancy.

STRONG OPERATIONAL CAPABILITIES

McDonald’s has strong operational capabilities which allow it to provide high

quality products and customer service across its restaurants. The company has

a world-class supply cain and standardized processes to deliver products of

uniform quality across restaurants, regardless of their location or nature of

operation (company-owned or franchisee-operated). The company and its

partners purchase food and related items from an approved group of suppliers.

SUCCESSFUL ITEMS

Some of its products such as Big Mac, Chicken McNuggets have become

brands in their own right. Strong brand draws customers to the company’s

restaurants and provides it with a recognized brand currency in new markets.

QUALITY PRODUCTS

McDonald’s is the symbol of quality with respect to its offering.

2. WEAKNESS

WEAK REVENUE GROWTH

Low revenue growth suggests that the company has not been able to expand

customer traffic at existing restaurants thanks mainly to the maturation and

saturation of its key markets.

WEAK PRODUCT DEVELOPMENT

McDonald’s Faces a strong competition and its weak product development

creates problem.

3. OPPORTUNITIES

EXPANSION

There is a large market for McDonald’s still to serve. Furthermore it has few

outlets within cities in which it is currently serving, so McDonald’s also has

opportunity to expand within cities.

FRANCHISEE-OPERATED RESTAURANTS

McDonald’s intends to sell about company-operated restaurants to franchisees.

The operating margin of franchisee-operated restaurants is higher than that of

company-operated restaurants. The sale of company-operated restaurants to

franchisees is likely to increase the overall profitability of McDonald’s

business.

GROWING DINING-OUT MARKET

As the lifestyle trends of consumers are changing, the dining out market is

growing, that would serve as an opportunity for the McDonald’s.

4. THREATS

INTENSE COMPETITION

McDonald’s restaurants face intense competition from international, national,

regional and local retailers of food products. The company competes on the

basis of price, convenience, service and quality of food products. The

company’s competition includes restaurants, quick service eating

establishments, pizza parlours, coffee shops, street vendors, convenience food

stores, delicatessens and supermarkets.

GROWING HEALTH CONSCIOUSNESS

As the education level has increased, health consciousness has also increased.

A growing consciousness of health matters could reduce McDonald’s

revenues.

INCREASED SALES TAX

Sales tax has increased which results in the increased customer prices and

reduced sales level.

Marketing strategy is very much important for developing any of the business.

Without it, the effort of the business to attract customer is random and very

inefficient. The main focus of the strategy must make sure that the product

should fulfil the demands of the consumers and as well as it maintains the

long-term relationship with those consumers. To achieve this, it will have to

initiate flexible strategy that responds to change in customer demand and

perception. It may also give brand name to the product which will help you to

run the business in new markets smooth and efficient manner. First of all the

main purpose of the marketing strategy should be to identify the weather the

target customer’s are satisfied with the product and services of business.

Once the strategy is created and implemented, try to identify the feed from the

customer and if any changes or improvement is required apply it to the

maximum satisfaction of customers.

This helps to identify that, where the strategy needs to be improved and how it

can be developed, so that it can be implemented for effective action. Before

applying any strategy in the business proper planning programs must be

organized within the members of the organization.

A marketing strategy defines and describes the objectives or planning through

which we are going to satisfy our consumer needs in the selected target

market. It does not involve written work but, it includes communication

between different departments of the business enterprise for example sales

department, managers, executives etc.

In fact it is a set of strategies that is implied by the organization in order to

increase the growth and development of the business. Normally strategy deals

with the manner in which the organization plan to achieve the consumer

satisfaction and maximize the profit.

In today's world of cutthroat fierce competition, customer satisfaction is very

essential to not only exist but also to excel in the market. Today's market is

enormously more complex. Henceforth, to survive in the market, the company

not only needs to maximize its profit but also needs to satisfy its customers

and should try to build upon from there.

Indian companies for their operational convenience had divided the Indian

subcontinent into four zones, the progressive West, the powerful North, the

traditional and culturally rich, South and East. McDonald’s opened their first

restaurant in the capital of India which is Delhi. The second restaurant was

opened in the financial capital of India, Mumbai. McDonald initially

concentrated in the West and North regions. Later the company exhibited

ambitious plans for expansion in Eastern and Southern regions.

McDonald’s restaurant in India

In 1996, McDonald's opened in India for the first time, a country where the

majority of the population was Hindu and vegetarian, and the cow was sacred.

Many saw it as just another example of the relentless spread of Western

corporations into every nation, creating a global system in which wealth was

drained out of local economies into the hands of a very (Volume 1, Issue 2

(Jan. 31, 2009) OJICA-Online Journal of International Case Analysis 3) few,

very rich elite. McDonald’s opened its doors in India in October 1996,

demonstrating what the McDonald’s experience was all about. McDonald’s in

India was a 50-50 joint venture partnership between McDonald’s Corporation

(U.S.A.) and two Indian businessmen. Amit Jatia’s company, Hardcastle

Restaurants Pvt. Ltd., owned and operated McDonald’s restaurants in Western

India, while Connaught Plaza Restaurants Pvt. Ltd., headed by Vikram

Bakshi, owned and operated the North Indian operations. These companies

signed their joint-venture agreements with McDonald's in April 1995 and

along with their Indian management team trained in McDonald's restaurants in

Indonesia and the U.S.A. before opening the first McDonald’s restaurant in

India.

McDonald’s currently has 300 restaurants in India of which 145 are in North

& East India and 155 in West & South India

Fig 3: McDonald’s in India

India, while Connaught Plaza Restaurants Pvt. Ltd., headed by Vikram


venture agreements with McDonald's in April 1995 and



s 300 restaurants in India of which 145 are in North

& East India and 155 in West & South India.

India

RAYMOND KROC


venture agreements with McDonald's in April 1995 and



s 300 restaurants in India of which 145 are in North

“McDonald’s vision is to be the

experience. Being the best means providing outstanding quality, service,

cleanliness, and value, so that we make every cust

smile.

India as a market was a unique example of diversity. Divided into 28 states

and 7 union territories, the vegetation, climate, religion, language, clothing,

and food varied from one state to another. With the combination of spices in a

unique way, food of these states reflected their traditions and culture. Hence

the biggest challenge to any food business in India definitely was about

balancing the diversity and the product offerings.

In November 2004, McDonald’s entered southern part of India with its fir

restaurant in Bangalore, the so called silicon valley of India.

McDonald’s got clearance from Foreign Investment Promotion Board (FIPB)

of India in 1991. But it was only after five years of preparation, that the first

VIKRAM BAKSI

MISSION STATEMENT

“McDonald’s vision is to be the world’s best quick service restaurant


cleanliness, and value, so that we make every customer in every restaurant




hese states reflected their traditions and culture. Hence

the biggest challenge to any food business in India definitely was about

balancing the diversity and the product offerings.

In November 2004, McDonald’s entered southern part of India with its fir

restaurant in Bangalore, the so called silicon valley of India.



AMIT JATIA


omer in every restaurant




hese states reflected their traditions and culture. Hence

In November 2004, McDonald’s entered southern part of India with its first



restaurant became operational in 1996. It worked on developing local

relationships with local partners to facilitate the raw material.

When McDonalds started their operations in 1948 the menu consisted of

cheese burgers and hamburgers, pie, potato chips and beverages like milk, soft

drinks, coffee. The cost of hamburger at that time was mere 15 cents. Now it is

the largest food chain all over the world. By 1965 McDonalds had 700

restaurants. McDonalds all over the worlds are aligned by Global strategy of

plan to win. This strategy focuses on price, people, customer experience,

promotion and place. (McDonald’s History, 2012)

OBJECTIVE OF THE STUDY

The primary objective of study is Marketing Strategies adopted by "Mc

Donald's". The objective is supported by five secondary objectives,

achieving them will lead to the fulfillment of primary objective. They

include:

1. To identify the marketing strategies used by McDonald’s.

2. To analyze the standard of customer satisfaction for products offered

by McDonald’s.

3. To identify different activities followed by McDonald’s in order to

establish itself in market.

4. To analyze the effectivity of marketing strategies adopted by

McDonald’s.

5. To highlight 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 stage.

LIMITATIONS

1. The analysis is done on 110 (100+10) questionnaires in limited area

i.e. Bangalore city.

2. McDonald’s did not agree to show the record of performance of any of

their specific eatables.

3. 100% response rate is not found from the respondents. Some extent of

biasness is found because of Brand loyalty while answering the

questions.

4. Potential biases such as reluctance of consumers, executives etc.

5. Lack of interest of the respondent is one of the major problems.

6. The Geographic extent of this study is limited to the Bangalore market

only.

7. The researcher has tried to present a bird’s eye view and it may not be

an in depth study.

REVIEW OF LITERATURE

The “think global and act local” strategy brought McDonald's competitive

advantage in the fast-food industry. They customized their marketing

strategies based on the cultural, economical and socio political factors of

different nations (Cooper & Edgett, 2009). Adapting and executing this

strategy, the company is capable of adjusting their products and services to the

preference of their local consumers. This is also why you see difference in

their global branches in prices, atmosphere, advertisement tools and even the

architecture.

Target Marketing:

Value propositions had to be directed to the right target market to establish a

new product. An interesting question was who would eat at McDonald’s? In

order to develop the marketing strategy, it was important for any company to

understand the consumer market. The more one knew and understood about

consumers, the more effectively one could communicate and market to them.

Four aspects of consumer behaviour which needed to be examined to

understand a consumer market were the ability of the people to buy, consumer

needs, buying motives and the buying process. The initial attempt of

McDonald’s was to induce trials and get the customers into the restaurants.

Word of mouth and advertising was expected to reveal the experience of

eating at McDonald’s.

The localization strategy is beneficial for anticipating the changing needs and

preferences of the consumers within the industry. It also creates such

operational efficiency, which enables to absorb changes frequently (Barnes,

2008). If any changes occur in one country - McDonald's has to adjust only

that country specific strategy rather than entire global strategy.

Until 2000, McDonalds advertised their brand mainly by putting the main

focus on the outlet design and tailor made food menu for the needs and desires

of the diverse Indian population. (Chaturvedi, P.)

Strategies in India

In order to capitalize on the highly price sensitive economy, and the Indian

mentality of liking anything that is foreign, McDonald’s strategy was market

penetration and the three circles strategy. This led to localization ND branding

of the company. The entry of almost all the international brands into India

happened at the same time, while others closed down due to various strategies.

McDonald’s survived only due to keen understanding of the Indian economy.

Pricing

Food pricing was a sensitive issue in India. An ideal strategy was to focus on

customer’s ability to pay and tap the rich and upper middleclass population in

India. Although McDonald’s strategy was to increase sales volumes by

making products available at affordable price, its products were perceived to

be expensive. The company outlets in Delhi and Mumbai initially were opened

due to the increased affordability of people with western exposure and brand

recognition factors in metros. Additionally, people in the metros were open to

experiment with variety of foods. Absorption of newer cultures was faster in

the Metros than other areas.

The mass markets in India were price sensitive. The positive factors were the

growth in consumer markets with rapid growth in disposable incomes,

development of modern urban lifestyles and the demand for value.

Marketing Initiatives at McDonald’s

When operations in India began, initially McDonald’s positioned itself as a

place to visit with the baseline "McDonald's mein hain kuch baat" (“There’s

definitely something about McDonald’s”) in their advertisements. People were

encouraged to try the McDonald's experience. However, over the years, after

McDonald's had been hugely accepted by Indian customers, there was a need

to evolve the communication strategy and move on from trying to encourage

and motivate people to visit for the first time to making McDonald's a regular

experience. After McDonald’s established itself and people knew what

McDonald's was all about, the baseline was changed to “Toh aaj McDonald's

ho jaye" (“Let it be McDonald’s for today”), which talked about an everyday

experience. The objective was to continue positioning McDonald's as a

comfort zone for families.

Local Sourcing

McDonald's sourced its requirements from local suppliers and farmers, and

maintained its adherence to Indian Government regulations on food, health

and hygiene. McDonald's India purchased more than 96% of its products and

supplies from Indian suppliers even constructing restaurants using local

architects, contractors, local material (wherever possible), and hired local

personnel for all positions within the restaurants and contributed a portion of

its success to communities in the form of municipal taxes and reinvestment.

McDonald’s described the relationships between itself and its Indian suppliers

as mutually beneficial, reasoning that as McDonald's expanded in India,

suppliers would continue to get the opportunity to expand their businesses,

access to the latest in food technology, exposure to advanced agricultural

practices and the ability to grow or to export.

McDonald’s India is a joint venture company managed by Indian’s.

McDonald’s India, a subsidiary of McDonald’s USA, has expanded its

presence in India via two joint venture companies – Connaught Plaza

restaurants and Hard Castle restaurants. McDonald’s India has a 50 percent

equity stake each in both joint venture companies. Connaught Plaza

restaurants manages operations and expansions across North India (Delhi,

jaipur and Punjab) managed by Vikram Bakshi. Hard Castle restaurants which

is managed by Amit Jatia, manages operations and expansion across western

India (Mumbai, Pune and Gujarat).

Mr.Saranan Laxaman is a Development Licensee for the one and only

Bangalore property so far under the flagship of Golden Kitchen Pvt. Ltd.

Which was unveiled in October 2004.

In order to capitalize on the highly price sensitive economy, and the Indian

mentality of liking anything that is foreign, McDonald’s strategy is market

penetration and the three circles strategy. This led to the localization and

branding of the company. The entry of almost all the international brands into

India happened at the same time, while others closed down due to various

strategies. McDonald’s survived only due to keen understanding of the Indian

economy.

The massive and aggressive expansion strategies that McDonald’s took up in

India was with the sole objective of establishing its presence indelibly in the

sub continent and to prove to the world that if anything can sell in India it can

sell anywhere. Today McDonald’s has become a household name and finds its

kiosks in almost many schools colleges and corporate. It can be said that there

is no food court without a McDonald’s and almost every Indian has tasted

McDonald’s fast food. This is indeed a great breakthrough for a very orthodox

community that has very rigid and fixed eating habits and traditionally very

Indian.

McDonald’s had to make it clear to the authorities that their products in India

neither contain beef nor pork in it. They had to suit their burgers to Indian

taste and Indian market which was a hyper price sensitive market. The

introduction of breakfast combos and budget meals made market penetration

possible. “Aloo Tikki Burger” was McDonald’s priced product in India. Their

quick turnaround times made new inroads into the fast food industry.

(Mathur, S., 2011)

Figure 4 Distribution of McDonald's

When McDonald's India launched in 1996, urban Indians in Mumbai and

Delhi typically ate out three to fives times a month, according to AT Kearney,

the management consultancy. In the 12 years since then, that average

frequency has doubled and analysts forecast that by 2011 the Indian quick

service restaurant market will be worth 30,000 crore (about $6.3bn at October

2008 exchange rates).

But from their earliest investments in India, multinational company (MNC)

owners of restaurant chains have struggled to adapt to the needs of India's

many markets. Some pulled out of the country after failed ventures. At the

time, consolidation of the hugely fragmented Indian retail sector had also

barely begun, and there was scepticism that Indians would prefer burgers and

fast food to local food offerings.

However, in the intervening decade, McDonald's has continued to open new

outlets in the country, evolving its marketing strategy through several phases.

Twelve years of McDonald's India

McDonald's India was set up as a 50:50 joint-venture between McDonald's at

a global level and regional Indian partners such as Hardcastle Restaurants

Private Limited in western India, and Connaught Plaza Restaurants Private

Limited in northern India.

The first Indian McDonald's outlet opened in Mumbai in 1996. Since then,

outlets have begun trading in metropolitan and Tier II towns across the

country. By September 2008, it had premises in Mumbai, Bangalore, Baroda,

Pune, Indore, Nasik, Chennai, Hyderabad, Surat and Ahmedabad.

Amit Jatia, Managing Director, McDonalds India, said: "The past decade has

witnessed a marked change in Indian consumption patterns, especially in

terms of food. Households in middle, upper, and high-income categories now

have higher disposable income per member and a propensity to spend more."

Phase I: Launching the brand

The starting point for McDonald's India was to change Indian consumers'

perceptions, which associated it with being 'foreign', 'American', 'not knowing

what to expect' and 'discomfort with the new or different'.

McDonald's wanted to position itself as 'Indian' and a promoter of 'family

values and culture', as well as being 'comfortable and easy'. Simultaneously,

the brand wanted to communicate that, operationally, it was committed to

maintaining a quality service, cleanliness and offering value for money.

Says Arvind Singhal, Head of Marketing at McDonald's India: "From a

marketing communications standpoint, we chose to focus on familiarizing the

customer with the brand. The brand was built on establishing functional

benefits as well as experiential marketing."

Until 2000, McDonald's India did not have enough reach to use mass media

such as television advertising. Instead, most of its marketing effort focused on

outlet design, new store openings and PR about its attempts to tailor a menu to

Indian tastes.

Amit Jatia said: "Products like McAloo Tikki burger, Veg Pizza McPuff and

Chicken McGrill burger were formulated and introduced using spices favored

by Indians. The menu development team has been responsible for special

sauces which use local spices do not contain beef and pork. Other products do

not contain eggs and are 100% vegetarian. The Indianized products have been

so well received that we even export McAloo Tikki™ burger and Veg. Pizza

McPuff™ to the Middle East."

However the company did not escape food criticism in the country. For

instance, it hurt the religious sentiments of Indians by using beef flavoring for

its "Vegetarian" French Fries.

Says Sridhar, National Creative Director, Leo Burnett: "When McDonald's

launched we took a conscious call of not introducing any beef or pork in our

products. Thus, when controversies around McDonald's products started

during the early and growth stages of the Indian business, we reacted quickly.

"We educated our customers about the build of our products and did extensive

kitchen tours for our customers. We showed them how we use separate

vegetarian and non-vegetarian platforms for cooking – a first in any market for

McDonald's."

II Phase: brand advertising

By 2000, McDonald's India was ready to begin TV advertising. Arvind

Singhal said: "The first Indian TV commercial, Stage Fright, attempted to

establish an emotional connection between the (Indian) family and the brand.

Over the years advertising has reinforced this positioning, supported by

promotions."

The Stage Fright campaign aimed to establish McDonald's as a familiar,

comfortable place. It featured a child who suffers stage fright and is unable to

recite a poem. On entering McDonald's, he easily recites it in the store's

familiar environment.

A second campaign featured a child and his family moving into a new place.

He misses his previous surroundings – until McDonald's provides something

familiar.

Fig 5: A still from the Leo Burnett/McDonald's campaign featuring a

family moving home

These storylines were supported by other initiatives. The company's one-

minute service guarantee attempted to reinforce its reputation for fast, friendly

and accurate service and it also ran in-store events for mothers and children.

Mr Singhal says: "To kids sitting on the Ronald McDonald bench, pumping

sauce from the sauce machine became brand rituals."

K.V. Sridhar, National Creative Director, Leo Burnett, the company's agency

in India, adds: "In the launch phase the communication focused solely on

building brand and product relevance. The brand's scores on relevance to

families and kids were very high."

Later, McDonald's realized there was untapped potential in the youth audience

who considered McDonald's expensive and mainly for children.

Sridhar says: "In 2004, we launched the Happy Price Menu with a value

message for a younger audience. For the first time McDonald's India saw a

surge of younger consumers and people from socio-economic class B walk

into our stores.

"We had realized that the Indian consumer was price sensitive and even

though the organization managed to establish a sense of familiarity, Indian

consumers continued to perceive McDonald's as an expensive eating out

option."

Fig 6: McDonald's "Happy Price" campaign

Phase III: Appealing to both ends of the age spectrum

In 2008, the latest campaign from the McDonalds-Leo Burnett stable uses

father-son duos from the Indian film industry to reiterate the theme of

"Yesteryear's Prices". It features Bollywood stars from past decades together

with their sons and a message that prices have not risen in line with the

passage of time.

The Happy Price campaign has also been promoted via virals. Outdoor has

also promoted a home delivery option in a country where home delivery is

common in urban areas.

McDonald's has also been exploring strategic tie-ups with Indian sports

properties such as the IPL cricket tournament, where it was one of the event's

food providers.

Amit Jatia, however, says: "The eating out market in India is very large and

has huge potential fuelled by rising disposable incomes. There are many

Indian and international players who have entered in the market since the last

decade and unbranded food chains have also grown significantly. "The Indian

consumer has seen value in what we have to offer at our restaurants which is a

testament to our model." (Chaturvedi, P.)

MCDONALD’S MARKETING MIX (5P’S)

STRATEGY

After analyzing the market, finding he key factor, target segment and

understanding the market demand, every company needs to come up with an

offers or such type of plan, that speed up the growth of the company. For

which McDonald’s uses 5p’s of marketing mix which are as follows:

1. PRODUCT

2. PLACE

3. PRICE

4. PROMOTION

5. PEOPLE

PRODUCT:

Product includes that, how the company should design, manufacture the

product so that it enhance the customer experience?

Figure 7: Product success

Product is the physical product or services offered by the company to its

customers. McDonald’s includes certain aspects of its product such as

packaging, desirability, looks etc. This consists of both tangible and non-

tangible aspects of the product and services.

McDonald’s has purposely kept its product depth and product width limited.

McDonald’s had first studied the behaviour of the Indian customer and

provided a totally different menu as compared to its menu offered in

international market. It removed pork, beef and mutton burgers from the

menu. India is the only country where McDonald’s serve vegetarian menu.

Even the sauces and cheese used in India are 100% vegetarian. McDonald’s

continuously innovates its products according to the changing preferences of

its customers. McDonald’s brings best quality products and best features as

per the preference and demand of the target market.

PLACE:

The place mainly consists of distribution channels and outlets of the

company. It is considered as very important because the product must be

available to the customer at the right place, at the right time and in the right

quantity.

There are certain degree of fun and happiness that McDonald’s provides to

its customers. It provides value position based on the needs of the customer.

McDonald’s offers proper hygienic atmosphere, good ambiance and better

services.

Now McDonald’s have also started offering internet facilities at their outlets,

along with music system through radio, not the normal music but the music

which is preferred by young generation in order to attract them.

PRICE:

Pricing strategy is the most important aspect of marketing mix. It includes

price list, if any discount available or payment facility available. It should

also take into consideration the possible reaction from its competitors

regarding the pricing. Pricing is very much necessary because it is this part,

which decides revenue for the business unit.

All the other three ere the expenses incurred in the business. The price needs

to take demand and supply equation into consideration by analyzing the

pricing demand as per Indian market.

McDonald’s came up with a very grasping punch line “Aap ke zamane

mein, baap ke zamane ke daam”. The pricing strategy was founded to

attract middle class and lower class people and the effect can clearly be seen

in the consumer base that McDonald’s has now.

McDonald’s has certain value pricing and bundling strategies such as happy

meal, combo meal, family meal, happy price menu etc to increase overall

sales of the product.

PROMOTION:

Fig 8: McDonald’s marketing communication

The promotional activities adopted by the McDonald’s helps to communicate

efficiently with the target customers. The diagram gives idea about the

promotion strategy of McDonald’s. Application of above mentioned

communication mix describes the cost that is feasible as per the consumers.

Some of the most famous marketing campaigns of McDonald’s are:

“You deserve a break today, so get up and get away- to McDonald’s”

Marketing

Communications

Mix

Advertising Personal

Selling

Sales PromotionPublic

Relations

Direct Marketing

“Aap ke zamane mein, Baap ke zamane ke daam”.

“Food, Folks and Fun”

“I’m loving it”.

McDonald’s corporate used advertising, personal selling, sales promotion,

public relations, and direct marketing and became world’s largest leading

Burger Empire. These five promotion tools are used by McDonald’s to

integrate marketing communication program which allows McDonald’s to

access the communication channels clearly, consistently and easily transfers

messages and product to the target audiences.

SETTING THE PROMOTION MIX

ADVERTISING

An advertisement is targeted to attract the masses it reaches to large number of

people at a time. Advertising is one of the most important tools for promotion

which had various ways of advertisement in that advertisement through

billboards and media are often used by any of the business enterprise.

Consumers mostly perceive goods which are advertised goods, as they assume

it is more rightful.

Due to distinct features of advertisement McDonald’s also hold the hand of

advertising. There are three main objectives of advertising for McDonald’s are

to make people aware of an item, feel positive about it and remember it. The

right message has to be communicated to the right people through the right

media. McDonald’s does its promotion through television, hoardings and bus

shelters. They use print ads and the television programmes which are also an

important marketing medium for promotion.

PERSONAL SELLING

Personal selling is most effective tool for building buyers preference,

convenience and actions. Personal interaction allows knowing for feedback and

adjustments if required. If the organization had a good relationship with buyers

they are attentive towards personal selling.

In personal selling McDonald’s employees working in different outlets are the

best example of personal interaction, the employees are directly serving the

customers so, and the face to face communication is easily possible. In the

McDonald’s outlet there are such staff which are appointed for personal

selling they are the one who perform the activities regarding selling up of

goods to customers.

SALES PROMOTION

Sales promotion activity consist of promoting the business unit through

organizing various contest, programmes, functions, distribution of free

discounts coupons etc that attracts attention of the customers, also offers

strong purchase incentives, dramatizes offers, boosts sagging sales stimulate

quick response; short-lived; not effective at building long-term brand

preferences.

McDonald’s organizes several sales promoting contest and programmes in

different retail markets and outlets in which they distributes free discounts.

The statue of mascot McDonald’s is always there for any occasions that are

also one of the logo of McDonald’s.

PUBLIC RELATIONS

Highly credible; very believable; many forms: news stories, news features,

events and sponsorships etc; reaches many prospects missed by means of

other forms of promotion; dramatizes company or product; often the most

under used element in the promotional mix; relatively inexpensive(certainly

not ‘free’ as many people think- there are costs involved).

Public relations are also an important part of the McDonald’s marketing

strategy. The restaurant employees play a huge role in interacting with the

public. On a day-to-day basis the employees commit themselves to customer

and the customer’s feelings toward the brand. McDonald’s feels that before

they communicate with their customers they need to be aware of what their

competitors are communicating, so they can create a beneficial difference

between themselves and the competitors.

DIRECT MARKETING

Many forms: telephone marketing, direct mail, online marketing, etc. Four

distinctive characterstics: Nonpublic, immediate, customized, interactive;well

suited to highly-targeted marketing efforts.

Direct marketing is also one of the efficient tools for promotion. The

McDonald’s uses tool in the home delivery services in which they directly

serve the order to their home. Also they have a websites which are more in

preference for direct marketing in that they usually mentioned all the new

offers along with the contact number of your nearby outlets.

PEOPLE

McDonald’s understands the importance of both its employees and its

customers. It understands the fact that a happy employee can serve well and

result in a happy customer. McDonald’s continuously does internal marketing

because if the internal marketing is effective it will automatically lead to in the

success of external marketing.

Internal marketing includes hiring, training and motivating employees. In this

way they can easily serve customers and the result will be the smiling faces of

the customers. The level of importance has to be placed in the following order

(the more important people are at the top):

1. Customers

2. Front line employees

3. Middle level managers

4. Front line managers

The punch line “I’m loving it” is an attempt to show that the employees are

loving their work at McDonald’s and will love to serve the customers.

ADVERTISING STRATEGY

There have been many McDonald’s advertising strategy and slogans over the

years. McDonald’s is one of the most widespread fast food advertisers.

McDonald’s Canada’s corporate website says that the business campaigns

have always focused on the “overall McDonald’s experience”, rather than just

product. The purpose of the image has always been portraying warmth and a

real slice of everyday life. Its TV ads, showing various people engaging in

popular activities, usually reflect the season and time period. Finally, they

have never in their advertising history used negative or comparison ads

pertaining to any of their competitors; the ads have always focused only on

McDonald’s alone. McDonald’s has for decades maintained an extensive

advertising campaign. In addition to the usual media television, radio, and

newspaper, the company makes significant use of billboards and signage,

sponsors sporting events ranging from little league to the Olympic games.

BRANDING AND BRAND LOYALTY

When you see the golden arches, what is the first thing that comes to your

mind? Or what about when you see Ronald the clown, what comes to your

mind? Finally, what has 2 all, special sauce, lettuce salad on a sesames bun?

Hmmm.... sounds a lot like McDonald’s knows how to capture your attention.

One of the things that McDonald’s has proved is that they are good at building

its brand loyalty. Even young children know that when you see the golden

arches, that you are close to a McDonald’s. With its international expansion

efforts, McDonald’s has become one of the most recognized brands world-

wide. A couple of the things that has helped to build McDonald’s brand is

their constantly changing menu and brand packaging that meets the needs of

their consumers.

POSITIONING STRATEGY

McDonald’s positions itself as the leader in quick service restaurants. In order

to maintain their standard, they have started marketing to a younger set of

persons, much in the same way that their “I’m loving it” campaign does.

Users and non-users alike will use the club McDonald’s to their advantage.

They expect that their younger target will seek out memberships in club

McDonald’s. The online points tracker and profile will add to the innovation

factor. No need of paperwork when figuring out your point totals and prize

eligibility. This is easy to use aspect of the promotion is appealing to those

who were born with computers. Club McDonald’s is targeted at younger

people who are familiar with credit cards and some of the rewards cards that

are part of them.

GROWTH STRATEGY

McDonald’s growth strategy is based on three elements:

1. Adding restaurants

2. Maximising sales and profits at existing restaurants.

3. Improving profitability.

Maximising sales and profits at existing restaurants will be accomplished

through better operations, innovation, product development and refinement,

effective marketing and lower development and operating costs.

Improved national profitability will be realized as economies of scale are

achieved in individual markets and as the company benefits from the domestic

infrastructure.

SERVICE MANAGEMENT STRATEGY

If we take any fast food restaurants the customer attracts firstly through brand

and secondly with the most important thing to consider i.e. is services offered

to them.

If the services of any enterprise is not suitable to customer than it achieve the

aim that has been proposed by them.

This research describes the service management strategy employed by

McDonald’s Corporation in the operation of their fast food restaurant chain.

The company’s service management strategy is described within the

philosophy culture image of the company, service systems, and human

resources are considered. The service of the company is identified through

following tools:

TRAINING POLICY

It is the goal of McDonald’s to develop the highest level of skill among all

employees. Therefore, a common training programme has been established to

develop staff and to meet the training needs of the company.

McDonald’s head of training is responsible for implementing and directing the

training programme throughout the company. Operations supervisors and

restaurant management participate in the programme and are responsible for

individual restaurant results.

THE ANSOFF PRODUCT MARKET GROWTH

MATRIX

This matrix helps companies decide what course of action should be taken

given current performance. The matrix consists of four strategies:

1. Market penetration strategy

2. Market development strategy

3. Product development strategy

4. Diversification

Figure 9: Ansoff Matrix

MARKET PENETRATION STRATEGY

Market penetration is one of the four growth strategies of the Product- Market

Growth Matrix defined by Ansoff. Market penetration occurs when a company

enters/penetrates a market with current products. The best way to achieve this

is by gaining competitor’s customers.

Other ways include attracting non-users of your product or convincing current

clients to use more of your product/service. Market penetration occurs when

the product and market already exists in market. McDonald’s is one most

popular brand in fast food in entire world. In 1996, the first McDonald’s

opened in India, many thought that this was a wrong move for McDonald’s.

Various reasons were laid for this claim. Although, the main reasons lays on

the fact that Indians have very different perception about food. McDonald’s,

being an American food chain, view breads full meal while Indians view them

as snacks. As the time went by, McDonald’s slowly became the part of the

Indian landscape and way of life rather than just being an outpost of American

culture. Indians soon accepted that the McDonald’s serve are ordinary, thus

they are for ordinary people like them.

Future more, believes that the introduction of McDonald’s to the Indian

society changed the direction of the Indian cultural framework. Along with the

rest of the world, India was also McDonalized.

MARKET DEVELOPMENT STRATEGY

A market development strategy targets non-buying customers in currently

targeted segments. It also targets new customers in new segments.

A marketing manager has to think about the following questions before

implementing a market development strategy: is it profitable? Will it require

the introduction of new or modified products? Is the customer and channel

well enough researched and understood?

The marketing manager uses these four groups to give more focus to the

market segment decision: existing customers, competitor customers, non-

buying in current segments, new segments, to focus on market segments. For

serving synonymously to the existing customers they are coming up with

different menus as per change in taste and preference of their customer e.g.

happy price menu, beverages including milk shakes and cold coffees etc. Also,

by keeping in mind their rivals they are introducing products to compete them

e.g. to answer the KFC they came up with chicken Mcnuggets. They are

adopting pricing policies for non-buying customer and as well as new

segments.

PRODUCT DEVELOPMENT STRATEGY

In business and engineering, new product development (NPD) is the term used

to describe the complete process of bringing a new product or service to

market. There are two parallel paths involved in the NPD process: one

involves the idea generation, product design, and detail engineering; the other

involves market research and marketing analysis.

Companies typically see new product development as the first stage in

generating new products within the overall strategic process of product life

cycle management used to maintain or grow their market share.

McDonald’s is always within the fast-food industry, but frequently markets

new burgers. Frequently, when a firm creats new products, it can gain new

customers for these products. Hence, new product development can be a

crucial business development strategy for firms to stay competitive.

McDonald’s are always enhancing their existing product along with it; they

also try to introduce new and new products so that they can easily survive in

market.

DIVERSIFICATION

Diversification is a form of growth marketing strategy for a company. It seeks

to increase profitability through greater sales volume obtained from new

products and new markets. Diversification can occur either at the business unit

or at the corporate level. At the business unit level, it is most likely to expand

into a new segment of an industry in which the business is already in.

At the corporate level, it is generally and it’s also very interesting entering a

promising business outside of the scope of the existing business unit.

OPERATIONS COMPETITIVE STRATEGY

McDonald’s corporation completes in a challenging market segment by

providing need-satisfying products to customers. In this segment, ineffective

competitors often fail without proper strategies.

To sustain its viability, the McDonald’s corporation employs an effective

competitive strategy to make it stand out against competitors such as other fast

food restaurants. McDonald’s competes on several bases, including:

1. Cost

2. Speed

3. Nutrition

Their strongest priority is “making customers happy”. The company recently

made strong changes to its process by introducing the “made for you” system.

COMPETITOR’S ANALYSIS

McDonald’s has been a leading fast-foods outlet in Bangalore. But the outlet

understudy has other competitors eating away into its market share. In addition

to its traditional rivals- KFC, Dominos, Pizza Hut- the firm encounters new

challenges. Jumbo king competes using a back to basics approach of quickly

serving up burgers for time-pressed consumers. On the higher end, the KFC

has become potent competitor in the quick service field, taking away

customers from McDonald’s.

Perhaps in the new environment, fast, convenient service is no longer enough

to distinguish the firm. At this time, a new critical success factor may be

emerging: the need to create a rich, satisfying experience for consumers.

This brings us to service and experience based competition which McDonald’s

can use for competitive advantage.

It is for this overall “food, fun & folks” experience that customers pay a

premium over the other competitors.

MCDONALD’S COMPETITORS:

1. KFC

2. Pizza hut

3. Dominos pizza

COMPETETION BASES

SPEED

McDonald’s competes on several bases mainly to “make their customers

happy” by providing speedy, affordable, and nutritious foods.

Through extensive market research and survey, the organization discovered

that its customers desire speed as one of the restaurant’s top priorities.

Therefore, McDonald’s vision aims to “provide fast, friendly and accurate

service”. McDonald’s realizes that specific targets are necessary to measure

the performance of speed, and continuously takes relevant measurements to

compare actual performance with desired targets. To achieve efficient services

times, the company utilizes proven, standardized training processes for its

employees and new drive-thru layouts to reduce service times. Along with the

speed, McDonald’s also competes by offering prices at a low cost.

COST

To offer high quality products at low cost requires efficient processes

throughout the entire McDonald’s organization.

Once again, this goal is built into their vision statement when they claim that

“we will be the most efficient provider so that we can be the best value to the

most people”. McDonald’s incorporates several ways of approaching to

provide great value to its customers. One strategy that the company has

employed for many years is the value meal.

The value meal allows customers to buy a sandwich, French fries, and

beverage at a discount when purchased together. McDonald’s restaurants offer

from seven to twelve value meals, both for their lunch menu and breakfast

menu. More recently, McDonald’s began offering a value menu, consisting of

many individual items costing only rupees fifty each. The value menu has

proved to be very successful and has been since incorporated to the individual

stores.

NUTRITION

McDonald’s third main competitive base is nutrition. The organization

understands that health trend is an increasingly popular trend therefore; the

organization has recently focused extraordinary efforts to promote their new

nutritious choices. Although not specifically built into the organization’s

vision, McDonald’s has already introduced many options to achieve this goal.

McDonald’s has assembled their Global Advisory Council on balanced

lifestyles. This council consists of exercise & obesity specialists,

environmentalists, and other professionals to ensure that McDonald’s takes

appropriate steps in helping its customers achieve optimal health. The

company is also utilizing technology to their advantage. The current

McDonald’s website lets a user select any combination of menu items, place

the items in the online bag, and conduct a nutritional analysis on their

selections. The user can break down the analysis even further than a menu

item, down individual condiments, including ketchup; pickles etc. Not only

has the company introduced many steps to ensure nutrition, but it will strive to

continue the trend toward nutrition. McDonald’s plans to add additional

healthy menu options increase nutrition awareness among McDonald’s

employees; conceive new ways to deliver nutrition information to its

customers, and other actions.

RESEARCH METHODOLOGY

Research objective

The objective of this study is to answer the main question: what kinds of

business strategies are effecting McDonald’s in Bangalore market? The

research should consequently make the company to be able to reach a

conclusion on:

McDonald's business strategy in the Bangalore market

If the international fast food industries want to enter into the fast-food market,

what kind of the market strategy should be used?

Research methodology

In this thesis, the researcher has used qualitative research method and also

some theories to analyze what kinds of reasons led to the difference.

The theoretical part includes information gathered from literature and Internet

dealing with business strategy. The large amounts of necessary data and

information were collected from the Internet. This thesis will describe the

current development of McDonald's in India, and also use theories and

realities to explain the reasons for their performances in India. On one hand,

researcher will analyze the strategies of company from the perspective of

business strategy; on the other hand, the researcher will analyze reasons from

the perspective of competition strategy.

In addition, the research contains personal interviews. There were a lot of

participants' observations that the managers and customers in the Indian

market know the goal of our research. For our questionnaires, the researcher

only asked them at most 10 questions.

However, the study included primary and secondary data. The primary data

was collected with qualitative methods by interviewing the customers and

managers. The secondary data was from books, Internet, and course materials

with some relevant information.

Qualitative findings

The thesis used qualitative method to do the research. In addition, the

researcher has also interviewed the customers and managers to get their

relevant feedback.

As to the definition of qualitative research, this part of this thesis will employ

Creswell’s definition as follows:

Qualitative research is an inquiry process of understanding based on distinct

methodological traditions of inquiry that explore a social or human problem.

The researcher builds a complex, holistic picture, analyses words, reports

detailed views of informants, and conducts the study in a natural setting.

(Creswell, 1994)

Through qualitative analysis, researcher found that there are several reasons

that lead to the different performance of McDonald’s.

1. The difference of marketing positioning: you will see the different service

mode. McDonald’s used QSCV mode that includes quality, services,

cleanliness and value.

2. The difference of marketing strategies: McDonald’s provides a lively young

dining environment.

3. The difference of employee’s management: McDonald’s would like to use

diversification mode to manage their employees.

THESIS ANALYSIS METHODS

Interview findings

Interviews were started very successful. They will be found at Appendix 1 and

2.

Interview with managers

In order to understand the real performance of McDonald’s in Bangalore,

researcher made the two interviews with 10 managers of McDonald’s outlet in

Rajajinagar and Vijaynagar in Bangalore, India. Face-to-face meeting made

the interviews. Because of the limit time, researcher only asked them two

questions, which took totally 15 minutes. The manager interview

questionnaire can be found in Appendix 2.

• Manager of McDonald’s: In recent years, McDonald's began working with

some local meat production and processing companies. McDonald's also made

development of healthy fast food to customers. McDonald's is planning to

increase its investment in Bangalore in the future which mainly for new

restaurants and existing restaurant upgrades and extensions.

They were satisfied with their performances in Bangalore, and in the future all

of them want to occupy much more fast food market in Bangalore. They will

still using localization strategy for Indian market.

Interview with customers

According to the requirements of thesis, the researcher did the customers

questionnaire in Bangalore, India which contain 100 respondents.

Investigation of population can be divided into three categories which include

old people, young people and children. The research was set at city center of

Bangalore. Customer questionnaire will be put in Appendix 1.

• Old people: They prefer KFC to McDonald’s. Compared with McDonald’s,

KFC provides Indian breakfast and Indian day meal. To the old people, they

love Indian style fast food much more that typical East fast food.

• Young people: They like McDonald’s, because McDonald's provides

delicious coffee, and free network services. And in addition, McDonald's also

sell perennial student discount card.

• Children: They love KFC. Children think that McDonald’s toys are more

fun. The fast food of KFC is spicier for child.

Through interviews, the researchers found that most old people choose KFC

restaurant because of their good services and patient attitude.

DATA PRESENTATION AND INTERPRETATION

1. Overall response of Consumers and Employees.

S.NO OPINION NO. OF RESPONDENTS % OF RESPONDENTSCONSUMERS EMPLOYEES CONSUMERS EMPLOYEES

1. SATISFIED 40 60 40% 60%2. CONFUSED 30 35 30% 35%3. UNSATISFIED 30 05 30% 05%

TOTAL 100 100 100 100

Interpretation:

According to the response received the consumers it shows that a class of 60%

individuals are either confused or unsatisfied which means that large group is there

who are not happy with the services provided as compared to satisfied group.

Employers on the other hand are happy with the service offered by the McDonald’s.

But McDonald’s needs to revise overall marketing as well as servicing strategies so

as to boost sales and a class of happy consumers.

40

30 30

60

35

50

10

20

30

40

50

60

70

Satisfied Confused Unsatisfied

Consumers

Employees

2. Have you ever been to McDonald's?

S.NO OPINION NO. OF RESPONDENTS % OF RESPONSE1. Yes 95 95%2. No 05 05%

TOTAL 100 100%

Interpretation:

Most of the people have been to McDonald’s so the response comes out to

be 95%.

95

5

Yes No

0

10

20

30

40

50

60

70

80

90

100

Consumers

3. When you hear the word 'burger', does McDonald’s come in your

mind?

S.NO OPINION NO. OF RESPONDENTS % OF RESPONSE1. YES 80 80%

2. NO 05 05%3. SOMETIMES 15 15%

TOTAL 100 100%

Interpretation:

80% customers are well aware about the products which show an

effective product awareness of McDonald’s. On the other hand 15%

individuals are confused on the same part. Overall, the response is

satisfactory.

80

5

15

0

10

20

30

40

50

60

70

80

90

Yes No Sometimes

Consumers

4. Do you think McDonald's need to revise their menu?


1. Yes 30 60 30% 60%2. No 30 20 30% 20%3. Maybe 40 20 40% 20%

TOTAL 100 100 100 100

Interpretation:

Everybody strongly feels and would recommend revising their menu and

introducing some new and different Indian flavours and products.

30 30

40

60

20 20

0

10

20

30

40

50

60

70

Yes No Maybe

Consumer

Employees

4. What restricts from eating at McDonald’s?


1. Unavailability of seat

35 40 35% 40%

2. Congested 35 40 35% 40%3. High price 25 0 25% 00%4. Location 05 20 05% 20%

TOTAL 100 100 100 100

Interpretation:

Both the customers and employers feel that McDonalds need to redecorate

the available space and make it more spacious and comfortable.

35 35

25

5

40 40

0

20

0

5

10

15

20

25

30

35

40

45

Unavailability of seat

Conjested High price Location

Consumer

Employees

5. What is the distance of the nearest McDonald's from your place?

S.NO OPINION NO. OF RESPONDENTS % OF RESPONSE1. Near 70 70%2. Far 20 20%3. Very far 10 10%

TOTAL 100 100%

Interpretation:

The response was good and satisfactory that it has reached the masses and a

very few % of people are away from the services of McDonald’s.

70

20

10

Near Far Very far

0

10

20

30

40

50

60

70

80

Consumers

6. List the Marketing strategies used by McDonald’s.

S.NO OPINION NO. OF RESPONDENTS % OF RESPONSE1. Advertising 58 58%2. Posturing 23 23%3. Standees 10 10%4. Pamphlets 09 09%

TOTAL 100 100%

Interpretation:

Most of the marketing about the menu or any new introduction in the service

is done by advertising. Very few strategies like the standees and pamphlets’

are used.

58%23%

10%

9%

Advertising

Postering

Standies

Pamplets

7. Does McDonald's have enough promotions in Bangalore?

S.NO OPINION NO. OF RESPONDENTS % OF RESPONSE1. No 40 40%2. Yes 60 60%

TOTAL 100 100%

Interpretation:

A very proportionate answer was received by the customers.

40

60

No Yes

0

10

20

30

40

50

60

70

Consumers

8. Do you think that introduction of happy price menu has boosted the

sales up?

Interpretation:

Introduction of the happy price menu surely increased the sales. So, this

should be taken as a stimulus and more varied changes in the menu should

be incorporated.

5

0

1

00

1

2

3

4

5

6

Yes No Up to some extent

Cannot comment

Consumers

S.NO OPINION NO. OF RESPONDENTS

% OF RESPONSE

1. Yes 83 83%2. No 00 00%3. Up to some

extent17 17%

4. Cannot comment

00 00%

TOTAL 100 100%

10. Who do you think is the biggest competitor for McDonald's?

S.NO OPINION NO. OF RESPONDENTS

% OF RESPONSE

1. KFC 56 56%2. Pizza hut 18 18%3. Dominos 26 26%

TOTAL 100 100%

Interpretation:

56% customers feel that the biggest competitor for McDonald’s is KFC

because of their personal experience and the other factors like variety,

ambience, menu etc

56

18

26

0

10

20

30

40

50

60

KFC Pizzahut Dominos

Consumers

CUSTOMER PERCEPTION AND CUSTOMER EXPECTATION

Customer perception is a key factor affecting a product’s success. Many

potentially revolutionary products have failed simply because of their

inability to build a healthy perception about themselves in the customer’s

minds. McDonald’s being an internationally renowned brand brings with it

certain expectations for the customers.

Customers expect it to be an ambient, hygienic and a little sophisticated

brand that respects their values. The customer’s expect the brand to enhance

their self-image. Customer responses obtained at the Cunningham road

outlet confirmed the fact that they connect strongly with the brand.

However, fulfilling some of the customer expectations like a broader product

variety provide McDonald’s a great scope for improvement.

FULL FILLING CUSTOMERS EXPECTATION

Another greatest strength of McDonald’s is its product value. To fulfil

customers expectation when they walk in their franchise becomes their

strongest marketing element.

INNOVATION

McDonald’s keeps on bringing innovation with quality in its products. People

get used to of experiencing new taste and variety.

1. OVER EXPOSURE

People of India always want something new or that is different from others.

But in McDonald’s scenario, you can find its outlets everywhere in big cities

of India. This over exposure may become boring for certain class of people in

India. This over exposure induce customer to move onto something new

which is not as crowdie as McDonald’s. McDonald’s has lost the element of

uniqueness by opening so much franchise.

2. CUSTOMER TRENDS

Customer trends changes rapidly. When customer sees no further

advancement or innovation in company’s product they move on to some

other brand.

3. EXTERNAL ENVIRONMENT

Threats and opportunities prevail in any company’s external environment:

Technology:

Technology works as a benchmark for organization success.

Politics:

Politics plays vital role in effecting organization repute.

Law:

Every organization need to work under state regulation, no one can work

beyond the legal boundaries of business limited by state legal authority.

GOALS

McDonald’s needed to develop a worldwide enterprise system to reach all

“McFamily” audiences including employees, franchises, suppliers and

business partners. They also required improved publishing efficiencies

through consistent global content management processes. This included the

deployment of multiple sites with localized content using minimal resources.

A system with extensive brand management and graphics capabilities was

also needed to ensure consistent messaging and branding for all possible

audiences. The solution also needed the flexibility to adapt to McDonald’s

many future online plans.

MCDONALD’S EXPERIENCE

Marketing in a services industry is becoming an increasingly complex

challenge. The paradigms of service marketing demand a passionate

understanding of customer expectations and perceptions, and linking them

to product design & delivery as well as operational planning. This is where

McDonald’s has excelled due to its ability to successfully integrate the

customer’s perspective in its products and operations in a comprehensive

manner. The revamped menu bin India is an example of McDonald’s strategy

of integrating the customer’s perspective in its products. And, the

operational integration is clear from McDonald’s emphasis on its suppliers as

its customers as well as its treatment of its consumers as co-producers of

services. The ultimate aim of service marketing is not just to become a

service leader but to create a service brand. The service delivery process is

the key to achieving this aim of service marketing.

During the service delivery process the interaction between the firm and the

customer, called as “Moment of truth”, helps understand the opportunities

that a firm has to win or lose the customer. For example these “moment of

truth” are created for McDonald’s every time the guard at the McDonald’s

outlet meets the customer, every time an attendant takes down the order

from the customer waiting in the queue, every time the cashier interacts with

the customer, every time the attendant helps the customer guided the

customer towards the table, every time the attendant cleans the table etc.

Fig 20: “Moment of Truth” – The Service Encounter

Managing these “Moment of truth” is a great challenge in service marketing

especially due to customer’s involvement as a co-producer of services e.g.

McDonald’s self-service concept wherein the customer not only collects the

order but also cleans the table after consuming the food.

However, McDonald’s has been able to create a great experience for its

customers by understanding the nature of the entire service delivery process

and the various stages in the process that are exposed to the customers.

Transparency in the processes at its outlet has helped McDonald’s bring the

back office in its outlet at the front so that the customer is able to know the

operations and provide feedback on service design improvements.

Internal customer focus is equally important as external customer orientation

in order to win these “moments of truth”. McDonald’s focus on its people

and their service delivery methods therefore plays a very important role in

creating a successful service brand. The quality and the consistency of the

service delivered by McDonald’s have been greatly enhanced by the

combination of the factors mentioned above. This has helped McDonald’s

become service leader and a successful service brand. This is evident from

the fact that very few of its customers opt for take-home parcels or home

deliveries while most of them prefer to eat at the outlet and enjoy the

McDonald’s experience.

CONCLUSIONS AND RECOMMENDATIONS

CONCLUSION

Nowadays almost every person in the world for one reason or another knows

about McDonald’s. But as every leading company it has to deal with and

manage a big amount of external and internal issues in order to maintain itself

as the top food joint in the world. After outlining the key issues McDonald’s

currently faces, an analysis was conducted. Furthermore, different possible

alternatives of how the company could solve its burning issues were identified,

based on a structured and analytical framework – the McDonald’s marketing

strategies and their effectivity.

Following this approach McDonald’s needs to make some changes to its

overall business model, its product range as well as its marketing strategy. The

final recommendation given was to introduce some new strategies regarding

marketing of the whole McDonald’

Main findings

In Indian market, McDonald's made continuous development and achieved

great success. However, on the contrary to the performances in the global

market, it surpasses other food joints in terms of speed, quality, performance

and reputation.

1) Have a deeper localized product.

2) There are small gaps in target market positioning.

3) McDonald's pays a lot of attention to brand building localization.

4) McDonald's develops localized high-level management personnel in order

to make better company's strategic adjustment. McDonald's personnel

diversification is reflected in employing senior staff from the head office.

5) In supplier management, McDonald's independent spirit is integrated into

the culture of the Indian people way of doing business, reflecting the "love and

loyalty" in Indian culture.

Accompanied by different other moderate changes, the radical change of

introducing a new marketing strategy will help McDonald’s to further grow in

the India and overseas while effectively fighting competitors.

Because McDonald's has taken much of the hard work out of stock

management, Restaurant Managers are able to spend more time focusing on

delivering McDonald's high standards of Quality, Service and Cleanliness.

Customers are happy because they can be sure the item they want is on the

menu that day. Efficient marketing management is essential to any business. It

enables the business to operate in a responsible way.

The strategies also encourage efficient use of materials means that society's

resources are being used well with very few waste products. For example,

fewer materials end up as waste in landfill sites. This leads to a reduction in

costs. Due to lower costs, McDonald's can pass the benefits on to customers,

providing better service and lower prices. The reduction of waste provides a

win/win/win situation for McDonald's, its customers and wider society.

RECOMMENDATION FOR MCDONALD'S

Through a comparative study of McDonald's development in India focused on

business and competitive strategy, researcher would like to have some

suggestions for fast food restaurant if they desire to expand their business in

Bangalore market.

Business strategy:

1. Running more outlets is main way at this stage.

2. The franchise chain will be an inevitable road to business expansion.

Competitive strategy:

1. Providing featured service and health products.

2. Achieving standardization in each process and areas of service.

3. Establishing a brand image that penetrates into the essence of every detail.

4. Setting target market with clear personalized positioning.

5. Maintain consistency in the taste and quality of products.

6. Include more items in its product line like pizzas.

7. Include more promotional and advertising techniques to increase the sales.

BIBLIOGRAPHY

BOOKS

John F. Love ., (1988). McDonald’s : Behind the arches. UK: Transworld

Publishers Ltd.

Barnes, D., (2008). Operations Management: An International Perspective.

UK: Cengage Learning EMEA.

Cooper, R.G., Edgett, S.J. (2009). Product Innovation and Technology

Strategy. USA: Stage-Gate International.

Facella, P., Genn, A. (2008) Everything I know about business I learned at

McDonald's: the 7 leadership principles that drive break out success,

USA, McGraw-Hill

Harris, P. S., (2009) None of us is as good as all of us: how McDonald's

prospers by embracing inclusion and diversity, John Wiley and Sons

Heig, M., (2003) Brand Failures, Kogan Page Ltd, pp. 30

Plummer Joseph T., The concept and application of life style segmentation, Journal of marketing, January 1974,p.33

Jeanett Jean-Pierre and Hennessey David, Global Marketing Strategies, Biztantra and Houghton Miffin, 2005, page 164

JOURNAL AND PERIODICALS

“Advertising does help in building brand recall, but advertising alone does not sustain a brand", Brand Speak (2004)

The Wisdom of Local Sourcing, http://www.mcdonaldsindia.com/locsour.htm and Pooja Kothari, “Brand-Equity- Shaking it Up at McDonald’s”, The Economic Times, October 13, 2004.

WEBSITE

Sharan S Lakshmanan (13th Dec, 2004) ‘McDonald's In Bangalore Will Use

Licensee Route For The First Time In India’ Available[online]

http://hospitality.financialexpress.com/20041213/foodbeverage04.shtml

Chaturvedi, P., (no date) How McDonald's evolved its marketing in India

Available [online]

http://ipm.ge/article/How%20McDonald's%20evolved%20its%20marketing%

20in%20India_ENG.pdf (Accessed: April 2, 2012)

Indian Mirror (no date) Hinduism Available [online]

http://www.indianmirror.com/religions/reli1.html (Accessed: April 2, 2012)

Mathur, S., (2011) McDonald's Spices Up Products for Indian Vegetarians

Available [online] http://www.buddingmarkets.com/?p=39 (Accessed: April 3,

2012)

Nation's Restaurant News (2011) McDonald's: Lesson learned from India

Available [online] http://nrn.com/article/mcdonald’s-lessons-learned-india

(Accessed: April 3, 2012)

APPENDIX

ANNEXURE-1

For customers only.

QUESTIONNAIRE-1

Dear Respondent,

I would be grateful if you could spare some of your time to respond to the

following questions. Your response will be treated as confidential and would

only be used for completion of my research work in partial completion of my

M.Sc in Hospitality Administration.

1. Do you know that McDonald’s is the largest fast food chain in the

world?

Yes

No

2. When you hear the word ‘burger’ does, McDonald’s come in

your Mind?

Yes

No

Sometimes

3. Have you ever been to McDonald’s?

Yes

No

Don’t remember

4. With the introduction of new Happy Meal price menu has your number

of visits increased?

Yes

No

Doesn’t matter

5. How do you rate the service in McDonald’s?

Very good

Good

Average

Bad

6. Do you think McDonald’s need to revise their menu?

Yes

No

Maybe

7. What is the distance of the nearest McDonald’s from your place?

Near

Far

Very far

8. What restricts you from eating at Mc Donald’s?


Conjusted

High price

Location

9. How often do you visit McDonald’s?

Daily

Weekly

Monthly

10. Which fast food joint do you prefer to take your family to?

McDonald’s

KFC

Pizza hut

Dominos

Why? _______________________________________________

11. What do you think McDonald’s serves best?

____________________________________________________

12. What do you think McDonald’s needs to improve on?

Name & Age: ______________________________Email ID:

Occupation: __________________________Contact no: ____________

Signature: _________________________ Business card (if any)

ANNEXURE-2

For employees only

QUESTIONNAIRE-2

Dear Respondent,

I would be grateful if you could spare some of your time to respond to the

following questions. Your response will be treated as confidential and would

only be used for completion of my research work in partial completion of my

M.Sc in Hospitality Administration.

1. List marketing strategies used by McDonald’s?

1._________________________________

2._________________________________

3._________________________________

4._________________________________

2. Does McDonald have enough promotions in Bangalore?

No

Yes

3. Do you think that introduction of happy price menu has boosted the

sales up?

Yes

No

Up to some extent

Cannot comment

4. Do you think McDonald’s need to revise their menu?

Yes

No

Maybe

5. Who do you think is the biggest competitor for McDonald’s?

KFC

Pizza hut

Dominos

6. What restricts the customers from eating at Mc Donald’s?


Congested

High price

Location

7. Do McDonald’s provide enough training to employees?

Yes

No

Cannot comment

8. What are the different props used by McDonald’s in order to attract

customers and market the products?

________________

________________

________________

________________

9. What according to you may increase the sales at McDonald’s?

_______________________________________________________________

______________________________________________________________

Name & Age: _______________________Email ID: _______________

Occupation: ______________________Contact no: ________________

Signature: _________________________ Business card (if any)

effectivity of marketing strategies adoped by mcdonalds in banalore city

Marketing

mcdonalds graph

differentiation mcdonalds

abstract mcdonalds

mcdonalds marketing

nearest mcdonalds table

mcdonalds menu revision

mcdonalds bar diagram

mcdonalds moment of