marketing - mcdonald’s - brand analysis of a product specifics in relation to mcdonald’s

8/3/2019 Marketing - MCDONALDS - BRAND ANALYSIS OF A PRODUCT SPECIFICS IN RELATION TO MCDONALDS

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BRAND ANALYSIS OF A PRODUCT

SPECIFICS IN RELATION TO MCDONALDS

This Dissertation work was completed in partial fulfillmentof the requirements for the Degree

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EXECUTIVE SUMMARY

This study is intended to help McDonalds to decide upon the steps to be taken care for brand

analysis of the burger so that the growth of the company keeps on improving. This study is an

attempt to assess the factors responsible for branding in McDonalds Noida region. The area

where research is conducted is Sec -18, Sec - 2, Sec- 62 McDonalds restaurant.

Primary data have been used for analysis. However, secondary source have yielded

preliminary information. Research conducted was descriptive in nature. Descriptive research

helped the research to develop the concept to clearly establish priorities, to divulge adequate

information which helps the research in decision making and thus essential for making the

study a success. A structured questionnaire was used to obtain required information. The

research used the random sampling for the survey .Care was taken that the respondents were

as diversified as possible.

A sample size of 116 respondents was taken from various stores of Noida. The

research collected the data and analyzed them. The study contains the critically analyzed each

and every question in the questionnaire and then given the managerial implication. This

analyzed data was later converted into pie charts for convenience. This also made it easy to

draw a conclusion based research and provide a presentable format for the report. Later on

the information were compiled to form a presentable report. A better strategy to satisfy

customer is only the way to gain customer attention and to penetrate more in own catchment

area. Strategy must be in all area like Promotional offer/Scheme, Product Pricing, Employee

behavior, Billing Process, Product Assortment, Product quality in terms of rater.

It is found in the research that customers are price sensitive hence McDonalds should

give those offers which can facilitate more money saving as the customers are price sensitive.

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Last but not least Noida which is the most developed part of Uttar Pradesh, consumers have

disposable income and they are ready to invest for quality product.

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ACKNOWLEDGEMENT

I am grateful to the faculty of Retail Research, Mr. Rohit Malhotra for providing me an

opportunity to do this dissertation project that relates to studying Identifying the best

location for an auto accessories store (parameters and measures)

No, individual can get immense success without the proper guidance of his elders.

First of all I would like to express my sincere thanks to my project guide for their concepts,

guidance, support, inspiration and encouragement to me to work sincerely. Without their

support it was out of my reach, who gave me an opportunity to translate my theoretical class

room knowledge to meaning full input.

I would fail in my duty if I forget to thanks my parents and well wishers, who helped

me directly or indirectly in some way or in others to making this dissertation successful

Last but not the least I would like to convey my regards to Almighty for the blessing,

without which virtually this work would not have been possible.

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TABLE OF CONTENT

1. Introduction

1.1 Overview of the problem

1.2 Objectives

1.3 Benefits

1.4 Scope

2 Industry Background

2.1 Literature Reviews

2.2 Related studies

3 Design and Methods

3.1 Data Collection Methods

3.2 Limitations

4 Data Analysis and Presentation

4.1 Data Analysis

4.2 Data Presentation

5 Conclusions and Recommendations

5.1 Conclusions

5.2 Recommendations

References

Appendix

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CHAPTER 1

INTRODUCTION

McDonalds was founded by Raymond Albert Kroc in 1955.Mcdonalds is the

worlds leading food service retailer with more than 31,370 restaurants in 121

countries serving more than 53 million customers each day.

The USP of McDonalds is Quality, Service, Cleanliness and Value for

money which means they focus on providing their customers high quality

products, served quickly with a smile, in a clean and pleasant environment at an

affordable price.

In India, McDonalds is a joint venture company managed by two

Indians. While Amit Jatia, M.D. Hard castle restaurants Pvt Ltd own and

spearheads McDonalds in west and south India, McDonalds restaurants in

north and east India are owned and managed by Vikram Bakshis Connaught

Plaza Restaurants Pvt Ltd. It has over 12 years of leadership with 2.75 lakh

customers in India. McDonalds now has a network of over 160 restaurants

across the country, with its first restaurant launch way back in 1996.

Fast-food chain McDonald's India has plans to open 180-190 company-

owned restaurants by 2015 with an estimated investment of up to Rs 570 crore.

The company would fund the proposed investment through a mix of internal

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accruals and debts. However, the ratio would be decided later on, the company

expects sales to grow by 35 per cent this year. It had recorded around the same

level of growth in 2008, as well.

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OVERVIEW OF THE PROBLEM

BRAND

Brand is a name term, sign, symbol or design or a combination of them,

intended to identify the goods or services of one seller or group of seller and to

differentiate them from those of competitors.

Components of a Brand

Essentially a brand can convey up to six levels of meaning.

1. Attributes: A brand first brings to mind certain attributes. Mc Donalds

suggest high quality, nutritional value, value for money etc.

2. Benefits: A brand is more than a set of attributes since customers are not

buying attributes. They are buying benefits. Attributes need to be translated into

functional or emotional attributes. The attributes of nutritional value for Mc

Donalds translate into the functional benefit of a healthy meal.

3. Values: The brand also says something about the producers values. Mc

Donalds stands for best quality concern for customers.

4. Culture: The brand may represent a certain culture. Mc Donalds stand for

American culture, which is synonymous with organized, efficient and high

quality.

5. Personality:The brand can also project a certain culture. Mc Donalds brand

relates to kids and suggests a fun loving personality.

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6. User: The brand suggests the kind of consumer who uses the product. Mc

Donald is targeted towards growing children and young adults and essentially

towards teenagers who buy the product.

A brand is nothing more than a word in the mind. Brand becomes powerful

because of its branding effectiveness. Brand creates expectations between a

company and its customers. The power of brand lies in purchasing behavior of

the customer. Effective branding creates product as the brand like coke with

cola and Xerox with copies.

Now, the ineffectiveness of branding lies due to following problems.

The strength of brand lies in single category or with its similar

products. Brands that spread themselves across categories loose brand

focus, brand identity which results in decline of market share and

McDonalds is also doing the same they are losing their quality and

valuable service and more focusing on new launch of the products.

By not giving the expected product or service what the customers are

expecting is also one of the problems of ineffectiveness of the

branding. A word that nobody owns like Dominos owns thirty

minutes like that McDonalds should also own such commitment .

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There are many challenges which McDonalds faced while they

are entering in Indian market .Some of them are as follows

Regiocentricism: - Re-engineering the menu - McDonalds has

continually adapted to the customers tastes, value systems, lifestyle,

language and perception. Globally McDonalds was known for its

hamburgers, beef and pork burgers. Most Indians are barred by religion

not to consume beef or pork. To survive, the company had to be

responsive to the Indian sensitivities. So McDonalds came up with

chicken, lamb and fish burgers to suite the Indian palate.

The Vegetarian customerIndia has a huge population of vegetarians. To

cater to this customer segment, the company came up with a completely

new line of vegetarian items like McVeggie burger and McAlooTikki.

The separation of vegetarian and non-vegetarian sections is maintained

throughout the various stages.

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RESEARCH OBJECTIVES

1. To identify the demographics (age and sex) related to burger in the

McDonalds and outside the McDonalds.

2. To identify the different variables (burger attributes).

3. To identify the strongest attribute which helps in the strongest branding

of McDonalds.

4. Study the consumption patterns of the consumers.

5. To study the buying behaviour of the consumers keeping in mind the

various attributes of the products.

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BENEFITS OF STUDY

The results of the current study can be used by the organizations in many

ways which results in their growth and in their market share like different

brand analysis is suitable for different products, same brand to different

product results into fake information to the company. Through this

current study the organization can easily identify those areas where they

are lacking in the branding of the current product analysis. Moreover,

they can easily plan their branding for the upcoming new products as the

McDonalds is expanding them internationally.

The organization also gets benefitted about the Indian current

scenario market. As the Indian market is really tough to achieve, the

mentality of the customers here is different from the mentality of the

customers outside. So, the organization will get to know more about

customer mentality in Noida and how they can enhance the Noidas

McDonalds.

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This research will prove useful to eventually find out any new

possibilities of brand

extensions as well as line extensions that the company is looking for.

Understanding the Indian consumer mind set and positions the products

accordingly.

SCOPE OF THE STUDY

As this study contains quantitative research which includes statistical analysis

and descriptive type of research. The primary data is collected through survey

method. The sample population will be divided into groups and random samples

will be drawn from each group means stratifies sampling will be done. This

study will also include exploratory research means observation will also be

done.

As the report will be done with respect to the all McDonalds situated in

Noida (Sec-18, Sec-2, and Sec-62). As the study includes the sample size of 116

in noida city .The reason behind choosing survey in noida because of increasing

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disposable income of the people residing in noida and increase in the industrial

sector in noida.

Moreover, Atta market is one of the posh areas in noida where the

McDonalds outlet is located. Its a three storey building in which above portion

is in renovation and this study will definitely help them.

Following are the points which will be the scope of this project

Analysis of attributes of the product in regard to purchase influence

(using Likert scale).

Satisfactory measure of the existing product.

Perceptual mapping to find out the ideal positioning of the product.

Detailed analysis of the marketing mix.

Factor analysis for finding the most important attributes.

Chi square test for finding the goodness of fit.

Spearmans rank correlation and regression analysis for finding the

leverage.

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CHAPTER-2

INDUSTRY BACKGROUND AND PERSPECTIVES

Historyof McDonalds

ONE WORLD, ONE BURGER Mc Donalds

M: - Move forward (Focus on what is best for the system)

C: - Contributions (Recognize individual and team achievements)

D: - Develop (Integrity and trust)

O: - Open Communications (Confront and resolve problems)

N:-No Losers (Aim for Win Win situation)

A:-Actively listen (Act the way you talk)

L: - Leverage diversity (Debate for the benefit of the system and customer)

D: - Deliver (All communications)

S: - Support (Decisions 100%)

McDonalds Corporation (McDonalds) is the worlds largest foodservice

retailing chain. The company is known for its burgers and fries. A majority of

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McDonalds serve 50 million customers each day. The share of fast food in

retail industry is expected to reach 9.3% by 2011 from 7.4% in 2007. There are

31,370 fast-food restaurants in over 121 countries serving 53 million customers

every day. McDonald's India has plans to open 180-190 company-owned

restaurants by 2015 with an estimated investment of up to Rs 570 crore.

Indian Scenario

132 family restaurants in India employing about 5000 people (79 restaurants in

north and east India with 33 in Delhi itself) (53 restaurants in south and west

India). McDonald's India has already contributed directly & indirectly Rs. 95

crore (approx. 16 per cent of total turnover) as revenue to the Center and the

State towards Sales Tax, House tax and Income Tax in the last seven years.

(Mckinsey & Company (2009))

1996 the first McDonalds restaurant opened on Oct. 13, at Basant

Lok, Vasant Vihar, New Delhi. It was also the first restaurant in the world

not serving beef on its menu.

1997the first drive Thru restaurant at Noida.

1999the first Mall location restaurant at Ansal Plaza New Delhi.

2000the first highway restaurant at Mathura.

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2001the first thematic restaurant at Connaught Place.

2002the first restaurant in a food court at 3Cs, Lajpat Nagar and the

first restaurant at the Delhi Metro Station at Inter State Bus Terminus .

In October, 1996, McDonalds opens in India. McDonald's India is a 50 50 JV

partnership between MCDONALDS CORPORATION (U.S.A) and two Indian

businessman Amit Jatia and Vikram Bakshi.

Amit Jatia handles the operations in western region whereas Vikram Bakshi in

the northern region. The average McDonald's restaurant employs more than 100

people in 25 different positions from cashier to restaurant manager. In India

there are 160 restaurants. Quality, Service, Cleanliness and Value (QSC&V)

are the key factors of McDonalds in India. McDonalds does not offer any Beef

or Pork items in India, only freshest chicken, fish and vegetable products .They

change their product according to Indian flavor like McVeggie burger, McAloo

Tikki Burger, Veg Pizza, McPuff and Chicken McGrill. They have also created

Eggless sandwich sauces for their vegetarian customers. Even the soft serves

and McShakes are eggless, offering a larger variety to the vegetarian customers.

Vegetarian products are prepared separately, using dedicated equipment and

utensils. Employees in the vegetarian and non vegetarian sections of the

restaurants can be identified by the different colored aprons that they wear. This

separation of vegetarian and non vegetarian food products is maintained

throughout the various stages of procurement from the suppliers, cooking and

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serving. (AT Kearneys (2009). Global Retail Development Index

(GRDI).2/10/2009)

Suppliers and ingredients of simple Mc Donalds burger is shown by the burger

picture . McDonalds India caters to approximately 2.75 lakh customers, every

single day, across the country. And to serve the 2.75 lakh consumers,

McDonalds uses 82 million Buns, 66 million Patties, 2.1 million litres of Dairy

Products, 0.5 million kgs of Lettuce, 0.12 million kgs of Curries, and 22 million

litres of Sauces.(The Burger Story)

Figure 1(http://www.researchandmarkets.com/reports/607482/ )

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http://www.researchandmarkets.com/reports/607482/http://www.researchandmarkets.com/reports/607482/


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Marketing Strategy of McDonalds in India

There are basically three elements of McDonalds growth strategy in India.

Stage 1: Building the Brand: - The initial marketing strategy was focused on the

brand name in India. McDonalds wanted to bring an awareness of its presence,

of the arrival of McDonalds in India. Hence, even thought it had presence only

in 2 cities, Delhi and Mumbai, it still went in for nationwide Advertising.

Stage 2: Awareness of the Products: - McDonalds then felt that it needed to

highlight its product along with the experience. Hence, came the series of

advertisements highlighted on the products and new launches of McDonalds.

McDonalds wanted the customer to know that they have something for

everybody, be it children or adult, vegetarian or non- vegetarian.

Stage 3: Gunning for Market Share: - The latest advertisements of McDonalds

are a transition from the first strategy in the initial advertisements; McDonalds

was attempting to build a relationship with the customers. But now the

advertisements portray that the relationship has already been established. Its

got the mind share, and its now gunning for market share. The Ad campaigns

are trying to portray McDonalds as a constant companion, which makes people

feel special.

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Out of the four Ps of the marketing mix, product is the major thing on which

the McDonalds basically focusing. They offer things with choice to the

customers. Customers have huge number of ways of spending their money and

places to spend it. Therefore, the store emphasis on developing menu which

customers want.

External and internal issues which has great impact on McDonalds or QSR

retail industry

i. Economic changes like increase rise in standard of living.

ii. Legal changes like changes in laws about packaging.

iii. Technology changes like new food production techniques.

iv. Social changes like changes in patterns of eating out.( AT

Kearney's(2009) . Global Retail Development Index(GRDI).2/10/2009)

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REVIEW OF RELATED LITERATURE

Indian Retail Industry

India has been rather slow in joining the Organized Retail Revolution that was

rapidly transforming the economies in the other Asian Tigers. Though with a

population of a billion and a middle class population of over 400 millions

organized retailing (in the form of food retail chains) is still in its beginning in

the Country.

Organized retailing is spreading and making its presence felt in different

parts of the country. Today the food retail sector in India is about Rupees

Fifteen Lakh Crores (USD 250 billions) of which the organized food retail

segment is about 2.5 per cent and increasing at a pace of over 25% y-o-y.

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The organized retail has been registering growth rates of approximately

40 per cent over the last three years; it is expected to grow to about to Rs 90,000

crore in 2010. If projections were to be made considering the current trends in

food retailing in India, some years down the line, food and grocery stores will

become dominating trade partners for the food industry, which, in turn, will be

forced to offer special discounts and trade terms for them to get the shelf space

in such stores. (Gupta.A,Food retail and branding in India)

The organized players in India are the burger chains (McDonalds), pizza

chains (Dominos, Pizza Hut, Pizza Express and Smokin. Joe.s) . The industry,

by international standards is very small in size; no clear figures are available,

but are believed to be in the range of Rs 400 to Rs 600 crore. However, this

figure is likely to geometrically multiply in the next few years if the growth and

expansion plans of the organized players are taken seriously. (Kurlekar, A Are

you being served, Retail biz, June2003)

Key developments in food retailing

Consideration of FDI

Entry of corporate players

Retailers have been region specific

Entrance in the unbranded food space

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Food and grocery accounts for 63 per cent share in the Rs1, 330,000crore (US

$300million) Indian retail market. Only one per cent of this segment was

organized in 2007. Food, grocery and beverages constitute about 43 %of Indias

private final consumption expenditure and yet only 11 % of organized retail

market in 2006

Related Articles

After reading different articles, researcher found the method to measure brand

value. The researcher gave the most widely used measurement method i.e.

market based approach

Brand value is the financial value of the brand, i.e., the net present value of the

financial benefits derived from the brand, Brand value is a function of the

brands equity, of course, but also of the brands sales.

Method: - Market based approach to brand valuation

V = (Price x volume) - (Price x volume) - (Branding costs)

Brand generic, PL MKG,R&D

Overall, this approach is particularly appropriate for the regular tracking of

marketing ROI, for sensitivity analysis (e.g. using data in different markets to

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understand the drivers of brand value) and for individual brand management.

(Chandon,P.(2004))

Product Efficiency Analysis with DEA (Data Envelopment Analysis)

The Concept of Product Efficiency

From an economics perspective consumers do not search for products with

maximum quality

or minimum price but seek to optimize on the quality-price-ratio (Rust and

Oliver 1994).

When selecting products consumers consider both quality and non-quality

related dimensions

within an economically oriented decision concept of higher-order-abstraction

(Sinha and

DeSarbo 1998; Zeithaml 1988). As a first simple definition, product efficiency

can be

conceptualized as quality-price-ratio or a performance-price-ratio in the sense of

value for

money (Despotis et al. 2001).

Instead of viewing efficiency merely as a quality-price trade-off Sinha and

DeSarbo

(1998) emphasize that value is a more complex construct in which all get and

give

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components of a product should be embedded. Further studies that call for such

a multifaceted conceptualization of customer value is, e.g., Sinha and DeSarbo

(1998) and Huber, Herrmann, and Braunstein (2000). In line with these

requirements, product efficiency or customer value (CV) may be measured as a

ratio of some function fof the outputs and some function gof the inputs of a

product: (Gevens Maggie, Brengman Malaika and Jegers Rosette S. (2002))

Inputs x and respective weights v are indexed by i. They represent the

customers investments made in order to obtain and use a good. Outputsy and

respective weights u are

Indexed by rand represent outcomes of a product, i.e. performance attributes

from which

Utility is derived (e. g., reliability, comfort, safety). Frequently, these functions

take the form

of a fixed weighting scheme for the product characteristics. The largest German

association of car drivers (ADAC), for instance, regularly tests new cars and

ranks them according to their performance on several parameters in this way. A

multitude of single output-input ratios have to be aggregated into an overall

measure. The resulting product efficiency score can be seen as a measure of

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customer value of a product. It is the customers economic value derived from

the product and can be understood as the return on customers investments.

However, if the weights are fixed, this may not reflect the preferences of many

consumers. (Staat, M., Hammerschmidt, M., 2003)

The researcher described lot of techniques about brand analysis, one of the

technique is conjoint analysis .Conjoint analysis is a widely used technique that

measures the value of each product attribute (e.g., technical attribute, warranty,

price, the brand name itself, etc.) from peoples overall choices or evaluations.

The positive aspect of conjoint analysis is that consumers are not asked to

evaluate the importance of each attribute directly buy rather to make choices

between bundles of attributes (eg. products), which is something that they are

used to doing. Measuring band equity is not the primary use of conjoint

analysis, which is most often used to test and forecast the market share of new

products. Keller (2003)

Since its launch in 2001, Wrigleys Orbit has had a strong performance both in

the U.S. and

abroad with $235 million in U.S. sales in 2005 and a progressively stronger

market share (Maier, 2006). If the marketing remains strong and the Orbit brand

is able to continue to differentiate itself from its competitors, Orbit has a good

chance of continued success. The chewing gum market can be divided into

sugarless and non-sugarless gums. As a sugarless chewing gum, Orbits main27


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competitors are Cadbury Adamss Trident brand and Hersheys Ice Breakers

brand (Murray, 2007). These brands attempt to differentiate themselves by

offering interesting packaging, gum flavors, and product benefits, such as

whitening. For example, Wrigley added Orbit White as an extension of the

Orbit line of gums, and Cadbury Adams now produces Trident White. The

sugarless market is further divided into three forms of gums: sticks, tabs, and

pellets. Wrigleys Orbit brand is sold in a thin, envelope-style packet containing

14 tabs of gum. The Trident brand by Cadbury Adams is also offered as tabs,

but in a bulkier, rectangular package. Hersheys Ice Breakers brand is sold in

both stick and pellet versions. Each of these brands strives to offer innovations

in packaging and product benefits, so Wrigleys Orbit must consistently work to

provide consumers with exciting gum offerings that meet consumer needs.

(Kumcu Erdogan, Kumcu Ercan M. (1987))

In addition, Orbit must ensure that it is not cannibalized by other Wrigley

brands that act as

competitors in the same market. Wrigleys brands like Extra and Eclipse fall

into the same market category as Orbit, and actually present competition that

could be detrimental to the Orbit brand. Each of these brands will compete with

brands outside the Wrigley Company and less with each other if they maintain a

distinct brand image that makes them unique. As a sugar-free product, Orbit

appeals to the health-conscious, educated consumer, targeting the consumer

segment interested in specific product benefits. The sugar-free gum market is28


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unique in that it captures a diverse body of buyers, but especially females,

educated people, consumers with higher incomes, and younger consumers

(Low/No Sugar, 2004). Orbit has capitalized on the growing demand for sugar-

free gums in the U.S., and especially overseas, by attempting to educate consumers about the

health benefits of chewing sugarless gum. To bolster its effort, Wrigley opened a Science

Institute in 2006 to educate consumers on the benefits of chewing gum,

including increased concentration and weight loss (New Wrigley Science,

2007). Although much of the advertising is aimed at a youth audience,

professional peoplewho also have an interest in Orbits product benefits

show increased use of sugarless and whitening gums (U.S. Market, 2004).

Orbit ads focus heavily on the gums breath freshening properties, which have

been a driver of demand. One market report highlights consumers increased

focus on appearance and the professionalism of gum over mouthwash or

toothpaste offerings (U.S. Market, 2004). As the market for appearance-

enhancing products grows, Orbit has added a whitening gum to the Orbit line.

Orbit White is packaged and promoted in a slightly different way, but captures a

market segment similar to the original Orbit brand. Advertisements are focused

on the powerful whitening properties the chewing gum provides as a product

benefit. As judged by its advertising, Orbit specifically appeals to younger,

more hip consumers and segments their market demographic by age. Orbit

packaging is unique and ads use humor, which typically appeals to a younger

population. A recent television ad featured Hip Hop icon Snoop Dogg, who

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joined the ranks of those able to clean their dirty mouth with Orbit gum.

Featuring Snoop in the ad formed an instant connection with the young Hip Hop

consumer.( McKinsey on marketing(2009))

The recent introduction of the Mint Mojito flavor of Orbit brand gum is an

important extension of the Orbit line of gums. It is an example of demographic

segmentation by ethnicity, but Hispanics are not the only ones drawn to the

product. Latin-inspired products have been gaining popularity among

consumers in the U.S. and resonate with the non-Hispanic population as well

(Choi, 2007). Also, the television advertisement that introduced this brand

featured the star of a humorous, stunt-based MTV show called Jackass. This

exciting, trendy flavor, paired with the use of a popular culture icon in the debut

commercial for the gum, should bring the newly launched line extension

success. Orbits spokeswoman, Vanessa, is a pristinely dressed white female

from the U.K.; she is often a sharp contrast to the person she rescues with a

pack of Orbit gum in television ads. The dissimilarity between the dirty

mouth of the subject and the impeccable cleanliness of Vanessa is part of the

humor, but is also an important selling point. Wealthy, educated females

traditionally drive the sugarless gum market (Low/No Sugar, 2004).

Incorporating Vanessa as a spokesperson for the brand reinforces Orbits

universal appeal. Vanessa may be helpful in anchoring the brands more

traditional buyer segment of the upper-class, educated female, while allowing

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the brand to simultaneously appeal to a body of consumers with more diverse

incomes and ethnicities.

Another study on Baskins Robbins which is a big brand name in the field of ice

cream is taken . The researcher used personnel interview and communication

strategy for the analysis of their brand .

Baskin Robbins is one of the premium ice cream brands in the world. Its

differentiating strategy from other ice cream brands or their brand identity is

providing customers with 31 different varieties of flavour and its premium

quality. But how the customers perceive the brand is different and was

evaluated by an interview process. Around Thirty customers were interviewed

who had already experienced or come across the brand. Also two US customers

were included in these twenty customers. We went for an interview process

because we found that many had only an aided recollection of the brand when

asked about it.

The questions asked during the interview are

a) How often do you have ice cream in a month?

b) How do you experience having ice cream in Baskin Robbins store?

c) In your opinion what attribute is differentiating Baskin Robbins from other

ice cream brands?

d) Did you ever come across the brand name in some promotions or ads or any

other communication medium?

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e) What will come to your mind immediately if you hear the name Baskin

Robbins?

Some of the inferences and key opinions extracted from this process are:

Most of the customers want ice cream parlor or store to be a better hang out

place. They would like to have ice creams with different flavors during chat

with their colleagues or girl friends and spend some time in a high end

sophisticated premium parlors. They consider tasting a variety of ice creams as

a great experience.

Baskin Robbins proposition fits into this customer insight. But after the

analysis we found that, they provide premium offerings with different world

class flavors but not the experience. Customers who go there for repeat purchase

is due to the addiction to the flavour taste. But, in providing experience of

having ice cream in their parlor is really pathetic. Most of the customers dont

value the store as a premium store which Baskin Robbins claims.

Some of the attributes which customers think of Baskin Robbins are premium,

young, feminine (an influence from Pink colors they project), and soft, tender

and different flavors. Customers would like to take young colleagues or

girlfriends who are very peppy to this ice cream store. Even though this brand

lives for more than sixty years, they maintain youthfulness in the brand which is

amazing. The essence which customers expect from the brand is that different

premium offerings daily. Customers want to show or communicate to the

world that they are different and premium.32


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Communication happens when the customer meets the brand. It came out that

there is not frequent communication in the form of TV ads or print ads or any

other promotions. Its mostly by word of mouth and the purchasing point /store

where the customers come across this brand. Before coming to the store

customers make up their mind to try different taste daily and hang out in the

store which is premium. They communicate that they are different but store is

lacking a premium ambience. This goes in a negative way of communication to

the customer. Most of the store is located in high class residential area.

Customers think Baskin Robbins did not leverage in terms of store ambience as

most of the stores are so cramped and do not have a place to sit and have the ice

cream. This is a sort of negative communication, which should be immediately

addressed since other ice cream brands have started eyeing the modern retail

format. (Richard Ellis, C.B. (2009))

CHAPTER 3

RESEARCH DESIGN AND METHODS

Data Collection Methods

The research done was primary and secondary by nature. The Secondary

research was exploratory in nature and the various models involved in the Brand

analysis process were investigated, as also case studies of a few successful

brands. The Primary research was conclusive in nature and involved a pilot

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survey to check the appropriateness of the questionnaire and determine the

sample size of the final research. The Data collection was done through

personally administered structured questionnaires. The target respondents were

carefully selected on the basis of sampling decision. The results of the research

were very conclusive.

Secondary Research

1. It is exploratory in nature.

2. Sources of information are journals, magazines, periodicals and books.

3. Investigating the various models involved in the brand extension process.

4. Case studies of various successful brands.

Primary Research

1. It is conclusive in nature.

2. As essentially required, Pilot survey (Sample size of 30) will be done.

3. The Pilot survey is conducted to find out the Simple size for research and

to check the appropriateness of the questionnaire.

Sampling Procedure

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Calculation of the sample size with the help of pilot survey for burgers.

Samples size of the pilot survey: 30

Formula used;

E = pq

n

Where,

E is the standard error.

p is the number of users.

q is the number of non users.

n is the sample size of the pilot survey.

Substituting the values,

E= 20 10 = 2.582

3 0

N= {(p q) [(Z) / (E)]}

Here Z = 1.96 for 95% confidence level.

Substituting the values, we get

N= 115

Therefore, the sample size for the final survey is 116.

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LIMITATIONS

1. The research conducted was limited to Noida city only.

2. Due to time constrains more time could not be devoted to individual

respondent.

3. A busy schedule of retailers also makes the collection of information a

very difficult one.

4. Full district was not covered, as this is very tedious job to be done in few

days however almost all main areas of district were covered.

5. Non-co-operative behavior of respondent was a big problem in this

survey.

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CHAPTER 4

DATA ANALYSIS AND PRESENTATION

Data Analysis

1. Brand Recall

This question is asked to find out the top of the mind brand recall of

McDonalds. This will help the study in finding out the brand awareness of the

McDonalds products.

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2. Factor Analysis

The eight attributes of the McDonalds were found out after doing focus group

discussion. The consumers were asked to rate them on a scale of 1-5 to find out

the most important attributes. Factor Analysis is the appropriate statistical

technique for data reduction. This will give the study the most important

attributes amongst nine of them. The important attributes can then be grouped

together to form factors. These factors help the study in formulating the

advertising strategy for the product. The factors identified are such that the first

factor explains the maximum amount of variance between the statements; the

second factor explains some more variance; till a stage is reached when the

inclusion of any other factor does not result in an increase in variance explained

or the increase in negligible. Under every factor column against each of the

statements is a numerical value termed as factor loading. Statements that have a

high factor loading compared to others are then isolated. There may be four or

five such statements that are essentially pointing towards a single factor.

3. Multi dimensional scaling

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Multidimensional scaling can be characterized as a set of procedures for

portraying perceptual or affective dimensions of substantive interest. It provides

useful methodology for portraying subjective judgments of diverse kinds. MDS

is used when all the variables in a study are to be analyzed and all are

independent. The underlying assumption in MDS is that people perceive a set of

objects as being more or less similar to one another on a number of dimensions

instead of only one. In the case of fast foods, MDS has been done by taking into

consideration the two competitors of MCD i.e. dominos and KFC. The data is

available in the form of attributes of the burger that have been rated on a scale

of 1-5 (on interval scale). The data for the ideal burger has been taken from the

response of consumers for the previous question for which factor analysis has

been done. Since the data is interval scaled it is called metric and metric scaling

has been done. (As given in research for marketing decisions by Green. Tull and

Albaum). MDS has been done by taking the mean figures of all the attributes.

These mean figures are the input data for the MDS operation. We get a

Euclidean distance model (perceptual map) which depicts the positioning of all

the brands of fast food vis--vis the ideal burger keeping the X-axis and Y-axis

as the dimensions on which these attributes are scaled. A random pairing of

brands has been done to find out the two dimensions. The mean of the attributes

of these pairs is calculated to find out the two dimensions.

4. Spearmans Rank Correlation

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The aim of this question is to find the leverage of mother brand on the brand

extension and vice a versa spearmans rank correlation is a measure of

correlation that exists between the two sets of ranks, a measure of degree of

association between the variables. The limitation of this technique is that it

cannot differentiate between the dependant and independent variable, which is

very essential for this research. (As shown in the formula below).

Where;-

r2 = Coefficient of rank correlation

n = number of paired observation

d= difference between the ranks for each pair of observations.

If we use Spearmans rank correlation, the value ford2 is same irrespective of

interchanging the variable (one being dependent and the other being

independent). Hence, this techniques is not applicable. In lieu of Spearmans

rank correlation, linear regression analysis has been done to find out the degree

of association between the two variables .

5. Regression Analysis

Analysis of dependence has been done through this technique. Regression is the

determination of statistical relationship between two or more variables. In40


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simple regression, I have only two variables; one variable (defined as

independent) is the cause of the behavior of another one (defined as dependant

variable). Regression can only interpret what exists physically i.e., this must be

a physical way in which independent variable X can affect dependent variable

Y. Here this technique is used to find the best fit that a straight line can give for

best results. The correction coefficients and the constants are compared for both

the equations and appropriate analysis is done.

6. Chi Square Test

The Chi square test is used to judge the homogeneity or the significance of

population variance i.e., we can use the test to judge if a random sample has

been drawn from a normal population with a mean and with a specified

variance. This test has been done for all the questions with nominal type data.

The calculated results are used to find whether the sample taken is

representative of the population. Since the same sample has been used for the

chi square test for all the questions, it is assumed that the results will be similar

for all. Therefore, in the analysis, this test has been done only on a few

questions that will give the desired inference.

7. Semantic Scale Differentiation

This technique will be used to determine the brand personality of burgers. Using

this method, a bipolar graph will be obtained which will clearly depicted the

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personality of the brand. All the questions with nominal data will be analyzed

using the frequency tables. These tables are then used to calculate the

percentages that are depicted through appropriate graphs and charts.

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DATA PRESENTATION

1. What comes to your mind when you think of Mc Donalds?

-------------------------------------------------------------------------------------------

Interpretation:-This question proves the brand recall value of the McDonalds

.Consumers basically take McDonalds as an eating hub.

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2. What do you look for when you purchase burger? Please rate them on a scale

of 1 to 5. (1 being the least important and 5 being the Most Important).

ATTRIBUTES Veg Burger

Taste 18

Crispiness 13

Size 17

Shape 11

Color 12

Flavor 19

Well Known name 23

Any other (please specify) 3

Interpretation :- In this question consumers prefer burger because of their brand

value . This means Mcdonalds has good brand image.

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3. Rank the various buying factors (tick any one)

(a) Price Brand name (c) Free gifts

(b) Availability Discounts (d) Satisfies hunger

Interpretation :- The main reason of buying burger is its minimal price

4. Is the product line in McDonalds adequate?

(a) Yes

(b)No

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(c) Average

Interpretation :- Consumers want more product range in the Mcdonalds menu .

5. Do you want to new product range likePlease rate them on a scale of 1 to 5?

(1 being the least important and 5 being the Most Important).

Salads 33

Hot Dog 19

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Pastas 17

Pizzas 15

Sandwich 32

Interpretation :- Out of the new product range in the Mcdonalds menu salads

demand is more than any other product because now consumers wants to be

healthy in this hectic schedule, they are becoming health conscious .

6. How do you like to have burger (tick any one)?

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(a) Hot coffee (c) Cold drink

(b) Cold coffee (d) Any other specific

Interpretation :- Consumers prefer burger with cold drink as it suits to their taste

.

7. With whom do you like to have burger- family members, friends, clients,

office colleagues & why?

---------------------------------------------------------------------------------

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Interpretation :- Consumers wants to go Mcdonalds along with their family

members because this fulfill both purpose hunger and entertainment

8. Would you like having burger with egg flavor?

(a) Yes (b) No

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Interpretation :- Most consumers wants change in burger just to have a unique

taste .

9. Have you seen the burger advertisement?

(a) Yes (b) No

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Interpretation:-Out of the advertisement the consumers remembers the M shape

of the McDonalds, which again collects the brand name of the burger.

11. Where do you buy burger (tick any one)?

(a) Malls (c) Highways

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(b)Stand alone location (d) Any other place

Interpretation:- Consumers generally buy burger from malls only because after

having heavy shopping they need some place to chat , to discuss things with

each other .

12. Will you buy burger if the price increases by Rs.5?

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(a) Yes (b) No

Interpretation :- Consumers have objections regarding the price of the burger

but at the same time there are people who dont bother about the price , they

want quality .

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13. Would you like to add more?

(a) Combo meals (c) Free points with every purchase

(b) Discount coupons (d) Any other scheme you like

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Interpretation :- Consumers want more products in minimum price thats why

they generally go for the combo meals .

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14. I like burgers because (tick any one)

(a) It satisfies my hunger (c) It gives me a feeling of being funky

(b) It adds to my Social status Happy (d) Any other (please specify)

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Interpretation :- Consumers like burger because the brand Mcdonalds has made

a symbol of social status , so consumers feel happy and make themselves

attached to the social society .

Gender Male Female

Age group 15-20 21-25 26-30 Up to 31

Martial

status

Married Unmarried

Education 10+2 Graduate Post graduate Professional

degree

Family

backgroun

Urban Rural

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d

Occupation Business Govt. job Private job Student

No. of

family

members

0-1 2-4 5-6 Up to 7

Annually

income

Below

10000

10000-15000 15000-20000 Above

20000

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Interpretation :- This shows that male gender is coming more in the restaurant

than the female

Interpretation :-In Mcdonalds , generally unmarried women are coming more

often than male

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Interpretation: - In Mcdonalds late teen group is coming more often than any

other age group

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Interpretation :- Generally professional executives like MBA holders are

coming in the restaurant.

Interpretation :- Generally bussiness class is coming in the Mcdonalds because

of the highly disposable income .

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Interpretation :- Generally people having annual income between 2lakh to 3lakh

prefer Mcdonalds

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CHAPTER 5

CONCLUSION AND RECOMMENDATION

Conclusions

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The compilation of this dissertation bears a judgmental mark on the brand

building process of

McDonalds burger. The perception of the consumers has no doubt added a new

dimension to the existing advertising strategy in use by the company.

The various models explained here in have helped in assimilating the core

branding elements

of the proposed brand study. There has been considerable success in inculcating

a new way of eating in between the meals in the Indian consumer. The year

changing from the traditional idils, pagodas and paranthas to the more

nutritious and convenient way of eating between the meals.

As the research has shown a great increase in male corporate executive

gender in the McDonalds because of its location between the corporate office.

Late teens are becoming the new clientele of the restaurant especially the male

corporate executives .Mc Donalds also shows social class symbol in the

society and a friendly and contemporary human personality trait. Now the brand

personality of the burger is cheerful one and it is really having its core

competence a reliable one.

Through this research the McDonalds can change their advertising

strategy to the particular restaurant and certainly get help in which segmentation

they need to focus. According to this research the company should not forget

about the base (burger) while expanding their new products in the menu cards.

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They must keep on changing the various attributes in the base product so that

they will not lose their customers.

RECOMMENDATIONS

1. Parking facilities should be in a better way.

2. There should be something extra to entertain children.

3. They should give discounts to their regular customers.

4. They should be the part of live campaigning.

5. Celebrity advertising should be done because in India it impacts a lot.

6. Proper feedback system should be developed by ensuring regular visits &

check randomly at the various outlets.

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1. AT Kearneys (2009) . Global Retail Development

Index(GRDI).2/10/2009,http://www.atkearney.com/images/global/pdf/2

009_Global_Retail_Development_Index.pdf

2. Chandon , P 2004, Note on audit: How to measure brand awareness

,brand image, brand equity and brand value

3. Gevens Maggie, Brengman Malaika and Jegers Rosette S. (2002) Food

retailing now and the future: A Consumer perspective, Journal of retailing

and customer services, Vol. 10(2002), pp.41-51

4. Gupta, K, A. Food Retailing and branding in India

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http://www.atkearney.com/images/global/pdf/2009_Global_Retail_Development_Index.pdfhttp://www.atkearney.com/images/global/pdf/2009_Global_Retail_Development_Index.pdfhttp://www.atkearney.com/images/global/pdf/2009_Global_Retail_Development_Index.pdfhttp://www.atkearney.com/images/global/pdf/2009_Global_Retail_Development_Index.pdf


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5. Hughes, G.D. (1969), some confounding effects of forced choice scales,

Journal of Marketing Research, 6, 223-6.

6. Kurlekar,A Are you being served, Retail biz,June2003

7. Kumcu Erdogan, Kumcu Ercan M. (1987) Determinants of food retailing

in Developing Economies: A case of Turkey, Journal of Macro

marketing, vol. 7(1987), pp.26-40

8. Mckinsey & company ,(2009)Beating the recession : Buying into new

European

consumerstrategies26,oct,2009),http://www.mckinsey.com/practices/ma

rketing/ourknowledge/pdf/beatingthe recession :buying into new

European consumer.pdf

9. McKinsey on marketing(2009) Making brand portfolios work(pp.1-

2).city:publisher,The McKinsely Quarterly,25,oct,2009)

10.McKinsey (2009). The rise of Indian Consumer Market.

2/10/2009,http://www.mckinsey.com/locations/india/mckinseyonindia/pd

f/India_Consumer_Market.pdf

11.Mckinsey & Company(2009), The power of brand delivery, (24, Oct,

2009),

http://www.mckinsey.com/practices/retail/knowledge/articles/PowerofBr

andDelivery.pdf

12.Richard Ellis,C.B.(2009)Market view India retail,(27,oct,2009),

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13.Rust, Roland T. and R. L. Oliver (1994), Service Quality: Insights and

Managerial Implications from the Frontier, in Service Quality: New

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Thousand Oaks: Sage Publications, 1-20.

14.Sinha, Indrajit and Wayne S. DeSarbo (1998), An Integrated Approach toward

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Approach Based on Customer Value, Marketing Theory and Applications, 13

(1) 205

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APPENDIX

QUESTIONNAIRE

This Questionnaire is for Academic purposes only and all the information

revealed will be kept confidential.

1. What comes to your mind when you think of Mc Donalds?

-------------------------------------------------------------------------------------------

2. What do you look for when you purchase burger? Please rate them on a scale

of 1 to 5. (1 being the least important and 5 being the Most Important).

ATTRIBUTES Veg Burger

Taste

Crispiness

Size

Shape

Color

Flavor

Well Known name

Any other (please specify)

3. Rank the various buying factors (tick any one)

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(a) Price Brand name (c) Free gifts

(b) Availability Discounts (d) Satisfies hunger

4. Is the product line in McDonalds adequate?

(d)Yes

(e) No

(f) Average

5. Do you want to new product range likePlease rate them on a scale of 1 to 5?

(1 being the least important and 5 being the Most Important).

Salads

Hot Dog

Pastas

PizzasSandwich

6. How do you like to have burger (tick any one)?

(a) Hot coffee (c) Cold drink

(b) Cold coffee (d) Any other specific

7. With whom do you like to have burger- family members, friends, clients,

office colleagues & why?

---------------------------------------------------------------------------------

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8. Would you like having burger with egg flavor?

(a) Yes (b) No

9. Have you seen the burger advertisement?

(a) Yes (b) No

10. If yes, what do you remember about the ad? Please specify.

--------------------------------------------------------------------------------------

11. Where do you buy burger (tick any one)?

(a) Malls (c) Highways

(b)Stand alone location (d) Any other place

12. Will you buy burger if the price increases by Rs.5?

(a) Yes (b) No

13. Would you like to add more?

(a) Combo meals (c) Free points with every purchase

(b) Discount coupons (d) Any other scheme you like

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14. I like burgers because (tick any one)

(a) It satisfies my hunger (c) It gives me a feeling of being funky

(b) It adds to my Social status Happy (d) Any other (please specify)

PLEASE FILL IN THE FOLLOWING DETAILS

Respondent name : -________________________________________

Place : -

_______________________________________

Date : - ___________________________________________

Gender Male Female

Age group 15-20 21-25 26-30 Up to 31Martial

status

Married Unmarried

Education 10+2 Graduate Post graduate Professional

degree

Family Urban Rural

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background

Occupation Business Govt. job Private job Student

No. of

family

members

0-1

2-4

5-6

Up to 7

Annually

income

Below

100000

100000-

200000

200000-

300000

Above

300000

Thank You for Your Cooperation!

marketing - mcdonald’s - brand analysis of a product specifics in relation to mcdonald’s

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