A Study Of Consumer Satisfaction Retention In Macdonald (pizza Hut) 42i5b

A PROJECT REPORT On “A STUDY OF CONSUMER SATISFACTION RETENTION IN MCDONALD” Submitted towards Partial Fulfillment of BACHELOR OF BUSINESS ISTRATION (D TO C.C.S. UNIVERSITY, MEERUT) (2012-2015) SUBMITTED BY: SHIVANI SHARMA ROLL NO:-9866613 BBA VI SEM UNDER THE GUIDANCE OF

External Supervisor:

Internal supervisor:

Mr. ANOOP MISHRA MANAGER

Mr. SUDHEER KUMAR Faculty, Management DIMS, Meerut

DEWAN INSTITUTE OF MANAGEMENT STUDIES, MEERUT

1

STUDENT DECLARATION I Shivani Sharma, students of BBA final Year. from DIMS, Meerut hereby declares that the research report entitled “A Study of Consumer Satisfaction Retention in MacDonald”. is completed and submitted under the valuable guidance of “Mr. Sudheer Kumar, Faculty of Management , DIMS, Meerut” faculty of management, it my original work.

This imperial in this research is based on the data collected by us. This research report has not been submitted to CCS, University Meerut or any other university for the purpose of compliance of any requirement of any examination or degree.

Date…………….

SHIVANI SHARMA ROLL NO:-9866613 BBA VI SEM

2

PREFACE

This report reviews the “A Study of

Consumer Satisfaction Retention in

MacDonald ”. I gave a brief history of the company ‘history, Achievements, and growths of the company. It puts a light on the whole Organizations activities Advertising, sales promotion, etc. I also reviewed the SWOT

Analysis,

comaparrsion with other similar brands. in the end I gave the future plans, and concluded with suggestions ,recommendation ,limitations of McDonald

3

ACKNOWLEDGEMENT Apart from the efforts of me, the success of any project

depends largely on

the encouragement and guidelines of many others. I take this opportunity to express my gratitude to the people who have been instrumental in the successful completion of this project. I would like to show my greatest appreciation to my guide Mr. Sudheer Kumar, Faculty of Management , DIMS, Meerut. I can’t say thank you enough for his tremendous and help. Without his encouragement and guidance this project would not have materialized.

The guidance and received from all the who contributed and who are contributing to this project, was vital for the success of the project. I am grateful for their constant and help.

SHIVANI SHARMA

4

TABLE OF CONTENT TITLE PAGE

1

STUDENTDECLARATION

2

PREFACE

3

ACKNOWLEDGEMENT EXECUTIVE SUMMARY INTRODUCTION OBJECTIVE OF STUDY

4 6-8 9 10

           

Product Needs wants and demands MCDonald Lunch New Menu & Ad Campiness Marketing mix of MCDonald MCDonald franchising network in india Names awarded to MCDonald Slogans Future plans Corporate social responsibilities of MCDonald Customer satisfaction in 7 steps Comparison between dominos and MCDonald MCDonald Sales

LITRATURE REVIEW RESEARCH METHODOLOGY SWOT DATA ANALYSIS RECOMMENDATIONS AND SUGGESTION CONCLUSION LIMITATION BIBLIOGAPHY QUESTIONNAIRE

11-20 21-38 39 40-46 47-52 53-63 64-70 71 72 73-75 76-77 78 79 80-81 82-83 84-96 97-98 99 100 101 102-103

EXECUTIVE SUMMARY The research report includes our research about MCDonald to analyze the most important element for its profitability. In this research we conducted a customer analysis in which we asked the customers their preferences for going to any fast food restaurant. We also 5

asked them about their experiences in MCDonald, every time they visit there. This helped us making a broad perception about the future sales and profitability of MCDonald and what MCDonald needs to do to maintain its image and retain the customers. Pizza emerged sometime in the middle Ages. It was used to describe both the sweet and saltypies that were becoming popular among Italian aristocracy. Pizza is basically a mealprepared in a plate made of bread. There are four main components of a basic pizza pie.They are crust, sauce, cheese and toppings.

Two brothers, mom and $600 turned into the recipe for the world's largest pizza companyin 1958, when a family friend with the idea of opening a pizza parlor approached the twocollege-age brothers in Kansas. The result of their efforts was the first MCDonald and the foundation for what would become the largest and most successful pizza restaurant in theworld.

There are different objectives of every organization. In order to achieve these objectives different targets are set. Targets down the hierarchy depending on the nature of the business. Therefore, in order to achieve the objectives, management decides ondifferent strategies. These strategies are divided into many sub-parts and are useful for the running of the business. The employees and the management know what they have to achievethrough the targets which have been set to them and the strategies they have adoptedhelp them know the way they will achieve the objectives. Similarly, MCDonald has differenttargets set to them and they have adopted different strategies to

6

successfully achieve thetargets set. These targets are set by the RSC i.e. the restaurant centre in india. These targets are ed on to the RGM (restaurant general manager) and he es them to the workforce. These targets fall within the organizational structure in which there are many people who have different targets to achieve. In order to successfully achieve the targets they need to co-operate and work in a friendly environment. During the past four decades MCDonald has built a reputation for excellence that has earned the respect of consumers and industry experts alike. Building a leading pizza company has required relentless innovation, commitment to quality and dedication to customer service and value. The qualities of entrepreneurship, growth and leadership have characterized MCDonald’s business through more than four decades of success. Through the strength of its heritage, its culture and its people and franchisees, MCDonald looks forward to more success in future.

7

MC DONALD'S McDonald's Corporation (NYSE: MCD) is the world's largest chain of hamburger fast food restaurants, serving more than 58 million customers daily In addition to its signature restaurant chain, McDonald’s Corporation held a minority interest in Pret A Manger until 2008, was a major investor in the Chipotle Mexican Grill until 2006 and owned the restaurant chain Boston Market until 2007 A McDonald's restaurant is operated by a franchisee, an , or the corporation itself. The corporation's revenues come from the rent, royalties and fees paid by the franchisees, as well as sales in company-operated restaurants. McDonald's revenues grew 27% over the three years ending in 2007 to $22.8 billion, and 9% growth in operating income to $3.9 billion McDonald's primarily sells hamburgers, cheeseburgers, chicken products, French fries, breakfast items, soft drinks, shakes, and desserts. In response to obesity trends in Western nations and in the face of criticism over the healthiness of its products, the company has modified its menu to include alternatives considered healthier such as salads, wraps and fruit.

CORPORATE OVERVIEW Facts and figures

McDonald's boasts its service to "99 billion customers". McDonald's restaurants are found in 119 countries and territories around the world and serve 58 million customers each day. McDonald's operates over 31,000 restaurants worldwide, employing more than 1.5 million people.] The company also operates other restaurant brands, such as Piles Café.

8

Focusing on its core brand, McDonald's began divesting itself of other chains it had acquired during the 1990s. The company owned a majority stake in Chipotle Mexican Grill until October 2006, when McDonald's fully divested from Chipotle through a stock exchange. Until December 2003, it also owned Donatos Pizza. On August 27, 2007, McDonald's sold Boston Market to Sun Capital Partners.

Type

of



Most standalone McDonald's restaurants offer both counter service and drive-through service, with indoor and sometimes

restaurants

outdoor seating. 

Drive-Thru, Auto-Mac, Pay and Drive, or "McDrive" as it is known in many countries, often has separate stations for placing, paying for, and picking up orders, though the latter two steps are frequently combined.



In some countries, "McDrive" locations near highways offer no counter service or seating. In contrast, locations in high-density city neighborhoods often omit drive-through service. There are also a few locations, located mostly in downtown districts that offer Walk-Thru service in place of Drive-Thru.



Specially themed restaurants also exist, such as the "Solid Gold McDonald's," a 1950s rock-and-roll–themed restaurant In Victoria, British Columbia, there is also a McDonald's with a 24carat (100%) gold chandelier and similar light fixtures.



To accommodate the current trend for high quality coffee and the popularity of coffee shops in general, McDonald's introduced McCafé, a café-style accompaniment to McDonald's restaurants in the style of Starbucks.

9

Products



A McDonald's Big Mac combo meal served with French fries and Coca-Cola.



McDonald's predominantly sells hamburgers, various types of chicken sandwiches and products, French fries, soft drinks, breakfast items, and desserts.



McDonald's offers salads and vegetarian items, wraps and other localized fare.



Portugal is the only country with McDonald's restaurants serving soup.



This local deviation from the standard menu is a characteristic for which the chain is particularly known, and one which is employed either to abide by regional food taboos (such as the religious prohibition of beef consumption in India) or to make available foods with which the regional

HEADQUARTERS The McDonald's headquarters complex, McDonald's Plaza, is located in Oak Brook, Illinois. It sits on the site of the former headquarters and stabling area of Paul Butler, the founder of Oak Brook McDonald's moved into the Oak Brook facility from an office within the Chicago Loop in 1971.

ADVERTISING 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, and

10

makes coolers of orange drink with their logo available for local events of all kinds. Nonetheless, television has always played a central role in the company's advertising strategy. To date, McDonald's has used 23 different slogans in United States advertisingas well as a few other slogans for select countries and regions. At times, it has run into trouble with its campaigns.

CHILDREN'S ADVERTISING Sports awards and honors Global operations

Countries with McDonald's stores McDonald's has become emblematic of globalization, sometimes referred to as the "McDonaldization" of society. The Economist newspaper uses the "Big Mac Index": the comparison of a Big Mac's cost in various world currencies can be used to informally judge these currencies' purchasing power parity. Scandinavian countries lead the Big Mac Index with four of the five most expensive Big Mac's. Norway has the most expensive Big Mac in the world as of July 2008, whiles the country with the least expensive Big Mac is Malaysia.

11

12

EARLY HISTORY

The oldest operating McDonald's on Lakewood and Florence in Downey, California, was the chain's third restaurant and the second to be built with the Golden Arches. In 1937, Patrick J. McDonald opened "The Airdrome", an octagonal food stand, on Huntington Drive (Route 66) near the Monrovia Airport in Monrovia, California. Hamburgers were ten cents, and all-you-can-drink orange juice was five cents. In 1940, his two sons,Maurice and Richard ("Mac" and " Dick"), moved the entire building 40 miles (64 km) east, to West 14th and 1398 North E Streets in San Bernardino, California. The restaurant was renamed "McDonald's Bar-B-Q" and served twenty five barbecued items on their menu.

In October 1948, after the McDonald brothers realized that most of their profits came from selling hamburgers, they closed down their successful carhop drive-in to establish a streamlined system with a simple menu of just hamburgers, cheeseburgers, french fries, shakes, soft drinks, and apple pie. The carhops were eliminated to make McDonald's aself-serve operation. Mac and Dick McDonald had taken great care in setting up their kitchen like an assembly line to ensure maximum efficiency. The restaurant's name was again changed, this time to simply "McDonald's," and reopened its doors on December 12, 1948.

13

In 1953, the McDonald brothers began to franchise their successful restaurant, starting in Phoenix, Arizona and Downey, California; the latter is today the oldest surviving McDonald's restaurant. The McDonald brothers created Speedee to symbolize the quick and efficient service system that they had devised. They later withdrew Speedee because the Alka-Seltzer mascot was named Speedy, and McDonald's did not want to be d with Alka-Seltzer. Downey's Speedee is one of only a few remaining. His little legs, animated in neon, still run as fast as they can to serve the restaurant's next customer. The Speedee sign was erected in 1959 at Downey with its single giant arch and is a one-of-a-kind. It also hearkens back to the days of the postwar era when the roadside was filled with larger than life ments of all shapes and colors vying for motorists' attention: "Hey pull in over here, This is Your Kind of Place!" Designed by the architect Stanley Clarke Meston and his assistant Charles Fish, Downey's restaurant is the oldest operating McDonald's in the world. Since it was franchised not by the McDonald's Corporation, but by the McDonald brothers themselves to Roger Williams and Burdette Landon, the Speedee McDonald's was not required to comply with the McDonald's Corporation's remodeling and updating requests over the years.

Recognizing the historic and nostalgic value of the intact 1953 structure, the McDonald's Corporation acquired the store in 1990 and rehabilitated it to a modern but nearly original condition, and then built an adjacent museum and gift shop to commemorate the site. Inside the small museum are many McDonald's artifacts from over the years, and also a small display showing how the restaurant buildings evolved from the small walk-up candy striped stands to the large more common mansard-roofed restaurants.

In 1954, Ray Kroc, a seller of Multi-mixer milkshake machines, learned that the McDonald brothers were using eight of his machines in their San Bernardino restaurant. His curiosity was piqued, and he went to San Bernardino to take a look at the McDonalds' restaurant.

14

Believing that the McDonalds' formula was a ticket to success, Kroc suggested that they franchise their restaurants throughout the country. When they hesitated to take on this additional burden, Kroc volunteered to do it for them. He returned to his home outside of Chicago with rights to set up McDonald's restaurants throughout the country, except in a handful of territories in California and Arizonaalready licensed by the McDonald brothers. Kroc's first McDonald's restaurant opened in Des Plaines, Illinois, near Chicago, on April 15, 1955, the same day that Kroc incorporated his company as McDonald's Systems, Inc. (which he would later rename McDonald's Corporation). Ray Kroc's first McDonald's was then demolished after many remodels in 1984.

Once the Des Plaines restaurant was operational, Kroc sought franchisees for his McDonald's chain. The first snag came quickly. In 1956 he discovered that the McDonald brothers had licensed the franchise rights for Cook County, Illinois to the Frejlack Ice Cream Company. Kroc was incensed that the McDonalds had not informed him of this arrangement. He purchased the rights back for $25,000, five times what the Frejlacks had originally paid, and pressed forward. McDonald's grew slowly for its first three years. By 1958, there were 34 restaurants. In 1959, however, Kroc opened 68 new restaurants, bringing the total to 102 locations.

[edit]Phenomenal growth in the 1960s and 1970s

The Big Mac hamburger made its debut in 1968

15

In 1960, the McDonald's advertising campaign "Look for the Golden Arches" gave sales a big boost. Kroc believed that advertising was an investment that would in the end come back many times over, and advertising has always played a key role in the development of the McDonald's Corporation. Indeed, McDonald's ads have been some of the most identifiable over the years. In 1962, McDonald's introduced its now world-famous Golden Arches logo. A year later, the company sold its billionth hamburger and introduced Ronald McDonald, a red-haired clown designed to appeal to children.

In the early 1960s, McDonald's really began to take off. The growth in U.S. automobile use that came with suburbanization contributed heavily to McDonald's success. In 1961 Kroc bought out the McDonald brothers for $2.7 million, aiming at making McDonald's the number one fast-food chain in the country.

In 1965, McDonald's Corporation went public. Common shares were offered at $22.50 per share. By the end of the first day's trading, the price had shot up to $30. A block of 100 shares purchased for $2,250 in 1965 was worth, after 12 stock splits (increasing the number of shares to 74,360), over $5.7 million as of year-end market close on December 31, 2010. In 1985, McDonald's Corporation became one of the 30 companies that make up the

NEEDS, WANTS AND DEMANDS : Need: To eat something good its customer need and McDonald fulfill their need according to their expectations and fulfill the desire of hunger. Wants: Mainly pizza of McDonald is not the basic need of people but it is a want of those who want some extra or they want to celebrate some specific occasion, and they celebrate these with McDonald.

16

Demand: McDonald also give considerable and proper attention to demands of people. In new product development, McDonald considers demands of people specially. There are several steps to go through before they launch a new product. The first step is to carry out research to find out: 

What people think about pizzas (what role do they play in people's lives, when do they eat them and so on)?



What do they like about pizzas?



What do they dislike about pizzas?



What do they want from pizzas?

Marketing offer: McDonald creates a market offer very much according to market. It is offered to satisfy need or want. The information is collected together and used to create ideas for prototypes. The ideas are tested first, before they make any pizzas. Customer value & satisfaction: McDonald create certain expectations among its customers, is fulfilling it accurately, and get a good image in minds of customers. Its customers are satisfied by its quality as it satisfies their expectations. They give basic priority to their customers.

17

Exchange & relationships: McDonald has maintained very good relationships with its customers. It believes on exchange through relationships. They create relationships by offering the best product and best services to their customers for example they are offering to their customers home delivery services & providing products according to customer’s requirement. Market: McDonald is entering in global as well as local market. Being that McDonald holds the most market in the pizza industry all around the world, they perceived quality and service of the company will help to ensure a better than average chance at a successful introduction of anew product. The pizza industry firms are famous for introducing new products to spark short-term sales in available marketplaces. McDonald as stated earlier has been very successful at accomplishing this in different markets. The introduction of a product that keeps with today's trends is also important to reduce the risk of failure. In recent years, there has been an increase in the marketing of products with an extreme twist to them. Mountain Dew, which is a brand name owned by McDonalds parent company, PepsiCo, has been very successful at repositioning itself to this segment of the market, which has parked new interest in the soft drink. Many other imitators have followed their example and have been successful as well. McDonald has the resources available to research and implement a new product with great success in globally marketplace.

18

1. CUSTOMER DRIVEN MARKETING STRATEGY: McDonald’s marketing strategy is very simple: “we want to satisfy our customer boffering them the best.” Their main segment which they have captured is combination of higher incomes & dual career families. Their maximum market segment is younger generation ranges from 12-30. Another big strength and even a competitive advantage is the fact that they have a full service restaurant as well as delivery services. Most of McDonald's competitors do not have restaurants. Because of the restaurant, McDonald can market to different segments that other pizza chains cannot. For example, McDonald can market to families much easier than Domino's or Little Caesar's. McDonald offers a sit-down, conversational type restaurant where families can take their children for birthday parties. McDonald's broad selection of products also makes it easier for them to market to different market segments. The other two strategies followed by McDonald are C.H.A.M.P.S (Cleanliness, Hospitality, Accuracy, Maintenance, Product quality and Speed) and 3F’s (Fun, Friendly & Familiar).

These two strategies have really helped McDonald to evolve out as a market leader with a competitive advantage

19

2. MARKETING PLAN THAT DELIVERS SUPER IOR VALUE Marketing plan is the set of controllable tactical marketing tools that the McDonald blends to produce the product. McDonald develop best product with the resources available.

Marketing plans made to gain a competitive advantage over its rivals in a market. Hence, all the businesses need to adopt business level strategies in order to compete in a competitive environment. If we look at the India market, there are no large competitors of McDonald but unlimited small competitors exist in the market. The threat of competitors is very low as there is no international food chain offering pizza in Pakistan at present. Therefore, present strategies adopted by McDonald are keeping in consideration the present competition. Whereas, in future this competition will increase and McDonald will have to change all its business level strategies in order to compete with its rivals. In very near future Dominos is opening its first branch in Delhi. This would be a threat for McDonaldand hence, the strategies would be changed. Response it wants in the target market. It consists of everything it can do, to influence the demand for its they follow the marketing plan to fulfill their goals and target. So the marketing plan comprises on 4P’s; 

PRODUCT



PRICE



PLACE



PROMOTION

Products of McDonald are goods and services, that they offer to target market to satisfy the needs and wants of customer. Their products are based on variety, quality, design, features, brand name

20

and services. Price is s et by McDonald, when product is launched in market. They negotiate the price with each customer-offering discount. They adopt, pricing strategy to hold maximum share of market by maximizing profit. Place is set of activities that make the product available to target customer. McDonald refers to the best place to offer program. Their outlets are located in almost 100 countries including India. Promotion is used to communicate the feature and benefit of product. McDonald promotes its product through advertising, sales promotion, personal selling and public relations. 3. BUILD RELATIONSHIP &CUSTOMER SATISFACTION They build strong relationship with customer by offering them best pizza. They create customer delight through; Customer Relationship Management (CRM) Partner Relationship Management (PRM) 

Customer relationship management (CRM):

McDonald build and maintain profitable customer relationships by delivering superior customer value and satisfaction. In 1995, McDonald began two customer satisfaction programs:a. 1-800 number customer hotlines and a customer callback program. These were implemented to make sure their customers were happy, and always wanted to return. They have full service restaurant as well as delivery services.



Partner Relationship Management (PRM) McDonald is working closely with partners in inside departments and outside the business unit to tly bring greater value to customers. They’ve inside & outside partners’ e.g. customers, competitors, suppliers, functional department etc. Functional department

21

corporate & focus on an area such as marketing, HR. In 1977 Pepsi co bought McDonald &1982 they stared t venture with Whitbread. In 2006 Whitbread sold their share of t venture to YUM! Brands Inc. McDonald UK Ltd was now 100% owned by Yum!

4 CAPTURE VALUE IN RETURN McDonald is committed to providing uncompromising product quality offering customers the highest value for money & giving service that is warm, friendly & personal. They also follow social factors to maintain their image through corporate social responsibility. All the employees’ back-of-the-house i.e. the kitchen assistants are trained accordingly. They are given extra classes in order to meet the quality standards set by McDonald around the world. Different quality management staff is also there at McDonald. The shift managers have the task to observe whether the quality standards are met or not, whereas there are a total quality management department at the main office.

This department has the task to implement quality standards, by this way they create value in minds of customers providing best of best in market.

22

Advertising

McDonald's Pan Pizza.

McDonald ad McDonald's very first ad was "Putt Putt to McDonald". It starts with a man apparently ordering take-out and driving his 1965 Mustang JR to McDonald, while some of the townspeople start chasing him. He picks up his pizza and goes to his house, when all of the people who were chasing him start eating all the pizza except the man who ordered it.

23

Frustrated, he calls McDonald again. Until early 2007, McDonald's main advertising slogan was "Gather 'round the good stuff", and is currently "Now You're Eating!". McDonald does not have an official international mascot, but at one time, there were commercials in the United States called 'The Pizza Head Show.' These commercials ran from 1993 to 1997 and were based loosely on the Mr. Bill shorts from Saturday Night Live in the 1970s. The ads featured a slice of pizza with a face made out of toppings called 'Pizza Head'. In the 1970s McDonald used the signature red roof with a jolly man named "McDonald Pete". Pete was on the bags, cups, balloons and hand puppets for the kids. In Australia during the Mid to late 1990s, the advertising mascot was a delivery boy named Dougie, with boyish good looks who, upon delivering pizza to his father, would hear the catchphrase "Here's a tip: be good to your mother". McDonald sponsored the 1989 film Back to the Future Part II, and offered a free pair of futuristic sunglasses, known as "Solar Shades", with the purchase of McDonald pizza. McDonald also engaged in product placement within the film itself, having a futuristic version of their logo with their trademarked red hut printed on the side of a miler dehydrated pizza wrapper in the McFly family dinner scene, and appear on a storefront in Hill Valley in the year 2015. The 1990 NES game Teenage Mutant Ninja Turtles II: The Arcade Game, came with a coupon for a free pizza. The game was filled with McDonald advertising and pizza that would refill the character's life. In 1994, Donald Trump and ex-wife Ivana Trump starred in a commercial. The ending of the commercial showed Ivana Trump asking for the last slice, to which Donald replied, "Actually

24

dear, you're only entitled to half", a play on the couple's recent divorce. In 1995, Ringo Starr starred in a McDonald commercial which also featured The Monkees. Rush Limbaugh also starred in a McDonald commercial the same year, where he boasts that "nobody is more right than me," yet he states that for the first time he will do something wrong, which was to participate in McDonald's then "eating pizza crust first" campaign regarding their stuffed crust pizzas. Talk show host Jonathan Ross, co-starred in an ad with American model, Caprice Bourret. They were used to the stuffed crust pizza, with Jonathan Ross saying "Stuffed Cwust", to which is a play on Jonathan's pronunciation of 'R's. Another UK ad shows British Formula One driver Damon Hill visit a McDonald restaurant and order a pizza, with famous F1 commentator Murray Walker visiting with him, and narrating as though it was a Formula One race. As Hill is about to finish his meal, Walker, in a play on Hill's 1994 & 1995 seasons where he was runner up in the formula One World Championship both won by Michael Schumacher, shouts "And Hill finishes second, again!" at which Hill grabs Walker by his shirt and shakes him angrily, Walker proclaiming, in his usual tones, "He's lost it! He's out of control!" Following England's defeat to on penalties in the semi-finals of Euro 96, Gareth Southgate, Stuart Pearce and Chris Waddle featured in an advert. The advert shows Southgate wearing a paper bag over his head in shame as he was the one, who missed the crucial penalty against the Germans. Waddle and Pearce, who both missed penalty kicks in Italia 90 are ridiculing him, emphasising the word 'miss' at every opportunity. After Southgate finishes his pizza he takes off his paper bag, heads for the door and bangs his head against the wall. Pearce responds with, "this time he's hit the post".

25

In 1997, former Soviet Union Premier Mikhail Gorbachev starred in a McDonald commercial to raise money for the Perestroyka Archives. In recent years, McDonald has had various celebrity spokespeople, including Jessica Simpson, the Muppets, and Damon Hill and Murray Walker. Recent commercials have Queen Latifah providing the voiceover. Also in 1997, McDonald, reunited "greatest of all time boxer" Muhammad Ali with trainer Angelo Dundee in a sentimental made for Super Bowl commercial. McDonald sponsored the first space pizza delivery in 2001, and paid for their logo to appear on a Russian Proton rocket in 2000.[19] In Australia, 2006 saw the introduction of a mascot in McDonald's advertising – "Pizza Mutt", a small dog who delivers pizzas. The mascot was dumped after just two ads. Early 2007 saw McDonald move into several more interactive ways of marketing to the consumer. Utilizing mobile phone SMS technology and their MyHut ordering site, they aired several television commercials (commencing just before the Super Bowl) containing hidden words that viewers could type into their phones to receive coupons. Other innovative efforts included their "MySpace Ted" campaign, which took advantage of the popularity of social networking, and the burgeoning -submission marketing movement via their Vice President of Pizza contest. As of October 2009, McDonald is now advertising its WingStreet brand on a nationwide basis, having met its internal requirement of 80% of stores having the product available (both corporate and franchised).

26

Pasta Hut Pasta Hut logo (2008–present) On April 1, 2008, McDonald in America sent emails to customers advertising that they now offer pasta items on their menu. The email (and similar advertising on the company's website) stated "Pasta so good we've changed our name to 'Pasta Hut'." The name change was a publicity stunt held in conjunction with April Fools' Day, extending through the month of April, with the company's Dallas headquarters changing its exterior logo to Pasta Hut.[20] This name change was also used to promote the new Tuscani Pasta line and new McDonald dine-in menu. The first Pasta Hut ment has the original McDonald restaurant being imploded and recreated, but when they construct the new building, the sign saying "Pasta Hut" is placed on the building. Australia On January 19, 2009, McDonald started a six-week online vote in Australia as to whether McDonald should become Pasta Hut. They are also co-branding two stores with the Pasta Hut logo. Advertising for the new brand involved the production team creating a set of a restaurant called "Toscani's". As the TV suggests, the diners in the fictional restaurant, complete with signage and secret recording equipment; the customers were unaware they were eating pasta from McDonald.[21]

27

United Kingdom In the United Kingdom on January 19, 2009, McDonald had announced that the Pasta Hut trial had ended and that the names of all stores previously converted to Pasta Hut would be converted back to McDonald. This was due to McDonald's online poll, where the results showed that 81% had chosen to keep the name McDonald, 19% chose to change the name to Pasta Hut. Consequently the name will change back, but the menus will continue to include pasta.[22] Costa Rica In Costa Rica, Aside from the McDonald restaurants, there is another brand called "PHD Pizza Delivered Hot by McDonald", this brand is only for food courts at malls and for express delivery. This was created to compete on the "fast food" market while restaurants will concentrate in casual food. Sponsorship In the early 1990s, as part of PepsiCo's sponsorship of The News Hour with Jim Lehrer (and its former moniker, "The MacNeil/Lehrer NewsHour"), McDonald was included in the acknowledgment alongside Taco Bell and KFC, which PepsiCo owned at the time. In 2000, McDonald was a part-time sponsor of Galaxy Motorsports' #75 Ford in the then NASCAR Winston Cup Series, driven by Wally Dallenbach Jr.

28

McDonald was the shirt sponsor of English football club Fulham F.C. for the 2001–02 season. Terry Labonte drove selected events with McDonald as the primary sponsor of his #44 car in 2005. McDonald purchased the naming rights to Major League Soccer club FC Dallas' stadium, McDonald Park, prior to its opening in 2005. In March 2007, McDonald partnered with Verizon Wireless to offer a free LG mobile phone with the purchase of a Cheesy Bites Pizza. McDonald is a sponsor of the Newcastle Vipers ice hockey team for the 2007/08 EIHL season in the UK. McDonald is a sponsor of Children's Joy Foundation In The Philippines.McDonald takes great pride and care to provide its customers with the best food and dining experience in the quickservice restaurant business. It has its outlets in many parts of India in different cities : 

Delhi



Mumbai



Kolkatta



Chandigarh



Noida



Chennai



Banglore



Cochin

29



Pune



Jaipur



Jodhpur

McDonald has been a renowned restaurant since 1958. it has maintained its quality and goodwill since then. It has also been awarded as the best restaurant chain internationally.

MCDONALD IN INDIA Pizza have come a long way from the initial days when some of these fast food giants like KFC were attacked, to the situation where no mall in the country is complete without the presence of these food outlets. Though many of them made their initial entry with their international menu but today after staying here for many years their menu has changed to serve the Indian palate.

30

First among them was McDonalds which changed its kitchen and menu to suit Indian tastes, on which I have written earlier too, link. But the same is being followed by McDonald , a look at their menu shows us how many special exclusive Indian pizzas they have , for vegetarians they a host of Panner offerings and for Non-vegetarians the Kabaab and Chicken Tikka Pizzas. McDonald Outlets - India McDonald - Bangalore 

Banaswadi 5th B cross, H.R.B.R Layout, 3rd block, Kammanahalli Main Road - McDonald



Bangalore G.P.O. Brigade Road - McDonald



Basaveswara Nagar LIC Colony - McDonald



Dharmaram College Hosur Road - McDonald



MoreMcDonald - Chennai



Tharamani Ascendes - Food Court Ground Floor Tharamani - McDonald



T. Nagar Sir Thiyagaraya Road, Pondy Bazzar - McDonald



Mylapore Dr. Radhakrishnan Salai - McDonald

31

McDonald - Delhi 

Greater Kailash I M Block Market - McDonald



Gurgaon Udyog Vihar - McDonald Helpline



Hauz Khas Grater Kailash I - McDonald



MoreMcDonald - Hyderabad



Jubilee Hills Madhapur - McDonald



Banjara Hills Road No. 12, A.C. Guards - McDonald McDonald - Kolkata



Bidhan Nagar Salt Lake - McDonald



Circus Avenue Camac Street - McDonald



MoreMcDonald - Mumbai



I.I.T. Powai Hiranandani Business Park - McDonald

32



Pune H.O. Convent Street - Pizza Hultflat Other Pizza Outlets



Domino's Pizza India



Pizza Corner India

Chapter 2 REVIEW OF LITERATURE

33

INDIAN FAST FOOD MARKET ANALYSIS: BUSINESS MARKET REPORT New Delhi, India, February 18, 2011: With rapidly growing middle class population and changing lifestyle, India is blessed with one of the fastest growing fast food markets of the world. The Indian fast food market is growing at the rate of 30-35% per annum. Almost all big fast food brands of the world have succeeded in making their presence felt in the country and most of them are posting appreciable growth. Consequently, all the popular fast food chains have chalked out massive plans for expanding their business and presence throughout the country. Moreover, foreign fast food chains are aggressively increasing their presence in the country. For instance, Domino’s has planned to open 60-65 outlets every year for the next three years (2010-2012) while Yum Brands Inc is also preparing for massive expansion across the country with plans to open 1000 fast food outlets by 2015. According to “Indian Fast Food Market Analysis”, although the market has witnessed a robust growth in the past couple of years, it remains largely underpenetrated and concentrated into metropolitan cities. However, there is large room for growth in tier-II cities and tier-III cities, which are mostly untapped. Therefore, the future of Indian fast food industry lies in masses that live in tier-II and tier-III cities. The report provides extensive research and objective analysis on the fast expanding Indian fast food market. The report analyzes all the vital industry trends and possible growth areas for future expansion. It also analyzes important driving forces in detail, which will help clients to understand the market better. Moreover, we have also identified the important players operating in the sector and have made a separate chapter which talks about their business expansion plans in detail. Most importantly, the report also features forecast on fast food sales in the country. The forecast is based on the correlation between past market growth and growth in base drivers such as growth in middle class, urbanization, cultural shift and lifestyle changes. Constant Endeavour of the fast food industry to provide Indian consumers with the western and local menu has provided impetus to their growth.

With high disposable income group ready to spend and try multiple cuisines, we can say that the fast food industry is on the fast track.

34

As lot of Indians are travelling abroad and for business and pleasure purpose and hence are experiencing a change in their lifestyle and are keen on trying new menus and dishes. The success of McDonald’s is a case in point. McDonald’s made its India debut in 1996 and today it has around 211 restaurants in India. Vikram Bakshi, MD, McDonald’s India (North & East), is adding that they are targeting to open around 40 plus stores in the country soon. “With ever increasing pool of working population, nuclear families and a progressive middle class, the demand for fast food already on the rise will see a tremendous growth in future also,” says Ritu Chaudhri, VP Marketing, Nirula’s. Nirula’s has 80 in India and are planning to open 70 more till 2012. The move to ‘localize’ the fast food tastes has paid rich dividends and increased brand loyal customer base for the companies. MCDonald is known to introduce Indianite version of pizzas to attract the local customer base. According to a report by ASSOCHAM, the consumer spending on processed food has increased at an average rate of 7.6 per cent annually from 2008 to 2010 and this is expected to rise at an average of around 8.6 per cent until 2012. The major shift in food habits of urbanites and the interest of the rural population to try their hands on the fats food menu has paved way to the growth of the fast food venture. Related Articles: As per our new research report “Indian Fast Food Market Analysis”, India is blessed with one of the fastest growing fast food markets in the world. The Indian fast food market is growing at an annual growth rate of 30-35%. Almost all big fast food brands of the world have succeeded in making their presence felt in the country and most of them posting an appreciable growth.

35

Most of the popular fast food chains have chalked out massive plans for expanding their business and presence throughout the country. Moreover, foreign fast food chains are aggressively expanding their presence in the country. For instance, Domino’s plan to open 60-65 outlets every year for the next three years (2010-2012), while Yum Brands Inc is also preparing for its massive expansion across the country. It plans to open 1000 fast food outlets by 2015. Although the market has witnessed robust growth in the past couple of years, it remains largely underpenetrated and concentrated in the metropolitan cities. However, there is large room for growth in tier-II cities, tier-III cities which are mostly untapped. Therefore, the future of Indian fast food industry lies in masses that live tier-II and tier-III cities. “Indian Fast Food Market Analysis” provides extensive research and objective analysis of the fast expanding fast food market in India. The report has analyzed all the vital industry trends and possible growth areas for future expansion. It also analyses important driving forces in detail which will help clients to understand the market better. Moreover, the report has identified the important players operating in the sector and made a separate section which talks about their business expansion plans in detail. Most importantly, the report also features the forecast on fast food sales important economic parameters. The forecast is based on the correlation between past market growth and growth in base drivers such as growth

in

middle

class,

urbanization,

cultural

shift

and

lifestyle

changes.

Represent one of the largest segments of the food industry with over 200,000 restaurants and $120B in sales in the U.S. alone. Fast food restaurants, also known as quick service restaurants (QSRs), are noted for their short food preparation time. Some of the largest players in this category include international giants like McDonald's and Yum! Brands, national chains such as Wendy's and Burger King and regional players like Jack In The Box and Sonic. Since late 2006, the fast food industry's growth has been slowed by soaring food and energy prices The high prices of commodities, combined with the housing slump and a weakening job market re taking a toll on restaurant spending in the U.S. (the world's largest fast food market, by far). The same food and energy inflation that is corroding consumer spending is also taking a bite out of company margins.

36

Fast food restaurants have navigated this difficult landscape with varying levels of success. International players such as McDonald's (MCD) and Yum! Brands (YUM) have had the most success as explosive growth in emerging markets has offset rising costs and a U.S. slowdown. Other companies like Sonic and Domino's have turned to new marketing campaigns and product innovation to boost growth and profitability.

U.S. Spending Slowdown Negatively Impacts Fast Food Sales The U.S. s for the lion's share of fast food spending globally. Since the first half of 2007, several forces have put consumer spending in this critical market under intense pressure. The first of these is a plummeting housing market (especially in the overbuilt areas of Southern California, Nevada and Florida) which produces a negative wealth effect among consumers, discouraging spending. Second, rising food and energy prices have raised inflation to multidecade highs- outpacing wage gains and shrinking spending power. Finally, the U.S. job market has deteriorated; in the first six months of 2008, the economy has shed 485,000 private sector jobs, while many have seen job hours reduced Although some industry players, such as McDonald's, have seen continued same store sales growth as consumers trade down to less costly food alternatives, overall the sector has struggled. According to the National Association of Restaurants, 55% of restaurant operators reported a same-store sales decline in March 2008 compared to just 28% who reported increases. italic text===Rising Food Prices Pressure Fast Food Margins===

37

Historical and USDA forecasted Corn prices per bushel

Wheat prices have since risen more dramatically-Data from USDA Several factors have contributed to a dramatic rise in food prices in recent years, including higher oil and energy prices; the growing global demand from rapidly developing economies such as China and India; a weak U.S. dollar; and a larger share of the grain market being diverted to ethanol production These trends have led to the rapidly rising prices of commodities such as corn and wheat After labor, food and beverage inputs are the single largest cost facing fast food restaurant operators, ing for 33 cents for every dollar of sales. Because operating margins are already relatively low compared to other industries (typically in the single digits) a slight increase in these costs can have an outsized effect on profitability. For over a year now, wholesale food price inflation has been rising at multi-decade highs. In 2007, wholesale food prices rose 7.6%; as of March 2008 that number had increased to 8.5% on a year over year basis At the same time, intense competition limits the ability of fast food operators to along rising costs to customers. Increased costs have had a noticeable effect on fast food company earnings with operators such as Domino's, Wendy's and Jack In The Box have all reported consistent quarterly declines in operating margins since the second half of 2007.

38

Because franchisers capture a portion of revenue rather than profits, smaller fast food chains that have a lower portion of their restaurants franchised are most vulnerable to cost increases. Jack In The Box, Wendy's, and Sonic have particularly low franchised to owned restaurant rations.

PRODUCTS CHOOSE YOUR PIZZA CREATE YOUR OWN

Create a pizza that's custom made just for you. Start with your favorite crust, add your toppings, and just the right amount of cheese and sauce. ULTIMATE CHEESE LOVER'S™ PIZZA

Covered in creamy Alfredo sauce and topped with delicious cheeses. PEPPERONI LOVER'S® PIZZA

Layered with extra pepperoni plus extra cheese for a pepperoni in every bite.

39

MEAT LOVER'S® PIZZA

Loaded with pepperoni, ham, beef, bacon and sausage. VEGGIE LOVER'S® PIZZA

Packed with five veggies, including fresh tomatoes, mushrooms, red onions, green peppers, and black olives. SUPREME PIZZA

Our signature blend of pepperoni, pork sausage, beef, mushrooms, red onions and green peppers.

40

SUPER SUPREME PIZZA

A feast of pepperoni, ham, beef, pork sausage, Italian sausage, red onions, mushrooms, green peppers and black olives.

MEATY P'ZONE® PIZZA

It's multi-meat mayhem in there. Stuffed with all your favorites - pepperoni, ham, Italian sausage, pork, beef, and of course cheese. Served with zesty marinara on the side. PEPPERONI P'ZONE® PIZZA

If pepperoni's your ion - lots and lots of pepperoni - this is your P'Zone. Served with zesty marinara on the side. SUPREMO P'ZONE® PIZZA

41

Savory Italian sausage mixes with fresh green peppers and red onions in this meat-and-veggie combo. Served with zesty marinara on the side. TUSCANI MEATY MARINARA

Savory Italian-seasoned meat sauce and rotini pasta topped with cheese and oven-baked. TUSCANI CREAMY CHICKEN ALFREDO

Grilled chicken breast strips and rotini pasta oven-baked in a creamy Alfredo sauce with a layer of melted cheese. BUFFALO BURNIN' HOT

Extreme heat for the daring Buffalo eater. BUFFALO MEDIUM

Bold Buffalo flavor with a spicy kick. BUFFALO MILD

42

All the flavor without the fire. SPICY ASIAN

Far East flavors in a spicy sweet sauce. SPICY BBQ

Savory and sassy with just a little kick. HONEY BBQ

Sweet taste from the honey side of the street. LEMON PEPPER

Zesty lemon with a peppery punch. GARLIC PARMESAN

43

The toast of Italy, the taste of two great flavors. NAKED WINGS

No sauce, but crispy, crunchy, tender and tasty.

The bold, robust, effervescently magic cola. DIET PEPSI®

Light. Crisp. Refreshing. With zero sugar, zero calories, and zero carbs. MOUNTAIN DEW®

Way more energizing and thrist quenching, with a one-of-a-kind great taste. SIERRA MIST®

44

Crisp, clean and refreshing lemon-lime soda with natural lemon and lime flavors and just the right amount of sweetness to invigorate your

senses and leave you totally refreshed. MCDonald sells pizzas in four different sizes: personal (individual serving), small, medium and large, though most stores have done away with the small size. A variety of toppings are available, plus "specialty" styles, including Meat Lovers, Pepperoni Lovers, Cheese Lovers, Veggie Lovers, Double Cheeseburger, Supreme, Super Supreme and the newly introduced Pizza Mia. The pan pizza has a thicker crust than most other commercially available pizzas. MCDonald also sells Stuffed Crust pizza, with the outermost edge wrapped around a coil of mozzarella cheese; Hand-Tossed, more like traditional pizzeria crusts; Thin 'N Crispy, a thin, crispy dough which was MCDonald's original style; Dippin' Strips pizza, a pizza cut into small strips that can be dipped into a number of sauces; and The Edge pizza, where the toppings nearly reach to the edge of the pizza. There was also formerly a crust that was not as thick as MCDonald's pan pizza, and not as thin as its thin crust. This crust was used on the Full House XL pizza and discontinued in 2007.[9] MCDonald experiments with new products frequently, with less successful ones being discontinued. These include the initially popular two-foot by one-foot square cut pizza Bigfoot, the 16" Big New Yorker, made with a sweet sauce, the Chicago Dish Pizza and Sicilian pizza, the latter also offered in 2006 as Lasagna Pizza. Other products MCDonald has offered are the "P'zone", MCDonald's version of the calzone; the Cheesy Bites pizza, similar to the Stuffed Crust pizza except the crust has been divided into 28 bite-sized pieces that can be pulled apart; and the Insider pizza, where a layer of cheese is in between two layers of dough. Another limited time offer was a Double Deep pizza with

45

double the toppings and 50% more cheese, with the crust wrapped over the top to hold in all the toppings. In 1985 MCDonald introduced the Priazzo[10], a two-crusted Italian pie that resembled a deep-dish pizza. Varieties included Priazzo Milano, a blend of Italian sausage, pepperoni, beef, pork fillings, a hint of bacon, mozzarella and cheddar cheese; Priazzo Florentine, a light blend of five cheeses with ham and a touch of spinach, and Priazzo Roma, stuffed with pepperoni, mushrooms, Italian sausage, pork filling, onions, mozzarella and cheddar cheese. The double-crusted pie was topped with a layer of tomato sauce and melted cheese. The Priazzo was introduced by a $15 million advertising campaign, but proved too labor-intensive and was removed from the menu several years later.

In addition to pizza, also sold is garlic cheese bread (not in all locations), plus a number of side dishes including bread sticks, cheese sticks, cinnamon sticks, mozzarella sticks, onion rings, chicken wings (some stores have integrated with another chain known as WingStreet which offers a wide variety, such as Buffalo Burning Hot, Buffalo Medium, Buffalo Mild, Honey BBQ, Spicy BBQ, Garlic Parmesan, Cajun, Spicy Asian) boneless wings, chicken munchers, jalapeño poppers, Quepapas (potato bites filled with cheese and jalapeño flavor), a basket of taters or tater tots and fried apple pies. Depending on the individual restaurant size, MCDonalds also may offer pasta dinners such as spaghetti and Cavatini – a mixture of Cavatelli (shells), Rotini (spirals), and Rotelle (wheels). A new, upscale concept was unveiled in 2004, called "MCDonald Italian Bistro". Unveiled

46

at fifty locations nationwide, the Bistro is similar to a traditional MCDonald, except that new, Italian themed dishes are offered, such as penne pasta, chicken pomodoro, toasted sandwiches and other foods. Instead of black, white, and red, Bistro locations feature a burgundy and tan motif.[ MCDonald Bistros still serve the chain's traditional pizzas and sides as well. In some cases, MCDonald has replaced a "Red Roof" location with the new concept. A new version of MCDonald pizza, named Pizza Mia which is lightly cooked and topped, was introduced in 2007. The product is aimed at the cost sensitive consumer segment and is priced similarly to the Domino's 555 deal, where each pizza is priced at five dollars if purchased in bulk of three or more. In comparison, a MCDonald medium sized, handtossed pepperoni pizza is internationally priced at $10.24 (Dallas, Texas 1/1/2009). The Pizza Mia comes in only one size (medium) and extra toppings range from $1.25 to $1.49. One slice of MCDonald pepperoni Pizza Mia weighs 83 grams, while one slice of MCDonald pepperoni hand-tossed pizza weighs 96 grams. MCDonald on May 9, 2008, created and sold in Seattle, Denver, and Dallas, “The Natural”, a new all-natural multi grain crust sweetened with honey, a red sauce of organic tomatoes and topped all-natural cheese (or with all-natural chicken sausage and roasted red peppers). A medium Natural pizza with one topping sold for $9.99. This was discontinued on October 27, 2009 in the Dallas market. It has since launched a nationwide advertising campaign. Also in 2008, MCDonald created their biggest pizza ever, the Panormous Pizza. It has 16 pieces. MCDonald introduced the Big Eat Tiny Price Menu on June 21, 2009. It features new Pizza Rolls, the P'Zone Pizza, new Personal Panormous Pizza, and the Pizza Mia Pizza,

47

each item starting at $5.00 or $5.99. MCDonald introduced stuffed pan pizza on August 23, 2009 with $10.99 for one toppings and specialty for $13.99. Unlike regular stuffed crust cheese is not inside the crust, just pressed into the pan crust. Understanding the market place It consists of five steps:  Needs , wants & demands  Marketing offer  Customer value & satisfaction  Exchange & relationship  Market

48

NEEDS ,WANTS AND DEMANDS : Need: To eat something good its customer need and MCDonald fulfill their need according to theirexpectations and fulfill the desire of hunger. Wants: Mainly pizza of MCDonald is not the basic need of people but it is a want of those who wantsome extra or they want to celebrate some specific occasion, and they celebrate thesewith MCDonald. Demand: MCDonald also give considerable and proper attention to demands of people. In new product development, MCDonald considers demands of people specially. There areseveral steps to go through before they launch a new product. The first step is to carry out research to find out: 

 What people think about pizzas (what role do they play in people's lives, when do



they eat them and so on)?



What do they like about pizzas?

49



What do they dislike about pizzas?



What do they want from pizzas? Marketing offer: MCDonald creates a market offer very much according to market. It is offered to satisfy need or want. The information is collected together and used to create ideas for prototypes. The ideas are tested first, before they make any pizzas. Customer value & satisfaction: MCDonald create certain expectations among its customers, is fulfilling it accurately, and get a good image in minds of customers. Its customers are satisfied by its quality as it satisfies their expectations. They give basic priority to their customers. Exchange & relationships: MCDonald has maintained very good relationships with its customers. It believes on exchange through relationships. They create relationships by offering the best product and best services to their customers for example they are offering to their customers home delivery services & providing products according to customer’s requirement. Market: MCDonald is entering in global as well as local market. Being that MCDonald holds the mostmarket in the pizza industry all around the world, they perceived quality and service of thecompany will help to ensure a better than average chance at a successful introduction of anew product. The pizza industry firms are famous for introducing new products to sparkshort-term sales in available marketplaces. MCDonald as stated earlier has been verysuccessful at accomplishing this in different markets. The introduction of a product thatkeeps with today's trends is also important to reduce the risk of failure. In recent years,there has been an increase in the marketing of products with an extreme

50

twist to them.Mountain Dew, which is a brand name owned by MCDonalds parent company, PepsiCo, hasbeen very successful at repositioning itself to this segment of the market, which hassparked new interest in the soft drink. Many other imitators have followed their exampleand have been successful as well. MCDonald has the resources available to research andimplement a new product with great success in globally marketplace.

51

1. CUSTOMER DRIVEN MARKETING STRATEGY: MCDonald’s marketing strategy is very simple: “we want to satisfy our customer boffering them the best.” Their main segment which they have captured is combination of higher incomes & dual career families. Their maximum market segment is younger generation ranges from 12-30. Another big strength and even a competitive advantage is the fact that they have a full service restaurant as well as delivery services. Most of MCDonald's competitors do not haverestaurants. Because of the restaurant, MCDonald can market to different segments thatother pizza chains cannot. For example, MCDonald can market to families much easier thanDomino's or Little Caesar's. MCDonald offers a sit-down, conversational type restaurantwhere families can take their children for birthday parties. MCDonald's broad selection ofproducts also makes it easier for them to market to different market segments.

The other two strategies followed by MCDonald are C.H.A.M.P.S (Cleanliness, Hospitality,Accuracy, Maintenance, Product quality and Speed) and 3F’s (Fun, Friendly & Familiar). These two strategies have really helped MCDonald to evolve out as a market leader with acompetitive advantage

52

MCDONALD IN INDIA

Pizza have come a long way from the initial days when some of these fast food giants like KFC were attacked, to the situation where no mall in the country is complete without the presence of these food outlets. Though many of them made their initial entry with their international menu but today after staying here for many years their

53

menu has changed to serve the Indian palate.

First among them was McDonalds which

changed its kitchen and menu to suit Indian tastes, on which I have written earlier too, link. But the same is being followed by MCDonald , a look at their menu shows us how many special exclusive Indian pizzas they have , for vegetarians they a host of Panner offerings and for Non-vegetarians the Kabaab and Chicken Tikka Pizzas.            

MCDonald Outlets - India MCDonald - Bangalore Banaswadi 5th B cross, H.R.B.R Layout, 3rd block, Kammanahalli Main Road - MCDonald Bangalore G.P.O. Brigade Road - MCDonald Basaveswara Nagar LIC Colony - MCDonald Dharmaram College Hosur Road - MCDonald More MCDonald - Chennai Tharamani Ascendes - Food Court Ground Floor Tharamani - MCDonald T. Nagar Sir Thiyagaraya Road, Pondy Bazzar - MCDonald Mylapore Dr. Radhakrishnan Salai - MCDonald MCDonald - Delhi

54

                

Greater Kailash I M Block Market - MCDonald Gurgaon Udyog Vihar - MCDonald Helpline Hauz Khas Grater Kailash I - MCDonald More MCDonald - Hyderabad Jubilee Hills Madhapur - MCDonald Banjara Hills Road No. 12, A.C. Guards - MCDonald MCDonald - Kolkata Bidhan Nagar Salt Lake - MCDonald Circus Avenue Camac Street - MCDonald More MCDonald - Mumbai I.I.T. Powai Hiranandani Business Park - MCDonald Pune H.O. Convent Street - Pizza Hultflat Other Pizza Outlets Domino's Pizza India Pizza Corner India

55

56

MCDONALD LAUNCHES NEW MENU AND AD CAMPAIGN 23 Dec 2011 In a recent development, India's leading affordable casual dining restaurant brand, MCDonald has unveiled their new menu with an addition of 30 items in their offerings. Further, the pizza restaurant has also launched a new brand campaign – ‘What are you celebrating today?’ to promote

the

launch.

With a 27 per cent market share of the eating-out market and over 70,000 footfalls per day across the country, MCDonald is geared to provide diners with the ideal place to build memories and relationships over delicious food. In an effort, the chain has introduced four new Appetisers, seven exciting Pastas, two new Pizzas, five more Desserts and twelve delicious Beverages. The new range includes some of the new offerings like Potato Criss Cuts, Creamy Spinach and Mushroom Pasta, Ultimate Adventure Pizza, Choco Chip Cookie Sundae and Grape Sangria Cooler. Further, the newly launched campaign showcases MCDonald as the perfect place to celebrate and it also highlights the thirty new menu offerings that go beyond just pizzas, including sautéed pastas, starters, drinks and desserts. MCDonald is one of the flagship brands of Yum! Brands, Inc., which also has KFC, Taco Bell, A&W and Long John Silver’s under its umbrella. MCDonald is one of the largest casual dining restaurant chain with over 12,500 restaurants across 91 countries and 140 stores across 34 cities in India.

57

MCDONALD’S FRANCHISING NETWORKS IN INDIA

The MCDonald franchise stepped into the Indian fast food market by opening a dine-in restaurant at Bangalore in 1996. The pizza franchise soon expanded itself in India and now has the KFC brand beneath its umbrella. The fast food franchise was the first international fast food firm to make an entry into the Indian scene and has thus pioneered the Indian pizza market.

58

The menu provided at the MCDonald franchise is that of a complete meal. Customers are considered as honoured guests at the fast food franchise and are treated accordingly. It is the customer satisfaction provided by the specialty food franchise that enabled it to position itself at the top of the Indian fast food market.

The fast food franchise also ensures that it adds an Indian touch to all the varieties of pizzas that it makes available to Indian customers. Various delicious combinations are tested at the Indian MCDonald franchisee outlets by blending the original menu with Indian favourites to make fresh salads, garlic based breads, soups, yummy pastas and delicious desserts.

The employees of the restaurant centre of the MCDonald fast food franchise which functions in New Delhi works hard to place MCDonald at the top of Indian market. The centre takes care of finance, legal and marketing sides of the Indian operations of MCDonald franchisees. Globalization of fast food industry

McDonald's in Moscow In 2006, the global fast food market grew by 4.8% and reached a value of 102.4 billion and a volume of 80.3 billion transactions.[19] In India alone the fast food industry is

59

growing by 40% a year.[20] McDonald's is located in 126 countries and on 6 continents and operates over 31,000 restaurants worldwide.[21] On January 31, 1990 McDonald’s opened a restaurant in Moscow, and broke opening day records for customers served. The Moscow restaurant is the busiest in the world. The largest McDonald’s in the world is located in Beijing, People's Republic of China.] There are numerous other fast food restaurants located all over the world. Burger King has more than 11,100 restaurants in more than 65 countries. KFC is located in 25 approximately 39,129 restaurants in 90 countries as of May 2009[ the first non-US with 100 locations in China. Taco Bell has 278 restaurants located in 12 countries besides the United States.

60

Pizza in India Pizza is a emerging fast food in Indian urban areas. With the arrival of branded pizza such as Domino's and MCDonald in early to mid 1990s, it has reached almost all major cities in India by 2010 Pizza outlets serve pizzas with several India based toppings like Tandoori Chicken and Paneer. Indian pizzas are generally made more spicy, compared to their western counterparts, to suit Indian taste. Along with Indian variations, more conventional pizzas are also eaten. Pizzas available in India range from localized basic variants available in neighborhood bakeries to gourmet pizzas with exotic and imported ingredients available at specialty Italian restaurants.

Health issues Pizza can be high in salt, fat and calories. There are concerns about negative health effects.[15] MCDonald has come under criticism for the high salt content of some of their meals which were found to contain more than twice the daily recommended amount of salt for an adult.[16] European nutrition research on the eating habits of people with cancer of the mouth, oesophagus, throat or colon showed those who ate pizza at least once a week had less chance of developing cancer, they found. Dr Silvano Gallus, of the Mario Negri Institute for Pharmaceutical Research in Milan,[17] who led the research said: "We knew that tomato sauce could offer protection against certain tumors, but we did not expect pizza as a complete meal also to offer such protective powers." Nicola O'Connor, of Cancer Research UK, told BBC News Online: "This study is interesting and the results should 61

probably be looked at in the context of what we already know about the Mediterranean diet and its association with a lower risk of certain types of cancer.

"The secret is probably lycopene, an antioxidant chemical in tomatoes, which is thought to offer some protection against cancer, and which gives the fruit its red color. "But before people start dialing the local pizza takeaway, they should consider that some pizzas can be high in saturated fat, salt and calories". In contrast to the classic Italian pizza used in the research, most UK pizza takeaway varieties are often loaded with high fat cheeses and fatty meats, a high intake of which can contribute to obesity, itself a risk factor for cancer. "Our advice is to enjoy selected Italian pizza (i.e., healthy pizza) in moderation as part of a balanced diet that includes plenty of vegetables and fruit." Italian Carlo La Vecchia, a Milan-based epidemiologist said Italian pizza lovers should not see the research as a license to indulge their fondness for pizza food. "There is nothing to indicate that pizza is the only thing responsible for these results." He continued: "Pizza could simply be indicative of a lifestyle and food habits, in other words the Italian version of a Mediterranean diet." A Mediterranean diet is rich in olive oil, fiber, vegetables, fruit, flour and freshly cooked food - including traditional Italian healthy pizza.

62

NAMES AWARDED TO MCDONALD For ten of the last twelve years, MCDonald was named Best Pizza Chain in America in the"Choice in Chains" national consumer survey published annually by Restaurants & Institutions Magazine.In 1997 Consumer Reports named MCDonald the best pizza chaiin America and in 2000and 2003, The Dallas Business Journal named MCDonald "The Best Company to Work For"in Dallas/Fort Worth.Restaurants & Institutions' "2001 Choice inChains" survey called MCDonald the numberone national pizza chain in America.

63

ON

INDIA’S

BURGERS,

PIZZAS

&

CAFÉ

LATTE

MARKET – II : YUM BRANDS This

second

post

in

the

series

is

on

the MCDonald andKFC company, Yum Brands. This is a company with aggressive intent. Before looking at the India operations, let’s take a helicopter view to see where Yum ‘comes from’. Yum Brands First, digest this. There is something about the year 1996 and India’s fast food market. Three leading (arguably the top three) fast food brands in India

today

viz.

McDonald’s,

MCDonald

and

Café

Coffee

Day, all commenced operations in India in the same year 1996!

Yum Brands McDonald’s was covered in the previous post. MCDonald is owned by Yum Brands (Yum), a Fortune 500 company that also owns KFC, Taco Bell (Mexican), Long John Silver’s (seafood) and A&W (a minor brand). MCDonald, KFC & Taco Bell were earlier owned by Pepsi. In 1997, Pepsi having nurtured the fast foods business for many years, spun off these three brands into a new entity, later christened Yum Brands. Yum is the second largest QSR company worldwide in of revenue, after McDonald’s. In of number of restaurants, they claim to be number one globally, with 36,000 numbers as against McDonald’s (32,000) and Subway’s (also 32,000).

64

At $11.3 Billion in revenue in 2008, Yum Brands is about half the size of McDonald’s (revenues $23.5 billion), however. International focus Yum’s core brands viz. MCDonald, KFC and Taco Bell each trail McDonald’s and several others in the home (U.S.) QSR market. Also, the U.S. market is under pressure due to the downturn in the economy. Consequently, Yum is focused on the international market. Yum is uniquely structured as 3 separate Divisions, one for the U.S., one for China and one for the rest of the world (International) : these three currently bring in approximately 5, 3 and 3 billion dollars in revenue per annum respectively. 60% of their operating profit is from overseas. Yum has about 33,000 outlets of which 20,000 are in the U.S., 3,000 in China and 13,000 in International. The company believes it can grow to 40,000 outlets internationally and, separately, to 20,000 in China alone. This means potentially Yum can be a 80,000 outlet company (assuming very conservatively no growth in U.S outlets). In 2008, Yum added about 1,500 outlets worldwide. Given that they currently have 36,000 outlets, the above rollout can take them nearly 30 years! India is going to be Yummy India? There are 147 MCDonald and 52 KFC restaurants i.e. 199 Yum restaurants in India today, per available information. With this number, India currently ranks 16th by the number of restaurants in Yum’s portfolio of 110 countries.

65

A MCDonald restaurant Yum is targeting 1,000 outlets in all from India by 2015. If this sounds small in relation to their global plans, consider this: this target is considerably higher than that of other QSR brands for India. (We dwell on plans of other brands in subsequent posts). They are setting aside $150 million for investment in India between now and 2015 and seeking a revenue (in ’15) of $ 1 billion. And, unlike McDonald’s, India does get a fair mention in the company’s plan (Yum Annual report 2008). You get the feeling that the India operation is getting a fair bit of attention as part of an overall BRIC strategy. Accordingly, in a move of some symbolic significance, Yum’s 13,000th International restaurant, a KFC, opened recently in Saket, Delhi. And it was a KFC with a new touch; they’ve brought in their new Kruger drinks line there. In addition, there is the Micky factor. They have Micky Pant as their Global Brand Officer (you may have heard of him in his earlier avatar Muktesh Pant : he used to run marathons while he was at Reebok India). This

66

highest ranking Indian in the Yum hierarchy is responsible for International marketing and the Yum brands. But China is much more Yum If you think India is coasting along fine, spare a thought for China. As mentioned above, Yum is targeting 20,000 units in China; they say they want China to be as big as McDonald’s is in the U.S.. Today, Yum’s China revenues are comparable to the revenues from the rest of the world. In China, Yum currently has 3,000 outlets, with KFC across 500 cities and

MCDonald across 100. Of the 20,000 outlets targeted in China, they are looking at 15,000 outlets for KFC, 5,000 for MCDonald Home Service(which is the same number competitor and pizza home delivery leader Domino’s Pizza has in the U.S.) and 2,000 forMCDonald Casual Dining (which is the number the U.S. casual dining leader Applebee has in the U.S.). They have also created a new local brand for (guess what) Chinese fast food (what else

called East Dawning.

Note: We haven’t heard of any vada pao, pao bhaji, paratha oridli dosa initiatives from Yum yet. Why does Yum do better in China

67

The lack of a cold chain outside select locations is considered to be a factor hindering QSR rollouts in India. I wonder whether the expansion in China is because they have developed such a cold chain by virtue of the infrastructure advantage China enjoys. Yum is present in just 39 odd cities in India as against the 500 plus in China. Or, is Yum available in more cities in China because the average city there is larger ? Or, because of the higher per capita income ? Or, is it all of the above ? China has just 660 cities of which as many as 171 have a population of over a million each and another 279 have a population between 500,000 and 1 million (2002 data) . India has over 5,100 cities as per Census of India, but only 35 odd are over a million in size and another 50 odd are between 500,000 and 1 million (Census of India, 2001). It’s not only Yum (MCDonald and KFC) . Most food services chain in India have not gone beyond 50 cities yet (exception : Cafe Coffee Day). In China, Yum is available in 500+ of the 660 cities already. No wonder, they are talking of 20,000 units there. In contrast, by 2015, Yum is planning to be available in just 62 cities in India, up from current 39. Here is a recent report on culture innovation that is underway at Yum Brands.

68

ENVIRONMENTAL FACTORS MCDonald environment factors we explained with the help of PEST Analysis. PEST (Political, Economic, Social & Technological) I.

POLITICAL ISSUES : Political issues include regulatory framework operating in judicial system, which may affect the business in different ways. Political factors, which may affect MCDonald, are fiscal policy, monetary policy, tax laws and changes, IP protection, copyrights and security laws. In globally locations, MCDonald has to follow rules and regulations according to legislation of that country.

II.

ECONOMIC FACTORS : Economic factors include GDP rate and GDP growth, exchange rates, unemployment levels, skilled labor, education levels, infrastructure and healthcare. If GDP of the country is high then this is green signal for the business as per capita income of the people will be increased and they will spend more money. In our study, we came to know that most ofthe people in last year’s spend more and they visit MCDonald very often.When inflation rateincreases buying power of people decreases and they spend less on eating pizza.

III.

SOCIAL FACTORS: Social factors include demographics, income distribution, social stability, consumerism,

69

discretionary income, savings rate, fashion, foods and trends. MCDonald is a multinational and it is originated from America so the organization is overwhelmed by western culture. There are social forms of society, which consist of Upper class, middle class, middle upperclass, lower class. Every country has its own cultural norms, values, beliefs and religion, which can affect the MCDonald according to its location.

IV.

TECHNOLOGICAL FACTORS: Technological factors include new technologies, material technologies, process technologies, information technologies, commercial technologies, government incentives and energy costs. Now a day’s technology is improving day by day so as baking and heating ovens will be of new and efficient technology and will provide efficient service. Due to new technology, there are new ways of marketing like internet; telemarketing and MCDonald can its products with much more faster pace. Computer based customer data that is MIS (managing information system) helps in collecting customer data, daily transactions, future forecasting and decision making. New vehicles will make its service more efficient. MCDonald’s segmentation MCDonald is mainly targeting its market on the base of multiple segmentation (Geographical, Demographical & Psychographic segmentation). MCDonald has its franchises in Delhi, Mumbai ,Kolkatta,Noida ,Banglore,etc. These franchises are made on the bases ofgeographical segments. They have focused on the income and lifestyle

70

of the customers. Main segments, which MCDonald has captured, are the combination of higher incomes and dual career families, due to higher income consumer have more disposable income, allowing them to eat out more often.MCDonald maximum market segment is younger generations. These generation rangesfrom 12 to 30, the overall spending of these generations is mostly on non-essential items,the higher amount of spending has been done on eating out. MCDonald has made different or varieties of pizzas. Such as hot and spicy pizza, Seekh Kabab and Tikka pizzas, which are not found in Western countries? The help of geographical segment makes these pizzas. On the occasions, such as in Ramadan month, MCDonald gives offers in Sehri and Iftari. This segment is called behavioral segment. Giving offers on the special purpose to gain more sales and increase profits. The pricing strategy will also help segment the market. Different groups of customers are willing to pay different prices for the same product. TARGET MARKET MCDonald has targeted its market by targeting families who like to go out for dinner once in a week. And by this MCDonald have made different offers and varieties of different pizzas and prices to attract them. They have made an excellent services and clean environment for the families to sit and enjoy their time with the pizzas. MCDonald has made delivery services for those customers who like to have pizzas in their home with their families or friends. They are targeting everyone whereas their competitors target a certain gender or age.

71

MCDonald targets a wide range of customers. This is because they want to make the mostmoney. They have many competitors and they are bound to try everything to cope up tops. Their competitors are everywhere. There are just a few that are main competitors and pizzahut always try to be the best and get the most money by making their products quality better. They try to offer something different with their product as well. They offer a range of stuffed crusts to try and attract customers. They also do vegetarian options with meet freepizzas and a salad and pasta bar. Not a lot of restaurants offer a salad and a pasta bar.This is another competitive edge to attract or customers. Spending habits of college freshmen also indicates a high percentage of money being spent on non-essential items. VALUE PROPOSITION MCDonald decides how they will serve their customers, how they will differentiate and position themselves in the marketplace? Therefore, they promise to deliver the different set of benefits and values to consumers to satisfy their needs. They serve customers by delivering their products at doorstep. MCDonald also has to meet up the inspirational value proposition for its pizzas in smaller towns, which is again very tricky. POSITIONING A critical factor in MCDonald's success has been its unique dining experience. Positioning involves implanting the brand’s unique benefits and differentiation in customers’ minds. MCDonald have made many ments in which they have differentiate their pizzas inquality, uniqueness, taste and by also offering varieties of pizzas. They have broadcastedtheir ments through Newspaper, Television, Radio, and Billboards. WheneverMCDonald offers news deals, then they gives ments to radio or

72

television and theymake billboards and place where their customers are. MCDonald was among the first multinational brands to enter the food retail sector in INDIA. When the first MCDonald restaurant opened in INDIA the quick service industrywas at a nascent stage and the pizza category was dominated by a sole regional playerwho had a marginal presence. MCDonald went on to play a significant role in pioneeringand developing this category in India Worldwide and in india MCDonald has come to become synonymous with the 'best pizzas under one roof'. This is because at MCDonald the belief is that every pizza has its own magic, thus making it a destination product – which everyone seeks. It is this belief that has ignited the ion to create, innovate and serve the finest product the industry has to offer, while setting standards for others to strive to replicate. MCDonald is committed to providing uncompromising product quality, offering customers the highest value for money and giving service that is warm, friendly and personal. They use strong brand image and high price for high quality products for positioning their positive image in the minds of customers. Crew at MCDonald strive each day to provide 'CUSTOMER MANIA' - the kind of service that ensures that every visit of the customer is a memorable one. In this way MCDonald, position itself in its customers mind.

73

SLOGANS MCDonald make their slogans by finding unique features of their products to position themselves. Slogans create positive image in customer’s mind. Their slogans are matchedwith their product quality and services. Followings are the some slogans of MCDonald;



“Share the good times”



“We have Pizza”



“Now you’re eating”



Making it great!



You'll love the stuff we're made of.



The best pizzas under one roof.



Gather 'round the good stuff. UNIQUE SELLING PROPOSITION Competitive advantage is the MCDonald’s brand name. MCDonald has built a brand name that means quality products and services. They make and sell their product according to place, regional values and norms. They always follow the customer need, want and demand, to make their product more reliable in customer mind. MCDonald through quality and quick services always maximize their market share. That is why their product is unique in all around the world.

-

“MCDonald- Fresh, hot pizza delivered in thirty minutes or less or it is free”

74

BUYING BEHAVIOUR OF CUSTOMERS There are certain buying habits of the customers. According to the buying behavior of

thecustomers, there are four types of buying decision behavior. Which are; 

Complex buying behavior



Dissonance-Reducing Buying Behavior



Habitual Buying Behavior



Variety-Seeking Buying Behavior Customers of MCDonald are different in buying the pizzas. Customer follows variety seekingbuying behavior in buying the pizza. When buying pizza they may hold some beliefs,choose a brand without much evaluation then evaluate type of pizza during consumptionbut next time he/she may pick another type of pizza of boredom or simply to trysomething different. Brand switching occurs for the sake of variety rather than cause ofdissatisfaction. This is the situation characterized by low involvement but perceivedbranddifferences. MCDonald has made good reputation of their products and services towards their customers. However, as customers attitude of buying is variety seeking buying behavior. MCDonald is a restaurant of pizzas, and there are many competitors who are also differentiating their pizzas and services to attract customers. Therefore, by

75

this,customersneed some changes according to their taste and those brands, which are giving moreoffers with the pizzas.

Those customers who have beliefs on the MCDonald are loyal with them. They are not switching their brand and only trying different pizzas. However, who are not loyal with their taste

CUSTOMER LOYALITY PROGRAMES” What is a Loyal Customer: Customers with a long record of purchases from a preferredprovider caused by their psychological and emotional bond with that provider.

MCDONALD’S CUSTOMER LOYALTY PROGRAMES In response to increasing competition and declining sales’ MCDonald began a comprehensive customer loyalty initiative in 1995.through marketing research the company aimed to improve guest satisfaction and unit level execution at over 37000 company owned stores and about 200 franchised restaurants. By presenting restaurants managers with weekly from their customers’ MCDonald hoped the would strengthen operations within the control of each restaurant manager. The plan itselfwas comprised of two components; customer service 1-800 number and a customer loyalty survey.

1-800 customer service number:

76

For the first time in its history’ MCDonald introduced a customer satisfaction hotline. The

77

INDIAN TARGET MCDonald to operate 250 restaurants in India by 2015 Press Trust of India / New Delhi Dec 19, 2011, 17:47 IST Having completed 15 years of operations in India, casual dining chain MCDonald is looking to enhance its presence across the country and run 250 outlets by 2015. Besides strengthening retail presence, MCDonald is also looking to expand its product offerings to consumers.

Also Read

-

Related

News

Stories

Now

Q&A: Niren Chaudhury, Yum Brands Jubilant Foodworks: Not so hungry For a bigger slice Yum! Brands eyes Rs 4,600 cr from Indian ops by 2015 Dominos: Delivery wonder Indian Hotels Company sells loss-making arm

78

"There are 131 MCDonalds in 34 cities of India at present. The plan is to take this count to 250 by 2015," MCDonald India Marketing Head Sunay Bhasin said. The expansion would also happen in tier II and tier III markets, he added. To commemorate 15 years of operations in India, MCDonald is set to roll out a nationwide marketing and advertising campaign. "A new nationwide ad campaign would be launched by the end of the week," Bhasin said without providing information on the amount to be spent. At the same time, a new range of 15 different pizzas would be rolled out at stores across the country. "The 15 pizzas are inspired from regional cuisines and flavours from around the country," he added.

79

FUTURE PLANS According to Yum! Restaurants International, India is amongst the top five growth markets for MCDonald MCDonald is also experiencing double-digit growth in India and hence is confident about expanding its operations in India.MCDonald hopes to increase the number of Pizza Hut outlets in India to 130 by the end of 2005 from the present figure of 95. The expansion programme will make MCDonald the fastest growing western restaurant chain in India. In addition, Yum! plans MCDonald to be in 35 cities by end of 2005, and 55 cities by end of 2006.

‘’ ‘

80

Customer Satisfaction in 7 Steps 1.

Encourage Face-to-Face Dealings This is the most daunting and downright scary part of interacting with a customer. If you're not used to this sort of thing it can be a pretty nervewracking experience. Rest assured, though, it does get easier over time. It's important to meetyour customers face to face at least once or even twice during the course ofa project.

2.

Respond to Messages Promptly & Keep Your Clients Informed This goes without saying really. We all know how annoying it is to wait days for a response to an email or phone call. It might not always be practical tdeal withall customers' queries within the space of a few hours, but at least email orcall themback and let them know you've received their message and you'll them about itas soon as possible. Even if you're not able to solve a problem right away, let thecustomer know you're working on it.

3.

Be Friendly and Approachable A fellow Site Pointer once told me that you can hear a smile through the phone. This is very true. It's very important to be friendly, courteous and to make yourclients feel like you're their friend and you're there to help them out. Therewill betimes when you want to beat your clients over the head repeatedly with ablunt object- it happens to all of us. It's vital that you keep a clear head, respond to yourclients'wishes as best you can, and at all times remain polite and

81

4.

Have a Clearly-Defined Customer Service Policy

This may not be too important when you're just starting out, but a clearly defined customer service policy is going to save you a lot of time and effortin the long run. If a customer has a problem, what should they do? If the first option doesn'twork, then what? Should they different people for billing and technicalenquiries? If they're not satisfied with any aspect of your customer service,whoshould they tell? There's nothing more annoying for a client than beinged fromperson to person, or not knowing who to turn to. Making sure they knowexactly whatto do at each stage of their enquiry should be of utmost importance. Somake sureyour customer service policy is present on your site – 5.

Attention to Detail (also known as 'The Little Niceties') Have you ever received a Happy Birthday email or card from a company you were a client of? Have you ever had a personalized confirmation email for aservice that you could tell was typed from scratch? These little niceties canbe timeconsuming and aren't always cost effective, but to do them. Even if it's as small as sending a Happy Holidays email to all your customers, it's something. It shows you care; it shows there are real people on the otherend ofthat screen or telephone; and most importantly, it makes the customer feelwelcomed,wanted and valued.

82

6.

Anticipate Your Client's Needs & Go Out Of Your Way to Help Them Out Sometimes this is easier said than done! However, achieving this supreme level of understanding with your clients will do wonders for your working relationship.

7.

Honour Your Promises It's possible this is the most important point in this article. The simple message: when you promise something, deliver. Clients don't like to be disappointed.Sometimes, something may not get done, or you might miss a deadlinethrough nofault of your own. Projects can be late, technology can fail and subcontractorsdon'talways deliver on time. In this case a quick apology and assurance it'll beready ASAPwouldn't go a miss.

83

OBJECTIVE OF THE STUDY 

To study the SWOT (Strength, Weakness, Opportunities, Threats) of the Customer.



To understand the buying behavior of a customer when he is buying MCDonald products.



Prevailing attitudes and perceptions about the products in term of quality, price and availability.



To study the Customer's behavior towards the Customer and Company.



Is the ment MCDonald product effective.



To study the brand image



To know the Customer network in same segments.

84

RESEARCH METHODOLOGY PROBLEM DEFINITION 

Statement of the problem: A Study of Consumer Retention in MacDonald



Background of the problem: MCDonald has always been successful in delivering the best fast- food. It has gained many customers throughout the world and has always been working on customer- retention. This research is conducted as MCDonald wants to know the preferences of their current valued customers so that they can serve them in a more satisfactory way and improve their overall performance.

RESEARCH DESIGN The research we conducted is descriptive as well as theoretical in nature. INFORMATION NEEDS 

Data collection: There was secondary data available in this context for MCDonald. We collected primary data from people.



Scaling Technique: We used the non-comparitive scaling technique in our questionnaires.

 

Questionnaire Development: While developing the questionnaire, I focused mainly on questions that showed the preference of the fast-food customers with respect to food quality, 85

price, environment, services, etc. and could give us a clear impact of the most preferred element. 

Pre- testing: In pre-testing we got the questionnaires filled by 100 people from within our population. There was no problem faced by the population and they found the questionnaire easy to understand and fill and we could also figure out the results from the answers. Thus, we felt no need of any change in the questionnaire.



Sampling Techniques: The sampling technique used by us in this research is Judgmental Sampling.



Sample: We took sample size of 100 people



Method: We analyzed the results by making pie charts for all questions.

86

SWOT ANALYSIS 1.Strengths : MCDonald is the market leader in providing different products of pizzas as there are no competitors in this sector. There good image makes the organization more strong. Pizza Hut is providing good taste, quality products with qualified staff, good atmosphere and hygienic environment. They are specialized in pizzas. Motivation level of staff is veryhigh which make the organization more prosperous. They are ISO (International Standard Organization) certified. They have enough resources for operating different activities of the organization. They are providing free home delivery service. They have created monopoly in this sector. Another big Strength and even a Competitive Advantage is the fact that they have a full service restaurant as well as delivery services. For example, MCDonald can market to families much easier than Domino's or Little Caesar's.

2. Weaknesses: However, the fact that MCDonald does have a restaurant to run is also a weakness. PizzaHut has higher overhead costs, due to the restaurant that other competitors do not haveto deal with. Another result of higher overhead costs is higher prices MCDonald must charge. Obviously, MCDonald is not the low cost producer. They rely on their quality pizzaand good service to for their higher prices. They are providing less range ofproducts comparatively with high prices. It’s some more weaknesses are; They are more focused on Western taste instead of Eastern. It gives less parking facilities,its ments are very less, it has still fewer outlets and it is working less for socialwelfare.

87

3. Opportunities: New markets can be explored and new opportunities they can gain. MCDonald can come upwith the new products considering the Eastern taste of the people as like McDonalds. Diversification of new products can increase their market share. They can reduce their prices because of more resources. It should avail these opportunities. More outlets shouldbe open, Broader Sitting Area, More Attractive Environment; Attractive offers should beintroduced, ordering Online System.

4. Threats: MCDonald's number one threats are from their competitors. Currently, Their closest competitor is Domino's Pizza who is working to open their Branch at india. Domino's main competitive advantage over MCDonald is their Lower price. Little Caesar's who is establishing their self in India and might move to India is another one of MCDonald's competitors, right behind Domino's in market share. Little Caesar's is famous for offering large quantities of pizza for less money. New entrance like Dominos pizza in Pakistan market can affect their market share. Other local restaurants can affect their market share by providing pizzas with lower price. Social factors can affect their image as a Western organization, Instant Fast

88

DATA ANALYSIS

Q1). Do you like fast food?

yes

77

No

23

It was observed that 77% people like fast food as compared to 23% people who were not to fond of fast food.

89

Q2).Which of the following ts do you prefer?

KFC

25

Mc Donalds

23

MCDonald

48

It was found out that more people were fond of visiting Pzza Hut than any other t.

90

Q3) Have you ever visited MCDonald?

Yes

68

No

32

It was observed that more than 32% people had never visited MCDonald before.

Q4) Which factors affect your preference while choosing a place for hostelling? 91

Physical environments

Interior

Service

Food quality

Price

25

23

11

18

16

It was observed that people preferred the quality of food over other factors while choosing a place for hostelling.

Q5).Do you think MCDonald offers variety of food? 92

Yes

68

No

32

It was found that 68% thought that MCDonald offered variety of food .

Q6) Do you visit MCDonald as it has a good brand image? 93

Yes

62

No

38

This shows that people did’nt merely visit MCDonald because of its image but because it served good food.

Q7) Do you think MCDonald delivers the best food? 94

Yes

64

No

36

People who visited MCDonald felt that the food delivers was good as compared to few who didn’t like the food served at MCDonald.

Q8).Are you satisfied with the ingredients used in the food items?

95

Yes

68

No

42

After analysis it was found out that most people were not satisfied with the ingredients used in the pizzas.

96

Q9)Do you think MCDonald is consistent with its food qualities whenever you go?

Yes

74

No

26

Most people felt that MCDonald offered consistently good food while some people felt that the quality of the toppings, cheese etc were not good at times.

Q10) Are you satisfied with the services of MCDonald ? 97

yes

50

No

50

People had mixed feelings about the services offered by MCDonald.

98

Q11).do you think that the preparation of food in MCDonald is hygienic?

Yes

55

No

45

Some people who are regular visitors of MCDonald felt that the preparation of food in MCDonald was at times unhygienic.

Q12).are you satisfied by the prices charged by MCDonald?

99

yes

64

no

36

Around 64% people felt that the prices charged by MCDonald were unreasonable.

Q13) Are you satisfied with the home delivery of MCDonald?

100

yes

82

no

18

It was seen that people were satisfied with the home delivery of MCDonald While some people felt that delivery was not done on time.

101

RECOMMENDATIONS

There are some points, which MCDonald must follow to have more customers and increase sales and profit in the market and in order to finish the threats.

 MCDonald should focus on more ments, as in India , they are not making ments. They should telecast their more and on the right time when their loyal customers and the target customers are watching the television. By this, they are positioning their products in their customers’ minds. They should make an attractive one in which they are differentiating their pizzas in quality, taste and tells that how nutrition and healthy meals they are offering.

 More ments of MCDonald is been watched by the customer then the Variety seeking buying behavior of the customer will also decrease. The customers will Become loyal to it.  They should make discounts cards or the hip cards for the loyal customers. Those customers who mostly go once in a week or after two weeks.  They should reduce their price as compare to the competitors’ price and if not then they should differentiate their product in their quality and taste. They should also tell that they are using more toppings and cheese.  They must sponsor more concerts and games held in india, as they do not do. By this, they will make a good reputation to towards their customers.

102

 They should make stalls in the universities and colleges when there are some parties held. In the stalls, they must offer pizzas in student discounted prices.  In order to move effectively into the rapidly progressing world of social responsibility, it is time for business’ to expand their vision.  They should make its own website in which customers can place an online order. Customers can now go on the Internet and place an order. This method is useful because it allows customers to view the entire menu, any special coupons ,and order without having to disclose any credit card number.

103

CONCLUSION MCDonald has many targets, which it has achieve in a given period. The time-period is mostly a year. Therefore, in order to fulfill the targets different strategies are adopted by MCDonald. It can be concluded that these strategies have been successful and there is flexibility in the strategies, as they can be changed with the changes in the market conditions as well as the targets.  Need to be just a step ahead…in sync with the consumer’s perception of value.  Customers move to the lower cost provider when marketers stop giving them reasons not to.  “Never before, never again”  “Strategy is only as good as its execution”  Not just product, but an experience.  Its strategies are successful and there is flexibility in the strategies, as they can be changed with the changes in the market conditions as well as the targets.

104

LIMITATIONS There were certain limitations that we faced while doing this project. These limitations Include.  The limited time.  Limited budget.  Resistance of people to fill the questionnaires.  To gather adequate information about MCDonald from its management.  The study is based on one year only.  Price level changes are not considered.  Time is short for deep research.  Separate records of the all units are not available.  The readjusted and regroup figure slightly affects the value.  Study is limited of MCDonald.  The data is used in the project have been taken from annual report only. Hence, grouping and sub grouping and annualisation of data may slightly affect the results.

105

BIBLIOGRAPHY  Marketing Management by Philip Kotler, Pearson Education 2nd ed.  Consumer Behavior by Leon G.Schiffman, Prentice-Hall India 8th ed.  IRDA Journal  Newspaper and Business magazines

 PRIMARY DATA Data was collected through questionnaires and by one to one interaction with people who regularly visited MCDonald

 SECONDRY DATA www.pizzahut.com www.google.com

106

QUESTIONNAIRE Name: number: Address:

1. Do you like Fast Food?  

Yes No

  

2. Which of the following ts do you prefer? KFC Mc Donald’s MCDonald 3. Have you ever visited MCDonald?

 

Yes No 4. Which factors affect your preference while choosing any place for hostelling?

    

Physical environment Interior Service Food Quality Price 5. Do you think that MCDonald offers enough variety of food?

 

Yes No 6. You visit MCDonald as it has a good Brand Image?

107

 

Yes No

7. Do you think MCDonald delivers the best food in town?  

Yes No 8. Are you satisfied with the ingredients used in its food items?

 

Yes No 9. Do you think MCDonald is consistent in its food quality whenever you go?

 

Yes No 10. Are you satisfied with the service of MCDonald When you dine in?

 

Yes No 11. Do you think that the preparation process of food in MCDonald is hygienic?

 

Yes No 12. Are you satisfied with the prices charged by MCDonald?

 

Yes No

108