Presentation on

MAC DONALD’s

Presented by:-
Saurabh Pachauri
MMS-II 1534
MacDonald’s Story
 McDonald’s is the world’s largest fast food chain
serving 47 million customers daily.

 McDonald’s is now one of the most valuable brands

globally, worth more than $25 billion.

 The Golden Arches and its mascot Ronald McDonald

have gained universal recognition.
 MacDonald’s opened in India in the year 1996.India
was the 95th country.

 McDonald’s India has a joint venture with Connaught

Plaza Restaurants and Hard Castle Restaurants.

 Apart from opening outlets in the major metros, the

company is now expanding to Tier 2 cities like Pune
and Jaipur.
 McDonald’s focuses not only on delivering sales for
the immediate present, but also protecting its long
term brand reputation.

 The company follows a comprehensive framework of

training and monitoring of its franchises to ensure that
they adhere to the Quality, Service, Cleanliness and
Value propositions offered by the company to its
customers.
MacDonald’s Strategy
 McDonald’s has continually adapted to the customer’s
tastes, value systems, lifestyle, language and
perception.

 Globally McDonald’s was known for its hamburgers,

beef and pork burgers. Most Indians are barred by
religion not to consume beef or pork.

 So McDonald’s came up with chicken, lamb and fish

burgers to suite the Indian palate.
 India has a huge population of vegetarians. To cater to
this customer segment, the company came up with a
completely new line of vegetarian items like McVeggie
burger and McAlooTikki.

 The separation of vegetarian and non-vegetarian

sections is maintained throughout the various stages.
Segmentation, Targeting and
Positioning
 Kids reign supreme in FMCG purchase related to food
products.

 So to attract children McDonalds has Happy Meal

with which toys ranging from hot wheels to various
Walt Disney characters are given (the latest in this
range is the toys of the cartoon BEN10)
 To target the teenagers, McDonald’s has priced
several products aggressively, keeping in mind the
price sensitivity of this target customer.

 In addition, facilities like Wi-Fi are also provided

to attract students to the outlets like the one at
Vile Parle in Mumbai.
“Mc Donald’s mein hai kuch baat” projects
McDonald’s as a place for the whole family to
enjoy.

When McDonald’s entered in India it was

mainly perceived as targeting the urban upper
class people. Today it positions itself as an
affordable place to eat without compromising
on the quality of food, service and hygiene.
Customer Perception and
Customer Expectation
Customer perception is a key factor affecting a
product’s success.

Many potentially revolutionary products have

failed simply because of their inability to build
a healthy perception about themselves in the
customers’ minds.

McDonalds being an internationally renowned

brand brings with it certain expectations for
the customers.
Target Segment-What is McDonald’s for
me?

A Family with children- A treat to children, a

fun place to be for the children.

Urban customer on the move- Great taste,

quick service without affecting the work
schedule.

Teenager- Hangout with friends, but keep it

affordable
Customers expect it to be an ambient, hygienic
and a little sophisticated brand that respects
their values. The customer’s expect the brand
to enhance their self-image.

Fulfilling some of the customer expectations

like a broader product variety provide
McDonald’s a great scope for improvement.
MacDonald’s Decline
MacDonald's Beef Fries Controversy. There
was a lawsuit filed in court that the company
had, for over a decade, duped vegetarian
customers into eating French fries that
contained beef extracts.

The lawsuit followed a spate of media reports

detailing how the French fries served at
McDonald's were falsely promoted as being
'100% vegetarian.'
Although McDonald's initially declined to
comment on the issue, the company issued a
'conditional apology,' admitting to using beef
flavoring in the fries(in US only).

The furor over the matter seemed to be

settling down, when to McDonald's horror,
some of its restaurants in India were
vandalized.
Activists also staged protests in front of
McDonald's restaurants in south Mumbai and
Thane. Mobs ransacked the outlet at Thane,
broke the glass panes and smeared the
McDonald's mascot Ronald with cow dung.

Company officials estimated the loss to the

outlet at Rs 2 million. Officials at McDonald's
India quickly announced that the vegetarian
products served in India did not have any non-
vegetarian content
The courtroom battle had entered the 11th
month when McDonald's announced that it
would issue a new apology and pay $ 10
million to vegetarians and religious groups in a
proposed settlement of all the lawsuits in
March 2005.
MacDonald’s New Strategy
How MacDonald’s revitalised Fries after the
Controversy.

The French Fries have been an important part

of the McDonalds menu worldwide. But now it
was in the stage of decline and was actually not
generating proper return. In an attempt to
revitalize it, a new variant was introduced
namely Shake Shake Fries.
This is being served with chatpata spice mix
which has resulted in increase in the sales of
French Fries and has elevated it from to the
decline stage. This is used to delay the decline
of a well established product which has the
potential of generating further revenue.
Rolling out McBreakfast across all outlets – In
India, the company has recently launched its
entry into the breakfast food category. This is
now launched on a pilot basis on select stores.
In Mumbai, it available at the Vile Parle outlet.
The company views this category as a key
growth driver in future.
Marketing in a services industry is becoming
an increasingly complex challenge.
McDonald’s has excelled due to its ability to
successfully integrate the customer’s
perspective in its products and operations in a
comprehensive manner.
The revamped menu in India is an example of
McDonald’s strategy of integrating the
customer’s perspective in its products.
Some of the most famous marketing
campaigns of McDonald’s are:
“You Deserve a break today, so get up and get
away- To McDonald’s”
 “Aap ke zamane mein ,baap ke zamane ke
daam”.
“I’m loving it”.
McDonald’s came up with a very catchy punch
line “Aap ke zamane mein ,baap ke zamane ke
daam”. This was to attract the middle and lower
class consumers and the effect can clearly be
seen in the consumer base McDonalds has now.

McDonalds also Introduced Free Home Delivery

Services to compete against Pizza outlets.
THANK YOU ….