INTRODUCTION OF MARKETING STRATEGY

Marketing strategy is very much important for developing any of the

business. Without it, the effort of the business to attract customer is
random and very inefficient. The main focus of your strategy must make
sure that your product should fulfill the demands of the consumers and as
well as it maintains the long-term relationship with those consumers. To
achieve this, you will have to initiate flexible strategy that responds to
change in customer demand and perception. It may also give brand name
to your product which will help you to run your business in new markets
smooth and efficient manner. First of all the main purpose of your
marketing strategy should be to identify the weather the target customers
are satisfied with your product and services of your business.

Once you have created and implemented your strategy, try to identify the
feed from you customer and if any changes or improvement is required
apply it for the maximum satisfaction of customers

This helps you to identify that, where your strategy needs to be improved
and how it can be developed, so that it can be implemented for effective
action. Before applying any strategy in the business proper planning
programs must be organized within the members of the organization.

WHAT IS MARKETING?

Marketing is the activity, set of institutions, and processes for creating,

communicating, delivering, and exchanging offerings that have value for
customers, clients, partners, and society at large."

1|Pag
e
Marketing

2|Pag
e
From the above definition we are able to understand that a successful
marketing deals with satisfaction of both the parties. The definition
basically explains that there is a simple process i.e. is selling something
to somebody however, the definition conveys that an exchange of goods
and services without any barter system and having common currencies,
that exchange is called a sale. So while achieving the goals of the
marketing by selling, it is not compulsory that both the parties should
agreed upon the transaction. Satisfaction of both parties is a hided in the
exchange relationship. Marketing must understand the product, ideas
and services along with the "Needs & Wants" of the consumers.
Marketing must not only understand this equation but also establish the
policy to maintain balance between both the sides, by implementing
marketing strategy.

MEANING OF MARKETING STRATEGY

A Marketing strategy defines and describes the objectives or planning

through which you are going to satisfy your consumer needs in the
selected target market. It does not involve written work but, it includes
communication between different departments of the business enterprise
for example: sales department, managers, executives etc.

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

increase the growth and development of the business. Normally strategy
deals with the manner in which your organization plan to achieve the
consumer satisfaction and maximize the profit.

DEFINITION OF MARKETING STRATEGY

 Marketing Strategy is a set of specific ideas and actions that outline
and guide decisions on the best or chosen way to create, distribute,
promote, and price a product or service (manage the marketing mix
variables).
 A marketing strategy is a process that can allow an organization to
concentrate its limited resources on the greatest opportunities to
increase sales and achieve a sustainable competitive advantage.

Marketing strategy is a process that can allow an organization to

concentrate its limited resources on the greatest opportunities to increase
sales and achieve a sustainable competitive advantage. A marketing
strategy should be centered on the key concept that customer satisfaction
is the main goal.

Business Advantages

identifies needs and wants of consumers

determines demand for product
aids in design of products that fulfill consumers needs
outlines measures for generating the cash for daily operation, to repay
debts and to turn a profit
identifies competitors and analyzes your product's or firm's competitive
advantage
identifies new product areas
identifies new and/or potential customers
allows for test to see if strategies are giving the desired results

Business Disadvantages

identifies weaknesses in your business skills

leads to faulty marketing decisions based on improperly analyzed data
identifies weaknesses in your overall business plan
Marketing
strategies of
McDonalds
ACTUAL FACTS ABOUT MCDONALDS COFFEE CASE
On February 1992 the headlines of news paper hits with a McDonalds
coffee case news. The case was about Stella Lie beck of Albuquerque,
New Mexico, was in the passenger seat of her grandson's car when she
was severely burned by McDonalds' coffee in February 1992. Lie beck
was 79 at the time, ordered coffee that was served in a Styrofoam cup at
the drive through window of a local McDonalds. After receiving the order,
the grandson pulled his car forward and Stopped momentarily so that Lie
beck could add cream and sugar to her Coffee. Lie beck placed the cup
between her knees and attempted to remove the plastic lid from the cup.
As she removed the lid, the entire contents of the cup spilled into her lap.
The sweatpants she was wearing had absorbed the coffee and held it
next to her skin. A surgeon determined that Lie beck suffered full
Thickness burns over 6% of her body, Including her inner thighs,
perineum, buttocks, and genital and groin areas. She was hospitalized
for eight days, during which time she underwent skin grafting. Lie beck,
who also underwent debridement treatments, sought to settle her claim
for $20,000, but McDonalds refused.

Till today no one knows about their final ending of the case. The parties
eventually entered into a secret settlement which has never been
revealed to the public.

HISTORY OF MCDONALDS
The story of McDonalds was started in1940, as a fast food restaurant by
two brothers named Richard and Maurice McDonald in San Bernardino,
California in US. The name of restaurant was McDonalds Hamburgers,
by mid-1950s their restaurant revenue had reached $350000.Raymond
Kroc, the distributor for milk shake machines expressed interest in their
business and finalized the deal for franchising with both the brothers. He
established a franchising company called McDonald system
incorporation. In 1955 he became the founder of McDonalds and bought
out the McDonald brothers share for $2.7 million and changed the name
of the company to McDonalds corporation. Kroc proved himself as a
pioneer who revolutionized the American restaurant industry. Today
McDonalds is the California worlds largest fast food chain serving 47
million customers daily. McDonalds is now one of the most valuable
brands globally, worth more than $25 billion. Though the company has
roots in the US, McDonalds today has become an ACCEPTED CITIZEN
OF THE WORLD.

MCDONALDS STARTS IN INDIA

McDonalds entered India in 1996.The first McDonalds restaurant was

th
opened on October 13 at Basant Lok in Vasant Vihar. McDonalds in
India is a 50-50 joint venture between Connaught Plaza Restaurants and
Hard Castle Restaurants. Which are owned and managed by Vikram
Bakshi and Amit Jitia respectively Connaught Plaza Restaurants operates
in North India whereas Hard Castle Restaurants operates in Western
India. After opening their outlets in various metro cities, the company is
now trying to expand in cities like Pune and Jaipur also.but, the Indian
consumers avoid burgers made from beef and pork which is taboo
according to their religions. So in order to evade this problem the Indian
menus of McDonalds was Indianised and specifically design in such
manner that it can boost its products to Indian consumers, the menu
includes chicken burgers, veg burgers, veg pizzas, happy meal for
childrens, beverages and deserts. Today there are 79 outlets in north-
east India and more than 53 outlets in south-west India.

MCDONALDS FRANCHISE MODEL

RAYMOND KROC

VIKRAM BAKSHI AMIT JATIA

MISSION STATEMENT

"McDonald's vision is to be the world's best quick service restaurant

experience. Being the best means providing outstanding quality, service,
cleanliness, and value, so that we make every customer in every
restaurant smile."

MARKETING STRATEGIES OF MCDONALDS

BUSINESS STRATEGY

FRANCHISE MODLE As per franchise model of McDonald Only 15% of

the total number of restaurants are owned by the Company. The
remaining 85% is operated by franchises. The company follows all the
framework of training and monitoring of its franchises to ensure that they
achieve good QUALITY SERVICE,CLEANLINESS AND VALUE FOR
THE MONEY offered by the company to its customers.

PRODUCT CONSISTENCY- By developing a sophisticated supplier

networked operation and distribution system, the company has been able
to achieve consistent product taste and quality across the nations of the
world.

ACT LIKE RETAILER THINK LIKE A BRAND- McDonalds focuses not

only on delivering sales for the immediate present, but also protecting its
long term brand reputation.

STRATEGY AS PER INDIAN MARKET

REENGINEERING THE MENU-McDonalds thinks according to the
customers tastes, value systems, lifestyle, language and perception.
Globally McDonalds was famous for its hamburgers which are prepared
from beef and pork burgers. But, most Indians religion does not allow
them to consume beef or pork. So in order to satisfy demand as per
Indian preference, McDonalds came up with chicken, lamb and fish
burgers to suite the Indian diet.

THE VEGITERIAN CUSTOMER-India has a huge population of

vegetarians. To satisfy this customers demand, the company came up
with a completely new menu of vegetarian items like McVeggie burger
and McAlooTikki. The separation of vegetarian and non-vegetarian
sections is maintained throughout the various stages.

EXAMPLE OF VEG BURGERS:

MCVEGGIE MCALOOTIKKI

SEGMENTATION, TARGETING AND POSITIONING

McDonalds uses demographic segmentation strategy with age as the

parameter. The main target segments are children, youth and the young
urban family. If they take children into consideration, children are more
attracted towards toys and delicious meals including todays youth prefer
such places for their entertainment and the urban families select
McDonalds on various occasion like birthday party, treat to their children
etc.
As shown in the above diagram, kids are on the top most level in FMCG
purchase related to food products. So to attract childrens McDonalds has
Happy Meal in which they gift one toy on each happy meal, there are toys
ranging from hot wheels to various Walt Disney characters. Example of
the latest range is the toys of the movie Madagascar.

For this, they have a tie-up with Walt Disney. At several outlets, it also
provides special facilities like PLAYING PLACE where children can play
arcade games, air hockey, etc.

This strategy is targeting in making McDonalds a fun place where you

can enjoy both playing and eating. This also helps McDonalds to attract
the young urban families who wanted to spend some quality time, while
their children can enjoy every movement of McDonalds. To target the
teenagers and young youth, McDonalds 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, example of such outlet is of a Vile Parle situated in Mumbai.

MCDONALDS MEIN HAI KUCH BAAT projects McDonalds as a place

for the entire family to enjoy. When McDonalds entered in India it was
10 | P a g
e
mainly targeting the urban upper class people. But, today it had
positioned itself as an affordable place to eat without compromising on
the quality of food, service and hygiene. The outlet atmosphere and mild

11 | P a g
e
background music highlight the comfort that McDonalds promises in
slogans like YOU DESERVE A BREAK TODAY, FEED YOUR INNER
CHILD. This commitment of quality of food and service in a clean,
hygienic and relaxing atmosphere has ensured that McDonalds
maintains a positive relationship with their customers.

TOYS FOR CHILDREN WITH HAPPY MEAL

MCDONALDS MARKETING MIX (5PS) STRATEGY

After analyzing the market, finding the key factor, target segment and
understanding the market demand, every company needs to come up
with an offers or such type of plan, that speed up the growth of the
company. For which McDonalds uses 5ps of marketing mix which are as
follows:

1. Product
2. Place
3. Price
4. Promotion
5. People
PRODUCT:

Product includes that, how the company should design, manufacture the
product so that it enhance the customer experience?

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

customers. McDonalds includes certain aspects of its product such as
packaging, desirability, looks etc. This consists of both tangible and non-
tangible aspects of the product and services.

McDonalds has purposely kept its product depth and product width
limited. McDonalds had first studied the behavior of the Indian customer
and provided a totally different menu as compared to its menu offered in
International market. It removed pork, beef and mutton burgers from the
menu. India is the only country where McDonalds serve vegetarian menu.
Even the sauces and cheese used in India are 100% vegetarian.
McDonalds continuously innovates its products according to the changing
preferences and tastes of its customers. The recent example is the
introduction of the Chicken Maharaja Mac and latest introduction of
chicken style is Chicken Mcnuggets.
McDonalds brings best product of quality and of best features as per the
preference and demand of the target market.

PLACE:

The place mainly consists of distribution channels and outlets of the

company. It is considered as very important because the product must be
available to the customer at the right place, at the right time and in the
right quantity. In U.S.A nearly 50% of outlets are situated within the
distance of 3 minutes.

There are certain degree of fun and happiness that McDonalds provides
to its customers. It provides value position based on the needs of the
customer. McDonalds offers proper hygienic atmosphere, good abidance
and better services.

Now McDonalds have also started offering internet facilities at their

outlets, along with music system through radio, not the normal music but
the music which is preferred by young generation in order to attract them.

There are also games for children the one example is air hockey.
Children play games till the time there parents spend quality time in
McDonalds.
PRICE:

Pricing strategy is most important aspect of Marketing Mix. It includes

price list, if any discount facility available or payment facility available. It
should also take into consideration the possible reaction from its
competitors regarding the pricing. Pricing is very much necessary
because it is this part, which decides revenue for the business unit.

All the other three are the expenses incurred in the business. The price
needs to take demand and supply equation into consideration by
analyzing the pricing demand as per Indian market.

McDonalds came up with a very grasping punch line Aap ke zamane

mein ,baap ke zamane ke daam. This pricing strategy was founded to
attract middle class and lower class people and the effect can clearly be
seen in the consumer base that McDonalds has now.

McDonalds has certain value pricing and bundling strategies such as

happy meal, combo meal, family meal, happy price menu etc to increase
overall sales of the product.
PROMOTION:

The promotional activities adopted by the McDonald helps to

communicate efficiently with the target customers. The diagram gives
idea about the promotion strategy of McDonalds. Application of above
mentioned Communication Mix describes the cost that is feasible as per
the consumers. Some of the most famous marketing campaigns of
McDonalds are:

You Deserve a break today, so get up and get away- To McDonalds

Aap ke zamane mein ,baap ke zamane ke daam.

Food, Folks, and Fun

Im loving it.

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

public relations, and direct marketing and became worlds largest leading
Burger Empire. These five promotion tools are used by McDonalds to
integrate marketing communication program which allows McDonalds to
access the communication channels clearly, consistently and easily
transfers messages and product to the target audiences.

SETTING THE PROMOTION MIX

An Advertisement is targeted to attract the masses it

reaches to large number of people at a time. Advertising is one of the
most important tools for promotion which had various ways of
advertisement in that advertisement through billboards and media are
often used by any of the business enterprise. Consumers mostly perceive
goods which are advertised goods, as they assume it is more rightful.

Due to distinct features of advertisement McDonalds also hold the hand

of Advertising. There are three main objectives of advertising for
McDonalds are to make people aware of an item, feel positive about it
and remember it. The right message has to be communicated to the right
people through the right media. McDonalds does its promotion through
television, hoardings and bus shelters.
They use print ads and the television programmes are also an important
marketing medium for promotion.

Personal selling is most effective tool for building

buyers preference, convenience and actions. Personal interaction allows
knowing for feedback and adjustments if required. If the organization had
a good Relationship with Buyers they are more attentive towards personal
selling.

In personal selling McDonalds employees working in different outlets are

the best example of personal interaction, the employees are directly
serving the customers so, and the face to face communication is easily
possible. In the McDonalds outlet there are such staff which are
appointed for personal selling they are the one who perform the activities
regarding selling up of goods to customers.

sales promotion activity consist of promoting the

business unit through organizing various contest, programmes, functions,
distribution of free discounts coupons etc that attracts attention of the
customers, Also offers strong purchase incentives, dramatizes offers,
boosts sagging sales Stimulates quick response; Short-lived; Not
effective at building long-term brand preferences.
McDonalds organizes several sales promoting contest and programmes
in different retail markets and outlets in which they distributes free
discounts coupons. The statue of Mascot McDonalds is always there for
any occasions that are also one of the logo of McDonalds.
 Highly credible; Very believable; Many forms: news
stories, news features, events and sponsorships, etc.; Reaches many
prospects missed by means of other forms of promotion; Dramatizes
company or product; Often the most under used element in the
promotional mix; Relatively inexpensive (certainly not 'free' as many
people think--there are costs involved)

Public Relations are also an important part of the McDonald's marketing

strategy. The restaurant employees play a huge role in interacting with
the public. On a day-to-day basis the employees commit themselves to
customers and the customers' feelings toward the brand. McDonald's
feels that before they communicate with their customers they need to be
aware of what their competitors are communicating, so they can create a
beneficial difference between themselves and the competitors.

Many forms: Telephone marketing, direct mail, online

marketing, etc.; Four distinctive characteristics: Nonpublic, Immediate,
Customized, Interactive; Well-suited to highly-targeted marketing efforts.

Direct marketing is also one of the efficient tools for promotion. The
McDonalds uses tool in the home delivery services in which they directly
serve the order to their home. Also they have a websites which are more
in preference for direct marketing in that they usually mentioned all the
new offers along with the contact number of your nearby outlets.

PEOPLE:
McDonalds understands the importance of both its employees and its
customers. It understands the fact that a happy employee can serve well
and result in a happy customer. McDonald continuously does Internal
Marketing because if the internal marketing is effective it will automatically
lead to in the success of external marketing.

Internal marketing includes hiring, training and motivating employees. In

this way they can easily serve customers and the result will be the smiling
faces of the customers. The level of importance has to be placed in the
following order (the more important people are at the top):

1. Customers
2. Front line employees
3. Middle level managers
4. Front line managers

The punch line Im loving it is an attempt to show that the employees are
loving their work at McDonalds and will love to serve the customers.
CO-BRANDING STRATEGY
Co-branding strategy is also one of the beneficial instrument for boosting
the business and providing different the same things in different manner.
In fact co-branding means having a tie ups with another firm and serving
the customer with both the products. It helps in making profit for both the
business enterprise as well as to increase their sales and growth of
organization.
The two different brands enter into co-brand through certain contracts or
agreement and as per the agreement they bifurcates their earnings from
their brands. There are different examples of co-branding strategy of
McDonalds which are as follows.

COCA-COLA

Coke is one soft drink brand that had tie up with McDonalds since past
many years. In McDonalds the coke is the best beverage in cold drinks
which are served to the customers along with different menus of the
McDonalds for example happy meal, happy price menu etc. As coke is
preferred by childrens even their parents as well as the young youths.
Therefore by keeping in mind the consumer wants they came up with
Coca-cola. In fact this co-brand of McDonalds is initiated to increase the
volume of sales of the both the business enterprise.
And of course this co-branding strategy has encouraged both the
business in achieving the successful returns of customers satisfaction.

On April 27, 2009 The Coca-Cola Company had announced a

'refreshed' line up of fountain and bottle beverages that will be added to
McDonald's U.S. restaurants, beginning this year. This effort -- part of a
larger beverage strategy -- will provide McDonald's customers even more

20 | P a g
e
beverage choices and meet customers' changing taste preferences and
desire for more suitable, convenient beverage options.

COCA-COLA AND MCDONALDS

21 | P a g
e
WALT DISNEY

A Parade of Disney Happy Meal Toys.

McDonald's will introduce a collection of 100 exclusive Happy Meal toys

as they are inspired by Disney's admired collection of dramatic, video and
television characters. Representing more than 40 Disney films, the
McDonald's premiums include a mix of new and classic Disney
characters, allowing kids and parents of all ages to recall their favorite
Disney memories.

Each Happy Meal premium is fully decorated and is featured on a

memorial base, which includes the character's debut date, character's
name and the Walt Disney World "100 Years of Magic" logo.

The McDonald's Happy Meal promotion featuring the Walt Disney World
"100 Years of Magic" celebration is a historical collection of Disney
favorites, from classic characters like Mickey Mouse, Dumbo, Cinderella,
and Mary Poppins to the newer innovations, including: Ariel, Aladdin,
Bianca, Pocahontas, Tarzan, Jesse and Hercules.
One toy is included with each Happy Meal and can be purchased at
participating McDonald's restaurants, while supplies last.But,
unfortunately the Walt Disney had end the relationship with McDonalds
due to some genuine reasons. Thus Walt Disney is considered as X-co-
brand of McDonalds.

WALT DISNEY AND MCDONALDS

BARBIE TOYS

McDonald's Barbie Toys have been included with Happy Meals

repeatedly since the Happy Meal has been in existence. Over the last
thirty years, Barbie has been one of the most popular toys in a
McDonalds Happy Meal.

Barbie Happy Meal Toys have taken the form of a variety of Barbie doll
favorites. These toys have become a highly sought after segment for
collectors of both Barbies and McDonald's toys.

McDonald's Barbie Toys comes in eight collectible characters in 1994,

including Bicycling Barbie, Jewel and Glitter Shani, Camp Barbie, and
Camp Teresa.
Each Barbie miniature was 4 and inches tall. Since then, the Barbie
and Friends dolls have been collectible Happy Meals toys in 1996, 2004,
2005 and 2007, to just name a few. If you missed any of the McDonald's
Barbie toys that you may need to buy for your collection of dolls, you will
find them for sale on eBay.

BARBIE AND MCDONALDS

CADBURY
McDonalds have included Cadbury in the beverages prepared with
Cadbury and creamy milk shake mostly loved by children. England has
combined two favorite things that are Cadbury and crme eggs.
Now McDonalds is offering a Cadbury Crme Egg McFlurry. It is tasty
and rich also it is provides some quantity of protein and vitamins as it is
made from eggs and milk, A cold crme eggs with the vanilla ice cream,
mix in a sauce that looks like the yellow yolk, and add in delicious
chocolate bits.
The tasteful McFlurry have also worked in anticipating the taste of the
customer. Therefore, it is considered as one of the most preferring
beverages in the menus of McDonalds.
CADBURY AND MCDONALDS
HOT WHEELS

The History of McDonald's and Hot Wheels die-cast cars: McDonald's has
attempted to develop promotions for children, since 1961 with small
related plastic toys, in their Happy Meals. The first models of cars
distributed for McDonald's started in 1983, using the Hot Wheels models
of the normal line and followed all the way through 1990. In 1991
McDonald's found another way to distribute the Hot Wheels in their
Happy Meals for the first time.

Some of these were Hot Wheels by Collector Number and were also
placed in a factory plastic baggie for the first time. Since then, some
annual promotions related the models of cars had been made. They had
enclosed models like, Hot Wheels, Matchbox, Stompers 4X4, Tonka and
Bigfoot toys.

HOT WHEELS AND MCDONALDS

MCDONALDS TIE UP WITH HINDUSTAN AND BHARAT
PETROLEUM PERTROL PUMPS
The strategy behind opening their outlets near petrol pumps is that they
can serve their products even on the highways. McDonalds already has
14 outlets on national highways and they are planning to open 50% of
their stores in the coming year on the highways.

In order to achieve that, they tie up with oil marketing companies like
Hindustan petroleum and Bharat petroleum to open on revenue-sharing
model.

The reason behind starting their outlets on highways is to serve those

customers who perform their day to day activities through highways.
People mostly prefer food stores on highways for dinner purpose, their
will hardly some people who go for a breakfast. So, idea of McDonalds to
start on highways is that they can offer even dinner as well as their
existing fast food items.
ADVERTISING

Advertising - Advertising is any paid form of non-person presentation and

promotion of ideas, goods, or services by an identified sponsor. There are
three goals of advertising. These goals are to:

1. Inform
2. Persuade and
3. Remind.
The major media for advertising are as follows: Newspapers, Television,
Direct mail, Radio, Magazines, Internet, Outdoor (billboards, blimps, etc.),
Yellow pages, Newsletters, Brochures, and Telephone.

The traditional conceptual model for creating any advertising or marketing

communications message is the AIDA Model: get Attention, hold Interest,
arouse Desire, and then obtain Action.

ADVERTISING STRATEGY

There have been many McDonald's advertising strategy and slogans over
the years. McDonalds is one of the most widespread fast food
advertisers. McDonald's Canada's corporate website says that the
business campaigns have always focused on the "overall McDonald's
experience", rather than just product. The purpose of the image has
always been "portraying warmth and a real slice of everyday life." Its TV
ads, showing various people engaging in popular activities, usually reflect
the season and time period. Finally, they have never in their advertising
history used negative or comparison ads pertaining to any of their
competitors; the ads have always focused only on McDonalds alone.
McDonalds 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.
Television has always played a central role in the company's advertising
strategy.

Today, McDonald's has used 23 different slogans in United States

advertising, as well as a few other slogans for select countries and
regions because slogans is also considered as important factor in
advertising strategy.

SLOGANS
US

Lets eat out! (1960-1965)

Look for the Golden Arches! (1965-1967)

The closest thing to home (1966-1969)
McDonald's is your kind of place (1967-1971)
You deserve a break today (1971-1975)
Enjoy the best food at McDonald's (1973, concurrent with 1971 slogan)
We do it all for you (also known as you, you're the one) (1975-1979)
Nobody can do it like McDonald's can (1979-1980)
You deserve a break today (1980-1983)

Nobody makes your day like McDonald's can (1980-1983)

We cook it all for you at McDonald's (1982, concurrent with 1980 slogans)
McDonald's and you (1983-1984)
It's a good time for the great taste of McDonald's (1984-1988)
It's Mac Tonight (1985, Mac Tonight advertising)
McDonald's is your place to be (1986)
Good time, great taste (1988-1990)

There's nothing quite like a McDonald's (1988-1990)

You Deserve A Break Today (1989-1990, concurrent with 1988 slogan)

Food, folks and fun (1990-1991)

McDonald's Today (1991-1992)

What you want is what you get (1992-1995)

Do you believe in magic? (1993-1997, Happy Meal advertising)

Have you had your break today? (1995-1997)

My McDonald's (1997)

Did somebody say McDonald's? (1997-2000)

We love to see you smile (2000-2003)

Put A Smile On (2000-2003)

Smile (2002-2003)
I'm loving' it (2003-present India)
BRANDING AND BRAND LOYALTY

When you see the golden arches, what is the first thing that comes to
your mind? Or what about when you see Ronald the clown, what comes
to your mind? Finally, what has 2 all, special sauce, lettuce salad on a
sesames bun? Hmmm Sounds a lot like McDonalds knows how to
capture your attention.

One of things that McDonalds has proved is that they are good at
building its brand loyalty. Even young children know that when you see
the golden arches that you are close to a McDonalds. With its
international expansion efforts, McDonalds has become one of the most
recognized brands world-wide. A couple of the things that has helped to
build McDonalds brand is their constantly changing menu and brand
packaging that meets the needs of their consumers.

POSITIONING STRATEGY

McDonalds positions itself as the leader in quick service restaurants. In

order to maintain their standard, they have started marketing to a younger
30 | P a g
e
set of persons, much in the same way that their Im Loving It campaign
does.

31 | P a g
e
They have send out FSIs (free standing inserts) as designed at the end
of this report to ensure that their loyal customers will be motivated enough
to try the new campaign even though they have always loved and used
McDonalds.
These FSIs will also act as a way to get customers who may have never
been to the store. Users and non-users alike will use the Club McDonalds
to their advantage. They expect that their younger target will seek out
memberships in Club McDonalds.
The online points-tracker and profile will add to the innovation factor. No
need of paperwork when figuring out your point totals and prize eligibility.
This is easy to use aspect of the promotion is appealing to those who
were born with computers.

Club McDonalds is targeted at younger people who are familiar with credit
cards and some of the rewards cards that are part of them.

WORLDWIDE GROWTH STRATEGY

McDonald's growth strategy is based on three elements;

1. Adding restaurants.
2. Maximizing sales and profits at existing restaurants.
3. Improving international profitability.

Maximizing sales and profits at existing restaurants will be

accomplished through better operations, innovation, product
development and refinement, effective marketing and lower
development and operating costs.
Improved international profitability will be realized as economies of scale
are achieved in individual markets and as the company benefits from the
global infrastructure.

SERVICE MANAGEMENT STRATEGY

If we take any fast food restaurants the customer attracts firstly through
brand and secondly with the most important thing to consider i.e. is
services offered to them.

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

the aim that has been proposed by them.

This research describes the service management strategy employed by

McDonald's Corp. in the operation of their fast food restaurant chain.
The company's service management strategy is described within the
context of the service model. In this model, market segment, the
philosophy culture image of the company, service systems, and human
resources are considered. The service of the company is identified
through following tools:

TRAINING POLICY
It is the goal of McDonald's to develop the highest level of skill
among all employees. Therefore, a common training programme
has been established to develop staff and to meet the training
needs of the company.
McDonalds Head of Training is responsible for implementing and
directing the training programme throughout the company. Operations
Supervisors and Restaurant Management participate in the programme
and are responsible for individual restaurant
results.

CREW MEMBERS
1. Each crew member receives on-the-job training in every area of the
restaurant.
2. Full-time staff is fully trained on all stations in the restaurant within five
months, part-time within ten months.
3. All 5-star crew members receive a Basic Certificate in Food Hygiene,
validated by the Institution of Environmental Health Offices.

BUSINESS MANAGEMENT PROGRAMME

1. A management programme for those over 21 aiming for a directroute into

restaurant management following an intensive and structured training
course.

2. All managers follow the Management Development Programme. The first

three months cover the three fundamental areas of the business:

Food preparation
Cooking
Serving customers in clean and hygienic surroundings.

This is followed by a series of 12 training courses designed to back up

what is learnt in the restaurant and develop management, communication
and leadership.
When promoted to Restaurant Manager, training continues through the
Advanced Operations Course covering staff development, motivation,
stress management, communication and leadership.
CUSTOMER PERCEPTION AND CUSTOMER EXPECTATION

Customer perception is a key factor affecting a products success. Many

potentially changed products have failed simply because of their inability
to build a healthy perception about themselves in the customers minds.
McDonalds being an internationally famous brand brings with it certain
expectations for the customers.

TARGET SEGMENTS VISITS MCDONALDS TO

A parent with two Visits McDonalds to give the children a treat.

children.

childrens Want to visit McDonalds as it is a fun place to

eat.
A business customer Visits McDonalds during the day as service is
quick; the food tastes great and can be eaten
in the car without affecting a busy 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 customers expect the brand to
enhance their self-image. Customer responses obtained at the Vile Parle,
Mumbai outlet confirmed the fact that they connect strongly with the
brand. However, fulfilling some of the customer expectations like a
broader product variety, provide McDonalds a great scope for
improvement.

MCDONALDS HEALTHY EATING POLICY

McDonald's is committed to providing high quality, safe and
healthy food. It recognizes the relationship between a balanced diet,
lifestyle and health.
It supports the recommendations of the 1991 Committee On Medical
Aspects of Food Policy (COMA) report and the targets laid down in the
Government's White Paper The Health of the Nation' by ensuring
products conform with the guidelines. McDonalds contributes to the
development of wider healthy eating policies by working with government
departments and organizations dedicated to healthy eating.

PRODUCTS
McDonald's continually reviews how its products relate to dietary
recommendations, at the same time it ensures maintenance of quality,
taste and value.

McDonald's continues to seek quality new products which are in

line with dietary recommendations but, which satisfy customers'
expectations. McDonald's committed to reduce the amount of additives,
especially preservatives and colorants in the products.

CUSTOMERS
McDonald's helps customers to balance their diet by providing
detailed Nutritious information on all its products.

STAFF
McDonald's encourages staff to understand the principles of healthy
eating. Specials training programmes are held for attainment of this
objectives.

PARTNERS
McDonalds works closely with franchises, suppliers and distributors to
meet their commitments to quality, nutrition, hygiene and food safety.

ANSOFF PRODUCT MARKET GROWTH MATRIX

The Ansoff Product-Market Growth Matrix is a marketing tool created by
Igor Ansoff and first published in his article "Strategies for Diversification"
in the Harvard Business Review (1957). The matrix allows marketers to
consider ways to grow the business via new products, new markets
there are four possible product/market combinations.

This matrix helps companies decide what course of action should be

taken given current performance. The matrix consists of four strategies:

1. Market penetration strategy

2. Market development strategy
3. Product development strategy
4. Diversification

MARKET PENETRATION STARTEGY

Market penetration is one of the four growth strategies of the Product-
Market Growth Matrix defined by Ansoff. Market penetration occurs when
a company enters/penetrates a market with current products. The best
way to achieve this is by gaining competitors' customers.
Other ways include attracting non-users of your product or convincing
current clients to use more of your product/service. Market penetration
occurs when the product and market already exists in market. McDonalds
is one most popular brand in fast food in entire world. In 1975, the first
McDonalds opened at Hong Kong, many thought that this is was wrong
move for McDonalds. Various reasons were laid for this claim. Although,
the main reasons lays on the fact that Americans and Hong Kong
Chinese at that time have very different perception about food.
McDonalds, being an American food chain, view breads full meal while
Hong Kong Chinese view them as snacks. As time went by, McDonalds
slowly became the part of the Hong Kong landscape and way of life rather
than just being an outpost of American culture. Hong Kong Chinese soon
accepted that the food McDonalds serve are ordinary, thus they are for
ordinary people like them.

Future more, believes that the introduction of McDonalds to the Hong

Kong society changed the direction of the Hong Kong cultural framework.
Along with the rest of the world, Hong Kong was also McDonalized.

MARKET DEVELPOMENT STARTEGY

A market development strategy targets non-buying customers in currently

targeted segments. It also targets new customers in new segments.
A marketing manager has to think about the following questions before
implementing a market development strategy: Is it profitable? Will it
require the introduction of new or modified products? Is the customer and
channel well enough researched and understood?
The marketing manager uses these four groups to give more focus to the
market segment decision: existing customers, competitor customers, non-
buying in current segments, new segments. McDonalds is currently
following above mentioned strategy, to focus on market segments. For
serving synonymously to the existing customers they are coming up with
different menus as per change in taste and preference of their customer
e.g.: happy price menu, beverages including milk shakes and cold coffees
etc. Also, by keeping in mind their rivals they are introducing products to
compete them e.g. to answer the KFC they came up with chicken
mcnuggets. They are adopting pricing policies for non-buying customer
and as well as new segments.

PRODUCT DEVELOPMENT STRATEGY

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

used to describe the complete process of bringing a new product or
service to market. There are two parallel paths involved in the NPD
process: one involves the idea generation, product design, and detail
engineering; the other involves market research and marketing analysis.
Companies typically see new product development as the first stage in
generating and commercializing new products within the overall strategic
process of product life cycle management used to maintain or grow their
market share.

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

new burgers. Frequently, when a firm creates new products, it can gain
new customers for these products. Hence, new product development can
be a crucial business development strategy for firms to stay competitive.
McDonalds are always enhancing their existing product along with it; they
also try to introduce new and new products so that they can easily survive
in market.

DIVERSIFICATION

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

seeks to increase profitability through greater sales volume obtained from
new products and new markets. Diversification can occur either at the
business unit or at the corporate level. At the business unit level, it is
most likely to expand into a new segment of an industry in which the
business is already in.
At the corporate level, it is generally and its also very interesting entering
a promising business outside of the scope of the existing business unit.
McDonald's made its foray into the hospitality industry in 2001, opening
two hotels in Switzerland, at Zurich and Lully. The "Golden Arch Hotels"
were positioned as four-star facilities with the latest in-room technology
and very original, modern interior design. Reactions and reviews of
guests following their stay there were mixed.
Most seemed to agree, that the hotel's four-star rating didn't seem to
correspond with McDonald's image. The Golden Arch in Zurich is
McDonald's first hotel.

IMPORTANCE OF PLC IN MCDONALDS

40 | P a g
e
41 | P a g
e
The requirements of customers change over time and thus the product
offering has to be changed accordingly. What is the trend today may be
out of market within few weeks. Thus continuous innovation is required.

To counter these changes McDonalds has continuously introduced new

products and has phased out the old ones which were at the decline
stage of their PLC. The introduction is timed such that the new product
does not cannibalize (which eats same of it) the product already in the
maturity or growth stage. Thus the secret lies in getting profits with
different products in the different stages of the PLC.

A perfect example of revitalizing a product in decline phase

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.
MCDONALIZING THE SUPPLIERS

McDonalds has changed the nature of not only the food service industry
but also the food processing industry as well. McDonalds realized that
the battle between fast food chains would increasingly be one of
efficiency of supply, lower cost production and greater desire to innovate.
It pioneered with innovative and sophisticated food distribution and
packaging systems when the traditional food processors were unwilling or
unable to supply food items that McDonalds demanded. They achieved
amazing consistency by giving more attention than anyone else to field
service and training at store level. Production was concentrated in huge
plants devoted exclusively to McDonalds. McDonalds also started with
tiny suppliers and grew with them displaying great loyalty.

Nowhere is the supplier loyalty more evident than in development of new,

improved products. Some of McDonalds classic food items like Filet-o-
Fish, French Fries, and Chicken Nuggets etc. are results of supplier
innovation. Interestingly, it took KFC more than three years before in
finally introduced its own version of chicken nuggets. Thus supplier
technological expertise had given McDonalds a product which was not a
mere marketing innovation but a technical one. McDonalds attempted to
squeeze labour out of the stores by moving more preparation back into
the processing plant, creating the opportunity to develop unique products
based on suppliers processing skills. For the first time, McDonalds
suppliers became the focal point of new product development. This
converted the fast-food industrys most fragmented distributed system
into more efficient one which helped McDonalds reduce its inventory and
manage costs effectively.
OPERATIONS COMPETITIVE STRATEGY
McDonalds Corporation competes in a challenging market segment by
providing need-satisfying products to customers. In this segment,
ineffective competitors often fail without proper strategies.

To sustain its viability, the McDonalds corporation employs an effective

competitive strategy to make it stand out against competitors such as
other fast food restaurants. McDonalds competes on several bases,
including:
1. Cost
2. Speed and
3. Nutrition

their strongest priority is making customers happy. The company

recently made strong changes to its process by introducing the Made for
You system.

COMPETITORS ANALYSIS

McDonalds has been a leading fast-foods outlet in Vile Parle. But the
outlet understudy has other competitors eating away into its market
share. In addition to its traditional rivalsKFC, Dominos, Pizza Hutthe
firm encounters new challenges. Jumbo King competes using a back-to-
basics approach of quickly serving up burgers for time-pressed
consumers. On the higher end, the KFC has become potent competitor in
the quick service field, taking away customers from McDonalds.

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

enough to distinguish the firm. At this time, a new critical success factor
may be emerging: the need to create a rich, satisfying experience for
consumers.
This brings us to service and experience based competition which
McDonalds can use for competitive advantage against Jumbo King.
Keeping in mind the demographics of the area, McDonalds has Wi-Fi
enabled the outlet to cater to the student community.

It is for this overall Food, Fun & Folks experience that customers pay a
premium over the other competitors.

MCDONALDS COMPETITORS:

COMPETITION BASES:
SPEED

McDonalds competes on several bases mainly to make their customers

happy by providing speedy, affordable, and nutritious foods.
Through extensive market research and survey, the organization
discovered that its customers desire speed as one of the restaurants top
priorities.
Therefore, McDonalds vision aims to provide fast, friendly and accurate
service. McDonalds realizes that specific targets are necessary to
measure the performance of speed, and continuously takes relevant
measurements to compare actual performance with desired targets. To
achieve efficient service times, the company utilizes proven, standardized
training processes for its employees and new drive-thru layouts to reduce
service times. Along with speed, McDonalds also competes by offering
prices at a low cost.
COST

To offer high quality products at low cost requires efficient processes

throughout the entire McDonalds organization.
Once again, this goal is built into their vision statement when they claim
that We will be the most efficient provider so that we can be the best
value to the most people. McDonalds incorporates several ways of
approaching to provide great value to its customers. One strategy that the
company has employed for many years is the value meal.

The value meal allows customers to buy a sandwich, French fries, and
beverage at a discount when purchased together. McDonalds
restaurants offer from seven to twelve value meals, both for their lunch
menu and breakfast menu.More recently, McDonalds began offering a
value menu, consisting of many individual items costing only $1.00 each.
First tested in southern California, the value menu has proved to be very
successful and has been since incorporated to the individual stores.

Some individual franchise owners choose to offer daily specials of special

menu items, such as $0.39 hamburger Wednesdays, or other similar
specials. Big Mac Mondays are a popular regional promotion.
NUTRITION

McDonalds third main competitive base is nutrition. The organization

understands that health trend is an increasingly popular trend therefore;
the organization has recently focused extraordinary efforts to promote
their new nutritious choices. Although not specifically built into the
organizations vision, McDonalds has already introduced many options to
achieve this goal.
In the United States, Go-Active meals have been offered within the last
few years. These meals include a salad, bottled water, and a step-o-
meter to help customers keep track of how many steps they take a day.

Other countries have seen similar healthy options. The United Kingdom
saw fresh fruit bags, containing apples and grapes, as an alternative to
French fries. Not only does McDonalds care about its customers, but it is
also considerate of its employees health. In Europe, the organization
worked with external nutritionists to develop an Employee Guidebook
which contains tips and nutrition information for healthy lifestyles.
McDonalds has assembled their Global Advisory Council on Balanced
Lifestyles. This council consists of exercise & obesity specialists,
environmentalists, and other professionals to ensure that McDonalds
takes appropriate steps in helping its customers achieve optimal health.
The company is also utilizing technology to their advantage. The current
McDonalds website lets a user select any combination of menu items,
place the items in the online bag, and conduct a nutritional analysis on
their selections. The user can break down the analysis even further than
a menu item, down individual condiments, including ketchup; pickles etc.
Not only has the company introduced many steps to ensure nutrition, but
it will strive to continue the trend toward nutrition. McDonalds plans to
add additional healthy menu options (fruits and vegetables) increase
nutrition awareness among McDonalds employees; conceive new ways
to deliver nutrition information to its customers, and other actions.

CHANGE IN STRATEGY

Made for You

McDonalds organization recently underwent drastic strategy changes to

serve better to their customers. Under their old system, the company
would make several sandwiches at once, and hold the sandwiches in a
warming bin until purchased by a customer. Under this system,
management had to accurately predict how much food had to be put on
hold. Accurate prediction had to be used because if there were not
enough food placed on hold, this would create the problem of increase
waiting times for customers, and too much food would cause waste of
expired items. McDonalds dramatically changed their strategy in order to
stay competitive with other fast food organizations.
In 1999, McDonalds spent $181 million to introduce their Made for You
system. Under this new system, standard food items are not held in a bin
until they are sold. In the Made for You system, modern technology
greatly assists McDonalds operations. When a customer places an
order, the sandwich items are immediately displayed on a computer
monitor in the kitchen and a tone sounds to alert the kitchen staff.

Upon a new order, an employee in the kitchen will toast the bun, and
assemble the sandwich accordingly.
Standard items simply list the name of the sandwich, while customized
orders list the sandwich name and the desired condiments. Once the
sandwich is assembled, it is presented to the food loading area, where a
different staff person retrieves the sandwich and completes the order by
adding French fries, desserts, etc. The system works the same for front
counter orders as well as drive-thru orders.
Unfortunately, the introduction of the Made for You system did not come
easily. McDonalds watched its customer satisfaction drop for the three
consecutive years beginning in 1999.

After further research, they realized that although the new system
provided fresher food, it was not as quick as the previous system. Instead
of reverting back to the old system, McDonalds continues to fine tune
Made for You and add new options to help the system work faster.
Revitalization Plan

In order to cope with the first ever quarterly loss that resulted from
inefficient use of the Made-for-you-system McDonalds has devised a new
plan to increase profits. Previously, the corporation emphasized adding
more restaurants to increase sales, but the new plan places emphasis on
increasing sales at existing restaurants.
The new plan will reduce spending, to enable more cash to shareholders
through dividends and share repurchases. Specific goals of the
revitalization plan are to:

Attract new customers

Encourage existing customers to visit more often
Build brand loyalty
Create enduring profitable growth

The main goal is to increase sales by creating an exceptional customer

experience. McDonalds plan is to achieve this goal by focusing on its
people, products, places, prices, and promotions.
Menu

Along with changes in their process strategies, McDonalds has flirted

with menu changes as well. Last year, they offered a new taste menu,
where they offered a new sandwich for one week. The purpose was to
offer customers a variety of options to satisfy peoples desire for variety.
However, the new taste menu proved to be ineffective.

Some customers would fall in love with an item, but it would only last one
week, and they would be frustrated that they couldnt purchase their new
beloved favorite sandwich.
More recent changes to the menu have proved effective. McDonald
realized that many of todays customers seek healthy food options, and
the

Corporation has offered items accordingly. As mentioned above in

Competition Bases, McDonalds now offers a wider variety of nutritious

50 | P a g
e
items and provides information to help its customers as well as
employees make informed healthy choices.
E.g. Vegetarian Menu

CORPORATE SOCIAL RESPONSIBILITY

At McDonalds, making customers happy is what our business is all

about. And we know it takes a lot to make that happen. We work hard to
provide every customer with a choice of meals and an experience that
exceeds their expectations.
The preceding statement is the quote which introduces McDonalds
Worldwide Corporate Social Responsibility Report (2004). Although the
company strives to compete on several bases, their ambient goal is
customer satisfactions. They reach this goal through a variety of efforts.
McDonalds visionary goal is to continually improve their organization.
One example is the manager on duty task of completing a travel path
every thirty minutes of his shift. During a travel path, the manager
personally checks every aspect of the restaurant, including: the lobby
area where customers eat, the restrooms, the grill area behind the
counter, the walk-in refrigerators and freezers, the stock area, as well as
the entire perimeter outside the restaurant.

Through completing travel paths, management continuously checks every

aspect of the restaurant throughout the day.
In addition to short term continual improvement, McDonalds organization
also thinks ahead for long term improvement.
To ensure that they serve 100% safe food, McDonalds conducts food
safety tests multiple times throughout the day. The corporation changes
Food Safety book used by the managers several times a year, in efforts
to think toward the future for the most appropriate variables to measure.
Along with internal improvement to the organization, McDonalds also
collects external information from its customers to discover which aspects
the company performs well, and which aspects could be improved. The
manager is supposed to talk to at least one customer during each travel
path and the manager can immediately react to this direct face-to-face
communication. On a larger scale, McDonald surveys its customers two
times per year. To entice customers to submit feedback, the organization
offers a free sandwich in return for a completed survey.

In summary, McDonalds strives to reach its goal of making customers

happy through their normal competitive bases of speed, price, and
nutrition, and they also ensure customer satisfaction through continual
improvement of their operations.

SWOT ANALYSIS
The Road Ahead

Entry to Tier 2 and Tier 3 cities The main target customer for
McDonalds is the new urban Indian family. With the customer
demographics constantly changing and tectonic social and cultural
shifts being observed in Tier 2 and Tier 3 cities due to globalization,
the company is now expanding to Tier 2 cities like Pune and Jaipur.

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.

Ks
The young generation of India has moved towards junk food against the
traditional Indian homemade food. People have started to live a fast and
speedy life, so much so that they prefer going to the junk foodies
restaurant and eat food in just few minutes instead of making lunch/dinner
at home and wasting 2 to 3 hrs in preparing it.

It all started with the invention of McDonalds in INDIA, junk food has
become more popular between the young youth as McDonalds launched
its branch in most of the major cities of INIDA. Along with McDonalds
many other junk food brands have started their business here.

One of a direct competition to the evergreen business of McDonalds that

recently launched here in Mumbai is Kentucky Fried Chicken commonly
known as KFC which is famous for its fried chicken.
Non-Veg lovers can have a feast in KFC, the VEG lovers are sidelined
and are not taken of that much care; there is no variety for the veggies
here in KFC, as much as they have in McDonalds.

In MC Donalds you get a wide variety of choices for both VEG and NON-
VEG lovers. When it comes to Quality KFC is far behind from MC
Donalds, they really need to maintain their quality standards well if they
want to rise up the ladder and compete with McDonalds.

Presentation skills also matters and no one can really beat MC

Donalds for that, they have these different offers from time to time, they
have special offers for 12 months of the year for kiddies, they give away
free toys etc, all this is really required if you want to win away the masses.
KFC does not offer any of those. Presentation skills at KFC are really
poor.
So my advice to KFC would be pay more attention to people
management, communication skills, have a complaint box or feedback
survey done which will help you know where and what is you lacking
behind.

MCDONALDS EXPERIENCE

Marketing in a services industry is becoming an increasingly complex

challenge. The paradigms of service marketing demand a passionate
understanding of customer expectations and perceptions, and linking
them to product design & delivery as well as operational planning. This is
where McDonalds has excelled due to its ability to successfully integrate
the customers perspective in its products and operations in a
comprehensive manner. The revamped menu in India is an example of
McDonalds strategy of integrating the customers perspective in its
products. And, the operational integration is clear from McDonalds
emphasis on its suppliers as its customers as well as its treatment of its
consumers as co-producers of services. The ultimate aim of Service
Marketing is not just to become a Service Leader but to create a Service
Brand. The Service Delivery Process is the key to achieving this aim of
Service Marketing.

Supplementary process
Service delivery process
Core products
During the Service Delivery Process, each moment of interaction between
the firm and the customer, called Moments of Truth, helps understand
the opportunities that a firm has to win or lose the customer. For example,
these moments of truth are created for McDonalds every time the guard
at the McDonalds outlet meets the customer, every time an attendant
takes down the order from the customer waiting in the queue, every time
the cashier interacts with the customer, every time the attendant helps the
customer guided the customer towards the table, every time the attendant
cleans the table, etc.

Moments Of Truth The Service Encounter

customer

service provider

service delivery points

Managing these moments of truth is a great challenge in Service

Marketing especially due to customers involvement as a co-producer of
services e.g. McDonalds self-service concept wherein the customer not
only collects the order but also cleans the table after consuming the food.

However, McDonalds has been able to create a great experience for its
customers by understanding the nature of the entire Service Delivery
Process and the various stages in the process that are exposed to the
customers. Transparency in the processes at its outlet has helped
McDonalds bring the back office in its outlet at the front so that the
customer is able to know the operations and provide feedback on service
design improvements.
Internal Customer Focus is equally important as External Customer
Orientation in order to win these moments of truth. McDonalds focus
on its People and their service delivery methods therefore plays a very
important role in creating a successful Service Brand. The quality and the
consistency of the service delivered by McDonalds have been greatly
enhanced by the combination of the factors mentioned above. This has
helped McDonalds become Service Leader and a successful Service
Brand. This is evident from the fact that very few of its customers opt for
take-home parcels or home deliveries while most of them prefer to eat at
the outlet and enjoy the McDonalds experience.

FACTS AND FIGURES

Year Events
1955 Ray Kroc opens his first restaurant. McDonalds Corporation is
created
1957 Quality, Service, Cleanliness and Value (QSC & V) becomes
company motto
1963 Ronald McDonald makes debut
1965 The company goes public
1968 Big Mac is introduced`
1974 Happy Meal is launched
th
1996 McDonalds opens in India, the 95 country

WORLDWIDE FINANCIAL PERFORMANCE

Dollars in million 1990 1991 1992 1993 1994
No. of restaurants 11,803 12,418 13,093 13,993 15,205
System wide sales 18,759 19,928 21,885 23,587 25,987
- US 12,252 12,519 13,243 14,186 14,941
- Outside US 6,507 7,409 8,642 9,401 1,046
Total revenues 6,640 6,695 7,133 7,408 8,321
Operating profit 1,596 1,679 1,862 1,984 2,241
Net profit 802 860 959 1,083 1,224
ACTIVITY TIME BUDGET ($)
PERIOD
Average age of big Mac product 2009-2011 1,000,000.

Promotions of big Mac product Complete 3,00,000

year 2009

Mcdelivery service 2009-2011 50,000

Launched N mixed Happy meal 2009-2011 300,000

Reputation in training 2009-2011 25,000

Marketing Advertisements 2009-2011 1,00,000

Adapting automated machines 2009-2011 40,000

Total 1,815,000
budget

MCDONALDS INDIAN SUPPLIERS

NORTH AND EAST INDIA NO.OF OUTLETS

DELHI 33

U.P. 22

HARYANA 11

PUNJAB 7

RAJASTHAN 3

UTTRANCHAL 1

WEST BENGAL 1

HAMACHAL PRADESH 1

WEST AND SOUTH INDIA NO.OF OUTLETS

MAHARASHTRA 32

GUJARAT 7

KARNATAKA 7

ANDHRA 4

M.P. 3

MCDONALDS OFFER SCHOLARSHIP TO STUDENTS IN US

Local Chapters of Ronald McDonald House Charities (RMHC), with

support from RMHC Global, McDonald's Corporation and McDonald's
restaurants, offer scholarships to students from communities who face
limited access to educational and career opportunities. These
scholarships are part of the RMHC and McDonalds ongoing commitment
to education.

HAMBURGER UNIVERSITIES

60 | P a g
e
61 | P a g
e
Today, more than five thousand students attend hamburger universities
each year. Since 1961, more eighty thousand restaurants managers, mid-
managers and owners have graduated from this facility.

QUESTIONNAIRE

Q. Which is your favorite product at McDonalds?

favourite product
7%
10%
9% 14%
maharaj mc
11% mc chicken burger french fries chicken mcnuggets mc puf
fileto fish
other 11%

38%

Q. Is the product line in McDonalds adequate?

 is the product line adequate

27%
39%
yes
no average

34%

Q. What is the main problem you faced at McDonalds?

problems faced in McDonald's

long queues

28%
40% rude behaviour of
employees
congestion

13% 15% other

4%
no problem

Q. Which area do you think needs the most improvement?

 improvement

10% 6%
10% 31% delivery
capaciousness product variety price
ofers and dis
others
20%
23%

Q. What is the first thing that strikes your mind about McDonalds?

first thing about McDonald's that strikes customers mind

22% 32%
4% burger
golden arches service
value for money
fun
17% 25%

Q. Do you like McDonalds?

 customer's view points
7%
12%

yes

25% 56%
no

yes & no
no exp

CONCLUSION

Marketing Strategies implied by McDonalds clearly gives the entire

comprehensive information that is necessary for the growth and
development of a business enterprise. Basically, the strategies that are
implemented by McDonalds includes many basic essentials features like
market research, innovative ideas, customers views, forecasting
consumers demand, planning, organizing etc, these are the few basic
essentials elements that plays a vital role for the successful business and
also in creating the brand name of a product. Today, in this fast moving
dynamic world the demand for goods and services are increasing at an
alarming rate due to which there is greater competency and competitors
ruling in the market. Therefore, most of the companies adopt different
types of marketing strategies in order to serve their customers in a more
better and efficient manner than their competitors so that, their business
can easily survive in the market. Even corporate companies like Reliance
and Tata industries are implementing various strategies from past many
years. This shows that marketing strategies provides competitive edge for
every business unit.

BIBILOGRAPHY
www.McDonaldsIndia.com
www.Google.com
www.wikipedia.com