“One world, One Burger”- McDonald’s

By VASIM Calcuttawala

AGENDA• HISTORY• SOME FACTS ABOUT

MCDONALD’S• PAST AND PRESENT

STRATEGY• SWOT ANALYSIS• 7 P’S• MCDONALDS LOCATION

SELECTION• TECHNOLOGY IN RETAIL• RETAIL FORMAT• STORE LAYOUT• ORGANISATIONAL

STRUCTURE

So, Let’s go, Listen My story, Agenda of My story is

"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."

McDonald's Mission Statement

.

As word of their success spread, franchisees started showing interest. However, the franchising system failed because the

McDonald's was started as a drive-in restaurant by two brothers, Richard and Maurice McDonald in California, US in the year 1937.

The brothers used assembly line procedures in their kitchen for mass production..

Mcdonald’s History

• At this point, Ray Kroc (Kroc), distributor for milkshake machines.Expressed interest in the business, and he finalized a deal with the McDonald brothers in 1954.

•In 1961, he bought out the McDonald brothers' share for $2.7 million and changed the name of the company to McDonald's Corporation. In 1965, McDonald's went public...

McDonald’s History

Chak De

INDIA

McDonald’s in India

• Entered in India 1996

• McDonald's India is a 50 – 50 JV partnership between MCDONALD’S CORPORATION (U.S.A) and two Indian businessman Amit Jatia and Vikram Bakshi

• Localisation: DON’T OFFER ANY BEEF OR PORK ITEM

IN INDIA IN PRODUCT LIKE MCVEGGIE, PIZZA

MCPUFF ETC.THEY USE SPICES FAVOURED BY INDIANS

SOFT SERVES AND MCSHAKES ARE EGGLESS

• Actively Involver in many social activities likegi CHILD EDUCATION, PULSE POLIOiesetc.

McDonald’s History INDIA

• 1996 …the first McDonald’s restaurant opened on Oct. 13, at Basant Lok, Vasant Vihar, New Delhi. It was also the first restaurant in the world not serving beef on its menu

• 1997…the first Drive –Thru restaurant at Noida • 1999…the first Mall location restaurant at Ansal Plaza –

New Delhi • 2000…the first highway restaurant at Mathura • 2001…the first thematic restaurant at Connaught Place• 2002…the first restaurant in a food court at 3C’s,

Lajpat Nagar and the first restaurant at the Delhi Metro Station at Inter State Bus Terminus

History in India

Segmentation, Targeting and Positioning• McDonald’s uses demographic segmentation

strategy with age as the parameter. The main target segments are children, youth and the young urban family

ADAPTION STRATEGY• Menu differences:• Netherlands and Austria– Beer• Germany – Chinese Week• Canada – Mc Pizza• India – Goat and lamb burgers half of

menu vegetarian• Japan – ingredients such as cabbage and

Teriyaki• USA – Barbecue bacon Burgers, sausage

breakfast burritos

Mc -Strategies

International Growth

Forward Integration

-Distribution through Franchisees

Backward Integration

-Local Sourcing, Suppliers

Market penetration & Development

McDonaldizing the supplier

New Product Development

- Aloo Tikki, Salad

Beverages

Cold Coffee

Ice Tea

Soft Drinks

Mc Shakes

Hot Serves

Menu

Ice-Tea

Menu

McShakesMcShakes™

Nutrition at glance

Type(Quantity)

Serving sizein

gms

Proteinin

gms / serve

Caloriesin kCal / serve

Protein%

Carb.

in gms / serve

Fatin

gms / serve

Carb%

Fat

%

Chocolate(S/M/L)

275400500

71013

527594

71013

298433541

333

191919

333

Strawberry(S/M/L)

275400500

71012

466784

71012

270393491

222

171717

222

Menu

Floats

Menu

Soft ServesNutrition at glance

TypeServing sizein gms

Proteinin

gms / serve

Caloriesin

kCal / serve

Protein%

Carb. in

gms / serve

Fatin

gms / serve

Carb%Fat %

Soft Serve with Hot Fudge (Small) 86 3 25 3 140 4 29 4

Soft Serve with Hot Fudge (Medium) 143 6 43 5 241 4 30 4

Soft Serve with Strawberry (Small) 86 3 23 3 126 3 26 3

Soft Serve with Strawberry (Medium) 143 4 39 4 208 3 27 3

Menu

Soft Serve Cone

Menu

Nutrition at glance

Serving sizein gms

Proteinin gms /

serve

Caloriesin kCal /

serveProtein%

Carb. in gms / serve

Fatin gms /

serveCarb% Fat %

71 2 16 2 95 3 22 4

Non- Veg Menu

Chicken McCurry

Chicken Maharaja Mac

McChicken

Fiet-O-Fish

Chicken Mexican Wrap

Chicken McGrill

Menu

Filet-O-FishFilet-O-Fish™

Fried, breaded fillet of fish, with a half slice of processed cheddar cheese, special tartar sauce served between steamed buns.

Nutrition at glance

 

 

 

Serving sizein gms

Proteinin gms / serve

Carb.in gms / serve

Fatin gms / serve

145 13 49 23

Caloriesin kCal / serve

Protein% Carb% Fat %

462 9 34 16

Menu

Chicken Maharaja Mac

Nutrition at glance

Serving sizein gms

Proteinin gms / serve

Carb.in gms / serve

Fatin gms / serve

255 32 54 26

Caloriesin kCal / serve

Protein% Carb% Fat %

573 12 21 10

ChickenMaharaja Mac™

2 Grilled chicken patties with a smoke-flavoured mayonnaise, fresh onions, tomatoes, processed cheddar cheese in a toasted sesame seeded bun.

Menu

Chicken Mexican Wrap

Menu

Chicken Mexican Wrap™

A traditional Mexican soft flat bread that envelops crispy golden brown chicken encrusted with a Mexican Cajun coating, and a salad mix of iceberg lettuce, carrot, red cabbage and celery, served with eggless mayonnaise, tangy Mexican Salsa sauce and cheddar cheese

Nutrition at glance

Serving sizein gms

Proteinin gms /

serve

Carb.in gms /

serve

Fatin gms /

serve

192 14 37 21

Caloriesin kCal /

serveProtein% Carb% Fat %

392 7 19 11

McALOO TikkiMcAloo Tikki™

Fried breaded potato & peas patty that is flavoured with a special spice mix, fresh tomato slices, onion, and veg. tomato mayonnaise between toasted buns.

Nutrition at glance

Serving size

in gms

Proteinin gms /

serve

Carb.in gms /

serve

Fatin gms /

serve

150 6 53 15

Caloriesin kCal /

serveProtein% Carb% Fat %

367 4 35 10

Menu

Paneer Salsa WrapPizza McPuff™

Mixed vegetables (carrot, beans, capsicum, onion and green peas), mozzarella cheese mixed with tomato sauce and spice blend coated with a savoury dough.

Nutrition at glance

Serving sizein gms

Proteinin gms /

serve

Carb.in gms /

serve

Fatin gms /

serve

80 4 26 14

Caloriesin kCal /

serveProtein% Carb% Fat %

245 5 33 17

Menu

4P’s of McDonalds

• Product• How should the company design, manufacture the

product so that it enhances the customer experience?

• Price What should be the pricing strategy?

• Place• Where should be the product be available and the

role of distribution channels?

• Promotion• What is the suitable strategy and channels for

promotion of the product?

• Product Development– Successes: Fries, Happy Meal, Big Mac, Egg

McMuffin, Promotions

– Failures: McPizza, Fajita, Carrot Sticks,

McLean, and the Arch Deluxe

Past Mc Product Strategies

• 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”.

“Food, Folks, and Fun”“I’m loving it”.

I Love Children- Happy Meal

Place

McDonald's opened its doors in India in October 1996. Ever since then, our family restaurants in Mumbai, Delhi, Pune, Ahmedabad, Vadodara, Ludhiana, Jaipur, Noida Faridabad, Doraha, Manesar and Gurgaon have proceeded to demonstrate.

• The ambience and the environment is same at

all the outlets of McDonald's.

McDonald’s Outlets

Pepole

• Each outlet is headed by a Restaurant Manager . He is responsible for the daily operation and customer interaction.

• Delivery Crew Member carries basic operation of a restaurant. Ensures customer satisfaction at the restaurants.

• In order to motivate there employees they give them stars as per their performance.

Organizational Chart

Social Events sponsored by McDonald's

McDonalds location SelectionSpace require• In terms of space: Minimum of 2,500 – 3,000 square

feet carpet area on the ground floor with a clear height of 11 feet and a frontage of at least 35 to 40 feet.

• Offers both Counter Service and Drive through Service• 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.

• "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.

• Some locations are connected to gas stations/convenience stores, while others called McDonald's Express have limited seating and/or menu or may be located in a shopping mall.

• Other McDonald's are located in Wal-Mart stores. • McStop is a location targeted at truckers and

travelers which may have services found at truck stops.

Home Delivery

• McDelivery

11:00 am to 11:00 pm

• McDonald’s India is one of the few countries that provides a home delivery service

• Call on 6600 0666 and place the order.• Minimum Charge 15rs Per order• The restaurants will deliver to

neighborhoods which are up to 10 minutes away by road.

Recognition [Rewards]• In addition to McDonald's competitive wage and

promotion programs, hard work, dedication, motivation and results are recognized and rewarded at McDonald's.

• Appreciation comes in many forms - from a simple thank you for a job well done, to restaurant-wide recognition through programs such as the 'Face of the Month' and ‘Face of the Quarter’.

• McDonald's also offers great incentive programs with access to gift certificates and merchandise.

Technology In Retail• From old-fashioned cash registers to computerized

point-of-sale systems that could track massive amounts of data in seconds

• McDonald's was the first quick-service chain to install touch-screen computers at the front counter and in the drive-thru, making it easier for servers to input orders.

• New POS, a product developed by Savista, will help McDonald's improve restaurant productivity and enhance the customer experience

• Attemt for solution that would permit debit, credit and gift card transactions to be processed through the standard POS system in less than four seconds

• In a small number of restaurants, McDonald's U.S. is evaluating a customer order center concept that involves drive-thru orders taken by employees working remotely at two customer order centers. High-speed data connections are used to transmit the orders from the drive-thrus to the centers as well as from the centers back to

restaurant Kitchen Staff.• Meanwhile, pilot tests of self-service ordering

kiosks are underway in the Denver and Chicago markets. At this point, the kiosks accept only cashless payments as a way to keep the machines easy and quick to operate

Retail Format : Franchising• Franchising enables McDonald’s to enjoy

considerably faster growth and the creation of a truly global brand identity.

• On the financial side, McDonald’s receives a monthly rent which is calculated on a sliding scale based on the restaurant’s sales

• There is also a service fee of 5% of sales that is contributed to support department activities and royalties.

• The purchase price of a restaurant is generally about £150,000 upwards. The new franchisee is expected to fund a minimum of 25% of this from their own unencumbered funds.

Store Layout• The new design will include the traditional

McDonald's yellow and red colors, but the red will be muted to terra cotta, the yellow will turn golden for a more "sunny" look and olive and sage green will be added.

• To warm up their look, the restaurants will have less plastic and more brick and wood, with modern hanging lights to produce a softer glow.

• Contemporary art or framed photographs will hang on the walls.

• The exterior will have golden awnings and a "swish brow" instead of the traditional double-slanted mansard roof.

• The new restaurants will feature areas:• The "linger" zone will offer armchairs, sofas, and

Wi-Fi connections. • The "grab and go" zone will feature tall counters

with bar stools for customers who eat alone; Plasma TVs will offer them news and weather reports.

• The "flexible" zone will be targeted toward families and will have booths featuring fabric cushions with colorful patterns and flexible seating.

• Different music targeted to each zone.

Store Layout

Store Layout

Store Layout

Supply Chain

Suppliers Mfg Dist. Retai Customer

Material Flow

Supply ChainTrikaya Agriculture - Supplier of Iceberg

Lettuce.successfully grows speciality crops like iceberg lettuce, special herbs and many oriental vegetables. Farm infrastructure features:

A specialized nursery with a team of agricultural experts.

Drip and sprinkler irrigation in raised farm beds with fertilizer mixing plant.

Pre-cooling room and a large cold room for post harvest handling.

A large cold room and a refrigerated van for transportation where the temperature and the relative humidity of this crop is maintained between 1º C and 4º C and 95% respectively

Vista Processed Foods Pvt. Ltd. - Supplier of Chicken and Vegetable range of products.A joint venture with OSI Industries Inc., USA, and McDonald's India Pvt. Ltd. Vista Processed Foods Pvt. Ltd. produces a range of frozen chicken and vegetable foods.  A world class infrastructure at its plant at Taloja, Maharashtra, has: Separate processing lines for chicken and vegetable foods. Capability to produce frozen foods at temperature as low as -35 Degree Celsius to retain total freshness. International standards, procedures and support services.

Supply ChainDynamix Diary - Supplier of Cheese.Dynamix has brought immense benefits to farmers in Baramati, Maharashtra by setting up a network of milk collection centres equipped with bulk coolers.  Easy accessibility has enabled farmers augment their income by finding a new market for surplus milk.  The factory has: Fully automatic international standard processing facility. Capability to convert milk into cheese, butter/ghee, skimmed milk powder, lactose, casein & whey protein and humanised baby food. Stringent quality control measures and continuous Research & Development.

Radhakrishna Foodland - Distribution Centre.

An integral part of the Radhakrishna Group, Foodland specialises in handling large volumes, providing the entire range of services including procurement, quality inspection, storage, inventory management, deliveries, data collection, recording and reporting.  Salient strengths are: A one-stop shop for all distribution management services. Dry and cold storage facility to store and transport perishable products at temperatures up to - 22 Degrees Celsius. Effective process control for minimum distribution cost.

Jumbo King — The branded vada pav chain

Dheraj Gupta

Introduced automation, packaging and Created a Brand

Jumbo King is a food chain that has branded Mumbai’s favorite snack, The Vada pav.

Vada pav is an INR 500 million market in Mumbai itself, out of which jumbo king’s share is more than 100 million

Jumbo king has broken the stereotype method and introduce hygienic manhandled vadapv.

It has become Mumbai's most visited brand with over 40,000 customers per day

Jumbo king considers McDonald's it’s “guru” and aims to become India’s McDonald’s.

• McDonald's India has already contributed directly & indirectly Rs. 95 crore (approx. 16 per cent of total turnover) as revenue to the Center and the State towards Sales Tax, House tax and Income Tax in the last seven years. By 2005 this amount shall see an increase of more than 30 per cent per annum.

Contribution to Economic Growth

BYE BYE SEE U AT McDonald’S