MARKETING MANAGEMENT

Analysis

! st# and marketing mi$ ( india )

! M%& nald's

Submitted by:-

Abhishek Chandan Abhishek P. Singh Mitu Udayan Namrata Gwal Niraj Kumar Pawan Kumar Singh

PG&M *+,*,- Se%. A

Pr !. " mi Sainy

Acknowledgement
.his is a matter ! #ride ! r us t e$#ress ur ur

gratitude and thank!ulness t wards !a%ulty Pr !. " mi Sainy wh ## rtunity t

ga/e us the

undertake this #r je%t whi%h

hel#ed us in understanding the as#e%t related t /ari us strategies ! targeting and #la%e

# siti ning used by

rganisati ns t

there #r du%t in the market and thereby enhan%ing the kn wledge ! the same. 0e sin%erely thank ur 1ibrarian Mr. 2i#ul ! r his /aluable % m#lete

guidan%e and hel# whi%h led us t

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ur #r je%t w rk. 0e w uld !urther l ! rward ! r m re su%h

## rtunities that

w uld hel# us understand the #ra%ti%al % n%e#ts better.

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C3N.4N.
,. 5ntr du%ti n66666666666666666666666666 66.. *. M%& nald's hist ry666666666666666666666666 7. M%& nalds C r# rati n666666666666666666666.. -. S.P Analysis ! M%d nalds66666666666666666666. 8. Marketing Mi$666666666666666666666666666 9. M%& nalds Marketing Mi$66666666666666666666 :. 5m# rtan%e ! P1C in M%& nalds666666666................... ;. C n%lusi n666666666666666666666666666 6 <. Suggesti n666666666666666666666666666 6. ,+. =ibli gra#hy66666666666666666666666666

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5ntr du%ti n
McDonalds is the world's leading food service retailer, serves so e of the world's favorite foods li!e "orld #a o$s #rench #ries, %ig Mac, &$arter 'o$nder, (hic!en McN$ggets and Egg McM$ffin) McDonald's (or*oration is the world's largest chain of ha +$rger fast food resta$rants, serving ore than ,8 illion c$sto ers dail- and ore than ./,/// resta$rants in 118 co$ntries) A McDonald's resta$rant is o*erated +- a franchisee, an affiliate, or the cor*oration itself) McDonald0s anage ent has alwa-s +elieved in +eing a leader in iss$es that affect their c$sto ers) This *hiloso*h- is evident in McDonald0s involve ent in vario$s co $nit- *ro1ects regarding ed$cation, health care, edical research, and reha+ilitation facilities) These activities hel* the cor*oration to e2tend their i age +e-ond f$n and entertain ent into social res*onsi+ilit-) 3owever, in the late 148/s, McDonald0s +egan to face criticis for its environ ental *olicies, es*eciall- those s$rro$nding *ol-st-rene cla shell containers) In 1485, McDonald0s re*laced (#(s, the +lowing agent $sed in cla shell *rod$ction, with wea!er 3(#(6770s after facing *$+lic criticis that (#( $sage was contri+$ting to o8one de*letion) %$t this change was not eno$gh for an- grass6roots environ ental gro$*s that, led +- the (iti8ens (learingho$se for 3a8ardo$s "aste 9((3":, $nited in esta+lishing a ;Ronald McTo2ic (a *aign< consisting of resta$rant *ic!eters and an organi8ed effort to ail cla shells +ac! to =a! %roo! head>$arters) "hen McDonald0s later tested trash6to6energ- on6site incinerators, ((3" >$ic!l- na ed the *ro1ect ;Mc'$ff)< %- 1484, school children, the +ac!+one of McDonald0s c$sto er +ase, fo$nded a gro$* called ;Kids Against 'ol-st-rene)< Altho$gh the- were not

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the onl- fast6food resta$rant facing criticis for dis*osa+le *ac!aging, McDonald0s co$ld not afford to let this sit$ation escalate) =ne of their *ri ar- co *etitors is %$rger King)

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M%& nald's hist ry

McDonald's was started as a drive6in resta$rant +- two +rothers, Richard and Ma$rice McDonald in (alifornia, ?@ in the -ear 14.5) Entered in India 144A McDonald's India is a ,/ B ,/ CD *artnershi* +etween M(D=NAED0@ (=R'=RATI=N 9?)@)A: and two Indian +$siness an A it Catia and Di!ra %a!shi 144A FThe first McDonald0s resta$rant o*ened on =ct) 1., at %asant Eo!, Dasant Dihar, New Delhi) It was also the first resta$rant in the world not serving +eef on its en$ 1445Fthe first Drive BThr$ resta$rant at Noida 1444Fthe first Mall location resta$rant at Ansal 'la8a B New Delhi 7///Fthe first highwa- resta$rant at Math$ra 7//1Fthe first the atic resta$rant at (onna$ght 'lace 7//7Fthe first resta$rant in a food co$rt at .(0s, Ea1*at Nagar and the first resta$rant at the Delhi Metro @tation at Inter @tate %$s Ter in$s

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M%& nalds C r# rati n

2isi n
The worlds best quick service restaurant experience. To +e the +est G leading fast food *roviders aro$nd the glo+e To achieve their vision the- are foc$sed on three world wide strategiesH %e the +est e *lo-er for *eo*le in each co $nit- aro$nd the world)

Deliver o*tional e2cellence to c$sto ers in each resta$rant) Achieve end$ring *rofita+le growth +- e2*anding the +rand and leveraging the strengths of McDonald0s s-ste thro$gh innovation and technolog-)

Missi n
To +e the world's +est >$ic! service resta$rant e2*erience) %eing the +est eans *roviding o$tstanding >$alit-, service, cleanliness, and val$e, so that we a!e ever- c$sto er in ever- resta$rant s ile)I

2alues
=$r val$es s$ ari8ed in ;&)@)( G D<) 'rovide good >$alit-, services to c$sto er ) 3ave cleanliness environ ent when c$sto er en1o-s their eal )The val$e of food *rod$ct a!es ever- c$sto er is s iling)

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STP Analysis of Mcdonalds

Segmentati n
Mar!et seg entation is defined as dividing a single ar!et into s aller seg ents) The +asic reason for dividing the ar!et into s all seg ents is to a!e it si *le to address the needs of s aller gro$*s of c$sto ers and trto an$fact$re different *rod$cts according to their cons$ ing ha+its) 'artic$larl- it is done according to the *eo*le who have si ilar characteristics) It can +e done on the +asis of age, gender, lifest-le, region, etc) McDonalds in India seg entation it has done is on three different +asesH
&em gra#hi%ally :- Age> Gender> Kids, #a

il- and @t$dents

McDonalds offers different *rod$cts li!e 3a**- Meal which incl$des a free tofor !ids) #or fa ilies it has ade different o$tlets and eals which are s$ita+le for ta!eawa-s and drive6thr$) McDonalds has ade its environ ent which is s$ita+le for st$dents of school to hang o$t with their friends and can get their l$nch at McDonalds) Ge gra#hi%ally :- "egi n> Pla%e> Area. "hen McDonalds entered in india firstl- the- started in etro cit- develo*ed cities li!e Delhi, %anglore, M$ +ai ) %$t, now the- also e2*anding their ar!et and now, -o$ fo$nd McDonald in an- develo*ing cities of india li!e Daranasi, *atna, indore etc)

Psy%h gra#hi%:- (onvenience and lifest-le

McDonalds has ado*ted itself according to the convenience and lifest-le of the Indian cons$ ers, as India has a h$ge vegetarian *o*$lation so McDonalds ca e $* with a different and new *rod$ct line) "hich incl$des ite s li!e Mc Deggie +$rger and Mc Aloo ti!!i %$rger) It has +een seen as the 'lace to chill o$t with friends and fa ilies and also a 'lace for en1o- ent of the !ids) The- also

ade McDonalds as a *lace to rela2 and even for entertain ent)

=eha/i ral:- =ccasions

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McDonalds can get ore c$sto ers +- who the- can get ost of the share of India #ast #ood Ind$str- +$t the- sho$ld e *hasis on their Targeting techni>$e)

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Targeting
.arget Marketing involves +rea!ing a ar!et into seg ents and then concentrating -o$r ar!eting efforts on one or a few !e- seg ents, =ne the fir has divided the ar!et into seg ent then targeting is done) McDonald's advertising, new o$tlet interior designs and additions to the en$ are all fir l- targeted at the -o$th, tho$gh the o$tlets still have that defined fa il- section) It was the Ifa il- *laceI to go to since >$ic! service resta$rant chain McDonald's entered India) (hildren were a ver- i *ortant *art of its target a$dience, with a lot of its advertising and en$ es*eciall- targeting the ) %$t now McDonald's is fir l- tal!ing a+o$t -o$th +eing its *ri artarget cons$ ers) Its advertising, new o$tlet interior designs and additions to the en$ are all fir l- targeted at the -o$th, tho$gh the o$tlets still have that defined fa il- section) McDonald's India 6north and east ar!ets 6 are in co *lete agree ent that -o$th is the ost i *ortant cons$ er seg ent for McDonald's in India toda-) McDonald's wo$ld have J,/6,// o$tlets across India) %- Dece +er, 3ardcastle will have 1./ o$tlets, while McDonald's India 9north and east: c$rrentl- has 1// o$tlets) %oth are e2*anding aggressivel-)

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Positioning
'ositioning refers to creating a favora+le i age in the ind of the c$sto ers so that the- *erceive the *rod$ct or a service to +e +etter than that of its co *etitors) It is also occ$*-ing the ind, heart, +od- and wallet s*ace of c$sto ers in the selected target ar!et seg ent thro$gh differential advantage higher than rivals in an irre*lacea+le wa- +converting differential advantage into s$staina+le differential advantage) A co *an- can choose fro a n$ +er of different strategies) NE" DEE3IH McDonald's, the fast food chain, is ta**ing in to fa il- val$es and e *hasi8ing its *rice co *etitiveness as it see!s to connect with cons$ ers in India) ,. User =ased P siti ningH 6 Mc Donald0s *ositions itself as a +rand which is for the $ser and according to the $ser0s needs) #or E2H 6 Mc Donald0s has changed its the $sers) It also en$ in india as *er the de and of c donald0s

Ko$ need a +rea! toda- get $* and go to

*. Pri%e # siti ningH 6 the *rices of all the ite s have +een *riced low as it *osition itself in the inds of the -o$th) ;aa* !e 8a aane ain +aa* !e 8a aane !e daa < is one the e2a *les of *ositioning itself as a low *rice high >$alit- *rod$ct) 7. =ene!it P siti ningH6 It also *ositions itself as a +rand which is high on >$alit-) It *ro*agates the h-giene iss$es and s$ccessf$ll- ca *aigned it0s two different resta$rants for vegetarians and non6vegetarians J) 'rod$ct (ategor- 'ositioningH6 In categor- +ased *ositioning McDonalds s$ccessf$ll- *osition its self +- ca *aigning a+o$t ;=ne %$rger =ne "orld< which foc$sed on *ositioning McDonalds as the onl- co *an- with a good +$rger)

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Marketing Mi$
Mar!eters have fo$r tools to $se to develo* an offering to eet the needs of their targeted c$sto ers) (ollectivel- the- are called the ar!eting i2)

The ar!eting i2 *rinci*les are controlla+le varia+les, which have to +e caref$ll- anaged and $st eet the needs of the defined target gro$*)

.he ! ll wing table summari?es the marketing mi$ de%isi ns> in%luding a list ! s me ! the as#e%ts ! ea%h ! the -Ps 'rod$ct #$nctionalitA**earance &$alit'ac!aging %rand "arrant@erviceL@$**ort 'rice Eist *rice Disco$nts Allowances #inancing Eeasing o*tions 'ro otion Advertising 'ersonal selling '$+lic relations Message Media %$dget 'lace (hannel (hannel e +ers otivation

Mar!et coverage Eocations Eogistics @ervice levels

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M%& nalds Marketing Mi$

,. Pr du%t:-- The *rod$ct , service or *rogra
incl$des +oth tangi+le and intangi+le ele ents) The tangi+le, of co$rse, are those things that the c$sto er can see, to$ch, feel, taste, or s ell) McDonalds has intentionall- !e*t its *rod$ct de*th and *rod$ct width li ited) McDonalds st$died the +ehavio$r of the Indian c$sto er and *rovided a totall- different en$ as co *ared to its International offering) It dro**ed ha , +eef and $tton +$rgers fro the en$) India is the onl- co$ntr- where McDonalds serve vegetarian en$) Even the sa$ces and cheese $sed in India are 1//M vegetarian) McDonalds contin$o$slinnovates its *rod$cts according to the changing *references and tastes of its c$sto ers)) "hich incl$des ite s li!e Mc Deggie +$rger and Mc Aloo ti!!i %$rger)'rod$ct DariationH Dariet- in *rod$cts ranging fro %$rgers to softies)

'rod$ct InnovationH Ada*ting to Indian conditions creating the ;(3I(KEN MA3ARACA< 'rod$ct Eli inationH Re oval of %eef flavored *rod$cts Men$H Deg, Non Deg, #ro8en Desserts, %everages

@$ccessesH #ries, 3a**- Meal, %ig Mac, *aneer wra*, 'i88a Mc'$ff, Egg McM$ffin #ail$resH, #a1ita, (arrot @tic!s, McEean, and the Arch Del$2e

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*-Pla%e
The *lace is where the c$sto er receives the *rod$ct, service, or *rogra ) The *lace of deliver-, incl$ding all of its reso$rces, is *art of what the cons$ er +$-s) A *lace that eets his or her needs +etter a- +e worth ore) "hen McDonalds entered in india firstl- the- started in etro cit- develo*ed
cities li!e Delhi, %anglore, M$ +ai ) %$t, now the- also e2*anding their ar!et and now, -o$ fo$nd McDonald in an- develo*ing cities of india li!e Daranasi, *atna, indore etc)

There is a certain degree of f$n and ha**iness that a c$sto er feels each ti e he dines at McDonalds) There are certain val$e *ro*ositions that McDonalds offer to its c$sto ers +ased on their needs) McDonalds offers h-gienic environ ent, good a +ience and great service) Now McDonalds have also started giving internet facilit- at their centres and thehave +een *la-ing $sic thro$gh radio instead of the nor al $sic) There are certain dedicated areas for children where the- can *la- while their *arents can have so e >$alitti e together) In setting its strateg-, the organi8ation $st deter ine how $ch the target ar!et is willing to *a- for at os*here and *h-sical reso$rces of *lace) #$ll- owned o$tlets #ranchise owned o$tlets that does selling fro different *laces

McDonald's ainl- consists of the distri+$tion channels the *rod$ct is availa+le to the c$sto er at the right #la%e, at the right time and in the right @uantity =ffers h-gienic environ ent good a +ience and great service @tarted giving internet facilities

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Areas for children where the- can *la- and en1o- with their #a il- and friends @*end so e >$alit- ti e together

7. Pri%e
The *rice is what the c$sto er *a-s) It incl$des direct and indirect costs as well as o**ort$nit- costs) The +enefits of the *rod$ct have to +e great eno$gh to warrant the *rice) 'rice incl$des all costs associated with the *rod$ct, service, or *rogra ) McDonald0s ca e $* with a ver- catch- *$nch line ;Aa* !e 8a ane ein ,+aa* !e 8a ane !e daa <) This was to attract the iddle and lower class cons$ ers and the effect can clearl- +e seen in the cons$ er +ase McDonalds has now) McDonalds has certain val$e *ricing and +$ndling strategies s$ch as ha**- eal, co +o eal, fa il- eal etc to increase overall sales vol$ es) 'ricing incl$des the list of *rices G disco$nt availa+le

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@*ecial offer s$ch as ha**3eavil-

eal ,Dal$e

eal G (o +o

eal)

ar!eted ;3a**- 'rice Men$<)

-- Pr m ti n
'ro otion incl$des all for s of co $nication -o$ $se to co $nicate the +enefits of -o$r offering to the target ar!ets) The o+1ective is to *ers$ade the c$sto er in s$ch a wa- that he or she recogni8es that -o$r offering is $ni>$el- >$alified to eet his or her needs) There are three ain o+1ectives of advertising for McDonald0s are to a!e *eo*le aware of an ite , feel *ositive a+o$t it and re e +er it) The right essage has to +e co $nicated to the right a$dience thro$gh the right edia) McDonald0s does its *ro otion thro$gh television, hoardings and +$s shelters) The- $se *rint ads and the television *rogra es are also an i *ortant ar!eting edi$ for *ro otion)

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The ter *ro otion i2 is co onl- $sed to refer to the t-*es of co $nication that are availa+leH advertising, *$+lic relations, *ersonal selling, *$+licit-, and sales *ro otion)

Individ$al co Mass co

$nication

$nication

#ree distri+$tion of children to-s) @o e of the ost fa o$s ar!eting ca *aigns of McDonald0s areH

;Ko$ Deserve a +rea! toda-, so get $* and get awa-6 To McDonald0s< ;Aa* !e 8a ane ein ,+aa* !e 8a ane !e daa <)

;#ood, #ol!s, and #$n< ;I0 loving it<

5m# rtan%e

! P1C in M%& nalds

The re>$ire ents of c$sto ers change over ti e and th$s the *rod$ct offering has to +e changed accordingl-) "hat is the fashion toda- a- +e o$t of ar!et within few wee!s) Th$s contin$o$s innovation is re>$ired)

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To co$nter these changes McDonalds has contin$o$sl- introd$ced new *rod$cts and has *hased o$t the old ones which were at the decline stage of their 'E() The introd$ction is ti ed s$ch that the new *rod$ct does not canni+ali8e the *rod$ct alread- in the at$rit- or growth stage) Th$s the secret lies in getting *rofits with different *rod$cts in the different stages of the 'E()

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C n%lusi n
To (oncl$de, McDonalds has $ndergone several changes since its ince*tion in @an %ernardino, (alifornia) The fast food chain has con>$ered the ?)@) and is also world wide s*read thro$gho$t) McDonalds are doing well in their ho e co$ntr- and other co$ntries aro$nd the world) "e loved McDonalds +eca$se McDonalds a!es $s @ ile) The- served for c$sto ers and res*ected their c$sto ers) That is wh- an- *eo*le li!e McDonalds as a ### 9#avorite #ast #ood:) It a!es $s fat +$t we still li!e to eat it +eca$se it is delicio$s) After doing anal-sis and strategies of McDonalds, we ca e to !now anthings a+o$t inner side and how the- +eco e s$ccessf$l)

Suggesti n
Mcdonalds sho$ld start with cholesterol free *rod$cts This is - *ersonal s$ggestion) M- *arents alwa-s restrict e fro eating McDonalds food as the- thin! and have an i age of avai+ilitof $nhealth- ,fatt- food in McDonalds as ost of o$r *arents haveNIndianO) @o for e, Mcdonalds sho$ld a!e an atte *t and tr- to vanish this i age fro the inds of o$r elders +- a!ing n$tritional *rod$cts and a!ing effective advertise ents in this concern to flo$rish its +$siness in india)

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=ibli gra#hy
,. www.g gle.% .in

*. www.mcdonaldsindia.com 3. htt*HLLen)wi!i*edia)orgLwi!iLMcDonald's J) www.mcdonalds.com

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