A COMPARITIVE

STUDY
A COMPARITIVE
STUDY
Submitted to
Dr . Hitesh
Kapoor to
Submitted
Dr . Hitesh
Kapoor
 ACKNOWLEDGEMENT

We would like to express our sincere gratitude and appreciation to Dr.Hitesh Kapoor
who helped and inspired us to complete this project. We felt motivated and
encouraged every time we discussed this important topic in our classroom as well as
doing surveys. This project gave us an opportunity to participate and learn about the
role of women in entrepreneurship.
Finally, we are thankful to God, our parents and friends who have supported
us in our project for their support, encouragement and guidance. Without help of
anyone mentioned above, we would face many difficulties while doing this project.

Declaration
Except where duly acknowledged, we certify that this project is our own work under
the supervision of Dr. Hitesh Kapoor.
McDonalds
History of McDonald’s
Timeline
•1955
Ray Kroc opens his first restaurant in Des Plaines, Illinois and the McDonald's
Corporation is created.
•1957
Quality, Service, Cleanliness and Value (QSC& V) becomes the company
motto.
•1959
The 100th McDonald's opens in Chicago.
•1961
Hamburger University opens in Elk Grove, near Chicago.
•1963
One billion hamburgers sold. Ronald McDonald makes his debut.
•1964
Filet-O-Fish sandwich is introduced.
•1965
McDonald's Corporation goes public.
 Timeline cont…
•1967
The first restaurants outside of the USA open in Canada and Puerto Rico.
•1968
The Big Mac is introduced. The 1,000th restaurant opens in Des Plaines, Illinois.
•1972
A new McDonald's restaurant opens every day The Quarter Pounder is introduced.
•1973
Egg McMuffin is introduced.
•1974
The first Ronald McDonald House opens in Philadelphia. The Happy Meal is
launched.
•1983
Chicken McNuggets is introduced. New Hamburger University campus opens in
Oak Brook, Illinois. Set in 80 wooded acres. Training is provided for every level of
McDonald's management worldwide
.
 Timeline cont…
•1984
50 billionth hamburger sold. Ronald McDonald Children's Charities is founded in
Ray Kroc’s memory to raise funds in support of child welfare.
•1989
McDonald's is listed on the Frankfurt, Munich, Paris and Tokyo stock exchanges.
•1990
McDonald's opens in Pushkin Square and Gorky Street, Moscow.
•1993
The first McDonald's at sea opens aboard the Silja Europa, the world's largest
ferry sailing between Stockholm and Helsinki.
•1994
Restaurants open in Bahrain,Bulgaria, Egypt, Kuwait, Latvia,Oman, New
Caledonia, Trinidad and United Arab Emirates, bringing the total to over 15,000
in 79 countries
on 6 continents.
•1996
McDonald's opens in India – the 95th country.
McDonald's - A Global Phenomenon.

McDonald's opened its doors in India in October 1996.

Ever since then, their family restaurants in
•Mumbai
•Delhi
•Pune
•Ahmedabad
•Vadodara
•Ludhiana
•Jaipur
have proceeded to demonstrate, much to the delight of all
our customers, what the McDonald's experience is all
about.
 Business Model
•Franchise Model
•Product Consistency
•Act like a retailer and think
like a brand
 •Franchise Model
Only 15% of the total number of restaurants are
owned by the Company. The remaining 85% is
operated by franchises. The company follows a
comprehensive framework of training and
monitoring of its franchises to ensure that they
adhere to the Quality, Service, Cleanliness and
Value propositions offered by the company to its
customers.
 •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
geographies.
like a retailer and think like a bra

McDonald’s focuses not only on delivering sales for the immediate

present, but also protecting its long term brand reputation.
McDonald’s entered India in 1996. McDonald’s India has a joint
venture with Connaught Plaza Restaurants and Hard Castle
Restaurants. Connaught Plaza Restaurants manages operations in
North India whereas Hard Castle Restaurants operates restaurants in
Western
India. Apart from opening outlets in the major metros, the company
is now expanding to Tier
2 cities like Pune and Jaipur.
 Challenges in Entering Indian Markets

•Regiocentricism: Re-engineering the menu - McDonald’s has

continually adapted to the customer’s tastes, value systems,
lifestyle, language and perception. Globally McDonald’s was
known for its hamburgers, beef and pork burgers. Most Indians
are barred by religion not to consume beef or pork. To survive, the
company had to be responsive to the Indian sensitivities. So
McDonald’s came up with chicken, lamb and fish burgers to suite
the Indian palate.
•The vegetarian customer – India has a huge population of
vegetarians. To cater to this customer segment, the company came
up with a completely new line of vegetarian items like McVeggie
burger and McAlooTikki. The separation of vegetarian and non-
vegetarian sections is maintained throughout the various stages.
Segmentation, Targeting and Positioning
Customer Perception and
Customer Expectation
 Marketing Model

McDonalds Marketing Mix (P’s)5

After segmenting the market, finding the target segment
and positioning itself, each company
needs to come up with an offer. The 5 P’s used by
McDonalds are:
1. Product
2. Place
3. Price
4. Promotion
5. People
 Product
Product is the physical product or service
offered to the consumer. Product includes
certain aspects such as packaging,
guarantee, looks etc. This includes both the
tangible and the nontangible
aspects of the product and service.
McDonalds has intentionally kept its
product depth and product width limited.
McDonalds studied the behaviourof the
Indian customer and provided a totally
different menu ascompared to its
International offering
 Place

Where should be the product be available and the role

of distribution channels?
The place mainly consists of the distribution channels.
It is important so that the product is available to the
customer at the right place, at the right time and in the
right quantity. Nearly 50% of U.S.A is within a 3
minute drive from a McDonald’s outlet.
 Price
Pricing includes the list price, the discount
functions available, the financing options
available etc. It should also take into the
consideration the probable reaction from the
competitor to the pricing strategy. This is the
most important part of the marketing mix as
this is the only part which generates revenue.
All the other three are expenses incurred. The
price
must take into consideration the appropriate
demand-supply equation.
McDonald’s came up with a very catchy punch
line “Aap ke zamane mein ,baap ke zamane ke
daam”. This was to attract the middle and
lower class consumers and the effect can
clearly be seen in the consumer base
McDonalds has now.
 Promotion
There are three main
objectives of advertising
for McDonald’s are

•To make people aware of an

item

•Feel positive about it

•Remember it
 Peopl
e
McDonald’s understands the value 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.
This is important as it must precede external marketing.
This includes hiring, training and motivating able
employees. This way they serve customers well and the
final result is a happy customer.
Importance of PLC in McDonalds
SWOT Analysis
 Exhibits
McDonald ’ s Indian Menu
Vegetarian Menu
Analysis Of Mc Donald’s
KENTUCKY FRIED CHICKEN
( KFC )
Introduction
•

• KFC Corporation, or KFC, founded and also known

as Kentucky Fried Chicken, is a chain of fast
food restaurants based in Louisville, Kentucky.
KFC is a brand and operating segment, called a
"concept" of Yum! Brands since 1997 when that
company was spun off from PepsiCo.
• KFC primarily sells chicken in form of pieces,
wraps, salads and sandwiches. While its
primary focus is fried chicken, KFC also offers a
line of roasted chicken products, side dishes
and desserts.
 Kentucky Fried Chicken
• Four P’s of
Marketing mix.
Marketing Mix

• The marketing mix is generally

accepted as the use and
specification of the 'four Ps'
describing the strategic position of
a product in the marketplace.
• Product
• Price
• Place
• Promotion
 Product
•Anything that can be offered to a market to
•satisfy a want or need.

• KFC's specialty is fried chicken served in

various forms. KFC's primary product is
pressure-fried pieces of chicken made with
the original recipe. The other chicken
offering, extra crispy, is made using a
garlic marinade and double dipping the
chicken in flour before deep frying in a
standard industrial kitchen type machine.
 Segmentation
• Geographic segmentation :
•KFC has outlets internationally and

sells its products according to

geographic needs of the customer. In
India KFC focuses how geographically
its customers demand different
products. In north India Chicken is
the main selling product, while in the
south the Veg. items sell more than
the chicken.
 Segmentation
• Demographic Segmentation
•In demographic segmentation, the market is divided into

groups based on an age, gender, family size, income,

occupation, religion, race and nationality. 

KFC divides the market on demographic basis in this

•

way: 
 
• Age is between 6-65.
• Gender is both males and females.
• Family size is 1-2, 3-4, 5+
• Income is Rs 10,000 n above.
• Family lifestyle is almost all.
•
 Segmentation
• Psychographic segmentation
•Dividing a market into different groups based on social class,
lifestyle, or personality characteristics is called
psychographic segmentation.
•KFC divides market on the basis of psychographic variables

like  

• Social class- Upper and Middle class.

• Lifestyle is not specific.
• Personality is ambitious and
authoritarian
•
 TARGET MARKET
• “The process of evaluating each market
segment’s attractiveness and
selecting two or more segments” 

• As the outlets of KFC are in posh area and

prices are too high (overhead expenses-
rent, air-conditioning, employees), so KFC
targets upper and middle classes. Target
market depends upon size and growth rate
of population, Company resources and
structural attractiveness of market
segment.   
 Market Positioning
KFC uses its attributes to Position its Product(Fried Chicken)

• For a product to occupy a clear,

distinctive and desirable place
relative to
•“Competing products in the minds of

target consumer.”
• In KFC feedback is taken from the
customer in order to know the
customer demands and then
improvements are made in
products. KFC focuses on pure
and fresh food in order to create
a distinct and clear position in the
minds of customers KFC has a
strong brand name and they are
leading the market in fried
chicken. 
 Price
• Price is the any amount of money that
customers have to pay while
purchasing the product. More broadly,
price is the sum of all the values
that consumers exchange for benefits
of having or using the product or
services
Price
Demographic factors
• Age: Generally there is no age limit focus
by the KFC. The target and focus is on
each and every individual in a society.
KFC finds its largest demographic in the
young of any society.
• Gender: Both male and females are focused
by KFC, gender does not play any role
here.
• Household Size: This plays a vital role in
the demographic factor of the KFC.
Generally they target whole families
rather than single persons. This being
the reason for their Family Meals which
are basically bundled items served at a
nominally cheaper rate.
Price
Economic Factors
• Income: Income is an important
key factor for KFC. This
factor decides which class
is to be targeted. In the
early rise of KFC they
focused on the upper class
but slowly are introducing
economy meals that attract
the lower to middle classes.
• Consumption Behavior:  It
estimates the behavior of
people, their liking and
disliking towards the
pricing of the products.
•
Price
Geographic location
preference :
• u rb a n
• se m iu rb a n
•
Price
Behavior segmentation
• taste conscious
• quality conscious 
• class
• combination of product and quality
•
Price
Pricing Strategy
• Market skimming: KFC globally
enters the market using market
skimming. Their products are priced
high and target the middle to upper
class people. Gradually they trickle
down the prices focusing on the
middle to lower class people to
penetrate both sides of the market.
•
Price
Competition
• We can compare the price of their
products with McDonald, Dominoes
and Pizza Hut. If the competitor
provides the same product at a
lower price then the organization
usually lowers the price of its
product too. In the case of KFC,
Fried Chicken is its main selling
point and controls a monopoly
over the Indian fast food market
(only with fried chicken). It
prices its burgers, French fries
and soft beverages with relation
to its competitors.
•
Price
Cost Based
• KFC price their product keeping
different points in view.
They adopt the cost base
price strategy. Pricing of
the product includes the
govt. tax and excise duty and
then comes the final stage of
determine the price of their
product. The products are bit
high priced according the
market segment and it is also
comparable to the standard of
their product. In the cost
based method we include the
variable and fixed cost. 
 Place
• TARGET AREAS
• “Free home Delivery” strategy – They
provide free home delivery to offices
& homes (select countries).
• Accessibility  – Resulting in several
outlets to cater to the needs of people
in & around the city.
• Hectic lifestyle  – Due to the hectic
lifestyle of office goings individuals
the fast food concept saves time of
preparing food and gives the customer a
full meal quickly.
• Economically convenient – The pricing
appeals to the many classes of a
society.
•
Place

TARGET MARKET
1.Location
– H e ctic life style o f in d ivid u a ls – giving them
m o re tim e a t w o rk a n d le ss stre ss a b o u t
w a itin g fo r fo o d .
– C o m m e rcia liza tio n of urban and sub -urban
m a rke ts le a d in g to m o re m id -se cto r
p e o p le th a t fin d h ig h -e n d e a tin g jo in ts
ve ry to exp e n sive .
– M id -se cto r p e o p le a re a lw a ys lo o kin g fo r
ch a n g e which KFC provides in their range
o f fa st fo o d .
– Q u a lity co n scio u s – people in urban areas
a re m o re co n scio u s a b o u t th e q u a lity o f
fo o d th a n ru ra la re a s.
Place
Target Market
•2. Placement of outlets
– D u e to K FC p la cin g itse lf clo se to sch o o ls,
co lle g e s, cin e m a s a n d m a rke ts w h ich a re
m o stly p o p u la te d b y th e yo u n g a n d th o se
w h o a re in a h u rry , K FC e n jo ys a la rg e
n u m b e r o f fo o tfa lls e ve ryd a y. In a d d itio n ,
th e y a lso h a ve o u tle ts clo se to n o n -
ve g e ta ria n s ( m o stly M u slim p o p u la te d
a re a s).
–
Place
STRATEGY
•

• Given the competitive nature of fast

food joints, KFC uses the “Push
Strategy” to help them create:  
– Awareness
– Be different
–Sound attractive
–
•
 Promotion
•Promotion is the method used to inform and educate the
chosen target audience about the organization and its
products. Using all the resources of promotion:
• Advertising
• Sales Promotion
• Public Relations
• Events and Experiences
• Coupons, Discounts and Bundled packages
• An organization finds most of its meanings and
survival through promotion.
•At KFC, Promotion is the main tool to bring all chicken

lovers attention towards its delicious one-of-a-kind

product, the Fried Chicken.
•
Promotion A d ve rtisin g
•   The logo of the smiling Colonel is probably one of the
most recognized faces in the world and instantly brings the
image of fried chicken to one’s mind.
•
•
•
• KFC and its new company jingle, “finger lcikin good” is a
frequent announcement on televisions, billboards, flyers
and radio. The concept of showing a normal customer
deeply involved in devouring his piece of chicken
usually turns on the drool factory in everybody’s mouth
and makes them rush to the nearest KFC. In India where
chicken lovers are plenty abound these ads featuring
normal people connect instantly and create a rush at
their outlets. Using the following methods KFC spreads
its message of finger licking good chicken.
•
Promotion
Advertising
• U sin g Reminder advertisements
KFC stimulates repeat purchases of
its products. The company anthem
“finger lickin good” is just a
wake up call to the consumer to
remind them how good they felt the
last time they ate KFC chicken.
• Sponsorship is another tool to
strengthen an organizations image.
KFC is currently the sponsor of
the Australian Cricket Team and
the colonel logo can be seen on
their uniforms throughout the
matches.
•
Promotion
S a le s Pro m o tio n
• K FC u se s th e fo llo w in g to o ls to
fu rth e r e n h a n ce its sa le s.
• Pre m iu m s
• E xh ib its
• C oupons
• E n te rta in m e n t
•
Promotion
Sales Promotion
• A llK FC o u tle ts o ffe r its cu sto m e rs w ith
va rio u s fo rm s o f in ce n tive s to b u y its
C h icke n . U sin g co u p o n s th a t o n e ca n
a cq u ire a fte r sp e n d in g a p a rticu la r
a m o u n t o ve r a p e rio d o f fixe d tim e ,
cu sto m e rs ca n e n jo y th e b e n e fits o f fre e
m e a ls o r fre e a d d - o n s. A d d itio n a lly th e y
p ro vid e m e a lvo u ch e rs a n d excitin g o ffe rs
in th e ir p rin t a d s, w h ich th e cu sto m e r
m u st cu t a n d b rin g a lo n g .
•
 SURVEY
ANALYSIS
 QUESTION 1
Which age group do you belong
A) Below 18 to?
B) 18-25
C) 25-35
D) 35-50
E) Above 5
 QUESTION 2
What is your profession?
A) Student
B) Service
C) Business
D) Others
 QUESTION 3
Are you a vegetarian / non -
vegetarian?
A) Vegetarian
B) Non-Vegetarian
C) Occasionally Non-vegetarian
 QUESTION 4
How often do you visit
here?
A) Daily
B) Once a week
C) Once a month
D) At leisure
 QUESTION 5
Who generally
accompanies you?
A) Family
B) Friends
C) Alone
D) Does it really matter?
 QUESTION 6
What is your saying on the pricing
of the joint?
A) Nominal
B) Expensive
C) Value for Money
 QUESTION 7
How much do spend on an average
per visit? 
A) Below Rs 100
B) Rs 100 to Rs 500
C) Above Rs 500
 QUESTION 8
Do you get drawn in by the television
commercials of the food items?
A) Yes
B) No
 QUESTION 9
Do you think the food is
indigenous to the place?
A) Yes, I can’t find such food anywhere
B) No, But I come here for the value
C) I come here for its Non Veg delicacies
D) For its Vegetarian preparations and its variety
 QUESTION 10 
What do you think about the hygiene
of the place?
A) Satisfactory
B) Needs attention
C) Very poor Indeed
 QUESTION 11
How do you find the staff?
A) Friendly
B) Indifferent
C) Rude
 QUESTION 12
What do you think about the marketing strategy of the joint

A) Loud and widespread

B) Low profile
C) Attended Adequately
 QUESTION 13
Given a preference which of these would you choose?
A) Mc Donalds
B) KFC
C) Gopals
D) Subway
E) Other