BUSINESS STRATEGIES OF

Group Member are:

MOHIT GUPTA NEHA ANANDANI RONIKA SARIYAL SHIVALI PRIYADARSHINI KUASTUBH DALAL MILAN CHIVILKAR

Donalds INTRODUCTION
McDonalds is one of the best known brand worldwide. Founded in: 15 May 1940 in CALIFORNIA . Founders RICHARD & MAURICE MACDONALS It is worlds leading food service provider with 31000 restaurants serving in 119 countries serving 50 million customers each day. McDonalds entered India in 1996.

BUSINESS MODEL:

Franchise Model Only 15% of the total number of restaurants are owned by the Company. Act like a retailer and think like a brand

In India
McDonalds is a joint venture company managed by two Indians: -Amit Jatia (west & south India) and -Vikram Bakshi (in north & east India). Celebrates 12 years of leadership. 160 restaurants across country.

PRODUCTS

SOME FACTS ABOUT (in the year 2011-12 )

Products- Fast food Revenue- US$ 27.006 billion Operating income-US$ 8.529 billion Net income-US$ 5.503 billion Total assets-US$ 32.989 billion Total equity-US$ 14.390 billion Employees- 420,000

Strategic issues ( Global)

Customer driven and goal oriented. Achieving sustainable, profitable growth. Designed to increase restaurant visits and grow brand loyalty among new & existing customers. Build financial strength.

Strategic issues (in India)

Market entry in a developing country with low PCI levels Evaluating market attractiveness . Compatibility between product adaptation & local responsiveness. Framework for assessing Industry / Market attractiveness.

The Indian Challenge

Much higher degree of adaptability 40% Vegetarians Vegetarian selections to suit Indian taste Maharaja Mac replaced Big Mac, Chicken Patty instead of Beef Respect for local culture- Special Indian menu, No beef or pork items in India Mc Aloo burger, Veg. Salad Sandwich, Mc Masala & Mc Imli sauces. Only vegetable oil used as a cooking medium

Indian Marketing Strategy

Promotional strategy - Freshness, nutrition & value

Segment- The Young family & Kids.

Target- The young family who eats out . Focus- Attracting children, so family follows .

Positioning- McDonalds mein hai kuch baat a place for

the entire family to enjoy .

Differentiation- highlighting brand, food & variety

Happy meal film on Cartoon Network, Zee Special promotions during festivals

PROMOTION STRATEGY
McDonalds in India developed a range of 100% pure Veg food, along with Non-Veg range. Competitors was more.

McDonalds efforts were aimed purely at driving traffic in.

McDonalds introduced home delivery system in stipulated areas.

Also introduced samples with the core products

Objectives of Promotion Strategy

Key objectives of McDs promotion strategy were to, Get them in. Trade them up. Get them back .
Get Them In : To make consumers step into McDonalds restaurant.

 Trade Them Up : To shift the consumers to McDonalds core products like Burger with cheese, McChicken Burger, Fillet-o-Fish, etc., Get Them Back : To increase the frequency of visit by making the McDs brand experience.

Target Segment and Positioning

McDonalds was positioned as a family restaurant.

McDonalds strategy is obviously to make the eatingout function the focus of these outings.
Focused on Price Penetration. In 1998 McDonalds had achieved sufficient level of success, on their offerings & then educated customers about their core strengths. Service, hygiene, products etc.,

7 Ps OF Mc.DONALDS
PRODUCT PRICE PLACE PROMOTION PROCESS PEOPLE PHYSICAL EVIDENCE

M cDonal ds: The Big Shark n the Ocean

4 Reasons why MC DONALS is succeeding in INDIA

Sensitivity to local taste (no beef or pork) Affordable Prices Promoting a family -dining experience Innovative Practices ( eg. Homedelivery)

FREQUENT VISITS

SWOT ANALYSIS
STRENGTHS WEAKNESS Strong brand name, image and brand Due to fierce competition in the industry awareness. the customers are not that loyal to a particular brand. Introduction of localized and global products in the local Indian market. The product line is not diversified when it is compared with the product lines of Strong financial performance both competitors. locally and internationally.

OPPORTUNITIES THREATS The entry into the breakfast category The market share of the organization is can be very fruitful for McDonalds . shrinking drastically because new entrants are entering in the fast food market. Freebies and different discounts which can easily enhance the customer Changing lifestyles and tastes can also base of the organization be considered as the threat.

SUCCESS STORY OF Mc. DONALDS

McDonald's is booming, despite all the economic destruction going on around it. Some figures: It has been the second-best performing stock in the Dow in 2011.

In Q3 it beat revenue and profit projections yet again, its stock is up 63% in the last three years and same store sales continued to climb for the 103rd month, reports Julie Jargon at the Wall Street Journal.
The success goes back further than that, too. Since 1980, McDonald's has absolutely blown away some of the biggest Dow blue chips around (like IBM, DIS, GE and XOM), notes Bespoke Investment Group.

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