Marketing McDonalds

2. The Beginning
1954, Ray Kroc, 52, a distributor of milk shake maker
– Multimixer, heads west on hearing about the
McDonalds Bros hamburger stand in California
Seizing the opportunity, he pitched the idea of
opening up several restaurants to the McDonalds
brothers.
“Who could we get to open them for us?” they asked
“Well”, Kroc answered, “What about me?”
Ronald McDonald, introduced 1963, second only to
Santa Claus in terms of recognition.
Philosophy and Vision:-
McDonalds complete commitment to Quality, Service,
Cleanliness and Value (QSC&V)
“ We take the burger business more seriously than
anyone else” Ray Kroc
“ If you’ve got time to lean, you’ve got time to clean”
Ray Kroc

3. McDonalds India
To be India’s best quick service restaurant experience – supported by
principles and core values
Wholly owned subsidiary McDondalds India Private Limited.
Incorporated in India in 1993
McDonald’s opened its doors in India in Vasant Vihar, New Delhi in October
1996
Entered into two JVs with Connaught Plaza – Vikram Bakshi – North and
Hardcastle Restraunts - Amit Jatia – West

4. Product
Product Adaptation:-
Product adaptations in the Asian Markets to suit Indian
Tastes:-
- Burgers with Thai Basil – Thailand
- Teriyaki Burger – Japan
- Rice Dishes – Indonesia
- Aloo Tikki Burger – India
Indian Challenge:-
40% Vegetarians – vegetarian selections to suit Indian
Tastes
Maharaja Mac replaced Big Mac – Chicken Patty instead of
beef
Mc Aloo tikki and Puzza Mcpuff introduced

5. PRODUCT
Restaurants Management System (RMS):-
2 Separate Menus: Green – Veg and Purple – Non Veg
Separate veg, nonveg kitchens with dedicated staff, preparation and wrapping
areas
Different uniforms for kitchen crew to clearly distinguish roles
Family Restaurant Concept:-
The McDonalds experience for the whole family
Focus on kids – gifts galore
Brightly lit, casual, comfortable and contemporary look
Friendly and well trained staff
Emphasis on cleanliness

8. PLACE
Location
Macro Context – India
Micro Context:-
Tier 1 cities
Big family size restaurants:
High density marketplaces
Shopping Malls
Railway Stations/Metro Stations
Desert Kiosks
Tier 2 Cities
National Highways (Drive In’s)
Channels
Franchise Model
Company Owned Flagship Outlets
Coverage
Pan India Presence

9. PLACE
Distribution
Matching supplier production with deliveries to meet schedules and
restaurant needs
3 centralized distribution centers at Mumbai, Delhi and Kochi
Emphasis on economies of scale
– High storage volumes
QIP (Quality Inspection Program)
– Quality checks at 20 points in the supply chain
HACCP (Hazard Analysis Critical Control Point)
– Food safety standards emphasizing prevention of faults rather than
detection through inspection
“With a Cold Chain in place, there is practically no need for a knife in the
restaurant. Chopping and food processing is done in the plants. Restaurants
are confined to only the actual cooking” – Amit Jaitia
Logistics
AFL Logistics – 50:50 JV between AirFreight and FX Coughlin of USA-
McDonalds international logistics partner

10. PRICE
Pricing Strategy
“ Customers attracted purely by these unsustainable but attractive low prices
(Happy Price Menu) would not pay repeat visits” –
Development of a low cost supply chain – crucial enabling factor
(Trikaya Agri, Cremica Industries, Amrit Foods, Radhakrishna Foodland, Vista
processed foods, Dyanamix Diary)
Value Pricing:-
Happy Meals – Small Burgers, fries, coke and toy
Combo Meals – Burger, fries, coke (Medium size)
Competitive Pricing:-
KFC – Rs 59-79 (Burger and Drink)
Pizza Hut – Family Meal (2 medium pizza’s and pepsi) – Rs 350 – 400
Even these low prices ensure a 40% margin!!
Pricing lower than Pakistan, Sri Lanka and 50% lower than U.S.