SERVICE MARKETING MIX

ON MCDONALDS
Aditya.S.Betala
Varun.A.Betala
Sanket.R.Fulfagar
 INTRODUCTION
Started in 1937 as barbeque drive in restaurant by two brothers Dick & Mac McDonald in
sanbernardino, California.
Raymond kroc, founder & builder of McDonalds Corporation was a milkshake machine salesman
prior to meeting the two brothers in 1954.
By 1958 McDonald had sold its 100millionth hamburger.
McDonalds restaurant is operated by either a franchise, an affiliate, or the Corporation itself.
Revenues comes from the rent royalties & Fees paid by the Franchisees, as well as sales in company
operated restaurants.
Currently McDonalds a chain of family restaurants Operates in 119 countries & having more than
36,525 restaurants & serving 68million customer everyday by 4,20,000 employees
Low price, Speed, Service & cleanliness became the critical success factor of the business.
McDonalds established in India on October 13 1996.
McDonalds India is a 50-50 J.V. Partnership between McDonalds corporation [USA] & 2 Indian
Businessman-Amit Jatia & Vikram Bakshi.

Source-www.mcdonaldsindia.net
Industrial Analysis Source-www.mcdonalds.com
 MCDONALDS VALUE CHAIN ANALYSIS
Inbound logistic - Food and materials to restaurants through
approved third party logistics.
Operations - Ensures fixed process in food preparation. It operates
in Conventional franchising, Developmental license, Affiliates.
Outbound logistic - Macdonalds restaurants operate in the
following formats: sit-down restaurants, drive-thru, counter-
service outlets in food courts.
Marketing & Sales - McDonalds uses print and media
advertising.
Service -High speed services.

Operational Formats of McDonalds

Source- http://research-methodology.net/mcdonalds-value-chain-analysis/
INDUSTRIAL ANALYSIS[CONTINUED]
 MCDONALDS 5 FORCES ANALYSIS(MICHAEL FIVE FORCES MODEL)
1-Threat of Competition-HIGH
Very similar products in the fast food industry.
High competitors advertising capabilities.
Location of outlets are closed enough ex KFC, Star Bucks etc.
2-Threat of New Entrants-MODERATE.
Low switching cost.
Moderate capital cost.
High cost of Brand Development.
3- Bargaining Power of McDonalds Customers/Buyers (Strong Force)
Low switching costs.
Large number of providers .
High availability of substitutes.
 CONTINUED

4- Bargaining Power of McDonalds Suppliers (Weak Force)-

Large number of suppliers.
Low forward vertical integration.
High overall supply.
5- Threat of Substitutes or Substitution (Strong Force)
High substitute availability.
Low switching costs.
High performance-to-cost ratio.
Sources- McDonalds Corporation Form 10-K 2014.
Roy, D. (2011). Strategic Foresight and Porters Five Forces. GRIN Verlag.
United States Department of Agriculture Economic Research Service (2015). Food Service
Industry Market Segments.
 SWOT ANALYSIS OF MC-D
Strengths-
Successful Advertisement & brand name.
Collaboration with coke, dannon yogurt, Heinz ketchup.
Socially responsible with charities.
Safety and quality food.
Weakness
Management failure to see trends that do not fit
High employed turnover
Price competition
Controlling quality with franchised operation
Negativity publicity-unhealthy food menu
 Opportunities
Upscale restaurants
Serving only1% of the world population
Organic food for health conscious
Expanding to new part of globe
Threats
Sued for unhealthy food many times
Health concern
Competitors
Contamination risks
Geopolitical issue affect
 7PS OF MCDONALDS
1P-Product.
Product Profile
Vegetarian Menu.
Non-Vegetarian Menu.
Beverages.
Frozen Deserts.
Product Attributes.
Care for customers sentiments towards religion
& Culture.
It has separate cooking areas & Equipment's.
 2P-PRICE

Quite Affordable Products.

o Brand Affordability.[B.A] Ex-McAloo tikki Rs20 to 39etc.
o Brand Core Value product[B.C.V]Ex- McVegiee Rs 50 to 60etc
Psychological Connotations.
Cost Leadership.
Heavily Marketed Happy price Menu.
Many Combos.
Low Cost Food Franchise
Source-www.marketing91.com
 3P-PLACE
Located in Prime Locations[Malls, Shoping Complex's].
Almost In all big cities-Easily accesible.
Drive-in & Drive through Options MC-D Future Convenient to consumer.
Covering many residential areas ex-NCR.
Right of the High-ways.
 4P-PROMOTION
Advertising through T.V, Radio, Cinema, Online, Postersites & Press like News Paper &
magazines
Other Promotional methods include-Point of Sales Display, Merchandising, Direct mail,
Loyalty Schemes, Door Drops etc.
McDonalds Prime focus is on targeting children in Happy Meals to which are targeted at
children-Small toys are given along with meal.
Lucky draws, Scratch Cards.
Hoardings at Major Places.
 5P-PEOPLE

Philosophy of quality, services, cleanliness and value is the guiding force behind its service.
Fast friendly service.
McD has standard uniform for employs for equality service treatment
Delivery crew members carries basic operation of a restaurant. Ensure customer satisfaction
at the restaurants.
 6P- PHYSICAL EVIDENCE

The physical evidence appearance affects not only the impression outsiders have of a
business but all the way that business functions
Staff members
Location and appearance
Buildings Maintenance.
Interior. PHYSICAL EVIDENCE

CLEANNESS SPEED QUALITY TRANPARENCY

 7P-PROCESS

Food Producing Transparent to consumers.

New method of packaging & distribution.
Invented most Efficient cooking equipment.
Customers are invited to check the ingredients
used in food.
It allows customer to enter the area where the
Process takes place to have a Clearview of
what they are consuming.
 INNOVATIVE ADDITIONS-

McDonalds should go for healthy products like now its using Maida for producing breads it should
use wheat flour to produce it.
It should go for fruit based products like juices, fruit salads etc.
It should have tie ups with Indian Railways to serve the tourist/travellers.
It should also have tie ups with State bus transport corporation for serving road transport, Flights and
Cruse.
Corporate tie-ups for target reach.
It should have Table Tab system, the orders will be made directly from the table to the kitchen.
It should use tools like Customer relationship Management & Data Base Management.
Make to order.
Introducing of Jain Food.
It should host candle night dinner once in month as pilot project.
It should have food carnival relating to innovative fast food and apply in McDonalds.
Event Caterings.
 Thank You
Lets meet at
McDonalds