1

Can you guess the name of the company which:

Is the ninth most valuable brand in the world?
Has replaced the US army as the Nations largest ob training organi!ation?
Controls the mar"et share of more than # food chains ta"en together in
$merica?
It%s none other than &c'onald%s Corporation US$( )oo"ing at the above statistics ma"es
one wonder that what is the driving force behind all these achievements? How is it that
the chic"en burger available in San *rancisco is same as the one available in 'elhi?
&any of these +uestions have been answered in the boo" ,&c'onald%s: -ehind the
.olden $rches/ written by 0ohn )ove( -ut are these standards being carried out in India
as well?
1he golden arches of &c'onald%s are slowly becoming an integral part of the Indian
landscapes( 2veryone "nows &c'onald%s is big3 but very few "now ust how significant
its impact on Indian business really is( The inside of McDonalds remains a mystery.
&c'onald4s India is a oint venture of &c'onald%s Corporation with $mit 0atia and
5i"ram -a"shi( $mit 0atia handles the operations in western region whereas 5i"ram
-a"shi in the northern region(
&c'onald4s India is an employer of opportunity3 providing +uality employment and long6
term careers to the Indian people( 1he average &c'onald4s restaurant employs more than
177 people in 89 different positions : from cashier to restaurant manager( &c'onald4s
world class6training inputs to its employees can be seen in the present close to 8777
employees currently in &umbai and 'elhi(
8
SYNOPSIS sS
-ut the most overloo"ed fact of &c'onald%s India is its contribution to the food
processing industry( Six years prior to the opening of the first McDonald's restaurant
in India, McDonald's and its international supplier partners worked together with
local Indian ompanies to de!elop products that meet McDonald's rigorous "uality
standards. ;art of this development involves the transfer of state6of6the6art food
processing technology3 which has enabled Indian businesses to grow by improving their
ability to compete in today%s international mar"ets( &c'onald%s dedication to its
suppliers has lead to their growth3 beyond the boundaries of the India(
1hese aspects of &c'onald%s do not get covered and highlighted by the news hungry
press( -ut when the false news of using beef tallow in the *rench fries hit the mar"et3 the
press did not leave a chance to e<aggerate it( 'espite the fact that right form the
beginning= no beef ingredients have been used in any of the products in India(
1he mar"eting agency of &c'onald%s3 &udra comes to its rescue in such times( 1he
advertisements created by &udra are a rage all over the nation3 especially amongst the
children( >ho can forget the little "id who gets nervous in the school competition3 but
becomes happy again when his father ta"es him to &c'onald%s?
&c'onald%s India has tried not to leave any stone un6turned in its obective to satisfy the
Indian customer( -ut in $mit 0atia%s words3 #ustomers are generally not forgi!ing.$
$ccording to the survey conducted3 customers demand low prices3 more seating space3
more variety3 home delivery3 and the list is endless(
1he fundamental secret to &c'onald%s success is the way it achieves uniformity and
allegiance to an operating regimen( &c'onald%s India has to adhere to many rules and
regulations laid down by the parent company3 and it still has to cater to the Indian
customer and his needs( McDonalds India is a case study on how to mix conformity
with creati!ity.
#
In
1?9@3 a fifty6two6year6old mil"6sha"e machine salesman saw a hamburger stand in San
-ernardino3 California3 and envisioned a massive new industry: fast food( In what should
have been his golden years3 Aaymond Broc3 the founder and builder of &c'onald4s
Corporation3 proved himself an industrial pioneer no less capable than Henry *ord( He
revolutioni!ed the $merican restaurant industry by imposing discipline on the production
of hamburgers3 *rench fries3 and mil" sha"es( -y developing a sophisticated operating
and delivery system3 he insured that the *rench fries customers bought in 1ope"a would
be the same as the ones purchased in New Cor" City( Such consistency made &c'onald4s
the brand name that defined $merican fast food(
%orlds &ldest McDonalds
1his @@ year6old site is the oldest in the worldwide
chain of 873777 restaurants and the last one with red6
and6white striped tile e<terior( $fter opening in 1?9#3
it immediately became the standard for the fast food
franchises across the country( 1he building and its D76
foot high neon sign with ESpeedee the ChefE are
eligible for listing on the National Aegister of Historic
;laces(
2mployees wear 974s style uniforms of paper hats3
white shirts and bolo ties( 1he restaurant serves the
original menu of hamburgers3 cheeseburgers3 fries and old6fashioned mil"sha"es( $lso
available are more recent &c'onald4s items such as -ig &acs and Happy &eals(
&c'onald4s reopened the facility as it was with wal"up windows and outdoor seating(
1hey also constructed and addition housing a museum3 gift shop3 restrooms and more
outdoor seating(
@
HISTORY OF MCDONALDS
'.( %orlds &ldest
McDonalds
1955
Ray Kroc opens his first restaurant in Des Plaines,
Illinois and the McDonald's Corporation is created.
1957
Quality, Service, Cleanliness and Value QSC! V"
#eco$es the co$pany $otto.
1959
%he &''th McDonald's opens in Chica(o.
1961
)a$#ur(er *niversity opens in +l, -rove, near
Chica(o.
1963
.ne #illion ha$#ur(ers sold.
Ronald McDonald $a,es his de#ut.
1964
/ilet0.0/ish sand1ich is introduced.
1965
McDonald's Corporation (oes pu#lic.
1967
%he first restaurants outside of the *S2 open in
Canada and Puerto Rico.
1968
%he 3i( Mac is introduced.
%he &,'''th restaurant opens in Des Plaines, Illinois.
1972
2 ne1 McDonald's restaurant opens every day.
%he Quarter Pounder is introduced.
1973
+(( McMuffin is introduced.
1974
%he first Ronald McDonald )ouse opens in
Philadelphia.
%he )appy Meal is launched.
1983
Chic,en Mc4u((ets is introduced.
4e1 )a$#ur(er *niversity ca$pus opens in .a,
3roo,, Illinois. Set in 5' 1ooded acres. %rainin( is
provided for every level of McDonald's $ana(e$ent
1orld1ide.
1984
6' #illionth ha$#ur(er sold.
Ronald McDonald Children's Charities is founded in
Ray Kroc7s $e$ory to raise funds in support of child
1elfare.
1989
McDonald's is listed on the /ran,furt, Munich, Paris
and %o,yo stoc, e8chan(es.
1990
McDonald's opens in Push,in S9uare and -or,y
Street, Mosco1.
1993
%he first McDonald's at sea opens a#oard the Sil:a
+urope, the 1orld's lar(est ferry sailin( #et1een
Stoc,hol$ and )elsin,i.
1994
Restaurants open in 3ahrain, 3ul(aria, +(ypt, Ku1ait,
;atvia, .$an, 4e1 Caledonia, %rinidad and *nited
2ra# +$irates, #rin(in( the total to over &6,''' in <=
countries on > continents.
1996
McDonald's opens in India ? the =6th country.
9
MCDONALDS IN INDIA
Mr. )atia and Mr. *akshi
&c'onald4s India is a oint6venture
company managed by Indians( &c'onald%s
India3 a subsidiary of &c'onald%s US$3 has
e<panded its presence in India via 8 oint
venture companies : Connaught ;la!a
restaurants and Hard castle restaurants(
&c'onald%s FIndiaG has a 97 per cent e+uity
sta"e each in both oint venture companies(
Connaught ;la!a restaurants manages operations and e<pansions across North India
F'elhi3 0aipur and ;unabG : led by 5i"ram -a"shi : and Hardcastle restaurants3 which is
headed by $mit 0atia3 manages operations and e<pansions across >estern India F&umbai3
;une3 and .uaratG(
$round the world3 &c'onald4s traditionally operates with local partners or local
management( In India too3 &c'onald4s purchases form local suppliers( &c'onald4s
constructs its restaurants using local architects3 contractors3 labour and 6 where possible :
local materials( &c'onald4s hires local personnel for all positions within the restaurants
and contributes a portion of its success to communities in the form of municipal ta<es and
reinvestment(
Si< years prior to the opening of the first &c'onald4s restaurant in India3 &c'onald4s
and its international supplier partners wor"ed together with local Indian Companies to
develop products that meet &c'onald4s rigorous +uality standards( ;art of this
development involves the transfer of state6of6the6art food processing technology3 which
has enabled Indian businesses to grow by improving their ability to compete in today%s
international mar"ets(
D


&c'onald%s worldwide is well "nown for the high degree of respect to the local culture(
&c'onald4s has developed a menu especially for India with vegetarian selections to suit
Indian tasted and culture( Beeping in line with this &c'onald4s does not offer any beef
and por" items in India( &c'onald4s has also re6engineered its operations to address the
special re+uirements of a vegetarian menu( 1he cheese and cold sauces used in India is
177H vegetarian( 5egetable products are prepared separately3 using dedicated e+uipment
and utensils( $lso in India3 only vegetable oil is used as a coo"ing medium( 1his
separation of vegetarian and non6vegetarian food products is maintained throughout the
various stages of procurement3 coo"ing and serving(
1he &c'onald4s philosophy of Iuality3 Service3 Cleanliness and 5alue
FISCJ5G is the guiding force behind its service to the customers( &c'onald%s India
serves only the highest +uality products( $ll &c'onald%s suppliers adhere to Indian
.overnment regulations on food3 health and hygiene while continuously maintaining
their own recogni!ed standards( $ll &c'onald%s products are prepared using the most
current state6of6the6art coo"ing e+uipment to ensure +uality and safety( $t &c'onald%s3
the customer always comes first( &c'onald%s India provides fast friendly service6 the
hallmar" of &c'onald%s that sets its restaurants apart from others( &c'onald%s
restaurants provide a clean3 comfortable environment especially suited for families( 1his
is achieved through &c'onald%s stringent cleaning standards3 carefully adhered to(
&c'onald%s menu is priced at a value that the largest segment of the Indian consumers
can afford( &c'onald%s does not sacrifice +uality for value : rather &c'onald%s
leverages economies to minimi!e costs while ma<imi!ing value to customers(
1he company has invested As @97 crore so far in its India operations out of its total
planned investment of As K97 crore till 877L(
L
&c'onald%s India ;vt( )td( has moved an application to the government see"ing
permission for payment and remittance of the initial franchise fee and royalty to &c
'onald%s Corporation(

1he permission has been sought on two grounds: &c'onald%s India would pay an
initial franchise fee of M@93777 on each of the &c'onald%s restaurants already franchised
or to be franchised3 in the future3 in India= and a royalty e+ual to 9 per cent of the gross
sales from the operations of all its Indian restaurants on a monthly basis to &c'onald%s
International(
1he company hopes to brea" even in 877K( 1hey currently serve around 9 million
customers a day and hope to grow at the rate of 97H to L7H a year(
In order to satisfy the palate of the local population in a country3 &c'onald4s offers a
regionali!ed version of its menu( 1he result is &c'onald4s foods and meals not seen in
other countries(
+sia
K
MCDONALDS Products
*ahrain
In addition to the &c$rabia3 &c'onald4s restaurants in -ahrain3 beginning in &arch
877K3 sell the &cCrispy3 a meal consisting of 13 83 or # chic"en strips served in a wrapper
for a single strip or in a bo< for 8 or #3 with a choice of barbecue3 sweet J sour3 or garlic
sauce( )i"e all &iddle 2astern &c'onald4s restaurants3 all food served in -ahraini outlets
is halal(
China
?
&c'onald4s Chinese New Cear meal3 grilled chic"en sandwich and twisted *rench fries(
1ray liner has an image of the Chinese !odiac(
In China3 the Chic"en &cNuggets come with the traditional --I3 Sweet J Sour3 and
Honey &ustard sauces3 but there4s also a chili garlic sauce Fvery popular in ChinaG( In
China there are specific &c'onald4s restaurants and counters for ice cream3 beverages3
and desserts Fotherwise rare in ChinaG( 1hey also include crispy chic"en wings on their
menu which comes in 83 @3 and D pieces( 1here is also a seasonal Chinese New Cear meal
available3 including .rilled Chic"en -urger3 curly fries3 with a horoscope of the twelve
!odiac animals of Chinese astrology and traditional EredE pac"ets3 or gift bags3 for
monetary gift giving as good luc"( Note that all chic"en burgers offered in Chinese
&c'onald4s use thigh fillet Feg ;remium .rilled 1high *illet -urger3 Hot and Spicy
.rilled 1high *illet -urgerG3 rather than breast meat as per usual in occidental countries(
,ong -ong
17
'uring the -un *estival on Cheung Chau3 a special item called &c5eggie -urgers were
sold(
&c'onald4s sells beef3 chic"en and por" burgers( *ried chic"en wings and nuggets are
also popular( In some restaurants3 a separate counter sells ice cream and desserts to
pedestrians( Soft Serve Ice Cream can be ordered with either red beans or green beans(
Some restaurants have a section for the &cCafN( $part from the general menu3 it also
promotes some other foods seasonally or longer3 li"e spicy french fries3 the Shogun
-urger Fa 1eriya"i por" patty with lettuce3 served in a sesame seed bunG3 .rilled Chic"en
-urger3 twisted macaroni brea"fasts3 salads3 soups3 pineapple or red bean sundae3
pineapple pies3 taco flatbreads with por"3 beef or chic"en3 rice fan6tastic Fa burger6li"e
entree with rice patties in place of bunsG and many others( Hong Bong hosts some of the
world4s busiest &c'onald4s with many operating round the cloc"( It also sells many toys
or dolls3 li"e Hello Bitty3 Snoopy3 and 'isney figures in addition to set meals3 which are
very popular( In Chinese New Cear3 red pac"ets Flai seeG are included in set meals( 'uring
the local -un *estival3 &c'onald4s restaurant on the island of Cheung Chau sells
mushroom burgers instead of hamburgers and any other items which contains meat( In
Bowloon ;ar"3 there is also a small counter named Snac" Station selling ice cream3 as
well as a counter that sells &c'onald4s drin"s in the swimming pool(
11
India
1he &cCurry ;an is a very popular dish across India( It is an original creation of
&c'onald4s India(
-eef and por" products are not served to cater to Indian religious sensitivities( Chic"en
Fonly HalalG along with fish are the only meat products used(
In India3 meat and vegetarian meals are prepared in separate areas of the restaurant
because of religious laws about preparation of food for vegetarians and meat6eaters(
Coo"s preparing vegetarian dishes wear distinctive green aprons(
1he -ig &ac is replaced by the &aharaa &ac3 which was originally made with lamb but
is now made with chic"en(
&e<ican6style wraps for both vegetarians and non6vegetarians3 such as the ;aneer6Salsa
wrap and the Chic"en6&e<ican wrap3 and Curry pans in Shahi6;aneer and Chic"en61i""a
variations are also offered(
Other items on the Indian &enu include chic"en products such as the &cChic"en -urger
and Chic"en &c.rill Fa burger with a thin chic"en patty3 thin slices of both onions and
tomatoes3 filled with green chutney replacing the usual layer of mayonnaiseG(
1he vegetarian burger menu consists of the &c$loo 1i""i -urger( It is a vegetable burger
with potato3 peas3 and spices3 tomato3 onion3 and a vegetable6tomato mayonnaise(
18
&c5eggie is another 5egetarian burger on the menu( It loo"s similar to the above
&c$loo 1i""i -urger3 but is made from mi<ed vegetables3 peas3 and spices3 lettuce and
veg mayonnaise Freferred to as 5eg Sauce in IndiaG(
$nother new &enu Item added is the &cSurprise burger( It contains a patty3 onion3 Italian
mayonnaise(1here is also a ;i!!a &c;uff3 consisting of a puff pastry stuffed with peas3
sliced cheese etc(
Indonesia
&c'onald4s sells fried chic"en3 which is by far more popular than the hamburgers(
&cAice is also offered3 a small mound of steamed3 plain rice( &cSoup is a chic"en
flavored soup with bits of reconstituted croutons and vegetables( $ bun containing a beef
patty covered with satay sauce Fspicy ground peanut sauceG is sold as &c Sate(
Malaysia
1here is a special menu named ;rosperity -urger only for the Chinese New year festive
season( 1here is also the $yam .oreng &c' which literally translated means &c'4s
*ried Chic"en3 a crispy two piece fried chic"en meal( 1he &cSpicy available in
Singapore is also available in &alaysia3 mar"eted under the name Chic"en &c'elu<e(
'uring the 877D football season3 spicy &cNuggets were also introduced for a short
period of time along with spicy $yam .oreng &c'( $nother long time favourite is -ubur
$yam &c' which literally translates to Echic"en porridgeE or congee( -ubur I"an &c'
which is fish porridgePcongee was also served for a short time(
*ried chic"en is also offered in &alaysia but it is not more popular than hamburgers as in
neighbouring Indonesia3 perhaps because of competition from Bentuc"y *ried Chic"en
and local fried chic"en outlets(
*or a limited time only3 a burger consisting of four beef patties3 called the &ega &ac3
was introduced in &alaysia(
1#
Pakistan
1here is a Spicy &cChic"en burger that has chutney in it( 1here is also a &cChutney
-urger3 a meatball sandwich called the &cBofta3 and strawberry custard pie( $lso3
&c$rabia was recently introduced3 with a chic"en patty rolled up in ;ita bread(
1@
.ogic/ Marketers ha!e four tools to use to de!elop an offering to
meet the needs of their targeted customers. ollecti!ely they are called the
marketing mix.

Cou may have heard of the Efour ;sE of mar"eting/ product, price, place3 and
promotion. Collectively these are called the marketing mix( &ore comprehensively they
are viewed as: product3 service3 or program 6 something of value you are offering the
customer3 client3 or par" visitor price 6 what the customer3 client3 or par" visitor pays
Fdirect costs are financial3 indirect or alternative costs are such things as time it ta"es and
the things people give up if they choose your offeringG
place3 distribution3 location3 or accessibility 6 where the transaction ta"es place3 perhaps
in a par" promotion or communication 6 this is how you inform the target mar"et the
benefits in your mar"eting mi<( Collectively these are the tools organi!ations uses to
develop offerings to satisfy their target mar"etFsG ((( the only tools at their disposal(
Aemember: If your mar"eting mi< doesn4t meet their needs they will not be satisfied 6 and
if they aren4t satisfied you are unli"ely to meet your obectives(
1he mar"eting mi< should be viewed as an integrated and coordinated pac"age of
benefits that reflect the characteristics of customers and various targeted publics and
satisfy their needs3 wants3 and e<pectations( Note that the elements of the mar"eting mi<
should be integrated because each element of the mix usually has some impact, direct or
indirect, on the other three. *or e<ample3 if you improve the product or service you
probably have to change the price because it costs more to produce( $lthough you may
not have to change where the product is delivered to the customer3 you will almost
certainly have to change the promotion or communication with the customer because you
need to tell the customer about the changes you have made in the product and how the
changes will ma"e it more desirable and satisfying(
19
Marketing Mix
One problem in many organi!ations is that different divisions may be responsible for
different elements of the mar"eting mi<( 1his happens even in well managed
organi!ations( 1he result is that the offering is confusing to the target mar"et( )ac" of
communication among divisions ma"es this problem worse( $nd if they don4t share the
same view of organi!ational obectives3 the problem is worse still(
1hese variables are "nown as the marketing mix or the 0 1's of marketing( 1hey are the
variables that mar"eting managers can control in order to best satisfy customers in the
target mar"et( 1he firm attempts to generate a positive response in the target mar"et by
blending these five mar"eting mi< variables in an optimal manner(
Product
1he product is the
physical product or
service offered to
the consumer( In the
case of physical
products3 it also
refers to any
services or
conveniences that
are part of the
offering( ;roduct
decisions include
aspects such as
function3
appearance3
pac"aging3 service3
warranty3 etc(
Price
;ricing decisions
should ta"e into
account profit
margins and the
probable pricing
response of
competitors( ;ricing
includes not only
the list price3 but
also discounts3
financing3 and other
options such as
leasing(

1romotion
;romotion decisions
are those related to
communicating and
selling to potential
consumers( Since
these costs can be
large in proportion
to the product price3
a brea"6even
analysis should be
performed when
ma"ing promotion
decisions( It is
useful to "now the
value of a customer
in order to
determine whether
additional customers
are worth the cost of
ac+uiring them(
;romotion decisions
involve advertising3
public relations3
media types3 etc(
Place
;lace For placementG
decisions are those
associated with
channels of
distribution that
serve as the means
for getting the
product to the target
customers( 1he
distribution system
performs
transactional3
logistical3 and
facilitating
functions(
'istribution
decisions include
mar"et coverage3
channel member
selection3 logistics3
and levels of
service(

1D
1roduct/ 1he product3 service3 or program includes both tangible and intangible
elements( 1he tangible3 of course3 are those things that the customer can see3 touch3 feel3
taste3 or smell( 1he intangible include such things as the image of the offering ((( which
includes the image of the organi!ation ma"ing the offering3 the psychological aspects of
pricing Fhigh price to many customers is e+uated with high +uality 6 and vice versaG(
1rice/ 1he price is what the customer pays( It includes direct and indirect costs as well as
opportunity costs( 1he benefits of the product have to be great enough to warrant the
price( ;rice includes all costs associated with the product3 service3 or program(
1lace/ 1he place is where the customer receives the product3 service3 or program( 1he
place of delivery3 including all of its resources3 is part of what the consumer buys( $ place
that meets his or her needs better may be worth more( 1he place may be a par"3 a visitor
center in the par"3 or an interpretive e<hibit along a trail( In setting its strategy3 the
organi!ation must determine how much the target mar"et is willing to pay for atmosphere
and physical resources of place(
1romotion/ ;romotion includes all forms of communication you use to communicate the
benefits of your offering to the target mar"etFsG( 1he obective is to persuade the customer
in such a way that he or she recogni!es that your offering is uni+uely +ualified to meet his
or her needs( 1he term promotion mi< is commonly used to refer to the types of
communication that are available: advertising3 public relations3 personal selling3
publicity3 and sales promotion( Some authors include direct mar"eting( >ord of mouth3
though seldom discussed3 is powerful promotion(
1L
1he mar"eting mi< principles Falso "nown as the @ p%s(G are used by business as tools to
assist them in pursuing their obectives( 1he mar"eting mi< principles are controllable
variables3 which have to be carefully managed and must meet the needs of the defined
target group( 1he mar"eting mi< is apart of the organi!ations planning process and
consists of analy!ing the defined:
How will you design3 pac"age and add value to the product? ;roduct strategies(
>hat pricing strategy is appropriate to use? ;rice strategies(
>here will the firm locate? ;lace strategies(
How will the firm promote its product ;romotion strategies(
1K
1roduct
Benef i t s of fered
>e must remember that &ar"eting is fundamentally about providing the correct bundle
of benefits to the end user3 hence the saying Q&ar"eting is not about providing products
or services it is essentially about providing changing benefits to the changing needs and
demands of the customer%(
1he vegetarian burger menu consists of the &c$loo 1i""i -urger( It is a vegetable burger
with potato3 peas3 and spices3 tomato3 onion3 and a vegetable6tomato mayonnaise(
&c5eggie is another 5egetarian burger on the menu( It loo"s similar to the above
&c$loo 1i""i -urger3 but is made from mi<ed vegetables3 peas3 and spices3 lettuce and
veg mayonnaise Freferred to as 5eg Sauce in IndiaG(
$nother new &enu Item added is the &cSurprise burger( It contains a patty3 onion3 Italian
mayonnaise(1here is also a ;i!!a &c;uff3 consisting of a puff pastry stuffed with peas3
sliced cheese etc(
&c'onald%s concentrated on studying the Indian culture3 its value6systems and its
influence in food consumption decision ma"ing( It found that although a substantial
proportion of the populations were non6vegetarians3 they stuc" to mostly fish3 mutton and
;roduct
'ecision
-randing Iuality *eatures
1?
chic"en( &uslim too" beef but though pig meat to be dirty= Hindus preferred neither beef
nor por"= Christian too" both beef and por"( &c'onald%s decided3 for the first time in
their business history3 to drop ham and beef burger from their menu( 1wo years bac"3 they
even e<cluded mutton burgers from their offerings(
&c'onald%s developed a menu especially for Indian with vegetarian selection to suite
Indian taste( It introduced products li"e &c1i""i $loo for the ;unabi taste buds(
&c'onald%s has also re6engineered its operation to address the special re+uirements of a
vegetarian menu( 1he cheese and cold sauces used in India is 177 H vegetarian(
&c'onald%s are committed for giving customers wholesome3 healthy3 and delicious food(
1hey ensure that the coo"ing area as well as coo"ing e+uipment for vegetarian products
is visibly segregated from the non 5egetarian sections( >hat%s more6 their crew members
coo"ing vegetarian food items are identifiable by their green aprons(
87
1ricing
;ricing is the only mi< which generates a turnover for the organi!ation( 1he remaining
#p%s are the variable cost for the organi!ation( It costs to produce and design a product3 it
costs to distribute a product and costs to promote it( ;rice must support these elements of
the mi<( ;ricing is difficult and must reflect supply and demand relationship(
1he customer4s perception of value is an important determinant of the price charged(
Customers draw their own mental picture of what a product is worth( $ product is more
than a physical item= it also has psychological connotations for the customer(
1he danger of using low price as a mar"eting tool is that the customer may feel that
+uality is being compromised( It is important when deciding on price to be fully aware of
the brand and its integrity( $ further conse+uence of price reduction is that competitors
match prices resulting in no e<tra demand( 1his means the profit margin has been reduced
without increasing sales(
1ricing Strategies
1enetration
Skimming
ompetition
1roduct .ine
*undle
1sychological
81
;HCSIC$) 25I'2NC2:
1he physical evidence factor of all the &c'onalds centers are the signboards3 golden
arches3 buildings3 interiors3 colours combination of yellow and red3 clean facilities3
visible food preparation section etc( the site shown in the picture is 98 years6old and is
the oldest in the worldwide chain of 87777 restaurants and the last one with red6and6
white stripped tile e<terior( $fter opening in 1?9#3 it immediately became the standard for
the fast food franchises across the country( 1he building and its D76foot high neon sign
with ,Speede the Chef/ are eligible for listing on the national register of historic(
$ very popular punch line of &cdonals6,$ap "e !amane mein3 baap "e !amane "a
daam/( 1he main reason of this price strategy was too attract the middle class J the
lower class of people in India( $fter this not only the upper class prefers going there but
all class of people go there(
5alue ;ricing
Happy meal : small burger 3fries 3co"eRtoy
&edium &eal Combo6 burger 3fries3co"e6veg As:L9 3&aharaa &ac &eal As: ?9
*amily 'ines under As: #77
;rice lower than ;a" 3Srilan"a 397H lower than U(S(

88
;romotion
$ successful product or service means nothing unless the benefit of such a service can be
communicated clearly to the target mar"et( $n organi!ations promotional mi< can consist
of:
1he promotions aspect of the mar"eting mi< covers all types of mar"eting
communications( 1he methods include advertising3 sometimes "nown as 4above the line4
activity( $dvertising is conducted on 153 radio3 cinema3 online3 poster sites and in the
press Fnewspapers3 maga!inesG(
Bey obectives of advertising are to ma"e people aware of an item3 feel positive about it
and remember it( 1he more &c'onald4s "nows about the people it is serving the more it
is able to communicate messages which appeal to them
&essages should gain customers4 attention and "eep their interest( 1he ne<t stage is to get
them to want what is offered( Showing the benefits which they will obtain by ta"ing
action3 is usually sufficient( 1he right messages must be targeted at the right audience3
using the right media(
Promotional Mix
+d!ertising
1u2lic 3elation
Sales 1romotion
1ersonal Selling
Direct Mail
Internet4
56ommerce
8#
1he &edia &agic
,Cou 'eserve a brea" today3 so get up and get away6 1o &c'onald%s/
1he above brea" commercial was one of the initial commercial themes adopted by
&c'onald%s United State which became the best "nown commercial song on television
and3 in fact3 the most identifiable advertising themes of all time(
Needham was one of the first advertising agencies of &c'onald%s which made many
revolutionary advertisements for the company( Needhams advertising formula became
"now in &c'onald%s as ,*ood3 *ol"s3 and *un/ and it remains the bac"bone of all the
chain%s advertising campaigns(
&c'onald%s is now3 one of the world%s mightiest consumer mar"eters( Its brand valuation
is M89 billion3 ma"ing the ninth most valuable brand in the world(
>hy &udra in India?
''- Needham and )eo -urnett are the advertising agencies of &c'onald%s are
worldwide( Hence3 when they came to India3 1he subsidiary of both the companies
pitched for the account and Q&udra% the Indian partner of ''- Needham got the account(
Since the very beginning &udra has been the advertising agency of &c'onald%s India(
1he &udra team meets up with &c'onald%s mar"eting team on a regular basis and they
have a debate and discussion on the new strategies to be adopted(
&c'onald%s uses various &edias li"e television3 hoardings and bus shelters( 1hey are
almost out of print ads( &c'onald%s also sponsor many 1elevision ;rogrammers li"e
"aun -anega Crorepati3 Children shows etc(
2ven the paper &ats on the trays at the &c'onald%s are designed as per the ongoing
&ar"eting Strategy of &c'onald%s( *or e(g(: 'uring the *rench fries issues3 all their
8@
;aper mats had description of the burgers3 how the vegetarian products are made etc3 to
regain the confidence of the customers( 1he placing of the pamphlets3 banners in and
around the outlets is decided upon by the area sales manager and the operations manager3
in co6ordination with the restaurant manager( *or e(g( : currently they have the -ugs )ife
1heme going on wherein they give free -ugs )ife toys with the happy meal( $ll the
outlets are decorated with the pictures of the toys and even the paper mats have pictures
of the toys on them( 1he hoardings around the outlets carry the same theme(
1he K7687 &enu -oards
2ven the menu counters in the outlet are a mar"eting tool for the company( 1hey have to
be designed such that they catch the attention of the customer and tempt him to order the
product( So &c'onald%s have menu boards that are descriptive as well as visual( 1hey
call it the K7687 menu board eighty percent visual and twenty percent descriptive(
Under the recent research conduct by &c'onald%s they found that the consumers would
have a clear remembrance of the K7687 -oard( 1his board also helps give a feel of the
product before it is purchased(
Aeconnecting with customers% thro%contemporary global mar"eting direction ,I%m loving
it/( ,I am loving it/ refers an attitude we want your employees to embrace J reflect in
their services(
1heir other luc"y ;romotion strategies were li"e :6
Collaboration with co"e3 & 1v3 Hungama (com3 Sony &usic3 etc(
Scratch cards on large umbo meals(
;rices6 caps3 16shrit3 internet card3 C'%s3 *ree tic"ets to )uc"y $li%s contest(
;urchase of 8
nd
meal in a month +ualified for Opel CorsaP NS trip(
89
;lace
Aefers to how an organisation will distribute the product or service they are offering to
the end user( 1he organisation must distribute the product to the user at the right place at
the right time( 2fficient and effective distribution is important if the organisation is to
meet its overall mar"eting obectives( If organisation underestimate demand and
customers cannot purchase products because of it profitability will be affected(
Direct Distribution Indirect Distribution

8D
Manufacture
r
Consum
er
Manufacturer
3etailer
onsumer
1he following table summari!es the mar"eting mi< decisions3 including a list of some of
the aspects of each of the @;s(
1roduct 1rice 1romotion 1lace
*unctionality
$ppearance
Iuality
;ac"aging
-rand
>arranty
ServicePSupport
)ist price
'iscounts
$llowances
*inancing
)easing options
$dvertising
;ersonal selling
;ublic relations
&essage
&edia
-udget
Channel members
Channel motivation
&ar"et coverage
)ocations
)ogistics
Service levels
8L
,&c 'onald%s mein hai "uch baat/ a place for entire family to enoy( &c 'onald%s
positioned for youth families(
;ositioning is about communicating your uni+ue selling advantage or proposition to your
target audience in everything you do( &ar"eting3 sales3 customer service( 1he consistency
helps your customer remember( Can4t articulate your uni+ue selling proposition in less
than 17 words? &aybe you lac" clarity about positioning(
Our mar"etplaces have lots of choices( 1oo many3 perhaps3 for the average consumer to
evaluate logically( >ith hundreds of choices in any given locale3 many people simply
loo" for a referral to a product or with professional services: a company that their friends
trust( 1hose who shop around3 consider two or three options and ta"e the best of the three(
>ith hundreds of choices3 and with products and services that most consumers find hard
to differentiate3 how do you set yourself3 apart from the crowd?
;ositioning allows a mar"eter to thin" about why a customer would want to do business
with them( >hat do you offer that the other producers don4t? >hat does a potential client
get by doing business with you3 that will serve their needs well?
;ositioning has three components:
8K
Positioning
>hat are your strengths? Cour distinctive competencies? >hat about your offerings
provide value to your customers?
>ho is your target customer? >hat about them3 ma"es them an ideal fit for the value you
offer?
How are you different from your competitors in ways that your customers and potential
customers will value? In other words3 what is your uni+ue selling proposition? Cour
competitive advantage?
>hen all three are put together3 you have a positioning statement( ;ositioning statements
are the basis for all mar"eting messaging3 sales scripts3 and at a corporate level: branding(
So here are the things you need to "now to be able to develop your own mar"et
positioning:
>ho are you? $s a company? $s a sales rep?
>hat is your firm or "nown for? F$s" people what they thin"( It may not be what your
internal tal" says it is( Is it prompt claims? Or telling it li"e it is? Or it might ust be
everyone "nows you(G
>hat do your customers appreciate about your products or services? F$s" your
colleagues and your customers( $gain3 it might not be what you thin"( &aybe you are
"nown for high +uality( Or perhaps for returning calls promptly or your problem solving
ability( &aybe it is ust that you are convenient( G
>hat are you particularly strong at? F1hese are your core competencies(G
>hat are you better at3 than anyone else in your business? $s a company? $s a
professional? $s a sales rep? FIuality? Innovation? Cost effective choices?G
>ho are your most satisfied customers? >hat is it that they value most about what you
have to offer?
8?
-ased upon your sales goals and annual plan3 who is your target mar"et? 1he "ey here is
the fit between what you do well and who or what type of business needs what you are
good at(
>hat value can you bring your customers that they will value the most3 based upon your
uni+ue strengths?
$t a company level3 can you articulate this competitive value for your target3 best
customers? 'oes your branding reflect this? 'o your communications use this messaging
as its foundation?
o $re your web3 collateral3 and sales force attuned to this value?
o 'o your services focus on this value?
o 'oes your customer service reflect this value?
o 'oes your customer service reflect the promise of the brand? Or are
customers continually shoc"ed that the customer service is not li"e the
brand image at all?
Cour customers are bombarded with hundreds 6 perhaps thousands 6 of commercial
messages each day( -elieve it or not buying your product or service is probably not their
most important priority( So3 in the end3 it comes down to relationships( 'oes your vendor
understand your needs?
1hus3 positioning is 252AC1HIN.3 because3 positioning is that uni+ue value you offer3
to that target mar"et you see"3 in ways that are better3 more effective3 more ama!ingly
meeting your needs than any of your competitors( $nd3 the customer service3 and
employee relationships need to &$1CH or be IN12.A$12' with the mar"et
positioning(
#7
&ar"eting strategy that aims to ma"e a brand occupy a distinct 4position34 relative to the
competing brands3 in the mind of the customer( *irms apply this strategy either by
emphasi!ing the distinguishing features of their brand Fwhat it is3 what it does and how3
etc(G or try to create a suitable image Fine<pensive or premium3 utilitarian or lu<urious3
entry6level or high6end3 etc(G through advertising( Once a brand is positioned3 it is very
difficult to reposition it without destroying its credibility(
De!elops *rand Image
reates Demand
reates Demand
reates 7alue In The Mind &f ustomer
ommands 1remium 1rice

#1
Marketing Researc
I!"otance O# Positioning
If I will .aunch 1i88a hut in Market I will try keeping the following things in the
mind/
1( Target ustomer/
9oung :amilies/ 1hey are the people who prefer outing with their
families(1hese people believe in wor"ing hard and partying harder(
Senior citi8ens/ .enerally these fast food restaurants have targeted "ids
or younger generations( So I would li"e target them(
8( 1rice/ 1he burgers I thin" is rightly priced here but the beverages are little bit
high priced which most people can%t afford it( It should%nt happen that people
come here only to eat burgers but also have these beverages( So the beverages
would be priced accordingly that everyone could afford it(
#( 1roduct/ I thin" the product here are little bit westerni!ed (1he senior citi!ens
would not find it familiar it with them( 1he burgers and eatables to more
Indiani!ed so that senior citi!ens find it familiar( $nd to introduce more mil"y
beverages so that it would attract more senior citi!ens and "ids(
@( 1lace/ I would try opening these restaurants in residential areas so that senior
citi!ens would not find any problem in going out( $nd open these in malls and
multiple<es so that the young generations which li"es to hang out in these places
would find it easier to go there(
#8
Marketing Researc o# McDona$ds
1here are appro<imately 883777 registered restaurants in India3 which have sales of over
M193777 per month( In addition3 there are more than 1773777 roadside restaurants
FdhabasG selling their prepared foods in small stalls in cities and on highways( 1here are
139DK registered hotels in India(
1he opportunity for U(S( food companies in India4s food service mar"et is small but
growing( Sales by Indian food service companies totaled appro<imately MD billion in
fiscal year 1??K( Aestaurants account for appro<imately 99 percent of Indian food service
sales( 1he institutional sector consists of hospitals3 prisons3 defense establishments3
schools3 company canteens3 railways and airlines(
;.' Indian :ood Ser!ice Su26Sector Sales
:9 '<<=
'>> percent ? @A 2illion
T 2<cludes roadside restaurants
Source: )iterature search3 Interviews3 ;Si analysis

:actors dri!ing increased food ser!ice sales/
##
Restaurants
66@
Institutes
A'@
)otels
6@
Restaurants
Institutes
)otels
Browth in 1ersonal Income: 1he increase in buying power of Indian
consumers is driving growth in the food service sector( India4s per capita
income has increased by over 87 percent from 1??8 to 1??D(
Shrinking ,ousehold Si8e/ 1he total number of households in India has
increased by less than # percent per year from 1??7 to 1??K= however3 the
number of households in middle3 upper and high6income categories has grown
by more than 18 percent annually( 1hese households have higher disposable
income per member and have a greater propensity to spend on food(
Cr2ani8ation/ $ppro<imately 97 percent of high3 upper and middle6income
group Indian consumer households reside in urban areas(
Browing Dum2er of %omen in the %orkforce/ Over 1D percent of the
population of Indian women wor" full6time and spend most of their time away
from home( 'ue to these changes many Indian consumers are opting for meals
away from home(
Menu Di!ersification: High6income Indian consumers are see"ing variety in
their choice of food( Urban Indian consumers are aware of various
international cuisine Fe(g( Continental3 Chinese3 &e<ican3 Italian3 1hai3 and
0apaneseG and an increasing number are willing to try new foods
$ growing number of specialty restaurants3 fast food outlets3 home delivery and ta"e6
away restaurants have opened in the last few years( $ number of foreign restaurant chains
Fe(g( 'omino4s3 ;i!!a Hut3 ;i!!a 2<press31.I*3 B*C and -as"in AobbinsG have started
operations in India and have achieved success(
#@
-efore adopting any promotional techni+ues we would have conducted a survey(
3atio of 7egetarians and Don67egetarians !isiting McDonalds

:a!orite 1roduct

#9
Pro!otiona$ Tecni%ues &ic &e
&ou$d Ha'e (sed
Ve
54!
"on#Ve
46!
M$Chi$ken
%&rer
19!
'ren$h 'ries
42!
M$Veie
%&rer
12!
(thers
27!
)o yo& *ind the +rod&$t line satis*a$tory,

:a!orite +d!ertisement
#D
32!
29!
39!
'@
&'@
B'@
C'@
A'@
-es "o Its okay
31!
21!
7! 7!
8!
26!
'@
6@
&'@
&6@
B'@
B6@
C'@
C6@
Sta(e
/ri(ht
Shiftin(
)ouse
Sleepin(
Couple
%raffic
Police$en
.thers 4one
Do you find McDonalds !alue for moneyE
1ro2lems faced in the !isits to McDonalds
#L
-es
28!
"o
72!
24!
9!
3!
21!
43!
'@
6@
&'@
&6@
B'@
B6@
C'@
C6@
A'@
A6@
;on(
Queues
Dron(
.rder
3ad
Music
.ther
Pro#le$s
4o
Pro#le$s
Suggestions to impro!e McDonalds

Cni"ue Selling 1roposition of McDonalds
#K
24!
19!
15!
13!
7!
22!
'@ 6@ &'@ &6@ B'@ B6@
;o1 Prices
More Variety
)o$e Delivery
More Space
3etter Music
4o Su((estions
26!
24!
19!
17!
6!
8!
'@
6@
&'@
&6@
B'@
B6@
C'@
/ood )y(iene 2$#ience Quic,
Service
;ocation .thers
*ased on this sur!ey we arri!e at our promotional techni"ues
which should 2e appropriate to 2e used for increasing the sales/
1( Increase its product line(
8( 1o have more variety to choose from3 to include more deserts and more items li"e
;i!!a &c;uff(
#( 1o provide better and +uic" service(
@( )ower the supply chain cost so that it helps in cost reducing(
9( 1o e<pand their Happy &eal choices to attract and retain customers(
D( 1o educate about healthy lifestyle(
L( Introduction of &cCafees serving premium and specialty coffees and other
beverages and other products such as ca"es3 pastries etc in the e<isting
&c'onald%s(
K( ;rovide with better ambience(
?( *ocus on gifts for all generations i(e( youth3 "ids% especially senior citi!en which
is a completely new concept(
17( Special promotions during festivals(
11( Increasing the space for provision of birthday party areas(
18( 1ry to sponsor college festivals(
1#( >or" for social welfare of the society(
$fter analy!ing the mar"eting mi< of &c'onald%s3 it is clear that the company can be
said to be Uglobal%3 i(e( combining elements of globali!ation and internationali!ation(
&c'onald%s have achieved this through applying the ma<im3 Uthin" global3 act
local%(>hich is one of the most important reasons for their success in India(
#?