Project on service scenario of Mc Donalds

Submitted to: Submitted by:

Ms. Deepti dabas harzarika Gaurav Kumar

Vikram Kumar Prajapati
Shiva Verma
Madan
Abhinav Gupta

Mc DONALD’S

Is the leading global foodservice retailer with more than 30,000 local restaurants
serving 52 million people in more than 100 countries each day. More than 70% of
McDonald's restaurants worldwide are owned and operated by independent local
men and women. Is one of the world's most well-known and valuable brands and
holds a leadingshare in the globally branded quick service restaurant segment of
the informaleating-out market in virtually every country in which we do business.
Serves the world some of its favorite foods - World Famous French Fries, Big
Mac, Quarter Pounder, Chicken McNuggets and Egg McMuffin.
Our rich history began with our founder, Ray Kroc. The strong foundation that he
built continues today with McDonald's vision and the commitment of our talented
executives to keep the shine on McDonald's arches for years to come

Mc-Donald In India
A Locally Owned Company McDonald's India is a joint-venture company
managed by Indians. In Western India, Amit Jatia’s company, Hardcastle
Restaurants Private Limited owns and manages McDonald's restaurants. In
Northern India, McDonald's Restaurants are owned and managed by Vikram
Bakshi’s Connaught Plaza Restaurants Private Limited. Amit Jatia and Vikram
Bakshi are responsible for running McDonald's in India. Local Sourcing is Key for
Truly Indian Products Around the world, McDonald's traditionally operates with
local partners or local management. In India too, McDonald's purchases form local
suppliers. McDonald's constructs its restaurants using local architects, contractors,
labour and - wherepossible – local materials. McDonald's hires local personnel for
all positions within the restaurants and contributes a portion of its success to
communities in the form of municipal taxes and reinvestment. McDonald's sources
food products form local companies. Fresh Lettuce comes from Pune, Delhi,
Nainital and Ooty; Cheese form Dynamix Dairies, Baramati, Maharashtra; fresh
Buns from Cremica, Phillaur, Punjab and Mrs. Bector andSons, Khopoli,
Maharashtra; Sauce from Bector Foods, Phillaur, Punjab and Hindustan Lever
Limited-Best Foods Division, Thane, Chicken Patties, Vegetable Patties, Pies and
Pizza McPuff™ from Vista Processed Foods, Taloja, Maharashtra. Dairy Products
from Amrit Food, Ghaziabad, UP.
McDonald's India - A decade of quality service
For its unparalleled benchmarks established in the QSR sector McDonald’s India
has been bestowed with many prestigious awards. To name a few:
 Most Respected Company' for four consecutive years, 2003-2007 in the Food
Services sector, by Businessworld.

 Most Wanted Brand of the Year' Award 2003 & 2004 by Franchising Holdings
India Ltd .
 Retailer of the Year' Award for catering services, 2004-2006 at the Images
Retail
Awards.
 The 'Most Preferred Fast Food Outlet' 2006 & 2007 by Awaaz Consumer
Award,
hosted by CNBC.
 Star Retailer - The Consumer Way, Food Services Retailer' of the Year 2006 &
2007, by Franchise India
 Amity Corporate Excellence Award'-in 2007 & 2008

Mc-Donald’s Seven P of Marketing

Product:
McDonald's food products offer tremendous value, McDonald continually review
and improve our menu offerings to make sure that McDonald not only meet their
customers’ expectations, but also exceed them. As a result, Mc Donald have
introduced a series of ongoing value options to enable their customers to appreciate
this aspect of the brand even more strongly.

Price:
McDonald's prices its products in such a way that a very large cross section of the
Indian population can afford it. McDonald's does not sacrifice quality for value –
rather McDonald's leverages economies of scale to minimize costs while
maximising value to customers. McDonald's definition of value is broader than
most restaurants of its kind – it is more than even the price. Value at McDonald's
is the sum of the total McDonald's experience: quality food; fast, friendly service; a
clean and pleasant environment and products priced for the largest segment of
Indian consumers possible. That is value at McDonald's.
Place:
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 Companies to develop products that meet McDonald's rigorous quality
standards. These standards also strictly adhere to Indian Government regulations
on food, health and hygiene. Part of this development involves the transfer of state-
of-the-art food processing technology, which has enabled Indian businesses to
grow by improving their ability to compete in today’s international markets.
Promotion:
A clean fast food brand which tastes the same any where you eat in the world.
BenefitsYou don't have to stay hungry for a long time. McDonald's ready to eat
available.
Values- The world leader in fast food restaurants.
Culture-The brand represents culture of social gathering for families and groups.
Personality
All kinds of consumers buy McDonald's products irrespective of age, sex all over
the world. One can see all types of personalities in the McDonald's restaurant.
People: McDonald's worldwide is well known for the high degree of respect to the
local culture. McDonald's has developed a menu especially for India with
vegetarian selections to suit Indian tasted and culture. Keeping in line with this
McDonald's does not offer any beef and pork items in India. McDonald's has also
reengineered its operations to address the special requirements of a vegetarian
menu. The cheese and cold sauces used in India are 100% vegetarian. Vegetable
products are prepared separately, using dedicated equipment and utensils. Also in
India, only vegetable oil is used as a cooking medium. This separation of
vegetarian
and non-vegetarian food products is maintained throughout the various stages of
procurement, cooking and serving.

Packaging:
McDonald's India serves only the highest quality products. The attention to food
quality started long before the first restaurant opened. McDonald's India has
established close relationships with local suppliers who provide McDonald's with
the highest quality, freshest ingredients to make its products.
Positioning:
The value initiative at McDonald's is all-pervasive. Our strategy is to achieve best
value by enhancing experience (offering best quality), while keeping prices
reasonable. This applies to products we serve our customers and to every other
aspect of the way we do business. At McDonald's, costs are kept low by increasing
efficiency and cutting wastage at all levels. This is possible by advanced
operations, management and human behaviour skills tested over time in around
120 countries across the world. It is important to understand that delivering highest
quality doesn’t come easily. Customers who walk into a McDonald's restaurant,
expect to be served food that is hot and fresh, made from the highest quality
ingredients, served within minutes of placing their order and at a price, which is
affordable. Such is the strength of the brand that they rely on McDonald's to do all
this, without thinking about how it is actually achieved

Mc donalds offers its services of food chain through wide range of products, its
capacity covers fast food range eg burger ,fries, Mc Puff, etc and its also offers
wide range of burgers

Now mc donalds offers these services through (QSC $ U) strategy i.e quality,
service, cleanliness and value) to customer. The main goal while offering service is
to achieve best value of entirely experience( offering best quality), while price
reasonable. The value initiative at mc donalds is all persuasive , their food product
offer tremendous value they still continually review and improve mere offerings to
make sure they not only meet customers expectations but also exceeds them.

Tangibility Spectrum:

Mc Donalds is not into food chain that offers fast food to its cutomers. As far as
their services are concerned with relation with tangibility spectrum. They are not
into pure service industry.

If we plot tangibility tangibility spectrum diagram restaurant comes in exact

middle of the line there is thin line that differentiates product and services with
relation to tangibility spectrum. Major factor that middle of the line there is thin
line that differentiates product and services with relation to tangibility spectrum.
Major factor that middle of the line there is thin line that differentiates product and
services with relation to tangibility spectrum. Major factor that middle of the line
there is thin line that differentiates product and services with relation to tangibility
spectrum. Major factor that middle of the line there is thin line that diffenciates
product and services with relation to tangibility spectrum. Major factor that middle
of the line there is thin line that differentiates product and services with relation to
tangibility spectrum. Major factor that middle of the line there is thin line that
differentiates product and services with relation to tangibility spectrum. Major
factor that middle of the line there is thin line that differentiates product and
services with relation to tangibility spectrum. Major factor that differentiate a
service from a product is its intangibility and the line separating product and
services in fast thinking down because now a days service provider also gived the
customer a tangible element bundled together with his service. As in case of food
chain and service industry, food itself constitutes some tangibility in itself but
when we talk of Mc Donalds they attach a lot of their services most importantly
they constantly try to attract kids for this, they have special menu for that; called as
happy hour meals which includes attractive packaging and toys which itself leads
to tangible side of their services.

So as far as tangibility spectrum is concerned especially in Mc Donald they have

lot of tangibility attached to their services starting from packaging material to free
gift offerings.

6) Customer Expectations

Customer expectations play a key role in a company’s success and have a deeper
meaning in services marketing than being mere reqiurement of a custmer.customer
expections are based on custmer experience with product or sevice; feedback
recived from friends, colleagues, relatives; or may passed on their present needs or
you can say word of mouth.

Reliability -on time delivery with quality food

Assurance -trusted name, good safety record, dedicated employees
Tangibles -Outlets, Order counters, Sitting area, uniforms
Empathy- understanding of special individual needs, anticipates customer needs
Responsiveness - prompt service delivery

RELIABILITY = Ability to perform the promised service dependably and

accurately. This would basically be that company delivers to the customer what is
promised & the customers basically like to deal with companies that can fulfill
their promises. When we look at the Mc Donalds we can see the following things
the customer would expect certain basic facilities like: some functional
infrastructure provided to him, the quality food, hygienic ambience and lot more
things.

ASSURANCE = Employees knowledge and courtesy and their ability to inspire

trust and confidence Assurance relates to knowledge and accuracy of employees
and their ability to convey trust and confidence. This dimension is of great
significance for services where a customer perceives high risk and is not sure of
the outcomes. The employees should have a positive morale & should be
motivated if they have to promote the firm & create a sense of assurance in the
flyer’s mind. Mc Donald’s is generally considered the more customer friendly .
The staff there is nicer to old people and they are well dedicated. But the young
generation people who aggressively take t. Though Mc Donald’s has a very young
staff, so some of the members could possibly not match the kind of experience the
competitors provides.

TANGIBLES

Appearance of physical facilities, equipment, personnel and written materials

Tangible features would be those physical features, which can be seen by the
customer. These would be the physical proofs, which would help the customer to
judge the quality of service. The customers evaluate the quality of these services
on the basis of the tangibles provided by the service providers. The marketers of
services emphasize on tangiblising the intangibles. In case of the Mc Donald’s it’s
be the infrastructure and franchisee store they are using, how old they are, and the
kind of facilities that are provided inside the outlet or in the waiting area. The kind
of skilled staff that they have the uniform that the staff wears. The tangibles
would also include the infrastructural facilities present at the Mc Donald’s. This is
where we find most of the food outlets lacking. They have no proper arrangements
to handle the customers.

Empathy

Caring, Individualized attention given to customers Empathy basically is when the

employees of the organization make the customer feel at home, at ease, making
him feel wanted. The customers are mostly offered the same service from most of
the food chain counter. The easiest way for the outlets of Mc Donald is to
maintain and grow its client base is to be empathetic towards their customers, to
understand their specific needs and to cater to them & they should make each
customer feel like he is a unique asset to the company & like their single most
important customers.

Responsiveness

Willingness to help customers and provide prompt service. Responsiveness is

willingness to help the customers and provide prompt service the degree of
responsiveness shows the level of commitment that the people of the company
have towards their work. It is very necessary for the company to concentrate on
prompt & the right kind of responsiveness to the needs of the customer.

The customer’s judgment of overall excellence of the service provided in relation

to the quality that was expected.
Customer perceptions

It is the process of making a meaningful picture by selectively organizing a set of

stimuli. It includes service encounter. Customer perception of service quality is
primarily influenced by the service encounter

SERVICE ENCOUNTER

The interaction between the customer and service provider in the Mc Donalds
means that the employee often represents the mc Donalds as a best service provider
for customer.
SERVICE RESEARCH:

Customer Complaints

Relationship Surveys

Post purchase behavior

Customer focus group survey

Employee’s survey

Lost customer research

Future expectations

SWOTANALYSIS
SWOT Analysis is a strategic planning method used to evaluate the Strengths,
Weaknesses, Opportunities, and Threats involved in a project or in a business
venture. It involves specifying the objective of the business venture or project and
identifying the internal and external factors that are favourable and unfavourable to
achieving that objective.
· Strengths: attributes of the organization that are helpful to achieving the
objective.
· Weaknesses: attributes of the organization that are harmful to achieving the
objective.
· Opportunities: external conditions that are helpful to achieving the objective.
· Threats: external conditions which could do damage to the business's
performance.

SERVICE FAILURE:

When Mc donalds first came in India it got failed to operate services, its because
they came up with beef product in India which causes a huge failure to Mc
Donalds product. According to Indian customs and religion beef is ground
breaking for Indian so Mc donalds had a bad impact while entering into Indian
Market.

SERVICE RECOVERY:

Later on Mc Donalds feels that they should make their product and services
according to Indian customers so they reframed their strategies. McDonald's later
on become well known for the high degree of respect to the local culture.
McDonald's has developed a menu especially for India with vegetarian selections
to suit Indian tasted and culture. Keeping in line withthis McDonald's does not
offer any beef and pork items in India. McDonald's has also re-engineered its
operations to address the special requirements of a vegetarian menu. The cheese
and cold sauces used in India are 100% vegetarian. Vegetable products are
prepared separately, using dedicated equipment and utensils. Also in India, only
vegetable oil is used as a cooking medium. This separation of vegetarian and
non-vegetarian food products is maintained throughout the various stages of
procurement, cooking and serving.

Classification of services

Classification of services is very much necessary to formulate strategies in relation

of their marketing policies. It gives number of solution to the basic question that
arises in how that service must be offered to get optimum result. Classify the
services gives us the clear picture of or we can say it give us clear cut dimension
on which field we have to work upon.

Macdonald’s services classified into following way:

1) Based on degree of involvement of customer.

It is very much a kind of people processing because a customer need to be

physically present to give its preferred order and also should be present there to
consume the ordered food as in this services is directed at the customer.

2) Based on service tangibility:

We can classify macdonald food chain services in highly tangible because as far as
tangibility is concerned, customer obtains fast food that is burger, soft drink etc,
that is tangible, though it may consumed only in small period of time.
Thus we can link macdonald food services with tangible goods linked to services
also because there is number of tangible product along with services is requested
by customers or also given by macdonalds for comfort of customers.
For example; packaging of food products, gifts to kids with their special “ happy
meal”.

3) based on skills and expertise required.

We can no doubt classify mcdonald’s food services into professional services as
these services require the services provider to be formally trained to deliver the
services.
As there is unique operation process in Mcdonald’s for preparation of food
products, so that there should be same taste that in each and every outlets
throughoutthe country.

4) Based on business orientation of service provider;

Mcdonald is commercial organisation in which the main objective of service
provider is to earn revenue and make profits, as they charge customers for the
services they offer and attempt to continuosly improve their services and
profitability.
For example: mcdonald is always innovative with their varity of offering in their
services, they regularly add on varity in their menu
To attract more and more consumer to generate more and more revenue.