93-KritikaBeri (mm)

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4/20/12

Symbiosis Institute of Media and Communication, Pune

Marketing Management-Prof. Chandan Chatterjee

Marketing Diary

Submitted By:Kritika Beri

Roll no: 93MBA – Div A

Batch: 2011-13



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Marketing

Management of Mc

donalds



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Core Marketing Concepts

Need Satisfying hunger andthirst

Want Fast food and drinks

Demand Mc donalds burger and

other products



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Customer value

low-med med medlow

high low lowhigh



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Customer ValueBenefits

Product Homogeneous products

Service Clean, hygiene, entertainment, partyrooms for birthdays, free homedelivery.

Personnel Help line, orders taken even thoughit’s a self service outlet.

Image Western chain of food outlet.Restheirces/Costs

Price INR – Rs 25 to 90 per item i.eaffordable for a common man.

Time Instant delivery on desk. Time saving

Efforts Convenient: available at almost everyarea

Perceived

Risks

Increasing numbers of customers

looking for food that is served in aquick and friendly way.



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Product level

Core benefit: fast foodBasic product: burgerExpected Product: Easy avalibility

Augmented product: SocilizationPotential Product: Available at lowestprice as compared to other outlets of fast food chains



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Marketing Mix Tools (4 P’s)

Product Price Place Promotion

American fast foodchain.

Prices vary fromlocation to location.

Initially available onlyin America, now inevery corner of theworld

Promoted through amascot (ronaldmcdonald anddifferent promotionalstrategies time to time

Provides burger,puffs, nuggets,wraps, drinks and icecreams

Eg: Mc chicken,Mexican wrap, Coke

float, Mc Swirl, etc.

Mc chicken –In India Rs 50Mc aloo tikiIn India Rs 25

Outlet in everylocation includinghighway and malls

Association withupcoming movies likeKung fu panda andgiving toy as goodiesof the movie wit hhappy meal



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ProductMcDonald’s has intentionally kept its product depth and product width limited.

McDonald’sstudied the behavitheir of the Indian customer and provided a totally differentmenu as

compared to its International offering. It dropped ham, beef and mutton burgersfrom themenu. India is the only country where McDonald’s serve vegetarian menu. Even thesauceand cheese used in India are 100% vegetarian. McDonald’s continuously innovatesitsproducts according to the changing preferences and tastes of its customers. The

recentexample is the introduction of the Chicken Maharaja Mac.McDonald’s bring with it a globally reputed brand, world class food quality andexcellentcustomer specific product features. McDonald’s Indian Menu: Vegetarian

McVeggieMcAlooTikkiPaneer Salsa WrapPizza McPuff

Non vegetarianChicken Maharaja Mac



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Place

Nearly 50% of U.S.A is within a 3 minute drive from aMcDonald’s outlet. There is a certain degree of fun and happinessthat a customer feels each time he dines at McDonald’s. There arecertain value propositions that McDonald’s offer to its customers

based on their needs. McDonald’s offers hygienic environment,good ambience and great service. Now McDonald’s have alsostarted giving internet facility at their centres and they have beenplaying music through radio instead of the normal music. There arecertain dedicated areas for children where they can play while their

parents can have some quality time together.Price



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Price

Pricing includes the list price, the discount functionsavailable, the financing options available etc. It should alsotake into the consideration the probable reaction from thecompetitor to the pricing strategy. This is the most importantpart of the marketing mix as this is the only part whichgenerates revenue. All the other three are expenses incurred.

The price must take into consideration the appropriatedemand-supply equation.McDonald’s came up with a very catchy punch line “Aap kezamane mein ,baap ke zamane ke daam”. This was to attractthe middle and lower class consumers and the effect can

clearly be seen in the consumer base McDonald’s has now.McDonald’s has certain value pricing and bundling strategiessuch as happy meal, combo meal, family meal and happy pricemenu to increase overall sales volumes.



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Promotion The various promotion channels being used by McDonald’s to

effectively communicate the product information are given above. A clearunderstanding of the customer value helps decide whether the cost of promotion is worth spending.

There are three main objectives of advertising for McDonald’s are to makepeople aware of an item, feel positive about it and remember it. The right message has to

be communicated to the right audience through the right media.McDonald’s does its promotion through television, hoardings and busshelters. They use print ads and the television programmes are also animportant marketing medium for promotion.Some of the most famous marketing campaigns of McDonald’s are:

“You Deserve a break today, so get up and get away- To

McDonald’s”“Aap ke zamane mein ,baap ke zamane ke daam”.“Food, Folks, and Fun”“I’m loving it”.



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Physical evidence

The physical appearance affects not only the impression outsidershave of a business but also the way that business functions. McDonald’sfocuses on clean and hygienic interiors of its out lets at the same time theyare attractive. It maintains a proper decorum at its joints. Staff membersdress in McDonald’s Dress code with Green shirts, Blue trousers, Blackcaps and Customised Ronald McDonald’s tie.Building maintenance and visible cues are provided by the golden arches,the trademarks and the logo’s in the premises. The delivery scooters alsoadd to the physicality of the company.



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People

McDonald’s understands the value of both its employees and itscustomers. It understands the fact that a happy employee can serve well andresult in a happy customer.McDonald continuously does Internal Marketing. This is important as it must

proceed external marketing. This includes hiring, training and motivating ableemployees. This way they serve customers well and the final result is a happycustomer. The level of importance has changed to be in the following order (themore important people are at the top):

1. Customers2. Front line employees3. Middle level managers4. Front line managers



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ProcessesMcDonald’s worldwide is well known for the high degree of respect for the local customs and

culture. McDonald’s has developed a menu especially for India with vegetarian selections to suit

Indian tastes and preferences. Keeping in line with this, McDonald’s does not offer any beef or porkitems in India. In the last decade it has introduced some vegetarian and non-vegetarian productswith local flavtheirs that have appealed to the Indian palate. There have been continuous efforts toenhance variety in the menu by developing more such products. It is completely transparent andvisible to the customers, allowing them to judge hygiene standards where the process takes place.The customers are even invited to check the ingredients used in the food.McDonald’s has also re-engineered its operations repeatedly in its 11 years in India to address the

special requirements of a vegetarian menu. Vegetable products are 100% vegetarian, i.e,•They are prepared separately, using dedicated equipment and utensils.•Only pure vegetarian oil is used as a cooking medium.•Cheese and sauces are completely vegetarian and egg less.•Separation of vegetarian and non-vegetarian food products is maintained throughout the variousstages of procurement, cooking and serving.•Food manufacturing transparent to customers across the counter.

•Training to the licensees about how to operate the franchise.•Invented the most efficient cooking equipment with use of latest technology.•New methods of food packaging and distribution are followed



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Product Hierarchy



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Competition Map

McDonald

s

burgers

meals

Parties

Wraps

Mcpuff

nugget

s

DIRECTCOMPETITORS

INDIRECTCOMPETITORS

Malls

CCDkfc

Burgerking

Tibs

Fisherprice

venkys

Natural’s icecream

Chinese outlets likemainland china

Pubs and

clubs

Dominoes/PizzaHut

Subway

Toys



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Product Life CycleIntroduction – hamburgers, milkshakes and french fries

Growth – ham burgers, drinks, desserts, fries, wedges,sauces, happy meal and various other products

The Maturity: ham burgers, drinks, desserts, fries, wraps,

nuggets, wedges, salads, sauces, happy meal, breakfastmenu: pan cakes and coffees

Decline Phase: mc puff, Chicken maharaja, hot dogs andfew other products were discontinued.

q Mc donalds as a whole is in agrowth stage in India as it isentering more into the marketand also trying to penetrate the

rural market to an extent.



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Industry Life Cycle

Introduction – first fast food restaurants introduced inUS known as

A&W in 1916 and White Castle in 1921

Growth –

Fast casual restaurants like Corner Bakery CafeCatering trucks like hot dog caters

Maturity –Drive thru

Decline –Conventional sitting restaurants



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Core/Augmented –Product/Services

Product ServiceCore burger Meals, home

delivery.

Augmented Fries, coke,desserts, etc.

Customersatisfaction andhygiene.



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Brand

Name: Mc DonaldsSign: ‘M’Symbol: yellow arc with red board

Initials : “Mc”



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Branding

ØMcdonalds knows what exactly isBranding.ØIt has become the king of the fast foodchain all over world.Ø The initials “Mc” has such a strongconnection to brand that it has becomea generic brand.ØEvery product of Mc Donald is being

named after the initials Mc. This helps the customer realize andconnect with the brand.



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Brand equity



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Brand dynamics pyramid

High

high

Med

Med

Med-

high



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Positioning

ØImage positioning: The brand Mc Donald’s carriesmany associations burger, fun, children, fast food,ambience, all of these makes up the brand image

ØCompetitors positioning: Mc Donalds mein hai kuchbaat. I’m luvin it.



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Orientation

üMc donalds has the Marketing orientation.

üInstead of product centered, make and sell

philosophy the use “sense and respondphilosophy

ü They focus more on the need of the customer.

üFor eg: every region has its own personalisedmenu.

ü They also have personal services for different

situations and occations.



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Integrated MarketingCommunication

Communication Objectives

1. Target Audience

•. Is relatively a homogenous group consumers feel that it is all the same andwanting it at the lowest price

•. Ranges from all ages whether they are a toddler or a senior citizen is

affordable and does not require an outstanding amount of income to purchasetheir products

•. Established within the rural and suburban communities although there may beless in the rural communities

•. Has many brand loyal customers that come in everyday whether it is for

breakfast, lunch, dinner or dessert focus on their current customers toensure that their customers will maintain their current purchasing andconsumption behavitheir



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Have many favourable brand switchers continue to buy their products, but at the same time they also purchase products from Burger

King is communicated to directly to ensure that McDonalds remainsin their evoked set

Will have to ensure that their main message being sent out is clear andconcise so that the new category users believe in it and switch to

McDonalds with their new Lighter Choice Menu, this can attract new

users that are more health consciousWill have to focus on other brand switchers closely these customers

purchase other brands such as Burger King, Wenky’s or KFC can find

ways of getting these customers to switch over planning on

emphasizing more on brand experience by feelings over features and

passion over price.



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2. Communication Objectives

• Category need feel that the products satisfies their needs becausethey meets their expectations and needs it is fast, convenient and

affordable• Brand awareness target audience has the ability to recognize

and/or recall the brand with the well-known golden arch, everyone

can recognize the big “M” anywhere around the world

•

Ronald McDonald himself is also another well recognize he wasonce on the bags and he also has an organization that contributes toa good cause by expanding the role of Ronald McDonald with

consumers of all ages, this will create brand awareness.

• The new slogan “I’m lovin’ it” also creates brand awareness whenthe consumer hears or sees the slogan.



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• Brand attitude are satisfied with the reason why they want it

because McDonalds has something for everyone and it isaffordable with a good attitude towards McDonalds’ products

maintained, it will generate future sales.• Brand purchase intention is not necessary there is low

involvement since consumers’ consistently purchase McDonaldswithout putting so much thought into their decision process

•

Purchase facilitation will not affect McDonalds well known and will not affect the consumers purchase decision



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IMC PROGRAMES

SALES PROMOTION

McDonalds will implement is to stimulate trial purchase by 20% of the

target market.

McDonald’s plans to use incentives as they reward or giveconsumers

extra incentives for engaging in certain forms of behaviour.

The incentives that will be used include the use of coupons andpremiums.

Free standing inserts allow us to deliver the coupons with highquality,

four coloured images that draw attention of consumers

Direct mail is their main focus area for distributing the coupons.

Their target redemption rate through the direct mail is expected tobe 9% of the 500,000 coupons distributed.

Premiums are their most popular way to maintain repurchasingconsumers.



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• McDonalds will implement is to purchase by 50% of the target

market.

• Will be used to obtain greater success for any new brands by tryingto stimulate purchases of the product

• McDonald’s plans to use TV, Radio, and Bill Boards to conveymessages.

• Tactic involved in advertising include McDonalds brand history andbrand loyalty by many of their consumers.

• The timing for these messages will be based all throughout the dayespecially strong during prime time hours.

•

McDonalds advertises in one week all of the following reasons toselect McDonalds.

• Family Convenience,

• Ronald McDonald house,

•

Constant New Menu Items

IMC PROGRAMES

ADVERTISING



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IMCPROGRAMESADVERTISING

• Mascot Characters

• Local Restaurants

• Local Events and Much More

Television Prime Time $ 12,500,000

Radio $ 120,000

Out Door Billboards $ 120,000,000

TOTAL COST FOR ADVERTISING $ 132,620,000



IMC PROGRAMES

DIRECT MARKETING

• McDonalds will implement a objective that will seeks a directresponse of 9% by the target audience.

• Objective will be to inform consumers who are not users about usand educate them about how their products are better than thecompetitors.

• The strategy that will be used will be Direct Mail, which will help tostimulate trial, build brand loyalty, increase their sales and marketshare and finally lead consumer to repeat purchases.

• The timing for these mailing will be based on their overall cost andresponse by consumer. However, they will all be based on amonthly basis, and will only be good during certain hours of the day.

TOTAL COST FOR THE PROGRAM $ 100,000

rea ng ommun ca ng



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rea ng , ommun ca ngand Delivering Customer

ValueTools Creat

e

Communicat

e

Deliver

Product Taste Paper packaging Consumption

Price Affordable price Fully fledged meals at low price Happy meals

PromotionRonald mc

donaldsAd campaign, I am loving it

Tv commercials and tieups with latest movie for

happy meal

Place At every localityConvenient to locate a store.

Display of big M to locate.

Available in every malls,

multiplex and market

area.



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SWOT analysis

Strengths Weaknesses Threats Opportunities

E.g. the brand,and detailed

marketresearchto createthe rightmarketing mix.

McDonald’shas been

around for along time.(thereforeimportantto keepinnovating).

Increasingnumbers of

customerslooking forfood that isserved in aquick andfriendly way.

Newcompetitors.

Changingcustomerlifestyles.

93-KritikaBeri (mm)

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