Mcdonalds Retailing strategy

8/2/2019 Mcdonalds Retailing strategy

1/58

One world, One Burger- McDonalds

By VASIM Calcuttawala


2/58

AGENDA HISTORY SOME FACTS ABOUT

MCDONALDS

PAST AND PRESENT

STRATEGY SWOT ANALYSIS

7 PS

MCDONALDS LOCATIONSELECTION

TECHNOLOGY IN RETAIL RETAIL FORMAT

STORE LAYOUT

ORGANISATIONALSTRUCTURE

So, Lets go, Listen My story, Agenda of My story is


3/58

"McDonald's vision is to be the world'sbest quick service restaurant

experience. Being the best meansproviding outstanding quality, service,cleanliness, andvalue, so that we make

every customer in every restaurantsmile."

McDonald's Mission Statement


4/58

.

As word of their success spread, franchisees started showing

interest. However, the franchising system failed because the

McDonald's was started as a drive-in

restaurant by two brothers, Richardand Maurice McDonald in California,

US in the year 1937.

The brothers used assembly line

procedures in their kitchen for mass

production..

Mcdonalds History


5/58

At this point, Ray Kroc (Kroc), distributor formilkshake machines.Expressed interest in thebusiness, and he finalized a deal with theMcDonald brothers in 1954.

In 1961, he bought out the McDonald brothers'share for $2.7 million and changed the name ofthe company to McDonald's Corporation. In1965, McDonald'swent public...

McDonalds History


6/58

McDonalds in India


7/58

Entered in India 1996

McDonald's India is a 5050 JVpartnership between MCDONALDSCORPORATION (U.S.A) and two Indianbusinessman Amit Jatia and VikramBakshi

Localisation: DONT OFFER ANY BEEF OR PORK ITEM IN

INDIA

IN PRODUCT LIKE MCVEGGIE, PIZZAMCPUFF ETC.THEY USE SPICESFAVOURED BY INDIANS

SOFT SERVES AND MCSHAKES AREEGGLESS

Actively Involver in many social activities likegiCHILD EDUCATION, PULSE POLIOiesetc.

McDonalds History INDIA


8/58

1996the first McDonalds restaurant opened on Oct.13, at Basant Lok, Vasant Vihar, New Delhi. It was alsothe first restaurant in the world not serving beef on itsmenu

1997the first Drive Thru restaurant at Noida 1999the first Mall location restaurant at Ansal Plaza

New Delhi

2000the first highway restaurant at Mathura

2001the first thematic restaurant at Connaught Place 2002the first restaurant in a food court at 3Cs,

Lajpat Nagar and the first restaurant at the Delhi MetroStation at Inter State Bus Terminus

History in India


9/58


10/58

Segmentation, Targeting and

Positioning

McDonalds uses demographic segmentation strategy

with age as the parameter. The main target segments

are children, youth and the young urban family


11/58

ADAPTION STRATEGY Menu differences:

Netherlands and Austria Beer

Germany Chinese Week

Canada Mc Pizza

India Goat and lamb burgers half of menu

vegetarian

Japan ingredients such as cabbage andTeriyaki

USA Barbecue bacon Burgers, sausage

breakfast burritos


12/58

Mc -Strategies

International Growth

Forward Integration

-Distribution through Franchisees

Backward Integration

-Local Sourcing, Suppliers

Market penetration & Development

McDonaldizing the supplier

New Product Development

- Aloo Tikki, Salad


13/58

Beverages

Cold Coffee

Ice Tea

Soft Drinks

Mc Shakes

Hot Serves

Menu
http://038origami02.ppt/http://038origami02.ppt/http://038origami02.ppt/http://038origami02.ppt/http://038origami02.ppt/http://038origami02.ppt/http://038origami02.ppt/http://038origami02.ppt/http://038origami02.ppt/http://038origami02.ppt/http://038origami02.ppt/http://038origami02.ppt/


14/58

Ice-Tea

Menu
http://038origami02.ppt/http://038origami02.ppt/


15/58

McShakes

McShakes

Nutrition at glance

Type(Quantity)

Serving

sizeing

ms

Proteinin

gms/serve

Caloriesin

kCal /serve

Pr

otein%

Carb.ing

ms/serve

Fating

ms/serve

Ca

rb%

Fa

t%

Chocolate(S/M/L)

275400

500

71013

527594

71013

298

433

541

333

191919

333

Strawberry(S/M/L)

275400500

71012

466784

71012

270

393

491

222

171717

222

Menu


16/58

Floats

Menu


17/58

Soft Serves

Nutrition at glance

TypeServing sizein gms

Proteinin gms/ serve

Calories

in kCal/ serve

Protein%

Carb.in gms/ serve

Fatin gms/ serve

Carb%Fat%

Soft Serve with Hot Fudge (Small) 86 3 25 3 140 4 29 4

Soft Serve with Hot Fudge (Medium) 143 6 43 5 241 4 30 4

Soft Serve with Strawberry (Small) 86 3 23 3 126 3 26 3

Soft Serve with Strawberry (Medium) 143 4 39 4 208 3 27 3

Menu


18/58

Soft Serve Cone

Menu

Nutrition at glance

Serving sizein gms

Proteinin gms /

serve

Caloriesin kCal /

serveProtein%

Carb.in gms / serve

Fatin gms /

serveCarb% Fat %

71 2 16 2 95 3 22 4


19/58

Non- Veg Menu

Chicken McCurry

Chicken Maharaja Mac

McChicken

Fiet-O-Fish

Chicken Mexican Wrap

Chicken McGrill

Menu
http://038origami02.ppt/http://038origami02.ppt/http://038origami02.ppt/http://038origami02.ppt/http://038origami02.ppt/http://038origami02.ppt/http://038origami02.ppt/http://038origami02.ppt/http://038origami02.ppt/http://038origami02.ppt/http://038origami02.ppt/http://038origami02.ppt/http://038origami02.ppt/http://038origami02.ppt/http://038origami02.ppt/http://038origami02.ppt/http://038origami02.ppt/http://038origami02.ppt/


20/58

Filet-O-Fish

Filet-O-Fish

Fried, breaded fillet of fish, with a

half slice of processed cheddar

cheese, special tartar sauce served

between steamed buns.

Nutrition at glance

Serving sizein gms

Proteinin gms / serve

Carb.in gms / serve

Fatin gms / serve

145 13 49 23

Caloriesin kCal / serve

Protein% Carb% Fat %

462 9 34 16

Menu


21/58

Chicken Maharaja Mac

Nutrition at glance

Serving sizein gms

Proteinin gms /serve

Carb.in gms /serve

Fatin gms /serve

255 32 54 26

Caloriesin kCal /

serveProtein% Carb% Fat %

573 12 21 10

Chicken

Maharaja Mac

2 Grilled chicken patties with a smoke-

flavoured mayonnaise, fresh onions,

tomatoes, processed cheddar cheese in a

toasted sesame seeded bun.

Menu


22/58


Menu


A traditional Mexican soft flat bread that

envelops crispy golden brown chicken

encrusted with a Mexican Cajun coating,

and a salad mix of iceberg lettuce, carrot,

red cabbage and celery, served with

eggless mayonnaise, tangy Mexican Salsa

sauce and cheddar cheeseNutrition at glance

Serving size

in gms

Protein

in gms /

serve

Carb.

in gms /

serve

Fat

in gms /

serve

192 14 37 21

Calories

in kCal /

serve


392 7 19 11


23/58

McALOO Tikki

McAloo Tikki

Fried breaded potato & peas patty

that is flavoured with a special spice

mix, fresh tomato slices, onion, and

veg. tomato mayonnaise between

toasted buns.

Nutrition at glance

Serving

size

in gms

Protein

in gms /

serve

Carb.

in gms /

serve

Fat

in gms /

serve

150 6 53 15

Calories

in kCal /

serve


367 4 35 10

Menu


24/58

Paneer Salsa WrapPizza McPuff

Mixed vegetables (carrot, beans,

capsicum, onion and green peas),

mozzarella cheese mixed with

tomato sauce and spice blend

coated with a savoury dough.

Nutrition at glance

Serving size

in gms

Protein

in gms /

serve

Carb.

in gms /

serve

Fat

in gms /

serve

80 4 26 14

Calories

in kCal /

serve


245 5 33 17

Menu


25/58

4Ps of McDonalds

Product How should the company design, manufacture the product so

that it enhances the customer experience?

Price What should be the pricing strategy?

Place Where should be the product be available and the role of

distribution channels?

Promotion What is the suitable strategy and channels for promotion of the

product?


26/58

Product Development

Successes: Fries, Happy Meal, Big Mac, Egg

McMuffin, PromotionsFailures: McPizza, Fajita, Carrot Sticks,

McLean, and the Arch Deluxe

Past Mc Product Strategies


27/58

Some of the most famous marketing

campaigns of McDonalds are:

You Deserve a break today, so get up and

get away- To McDonaldsAap ke zamane mein ,baap ke zamane ke

daam.

Food, Folks, and FunIm loving it.


28/58

I Love Children- Happy Meal


29/58


30/58

Place

McDonald's opened its doors in India in October 1996. Ever since then, our

family restaurants in Mumbai, Delhi, Pune, Ahmedabad, Vadodara,

Ludhiana, Jaipur, Noida Faridabad, Doraha, Manesar and Gurgaon have

proceeded to demonstrate.


31/58

The ambience and the environment is same atall the outlets of McDonald's.

McDonalds Outlets


32/58


33/58


34/58

Pepole

Each outlet is headed by a

Restaurant Manager . He is

responsible for the daily operation

and customer interaction.

Delivery Crew Member carries

basic operation of a restaurant.

Ensures customer satisfaction at

the restaurants.

In order to motivate there

employees they give them stars as

per their performance.


35/58

Organizational Chart


36/58

Social Events sponsored by McDonald's


37/58


38/58


39/58

McDonalds location Selection

Space require

In terms of space: Minimum of 2,500 3,000 square

feet carpet area on the ground floor with a clear height

of 11 feet and a frontage of at least 35 to 40 feet.

Offers both Counter Service and Drive through Service

Drive-Thru, Auto-Mac, Pay and Drive, or McDrive as it is

known in many countries, often has separate stations

for placing, paying for, and picking up orders.

"McDrive" locations near highways offer no counter

service or seating.
http://en.wikipedia.org/wiki/Highwayhttp://en.wikipedia.org/wiki/Highway


40/58

In contrast, locations in high-density city

neighborhoods often omit drive-through service There are also a few locations, located mostly

in downtown districts that offer Walk-Thru

service in place of Drive-Thru.

Some locations are connected to gas

stations/convenience stores, while others called

McDonald's Express have limited seating and/or

menu or may be located in a shopping mall.

Other McDonald's are located in Wal-Mart stores.

McStop is a location targeted at truckers and

travelers which may have services found at truck

stops.
http://en.wikipedia.org/wiki/Drive-throughhttp://en.wikipedia.org/wiki/Gas_stationhttp://en.wikipedia.org/wiki/Gas_stationhttp://en.wikipedia.org/wiki/Convenience_storehttp://en.wikipedia.org/wiki/Shopping_mallhttp://en.wikipedia.org/wiki/Wal-Marthttp://en.wikipedia.org/wiki/Truck_stophttp://en.wikipedia.org/wiki/Truck_stophttp://en.wikipedia.org/wiki/Truck_stophttp://en.wikipedia.org/wiki/Truck_stophttp://en.wikipedia.org/wiki/Wal-Marthttp://en.wikipedia.org/wiki/Wal-Marthttp://en.wikipedia.org/wiki/Wal-Marthttp://en.wikipedia.org/wiki/Shopping_mallhttp://en.wikipedia.org/wiki/Convenience_storehttp://en.wikipedia.org/wiki/Gas_stationhttp://en.wikipedia.org/wiki/Gas_stationhttp://en.wikipedia.org/wiki/Drive-throughhttp://en.wikipedia.org/wiki/Drive-throughhttp://en.wikipedia.org/wiki/Drive-through


41/58

Home Delivery

McDelivery

11:00 am to 11:00 pm


42/58

McDonalds India is one of the few countries

that provides a home delivery service

Call on 6600 0666 and place the order.

Minimum Charge 15rs Per order The restaurants will deliver to neighborhoods

which are up to 10 minutes away by road.


43/58

Recognition [Rewards]

In addition to McDonald's competitive wage and

promotion programs, hard work, dedication, motivation

and results are recognized and rewarded at McDonald's.

Appreciation comes in many forms - from a simple

thank you for a job well done, to restaurant-widerecognition through programs such as the 'Face of the

Month' and Face of the Quarter.

McDonald's also offers great incentive programs with

access to gift certificates and merchandise.


44/58

Technology In Retail

From old-fashioned cash registers to computerized

point-of-sale systems that could track massive amounts

of data in seconds

McDonald's was the first quick-service chain to install

touch-screen computers at the front counter and in thedrive-thru, making it easier for servers to input orders.

New POS, a product developed by Savista, will help

McDonald's improve restaurant productivity and

enhance the customer experience Attemt for solution that would permit debit, credit and

gift card transactions to be processed through the

standard POS system in less than four seconds


45/58

In a small number of restaurants, McDonald's U.S. is

evaluating a customer order center concept that

involves drive-thru orders taken by employees working

remotely at two customer order centers. High-speed

data connections are used to transmit the orders from

the drive-thrus to the centers as well as from the

centers back to restaurant Kitchen Staff. Meanwhile, pilot tests of self-service ordering kiosks

are underway in the Denver and Chicago markets. At

this point, the kiosks accept only cashless payments as

a way to keep the machines easy and quick to operate


46/58

Retail Format : Franchising

Franchising enables McDonalds to enjoy considerablyfaster growth and the creation of a truly global brand

identity.

On the financial side, McDonalds receives a monthly rent

which is calculated on a sliding scale based on the

restaurants sales

There is also a service fee of 5% of sales that is

contributed to support department activities and

royalties.

The purchase price of a restaurant is generally about

150,000 upwards. The new franchisee is expected to

fund a minimum of 25% of this from their own

unencumbered funds.


47/58

Store Layout

The new design will include the traditional McDonald's

yellow and red colors, but the red will be muted to

terra cotta, the yellow will turn golden for a more

"sunny" look and olive and sage green will be added.

To warm up their look, the restaurants will have lessplastic and more brick and wood, with modern hanging

lights to produce a softer glow.

Contemporary art or framed photographs will hang on

the walls. The exterior will have golden awnings and a "swish

brow" instead of the traditional double-slanted mansard

roof.
http://en.wikipedia.org/wiki/Mansard_roofhttp://en.wikipedia.org/wiki/Mansard_roofhttp://en.wikipedia.org/wiki/Mansard_roofhttp://en.wikipedia.org/wiki/Mansard_roof


48/58

The new restaurants will feature areas:

The "linger" zone will offer armchairs, sofas, and Wi-Fi

connections.

The "grab and go" zone will feature tall counters with

bar stools for customers who eat alone; Plasma TVs will

offer them news and weather reports.

The "flexible" zone will be targeted toward families and

will have booths featuring fabric cushions with colorful

patterns and flexible seating.

Different music targeted to each zone.
http://en.wikipedia.org/wiki/Wi-Fihttp://en.wikipedia.org/wiki/Plasma_TVhttp://en.wikipedia.org/wiki/Plasma_TVhttp://en.wikipedia.org/wiki/Wi-Fihttp://en.wikipedia.org/wiki/Wi-Fihttp://en.wikipedia.org/wiki/Wi-Fi


49/58

Store Layout


50/58

Store Layout


51/58

Store Layout


52/58

S l Ch i


53/58

Supply Chain

Suppliers Mfg Dist. Retai Customer

Material Flow

S l Ch i


54/58

Supply Chain

Trikaya Agriculture - Supplier of Iceberg

Lettuce.successfully grows speciality crops like iceberg lettuce, specialherbs and many oriental vegetables. Farm infrastructurefeatures:

A specialized nursery with a team of agricultural experts. Drip and sprinkler irrigation in raised farm

beds with fertilizer mixing plant. Pre-cooling room and a large cold room for post harvest

handling.

A large cold room and a refrigerated van for transportation where thetemperature and the relative humidity of this crop is maintainedbetween 1 C and 4 C and 95% respectively

Vista Processed Foods Pvt. Ltd. - Supplier ofChicken and Vegetable range of products.A joint venture with OSI Industries Inc., USA, and McDonald's India Pvt.Ltd. Vista Processed Foods Pvt. Ltd. produces a range of frozen chicken andvegetable foods. A world class infrastructure at its plant at Taloja,Maharashtra, has: Separate processing lines for chicken and vegetable foods. Capability to produce frozen foods at temperature as low as -35 DegreeCelsius to retain total freshness. International standards, procedures and support services.

S l Ch i


55/58

Supply Chain

Dynamix Diary - Supplier of Cheese.Dynamix has brought immense benefits to farmers in

Baramati, Maharashtra by setting up a network of milkcollection centres equipped with bulk coolers. Easyaccessibility has enabled farmers augment their income byfinding a new market for surplus milk. The factory has:

Fully automatic international standard processingfacility. Capability to convert milk into cheese, butter/ghee,skimmed milk powder, lactose, casein & whey protein

and humanised baby food. Stringent quality control measures and continuousResearch & Development.

Radhakrishna Foodland -Distribution Centre.An integral part of the Radhakrishna Group, Foodlandspecialises in handling large volumes, providing the

entire range of services including procurement, qualityinspection, storage, inventory management, deliveries,data collection, recording and reporting. Salientstrengths are: A one-stop shop for all distribution managementservices. Dry and cold storage facility to store and transportperishable products at temperatures up to - 22 DegreesCelsius.

Effective process control for minimum distributioncost.


56/58

Jumbo King The branded vada pav chain

Dheraj Gupta

Introduced automation, packaging and Created aBrand

Jumbo King is a food chain that has brandedMumbais favorite snack, The Vada pav.

Vada pav is an INR 500 million market inMumbai itself, out of which jumbo kings share ismore than 100 million

Jumbo king has broken the stereotype methodand introduce hygienic manhandled vadapv.

It has become Mumbai's most visited brandwith over 40,000 customers per day

Jumbo king considers McDonald's its guruand aims to become Indias McDonalds.

Contribution to Economic Growth


57/58

McDonald's India has already

contributed directly & indirectly

Rs. 95 crore (approx. 16 per cent

of total turnover) as revenue to

the Center and the State towardsSales Tax, House tax and Income

Tax in the last seven years. By

2005 this amount shall see an

increase of more than 30 per centper annum.

Contribution to Economic Growth


58/58

BYE BYE SEE U AT McDonaldS

Mcdonalds Retailing strategy

Documents

Transcript of Mcdonalds Retailing strategy