STUDENT- PGDMINSTITUTE OF MANAGEMENT STUDIES, NOIDA

Prepared by –1.RAVISH ROSHAN (atulravish@gmail.com),9968009808 (m

ail ur comm

ents, please)

McDonald’s

I’m lovin it

CONTENTS • Objective of presentation• Fast food industry profile• Profile of company and its

objective• Research methodology• Data analysis• Conclusions• SWOT analysis• Limitations• recommendations

Objective of the presentation McDonald’s is the market leader in fast food industry. The aim of this presentation is to get an insight of the frequency of New Product Introduction in Mc Donald’s and to find that

whether customers are aware of new products in time and the source of information of new product introduction. The aim is also

to find out the factors that make customers try new products. And for what extent the

customers satisfied.

Fast food industry profile

• Up to 1995 there was not much progress in fast food industry.

• Nirulas was the only fast food chain existing in the country with its restaurants expanding with every passing year since its inception.

• However the year 1995-96 witnessed a drastic change. 1996 is considered to be the year of India’s entry into the world food market. International giants such as McDonalds, KFC, TGIF, Dominos, and Pizza Hut all bombarded the Indian food market.

• However in earlier 1990 UK-based joint called Wimpy’s had established its chain in the country in 1990 but Wimpy was looked at more of a hangout place rather than eating out with the family.

• Its been the American international giants i.e., McDonalds, Pizza Hut etc., who have targeted their restaurants to the families.

• Almost all the fast food chains both Indian i.e., Nirulas and foreign i.e., McDonalds etc., are targeting the families.

• Each of these restaurants delivers quality, value and services in its own way through its line of strategies.

Profile of company and its objective

Founded: May 15, 1940 in San Bernardino, California (USA)

Founder: Dick and Mac McDonald

Headquarters: Oak Brook, Illinois, USA

No. of locations: 31,000+ worldwide[20] Key people ,

corporate founder: Ray Kroc

Vice Chairman/CEO: Andrew J. McKenna

Sr. Chairman: Jim Skinner

president: Ralph Alvarez COO UK CEO: Steve EasterBrook

Vice CEO and COO: David Fairhurst

Achievement of McDonald at glance

• McDonalds is the largest and the best-known global food service retailer.

• Its global market potential is enormous seeing the member of restaurants it has.

• On any day McDonald’s serves less than one percent of the worlds population.

• It is one of the most recognized brand all over the world

• Their efforts to increase market share, profitability and customer satisfaction have produced good return to shareholders

Products in Fast Food

• hamburgers

• chicken

• French fries

• wraps

• desserts

• breakfast

• milkshakes

Number of Restaurants Country 2006 1998

USA 12804 11,368

Europe 5,460 2,597

Asia Pacific 6,260 2,735

Latin America 1,510 584

Canada, Middle EastAnd Africa

1,665 1,105

Other 1,008 0

Total 28,707 18,299

Vision of Mc Donald

McDonalds Vision is to dominate the global food

service industry. Global dominance means setting

the performance standard for customer satisfaction

and increasing market share and profitability

through successfully implementing convenience

value and exception strategies.

Mission of McDonald• McDonald’s India serves only the highest quality products. All

McDonald’s suppliers adhere to Indian government regulations on food, health and hygiene while continuously maintaining McDonald’s own recognized standards. All McDonald’s products are prepared using the most current, state-of-the-art cooking equipment to ensure quality and safety.

• At McDonald’s the customer always comes first. McDonald’s India provides fast, friendly service - the hallmark of McDonald’s, that sets its restaurants apart from others.

• McDonald’s restaurants provide a clean, comfortable environment especially suited for families. This is achieved through McDonald’s stringent cleaning standards, carefully adhered to.

• McDonald’s menu is priced at a value that the largest segment of Indian

Goal of the McDonaldMc Donald’s ad line goes like:“Food Family Fun”So McDonald’s goal is to provide palate

tasting ,pure and hygienic food to its customers at very affordable price so that people get fun visiting more and more here.

RESEARCH METHODOLOGY For the purpose of collecting maximum

primary data a structured questionnaire was used

Also, people from the company and Mc Donald outlets were interviewed telephonically & personally

Sources of Data Primary Data – • Questionnaires • Interviews Secondary Data –• Internet• Articles, NewspapersSample Size No of People Approached: 25 No of respondents: 25Thereby, the sample size surveyed

was 25.

Frequency of new product development

Frequency of new product development was taken on bases of the

survey done and on opinion of the surveyed persons as to what they

think about the frequency of introduction of new product by mcdonald’s

Data analysis

0

2

4

6

8

No of Respondents

Frequency of New Product Introduction

No of Respondents 2 5 6 8 4

Strongly Agree Neutral Disagree Strongly

Recent change in products of McDonald’s

Study of recent changes was done by asking surveyed person about

what they think is the latest change in the products of Mcdonald’s and

is depicted in graphical form according to their idea about recent

change.

Data analysis

0

20

40

60

% of Responsse

Recent changes in products of Mc Donalds

% of Response 17 5 44 21 13

Paner Veg Mc Puff Mc Curry Coffee

Survey

Analysis of surveyed persons as to how they find out about new

products and change in products already present, what was there

frequency of visit to McDonald’s, what was their age group etc. was

also made to make referential analysis.

Data analysis

0

2

4

6

8

10

No of Respondents

Mode of Communication

No of Respondents 5 7 10 2 1

Advertisement

Friends Visit to Mc

Pamphlets

Others

Data analysis

0

2

4

6

8

10

No of Respondents

Frequency

Frequency of Visit

No of Respondents 4 10 6 5

Daily 2-3 times Once in a Once in

Data analysis

0

2

4

6

8

10

No of Respondents

Frequency

Frequency of Visit

No of Respondents 4 10 6 5

Daily 2-3 times Once in a Once in

Analysis of data surveyed

Data analysis

0

5

10

15

20

25

30

Attributes of New Products that attract customers for trial

% of Rsponse 22 27 11 3 18 15 4

Price LooksThe way it is served Quantity

Advertisement

Schemes &

PromotionOthers

Data analysis

0

20

40

60

80

% of Respondents

Satisfaction with the products of Mc Donald

% of Respondents 32 68

Satisfied Unsatisfied

Conclusion• 68% of the people want innovation in the products

offered by Mc Donald’s. • The level of awareness of new Products among the

regular customers is on a 50-50 situation

• Awareness of the new products introduced in Mc Donald’s is mostly through

visit to Mc Donald’s outlets and by seeing the posters pasted on the walls of outlets.

SWOT ANALYSIS

Strength • Mc Donald’s serves its customers with high quality products. There

are extensive quality tests at the supplier and all products are examined again in the restaurant to ensure that they are of highest quality possible.

• Mc Donald’s provides fast, friendly service. Any customer visiting Mc Donald’s is usually served within 60 seconds.

• Mc Donald’s menu is priced in such a way that the largest segment of Indian consumers can afford. It has a wide variety of products at different prices to be affordable to as many as possible.

• Mc Donald’s is an active participant in community services

Weakness • Mc Donald’s has limited range of items in its

menu. However, to get a item included in the menu approval has to be made from the high tech kitchens at Mc Donald’s headquarters in suburban Chicago.

• In India burgers are a long way from becoming the common man’s food, having fast food is considered to be another option for dining out, unlike other countries.

Opportunity • McDonald is developing two regional training colleges

in India, one each in Delhi and Mumbai. This can save the expense of the organization is sending its management team and crewmembers to outside countries like Indonesia and America.

• McDonald expects to expand its chain in the coming years. It plans to open about 50 restaurants by the year 2000. This can have the opportunity to serve and employ more people.

Threats• Mc Donald’s faces tough competition from other food

chains in the country both international i.e. Kentucky Fried Chicken, Wimpy’s and Pizza hut and domestic i.e. Nirulas.

• The decision taken by Mc Donald’s India to serve ‘Shudh Shakhari” meals at its restaurants can risk the global American image of Mc Donald’s.

Limitations • Since the sample size considered for the study is only 50-60 people

specifically who are regular customers of Mc Donald’s, it is quite possible that the result obtained from the study are not 100% accurate, because the sample chosen (randomly), may not be an ideal representative of the target market.

• The perfection of the questionnaire analysis.

• Since many analyses is done on the basis of personal interaction with the customers and employees of Mc Donald’s, the responses received may or may not be authentic.

Recommendations • McDonald should come with some less calorie products so that it

does not harm the growing children who like eating only junk food. It should come up with more of products, which are nutritious because growing children are the major customers of Mc Donald’s.

• Mc Donald’s should first advertise and then come up with new products in the outlets to create maximum recall in the mind of potential customer.

• It should come up with some spicy items also to beat the competition from Nirulas and Indian Dhabas.