service marketing assignment

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A Report On Management of the Service Operations Of Mc Donald Subject: Marketing of Service Date of Submission: 24 th March, 2014 1

Transcript of service marketing assignment

Page 1: service marketing assignment

A Report

OnManagement of the Service Operations

Of Mc Donald

Subject: Marketing of Service

Date of Submission: 24th March, 2014

Table of Content

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Sr. No Particular Page no

1  A Locally Owned Company 32   An Employer of Opportunity 33   Respect for Indian Customs and Culture 34   Quality, Service, Cleanliness & Value (QSC & V) 45 Service is tangible or intangible 46   Major Supplementary Product or Service 47 7 Ps of Service Marketing for Mc Donald 48   Methods Using for Service Delivery 69 Promotional Activities 6

10 Number of Employee in Organization 711 Feedback Process 712 SWOT ANALYSIS 813 Five Reason to Choose Mc Donald 914 Methods for Customer Relationship or To retain Customers 1015 Display Menu 1016 Challenges faced by Mc Donald 1017 Bibliography 1218 Annexure 1-Menu 13

Interviewed Person Name : Mr. Hasmukh Designation: Manager Visited Location: Mc Donald(Ashram Road)

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1. A Locally Owned Company

McDonald's is the world's leading food service retailer with more than 33,000 restaurants in 118 countries serving more than 67 million customers each day.

In India, McDonald's has two Indian entrepreneurs: Hasmukh Jatia, Vice Chairman, Hardcastle Restaurants Pvt. Ltd, which has been awarded a Development Licensee status by McDonald's Corporation, U.S.A, spearheads McDonald's operations in West & South India, while McDonald's restaurants in North & East India is managed by Vikram Bakshi's Connaught Plaza Restaurants Private Limited, which is still a Joint Venture with McDonald's Corporation.

For Hardcastle Restaurants Pvt. Ltd ('HRPL'), the transition to a Development Licensee implies a higher level of commitment by McDonald's Corporation as it enhances its trust in the local partner. McDonald's ensures that the evolution to a Development Licensee takes place only after the financial strength, viability, profitability and long - term sustainability of the business is assured.

Celebrating over 15 years of leadership in food service retailing in India, McDonald's India now has a network of over 250 restaurants across the country. McDonald's India is a leader in the food retail space, with a presence of more than 250 restaurants serving more than 6.5 lakh customers daily in India.

McDonald's India and HRPL in particular has an aggressive expansion plan - including market expansion, new customer outreach formats and menu expansion. With HRPL becoming a Development Licensee in the year 2010, there are strong and robust commitments to investments, expansion and growth. By 2014, HRPL plans todouble the number of restaurants it currently has.

HRPL is expanding its reach by expanding the portfolio and access points with formats like from kiosks, drive thrus, web-delivery and petrol pumps in addition to the restaurants.

In 2012, HRPL plans to open another 35-40 McDonald's restaurants in West and South India.

2. An Employer of Opportunity

McDonald's India is an employer of opportunity, providing quality employment and long-term careers to professionals across the country. The average McDonald's restaurant employs 40-60 people from crew to restaurant manager. McDonald's invests in its employees, leveraging world class-training inputs to create ambassadors of the brand and creating food service professionals with global outlook. The brand currently has over 10,000 employees in India.

3. Respect for Indian Customs and Culture

McDonald's worldwide is well known for the high degree of respect for the local culture of each market it operates in. In line with this respect for local culture, India is the first country in the world where McDonald's does not offer any beef or pork items. McDonald's has developed a menu especially for India with vegetarian selections to suit the Indian palate, and has also re-engineered its operations to address the special requirements of vegetarians. Special care is taken to ensure that all vegetable products are prepared separately, using dedicated equipment and utensils.

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This separation of vegetarian and non-vegetarian food products is maintained throughout the various stages of procurement, cooking and serving. So much so that the mayonnaise and soft serves are also 100% vegetarian, and McDonald's uses only vegetable oil as a cooking medium in India.

4. Quality, Service, Cleanliness & Value (QSC & V)

McDonald's is driven by the philosophy of Quality, Service, and Cleanliness & Value for Money. This translates into a commitment to provide customers high quality products, served quickly with a smile, in a clean and pleasant environment at an affordable price. This effectively means that the McDonald's menu is priced at a value that the largest segment of the Indian consumers can afford, while at the same time ensuring that quality is not sacrificed for value - rather, McDonald's leverages economies to minimize costs while maximizing value to customers.1

5. Service is tangible or intangible

According to Mr. Hasmukh service can be both tangible and intangible in Mc Donald’s major product is tangible but the quickness in providing product or we can say service is intangible.

6. Major Supplementary Product or Service

According to Mr. Hasmukh major supplementary services or products are physical space provided to seat, music, catch-up, water, washroom facility, paper napkin etc.

7. 7 Ps of Service Marketing for Mc Donald

The marketing mix of McDonald’s is as follows:-

Product

When we have asked to Mr. Hasmukh about the product range of Mc Donald, he gave the whole menu of Mc Donald but here is the list which describe major product of Mc Donald. Core product of the Mc Donald is physical product. And in supplementary product or service are both tangible and intangible.

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Price

When we have asked about price he replied that In India McDonalds classifies its products into 2 categories namely the branded affordability (BA) and branded core value products (BCV). The BCV products mainly include the McVeggie and McChicken burgers that cost Rs 50-60 and the BA products include McAloo tikki and Chicken McGrill burgers which cost Rs20-30. This has been done to satisfy consumers which different price perceptions.

Promotion

When we have asked about which are the promotional tools used by Mc Donald than he replied that the promotions aspect of the marketing mix covers all types of marketing communications .One of the methods employed is advertising, Advertising is conducted on TV, radio, in cinema, online, using poster sites and in the press for example in newspapers and magazines. Other promotional methods include sales promotions, point of sale display, merchandising, direct mail, loyalty schemes, door drops, etc. The skill in marketing communications is to develop a campaign which uses several of these methods in a way that provides the most effective results. For example, TV advertising makes people aware of a food item and press advertising provides more detail. This may be supported by in-store promotions to get people to try the product and a collectable promotional device to encourage them to keep on buying the item.

At McDonalds the prime focus is on targeting children. In happy meals too which are targeted at children small toys are given along with the meal. Apart from this, various schemes for winning prices by way of lucky draws and also scratch cards are given when an order is placed on the various mean combos.

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Place

When we asked about the place of Mc Donald Mr. Hasmukh replied that Place, as an element of the marketing mix, is not just about the physical location or distribution points for products. It encompasses the management of a range of processes involved in bringing products to the end consumer. McDonald’s outlets are very evenly spread throughout the cities making them very accessible. Drive in and drive through options make McDonald’s products further convenient to the consumers.

People

Regarding people or employee Mr. Hasmukh told that, the employees in McDonald’s have a standard uniform and McDonald’s specially focuses on friendly and prompt service to its customers from their employees.

Process

When we have asked about the process followed by the Mc Donald than Mr. Hasmukh Replied that the food manufacturing process at McDonald’s is completely transparent i.e. the whole process is visible to the customers. In fact, the fast food joint allows its customers to view and judge the hygienic standards at McDonald’s by allowing them to enter the area where the process takes place. The customers are invited to check the ingredients used in food.

Physical evidence

When we have asked about P.A. of Mc Donald than Mr. Hasmukh replied that Mc Donalds focuses on clean and hygienic interiors of is outlets and at the same time the interiors are attractive and the fast food joint maintains a proper decorum at its joints.

8. Methods Using for Service Delivery

When we have asked about the methods using for service delivery Mr. Hasmukh Replied that it is physical and electronic both like order pass through electronic machines but order deliver through physical.

9. Promotional Activities

When we have asked about which are the promotional tools used by Mc Donald than he replied that the promotions aspect of the marketing mix covers all types of marketing communications .One of the methods employed is advertising, Advertising is conducted on TV, radio, in cinema, online, using poster sites and in the press for example in newspapers and magazines. Other promotional methods include sales promotions, point of sale display, merchandising, direct mail, loyalty schemes, door drops, etc. The skill in marketing communications is to develop a campaign which uses several of these methods in a way that provides the most effective results. For example, TV advertising makes people aware of a food item and press advertising provides more detail. This may be supported by in-store promotions to get people to try the product and a collectable promotional device to encourage them to keep on buying the item.

10. Number of Employee in Organization

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When we have asked about the number of employees working in organization than Mr. Hasmukh replied that there are three employees for frontend four for backend and three for other work which we can consider as backend employee.

11. Feedback Process

According to Mr. Hasmukh, usually feedback process is through online. But today they are celebrating National Breakfast day in which they are giving free McMuffin to the people who are filling feedback form.

12. SWOT ANALYSIS

Strengths

McDonald’s holds a very strong brand name worldwide. They have large partnerships with other companies that provide them with their desired products; this

increases the goodwill of the company.

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McDonald’s is one of the most reputed firms who are socially responsible. Loyal employees & management & customer are their biggest strength. McDonald’s makes sure that cultural & regional barriers are kept in mind while providing food to different

countries. Clean environment and play areas for children where they can enjoy their time.

Weakness

The weakness that hits the list of employee turnover rate. Every year many of their employees are fired out of the restaurant.

McDonalds mostly advertises products and food items that targets children.

Health conscious people often complain that they do not provide us with the organic and healthy food. This becomes their weakness when they get in the complaints.

They also face quality issue at times. This affects the business as they are running the outlet worldwide, if one franchise gets affected others also get a bad name.

Opportunities

It can open up online services for their customers so that they can easily order their desired meals sitting at home.

Discounts given on every food item may help them gain more customers.

They can go for a joint venture with the retailers they work with.

They can introduce healthy hamburgers and healthy drinks for the people who are health conscious.

In order to be environment friendly, they can use packing material which can be recycled later or material that does not create pollution.

Threats

Emerging competition of similar outlets is becoming a problem for McDonalds.

Health issue also becomes a problem when it comes to food.

As it is a multinational food outlet, fluctuations in the currency of other countries becomes a problem for such companies.

Recession in any country would definitely affect the whole outlet worldwide.

People facing heart problems and obesity accuse McDonalds for not providing them with the healthy food.

They have a threat of local food outlets in different countries.

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McDonalds is operating in a fully fledged economy where competition is increasing day by day therefore they should work effectively to overcome their drawbacks because of the recession.

13. Five Reason to Choose Mc Donald

When we asked to Mr. Hasmukh please state the top five reasons why Mc Donald’s is so popular and why people choose to come at Mc Donald then he replied I think these are the major reason are (as per him)

1. The System

This is the first thing that makes McDonald's so successful, by having an effective and efficient system in place, which exploits the minimum wage labour available, in the form of young teenagers who are just looking to make some cash or pick up fundamental job skills.

2. Convenience

The second reason why McDonald's is so popular is because it's everywhere. There a McDonald's at every corner of the map, at every major shopping centre, district, highway, freeway, every place which attracts even, remotely more than 10 people, will have a McDonald's restaurant not too far from them. McDonald's is having the best Real Estate locations around the world which makes it so popular around the globe.

3. Likability and Familiarity

The Golden Arches, the Big M. Ronald McDonald, happiness and fun; all these are the associations with McDonald’s which makes it so familiar by being so familiar to all age groups and to everybody.

4. The Menu

McDonald's has one of the most diverse menus, targeting all ages from little kids to old pensioners, and everyone else in between. There's Big Macs for the big kids and junior burgers for the little. The menu's versatility is accentuated when they introduced the "healthy tick" concept, which target those people who wants to watch what they eat (even though it doesn't make sense to go to a fast food restaurant to eat healthy).

5. Consistency

The last reason is, McDonald's is so successful because of its consistency. The expectations that we have about everything surrounding the store are fulfilled in almost every store nationwide, worldwide. So everybody knows what they're getting into before they come to McDonald's, and by being so consistent, it has a solid reputation to uphold.

14. Methods for Customer Relationship or To retain Customers

According to Mr. Hasmukh, to retain the customers mostly Mc Donald coming up with innovative promotional techniques. Like Mc Donald providing free coupon to the customer who buy first time and that coupon will give benefit to consumer for next time purchasing. It is of eight times mostly with limited validity. So, that way they are continuously in touch with the customer.

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15. Display Menu

According to Mr. Hasmukh, Display menu is bring by the Mc Donald first in India. Which is very user-friendly and its give excitement to the customer to choose their product.

16. Challenges faced by Mc Donald

When we asked, what are the major Challenges Mc Donald face nowadays to Mr. Hasmukh replied Space of out late like when more number of people comes to the Mc Donald then we face problem to provide space to all so it may possible that people not wait and they go to some other food restaurant.

Customer Satisfaction is a another challenge mean if we have to make customer satisfy then only customer will come again and recommended or share experience to other people. And in current scenario of service industry, it very difficult to satisfy the customer. More demand of Vegetable foodIn our product portfolio there are only some products of vegetable product and people want new product of vegetable.

Area limitation means one Outlet can cover only one area so that we required more number of Outlets.

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17. Bibliography

http://www.mcdonaldsindia.com/aboutus.html

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18. Annexure

Annexure 1-Menu

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Annexure 2 – Website (Home)

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Annexure 3 – Feedback form

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