Marketing MIX: Made by

MARKETING MIX
OF
MADE BY-
DISHA KHANNA(9958)
MALLIKA DEVI(9941)
TULIKA BHATNAGAR(9901)
Introduction
 The story of McDonald’s started in 1954, when its
founder Raymond Kroc saw a hamburger stand in San
Bernardino, California and envisioned a nationwide
fast food chain.
 McDonald’s is the Eighth Most Poweful Brand in the
world.
 Today McDonald’s is the world’s largest fast food
chain serving 47 million customers daily.
 McDonald’s is now one of the most valuable brands
globally, worth more than $25 billion.
McDonald’s In India
 In 1996, first McDonald’s restaurant opened on Oct.
13, at Basant Lok,Vasant Vihar, New Delhi.
 McDonald's India is a 50 – 50 JV partnership between
McDonald’s Corporation (U.S.A) and two Indian
businessman Amit Jatia (Hardcastle Restaurants
Private Limited, Mumbai)and Vikram Bakshi
(Connaught Plaza Restaurants Private Limited, Delhi).
 Approximately 75% of the menu available in
McDonald’s in India is Indianized and specifically
designed to woo Indian customers.
MARKETING
MIX
Product mix
 McDonalds has intentionally kept its product depth
and product width limited. McDonalds studied the
behaviour of the Indian customer and provided a
totally different menu as compared to its International
offering.
 It dropped ham, beef and mutton burgers from the
menu. India is the only country where McDonalds
serve vegetarian menu.
 Even the sauces and cheese used in India are 100%
vegetarian.
 McDonalds continuously innovates its products
according to the changing preferences and tastes of
its customers. The recent example is the
introduction of the Chicken Maharaja Mac.
 McDonalds bring with it a globally reputed brand,
world class food quality and excellent customer
specific product features.
Co-Branding
 McDonald’s has major tie-ups with various companies as
their cobranding strategy.
 Few of them are listed below-
Coca-Cola
Barbie
Hot wheels
Cadbury
Pricing
 McDonald’s came up with a very catchy punch line
“Aap ke zamane mein ,baap ke zamane ka daam”.
 This was to attract the middle and lower class
consumers and the effect can clearly be seen in the
consumer base McDonalds has now.
 McDonalds has certain value pricing and bundling
strategies such as happy meal, combo meal, family
meal etc to increase overall sales volumes.
Pricing Strategy
Value Ladder strategy-
 a) Started offering value meals in a range of prices.
 b) Ensure affordability and attract widest section of
customers.
 c) Brought the customer and provided a range of
entrylevel products.
Purchasing Power Pricing:-
a) In 1997 slashed prices for vegetable nuggets and
soft serve cone.
b) In September 2001, they offered Veg surprise
burgers for Rs 17.
c) March 2004 – Aap ke zamane mein, baap ke
zamane ka daam.
Aapke zamane mei baap ke zamane
ka daam!!
 Value Pricing
a) Happy price menu – Rs 20.
b) Economeal – Rs 49(save Rs 11).
c) McChicken & McVeggie Meal – Rs 75,Rs 65 (Save Rs
15).
d) Happy Meal for Kids – Rs 69,99,109 (toy free).
e) Big saving Meals – Combos Rs 109 – Rs 119(Save Rs
36).Rs 55- Rs 65 (Non Veg)
f) Desserts – Rs 12 – Rs 25.
g)Beverages – Rs 25- 50 ( a little costly)
Product Line Pricing
 McDonald’s has a unique pricing strategy that falls
solely on their many product lines.
 Value Meals fall into the category of Product Line
Pricing.
 In September 2009, McDonald's announced reduction
in prices by almost 25% for its lunch and dinner
menus. Prices for its extra-value meals like McVeggie
and McChicken were reduced to Rs. 85 and 95
respectively from Rs. 110 and 120 respectively.
Competitive Pricing
MC D SUBWAY KFC DOMINOS
Food
Items
BURGERS RS 20-RS 70 RS 65-RS135 RS 25-RS175 RS 35-RS 140
AND PIZZAS
COMBO RS49-RS119 RS45-RS 175 RS 55-RS 155 RS 120-RS 140

MEALS
BEVERAGES RS 25-RS RS 35-RS RS 15-RS65 RS

50(300 ML) 45(300 ML) 30(SMALL)
Promotion
 McDonald’s does its promotion through television,
hoardings and bus shelters. They use print ads and
the television programmes are also an important
marketing medium for promotion.
 McDonalds, for years has maintained an extensive
promotion strategy with highest spending on
marketing amongst all its competitors.
 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”.
Advertising
 McDonalds focuses on overall experience.

 It believes in-“Brand globally and act locally”.
 Intensive advertising aimed at children.
 Paper mats on trays ensure that no new scheme goes
unnoticed.
 Significant use of billboards and signage.
 Sponsors sport events with their logos advertised in
these events.
 80-20 menu boards marketing tool-
 menu consists of
*80% visuals
*20% descriptive
 Image of portraying warmth and a real slice of
everyday life has become a trademark and has

created many memorable commercials.
 Pricing range, quick service, no-tips environment
attracted middle class and students.

The Mascot..
 The well known mascot Ronald McDonald is the
same throughout the world since 1963.
 It is supposed to be the next most well recognized
figure second only to Santa Claus.

 The color combination maximizes brand
exposure and is supposed to

increase hunger.
Campaigns
 “I’m lovin’ it” is an international branding
campaign which was launched in 2003 and has
proved to be its biggest success.
 “aap ke zamaane mein baap ke zamaane ke

daam” is a highly localized campaign which aimed
at attracting the masses through its happy price
menu.
Distribution
 McDonald’s currently has over 30,000 restaurants in
119 countries across the world.
 McDonald’s continues to focus on managing capital
outlays more effectively through prudent and strategic
expansion.
 In 1998, the company added 1,668 restaurants system-
wide compared with 2,110 in 1997 and 2,642 in 1996.
 McDonald’s realizes the potential for growth in
international markets and plans to benefit from lessons
that they learned in the USA.
 Radhakrishna Foodland Distribution Centres and
cold storages.
“With a cold chain in place there is practically no need for a knife in the
restaurant. Chopping and food processing is done in plants. Restaurants are
confined only to actual cooking” – Amit Jatia.
 Completely dedicated distribution and supply chain.
 Quality inspection Program, quality check at 20
different points in supply chain.
 • HACCP(Hazard analysis critical control points) food
safety standards emphasizing prevention of faults.
Mc Donalds India-suppliers
 Trikaya Agriculture
Supplier of Iceberg Lettuce
 Processed Foods Pvt. Ltd.
supplier of Chicken and Vegetable range of products.

 Dynamix Diary
Supplier of Cheese.
 Amrit Food
Supplier of long life UHT Milk and Milk products for

Frozen Desserts.
Mc Donaldizing the suppliers
 McDonald’s realized that the battle between fast food
chains would increasingly be one of efficiency of
supply, lower cost production and greater desire to
innovate.
 It pioneered with innovative and sophisticated food
distribution and packaging systems when the traditional
food processors were unwilling or unable to supply
food items that McDonald’s demanded.
 McDonald’s also started with tiny suppliers and
grew with them displaying great loyalty.
 Nowhere is the supplier loyalty more evident than in
development of new, improved products. Some of
McDonald’s classic food items like Filet-o-Fish,
French Fries, Chicken Nuggets etc. are results of
supplier innovation. Interestingly, it took KFC more
than three yaers before in finally introduced its own
version of chicken nuggets.
 Thus supplier technological expertise had given
McDonald’s a product which was not a mere
marketing innovation but a technical one.
Mc Donalds India-network & competitors
Mc Donalds India-outlets
 STANDARDISATION IS THE KEY-
Importance Of PLC in Mc Donalds
 McDonalds has continuously introduced new

products and has phased out the old ones which
were at the decline stage of their PLC.
 The introduction is timed such that the new product
does not cannibalize the product already in the
maturity or growth stage. Thus the secret lies in
getting profits with different products in the
different stages of PLC.
Example of revitalising a product
 The French Fries have been an important part of
the McDonalds menu worldwide. But now it was in
the stage of decline and was actually not generating
proper return.
 In an attempt to revitalize it, a new variant was
introduced namely Shake Shake Fries. This has
resulted in increase in the sales of French Fries and
has elevated it from to the decline stage.
Issues With McDonalds
 Nutritionists argue that the type of high fat, low fibre diet
promoted by McDonald's is linked to serious diseases such
as cancer, heart disease, obesity and other diseases.
 Many parents object strongly to the influence this has over
their children.
 Complaints from employees range from discrimination
and lack of rights, to understaffing, few breaks and to poor
safety norms.
 However,the company spends a fortune promoting itself as
environment friendly.
Physical Evidence
 Cleanliness, speed, quality and transparency of
process is the biggest physical evidence.
 The interiors are attractive and more or less
consistent throughout the world.
 A proper decorum and strict standards of
cleanliness are maintained at all the joints.
 Extra care is given to make the joints children
.friendly
People
 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 their employees they give
them stars as per their performance.
McDonald’s India: The Road
Ahead…
 Increasing seating capacity.
 Aggressive expansion plans throughout the
country.
 Oil alliance with BPCL in 2002, with HPCL in Jan,
2008.
 Independent franchisee model.
 Mc Home Delivery.
 Entry in new cities.
THANK YOU

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MARKETING MIX

COMBO RS49-RS119 RS45-RS 175 RS 55-RS 155 RS 120-RS 140

BEVERAGES RS 25-RS RS 35-RS RS 15-RS65 RS

 McDonalds focuses on overall experience.

everyday life has become a trademark and has

attracted middle class and students.

figure second only to Santa Claus.

exposure and is supposed to

 “aap ke zamaane mein baap ke zamaane ke

supplier of Chicken and Vegetable range of products.

Supplier of long life UHT Milk and Milk products for

 McDonalds has continuously introduced new

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