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Introduction
Can u guess the name of the company which is
is the ninth most valuable brand in the world?
has replaced the us army as the nation largest job training organization?
controls the market share of more than 3 food chains taken together in
America? Its none other than Mcdonalds corporation USA. Looking at the
above statistics makes one wonder that what is the driving force behind all
these achievements? How is it that the chicken burger available in San
Francisco is same as the one available in delhi? Many of these question havebeen answered in the book Mcdonalds: behind the golden arches written by
john love. But are these standards being carried out in India as well?
The golden arches of Mcdonalds are slowly becoming an integral part of the
Indian landscapes. Everyone knows mcdonalds is big, but very few know just
how significant its impact on Indian business really is. The inside of
Mcdonalds remains a mystery.
Mcdonalds india is a joint venture of Mcdonalds corporation with Amit Jatiaand Vikram Bakshi. Amit jatia handles the operation in westerns region
whereas Vikram Bakshi in the northern region.
Mcdonalds india is an employer of opportunities, providing quality
employment and long term careers to the indian people. The average
Mcdonalds restaurants employees more than 100 people in 25 different
position-from cashiers to restaurants managers. Mcdonalds world class-
training inputs to its employees can be seen in the present close to 2000employees currently in Mumbai and Delhi.
But the most overlooked facts of Mcdonalds india are its contribution to the
food industry. Six years prior to the opening of the first mc donalds restaurant
in india, mcdonalds and its international supplier partners together with local
indian companies to develop products that meet mcdonalds rigorous quality
standards. Part of this development involves the transfer of state of the art food
processing technology, which has enabled indian businesses to grow by
improving their ability to compete in todays international markets. Mcdonaldsdedication to its supplier has lead to their growth beyond the boundaries of the
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india.
These aspects of mcdonalds do not get covered and highlighted by the hungry
press. But when the false news of using beef tallow in the french fries hit the
market, the press did not leave a chance to exaggerate it. Despite the fact that
right form the beginning; no beef ingredients have been used in any of the
product.
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History of mcdonalds
it all began in 1955, with a salesman named raymond albert kroc and a milkshake maker named multimate.
Raymond albert kroc (1902-1984)(a salesman)ray kroc mortgaged his home and invested his entire life savings to become theexclusive distributor of a five-spindled milk shake maker called the multimixer.
Hearing about the mcdonalds hamburger stand in california running eight
multimixers at time, he packed up his car and headed west. It was1954. He was52 years old.
Dick and mac mcdonalds restaurant,san bernardino, californiaray kroc had never seen so many people served so quickly when he pulled up totake a look. Seizing the day, he pitched the idea of opening up severalrestaurant to the brothers dick and mac mcdonalds, convinced that he could
sell eight of his multimixer to each and everyone. who could we get to open
them for us? what about me?
Where it all began, des plaines, illinoisray kroc opened the des plaines restaurant in 1955. First days revenues-$366.12! No longer is a functioning restaurant, the des plaines building now amuseum containing mcdonalds memorabilia and artifacts, including themultimixer.
In short
1955- ray kroc opens first restaurant in des plaines, illinois and themcdonalds corporation is created.1957- quality, service, cleanliness and value (qsc&v) becomes thecompany motto.1959- the 100 mcdonalds open in chicago.1961- hamburger university opens in elk grove, near chicago.1963- one million hamburger sold. Ronald mcdonalds make his debut.
1964- filet-o-fresh sandwich is introduced.1965- mcdonalds corporation goes public.
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1967- the first restaurants outside of the usa opens in canada and puertorico.1968- the big mac is introduced. The thousand restaurants open in
des plaines, illinois.1972- a new restaurant opens everyday. The quarter pounder is introduced.1973- egg mc.muffin introduced.1974- the first ronald mcdonalds house opens in philadephia. Thehappy meal is launched.
1983- chicken mcnuggest is introduced. New hamburger university opensin oak. Brook, illinois. Set in 80 wooded acres. Training is provided forevery level of mcdonalds worldwide.
1984- 50 billion hamburger sold. Ronald mcdonalds charities is foundedin ray krocs memory to raise funds in support of child welfare.1989- mcdonalds is listed on the frankfurt, munich, paris and tokyostockexchanges.1990- mcdonalds opens in push kin square and gorky street, moscow.
1993- the first mcdonalds at sea opens abroad the silja europe, the worldslargest ferry sailing between stockholm and helsinki.1994- restaurants open in bahrain, bulgaria, egypt, kuwait latvia, oman
new caledonia, trinidad and united arab emirates, bringing the totalto over 15,000 in 79 countries on 6 continents.
1996 - mcdonalds opens in india- the 95 country.1997 - the first drive -thru restaurant at noida (up)1997 - the first disabled friendly store at noida (up)1999 - the first mall location restaurant at ansal plaza - new delhi2000- the first highway restaurant at mathura2001 - the first thematic restaurant at connaught place
2002 - the first restaurant in a food court at 3c's, lajpat nagar and the firstrestaurant at the delhi metro station at inter state bus terminus2003 - first cold kioskfaridabad
2004 - trash segregation method installed at- east delhi mall, kaushambi, up2004 - mcdonald's delivery service introduced2003 -04 mcaloo tikki, veg burger and pizza mcpuff are now being exported tomiddle east countries.2005 - 50th store openingfaridabad
2006- home delivery is mechanised2007-mc donald store is introduced in Bhopal
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History of mcdonalds brand
Mac and dick mcdonald established mcdonalds brand in 1940 by using theirsurname. In 1962,when dick mcdonalds sent kroc an illustration of themcdonalds family crest, kroc had it added to the sign as a symbol of quality,replacing speedee, the boyish chef character that the mcdonalds brother haddevelop to designate the speedee service system. When others insisted that thecrest was gaudy the search was on for a more stylist corporate symbol. Turner
fiddled with the logo, based on the veldt in the cadillac insignia, and schindlerused that to sketch a logo that pictured the slanted roofline of the store piercinga line drawing of the golden arches in the form of an m. In 1968, the rooflineimage was dropped and the mcdonalds name was added to derive the currentlogo. Since then logo has not undergone any major changes. The introductionsof the ronald mcdonalds character later develop a human element in themcdonalds brand, and provided an instant link with children.
Offering:a brand is an offering from known source. Mcdonalds carries manyassociations in the minds of people. Hamburger, fun, children, fast food, golden
arches. These associations make up the brand image.Mcdonalds on six levels of meaning.
Attributea clean fast food brand which tastes the same any where you eat in the world.
Benefitsyou dont have to stay hungry for a long time. Mcdonalds ready to eatavailable.
Valuesthe world leader in fast food restaurants.
Culturethe brand represents culture of social gathering for families and groups.
Personalitythe world leader, a giant m.
User
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all kinds of consumers buy mcdonalds products irrespective of age, sex all overthe world. One can see all types of personalities in the mcdonalds restaurant.
Hamburger universityhamburger university is mcdonalds worldwide management training center
located in oak brook, illinois. Designed exclusively to instruct personnelemployed by mcdonalds corporation or employed by mcdonalds independentfranchisees in the various aspects of the business. All training programs beginwith one essential ingredient: the basics of mcdonalds operations.
Founded in 1961, hamburger university has come a long way since mcdonaldsopened their first training facility in the basement of a mcdonalds restaurantsin elk groove village, illinois since that time they have moved hamburgeruniversity twice and watched the size of classes grow from an average size ofabout 10 to more than 200 per class.Today more than 65000 managers in mcdonalds restaurants have graduated
from hamburger university, now located in a 130000 square foot, state of theart facility on the mcdonalds home office campus in oakbrook, illinois, with a
faculty of 30 resident professors.Because of the mcdonalds international scope, translators and electronicequipment enable professors to teach and communicate in 22 languages at onetime. Mcdonalds also manages ten international training centers, includinghamburger universities in england, japan, germany and australia.
Mcdonalds marketing strategy worldwide. The first step in developing amarketing strategy is to understand the customers, enabling reaction to their
changing needs and the dynamics of the market. To this end mcdonaldsconduct several stages of in-depth customer research and audits of themcdonalds brand. The research involving both quantitative and qualitativeresearch methods. This research tells them a lot about how mcdonalds is
perceived and about trends that are taking place in the market. They alsoconduct research into the local area of their restaurants, into the generalmarket environment, and into specific areas of their business, children forexample.
Mcdonald does also have a through understanding of their competition. They
consider 3 basic areas.
1. The total eating out market gives the broadest competitive context andincludes all restaurants, hotels, pubs, and any other outlet where people eat.
2. They also focus on the quick service restaurant sector. This includes all theobvious competition and also fish and sandwich shops-any outlet where food isserved quickly.
3. The final sector that they focus on is defined as the burger house sector. Thislooks at only at restaurants serving hamburgers including burger king, wimpy,
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wendys and all independent burger bars.
A useful way to gaining knowledge of all aspects of the competition is theexamination of the four ps of the marketing mix: promotion, pricing, product,
and place.
competitive promotion: before they communicate with their customers theymust be aware of what the competitors are communicating so that they cancreate a beneficial difference between mcdonalds and them.
competitive pricing: being in touch with the pricing of their competitorsallows them to price their products correctly, balancing quality with value.
competitive product: quick service restaurants are constantly expanding theirmenus. This can be done on a short-term promotional basis or as a long term
expansion strategy.
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Mcdonalds in India
India opened its doors to mcdonalds in october 1996. Ever since, family
restaurants in mumbai, delhi, pune, ahmedabad, vadodara, ludhiana,faridabad, doraha, manesar, gurgaon, jaipur and now recently new outlet waslaunched in allahabad (civil lines) have processed to demonstrate, much to thedelight of all the customers, what the mc donalds experience is all about.
Jatia and bakshimcdonalds india is a joint venture company managed by indians. Mcdonaldsusa, has expanded its presence in india via 2 joint venture companies-connaught plaza restaurant and hardcastel restaurants manages operations andexpansions across north india (delhi, jaipur and punjab)-led by vikram bakshi-and hardcastle restaurants, which is headed by amit jatia, manages operationsand expansion across western india (mumbai, pune, and gujarat)
focus on philosophywe take the burger business more seriously than anyone else.When mcdonalds founder, ray kroc made that memorable statement, he wasletting the world in on the philosophy and secret behind mcdonalds
phenomenal success.
Quality, service, cleanliness and value
it is an unflinching mcdonalds ideology that the customer must always get
quality products, served quickly and with a smile, in a clean and pleasant
environment and all at a fair price.
giving you qsc&v is top priority for us. All our products are prepared in the
cleanest of surroundings- incredible quality, impeccable service at affordable
prices.
Mcdonalds indias expansion plans:
encouraged by the overwhelming response to the family restaurants,
mcdonalds india has spread its wings. Currently, mcdonald's has 76
restaurants - 26 in delhi, 3 in gurgaon, 4 in noida, 3 in faridabad, 3 in
ghaziabad & 2 in jaipur, 2 in ludhiana, 1 each in chandigarh, meerut, lucknow,
kanpur, mathura and manesar on the delhi-jaipur highway, the national
highway no 1 in karnal, doraha and in jalandhar. In addition to this, there are
18 restaurants in mumbai, 3 in pune, 1 in vadodara and 1 in ahmedabad.
Mcdonald's also opened its doors to south india with its first restaurant in
bangalore in oct. 2004.
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restaurants can be identified by the different coloured aprons that they wear.
This separation of vegetarian and non vegetarian food products is maintained
throughout the various stages of procurement from the suppliers, cooking and
serving.
Controversies in india
The french fries issue:
on may 4 2001, the outcry over the alleged use of beef flavoring in the
preparation of french fries by mcdonalds led to attacks on two outlets in
mumbai and thane. Within hours of the story breaking that mcdonalds in the us
had been using oil with a beef extract for cooking its fries the burger giants
indian operation knew it had crises on its hands.
Amit jatia and his staff huddled together with pr specialization from corporate
voice shan wick, ad man from mudra ddb, corporate affairs and legal experts.
Police security for all outlets was first red alerted. Then, posters were made
from office printers with the headline 100 percent vegetarian french fries in
mcdonalds india. Below this were various bullets of information such as: no
flavors with animal products/extracts are used for preparing any vegetarian
products in india. The posters were plastered over all the big m outlets.
The main imperative was to supply proof. On the day story broke in india,
mcdonalds submitted samples of the fries to leading laboratories in pune and
mumbai, such as the council of fairs business practices, as well as delhis
central food and technical research institute. Tests were quickly done by the
bmc (bombay municipal corporation) and fda and local political parties. It took
a week but results were clear no beef or meat in the oil or products- which were
rapidly passed to the press. The results were also posted in the various outletsand put as inserts in the daily papers in sensitive areas like bombays vile parle,
charni road and thane district.
All these marketing effort helped the big mac to avert the crises and regain the
confidence of the customers. For a few days after the news, the sales dropped
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drastically, but now, the outlets are back to their usual footfalls and french fries
remain the most favorite and most selling product of mcdonalds in india.
Trans fatty acid
A bit of a problem because fatty acids and saturated fats in a high amount cause
health problems such as artery clogging and related diseases. Although yet to
make profits, the global food chain serves an exciting new combo for indian
palates.
The marketing mix and market research
having identified its key audiences a company has to ensure a marketing mix is
created those appeals specifically to those people.
The marketing mix is a term used to describe the four main marketing tools
(4ps):
using detailed information about its customers, mcdonald's marketing
department can determine:
1. What products are well received?
2. What prices consumers are willing to pay?
3. What tv programmes, newspapers and advertising consumers read or view?
4. What restaurants are visited?
Market research is the format which enables mcdonald's to identify this key
information. Accurate research is essential in creating the right mix to win
customer loyalty.
In all its markets mcdonald's faces competition from other businesses.
Additionally, economic, legal and technological changes, social factors, the
retail environment and many other elements affect mcdonald's success in the
market.
Market research identifies these factors and anticipates how they will affect
people's willingness to buy. As the economy and social attitudes change, so do
buying patterns. Mcdonald's needs to identify whether the number of target
customers is growing or shrinking and whether their buying habits will change
in the future.
Market research considers everything that affects buying decisions. These
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buying decisions can often be affected by wider factors than just the product
itself. Psychological factors are important, e.g. What image does the product
give or how the consumer feels when purchasing it.
These additional psychological factors are significantly important to the
customer. They can be even more important than the products' physical benefits.
Through marketing, mcdonald's establishes a prominent position in the minds of
customers. This is known as branding.
Meeting the needs of key audiences
there are a limited number of customers in the market. To build long-term
business it is essential to retain people once they have become customers.
Customers are not all the same. Market research identifies different types of
customers. For example:
a parent with two children might visit. Visits mcdonalds to give the children a
treat.
The children want to visit mcdonalds. As it is a fun place to eat.
A business customer visit mcdonalds during the work day. As service is quick,
the food tastes great and can be eaten in the car, without affecting a busy
schedule.
Teenagers visit mcdonalds the menu is affordable, and there is internet access
in some restaurants.
These examples represent just a few of mcdonald's possible customer profiles.
Each has different reasons for coming to mcdonald's.
Using this type of information mcdonald's can tailor communication to the
needs of specific groups. It is their needs that determine the type of products
and services offered, prices charged, promotions created and where restaurants
are located.
To meet the needs of the key market it is important to analyse the internal
marketing strengths of the organisation. Strengths and weaknesses must be
identified, so that a marketing strategy which is right for the business can be
decided upon.
Theanalysis will include the:
company's products and how appropriate they are for the future.
quality of employees and how well trained they are to offer the best service to
customers.
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systems and how well they function in providing customer satisfaction e.g.
Marketing databases and restaurant systems.
financial resources available for marketing.
once the strengths and weaknesses are determined, they are combined with
the opportunities and threats in the market place. This is known as
swotanalysis (strengths, weaknesses, opportunities, and threats).
The business can then determine what it needs to do in order to increase its
chances of marketing successfully.
Strenghths (internal) weaknesses (internal)
e.g. The brand and the detailed market research to create the right marketing
mix. Mcdonalds has been around for a long time. (therefore important to keep
innovating).
Oppurtunities(external) threats(external)
e.g. Increasing numbers of customers looking for food that is served in a quick
and friendly way. New competitors. Changing customer lifestyles
Marketing objective
A marketing plan must be created to meet clear objectives. Objectives guidemarketing actions and are used to measure how well a plan is working.
These can be related to market share, sales, and goals, reaching the target
audience and creating awareness in the marketplace. The objectives
communicate what marketers want to achieve.
Long-term objectives are broken down into shorter-term measurable targets,
which mcdonald's uses as milestones along the way. Results can be analyzed
regularly to see whether objectives are being met. This type of feedback allows
the company to change plans. It gives flexibility.Once marketing objectives are set the next stage is to define how they will be
achieved. The marketing strategy is the statement of how objectives will be
delivered. It explains what marketing actions and resources will be used and
how they will work together.
Mcdonalds product
Mcdonalds concentrated on studying the indian culture, its value-systems and
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its influence in food consumption decision making. It found that although a
substantial proportion of the populations were non-vegetarians, they stuck to
mostly fish, mutton and chicken. Muslim took beef but though pig meat to be
dirty; hindus preferred neither beef nor pork; christian took both beef and pork.
Mcdonalds decided, for the first time in their business history, to drop ham and
beef burger from their menu. Two years back, they even excluded mutton
burgers from their offerings.
Mcdonalds developed a menu especially for indian with vegetarian selection to
suite indian taste. It introduced products like mctikki aloo for the punjabi taste
buds. Mcdonalds has also re-engineered its operation to address the special
requirements of a vegetarian menu. The cheese and cold sauces used in india is
100 % vegetarian.
Mcdonalds are committed for giving customers wholesome, healthy, and
delicious food. They ensure that the cooking area as well as cooking equipment
for vegetarian products is visibly segregated from the non vegetarian sections.
Whats more- their crew members cooking vegetarian food items are
identifiable by their green aprons.
In a survey conducted by the restaurateur, it was found that the vegetarian
menu was more popular than the non-vegetarian ones, (see figure below), with
french fries being the most sought after.
Favorite product
popularity of veg burger and non veg in mcdonalds
veg menumcveggie
breaded fried vegetable patty consists of peas, carrots, green, beans, red
capsicum, potatoes, onions, rice and seasoning. The burger also includes
lettuce, egg less mayonnaise in a toasted sesame seed bun.Mcaloo tikki
fried breaded potato and peas patty that is flavored with a special spice mix,
fresh tomato slices, onion, and veg tomato mayonnaise between toasted buns.
Paneer salsa wrap
a traditional mexican soft flat bread that envelops crispy golden brown cottage
cheese encrusted with a mexican cajun coating, and a salads mix of iceberg
lettuce, carrot, red cabbage and celery, served with egg less mayonnaise, tangy
mexican salsa sauce and cheddar cheese.
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Crispy Chinese
a crispy patty that is seasoned with oriental flavors, topped with a creamy
vegetarian schezwan sauce and crunchy sauce iceberg lettuce and served
between two fresh buns.
Pizza mcpuff
mixed vegetables (carrot, beans, capsicum, onion and green peas), mozzarella
cheese mixed with tomato sauce and spice blend coated with a savory dough
veg mc curry pan(broccoli n mushroom)
a rich bchamel eggless sauce mixed with exotic vegetables like broccoli, baby
corn, mushroom, red capsicum and freshly baked on rectangular spiced bread
with a cheese topping.
Non veg menu
chicken maharaja mac
two grilled chicken patties with a smoke flavored mayonnaise, fresh onions,
tomatoes, processed cheddar cheese in a toasted sesame seeded bun.
Mcchicken
specially seasoned, breaded and fried chicken patty, with lettuce, veg
mayonnaise and toasted sesame seed bun.
Filet-o-fish
fried, breaded fillet of fish, with a half slice of processed cheddar cheese,
special tartar sauce served between steamed buns.
Chicken mexican wrap
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 with eggless mayonnaise, tangy mexican salsa
sauce and cheddar cheese.
Chicken mcgrill
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grilled chicken patty flavored with mint mayonnaise, and dressed with fresh
onions and tomatoes in a toasted bun.
Chicken mccurry pan
(chicken n tomato)
a blend of italian tomato curry sauce tempered with thyme, basil and oregano
mixed with chicken and capsicum, freshly baked on rectangular spiced bread
and topped with cheese.
Veg and non veg product
mcdonalds world famous french fries are produced only from the best quality
potatoes. These potatoes are cut, blanched and processed lines to ensuremaximum retention of nutrients. These fries are cooked at the plant and our
restaurants in 100% vegetable cooking oil. The only thing they add to fries is
salt.
Potato wedges
their new potato wedges are produced only from the best quality potatoes.
These potatoes are cut, blanched and processed on state of the art processing
lines to ensure maximum retention of nutrients. They are cooked at plant and
our restaurant in 100% vegetable cooking oil.
Beverages
Frozen deserts
Meal:
at mcdonalds they continually review and improve their menu offering to makesure that not only do they meet their customers expectation, but they also
exceed them. As a result, they have introduced a series of ongoing value options
to suite their customers different needs.
Value meal:
value meals consist of a burger; fries and a drink are available in 3 sizes.
Small value meal medium value meal large value meal
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burger burger burger
+ + +
potato wedges medium fries large fries
+ + +
small drink medium drink large drink
we can also substitute the drink in tour value meal with a mc shakes, coffee, tea,
hit chocolate, vanilla coke, ice tea or cold coffee by paying the difference.
Happy meal:
a happy meal consists of a burger + small drink + toy. You can also substitute
the small drink in the happy meal with a small mcshakes by paying the
difference.
Family value meal: value for money combination for the entire family.
Pick any 2 of these (mcveggie, filet-o-fish, mcchicken)
+
choose a happy meal (mcaloo tikki or chicken mcgrill+ regular coke+toy)
+
get 2 small fries
+
add 2 regular cokes
home delivery
11:00 am to 11:00 pm
Mcdonalds india is one of the few countries that provide a home delivery
service. In western india, this service is currently available at select localities.
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However, they do plan to extend this service to all restaurants.
All we have to do is dial our telephone number - 6600 0666 (pune residents
please prefix 9522) and place the order. There is no restriction on the minimum
order for home delivery; however there is a fee of rs 15 per order as delivery
charges, irrespective of the size of the order. The restaurants will deliver to
neighbourhoods which are up to 10 minutes away by road. The reason for this
limit being that we need to ensure that they do not compromise on the quality of
their food. The mapping of the delivery area is such that even during peak hours
our customers receive food that is hot and fresh.
Price
The customer's perception of value is an important determinant of the price
charged. Customers draw their own mental picture of what a product is worth.
A product is more than a physical item; it also has psychological connotations
for the customer.
The danger of using low price as a marketing tool is that the customer may feel
that quality is being compromised. It is important when deciding on price to be
fully aware of the brand and its integrity. A further consequence of price
reduction is that competitors match prices resulting in no extra demand. This
means the profit margin has been reduced without increasing sales.
Physical evidence:
the physical evidence factor of all the mcdonalds centers are the signboards,
golden arches, buildings, interiors, colours combination of yellow and red,
clean facilities, visible food preparation section etc. The site shown in the
picture is 52 years-old and is the oldest in the worldwide chain of 20000
restaurants and the last one with red-and-white stripped tile exterior. After
opening in 1953, it immediately became the standard for the fast foodfranchises across the country. The building and its 60-foot high neon sign with
speedee the chef are eligiblefor listing on the national register of historic.
Promotions
The promotions aspect of the marketing mix covers all types of marketing
communications. The methods include advertising, sometimes known as 'above
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the line' activity. Advertising is conducted on tv, radio, cinema, online, poster
sites and in the press (newspapers, magazines).
What distinguishes advertising from other marketing communications is that
media owners are paid before the advertiser can take space in the medium.
Other promotional methods include sales promotions, point of sale display,
merchandising, direct mail, telemarketing, exhibitions, seminars, loyalty
schemes, door drops, demonstrations, 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 buying the item. It is imperative that the messages
communicated support each other and do not confuse customers. A thorough
understanding of what the brand represents is the key to a consistent message.
The purpose of most marketing communications is to move the target audience
to some type of action. This may be to: buy the product, visit a restaurant,
recommend the choice to a friend or increase purchase of the menu item.
Key objectives of advertising are to make people aware of an item, feel positive
about it and remember it. The more mcdonald's knows about the people it is
serving the more it is able to communicate messages which appeal to them.
Messages should gain customers' attention and keep their interest. The next
stage is to get them to want what is offered. Showing the benefits which they will
obtain by taking action, is usually sufficient. The right messages must be
targeted at the right audience, using the right media.
Effective communication
for example, to reach a single professional woman with income above a certain
level, it may be better to take an advertisement in cosmopolitan than woman's
own. To advertise to mothers with children, it may be more effective to take
advertising space in cinemas during disney films. The right media depends on
who the viewers, readers or listeners are and how closely they resemble the
target audience.
The media magic
you deserve a break today, so get up and get away- to mcdonalds
the above break commercial was one of the initial commercial themes adopted
by mcdonalds united state which became the best known commercial song on
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television and, in fact, the most identifiable advertising themes of all time.
Needham was one of the first advertising agencies of mcdonalds which made
many revolutionary advertisements for the company. Needhams advertising
formula became know in mcdonalds as food, folks, and fun and it remains
the backbone of all the chains advertising campaigns.
Mcdonalds is now, one of the worlds mightiest consumer marketers. Its brand
valuation is $25 billion, making the ninth most valuable brand in the world.
Why mudra in india?
Ddb needham and leo burnett are the advertising agencies of mcdonalds are
worldwide. Hence, when they came to india, the subsidiary of both the
companies pitched for the account and mudra the indian partner of ddb
needham got the account. Since the very beginning mudra has been the
advertising agency of mcdonalds india.
The mudra team meets up with mcdonalds marketing team on a regular basis
and they have a debate and discussion on the new strategies to be adopted.
Mcdonalds uses various medias like television, hoardings and bus shelters.
They are almost out of print ads. Mcdonalds also sponsor many television
programmers like kaun banega crorepati, children shows etc.
Even the paper mats on the trays at the mcdonalds are designed as per the
ongoing marketing strategy of mcdonalds. For e.g.: during the french fries
issues, all their paper mats had description of the burgers, how the vegetarian
products are made etc, to regain the confidence of the customers. The placing of
the pamphlets, banners in and around the outlets is decided upon by the area
sales manager and the operations manager, in co-ordination with the
restaurant manager. For e.g. : currently they have the bugs life theme going on
wherein they give free bugs life toys with the happy meal. All the outlets are
decorated with the pictures of the toys and even the paper mats have pictures of
the toys on them. The hoardings around the outlets carry the same theme.
Under the recent research conduct by mcdonalds they found that the
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consumers would have a clear remembrance of the 80-20 board. This board
also helps give a feel of the product before it is purchased.
The aim is to make things easier for the customer to understand what the 39, 49,
59, 79, 89 rupee option are. And of course it is easier for mcdonalds also to
give back one rupee change so that the service can be quick.
Sales promotion, marketing, and merchandising
enhance the mcdonalds image of quality, service, cleanliness and value
globally in via heavy media advertising and in-store merchandise promotions
funded with fees tied to a percent of sales revenues at each restaurants.
using freebies, soft toys, key chains, etc to attract kids.
they ideally make use of the fad in the market to attract consumers. They
often have tie ups with movie and television cartoon character.
continue to use value pricing and extra value meals to build customers traffic.
use ronald mcdonalds to create greater brand awareness among children,
and the mc prefix to reinforce the connection of menu items and
mcdonalds.
Marketing strategy of mcdonalds in india
mcdonalds growth strategy is based on the three elements
stage 1: building the brand
stage 2: awareness of the products
stage 3: gunning for market share
stage 4: building the brand
the stage fright advertisement (we make you smile!)
The initial marketing strategy was focused on the brand name in india.
Mcdonalds wanted to bring an awareness of its presence, of the arrival of
mcdonalds in india. Hence, even thought it had presence only in 2 cities, delhi
and mumbai, it still went in for nationwide advertising.
The first advertisement of the mcdonalds in india was of a child getting tensed
in a fancy dress competition and forgetting his lines. His father then takes him
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to mcdonalds where he forgets all his fears and gives a brilliant performance
appreciated by all in the restaurant. Every child in india could relate itself to
the advertisement and it gave the parents the idea that if their child were
unhappy, taking him to mcdonalds would definitely bring a smile to his face.
When vikram bakshi was asked how did the idea for the first advertisement
come up, his reply was:
the idea came from the experiences of what we saw happening at the
restaurants. I think one of the things that recent research has shown is that 69
percent of the kids prefer us. That kind of response is overwhelming! We have
seen over a period of time that some of the things we set out to do in 1997-98
are paying off now. Really the kids are very happy to be here. They find it a
hassle free experience. Nobody to say, sit down! Or dont move! He is no
longer told that if he runs around he will bang into someone and spill things
over. He doesnt encounter adults all the time like does in specialty restaurants
waiters who are in their thirties and forties, with faces which say, keep out of
my way what he sees when he comes into mcdonalds that is a place that is
brightly lit there are no dark corners that he needs to be scared of the people
working here are all young. He can walk up to the counter and for whatever he
wants, someone will talk to him, take him seriously, look after him ask him
question.
He has a play area where he can run around. And clearly even parents come in
with their children here. I have seen many instances where parents are also
enjoying themselves.
There was this lady i met and she asked me, what is this that you do to
children? So i said, what do we do meaning? She said, my two year old
recognizes mcdonalds. When i took her to wimpys the other day she refused to
enter the place, saying it was not mcdonalds.
Stage 2: awareness of the product
mcdonalds then felt that it needed to highlight its product along with the
experience. Hence, came the series of advertisements highlighted on the
products and new launches of mcdonalds. Mcdonalds wanted the customer to
know that they have something for everybody, be it children or adult, vegetarian
or non- vegetarian. The advertisements in these series were:
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the sleeping couple: in the sleeping couple advertisement the husband is
shown dreaming about the various products of mcdonalds. Anyone watching
the advertisement felt like going to mcdonalds right away.
the police and thief: the thief is on a run from the police but makes a stop at
mcdonalds to have the new mc pizza puff and the chicken mcgrill.
the barber and the customer: the customer is getting himself shaved when he
hears about the launch of mc pizza puff and chicken mcgrill, and runs to the
nearest mcdonalds half shaved.
the runaway bridegroom: a couple is getting married when the bridegroom
runs away in the middle of the marriage to have the new mc pizza puff and the
chicken mcgrill and the whole family follows him.
veg surprise: the latest commercial, around 3 of them, are focused on the
launch of the new veg surprise for rs.17 only with the punch line yakein hi
nahin hota
stage 3: gunning for market share
the latest advertisements of mcdonalds are a transition from the first strategy
in the initial advertisements; mcdonalds was attempting to build a relationship
with the customers. But now the advertisements portray that the relationship
has already been established. Its got the mind share, and its now gunning for
market share.
The add campaigns are trying to portray mcdonalds as a constant companion,
which makes people feel special. The recent commercial highlighted the bond
that mcdonalds shares with people. It shows a child is once again reassured.
Stage shifting sleeping traffic others none
fright house couple policeman
the recent ad campaign is targeting the indian father, as he is still looked upon
as a decision maker. The newpositioning: mcdonalds is a special place where
caring dads take their families to give them a great time. So its a clear
positioning as a family restaurant. we are positioning ourselves as the
welcoming and affordable family restaurant committed to values of quality, fun
and excitement. It is also a restaurant which makes you feel special and makes
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you smile says amit jatia.
Miscellaneous advertisements
there were many advertisements made by mcdonalds emphasizing on the
schemes, the prices and various other aspects. Some of them were:
the itch karo schemes: this advertisement was to promote the scheme of mc
donalds where in you could win prizes right from a small cadbury to a
television and bike.
soft serve cone: there were many advertisements focusing on the rs.7 soft
serve cone. One of them was of a traffic policeman who gets tired of directing
the customers to the mc donalds outlet? This advertisement if of the most liked
and remembered advertisements of mc donalds.
happy meal: there are various advertisements relayed during children
programmes on the television and also children channels emphasizing on the
happy meals and the toys you get with them.
Place, process and distribution
in setting up its operating system, mcdonald' displayed no particular genius just
tenacity to survive today, all fast food chains build central organization to
develop standards of operation and train the licensees to meet them. They must
be responsible for picking supplier and setting specifications on all food
products. And finally, they must monitor the system to determine that the
franchisees are following standards and that the suppliers are meeting product
specification. As logical and basic as that the sounds, it was a revolutionary
concept in food franchising when mcdonalds took that approach in the 1950s.
In fact, mcdonalds greatest impact on american business is in the areas that
consumers do not see. In their search for improvement, mcdonalds operations
specialist moved back down the food and equipment supply chain. They change
the way farmers grow potatoes and the way companies process them. They
altered the way ranchers raised beef and the way the meet industry makes the
final product. They invented the most efficient cooking equipment and pioneered
new methods of food packaging and distribution.
The mcdonalds in india followed the same tradition. Long before the first
maharaja mac was served up, mcdonalds was here in india, setting up the
elaborate cold chain that supplies all the restaurants in the country. It took six
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years from 1991 when the work started, until the system was in place. we spent
rs.50 crore- even before the first restaurants were set up in 1996, amit jatia
confesses.
The supply chain overvies
Did you know that every year, rs. 50000 crore worth of food produce is wasted
in india? This is mainly because of the lack of proper infrastructure for storage
and transportation under controlled conditions. The supply chain age and
transportation under controlled conditions. Mcdonalds is committed to
providing quality products while supporting other indian businesses. And also,they spent a few years setting up unique supply chain, even before they opened
their first restaurant in india.
A supply chain is a network of facilities includingmaterial flow from supplier
and their upstream suppliers at all levels, transformation of materials into
semi-finished and finished products, and distribution of products to customers
and their downstream customers at all levels.
When there is a balance in the finished product ordering, the supply chain
operates at its best. Any major fluctuation in the product ordering pattern
causes excess/ fluctuating inventories, shortages /stock outs, longer lead times,
higher transportation and manufacturing costs, and mistrust between supply
chain partners. This is called the bullwhip effect.
The supply chain objectives are assured supply, low cost and safe and
consistent quality. During 1990, when they first set out to their infrastructure,they found that the cold chain system was non existent. There were only 200
refrigerated trucks across the country and they were few cold storages. The
cold storages were prilimarily used by the ice cream sector and they were of
very poor quality. The cold chain system set up involved the transfer of
technology from mcdonalds in the us and its international partners. The
standards also strictly adhere to indian government regulations on food, health
and hygiene.
Currently, mcdonalds distribution centers (dcs) are in touch with all the
suppliers through electronics interconnectivity (e-mail). The supply chain
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converts the 15- days lead-time from the suppliers to a one day ordering lead-
time for the restaurant.
The products are picked up in temperature-controlled vehicles by a third-party
logistics company a delivered at the dsc. The dsc then supply to restaurants on
a need-basis. All products go through the quality control checks before
reaching the customer.
According to hardcastle restaurants national supply chain product manager mr.
Saravanan: traditionally, any supply chain functions through suppliers,
stockiest, distributors, primary wholesalers, secondary wholesalers and
retailers. However, at mcdonalds india, the supply chain involves only
producers, distributors and retailers.
Cold chain:
the cold chain is necessary to maintain the integrity of food products and retain
their freshness and nutritional value. The cold chain is an integral part of the
supply chain.
Setting up the cold chain has involved the transfer of state of the art food
processing technology by mcdonalds and its international suppliers to
pioneering indian entrepreneurs, who have now become an integral part of the
cold chain.
The term cold chain describes the network for the procurement, warehousing
transportation and retailing of food products to be used controlled temperature.
Mcdonalds restaurants store products to be used on a daily basis, within a
temperature range of 18c to 4c. About 52% of our products need to be stored
under these conditions before they are used
the mcdonalds supply chain
after they receive thestock from the suppliers, they implement on planning for
material requirement as per the demand from the mcdonalds restaurants sand
send orders to suppliers. A similar copy of the order is also sent for advanced
intimation to be made to the third party logistics company. Air freight ltd. The
dc will considerstock in hand, present consumption, shelf life of the products,
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truck capacity and lead time. Meanwhile, suppliers produce and keep products
ready as per the demand from the dc.
Mcdonalds post harvest facilities include a cold chain consisting of a
vacuumed pre- cooling room to remove field heat, a large cold room and a
refrigerator van for transportation where the temperature and there relative
humidity of this crop is maintained between 1degree celsius and 4degree celsius
and 95 percent, respectively. Vegetables are stocked in the pre-cooling room
within half an hour of harvesting. The pre-cooling room ensures rapid cooling
and cold room to two degrees celsius within 90 minutes. The pack house, pre-
cooling cold room are located at the farms itself, ensuring no delay between
harvesting, pre-cooling, packaging and cold storage. Thus, zero percent
spoilage and freshness are being maintained.
Mcdonalds india sources food products through 45 different suppliers and 10
key local companies. The key local suppliers include: vista processed food
(vpd), trikaya agriculture, dynamix dairy industries, radhakrishna food land,
cremica, shah bettor and sons, global green company and bector foods.
Another striking factor of mcdonalds is that it never has any written contracts
with the suppliers. The relationship is only based on the trust. The mcdonalds
team help the suppliers develop, and hence they assured that mcdonalds will
stick to them through thick and thin.
The wisdom of local sourcing
mcdonald's has always been committed to sourcing its requirements from local
suppliers and farmers. This assurance is rooted in the philosophy of ourcompany's founder, ray kroc. He firmly believed in mutual benefits arising from
a partnership between mcdonald's and the local businesses, thus ensuring that
mcdonald's commitment to growth was mirrored by that of its partners.
In keeping with this belief, we have carefully identified local indian businesses
that take pride in satisfying customers by presenting them with the highest
quality products. Adherence to indian government regulations on food, health
and hygiene were a top priority.
Mcdonald's india today purchases more than 96% of its products and suppliesfrom indian suppliers. Even our restaurants are constructed using local
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architects, contractors, labour and maximum local content in materials.
The relationship between mcdonalds and its indian suppliers is mutually
beneficial. As mcdonalds expands in india, the supplier gets the opportunity to
expand his business, have access to the latest in food technology, and get
exposure to advanced agricultural practices and the ability to grow or to
export.
Vital links in our cold chain
all suppliers adhere to indian government regulations on food, health and
hygiene while continuously maintaining mcdonald's recognised standards. As
the ingredients move from farms to processing plants to the restaurant,
mcdonald's quality inspection programme (qip) carries out quality checks at
over 20 different points in the cold chain system. Setting up of the cold chain
has also enabled us to cut down on operational wastage
hazardanalysis critical control point (haccp) is a systematic approach to food
safety that emphasizes prevention of illness or presence of microbiological data
within our suppliers facilities and our restaurants rather than its detection
through inspection. Based on haccp guidelines, control points and critical
control points for all mcdonald's major food processing plants and restaurants
in india have been identified. The haccp verification is done at least twice in a
year and certified.
Mechanism of each supplier
amrit food - supplier of long life uht milk and milk products for frozen desserts
amrit food, an iso 9000 company, which manufactures widely popular brands -
gagan milk and nandan ghee at its factory at ghaziabad, uttar pradesh has:
state-of-the-art fully automatic machinery requiring no human contact with
product, for total hygiene.
installed capacity of 6000 litres / hour for producing homogenized uht (ultra
high temperature) processed milk and milk products.
strict quality control supported by a fully equipped quality control
laboratory.
Radhakrishna foodland - distribution centre
an integral part of the radhakrishna group, foodland specializes in handling
large volumes, providing the entire range of services including procurement,
quality inspection, storage, inventory management, deliveries, data collection,
recording and reporting. Salient strengths are:
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a one-stop shop for all distribution management services.
dry and cold storage facility to store and transport perishable products at
temperatures up to - 22 degrees celsius.
effective process control for minimum distribution cost.
Trikaya agriculture- supplier of iceberg lettuce
which is an intrinsic part of the cold chain and supplies fresh lettuce to
mcdonalds at the rate of 300 metric tonne per annum. The farm has the total
capacity to produce 1000 metric tonne, per annum.
According to trikaya agriculture pvt ltd farm manager mr. M e gouda;
initially, lettuce could only be grown during the winters. With mcdonald
partnership, trikaya is now able to grow the crop all round the year. Their
farm infrastructure features:
a specialized nursery with a term of agricultural experts.
drip and sprinkler irrigation in raised farm beds with fertilizers mixing
plant.
pre-cooling room and a large cold room for post harvest handling.
refrigerated truck for transportation.
India, now supplies lettuce to five star hotels, flight kitchens, clubs and offshore
catering companies. And it will soon be exporting to international markets,especially to mcdonald asia pacific and middle east operations.
Dynamix diary- supplier of cheese
in some cases, the indian suppliers had the technology but no market for the
products they produced. For example, dynamix diary through its relationship
with mcdonalds was introduced to a large consumer to supply milk case in and
other milk derivatives. The two companies entered into a business relationship
resulting in an initial export order of approximately us$ 12 million per yearwith the potential to increase.
After the food products are processes at their respective companies, they are
received and stocked at the mcdonalds distribution partner- the rs.80 crore
radhakrishna food land ltd to ensure that all mcdonalds restaurants are
supplied without interruption.
Dynamix has brought immense benefits to farmers in baramati, maharashtra by
setting up a network of milk collection centers equipped with bulk coolers. Easyaccessibility has enabled farmers augment their income by finding a new
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market for surplus milk.
The factory has:
fully automatic international standard processing facility.
capability to convert milk into cheese, butter/ghee, skimmed milk powder,
lactose, casein & whey protein and humanized baby food.
stringent quality control measures and continuous research & development.
The company however failed with potato farming, despite spending $10 million
in uttar pradesh. But it claims that by 2004, mcdonalds will source potato from
india for french fries. with all 80 restaurants in place, we expect our
consumption of french fries to be 10000 metric tones and then it makes
economics sense to grow processed grade potatoes in india, says jatia.
However. The newly introduced potato wedges are being made from potatoes.
Long wrong bad other no
queues order music problems problems
problem faced in the visit to mcdonalds
some reaction of the customers to continuous surveys are given below:
vista processed foods pvt. Ltd. - supplier of chicken and vegetable
range of products
based in taloja, maharashtra, with technical and financial support extended by
osi industries inc, us, and mcdonalds corporation inc, us- operates
infrastructure and support services. It supplies vegetable patties, chicken
patties, pies and pizza puff at the rate of 30 metric tonne per month to
mcdonalds india.
Mcdonalds vegetable and chicken patties are processed through the latest food
processing technological plant at vista has installed hi-tech equipment for the
purpose of deboning, blending, coating, passing the patties through the stern
breading machine, frying and freezing.
Vistas pie line has the sophisticated, computerized rondosheeter (the machine
where processing takes place) in operation, which includes hi-tech refrigeration
plants for the manufacturing of frozen foods at temperature as low as minus 35
degrees
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in short
ingredient
supplier
cheese
dynamix dairy industries, pune
dehydrated onions
jain foods, jalgaon
iceberg lettuce
trikaya agriculture, pune mina agritech, new delhi, ooty farms and orchids, ooty
vista foods, taloja kirten foods, taloja
chicken patty
vista foods, taloja
vegetable patty, veg nuggests, pineapple pie, apple pie
kirten foods, taloja
chicken dress
river dale, talegaon
buns `
cremica industries, phillaur
egg less mayonnaise
quaker cremica pvt ltd, phillaur, punjab
sesame seeds
ghaziabad
fish fillet patties
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amalgam foods ltd, kochi
vegetable for patties
finns frozen foods, nasik jain foods, jalgaon
mutton and mutton patties
al-kabeer, hyderabad
people
we value you, your growth and your contributions.
Mcdonalds people promise
opportunity: work at mcdonalds means opportunity. Many of their corporate
employees started as members of a restaurant crew. They include president and
ceo charlie bell; claire babrowski, corporate senior executive vice president
and chief restaurants operation officers, and mats lederhausen, managing
director, mcdonalds ventures. Vice chairman jim skinner started as a
restaurant manager trainee. Their commitment to opportunity includes support
for their employees education.
Mcdonalds corporation, usa, had undertaken effort to promote itself as an
equal opportunity employer, ensuring that employees and job applicants are
selected, trained, promoted and treated on the basis of their relevant skills,
talents and performance and without reference to race, colour, nationality,
ethnic origin, gender, sexual orientation, marital status, age, or disability.
They have put in place a diversity policy, which seeks to:
promote and sustain a working environment
regards all of its employees as member of a team where everyones opinion is
valued and everyone is regarded as equal in status and must always be treated
with respect
the person responsible for this policy is the human resources and training
director, but it is the responsibility of all employees, particularly managers and
area management, to challenge questionable behavior and practices
the human resources department monitors the effectiveness of the policy at
regular intervals and takes corrective action as necessary to ensure that it is
being complied with
employees who feel that they have been unfairly treated in any way regarding
this policy are encouraged to use the remedies outlined in the companys
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handbooks.
Mcdonalds india was challenge to replicate the same policy in india. It sought
to provide quality employment and long-term careers to the indian people. The
average mcdonalds restaurants employees more than 100 people in 25 different
positions- from cashier to restaurant manager. There are close to 2000
employees currently in mumbai and delhi.
manpower planning: the scheduling manager is in charge of the manpower
planning in the outlet. They have full timers who work for 9 hours and part
timers who work for 3-4 hours. If they expect more customers (during holidays
etc) then more part timers are recruited.
recruitment: done by reference of the employees in the outlet or other outlets.
organization and salary structure:
training and development: mcdonalds world class training inputs have been
implanted in india. Training is a continues process at the mcdonalds. It is the
responsibility of the training squad to train the other employees. The training
squad maintains logs of the employees, which clearly states that which
employees are to be trained, and on what station.
the 3/30 plan: according to this plan, the training squad has to train 3 people
on three different stations in a month. One employee is trained on one station,
say the vegetarian station for 10 days, and then for the non-vegetarian station
for the next 10 days and so on. This is done till the employees become proficient
on the station and its capable of handling the station on his own.
Performance appraisal:
every employee joins in as a trainee crew where he is given the green badge.
After a period of 3 months, the employees are checked for the health safety,
cleanliness and sanitation after which he is given the yellow badge. After
receiving the yellow badge, there are 5 station that the employees has to be
proficient in:
1. Backroom cleaning: this includes mopping the floors. Clearing the tables,
maintenance of the machines etc.
2. Fried products: this involves frying of the french fries, pizza puff etc. To the
right degree.
3. Buns, dress and grill (bdg): this includes grilling the buns and dressing them
properly. There is a time limit given to perform every function and the
employees have to perform it efficiently, with minimum wastages.
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4. Counter: the last station is of the counter handling. The employee should be
able to converse with the customers courteously and take proper orders.
5. Personality: the last criteria are the overall personality of the employee.
Mcdonalds being in the service industry, having smart and courteous
employees is of utmost importance to them.
the productivity records have to show 90+ points. The productivity is checked
in various ways. For example- mcdonalds has a policy of serving each customer
within one minute on an average. The productivity at the counter is checked by
the time taken by an employee tocomplete the order. For example, if rajesh (a
serving-counter in charge) has taken shift, then the shift running manager will
speak to him at the end of the shift, and ask him the reason and accordingly ask
him to try and improve. If this trend continues, rajesh is trained further.
after the productivity record shows 90+ points, the employees have to appear
for a documented written test where they must get more than 90 marks.
having got a 90+ average of the two, the employees is promoted to the next
hierarchy level.
Shifts:
mcdonalds have different shifts for managers, full time employees and part time
employees. Their main shifts consist of:
open shifts: 7:00 am to 4.00 pm
mid shifts: 12:00 am to 9.00 pm
close shifts: 3.00am to 12.00 pm
mcdonalds have a special night shift where the managers have to account for
the days transactions, inventory, wastages etc. The night shifts for the managers
is from 11.00pm to 8.00 am.
they also have night shifts for the employees where the scrubbing of the entire
outlet takes place. Also, each and every machine is opened and cleaned. The
night shift for the employees is from 7:00 pm to 4:00 am.
both the night shifts i.e. For the managers and the employees are done on
rotation basis. Female employees are generally not allowed to do the night
shifts.
Holiday and breaks:
the crew members are allowed to take 4 holidays in a month and the
managers can take 6 holidays in a month. if the employee is working for 7 hour shift, he gets a break for 1 hour after 4
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hours and if an employee is working for less than 7 hours, then he gets a break
for hour.
Employee grievances:
mcdonalds call it as the rap sessions. Once in a month, the employees can vent
their problems to the area sales manager is not included in the rap sessions.
High employee turnover
mcdonalds in india faces a huge problem of high employee turnover recruiting
and training employees is an ongoing process, which never stops at any of the
outlets. On an interview with one of the ex-employees, it was found that the
main reasons for the high employee turnover are:
the profile of the employees mainly consists of college students who want to
use their spare time and get some fast money. As a result the turnover is
extremely high during the exam seasons, and similarly, the availability is high
during the holidays seasons.
the employees feel that there is very slow growth in the company. It takes one
3 months just to get the yellow badge, and even after that, the promotions come
very slow.
the salary packages are not very attractive.
Despite protest from mcdonalds corporation, usa, websters have included the
word mcjob in its dictionary. It stands for those jobs that are dreary, repetitive
and with no scope for value addition or growth. Its origin lay in the slang
description of jobs available at mcdonalds. The general impression of the
workers was that after a few years in mcdonalds, it left them incapable of being
absorbe.
Productivity and quality
There is a conceptknown as the haccps standing for hazardanalysis and
critical control points is being followed in mcdonalds. There are some key
areas identified by mcdonalds, a list of which is circulated amongst its supplier
that have to be strictly adhered to by them. For example, the patties for the
burgers have to be stored at a certain level of temperature. Surprise checks are
made by the mcdonald employees to check if all the quality standards are being
followed. Mcdonalds success is the result of its dedication to operating
regimen. More than any other early competitors in fast food, mcdonalds wasdeadly serious as it went about the task of defining its operations, setting basic
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standards of achievement, and monitoring suppliers and operators to determine
whether standards are being met.
Personal commitment to quality, service and cleanliness is legend. Qsc long
ago became the most popular acronym among fast food operators, but the
phrase originated as the use of qsc to distinguish mcdonalds from all other
competitors in an industry that was otherwise rife with duplication. Qsc has
now changed to qsc & v, v stand foe value for money.
Training
mcdonalds invests significant resources in training at every level. Every day,
around the world, restaurants crew members receive the job training and
coaching in skills and procedures essential to their work.
classroom courses developed and led by training experts prepare outstanding
restaurant employees for advancement.
hamburger university provides operations and business management training
for restaurant managers, franchisees, mid level managers, and corporate
executives. Courses are offered at seven campuses around the world, with
materials available in 28 languages and simultaneously translations in up to six
languages.
a new computer-based training system is bringing rigorous. Interactive
leaning experiences to crew members and managers right in the restaurants.
This award-winning e-learning strategy will eventually be in all mcdonalds
markets worldwide and include their entire career-long curriculum.
Ronald mcdonalds
mcdonalds mascot, ronald mcdonalds is a magical and funny clown and every
childs best friend. But ronald is not only fun and games-he is also involved in
some series stuff. One of his responsibilities is to support mcdonalds charity
initiatives- something that he carries out very sincerely- and deliver the brands
message of commitment to the community.
So dont like australia and uk, where mcdonalds has its presence since
decades, many of the marketing strategies have been focused on ronald
mcdonalds and his friends like hamburger, grimace etc. Ronald mcdonalds is
a prominent figure in the childrens life of those countries.
The very first ronald mcdonald was the famed weatherman willard scott. In the
very first ronald mcdonald commercial, with willard scott as ronald (c.1960) he
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actually says something to the effort of i know youre not supposed to talk to
strangers, kids, but its okay to talk to me, because im ronald the hamburger
loving clown! Originally he wore shoes made of buns, a cup on his nose, and a
hat with a hamburger meal on it. Soon this was dropped for the more familiars
clown outfit.
But in india, none of the advertisement currently focuses on ronald mcdonald.
The main reason for this, the company is still trying to build the brand loyalty
and awareness in india. It is still in its developing stage and cannot focus on
many aspects at the same time.
Social marketing
mcdonalds believes in giving back you the community in which they do
business. Besides commercial marketing mcdonalds also undertakes many
social drives to build brand loyalty among the customers. Ronald mcdonald
house charities (rmhc) work to improve the health and well being of children by
awarding grants to organizations and supporting 206 ronald mcdonald houses
worldwide.
Ronald mcdonald house charities
mission and programs
a strong mind. A strong body and a safe, supportive place to grow. These are
things that every child needs- and deserves- to have. Helping to provide these
things is what we do.
By creating, finding and supporting programs that directly improve the health
and well being of children, ronald mcdonald house charities is working to
better the lives of children and their families around the world.
But theres more we need to accomplish. So click on a specific programs link to
find out what we do, how we do it, and more importantly- how you can help.
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Ronald mcdonald house
A home-away from home
the idea behind ronald mcdonald house is simply provide a home away from-
home for families of seriously ill children who are receiving treatment at nearby
hospitals. The ronald mcdonald house provides a comfortable, supportive
alternative for these families. It serves as a temporary residence near the
medical facility where family members can sleep, eat, relax and find support
from other families in similar situations. In return, families are asked to make a
donation ranging from $5 to $20 per day; if that isnt possible, their stay is free.
Ronald mcdonald care mobiles are on the road
since 2000, ronald mcdonald care mobiles have provided cost-effective medical,
dental and educational services to under-served children in their own
communities. Rmhc is planning to grant 50 ronald mcdonald care mobiles
programs by the end of 2005.
Ronald mcdonald family rooms
an extensive of the ronald mcdonald house program, ronald mcdonald family
rooms provides a haven within the hospital for families of children undergoing
treatment.
Rmhc scholarships
rmhc is proud to offer scholarships to those students from disadvantaged
communities who face limited access to educational and career opportunities.
Mcdonalds corporate responsibilitycommunity:
we have an obligation to give back to the community that gives so much to us.
Ray kroc:
mcdonalds and their independent owner/operators contribute to our local
communities in countless ways. Together they support:
education and youth development programs.
local and regional sports programs and events.
neighborhood beautification initiatives.
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health care efforts, cultural events, and other programs for youth and
families.
fund raisers for ronald mcdonalds house charities and other childrens
programs.
Development: mcdonalds restaurants around the world are locally owned and
operated. They provide opportunities for local suppliers, job for local residents,
and revenues for local projects and services. Mcdonalds has helped restore
historic sites and contributes to neighborhood revitalization.
Helped in need: when people are in trouble, mcdonalds is there. Through the
international red cross network; they provide food and other support to disaster
victims and meals for volunteers on the scene.
after earthquakes in india, china, turkey and greece.
when hurricanes hits the us
during an ice storm in canada.
when flooding hit uruguay and venezuela.
More help in this disaster came from mcdonalds germany. Together with its
franchisees, suppliers, and customers, the company contributed 500000 euros
(more than $585000 us$) to the flood relief efforts of the german red cross.Environment:
mcdonalds has a long record of industry leadership in environmental
protection. Working with prominent independent experts, they have initiated an
ongoing series of measures to conserve natural recourses and reduce waste.
Responsible purchasing:
mcdonalds purchases only a small fraction of the worlds goods and services.
However, they know they can work with their suppliers to help improve their
practices and set an example for other companies. They believe they have anobligation to use their influence to make the world a better, safer place.
Animal welfare:
industry leader in animal welfare. Their animal welfare program is global. It is
based on guiding principles that apply to all the countries where they do
business and includes onsite audits of our suppliers facilities. To guide
continues improvement, they have an independent animal welfare advisory
council of distinguished animal science experts.
Antibiotics:
to help preserve the effectiveness of life saving antibiotics, they have issued a
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global policy on antibiotic use in food animals. This initiative calls for
mcdonalds suppliers worldwide to phase out use for animal growth promotion
of antibiotics used in human medicines and provides sustainability guidelines to
reduce other uses.
Quality and safety:
with million of customers a day, they recognized a profound responsibility to
ensure the highest standards of quality and safety in our products and our
restaurant environments. Their food safety system is farm to counter, with
quality and safety standards and regular checks in critical areas along the way.
The toys and other promotional items their restaurants distribute are
extensively reviewed and tested before, during, and after production by
independent experts using state-ofthe art technologies. Equipment for our
play place areas is likewise subject to stringent safety standards.
Supplier social accountability
mcdonalds holds their suppliers to the same high standards of conduct they
observe. Our code of conduct for suppliers establishes their expectation for
workplace conditions in their facilities. Continues improvement is encouraged
by onsite assessments, with enhancement plans required to correct deficiencies,
and by supplier training. Compliance with the code is a condition of doing
business with them.
Mcdonalds events
mcdonald's spotlight
mcdonald's knows that there's a little performer in every child. So in order to
help you beat the stress and tension that everyday homework and tiresome
exams bring, we introduced mcdonald's spotlight.Mcdonald's spotlight is an annual inter-school performing arts competition.
This competition is open to all secondary schools [standards 5th to 10th] in
mumbai, navi mumbai, thane and pune and entry is absolutely free!
Events and their categories in mcdonald's spotlight are:
showtime: (one-act plays in english, hindi & marathi)
step-by-step: (group dancingindian classical, indian folk & fusion moves)
soundtracks: (solo singingin english, hindi & marathi)
scriptless: (impromptu speaking in english, hindi & marathi)
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the popularity of mcdonald's spotlight is evident from the number of schools
participating in it. From 28 schools in 1998, the figures have soared to a
whopping 120 schools in 2003! Participants go back with a certificate of
participation, while winners receive a certificate of merit as well as gift
vouchers from mcdonalds.
There is a first and second prize for each category. Also schools can vie for the
best school and runner-up school rotating trophies. We introduced the rotating
trophies for schools in mumbai and pune in 2001. In 2003, after popular
demand, we held separate grand finals with independent rotating trophies for
pune schools.
World children's week
world childrens day [wcd] is one given day on which mcdonalds restaurants
all over the world come together to raise funds for a charity of their choice. The
day is november 20 and it coincides with the united nations universal
childrens day.
2002 was the first year in which mcdonalds celebrated world childrens day. It
met with tremendous success the world over. More than 100 countries helped
raise more than $12 million for ronald mcdonald house charities and other
childrens causes all over the world.
Did you know?
Wcd is the first-ever global fund raising event by any brand in the world?
On this day, all our restaurants, suppliers and customers come together to raise
funds for children across the world?
World childrens week is an extension of wcd. Since india has already been
celebrating childrens day on november 14, we thought it appropriate to link
the 2 important days together and make the most of it. Hence, instead of world
childrens day, we celebrate world childrens week from november 14 20 in
mcdonalds restaurants in india.
As part of our first wcw celebration, mcdonalds joined hands with the nalanda
foundation to support education for the girl-child for a period of 5 years.
Mcdonalds blue dot initiative for the education of the girl-child
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in november 2002, on occasion of the first world childrens week, mcdonalds in
western india joined hands with the nalanda foundation to support education of
the girl-child. This association is for a period of 3 years and extends up to
november 2005.
Why the girl-child?
Research shows that the even today, in india, the girl-child is always less
favoured than a boy. Due to this, she is deprived of many benefits, which should
rightfully be hers.
The nalanda foundation is working towards improving the situation of the girl-
child by providing her with all the benefits and privileges that she deserves.
Through the money collected in 2002 with our fund-raising activities, we were
able to help build an english learning resource centre for the students of the
anjuman-i-islam girls high school in bandra. The rest of the money has been
used to start other educational programmes that will help in their development.
In 2003, the fund-raising activity had the mcdonalds french fries as the focus.
From november 1420, for every medium and large fries soldwhether a la
carte or as part of value mealsmcdonalds donated re.1/- for the cause.
Additionally, ronald mcdonald house charities also contributed 4 lakh rupees
for the mcdonalds blue dot initiative.
Pulse polio
there is a movement in the world to eradicate polio from the face of the earth.
This cause has received support from various bodies like the rotary foundation,
and local health organizations.
In india, this mission is termed pulse polio and the aim is to make india polio-free by the year 2005. This requires that children up to the age of five years be
given the polio vaccine. This drive is carried on a larger scale all over the
country and takes place three days in a year so as to enable everyone to avail of
the services.
Mcdonald's has participated in the pulse polio awareness rally by sponsoring
food and drinks for the volunteers. In january 2001, mcdonalds went a step
ahead. It joined hands with the rotary club of pune (west) to set up an
inoculation booth outside a mcdonalds restaurant in pune. The same was met
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with success and prompted us to continue the practice ever since. The positive
response to this initiative encouraged us to extend it to mcdonalds restaurants
in mumbai centers for inoculation as well for 2002 and thereafter.
Mcdonalds and nehru science centre inter-school science quiz contest
the nehru science centre, mumbai (nscm) has been conducting the nehru science
centre inter-school quiz contest, an inter-school science quiz contest since 1990.
Mcdonald's joined hands with nscm in 2000 to sponsor this quiz contest.
The quiz contest begins with the qualifying rounds in august and culminates
with the finals on february 28 of the following year, which coincides with
national science day.
2000 to 2003 saw more than 180 schools from mumbai, navi mumbai and thane
participate in the mcdonalds and nehru science centre inter-school science
quiz contest.
Keeping our city clean
cleanliness forms a crucial element in our philosophy of qsc&v [quality,
service, cleanliness and value]. Being a brand that places so much emphasis on
hygiene, it was natural to get involved in activities to help maintain clean and
healthy surroundings in cities where we operate. Here are a few instances.
The bmc zero-garbage day: we gave the brihanmumbai municipal corporation
(the bmc) a helping hand in achieving its objective of a zero-garbage day on the
august 15, 1997 to commemorate 50 years of indias independence.
Students from 4 schools around bandra, mumbai took to the streets, for 2-3
hours, with brooms and dustpans to spruce up the stretch of road from the
linking road junction to the khar telephone exchange.
The entire exercise was a success and was lauded by the bmc at a small
gathering held at the linking road restaurant after the