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… it all began in 1955, with a salesman named raymond albert kroc and a milk
shake maker named multimate.
In short
1955- ray kroc opens first restaurant in des plaines, illinois and the
mcdonald’s corporation is created.
1957- quality, service, cleanliness and value (qsc&v) becomes the
company motto.
1959- the 100 mcdonald’s 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- mcdonald’s corporation goes public.
1967- the first restaurants outside of the usa opens in canada and puerto
rico.
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 mcdonald’s house opens in philadephia. The
happy meal is launched.
1993- the first mcdonald’s at sea opens abroad the silja europe, the worlds
largest 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 total
to over 15,000 in 79 countries on 6 continents.
1996 - mcdonald’s 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 delhi
2000- the first highway restaurant at mathura
2001 - the first thematic restaurant at connaught place
2002 - the first restaurant in a food court at 3c's, lajpat nagar and the first
restaurant at the delhi metro station at inter state bus terminus
2003 - first cold kiosk – faridabad
2004 - trash segregation method installed at- east delhi mall, kaushambi, up
2004 - mcdonald's delivery service introduced
2003 -04 mcaloo tikki, veg burger and pizza mcpuff are now being exported to
middle east countries.
2005 - 50th store opening – faridabad
2006- home delivery is mechanised
2007-mc donald store is introduced in Bhopal
Offering:
a brand is an offering from known source. Mcdonald’s carries many
associations in the minds of people. Hamburger, fun, children, fast food, golden
arches. These associations make up the brand image.
Mcdonald’s on six levels of meaning.
Attribute
a clean fast food brand which tastes the same any where you eat in the world.
Benefits
you don’t have to stay hungry for a long time. Mcdonald’s ready to eat
available.
Values
the world leader in fast food restaurants.
Culture
the brand represents culture of social gathering for families and groups.
Personality
the world leader, a giant m.
User
all kinds of consumers buy mcdonald’s products irrespective of age, sex all over
the world. One can see all types of personalities in the mcdonald’s restaurant.
Hamburger university
hamburger university is mcdonald’s worldwide management training center
located in oak brook, illinois. Designed exclusively to instruct personnel
employed by mcdonald’s corporation or employed by mcdonald’s independent
franchisees in the various aspects of the business. All training programs begin
with one essential ingredient: the basics of mcdonald’s operations.
Founded in 1961, hamburger university has come a long way since mcdonald’s
opened their first training facility in the basement of a mcdonald’s restaurants
in elk groove village, illinois since that time they have moved hamburger
university twice and watched the size of classes grow from an average size of
about 10 to more than 200 per class.
Today more than 65000 managers in mcdonald’s restaurants have graduated
from hamburger university, now located in a 130000 square foot, state of the
art facility on the mcdonald’s home office campus in oakbrook, illinois, with a
faculty of 30 resident professors.
Because of the mcdonald’s international scope, translators and electronic
equipment enable professors to teach and communicate in 22 languages at one
time. Mcdonald’s also manages ten international training centers, including
hamburger universities in england, japan, germany and australia.
Mcdonald’s marketing strategy worldwide. The first step in developing a
marketing strategy is to understand the customers, enabling reaction to their
changing needs and the dynamics of the market. To this end mcdonald’s
conduct several stages of in-depth customer research and audits of the
mcdonald’s brand. The research involving both quantitative and qualitative
research methods. This research tells them a lot about how mcdonald’s is
perceived and about trends that are taking place in the market. They also
conduct research into the local area of their restaurants, into the general
market environment, and into specific areas of their business, children for
example.
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 and
includes all restaurants, hotels, pubs, and any other outlet where people eat.
2. They also focus on the quick service restaurant sector. This includes all the
obvious competition and also fish and sandwich shops-any outlet where food is
served quickly.
3. The final sector that they focus on is defined as the burger house sector. This
looks at only at restaurants serving hamburgers including burger king, wimpy,
wendy’s and all independent burger bars.
With its india operation showing signs of success, the united state food chain
mcdonald’s corporation has sought its pound of flesh. The global food chain
major has claimed initial franchise fee of $45000 and five percent royalty fee of
the gross sales from its operation in india.
Mcdonald’s india pvt ltd has moved an application to the government seeking
permission for payment and remittance of the initial franchise fee and royalty to
mcdonald’s corporation.
The permission has been sought on two condition: mcdonald’s india would pay
an initial franchise fee of $45000 on each of the mcdonald’s restaurants
already franchised or to be franchised, in the future, in india, and a royalty
equal to five percent of the gross sales from the operations of all its indian
restaurants on a monthly basis to mcdonald’s international.
The company hopes to break even in 2003. They currently serve around 3
million customers a day and hope to grow at the rate 50% to 70% a year.
Mcdonald’s does not offer any beef or pork items in india. Only the freshest
chicken, fish and vegetable products find their way into our indian restaurants.
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 mcdonald’s led to attacks on two outlets in
mumbai and thane. Within hours of the story breaking that mcdonald’s 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
mcdonald’s 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,
mcdonald’s submitted samples of the fries to leading laboratories in pune and
mumbai, such as the council of fairs business practices, as well as delhi’s
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 outlets
and put as inserts in the daily papers in sensitive areas like bombay’s 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
drastically, but now, the outlets are back to their usual footfalls and french fries
remain the most favorite and most selling product of mcdonald’s in india.
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:
a parent with two children might visit. Visits mcdonald’s to give the children a
treat.
The children want to visit mcdonald’s. As it is a fun place to eat.
A business customer visit mcdonald’s 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 mcdonald’s 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.
Mcdonald’s product
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 béchamel 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.
Beverages
Frozen deserts
Meal:
at mcdonald’s they continually review and improve their menu offering to make
sure that not only do they meet their customer’s expectation, but they also
exceed them. As a result, they have introduced a series of ongoing value options
to suite their customer’s different needs.
Value meal:
value meals consist of a burger; fries and a drink are available in 3 sizes.
+++
potato wedges medium fries large fries
+++
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)
+
add 2 regular cokes
home delivery
11:00 am to 11:00 pm
Mcdonald’s india is one of the few countries that provide a home delivery
service. In western india, this service is currently available at select localities.
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 food
franchises across the country. The building and its 60-foot high neon sign with
“speedee the chef” are eligible for 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
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 mcdonald’s”
the above break commercial was one of the initial commercial themes adopted
by mcdonald’s united state which became the best known commercial song on
television and, in fact, the most identifiable advertising themes of all time.
Needham was one of the first advertising agencies of mcdonald’s which made
many revolutionary advertisements for the company. Needhams advertising
formula became know in mcdonald’s as “food, folks, and fun” and it remains
the backbone of all the chain’s advertising campaigns.
Mcdonald’s is now, one of the world’s mightiest consumer marketers. Its brand
valuation is $25 billion, making the ninth most valuable brand in the world.
Ddb needham and leo burnett are the advertising agencies of mcdonald’s 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 mcdonald’s india.
The mudra team meets up with mcdonald’s marketing team on a regular basis
and they have a debate and discussion on the new strategies to be adopted.
Mcdonald’s uses various medias like television, hoardings and bus shelters.
They are almost out of print ads. Mcdonald’s also sponsor many television
programmers like kaun banega crorepati, children shows etc.
Even the paper mats on the trays at the mcdonald’s are designed as per the
ongoing marketing strategy of mcdonald’s. 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 mcdonald’s they found that the
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 mcdonald’s also
to give back one rupee change so that the service can be quick.
Sales promotion, marketing, and merchandising
enhance the mcdonald’s 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 mcdonald’s to create greater brand awareness among children,
and the “mc” prefix to reinforce the connection of menu items and
mcdonald’s”.
Marketing strategy of mcdonald’s in india
The initial marketing strategy was focused on the brand name in india.
Mcdonald’s wanted to bring an awareness of its presence, of the arrival of
mcdonald’s 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 mcdonald’s in india was of a child getting tensed
in a fancy dress competition and forgetting his lines. His father then takes him
to mcdonald’s 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 mcdonald’s 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 “don’t move!” He is no
longer told that if he runs around he will bang into someone and spill things
over. He doesn’t 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 mcdonald’s 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 mcdonald’s. When i took her to wimpy’s the other day she refused to
enter the place, saying it was not mcdonald’s.”
the recent ad campaign is targeting the indian father, as he is still looked upon
as a decision maker. The new positioning: mcdonald’s is a special place where
caring dads take their families to give them a great time. So it’s 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
you smile” says amit jatia.
Miscellaneous advertisements
there were many advertisements made by mcdonald’s 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
donald’s 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 donald’s outlet? This advertisement if of the most liked
and remembered advertisements of mc donald’s.
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
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
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.
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 mcdonald’s in the us and its international partners. The
standards also strictly adhere to indian government regulations on food, health
and hygiene.
Currently, mcdonald’s distribution centers (dcs) are in touch with all the
suppliers through electronics interconnectivity (e-mail). The supply chain
converts the 15- day’s 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.
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 mcdonald’s 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.
Mcdonald’s 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
Another striking factor of mcdonald’s is that it never has any written contracts
with the suppliers. The relationship is only based on the trust. The mcdonald’s
team help the suppliers develop, and hence they assured that mcdonald’s 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 our
company'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 supplies
from indian suppliers. Even our restaurants are constructed using local
architects, contractors, labour and maximum local content in materials.
The relationship between mcdonald’s and its indian suppliers is mutually
beneficial. As mcdonald’s 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
hazard analysis critical control point (haccp) is a systematic approach to food
safety that emphasizes prevention of illness or presence of microbiological data
within our supplier’s 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:
Mcdonald’s 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.
Vista’s 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
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
chicken dress
river dale, talegaon
buns `
cremica industries, phillaur
sesame seeds
ghaziabad
people
we value you, your growth and your contributions.
Mcdonald’s people promise
opportunity: work at mcdonald’s 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, mcdonald’s ventures. Vice chairman jim skinner started as a
restaurant manager trainee. Their commitment to opportunity includes support
for their employee’s education.
Mcdonald’s 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 everyone’s 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 company’s
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: mcdonald’s 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.
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.
Mcdonald’s 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 to complete 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
mcdonald’s 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
hours and if an employee is working for less than 7 hours, then he gets a break
for ½ hour.
Employee grievances:
mcdonald’s 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
mcdonald’s 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 holiday’s 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 mcdonald’s corporation, usa, webster’s 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 concept known as the haccp’s standing for ‘hazard analysis 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. Mcdonald’s success is the result of its dedication to operating
regimen. More than any other early competitors in fast food, mcdonalds was
deadly serious as it went about the task of defining its operations, setting basic
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
mcdonald’s 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 mcdonald’s
markets worldwide and include their entire career-long curriculum.
Ronald mcdonald’s
mcdonald’s mascot, ronald mcdonald’s 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 mcdonald’s charity
initiatives- something that he carries out very sincerely- and deliver the brands
message of commitment to the community.
So don’t like australia and uk, where mcdonald’s has its presence since
decades, many of the marketing strategies have been focused on ronald
mcdonald’s and his friends like hamburger, grimace etc. Ronald mcdonald’s is
a prominent figure in the children’s 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
actually says something to the effort of “i know you’re not supposed to talk to
strangers, kids, but its okay to talk to me, because i’m 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.
Social marketing
mcdonald’s believes in giving back you the community in which they do
business. Besides commercial marketing mcdonald’s 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.
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.
Rmhc scholarships
rmhc is proud to offer scholarships to those students from disadvantaged
communities who face limited access to educational and career opportunities.
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 dancing – indian classical, indian folk & fusion moves)
soundtracks: (solo singing – in english, hindi & marathi)
scriptless: (impromptu speaking in english, hindi & marathi)
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 mcdonald’s.
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.
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, mcdonald’s went a step
ahead. It joined hands with the rotary club of pune (west) to set up an
inoculation booth outside a mcdonald’s restaurant in pune. The same was met
with success and prompted us to continue the practice ever since. The positive
response to this initiative encouraged us to extend it to mcdonald’s restaurants
in mumbai centers for inoculation as well for 2002 and thereafter.
Never say ‘no’ to a customer is the policy of mc donald’s clearly visible from
the above true incident. In the words of mr. Amit jatia, “we are extremely
customer focused. For us customer is the god and there is no short cut to that.”
At mcdonald’s each and every outlet has a customer care representative (crr)
whose only job is to look after the customer complaints. Any customer
problems, be it as small as dropping the coke on the way or as the french fries
issues has to be handled by the crr. Besides the crr, you also have many host
and hostesses who keep taking rounds, making sure that customers are
comfortable.
Mcdonald’s haters
every brightly lit street has a dark alley. We’ve seen the smiles and glory of
mcdonalds, but there are also some people who absolutely disagree with the
existing image of the conglomerate.
The following letter was posted on the internet by a woman who seems to have
lost complete faith in the products or services provided at these family
restaurants.
I hate mcdonald’s
why?
The substandard food
ever since i started eating low-fat/high carbo foods 3 years ago, i lost interest in
mcdonald’s because the majority of their foods are loaded with fat and provide
very little value. It is the lowest standard of food one can get in america, and
how some of it-especially the dead cow flesh-gets usda approval is beyond my
comprehension. Hell, most of their food isn’t even suitable for animal
consumption, and i should know… my dog won’t even eat it!
One aside here: i call it cow flesh, but if those burgers really are made from
cows, then they must be some badly diseased cows. Have you ever broken open
of their burgers and taken a good look inside? It’s green in there. No kidding...
It’s a sickly greenish- grey color inside their burgers. No wonder my dog won’t
eat them.
You don’t have to take my words for it… just check out the nutritional info that
mcdonalds provides. However, don’t assume that they’re being entirely honest
about their claims… the page lists a small order of fries as having 10 grams of
fat, yet the nutritional info listed at my local mcdonalds shows a small order of
fries as having 14 grams of fat ( and unfortunately more accurate mcdonalds
nutritional info has mysteriously disappeared).
And for all you folks who order the grilled chicken sandwich because it’s
supposedly a “healthier” alternative to burgers… well, here’s some info to
choke on:
grilled chicken sandwich calories: 440, calories form fat: 180, total fat: 20
grams, saturated fat: 3 grams, cholesterol: 60mg, sodium: 1040mg,
carbohydrate: 38, protein: 27 grams
number like that ought to leave a very bad taste in your mouth…
Of course, the practical reality is that placing the order it could take a little bit
more than the said two minutes. Mcdonald’s is projecting an income of 15 to 20
percent from drive- through business on expressways in the immediately future.
This is expected to grow to 40 per cent in the next five years. The company had
a tied up with public sector oil company bharat petroleum to set up restaurants
at petrol pumps across northern india.
Mcdonald’s will have to face competition from the more affordable dhabas, the
roadside eateries that dot highways all over the country. The company’s
confidence stems from a model already in place in north india.
Mcdonald’s has a 170- seater restaurant at noida near delhi. “the restaurant at
noida attracts a lot of drive through business. Around 20 percent of sales at this
outlet are from drive through clientele like tourist buses and passenger traffic,
that is, the business traveller,” said vikram bakshi, managing director,
mcdonald’s restaurant, new delhi.
1. Do you know that mcdonald’s is the largest fast food chain in the world?
□ yes
□ no
2. When you hear the word burger does, mcdonald’s has come in your
mind?
□ yes
□ no
7. With the introduction of new happy meal price menu has your number of visits increased?
□ yes
□ no
12. Are you aware that mcdonald’s undertake social activities for the growth of children and other needful
people?
□ yes
□ no
13. According to you, how is the relation between the price and the service of mcdonald’s?
□ cheap
□ reasonable
□ expensive
14. What is the distance of the nearest mcdonald’s from your place?
□ near
□ far
□ very far
15. What do you suggest what could make mcdonald’s better?
__________________________________________________ _________
__________________________________________________ _________
Annexure
questionnaire
name: _______________________
age: _______________________
occupation: _______________________
contact number: _______________________
email id: _______________________
1. Do you know that mcdonald’s is the largest fast food chain in the world?
□ yes
□ no
2. When you hear the word burger does, mcdonald’s has come in your
mind?
□ yes
□ no
7. With the introduction of new happy meal price menu has your number of visits increased?
□ yes
□ no
12. Are you aware that mcdonald’s undertake social activities for the growth of children and other needful
people?
□ yes
□ no
13. According to you, how is the relation between the price and the service of mcdonald’s?
□ cheap
□ reasonable
□ expensive
14. What is the distance of the nearest mcdonald’s from your place?
□ near
□ far
□ very far
15. What do you suggest what could make mcdonald’s better?
__________________________________________________ _________
__________________________________________________ _________
Annexure
questionnaire
name: _______________________
age: _______________________
occupation: _______________________
contact number: _______________________
email id: _______________________
1. Do you know that mcdonald’s is the largest fast food chain in the world?
□ yes
□ no
2. When you hear the word burger does, mcdonald’s has come in your
mind?
□ yes
□ no
7. With the introduction of new happy meal price menu has your number of visits increased?
□ yes
□ no
12. Are you aware that mcdonald’s undertake social activities for the growth of children and other needful
people?
□ yes
□ no
13. According to you, how is the relation between the price and the service of mcdonald’s?
□ cheap
□ reasonable
□ expensive
14. What is the distance of the nearest mcdonald’s from your place?
□ near
□ far
□ very far
15. What do you suggest what could make mcdonald’s better?
__________________________________________________ _________
__________________________________________________ _________
Annexure
questionnaire
name: _______________________
age: _______________________
occupation: _______________________
contact number: _______________________
email id: _______________________
1. Do you know that mcdonald’s is the largest fast food chain in the world?
□ yes
□ no
2. When you hear the word burger does, mcdonald’s has come in your
mind?
□ yes
□ no
7. With the introduction of new happy meal price menu has your number of visits increased?
□ yes
□ no
12. Are you aware that mcdonald’s undertake social activities for the growth of children and other needful
people?
□ yes
□ no
13. According to you, how is the relation between the price and the service of mcdonald’s?
□ cheap
□ reasonable
□ expensive
14. What is the distance of the nearest mcdonald’s from your place?
□ near
□ far
□ very far
15. What do you suggest what could make mcdonald’s better?
__________________________________________________ _________
__________________________________________________ _________
Annexure
questionnaire
name: _______________________
age: _______________________
occupation: _______________________
contact number: _______________________
email id: _______________________
1. Do you know that mcdonald’s is the largest fast food chain in the world?
□ yes
□ no
2. When you hear the word burger does, mcdonald’s has come in your
mind?
□ yes
□ no
7. With the introduction of new happy meal price menu has your number of visits increased?
□ yes
□ no
12. Are you aware that mcdonald’s undertake social activities for the growth of children and other needful
people?
□ yes
□ no
13. According to you, how is the relation between the price and the service of mcdonald’s?
□ cheap
□ reasonable
□ expensive
14. What is the distance of the nearest mcdonald’s from your place?
□ near
□ far
□ very far
15. What do you suggest what could make mcdonald’s better?
__________________________________________________ _________
__________________________________________________ _________
Annexure
questionnaire
name: _______________________
age: _______________________
occupation: _______________________
contact number: _______________________
email id: _______________________
1. Do you know that mcdonald’s is the largest fast food chain in the world?
□ yes
□ no
2. When you hear the word burger does, mcdonald’s has come in your
mind?
□ yes
□ no
7. With the introduction of new happy meal price menu has your number of visits increased?
□ yes
□ no
12. Are you aware that mcdonald’s undertake social activities for the growth of children and other needful
people?
□ yes
□ no
13. According to you, how is the relation between the price and the service of mcdonald’s?
□ cheap
□ reasonable
□ expensive
14. What is the distance of the nearest mcdonald’s from your place?
□ near
□ far
□ very far
15. What do you suggest what could make mcdonald’s better?
__________________________________________________ _________
__________________________________________________ _________
Annexure
questionnaire
name: _______________________
age: _______________________
occupation: _______________________
contact number: _______________________
email id: _______________________
1. Do you know that mcdonald’s is the largest fast food chain in the world?
□ yes
□ no
2. When you hear the word burger does, mcdonald’s has come in your
mind?
□ yes
□ no
7. With the introduction of new happy meal price menu has your number of visits increased?
□ yes
□ no
12. Are you aware that mcdonald’s undertake social activities for the growth of children and other needful
people?
□ yes
□ no
13. According to you, how is the relation between the price and the service of mcdonald’s?
□ cheap
□ reasonable
□ expensive
14. What is the distance of the nearest mcdonald’s from your place?
□ near
□ far
□ very far
15. What do you suggest what could make mcdonald’s better?
__________________________________________________ _________
__________________________________________________ _________
Annexure
questionnaire
name: _______________________
age: _______________________
occupation: _______________________
contact number: _______________________
email id: _______________________
1. Do you know that mcdonald’s is the largest fast food chain in the world?
□ yes
□ no
2. When you hear the word burger does, mcdonald’s has come in your
mind?
□ yes
□ no
3. Have you been to mcdonald’s before?
□ yes
□ no
14. What is the distance of the nearest mcdonald’s from your place?
□ near
□ far
□ very far
15. What do you suggest what could make mcdonald’s better?
__________________________________________________ _________
__________________________________________________ _________
Conclusion
“Mcdonald’s mein hain kuch baat!”
If the golden arches are more representative of america than george bush is,
mcdonalds isn’t exactly an alien entity in india too. After spending rs. 25
crores on its indian operations, the global food-chain is out to make its
presence felt in every part of the country and it has succeeded in serving
up an exciting new comboto indian customers.
Take two pieces of bun, put in a patty and garnish it with two equation.
Price leads to volumes. Children bring in the family. That explains why
mcdonalds is the only food chain in india that can afford to stand tall.
Mcdonalds is in the throes of a major expansion. The rs.30 crore plan will
be funded through internal accruals and loans. It is adding 10 outlets to the
25 existing ones-13 in delhi and 12 in mumbai. Early next year, mcdonalds
will foray into the southern metros, starting with franchisee operations.
Mcdonalds in corporate india is also associated with the excellent in supply
chain management.
Bibliology
WWW.MCDONALDS.COM
WWW.GOOGLE.COM
WWW.YAHOO.COM
WWW.REDDIF.COM
Www.Mcdonaldsindia.Com
ENCYCLOPEDIA
WIKIPEDIA
USA FOOD MAGAZINE
PROJECT REPORT
ON
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