4Ps of Marketing McDonald: Marketing Mix of McDonald

IMT Nagpur
PGDM 2009-2011
4Ps of Marketing:
McDonald’s India Pvt. Ltd.
Marketing Management 2
Date of Submission: 27th August 2009
Submitted By:
Section - D
Rani Treasa Joseph (2009209)

Rijo Jacob Abraham (2009)
Siddharth Seran (2009237)
Smritti Bansal (2009243)
CONTENTS
1 Group McD- 4Ps/MM2/2009-11

1.
INTRODUCTION…………………………………………………………………………………………
…………………………………………3
2. STATEMENT OF
STUDY………………………………………………………………………………………………………
…………….…3
3.
OBJECTIVES………………………………………………………………………………………………
…………………………………………3
4. RESEARCH
METHODOLOGY…………………………………………………………………………………………
……………………..3
5. COMPANY
ANALYSIS…………………………………………………………………………………………………
…………………...……5
6. SWOT
ANALYSIS…………………………………………………………………………………………………
……………………………..20
7.
PROPOSALS………………………………………………………………………………………………
………………………………………..21
ANNEXURE 1
ANNEXURE 2
ANNEXURE 3
ANNEXURE 4
REFERENCE

1. INTRODUCTION
Ray Croc opened his first McDonald’s restaurant in Des Plaines, Illinois, on
April 15, 1955. Since then the journey has been swift and smooth. Now there
are over 30,000 restaurants across the world spread over 119 countries. The
first McDonald’s in India was opened in Bandra, in 1997. Now there are over
a 100 restaurants spread across the country. Before coming to India a team
from McDonald’s corp. US, was sent to India six years prior to the opening of
its first outlet. Extensive research, which led to the setting up of
infrastructure and logistics, paved the way for McDonald’s to open its first
ever outlet in India. With McDonald’s setting benchmarks in the fast food
industry, it is pertinent that they make a sustained effort in delivering their
core values, namely, Quality, Service, Cleanliness and Value.
2. STATEMENT OF STUDY
To study and analyze the 4Ps of marketing for the company ‘McDonald’s
India Pvt Ltd’.
3. OBJECTIVES
1. Study the Product, Price, Product and Place strategies of McDonald’s

India Pvt. Ltd.
2. Propose Changes and suggestions on the 4P strategies.
4. RESEARCH METHODOLOGY
1. Data collection

• Primary data collection –
1. Expert advice- interaction with a Company expert/ Manager.
2. Market trend analysis – analysis of growing trends in the food
industry
3. Customer Survey
4. Focus Group Survey
• Secondary data collection
1. Historical market surveys
2. Journals, internet, magazines etc.
3. Monitoring industry news and developments
4. Company Portals
2. Data Analysis
• Customer survey analyzed using statistical tools
3. Sample Selection and details
Sample selection technique employed for the selection of samples of study
for the Primary data collection and details are as follows:
1. Expert advice
Sample Size: 1
Details: Store manager, Location: McDonald’s, Kemfort,
Bangalore
2. Market trend analysis
Market trend extracted from:
India Shopping Trends 2008 – a report by The Knowledge
Company, the Market Intelligence and Publications Division of
Mindscape, Marketing Management: Rajan Saxena.
3. Customer Survey
Sample Size: 242
Sample selection technique:
–Age group : 20-35

– Geographic location wise sample size:
Bangalore – 60
New Delhi – 60
Hyderabad – 60
Mumbai – 62
1. Focus Group Survey:
– Family 1, Location: Chennai, No. of family members: 4,
Family Head: 35 yrs, Average family age: 24 (Young
family), SEC: B1

– Family 2: Location: Cochin, No. of family members: 3,
Family Head: 33 yrs, Average Family age: 23.6 (Young
family), SEC: B1
– Family 3: Location: Calcutta, No. of family members: 3,
Family Head: 40 yrs , Average family age: 28 (Young
family), SEC: B1
1. COMPANY ANALYSIS
Strategic Options: The 4Ps: Product, Place, Price and Promotions
1. Product Strategies
1.1. Product Characteristics and Differentiation:
McDonalds’ menu has both vegetarian and non-vegetarian food in the offing.
The menu offers a wide range in both the sections, without diverting from its
baseline, Burgers.
Non-Vegetarian: When McDonald’s first came to India, they had initially

offered Big Mac with mutton patties, but soon scrapped it off the menu and
had the Mcgrill patties in the same burger naming it Maharaja Mac. It was a
big hit when it was introduced and it still moves very well in the premium
outlets. Other non vegetarian products include Chicken Mcgrill, McChicken,
Fillet-o-Fish, Chicken Salsa wrap and Chicken McCurry pan. McCurry pan is a
product that was introduced keeping in mind the Indian taste buds. This is a
product that is sold only in India. Chicken Mcgrill, currently priced at Rs. 28,
is a small burger with a grilled chicken patty. McChicken is a larger and more
filling burger, where the frozen chicken patties are deep fried and
sandwiched in a large bun. Fillet-o-fish is a fish burger, which again is a
slightly larger burger served with mayonnaise. The non vegetarian version of
McCurry pan has a chicken stuffing in a puff pastry and it is baked in the
oven and served. Chicken salsa wrap is a Mexican wrap with chicken stuffing
and salsa sauce rolled in a flat bread, grilled and served.
Vegetarian: Owing to its large Hindu population, probably India is the only
country where there is an extensive array of vegetarian products to choose
from. Almost all non-vegetarian products have vegetarian products to choose
from. Mcaloo tikki is the vegetarian equivalent of chicken Mcgrill, but is
priced 6 rupees lesser than its non vegetarian counterpart. Mcveggie is the
larger burger that has a deep fried patty in it. The vegetarian section
probably lacks the non vegetarian equivalent of Maharaja Mac, but is aptly
compensated by the availability of other products like pizza puff, which is
priced at Rs. 20. Other vegetarian products include McCurry pan and paneer
salsa wrap the latter very similar to Chicken salsa wrap with paneer taking
chicken’s place as the main filling.
1.2. Product and brand relationship:
Mc Donald’s is known throughout the world only for its burgers. When it first
came to India it had to undergo a complete brand transformation, as it was
known as a fast food outlet across the world. McDonald’s family restaurant
was a concept that was first introduced in India. And for the first time in its
history McDonald’s did not serve any beef or pork products in a country they
operated. The oil that McDonald’s, uses across the world was flavored with
beef or pork fat. Owing to religious sentiments McDonald’s, imports 100%
pure vegetable oil from Malaysia for all its deep fried products. BIG CURRY
MAC. McDonald's dispensed with its most prominent ingredient in order to
respect, and to please, its Indian customers. Many Indians eat no beef or
pork, or any meat at all. According to Vikram Bakshi, managing director of
McDonald's India North, it was necessary to adapt the company's offerings
while keeping the core brand values consistent across cultures.
"The menu has evolved over the years as a result of constant innovation and
our customers' needs," says Bakshi. "Local creations like McAloo Tikki
Burger, Curry Pans, Wraps Pizza McPuff, and McVeggie are established
departures from what we had in our introductory restaurant offerings.
"Today 70 percent of our menu is ‘Indianized', and the McAloo Tikki burger is
our highest selling product. While the menu may be different in some ways,
the McDonald's experience around the world is consistent, offering quality,
great service, cleanliness, and value."

Since drive-through service is not common in India, scooters and bicycle
delivery services extend the concept of a quick, hot meal on the go in a way
that is quintessentially Indian yet consistent with the global brand. It's still
McDonalds, and Indians love it. Think global. Be local.
1.3. Packaging and Labeling:
Packaging and labeling has always been an integral part of McDonald’s

promotional strategy. The paper linings that come on top of the tray have all
the nutritional facts about all of the products that are served in the outlet.
The new packaging, labeled with Percentage Daily Intake, will advise
consumers about required daily amounts of protein, fats, saturated fats,
carbohydrates, sugar and sodium. Concerns that fast food producers
perpetuate the obesity epidemic have led to a focus on healthy alternatives.
By labeling packaging with Percentage Daily Intake McDonalds claims it
hopes to help consumers understand more about nutrition. This move is in
relation to rising obesity levels across the world.
1.4. Service Strategies:
The Unique Selling Proposition at McDonald’s has always been its one minute
service. At any McDonald’s outlet the one thing that is common across the
world is its service time. It has always managed to maintain its USP across
continents. At McDonald’s the kitchen and the service counter compliment
themselves and help maintain its USP. Initially burgers were made and
stored in a hot transfer bin for a maximum of 15 minutes after which they
are dumped. More than one counter is always open at any outlet which helps
move the queue faster during rush hours. A production caller who stands
behind the transfer bin calls the number of burgers to be made at any point
in time. The Production caller is located in such a way that he has a good
view of the crowd coming in and also has a good view of the kitchen. It’s the
job of the PC to assess the crowd that comes in and it is also his duty to
asses the crowd that can come in order to maintain enough products in the
bin accordingly. Another innovative idea that McDonald’s incorporated in its
Indian outlets, is to take orders from customer when they are in the queue,
waiting. The advantage here is that the customer does not have to wait at
the counter and think what to order, and it also moves the queue faster, to
save waiting time. Special orders which can consume time are sent to the
kitchen well in advance so the order is ready when the customer is at the
counter. After the introduction of “made for you”, the use for transfer bin
was eliminated. Burgers are made only after the order is punched.

McDonald’s still manages to deliver the order within a minute, owing to
cutting down of cooking time.
McDonald’s also offers home delivery to its customers from select outlets.
There is a Rs. 20 charge for this service regardless of the quantity that is
being ordered. An instance where home delivery proved vital was when the
sales of a particular outlet were affected due to the road being closed where
a flyover was being constructed. More than 50% of sales came through home
delivery, in that particular outlet.
1.5. Managing Service Quality:
McDonald’s has always been known for its quality and value for money
everywhere. It becomes extremely important to maintain this brand image of
this kind to be able to consistently pull crowd. McDonald’s staffs undergo
excellent training that meets with McDonald’s rigorous quality standards.
McDonald’s takes all effort not to trade off its USP with one of its core values,
‘quality’. This is consistently achieved by well trained staff and world class
infrastructure, both at the service and the kitchen counters. Continuous
innovation has helped McDonald’s set standards in the fast food industry
across the world. Recently included innovation in the kitchen is the inclusion
of “made for you’ which has replaced the existing kitchen equipment ‘grill
direct’. “Made for you”, eliminates the need for storing burgers in the
transfer bin. The new equipment that is in use right now reduces the bun
toasting time to 17 seconds from 35 seconds. The patties that are deep fried
initially had a storage time of 10mins in the hot bin, now have 20mins. It
implies that the deep fried patties can be stored for a longer time and hence
less time wasted. This means the burger is made only after the order is
punched. With a toasting time of around 17 seconds and a wrapping time of
around 35 seconds, the burger still gets to the customer, fresher than before
within one minute of his placing the order. This system was brought into
practice keeping quality in mind.
1.6. Product Strategy Analysis:
This analysis would cover how McDonald’s product strategies help the
organisation maintain its core values, QSC & V (quality, service, cleanliness
and value for money).
Quality:
• McDonald’s stringent quality measures make sure that any scope for
issues regarding quality does not crop up. For instance, all its raw

materials which include frozen patties, and fries are kept in state of the
art deep freezers which maintain a constant – 10 degree Fahrenheit
24*7, 365 days a year.
• The employees in McDonald’s are made to wear gloves while they are
on their respective stations, and the vegetarian and non vegetarian
section is distinguished by their respective workers wearing green and
red coloured aprons. Also a one hour hand wash policy ensures that
cleanliness. This way a strong signal is sent to the vegetarian section
of the population, giving the impression that quality is considered
second to no other parameter.
Service
• McDonald’s easy to prepare products has helped them maintain their

USP very efficiently. The patties, before being frozen, are par cooked in
order to reduce the time that takes for it to cook in the restaurant. The
fries are generally imported from New Zealand or Canada, which also
comes half cooked. Innovations like these on their product line have
helped McDonald’s to a large extent to serve their customers on time.
Cleanliness
• McDonald’s makes sure that the first thing the customer sees after
entering the restaurant is its clean surroundings. By maintaining
sparkling floors and clean washrooms, the cleanliness culture is
inculcated among all the staff. Every McDonald’s outlet is scrubbed
inside out after the restaurant closes. The machines and grills are
sanitised, the floors scrubbed and the deep freezers cleaned before the
restaurant opens for service.
Value for Money:
• McDonald’s has adopted a pricing strategy that is extremely

competitive in the fast food segment. By offering burgers for Rs. 22,
they attract a majority of the college kids, who fall under the segment
which is non-earning, but has expendable money.
• With an extensive ad campaign focusing on their cheaper and more
economic products, McDonald’s has positioned itself for the more
economic segment.

1. Place Strategies
2.1. The Joint-Venture and Franchisee model
McDonald's in India is a Joint-Venture (JV) partnership run by Indians.

McDonald's International through its wholly owned subsidiary McDonald's
India entered into two JVs, one with Connaught Plaza Restaurants Pvt. Ltd.
managed by Mr. Vikram Bakshi in the Northern & Eastern region and another
with Hard Castle Restaurants Pvt. Ltd. managed by Mr. Amit Jatia in the
Western & Southern Region.
The operations in the North and Eastern regions are directly run by
Connaught Plaza Restaurants Pvt. Ltd. In 2003, Hardcastle Restaurants Pvt
Ltd decided to expand its outlets through a franchisee model. It was first
introduced in Bangalore and later extended to other parts of south India.
In terms of investment in the case of the franchisees, the joint venture

company makes majority of the investments. Investments on the part of the
owner would be those that involve getting the civil work of the premises
complete and the site approved as a restaurant and other first-time licenses
required managing the business operations.
• The JV partnership and the franchisee model ensure that the financial
and operational responsibility is shared and gives McDonalds India the
opportunity to go for aggressive expansion.
• The watchful eye of McDonald’s ensuring that its philosophy of Quality,
Service, Cleanliness and Value (QSC&V) is adhered to, and its
consumers get value for money.
2.2. The supply chain and distribution
The following suppliers make up the integral part of the McDonalds cold
chain. McDonalds working in tandem with them ensures that they provide
the best quality to food to its customers.
Trikaya Agriculture
Trikaya Agriculture is a major supplier of iceberg lettuce to McDonald’s India.

It is also an intrinsic part of the cold chain. Exposure to better agricultural
management practices and sharing of advanced agricultural technology by
McDonald’s had made Trikaya Agriculture extremely conscious of delivering
its products with utmost care and quality.

Initially lettuce could only be grown during the winter months but with
McDonald’s expertise in the area of agriculture, Trikaya Farms in Talegaon,
Maharashtra, are now able to grow this crop all the year round.
McDonald’s had provided assistance in the selection of high quality seeds,

exposed the farms to advanced drip-irrigation technology, and helped
develop a refrigerated transportation system allowing a small agri-business
in Maharashtra to provide fresh, high-quality lettuce to McDonald’s urban
restaurant locations thousands of kilometers away.
Post harvest facilities at Trikaya include a cold chain consisting of a pre-

cooling room to remove field heat, a large cold room and a refrigerated van
for transportation where the temperature and the relative humidity of the
crop is maintained between 1º C and 4º C and 95% respectively. Vegetables
are moved into the pre-cooling room within half an hour of harvesting. The
pre-cooling room ensures rapid vacuum cooling to 2º C within 90 minutes.
The pack house, pre-cooling and cold room are located at the farms itself,
ensuring no delay between harvesting, pre-cooling, packaging and cold
storage.
McDonald’s expertise in packaging, handling and long-distance

transportation had helped Trikaya to do trial shipments to the Gulf
successfully. In addition to export, McDonald’s assistance has enabled
Trikaya Agriculture to supply this crop to a number of star-rated hotels,
clubs, flight kitchens and offshore catering companies all over India.
Vista Processed Foods Pvt. Ltd.
Vista Processed Foods Pvt. Ltd., McDonald’s suppliers for the chicken and
vegetable range of products, is another important player in this cold chain.
Technical and financial support extended by OSI Industries Inc., USA and
McDonald’s India Private Limited had enabled Vista to set up world-class
infrastructure and support services.
This included hi-tech refrigeration plants for manufacture of frozen food at

temperatures as low as – 35° C. This was vital to ensure that the frozen food
retained its freshness for a long time and the ‘cold chain’ is maintained. The
frozen product was immediately moved to cold storage rooms.
With continued assistance from its international partners, Vista had installed
hi-tech equipments for both the chicken and vegetable processing lines,
which reflected the latest food processing technology (de-boning, blending,

forming, coating, frying and freezing). For the vegetable range, the latest
vegetable mixers and blenders were in operation.
Vista is able to provide a very wide range of frozen and nutritious chicken
and vegetable product. Ongoing R&D, both locally and in the parent
companies, work toward innovation in taste, nutritional value and
convenience.
Dynamix Dairy
McDonald’s suppliers of cheese, Dynamix Dairy, too, recognizing the need

for quality milk to make quality cheese, had set up a dedicated quality
program for milk procurement. They made significant investments in setting
up bulk coolers at all milk collection centres in the Baramati area, where they
are based.
Efforts had been made to see that the bulk cooling centres were located in a
way that farmers do not have to travel more than an hour from their farms to
reach the collection centre. This has drastically reduced the time from
milking to refrigeration, which is critical, especially since the lack of proper
refrigeration can greatly impact the quality of milk. On receipt, the milk is
immediately stored in the bulk coolers at the collection centres, to prevent
growth of bacteria in the milk and preserve its freshness – thus, maintaining
the ‘cold chain’.
Cremica Industries
Cremica Industries was started in 1980 as small ice-cream unit in Ludhiana.

However after its initial success Cremica added buns and biscuits to its
product line and in 1996 McDonald's selected Cremica to be its supplier for
buns, liquid condiments, batter and breading in collaboration with its
international partners. Cremica Industries worked with another McDonald's
supplier from Europe to develop technology and expertise that allowed the
company to expand it business from baking to providing breading and
batters to McDonald's India and other companies as well.
Amrit Foods
Amrit Foods, a division of Amrit Banaspati, has been associated with

McDonald's India as a supplier of Dairy Mixes, Soft Serve Mix and Milk Shake
Mix for over a decade now.

McDonald's finding the factor of cold room being vital ensured that even
before vegetables from farms entered the refrigerated zones, they were
locked in a pre-cooling room to remove field heat. Vegetables were placed in
the pre-cooling room within half an hour of harvesting where rapid cooling
decreased the field temperature of vegetables to 2ºC within 90 minutes.
Then a large cold room (a refrigerated van) was used for transportation to
the distribution centres. In the van, the temperature and relative humidity of
crop was maintained at 1-4ºC and 95 per cent, respectively and the flavours
and freshness are locked at -35°C. McDonald’s achieved amazing
consistency by devoting more attention than anyone else to field service and
training at store level. Production was concentrated in huge plants devoted
exclusively to McDonald’s.
• The objectives of this supply strategy are to operationalize its globally

practiced QSCV (quality, service, cleanliness, and value) principle, to
enjoy flexibility in pricing and to launch a new product when necessary.
• The relationship that McDonalds fosters with the suppliers ensures
the world class quality of the products that it brings to its
consumers. By empowering their suppliers with the best food
processing and agricultural technology in the world, McDonalds
ensures a steady supply of quality raw materials to its kitchens
around India. The way McDonald’s handles its suppliers ensures that
there are no hick ups in their logistics and supply chain
management system. As a result of these supply efficiencies
McDonald’s can stretch their expansion plans.
• Their strategic relationship with the suppliers also helps McDonalds
bring the products to its consumers at a very effective price. While
all other fast food chains in the country are aggressively going
about to increase the prices because of the increases in prices on
the supply side, McDonalds have a strategy to increase the prices
over a period of 3 years. The first round of price increases already
hit the restaurants 7-8 months back, but the appreciable fact is that
this price increase was just around 5-10%. It’s their strategic
relationship with their suppliers that makes sure that the suppliers
are also willing to take partial burden of the price increases over
these next 3 years.
• The empowerment of its supply partners also ensures that
McDonald’s can launch a new product without many hassles.
McDonald’s started with small suppliers, which were given the
opportunity to grow with McDonald’s India and they in turn display

great loyalty. Nowhere is the supplier loyalty more evident than in
development of new, improved products. Some of McDonald’s
classic food items like Filet-o-Fish, French Fries, Chicken Nuggets
etc. are direct results of supplier innovation.
2.3. Distribution
McDonald’s India opened up their first distribution centers in Noida and

Kalamboli (Mumbai) in 1996, followed by Bangalore in 2004 and Kolkata in
2007. They had prevented themselves from going for operations in the
Eastern region because of the lack of distribution centers in the Eastern
region.
McDonald's entered its first distribution partnership agreement with Radha

Krishna Foodland, a part of the Radha Krishna Group engaged in food-related
service businesses. Better facilities and infrastructures were created along
with new systems by them to satisfy McDonald's high demands, which finally
culminated into an agreement with McDonald's India, for Radha Krishna
Foodland to serve as distribution centers for their restaurants in Delhi and
Mumbai. As distribution centers, the company was responsible for
procurement, the quality inspection program, storage, inventory
management, deliveries to the restaurants and data collection, recording
and reporting. Value-added services like shredding of lettuce, re-packing of
promotional items continued since then at the centers playing a vital role in
maintaining the integrity of the products throughout the entire 'cold chain'.
The operations and accounting is totally transparent and is subject to regular
audits.
The iceberg lettuce from Ooty, mutton patties from Hyderabad and sesame
seed buns from Punjab were all delivered to Radhakrishna Foodland Private
Limited (RFPL) distribution centre (cold storage) in its refrigerated vans. RFPL
stored the products in controlled conditions in Mumbai and New Delhi and
supplied them to McDonald's outlets on a daily basis.
By transporting the semi-finished products at a particular temperature, the

cold chain ensures freshness and adequate moisture content of the food. The
specially designed trucks maintain the temperature in the storage chamber
throughout the journey. Drivers are instructed not to switch off the chilling
system to save electricity, even in the event of traffic jam.
Below mentioned is the data about Refrigerated vans for McDonald's

distribution according to the figures available from the year 2001

Type Route Quantity
National inbound Suppliers to Distribution Centre. 20 vehicles
Outbound North Distribution Centre to restaurant. 13 vehicles
Outbound West Distribution Centre to restaurant 11 vehicles
Outbound South Distribution Centre to restaurant 1 Vehicle
• Innovations and use of state-of-the-art technology in the distribution

process is one of the strategies that McDonald’s use to ensure that its
products are delivered to its customers with freshness and high regard
for quality and taste.
2.4. Retailing
The fixed costs for setting up a McDonald’s restaurant run into millions of
dollars, and therefore, for the operations to be profitable, placement must be
in an area that maximizes customer exposure and traffic, thereby generating
large volume of business. McDonalds gives lot of care regarding the setting
up of their restaurants. McDonalds look for the following generators to
support their business: home, shopping, work, entertainment, education and
transit points such as stations or bus depots. They look to have support from
all generators or a combination of at least 4 of these generators to open a
restaurant. Since they take into consideration various aspects such as the
population, the demographics, the accessibility and the traffic in their
research for prospective sites for their restaurants they are successful in
being always “round the corner”.
• This ensures that a McDonalds visit can either be planned or it can
happen by mere chance because of the traffic in such an area. Their
customer focus and the extensive research is what helps the
McDonalds corporation put their place strategy in place regarding the
setup of the restaurants.
In terms of space a minimum of 2,500 – 3,000 square feet carpet area on the
ground floor with a clear height of 11 feet and a frontage of at least 35 to 40
feet is required for all the McDonald’s restaurants. This ensures that
McDonald’s feel and ambience is retained in all the outlets.
The sales figures of the various McDonald’s restaurants are dependent on
the location of the restaurants. Case in consideration is 2 different outlets of
McDonald’s in Bangalore. The sales figures as well as the product which sells

most in these restaurants depend on the demographics. The Kempfort outlet
which is located in an affluent neighborhood with families and offices, sells
McVeggie and McChicken burger the most. While the other restaurant
located at Forum Mall which is frequented by young school and college
students sells McAloo Tikki and Chiken McGrill more.
The approximate sales figures in a typical McDonald’s restaurant are as

given below
Product Units sold per
day
Chicken McGrill 200
McAlloo Tikki 200
McVeggie 200 – 300
McChicken 250 – 300
McMaharaja Burger 60 – 80
– The inventory management system MCDonald’s use gives the exact

inventory in hand after the days sales are over. This way any
pilferage and shortages can be cross checked by manually verifying
it. Inventory happens every day for food items and once in a week
for paper (includes cups, straws etc). There is a month in inventory
for food and paper.
– A typical McDonald’s has its food products and papers delivered
once a week. This again is dependent on the sales volume. A
mandatory delivery is made before the weekends in outlets with
high sales volumes.
– McDonald’s efficient inventory and delivery system ensures that the
restaurants are supplied and stocked at all points of time.
1. Price Strategies
Much of the McDonald’s growth in India can be attributed to its pricing
strategy. The average households spend in India on food and beverages
being about 50% of income, food prices are a sensitive issue. The Indian
middle class, despite the fact that there is much improvement in their
income level, remains very price sensitive. For this reason, McDonald’s has
pursued what Amit Jatia, the company’s managing director in the Western
region, calls “purchasing power pricing” or pricing based on customer’s

ability to pay. The adoption of such a pricing strategy is on the basis of
purchasing power parity (PPP) calculations across countries.
Initially in India, McDonald’s was able to get a larger share of rich and upper-
middleclass population. It was not very effective at luring the middle-class
and lower middle-class segments into their restaurants. But capturing the
middle-class and lower middle-class segments was integral for the success of
McDonald’s, and it is increasingly important when McDonald’s has to enter
into Tier I and Tier II markets. Because of the prevailing image that
McDonald’s was an upscale place, this segment stayed away from
McDonald’s. With this in mind the company post 2001 cut down on prices to
fit the Indian scenario and thus appeal more to the middle-class and lower
middle-class segments and position itself as a value for money family fast
food restaurant. The McDonald’s strategy has been to increase sales volume
of its products by making its products available at an affordable price. Thus
the objective of the pricing of McDonald’s is to maximize their market share,
for which they the method they use is value pricing where they offer high
quality products for lower costs. Thus, McDonald’s hopes to bring in new
customers initially with offerings of entry-level products make them try new
products so that they graduate to higher priced products. And thus with
numbers on their side they further hope to bring down the prices and look for
profitability in the long run.
McDonald’s has been offers happy meals and extra value meals. The happy
meals are priced at a range from Rs 69 to Rs 99, medium extra value meals
ranging from Rs 84 to Rs 169 and large extra value meals ranging from Rs
99 to Rs 184, which the consumer can take in various combinations as small,
medium or large soft drink or French fries by paying a small extra amount.
This value-ladder pricing strategy employed by McDonald does ensure that
their offerings are affordable and attract a wide section of customers. All this
pricing strategy has helped the volume business of McDonald’s.
Another strategy that seems to have gone well with Indian customers is what
the company calls the 80-20 menu board—80% visual and 20% descriptive.
The main objective of the company is to make it easier for customers to
understand what the value-ladder pricing and what their options are.
Coupled with the pricing range, McDonald’s quick service and convenience
have attracted many school- and college-going customers, as well as young
middle-class families. Huge increases in volume sales and food processing
technology have been helping the company to offset its cost.
Another price-adaptation strategy of McDonald’s is promotional pricing
strategies, which stimulates early purchase and thus cultivate a loyal
customer base. Loss-leader pricing is an something that McDonald’s has

perfected over the years to help increase the volume of sales. They integrate
value pricing and loss-leader pricing strategies to effectively sell their
products. We will use some insider information that we gathered on the cost
and pricing of their products to explain their strategy. According to inside
sources, all the deep fried products including burgers gives a margin of
around 50%, the least contributing products being McNuggets, McAlloo Tikki
and Chicken McGrill. The most profit making products in McDonald’s are the
soft drinks and the French fries. A 300 ml soft drink serving is priced at Rs
32, but the cost incurred by McDonald’s being Rs 4 on the same. This is
almost a 700% markup on the price of the soft drink. A consumer might
select any of the loss-leading products (mentioned) but select fries and soft
drinks as accompaniment. So the customer gets a good price on the bargain
while McDonald’s has also realized a profit in the transaction. The concept is
giving something to get something of more value in return.
McDonald’s also initiates price changes from time to time. Back in 2001,
when the fast food giant realized that it was not getting through to its target
customer group they went for aggressive price reduction to capture its target
customer group. McDonald’s had given great care not to fall into the low-
quality trap by backing up the strategic move with effective communication.
It also made sure that the customer base thus captured showed loyalty to
the McDonald’s brand because of their value proposition.
As discussed earlier McDonald’s has also initiated price increases as is
happening now. The major circumstance that provokes the price increase is
the cost inflation on the supplier end. McDonald’s made sure that the burden
of price increase does not suddenly fall on its consumers thus upsetting the
loyal customer following it has. McDonald’s worked along with the suppliers
to bring up the price of the affected products over a period of 3 years in a
delayed price increase model. (See Annexure 1 for Price List)
– McDonald’s has adopted a pricing strategy that is extremely
competitive in the fast food segment. By offering burgers for Rs. 22,
they attract a majority of the college kids, who fall under the segment
which is non-earning, but has expendable money.
– The McDonald’s pricing strategy also enables them to position itself as
a value for money restaurant which do not compromise on the quality
and dining experience for young middle-class and lower middle-class
families who wants to have a good time.
– McDonald’s pricing strategy is aimed at capturing new customers and
retaining them with value pricing and quality of food and service.

– With an extensive ad campaign focusing on their cheaper and more
economic products, McDonald’s has positioned itself for the more
economic segment.
1. Promotion Strategies
A. Marketing Communication Timeline
Phase I: Launching the Brand (1997-2000)
McDonald's wanted to position itself as 'Indian' and a promoter of 'family
values and culture', as well as being 'comfortable and easy' and of one that
was committed to maintaining a quality service, cleanliness and offering
value for money, instead of a ‘foreign’, ‘not knowing what to expect’ brand.
Its marketing effort focused on outlet design, new store openings and PR
about its attempts to tailor a menu to Indian tastes.
Educated our customers
– On the build of the products
– Through extensive kitchen tours for our customers.
– How separate vegetarian and non-vegetarian platforms for cooking
Phase II: Brand Advertising (2000-2008)
– Began with TV advertising
– Realized that the Indian consumer was price sensitive
– The company's one-minute service guarantee attempted to reinforce
its reputation for fast, friendly and accurate service and it also ran in-
store events for mothers and children.
– Launched the Happy Price Menu with a value message for a younger
audience - McDonald's India saw a surge of younger consumers and
people from socio-economic class B walk into our stores.
– The Happy Price campaign has also been promoted via viral marketing.
– Delivery option
– Strategic tie-ups with Indian sports properties such as the IPL cricket
tournament, where it was one of the event's food providers.
A. Current Marketing Communication mix

Phase III: Appealing to both ends of the age spectrum
The communication mix consists of:
1. Advertising
Television:

– "Yesteryear's Prices". It features Bollywood stars from past decades
together with their sons and a message that prices have not risen in
line with the passage of time.
– “Jab Peit mein chhoohe daudein. Mcdonald’s Call karein”- Mcdelivery
66000666, Home delivery Advertisement.
– “Har Chotti Khushi ka celebration”- Advertisement campaigns
targeting customers across ages to tie up McDonald’s with the
‘celebration’ and ‘treat’ culture.
Through the same campaign, McDonald's is also taking the next step in
the 'Happy Price Menu' promotion which creatively illustrates the
theme of branded affordability.
Print Ads:
– Newspapers and household magazines emphasizing on the ‘Happy
price Menu’.
Hoardings:
– Hoardings of McDonald’s can be spotted in the cities where a
McDonald outlet is present. The Hoarding advertisements of McDonald
India is comparatively very less in frequency compared to the
corporation at USA
1. Sales promotions
– Combo offers: Extra value meals (EVM) are offered at reduced prices in
combination offers. It includes a combination of any burger with
medium fries and medium coke.
– Promotional cutouts and free gifts with Happy Meal: For the purpose to
attract kids. Example: ‘Madagascar’ toy series consisting of 8
characters in the cartoon movie is an example. ‘Ziippy-Zaappy Cars’
toy series of 6.
– Ronald McDonald, the clown’s statue is an attraction amongst the kids
during their visit to McDonald’s.
– Promotional offers by individual outlets on big orders, where the table
is offered with one free gift.
– ‘Sure shot jackpot offer’ that offers Free meal and exiting electronics
– Website that offers the details of the latest offers.
1. Events and experiences

– Provides package consisting of space and a time of 3 hrs in the
restaurant during non-peak hours for birthdays (consisting of burgers,
fries, coke and the birthday cake).
– Sponsoring school events and learning programs.

1. Direct marketing:
– Email newsletters and updates for the customers who have online
account membership.
1. Interactive marketing:
– Online customer feedback, Online Order placing, online customer
account.
1. Public relations and publicity:
McDonald’s have immense PR initiatives and publicity moves. Recent
examples of the same are:
– ‘Cyrus’ laugh riot at McDonald’s’- May 27th 2009
Publications: Afternoon (Mumbai edition), Hindustan Times- Café (Mumbai
edition)
– ‘Introducing Chicken Mcnuggets’-May 31st/ June 1st 2009
Publications: Mid-Day (Bangalore edition), Daily news and Analysis
(Bangalore edition), The Hindu (Hyderabad edition), Finance Today
(Mumbai edition), Central chronicle (Bhopal edition), Hindustan Times-
Live (Indore edition), The free press journal (Mumbai edition), The Hindu
Metro Plus (Bangalore edition)
– Mc Donald’s plans Rs. 400 Cr expansion – May 27th/29th 2009
Trinity Mirror (Mumbai edition), Mint (All editions), Business standards (All
editions), Daily news and analysis – Money (Ahmadabad, Mumbai edition),
Financial Chronicle (all Editions), Hindustan times (Mumbai edition),
Business India (national)
– Local newspapers and websites

1. COMPANY SWOT ANALYSIS
Strengths Weaknesses
 Powerful strategy  No clear strategic
 Strong financial condition direction
 Strong brand name  Obsolete facilities
image/reputation  Weak balance sheet;
 Widely recognized market excess debt
leader  Higher overall costs than
 Proprietary technology rivals
 Cost advantages  Missing some key
 Strong advertising skills/competencies
 Product innovation skills  Subpar profits
 Good customer service  Internal operating
 Better product quality problems
 Alliances or JVs  Falling behind in R&D
 Too narrow product line
 Weak marketing skills
Opportunities Threats
 Serving additional  Entry of potent new
customer groups competitors
 Expanding to new  Loss of sales to
geographic areas substitutes
 Expanding product line  Slowing market growth
 Transferring skills to new  Adverse shifts in
products exchange rates & trade
 Vertical integration policies
 Take market share from  Costly new regulations
rivals  Vulnerability to business
 Acquisition of rivals cycle
 Alliances or JVs to expand  Growing leverage of

coverage customers or suppliers
 Openings to exploit new  Reduced buyer needs for
technologies product Demographic
 Openings to extend brand changes
name/image
1. PROPOSALS
6.1.Product Proposals
With growing concerns all around the world about obesity, it will only
be a matter of time before it catches up in a full-fledged manner with
the developing nations. McDonald’s could take initiatives to be the first
mover in the health food segment in the fast food industry.
– The new product should fit into the corporate image, current markets
and distribution systems. It should fall within the company’s technical
and production capabilities. At the end, it should bring about desired
sales and profits.
– With these constraints in mind the product that we’ve decided to
propose could be called a salad burger.
– This burger will not have a deep fried patty but vegetable and lettuce
filling, and the dressing being a non-mayonnaise based one. The
vegetable filling would consist of olives, tomatoes, red and green
pepper, with roundels of carrots.
– In the drinks segment fresh fruit juices can be added.
– ‘ZERO-FAT’ fudges can be included in the dessert menu.
– Calorific Values can be printed on the wrappers that cover the burgers.
– The objective is to provide a complete health diet with all the vitamins,
calcium, and other mineral supplements in the meal with the

necessary amount of carbohydrates. This is lacking even in the health
diet meal of Subway Sandwiches.
6.2 Price Proposals

Differential pricing as McDonald’s tries to penetrate the Tier II and Tier III
cities in India. The comparatively lower income level and lesser outgoing
lifestyle among the families necessitate that more aggressive pricing be
there to bring in the numbers for McDonald’s. The fact that the fixed costs
that would be incurred by the corporation in setting up their restaurants in
these cities will be significantly less than the metros and the tier I cities
makes it possible for McDonald’s to pursue differential pricing to lure in more
customers.
6.3Promotion Proposals
– The focus interviews (Refer Annexure :4) have suggested that middle
income families who could be potential customers of McDonald’s
haven’t been penetrated with the current promotion strategy. These
were people who found McDonald’s an expensive affair during their
studies in the not so “happening” educational institutions and occupies
government positions currently thus bringing them in the middle-class
segment. The promotion strategies should be more aggressive to
remove the perceptions of value and quality entertained by these
potential customers. McDonald’s outlets can use flyers and leaflets to
reassure this particular target group about the quality and value of
their value priced offerings.
– The buying decisions of families in case of burgers and pizzas
influenced 59% of the times by the children in the family (Ref: ‘Child’s
pester Power: Marketing Management, Rajan Saxena). Therefore
fostering a strong relationship with the child becomes an integral part
of the marketing and promotional tactics of McDonald’s. More
promotions based on children should be the advertising strategy. One
of the great associations that a child can make with McDonald’s is
through Ronald McDonald, the clown. Having a real life Ronald
McDonald at the restaurant at all times and especially during the Birth
day celebrations of children, to entertain the child will be an ideal way
to influence the child and there by the buying decision of the families.
6.4 Place Proposals

– One of the significant findings of the research (Ref: Annexure 3)was
that more people would plan a McDonald’s outing or plan to visit the
outlet more, if McDonald’s were to provide a more exclusive dining
experience for the family. With this in consideration setting up
exclusive McDonald’s outlets with space to entertain the whole family
and especially the children shall increase the footfall in such outlets. It
also will help in developing a more loyal McDonald’s customer base.
– McDonald’s has already started home delivery services which is
generating revenue for them and is convenient to the customers.
McDonald’s can tie up with corporate offices to sell their products for
breakfast or lunch at the offices. They can utilize the delivery services
also in this regard.
ANNEXURE 1
McDonald’s Price Menu
PRODUCT Rs
Mc Aloo Tikki 22
Mc Veggie 45
Salad Sandwich 26
Chicken Mc Grill 28
Mc Chicken 56
Maharaja Mac 66
Filet O Fish 66
Paneer Salsa Wrap 66
Chicken Mexican Wrap 66
Chicken Mc Nuggets 6Pc 69

Pizza Mc Puff 20
Potato Wedges 20
French Fries Regular 30
French Fries Medium 40
French Fries Large 55
Coke / Fanta / Sprite / Diet Coke

Regular 25
Medium 32
Large 40
Ice Tea Regular 25
Ice Tea Medium 36
Cold Coffee 36
Chocolate / Strawberry Shake
Regular 39
Medium 49
Large 59
Cappuccino 25
Straight Tea 20
Coke / Fanta Float 20
Hot Chocolate 25
Medium EVM
Mc Aloo Tikki 84
Mc Veggie 85
Chicken Mc Grill 90
Mc Chicken 96
12
Maharaja Mac 1
12
Filet O Fish 1
12
Paneer Salsa Wrap 1
12
Chicken Mexican Wrap 1
14
16

All Large Meals = Medium Meals + Rs 15
Happy Meals
Pizza Mc Puff 69
Mc Aloo Tikki 75
Mc Veggie 85
Chicken Mc Grill 79
Mc Chicken 99
Chicken Mc Nuggets 4 Pc 99
Soft Serve hot fudge / strawberry

Regular 20
Medium 45
Soft serve cone 10

Mc Swirl 18
Butterscotch 20
Flavour Twist Raspberry 25
Flavour Twist Green Apple 25
Flavour Twist Tropical Orange 25
All the desserts available in waffle cones for Rs 5
extra
Flavour Twist are available only in Kiosk Stores
ANNEXURE 2
Survey on McDonald's
Dear Bon vivant,
Thank you for choosing to fill the survey!
This survey would help us to know your views on McDonald's, for the
purpose of our Marketing End Term project.
With Warm Regards,
Group McD
Section DD
1. How do you find the range of the product line at McDonald's?

○ Very Good - provides a lot of variety
○ Good - provides a decent variety
○ Satisfactory- provides just enough variety
○ Bad -provides a less than satisfactory variety

○ Don't know- never visited a McDonald's
1. Do you find McDonald's value for money?

○ Yes
○ No
○ Can’t say
1. Would you like McDonald's to include Health food?

○ Yes
○ No
○ Can’t say
1. Do you 'Plan' a McDonald's outing?

○ Sometimes, Yes
○ Always, Yes
○ No
○ Never visited a McDonald's
1. If McDonald's offers an exclusive family dining experience

would you Plan the visit more often?
○ Yes, maybe
○ Yes, definitely
○ No
○ Can't Say
1. How often do you remember seeing a McDonald's

Advertisement on TV/ Print Media?
○ More than once a day
○ Once a day
○ 2-3 times a week
○ Less than once a week
1. Has the corporate image of McDonald's ever hampered your

decision to dine at it?
○ Yes
○ No
○ Can’t say

1. Which of the following suggestions, according to you, could
improve the dining experience at McDonald's?
○ Shorter Queues
○ Better Music
○ More Space
○ Home Delivery
○ Can't Say
○ Other
ANNEXURE 3
Customer Survey Results
a. PRODUCT RANGE
Question: How do you find the range of the product line at McDonald's?
Significance: To evaluate the customer’s satisfaction with the product

range.
Results:
Percent
Opinion age
Don't know- never visited a
McDonald's 4%
Bad -provides a less than
satisfactory variety 1%
Good - provides a decent variety 55%
Satisfactory- provides just enough 31%

variety
Very Good - provides a lot of
variety 9%
Grand Count 100%
b. VALUE FOR MONEY
Question: Do you find McDonald's value for money?
Significance: To evaluate the customer’s opinion on whether they consider

McDonald’s as value for money. Since the company uses ‘Value Pricing’ as a
strategy, value for money from the customers is a critical evaluating factor.
Results:
Percenta
Opinion ge
Can't say 6%
No 8%
Yes 86%
Grand Count 100%
c. HEALTH FOOD
Question: Would you like McDonald's to include HEALTH food?
Significance: McDonald’s has continually adapted to the customer’s tastes,

value systems, lifestyle, language and perception. The india-nization of their
menu is an example of how they exemplify this concept. Since there is a
growing trend amongst the Urban population, where 67% of the respondents
suggested that ‘Eating a well balanced, nutritious diet’ is the part of their
health regime. (Ref: India Healthcare Trends 2008 – a report by The
Knowledge Company, the Market Intelligence & Publications Division of
Mindscape)
Since Mc Donald’s aims at capturing more meals of the customer (with ref to:
the ‘Morning’s made easy campaign’), it should take into consideration this
Macro trend.

Results:
Percen
Opinion tage
Can't say 15%
No 25%
Yes 60%
d. AS A DINING DESTINATION
Question: Do you 'Plan' a McDonald's outing?
Significance: The main target demographic segment of McDonald’s’

segments are children and the young urban family. If a restaurant is a target
dining out place for a family, the Brand perception attached with it would
transform it from being a Fast food outlet to a family dining experience
provider. The question analysis whether McDonald’s is a place where the
consumer ‘gets in while passing by’ or ‘look forward for an experience’.
Results:
Percent
Opinion age
Always, Yes 10%
Never visited a
McDonald's 4%
No 28%
Sometimes, Yes 59%
e. FREQUENCY OF AD VIEWING
Question: How often do you remember seeing a McDonald's Advertisement

on TV/ Print Media??

Significance: McDonald’s promotion channel mix consists of print ads,
television ads, hoardings and bus shelters. It is important to evaluate the
level of ‘selective attention’ and ‘selective retention’ that these marketing
channels have on the consumers. We have selected to evaluate their
‘television and print ads’ promotion channel.
Results:
Percen
Opinion tage
2-3 times a week 33%
Less than once a
week 45%
More than once a
day 6%
Once a day 16%
f. CORPORATE IMAGE
Question: Has the corporate image of McDonald's ever hampered your

decision to dine at it?
Significance: Drawing a reference from the controversies McDonald’s USA

underwent, Morgan Spurlock's 2004 documentary film Super Size Me which
said that McDonald's food was contributing to the epidemic of obesity in
society tainted the corporate image of McDonald’s. The question is to
evaluate the image of the company.
Results:
Percen
Opinion tage
Can't say 19%
Never 69%
Yes 13%
g. DINING EXPERIENCE

Question: Which of the following suggestions, according to you, could
improve the dining experience at McDonald's?
Significance:
The following are a few Macro trends observed by Market Researchers:

(Source: India Shopping Trends 2008 – a report by The Knowledge Company,
the Market Intelligence and Publications Division of Mindscape)
– 35- 40% of housewives in SEC A, B and C households regularly shop for

packaged and convenience foods items like noodles, pasta and soup
powders, and ‘ready to cook’ offerings from companies like MTR and
Ashirvaad, regardless of whether they are shopping from traditional
format or modern format grocery stores
– More than 4 in 5 SEC A, B and C consumers have consumed a snack
out of home in the last one month. Chips and Ice Creams are the top
favorites for out of home consumption, with each of the snacks being
consumed at least once a week, on an average
To leverage on the growing trends, the company should capitalize on the
right improvement areas suggested by the consumers.
Results:
Percent
Opinion age
Can't Say 2%
Better Music 12%
Home Delivery 23%
Shorter Queues 23%
More Space 33%
a. Question: If McDonald's offers an exclusive family dining experience

would you Plan the visit more often?
Significance: Evaluate the impact of setting up an exclusive dining
experience
Results:

ANNEXURE 4
Focus Group Interview results:
1. Group constitution:
Family 1, Location: Chennai, No. of family members: 4, Family Head: 35 yrs,

Average family age: 24 (Young family), SEC: B1
Family 2: Location: Cochin, No. of family members: 3, Family Head: 33 yrs,

Average Family age: 23.6 (Young family), SEC: B1
Family 3: Location: Calcutta, No. of family members: 3, Family Head: 40 yrs ,

Average family age: 28 (Young family), SEC: B1
2. Sample selection criteria:

– SEC: B1
– Families that have NOT visited Mc Donald’s even though a McDonald’s
outlet is present in their city
– Completed their graduation in Government Arts Colleges
– Pursued careers in Government sector.
– Not exposed to the metro culture throughout their student life/ career
life.
1. Purpose of selection of SEC: B1

– Assuming a less penetration in the B1 segment, a focus interview
would unveil the consumer perception towards the McDonald’s brand
in the particular segment.
– B1 consists of 2.5% of Indian Urban households, whom , if tapped
represents the ideal target consumer group for McDonald’s ‘Value for
money’ proposition, i.e., 556786 households.
SEC details: B1 – Graduate/ Postgraduate General and Supervisor
level.
1. Verbatim:
Question 1: Do you think McDonald’s is value for money?
– ‘No’
Question 2: Do you consider McDonald’s to be an upscale eatery?

– ‘Yes’
Question 3: Haven’t the advertisements of the McDonald’s

communicated of the low priced Mcaloo tikki, Chicken McGril, etc?
– ‘Yes’
Question 4: Yet, why do you perceive it to have less value for money?
‘Not sure of the size of the burger and ended up wondering whether it
would actually satisfy our hunger’
‘It was priced at 20 Rs. I am not sure enough whether the burgers were
tasty enough. We thought that it could be a marketing gimmick, that is
used by the corporate to lure in customers.’
‘The whole aura around McDonald’s is that of an upscale place. We never

ventured to McDonald’s even after seeing the products in Ads.’
‘We thought that the products featuring in the advertisements are

perhaps the cheapest products on sale, whose quality is compromised.’
1. Interpretations:
Customer Perception of McDonald’s as:
– An upscale place, which provides lesser value for money

– Advertisements fail to alter their perceptions
– Diffident about the product quality and taste which is perceived to be a
trade off for the price.
References:

– India Healthcare Trends 2008 – a report by The Knowledge Company,
the Market Intelligence & Publications Division of Mindscape
– Marketing management- A south Asian Perspective – Kotler, Keller,
Koshy, Jha
– “McDonalds – Behind the Arches” – John S Love
– www.Mcdonaldsindia.com
– www.wikipedia.com

4Ps of Marketing McDonald: Marketing Mix of McDonald

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IMT Nagpur

Date of Submission: 27th August 2009

Rani Treasa Joseph (2009209)

1 Group McD- 4Ps/MM2/2009-11

2 Group McD- 4Ps/MM2/2009-11

1. Study the Product, Price, Product and Place strategies of McDonald’s

2. Propose Changes and suggestions on the 4P strategies.

3 Group McD- 4Ps/MM2/2009-11

Sample selection technique:

–Age group : 20-35

4 Group McD- 4Ps/MM2/2009-11

Strategic Options: The 4Ps: Product, Place, Price and Promotions

Non-Vegetarian: When McDonald’s first came to India, they had initially

1.2. Product and brand relationship:

6 Group McD- 4Ps/MM2/2009-11

1.3. Packaging and Labeling:

Packaging and labeling has always been an integral part of McDonald’s

1.4. Service Strategies:

7 Group McD- 4Ps/MM2/2009-11

1.5. Managing Service Quality:

1.6. Product Strategy Analysis:

8 Group McD- 4Ps/MM2/2009-11

• McDonald’s easy to prepare products has helped them maintain their

Value for Money:

• McDonald’s has adopted a pricing strategy that is extremely

9 Group McD- 4Ps/MM2/2009-11

McDonald's in India is a Joint-Venture (JV) partnership run by Indians.

In terms of investment in the case of the franchisees, the joint venture

Trikaya Agriculture is a major supplier of iceberg lettuce to McDonald’s India.

10 Group McD- 4Ps/MM2/2009-11

McDonald’s had provided assistance in the selection of high quality seeds,

Post harvest facilities at Trikaya include a cold chain consisting of a pre-

McDonald’s expertise in packaging, handling and long-distance

Vista Processed Foods Pvt. Ltd.

This included hi-tech refrigeration plants for manufacture of frozen food at

11 Group McD- 4Ps/MM2/2009-11

McDonald’s suppliers of cheese, Dynamix Dairy, too, recognizing the need

Cremica Industries was started in 1980 as small ice-cream unit in Ludhiana.

Amrit Foods, a division of Amrit Banaspati, has been associated with

12 Group McD- 4Ps/MM2/2009-11

• The objectives of this supply strategy are to operationalize its globally

13 Group McD- 4Ps/MM2/2009-11

McDonald’s India opened up their first distribution centers in Noida and

McDonald's entered its first distribution partnership agreement with Radha

By transporting the semi-finished products at a particular temperature, the

Below mentioned is the data about Refrigerated vans for McDonald's

14 Group McD- 4Ps/MM2/2009-11

National inbound Suppliers to Distribution Centre. 20 vehicles

Outbound North Distribution Centre to restaurant. 13 vehicles

Outbound West Distribution Centre to restaurant 11 vehicles

Outbound South Distribution Centre to restaurant 1 Vehicle

• Innovations and use of state-of-the-art technology in the distribution

15 Group McD- 4Ps/MM2/2009-11

The approximate sales figures in a typical McDonald’s restaurant are as

Chicken McGrill 200

McAlloo Tikki 200

McVeggie 200 – 300

McChicken 250 – 300

– The inventory management system MCDonald’s use gives the exact

16 Group McD- 4Ps/MM2/2009-11

17 Group McD- 4Ps/MM2/2009-11

18 Group McD- 4Ps/MM2/2009-11

A. Current Marketing Communication mix