FIELD STUDY REPORT

On

“Study on consumer’s preferences with

respect to Quick Service Restaurants
[McDonald’s] in Lucknow”
Towards partial fulfillment of

Bachelor of Business Administration (BBA)

School of Management, Babu Banarasi Das University, Lucknow

Submitted by

Prince Kumar Singh

BBA 3rd Semester

Roll No- 1170671250

Session 2018-2019

School of Management

Babu Banarasi Das University

Lucknow

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 DECLARATION
I hereby declare that the field work entitled of “Study on consumer’s

preferences with respect to Quick Service Restaurants [McDonald’s] in

Lucknow.” submitted to the BABU BANARASI DAS UNIVERSITY, Lucknow

is a record of an original work done by me under the guidance of Ms. Shiva Singh

(College Guide) and this field study report is submitted in the partial fulfillment of

Bachelor in Business Administration.

Prince Kumar Singh

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 ACKNOWLEDGEMENT

I express my sincere thanks to Ms. Shiva Singh, whose supervision,

valuable guidance and help, enabled me to complete this project work.

This project is a result of the hard work and sincere effort put by my hands.

And I am grateful to BBDU, Lucknow for giving me this opportunity to do my

research project work on topic “Study on consumer’s preferences with respect

to Quick Service Restaurants [McDonald’s] in Lucknow.”

I also wish to express my sincere thanks to all the customers of

McDonald, who have directly or indirectly help me in completing my project

work.

Prince Kumar Singh

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 PREFACE

The above saying highlights the importance of Practical knowledge.

Practical training is an important part of the theoretical studies. It is of an immense

importance in the field of management. It offers the student to explore the valuable

treasure of experience and an exposure to real work culture followed by the

industries and thereby helping the students to bridge gap between the theories

explained in the books and their practical implementations.

Project plays an important role in future building of an individual so that he/she

can better understand the real world in which he has to work in future. The theory

greatly enhances our knowledge and provides opportunities to blend theoretical

with the practical knowledge.

I have done my Project on “Study on consumer’s preferences with respect to

Quick Service Restaurants [McDonald’s] in Lucknow. I have tried to cover

each and every aspect related to the topic with best of my capability.

I hope this study would help many people in the future.

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 TABLE OF CONTENT

Sr. Topic Page no.

1. Introduction 1

2. Company Profile 3

3. Objectives of the study 5

4. Research Methodology 6

5. Data Analysis and Interpretations 8

6. Findings 18

7. Suggestions 20

8. Conclusions 21

Bibliography 23

Appendix 24

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 INTRODUCTION

Consumer behaviour is the study of how individuals, groups and organizations

select, buy, use and dispose of goods, services, ideas, or experiences to satisfy their

needs and wants.

A consumer’s buying behaviour is influenced by cultural, social and personal

factors. Cultural factors exert the broadest and deepest influence

MCDONALDS INDIA: I AM LOVING IT

On McDonalds launch in India during 1996 it’s North Zone Managing Director,

Vikram Bakshi quoted on being asked whether the menu will be altered to suit the

Indian palette: “We will surely take into consideration the Indian requirements and

the variety of vegetarian dishes will be part of our regular course”. Circa 2006 and

according to Vikram Bakshi, 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 customer’s 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% of our menu is ‘Indianised’, and the McAloo

Tikki Burger is our highest selling product. While the menu maybe different in

some ways, the McDonalds experience around the world is consistent, offering

quality, great service, cleanliness and value.

The complete reversal of statement is not what Bakshi would have really thought

when McDonalds launched in India. The brand and the products were familiar to

most Indians but the platter it offered had to suit the Indian taste. India is the

world’s vegetarian’s paradise. Nearly all of the 1 billion people living here eat

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meat only occasionally, or not at all. Beef never shows up on the menu. India is a

home to Hindu religion, which preaches non violence. Believers fear the karmic

consequences of harming other creatures. McDonalds is the only chain in India,

which does not serve beef and pork. Most menus are vegetarian and there are a

few, which have been developed suiting the Indian taste and palette.

The US based fast food giant, McDonald’s success in India had been built on 4

pillars: Limited menu, Fresh food, Fast service and Affordable price. Intense

competition and demand for a wider menu drive-through and sit-down meals

encouraged the fast food giants to customize product variety without hampering

the efficacy of its supply chain.

Exhibit 5.3 FOCUSING ON THE INDIAN PALETTE

McDonald’s local creation like McAloo Tikki Burger, Curry Pans, Wraps

Pizza Mcpuff and McVeggie are a favourite with the consumers.

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 COMPANY PROFILE

McDonalds is a leader in convenient foods and beverages, with revenues of about

$23 billion and over 1.6 million employees serving the customer’s world wide. The

company consists of the snack business of Beverages and Foods. PepsiCo brands

are available in nearly 115 countries having more than 24,500 restaurants in the

world providing 24 hour service. Having about 1 billon customers to be served all

over the world

McDonalds’s success is the result of superior products, high standards of

performance, distinctive competitive strategies and the high integrity of the people

working in McDonald’s. McDonalds is continuing to expand and introduce new

alternative beverages in the market. Approximately 85% of McDonald’s restaurant

businesses world-wide are owned and operated by franchisees .All franchisees are

independent, full-time operators. McDonald’s was named Entrepreneur’s Number-

one franchise for 1997.

The mission of McDonald’s is to be the world's premier Consumer Products

Company focused on convenient foods and beverages. McDonald’s products are

recognized and are most respected all around the globe. Currently, its divisions

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operate in all over the world in beverages, snack foods, and restaurants. The

corporations increasing success has been based on high standards of performance,

marketing strategies, competitiveness, determination, commitment, and the

personal and professional integrity of their people, products and business practices.

McDonald’s believes their success depends upon the quality and value of their

products by providing a safe, whole some, economically efficient and a healthy

environment for their customers; and by providing a fair return to their investors

while maintaining the highest standards of integrity.

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 RESEARCH OBJECTIVES
1. To study on customer preference towards factors that influence towards

McDonalds as compared to other.

2. To Study on level of Satisfaction towards services quality of McDonalds in

Lucknow City.

3. To study factors that influencing buying decision of customer towards

McDonalds.

4. To study the factors those satisfy and delight the customer.

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 RESEARCH METHODOLOGY

 Research Methodology:

Research Methodology is a method to solve the research problem systematically. It

involves gathering data, use of statistical techniques, interpretations, and drawing

conclusions about the research data. It is a blueprint, which is followed to complete

the study.

Research Methodology

Title of the study

Study on consumer’s preferences with respect to Quick Service Restaurants

[McDonald’s] in Lucknow.

Objective of the Research

The basic objective of this project is to study the reasons of consumers preferences with

respect to QSR’s, to assess how particular situations affects the purchasing

decisions of the consumers and to find out that the purchase decisions depend ob

the expectation and suggestion of others.

Statement of Problem

My dissertation is on the topic Consumer Preference towards McDonald’s. It talks about

the fast food sector to which McDonalds belongs and consumer satisfaction and

preference towards McDonald’s outlets in Lucknow.

As a part of the research work I am trying to understand the customer’s satisfaction level

and preference which can fulfil all the customers’ needs, buying behaviour of

people living in North Bangalore.

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 Sources of Data

Primary sources: The primary data is collected through questionnaires. They were

filled using the scheduled method of data collection by the researcher.

Focused Group: A FGD of 6 people was conducted. It consisted of people between the

ages of 25 – 35 with 3 males and 3 females. The objective of the discussion was to

understand the attributes that the customers of McDonald’s products values and to

know their perceptions about various brands.

Secondary sources: The secondary sources were used only for collecting information

regarding the sample and literature survey like Internet, Books, Journals,

newspaper etc.

Sampling Unit

Samples for the study consisted of youth segment and the middle- aged that falls

between 25 – 35 yrs. Convenience samples were drawn from Lucknow region

among the college students and office going people. It was a random selection of

individuals from a large number of customers at the fast food outlets. This segment

of population was selected due to their adoption of modern lifestyle pattern

inclined towards eating and socializing with friends and family.

Sample Size

Since it is an exploratory study, a sample size of 30 thought to be adequate one.

Accordingly 30 respondents from the target population were approached to fill in

the questionnaire.

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 DATA ANALYSIS

1. What is your Gender? Male/Female

Gender

Particulars Respondents %age

Male 20 66.67

Female 10 33.33

Total 30 100.00

Gender

33%
Male
Female
67%

Figure 8.1- GENDER

Description: Based on the analysis of data it can be said that more number of
males visits McDonald’s as compared to the females but that does not make a
significant difference.

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2. Which age group do you belong?

Particulars %age
15-19 0.00
20-24 23.33
25-29 16.67
30-34 33.33
35-39 10.00
>40 16.67
Total 100.00
Table 8.2- AGE GROUP

Age
0%

17% 15-19
23%
20-24
10% 25-29
30-34
17% 35-39
>40
33%

Figure 8.2- AGE GROUP

Description: From the above data we can conclude that the age group between
30-34yrs are the people who visit McDonalds more. This age group falls into
Family Unit category who come to McD for their family and also that coming to
McD is a way of showing their status to the society.

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3. How often you visit McDonalds?

Particulars %age
Once or twice in a month 70.00
3-4 times in a month 13.33
More than 4times in a
month 13.33
Never 3.33
Total 100.00

Visit to Mcdonald's
3% Once or twice in a month

13% 3-4 times in a month

14% More than 4times in a

month
Never
70%

Description: From the above percentage analysis it is clear that Young consumers
of fast foods visit fast food outlets one to two times in a month. It is not a regular
behaviour of their eating habits.

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4. When you hear the word “Burger” does McDonald’s come in your
mind?

Particulars %age
Yes 60.00
No 13.33
Sometimes 26.67
Total 100.00
Table 8.4 - McDONALD'S BURGER

Word "Burger"

27% Yes

No

60% Sometimes
13%

Figure 8.3- McDONALD'S BURGER

Description: As we can see in 60% of cases people attach the word burger with
McDonalds. That is quite a good response in favour of McDonald’s.

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5. Which is your favourite product at McDonald’s?

Fav product at McD

Particulars %age
Mc Spicy Chicken 26.67
Chicken Mc Grill 36.67
Mc Spicy Paneer 3.33
Mc Egg 6.67
French Fries 23.33
Dessets 3.33
100.00
Total
Table 8.5- FAVOURITE PRODUCT AT McDONALD'S

Fav product at McDonalds

3%
Mc Spicy Chicken

Chicken Mc Grill
27%
23% Mc Spicy Paneer

Mc Egg

7% French Fries

Dessets
3% 37%

Description: Seeing the above data we can say that mostly people prefer Non-
veg items in McD and the products which are liked the most are Chicken Mc Grill
followed by Mc Spicy Chicken and French Fries.

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6. Is the product line in McDonald’s adequate?

Product line in McD

Particulars %age
Yes 53.33
No 3.33
It's Okay 43.33
100.00
Total
Table 8.6- PRODUCT LINE IN McDONALD'S

Product line in McDonalds

Yes

No
43%
It's Okay
54%

3%

Description: According to most of the people the product line in McD is adequate
but still few had a neutral reaction towards it.

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7. Suitable timing for visiting McDonald’s?

Timing for Visit

Particulars %age
Morning 0.00
Afternoon 23.33
Evening 76.67
100.00
Total
Table 8.7- TIMING FOR VISIT TO McDONALD'S

Timing for Visit to McDonalds

0%

23%
Morning

Afternoon

Evening
77%

Description: Above results indicates that going for snacks in the evening is most
preferred time for visiting fast food outlet followed by lunch time that is
afternoon.

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8. Do you like to visit McDonald’s with?

Visit McDonalds
with

Particulars %age
Family 43.33
Friends 40.00
Couple 10.00
Alone 6.67
100.00
Total
Table 8.8- VISITING McDONALD'S WITH

Visit Mcdonalds With

7%

10%
Family

43% Friends

Couple
40%
Alone

Description: Mostly people prefer going to McDonalds with their friends and
family and spending time with them.

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9. What is the reason for preferring McDonald’s?

Reasons for preferring

McDonalds

Particulars %age
Price 30.00
Accessibility 6.67
Food quality 36.67
Advertisement 6.67
Ambience 20.00
100.00
Total
Table 8.9- REASONS FOR PREFERRING McDONALD'S

Reasons for preferring McDonalds

Price
20%
30% Accessibility

7% Food quality

Advertisement
7%
Ambience
36%

Figure 8.4- REASONS FOR PREFERRING McDONALD'S

Description: The percentage analysis indicates that food taste and quality has
highest importance in the mind of fast food consumers while selecting a fast food
outlet for outings followed by price, ambience and location of the outlet.

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10. What do you think is the biggest competitor of McDonald’s?

Competitor of McDonalds

Particulars %age
KFC 76.67
Pizza Hut 10.00
Dominos 13.33
Subway 0.00
100.00

Table 8.17- COMPETITOR OF McDONALD'S

Competitors of McDonalds
0%

13%
KFC
10% Pizza Hut

Dominos

Subway
77%

Figure 8.17- COMPETITOR OF McDONALD'S

Description: Though McD being one of the most favoured fast food outlet among
the young consumers, it’s toughest competition is from KFC followed by
Dominos.

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 FINDINGS

The food habits of youngsters are influenced by many factors such as environment

at home, educational environment, availability and accessibility to fast food

providers, and social environment in their surroundings. In addition, emergence of

traits of independence in their eating habits, nutritional education, divergence of

food preferences at home and at fast food outlets and ambience of place for

socializing affects their visit and liking of fast food outlets. The results of data

analysis with respect to these issues of food consumption behaviour of youngster’s

vis-a` -vis fast food outlets are presented in the following sub-sections:

1. The findings clearly indicate that the young customers are attracted more

with the food quality, price and hygiene factors.

2. The above set of results also indicates young consumers are very particular

about the nutritional value of the fast food.

3. It also shows that mostly family people prefer going to McD and the

influencing factor for them is their spouse and mostly children. Family also

prefer going to McD to show their position in the society as fast food

chains have now become a status symbol for people so they prefer going to

branded fast foot outlets rather than the non- branded ones even if it is

expensive.

4. Many consumers are not satisfied with the product line of McDonalds so it

needs an improvement in the variety of products served by McD.

5. McDonalds being most popular among the youth and even newly working

class of today but still it faces tough competition from KFC and Dominos.

Most of the young prefer Dominos for home orders because of their scheme

of in “30 minutes” home delivery or else free.

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6. Finding also states that the outlets of McDonalds are vastly located and

within the reach of the customers.

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 RECOMMENDATION

Consumer acceptance of food served by fast food outlets is critically important for

the future growth of fast food outlets in any economy. Though the rating of fast

food outlets’ attributes under study based on mean score is very high but still

consumers visit fast food outlets for fun, change or entertaining their friends but

certainly not as a substitute of homemade food. Study of McDonald’s indicates a

clear cut sign that consumers demand more and more information related to

hygiene issues and nutritional values of the products of fast food outlets. Based on

the analysis and results, it can be said that with more and more acceptability of fast

food outlets and change in life style, competition among fast food outlets with

respect to quality of food and customer service will be more prominent in the days

to come.

Since food and medicine are permanent in nature, it is inevitable that this industry

will have a great future, what is required is that McDonald’s must improve its

services in India and in Bangalore in particular since Bangalore is virtually a Mini-

India.

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 CONCLUSION

Fast food providers need to focus on the quality and variety of food besides other

service parameters. Study clearly shows that consumers do not visit these outlets

primarily for food but for fun, change and social reasons as they prefer home food

over the fast food. This is an important parameter to focus to have sustainable

growth in the times to come. Further, information about hygiene and nutrition

value of the fast food must also be communicated to the consumers. Thus, in

nutshell, there is need to focus on the food contents by the fast food marketers.

It is about the name recognition. Everywhere, millions of people are familiar with

the Golden Arches that are on top of every McDonalds restaurants. McDonald

should use this advantage to gain more attraction from customers.

In addition, McDonald strength is giving variety of products even then the

company should focus on this strength to develop stronger. How ever, the

company seems not diversifying its products regularly, while competitors are

stronger and have new products gradually. Because of this reason, McDonalds

should spend more money on Research and Development to create new products

and services as well as increase the efficiency of operations.

First, one thing McDonalds should focus on is that the play place for kids. Next,

even if company’s menu is still relatively inexpensive compared to that of its

competitors, it is not totally enough. Apart from price, customers also make

decision rely on menu. So McDonalds should also focus on an organic menu

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consisting of more fruits and vegetables. it is necessary for them to make this

change, since customers of recent times are more conscious towards their health.

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 BIBILIOGRAPHY

1. S. Ramesh Kumar, “Consumer Behaviour and Branding”, The Indian Context,

2003, pp. 65,144,162,265,354,377.
2. S. N. Murthy & U. Bhojanna, “Business Research Methods”, Excel Books
(2008) 2nd Edition.
3. Philip Kotler, Kevin Lane Keller, Abraham Koshy & Mithileshwar Jha,
“Marketing Management”, A South Asian Perspective, Dorling
Kindersley(India) Pvt. Ltd (2009), 13th Edition, pp. 144-158.
4. Wayne D. Hoyer, Deborah J. MacInnis & Pinaki Dasgupta, “Consumer
Behaviour”, Biztantra (2008) Edition, pp. 181,320.
5. Suja R. Nair, “Consumer Behaviour in Indian Perspective”, Himalaya Publishing
House, 2007 Edition.
6. http://www.mcdonalds.com
7. http://www.mcdonaldsindia.com
8. Economic Times Bureau, Sep 24, 2013. 04.25AM IST.
9. Anita Goyal & N.P Singh, “Consumer Perception About Fast Food Consumption
in India: An Exploratory Study”, British Food Journal, Vol. 109 No. 2, 2007.

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 QUESTIONNAIRE
NAME –

GENDER –

OCCUPATION-

COMMENTS-

1)Which age group do you belong?

15-19 20-24 25-29 30-34 30-34 35-39

40& above

2)How often you visit McDonalds?

Once or twice in a month 3-4 time in a month More

than 4 times in a month Never

3)When you hear the word “burger” does McDonald s come in your
mind?

Yes No Sometimes

4) Which is your favourite product at McDonald s?

Mcspicy Chicken Chicken Mcgrill DESSERTS

MCsPICY Paneer Mc Egg French Fries

5) Is the product line in McDonald ‘s adequate?

Yes No Evening

6) Suitable timing for visiting McDonald ‘s?

Morning Aftenoon Evening

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7)Do you like to visit McDonald’s with?

Family couple Friends Alone

8)What is the reason for preferring McDonald’s?

Price Accessibility food quality

Advertisement Ambience

10) What do you think is the biggest competitor of McDonald?

KFC Pizza Hut Dominos Subway

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