DISSERTATION REPORT ON Consumer Perception on Fast food Industry with Special Emphasis to McDonalds.

CERTIFICATE

This is to certify that has carried out this Dissertation Project titled Consumer Perception On Fast food Industry with special emphasis to McDonalds , under the able guidance and supervision of This Dissertation report has the requisite standard for the partial fulfillment the Post Graduate Degree in Management. To the best of our knowledge no part of this report has been reproduced from any other report and the contents are based on original research.

(Faculty Guide)

(Student)

ACKNOWLEDGEMENT Every endeavor in itself is an impression of the efforts of not only those who pursue it but of those as well who provide guidance and motivation towards its successful completion. Likewise, this project bears an imprint of all those who helped me at various stages and it would be unfair on my part not to thank them. The successful completion of this project could not have been possible without the co-operation and encouragement of , my project guide, who provided me with her unending support from the very beginning of the project, which helped in timely completion of the project. I would also like to thank all the my Marketing faculty members at AGBS & the project. . for

enlightening my way whenever any kind of support was required in completion of

TABLE OF CONTENTS

Chapter no. Ch #1.0 Ch #2.0 Ch#3.0 Ch #4.0 Ch #5.0 Ch #6.0 Ch #7.0 Ch #8.0

Subject Executive summary Industry Profile Company profile Critical Review of literature. Research Methodology Findings & Analysis Recommendation Bibliography Annexure

Page no

CHAPTER 1

EXECUTIVE SUMMARY

The topic of the study was Consumer Perception on Fast food Industry with special emphasis to McDonalds. The study has given a way to in depth understanding of the fast food industry in India and how western fast food brands have established themselves going glocal. Indian consumers are very sensitive to cultural issues but the western fast food industry has very tactfully made way in Indian hearts. Research has shown that fast food industries major competitors are house wives as most of the Indians prefer eating at home to outside food. Many consider fast food to be junk food and unhealthy. Thus major challenge for the industry is to build on consumer perception that they provide nutritious food rather than junk food. In East Asian countries it has been seen that 64% of the population eat outside regularly in fast food chains where as in India it is only 31%. McDonalds aims at increasing the consumption of fast food of Indians eating outside from 6.8 times to 12 times in a month. The objectives of the study were to understand the factors that influence

consumer decision-making process w.r.t fast food restaurant industry in India, the strategies adopted by the various players in fast food industry, how well are the fast food brands perceived as and the challenges cum growth opportunities for western brands in India.

The scope of the study covered improving on brand image and growth opportunities for western fast food brands. The sampling unit consisted of Indians eating outside from North and East India. The major findings of this project can be briefed in a few lines as fast food ollows

At last it can be concluded that .

Chapter 2: INDUSTRY PROFILE

Introduction Fast food is the term given to food that can be prepared and served very quickly. While any meal with low preparation time can be considered to be fast food, typically the term refers to food sold in a restaurant or store with low quality preparation and served to the customer in a packaged form for take-out/take-away. Outlets may be stands or kiosks, which may provide no shelter or seating, or fast food restaurants (also known as quick service restaurants). Franchise operations which are part of restaurant chains have standardized foodstuffs shipped to each restaurant from central locations. The capital requirements involved in opening up a fast food restaurant are relatively low. Restaurants with much higher sit-in ratios, where customers tend to sit and have their orders brought to them in a seemingly more upscale atmosphere may be known in some areas as fast casual restaurants. History The concept of ready-cooked food for sale is closely connected with urban development. In Ancient Rome cities had street stands that sold bread and wine. A fixture of East Asian cities is the noodle shop. Flatbread and falafel are today ubiquitous in the Middle East. Popular Indian fast food dishes include vada pav, panipuri and dahi vada. In the French-speaking nations of West Africa, roadside stands in and around the larger cities continue to sellas they have done for generationsa range of ready-to-eat, chat, grilled meat sticks known locally as brochettes.

The Start of Fast Food Culture The concept of fast food pops up during 1920s.The 1950s first witnessed their rapid proliferation. Several factors that contributed to this explosive growth in 50s were: (1) Americas love affair with the automobiles. (2) The construction of a major new highway system. (3) The development of sub-urban communities. (4) The baby boom subsequent to world war second. Fast-food chains initially catered to automobile owners in suburbia. On the go Fast food outlets are take-away or take-out providers, often with a "drive-thru" Service which allows customers to order and pick up food from their cars; but most also have a seating area in which customers can eat the food on the premises. People eat there more than five times a week and often, one or more of those five times is at a fast food restaurant. Nearly from its inception, fast food has been designed to be eaten "on the go", often does not require traditional cutlery, and is eaten as a finger food. Common menu items at fast food outlets include fish and chips, sandwiches, pitas, hamburgers, fried chicken, French fries, chicken nuggets, tacos, pizza, hot dogs, and ice cream, although many fast food restaurants offer "slower" foods like chili, mashed potatoes, and salads. Variants Although fast food often brings to mind traditional American fast food such as hamburgers and fries, there are many other forms of fast food that enjoy widespread popularity in the West. Chinese takeaways/takeout restaurants are particularly popular. They normally offer a wide variety of Asian food which has normally been fried. Most options are some form of noodles, rice, or meat. Sushi has seen rapidly rising popularity in recent times. A form of fast food

created in Japan. Sushi is normally cold sticky rice served with raw fish. Pizza is a common fast food category in the United States, with chains such as Domino's Pizza, Sbarro and Pizza Hut. Menus are more limited and standardized than in traditional pizzerias, and pizza delivery, often with a time commitment, is offered. Fish and chip shops are a form of fast food popular in the United Kingdom, Australia and New Zealand. Fish is battered and then deep fried. The Dutch have their own types of fast food. A Dutch fast food meal often consists of a portion of French fries. Business In the United States alone, consumers spent about US$110 billion on fast food in 2009 (which increased from US$6 billion in 1970). The National Restaurant Association forecasted that fast food restaurants in the U.S. would reach US$142 billion in sales in 2009, a 5% increase over 2008. In comparison, the full-service restaurant segment of the food industry is expected to generate $173 billion in sales. Globalization In 2006, the global fast food market grew by 4.8% and reached a value of 102.4 billion and a volume of 80.3 billion transactions. In India alone the fast food industry is growing by 40% a year. McDonald's is located in 120 countries and on 6 continents and operates over 31,000 restaurants worldwide. KFC is located in 25 countries. Subway has 29,186 restaurants located in 86 countries, Pizza Hut is located in 26 countries, Taco Bell has 278 restaurants located in 12 countries besides the United States.

Health issue Trans fats which are commonly found in fast food have been shown in many tests to have a negative health effect on the body. The fast food consumption has been shown to increase calorie intake, promote weight gain, and elevate risk for diabetes. The Centers for Disease Control and Prevention ranked obesity as the number one health threat for Americans in 2008. It is the second leading cause of preventable death in the United States and results in 400,000 deaths each year. FAST FOOD INDUSTRY IN INDIA INDIA EMERGING MARKET FOR GLOBAL PLAYERS The percentage share held by foodservice of total consumer expenditure on food has increased from a very low base to stand at 6.6% in 2010. Eating at home remains very much ingrained in Indian culture and changes in eating habits are very slow moving with barriers to eating out entrenched in certain sectors of Indian society.. The growth in nuclear families, particularly in urban India, exposure to global media and Western cuisine and an increasing number of women joining the workforce have had an impact on eating out trends. FACTS AND FIGURES Fast food is one of the worlds largest growing food type. Indias fast food industry is growing by 40% a year and is expected to generate a billion dollars in sales by 2009.The multinational segment of Indian fast food industry is up to Rs. 6 billion, a figure expected to zoom to Rs.70 billion by 2010. By 2005, the value of Indian dairy products is expected to be Rs.1, 00,000 million. In last 6 years, foreign investment in this sector stood at Rs. 3600 million which is about one-fourth of

total investment made in this sector. Because of the availability of raw material for fast food, Global chains are flooding into the country. MARKET SIZE & MAJOR PLAYERS a) Dominated by McDonalds having as many as 220 outlets. b) Dominos pizza is present in around 100 locations. c) Pizza hut is also catching up and it has planned to establish 180 outlets at the end of 2010. d) Subways have established around 80 outlets. e) Nirulas is established at Delhi and Noida only. However, it claims to cater 60,000 guests every day. Major players in fast food are: McDONALDS KFC PIZZA HUT DOMINOS PIZZA. COFFEE DAY BARISTA. The main reason behind the success of the multinational chains is their expertise in product development, sourcing practices, quality standards, service levels and standardized operating procedures in their restaurants, a strength that they have developed over years of experience around the world. The home grown chains have in the past few years of competition with the MNCs, learnt a few things but there is still a lot of scope for improvement. REASON FOR EMERGENCE Gender Roles: gender roles are now changing. Females have started working outside. So, they have no time for their home and cooking food. Fast food is an easy way out because these can be prepared easily.

Customer Sophistication and Confidence: consumers are becoming more sophisticated now. They do not want to prepare food and spend their time and energy in house hold works. They are building their confidence more on ready to eat and easy to serve kind of foods Paucity of Time: people have no time for cooking. Because of emergence of working women and also number of other entertainment items. Most of the time either people work or want to enjoy with their family. Double Income Group: emergence of double income group leads to increase in disposable income. Now people have more disposable income so they can spend easily in fast food and other activities. Working Women: working women have no time for cooking, and if they have then also they dont want to cook. Because they want to come out of the traditionally defined gender roles. They do not want to confine themselves to household work and upbringing of children Large population: India being a second largest country in terms of population possesses large potential market for all the products/services. This results into entry of large number of fast food players in the country. Relaxation in rules and regulations: with the economic liberalization of 1991, most of the tariff and non tariff barriers from the Indian boundaries are either removed or minimized. This helped significantly the MNCs to enter in the country. Menu diversification: increase in consumption of pizzas, burgers and other type of fast foods.

CHALLENGES FOR THE INDUSTRY Social and cultural implications of Indians switching to western breakfast food: Generally, Hindus avoid all foods that are believed to inhibit physical and spiritual development. Eating meat is not explicitly prohibited, but many Hindus are vegetarian because they adhere to the concept of ahimsa. Those seeking spiritual unity may avoid garlic and onions. The concept of purity influences Hindu food practices. Products from cows (e.g., milk, yogurt, ghee-clarified butter) are considered pure. Pure foods can improve the purity of impure foods when they are prepared together. Some foods, such as beef or alcohol, are innately polluted and can never be made pure. But now, Indians are switching to fast food that contain all those things that are considered impure or against there beliefs. Some traditional and fundamentalist are against this transformation of food habit and number of times they provoke their counterparts to revolt against such foods. And that is what happened when McDonalds decided to enter the complexity of Indian business landscape, counting only on its fast food global formula, without any apparent previous cultural training. Emphasis on the usage of bio-degradable products: Glasses, silverware, plates and cloth napkins are never provided with fast food. Instead, paper plates and napkins, polyurethane containers, plastic cups and tableware, drinking cartons or PET (polyethylene terephthalate) bottles are used, and these are all disposable. Many of these items are tossed in the garbage instead of being recycled, or even worse, merely thrown on the ground. This burdens nature unnecessarily and squanders raw materials. In order to reduce soil and water pollution, government now emphasis more on the usage of bio-degradable products. .

PROBLEMS OF INDUSTRY Environmental friendly products cost high: government is legislating laws in order to keep check on the fast food industry and it is emphasizing more on the usage of bio-degradable and environment friendly products. But associated with this issue is the problem that fast food player faces - the cost associated with the environment friendly product. They cost much higher than the normal products that companies uses for packaging or wrapping their products. Balance between societal expectation and companies economic objectives: To balance a societys expectation regarding environment with the economic burden of protecting the environment. Thus, one can see that one side pushes for higher standards and other side tries to beat the standard back, thereby making it a arm wrestling and mind boggling exercise. Health related issues: obesity: I. Studies have shown that a typical fast food has very high density and food with high density causes people to eat more then they usually need. II. Low calories food: Emphasis is now more on low calorie food. TRENDS IN INDIAN MARKET Marketing to children's: fast food outlets in India target childrens as their major customers. They introduce varieties of things that will attract the childrens attention and by targeting childrens they automatically target their parents because Childrens are always accompanied by their parents. Low level customer commitment: Because of the large number of food retail outlets and also because of the tendency of customer to switch from one product to other, this industry faces low level customer commitment. Value added technology services: There is continuous improvement in

the technology as far as fast food market in India is considered. The reason behind that is food is a perishable item and in order to ensure that it remain fresh for a longer period of time. Earlier, Indian people prefer eating at home but now with the change in trend there is also need for improvement and up gradation of technology in food sector. Attracting different segments of the market: Fast food outlets are introducing varieties of products in order to cater the demands of each and every segment of the market. They are introducing all categories of product so that people of all age, sex, class, income group etc can come and become a customer of their food line. The success of fast foods arose from the changes in our living conditions: 1. Many women or both parents now work 2. There are increased numbers of single-parent households 3. Long distances to school and work are common 4. Usually, lunch times are short 5. There's often not enough time or opportunity to shop carefully for Groceries, or to cook and eat with one's family. Especially on weekdays, fast food outside the home is the only solution. KFC Business Strategy KFC fast-food chains are currently under the restaurant division of PepsiCo Incorporated. Some major threats include the changing attitudes of society toward healthier eating habits, KFC has more than 9,800 outlets located in 77 countries. In marketing, KFC restaurants are not restricted from locating within close proximity of other KFC restaurants. There are two alternative strategies for KFC. The first strategy involves keeping PepsiCo beverage division and snack foods division together, and a divestiture of PepsiCo restaurant division; selling Taco Bell, Pizza Hut, and KFC.

DOMINOS SIZE OF THE MARKET Domino's Pizza is one of the biggest and fastest growing international food joints in South Asia. The very first Domino's Pizza outlet in India opened in Jan, 1996 at New Delhi. Today, Domino's Pizza India has become a wide network of Pizza delivery and food chain. There are close to 220 outlets in 42 cities of India and the brand is the top most among the food delivery business. Dominos Pizza outlets can be seen at major locations of Delhi and NCR. Their home delivery is free with a guarantee of Thirty Minutes Nahi to Free. Although they are expert in delivering Pizzas on time, their eating joints and outlets are also good. We plan to have a total of 500 stores in 75-80 cities by 2010 to 2011. It would entail an investment of Rs 200 million during the period. MARKET STRATEGIES Promotional and Advertisement Campaigns(Coupons and discounts) The '30 Minutes' Promise Use of Technology(Digital interactive Television, Internet on the PC, Mobile telephony) Premium Pricing Strategy Indian fast food industry and entry of multinational players Distribution strategies of fast food chains in India MC Donalds McDonald's is the leading global foodservice retailer with more than 31,000 local restaurants serving more than 58 million people in 118 countries each day. More than 75% of McDonald's restaurants worldwide are owned and operated by independent local men and women. The strong foundation that he built continues today with McDonald's vision and the commitment of our talented executives to keep the shine

on McDonald's Arches for years to come. To read more about McDonald's history, vision and executives, click on their links in the left menu. We drive our business momentum by focusing on what matters most to customers. Our owner/operators, suppliers and employees work together to meet customer needs in uniquely McDonald's ways. The powerful combination of entrepreneurial spirit and System wide alignment around our Plan to Win enables us to execute the best ideas with both large-scale efficiency and local flair. Advertising McDonald's has for decades maintained an extensive advertising campaign. In addition to the usual media (television, radio, and newspaper), the company makes significant use of billboards and signage, sponsors sporting events ranging from Little League to the Olympic Games, and makes coolers of orange drink with their logo available for local events of all kinds. Nonetheless, television has always played a central role in the company's advertising strategy. To date, McDonald's has used 23 different slogans in United States Advertising, as well as a few other slogans for select countries and regions. At times, it has run into trouble with its campaigns. BARISTA Barista coffee was establishes in 1999 with the aim of identifying growth opportunities in the coffee business. Increasing disposable incomes and global trends in coffee indicate immense growth potential in one particular segment. Barista Coffee is a chain of espresso bars in India. Headquartered in Delhi, Barista currently has espresso bars across India, Sri Lanka and the Middle East. It was founded in 1997 by Amit Judge and was part of his group of companies. He sold part of the equity to first Tata Coffee. Then after he and Tata Coffee fell apart, Sterling then bought over the firm. In 2007, Sterling divested all their stake to

Lavazza. Barista Coffee Company is currently owned by Lavazza, Italys largest coffee company. CAF COFFEE DAY Caf Coffee Day is a chain of coffee shops in India having its headquarters in Chikkamagaluru, Karnataka. A division of Amalgamated Bean Coffee Trading Company Ltd. (ABCTCL), it is commonly known as Coffee Day or CCD. It opened its first cafe in 1996 on Brigade Road in Bangalore, and today has the largest cafe retail chain in India with over 800 cafes in 112 cities. Large number of coffee day cafes are located in Bangalore. The cafe chain has had much success riding, and to some extent creating, the cafe culture wave that swept across metropolitan India following strong economic growth resulting in an increase in youth spending power. It has even tied up with World Space and Micro sense to enable its cafes with satellite radio and Wi-Fi, respectively. Its first Wi-Fi cafe was opened on Lavelle Road, Bangalore.

Chapter 3:

COMPANY PROFILE

_________________________________________________________________ McDonald's opened its doors in India, the 95th country, in 1996 and was the first country to serve non-beef and non-pork items. Its authority on non-beef and nonpork products still remains unchallenged. Ownership; McDonalds India is a locally owned company managed by Indians

McDonalds is a joint venture managed by

Vikram Bakshi, under Connaught Plaza Restaurants Pvt. Ltd in Northern and Eastern Region (Headquartered in New Delhi) Amit Jatia, under Hard castle Restaurants Pvt. Ltd. in the Western and Southern Region (Headquartered in Mumbai)

McDonalds Philosophy; McDonalds philosophy of QSCV (Quality, Service, Cleanliness and Value) is the guiding force behind its service to the customers in India

Vendor Development; McDonalds spent more than 5 years (from 1990 onwards) on developing the first beef-less and pork-less menu in McDonalds history. McDonalds pioneered the establishment of Cold Chain across India which helps maintain freshness and nutrition in every product The Scorecard; The first McDonald's restaurant in India opened on October 13, 1996 at Basant Lok, New Delhi Today, McDonalds has 211 restaurants operating in India serving over 5, 00,000 customers everyday and has completed more than 10 years of unparalleled in the country.

Every McDonalds burger has nine different ingredients, which are sourced, from 35 suppliers across the country before it reaches the consumer

McDonalds practices Vegetarian and Non-Vegetarian Segregation right from processing to serving and uses 100 per cent vegetable cooking oil

The Happy Price Menu competitively priced at Rs.20 was unveiled in April 2004 McDelivery, McDonalds Home Delivery Service was successfully launched in April, 2004

McAloo Tikki, Veg Surprise and Pizza McPuff developed in India are now being exported to the countries in the Middle East McDonalds introduced Cokes Georgia Gold range of hot beverages which was developed especially for the Indian market in 2002 As a leader in QSR segment (Quick Service Restaurant) McDonalds has pioneered various industry benchmark practices over the past decade of serving Indian customers, including new concepts such as o Oil Alliances in India by inking with petroleum giants BPCL and HPCL. The two such alliances with BPCL outlets are in Mathura (2000) (UP) and Doraha (2002) (Punjab) o Novel menu formats such as an Express Model with a limited menu and Kiosks with a variety of dessert offerings o Home Delivery (McDelivery): Providing even more convenience to our customers. In Oct 2006, McDelivery on bicycle at Chandni Chowk was

launched and in March 07 an all India single delivery number (66 000 666) was introduced
o First Drive Thru Restaurant at NOIDA (UP) in 1997

o First Restaurant with operational Kitchen at Delhi Domestic Airport

Accolades McDonalds India has received many prestigious awards for its service and performance including:

The Most Respected Company for four consecutive years (2003-2006) in

the Food Services sector, by Business world

The Most Preferred Fast Food Outlet 2006 & 2007 by Awaaz Consumer

Award hosted by CNBC

Star Retailer the Consumer Way, Food Services Retailer of the Year

2006 & 2007, 2008 by Franchise India

Retailer of the Year Award for catering services (2004-2006) at the

Images Retail Awards

The Most Wanted Brand of the Year Award 2003 & 2004 by

Franchising Holdings India Ltd.

The Most Admired F & B Retailer of the Year: QSRs Foreign Origin

The Golden Spoon Awards by Images Retail

The Company with the Best Corporate Conscience 2008 by Business &

Economy

Value for Money brand 2010 by Pitch Magazine The most trusted family restaurant brand in the country award in 2010

by Readers Digest.

McDonalds International

McDonalds has over 32,000 local restaurants in more than 100 countries 70 percent of our restaurants worldwide are owned and operated by independent, local businessmen and businesswomen

McDonalds serves nearly 50 million customers each day McDonalds first franchised restaurant opened at Des Plaines, Illinois in 1955 by the founder Ray Kroc

McDonalds has its own Hamburger University in Illinois, and the first batch graduated in 1961

12 classes offered at Hamburger University are college accredited In 1963, McDonalds sold its one billionth hamburger McDonalds is listed on the New York, Frankfurt, Munich, Paris and Tokyo stock exchanges

McDonalds aired its first network TV advertisement McDonalds - Where Quality Starts Fresh Everyday, in 1965

The first McDonalds Drive-Thru opened in Sierra Vista, Arizona in 1975 Happy Meals were added to McDonalds menu in 1979 McDonalds launched the new worldwide Balanced Active Lifestyles public awareness campaign in 2005

McDonalds celebrated its 50th Anniversary on April 15, 2005

McDonalds Role in the Indian Economic Growth In 1990, six years before the opening of the first McDonald's restaurant in India, McDonalds and its international supplier partners worked together with local Indian companies to develop products that meet McDonald's vigorous quality standards. These standards also strictly adhere to Indian Government regulations on food, health and hygiene. Part of this development has involved the transfer of state-of-the-art food processing technology, which has enabled Indian businesses to grow by improving their ability to compete in today's international markets.

Prior to McDonalds arrival in India, the concept of a Cold Chain for the distribution of food and dairy products from the farm to the end supplier in predetermined and stringently enforced climactic and hygienic conditions was at a very nascent stage of development. For five years prior to opening the first restaurant, McDonalds pioneered the effort to develop this aforementioned Cold Chain so that trademarked high standards would be assured. This concept has today been adopted by various Indian and International players to deliver quality produce to consumers.

For instance, Cremica Industries worked with another McDonald's supplier from Europe to develop technology and expertise, which allowed Cremica to expand its business from baking to also providing breading and batters to McDonald's India and other companies. Another benefit is expertise in the areas of agriculture, which allowed McDonalds, and its suppliers to work with farmers in Ooty, Pune, Dehradun and other regions to cultivate high quality Iceberg lettuce. This includes sharing advanced agricultural technology and expertise like utilization of drip irrigation systems, which reduce overall water consumption, better seeds & agricultural management practices, which result in greater yields.

In some cases, these Indian suppliers had the technology - but no market for the products they produced. For example, Dynamix Dairies - through its relationship with McDonald's - was introduced to a large customer of milk casein and other milk derivatives. McDonald's local supply networks through Radhakrishna Foodland, to get products from the various suppliers to restaurants across India.

McDonalds North India alone contributes Rs.30.7crore (USD 7.76 million)/annum approximately as sales tax to different State Governments where we have our operations. The McDonalds Promise
QUALITY, SERVICE, CLEANLINESS & VALUE

When asked to explain McDonald's success, founder Ray Kroc used to say, "We take the hamburger business more seriously than anyone else."

Kroc was a perfectionist. From the day he opened his first restaurant, he vowed to

give his customers high quality products, served quickly --and with a smile, in a clean and pleasant environment, and all at a fair price. business. QUALITY McDonald's India serves only the highest quality products. The attention to food quality started long before the first restaurant opened. McDonald's India has established close relationships with local suppliers who provide McDonald's with the highest quality, freshest ingredients to make its products. All suppliers adhere to Indian government regulations on food, health and hygiene while continuously maintaining McDonald's own recognized standards. McDonald's has established an extensive "cold chain" distribution system in India to ensure that the products, which arrive at the restaurant from suppliers all over India, are absolutely fresh. In the restaurants, products and supplies are used on a "first-in, first-out" basis to ensure freshness. safety. SERVICE McDonald's India provides fast, friendly service -- the hallmark of McDonalds, which sets its restaurants apart from others. At McDonald's, the customer always comes first. Every employee strives to provide 100 percent customer satisfaction -for every customer -- every visit. This includes friendly and attentive service, accuracy in order taking, and anticipation of customer's needs -- such as napkins or straws. The McDonalds promise is With a sense of fun and youthful spirit, we will proudly serve an exceptional McDonalds eating experience that makes all people feel special and makes them smile every customer, every time. All McDonald's products are prepared using modern, state-of-the-art cooking equipment to ensure quality and Quality, Service, Cleanliness and Value (QSC&V) became the philosophy that drove McDonald's

CLEANLINESS McDonald's restaurants provide a clean, comfortable environment especially suited for families. McDonald's stringent cleaning standards ensure that all tables, seating, highchairs and trays are sanitized several times each hour. The attention to cleanliness extends from the lobby to the kitchen to the sidewalk and immediate areas outside the restaurant. In addition to urging customers to dispose of their litter properly and offering a number of trash bins (both inside and outside the restaurants) for their convenience, McDonald's "Litter Patrols" walk around the restaurants several times each day picking up litter -- even if it isn't from McDonald's. Restaurant managers walk through the dining areas each hour, to ensure that it is clean and well stocked. All restaurants provide a variety of comfortable seating arrangements to accommodate anyone -- from a single individual to a large family. The environment is warm, inviting, and well lit. VALUE McDonald's menu is priced at a value that the largest segment of Indian consumers can afford. McDonald's does not sacrifice quality for value -- rather McDonald's leverages economies of scale to minimize costs while maximizing value to customers. McDonald's definition of value is broader than most restaurants of its kind -- it is more than price. Value at McDonald's is the sum of the total McDonald's experience: quality food; fast, friendly service; a clean and pleasant environment, and products priced at very affordable prices for the largest segment of Indian consumers possible. That is value at McDonald's.

McDonalds India Culturally Sensitive Indianisation of Menu With the opening of the first McDonalds restaurants in India- there is much that is consistent with other McDonalds restaurants around the world, such as the quality of the food and the attention to service. The dedication to local cultures is not new for McDonalds. For the past 50 years, McDonalds has opened restaurants in more than 120 distinctly different countries and cultures. With guidance from its local partners, McDonalds is able to adaptwhere necessary-its menu and restaurant operations to complement existing eatingout options. McDonalds local owners understand what their customers want perhaps more importantly, what is acceptable within local customs and values. There is much, too, that is very different- such as the first beef-less and pork-less menu in the world and special product formulations to cater to Indian culture and palate. Vikram Bakshi, the joint venture partner for McDonalds India, says We know the Indian culture, because we were born in it, inherited its richness, and respect it greatly. It is the respect for this culture and the sentiments of many of our customers, that we do not serve any beef and pork items in our restaurants. McDonalds commitment to its Indian customers is evident even in development of special sauces that use local spices and chilly. The mayonnaise and all other sauces are egg-less. In India, vegetarianism is in many cases more than a lifestyle choice. Many people are vegetarians due to religious reasons, and in some cases even the vegetarian product that has come into contact with a non-vegetarian product is unacceptable. Hence, McDonalds India has also changed its operations to address the special requirements of our vegetarian customers by having processes that ensure that a physical separation of veg and non-veg products is maintained right from farm to

the customer. Vegetable products are prepared separately, using dedicated equipment and utensils. Also in India, McDonalds uses only vegetable oil as a medium for cooking. Every Day Great Value at McDonalds McDonalds worldwide stands for QSC&V, where the V stands for value and therefore the value propositions assumes special significance. Explaining this, Mr. Vikram Bakshi Managing Director and JVP, McDonalds India, (North and East) says McDonalds success has been built on commitment to the delivery of QSC&V (quality, service, cleanliness and value) to customers, the expansion of restaurant numbers to improve convenience and large scale investment in supplier development, training and people. Getting QSC&V right consistently and overwhelming appreciation of value keeps our customers satisfied and maintains our competitive edge. Value as the Corner Stone of McDonalds Strategy The value initiative at McDonalds is all pervasive. Our strategy is to achieve best value by enhancing experience (offering best quality), while keeping prices reasonable. This applies to products we serve to our customers and to every other aspect of the way we do business. At McDonalds, costs are kept low by increasing efficiency and cutting wastage at all levels. This is possible by advanced operations, management and human behaviour skills tested over time in 120 countries across the world. It is important to understand that delivering highest quality doesnt come easily. Customers, who walk into a McDonalds restaurant, expect to be served food that is hot and fresh, made from high quality ingredients, served within minutes of placing their order and at a price which is affordable. Such is the strength of the

brand that they rely on McDonalds to do all this, without thinking about how it is actually achieved every day every time. McDonalds has always believed in providing value to the customer. McDonalds menu has always been priced at a value that the largest segment of the Indian consumers can afford. McDonalds does not sacrifice quality for value rather McDonalds leverages economies to minimize costs while maximizing value to customers McDonalds embarked on a Branded Affordability programme - a special value offer, for the customer, with the objective of offering consumers products at an attractive price point. The Branded Affordability programme is not a discount or a price promotion. It is more on the lines of providing products to the customer that are very affordable. McDonalds Value Offerings Though all McDonalds food products offer tremendous value, we continually review and improve our menu offerings to make sure that we not only meet our customers expectations, but also exceed them. Being affordable to the largest number of customers is a driving force in our value strategy. Branded Affordability The branded affordability programme was rolled out with the introduction of the soft serve cone, a product with universal appeal, was offered to the customer at an unbeatable price of Rs 7/-, starting May 1998. Soon after, McDonalds India introduced the Econo meals at an attractive price point of Rs. 29/-, Rs. 39/- & Rs. 49/- to add to basket of offerings.

McDonalds had further reinforced the branded affordability mantra via the introduction of the Happy Price Menu attractively priced starting at Rs. 20/-. Happy Price Menu includes the McAloo Tikki Burger, Veg Pizza McPuff, Chicken McGrill, Ice-Tea and Small Soft Serve. McDonalds Cold Chain in India McDonald's India is characterized by a unique sense of dedication and commitment to be driven by the leadership of local owners. This commitment has translated into enduring benefits to the businesses at the grass root level, in the areas of introduction of new crops, new agricultural practices and food processing methods and procedures. McDonald's unique 'cold chain', on which the QSR major has spent more than six years setting up in India, has brought about a veritable revolution, immensely benefiting the farmers at one end and enabling customers at retail counters get the highest quality food products, absolutely fresh and at great value. Setting up this extensive cold chain distribution system has involved the transfer of state-of-the-art food processing technology by McDonald's and its international suppliers to pioneering Indian enterprises, which are today an integral part of the McDonalds cold chain.
SWOT ANALYSIS

Strengths

McDonalds has built up huge brand equity. It is the No. 1 fast-food company by sales, with more than 31,000 restaurants serving burgers and fries in almost 120 countries. Sales, 2007 (11,4009 million), 5.6% sales growth. Good innovation and product development. It continually innovates to retain customers in the business.

The McDonalds brand offers consumers choice, reasonable value and great service Large amounts of investment have gone into supporting its franchise network, 75% of stores are franchises. Loyal staff and strong management team.

Weaknesses

Core product line out of line with the trend towards healthier lifestyles for adults and children. Product line heavily focused towards hot food and burgers. Seasonal Quality issues across the franchise network.

Opportunities

Joint ventures with retailers (e.g. supermarkets). Consolidation of retailers likely, so better locations for franchisees. Respond to social changes - by innovation within healthier lifestyle foods. Its move into hot baguettes and healthier snacks (fruit) has supported its new positioning. Use of CRM, database marketing to more accurately market to its consumer target groups. It could identify likely customers (based on modelling and profiles of shoppers) and prevent brand switching. Strengthen its value proposition and offering, to encourage customers who visit coffee shops into McDonalds. The new formats, McCafe, having Wifi internet links should help in attracting segments. Also installing childrens play-parks and its focus on educating consumers about health, fitness. Continued focus on corporate social responsibility, reducing the impact on the environment and community linkages. International expansion into emerging markets of China and India.

Threats

Social changes - Government, consumer groups encouraging balanced meals, 5 a day fruit and vegetables. Focus by consumers on nutrition and healthier lifestyles. Competitive pressures on the high street as new entrants offering value and greater product ranges and healthier lifestyles products. E.g. subway, supermarkets, M&S. Recession or down turn in economy may affect the retailer sales, as household budgets tighten reducing spend and number of visitors.

CHAPTER 4

CRITICAL REVIEW OF LITERATURE

Previous Research on fast food Industry has shown us a light in this project:
The exploratory Study conducted by Anita Goyal and N.P.Singh on the

topic of Consumer perception about fast food in India: The Purpose of the study was to estimate importance of various factors affecting the choice of fast food outlets by Indian young consumers. The Methodology includes statistical tools to estimate importance of various factors affecting the choice of fast food outlets by Indian young consumers. In addition, the authors analysed the consumption patterns, impact of hygiene and nutritional values, and rating of various attributes of McDonald's and Nirula's. The Findings by the study indicate that the young Indian consumer has passion for visiting fast food outlets for fun and change but home food is their first choice. They feel homemade food is much better than food served at fast food outlets. They have the highest value for taste and quality (nutritional values) followed by ambience and hygiene. Three dimensions (service and delivery dimension, product dimension, and quality dimension) of fast food outlets' attributes are identified based on factor analysis results. The two fast food outlets' rating differs significantly on the seven attributes. McDonald's scores are higher on all attributes except variety. Further, consumers feel that fast food outlets must provide additional information on nutritional values and hygiene conditions inside kitchen. The Practical implications of Fast food providers need to focus on quality and variety of food besides other service parameters. There is need to communicate the information about hygiene and nutrition value of fast food which will help in building trust in the food provided by fast food players. The Value Estimates importance of various factors affecting the choice of fast food outlets by Indian young consumers.

The Study conducted by R.V. Sudershan , Pratima Rao and Kalpagam Polasa on topic of Fast Food consumption and growth opportunities in India The researchers concluded that with growing international trade, food safety has emerged as an important global issue. The present research was an attempt to study the food safety research in India in the past ten years during 1998-2008. Many studies were focused on detection of pathogenic microorganisms, adulterants and contaminants in food. However, there is a striking paucity of reliable data on important issues like evaluation of risks through adulterants, additives and contaminants. Consequently, the protection of diets from these hazards must be considered one of the essential public health functions of any country, which emphasizes the need for total diet studies. The Methodology include the status of food safety research in India was reviewed by assessing data published in journals, websites and published data from universities in the form of doctoral theses and dissertations at the post-graduate level. For this, literature for the years 1995-2005 was reviewed. The studies that were included for this review were those with a representative sample size and carried out by scholars studying in well-reputed universities, doctoral theses, original research articles in peer reviewed journals, annual reports of research organizations and institutions. Qualitative reviews were reviewed in similar topics and the results were tabulated and compared to get a better understanding of the research carried out in these issues. The findings by researchers Health Risk( probability of an adverse event of diarrhea),Hazard Identification: (pathogens, adulterants, contaminants and their health effect),Industrial food safety(existing laws, standards, sanitation and hygiene practices, specific hazards),Hazard Exposure Assessment(how much people eat, what food they consume and where they consume.),Consumer Behaviour ( hand washing, hygiene.)

The Study conducted by Mark D. Jekanowski on topic Causes and Consequences of Fast Food Sales Growth, January1999. Concluded that in todays hectic lifestyles, timesaving products are increasingly in demand. Perhaps one of the most obvious examples is fast food. Today the demand for the, hectic lifestyles, timesaving products are increasingly. Obliviously one of the examples is Fast Food Industry. The rate of growth in consumer expenditures on fast food has led most other segments of the food-away-from home market for much of the last two decades. Since 1982, there is growth rate in consumer spending at fast food. The consumers spent at fast food outlets grew at an annually he proportion of away-from-home food expenditures on fast food also increased. Everyone eats Fast Food even knowing that it is not healthy for them. Reasons are because of speed, convenience and price. However, fast food has many hidden costs, including the high price of bad health. Not to mention the fact that for such cheap food, you're actually being overcharged by a big amount. So the real reason is not price, but convenience. You can get much cheaper food by cooking for yourself, but you are not always at home to do the cooking, or you do not always feel like cooking. Brown, McIlveen and Struggnel (2000) examined the nutritional awareness and food preferences among young consumers. They suggest that young consumer decisions regarding food preferences are influenced by nutritional awareness knowledge. This knowledge is acquired within the home, school and social environments. They also put forward that education plays important role regarding healthy eating.

Schiffman and Kanuk, 2004 ,The consumer decision to purchase or not to purchase the product is crucial for marketers. It can signify whether the marketing strategy has been wise, insightful, and effective, or whether was poorly planned and missed the mark. Hence marketers are particularly interested in such process. Schiffman and Kanuk, 2004 Verbeke (2005) recognizes that at any point in time throughout the decisionmaking process, judgements and choices are affected by a variety of stimuli from environment as well as by internal process and characteristics form the consumers themselves. Based on earliest presented models of consumer behaviour towards food (Pilgrim, 1957, cited by Verbeke, 2005) and on a review of factors affecting food acceptance and behaviour (Shepherd, 1990, Steenkamp, 1997, cited by Verbeke, 2005) proposed a classification with three types of influencing factors: environmental factors, person-related factors and properties of the food. Schroeder and McEachern (2005),in these research he analysed the impact of McDonalds and KFCs corporate social responsibility (CSR) on consumers purchasing behaviour, authors propose that purchases of fast food are mostly impulsive, hence suggesting relatively low-involvement in each case. Lye et al. (2005), in their study of consumer decision models, advocate that the complexity of consumer decisions is increasing. We have limited understanding of the decision process and the models are inadequate at predicting decision outcomes. Hence the current models, they argue, are out of date and insufficient in providing the desired outcome. Nevertheless, the decision-making process model will provide the author and the reader with general overview and understanding of factors influencing on consumers purchasing behaviour.

Thus we attempt to identify and focus, along with the attitudes, on the sociocultural part of the consumer decision-making process, i.e. impact of communication and information from mass media i.e publicity of fast food Consumer attitude formation change Freiden and Henderson ,(1997) investigated the impact of social values on food related attitudes, recognize that marketers, consumer psychologists and public policy makers have an interest in the personal and social values of consumers as these deeply held feelings of what is important in life influence both consumer attitudes and behaviour. Reflecting desired end states or ways of living, values might in part represent some of the fundamental motives that drive and direct the consumer behaviour. Homer and Kahle 1988, cited by Goldsmith, Freiden and Henderson (1997) suggest that the influence of values may not be limited just to high- involvement areas, but may also be relevant to less involving product fields such as food Nielsen, Jongen and Meulenberg (1998 ),studied understanding of the factors that determine consumer perception/attitudes of a products value or cost is of crucial importance to an industrys product innovation, choice of marketing and communication strategy and maintenance of competitive advantage. Baltas (2001), acknowledge that the nature of fast food production and processing is becoming more important to consumer. Jobbers (2002) identifies the concept of influences on consumer purchasing behaviour among which he points out the level of purchase involvement as one of the factors that influences the consumer decision-making process. Identifies the concept of influences on consumer purchasing behavior among which he points out

the level of purchase involvement as one of the factors that influences the consumer decision-making process. (CSR) on consumers purchasing behavior relatively low-involvem ent in each case. Harper and Makatouni (2002) note that ethical production in terms of animal and human welfare and environmental protection are of greatest importance. Mohr et al. (2002) recognize that information regarding firms ethical behaviour is thought to influence product sales and consumers overall image of a company. Mohsin, (2003).While it is generally accepted that a positive relationship exists between service quality and customer satisfaction, there is debate with proposals of a causal link from customer satisfaction to service quality, service quality to customer satisfaction Viaene (2003) investigated consumers beliefs, attitudes and purchase intentions with regards to genetically modified food. Attitudes towards GM food are determined by perception of risk and benefits. When perceived risk is high, that influence negatively on consumers purchase intention. That might be linked to fast food as well, as eating fatty food may be risky of suffering obese related diseases. Verbeke (2005), who examined the influences on consumer decision-making process towards fresh meat, the hierarchy of effects indicates the different mental stages that consumer must go through when making buying decision and responding to marketing or non-commercial messages. In our instance, where the attitude object is fast food, plus taking into account that fast food is considered to be low involvement product, the low involvement hierarchy of effects would occur. , authors propose that purchases of fast food are mostly impulsive, hence suggesting

Ajzen (2009) the attitudes are the first determinant of behavior intention. In consumer behavior context attitude is a learned predisposition to behave in a consistently favorable or unfavorable way with respect of a given object. Most researchers agree that attitudes consist of three components: Affect (consumers emotions and feelings about the attitude object), Behavior (intention to do something with regard to an attitude object) and Cognition (believes a consumer has with an attitude object).

CHAPTER 5

RESEARCH

METHODOLOGY

METHODOLOGY It is the section of a research proposal in which the methods to be used are described. The research design, the population to be studied, and the research instruments, or tools, to be used are discussed in the methodology. MARKETING RESEARCH Definition of marketing research is by the board of the American Marketing Association (AMA) is: Marketing research is the functions which links the customer and public. To marketer through information used to identity and define marketing. Opportunities and problems; generate define and evaluate, marketing actions, monitor marketing performance, and improve understanding of Marketing as a process. Simply, marketing research is the systematic design, collection, analysis and Reporting of the data findings relevant to a specific marketing situation facing the company. Careful planning through all stages of the research is a necessity. A research may undertake any of three types of research investigations depending upon the problem. These three types of research included. Basic research Applied research Designated fact gathering

Aim of the project:To have an overview of the perception of Indian consumers regarding McDonalds.

2.1Primary objectives:

To judge consumer perception on McDonalds.

To find out top of mind awareness regarding QSR.

To evaluate performance of WFF (western fast food joint).

To have a better understanding of customer expectations.

To understand the factors that

influence consumer decision-making

process w.r.t fast food restaurant industry in India.

2.2 Hypothesis:-

1. Ho: There is a relationship between age group and average cost per sitting. 2. Ho: There is a significant relation between age group and fast food preference.

2.3 Research Design: The research design selected is exploratory design. Method of Data Collection The data was collected through primary source by questioning the consumers with the help of questionnaire prepared. Secondary data was collected by companys website and MIS reports and research data by Chrome Cube.

Instruments Used A Questionnaire was prepared to collect data from the sampling unit. Questionnaire was designed with both close ended and open ended questions. Also personal interaction and interviews have facilitated to understand the consumer perception about the brand. 2.4 Sample Design:Universe :- Consists of Indians eating outside who form the sampling unit. Sample size: - 100 consumers who are regular visitors of fast food joints. Sampling design: - Chosen was Convenience sampling 2.5 Scope of the study: Growth opportunities Strategic advantage on brand building.

Collection of information Data collection phase is generally the most expensive and the most phase to error. Carry out the field work, collect data using the instruments, adjust the problem of not at homes, replaced, refusal to co-operate, biased or dishonest answers. 2.6 Data collection The information needed to further proceed in the project had been collected through primary data and secondary data. 2.7 Primary data Primary data consists of information collected for the specific purpose at hand for the purpose of collecting primary data, survey research was used and 100 Indians

eating outside regularly were contacted. Survey research is the approach best suited gathering description. A questionnaire having both open a close ended question was prepared for the survey conducted. 2.8 Secondary data The secondary data consists of information that already exists somewhere, having been collected for another purpose. Any researcher begins the research work by first going through the secondary data. Secondary data includes the information available with the company. It may be the findings of research previously done in the field. Secondary data was collected from magazines, newspapers, other surveys conducted by known research agencies etc. 2.6Limitations:-

o The demanding nature of human being is unpredictable; the responses may not yield 100 percent. o Time was one of major constraints; the research had to be limited within the given parameter. o The study was restricted to the geographic boundary of Delhi NCR and Kolkata.

CHAPTER 5 Table 4.1

FINDINGS AND ANALYSIS

Representing age group of respondents

Age group Below 20 yrs 21-25 yrs 26-30 yrs Above 30 yrs Chart 4.1 Respondents 25 30 35 10 Percentage 25% 30% 35% 10%

Representing age group of respondents.

Analysis: 35% of the respondents fall under the age group 26-30 yrs, followed by 30% between 21-25 yrs and 25% below 21yrs. A small chunk of 10% of respondents was above 30yrs of age.

Table 4.2 Representing frequency of visits at fast food outlets

Frequency of visits Once a week Twice a week Once in a month Chart 4.2

Respondents 37 33 30

Percentage 37% 33% 30%

Representing frequency of visits at fast food outlets.

Analysis: 37% of people visit fast food joints once in a week, 33% twice in a week and 30% visit the same only once in a month.

Table 4.3

Representing preference of fast food during particular time of a day. Timings Before 11 am 11 am- 2 pm 2pm- 6pm 6 pm -10pm After 10 pm Chart 4.3 Representing preference of fast food during particular time of a day. Respondents 8 21 34 36 2 Percentage 8% 21% 34% 36% 2%

Analysis: 36% of the people prefer to visit fast food joints between 6pm -10 pm followed by 345 between 2pm-6pm .Least preference is seen to visit fast food joints after 10pm. Table 4.4 Representing occasions that attract consumers to consume fast food. Occasions Respondents Percentage

Birthdays Friends parties Business meetings Dates For fun Just to eat something Chart 4.4

10 5 5 35 10 40

10% 5% 5% 35% 10% 40%

Representing occasions that attract consumers to consume fast food.

Analysis: 40% of people visit fast food joints whenever they feel like to have something, 35% prefer fast food joints for dating purpose and 10% visit fast food joints for fun and at birthdays.

Table 4.5 Representing reasons behind preference of fast food

Reasons It is easily available and quickly served It is value for money Tasty Serves as anytime snacks Chart 4.5

Respondent s 40 20 10 30

Percentage 40% 20% 10% 30%

Representing reasons behind preference of fast food.

Analysis: 40% of people prefer fast food as it is easily avilable and quickly served, 30% prefer it as it serves as anytuime snacks and 20% for the value for money factor.

Table 4.6 Representing reasons behind visit to fast food joints

Reasons Fun place to be in Good for get together Place to be with family Kids prefer to be there Chart 4.6

Respondents 50 20 10 20

Percentage 50% 20% 10% 20%

Representing reasons behind visit to fast food joints

Analysis: 50% of the people visit fast food joints as it is a fun place to be in followed by 20% who prefer to visit fast food joints as kids prefer and it is a good place for get together.

Table 4.7 Representing drivers towards fast food joints.

Drivers Taste of food Quality of food Ambience Value for money Time savvy Convenience Chart 4.7

Respondent s 5 5 5 25 20 40

Percentage 5% 5% 5% 25% 20% 40%

Representing drivers towards fast food joints.

Analysis: 40 % of the respondents are driven by convenience to fast food joints followed by 25% for value for money and 20% for time savvy factor.

Table 4.8

Representing preference of eating outside. Preference Street food Family dining out place Indian fast food stalls Western fast food joints Chart 4.8 Representing preference of eating outside . Respondents 20 20 20 40 Percentage 20% 20% 20% 40%

Analysis : 40% of people prefer eating out in western fast food joints rest other options of eating outside are preferred by 20% each.

Table 4.9 Representing healthier food option.

Food options Fast food Home made food both Chart 4.9

Respondents 0 100 0

Percentage 0% 100% 0%

Representing healthier food option.

Analysis: 100% of the people find home made food as only an option for healthy food.

Table 4.10 Representing amount of money customers are willing to pay on fast food

Amount of money Less than 100 Rs. 100- Rs. 250 Rs. 250 and above Chart 4.10

Respondents 48 38 14

Percentage 48% 38% 14%

Representing amount of money customers are willing to pay on fast food.

Analysis: 48% of the respondents are willing to pay less than Rs.100 for fast food, 38% would pay between Rs. 100- Rs.250. Rest 14% would pay Rs. 250 and above.

Table 4.11 Representing favorite product at McDonalds.

Product Maharaja Mac Mc veggie Mc chicken French fries McGrill Mc Shakes Mc Aloo tikki McSpicy Chart 4.11

Respondents 20 5 5 20 5 5 30 10

Percentage 20% 5% 5% 20% 5% 5% 30% 10%

Representing favorite product at McDonalds.

Analysis: 30% of the respondents like Mc Aloo Tikki, followed by 20% who like Maharaja Mac and French fries.10% of them have also voted the new product Mc Spicy as their favorite. Table 4.12 Representing views on Mc Donalds Food. Hot n Responde
Taste Responde Variety Responde Price Responde

fresh nts Mother 's kitchen 40 40 hostel mess 10

nts

nts

nts

Yum my Funn y

60 40 0

Hazaar Not again Yaar

5 45 40

not 2 much let's go dutch

60 40 0

Chart 4.12 Representing views on Mc Donalds Food.

Analysis:-Majority has voted for best price, best taste. In terms of food being served Hot N fresh it has got majority in best and moderate. But variety seems to be not much in McDonalds menu. Table 4.13 Representing areas that need improvement in McDonalds. Areas Respondents Percentage

Delivery Time Capaciousness Product Variety Prices Offers and discount Chart 4.13

35 35 20 5 5

35% 35% 20% 5% 5%

Representing areas that need improvement in McDonalds.

Analysis: 35% of people say delivery time and capaciousness needs improvement in McDonalds. 20% feel product variety is something to be focused on for improvement.

Table 4.14 Representing what strikes consumer mind when they think of McDonalds.

Image Burger Value for money fun service Golden arches Chart 4.14

Respondents 50 20 10 0 20

Percentage 50% 20% 10% 0% 20%

Representing what strikes consumer mind when they think of McDonalds.

Analysis: 50% of the respondents relate McDonalds to burger 20% think of value for money and golden arches when it comes to McDonalds

Table 4.15

Representing what clicks consumer mind while choosing a particular restaurant Reason Proximity Taste Budget Ambience Chart 4.15 Representing what clicks consumer mind while choosing a particular restaurant Responde nts Percentage 40 40% 30 30% 20 20% 10 10%

Analysis:- 40% think of proximity while choosing a restaurant, 30% for taste and 20% also think of budget while choosing a restaurant.

Table 4.16 Representing factors that attract consumer to McDonalds. Factor Price Food Ambience Others Chart 4.16 Representing factors that attract consumer to McDonalds Respondents 50 35 15 0 Percentage 50% 35% 15% 0%

Analysis: 50% of the respondents are attracted to McDonalds for the price, 35% for food and rest 15% because of ambience.

Table 4.17 Representing rating of McDonalds on various factors. Ambience Respondents Dcor Respondents Airline 30 Inviting 40 70 60 Blueline 0 Frightening 0 Chart 4.17 Value For money Happy Left broke Respondents 70 30 0

Representing rating of McDonalds on various factors.

Analysis: Majority has rated ambience as best in McDonalds and it is perceived to be brand for value for money by 70% of the people. Dcor is being rated as moderate by majority. Table 4.18 Representing service quality of McDonalds Service Quick Ferrari Respondents Impressive Respondents Complete 60 Gold 40 All there 40 60 Respondents 50 50

Anari Chart 4.18

0 Cold

what when 0 where

Representing service quality of McDonalds.

Analysis: - 60% of respondents have rated McDonalds best in quick service, moderate in Impressive service while 50% have voted for complete service. Hypothesis 1 Ho: There is a significant relationship between age group and average cost per sitting.
Table 4.19 Relation between Age Group and Average Cost per sitting

average cost per sitting * age Cross tabulation Age below 20 Count less than Rs 100 % within age Count % within age Count over Rs 250 % within age Count Total % within age 10 21% 14 37% 1 7% 25 25% 21-25 15 31% 12 32% 3 21 % 30 30% 26-30 21 44% 9 24% 5 36% 35 35% 31-36 2 4% 3 8% 5 36% 10 10% Total 48 100% 38 100% 14 100% 100 100.0%

average cost per sitting

between Rs 100 &Rs 250

In the above table it is visible that when the age increases the average cost per sitting also increases and here we are using the Annova Test to check the significance of this relation.
_____ X1 ____
=

10 + 14 + 1/ 3 = 8

X2

15+12+3 / 3 = 10

____ X3 = 21+9+5 /3 = 12

____ X4 = 2+3+5 /3 = 3

(X)= 8+ 10+12+3/ 4= 8 where k=4

Now we work out SS between and SS within samples SS between = 3(8-8)2 + 3(10-8)2 + 3(12-8)2 + 3(3-8)2
=

12 + 48 + 75 = 135

SS within = (4+36+49) + (25+4+49) + (81+9+49) + (1+4) = 311 SS for total variance= 135+ 311 = 446 Source variation Ss between Ss within total 135 311 446 (4-1)=3 (12-4)=8 11 135/3= 45 311/8= 39 45/39 =1.2 F(3,8)=4.07 of SS df MS F ratio 5% limit

Thus, rejecting null hypotheses as F value (calculated) is less than tabulated F value. Accepting Ha = there is no significant relationship between age and amount of cost per sitting. Hypotheses 2:

Ho there is a significant relation between age group and fast food preference
Table 4.20 Relation between Age Group and Preference of Fast-food age * I PREFER FAST FOOD Cross tabulation I PREFER FAST FOOD STRONGLY STRONGLY MODERATE AGREE DISAGREE AGREE below 20 Age 21-25 26-30 31-36 ____ X1 ____
=

Total 25 30 35 10

Response Response Response Response

1 5 20 8

10 5 5 1

4 5 5 1

10 15 5 0

1+5+20+8/4 = 9

X2 ____ X3 ____ X4

10+5+5+1 /4 =5

4+5+5+1/4 =4

= 10+15+5+0 /4 =8

(X) = 9+5+4+8 / 4 = 6 Now we work out SS between and SS within samples SS between = 4(9-6)2 + 4(5-6)2 + 4(4-6)2 + 4(8-6)2
=

36+4+16+16= 72

SS within = (64+16+121+1) + (25+16) + (1+1+9) + (4+49+9+64)

= 380 Source variation Ss between Ss within total 72 380 452 (4-1)=3 (16-4)=12 15 72/3= 24 380/12=32 24/32 = .76 F(3,12)=3.49 of SS df MS F ratio 5% limit

Thus, rejecting null hypotheses as F value (calculated) is less than tabulated F value. Accepting Ha = there is no significant relationship between age and preference of fast food.

Table 4.21: Representing rating of Mc Donalds on a five point scale Five point Excellent Very Good Good Average Bad scale % 49% 48% 3% 0% 0% Percentage Chart 4.21: Representing rating of McDonalds on a five point scale.

Analysis: Out of 100 respondents, 49% feel that Mc Donalds is Excellent and 48% feel McDonalds is very good.

Table 4.22. Rating of KFC in a five point scale Five Point Excellent Very Good Scale Good % 38% 41% 19% percentage Chart 4.22: Rating of KFC in a five point scale.

Average 0%

Bad 2%

Analysis : 41% respondents voted KFC as Very good. Table4.23 Rating of CCD in a five point scale Five point Excellent Very Good Good scale %Percentage 11% 25% 58% Chart 4.23: Rating of CCD in a five point scale Average 0% Bad 6%

Analysis: Majority of the respondents voted CCD in the category of good.

Table 4.24 Rating of Barista on a five point scale Five Point Excellent Very Good Good Average Scale % 12% 23% 37% 25% Percentage Chart 4.254 Rating of Barista on a five point scale

Bad 3%

Analysis: 37% respondents voted Barista as Good Restaurant.

Table 4.25: Rating of Pizza Hut in a five point scale Five Point Excellent Very Good Good Average Scale % 4% 18% 33% 37% Percentage Chart 4.25: Rating of Pizza Hut in a five point scale

Bad 8%

Analysis: Majority of Respondents rated Pizza Hut as Average.

Findings

Majority of the consumers visit fast food restaurants once in a week and thus they can be assumed as regular customers of fast food joints. Most of the people prefer to visit fast food joints during evening time from 6-10 pm Consumers prefer fast food as it is quickly served and easily available. Most of the occasions when consumers feel like to have something they choose to eat fast food and the reason behind visiting fast food joints is it is a fun place to be in. People generally prefer western fast food joints while eating outside. Convenience is the driving factor to fast food joints. People regard home made food as an healthier option to fast food. Most of the people would like to spend less than Rs. 100 on fast food. McAloo Tikki and Maharaja Mac are hot favorite of consumers at McDonalds. McSpicy being a new product have also been tried by a few and liked too. Service delivery time and capaciousness is to be improved by McDonalds. Burger is what clicks consumer mind when they think of McDonalds. Majority has voted for best price, best taste. In terms of food being served Hot N fresh it has got majority in best and moderate. But variety seems to be not much in McDonalds menu.

Price attracts consumer to McDonalds. Proximity is that main factor that leads to deciding on a restaurant while eating outside. Majority has rated ambience as best in McDonalds and it is perceived to be brand for value for money by 70% of the people. Dcor is being rated as moderate by majority. McDonalds scores highest in top of mind awareness of QSR followed by Pizza hut and KFC. People have rated McDonalds as excellent, KFC as very good , Barista and CCD as good and Pizza hut as average on a 5 point rating scale. McDonalds has been rated best in quick service, moderate in Impressive and complete service. Product variety is what is expected from McDonalds by consumers. People still see fast food as junk food and prefer home made food to fast food for nutritional reasons.

Recommendations

McDonalds should focus on increasing product variety thus increasing product line and width. McDonalds should shorten down service delivery time both in-store and in home delivery. Brand affordability products should be maintained as price is the main factor that attracts consumer to the store. Market penetration should be an initiative taken from companys side to reach out to customers everywhere as proximity seems to be one of the deciding factors while choosing to eat outside.

Congestion is a basic problem at McDonalds so capacity increment, layout and design of the store needs to be focused on. As convenience is a major driving factor to fast food joints McDonalds needs to open up more of breakfast outlets and drive thru. Bundling of meals can be introduced and the evening time which has got peak hours- offers and promotions can be introduced to incentivize customers. Nutritional flyers need to distributed and people are to be made aware of nutrients present in fast food.