INTRODUCTION

1.1 PURPOSE MARKETING STRATEGY OF MCDONALDS.

1.2 ORGANIZATION: MCDONALD'S CORPORATION CEO: DON THOMPSON

1.3 OBJECTIVE: Study and analyse marketing strategies of McDonalds in India. Studying the pricing strategies and product mix for the company. Performing the SWOT analysis of the company.

1.4 RESEARCH METHODOLOGY: 1.4.1 RESEARCH DESIGN Research type is descriptive using secondary data. 1.4.2 DATA COLLECTION Data was collected from books, internet, magazines and newspapers. 1.4.3 LIMITATION o Some figures might not be accurate since data used is secondary in nature. o Mismatch of units of measure

o Internal data may be maintained at a level of aggregation too extreme be useful as inputs o Census geographic areas not the same as geographic areas of interest to the company - often too aggregated. o Mismatch between purpose collected and purpose used. o Records may not be well maintained or organized. o The quality of internal secondary data may be exaggerated or biased.

CHAPTER 2

COMPANYS PROFILE

2.1 COMPANYS OVERVIEW

McDonald's Corporation is the world's largest chain of hamburger fast food restaurants, serving around 68 million customers daily in 119 countries. Headquartered in the United States, the company began in 1940 as a barbecue restaurant operated by Richard and Maurice McDonald; in 1948 they reorganized their business as a hamburger stand using production line principles. Businessman Ray Kroc joined the company as a franchise agent in 1955. He subsequently purchased the chain from the McDonald brothers and oversaw its worldwide growth. A McDonald's restaurant is operated by either a franchisee, an affiliate, or the corporation itself. The corporation's revenues come from the rent, royalties and fees paid by the franchisees, as well as sales in company-operated restaurants. McDonald's revenues grew 27 percent over the three years ending in 2007 to $22.8 billion, and 9 percent growth in operating income to $3.9 billion. McDonald's primarily sells hamburgers, cheeseburgers, chicken, french fries, breakfast items, soft drinks, milkshakes and desserts. In response to changing consumer tastes, the company has expanded its menu to include salads, wraps, smoothies and fruit

2.2 HISTORY

McDonald's corporate logo used from 1968 to 2006. It still exists at some restaurants.

The oldest operating McDonald's restaurant was the third one built, opening in 1953. It is located at 10207 Lakewood Blvd. at Florence Ave. in Downey, California (at 335650N 1180706W33.9471N 118.1182W). The business began in 1940, with a restaurant opened by brothers Richard and Maurice McDonald at 1398 North E Street at West 14th Street in San Bernardino, California (at 340732N 1171741W34.1255N 117.2946W). Their introduction of the "Speedee Service System" in 1948 furthered the principles of the modern fast-food restaurant that the White Castle hamburger chain had already put into practice more than two decades earlier. The original mascot of McDonald's was a man with a chef's hat on top of a hamburger shaped head whose name was "Speedee". Speedee was eventually replaced with Ronald McDonald by 1967 when the company first filed a U.S. trademark on a clown shaped man having puffed out costume legs.

McDonald's first filed for a U.S. trademark on the name "McDonald's" on May 4, 1961, with the description "Drive-In Restaurant Services", which continues to be renewed through the end of December 2009. In the same year, on September 13, 1961, the company filed a logo trademark on an overlapping, double arched "M" symbol. The overlapping double arched "M" symbol logo was temporarily disfavored by September 6, 1962, when a trademark was filed for a single arch, shaped over many of the early McDonald's restaurants in the early years. Although the "Golden Arches" appeared in various forms, the present form as a letter "M" did not appear until November 18, 1968, when the company applied for a U.S. trademark. The present corporation dates its founding to the opening of a franchised restaurant by Ray Kroc, in Des Plaines, Illinois, on April 15, 1955, the ninth McDonald's restaurant overall. Kroc later purchased the McDonald brothers' equity in the company and led its worldwide expansion, and the company became listed on the public stock markets in 1965.

PRODUCTS

McDonald's predominantly sells hamburgers, various types of chicken sandwiches and products, French fries, soft drinks, breakfast items, and desserts. In most markets, McDonald's offers salads and vegetarian items, wraps and other localized fare. On a seasonal basis, McDonald's offers the McRib sandwich. Some speculate the seasonality of the McRib adds to its appeal. Various countries, especially in Asia, are currently serving soup. This local

deviation from the standard menu is a characteristic for which the chain is particularly known, and one which is employed either to abide by regional food taboos (such as the religious prohibition of beef consumption in India) or to make available foods with which the regional market is more familiar (such as the sale of McRice in Indonesia). In Germany, McDonald's sells beer. List of famous Products accross the GLOBE :

BURGERS

Big Mac: Along with the Quarter Pounder with cheese, this is one of the two McDonald's signature menu items, introduced in 1967 as a response to the flagship burger at Big Boy restaurants. Two 1.6-ounce (45 g) (approx. uncooked weight)ground beef patties, special Big Mac sauce (similar to Thousand Island dressing), shredded iceberg lettuce, cheese, two gherkin slices, and re-hydrated onions on a toasted sesame seed bun, with an additional middle bun (called a "club layer") separating both beef patties. In Australia a Big Mac average serving size is 201 grams. Big N' Tasty: The Big N' Tasty consists of a seasoned quarter-pound (4 oz, 113.4 g) beef patty with ketchup, mayonnaise, slivered onions, two dill pickle slices, leaf lettuce, and one tomato slice on a sesame seed bun. The Big Tasty configuration is somewhat different, consisting of a third-pound (150 g) beef patty, 5-inch sesame seed bun, square-cut lettuce, two tomato slices, sliced onions, three slices of Emmental cheese, and Big Tasty sauce (which has a smoke flavour). The Big Tasty Bacon variant also contains strips of bacon. This variant is not sold in the USA, only internationally. Quarter Pounder: Along with the Big Mac, this is one of the two McDonald's signature menu items. 4-ounce (113 g) (approx. uncooked weight) ground beef patty with ketchup, mustard, slivered onions, two gherkin slices (many countries don't include gherkins), and two slices of cheese. The Quarter Pounder was invented by Al Bernardin, a franchise owner and former McDonald's Vice President of product development, at his McDonald's in Fremont, California, in 1971. In some markets unfamiliar with Imperial measurements (such as France), it is known as a Royal Cheese, or variants thereof, such as McRoyale.[4] Also available as the Double Quarter Pounder with Cheese, which includes another patty of the same proportions and a slice of cheese, or as a quad sandwich in parts of Australia. Hamburger and cheeseburger: a 1.6-ounce (45 g) ground beef patty, with 0.125 ounces (3.5 g) ketchup, mustard, a single dill pickle, re-hydrated onions, on a toasted bun. At one time early in McDonalds history, the pickle was removed from the sandwich.[5] Also sold as a double or triple, adding an extra pickle slice for each beef patty added. The double cheeseburger was originally offered as a promotional item in the 1950s, and was added to the regular menu in 1965. A triple burger and a bacon double cheeseburger are optional items and are not always available in all restaurants

or markets. A green chilli double cheeseburger with chilli peppers is offered in New Mexico. In Australia the average serving size for a Cheeseburger is 110 grams.

Double Cheeseburger has two 1.6-ounce (45 g) ground beef patties, with 0.125 ounces (3.5 g) ketchup, mustard, two slices of dill pickle, re-hydrated onions, and two pieces of cheese on a toasted bun.

The McDouble McDouble, similar to a Double Cheeseburger, but with just one slice of cheese. Reintroduced as a permanent dollar-menu item in December 2008 had previously been a short-term product in 1997, advertised with "Eddie the Echo." Daily Double Similar to the double cheeseburger, however the toppings are different. The Daily Double is made with lettuce, tomato, slivered onions, and mayonnaise. It also has only one slice of cheese, rather than the two slices that are on the double cheeseburger. In 2011 and 2012, the item was test marketed in various regional locations.

CHICKEN, FISH AND PORK

McChicken Also offered as the Hot 'n Spicy in some markets, it is a mildly spicy chicken sandwich. Made from 100% ground white meat chicken, mayonnaise, and shredded lettuce, on a toasted bun. It was introduced in 1980, then later removed, but then later reintroduced in 1988. In some markets it is not spicy, and in others a cajun spiced version is also offered. It still remains one of the biggest sellers, just behind the Big Mac. This was replaced with the Crispy Chicken Deluxe in 1996 and brought back in 1998. In Australia the average serving size for a Mc Chicken is 185 grams.

Premium chicken sandwiches The Classic is a rebranding of the Crispy Chicken and Chicken McGrill sandwiches, with mayonnaise, leaf lettuce, and a tomato slice. The Ranch BLT contains ranch sauce instead of mayonnaise and includes bacon. The Club is similar to the Classic with added bacon and a piece of Swiss cheese.

Southern Style Chicken Sandwich A southern-style fried chicken breast filet, on a steamed bun, dressed with butter and two pickles. Nearly identical to a Chick-filA chicken sandwich.

Snack Wrap McDonald's version of a wrap made with white meat chicken breast (crispy or grilled), lettuce, shredded Cheddar cheese and Monterey Jack cheese, and a sauce (Spicy Buffalo, Ranch, Honey Mustard, Chipotle barbecue, or Salsa Roja, the breakfast sauce on the McSkillet), wrapped in a soft flour tortilla. Officially launched on July 1, 2006.

Chicken Fajita Chicken, cheese, red and green bell peppers, and diced onions in a flour tortilla. Comes with Picante sauce packets on request, which are available in mild and spicy. Available in only a few markets.

Chicken McNuggets Introduced in 1980 as a replacement for the McChicken, these are small chicken chunks served with dipping sauces of Barbecue, Sweet n' Sour, Honey, and Hot Mustard. Available in 4, 6, 10 (originally 9), or 20 pieces. Up until 2003, they were a combination of liquified white and dark meat, now they are made with only liquefied white meat. In 2011, 4 new dipping sauces were introduced and added to the lineup: Sweet Chili, Honey Mustard, Spicy Buffalo, and Creamy Ranch.

Chicken Selects McDonald's version of chicken strips. They were introduced since early-1998 and offered again as a permanent part of the menu in late-October 2003. They are sold in 3, 5, or 10 pieces sizes and include choices of spicy buffalo, creamy ranch, Honey Mustard, and Chipotle barbecue dipping sauces; sauce selections in the

UK are smokey barbecue, sour cream and sweet chili sauce. Sold in the United States, Canada, Israel and the UK. Available in Australia under the name Chicken McDippers.

Chicken Selects

Filet-O-Fish A whitefish fillet with tartar sauce and a half slice of cheese, on a steamed bun. It was introduced in Cincinnati in 1962 when it was discovered that many Roman Catholics chose to eat at Frisch's Big Boy on Fridays and duringLent, as it offered a fish sandwich so they could go without meat. This was replaced with the Fish Filet Deluxe in 1996 and brought back in 1998 albeit a larger fish patty.

McRib A sandwich featuring boneless pork with barbecue sauce, slivered onions, and pickles. First seen in test-market stores near interstate highways

around Milwaukee and Madison, Wisconsin, in the late 1970s (along with early tests of personal-sized pizza) the McRib was more widely released in 1981, but pulled from menu in 1985. Now released annually in the U.S. as a limited time promotion. Since 2005, the McRib has reappeared in late October and stays on the menu for one month.

The McRib

OTHER PRODUCTS

McDonald's sells French fries as its primary side order. Until 1967, French fries were never frozen, but were cut on-site from potatoes and immediately fried. In some international locations, they sell potato wedges, a type of French fry that is thick cut and wedge shaped and fried onion pieces that are similar to onion rings. Many McDonald's locations in Wal-Mart stores offer freshly popped popcorn and soft pretzels in addition to the normal menu. In PA stores, only soft pretzels are offered as a side option. McKinley Mac A burger that looks like the Big Mac, but it uses two quarter pound beef patties. Sold only in Alaska. McLobster Some McDonald's restaurants in New England and the Canadian Maritimes offer lobster rolls as a seasonal menu item, called the McLobster.

McLobster

McCrab In response to the McLobster, McDonald's along the southern coast of the Delmarva Peninsula (comprising parts of Delaware, Maryland and Virginia) developed the McCrab sandwich, a McDonald's version of the Chesapeake crabcake. Poutine In Quebec and New Brunswick, two French speaking Canadian provinces, McDonald's also offers Poutine which consists of French fries and cheese curds, covered with brown sauce. Poutine was also a menu item for a limited time only in the mid 1990s in select locations in Ontario, Canada, including Timmins, and is still available at select locations in Ontario like Lancaster on the Quebec border.[18] Brownie Melt similar to a Cinnamelt, it is a rich chocolate brownie with chocolate and white frosting. McRice Most McDonald's restaurants in countries in Asia serve the product due to customers demand. It is normal rice. Angus Snack Wrap Wrap with Angus burger introduced to the U.S. market on August 9, 2010. Angus Snack wraps are available three ways: Deluxe (lettuce, tomato, onions, pickles, American cheese, mayo, mustard); Bacon & Cheese (onions, pickles, American cheese, ketchup, mustard, a strip of bacon); and Mushroom &

Swiss (sauteed mushrooms, Swiss cheese, mayo). The Angus Wrap uses 1/2 of a regular Angus burger pattie.

The McVeggie burger a vegetarian burger on a whole wheat bun. Available in India, Slovenia and Greece. A special version is available in Cheung Chau branch in Hong Kong during the Cheung Chau Bun Festival. The MENU IN INDIA has numerous unique items: Chicken Maharaja Mac like a Big Mac, but with two pressed spiced chicken patties instead of beef, served with a mustard sauce

Paneer Salsa Wrap ("paneer is an Indian unsalted white cheese). Chicken Mexican Wrap McAloo Tiki Breaded potato patty with onion and tomato on a plain bun ("aloo" is "potato"). Chicken McGrill

McDonald's first introduced salads to its menu in 1985. Since that time, they have restructured their salad lines several times. In the U.S., the newest salad offerings are part of the McDonald's Premium line. First introduced in 2003, the Premium Salads all are a mixture of iceberg lettuce and a special lettuce assortment (romaine, etc.), with cherry tomatoes and different toppings to differentiate them; additionally all salads can be topped with warm grilled or crispy chicken. All of its salads are part of McDonald's move towards creating a healthier image. The Happy Meal/Mighty Kids Meal McDonald's capitalized on Burger Chef's Funmeal concept of a children's meal when it introduced the first Happy Meal in

1979. The meal includes an entre, a side dish, a beverage and a toy. Happy meals include a tiny order fries (far less than a small order of fries) and fruit, optional sauce for fries, and a choice of nuggets, a single patty burger, or wraps. An additional product, Pasta Zoo was discontinued in 2008. The Mighty Kids Meal contains more food than the Happy Meal, less than the adult meal, and still contains a toy.

BREAKFAST
McDonald's introduced breakfast foods in 1972.

McDonald's primary breakfast offerings are breakfast sandwiches.

McMuffins are McDonald's signature breakfast sandwich, first sold at select restaurants in 1972 as the Egg McMuffin, just five years before breakfast officially went into effect, it consists of a fried egg, Canadian Bacon and American cheese on a toasted English muffin. Sausage or bacon McMuffins are also available.

Egg McMuffin

McDonald's offers a line of breakfast sandwiches: bagels, biscuits, and a special type of maple flavored pancake called McGriddles. All can all be ordered with sausage, ham or bacon, with an optional choice of cheese and/or egg. Regional meat offerings include fried chicken, steak, spam and bacon. The McDonald's Hamdesal is a new breakfast sandwich which consist of a slice of ham on pandesal, which can be ordered plain, with eggs or with cheese. This sandwich is currently available in the Philippines.

There are two styles of breakfast burritos available. The Sausage Burrito is made with a flour tortilla, sausage, American cheese, eggs, onions, and peppers. The new McSkillet wrap burrito adds potatoes and salsa. Chicken and steak variants of the McSkillet exists in limited areas. Outside the U.S., the breakfast burrito may be called a breakfast wrap (in the United Kingdom for example, it consists of a pork sausage patty with a free range egg, British bacon, potato rosti, cheese and ketchup or HP Sauce).

Additional breakfast items include hotcakes; several breakfast platters with eggs, hash browns and meats or breads; a type of cinnamon roll called a Cinnamon Melt; and Danish. Biscuits and gravy are available in parts of the southern U.S. Oatmeal was added to the breakfast menu on December 27, 2010, after it test marketed well in Washington, DC and some parts of Maryland. In the test market areas, oatmeal started selling in late-January 2010. Waffles with the maple syrup already baked in (similar to the McGriddle pancakes) were introduced in some markets in 1999.[citation needed] Hawaii and Guam McDonald's offers local breakfast items such as Spam, Portuguese sausage and fresh cut pineapple. Cinnamon Melts-a popular cinnamon roll type item with cream cheese icing.

BEVERAGES

McDonald's primary soft drink supplier is the Coca-Cola Company, except in restaurants which fall under an overall contract with PepsiCo. For example: the Mall of America, the Detroit Metropolitan Wayne County Airport, Staples Center and the University of Maryland, College ParkStudent Union. In the U.S. and Canada, Cadbury-Schweppes supplies Dr Pepper. S&D Coffee, Gavina and Kraft supply McDonald's Premium Roast Coffee for McDonald's U.S. restaurants besides the New England area. Green Mountain Coffee Roasters supplies Newman's Own branded coffee for McDonald's New England area restaurants. Hot and iced tea (supplied by S&D Coffee in the U.S.), hot chocolate, various juices and other regional beverages are available in various markets. The McCafe is an umbrella term for lattes, espresso, iced coffee, hot chocolate, mocha, smoothies, and other drinks that are sold in several markets worldwide. Milkshakes are available in all of McDonald's U.S. and global markets (except for the Argentinian, Paraguayan and Guatemalan branches).Permanent flavors are vanilla, strawberry, and chocolate; regional or seasonal flavors include Caramel, Coffee, Cherry, Eggnog (during Christmas), Banana, Pumpkin (during Halloween), Strawberry Banana, Lime, Mango Raspberry, Honeycomb, Arctic Orange (sherbet), Orange Cream, Shamrock Shake (a green, spearmint Limited Time Offer shake for St. Patrick's Day), Chocolate Mint, and Rolo (available only in Canada and the UK. This flavoured milkshake was also available in the Republic of Ireland during the summer of 2007 for a limited time only).

Beer of different brands (varies locally) is available at McDonald's in France, Belgium, Germany, Spain, Portugal, Romania, Lithuania, Czech Republic, Italy and Slovenia. Irn-Bru is available in some Scottish McDonald's locations. Inca Kola is available in every Peruvian McDonald's location. McDonald's also offers 1% milk, 1% chocolate milk, and apple juice, most often as replacements for fountain drinks in Happy Meals.

DESSERTS

A soft serve ice cream product is available in several forms, including sundaes, cones (either vanilla or chocolate), and as the primary ingredient in the McFlurry. As with many other formulations of soft serve, cellulose gum is utilized as an extender and thickener. The McFlurry is a soft-serve ice cream dessert, that has pieces of candy or cookies mixed into it.The flavors are crushed Oreo, M&M's Minis, Mars, Incorporated candy bars like Snickers, Twix, Galaxy etc. Cadbury's candy bars like Twirl, Wispa, Creme Egg, Crunchie etc. Nestl candy bars like Yorkie, Smarties, Drifter, Rolo, Butterfinger, Kellogs Hello Kitty Snacks, Phillies etc. McDonald's also does limited time only flavors e.g. for Shrek 3 it released the Ogre-Load flavor.

McDonald's McFlurry

McDonaldland Cookies: McDonaldland cookies are traditionally available and are similar to animal crackers, except the shapes of the cookies are of Ronald McDonald, Grimace, Birdie the Early Bird, the Hamburglar, and the Fry Guys. In fact, they are manufactured by Keebler and are just re-branded animal crackers (Elfin Crackers or Our Family Animal Crackers). Freshly baked cookies: Freshly baked cookies manufactured by Nestl are available in some markets. Among some of the cookies offered are sugar, oatmeal raisin, or chocolate chip. Pies: McDonald's pies are actually turnovers and come in apple or, in some markets, cherry and other seasonal or limited-time-only flavors such as pumpkin pie, smores, and Holiday pie, and in Hawaii, taro, haupia and banana. In Canada, in the 1970s, blueberry was standard, as was the Great Fruit Pie. During some seasonal promotions, cherry and strawberry are an available pie flavor in Canada; also, newly featured is Blueberry Maple and Peach. Currently McDonald's is selling raspberry pies, for a limited time. In Thailand and Guam, taro pie is featured occasionally. Other regional flavors include coconut and tuna (all in Guam as limited-time), and corn in Japan. In Mexico and Guatemala, cheese pie is available all year round. .

McDonald's apple pies

Brownie melts Similar to the Cinnamon melt, only chocolate flavored with fudge and cream cheese icing on top. Available only in select markets. The Fruit and Yogurt Parfait a mix of frozen strawberries and blueberries and vanilla yogurt, sold with a package of granola topping. Smoothies (introduced nationally in 2010) are available in some locations in either Wild Berry, Strawberry Banana, or Mango-Pineapple flavors. In the test market areas, smoothies were introduced in 2009. In 2010, McDonald's New Zealand began offering a 'Frozen Coke Float' mini-sized dessert. It contained Frozen Coke and a small amount of soft serve.

2.3 TYPES OF RESTAURANTS

Most standalone McDonald's restaurants offer both counter service and drive-through service, with indoor and sometimes outdoor seating. Drive-Thru, Auto-Mac, Pay and Drive, or "McDrive" as it is known in many countries, often has separate stations for placing, paying for, and picking up orders, though the latter two steps are frequently combined; it was first introduced in Arizona in 1975, following the lead of other fast-food chains. The first such restaurant in Britain opened at Fallowfield, Manchester in 1986.[19] In some countries, "McDrive" locations near highways offer no counter service or seating. In contrast, locations in high-density city neighborhoods often omit drive-through service. There are also a few locations, located mostly in downtown districts, that offer Walk-Thru service in place of Drive-Thru. To accommodate the current trend for high quality coffee and the popularity of coffee shops in general, McDonald's introduced McCaf, a caf-style accompaniment to McDonald's restaurants in the style of Starbucks. McCaf is a concept created by McDonald's Australia, starting with Melbourne in 1993. Today, most McDonald's in Australia have McCafs located within the existing McDonald's restaurant. In Tasmania, there are McCafs in every store, with the rest of the states quickly following suit. After upgrading to the new McCaf look and feel, some Australian stores have noticed up to a 60% increase in sales. As of the end of 2003 there were over 600 McCafs worldwide. Some locations are connected to gas stations/convenience stores,while others called McExpress have limited seating and/or menu or may be located in a shopping mall. Other

McDonald's are located in Wal-Mart stores. McStop is a location targeted at truckers and travelers which may have services found at truck stops. Since 1997, the only Kosher McDonald's in the world that is not in Israel, is located in the "Abasto de Buenos Aires", Argentina

2.4 REDESIGN

An American McDonald's in Mount Pleasant, Iowa in June 2008; this is an example of the "new" look of American McDonald's restaurants.

An Irish McDonald's in Portlaoise, County Laois, Ireland in August 2012; this is a more modern restaurant complete with a drive-through. In 2006, McDonald's introduced its "Forever Young" brand by redesigning all of its restaurants, the first major redesign since the 1970s. McDonald's has invested $1 billion to redesign nearly all of the 14,000 restaurants by 2015. The goal of the redesign is to be more like a coffee shop, similar to Starbucks. The design includes wooden tables, faux-leather chairs, and muted colors; the red is muted to terra cotta, the yellow was turned golden for a more "sunny" look, and olive and sage green were also added. To warm up its look, the restaurants have less plastic and more brick and wood, with modern hanging lights to produce a softer glow. Many restaurants now feature free Wi-Fi and flat screen TVs. Other upgrades include double drive-thrus, flat roofs instead of the angled red roofs, and replacing fiber glass with wood. Also, instead of the familiar golden arches, the restaurants now feature "semi-swooshes" (half of a golden arch), similar to the Nike swoosh.

2.5 CHARITY

McHappy Day McHappy Day is an annual event at McDonald's, where a percentage of the day's sales go to charity. It is the signature fundraising event for Ronald McDonald House Charities. In 2007, it was celebrated in 17 countries: Argentina, Australia, Austria, Brazil, Canada, the United States, Finland, France, Guatemala, Hungary, England, Ireland, New

Zealand, Norway, Sweden, Switzerland and Uruguay. According to the Australian McHappy Day web site, McHappy Day raised $20.4 million in 2009. The goal for 2010 is $20.8 million. McDonald's Monopoly donation to St. Jude In 1995, St. Jude Children's Research Hospital received an anonymous letter postmarked in Dallas, Texas, containing a $1 million winning McDonald's Monopoly game piece. McDonald's officials came to the hospital, accompanied by a representative from the accounting firm Arthur Andersen, who examined the card under a jeweler's eyepiece, handled it with plastic gloves, and verified it as a winner. Although game rules prohibited the transfer of prizes, McDonald's waived the rule and has made the annual $50,000 annuity payments, even after learning that the piece was sent by an individual involved in an embezzlement scheme intended to defraud McDonald's

2.6 MCD IN INDIA

Indian McDonald's restaurants do not serve beef and pork products, in deference to Hindu and Islamic beliefs, respectively. The only animal products available are chicken and fish. Meat and vegetarian meals are prepared in separate areas of the restaurant due to religious laws; cooks preparing vegetarian dishes wear a distinctive green apron. The veggie burger menu includes the McAloo Tikki Burger, a burger with a patty made out of potatoes, peas, and spices. It is served with tomato slices, onions, and vegetarian mayonnaise. The McVeggie is a similar burger with a sesame seed bun, lettuce, vegan mayonnaise, and a vegetarian patty made from peas, carrots, green beans, red bell pepper,

potatoes, onions, rice, and seasonings. The Crispy Chinese consists of a crispy vegetarian patty topped with a creamy Szechuan sauce and lettuce. There is an Indian version of the Big Mac, called the Maharaja Mac, made with two grilled chicken patties and topped with onions, tomatoes, cheese, and a spicy mayonnaise. It was formerly made with lamb. Mexican-style wraps for both vegetarians and non-vegetarians, like the Mexican Chicken Wrap, and Curry Pans in shahi paneer and chicken tikka variations are also offered. The Paneer Salsa Wrap is sold in India. It contains a small slab of paneer dredged in a coating that combines Mexican and Cajun flavors, when is then fried and wrapped in flatbread and topped with lettuce, red cabbage, celery, vegetarian mayonnaise, salsa, and Cheddar cheese. Recently, McSpicy Chicken and McSpicy Paneer burgers and wraps have also been introduced. There is also a Pizza McPuff, a rectangular shaped crust flavored with a tomato-based sauce and topped with carrots, beans, bell peppers, onions, peas, and mozzarella. McDonald's plans to open its first vegetarian-only restaurant next year in the the country. The first location will open near the Golden Temple in the Sikh holy city of Amritsar in northern India. The second store will be near the Vaishno Devi cave shrine in northwestern Indian Kashmir.

CHAPTER 3

FINDINGS AND ANALYSIS

McDonalds is one of the best known brands worldwide. This case study shows how McDonalds aims to continually build its brand by listening to its customers. It also identifies the various stages in the marketing process. Branding develops a personality for an organisation, product or service. The brand image represents how consumers view the organisation.

Branding only works when an organisation behaves and presents itself in a consistent way. Marketing communication methods, such as advertising and promotions, are used to create the colours, designs and images which give the brand its recognisable face. At McDonalds this is represented by its familiar logo the Golden Arches. In all its markets, McDonalds faces competition from other businesses.

Additionally, economic, legal and technological changes, social factors, the retail environment and many other elements affect McDonalds success in the market. Marketing involves identifying customer needs and requirements and meeting these needs in a better way than competitors. In this way a company creates loyal customers.

The starting point is to find out who potential customers are not everyone will want what McDonalds has to offer. The people McDonalds identifies as likely customers are known sa key audience.

3.1 BUSINESS MODEL

McDonald's Corporation earns revenue as an investor in properties, a franchiser of restaurants, and an operator of restaurants. Approximately 15% of McDonald's restaurants are

owned and operated by McDonald's Corporation directly. The remainder are operated by others through a variety of franchise agreements and joint ventures. The McDonald's Corporation's business model is slightly different from that of most other fast-food chains. In addition to ordinary franchise fees and marketing fees, which are calculated as a percentage of sales, McDonald's may also collect rent, which may also be calculated on the basis of sales. As a condition of many franchise agreements, which vary by contract, age, country, and location, the Corporation may own or lease the properties on which McDonald's franchises are located. In most, if not all cases, the franchisee does not own the location of its restaurants. The United Kingdom and Ireland business model is different than the U.S, in that fewer than 30% of restaurants are franchised, with the majority under the ownership of the company. McDonald's trains its franchisees and others at Hamburger University in Oak Brook, Illinois. In other countries, McDonald's restaurants are operated by joint ventures of McDonald's Corporation and other, local entities or governments. As a matter of policy, McDonald's does not make direct sales of food or materials to franchisees, instead organizing the supply of food and materials to restaurants through approved third party logistics operators. According to Fast Food Nation by Eric Schlosser (2001), nearly one in eight workers in the U.S. have at some time been employed by McDonald's. (According to a news piece on Fox News this figure is one in ten. The book also states that McDonald's is the largest private operator of playgrounds in the U.S., as well as the single largest purchaser of beef, pork, potatoes, and apples. The selection of meats McDonald's uses varies with the culture of the host country.

3.2 ENTERING INDIA

McDonalds entered India in 1996. McDonalds India has a joint venture with ConnaughtPlaza Restaurants and Hard Castle Restaurants. Connaught Plaza Restaurants man agesoperations in North India whereas Hard Castle Restaurants operates restaurants in WesternIndia. Apart from opening outlets in the major metros, the company is now expanding to Tier 2 cities like Pune and Jaipur.

CHALLENGES IN INDIAN MARKET

Regiocentricism: Re-engineering the menu McDonalds has continually adapted to the customers tastes, value systems, lifestyle, language and perception. Globally McDonalds was known for its hamburgers, beef and pork burgers. Most Indians are barred by religion not to consume beef or pork. To survive, the company had to beresponsive to the Indian sensitivities. So McDonalds came up with chicken, lamb andfish burgers to suite the Indian palate.

The vegetarian customer:

India has a huge population of vegetarians. To cater

tothis customer segment, the company came up with a completelynew line of vegetarian item s like McVeggie burger and Mc AlooTikki. The separation of vegetarian and non-

vegetarian sections is maintained throughout the various stages.

3.3 SEGMENTATION, TARGETING AND POSITIONING

McDonalds uses demographic segmentation strategy with age as the parameter. The main target segments are children, youth and the young urban family

3.4 CUSTOMER PERCEPTION AND CUSTOMER EXPECTATION

Customer perception is a key factor affecting a products success. Many potentiallyrevolution ary products have failed simply because of their inability to build a healthy perception about themselves in the customers minds. McDonalds being an internationallyrenowned brand brings with it certain expectations for the customers.Customers expect it to be an ambient, hygienic and a little sophisticated brand that respectstheir values. The customers expect the brand to enhance their selfimage. Customer responses obtained at the Vile Parle, Mumbai outlet confirmed the fact

that they connectstrongly with the brand. However, fulfilling some of the customer expectations like a broader product variety provide McDonalds a great scope for improvement.

Target Segment A Family with children move Teenager

What is McDonalds for me? A treat to children, a fun place to be for the children. schedule Hangout with friends, but keep it affordable.

Urban customer on the Great taste, quick service without affecting the work

3.5 MCDONALDS MARKETING MIX (7 PS)

After segmenting the market, finding the target segment and positioning itself, each companyneeds to come up with an offer. The 5 Ps used by McDonalds are:

1. Product 2. Place 3. Price 4. Promotion 5. People 6. Physical Evidence 7. Process

PRODUCT:

How should the company design, manufacture the product so thatit customer experience?

enhances

the

Product is the physical product or service offered to the consumer. Product includes certain aspects such as packaging, guarantee, looks etc. This includes both the tangible and the nontangible aspects of the product and service.McDonalds has intentionally kept its product depth and product width limited. McDonalds studied the behaviour of the Indian customer and provided a totally different menu as compared to its International offering. It dropped ham, beef and mutton burgers from the menu. India is the only country where McDonalds serve vegetarian menu. Even the sauces and cheese used in India are 100% vegetarian. McDonalds continuously innovates its products according to the changing preferences and tastes of its customers. The recent example is the introduction of the Chicken Maharaja Mac .McDonalds bring with it a globally reputed brand, world class food quality and excellent customer specific product features.

PLACE:
Where should be the product be available and the role of distributionchannels? The place mainly consists of the distribution channels. It is important so that the product isavailable to the customer at the right place , at the right time and in the right quantity. Nearly 50% of U.S.A is within a 3 minute drive from a McDonalds outlet. There is a certain degree of fun and happiness that a customer feels each time he dines at McDonalds. There are certain value propositions that McDonalds offer to its customers based on their needs. McDonalds offers hygienic environment, good ambience and great service. Now McDonalds have also started giving internet facility at their centres and they have been playing music through radio instead of the normal music. There are certain dedicated areas for children where they can play while their parents can have some quality time together.

PRICE:
What should be the pricing strategy? Pricing includes the list price, the discount functions available, the financing optionsavailable etc. It should also take into the consideration the probable reaction from the competitor to the pricing strategy. This is the most important part of the marketing mix as this is the only part which generates revenue. All the other three are expenses incurred. The price must take into consideration the appropriate demand-supply equation. McDonalds came up with a very catchy punch line Aap ke zamane mein ,baap ke zamaneke daam. This was to attract the middle and lower class consumers and the effect can clearly be seen in the consumer base McDonalds has now. McDonalds has certain value pricing and bundling strategies such as happy meal , combomeal , family meal etc to increase overall sales volumes.

PROMOTION:

What is the suitable strategy and channels for promotion of the product? The various promotion channels being used by McDonalds to effectively communicate the product information are given above. A clear understanding of the customer value helps decide whether the cost of promotion is worth spending. There are three main objectives of advertising for McDonalds are to make people aware of an item, feel positive about it and remember it. The right message has to be communicated to the right audience through the right media. McDonalds does its promotion through television, hoardings and bus shelters. They use print ads and the television programmes are also an important marketing medium for promotion. Some of the most famous marketing campaigns of McDonalds are: You Deserve a break today, so get up and get away- To McDonalds Aap ke zamane mein ,baap ke zamane ke daam. Food, Folks, and Fun Im loving it.

PEOPLE:
How to converge the benefits of internal and external marketing? McDonalds understands the value of both its employees and its customers. It understands the fact that a happy employee can serve ell and result in a happy customer. McDonald continuously does Internal Marketing. This is important as it must precede external marketing. This includes hiring, training and motivating able employees. This way they serve customers well and the final result is a happy customer.

PHYSICAL EVIDENCE:
The physical evidence appearance affects not onlythe impression outsiders have of a business but allthe way that business functions. McDonalds focuses on clean and hygienic interiors of is outlets and at the same time the interiors are attractive and the fast food joint maintains a proper decorum at its joints. Hence due importance is to be given to : Staff members. Location & appearance. Buildings Maintence.

PROCESS
The food manufacturing process at Mc Donalds is completely transparent i.e. the whole process is visible to the customers. In fact, the fast food joint allows its customers to view and judge the hygienic standards at Mc Donalds by allowing them to enter the area where the process takes place. The customers are invited to check the ingredients used in food. Hence, McDonalds follows : Food manufacturing transparent to customers.

 Training to the licensees. Invented the most efficient cooking equipment. New methods of food packaging anddistribution. McDonalds in India followed the same tradition.

3.6 COMPETITORS ANALYSIS

McDonalds has been a leading fast-foods outlet in Vile Parle. But the outlet understudy has other competitors eating away into its market share. In addition to its traditional rivalsKFC, Dominos, Pizza Hutthe firm encounters new challenges. Jumbo King competes using a back-to-basics approach of quickly serving up burgers for time-pressed consumers. On thehigher end, the KFC has become potent competitor in the quick service field, taking awaycustomers from McDonalds. Perhaps in the new environment, fast, convenient service is no longer enough to distinguish the firm. At this time, a new critical success factor may be emerging: the need to create a rich, satisfying experience for consumers. This brings us to service and experience based competition which McDonalds can use for competitive advantage against Jumbo King. Keeping in mind the demographics of the area, McDonalds has Wi-Fi enabled the outlet to cater to the student community. It is for this overall Food, Fun & Folks experience that customers pay a premium over the other competitors Competition also reduces product lifecycle; inducing firms to revise their products portfolios and to revisit their product market to understand changing needs, expectations and perception of different market segments. The new Breakfast would be introduced between 6 to 11 am as a pilot project. This would open up a whole new revenue stream for McDonalds by tapping into the student and working population by providing a healthy and wholesome breakfast. This shows how demographic shift can affect the demand for products and services. McDonalds has anticipated these changes to maintain its competitive edge.

Two Dimensional Perceptual Mapping

PIZZA HUT: Pizza Hut is a global fast food chain, a subsidiary of Yum! Brands Inc. , the worldslargest restaurant company. It was founded in Wichita, Kansas, USA in 1958 and isrunning its operations in about 91 countries worldwide. Its one of the major competitions of McDonalds in the Pakistani QSR industry. It started its operations inPakistan in 1993 with a single outlet at Boat Basin, Clifton, Karachi. Today it operates innine cities of Pakistan with 38 outlets. The cities include Karachi, Lahore, Islamabad,Peshawar, Faisalabad, Multan, Rawalpindi, Sialkot and Hyderabad. Pizza Hut serves alarge variety of starters, soups, salads, sandwiches, Pastas and deserts.

Strategic Objectives: When we talk about strategic objectives, Pizza hut says: We want to satisfy our customers by offering them The best. Diversification of the products that they offer hasalways been a focal point of strategies at Pizza Hut. The strategies at Pizza hut areguided by principles like Cleanliness, Hospitality, Accuracy, Maintenance, Productquality and Speed (CHAMPS). Since its a global chain, the strategies are based uponcustomizing the services, advertising and marketing activities according to the countriesthat they are operating in. Customer service and satisfaction have of course alwaysbeen a vital aspect of the strategies. Another important feature of the Pizza Hutsstrategies are the 3 Fs (Fun, Friendly and Familiar) Problems and Weaknesses: At one time, the biggest marketing problem Pizza Hut facedwas lunch. As compared to McDonalds, its restaurants hadvirtually no lunch time sales, and neither did any of its pizzacompetitors. The reason, of course, is that it takes 20minutes to cook a pizza from scratch in a traditional pizzaoven, and most people wont spend that long at lunch time waiting to be served. Byusing a new, continuous-broiling technology adapted from burger business, Pizza Hutdeveloped a personal pan pizza that could be served in less than 5 minutes. It wasquick, tasty and moderately priced. And Pizza hut rolled it out to all 4500 storesworldwide and locked up the pizza-lunch business almost everywhere, almostovernight.

One of the weaknesses of Pizza hut that it hasnt overcome yet is its price. Localchains are constantly springing up, offering lower prices and similar recipes. Mostpeople dont mind giving a lower price for slightly different taste because of which thesales at pizza hut at are suffering.Growing awareness about eco-friendliness has forced a lot of the food chains tomaintain practices that conform to international environmental standards. For exampleMcDonalds is introducing coffee beans grown in environmental friendly conditions inorder to appeal to the people who are conscious about environmental friendliness. Inthe Pizza selling restaurants, organic pizzas are the new concepts that are appealing tothe masses to these days. Its a phenomenon that highlights the health consciousattitude as well as

environmental friendliness. Pizza Hut on the other hand has notcome up with any strategy in this area and if it doesnt even in the future, it is going tolag behind the chains that offer healthier food. Competitive Advantages: Pizza Hut has the first mover advantage in the pizza chains because of which it hasdeveloped a strong customer base which is one of its strengths.In the Pakistani QSRs industry, the delivery service of Pizza hut is clearly a competitiveadvantage that it enjoys. Pizza huts delivery service is one of quickest and the pizzasdelivered are oven hot in the real sense of the world.Pizza Hut is often referred to as Pizza Innovation Leader because it is constantlycoming up with new varieties of pizzas to appeal the different audiences and at thesame time, people at the pizza hut have a really good idea about which varieties areappealing to the customers and they are thus retained in the menusThe first mover advantage is an advantage that Pizza hut was born with but time, Pizzahut has been successfully creating competitive advantages like a traditionally strongbrand name for itself and the quality service that it provides. KENTUCKY FRIED CHICKEN (KFC):

KFC, founded and also known as Kentucky Fried Chicken, is a chain of fast foodrestaurants based in Louisville, Kentucky. KFC is a brand and operating segment,called a "concept",

of Yum! Brands since 1997, when that company was spun off fromPepsiCo as Tricon Global Restaurants Inc.. KFC has more than 11,000 restaurants inmore than 80 countries. KFC came to Pakistan in 1996 with the first branch opening inKarachi and later in Lahore. The Franchisee was a Pakistani owned and operated,Dubai-based Company the Cupola Group, which owns licenses and its own restaurantthroughout Pakistan and the middle-east. Strategic Objectives: KFC has the strategic objectives of expansion along with profits and sales growth. KFChas also been applying its strategies at improving services and making them more andmore customer friendly. It has not only been customizing it's menu according to the countries that it has been operating in, it has also been trying to cater to different ethnicgroups like African Americans and Hispanics. Such types of strategies are focused onincreasing the customer base by better customization of products. Other than thetraditional eat-in restaurants, KFC has also been expanding into non-traditional facilitieslike shopping malls, hospitals, universities, stadiums; office buildings etc and a number of strategies have been formulated to aid this kind of expansion. Problems and Weaknesses: The advertising campaign of KFC does not specifically appeal to any segment. Itdoes not appear to have a consistent long-term approach. The U.S. hasenormous changes in its demographics. Only in US, single-person householdsincreased from 12% in 1970 to 25% in 1995. With this kind of dramatic change,KFC does not have a proper approach to its target market. The increased health concerns of the masses has put KFC at a greatdisadvantage because of the word 'fried' attached to it's brand name which givesan instant idea that the food would be oily and unhealthy. Another weakness of KFC is that of the lack of a corporate direction because ithas been a part of four different parent companies till now namely, Heublein Inc.,R.J Reynolds, Pepsi Co. and Yumm! Brands Inc. The corporate functioning of these companies has been pretty different from each other because of which astrong culture could not be established at KFC and it had long been strugglingwith it.

 Because of the nature of the chicken segment of the fast food industry,innovation was never a primary strategy for KFC. However, during the late1980's, other fast food chains, such as McDonald's, began to offer chicken as amenu option. During this time, McDonald's had already introduced the McChicken while KFC was still testing its own chicken sandwich. This delaysignificantly increased the cost of developing consumer awareness for the KFCsandwich. Competitive Advantage: A very strong financial background is one of KFCs competitive advantages. KFC has been functioning as a multinational corporation for several decades. Asa result, the company is familiar with the logistical and quality problems whichaccompany operating an international food operation, and has demonstrated thatit can work with host countries and businesses within the host country to developa strategy which works in the most cost effective way. With the passage of time, KFC has developed another very importantcompetitive advantage for itself- Environmental Friendliness. In March 2009, thefirst eco-friendly green KFC was opened in Northampton USA. The restaurant isdesigned according to environmental goals that include cutting energy and water consumption by 30 percent and reducing CO2 emissions. Operations at the newsite are also expected to reduce waste and the amount of rubbish sent tolandfills; the restaurant composts and recycles other waste, grease and usedcooking oil. Other than this, in an effort to reduce its packaging by 1,400 tons,KFC is now switching from cardboard to recyclable and biodegradable paper wrapping for some of its products. Subway: Subway is a restaurant franchise that primarily sells submarine sandwiches and salads.It is owned and operated by Doctor's Associates, Inc. (DAI). Subway is one of thefastest growing franchises in the world with approximately 30,052 restaurants in 90 countries as of April 2009. It is the second largest restaurant operator globally after Yum! Brands (35,000 locations)Subway restaurants are known for their sub sandwiches and salads. The Subwayrestaurant chain is the fastest growing restaurant chain in the world surpassing

evenMcDonald's. Subway has the second most stores of any chain restaurant system in theworld after McDonald's, and the most locations in North America of any chain. Subwaywas founded in 1965, however the franchising started in 1974.In Pakistan, subway has restaurants at 30 locations, including Karachi, Lahore,Gujranwala, Islamabad, Sialkot and Multan. Majority of the restaurants are located inLahore and Karachi.

Strategic Objectives: The strategic objectives of Subway focus on creating a global strategic plan to enableSubway Restaurants to succeed internationally. Other than this subway is intent uponintroducing the concept of healthy fast food. Sandwiches of Subway have beenincluded in diet plans by experts. Jared Fogle, an obese college student who weighed425 pounds introduced a weight loss plan called the subway diet and lost 245 pounds in11 months. Subways stand regarding obesity in children is not new to its customers.Strategies at Subway are not only about a really ambitious increase in franchises allover the world but they are also about making the food more and more appealing to thehealth conscious customers because health conscious attitudes, according to theexperts, are here to stay now. Problems and Weaknesses: One of the major problems that can be identified with Subway right now isrelated to the franchises. Although Subway has long been named as the number one franchise opportunity by The Entrepreneur magazine but it seems thatSubway has developed a myopic focus regarding the franchises. Subway hasregional managers who have the opening of new franchises as their sole aimand their bonuses and incentives are tied to the opening of new franchises. These managers at Subway even don't care if the new franchises are detrimentalfor the existing ones and because of this; many of the franchises are becoming avictim of internal competition or cannibalization. For example, in Lahore alone,Subway has 20 outlets. Instead of this, Subway could have targeted Cities likeFaisalabad and explored a new market. Franchise owners believe that Subwayhas been irresponsible with allocating the franchises

and uses bloated storesales projections as part of their sales pitch for encouraging new franchises. The opening up of a lot of new stores in close proximities are also resulting indecline in sales per store because of which the franchisees are not very satisfieswith Subway. The environment at the Subway stores cannot be compared with that of McDonald's, KFC or Pizza Hut. The Stores are small and suffocating and do noteven provide the necessary privacy to the people eating there. Subway has nostandard size for any of its store because of which the sales orientedFranchisees try to fix them at as smaller a place as possible. This is tarnishingthe image of Subway as an international brand. The quality of the sandwiches and standards of cleanliness at Subway are goingdown day by day due to the greater and greater autonomy that franchiseesenjoy. The Subway at Rawalpindi was recently closed down due to quality issuesas well. There is a dire need of a system to integrate the large number of Subwayfranchises and to ensure that the original Subway practices are being followedthere. The management of the franchises is one part of their operations thatSubway has not handled well.

Competitive Advantage:

One of the greatest competitive advantage that Subway was born with is it's healthyMenu. The salads and sandwiches appeal much more to the people as compared tofried chicken, burgers, fries and pizzas. With its advertising and promotion, Subway haslong been highlighting its healthy food in advertising and promotions and with thepassage of time, it has established itself as a healthy brand. Another competitive advantage that subway enjoys is the fact that along withtraditional locations, Subway restaurants can be found in more than 4,000 non-traditional locations such as food courts, health clubs, hospitals, universities,amusement parks or just about anywhere. In fact, Subway restaurants can evenbe found in automobile showrooms and Laundromats! This global presence isindeed a sustainable advantage for Subway and needs to be managed properly.

 Subway's fresh food is also a competitive advantage because unlike it'scompetitors like McDonald's it allows it's franchisees to choose their own foodsuppliers, to ensure they can access the freshest ingredients.

MCDONALDS MARKET SHARE ACROSS GLOBE

3.7 SWOT ANALYSIS

STRENGTH

Strong brand name, image and reputation. Large market share. Strong global presence. Specialized training for managers known asthe Hamburger University. McDonalds Plan to Win focuses on people,products, place, price and promotion. Strong financial performance and position. Introduction of new products. Customer focus (centric). Strong performance in the globalmarketplace

WEAKNESS
Unhealthy food image. High Staff Turnover including Topmanagement. Customer losses due to fierce competition.

 Legal actions related to health issues; use of trans fat & beef oil. Uses HCFC-22 to make polystyrene that iscontributing to ozone depletion. Ignoring breakfast from the menu

OPPORTUNITY

Joint ventures with retailers (e.g. supermarkets) Globalization, expansion in other countries(especially in China & India). Diversification and acquisition of other quickservice restaurants. Growth of the fast-food industry. Worldwide deregulation. Low cost menu that willattract the customers. Freebies and discounts.

THREATS

Health professionals and consumer activistsaccuse McDonald's of contributing to thecountrys health issue of high cholesterol, heartattacks, diabetes, and obesity.

 The relationship between corporate levelMcDonald's and its franchise dealers.

McDonalds competitors threatened marketshare of the company both internationally anddomestically.

CHAPTER 4

FUTURE PATH AND SUGGESTIONS

4.1 THE ROAD AHEAD

Entry to Tier 2 and Tier 3 cities The main target customer for McDonalds is the new urban Indian family. With the customer demographics constantly changing and tectonic social and cultural shifts being observed in Tier 2 and Tier 3 cities due to globalization, the company is now expanding to Tier 2 cities like Pune and Jaipur. Rolling out McBreakfast across all outlets In India, the company has recently launched its entry into the breakfast food category. This is now launched on a pilot basis on select stores. In Mumbai, it available at the Vile Parle outlet. The company views this category as a key growth driver in future.

4.2 RECOMMENDATIONS:

 McDonald's tend to import much of their raw materials from different places. If it uses local sources and products, it can reduce exchange rate fluctuations that will play a significant role in the operations of the company. This will provide more employment to local people that can improve the image further. McDonald's also has to take a great deal of consideration with reference to its macro environment and microenvironment. It has to establish a good system in determining the needs of the market and use concepts of consumer behaviour product personality and purchasing decisions to its advantage. Advertisement in the media with regards to local requirements can also help boost its business. McDonald's should apply a more careful consideration on their corporate social responsibilities. On the whole, this will address the need of the company to form its corporate reputation to a more positive one and a more socially responsible company. Participating, endorsing and funding charities, festivals and other activities can help increase its reputation.

Although the company has provided its customers the relevant data that they need with reference to the nutritional substances of their products, they should provide information in details on the menu and on the website. This will deliver freedom in choosing whether or not consumers want to purchase meals. Obtain the relevant information from the target market in addition to the individual customers of the organisation. A well drafted and comprehensive market research should be conducted so as to establish the acts that would conform to good customs, public policies, and morals of the said state.

The company should find out the shifts in areas like the consumer behaviour and purchasing patterns of the market. Use the internet to their advantage.

 The cost-effectiveness, interactivity and real-time effects of the communications are a good way to find suppliers. It is also a good way to correspond with the respective McDonald's headquarters in every state.

Another effort for McDonald's to do is to keep its stores fresh and contemporary as styles, colours, decors and technology change.The company should constantly renovate, rebuild and relocate some of its restaurants to keep up with the environmental and technological changes. The company must also look into the use of IT to enhance their inventory operations. As the operations in its inbound and outbound logistics improve, the company will expect significant savings and reduction of costs in the operations.

Hire local counsels to deal with the legal conflicts in individual markets on which the company may encounter. In order to be successful, it has to consider all the important social and cultural issues. McDonald's also has to focus upon its dealing of environmental issues. To be successful, it needs to resolve the social, ethical, political, and other environmental issues discussed above, effectively. Lastly, it may focus on younger consumers and try to target their preferences. Young generation especially kids like to come to McDonalds often. By targeting them, the company can increase its customers and generate more revenue.

4.3 THE MAIN OBJECTIVES OF MCDONALDS BUSINESS

SALES

Sales revenue is the total amount of money a company has earned by providing their service or selling their stock. McDonalds wants to sell its product in volumes for masses.

GROWTH
An increase in the Business capacity to produce more stock or provide better service. or greater

PROFIT
Residual value gained from business operations after cutting outexpenses such as stock cost etc.

CUSTOMER SATISFACTION
Providing service to customers to their satisfaction levelsuch as hygienically clean place or high quality food

CONCLUSIONS