Introduction
Many multinational fast food chains (MFFC) like McDonald's and KFC are opening outlets in India. A fascinating aspect of these companies is the intricate marketing process they employ to gain a stronghold on the market. The marketing process becomes even more involved due to the behaviour of Indian customer being different from that of the western countries, where these chains have typically been operating. Even with several outlets in various locations in India, the marketing process of a new outlet typically has to be thought from scratch due to the wide diversity across the country.
Recently, McDonalds has decided to expand into Bangalore in a big way. Praveen Bose Bangalore Burger chain McDonalds plans to invest Rs 50
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The secondary research serves the purpose of creating a background for this project and provides data that cannot be obtained from primary research.
6)While the two fast food chains cater to different, an attempt will be made to study which marketing strategy is more effective and why.
Literature Survey
The first McDonald's restaurant was founded in 1940 by brothers Dick and Mac McDonald in San Bernardino, California. The McDonald's restaurant gained fame after 1948, when the brothers implemented their innovative "Speedee Service System", an assembly-line hamburger construction and self-serve operation.
In 1954, entrepreneur and milkshake-mixer salesman Ray Kroc became interested in the McDonald's restaurant when he learned of its extraordinary capacity. Upon seeing the restaurant in operation, he approached the McDonald brothers with a proposition to open new McDonald's restaurants, with himself as the first franchisee. Kroc worked hard to sell McDonald's. He even attempted to prevail on his wartime acquaintance with Walt Disney, in the failed hope of opening a McDonald's at the soon-to-be-opened Disneyland. Eventually he opened his first restaurant in Des Plaines, Illinois. It was an immediate success.
Kroc's new company was originally named "McDonald's Systems Inc.", and was founded March 2, 1955. In 1960, the company was renamed "McDonald's Corporation".
One of Kroc's marketing insights was his decision to
McDonalds was founded in 1943, and 1967 British Colombia was its first international expansion, advertising to middle and upper class. McDonalds decided to expand internationally, due to the enormous success in America. There was heavy research involved in the expansion. Through globalization and internationalization, McDonalds were able to develop marketing strategies according to cultural needs, to serve specific target markets. McDonalds enter India’s foreign market and 1996 and is a tough foreign market to enter, but with McDonald’s success they were able to earn high revenue in India. The success strategy is researching and the development of food. McDonalds thoroughly analyzed the preferred taste, especially to not offend locals. Their key to success is to “think global, act local.”
He was granted a licence to be a franchisee and opened his first store in Des Plaines near Chicago, Illinois in 1955. By 1959 he and the McDonald brothers had 100 restaurants running. In 1961 Kroc brought the rights of the McDonalds restaurants from the brothers for $2.7 million. 9 years later, he had over 1,000 restaurants in America, Canada and Puerto Rico. Kroc then made the decision to expand stores faster and further away, by 1972 he had opened an additional 1,000 restaurants worldwide.
Now, in 1954, a man named Ray Kroc joined McDonald’s and helped create it into a fast food empire by spreading the idea of the Speedee Service System nationwide. He had originally went to McDonald’s to convince the brothers who owned to by his milkshake machine, but fell in love with their Speedee Service System. He convinced the brothers to let him buy the franchise and helped developed the business nationwide. After finalizing the agreement, he wrote to his old friend, Walt Disney to ask if he (Kroc) could place a McDonald’s in his amusement park, Disneyland. Disney forwarded the idea to the executives over the park and in return the executives demanded that Kroc raise the prices on the food so that they could make a profit off of it. Kroc refused.
Kroc gave McDonald’s to people willing to allot great amount of time and effort in the McDonald’s name. His idea turned out to be affluent as many ideas were created because of this caring franchisees. The Filet-O-Fish (originally intended for Catholics during lent), Big Mac (in celebration to its fifth billion burger sold), Egg McMuffin (wanted to cater to breakfast lovers) ,Quarter Pounder, and McFlurry were all introduced by franchisees and all reaped prosperous benefits. In 1956 Kroc hired Harry Sonneborn, a former vice president of finances at ‘Tastee Freeze”. Harry quickly rose among the ranks at McDonald’s Corp. and even became the very first president and chief executive. A couple months later Sonneborn pitch the idea that McDonald’s hould own the buildings of the franchise and make franchisees pay rent. They even could evict franchisees if necessary for the first time. This revolutionized McDonald’s turning them into a semi-real estate institution forever changing urban land
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. Kroc was also noted for aggressive business practices, compelling the McDonald brothers to leave the fast food industry. The McDonald brothers and Kroc feuded over control of the business, as documented in both Kroc 's autobiography and in the McDonald brothers ' autobiography. The site of the McDonald brothers ' original restaurant is now a monument.
Ray kroc named mcdonald's from his friends Dick and Mac Mcdonald. Ray opened the first mcdonald's in 1955 in Des Plaines, Illinois. In 1959 the 100th mcdonald’s opened in chicago. In 1963 there was one billion hamburgers sold. Also opened its 500th location.
Ray Kroc had shown the leadership skills Dick and Maurice McDonald lacked throughout his time spent with the corporation. He had proven himself to be a leader by taking steps the McDonalds brothers failed to do. Kroc had first bought his own franchise where he recruited sharp and well suited workers and then later gained exclusive rights to McDonalds and was able to sell more franchises than the McDonalds brothers ever could. Although he did sacrifice extensively throughout the first years of his journey with the company, he later found great success. Although the McDonalds brothers contributions were great, their vision and
Kroc continually clashed with the McDonalds brothers over changing the formula. He decided that he wanted full control of McDonald’s. In 1967, Kroc bought out the brothers for 2.7 million cash. This, however, did not include the original McDonald’s. Without the rights to their own name, the brother were forced to change the name of their original restaurant to The Big M. Kroc decided to open a McDonald’s one block away. By doing this he put the McDonald brothers out of business for good.
McDonald’s began as a barbeque, and the brothers strictly offered burgers, fries, and pop. Ray Kroc heard about McDonald’s one day and went to visit the restaurant. Kroc was surprised by their efficiency and the quality of the food. Kroc liked the fact that the brothers could focus on the quality of food, due to the limited menu items. Subsequently Kroc realized their success could amount to much more and shared his vision. Kroc told the McDonald brothers that McDonald’s could be a national business serving people across the country. (At this point, Kroc did not even think about being international). Dick and Mac were thrilled with what they heard, so in 1955 Kroc founded the McDonald’s Corporation and opened the first McDonald’s in Des Plaines, Illinois. By 1960 Kroc had bought exclusive rights to McDonald’s. In 1961, Kroc developed Hamburger University where new employees were trained on how to run a successful McDonald's. Kroc wanted to develop the most efficient methods to store, cook, and sell food, so he had a laboratory built at Hamburger University where students' test different ways to make McDonald's more productive. Hamburger University is still in use today in the search for ways to better McDonald’s. McDonald’s had their first sit-down restaurant in 1962, and then in 1975, McDonald’s had opened their first drive-thru restaurant in Arizona. The first drive-thru restaurant was
Kroc eventually became a traveling salesman for Prince Castle in 1941. Kroc started this business. Prince Castle was a business that sold food processing equipment and Kroc was a salesman for selling multi-mixer milkshake machines. This job did really well for Kroc until the early 1950’s when the growing popularity of soft serve ice cream stands came into play. He started to take note of his customers and one of them happened to be the McDonald brothers who were in San Bernardino, California. They owned a small chain and previously purchased 5 mixers from Kroc. Ideas started flowing through Kroc’s head. He then became convinced that he can take the setup of the small chain had the potential to explode all across the nation. Kroc realized that this restaurant was designed to attract young families. There was a limited menu of assembly line products that was sold in self-service, clean, drive in where the service was fast, prices were reasonable, the food quality was high, and it mostly the food stayed consistent. So then the McDonald brothers then made Kroc the new Franchise agent of McDonalds Inc.
McDonald’s was open opened by Dick and Mac McDonald which was known as McDonald’s Bar-B-Que restaurant in 1940, in San Bernadino, CA. this only lasted a few months’ and they then close and rebranded and open “McDonald’s” as we now know as a
In 1954 Ray Kroc became the first franchisee appointed by Mac and Dick McDonald in San
McDonald has been a well-known and valuable brand for over half a century. The company’s mission and vision is striving to be the world’s best quick service restaurant and formalizing their beliefs into “People, Vision, and People Promise”. “Quality, Service, Cleanliness and Value” also became the company’s motto. The company’s first McDonald store was built “in 1940 by the original McDonald brothers, Dick and Mac. Later in 1954, Ray Kroc became the first official franchisee appointed by Dick and Mac McDonald in San Bernardino, California” (Chandiramani, Ravi). Soon after, Mr. Kroc opened his first restaurant in Des Plaines, Illinois, and the McDonald’s corporation was created. The new franchise began to grow rapidly as a result of its
This organization began in 1940, by the brothers Richard and Maurice McDonald, in San Bernardino California. McDonald Corporation today dates its founding to the opening of a franchise restaurant by Ray Kroc, in Des Plaines Illinois, in 1955. The system of “speedy service System” in 1948 established the principals of modern fast – food restaurant.
The first McDonald's restaurant was opened by brothers Dick and Mac McDonald in 1940 on Route 66 in San Bernadino, California. The menu had about 25 offerings, and carhops brought the food out to patrons waiting in their cars.