RETAIL AND SERVICE MANAGEMENT

AIM

The aim of this report is to identify, understand and examine the retail marketing strategy of Mc Donald’s and recommend a course of action to improve the same.

STUDY OBJECTIVE

The objective is to critically analyze Mc Donald’s position through:

  1. Industry Analysis including a fact-sheet about the industry and the retail outlet.
  2. Environment Analysis including the external, customer, internal and SWOT analysis.
  3. Retail Strategy Analysis including the current retail mix and proposing a strategy.

METHODOLOGY

The data has been collected from the following sources:

  1. Primary Data: Collected by visiting the retail outlet and making observations, semi-structured interviews of various executives & workers and also through customer surveys using questionnaires and personal interviews.
  2. Secondary Data: This was collected through books, magazines, journals, Internet, industry reports, newspapers and company brochures.

INTRODUCTION

Retailing consists of the  of goods or merchandise from a fixed location, such as a  or , or by post, in small or individual lots for direct  by the purchaser. Retailing may include subordinated services, such as delivery. It is the last stage in the distribution channel.

 

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THE WORLD OF RETAILING

Retailing in India

India retail industry is the largest industry in India, with an employment of around 8% and contributing to over 10% of the country's GDP. Retail industry in India is expected to rise 25% yearly being driven by strong income growth, changing lifestyles, and favorable demographic patterns. With the opening of new formats like departmental stores, supermarket chains, malls and others stores, Indian retail industry has come across a new era with a new experience to Indian customers.

FOOD INDUSTRY IN INDIA

India being world’s second largest producer of foods has the potential of being the world’s biggest consumer and producer of food. The accomplishments of the green and white revolutions have, however, not been matched by concurrent developments in supply chain management, and in new technologies for better processing, preservation, and storage of food. The Indian food industries sales turnover was Rs. 140,000 crores in the year 2000 & is predicted to increase by almost 15% by 2008.




MARKETING STRATEGY

 

           

McDonald’s around the globe being well established in metropolitan and large cities of India, now it plans to extend its business by reaching the small cities of India as well. There future plan is to establish a large number of retail format, self- service, family restaurants and small retail ice-cream parlors at various vintage location. The retail format will be open at the shopping mall at the metro stations, gas station etc… The organization has planned to start home delivery services in small cities as well. The future prospects of the company are to open more than 300 restaurants and 150 ice-cream parlors by the end of 2010. McDonald’s owns many agricultural farms also by which they supply French fries, milk products and bread buns all over the globe. Thus, McDonald’s following the market development growth strategy is entering new markets with existing product.


Our recommendation

McDonald’s being a global presence by supplying almost 1% of total population of the world should follow growth strategy. It should enter new markets with new products with a large variety of health conscious food to improve upon the image which it is carrying currently, i.e, a supplier of non-healthy food. It should develop new products according to the taste of the market it plans to enter in accordance with the culture and traditions.

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COMPETITOR’S ANALYSIS

Product Form\Brands Competitors

Product Substitute\Product Competitors

Coffee chains: Barista, Star bucks, Costa coffee, Café Coffee Day, Peets coffee.

  • Food Courts in Malls and organized food counters
  • Dhabas, Mithai Shops and hotel restaurants
  • Other family restaurants.

Generic food counters

  • Precooked meals sold in supermarkets
  • Packed food
  • Road side hawkers

Advantages of McDonalds in comparison to others:

Retail Mix

Today’s retail sector has grown rapidly, thus intensifying the competition. If a company in the present scenario wants to ...

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