• Project Scope: To evaluate the various aspects of Integrated Marketing Communication (IMC). • Description: The project involved an official McDonald’s restaurant tour and a deep understanding of advertising, public relations, direct marketing, sales promotion and personal selling.

1. Project Report
On
“Mc DONALD’S”
“ADVERTISING DOES HELP IN BUILDING BRAND
RECALL, BUT IS ADVERTISING ALONE CAN
SUSTAIN A BRAND ?”
SUBMITTED TO: SUBMITTED BY:
MR. ANGSHUMAN PAUL PAROMITA ROUTH
VIJAY KUMAR
(WA1 SECTION)
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2. ACKNOWLEDGEMENT
The project is a golden opportunity for learning and self development. We consider
ourselves very lucky and honored to have so many wonderful people lead us through
in completion of this project.
We are highly indebted to our Faculty Mr.Angshuman Paul for his guidance and
constant supervision. We would like to thank Ms.Neha Gupta for making all the
arrangements for this visit. They both monitored our progress and arranged all the
facilities. We choose this moment to acknowledge their contribution gratefully.
We are grateful to Mr. Mohd Anwar , restaurant manager and Miss Manisha chettri
from PR pundit agency,who in spite of being extraordinary busy with their duties ,
took time out to hear, guide and keep us on the correct path.
Last but not the least there were so many who shared valuable information that helped
in the successful completion of the project.
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3. Contents…...
Topic Page No.
1. Executive Summary 4
2. Objectives & Scope 5
3. How Marketing Evolved in India 6
4. McDonald’s Marketing Mix 9
5. Communication Tactics 12
6. Integrated Marketing Communication (IMC) Programs 13
 Advertising 13
 Sales Promotion 14
 Public Relations 15
 Direct Marketing 17
 Personal Selling 17
7. Conclusion 18
8. Recommendations 18
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4. EXECUTIVE SUMMARY
The hypothesis of this project is based on the Integrated Marketing Communication Strategies
followed by McDonald’s.
All the findings in this report has been based on primary data collected by us. We went for
McDonald’s visit in Ambience Mall of Gurgaon. We are ably guided by a team of experts.
All the information, which we gain from this visit was vital to us in preparing this report.
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5. OBJECTIVE AND SCOPE
The objective is to study the promotional aspect of the marketing mix which covers all types of
marketing communication. One of the methods employed is advertising, sometimes known as
‘above the line’ activity. Advertising is conducted on TV, radio, in cinemas, online and using
poster sites. What distinguishes advertising from other marketing communications is that media
owners are paid before the advertiser can take space in the medium. Other promotional methods
include sales promotion, point of sale display, merchandising, direct mail, telemarketing,
exhibitions, seminars, loyality schemes, door drops, demonstrations, etc. The skill in marketing
communication is to develop a campaign which uses several of these methods in a way that
provides the most effective results. For example, TV advertising makes people aware of a food
item and press advertising provides more detail. This may be supported by in-store promotions
to get people to try the product and a collectable promotional device to encourage them to keep
on buying the item. It is imperative that the messages communicated support each other and do
not confuse customers. A thorough understanding of what the brand represents is the key to a
consistent message.
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6. How McDonald's evolved its marketing in India
When McDonald's India launched in 1996, urban Indians in Mumbai and Delhi typically ate out
three to fives times a month. In the 15 years since then, that average frequency has doubled and
analysts forecast that by the end of 2011 the Indian quick service restaurant market will be
worth 30,000 crore.
But from their earliest investments in India, multinational company (MNC) owners of restaurant
chains have struggled to adapt to the needs of India's many markets. Some pulled out of the
country after failed ventures. At the time, consolidation of the hugely fragmented Indian retail
sector had also barely begun, and there was scepticism that Indians would prefer burgers and
fast food to local food offerings.
However, in the intervening decade, McDonald's has continued to open new outlets in the
country, evolving its marketing strategy through several phases.
Fifteen years of McDonald's India
McDonald's India was set up as a 50:50 joint-venture between McDonald's at a global level and
regional Indian partners such as Hardcastle Restaurants Private Limited in western India, and
Connaught Plaza Restaurants Private Limited in northern India.
The first Indian McDonald's outlet opened in Mumbai in 1996. Since then, outlets have begun
trading in metropolitan and Tier II towns across the country. The past decade has witnessed a
marked change in Indian consumption patterns, especially in terms of food. Households in
middle, upper, and high-income categories now have higher disposable income per member and
a propensity to spend more."
Phase I: Launching the brand
The starting point for McDonald's India was to change Indian consumers' perceptions, which
associated it with being 'foreign', 'American', 'not knowing what to expect' and 'discomfort with
the new or different'. McDonald's wanted to position itself as 'Indian' and a promoter of 'family
values and culture', as well as being 'comfortable and easy'. Simultaneously, the brand wanted to
communicate that, operationally, it was committed to maintaining a quality service, cleanliness
and offering value for money. From a marketing communications standpoint, they chose to
focus on familiarizing the customer with the brand. The brand was built on establishing
functional benefits as well as experiential marketing.
Until 2000, McDonald's India did not have enough reach to use mass media such as television
advertising. Instead, most of its marketing effort focused on outlet design, new store openings
and PR about its attempts to tailor a menu to Indian tastes.
Products like McAloo Tikki burger, Veg Pizza McPuff and Chicken McGrill burger were
formulated and introduced using spices favored by Indians. The menu development team has
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7. been responsible for special sauces which use local spices do not contain beef
and pork. Other products do not contain eggs and are 100% vegetarian. The
Indianized products have been so well received that they even export McAloo
Tikki burger and Veg. Pizza McPuff to the Middle East.
II Phase: Brand advertising
By 2000, McDonald's India was ready to begin TV advertising. The first Indian TV commercial,
Stage Fright, attempted to establish an emotional connection between the (Indian) family and
the brand. Over the years advertising has reinforced this positioning, supported by promotions."
The Stage Fright campaign aimed to establish McDonald's as a familiar, comfortable place. It
featured a child who suffers stage fright and is unable to recite a poem. On entering
McDonald's, he easily recites it in the store's familiar environment. A second campaign featured
a child and his family moving into a new place. He misses his previous surroundings – until
McDonald's provides something familiar.
These storylines were supported by other initiatives. The company's one-minute service
guarantee attempted to reinforce its reputation for fast, friendly and accurate service and it also
ran in-store events for mothers and children.
In the launch phase the communication focused solely on building brand and product relevance.
The brand's scores on relevance to families and kids were very high. Later, McDonald's realized
there was untapped potential in the youth audience who considered McDonald's expensive and
mainly for children.
They launched the Happy Price Menu with a value message for a younger audience. For the first
time McDonald's India saw a surge of younger consumers and people from socio-economic
class B walk into our stores.
They had realized that the Indian consumer was price sensitive and even though the
organization managed to establish a sense of familiarity, Indian consumers continued to
perceive McDonald's as an expensive eating out option."
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8. McDonald's "Happy Price" campaign
Phase III: Appealing to both ends of the age spectrum
In 2008, the campaign from the McDonalds-Leo Burnett stable uses father-son duos from the
Indian film industry to reiterate the theme of "Yesteryear's Prices". It features Bollywood stars
from past decades together with their sons and a message that prices have not risen in line with
the passage of time.
The Happy Price campaign has also been promoted via virals. Outdoor has also promoted a
home delivery option in a country where home delivery is common in urban areas.
McDonald's has also been exploring strategic tie-ups with Indian sports properties such as the
IPL cricket tournament, where it was one of the event's food providers.
The eating out market in India is very large and has huge potential fuelled by rising disposable
incomes. There are many Indian and international players who have entered in the market since
the last decade and unbranded food chains have also grown significantly. "The Indian consumer
has seen value in what we have to offer at our restaurants which is a testament to our model.
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9. MC DONALDS MARKETING MIX
The marketing mix is a part of the organizations planning process and consists of analyzing the
defined:
 How will you design, package and add value to the product? Product strategies.
 What pricing strategy is appropriate to use? Price strategies.
 Where will the firm locate? Place strategies
 How will the firm promote its product? Promotion strategies.
PRODUCT
McDonald’s product portfolio primarily comprises of vegetarian and non-vegetarian burgers.
The veg. burgers like Mc Aloo tikki burger, Mc Veggie burger, veg. surprise are offered to the
customers. Non veg. burgers include chicken Mc Grill, Mc Chicken burger and chicken
Maharaja burger.
Along with these French fries , veg. pizza Mc puff, wrap chicken Mexican, Mc swirl, soft
drinks, coffee and Mc shakes are also offered to increase the variety in the product portfolio.
McDonalds also provide meal combos with medium fries and medium soft drinks, happy meals
with small soft drinks and value meals.
The most important aspects of this category is functionality, appearance, quality, packaging,
brand, warranty, service/support etc.
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10. PRICE
The customer’s perception of value is the important determinant of price charged. Customers
draw their own mental picture of what a product is worth.
The danger of using low price as a marketing tool is that the customers may feel that a low price
is indicative of compromised quality. It is important when deciding on the price to be fully
aware of brand and its integrity. A further potentially adverse consequence of price reduction is
that competitors match the lower price resulting in no extra demand. This means that the profit
margin has been reduced without increasing the sales.
The most important aspects of this category is list price, discounts, allowances, financing ,
leasing etc.
McDonald's strategy is to offer quality food quickly to customers at a good value. The pricing
structure for McDonald's over years has supported this message. The company strives to
differentiate itself from other fast food restaurants by offering a variety of menu items that
appeal to a variety of people from those who just want great hamburgers, to those who just want
a quick healthy meal. McDonald's differentiates itself by offering a dollar menu, combination
meals, and a free toy with Happy Meals.
Price of different meals available in McDonalds.
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11. PLACE
McDonald's focuses on store placement and are always looking for the best locations. This
strategy created some weakness in the last 10 years because it seemed that too many stores were
put in some areas, cannibalizing sales from the other McDonald's. The company has also made
convenience a focus, not only through how fast it serves customers, but also in the location of
its outlets. Freestanding restaurants are positioned so that you are never more than a few
minutes away by foot in the city or by car in the suburbs. In addition, McDonald's is tucking
restaurants into schools, stores, and more.
The most important aspects of this category is channel members, market coverage, locations,
logistics, service levels etc.
A view of McDonalds , ambience mall , gurgaon.
PROMOTION
McDonald's knows that some customers go to its stores to take a quick break from their day's
activities and not because McDonald's made the food ten seconds faster than their competitors
could. Therefore, McDonald's marketing executives then put together the phrase, "Have you had
your break today?" They continued to develop this idea with "You deserve a break today," and
now are in the "I'm Lovin' It!" mantra. "I'm Lovin' It!" doesn't seem to have as much punch as
the earlier catch phrase, which still seems to be the favorite. McDonald's sees the use of these
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12. catch phrases and the use of the Golden Arches as a very successful way of
differentiating the restaurants from other fast food competitors. McDonald's has
taken price competition out of the picture because the customer feels they have
gotten quality, convenience, service, and value - and McDonald's still makes you
feel like you are getting a break in your hectic day. Creating catch phrases are only one kind of
promotion, and McDonald's uses many kinds of promotions to keep the restaurants at the top.
The most important aspects of this category is advertising, personal selling, public relations,
media, budget etc.
COMMUNICATION TACTICS
EXECUTION STYLE :
 Straight sell or factual message- the information concerning the product should be
straightforward.
 Demonstrations- it illustrates the key advantages of their products and can convince
consumers of the benefits of purchasing McDonalds meal.
 Testimonial- Company can hire someone who praises the products. As an endorser, he
should have an excellent communication skills, popular and well recognized by
everyone.
MEDIA PLAN:
Media objective is to create awareness , attitudes and purchase intention among the target
audience.
 Use TV ads to reach 80 % of target audience over a 1- year period.
 Use the radio to reach the other 20% of target audience over a 1-year period.
 Outdoor billboards will be used all year round to maintain awareness and attitudes.
 Send direct mails to every household every other week.
 Heaviest advertising will be during the fall and summer months.
 Create purchase intention and awareness to non-customers through the use of
sponsorships and events.
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13. INTEGRATED MARKETING COMMUNICATION PROGRAMS
1. ADVERTISING
Advertising does help in building brand recall, but advertising alone does not sustain a brand.
The products that they serve are of international standards and they believe that their brand has
grown because they deliver their promise, sustain the quality and experience promised to the
consumers in the advertisements in the restaurants.
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. This "image" or "reputation" advertising has become a trademark of the company
and created many memorable television moments and themes, including:
McDonalds is your kind of place
You deserve a break today
We do it all for you
You, you are the one.
Nobody can do it like McDonalds can
Renewed: you deserve a break today
Nobody makes your day like McDonalds can
It’s a good time for the great taste of McDonalds
Good times, great tastes , that’s why this is my place
Food, folks and fun
McDonalds Today
What you want is what you get
Have you had your break today
My McDonalds
We love to see you smile
I’m lovin’ it
The new Happy Price Menu campaign is said to be be based on the insight that while people,
especially youngsters are always short of money, there's always a way to make the most of it.
Nitesh Tiwari, executive creative director, Leo Burnett India, said, "They believe happiness
really doesn't cost that much. It's not about how much money you have that makes you happy, it
is about how happily you make the most of it."
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14. The above campaign is for people who're looking for an alternative to having idlis, dosas or
vada pavs for breakfast, McDonald's has launched its breakfast menu in Mumbai. The
communication for the same has been created by Leo Burnett, and the media chosen are OOH,
radio and digital. The plan is to roll out the offering in other cities as well over the next 2-3
years.
SALES PROMOTION
This tool is used through coupons, contests, samples, premiums, demonstrations, displays or
incentives. It is used to accelerate short-term sales, by building brand awareness and
encouraging repeat buying.
McDonalds plan to use incentives as they reward or give consumers extra incentives for
engaging in certain form of behaviours. The incentives that will be used include the use of
coupons and premiums. The free standing inserts allow them to deliver the coupons with high
quality, four coloured images that draw the attention of the consumers. Direct mail is their main
focus area for distributing the coupons.
Happy Meal Offer at McDonalds
Happy Meal : Har Chotti Khushi Ka Celebration. Get the Happy Meal with a Burger, Fries and one
Regular Soft Serve.
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15. VALUE MEALS AND TWO MEALS AT ONE PRICE
Another way to get an effective communication strategy is through buzz marketing. With this
strategy we can get lots of advantages because the consumers themselves who do the marketing
for us. The only matter is we have to create the right buzz and deliver it to them correctly,
otherwise the buzz marketing will goes to another way then we expect it. As per the
conversation, we came to know that people prefer more to buy combo meals or the value meals.
Public Relations
This integrated marketing communications tool is initiated through public appearances,
news/press releases or event sponsorships, to build trust and goodwill by presenting the product,
company or person in a positive light.
McDonalds consider itself a socially responsible and thus effort fully complies to its duties.
Following are the policies of McDonalds:
McDONALDS CORPORATE RESPONSIBILITY= VALUES IN PRACTICE
McDonalds values
 We place the customer experience at the core of all we do.
 We are committed to our people.
 We believe in the McDonalds system.
 We operate our business ethically.
 We give back to our communities.
 We grow our business profitably.
 We strive continually to improve.
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16. Catalogs highlighting the social responsibility aspect of McDonalds
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17. DIRECT MARKETING
This tool will utilized email, mail, catalogs, encourage direct responses to radio and TV, in
order to reach targeted audiences to increase sales and test new products and alternate marketing
tactics. The objective is to inform consumers who are not users about the company and educate
them about how their products are better than the competitors. The strategy of direct mail can
be used which will help to stimulate trial, build brand loyality increase the sales and the market
share and finally lead consumers to repeat purchases. These mails consist of the information on
what specials they have for the week or introducing a new product line.
The above catalog is showing the new spicy range of McDonalds.
PERSONAL SELLING
Setting sales appointments and meetings, home parties, making presentations and any type of
one-to-one communication, to reach your customers and strengthen your relationship with your
clients, initiate this IMC tool. One key advantage personal selling has over other promotional
methods is that it is a two-way form of communication. In selling situations the message sender
(e.g., salesperson) can adjust the message as they gain feedback from message receivers (e.g.,
customer).
The person selling the product should be physically and mentally fit. He should have full
knowledge of the product and the company he is representing. He should be able to explain each
and every aspect of the product i.e. its qualities, how to use it, what precautions to be taken, etc.
He should be able to explain the business and service record of the company. He should also
have knowledge of products of rival companies. So that he can put across the superiority of his
own product.
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18. CONCLUSION
McDonalds's today is one of the world's great entrepreneurial organizations, with four out of
every five restaurants worldwide run by an affiliate partner of the company or a franchisee.
There are about 30,000 restaurants in more than 119 countries, serving around 50 million people
everyday. While much of India's retail sector is struggling, McDonald's has been largely
unaffected by the slowdown and is planning on accelerating its expansion on the subcontinent.
Advertising does have its impact on consumers, but if the product that is being advertised is not
good enough, then it is very difficult to maintain consistency in the sales figures. Most
customers, who visit any McDonald's restaurant once, do come back. Their customer base has
increased substantially since they started operations. The past four years has seen very high
trials from first-time customers- averaging 77-80%. Now they are trying moving away from
inviting trials and focussing on building customer loyalty.
They believe in the McDonald's promise of "With a sense of fun and youthful spirit, will
proudly serve an exceptional McDonald's eating experience that makes all people feel special
and makes them smile, every customer, every time." Every employee strives towards providing
100 percent customer satisfaction. They do not compromise on the quality of products and have
stringent checks at every step to ensure this. All these have resulted in developing a loyal
customer base that keeps visiting them again and again. They do believe that it is this drive
towards providing the best that keeps us head and shoulders above the rest.
So, advertising does help in building brand recall, but advertising alone does not sustain a
brand. All the other aspects of integrated marketing communication like sales promotion,
personal selling, PR, direct marketing plays a vital role is sustaining a brand.
RECOMMENDATIONS
 Consumers likes, dislikes tastes and preferences, health etc. have to be taken into
consideration.
 Company has to adapts itself to the local culture.
 Low fat food should be launched.
 Cheese French fries can be a good option.
 They should come up with more variety of puff and rolls.
 In the malls McDonalds outlet should be enriched with high class restaurant and
soothing music.
 Outlets should be there in colleges too.
 Company should promote games on every table.
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