Distribution centers (DC)

The DC is responsible for procurement quality inspection programs storage inventory management deliveries to the restaurants and data collection, recording and reporting. Value management deliveries to the restaurants and data collection, recording and reporting value added services like repacking of promotional item are also carried out at the DC. The DC plays a very vital role in maintaining the integrity of the products throughout the entire cold chains – the distribution systems that ensure the products, which arrive at McDonald’s restaurants from suppliers all over India, are absolutely fresh and as per McDonald’s Quality standards.

The increase in the number of restaurants investments in multi temperature trucks and systems which enable the tracking of demand and supply have helped control inventories. On its part, McDonald’s constantly pushes its suppliers and DC’s to bring costs down. Suppliers have to hence, necessarily find ways of improving efficiencies reducing time and cutting costs.

In the restaurants products are used on a first in first out basis the ensure freshness. All McDonald’s products are prepared using the most current state of the art cooking equipment to ensure quality and safety. On an average 20 different quality checks are carried out before any product is served to the customers.

The increase in the number of restaurants investments in multi temperature trucks and systems, which enable the tracking of demand and supply have helped control inventories. On its part McDonald’s constantly pushes its suppliers and the DC to bring costs down. Suppliers have to hence, necessarily find ways of improving efficiencies, reducing time and cutting costs.

Building the brand

Once the infrastructure was ready, the build up towards the opening of the first McDonald’s restaurants in India began. A 3600 approach was taken wherein the marketing, advertising and the public relations support were garnered before the launch.

When McDonald’s launched its first restaurant in India, the advertising done was largely local in nature. Teaser campaigns in local newspapers and extensive PR were used. Ronald McDonald parades also helped create excitement in the first few months f the launch. McDonald’s had positioned its restaurant as a family restaurant and barred smoking and serving of alcohol on its premises.

In the first two years of its launch in India, the advertising worked on increasing footfalls at its restaurants. Economy pricing of products like the ice cream cone at Rs 7 bounce back coupons with every cone and Econo meals at Rs 29, 39 and 49 played a major role in getting customers into the restaurants. The results were apparent – a 48 per cent increase in footfalls and a corresponding 30 per cent hike in sales.

From the onset McDonald’s had positioned itself as a family restaurant and barred smoking and serving of alcohol on its premises. From the year 2000, McDonald’s focused on creating a distinct image of the brand in the mind of the consumer and launched its McDonald’s main hai kuch baat campaign. It was the first Quick Service Restaurant [QSR] brand in the country to start advertising on television. The first commercial Stage fright brought out the emotional band between father and child. The endearing TV commercials that followed had fathers consoling forlorn sons with a treat at McDonald’s a homely place where thy got all the approval they needed, a familiar landmark in a child’s life marked be residence shifts. The core idea to depict the strong bond that McDonald’s enjoyed with children.

In the same year the company aired its TV commercial for the Rs 7.0 soft serve cone campaign thereby establishing its value proposition. However, research also indicated that people were unaware of the food served by McDonald’s. This led to the creation of an advertising campaign which focused on familiarizing customers with the food served at McDonald’s. The film showed people dreaming of the food served at McDonald’s thus depicting to range of products it offered. Subsequently in 2002, the company moved to a new tagline Toh Aaj McDonald’s Ho jaye which indicated that now McDonald is apart of your daily life.