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Category Archives: Case Study

McDonald’s : Behind The Golden Arches

The McDonald’s Story – Genesis

The story of McDonald’s started in 1954, when its founder Raymond Kroc saw a hamburger stand in San Bernardino, California and envisioned a nationwide fast food chain. Kroc proved himself as a pioneer who revolutionized the American restaurant industry. Today McDonald’s is theCalifornia world’s largest fast food chain serving 47 million customers daily. McDonald’s is now one of the most valuable brands globally, worth more than $25 billion. The Golden Arches and its mascot Ronald McDonald have gained universal recognition. Though the company has roots in the US, McDonald’s today has become an accepted citizen of the world.

Year Events
1955 Ray Kroc opens his first restaurant. McDonald’s Corporation is created
1957 Quality, Service, Cleanliness and Value (QSC & V) becomes company motto
1963 Ronald McDonald makes debut
1965 The company goes public
1968 Big Mac is introduced`
1974 Happy Meal is launched
1996 McDonald’s opens in India, the 95th country

Business Model

  • Franchise Model – Only 15% of the total number of restaurants are owned by the Company. The remaining 85% is operated by franchises. The company follows a comprehensive framework of training and monitoring of its franchises to ensure that they adhere to the Quality, Service, Cleanliness and Value propositions offered by the company to its customers.
  • Product Consistency – By developing a sophisticated supplier networked operation and distribution system, the company has been able to achieve consistent product taste and quality across geographies.
  • Act like a retailer and think like a brand – McDonald’s focuses not only on delivering sales for the immediate present, but also protecting its long term brand reputation.

McDonald’s in India

McDonald’s entered India in 1996. McDonald’s India has a joint venture with Connaught Plaza Restaurants and Hard Castle Restaurants. Connaught Plaza Restaurants manages operations in North India whereas Hard Castle Restaurants operates restaurants in Western India. Apart from opening outlets in the major metros, the company is now expanding to Tier 2 cities like Pune and Jaipur.

Challenges in Entering Indian Markets

  • Regiocentricism: Re-engineering the menu - McDonald’s has continually adapted to the customer’s tastes, value systems, lifestyle, language and perception. Globally McDonald’s 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 be responsive to the Indian sensitivities. So McDonald’s came up with chicken, lamb and fish burgers to suite the Indian palate.
  • The vegetarian customer – India has a huge population of vegetarians. To cater to this customer segment, the company came up with a completely new line of vegetarian items like McVeggie burger and McAlooTikki. The separation of vegetarian and non-vegetarian sections is maintained throughout the various stages.

Segmentation, Targeting and Positioning

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

Segmentation, Targeting & Positioning

As shown above, kids reign supreme in FMCG purchase related to food products. So to  attract children McDonalds has Happy Meal with which toys ranging from hot wheels to various Walt Disney characters are given (the latest in this range is the toys of the movie Madagascar). For this, they have a tie-up with Walt Disney. At several outlets, it also provides special facilities like ‘Play Place’ where children can play arcade games, air hockey, etc. This strategy is aimed at making McDonald’s a fun place to eat. This also helps McDonald’s to attract the young urban families wanting to spend some quality time while their children have fun at the outlet. To target the teenagers, McDonald’s has priced several products aggressively, keeping in mind the price sensitivity of this target customer. In addition, facilities like Wi-Fi are also provided to attract students to the outlets like the one at Vile Parle in Mumbai.

“Mc Donald’s mein hai kuch baat”

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Monopoly of Indian Railways : IIM Case Study

In economics, a monopoly (from the Latin word monopolium – Greek language monos, one + polein, to sell) is defined as a persistent market situation where there is only one provider of a product or service. Monopolies are characterized by a lack of economic competition for the good or service that they provide and a lack of viable substitute goods.

Monopoly should be distinguished from monopsony, in which there is only one buyer of the product or service; it should also, strictly, be distinguished from the (similar) phenomenon of a cartel. In a monopoly a single firm is the sole provider of a product or service; in a cartel a centralized institution is set up to partially coordinate the actions of several independent providers (which is a form of oligopoly).

Primary characteristics of a monopoly

  • Single Sellers

A pure monopoly is an industry in which a single firm is the sole producer of a good or the sole provider of a service. This is usually caused by barriers to entry.

  • No Close Substitutes

The product or service is unique in ways which go beyond brand identity, and cannot be easily replaced (a monopoly on water from a certain spring, sold under a certain brand name, is not a true monopoly; neither is Coca-Cola, even though it is differentiated from its competition in flavor).

  • Price Maker

In a pure monopoly a single firm controls the total supply of the whole industry and is able to exert a significant degree of control over the price, by changing the quantity supplied (an example of this would be the situation of Viagra before competing drugs emerged). In subtotal monopolies (for example diamonds or petroleum at present) a single organization controls enough of the supply that even if it limits the quantity, or raises prices, the other suppliers will be unable to make up the difference and take significant amounts of market share.

  • Blocked Entry

The reason a pure monopolist has no competitors is that certain barriers keep would-be competitors from entering the market. Depending upon the form of the monopoly these barriers can be economic, technological, legal (e.g. copyrights, patents), violent (competing businesses are shut down by force), or of some other type of barrier that completely prevents other firms from entering the market.

Price setting for unregulated monopolies

 Price setting for unregulated monopolies

In economics a company is said to have monopoly power if it

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Consumer Behaviour towards EMU Trains:TAMBARAM Railway Station: with Questionnaire

Indian Railways…. the golden Era

16th April, 1853……………The Beginning

The first railway on Indian sub-continent ran over a stretch of 21 miles from Bombay to Thane.

The idea of a railway to connect Bombay with Thane, Kalyan and with the Thal and Bhore Ghats inclines first occurred to Mr. George Clark, the Chief Engineer of the Bombay Government, during a visit to Bhandup in 1843.

The formal inauguration ceremony was performed on 16th April 1853, when 14 railway carriages carrying about 400 guests left Bori Bunder at 3.30 pm “amidst the loud applause of a vast multitude and to the salute of 21 guns.” The first passenger train steamed out of Howrah station destined for Hooghly, a distance of 24 miles, on 15th August, 1854. Thus the first section of the East Indian Railway was opened to public traffic, inaugurating the beginning of railway transport on the Eastern side of the sub-continent.

In south the first line was opened on Ist July, 1856 by the Madras Railway Company. It ran between Veyasarpandy and Walajah Road (Arcot), a distance of 63 miles. In the North a length of 119 miles of line was laid from Allahabad to Kanpur on 3rd March 1859. The first section from Hathras Road to Mathura Cantonment was opened to traffic on 19th October, 1875.

These were the small beginnings which is due course developed into a network of railway lines all over the country. By 1880 the Indian Railway system had a route mileage of about 9000 miles.

INDIAN RAILWAYS, the premier transport organisation of the country is the largest rail network in Asia and the world’s second largest under one management.

Indian Railways is a multi-gauge, multi-traction system covering the following:

Track Kilometres Broad Gauge
(1676 mm)
Metre Gauge
(1000 mm)
Narrow Gauge (762/610 mm) Total
86,526 18,529 3,651 108,706
Route Kilometres Electrified Total
16,001 63,028

7566 -  locomotives

37,840  -  Coaching vehicles

222,147 -  Freight wagons

6853  -  Stations

300  – Yards

2300  -  Goodsheds

700  -  Repair shops

1.54 million – Work force

Indian Railways runs around 11,000 trains everyday, of which 7,000 are passenger trains.

Chennai suburban railways

  • 1 Routes
    • 1.1 Central – Avadi – Tiruvallur – Arakkonam – Thiruttani
    • 1.2 Central – Thiruvottiyur – Ennore – Ponneri – Gummidipoondi – Sulurpet
    • 1.3 Beach – Egmore – Mambalam – Guindy – Meenambakkam – Tambaram
    • 1.4 MRTS
  • Beach – Egmore – Mambalam – Guindy – Meenambakkam – Tambaram
  • Stations: Chennai Beach – Chennai Fort – Park – Chennai Egmore – Chetpet – Nungambakkam – Kodambakkam – Mambalam – Saidapet – Guindy – St. Thomas Mount – Pazhavanthangal – Meenambakkam – Trisulam – Pallavaram – Chromepet – Tambaram Sanatorium – Tambaram – Perungalathur-Vandalur-Urapakkam-Guduvancheri-Potheri-Kattangulathur-Maraimalai Nagar Kamarajar-Singaperumal Koil-Paranur-Chengalpattu-Villiambakkam-Palur-Palayasivaram-Walajabad- Nathapettai-Kanchipuram-Tirumalpur-Thakolam-Arakkonam

Scope of project

This project gave us great exposure to the customer’s perception, because it includes the service offered. This project helped us in knowing the market practically.

Our job

  1. Drafting questionnaire for the better understanding of passengers satisfaction level
  2. Collection of data on passenger traffic on weekdays and on weekends.
  3. Check the availability of prominent display boards at railway stations.
  4. Finding out the problems that the commuters are facing while travelling.

Key findings:-

  1. By calculating the number of responses, we found that most of the people were satisfied with the timings of train services (Beach-Tambaram route).
  2. Possession of monthly passes by the commuters indicated clearly, that bulk of them were strongly brand loyal.
  3. We also came to know while visiting the stations, that there was big problem of less number of ticket counters.
  4. Many commuters were facing the problem of wooden seats, which were very uncomfortable.
  5. As there were good number of coaches where the seating capacity is more plying on the Beach-Tambaram route, travelling during peak hour time was a nightmare.

SWOT

STRENGTH

l  Indian railways is a 100% Government of India owned organization

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4E’s of Marketing:New Marketing Eco-System

FROM 4P’s TO 4E’s

From … Product, Place, Price, Promotion

To… Experience, EveryPlace, Exchange, Evangelism..

1. From Product to Experience :-

BEAUTY SHOPPING JOURNEY!!

Beauty Shopping Journey

Hershey’s..

Hershey's

Six Flags..

Six Flags

From Place to Everyplace : –

Everyplace

More Everyplace : –

Banners, portals, pop-ups, pop-unders, e-mail messages,

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Marketing Mix : SWOT : Travel & Tourism Industry : SOTC, Cox & Kings, Kuoni, Thomas Cook, Kesari and Raj Travels

INTRODUCTION TO THE INDUSTRY

The Travel and Tourism industry is still one of the largest single businesses in world commerce and its importance is widely recognized.

The tourism industry is now one of the largest sectors earning foreign exchange. In the face of many benefits, many countries have started assigning due weightage to the tourism industry in their national development agenda.

Tourism statistics:

i. The tourism industry as a whole is presently estimated to earn over US$ 3.5 trillion worldwide.

ii. The travel and tourism industry generates about 11% of world GDP and 200 million jobs across the global economy.

TOURISM INDUSTRY IN INDIA

Indian Tourism industry is one of the most important export industries of the country. Although the international tourist inflow is relatively low, India has found tourism emerging as an important sector of its economy.

Recent statistics have revealed that during the first quarter of 2006, the performance of the tourism industry has been very encouraging which has registered an 11% increase in foreign tourist arrivals.

India Tourism office at Tokyo won two International Awards in Tour Expo held at Daegu in Korea for excellent tourism promotion. Indian Pavilion won the Best Booth Design Award as well as Best Folklore Performance Award competing with major players in tourism such as China, Japan, Thailand, Malaysia and Canada.

About the company

The Kuoni Travel Group, India

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Bombay Stock Exchange : WIPRO : Public Relation

Introduction- About Bombay Stock Exchange:

Bombay Stock Exchange Limited is Asia’s oldest stock exchange. It carries within itself the depth of knowledge of capital markets acquired since its inception in 1875. Located in Mumbai, the financial capital of India, it has been the backbone of the country’s capital markets. In terms of organization structure, the Board formulates larger policy issues and exercises over-all control. The committees constituted by the Board are broad-based. The day-to-day operations of the Exchange are managed by the Managing Director and a management team of professionals.

The Exchange has a nation-wide reach with a presence in 417 cities and towns of India. The systems and processes of the Exchange are designed to safeguard market integrity and enhance transparency in operations.

Objectives of BSE:

Bombay Stock Exchange is a capital market regulator, which aims to ensure fair, transparent and safe market, promote and inculcate honorable and just trading practices in securities and to discourage malpractices. BSE is also positioning itself as a major player in providing training and skill enhancement in the capital markets in India and other emerging markets.

Services offered by BSE:

BSE offers a wide range of products for trading in the securities market. An investor can choose from 4,687 listed companies. For the easy reference of investor, companies are classified into A, B1, B2, and Z groups. Another feature of equity trading at BSE is the ‘Basket Trading’ facility.

It also has a wide range of services to empower the investors and facilitate smooth transactions:

  1. Investor Services:

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ITC : e Choupal : Rural Marketing : Marketing Strategy

INTRODUCTION
In recent years, rural markets of India have acquired significance, as the overall growth of the Indian economy has resulted into substantial increase in the purchasing power of the rural communities. On account of green revolution, the rural areas are consuming a large quantity of industrial and urban manufactured products. In this context, a special marketing strategy, namely, rural marketing has emerged. But often, rural marketing is confused with agricultural marketing – the latter denotes marketing of produce of the rural areas to the urban consumers or industrial consumers, whereas rural marketing involves delivering manufactured or processed inputs or services to rural producers or consumers.

WHAT MAKES RURAL INDIA ATTRACTIVE?
It is an upcoming market and the following facts substantiate this-
 800 million people
 Estimated annual size of the rural market
• FMCG Rs 65,000 Crore
• Durables Rs 5,000 Crore
• Agri-inputs (incl. tractors) Rs 45,000 Crore
• 2 / 4 wheeler vehicles Rs 8,000 Crore
 In 2001-02, LIC sold 55 % of its policies in rural India.
 Of two million BSNL mobile connections, 50% are in small towns/villages.
 Of the six lakh villages, 5.22 lakh have a Village Public Telephone (VPT)
 41 million Kisan Credit Cards issued (against 22 million credit-plus-debit cards in urban) with cumulative credit of Rs 977 billion resulting in tremendous liquidity.
 42 million rural households are availing banking services in comparison to 27 million urban households.
 Investment in formal savings instruments: 6.6 million households in rural and 6.7 million in urban India.
 Nano-Marketing or sachets worked well in rural India and there is ample scope for the products to be accepted by consumers if the price is competitive.

MARKETING STRATEGIES TO CAPTURE RURAL INDIA

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Music Branding : The Power of Music in Branding

MusicEquity

‘The erosion of mass markets and consumer trends towards customisation and personalisation is driving marketing towards an experience-based economy.’

Music is a powerful medium that can bring the emotional qualities of products and services to life and help activate a Brand promise. The beat of the music can literally connect with the heartbeat of the consumer. The power of music and how to use it to achieve greater success in the brand arena, however, is currently misunderstood and undervalued. This paper discusses four principles that will help companies recognise the value of music in the context of branding. It will also address how to evaluate music opportunities and successfully integrate them into a wider, long-term business strategy. The four concepts discussed are as follows: Music Identity, Music Strategy, MusicEquity and Music Differentiation.

MUSIC IDENTITY

Brand identity carried through music

In recent years, consumer purchase decisions have become more weighted towards emotional attributes rather than functional benefits. As we become increasingly ‘high tech’, we crave personalisation and ‘high touch.’ Subsequently, experienced-based marketing that focuses on communicating the emotional values of Brands is the current trend and way forward. The true marketing potential of music is that without any other stimulus, it can access a mood, emotion, and deeply move specific demographics within a target market in just a few seconds. In addition, the heritage of music, through the artist, genre,etc., can reflect a culture, a time period and lifestyle without even playing a note! Musicians and songwriters themselves have an innate talent for making connections and distilling a message into its essence. They are often dreamers and visionaries who operate on an emotional level – natural drivers of direction and catalysts for expressing complex social issues in contemporary voice. In addition, with new multimedia platforms such as interactive mobile phones, music can further extend its reach and ability to impact the consumer on a multitude of levels. The television commercial has historically been the initial platform where Brands have used music to support a visual idea. It is therefore a logical first place in creating a Brand’s Music Identity. The GAP creative teams have excelled with this approach. The GAP has a very clear and compelling music DNA: fun, edgy, innovative, approachable and personal. The consistency of the style of its television commercials, plain white backdrops with young energetic multicultural people, with bold exciting music, is The GAP identity glue under which a host of different products have been successfully launched. They have created a formula that clicks in the consumer’s mind. The GAP clearly understands that building a Brand by ‘tone of voice’ requires repetition and exposure.

The GAP have repeatedly used this format and as a result helped promote artists’ new tracks in seasonal commercials. When singer-songwriter Rufus Wainright appeared in a Christmas commercial, the record company began promoting him as “that guy who appeared in The GAP commercial.” Macy Gray got her break in a Baby GAP commercial and more recently Mariannne Faithful and Taryn Manning closed the generation gap demonstrating once
again how a strong Music Strategy could be used to convey a message on a powerful  and continue to reach the right markets. What then emerged is the most interesting and significant dimension to all of the above. The public started to talk about The GAP commercials outside of the environment of the commercial – its reach was extended and other media started to contribute to its PR strategy without it costing the Brand a penny. Rather than The GAP commercials looking like a rip off from something from MTV

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Globalization : Friend or Foe?

There are so many views of Globalization. Is Globalization beneficial or destructive? Is it just another form of Westernization? Well, just like anything in life there are good and bad qualities that develope. Globalization increases the standard of living. It brings wealth, technology, international trade, and stronger economy structures, organizations like WTO and OPEC, and education. At the same time with the growing expansions of corporations, human rights dwindle, culture and tradition are changed or abandoned, there is more immigration and outsourcing, and conflict develops over mixed views and ideas.

Definition : Globalization is the tendency of businesses, technologies, or philosophies to spread throughout the world, or the process of making this happen. The global economy is sometimes referred to as globality, characterized as a totally interconnected marketplace, unhampered by time zones or national boundaries. The proliferation of McDonalds restaurants around the world is an example of globalization; the fact that they adapt their menus to suit local tastes is an example of globalization (also known as internationalization), a combination of globalization and localization.

Whether or not the establishment of the global marketplace will be beneficial is in dispute. Proponents believe that globalization has the potential to create greater opportunities for growth throughout the world, benefiting the developed nations while leveling the playing field everywhere else; opponents of globalization believe that it will merely increase the opportunities for the wealthier nations to take advantage of the poorer ones and, furthermore, could eradicate regional diversity and lead to a homogenized world culture.

The rise of multinational corporations and outsourcing have played a crucial part in globalization. Shown here is Microsoft’s technical support center in Bangalore, India.

Economic globalization has had an impact on the worldwide integration of different cultures. Shown here is a Tata Steel plant in the United Kingdom.

Globalization can be described as a process by which the people of the world are unified into a single society. This process is a combination of economic, technological, sociocultural and political forces.[1]

Advantages and Disadvantages of Globalization

Some Advantages

Some Disadvantages

  • Increased free trade between nations
  • Increased liquidity of capital allowing investors in developed nations to invest in developing nations
  • Corporations have greater flexibility to operate across borders
  • Global mass media ties the world together
  • Increased flow of communications allows vital information to be shared between individuals and corporations around the world
  • Greater ease and speed of transportation for goods and people
  • Reduction of cultural barriers increases the global village effect
  • Spread of democratic ideals to developed nations
  • Greater interdependence of nation-states
  • Reduction of likelihood of war between developed nations
  • Increases in environmental protection in developed nations
  • Increased flow of skilled and non-skilled jobs from developed to developing nations as corporations seek out the cheapest labor
  • Increased likelihood of economic disruptions in one nation effecting all nations
  • Corporate influence of nation-states far exceeds that of civil society organizations and average individuals
  • Threat that control of world media by a handful of corporations will limit cultural expression
  • Greater chance of reactions for globalization being violent in an attempt to preserve cultural heritage
  • Greater risk of diseases being transported unintentionally between nations
  • Spread of a materialistic lifestyle and attitude that sees consumption as the path to prosperity
  • International bodies like the World Trade Organization infringe on national and individual sovereignty
  • Increase in the chances of civil war within developing countries and open war between developing countries as they vie for resources
  • Decreases in environmental integrity as polluting corporations take advantage of weak regulatory rules in developing countries

Effects of globalization

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