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Mcdonald
1. PRESENTATION
ON
McDONALDβS & DOMINOβS
SUPPLY CHAIN
UNDER GUIDANCE OF:
MR. ANOOP R OHRI
PRESENTED BY:
KIRANDEEP KAUR
DEEPIKA SHARMA
NIKHIL RANA
VISHAL
JASMEET SINGH
2.
3. DOMINOβS
β’ Founded in 1960
β’ Domino's is the second-largest pizza
chain in the United States
β’ over 9,000 corporate and franchised stores in 60
countries and all 50 U.S states
β’ Pizza, sandwiches, pasta, chicken wings , desserts
β’ Focus on delivering great tasting Pizzas and
sides, superior quality, exceptional customer service
and value for money offerings.
β’ Dominoβs pizza believes strongly in the strategy of
βThink global and act localβ.
4. HISTORY OF DOMINOβS
β’ In 1960, Tom Monaghan and his brother, James, purchased
Domi Nick's, a small pizza store in Ypsilanti, Michigan
near Eastern Michigan University.
β’ Monaghan renamed the business Domino's Pizza, Inc. in
1965.
β’ In 1967, the first Domino's Pizza franchise store opened in
Ypsilanti
β’ On May 12, 1983, Domino's opened its first international
store, in Winnipeg, Manitoba, Canada
β’ In 1998, after 38 years of ownership, Domino's Pizza
founder Tom Monaghan announced his retirement and sold
93 percent of the company to Bain Capital, Inc. for about $1
billion
5. DOMINOβS IN
INDIA
β’ It entered India in 1996
β’ Through franchise agreement with Delhi based
industrial Vam Bhartiya Corp.
β’ In late 1999, Indocean Chase (private Equity
fund) bought 25% stake in Dominoβs operations
from Bhartiya
β’ Advised to go beyond its 16 outlets in Delhi to
exploit the potential in the pizza delivery
business.
β’ By 2002 it had around 150 outlets covering over
20 major cities in India
6. CURRENT STATUS
ο Dominoβs pizza targeting to double
its outlets in India to more than 800
over the next five years.
οCurrently, there are 411 Dominoβs stores in India.
ο India is the fifth largest market for the dominoβs after
US, UK, Mexico and Australia.
οIn India, Jubilant foodworks ltd operates dominoβs pizza stores
with exclusive rights for India, Nepal, Bangladesh & Sri Lanka.
ο Dominoβs is the market leader in the organized pizza market in
India. With over 50% market share and 70% share in the pizza
home delivery segment.
7. ο In metros, dominoβs focuses on on βtime delivery
ο tag line/slogan β khushiyo ki home delivery ; Hungry kya ?
ο USP - Home delivery in 30 minutes else free
ο In term of top global markets for Dominoβs, India is currently
ranked at ninth position.
ο Home delivery contributes about 60% of the revenue.
8.
9. INTRODUCTION
β’ World's largest chain of hamburger
fast food restaurants
β’ Dealing in 123 countries .
β’ Headquarter in the United States
β’ More than 33,000 restaurants worldwide
β’ More than 4,00,000 employees
β’ Fast food:
hamburgers, chicken, french fries, soft drinks,
coffee, milkshakes, salads, desserts, breakfast.
10. β’ The McDonaldβs philosophy of Quality, Se
rvice, Cleanliness and Value (QSC&V)
is the guiding force behind its service to the
customers.
β’ Reconnect with customers through
contemporary global marketing direction βIβm
lovinβ itβ
11. Background
β’ The company began in 1940 as a
barbecue restaurant in California
β’ operated by the eponymous RICHARD
AND MAURICE McDONALD
β’ In 1948 , they reorganized their business as a
hamburger stand
β’ Businessman RAY KROC joined the
company as a franchise agent in 1955 and
later on purchased the chain from the
McDonald brothers and oversaw its
worldwide growth.
β’ Regarded as a symbol of globalization and
the spread of the American way of life.
12. FOOD INDUSTRY IN INDIA
In India, food industry and
particularly informal eating out
market is very small. In
India, over quarter of a million
customers visit McDonaldβs
family restaurants every day. The
Indian fast food market is valued
at $1-billion (Rs 4,547 crore)
approx.
13. Business model
ο Only 15% of the total number of restaurants are owned by the Company &
remaining 85% is operated by franchisees
ο In addition to ordinary franchise fees and marketing fees, McDonald's also
collect rent, which is calculated on the basis of sales.
ο Condition of franchise agreements vary by contract, age, country, and
location
ο In most of the countries, restaurants are operated by joint ventures and
other, local entities or governments.
ο To boost sales, McDonaldβs is looking at new business channels instead of
rapid expansion. New business channels include home
delivery, kiosks, breakfast, extended hours and drive-throughs.
ο 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.
ο Act like a retailer and think like a brand
14. McDonald in INDIA
β’ first Indian outlet opened in Mumbai in 1996.
β’ Beef and pork products were not offered
β’ meat and vegetarian meals are prepared in
separate areas of the restaurant because of
religious laws In India
β’ In 2009, McDonaldβs India won the CNBC Awaaz
Consumer Awards for the third time in the
category of the Most Preferred Multi Brand Fast
Food outlets.
β’ McDonaldβs first launched home delivery of
meals in Mumbai in 2004.
15. Target market
β’ Initial focus on metros- Mumbai, Delhi
β’ Relatively high incomes
β’ Exposure to western food & culture
β’ Move to smaller satellite towns
(Gurgaon,Pune)
β’ Positive spillover effects of reputation
β’ Jaipur & Agra- To attract foreign tourists
16. β’ McDonaldβs has a dedicated supply chain in
India and sources 99% of its products from
within the country.
β’ strong backward integration right up to the
farm level.
17. Competitors in INDIA
β’ Pizza Hut
β’ Dominoβs Pizza
β’ Papa Johnβs
β’ Narulaβs
β’ KFC
18. Competitors
β’ Burger King βSecond largest burger chain
β’ Wendy's βWorld's third largest hamburger fast food chain
β’ Jack in the Box βAmerican fast food chain
β’ SubwayβLargest single-brand restaurant chain
β’ Carl's Jr.βFifth largest American fast food chain
β’ Five GuysβAmerican fast food chain
β’ Whataburger βAmerican fast food chain
β’ Krystal βAmerican fast food chain
β’ White Castle βAmerican fast food chain
β’ Yum! βLargest multi-brand restaurant chain
19. Supply chain
ο critical for success
ο strong local channels of suppliers and
distributers
ο operation and training to match international
quality and hygiene standards
ο invested 50 crore before setting up 1st store in
india
21. QUESTIONS
1. What are the key changes which have made
supply chain management a critical function
to succeed in present day business world?
22. Ans 1
β’ growing urbanization
β’ Improvement in overall education level
β’ Increased scope of processed food
β’ Integration of the economies of the world
β’ Satisfying increased demand
β’ Rapid development in IT
β’ competition
β’ Companies need
β’ Long term collaboration with suppliers- need of the
hour
β’ Minimum cost
23. QUESβ¦
2. How does an efficient supply chain lead to
strategic competitive advantage?
24. Ans 2
β’ Affordable prices
β’ Timely delivery of goods
β’ Quality assurance
β’ Increase in sales
β’ Low wastage
β’ Fulfill the demand of the customers
25. QUESβ¦
3. How dominoβs revamped its supply chain
model in the wake of its extended spread in
Indian industry?
