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This document is a project report submitted in partial fulfillment of an MBA degree from Bangalore University. It compares the effectiveness of sales promotion strategies used by McDonald's and KFC. The report includes an introduction, literature review, research methodology, data analysis and interpretation, findings, conclusion and suggestions.

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0% found this document useful (0 votes)
322 views

PROJECT

This document is a project report submitted in partial fulfillment of an MBA degree from Bangalore University. It compares the effectiveness of sales promotion strategies used by McDonald's and KFC. The report includes an introduction, literature review, research methodology, data analysis and interpretation, findings, conclusion and suggestions.

Uploaded by

UDay
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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“COMPARATIVE STUDY ON EFFECTIVENESS OF SALES PROMOTION STRATEGY ADOPTED BY

MCDONALD’S AND KFC”

“COMPARATIVE STUDY ON EFFECIVENESS OF SALES PROMOTION


STRATEGY ADOPTED BY MCDONALD’S AND KFC”
Project work submitted in partial fulfillment of the requirements for the

award of degree
MASTER OF BUSINESS ADMINISTRATION
OF BANGALORE UNIVERSITY

Submitted by
RAMYA M V
REG NO: 17VGCMD027
Under the Guidance of
Prof. AMRUTHA M M.COM, B.ED
ASSISTANT PROFESSOR

SRI GOKULA COLLEGE OF ARTS, SCIENCE AND MANAGEMENT


STUDIES, PG BLOCK KOLAR- 563101
2017-2019
“COMPARATIVE STUDY ON EFFECTIVENESS OF SALES PROMOTION STRATEGY ADOPTED BY
MCDONALD’S AND KFC”

DECLARATION

I hereby declare that “COMPARATIVE STUDY ON EFFECTIVENESS OF SALES


PROMOTION STRATEGY ADOPTED BY MCDONALD’S AND KFC.” is the result of the
project work carried out by me under the guidance of PROF.AMRUTHA M in Partial fulfillment
for the award of master degree in business administration by Bangalore university. I also declare
that this project is the outcome my own efforts and that it has not been submitted to any other
university of institute for the award for any other degree or diploma certificate.

PLACE: Name: RAMYA M V

DATE: Register Number: 17VGCMD027


“COMPARATIVE STUDY ON EFFECTIVENESS OF SALES PROMOTION STRATEGY ADOPTED BY
MCDONALD’S AND KFC”

GUIDE CERTIFICATE

This is to certify that the project report “COMPARATIVE STUDY ON EFFECTIVENESS


OF SALES PROMOTION STRATEGY ADOPTED BY MCDONALD’S AND KFC”,
submitted by RAMYA M V, Reg No: 17VGCMD027 to Bangalore university for the award of
degree of MASTER OF BUSINESS ADMINISTRATION is a record of work carried out by He
under my guidance.

PLACE:

DATE: SIGNATURE
“COMPARATIVE STUDY ON EFFECTIVENESS OF SALES PROMOTION STRATEGY ADOPTED BY
MCDONALD’S AND KFC”

BANGALORE UNIVERSITY

Certificate of Originality (Plagiarism)

Name of the student : RAMYA M V


Registration Number : 17VGCMD027
Title of the Project : “COMPARATIVE STUDY ON EFFECTIVENESS OF
SALES PROMOTION STRATEGY ADOPTED BY
MCDONALD’S AND KFC
Name of the Guide : PROF. AMRUTHA M

Similarity Index (%) identified : 8%

(Acceptable maximum limit of similarity 25%)

Project ID number in Drill Bit : 181225064900

The Project report has been checked using Drill Bit anti-plagiarism Software (Attach first page of
the originality report as ANNEXURE) and found within limits as per plagiarism Policy and
Instructions issued by the UNIVERSITY/CBSMS.

We have verified the contents of the project report, as summarized above and certified that the
statements made above are true to the best of our knowledge and belief.

Signature of the student Signature of the Guide


“COMPARATIVE STUDY ON EFFECTIVENESS OF SALES PROMOTION STRATEGY ADOPTED BY
MCDONALD’S AND KFC”

ACKNOWLEDGEMENT

First and foremost, I would like to thank almighty for standing by me throughout the project and
helping me to complete the same within the stipulated time.

The preparation of this project work would not have been possible without the help of a number
of people. I would like to thank my beloved parents for their support, advice and encouragement
during my project.

I would like to thank our Director, Dr. ASMA.S for giving me an opportunity to prepare the
project. I am very pleased to express my deep sense of gratitude to Prof. AMRUTHA M for his
constant encouragement.

I am obliged and indebted to their approval and valuable suggestions to take up the project, I
express my deep sense of gratitude to the organization for their constant help during my project.

I would like to extend my gratitude to the entire faculty of Sri Gokula Collage of Arts Science
and Management Studies PG block Kolar for being with us and helping us out at all times and
for their constant positive support and encouragement that has helped and inspired us behind this
project. Last but not the least we acknowledge the support and feedback of our parents and friends
all times.

Signature
(Student name)
“COMPARATIVE STUDY ON EFFECTIVENESS OF SALES PROMOTION STRATEGY ADOPTED BY
MCDONALD’S AND KFC”

TABLE OF CONTENTS

CHAPTER CONTENTS PAGE

1 INTRODUCTION
1.1 Introduction
1.2 Significance of the study 1-8
1.3 Need of the study

2 RESEARCH DESIGN AND METHODOLOGY


2.1 Review of literature
2.2 Statement of the problem
2.3 Objectives of the study 9-16
2.4 Scope of the study
2.5 Methodology
2.6 Limitations of the study

3 DATA ANALYSIS AND INTERPRETATION 17-52

4 FINDINGS, CONCLUSION AND SUGGESTIONS 53-55


5.1Summary of Findings
5.2 Conclusion
5.3Suggestions to the Organization
BIBLIOGRAPHY 56
ANNEXURE
Plagiarism Report
Progress Report 1 and 2
“COMPARATIVE STUDY ON EFFECTIVENESS OF SALES PROMOTION STRATEGY ADOPTED BY
MCDONALD’S AND KFC”

LIST OF TABLES:

SL.NO PAGE NO
NAME OF THE TABLE

1 17
TABLE 3.1 Gender of respondents

2 19
TABLE 3.2 Age of respondents

3 TABLE 3.3 Vegetarian / non vegetarian respondents 21

4 TABLE 3.4 How often do you visit KFC and McDonald’s 23

5 TABLE 3.5 Reasonable price on KFC and McDonald’s 25

6 TABLE 3.6 Amount spend on average visit 27

7 TABLE 3.7 Do you think about the hygiene of the KFC and 29
McDonald’s

8 TABLE 3.8 Behavior of staff towards customer 31

9 TABLE 3.9 Preference which of these would you choose 33

10 TABLE 3.10 Which environment is better in McDonald’s and KFC 35

11 TABLE 3.11 When compared which is most preferable 37


“COMPARATIVE STUDY ON EFFECTIVENESS OF SALES PROMOTION STRATEGY ADOPTED BY
MCDONALD’S AND KFC”

12
TABLE 3.12 Will the advertisement influence you to visit KFC and 39
McDonald’s

13 TABLE 3.13 Is there negative views towards KFC and McDonald’s 41

14
TABLE 3.14 Circumstances to visit McDonald’s and KFC 43

15
TABLE 3.15 Do you think fast food is good for health 45

16
TABLE 3.14 Circumstances to visit McDonald’s and KFC 47

17
TABLE 3.15 Do you think fast food is good for health 49

18
TABLE 3.18 Whether restaurants has good staff 51

LIST OF GRAPHS:
“COMPARATIVE STUDY ON EFFECTIVENESS OF SALES PROMOTION STRATEGY ADOPTED BY
MCDONALD’S AND KFC”

SL.NO NAME OF THE GRAPHS PAGE


NO

1
GRAPH 3.1 Gender of respondents 18

2
GRAPH 3.2 Age of respondents 20

3 GRAPH 3.3 Vegetarian / non vegetarian respondents 22

4 GRAPH 3.4 How often do you visit KFC and McDonald’s 24

5 GRAPH 3.5 Reasonable price on KFC and McDonald’s 26

6 GRAPH 3.6 Amount spend on average visit 28

7 GRAPH 3.7 Do you think about the hygiene of the KFC and McDonald’s 30

8 GRAPH 3.8 Behavior of staff towards customer 32


“COMPARATIVE STUDY ON EFFECTIVENESS OF SALES PROMOTION STRATEGY ADOPTED BY
MCDONALD’S AND KFC”

9 GRAPH 3.9 Preference which of these would you choose 34

10 GRAPH 3.10 Which environment is better in McDonald’s and KFC 36

11 GRAPH 3.11 When compared which is most preferable 38

GRAPH 3.12 Will the advertisement influence you to visit KFC and
12 McDonald’s 40

GRAPH 3.13 Is there negative views towards KFC and McDonald’s


13 42

14 GRAPH 3.14 Circumstances to visit McDonald’s and KFC 44

GRAPH 3.15 Do you think fast food is good for health


15 46

16 GRAPH 3.14 Circumstances to visit McDonald’s and KFC 48


“COMPARATIVE STUDY ON EFFECTIVENESS OF SALES PROMOTION STRATEGY ADOPTED BY
MCDONALD’S AND KFC”

17 GRAPH 3.15 Do you think fast food is good for health 50

18 GRAPH 3.18 Whether restaurants has good staff 52

1.1 INTRODUCTION
“COMPARATIVE STUDY ON EFFECTIVENESS OF SALES PROMOTION STRATEGY ADOPTED BY
MCDONALD’S AND KFC”

McDonald’s and KFC

McDonald’s and KFC are everybody’s favorite food destinations. When you like hamburgers
McDonald’s is always the top option. When you like fried chicken, KFC is always the first thing
that comes to everyone’s mind. The reason for this is these companies claim of particular products
that have become their trademark until now. The difference between McDonald’s and KFC is
mainly the cuisine.

McDonald’s

1940 is the birth year of McDonald’s and they have started everything. Their speedier service
system that was introduced in their very first restaurants is being followed until now in modern
day fast food chains. Their very first mascot was a man with a head of a hamburger that is wearing
a chef’s hat. It was replaced by McDonald’s ever popular clown man. McDonald’s is recorded to
currently serving 58 million customers each day in 119 counties.

Their restaurants differ from their settings, some offer by passers with their drive three service,
some have playgrounds for kids but are just counter service alone. Some of their restaurants have
outer seats as well. McDonald’s signature colors are red and yellow. Their well supported products
are their famous hamburgers, breakfast offers, desserts, chicken sandwiches and French fries. For
vegetarian customers, McDonald’s have offerings that are suitable for them. When it comes to
regional branches, McDonald’s are known for being fond of offering these countries food taboos
for them to have some sort of relationship with people around. For example, Portugal McDonald’s
are the only ones who have soup in the menu. Another example would be Indonesia for McRice.

KFC

On the other hand, KFC or Kentucky fried chicken started during the great depression, which was
in the year 1930. It was first named as “sanders court and cafe”, following the name of Harland
sanders, the original creator from Kentucky. Their current and most popular logo is the cartooned
image of sanders with their acronym, KFC. They are popular for their trade secret, their secret
recipe made from 11 herbs and spices that is known to create the “finger link in’ good” flavor of
their chickens.
“COMPARATIVE STUDY ON EFFECTIVENESS OF SALES PROMOTION STRATEGY ADOPTED BY
MCDONALD’S AND KFC”

Their basic products are fried chickens, chicken wraps, sandwiches, salads and some roasted and
grilled chicken cuisines and desserts, too. Be it McDonald’s or KFC, you’ll surely have a great
treat of a meal. Differentiating both will help us recognize as to what we’d really love to consume.
McDonald’s main offer is hamburgers while KFC offers various kinds of chicken dishes.

McDonald’s V/S KFC

 RANGE:
McDonald’s attention is fundamentally on hamburgers, cheese burgers and broiled chicken
and it have a wide range of burgers.
KFC has a more extensive scope of approaches to get ready chicken. KFC does wraps,
servings of mixed greens and pieces or now and again even pies and kebabs.

 STARTED
McDonald’s was started in year 1940
KFC was launched in year 1930

 MARKET SHARE
McDonald’s have 19% share in worldwide market.
KFC have only 9% share in worldwide market.

 SERVICES AND PRICES


McDonald’s have very fast services and have relatively low prices for their products.
KFC have fast services and relatively higher prices for their products.

 PROFITS
“COMPARATIVE STUDY ON EFFECTIVENESS OF SALES PROMOTION STRATEGY ADOPTED BY
MCDONALD’S AND KFC”

McDonald’s annual turnover is almost 27 billion dollars.


KFC is having almost 684.5 million dollars’ turnover.

 BREAKFASTS
McDonald’s also offers breakfasts.
KFC does not offer breakfasts.

 HOME DELIVERY
McDonald’s offers the facility of home delivery.
KFC does not offer the facility of home delivery.

 OUTLETS
The dominant part of McDonald’s outlets is claimed by franchises. McDonald’s is a
privately held and autonomous organization. McDonald’s has dependably been
autonomous.
KFC is held to a great extent by the company or a few vast establishment’s bunches. KFC
is a division of Yum Brands which additionally claims long John silvers, Taco Bell and
others.

 RANKING
McDonald’s always remain on first rank.
KFC ranked from number 7 to number 8.

 SANITATION
McDonald’s is having the best ranking in standards related to sanitation and quality of
food.
KFC is not having best ranking is sanitation and quality as compare to McDonald’s.
“COMPARATIVE STUDY ON EFFECTIVENESS OF SALES PROMOTION STRATEGY ADOPTED BY
MCDONALD’S AND KFC”

 BRANCHES
McDonald’s branches are in almost 120 countries with more than 35000 branches.
KFC have more than 15000 branches in 109 countries.

 STRENGTH
The strength of McDonald’s is strong brand name, pictures, large share of market, solid
worldwide vicinity.
The strength of KFC are huge famous brand name and high brand dedication, more number
of items. Hygienic sustenance and snappy administration, good promoting and show
casting, strong trademarks formulas.

INTRODUCTION OF SALES PROMOTION STRATEGY

The term sales promotion covers a wide range of activities intended to provide a short term increase
in sales, some sales promotions are aimed at retailers, some are aimed at consumers, others are
aimed at wholesalers, but in all cases the intention is to provide an extra incentives to buy a specific
brand or product range sales promotion consists of a diverse collection of incentives tools, mostly
short term designed to stimulate quicker and greater purchases of a particular product by
consumers. When advertising offers a reason to buy, sales promotion offers an incentive to buy.

MEANING OF SALES PROMOTION STRATEGY

Sales promotion is the process of persuading a potential customer to buy the product. Sales
promotion is designed to be used as a short term tactic to boost sales it is rarely suitable as a method
of building long term customer loyalty. Some sales promotions are aimed at consumers.

DEFINITION OF SALES PROMOTION STRATEGY


“COMPARATIVE STUDY ON EFFECTIVENESS OF SALES PROMOTION STRATEGY ADOPTED BY
MCDONALD’S AND KFC”

According to W.J. Stanton, “sales promotion defined as demand stimulating device to supplement
advertising and facilitate personal selling.”

According to American Marketing Association, “those marketing activities, other than personal
selling, advertising and publicity that stimulate consumer purchasing and dealer effectiveness,
such as display, show and exhibitions, demonstration and various non-recurrent selling efforts not
in an ordinary routine.

Sales promotion is an important component of a promotion campaigning programme. It can be


specific tool of the marketing strategy of an enterprise. Because of increasing level of competition
and costs of advertisement, producers largely use this technique as a promotional tool.

Sales promotion techniques are not only useful to the producers and distributors, but also are useful
to consumers. The importance of sales promotion may be grouped as follows:

1.2 SIGNIFICANCE OF THE STUDY

 Benefits to consumers.
 Benefits to manufactures/producers.
 Benefits to dealers/middleman.
 Benefits to society and the nation.

BENEFITS TO CONSUMERS

 Sufficient product knowledge.


 Availability of product at reduced prices.
 Increase in consumers buying confidence.
 Increase in the quality of goods purchased.
 Higher slandered of living.
 Minimize exploitation
“COMPARATIVE STUDY ON EFFECTIVENESS OF SALES PROMOTION STRATEGY ADOPTED BY
MCDONALD’S AND KFC”

BENEFITS TO MANUFACTURE/PRODUCER

 Increase in sales.
 Regular sales of seasonal product.
 Improve effectiveness of advertisement and personal selling.
 Cooperation from middleman.
 Demand for product and services.
 Able to capture new market.
 Increase in goodwill.
 Direct control.
 Effective steps to face the competition.
 Improvement and new uses of the production.

BENEFITS TO DEALERS/MIDDLEMAN

 Facilitates larger sales.


 More facilitates and assistance.
 Direct relation with customers.

BENEFITS TO THE SOCIETY AND THE NATION

The benefits of sales promotion programme for the society and the nation can be summarized as
below: -

 Increase in standard of living the people.


 Increase in employment opportunities.
 Development and expansion of transport, communication, banning, insurance and
warehousing facilities.
“COMPARATIVE STUDY ON EFFECTIVENESS OF SALES PROMOTION STRATEGY ADOPTED BY
MCDONALD’S AND KFC”

 Increase in Gross National Product and pressures, growing competition recession, quick
returns, competent staff and attitudinal change are the causes of growing popularity of sales
promotion.
 Sales promotion methods or scheme are used at the level of declares, consumers and
salesmen.

ADVANTAGES OF SALES PROMOTION STRATEGY

 Price discrimination
 Effect on consumer behavior
 Effect on trade behavior
 Regional difference

DISADVANTAGES OF SALES PROMOTION STRATEGY

 Increased price sensitivity


 Quality image may become tarnished
 Merchandising support from dealers is doubtful
 Short term orientation

1.3 NEED OF THE STUDY

With the increase in spending capacity of Indian middle class society, the mind set of consumers
have changed in relation to recreational. More frequently people have started to move out to eat,
this has created scope for many fast food chains. But along with that it has also created competition
among different food chains. Hence each and everyone plays a major role in attracting customers.
“COMPARATIVE STUDY ON EFFECTIVENESS OF SALES PROMOTION STRATEGY ADOPTED BY
MCDONALD’S AND KFC”

The trend can be seen by the increasing number of food chains. That is why this topic was chosen
for further study as this particular industry is fast becoming very competitive.

This project comprises a brief analysis of the Indian fast food industry and the competition that
marks the trend, different companies and various players are analyzed from their competing
strategies. Some of these fast food chains are Nirula’s, Pizza Hut, McDonald’s, Haldiram’s.

Further the main scope of the study is to conduct a comparative analysis on effectiveness of sales
promotion activity of two of the major players in the for services industry, which is McDonald’s
and KFC. The research tries to analyze McDonald’s and KFC’s strengths and their business
process very closely with a greater emphasis on how they do a better job than other competitors at
serving their customers.

2.1 REVIEW OF LITERATURE


“COMPARATIVE STUDY ON EFFECTIVENESS OF SALES PROMOTION STRATEGY ADOPTED BY
MCDONALD’S AND KFC”

Literature review “The literature review is the work of syntheses.” The literature review is an
attempt to summarize the existing state of knowledge about a subject and, in research proposals,
to frame the proposed research’s expected involvement to knowledge. Literature review enables
the researcher to position research in a large context by determining on overall review of the body
of research and revealing the work that already being done and reported. The fundamental
variables, are
Rajul Bhardwaj has studied on “Perception about the attributes of selected fast food retailers and
their impact on consumer satisfaction and sales”. The study relies upon an extensive data set of
consumer satisfaction and sales information from approximately 180 consumers. The study
advances the measurement of behavioral links between consumer satisfaction and performance in
the food retail sector with firm specific data the study shows how firms can employ such results to
develop appropriate consumer satisfaction policies.
Monika J.A. Schroder and Morven G. McEachern have studied on “fast foods and ethical
consumer value. A focus on McDonald’s and KFC “. This paper aims to investigates the effect of
communication corporate social responsibility (CSR) initiatives to young consumers in the UK on
their fast food purchasing with reference to McDonald’s and KFC.
.
Causes and Consequences of Fast Food Sales Growth, Mark D. Jekanowski, January -April 1999.
With today’s hectic lifestyles, timesaving products are increasingly in demand. Perhaps one of the
most obvious examples is fast food. Today the demand for the, hectic lifestyles,
timesaving products are increasingly. Obliviously one of the example is Fast Food Industry. The
rate of growth in consumer expenditures on fast food has led most other segments of the food-
away-from home market for much of the last two decades.

Causes and Consequences of Fast Food Sales Growth, Mark D. Jekanowski, January-April 1999.
With today hectic lifestyles, timesaving products are increasingly in demand. Perhaps one of the
most obvious examples is fast food. Today the demand for the, hectic lifestyles,
“COMPARATIVE STUDY ON EFFECTIVENESS OF SALES PROMOTION STRATEGY ADOPTED BY
MCDONALD’S AND KFC”

timesaving products are increasingly. Obliviously one of the example is Fast Food Industry. The
rate of growth in consumer expenditures on fast food has led most other segments of the food-
away-from home market for much of the last two decades. Since 1982, there is growth rate in
consumer spending at fast food. The consumers spent at fast food outlets grew at an annually
he proportion of away-from-home food expenditures on fast food also increased.
Everyone eats Fast Food even knowing that it is not healthy for them. Reasons are because of
speed, convenience and price. However, fast food has many hidden costs, including the high price
of bad health. Not to mention the fact that for such cheap food, you're actually being overcharged
by a big amount. So the real reason is not price, but convenience. You can get much cheaper food
by cooking for yourself, but you are not always at home to do the cooking, or you do not always
feel like cooking.

Consumer perception about fast food in India: an exploratory study by


Anita Goyal, (Management Development Institute, Sukhrali, India), N.P. Singh, (Management
Development Institute, Sukhrali, India).
This paper seeks to estimate importance of various factors affecting the choice of fast food outlets
by Indian young consumers.
The study applies multivariate statistical tools to estimate importance of various factors affecting
the choice of fast food outlets by Indian young consumers. In addition, the authors analyzed the
consumption patterns, impact of hygiene and nutritional values, and rating of various attributes of
McDonald's and Nirula's.
The young Indian consumer has passion for visiting fast food outlets for fun and change but home
food is them
Among all age groups, adolescents and young adults are found to be relatively more interested in
fast-food consumption. The frequent consumption of fast foods among people in their teens and in
their twenties might be attributed to the specific qualities of such types of foods that are fast to
prepare, convenient, and relatively inexpensive

Over the past decades, the consumption of fast foods has increased worldwide Recent studies have
shown that the trend of fast-food consumption among Iranians as well as the number of fast-food
“COMPARATIVE STUDY ON EFFECTIVENESS OF SALES PROMOTION STRATEGY ADOPTED BY
MCDONALD’S AND KFC”

restaurants in Iran are considerably increasing which is an important health concern among the
Iranian population, particularly in the urban areas.

VISION AND MISSION OF MCDONALD’S

VISION: - ‘To be the best and leading fast food provider around the globe’

MISSION: - McDonald’s mission is to be the world’s best quick service restaurant. Providing
outstanding quality, service, cleanliness, and value, so that we make every customer in every
restaurant smile.

VISION AND MISSION OF KFC

VISION: - To foresee that real future of long term growth and adjust itself to the specific cultures
of each country that are operating in.

MISSION: - The mission of KFC is to extend its image of excellence, quality and service all
over the globe with an attaining a goal of maximizing profit.

PRODUCTS OF McDonald’s

 Hamburgers
 Chicken
 French fries
 Soft drinks
 Milkshakes
 Salads
 Desserts
 Coffee
 Breakfast
 Wraps
“COMPARATIVE STUDY ON EFFECTIVENESS OF SALES PROMOTION STRATEGY ADOPTED BY
MCDONALD’S AND KFC”

PRODUCTS OF KFC

 Crispy fried chicken


 Zinger
 Twister
 Hotshots
 Chicken Burger
 Hot wings
 Rice and spice
 Fish zinger
 Nuggets
 Corn on the cob
 French fries

COMPETITORS OF McDonald’s

 KFC
 Burger king
 Subway
 Starbucks
 Pizza Hut
 Domino’s
 Dunkin Donuts
 Wendy’s
 Taco Bell
 Chipotle

COMPETITORS OF KFC

 McDonald’s
 Burger king
“COMPARATIVE STUDY ON EFFECTIVENESS OF SALES PROMOTION STRATEGY ADOPTED BY
MCDONALD’S AND KFC”

 Subway
 Dunkin Donuts
 Starbucks
 Pizza Hut
 Domino’s pizza
 Taco Bell
 Wendy’s
 Chipotle

2.2 STATEMENT OF THE PROBLEM

With the developing of living standards, fast food is increasingly being accepted in people’s lives.
It has become an integral part of the daily food. In recent years, the rise and development of the
fast industries have become a very interesting phenomena in the Chinese market. McDonald’s and
KFC have sales mode with a good quality, excellent services and a clean environment to attract
customers. McDonald’s is ranked at the top of the fast food industries with over 33,000 outlets,
whereas KFC only has 11,000 outlets in 80 counties, ranking at 7th in the world. KFC, the world
largest chain of fried chicken restaurants, may face pressure from consumer and environmental
groups to change how its poultry are after McDonald’s CORP said it would switch to chicken
raised without human antibiotics.

The study eventually intends to know the problems faced by the two companies related to various
sales promotion activities and also to know which brand gains a better customer satisfaction for
reaching better growth and profit.

2.3 OBJECTIVES OF THE STUDY

 To know a comparative analysis on the marketing parameters practiced by McDonald’s


and KFC to increase the sale.
 To study various aspects of supply chain management, employee satisfaction and
hospitality management of both organizations.
“COMPARATIVE STUDY ON EFFECTIVENESS OF SALES PROMOTION STRATEGY ADOPTED BY
MCDONALD’S AND KFC”

 To study the consumer’s preference amongst McDonald’s and KFC.


 To understand the satisfaction level of customer towards service, hygienic, advertisement,
delivery of the products provided by McDonald’s and KFC.

2.4 SCOPE OF THE STUDY

The scope of the study is limited solely to the markets visited by the researcher for the purpose
of research; this may hence not be a total reflection of the impact of the company’s activities s

ssin all markets. This study focuses on the promotional activities and its impact on big mac.
The research tries to find the importance of a diversified promotional strategy on the success
of a brand. The researcher aims to find how the activities of the company have been successful
in driving sales and the market share of the company by focusing on various promotional
activities. This research identifies the current trends in Indian fast food market. This research
performs the comparative analysis among McDonald’s and KFC. This research analyzes the
customer’s perception towards McDonald’s and KFC. This research measures the
opportunities and challenges for fast food businesses in India.

2.5 METHODOLOGY

SAMPLEING SIZE: The sample size consists of 50 respondents or customers of


McDonald’s and KFC.

SAMPLING AREA: The area of research will be conducted at Bangalore.

SAMPLING TECHNIQUES: Convenient sampling technique is used.

DATA COLLECTION

In this project both primary data as well as secondary data are used.

PRIMARY DATA
“COMPARATIVE STUDY ON EFFECTIVENESS OF SALES PROMOTION STRATEGY ADOPTED BY
MCDONALD’S AND KFC”

Primary data are those, which are collected at fresh and for the first time, and thus happens to
be original in character. Primary data used in this project is collected through two methods,
namely, questionnaire method and direct personal interview method. Both these methods
proved to be great help in getting the required information.

SECONDARY DATA

Secondary data are those, which have already been collected by someone else and which have
already been passed through the statistical process. Some related information on the two
companies and any past comparison of the two chains was collected through secondary data
from various sources like internet, print media.

PLAN OF ANALYSIS

On the basis of information collected through questionnaire. The result thus obtained will be
represented through charts and suitable interpretation will be provided. Charts are used to
display series of numerical data and in graphical format to make it easier to understand large
quantities of data and the relationship between different series of data. It is portrayed through.

 Tables
 Charts
 Graphs
 Diagrams
 Interpretation

BACKGROUND OF McDonald’s

McDonald’s headquarters is located in Oak Brook, lllinois, united states. It is the largest chain of
hamburger fast food restaurant in the world. The company logo is McDonald’s with a big yellow
“M”. large 1 shows that. Richard and Maurice McDonald started the first McDonald’s store from
1950s in the US, and it primarily sells hamburgers, French fries, dessert, and salads. In 1955, when
the first McDonald’s restaurant was founded in the united states, there was not much variety on its
“COMPARATIVE STUDY ON EFFECTIVENESS OF SALES PROMOTION STRATEGY ADOPTED BY
MCDONALD’S AND KFC”

menu, but they offered food supply with high quality, low cost and good environment. By 1983,
there were more than 6,000 domestic branches. In 1967, McDonald’s opened its first overseas
branch in Canada. By 1985, its total abroad sales accounted for about 20 percent of its domestic
business. Every day there are more than 18 million people coming to McDonald’s in more than 40
countries. Nowadays McDonald’s has more than 34,000 locations worldwide with a revenue of
27.56 billion US dollars.

THE BACKGROUN OF KFC

Together with Pizza Hut and Taco Bell, KFC belong to yum! Brands Inc. Yum! Company is the
world’s largest restaurant company in terms of system units. KFC corporation’s headquarters is
located in Louisville, Kentucky, United States. It is the world’s largest fried chicken chain
restaurant, measured by sales; it is the second largest restaurant chain after McDonald’s. more than
11,000 Yum restaurants have been opened in about 80 countries. Colonel Harland Sanders founded
it in 1952 by selling fried chicken. His kindly grandpa faces also became KFC logo. Image 2 shows
that. Today KFC mainly sell fried chicken, hamburgers, French fries, soft drinks and other
Western-style fast food. It has about 18,000 locations with a revenue of 15 billion US dollars.

2.6 LIMITATION OF THE STUDY

 This study is limited to McDonalds and KFC only.


 Lack of interest of the respondent is one of the major problem.
 The allotted time to conduct the study is weeks.
 Most of the restaurants and eating joints were not in favor of conducting survey of inside
their premises as it would disturb their customers.
 Reliability of data always remains a prime concern when humans are surveyed.
“COMPARATIVE STUDY ON EFFECTIVENESS OF SALES PROMOTION STRATEGY ADOPTED BY
MCDONALD’S AND KFC”

TABLE: 3.1

GENDER OF RESPONDENTS

SI. NO FACTORS NO OF RESPONDENTS % OF RESPONDENTS


1 Male 22 44%
2 Female 28 56%
TOTAL 50 100%

SOURCES: PRIMARY DATA

ANALYSIS:

The above table portrays that 28 number of respondents are female they are more in number when
compare to in the study.
“COMPARATIVE STUDY ON EFFECTIVENESS OF SALES PROMOTION STRATEGY ADOPTED BY
MCDONALD’S AND KFC”

GRAPH:3.1

GENDER OF RESPONDENTS

Gender of respondents
Male Female

60% 56%

50%
44%

40%

30%

20%

10%

0%
Male Female

INTERPRETATION:

The above graph is interpreted as only 44% of respondents are male, were female respondents are
occupied in majority
“COMPARATIVE STUDY ON EFFECTIVENESS OF SALES PROMOTION STRATEGY ADOPTED BY
MCDONALD’S AND KFC”

TABLE: 3.2

AGE OF RESPONDENTS

SI. NO FACTORS NO OF RESPONDENTS % OF RESPONDENTS


1 Under 18 years 1 2%
2 18-21 19 38%
3 22-25 24 48%
4 26-30 6 12%
TOTAL 50 100%

SOURCES: PRIMARY DATA

ANALYSIS:

From the above table it is analyzed that out of 50 respondents in that maximum of 24 number of
respondents are between the age of 22-25, 1 number of respondents are between the age of under
18 years.
“COMPARATIVE STUDY ON EFFECTIVENESS OF SALES PROMOTION STRATEGY ADOPTED BY
MCDONALD’S AND KFC”

GRAPH:3.2

AGR OF RESPONDENTS

Age of respondents
12%
26-30

22-25 48%

18-21
38%

UNDER 18 YEARS
2%

0% 10% 20% 30% 40% 50% 60%

26-30 22-25 18-21 Under 18 years

INTERPRETATION:

From the above graph we found that 48% of respondents are between the age of 22-25 more
outgoing and taking more fast food rather than other age people. The company can concentrate on
attracting below 18 years’ teenagers.
“COMPARATIVE STUDY ON EFFECTIVENESS OF SALES PROMOTION STRATEGY ADOPTED BY
MCDONALD’S AND KFC”

TABLE:3.3

VEGETARIAN/NON VEGETARIAN RESPONDENTS:

SI. NO FACTORS NO OF RESPONDENTS % OF RESPONDENTS


1 Vegetarian 12 24%
2 Non vegetarian 26 52%
3 Occasionally non 12 24%
vegetarian
TOTAL 50 100%
SOURCES: PRIMARY DATA

ANALYSIS:

The table shows that 26 number of the respondents are non-vegetarians and 12 number of
respondents are occasionally non-vegetarian.
“COMPARATIVE STUDY ON EFFECTIVENESS OF SALES PROMOTION STRATEGY ADOPTED BY
MCDONALD’S AND KFC”

GRAPH:3.3

VEGETARIAN/NON VEGETARIAN RESPONDENTS

Vegetarian / non vegetarian

Occasionally non vegetarian 24%

Non vegetarian 52%

Vegetarian 24%

0% 10% 20% 30% 40% 50% 60%

Vegetarian Non vegetarian Occasionally non vegetarian


s

INTERPRETATION:

From the above data it indicates 52% of the respondents are non-vegetarian and 24% of the
respondents are vegetarian and 24% are occasionally non vegetarian. Hence majority of the
respondents are non-vegetarian.
“COMPARATIVE STUDY ON EFFECTIVENESS OF SALES PROMOTION STRATEGY ADOPTED BY
MCDONALD’S AND KFC”

TABLE:3.4

HOW OFTEN DO YOU VISIT KFC AND MCDONALD’S?

SI. FACTORS NO OF RESPONDENTS % OF RESPONDENTS


NO
1 Daily 18 36%
2 Once in a week 12 24%
3 Once in a month 11 22%
4 At leisure 9 18%
TOTAL 50 100%
SOURCES: PRIMARY DATA

ANALYSIS:

The table shows that 18 number of respondents visit daily, 12 number of respondents visit once in
a week and 9 number of respondents visit at leisure time.
“COMPARATIVE STUDY ON EFFECTIVENESS OF SALES PROMOTION STRATEGY ADOPTED BY
MCDONALD’S AND KFC”

GRAPH:3.4

HOW OFTEN DO YOU VISIT KFC AND MCDONALD’S?

40%
36%
35%

30%

25% 24%
22%

20% 18%

15%

10%

5%

0%
Daily Once in a week Once in a month At leisure

Daily Once in a week Once in a month At leisure

INTERPRETATION:

From the above table it portrays that 36% of respondents are visit daily, 24% of respondents are
visit once in a week, 22% of respondents are visit once in a month and 18% of respondents visit at
leisure time.
“COMPARATIVE STUDY ON EFFECTIVENESS OF SALES PROMOTION STRATEGY ADOPTED BY
MCDONALD’S AND KFC”

TABLE:3.5

REASONABLE PRICE ON KFC AND MCDONALD’S

SI. NO FACTORS NO OF RESPONDENTS % OF RESPONDENTS


1 Normal 19 38%
2 Expensive 19 38%
3 Value for money 12 24%
TOTAL 50 100%
SOURCES: PRIMARY DATA

ANALYSIS:

The table shows that 19 number of respondents feel that the price on KFC and McDonald’s is
normal and 19 number of respondents feel it is too expensive.
“COMPARATIVE STUDY ON EFFECTIVENESS OF SALES PROMOTION STRATEGY ADOPTED BY
MCDONALD’S AND KFC”

GRAPH:3.5

REASONABLE PRICE ON KFC AND MCDONALD’S

Customer's opinion
40%

35%

30%

25%

20%
38% 38%
15%
24%
10%

5%

0%
Normal Expensive Value for money

Normal Expensive Value for money

INTERPRETATION:

From the above data 38% of respondents feel that the price on KFC and McDonald’s is very
expensive and also 38% of respondents feel that normal price and 24% of respondents feel that
value for money.
“COMPARATIVE STUDY ON EFFECTIVENESS OF SALES PROMOTION STRATEGY ADOPTED BY
MCDONALD’S AND KFC”

TABLE:3.6

AMOUNT SPEND ON AVERAGE VISIT

SI. NO FACTORS NO OF RESPONDENTS % OF RESPONDENTS


1 Below Rs100 8 16%
2 Rs100-Rs500 28 56%
3 Above 500 14 28%
TOTAL 50 100%
SOURCES: PRIMARY DATA

ANALYSIS:

The table shows that 28 number of respondents agree that they spend average visit Rs100-Rs500,
14 number of respondents agree that they spend average visit above 500 and 8 number of
respondents agree that they spend average visit below Rs100.
“COMPARATIVE STUDY ON EFFECTIVENESS OF SALES PROMOTION STRATEGY ADOPTED BY
MCDONALD’S AND KFC”

GRAPH:3.6

AMOUNT SPEND ON AVERAGE VISIT

Spend on average time

Above 500 28%

Rs100-Rs500 56%

Below Rs100 16%

0% 10% 20% 30% 40% 50% 60%

Below Rs100 Rs100-Rs500 Above 500

INTERPRETATION:

From the above data 28% of respondents are spend above Rs500 per visit and 56% of respondents
are spend Rs100-Rs500 average per visit and 16% of respondents are spend below Rs100 per visit.
“COMPARATIVE STUDY ON EFFECTIVENESS OF SALES PROMOTION STRATEGY ADOPTED BY
MCDONALD’S AND KFC”

TABLE:3.7

DO YOU THINK ABOUT THE HYGIENE OF THE KFC AND


MCDONALD?

SI. NO FACTORS NO OF RESPONDENTS % OF RESPONDENTS


1 Satisfactory 39 78%
2 Need attention 9 18%
3 Very poor indeed 2 4%
TOTAL 50 100%
SOURCES: PRIMARY DATA

ANALYSIS:

It is analyzed the majority number of respondents 39 are satisfaction towards maintenance of


hygiene at KFC and McDonald’s and 2 number of respondents are very poor indeed.
“COMPARATIVE STUDY ON EFFECTIVENESS OF SALES PROMOTION STRATEGY ADOPTED BY
MCDONALD’S AND KFC”

GRAPH:3.7

DO YOU THINK ABOUT THE HYGIENE OF THE KFC AND


MCDONALD?

Hygiene of the place


78%
80%

70%

60%

50%

40%

30%
18%
20%

10% 4%

0%
Satisfactory Need attention Very poor indeed

Satisfactory Need attention Very poor indeed

INTERPRETATION:

From the above data 78% of respondents are feel satisfactory for hygiene of the place and 18% of
respondents are feel need attention and the company concentrate to satisfactory every customer
including those respondents who feel very poor.
“COMPARATIVE STUDY ON EFFECTIVENESS OF SALES PROMOTION STRATEGY ADOPTED BY
MCDONALD’S AND KFC”

TABLE:3.8

BEHAVIOUR OF STAFF TOWARDS CUSTOMER

SI. NO FACTORS NO OF RESPONDENTS % OF RESPONDENTS

1 Friendly 43 86%
2 Indifferent 7 14%
3 Rude 0 0%
TOTAL 50 100
SOURCES: PRIMARY DATA

ANALYSIS:

The table shows that 43 number of respondent’s feel the staff are friendly and 7 number of
respondents feel the staff are indifferent.
“COMPARATIVE STUDY ON EFFECTIVENESS OF SALES PROMOTION STRATEGY ADOPTED BY
MCDONALD’S AND KFC”

GRAPH:3.8

BEHAVIOUR OF STAFF TOWARDS CUSTOMER

H O W D O Y O U F I N D T H E S TA F F
Friendly Indifferent Rude

Rude 0%

Indifferent 14%

Friendly 86%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%


SS

INTERPRETATION:

From the above graph 86% of respondents feel the staff are friendly and impressive, 14% of
respondents feel the staff are indifferent.
“COMPARATIVE STUDY ON EFFECTIVENESS OF SALES PROMOTION STRATEGY ADOPTED BY
MCDONALD’S AND KFC”

TABLE:3.9

PREFERENCE WHICH OF THESE WOULD YOU CHOOSE

SI. NO FACTORS NO OF RESPONDENTS % OF RESPONDENTS


1 McDonald’s 18 36%
2 KFC 17 34%
3 Pizza Hut 5 10%
4 Subway 4 8%
5 Others 6 12%
TOTAL 50 100%

SOURCES: PRIMARY DATA

ANALYSIS:

It is analyzed the table 18 number of respondents they choose the McDonald’s food, 17 number of
respondents they choose the KFC food and 4 number of respondents they choose subway.
“COMPARATIVE STUDY ON EFFECTIVENESS OF SALES PROMOTION STRATEGY ADOPTED BY
MCDONALD’S AND KFC”

GRAPH:3.9

PREFERENCE WHICH OF THESE WOULD YOU CHOOSE

Preference which of these would you choose


40%
36%
35%
34%
30%

25%

20%
12%
10% 8%
15%

10%

5%

0%
MCDONALD'S KFC PIZZA HUT SUBWAY OTHERS

McDonald's KFC Pizza Hut Subway Others

INTERPRETATION:

From the above graph represent that out of 50 respondents in that maximum of 36% of respondents
they choose McDonald’s food, minimum of 8% of respondents they choose subway food and most
of the respondents choose KFC food also.
“COMPARATIVE STUDY ON EFFECTIVENESS OF SALES PROMOTION STRATEGY ADOPTED BY
MCDONALD’S AND KFC”

TABLE:3.10

WHICH ENVIRONMENT IS BETTER IN MCDONALD’S AND KFC

SI.NO FACTORS NO OF RESPONDENTS % OF RESPONDENTS


1 KFC 12 24%
2 McDonald’s 17 34%
3 Both 17 34%
4 None of these 4 8%
TOTAL 50 100%
SOURCES: PRIMARY DATA

ANALYSIS:

From the above table it is analyzed that out of 50 number of respondents in that maximum of 17
number of respondents feel the McDonald’s and KFC both environment is better.
“COMPARATIVE STUDY ON EFFECTIVENESS OF SALES PROMOTION STRATEGY ADOPTED BY
MCDONALD’S AND KFC”

GRAPH:3.10

WHICH ENVIRONMENT IS BETTER IN MCDONALD’S AND KFC

40%

35% Environment34%is better in McDonald's


34% and
30% KFC
24%
25%

20%

15%

10% 8%

5%

0%
KFC McDonald's Both None of these

KFC McDonald's Both None of these

INTERPRETATION:

From the above data it clearly indicates that 34% of respondents feel the McDonald’s restaurant
environment is better and 24% of respondents feel the KFC environment is also better and good
restaurant.
“COMPARATIVE STUDY ON EFFECTIVENESS OF SALES PROMOTION STRATEGY ADOPTED BY
MCDONALD’S AND KFC”

TABLE:3.11

WHEN COMPARED WHICH IS MOST PREFERABLE

SI.NO FACTORS NO OF RESPONDENTS % OF RESPONDENTS


1 KFC 8 16%
2 McDonald’s 8 16%
3 Both 27 54%
4 None of these 7 14%
TOTAL 50 100%
SOURCES: PRIMARY DATA

ANALYSIS:

It is analyzed the table, represent that 27 respondents are highly preferred for both McDonald’s
and KFC and 7 respondents are preferred very less for none of the above organization.
“COMPARATIVE STUDY ON EFFECTIVENESS OF SALES PROMOTION STRATEGY ADOPTED BY
MCDONALD’S AND KFC”

GRAPH:3.11

WHEN COMPARED WHICH IS MOST PREFERABLE

Which restaurant is cleaner

None of these 14%

Both 54%

McDonald's 16%

KFC 16%

0% 10% 20% 30% 40% 50% 60%

KFC McDonald's Both None of these

INTERPRETATION:

From the above graph signifies that 54% of respondents are highly preferred for both McDonald’s
and KFC restaurant and 14% of respondents are very less preferred for none of these restaurant.
“COMPARATIVE STUDY ON EFFECTIVENESS OF SALES PROMOTION STRATEGY ADOPTED BY
MCDONALD’S AND KFC”

TABLE:3.12

WILL THE ADVERTISEMENT INFLUENCE YOU TO VISIT KFC AND


MCDONALD’S?

SI. NO FACTORS NO OF RESPONDENTS % OF RESPONDENTS


1 Have a great influence 12 24%

2 Influence little 19 38%

3 Have no influence 9 18%

4 Not to matter 10 20%

TOTAL 50 100%
SOURCES: PRIMARY DATA

ANALYSI:

The above table specifies that out of 50 respondents in that maximum of 19 responded are influence
little and 9 number of respondents are no influence of the restaurant.
“COMPARATIVE STUDY ON EFFECTIVENESS OF SALES PROMOTION STRATEGY ADOPTED BY
MCDONALD’S AND KFC”

GRAPH:3.12

WILL THE ADVERTISEMENT INFLUENCE YOU TO VISIT KFC AND


MCDONALD’S?

ADVERTISEMENT INFLUENCE

20%
Not to matter

Have no influence 18%

Influence little
38%

Have a great influence


24%

0% 5% 10% 15% 20% 25% 30% 35% 40%

Not to matter Have no influence Influence little Have a great influence

INTERPRETATION:

From the above graph it is interpreted in that maximum 38% of respondents are influence little of
the restaurant and 24% of respondents are saying have a great influence.
“COMPARATIVE STUDY ON EFFECTIVENESS OF SALES PROMOTION STRATEGY ADOPTED BY
MCDONALD’S AND KFC”

TABLE:3.13

IS THERE NEGATIVE VIEWS TOWARDS KFC AND MCDONALD’S?

SI. FACTORS NO OF RESPONDENS % OF RESPONDENTS


NO
1 KFC 21 42%
2 McDonald’s 5 10%
3 Both 7 14%
4 They have the same amount 17 34%
of negative news
TOTAL 50 100%
SOURCES: PRIMARY DATA

ANALYSIS:

From the above table represent that 21 number of respondents have negative views towards KFC
and 5 number of respondents have negative views towards McDonald’s.
“COMPARATIVE STUDY ON EFFECTIVENESS OF SALES PROMOTION STRATEGY ADOPTED BY
MCDONALD’S AND KFC”

GRAPH:3.13

IS THERE NEGATIVE VIEWS TOWARDS KFC AND MCDONALD’S?

45%
42%
40%
35%
30% 34%

25%
20% 14%
10%
15%
10%
5%
0%
KFC MCDONALD'S BOTH THEY HAVE THE
SAME AMOUNT
OF NEGATIVE
NEWS

KFC McDonald's Both They have the same amount of negative news

INTERPRETATION:

From the above graph, it is interpreted that 42% of respondents have more negative views towards
KFC and 10% of respondents have less negative views towards McDonald’s.
“COMPARATIVE STUDY ON EFFECTIVENESS OF SALES PROMOTION STRATEGY ADOPTED BY
MCDONALD’S AND KFC”

TABLE:3.14

CIRCUMSTANCES TO VISIT MCDONALD’S AND KFC

SI. FACTORS NO OF RESPONDENTS % OF RESPONDENTS


NO
1 It is convenient to have 13 26%
something to eat
2 Meet with friends 37 74%
TOTAL 50 100%
SOURCES: PRIMARY DATA

ANALYSIS:

From the above table signifies that 13 number of respondents visit McDonald’s and KFC because
convenient to have something to eat.37 respondents visit KFC and McDonald’s when meet with
friend’s.
“COMPARATIVE STUDY ON EFFECTIVENESS OF SALES PROMOTION STRATEGY ADOPTED BY
MCDONALD’S AND KFC”

GRAPH:3.14

CIRCUMSTANCES TO VISIT MCDONALD’S AND KFC

Circumstance will you go to KFC or McDonald's


80% 74%
70%

60%

50%

40%

30% 26%

20%

10%

0%
It is convenient to have Meet with friends
something to eat

It is convenient to have something to eat Meet with friends

INTERPRETATION:

From the above table signifies that 26% of respondents visit McDonald’s and KFC because
convenient to have something to eat and 74% of respondents visit KFC and McDonald’s when
meet with friend’s.
“COMPARATIVE STUDY ON EFFECTIVENESS OF SALES PROMOTION STRATEGY ADOPTED BY
MCDONALD’S AND KFC”

TABLE:3.15

DO YOU THINK FSAT FOOD IS GOOD FOR HEALTH

SI. NO FACTORS NO OF RESPONDENTS % OF RESPONDENTS


1 Yes 16 32%
2 No 34 68%
TOTAL 50 100%
SOURCES: PRIMARY DATA

ANALYSIS:

It is analyzed that 16 respondents have agreed that junk food are good for health and 34
respondents have opinion that junk food is not good for health.
“COMPARATIVE STUDY ON EFFECTIVENESS OF SALES PROMOTION STRATEGY ADOPTED BY
MCDONALD’S AND KFC”

GRAPH:3.15

DO YOU THINK FSAT FOOD IS GOOD FOR HEALTH

FAST FOOD IS GOOD FOR HEALTH


YES NO

80%

70%

60%

50%

40%
0% 68%
30%

20%
32%
10%

0% 0 0 0
YES NO

INTERPRETATION:

From the above graph shows that 32% of respondents have agreed that junk food is good for health
and 68% of respondents have opinion that junk food is not good for health.
“COMPARATIVE STUDY ON EFFECTIVENESS OF SALES PROMOTION STRATEGY ADOPTED BY
MCDONALD’S AND KFC”

TABLE:3.16

SATISFACTION LEVEL TOWARDS MCDONALD’S AND KFC


SERVICES

SI. NO FACTORS NO OF RESPONDENTS % OF RESPONDENTS


1 Yes 45 90%
2 No 05 10%
TOTAL 50 100%
SOURCES: PRIMARY DATA

ANALYSIS:

It is analyzed the table indicates that 45 number of respondents are highly satisfied with
McDonald’s and KFC services and 5 number of respondents are not satisfied with McDonald’s
and KFC services.
“COMPARATIVE STUDY ON EFFECTIVENESS OF SALES PROMOTION STRATEGY ADOPTED BY
MCDONALD’S AND KFC”

GRAPH:3.16

SATISFACTION LEVEL TOWARDS MCDONALD’S AND KFC


SERVICES

SATISFIED WITH McDonald's AND KFC


100%

90% 0%

80%

70%
PERCENTAGE

60%

50%
90%
40%

30%

20%

10%
10%
0% 0 0 0
YES NO

INTERPRETATION:

From the above graph, shows that 90% of respondents are satisfied with McDonald’s and KFC
services and 10% of respondents are not satisfied with McDonald’s and KFC services. Majority
of respondents are agreed that McDonald’s and KFC services.
“COMPARATIVE STUDY ON EFFECTIVENESS OF SALES PROMOTION STRATEGY ADOPTED BY
MCDONALD’S AND KFC”

TABLE 3.17

WHAT FACTOR INFLUENCES TOWARDS MCDONALD AND KFC


FOOD

SI. NO FACTORS NO OF RESPONDENTS % OF RESPONDENTS


1 Delicious 9 18%
2 Good 28 56%
3 Normal 13 26%
4 Not Good - -
TOTAL 50 100%
SOURCES: PRIMARY DATA

ANALYSIS:

The above table signifies that 28 number of respondents feel the KFC and McDonald’s food is
good and 9 number of respondents feel the KFC and McDonald’s food is delicious.
“COMPARATIVE STUDY ON EFFECTIVENESS OF SALES PROMOTION STRATEGY ADOPTED BY
MCDONALD’S AND KFC”

GRAPH:3.17

WHAT FACTOR INFLUENCES TOWARDS MCDONALD AND KFC


FOOD

Feel about McDonald's and KFC food


60%
0
50%

40%

30% 56%
0%
0
20%
18%
10%
26%
0% 0
Delicious 0
Good 0
Normal
Not Good

Delicious Good Normal Not Good

INTERPRETATION:

From the above graph that 56% of respondents feel the KFC and McDonald’s food is good, 18%
of respondents feel the KFC and McDonald’s food is delicious and 26% of respondents feel the
KFC and McDonald’s food is normal.
“COMPARATIVE STUDY ON EFFECTIVENESS OF SALES PROMOTION STRATEGY ADOPTED BY
MCDONALD’S AND KFC”

TABLE:3.18

WHETHER RESTAURANT HAS GOOD STAFF

SI. NO FACTORS NO OF RESPONDENTS % OF RESPONDENTS


1 McDonald’s 15 30%
2 KFC 28 56%
3 Both 7 14%
TOTAL 50 100%
SOURCES: PRIMARY DATA

ANALYSIS:

From the above table shows that 28 number of respondents feel that KFC restaurant has good staff
and 15 number of respondents feel that both McDonald’s and KFC restaurant has good staff.
“COMPARATIVE STUDY ON EFFECTIVENESS OF SALES PROMOTION STRATEGY ADOPTED BY
MCDONALD’S AND KFC”

GRAPH:3.18

WHETHER RESTAURANT HAS GOOD STAFF

GOOD STAFF

60%

50%
40%
56%
30%
0 14%
20% 30% 0
0%
10% 0 Both
0
0% 0 0 KFC
McDonald's 0
KFC 0 McDonald's
Both

McDonald's KFC Both

INTERPRETATION:

From the above graph shows that 56% of respondents feel that KFC restaurant has good staff and
14% of respondents feel that both McDonald’s and KFC restaurant has good staff.
“COMPARATIVE STUDY ON EFFECTIVENESS OF SALES PROMOTION STRATEGY ADOPTED BY
MCDONALD’S AND KFC”

FINDINGS, CONCLUSIONS AND SUGGESTIONS

4.1 FINDINGS:

 It is being found that 52% of respondents are Non vegetarian.


 It is being found that 24% of respondents visits restaurant once in a week.
 74% of respondents are generally accompanies to visit restaurant with friends.
 38% of respondents are feel that the Price is expensive
 56% of respondents agree that they spend around Rs100-Rs500 per visit.
 52% respondents are coming restaurants for the non-veg delicacies.
 78% of respondents are satisfied with the hygiene of the place.
 Staff are friendly towards customers.
 Majority of the respondents prefer KFC restaurant more than McDonald’s.
 48% of respondents spend between 300-500 in KFC or McDonald’s.
 According to survey McDonald’s restaurant environment is better compare to KFC
restaurant
 38% of respondents agree that advertisements influence them.
 42% of respondents have negative views on both McDonald’s and KFC.
 Most of respondents are feel fast food is not good for health according to survey 68% of
respondents consider is not good for health.
 Most of respondents are saying KFC and McDonald’s food is good and better according to
survey 56% of respondents saying fast food is good and delicious.
“COMPARATIVE STUDY ON EFFECTIVENESS OF SALES PROMOTION STRATEGY ADOPTED BY
MCDONALD’S AND KFC”

4.2 CONCLUSION:

In India fast food market is strongly dominated by these 2 brands. But when it comes to comparing
these two brands the following study brings us to a conclusion that as far as market presence and
brand value is concerned McDonald’s has definitely proved a point for themselves. But KFC who
re-entered in 2003 has shown a rapid progress and no wonder if in the coming years KFC overtakes
McDonald’s in the Indian market share. Both the food giants have given each other immense
competition in terms of customer satisfaction and promotional strategies.

The range of products and offers offered by each is remarkable in every context. Although
McDonald’s has an upper hand with the vegetarian crowd because of its exclusive products, KFC
is slowly catching up to the challenge. KFC provides vegetarian alternatives with an added
advantage of a complete meal including rice and desert. Where McDonald’s fall into the snack
option KFC had quite evident which one can be termed as better than the other.

In today’s world one of the major problems is unbalanced growth in customer loyalty program.
This paper exemplifies the environment and the ways loyalty managers can meet this exacting
challenge. This can only have achieved by making business plan and optimized business process
design to compute those strategies which is maintained by highly technology persons. Overall
coverage at each level is required for business processes which are fully cover up by business
strategies. Technology fully covers the needs of the business processes which are fully covers the
technology requirements.
“COMPARATIVE STUDY ON EFFECTIVENESS OF SALES PROMOTION STRATEGY ADOPTED BY
MCDONALD’S AND KFC”

4.3 SUGGESTIONS:

 The companies have to focus more on non-veg because respondents like more than
vegetarian.
 KFC and McDonald’s restaurant have keep offers to attract customers.
 Price should be reasonable.
 The advertisement can focus more on society so ads should be attractive.
 Restaurant advertising has to focus more on other information also to attract customers.
 Companies has to focus on avoiding negative news to the restaurants.
 Restaurant advertisement should be more impressive than only customers like the
restaurant to attend.
 The advertisement of newspapers, magazine should improve in market than only
respondents will use more often.
 Food has to be good for health which satisfy the customers, because most of the
respondents are complaints fast food is not good for health.
 Company have to keep main focus on the respondents to survey healthy food.
“COMPARATIVE STUDY ON EFFECTIVENESS OF SALES PROMOTION STRATEGY ADOPTED BY
MCDONALD’S AND KFC”

5. ANNEXURES

BIBLIOGRAPHY

BOOKS
1. Philip Kotler, Kevin Lane Keller: Marketing management, 2008
2. Eric Scholloser: Fast Food Nation, 2001
3. Michael Armstrong: Strategic Human Resources Management 2006
4. “Dr M. J. Mathew”, “Sales management and sales promotion”
5. “Philip Kotler”, “Marketing management “Himalaya publishing house”

WEBSITES
www.google.com
www.shodhgangotri.com
www.kfc.com
http://www.mcdonalds.com
“COMPARATIVE STUDY ON EFFECTIVENESS OF SALES PROMOTION STRATEGY ADOPTED BY
MCDONALD’S AND KFC”

QUESTIONNAIRES

Dear sir/madam:

I am RAMYA M V MBA (Master of business administration) student of Sri Gokula College


of Arts Science and Management Studies PG block KOLAR, doing my project on “Comparative
study on effectiveness of sales promotion strategy adopted by McDonald’s and KFC”. This survey
is designed to get feedback on the impact of comparative study on McDonald’s and KFC.

I would be grateful if you would spare a few minutes to complete this questionnaire and I assure
you that information provided will be strictly used for research purpose only.

Name of the respondent:

Place:

1. Select your gender:


a. Male b. female
2. Please specific your age:
a. Under 18 years b. 18-21 c. 22-25 d. 26-30
3. What is your qualification:
a. Undergraduate b. graduate c. post graduate
“COMPARATIVE STUDY ON EFFECTIVENESS OF SALES PROMOTION STRATEGY ADOPTED BY
MCDONALD’S AND KFC”

4. Are you vegetarian/non vegetarian:


a. Vegetarian b. non vegetarian c. occasionally non vegetarian
5. How often do you visit here?
a. Daily b. once a week c. once a month d. at leisure
6. What is your saying on the pricing of the joint?
a. Normal b. expensive c. value for money
7. How much do you spend on average visit?
a. Below Rupees 100 b. Rupees100-500 c. above Rupees 500
8. What do you think about the hygiene of the place?
a. Satisfactory b. need attention c. very poor indeed
9. How do you find the staff?
a. Friendly b. indifferent c. rude
10. Given a preference which of these would you choose?
a. McDonald’s b. KFC c. Pizza hut d. subway e. others
11. How much do you spend in McDonald’s and KFC?
a. 200 b. 200-300 c. 300-500 d. above 500
12. Which environment is better in McDonald’s and KFC?
a. KFC b. McDonald’s c. both d. none of these
13. Which restaurant is cleaner in McDonald’s and KFC?
a. KFC b. McDonald’s c. both d. none of these
14. Will the advertisement influence you to go their restaurant?
a. Have a great influence
b. Influence little
c. Have no influence
d. Not to matter
15. Which one do you think has more negative news KFC or McDonald’s?
a. KFC b. McDonald’s c. both d. they have the same amount of negative news
16. Under what circumstances will you go to McDonald’s and KFC:
a. It is convenient to have something to eat
b. Meet with friends
“COMPARATIVE STUDY ON EFFECTIVENESS OF SALES PROMOTION STRATEGY ADOPTED BY
MCDONALD’S AND KFC”

17. Do you think fast food is good for health?


a. Yes b. No
18. Are you satisfied with McDonald’s and KFC services?
a. Yes b. No
19. How do you feel about McDonald’s and KFC food?
a. Delicious b. good c. normal d. not good
20. Which restaurant has good staff?
a. McDonald’s b. KFC c. both

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