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A REPORT ON
THE STUDY OF EFFECTIVENESS OF PROMOTIONAL
SCHEMES OT McDonalds & DOMINOS
SUBMITTED TO
Matrix School of Management Studies
UNDER THE GUIDANCE OF
Prof. Sandhya Bansal
http://en.wikipedia.org/wiki/File:Dominos_pizza_logo.svghttp://en.wikipedia.org/wiki/File:McDonald's_Golden_Arches.svghttp://en.wikipedia.org/wiki/File:Dominos_pizza_logo.svghttp://en.wikipedia.org/wiki/File:McDonald's_Golden_Arches.svghttp://en.wikipedia.org/wiki/File:Dominos_pizza_logo.svghttp://en.wikipedia.org/wiki/File:McDonald's_Golden_Arches.svg -
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Contents1.Acknowledgement.03
2.Declaration.04
3.Executive Summary05
4.4Ps of Marketing..06
5. Introduction..07
6.Company profile McD..09
7. Company profile Dominos10
8. Research Methodology11
9. Sales and Promotion McD.14
10. Sales and Promotion Dominos15
11.Findings16
12. Research Methodology of the project17
13.Interpretation and Analysis20
14. Suggestions25
15. Conclusion.26
16.Bibliography... 27
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ACKNOWLEDGEMENT
Though perseverance and enthusiasm combined with effort in the right
direction can bring forth the thing called success. But the realization of the harsh
reality that the path towards success is full of myriads, temptations, impediments
and pitfalls often proves to be disheartening in such situation, it is the able
guidance of knowledgeable person that steers one through difficulties and help
them achieve success.
I am highly obliged to express my deep sense of gratitude and grateful
thanks to Prof. Sandhya Bansal for her valuable guidance and support which led
to the successful and timely completion of my project report.
Secondly special thanks go to our director Prof. S. Ujagare for his
encouraging talk insight into the related aspects of project report.
Last but not the least, we deeply appreciate the cheerful encouragement of
all staff members of our department and our friends.
Thanking you.
--- Project Associates
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D E C L A R A T I O N
We the undersigned solemnly declare that the report of the project work
entitled The study of effectiveness of promotional schemes is based on our
own work carried outduring the course of our study under the supervision ofProf.Sandhya Bansal.
We assert that the statements made and conclusions drawn are an outcome
of the project work. we further declare that to the best of our knowledge and belief
that the report does not contain any part of any work which has been submitted for
the award of any other degree/diploma/certificate in this University of any other
University.
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Executive summary
The purpose of this project to know that how Operation Management Strategies & Total
Quality Management Strategies are made, implemented and how they
impacts on the organization. For this purpose we selected McDonalds and
Dominos to obtain necessary data and its analysis. With the completion of
this project we have learned that how Operations Management Strategies &
TQM Strategies are implementing and its impacts on the organization. OperationsManagement Strategies plays very important role in achieving an organizational
goals. By using these strategies an organization controls and maintains allits operations.
So these should make after a comprehensive marketing analysis, according to
capabilities and resources of an organization, high and competitive product
environment and customer satisfaction Operations and some comparision
between McDonalds and Dominos .Management Strategies in McDonalds and
Dominos are being made by top management. These strategies are
implements in all branches under instructions of top management, which are
distributed to all branches in written form. So there are operations mangers in all
branches which is controlled by top management.
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4PS OF MARKETING
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INTRODUCTION Sales promotion is one of the four aspects of promotional mix. (The other three
parts of the promotional mix are advertising, personal selling, and publicity/public
relations.) Media and non-media marketing communication are employed for a pre-
determined, limited time to increase consumer demand, stimulate market demand orimprove product availability. Examples include:
contests point of purchase displays rebate (marketing) free travel, such as free flights
Sales promotions targeted at the consumer are called consumer sales promotions.
Sales promotions targeted at retailers and wholesale are called trade sales promotions.
Sales promotion includes several communications activities that attempt to provide
added value or incentives to consumers, wholesalers, retailers, or other organizational
customers to stimulate immediate sales. These efforts can attempt to stimulate product
interest, trial, or purchase. Sales promotions are varied. Often they are original and
creative, and hence a comprehensive list of all available techniques (since original sales
promotions are launched daily!). Here are some examples of popular sales promotions
activities:
(a) Buy-One-Get-One-Free (BOGOF) - which is an example of a self-liquidating
http://en.wikipedia.org/wiki/Promotional_mixhttp://en.wikipedia.org/wiki/Promotional_mixhttp://en.wikipedia.org/wiki/Advertisinghttp://en.wikipedia.org/wiki/Saleshttp://en.wikipedia.org/wiki/Publicityhttp://en.wikipedia.org/wiki/Public_relationshttp://en.wikipedia.org/wiki/Public_relationshttp://en.wikipedia.org/wiki/Competitionhttp://en.wikipedia.org/wiki/Point_of_purchasehttp://en.wikipedia.org/wiki/Rebate_(marketing)http://en.wikipedia.org/wiki/Consumerhttp://en.wikipedia.org/wiki/Wholesalershttp://en.wikipedia.org/wiki/Wholesalershttp://en.wikipedia.org/wiki/Consumerhttp://en.wikipedia.org/wiki/Rebate_(marketing)http://en.wikipedia.org/wiki/Point_of_purchasehttp://en.wikipedia.org/wiki/Competitionhttp://en.wikipedia.org/wiki/Public_relationshttp://en.wikipedia.org/wiki/Public_relationshttp://en.wikipedia.org/wiki/Publicityhttp://en.wikipedia.org/wiki/Saleshttp://en.wikipedia.org/wiki/Advertisinghttp://en.wikipedia.org/wiki/Promotional_mixhttp://en.wikipedia.org/wiki/Promotional_mix -
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promotion. For example if a loaf of bread is priced at $1, and cost 10 cents to
manufacture, if you sell two for $1, you are still in profit - especially if there is a
corresponding increase in sales. This is known as a PREMIUM sales promotion tactic.
b) Customer Relationship Management (CRM) incentives such as bonus points or money
off coupons. There are many examples of CRM, from banks to supermarkets.
(c) New media - Websites and mobile phones that support a sales promotion.
(d) Free gifts e.g. Subway gave away a card with six spaces for stickers with each
sandwich
purchase. Once the card was full the consumer was given a free sandwich.
(e) and coupons, often seen in newspapers and magazines, on packs.
(f) Competitions and prize draws, in newspapers, magazines, on the TV and radio, on
Internet, and on packs.
Discounted prices
(g)Free samples (aka. sampling) e.g. tasting of food and drink at sampling points in
supermarkets. For example Red Bull was given away to potential consumers at
supermarkets, in high streets and at petrol stations (by a promotions team).
(h) Vouchers
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COMPANY PROFILE OF McDonalds
Mcdonalds began in 1940, with a restaurant opened by brothers Richard and Maurice
McDonald in San Bernardino, California. Their introduction of the "Speedee Service
System" in 1948 established the principles of the modern fast-food restaurant. The
original mascot of McDonald's was a man with a chef's hat on top of a hamburger shaped
head whose name was "Speedee." Speedee was eventually replaced with Ronald
McDonald by 1967 when the company first filed a U.S. trademark on a clown shaped
man having puffed out costume legs McDonalds is the world's largest chain of
hamburger fast food restaurants, serving more than 58 million customers daily .In
addition to its signature restaurant chain, McDonalds Corporation held a minority
interest in Pret A Manger until 2008, was a major investor in the Chipotle Mexican Grill
until 2006, and owned the restaurant chain Boston Market until 2007.
A McDonald's restaurant is operated by either a franchisee, an affiliate, or the corporationitself. The corporation's revenues come from the rent, royalties and fees paid by the
franchisees, as well as sales in company-operated restaurants. McDonald's primarily sells
hamburgers, cheeseburgers, chicken products, french fries, breakfast items, soft drinks,
shakes, and desserts. In response to obesity trends in Western nations and in the face of
criticism over the healthiness of its products, the company has modified its menu to
include alternatives considered healthier such as salads, wraps and fruit.
A McDonald's restaurant is operated by either a franchisee, an affiliate, or the corporation
itself. The corporation's revenues come from the rent, royalties and fees paid by the
franchisees, as well as sales in company-operated restaurants. McDonald's revenues grew
http://en.wikipedia.org/wiki/Restauranthttp://en.wikipedia.org/wiki/Richard_and_Maurice_McDonaldhttp://en.wikipedia.org/wiki/Richard_and_Maurice_McDonaldhttp://en.wikipedia.org/wiki/San_Bernardino,_Californiahttp://en.wikipedia.org/wiki/Fast_food#Overviewhttp://en.wikipedia.org/wiki/Ronald_McDonaldhttp://en.wikipedia.org/wiki/Ronald_McDonaldhttp://en.wikipedia.org/wiki/Fast_food_restauranthttp://en.wikipedia.org/wiki/Pret_A_Mangerhttp://en.wikipedia.org/wiki/Franchiseehttp://en.wikipedia.org/wiki/Affiliate_(commerce)http://en.wikipedia.org/wiki/Hamburgerhttp://en.wikipedia.org/wiki/Cheeseburgerhttp://en.wikipedia.org/wiki/Chicken_(food)http://en.wikipedia.org/wiki/French_frieshttp://en.wikipedia.org/wiki/Breakfasthttp://en.wikipedia.org/wiki/Soft_drinkhttp://en.wikipedia.org/wiki/Milkshakehttp://en.wikipedia.org/wiki/Desserthttp://en.wikipedia.org/wiki/Saladhttp://en.wikipedia.org/wiki/Wrap_(food)http://en.wikipedia.org/wiki/Franchiseehttp://en.wikipedia.org/wiki/Affiliate_%28commerce%29http://en.wikipedia.org/wiki/Affiliate_%28commerce%29http://en.wikipedia.org/wiki/Franchiseehttp://en.wikipedia.org/wiki/Wrap_(food)http://en.wikipedia.org/wiki/Saladhttp://en.wikipedia.org/wiki/Desserthttp://en.wikipedia.org/wiki/Milkshakehttp://en.wikipedia.org/wiki/Soft_drinkhttp://en.wikipedia.org/wiki/Breakfasthttp://en.wikipedia.org/wiki/French_frieshttp://en.wikipedia.org/wiki/Chicken_(food)http://en.wikipedia.org/wiki/Cheeseburgerhttp://en.wikipedia.org/wiki/Hamburgerhttp://en.wikipedia.org/wiki/Affiliate_(commerce)http://en.wikipedia.org/wiki/Franchiseehttp://en.wikipedia.org/wiki/Pret_A_Mangerhttp://en.wikipedia.org/wiki/Fast_food_restauranthttp://en.wikipedia.org/wiki/Ronald_McDonaldhttp://en.wikipedia.org/wiki/Ronald_McDonaldhttp://en.wikipedia.org/wiki/Fast_food#Overviewhttp://en.wikipedia.org/wiki/San_Bernardino,_Californiahttp://en.wikipedia.org/wiki/Richard_and_Maurice_McDonaldhttp://en.wikipedia.org/wiki/Richard_and_Maurice_McDonaldhttp://en.wikipedia.org/wiki/Restaurant -
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27% over the three years ending in 2007 to $22.8 billion, and 9% growth in operating
income to $3.9 billion
COMPANY PROFILE OF DOMINOS
In 1960, Tom Monaghan and his brother, James, purchased Dominicks, a small pizza
store in Ypsilanti, Michigan. The deal was secured by a US$75 down payment and the
brothers borrowed $500 to pay for the store. Eight months later, James traded his half of
the business to Tom for a used Volkswagen Beetle. As sole owner of the company, Tom
Monaghan renamed the business Domino's Pizza, Inc. in 1965. In 1967, the first
Domino's Pizza franchise store opened in Ypsilanti. The company logo was originally
planned to add a new dot with the addition of every new store, but this idea quickly faded
as Domino's experienced rapid growth. By 1978, the franchise opened its 200th store.
Domino's is the second-largest pizza chain in the United States and has nearly 9,000
corporate and franchised stores in 60 international markets and all 50 U.S. states.
Domino's Pizza was sold to Bain Capital in 1998 and went public in 2004. The menu
features pizza, pasta, oven-baked sandwiches, wings, boneless chicken, salads,
breadsticks, cheese sticks, and a variety of dessert items. 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 and ceased being
involved in day-to-day operations of the company. A year later, the company named
David A. Brandon Chairman and Chief Executive Officer.
On May 12, 1983, Domino's opened its first international store, in Winnipeg, Manitoba,
Canada. That same year, Domino's opened its 1,000th store overall, and by 1995
http://en.wikipedia.org/wiki/Tom_Monaghanhttp://en.wikipedia.org/wiki/Ypsilanti,_Michiganhttp://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/Volkswagen_Beetlehttp://en.wikipedia.org/wiki/Franchisinghttp://en.wikipedia.org/wiki/Bain_Capitalhttp://en.wikipedia.org/wiki/Bain_Capitalhttp://en.wikipedia.org/wiki/David_Brandonhttp://en.wikipedia.org/wiki/Winnipeghttp://en.wikipedia.org/wiki/Manitobahttp://en.wikipedia.org/wiki/Canadahttp://en.wikipedia.org/wiki/Canadahttp://en.wikipedia.org/wiki/Manitobahttp://en.wikipedia.org/wiki/Winnipeghttp://en.wikipedia.org/wiki/David_Brandonhttp://en.wikipedia.org/wiki/Bain_Capitalhttp://en.wikipedia.org/wiki/Bain_Capitalhttp://en.wikipedia.org/wiki/Franchisinghttp://en.wikipedia.org/wiki/Volkswagen_Beetlehttp://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/Ypsilanti,_Michiganhttp://en.wikipedia.org/wiki/Tom_Monaghan -
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Domino's had 1,000 international locations. In 1997, Domino's opened its 1,500th
international location, opening seven stores in one day across five continent
RESEARCH METHEDOLOGY
Research is a systematized effort to gain new knowledge.
Research is the systematic process of collecting and analyzing information
(data) in order to increase our understanding of the phenomenon about which
we are concerned or interested.
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Cont
Methodology includes a philosophically coherent collection of theories, concepts
or ideas as they relate to a particular discipline or field of inquiry.
Methodology refers to more than a simple set of methods rather it refers to the
rationale and the philosophical assumptions that underline a particular study
relative to the scientific method. There two types of Data:
1. Primary data2. Secondary data
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1. Primary Data :
Primary research (also called field research) involves the collection ofdata
that does not already exist, which is research to collect original data. Primary
Research is often undertaken after the researcher has gained some insight into the
issue by collecting secondary data. This can be through numerous forms, including
questionnaires, direct observation and telephone interviews amongst others. This
information may be collected in things like questionnaires and interviews .
There are basic approaches to data collections using primary methods:
Qualitative research includes interviews, focus groups and participant observations.
Quantitative research includes controlled laboratory experiments, field work,
questionnaires and surveys and ethnographies.
The term primary research is widely used in academic research, market research and
competitive intelligence
2. Secondary Data :
Secondary data is data collected by someone other than the user. Common
sources of secondary data for social science include censuses, surveys,
organizational records and data collected through qualitative methodologies or
qualitative research. Primary data, by contrast, are collected by the investigator
conducting the research.
Secondary data analysis saves time that would otherwise be spent collecting data
and, particularly in the case of quantitative data, provides larger and higher-quality
databases than would be unfeasible for any individual researcher to collect on their
http://en.wikipedia.org/wiki/Datahttp://en.wikipedia.org/wiki/Questionnaireshttp://en.wikipedia.org/wiki/Qualitative_researchhttp://en.wikipedia.org/wiki/Quantitative_researchhttp://en.wikipedia.org/wiki/Academic_researchhttp://en.wikipedia.org/wiki/Market_researchhttp://en.wikipedia.org/wiki/Competitive_intelligencehttp://en.wikipedia.org/wiki/Datahttp://en.wikipedia.org/wiki/Datahttp://en.wikipedia.org/wiki/Qualitative_researchhttp://en.wikipedia.org/wiki/Qualitative_researchhttp://en.wikipedia.org/wiki/Datahttp://en.wikipedia.org/wiki/Competitive_intelligencehttp://en.wikipedia.org/wiki/Market_researchhttp://en.wikipedia.org/wiki/Academic_researchhttp://en.wikipedia.org/wiki/Quantitative_researchhttp://en.wikipedia.org/wiki/Qualitative_researchhttp://en.wikipedia.org/wiki/Questionnaireshttp://en.wikipedia.org/wiki/Data -
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own. In addition to that, analysis of social and economic change consider
secondary data essential, since it is impossible to conduct a new survey that can
adequately capture past change and/or development
1) SAMPLE UNIT: The customers are from Pune
2) SAMPLE SIZE: 100 customers of Mc Donalds and Dominos
SALES PROMOTION OF McDonalds
The various promotion channels being used by McDonalds to effectively communicate
the product information are given above. A clear understanding of the customer value
helps decide whether the cost of promotion is worth spending. There are three main
objectives of advertising for McDonalds are to make people aware of an item feel
positive about it and remember it. The right message has to be communicated to the right
audience through the right media. McDonalds does its promotion through television,
hoardings and bus shelters. They use print ads and the television programmes are also an
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important marketing medium for promotion.They also use TOYS to attract children.
Some of the most famous marketing campaigns of McDonalds are:
You Deserve a break today, so get up and get away- To McDonalds
Aap ke zamane mein ,baap ke zamane ke daam.
Food, Folks, and Fun
Im loving it.
SALES PROMOTION OF DOMINOS
Dominos have constantly focused on consumer-centric areas such as product innovation,
taste, pricing and customer service. Our several products innovations such as Double
Cheese Crunch Pizza, Kebab Pizzas, Cheese Burst Pizza, Dominos Calzone, Chicken
Wings amongst others, and most recently Pasta, have gone down well with the
consumers. As the result, Dominos have been able to get quick product acceptance from
them and often that is the first and most important bridge that a foreign food category has
to cross. On the other hand, offers like, Pizza Mania at Rs 35/- per Pizza and Fun Meal
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for 4 has helped us drive value-formoney proposition allowing access to the brand.
Dominos have realised that value for money is an extremely important need for Indian
consumers, especially in the context of the food services market. Then our 30 minutes or
free service guarantee gives a differentiated edge to our brand amongst the Indianconsumers.
FINDINGS
There are in Mcdonalds and Dominos Some of the factors that have driven growths an
perception of Pizzas as a meal option have been changing lifestyles
1. Among the top four fast food outlets Dominos and McDonalds is seen to be ontop.
2. Although being a foreign brand, Indians are satisfied with the fast food theyprovide.
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3. It is available with affordable prices.4. Dominos and McDonalds fast food outlets are easily found in any area of metro
cities.
RESEARCH METHEDOLGY OF THE PROJECT
The methodologies of the study are as follows:
1) Developing the research plan for collecting information.2) Implementing the research plan-collecting and analyzing.
Scope of the study
The study is this project is all practical, hence the data given is very useful and helpful to
increase the sales of the newly launched brand.
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Type of the study
The project made is analytical project.
Type of data
There are two types of data that are used as a source for carrying out the research and for
the analysis of the same:
1) PRIMARY DATA: In are project it has been collected with the help of a questionnairebeing filled up by various consumers.
2) SECONDARY DATA: In are project, I have collected the secondary data with the use ofbrochures, internet, books and taken from departmental shops, medical stores, shopping
malls, parlor etc.
SAMPLE PLAN
Area sampling and judgmental sampling techniques were adopted in the area
under study. All the customers are in and around Pune were interviewed. Area under
study was divided into different parts and each area was interviewed my us. The
interview was prepared on the basis of questionniare.
UNIVERSE
I interviewed 100 customers in various fast food outlets i. e,. Mcdonalds and Dominos.
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SAMPLE DESIGN
3) SAMPLE UNIT: The customers are from Pune4) SAMPLE SIZE: 100 customers of Mcdonalds and Dominos.
QUESTIONNAIRE
A questionnaire is consists of number of question printed or typed or printed in a definite
order or a form or set of form. The questionnaire is given to respondents who are
expected to read and the questions and write down the reply in space meant for the
purpose in the questionnaire itself. The respondents have to answer the questions.
In my project, a questionnaire was prepared as shown in the annexure. The
questionnaire was tested on a group of 100 customers who are regular purchaser of the
various departmental stores, medical stores, parlors etc.
FIELD WORK
The primary data for the project was collected through the method of the questionnaire where as the
secondary data was collected from the fast food outlets.
DATA ANALYSIS
As the name suggests data analysis technique is the method or technique used for
analyzing the required data. This technique helps in analyzing the data and sorting of the
required and the non required data. The non required data is not considered while
preparing the report. The required data is then tabulated for the project. The technique
used by me for the analysation of data for my project is the PERCENTAGE METHOD.
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The percentage method is a method in which the average percent of the consumers
feedback is tabulated.
INTERPRETATION AND ANALYSIS
Q.1 WHICH FAST FOOD DO YOU PREFER?
A. MC DONALDS
B. PIZZA HUT
C.DOMINOS
D.KFC
NO. OF REFERANCES NO. OF CONSUMERS PERCENTAGE (%)
MC DONALD
30 30
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PIZZA HUT
20 20
DOMINOS
35 35
KFC
15 15
Q.2. WHOS SALES PROMOTION ATTRACTS YOU?
A. MC DONALD
B. PIZZA HUT
C. DOMINOS
D. KFC
NO. OF PREFERANCES NO. OF CONSUMERS PERCENTAGE (%)
MC DONALDS 35 35
25 25
30%
20%
35%
15%
%
MC DONALDS
PIZZA HUT
DOMINOS
KFC
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PIZZA HUT
DOMINOS
30 30
KFC
10 10
Q.3 GRADE THE PRODUCT ACCORDING TO ITS EFFECTIVENESS.
A. MC DONALDS15
B. DOMINOS
C. PIZZA HUT
D. KFC
NO. OF PREFERANCES NO. OF CUSTOMERS GRADES
MC DONALD 35 A
DONIMOS
30 A
35%
25%
30%
10%
%
MCDONALDS PIZZA HUT DOMINOS KFC
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PIZZA HUT
20 B
KFC
15 C
Q.4. ARE YOU SATISFIED WTH THRIE SERVICE?
A. MC DONALD
B. DOMINOS
C. PIZZA HUT
NO. OF PREFERENCES NO. OF CUSTOMERS SATISFIED OR NOT
MC DONALDS 45 SATISFIED
DOMINOS 35 QUIET SATIFIED
PIZZA HUT 20 NOT SATISFIED
MC DONALD (A)
35%
DOMINOS (A)
30%
PIZZA HUT (B)
20%
KFC C.
15%
Sales
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QUESTIONNAER
Q.1 WHICH FAST FOOD DO YOU PREFER?
A. MC DONALDS { }
B. PIZZA HUT { }
C.DOMINOS { }
D.KFC { }
MC DONALDS
45%
DOMINOS
35%
PIZZA HUT
20%
0%
Sales
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Q.2. WHOS SALES PROMOTION ATTRACTS YOU?
A. MC DONALD { }
B. PIZZA HUT { }
C. DOMINOS { }
D. KFC { }
Q.3 GRADE THE PRODUCT ACCORDING TO ITS EFFECTIVENESS.
A. MC DONALDS { }
B. DOMINOS { }
C. PIZZA HUT { }
D. KFC { }
Q.4. ARE YOU SATISFIED WTH THRIE SERVICE?
A. MC DONALD { }
B. DOMINOS { }
C. PIZZA HUT { }
SUGGESTIONS
1. Both Company should focus on promotion schemes more to increase themarket share.
2. Company should also focus on its customer care services.
3. The company should provide some items at cheaper prices so that the lowermiddle class of the society even can afford to enjoy the same.
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CONCLUSION
we have concluded our report as under:
McDonalds AND DOMINOS is maintaining its product quality
according to the internationalstandards
The customization of the product and services according to the culture
of Pakistan has resulted in customer satisfaction
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McDonalds and dominos has properly covered the business areas with in cities
e.g. Lahore
McDonalds and dominos maintains a good environment in every premise.
McDonalds has a learn ing envi ronment for employee
development andcustomer satisfaction.
BIBLIOGRAPHY
References
Books
1. Research Methodology methods and Techniques.C.R. Kothari
2. Marketing Management(3rd
Edition)
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V. S. Ramaswamy
S. Namakumar
WEBLIOGRAPHY
1. www.google.com2. www.wikipedia.com3. www.edocfind.com
http://www.google.com/http://www.google.com/http://www.wikipedia.com/http://www.wikipedia.com/http://www.wikipedia.com/http://www.google.com/