MCDONALD’S INDIA.

By

Umapathi

11hm18

NITK,SURATHKAL

CONTENTS

Company Profile Before coming to India India Vision & Entry Indian Market Supply Chain Management Product Adoption Targeting Markets Marketing Strategy Promotional Techniques Success story

COMPANY PROFILE

Established in 1955, head quarters: Oak Brook, Illinois, U.S.

Presence in 119 countries Revenue: $24 billionsVision:McDonald's complete commitment to Quality,Service, Cleanliness and Value (QSC&V)

BEFORE COMING TO INDIA

Analysis about India: Huge Sub-continent 4 times the population of the US 4th largest economy Size of ‘Eating Out’ market- substantial Consumer spending growing Highly fragmented food market Millions of roadside stalls / carts- major market

share Udipi, Sandwich, PavBhaji, Chaats,

Chinese,Namkeens, Pizza Organised chains- Narula’s, Wimpys, Udipis

CONTINUE…

20 major languages, 800+ dialects 50% population literate Advertising-Billboards, Print , Electronic 8 languages for National launch

INDIA VISION & ENTRY

To be India’s "best" quick service restaurantexperience - supported by principles and corevalues

Entered in 1996, 50:50 Joint Venture with ConnaughtPlaza Restaurants-Vikram Bakshi- North &Hardcastle Restaurants-Amit Jatia- West

Trained extensively, along with their Indianmanagement team, in McDonald's in Indonesia and the US before launch

Always been a franchising Company

INDIAN MARKET

1991 Open to FDI KFC (1995), Kelloggs (1991) were not

succeeded Overconfidence, Lack of demand High cost, lack of local taste and Over

estimation on demand Inappropriate strategies and Limited

purchase power Significant vegetarian population

SUPPLY CHAIN MANAGEMENT

Local network for supply chain & distribution Local suppliers, distributors to mat Quality and hygiene standards Invested Rs 50 crore in setting up, before opening

1st outlet and by 2000- Investment in supply chain – Rs 300 crore.

Geographically diverse sourcing: Buns from North Chicken & Cheese from West Fish, Lettuce & Pickles from South 98% paper, locally sourced French fries imported from Indonesia 40 suppliers in the chain 

PRODUCT ADOPTION

The Indian Challenge Menu Development Restaurant Management System International Standards Family Restaurant Value Pricing Respect to Indian customs and Culture. Widening Customer base Community Partnership /CSR

MENU Veg McCurry Pan Chicken McCurry pan Maharaja mac Mexican style wraps Paneer salsa Veg burger McVeggie Pizza McCuff Veggie Mc Muffin Chicken Patty McAloo Burger French fries Beverages Ice creams etc.

TARGETING MARKETS

Kids & The Young family (<30 years) Only < 10% population-possible target market Concentrate on metros, then open branches in

other citiesPhase I- Focus on cities of relatively high incomeswhere citizens are exposed to western food & culturePhase II- Move to smaller satellite towns (Gurgaon,Pune)- Positive spillover effect of reputationJaipur & Agra- To attract foreign touristsPhase III- Malls, Multiplexes, Highways, Stations &Airports 

MARKET STRATEGY

Promotional strategy to convey world class experience Indian adaptations, freshness, nutrition & value Shift from worldwide positioning of drive-in convenience and speedy service Segment- The Young family (<30 years) Target- The young family who eats out Focus- Attracting children, so family follows Positioning- ‘McDonalds mein hai kuch baat’ – a place for the entire family to enjoy Differentiation- highlighting brand, food & variety Happy meal film on Cartoon Network, Zee Special promotions during festivals Get Lucky Promotional schemes

PROMOTIONAL TECHNIQUES

Before adopting promotional techniques, McDonalds survey.

Ratio of Veg n non Veg customers visiting McDonald’s

Favorite product? Do you find the product line satisfactory? Favorite Advertisement? Do you find McDonald’s value for money? Problems faced in the visits to McDonald’s? Suggestions to improve McDonald’s? Unique selling promotion in McDonald’s?

SUCCESS STORY

After analyzing Marketing mix Mc Donald applied “Think Global, act local” policy which is the main reason for their success in India.

The Profits as compared with 2004, in 2010 got doubled

More than 200 outlets established in India Planned for more outlets and diversification by

implementing breakfast items and new menu like McAloo tikka etc.