McDonald Adaptation in India

Presented by:Gaurav Aitwani

Rhea Nayyar

Rohit Chaudhary

Shubham Mittal

Trishala Gautam

Overview

Introduction

History

Indian market

Initial challenges

Understanding Indian Custom

Major competitors

Supply chain and Cold Chain

Localization strategy

Marketing mix

Conclusion

Presentation outlay

The article discusses about how McDonald’s India

managed to up the trend in a struggling economy, its

early years and business strategy to get more out of its

stores in India. The article also briefly discusses how

McDonald’s adapted to local culture in India, its

localization and entry strategy, its strong supply chain

and pricing strategy

Overview

Founded: 1940 in United states

CEO: Steve Easterbrook

McDonald’s was initially a barbeque restaurant

operated by Richard and Maurice McDonald

Later on businessman Ray kroc joined the

company as a franchise agent in 1955, he

subsequently purchased the chain from the

McDonald brothers.

McDonald’s primarily sells hamburgers,

cheeseburgers, chicken, french fries,

smoothies, cold drinks, milk shakes, etc.

Introduction

About MC

Donald

Year Events

1996 •First McDonald‘s restaurant opened on Oct. 13, at Basant Lok in New

Delhi.

•First McDonald‘s restaurant in the world to not serve beef and pork

based products.

1997 Thru restaurant at Noida (UP)

First disabled friendly store at Noida (UP),

1999 First Mall location restaurant at Ansal Plaza (New Delhi)

2000 First highway restaurant at Mathura (UP)

2002 The first restaurant at the Delhi Metro Station

2004 McDonald's Delivery Service (McDelivery) introduced in New Delhi

2006 100 McDonald's Restaurant opens in India10th Year Anniversary

2008 First 24 hours McDonald's Restaurant opens at Old Delhi Railway

Station

2013 McDonald's™ Celebrates National Breakfast Day

History

Indian Market( early challenges)

• To Change Indian consumers perception

• Pricing

• Vegetarianism

• Competition from local food retailers

To enter a market where consuming beef is “off limits”

was very challenging and ambitious.

McDonald’s objective was to be inspired by the culture

of India and to deliver the greatest of food experiences

to the customers in India bringing in the splice of life.

They were aiming for to change the local perception of

the new product being “American” and remove the fear

of unknown, where family “dining in” was a custom for

centuries.

Initial Challenges

McDonald’s entry into India was met with stiff

opposition. Members of the Hindu organization, the

Bajrang Dal,

The biggest problem McDonald faced was during the

launch of its product in India was the public image it

was carrying as an International food chain and not

matching Indian standards.

Cont...

Offering the cheapest burger in the world was not easy.

In India, McDonald’s offered a menu that did not had

any beef or pork items as well as special product

formulations for accommodating Indian culture and

palate.

Additions to the menu have been a regular feature of

McDonald’s in India.

The company in India conducted regular qualitative as

well as quantitative studies, which tracked the target

consumer lifestyle in India.

Understanding Indian Customs

Major Competitors

Burger king Subway Pizza Hut

The company’s menu

includes breakfast,

lunch and dinner items

available a la carte.

Hamburgers, chicken

sandwiches, chicken

tenders, French fries

and beverages are

categories featured on

the menu. Burger King

recorded over $1

billion in revenue

during 2014

The company’s menu

consists primarily of

submarine

sandwiches and

salads. Subway

reported 2014 sales of

$11.9 billion in the

U.S. alone.

Pizza Hut is split into

several different

restaurant formats: the

original family-style

dine-in locations;

storefront delivery and

carry-out locations;

and hybrid locations

that have carry-out,

delivery, and dine-in

options

• In commerce supply chain management (scm) the

management of the flow of goods and services.

• It involves the movement and storage of raw materials,

wip, inventory and finished goods from point of origin

to point of consumption.

• Interconnected or interlinked networks, channels and

node of businesses combine in the provision of products

and services required by end customers in a supply

chain.

Concept Of Supply Chain Management

Supply

Chain

Concept

Suppliers

Company

Franchisees

Supply Chain

MC Donald Supply Chain is based on three-legged stool concept:

McDonalds spent a few years setting up a

unique cold chain.

The cold chain is necessary to maintain

the integrity of food products and retain

their freshness and nutritional value.

Cold Chain

Process of Supply Chain Management

PROCUREMENT

WAREHOUSING

TRANSPORTATION

RETAILING

Localization refers to firstly understand the local market

of any country before starting any business than to plan

our product and services to be served according to the

need of that particular market.

As every country has different types of peoples lives in

and need and demand of food and an other service of

every business organization has to serve according to

the need of that particular market.

Localization Strategy

McDonald’s Localization Strategies

LOCALIZATION STRATEGIES

INDIANIZED MENU

LOW PRICESSET UP FAMILY RESTURENTS

Cont....

Marketing Mix

Deserts

Cont...

their

Cont..

Cont...

Cont...

• McDonald’s recognized the unique problems and opportunities of the Indian market. The company then took its time, adapting its products and just as importantly its corporate strategy, and has been hugely successful since.

• At the same time, the company cannot afford to become complacent and rest on its laurels. Any future missteps, however small, could ruin McDonald’s efforts and hard fought gains in the country, allowing the company’s rivals to catapult past them and onto even greater success.

• In order to sustain in a very competitive market McDonald’s has to continuously think of bringing in new concepts into all its operations especially in marketing.

• The result of a spontaneous thought led to the introduction of breakfast outlets and a chance encounter with a technology specialist ended up with online booking orders and birthday parties and signature outlets.

• The success of McDonalds in India could be measured by its continuous growth in Indian fast-food market with 210 branches across India

Conclusion