McDonald’s growth in india

8/3/2019 McDonalds growth in india

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McDonald's in India: growth

strategy


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Introduction Leading global food service retailer with more

than 30000 restaurants in more than 119countries .

One of the worlds most well known and valuedbrands and holds a leading share in the globallybranded quick service restaurant segment.


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Back ground and Evolution In 1955 Ray Kroc ,a 52 year old sales man of milk

shake machine became interested in string ofseven restaurants owned by Richard andMaurice McDonald.

Kroc liked their fast food restaurant concept andbought the chain for $2.7 million


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1955:first McDonald restaurant opened. Firstdays sale $366

1957:quality , service ,cleanliness & value(QSC&V) became the companys motto

1960:an indication of competition comes:Dominos takes its first telephonic order to delivera pizza

1962:Taco Bells first outlet opens in Downey,California. Two years later , the chain starts itsfranchising unit.


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1963: Ronald McDonald makes his debut asspokesclown .during the year the company alsosell its billionth burger

1965: McDonald goes public (wall street)at$22.50 a share

1967: McDonalds goes international. the firstrestaurant outside the us opens in Canada.


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1975:the first drive- drive through window isopened in Sierra Vista, Arizona.

1979: McDonalds introduced happy meals inresponse to the market demand a burger ,somefries , a soda and a toy.

1989: McDonalds is listed on the Frankfurt,Munich,Paris and Tokyo and stock exchanges.


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1991: McDonalds introduce the low fat McleanDeluxe Burger for healthier foods. It flops and iswithdrawn from the market

1996: McDonald comes to India(Delhi)

2002:McDonaldys posts its first ever (quarterly)loss of $344

2004,2005,2007:opens its restaurant in cities like

Faridabad, Kolkata


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General business strategy andgrowth

In the introductory stage McDonalds focused onfollowing a generic low cost strategy

As the competition increased they focused onproduct differentiation and quality.

McDonalds h.r strategy promotes its desire tomarket an exceptional customerservice.(hospitality ,training & e-learning forrestaurant staffs)


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Production strategy promote to overall qualityexperience by offering new products to customersin order to address growing changes in demandfor healthier foods & premium products.

Technological improvement, including wirelesshot spots, improves the relevance of the overallquality experience McDonalds is trying to marketto consumers.


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Modes of international business Franchising for existing restaurants or new

restaurants

Company owned and joint venture


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India entry stage In India McDonalds have followed bothjv(for

north and west India) & also licensing(for south)

In Mumbai ,Amit Jatias hardcastle restaurants pvtltd was selected to own & manage McDonaldsrestaurants in the western region .

In Delhi ,Vikram Bakshis connaught plazarestaurants pvt. Ltd was chosen to own andmanage McDonalds restaurants in the northernregion.

For McDonalds venture in Bengaluru , thelicensee route is followed for the first time in India


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RISK ANALYSIS Diverse population & food habits. Cultural & religious sensitivity.

Most Indians consider home food as fresh,healthy & inexpensive.

Processed & fast food markets have stronggrowth potential.


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OPERATION & STRATEGY They faced two challenges;

1.How to avoid hurting religious sensibilities ofIndian consumers?

2.How to avoid political confrontation with Indiangovernment.

Considering these factors Mc Donald's adopted thephilosophy strategy of think global act global.


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Cont.

Strategy that they adopted were; PRODUCT STRATEGY

PRICING STRATEGY

FAMILY-CENTRIC STRATEGY


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CHALLENGES & FUTUREPLANS One of the most important challenges faced by

Mc Donald is in the area of food processing &distribution.

Therefore they need to develop new food

processing & distribution centres in other cities forboth operational efficiency & cost effectiveness.

Other challenges are also in terms of newcompetition, inflation & changing consumer tastes& preferences.


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Future plans include like

Opening more restaurants in north India in UP,HPPunjab & Chandigarh.

Mc Donald's is focusing on high quality, affordability &

penetration & introducing of new formats including homedelivery.

As a part of expansion strategy, Mc Donald's is goingplaces to localize its products.

The companys future expansion will have localizationor indigenization as he driving force.


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SWOT analysis STRENGTH QSC&V

Cultural & religious sensitivity

joint venture & licensing

Leading global food service retailer with morethan 30000 restaurants in more than 119countries


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WEAKNESS Their test marketing for pizza failed to yield a

substantial product. Leaving them much less able tocompete with fast food pizza chains.

High employee turnover in their restaurants leads tomore money being spent on training.

OPPORTUNITY

In 2008 the business directed efforts at the breakfast,chicken, beverage and convenience categories. For

example, hot specialist coffees not only secure sales,but also mean that restaurants get increasingnumbers of customer visits. In 2009 McDonald's sawthe full benefits of a venture into beverages


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THREATS Major competitors, like Burger King, Starbucks,

Taco Bell, Wendy's, KFC and any mid-range sit-down restaurants.


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Thank u

McDonald’s growth in india

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