Introduction McDonald's is an American fast food company, founded in 1940 as a restaurant operated by Richard and Maurice McDonald, in San Bernardino, California, United States. In 1955, Ray Kroc, a businessman, joined the company as a franchise agent and proceeded to purchase the chain from the McDonald brothers. McDonald's is the world's largest restaurant chain by revenue, serving over 69 million customers daily in over 100 countries across approximately 36,900 outlets as of 2016.

1. Ajeenkya D Y Patil University
(school of management)
McDonald’s
A presentation on
Company International Market Entry Strategy
BACHELOR OF BUSINESS ADMINISTRATION (International Business)
Subject- International Marketing
SEMESTER- VI
By Mansi Deokar
Submitted To
Prof. Atul R Kadam

2. Introduction
• McDonald's is an American fast food company, founded in 1940 as a restaurant operated by Richard and
Maurice McDonald, in San Bernardino, California, United States.
• In 1955, Ray Kroc, a businessman, joined the company as a franchise agent and proceeded to purchase the
chain from the McDonald brothers.
• McDonald's is the world's largest restaurant chain by revenue, serving over 69 million customers daily in over
100 countries across approximately 36,900 outlets as of 2016.

3. Opportunities in India
• India had a population of 181 million between 1991 and 2001.
• Most high income Indians prefer to live the urban areas.
• A majority of wealthy urban Indian consumers live in the most populated and cosmopolitan cities in India
• High income group of consumers are seeking variety in their choice of foods and are willing to spend more in
international cuisine including fast foods.

4. McDonald's India entry strategy
• In 1993 McDonald’s entered India through a 100% subsidiary MIPL
(McDonald’s India Private Limited)
which formed two 50:50 joint ventures (JV) with
Vikram Bakshi of Connaught Plaza Restaurants to manage North and East India; and
Amit Jatia of Hardcastle Restaurants for West and South India.
• The staff was trained in India, US and
Indonesia to understand the intricacies of business

5. The launch
• The first restaurant opened in Vasant Vihar in New Delhi in October 1996 and soon Mumbai
operations also started.
Initially McDonald’s targeted Delhi and Mumbai only, as these areas
had high populations of their target groups, were areas of higher incomes and were exposed to
western culture.
• The second phase targeted expansion into proximal towns like Pune and
Gurgaon.
• while the third phase involved key tourist destinations like Agra and Jaipur.
• Phase four targeted malls, multiplexes, highways, stations and airports.

6. Challenges
• India had a large eating out market with an increasing propensity to spend by customers to taste the American
fast food but it could not be a substitute for Indian food.
• One aspect to India was that half of its population was vegetarian for whom a separate menu had to be created.
• As McDonald's is a foreign company people were not sure about their cleanliness standards followed in the
preparation of food.

7. Strategies to overcome the challenges
• A restaurant management system (RMS) was created for efficient management of the operations.
• Separate food lines were maintained throughout the various stages of procurement, cooking and serving.
• Separate kitchens for vegetarians and nonvegetarian food were created in the restaurants with different
uniforms for the kitchen staff.
• Separate areas for preparation and wrapping were created.
• The vegetarian menu was printed in green and the non vegetarian menu was created in purple to clearly
distinguish the menu.
• Customers were taken on kitchen tours to build their confidence, since the hardcore vegetarians usually did
not prefer to enter places where non-vegetarian food was served.

8. Current market position
Burger and fries chain McDonald’s India posted its biggest ever loss of Rs 305 crore in the year to March 2017
after writing off investments in licensee partner Connaught Plaza Restaurants (CPRL) due to a five-year old
legal dispute with the latter.
McDonald’s India’s northern & eastern business is operated by estranged partner Vikram Bakshi, also
managing director of CPRL.

9. Thank you