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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 billions

Vision:
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,Namk
  eens, 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 restaurant
  experience - supported by principles and core
  values
 Entered in 1996, 50:50 Joint Venture with
  ConnaughtPlaza Restaurants-Vikram Bakshi- North
  &Hardcastle Restaurants-Amit Jatia- West
 Trained extensively, along with their Indian
  management 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 cities
Phase I- Focus on cities of relatively high incomes
where citizens are exposed to western food & culture
Phase II- Move to smaller satellite towns (Gurgaon,
Pune)- Positive spillover effect of reputation
Jaipur & Agra- To attract foreign tourists
Phase 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.

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Mc donald’s (2)

  • 1. MCDONALD’S INDIA. By Umapathi 11hm18 NITK,SURATHKAL
  • 2. 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
  • 3. COMPANY PROFILE  Established in 1955, head quarters: Oak Brook, Illinois, U.S.  Presence in 119 countries  Revenue: $24 billions Vision: McDonald's complete commitment to Quality, Service, Cleanliness and Value (QSC&V)
  • 4. 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,Namk eens, Pizza  Organised chains- Narula‟s, Wimpys, Udipis
  • 5. CONTINUE…  20 major languages, 800+ dialects  50% population literate  Advertising-Billboards, Print , Electronic  8 languages for National launch
  • 6. INDIA VISION & ENTRY  To be India‟s "best" quick service restaurant experience - supported by principles and core values  Entered in 1996, 50:50 Joint Venture with ConnaughtPlaza Restaurants-Vikram Bakshi- North &Hardcastle Restaurants-Amit Jatia- West  Trained extensively, along with their Indian management team, in McDonald's in Indonesia and the US before launch  Always been a franchising Company
  • 7. 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
  • 8. 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
  • 9. 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
  • 10. 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.
  • 11. TARGETING MARKETS  Kids & The Young family (<30 years)  Only < 10% population-possible target market  Concentrate on metros, then open branches in other cities Phase I- Focus on cities of relatively high incomes where citizens are exposed to western food & culture Phase II- Move to smaller satellite towns (Gurgaon, Pune)- Positive spillover effect of reputation Jaipur & Agra- To attract foreign tourists Phase III- Malls, Multiplexes, Highways, Stations & Airports
  • 12. 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
  • 13. 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?
  • 14. 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.