MCD vs Burgerking


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mcd is a strong brand but still it need new strategies to be in indian bussiness and burger king failed twicely n entered again in indian market

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MCD vs Burgerking

  1. 1. Prepared for <br />Mr. john tan<br />Prepared by:<br />InderjitKaur 20110142<br />MonaliBarot20110143<br />PranayLokre 20110854<br />Udita Sood 20101401<br />
  2. 2. Some Facts about fast growing Indian economy<br />The world's 10th largest in terms of nominal GDP at $1.53 trillion and the 4th largest in terms of purchasing power parity at $4.06 trillion, according to the International Monetary Fund.<br />The service sector makes up 54 per cent of the GDP, the agricultural sector 28 per cent, and the industrial sector 18 per cent<br />The equity market is 4th largest in Asia and 8th largest in world with capitalization of the companies listed on the BSE stood at $1.63 trillion as of December 2010.<br />Number of 55 billionaires, according to the Forbes 2011  and stands number 3rd in the worlds ranking after USA and china<br /><ul><li> Indian consumer market is world's 13th largest, is expected to become 5th largest by 2030.
  3. 3. India ranks 2nd worldwide in farm output. India is the largest producer and consumer of tea in the world, accounting for more than 30 per cent of global
  4. 4. By 2030, Stan Chart said India will be at number three position with an economy of $30.3 trillion, behind China ($73.5 trillion) and US ($38.2 trillion).
  5. 5. Over half of India's population is below 25 years. By 2020, the average age of an Indian is expected to be 29 years.</li></li></ul><li>Overview of fast food industry in India<br /> With changing needs and lifestyles of consumers, global as well as Indian food consumption patterns are rapidly evolving. Higher disposable incomes have resulted in greater spending and consumption among consumers <br />The Indian fast food market is valued at $1-billion appx. And Sales at fast-food chains are growing at a rate of 28%<br />Major local competitor in snack food are the street selling food like dosa, samosa, bhelpuri etc. but change in demographics, income levels and western influence has given rise to the fast food industry<br />Nirula’s was having monopoly in India initially to introduce pizza and burgers before the western chains arrived in India<br />The major fast food chains operating in India include McDonald's, Dominos, Pizza Hut TGI, Pizza Express, Pizza Corner, Nirulas, Wimpys,andHaldirams and now Burger King.<br />
  6. 6. Mc Donald’s in India <br />Being the world’s biggest food service retailer Mc Donald’s began its operations in India in January 1996 in joint ventures with two Indian restaurateurs Vikram Bakshi and Amit Jatia.<br />It has around 200 family restaurants in India across 60 cities.<br />Mc Donald’s is serving around half a million Indians every day.<br />McDonald’s competes with fast food chains like Pizza Hut, Domino’s Pizza, Papa John’s, Nirula’s and KFC in India<br />.<br /><ul><li> Key strategy is to be affordable to masses which is achieved by its bulk buying, long term vendor contracts and manufacturing efficiencies.
  7. 7. In 2009, mc Donald's India won most preferred multi brand fast food outlets.
  8. 8. Introduction of local taste based vegetarian menus, no beef and pork products are used.
  9. 9. More then 5000 employees.</li></li></ul><li>Burger king in India<br />Burger King Corporation is the second largest fast-food chain in the United States, trailing only McDonald's.<br />Principal Global Competitors : McDonalds Corporation; Wendy's International Inc.; Yum! Brands Inc.<br />Burger King has set up a 51:49 partnership with DLF and operate on a franchisee model in the yr 2007<br />Target customers are primarily the youth and not family restaurant model unlike Mc Donald's.<br />Low cost hamburgers and Additional vegetarian option on the menu is the key for the survival.<br />
  10. 10. PORTER’S FIVE FORCE Threat of entry<br />Positive factors<br />Consumer loyalty.<br />Access to supply.<br />Socialist and swadeshi mindset.<br />Large capital investment.<br />India is 4th largest economy.<br />Economies of scale.<br />Local distributers.<br />Govt. support open trade.<br />Negative factors<br />
  11. 11. Threat of substitutes.<br />Negative factors<br />McDonalds' and Burger king are not substitute for an Indian food. It is just a new option.<br />Indian want a slice of America but only once in a while- traditional eating habits.<br />Dominos, Wimpey's, Nirula offering number of similar food items.<br />
  12. 12. Bargaining power of Buyers<br />Positive factors<br />Negative factors<br />Low switching cost.<br />Vendors and road side stalls are cheap source of food.<br />Ready to eat are available.<br />Concentration of buyers high.<br />High income.<br />
  13. 13. Bargaining power of Suppliers<br />Positive factors<br />Large number of suppliers.<br />Low switching cost.<br />Negative factors<br />Few technology oriented suppliers like cold chain for McDonalds’<br />Available quality is not up to mark.<br />
  14. 14. Competitive rivarly<br />positive factors<br />Negative factors<br />High brand positioning.<br />Entered in an India in joint ventures with an <br /> Indian companies. <br />High cognitive space.<br />Market are un-differentiated .<br />Highly fragmented food market.<br />Millions of road side stalls.<br />Organized chain’s of Nirula, Wimpey's. <br />Indians love spicy food and west food is blunt in taste.<br />
  15. 15. Swot of McDonald’s<br />Strength<br />Great partnership with coca-cola.<br />Global presence.<br />Mantra of QSCV.<br />First to provide nutrition facts to customers.<br />Operational excellence.<br />Innovation by adapting cultural differences.<br />Successful advertisement (I’m loving it)<br />Offering Wi-Fi.<br />Cold chain supply method<br />
  16. 16. Swot of Mc.Donald’s<br />weakness<br />Highemployee turn over.<br />More focus on children.<br />High prices.<br />Lack of innovation products-offering breakfast and festival meals.<br />Management of joint ventures.<br />
  17. 17. Swot of McDonald’s<br />opportunities<br />Giving din-out market for youngsters and adults.<br /> use mobile text messages to offer services.<br />Understand need of society and undergo new product line.<br />Upscale restaurants settings.<br />Provide free parking area. <br />
  18. 18. Swot of McDonald’s<br />threats<br />Local competition.<br />Consider as unhealthy food.<br />Presence of other fast foods.<br />Parents critise their marketing strategy of “cradle to grave”.<br />Foreign currency fluctuations.<br />Living in mature and saturated industry.<br />
  19. 19. Swot of Burger King<br />strength<br /><ul><li>Second largest fast food hamburger industry in the world.
  20. 20. Strong brand equity.
  21. 21. 90% restaurants owned by franchise.
  22. 22. Joint ventures with DLF to overcome real estate cost.
  23. 23. Focus on teens and young men.
  24. 24. Open cooking flame method.
  25. 25. Provide variation in food.</li></li></ul><li> Swot of Burger King<br />weakness<br />Product development.<br />High price.<br />Relies on franchises to execute its brand promise.<br />
  26. 26. Swot of Burger King<br />opportunities<br />New product development –an Indian breakfast snacks.<br />Expansion in emerging market.<br />Healthy food.<br />Target consumer by understanding social needs.<br />
  27. 27. Swot of Burger King<br />threats<br />Health <br />Increasing labor cost.<br />Unable to understand cross culture differences.<br />
  28. 28. PESTEL Analysis for McDonald’s and Burger King for India<br />Political environment<br />Political factor is favorable <br />No trade restrictions for food businesses<br />No minimum wages<br /> No higher taxes <br />Employees Union are defensive<br />
  29. 29. Economic Factor<br />Economic growth is 7% (+)<br />Inflation rate is increasing gradually (-)<br />PESTEL Analysis for McDonald’s and Burger King for India<br />
  30. 30. PESTEL Analysis for McDonald’s and Burger King for India<br />Social factor<br />Second most populous country<br />More than 50% population is under 25<br />Food lovers<br />more nuclear families- working couples<br />Becoming health conscious among the time<br />
  31. 31. PESTEL Analysis for McDonald’s and Burger King for India<br />Technology<br />Increasing technological development<br />R&D development opportunities available<br />
  32. 32. PESTEL Analysis for McDonald’s and Burger King for India<br />Environmental factor<br />Environmental changes affects the diet of the people<br />Global warming turns the choice of food from Non-vegetarian to Vegetarian<br />
  33. 33. PESTEL Analysis for McDonald’s and Burger King for India<br />Legal factor<br />Significant factor for long term stay and for new entrants<br />Competition Law, health and safety law, labor law, employment law<br />Symbol is necessary for vegetarian and non vegetarian food<br />