Practical Application in Public Relations                  Page 1 of 18                                      Table of Cont...
Practical Application in Public Relations                                 Page 2 of 181.0 IntroductionCulture is the most ...
Practical Application in Public Relations                                     Page 3 of 18             o Using Effective C...
Practical Application in Public Relations                                    Page 4 of 18CNN-IBN State of the Nation Surve...
Practical Application in Public Relations                                   Page 5 of 182.2.2 Public PerceptionThe famous ...
Practical Application in Public Relations                                      Page 6 of 18government to overcome the nega...
Practical Application in Public Relations                                     Page 7 of 18income family as its key public....
Practical Application in Public Relations                                    Page 8 of 18McDonalds‟ operations. Therefore,...
Practical Application in Public Relations                                    Page 9 of 18achieve the ultimate goals. These...
Practical Application in Public Relations                                Page 10 of 18businessmen, Amit Jatia and Vikram B...
Practical Application in Public Relations                                  Page 11 of 18Burger is perceived as snack and u...
Practical Application in Public Relations                                Page 12 of 18        3.3 Using Effective Communic...
Practical Application in Public Relations                                Page 13 of 184.0 Phase Three: TacticsAfter develo...
Practical Application in Public Relations                                Page 14 of 18Apart from Corporate Social Responsi...
Practical Application in Public Relations                                Page 15 of 18To strengthen McDelivery service in ...
Practical Application in Public Relations                                  Page 16 of 186.0 Conclusion and Recommendations...
Practical Application in Public Relations                              Page 17 of 18CIA The World Fact Book (1996). India....
Practical Application in Public Relations                             Page 18 of 18MBA Knowledge Base (2010). Case Study: ...
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Analyzing McDonald's PR Strategies in India

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  1. 1. Practical Application in Public Relations Page 1 of 18 Table of Content1.0 Introduction………………………………………………………………………...pg.12.0 Phase 1: Formative Research………………………………………………………pg.2 2.1 Analyzing the Situation…………………………………………………….pg.2 2.2 Analyzing the Organization………………………………………………..pg.3 2.3 Analyzing the Public……………………………………………………….pg.53.0 Phase 2: Strategy…………………………………………………………………...pg.7 3.1 Establishing Goals and Objectives…………………………………………pg.8 3.2 Formulating Actions and Response Strategies…………………………….pg.8 3.3 Using Effective Communication………………………………………….pg.114.0 Phase 3: Tactics…………………………………………………………………...pg.12 4.1 Choosing Communication Tactics………………………………………..pg.12 4.2 Implementing the Strategic Plan………………………………………….pg.135.0 Phase 4: Evaluative Research…………………………………………………….pg.14 5.1 Evaluating the Strategic Plan……………………………………………..pg.146.0 Conclusion and Recommendations……………………………………………….pg.157.0 References………………………………………………………………………...pg.15TONG TIONG VEE APRIL 2012
  2. 2. Practical Application in Public Relations Page 2 of 181.0 IntroductionCulture is the most important issue that needs to be taken concern by internationalcompany. Different countries possess their own culture and lifestyle. This means that thethinking, behavior and attitudes of people are different from places to places. Moreover,the dissimilar rules and legislation in different countries will definitely affectinternational business like McDonalds‟.McDonalds‟ is one of the world leading restaurant chains. It operates more than 30,000restaurants in more than 100 countries on six continents today (Advameg, Inc, 2012).McDonalds‟ was founded in 1940 by two brothers, Dick and Mac. Since the firstfranchise open in 1953, the company continues to expand its business from US to UK,Moscow and China (iloveindia.com, n.d.). McDonalds‟ opened its first restaurant in Delhi,India in 1996 and second restaurant in the financial capital of India, Mumbai. To operatein India that possess exact different culture from US, a creative and effective strategicpublic relations planning is essential for McDonalds‟.According to Ronald D. Smith‟s strategic planning for public relations (PR), effectiveand creative planning is the heart of any PR and related activities. Organization PR planshould be developed according to four phases: Formative research, strategy, tactics andevaluative research. Careful planning allows company to monitor, test and adjust thestrategies according to the situation, which will then increase the percentage of successand reduce the cost. Thus, the purpose of this paper is to analyze McDonalds‟ publicrelations plan in India using Smith‟s “The Nine Steps of Strategic Public Relations”model listed below: Phase One: Formative Research o Analyzing the Situation o Analyzing the Organization o Analyzing the Publics Phase Two: Strategy o Establishing Goals and Objectives o Formulating Actions and Response StrategiesTONG TIONG VEE APRIL 2012
  3. 3. Practical Application in Public Relations Page 3 of 18 o Using Effective Communication Phase Three: Tactics o Choosing Communication Tactics o Implementing the Strategic Plan Phase Four: Evaluative Research o Evaluating the Strategic Plan2.0 Phase One: Formative ResearchTo have an effective public relations plan, organization should first identify what are thepositive and negative circumstances, no matter is internally or externally, which will befaced. In the first phase, organization needs analyze whether the situation is an issuemanagement that under control or crisis management when situation is out of control aswell as organization‟s opportunities and threats. Then, organization needs to do a publicrelations audit, which analyzes the company‟s internal environment, public perception,and external environment in order to figure out the strengths and weaknesses of thecompany. The last step of the formative research is to determine who the organizationpublics are and to study on their characteristics. 2.1 Analyzing the SituationThe first step of Smith‟s strategic planning for public relations is to analyze the situation.The public relations plan to enter the India market is an issue management forMcDonalds‟. McDonalds‟ is able to predict what are the opportunities and obstacles thatthe company will face through doing research on the market. By doing so, McDonalds‟ isable to avoid uncontrollable crisis.By having the world second largest population (Rosenberg, 2011), India undoubtedly isan opportunity for McDonalds‟ to expand their business. The open market for globalcompanies in India had provided a golden chance for McDonalds‟ to enter the market aswell. However, the cow-sacred culture in India had become a threat to McDonalds‟, anUS company which used to serve beef as its major ingredients. Furthermore, India has thehighest vegetarians‟ population in the world (Elizabeth, 2009). According to Hindu-TONG TIONG VEE APRIL 2012
  4. 4. Practical Application in Public Relations Page 4 of 18CNN-IBN State of the Nation Survey (2006), there is 31% of the populations are purevegetarians and another 9% are vegetarians who consume eggs.Hence, as McDonalds‟ are being the world largest user of beefs (Lin, 2012) and beknown for its beef and pork burger (Kaimal, 2009), the amount of vegetarians and India‟scow-sacred culture will definitely bring a big obstacle to the organization. Another threatfor McDonalds‟ is its competitiveness with local restaurants. People there do understandlocal culture and habits better than McDonald‟ do. The variety of food with acceptableprice range has strengthened local restaurants competitive level too. Therefore, theacceptance for American fast-food and to change Indians‟ perception had become achallenge to McDonalds‟. 2.2 Analyzing the OrganizationThe second step is to analyze the internal environment, public perception, and externalenvironment of the organization. McDonalds‟ must be honest to itself in order to clarifythe strengths and weaknesses of the company. In addition, to what extent McDonalds‟ isknown in India and how the public perceived the organization is essential for thecompany. Analysis of India‟s political, economic, social and technology factors as wellas the nature of any rivalry that may exist must be done too.2.2.1 Internal EnvironmentMcDonalds‟ is known for selling consistent, simple, low-priced American food with fastservice (Hassan, 2011). The franchise strategy had led the company to grow extremelyfast while the introduction of Ronald McDonalds had turn its burger into most famousburger. With its strong background, McDonalds‟ is able to make huge investment tosupport any of its plans include necessary researches. Moreover, the company is willingto adapt “glocalization” through changing their strategy according to the culturedifferences. The implementation of McDonalds‟ system also allows the company tocontrol at every stage from procurement to serving. This is to ensure the McDonalds‟philosophy of Quality, Service, Cleanliness and Value (QSCV) is being achieved.Training is provided to all staffs and food safety is taken seriously by the organization.TONG TIONG VEE APRIL 2012
  5. 5. Practical Application in Public Relations Page 5 of 182.2.2 Public PerceptionThe famous of Golden Arches is not working in India. During 1996, when Indians wasawakening to the global call, the Indians perceived western products and services ashigher quality and expensive. Most of the citizens who considered McDonalds‟ as asymbol of American culture had recognize McDonalds‟ as another example of theeverlasting spread of Western companies into different countries or communities, whichis creating a global system that wealth will flowed out from local economies into veryfew and rich aristocracies‟ hands (Kulkarni & Lassar, 2009).2.2.3 External EnvironmentIndia is known to be a country that treats women as inferior to men. Female infants usedto being buried right after they were born and women are living with a very low status inIndia. They don‟t have the rights to study like men do. Thus, the government was tryingto implement equal rights policy to all citizens regardless the gender, race, and religious.The government wanted to provide a minimum standard of living to the citizens; however,these promises have not been fulfilled up to date (Baxi, 1985).Economy factors in India are growing continuously from 419.352 US dollars grossdomestic product based on purchasing-power-parity (PPP) per capita GDP in 1980 to1236.838 US dollars in 1996 (Index Mundi, 2011). This had indicated that Indians‟purchase power are increasing rapidly from year to year plus the open market for globalcompanies in 1996 had become an opportunity for McDonalds‟ to enter this potentialmarket. Nonetheless, entrance of other global companies will become competition forMcDonalds‟.India has the second highest population in the world today. Its population grows from846.3 million in 1991 to 952, 107, 694 million in 1996, which is divided into 34% below15years old, 62% for 15-64 years old, and 4% of 65 years old and above (CIA, 1996). 39-42% of the total population is vegetarians, an alternative to fish, lamb and chicken. Cowis taboo and cannot be served. Meanwhile, the unemployment rate in India stays in anaverage of 7% since its independence (Jha R., 2000). If McDonalds‟ is able to help theTONG TIONG VEE APRIL 2012
  6. 6. Practical Application in Public Relations Page 6 of 18government to overcome the negative circumstances while increase India‟s economymentioned above, government will definitely become a huge supporter for McDonalds‟The demand for fast food is increasing corresponsive to dual-income families in India.Some of the popular snacks in India (Bhelpuri, Vada Pav, Samosas and Pani Puri) hadrevealed that Indians are more concern of the food taste especially spicy taste instead ofthe nutrition due to these snacks has low nutrition. As a result, burger, which had beenperceived as snack in India, can stand a chance to grab consumers‟ attention if the taste issuitable for the Indians.The information technology in India is basically based on the radio, which has the highestrate of audience, television (which is fully under government control), and telephones(CIA, 1996). It‟s an urge for the country to further develop their technologies to meetglobal quality and standard. In this case, entrance of McDonalds‟ has played a role inbringing new technologies to India as well as increase Indians‟ living quality andstandard. 2.3 Analyzing the PublicThe third step is to identify and then analyze who McDonalds‟ public are under the fourcategories of public – customers, producers, enablers, and limiters. The public‟s keycharacteristics and their influences on the company should be come under considerationtoo. Customer is the one who consume McDonalds‟ products or services; no matter it is aprimary or secondary customer. Those who provide input to McDonalds‟ are categorizedunder producers while enablers are those who set norms or standard to the organization.Finally, limiters are those who might reduce or undermine McDonalds‟ success.2.3.1 CustomersPrice sensitivity is still critical in India although the purchase power in India had risen; asa result, McDonalds‟ need to select specific markets to target. Researches indicated thatchildren have the power to influence parents‟ buying process (Mangleburg & Tech, 1990).McDonalds‟ had noticed on this new phenomenon and decided to set children in dual-TONG TIONG VEE APRIL 2012
  7. 7. Practical Application in Public Relations Page 7 of 18income family as its key public. McDonalds‟ may introduce children‟s menus or offerfree toys to target on the children. If the company is able to attract the children attention,parents will automatically be influence and then become McDonalds‟ customers.Furthermore, the influences of American culture brought to Indian youngsters had createdanother target market for McDonalds‟. Parents who need to relax after working for a dayis one of McDonalds‟ consumers‟ markets. Automobile driving consumers, cinema andshopping mall lovers, and middle-class Indians are McDonalds‟ potential consumers.McDonalds‟ can offer McDelivery services to those tired parents and open its outlet inshopping complex and petrol stations.2.3.2 ProducersMcDonalds‟ employees in India itself are one of the producers who will bring benefits tothe company due to their engagement and performance will directly influence consumers‟perception on the company. McDonalds‟ should provide high class training to theemployees so that they have the appropriate qualification to perform better in operationand in service quality.Alternatively, the relationships with suppliers and distributors of McDonalds‟ in India,which include Trikaya Ariculture (supplier of Iceberg Lettuce), Vista Process Foods PvtLtd (supplier of chicken and vegetable products), Dynamix Diary (supplier of cheese),Amrit Food (supplier of long life UHT Milk and milk products for frozen desserts),Radhakrishna Foodland (distribution center) and Lamb Weston (potato farming), willdetermine whether McDonalds‟ could achieve its philosophy of QSCV and its objectiveto minimize the production costs. Through giving exclusive products supplier authoritiesthat bring huge profits to these suppliers and distributors might enhance their loyalty toMcDonalds‟.2.3.3 EnablersIndia‟s government who set the rules and regulations become one of the public that needto be taken concern by McDonalds‟. Any changes of the government policies can affectTONG TIONG VEE APRIL 2012
  8. 8. Practical Application in Public Relations Page 8 of 18McDonalds‟ operations. Therefore, McDonalds‟ should pay more attention on itsrelationships with India‟s government. In addition to that, the benefits of the joint-venturepartnership with two Indian businessmen, Amit Jatia and Vikram Bakshi need to be takeninto consideration by McDonalds‟ in order to get win-win situation. Other partnershipswith BPCL (Bharat Petroleum Corporation Limited), HPCL (Hindustan PetroleumCorporation Limited), railway stations and bus stations will add values to both parties too.Media in India, on the other hand, has the power to shape public perception and helpMcDonalds‟ to success; Hence, McDonalds‟ need to put more effort in buildingrelationship with the media and create positive newsworthy for media to report. Thepower of word of mouth (WOM) created by existing customers can affect other potentialconsumers to visit McDonalds too. McDonalds‟ should provide great experience to thecustomers so that they will influence person around them to visit McDonalds‟.Vegetarians, health and nutrition, animal welfare and environment campaigners are theopinion leaders of their fans. They are able to influence public opinion and indirectlyaffect McDonalds‟ successfulness. McDonalds‟ should carefully plan for campaignswhich are able to show these campaigners that McDonalds‟ does care on their concern.2.3.4 LimitersLocal restaurants are the main competitors of McDonalds‟. McDonalds‟ needs to workhard to gain more market share consequently due to local restaurants understand localeating habits, taste and culture more than McDonalds‟ do. Therefore, the joint-venturestrategy with local businessmen is a good decision for McDonalds‟. Food and beveragesindustries in India, no matter local or international, will become competitors andopponents of McDonalds‟. Media and the activists, in contrast, can ruin McDonalds‟business as well when McDonalds‟ is unable to stay in step with them.3.0 Phase Two: StrategyAfter gathering the data needed, clear and inspire goals are essential to further establishrelevant public relations tactics and strategies. Different objectives to target differentpublics as well as to know what to achieve in a specific time need to be set in order toTONG TIONG VEE APRIL 2012
  9. 9. Practical Application in Public Relations Page 9 of 18achieve the ultimate goals. These goals and objectives determine what strategies andtactics should be taken without increase unnecessary cost. 3.1 Establishing Goals and ObjectivesThe fourth step of the strategic planning is to set challengeable goals and objectives forthe organization. However, McDonalds‟ India is operating according to its vision andQSCV philosophy which is different from what Smith stated. If McDonalds‟ India didcreate particular goals and objectives that need to be accomplish, it may be able to carryout better strategies and to know to what extent the company had been.McDonalds‟ vision in India is to be India‟s best quick service restaurant experience.Instead of Golden Arches which seems nothing to Indians, McDonalds‟ wanted toposition itself as a family restaurant. This vision is supported by Mcdonalds‟ philosophyof QSCV as well as its values which are listed as below (H.R.P.L., 2010): Place customers experience at the core of what the organization do Are committed to its people Believe in McDonalds‟ system Operate business ethically Give back to the communities Grow the business profitably Strive continually to improve 3.2 Formulating Actions and Response StrategiesIn the fifth step, organization is going to determine what actions and response strategiesshould be taken in order to achieve company‟s goals and objectives. McDonalds‟ India isdoing quite well in formulating actions and response strategies. The company engages inboth pro-active and re-active strategies according to the changes of situation.First, McDonalds‟ had taken pre-emptive action strategy by predicting the using of beefwill become an important issue in India. Thus, the organization used alliances andcoalitions strategy through involving in joint-ventures partnership with two IndianTONG TIONG VEE APRIL 2012
  10. 10. Practical Application in Public Relations Page 10 of 18businessmen, Amit Jatia and Vikram Bakshi, one year before they open their firstMcDonalds‟ restaurant there to inform local people that McDonalds‟ India is running byIndians who know their culture better. These businessmen help McDonalds‟ to operateMcDonalds‟ in India while in exchange; McDonalds‟ provide management trained fortheir management team in McDonalds‟ restaurant in Indonesia and USA.Moreover, McDonalds‟ is willing to adapt on the different culture of India usingorganizational performance strategy. McDonalds‟ decided to change their ingredientsaccording to India‟s culture by abandoning beef and pork at all and implement newvegetarian menus. McDonalds‟ introduced McAloo Tikki ™ and McVeggies ™, whichare totally made by vegetarians‟ ingredients, especially for the vegetarians. Chicken,lamb and fish is added to the options for non-vegetarians in order to replace beef or porkin the menus.McDonalds‟ separated both vegetarians and non-vegetarians cooking and serving processwith a transparent kitchen. Consumers could see its whole operations and staffs who areworking with vegetarians‟ food will wear green aprons. These moves are to convince thevegetarians that McDonalds‟ do really care about their “Shudh Shakahari Experience” –pure vegetarians‟ experience.On the contrary, when animal welfare and environment campaigners critic McDonalds‟for not treating the animal nicely during the slaughter process and making theenvironment condition worse, McDonalds‟ invest fortune on promoting itself asenvironment friendly corporation through using recycle materials for packaging,implementing various campaigns and sponsorships. In addition to that, halfadvertisements of the radio, television, print and internet were focus on promoting “go-green”, healthy products and lifestyle to counterattack the critics on McDonalds‟. At thesame time, McDonalds‟ used defensive response strategy through arguing that thetreatment to the animals is comes under law, which should be the concern of thegovernment.TONG TIONG VEE APRIL 2012
  11. 11. Practical Application in Public Relations Page 11 of 18Burger is perceived as snack and unhealthy food in India. To overcome thesecircumstances, McDonalds‟ is the first fast-food company that introduces nutritionalinformation to the consumers. This is to set McDonalds‟ image that it concern onconsumers‟ health, unlike what the activists said. McDonalds‟ also engage in donationsand fund raising campaign to help local children and raise women status in India to buildtheir reputation and image.To implement McDonalds‟ QSCV philosophy, McDonalds‟ in India spent few years andmoney in setting up a successful supply chain by bringing McDonalds‟ system from US.Indians‟ suppliers supply more than 96% products and materials to McDonalds‟. Then, tomaintain freshness and nutrition value of foods, cold chain had been established. Processfrom cold chain system until reach the customers is under examination of McDonalds‟Quality Inspection Program (QIP) to ensure that all products are in perfect condition.McDonalds‟ defend itself by telling the Indian public that McDonalds‟ is different fromother western companies. McDonalds‟ contribute their profits into local communitythrough the CSR and CSV programs. Employing local citizens and purchase from localsuppliers help stimulate local economy and provide opportunity for them to grow. OtherCSR programs such as raising funds for children, running campaign to raise womenstatus in India, and sponsor quite a large amount of money to the schools are used tocreate newsworthy information.To enter the small cities in India, McDonalds‟ decided to decrease their selling price, thishad successfully increase 25% of customers. Later, partnership with BPCL (BharatPetroleum Corporation Limited) and HPCL (Hindustan Petroleum Corporation Limited)targeting on automobile driving consumers and partnership with railway stations and busstations to target potential middle-class Indians had become a strategy used byMcDonalds‟ to expand its business. To target cinema and shopping complex lovers,outlets had been set up.TONG TIONG VEE APRIL 2012
  12. 12. Practical Application in Public Relations Page 12 of 18 3.3 Using Effective CommunicationThe sixth step is to analyze how the organization is able to stand out from otherorganizations‟ messages whether using information, persuasion or dialogue ascommunication approach.In choosing the communication approach, McDonalds‟ is focus on persuasivecommunication, which includes ethos, logos and pathos message appeals, using familywhich has children as spokesperson. When McDonalds‟ first enter the India market, itpositioned itself as a family restaurant with as slogan of “McDonalds mein hain kuchbaat”, which mean “there‟s definitely something about McDonalds‟ to motivate andencourage people to visit McDonalds‟ for the first time. McDonalds‟ advertisements wereshowed in story-lines which focus on emotions to portray itself as a place that providesfull satisfaction and excitement experience to families which have kids and youngsters.Families had been used as spokesperson in the advertisements.Nonverbal communications such as play areas and Happy Meals with toys are providedto the children so that parents could relax and enjoy their eating time in McDonalds. Thechildren friendly environment with lower counters, rounded table (to avoid childrengetting hurt) and children menus were so attractive to the children. Different flavors ofice-cream were established to fulfill on the youngsters curiosity.Meanwhile, birthday parties and latest pop-music hits were available to tackle India‟snew generation of jean-clad „Americanized‟ teenagers. After the public get to know whatMcDonalds‟ is, McDonalds‟ changed it slogan to ““Toh aaj McDonalds ho jaye" (“Let itbe McDonald‟s for today”), which support everyday experience to continue positioningMcDonalds‟ as a families‟ comfort zone. McDonalds‟ believe that advertising and WOMwill help in promoting McDonalds‟.TONG TIONG VEE APRIL 2012
  13. 13. Practical Application in Public Relations Page 13 of 184.0 Phase Three: TacticsAfter developing the strategies, organization is now going to determine how tocommunicate with its audience through different communication tactics and to set thebudget and timeline to implement the strategies effectively. 4.1 Choosing Communication TacticsIn the seventh step, organization needs to choose the efficient communication tools andtactics that can be used by the company to spread the messages. These mediacommunication tactics are put into four categories by Smith which are interpersonalcommunication, organizational media, news media and advertising and promotionalmedia.During 1996, internet was not well-establish in India yet. McDonalds‟ communicationtactics are mainly based on outlet design, new store opening and public relations writingskills in emphasizing McDonalds‟ attempts to tailor menu according to Indian taste andculture until 2000 (Chaturvedi, 2008). When McDonalds‟ had gained the neededexplosion and ready to advertise by 2000, news media such as television and radio hadbeen used as communication tools. McDonalds‟ found out advertisements with graphicsand audio that using kids and emotional appeals to display family ties and fun atMcDonalds‟ are easier to capture Indians‟ psychological emotion.On the other hand, McDonalds‟ Happy Meals with Lego toys and promotional schemesin schools or figures of Ronald McDonalds‟ were used to attract the lobbyist of onefamily – children. McDonalds‟ implemented interpersonal communication targeted onchildren to build its reputation and brand image in India. They organized interschool artscompetition and raise funds for charity on World Children‟s Day. They also supportededucational programs for girl-child and promote goodwill to improve women status inIndia, which is known as “Blue Dot”. In November 2006, McDonalds‟ India runs acampaign of “Each One Contribute One” for the vision correction for needy children.TONG TIONG VEE APRIL 2012
  14. 14. Practical Application in Public Relations Page 14 of 18Apart from Corporate Social Responsibility (CSR), McDonalds‟ also engage in CreatingShared Value (CSV). The establishment of McDonalds‟ India had provided a hugenumbers of employment opportunities as well as long-term career to local peopleespecially the youngsters. Each franchise of McDonalds‟ employ average of 50 staffsincludes managers. Besides, the McDonalds‟ potato farming in Gujarat had brought manybenefits to the farmers while driving the development of India‟s economy. McDonalds‟also implement „Litter Patrols‟ where employees will clean up the garbage that marketleft behind every day to ensure a cleaner neighborhood. 4.2 Implementing the Strategic PlanTo implement the communication tactics and strategies developed before, organizationshould plan for the budget and timeline in this step. Organization should calculate thebreakeven point in the end of this step too.Six years before McDonalds‟ entered India, the company and its international suppliershad collaborated with local companies to establish products and supply chains that couldmeet McDonalds‟ food quality demand as well as minimize the operating costs (Dash,2005). McDonalds‟ even imported its food processing technologies from US to India toimprove India technology ability.McDonalds‟ first targeted on urban cities in India. The company invested Rs 100 cocrefor the expansion in New Eastern Region of India. After gaining the acceptance of localcitizens, McDonalds‟ decided to expand its market to small India cities. Next,McDonalds‟ had signed it partnership with petrol stations and shopping malls to target onautomobile drivers and young lovers.Since its first Indian restaurant in 1996, McDonalds‟ had invested Rs 450 crore in itsoperations out of its total planned investment of Rs 850 for 11 years (MBA KnowledgeBase, 2010). Reports disclosed that McDonalds‟ had spent Rs 10 crore in June 2000, Rs20 crore in 2001, Rs 18 crore in 2002, and Rs 24 crore in 2003 for its advertising andpromotional campaigns (Rangnekar, 2008).TONG TIONG VEE APRIL 2012
  15. 15. Practical Application in Public Relations Page 15 of 18To strengthen McDelivery service in India, McDonalds‟ had further invested Rs 3 crorefrom March 2007 to March 2010 with the launching of home delivery number (Kulkarni& Lassar, 2009). Furthermore, to continuously increase McDonalds‟ reputation andbrand image, the company is celebrating Children‟s week every year from November 14to 20. McDonalds‟ also organized interschool arts competition annually and daily fundraising for charities.5.0 Phase Four: Evaluative ResearchThe final phase of Smith‟s strategic planning for PR comes back to research again. Awell doing evaluative research is important to an organization in order to increase theeffectiveness of public relations and marketing communications while prestige the role ofpublic relations in an organization. 5.1 Evaluating the Strategic PlanThe last step of Smith‟s strategic planning for PR is to evaluate the performance of thestrategic plan. The purpose for this evaluation is to know whether the goals andobjectives set in the very beginning being achieved or not. It is also to know if thecompany is starting on the right foot.By lower down the selling price when McDonalds‟ tried to enter India small cities, it hassuccessfully increase 25% of customers. Additionally, with the establishment of localsupply chain and local farming, McDonalds‟ announced that its operations had come intobreak even and had expanded its business to 80 outlets in December 2003 even thoughMcDonalds‟ had slowed down in its worldwide expansion.In 2006, McDonalds‟ India has effectively expanded its business around 100 restaurants.At the same time, India had been identified as McDonalds‟ top 10 markets. EachMcDonalds‟ outlet employed an average of 50 employees over a total of 5000 employees.Nowadays, McDonalds‟ India has the largest sales volume and highest brand recognitionamong other restaurants (includes KFC) in India (Thorn, 2011).TONG TIONG VEE APRIL 2012
  16. 16. Practical Application in Public Relations Page 16 of 186.0 Conclusion and RecommendationsAccording to Smith‟s strategic planning for public relations, to success in public relationsplan, organization must follow the Smith‟s model and each phase and steps should betaken seriously due to they are correlated. After analyzing McDonalds‟ PR plan in India,I would like to conclude that McDonalds‟ did follow the four phases and nine steps ofSmith‟s PR strategic planning. Each phase and step had been analyzed clearly. Theadequate strategic communication and public relations strategies implementedMcDonalds‟ had finally lead McDonalds‟ to become the largest and most recognizablebrand in India.Nevertheless, McDonalds‟ should set goals and objectives to guide them “where to go”and “how to go”. It is believed that through setting clear and inspires goals and objectives;McDonalds‟ is able to go further. Furthermore, the defensive strategy in denying thetreatment to chickens is not McDonalds‟ fault is not a good strategy for me. Public willcontinue to perceive McDonalds‟ as irresponsible to this issue. Hence, McDonalds‟should turn this obstacle into opportunity through transparent communication. Increasethe public understanding on how McDonalds‟ treat those chickens before they were killedand show the public that McDonalds‟ concern on what the public want. This might beachieving by inviting the media to interview McDonalds‟ plant and farms. This strategymay change the negative perception of the public into positive when they knowMcDonalds‟ actually do care on the rights of animals too.7.0 ReferencesAdvamerg, Inc. (2012). McDonalds‟ Corporation – Company Profile, Information,Business Description, History, Background Information on McDonalds‟ Corporation.Retrieved March 20, 2012, fromhttp://www.referenceforbusiness.com/history2/56/McDonald-s-Corporation.htmlBaxi, Upendra (1985). Taking Suffering Seriously: Social Action Litigation in theSupreme Court of India. Third World Legal Studies, 4(1), 107-132.Chaturvedi Preeti (2008). Super localized me, How McDonalds’ evolved its marketing inIndia. WARC.TONG TIONG VEE APRIL 2012
  17. 17. Practical Application in Public Relations Page 17 of 18CIA The World Fact Book (1996). India. Retrieved March 20, 2012, fromhttp://www.umsl.edu/services/govdocs/wofact96/121.htmDash Kishore (2005). McDonalds‟ in India. Thunderbird, The Garvin School ofInternational Management, 1-25.Elizabeth (2009). 10 Best Countries for Vegetarian and Vegan Travel. Retrieved March20, 2012, from http://gogreentravelgreen.com/green-restaurant-food/10-best-countries-for-vegetarian-or-vegan-travel/Hassan Tauqeer (2011). A Short History of McDonalds. Retrieved March 20, 2012, fromhttp://www.fastfood.com/fast-food-chains/a-short-history-of-mcdonalds/Hindu-CNN-IBN State of the Nation Survey (2006). The food habits of a nation.Retrieved March 20, 2012, fromhttp://hindu.com/2006/08/14/stories/2006081403771200.htmH.R.P.L. (2010). McDonalds‟ India – Our Values. Retrieved March 20, 2012, fromhttp://www.mcdonaldsindia.com/aboutus/our-values.htmlILoveIndia.com (n.d.). History of McDonalds‟. Retrieved March 20, 2012, fromhttp://lifestyle.iloveindia.com/lounge/history-of-mcdonalds-1806.htmlIndex Mundi (2011). India GDP - per capita (PPP). Retrieved March 20, 2012, fromhttp://www.indexmundi.com/india/gdp_per_capita_%28ppp%29.htmlJha Raghbendra (2000). Reducing Poverty and Inequality in India: Has LiberalizationHelped?, WIDER Working Paper, 204, UNU/WIDER: Helsinki.Kaimal Sreejit (2009). A study of the Marketing Strategies of McDonald‟s with specialreference to Indore. Retrieved March 20, 2012, fromhttp://www.todaydocs.com/index.php?m=url&type=doc&url=http%3A%2F%2Fwww.managementparadise.com%2Fuploads_blog%2F179000%2F178025%2F0_9788.doc&title=0_9788Kulkarni Smita and Lassar Walfried (2009). McDonalds‟ Ongoing Marketing Challenge:Social Perception in India. Online Journal of International Case Analysis, 1(2).Lin Doris (2012). McDonalds‟ and Animal Rights. Retrieved March 20, 2012, fromhttp://animalrights.about.com/od/companies/a/McDonaldsAnimal.htmMangleburg T.F. and Virginia Tech (1990). CHILDRENS INFLUENCE INPURCHASE DECISIONS: A REVIEW AND CRITIQUE. Advances in ConsumerResearch, 17, 813-825.TONG TIONG VEE APRIL 2012
  18. 18. Practical Application in Public Relations Page 18 of 18MBA Knowledge Base (2010). Case Study: McDonalds‟ business strategies in India.Retrieved March 21, 2012, from http://www.mbaknol.com/management-case-studies/case-study-mcdonalds-business-strategies-in-india/Rangnekar Amit (2008). Golden Arches: Cases of Strategic Adaption. Retrieved March21, 2012, from http://www.scribd.com/doc/2303069/Case-McDonalds-India-LaunchRosenberg Matt (2011). India‟s Population: India Likely to Surpass China in Populationby 2030. Retrieved March 20, 2012, fromhttp://geography.about.com/od/obtainpopulationdata/a/indiapopulation.htmThorn Bret (2011). McDonalds‟: Lessons learned from India. Retrieved March 21, 2012,from http://nrn.com/article/mcdonald%E2%80%99s-lessons-learned-indiaTONG TIONG VEE APRIL 2012

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