4 Reasons why McDonald’s is succeeding in India

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4 Reasons why McDonald’s is succeeding in India

  1. 1. 4 REASONS WHY MCDONALD’S IS SUCCEEDING IN INDIA Prof. Sameer Mathur, Ph.D.
  2. 2. Sameer Mathur BuddingMarkets.com Indian Institute of Management, Lucknow Marketing Professor 2013 – Marketing Professor 2009 – 2013 Ph.D. and M.S. (Marketing) 2003 – 2009
  3. 3. Agenda Why is McDonald’s succeeding in India, whereas other fast food giants (e.g. KFC) have not done well?
  4. 4. • 4 Reasons – Sensitivity to local taste (no beef or pork) – Affordable Prices –Promoting a family-dining experience – Innovative practices (e.g. Home-Delivery)
  5. 5. “Localization” as a Marketing Policy in India • No beef products – Restricted to chicken, fish, lamb and vegetarian products
  6. 6. Common Sense Approach “It really doesn’t make sense to sell beef in a country where 85% of the population doesn’t eat it or will even shun a restaurant where beef is served” – Vikram Bakshi, Managing Director, McDonald’s India
  7. 7. Affordable Prices 1 US$ ~ Rupees 45
  8. 8. Promoting a Family-Dining Experience • Indians like eating with families and friends. • TV ad: ‘Toh Aaj McDonald’s Ho Jaye’ (Let’s go to McDonald’s today)
  9. 9. Innovative: Home Delivery Quite unlike the United States…
  10. 10. The Early Days • First India McDonald’s opened in 1996 • Critics were apprehensive: – Attracting Indians to American pattern of food consumption appeared daunting. – Multinationals: perceived threat to local economy & native culture. – Food: a family affair, eating out was less common.
  11. 11. More Recent Numbers…
  12. 12. McDonald’s 42% Market Share • International brands (e.g. KFC) have not done well
  13. 13. Summary Why is McDonald’s succeeding in India, whereas other fast food giants (e.g. KFC) have not done well?
  14. 14. Summary • McDonald’s is the most successful fast food franchise in India with ~40% market share • 4 Reasons for McDonald’s success in India – Sensitivity to local taste (no beef or pork) – Affordable Prices – Promoting a family-dining experience – Innovative practices (e.g. Home-Delivery)
  15. 15. Recommended Reading
  16. 16. Over 1 Million views from more than 100 countries Prof. Sameer Mathur Top 1% most viewed Over 250 presentations on Marketing www.BuddingMarkets.com

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