Mc donalds part 2


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Mc donalds part 2

  1. 1. Brand Dossier McDonald’s Literature Review on McDonald’s Part 2: Primary Research Submitted to Prof. Srinivas Govind RajanSubmitted By:Kalyan Kumar DasJyotishree GuptaAmit KumarLiterature review Part 2 Page 1
  2. 2. Brand Dossier McDonald’sList of hypothesis: 1. How McDonald’s local adaptation created space between Indian cuisines. 2. How local adaption contribute to business Growth in India & challenges 3. What is McDonald’s doing right in India 4. How Success Strategy works correctlyHypothesis: 1. How McDonald’s local adaptation created space between Indian cuisines:Supportive ArgumentsNature of Indian restaurants: Nature of Indian restaurant is mostly taste occupancy. The menuremains true to the classic Indian recipe. The personification of modern India is colourful & festive.The food of India is like no other experience that once savoured is ever forgotten. A cuisine wholestyle & ingredients has travelled the world. The naan, the versatile lentil, the inimitable culfi, dahidishes, masala tea are the perfect accompaniment in Indian cuisine.Here as an Indian by nature we have refined this immense variety into a selective list of finest recipe,prepared in a healthy & home cooked fashion.Food habits of Indian:Image of India is a predominantly vegetarian country. Over the period of time cultural scholar hasfind that drastically shift of food habits among Indians. The Hindu-CNN-IBN state of the nationsurvey conducts the survey of around 15000 correspondents spread across 883 village & 19 urbanstates. The survey confirms that the widespread impression of vegetarian remark is shifted. Theanalysis of data show that majority of our communities are non-vegetarian. The finding shows thatonly 31 percent of Indian is vegetarians. The figure is 21 percentages for families (with all vegetarianmembers). Another 9% of population is eggetarian or vegetarian who eat eggs. Vegetarianism has apredictable pattern: women are more likely to be vegetarian than men and so are those above theage of 55. But there is no broad correspondence between age and vegetarianism. Among the young,the figure is only slightly below the national average. The findings show that vegetarianism is afunction of inherited cultural practice rather than individual belief. Religion and community matter:as many as 55 per cent of Brahmins are vegetarians. The corresponding figure for Adivasis is 12 perLiterature review Part 2 Page 2
  3. 3. Brand Dossier McDonald’scent. Hindus who worship every day are more likely to be vegetarian, but the majority of all Hindusare non-vegetarian. Interestingly, eight per cent of Christians are also vegetarians.The survey shows that regional location matters more than caste or community. As expected, thelowest proportions of vegetarian families are in coastal States such as Kerala (two per cent), TamilNadu (eight per cent), Andhra Pradesh (four per cent), Orissa (eight per cent) and Bengal (three percent). Most land-locked States, especially in the west and north, are places with the highestproportion of vegetarian families: Rajasthan (63 per cent), Haryana (62 per cent), Punjab (48 percent), Uttar Pradesh (33 per cent), Madhya Pradesh (35 per cent) and Gujarat (45 per cent). The survey also throws light on some changing food habits due to the influence of `modernity. Teaor coffee is consumed by 77 per cent of the people every day. Cold drinks are yet to catch up: onlyfour per cent consume it every day. But this figure goes up to 30 per cent if irregular consumers areincluded. The consumption is markedly higher among the young. A little less than half of urban Indiaand a little less than a quarter of rural India consume cold drinks. Smoking is widespread. Twentyone per cent smoke cigarettes or bidis every day. But there is no evidence of the rise of smokingamong the youth.Similarly, there is no evidence that more youth are drinking. Thirteen per cent drink regularly orsometimes. The highest incidence is among the middle-aged (between 36 and 45 years) and amongcommunities where there are no taboos on drinking.But these findings could be an underestimation as nearly two-thirds of those polled believe thatdrinking has increased in their locality over the last decade. This is true even in Gujarat, whereprohibition is in force. An overwhelming majority is in favour of state action to prevent the spread ofalcohol consumption. Every survey conducted in the last decade has reported similar levels ofsupport for state-enforced prohibition.The Hindu -CNN-IBN survey also provides evidence on the nutritional quality of food and the extentof food deprivation. A majority report that the quality of their food intake is better than what it was10 years ago and better than what their parents ate. The same is true of the intake of nutritionalingredients such as milk for children, and pulses and cereals. Many scholarly studies have pointed tothe decline or stagnation in the consumption of pulses and cereals, but this is not reflected in theperceptions of the people. But there is an underclass comprising the bottom one-fifth that reports adecline in the quality of food consumption.Most of the spices used in Indian food have been used for their medicinal properties in addition tothe flavour and taste they impart. Ginger is believed to have originated in India and was introducedto China over 3000 years ago. In India, a knob of fresh ginger added to tea is believed to relieve sorethroats and head colds, not to mention its aphrodisiacal properties! Turmeric is splendid against skindiseases and neem leaves are used to guard against small pox.Reference: review Part 2 Page 3
  4. 4. Brand Dossier McDonald’sReference: Conclusion: Since Indian restaurants & kitchen has very diversified menu with differentlocal flavour but the quality & hygiene standard is not properly fitted to cultural variation.McDonald’s MFY(made for you) is an unique concept(cooking method) where the food is preparedas the customer places its order, has made a very significant role to place burger between spicyIndian Cuisine.Literature review Part 2 Page 4
  5. 5. Brand Dossier McDonald’sHypothesis: 2. how local adaption contribute to business Growth in India & challengesSupportive Arguments: In India Fast food chains face a tough time balancing between marginpressures & hiking prices which can hurt business volume. Consequently, the chain has to increaserates or rework their strategies. Indian consumers are driven by price which is very important factorfor restaurant to decide their strategy. Affordability is one of the key factors of McDonald’s for Pricedrive market in India. Since McDonald’s brought very long menu with affordable price variation forIndian consumers like Spice Delight, Extra Value meal, Happy Price menu, breakfast menu, coremenu, Happy menu, beverage, Desserts which fits for Indian consumer taste. Approximately 75% ofthe menu available in McDonald’s in India is Indian zed & specifically designed to woo Indiancustomers.Food Items McD Subway KFC Pizzahut Domino’sBurgers & Rs 20-Rs70 Rs 65-Rs135 Rs25-Rs175 Rs55- Rs135-Pizza Rs175(regular) Rs150(regular)Combo Meals Rs49-Rs119 Rs45-Rs175 Rs 55-Rs150 Rs120-Rs250 Rs120-Rs 130Beverages Rs25-Rs70 Rs35-Rs85 Rs30-Rs60 Rs 40 (600ml) small(300ml) small(300ml) small(300ml)Desserts Rs 12-Rs25 Rs20-Rs50 Rs 15-Rs65 Rs 40-Rs 60 Rs 25(100ml of baskin)Challenge: One of the company’s major concerns was to develop ways to avoid politicalconfrontation with the Indian government. The other major concern was to be careful of thereligious sensitive in India. Almost 80% of Indians do not eat beef, and over 150 million IndianMuslims do not eat pork, therefore, instead of supplying the normal Big Mac, which consists of beef,Literature review Part 2 Page 5
  6. 6. Brand Dossier McDonald’sthe company developed the Maharaja Mac that is made of two lamb patties. Other foods were alsoadded to the non-standardized menu including McAloo Tiki Burger, and other common Indian dishesHypothesis Conclusion: Component like price & product strategy are driven factor for localadaption.Hypothesis: 3 what is McDonald’s doing right in India:Supportive Arguments & Hypothesis Conclusion: McDonald’s relative success in India has severalimportant lessons for global MNC. They are interested in exploring the challenge & opportunities inemerging markets. Given the unique cultural space in India, where most people do not eat beef &pork, where most people prefer vegetarian foods and where people’s food habits are dominated byregional food preferences. Consideration of these factors they changed the menu geographically &used local supplier & distributor for their raw product. This was one of the great business models totap the local suppliers, consumers & distributors.Hypothesis: 4: How success strategy woks correctly:Supportive Arguments: Since the start of the company in 1973, McDonald’s Corporation beganspreading domestically throughout the United States thus establishing its brand recognition. Itsinitial strategy began by advertising directly to the middle and upper class citizens, as can be seen incountries such as India and China. However, with its many bargain deals on several of its food items,McDonald’s began to cater to several people belonging to the lower class.China was McDonald’s first global country in which it researched heavily before opening uprestaurants. In fact, through globalization and internationalization, McDonalds was able to developmarketing strategies, while at the same time customizing them for different regions in accordance tothe cultural and national variations in order to serve specific target markets. The company conductsheavy research in regions where it desires to open locations based upon a few elements, includingsocial, cultural, technological, political, and economic situations. McDonald’s key to success is itsbusiness mantra of “think global, act local” (Vignali, 2001). This has allowed the company to achievefinancial success in every region it opens its fast food restaurants.Supportive Arguments: Tastes and preferences vary across the globe; therefore, the company thoroughly analyzes thepreferred tastes, especially to not offend local cultures. For example, India is a nation where beef ishighly unpopular due to religious purposes; therefore, the company had to come up with burgersthat were not made with beef, but rather with chicken or lamb. Furthermore, the company had tocreate flavors that were spicy in order to meet the general taste preferences. In order to furtheremphasize the globalization element incorporated by the company, the success strategies include:List of Information required to be collated: 1. Distribution of product & range 2. Consumer behavior for the product 3. Product volume & their competitor 4. Customer segmentation 5. Product acceptanceThe Instrument of data collection: 1. Questionnaire methodLiterature review Part 2 Page 6
  7. 7. Brand Dossier McDonald’s 2. Through Internet(mail questionnaire) 3. Social networking sitesMcDonald’s Questionnaire:Name: _________________________Sex: ____ Age____Have you ever been to the fast food joint McDonald’s?1. Yes,2. NoIf your answer to the above question isNo, then do you plan to visit the joint in near future? 1. Yes, 2. No.Thank you for your valuable time.If yes, then kindly continue to answer the following questions:Q1. How would you rate the service at McDonald’s?1. Bad2. Average3. Good4. BrilliantQ2. What do you think of the product prices?1. Consumer Friendly (light on the pocket)2. Average3. Highly ExpensiveQ3.How often do you eat at McDonalds?1. Once a year2. Once a month3. Once a week4. EverydayLiterature review Part 2 Page 7
  8. 8. Brand Dossier McDonald’sQ4) Would you say that McDonalds is healthy? 1. Yes 2. No 3. Not sureQ5) in a month, how much would you roughly spend there? 1. Less than Rs 2000 2. Rs 2000 to Rs 4000Q6) what time of the day do you prefer to eat there? 1. Breakfast 2. Lunch 3. Dinner 4. SnackQ7) which is your favourite dish at McDonalds? 1. McChicken Burger 2. French Fries 3. Big Mac Burger 4. OthersQ8) why do you eat at McDonalds? 1. tastes good 2. Cheap 3. Convenient 4. I dont eat at McDonaldsQ9) what is the main problem you faced at McDonald’s? 1. Long queues 2. Wrong order 3. Bad music 4. Other problems 5. No problemsQ10) which area do you think needs the most improvements? 1. No suggestions 2. Better music 3. More space 4. Home delivery 5. More varietyLiterature review Part 2 Page 8
  9. 9. Brand Dossier McDonald’s 6. Low pricesQ11) what are unique selling propositions of McDonald’s? 1. Food 2. Hygiene 3. Ambience 4. Quick service 5. Location 6. OthersSampling plan and sample size:Sampling plan: collection of data from different McDonald’s outlets situated in Kolkata usingquestionnaire method, direct interview methods and by using mail questionnaire method etc.Sample size: have a plan of collecting more or less 200 sample data from different sources inKolkata.Justification: Since the large volume of data we have pool of information to analyse the data & canreach on conclusion based upon our objective.Method of data Analysis to be used:1) Collection of primary and secondary data.2) Before analysis can be performed, raw data must be transformed into right format. It must beedited so that errors can be corrected or omitted.3) We will formulate null hypotheses and an alternative hypothesis.4) Choose the appropriate test.5) Choose a level of significance (alpha)-determine a critical region.6) Calculate a test statistic value based on the sample data collected or calculate p-value.7) Compare the value of the test statistic to the rejection threshold or compare p-value with thelevel of significance.8) Based on the comparison, reject or do not reject the null hypothesis.9) Make the market research conclusion.Analytical tools to be used: Ms Excel, SAS, and SPSS etc.Bibliography: review Part 2 Page 9
  10. 10. Brand Dossier McDonald’s review Part 2 Page 10
  11. 11. Brand Dossier McDonald’s THANK YOULiterature review Part 2 Page 11