The Golden Arches Strikes Back
How Big Macs made it to IndiaTwitter: @PaoloGardani - www.edempg.it - facebook.com/EdempgComunicazione
Today’s Goal    To Identify and Explain challanges that made McDonald’s capable to succeed in a marketplace with          ...
Let’s frame the organizational Growth Opportunity                            }    Strengths                               ...
Growth Opportunity                   A good mix between                 INTERNAL CAPABILITIES              (Strengths & We...
Growth OpportunityStrenghts         What the organization is good at doing or                  a characteristic that gives...
McDonald’s SWOT AnalysisStrenghts         Excellent Supply-Chain ManagementWeaknesses        High Employee turnover rateOp...
World’s Leading Food Service Retailer• 1937: Richard and Maurice McDonald’s  open the first drive-in restaurant in  Califo...
A World’s Leading Food Service Retailer• Over 32,000 restaurants• 53 mil. customers each day• 121 countries• 400,000 emplo...
India: an amazing challange• Over 1,2 bil. population • Over 72% Rural • Over 22% under poverty line • 2.72 children born/...
Challanging IndiaTwitter: @PaoloGardani - www.edempg.it - facebook.com/EdempgComunicazione
A journey started far ago• Early 90s few US-based fast food  chains entered the Indian market (KFC  & Pizza Hut)• 1996: Af...
The Golden Arches keys to success• McDonald’s strategy is to think global  and act local• McDonald’s invest in strengtheni...
The Golden Arches keys to success• India requires more efforts...• An ‘Indianized Menu’, re-engineered  operations, and no...
A 75% re-designd menuTwitter: @PaoloGardani - www.edempg.it - facebook.com/EdempgComunicazione
The Golden Arches keys to success:            Restaurant Management System (RMS)• 2 separate menues: green = veg; purple =...
The Golden Arches keys to success:            winnining cleanilness/hygien standards• India’a local suppliers provide high...
The Golden Arches keys to success:                 international standards• 100 Rupee (Rs) ± € 1.44 ± $ 1.92• KFC Rs 59-79...
The Golden Arches keys to success:                  community partnership• Children’s painting competition across cities• ...
The Golden Arches keys to success:                    marketing strategy• Promotional strategy to convey world class  expa...
The Golden Arches keys to success:                 supply chain investment• Critical for Success• Local network for supply...
The Golden Arches move on• $111 investment in the next 3 yrs• 2011: opening of 30 more restaurants in South  & West• Hardc...
The Golden Arches Strikes Back Twitter: @PaoloGardani - www.edempg.it - facebook.com/EdempgComunicazione
Upcoming SlideShare
Loading in …5
×

How Big Mac's Made it to India

1,012 views

Published on

McDonald's made it to India! India is the largest challenging market for a worldwide food restaurant chain. India has over 1,2 bil. population, over 72% Rural, over 22% under poverty line, 2.72 children born/woman, 29 languages spoken, 80% pop. Hindus revere cows, over 150 mil. Muslims do not eat pork. A median age 25.1 yrs.
McDonald's invested a large amount of money sourcing locally all what was needed to get the job done.

Published in: Business
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
1,012
On SlideShare
0
From Embeds
0
Number of Embeds
10
Actions
Shares
0
Downloads
29
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

How Big Mac's Made it to India

  1. 1. The Golden Arches Strikes Back
  2. 2. How Big Macs made it to IndiaTwitter: @PaoloGardani - www.edempg.it - facebook.com/EdempgComunicazione
  3. 3. Today’s Goal To Identify and Explain challanges that made McDonald’s capable to succeed in a marketplace with substantial differencies in:•cultural approach to food consumption•low spenditure available•religious constraints•Anti-American behavior•poor logistics infrastructure Twitter: @PaoloGardani - www.edempg.it - facebook.com/EdempgComunicazione
  4. 4. Let’s frame the organizational Growth Opportunity } Strengths internal Weaknesses } Opportunities external Threats Twitter: @PaoloGardani - www.edempg.it - facebook.com/EdempgComunicazione
  5. 5. Growth Opportunity A good mix between INTERNAL CAPABILITIES (Strengths & Weaknesses) and EXTERNAL ENVIRONMENT (Opportunities & Threats)Twitter: @PaoloGardani - www.edempg.it - facebook.com/EdempgComunicazione
  6. 6. Growth OpportunityStrenghts What the organization is good at doing or a characteristic that gives it an important capabilityWeaknesses What an organization lacks or does poorly relative to competitorsOpportunites Developments or conditions in the environment that have favorable implications for the organizationThreats Pose dangers to the welfare of the organization Twitter: @PaoloGardani - www.edempg.it - facebook.com/EdempgComunicazione
  7. 7. McDonald’s SWOT AnalysisStrenghts Excellent Supply-Chain ManagementWeaknesses High Employee turnover rateOpportunites Worldwide Brand recognition, Overseas ExpansionThreats Competition from Burger King Twitter: @PaoloGardani - www.edempg.it - facebook.com/EdempgComunicazione
  8. 8. World’s Leading Food Service Retailer• 1937: Richard and Maurice McDonald’s open the first drive-in restaurant in California• 1954: a distributor for milkshake machines, Ray Kroc, finalized a deal with the two founders.He established a franchising company, the McDonald System Inc. and appointed• franchisees 1961: Ray Kroc bought out the McDonalds brothers’ share for $2.7 mil and changed the name of the company to McDonald’s Corporation.• 1965: McDonald’s Corporation went public Twitter: @PaoloGardani - www.edempg.it - facebook.com/EdempgComunicazione
  9. 9. A World’s Leading Food Service Retailer• Over 32,000 restaurants• 53 mil. customers each day• 121 countries• 400,000 employees• Over $24 bil. revenues (2010)* • $15,9 bil. foreign sales • $8,1 bil. domestic sales • $4,9 bil. net income * Auditor: Ernst & Young LLP Twitter: @PaoloGardani - www.edempg.it - facebook.com/EdempgComunicazione
  10. 10. India: an amazing challange• Over 1,2 bil. population • Over 72% Rural • Over 22% under poverty line • 2.72 children born/woman• 29 languages• 80% pop. Hindus revere cows• Over 150 mil. Muslims do not eat pork• Median age 25.1 yrs. Twitter: @PaoloGardani - www.edempg.it - facebook.com/EdempgComunicazione
  11. 11. Challanging IndiaTwitter: @PaoloGardani - www.edempg.it - facebook.com/EdempgComunicazione
  12. 12. A journey started far ago• Early 90s few US-based fast food chains entered the Indian market (KFC & Pizza Hut)• 1996: After researching various aspects of the Indian market, planning, studying Indian consumers’ tastes, product evelopment, and supply chain, McDonald’s opens the first outlet in Bombay (now Mumbai - India’s financial capital and its largest fast food market, where competitng outlets are often a few feet apart) Twitter: @PaoloGardani - www.edempg.it - facebook.com/EdempgComunicazione
  13. 13. The Golden Arches keys to success• McDonald’s strategy is to think global and act local• McDonald’s invest in strengthening back- end supply chain to ensure uninterrupted supply of inputs• McDonald’s employs local people in its restaurants, purchases from local suppliers, and constructs its restaurants using local architects, contractors, labor and - where possible - local materials. Twitter: @PaoloGardani - www.edempg.it - facebook.com/EdempgComunicazione
  14. 14. The Golden Arches keys to success• India requires more efforts...• An ‘Indianized Menu’, re-engineered operations, and no beef burger. RESPECT FOR LOCAL CULTURE.• McDonald’s introduced a menu which completely excluded beef or pork. The largest re-designed menu for the whole chain (75% of it).• The flagship beef-based Big Mac replaced by a lamb-based ‘Maharaja Mac’ that later became chicken-based• For the middle class (300 mil consumers), the menu include McAloo Tikki Burger (breaded potato and pea pattie) Twitter: @PaoloGardani - www.edempg.it - facebook.com/EdempgComunicazione
  15. 15. A 75% re-designd menuTwitter: @PaoloGardani - www.edempg.it - facebook.com/EdempgComunicazione
  16. 16. The Golden Arches keys to success: Restaurant Management System (RMS)• 2 separate menues: green = veg; purple = non veg• Separate veg/nonveg kitchens with dedicated staff, preparation and wrapping areas• Different uniforms for kitchen crew to distinguish roles• Workers to cross fromveg/nonveg kitchen must take shower first• Printed brochures of RMS to customers• Customer kitchen tours to assure Twitter: @PaoloGardani - www.edempg.it - facebook.com/EdempgComunicazione
  17. 17. The Golden Arches keys to success: winnining cleanilness/hygien standards• India’a local suppliers provide highest quality, freshest ingredients• Adherance to Indian Government regulations on food, health and hygiene, benchmarking with own int’l standards• Fast, friendly service - the hallmark of McDonalrd’s restaurants wolrd over• Stringent cleaning standards, trays sanitized several times each hour• Meticulous attention to cleanliness beyond lobby, kitchen to pavement & outside areas Twitter: @PaoloGardani - www.edempg.it - facebook.com/EdempgComunicazione
  18. 18. The Golden Arches keys to success: international standards• 100 Rupee (Rs) ± € 1.44 ± $ 1.92• KFC Rs 59-79 (Burger/KFC, Drink); Chicken, rice, gravy meal for Rs 39• Pizza Hut Family meal (2 medium pizzas, Pepsi) Rs 350;• McDonald’s Vlue meals Rs 39; Quick bites 25 Rs, Soft serve ice-cream Rs 8. • Even these low prices afforded a 40% margin Twitter: @PaoloGardani - www.edempg.it - facebook.com/EdempgComunicazione
  19. 19. The Golden Arches keys to success: community partnership• Children’s painting competition across cities• Maintaining gardens, parks, heritage structures• Effluent treatments, recyclable paper bags• Huge donations to Latur / Bhuj / Gujarat hearthquakes Twitter: @PaoloGardani - www.edempg.it - facebook.com/EdempgComunicazione
  20. 20. The Golden Arches keys to success: marketing strategy• Promotional strategy to convey world class expansion, Indian adaptations, freshness,• nutrition &worldwide positionning of Shift from value drive-in convenience and speedy service• Segments- The young family (<30 y/old)• Target- The young family who eats out• Focus- attracting children so family follows• Positionning- ‘McDonalds mein hai kuch beat’ - A place where for the entire family to enjoy.• Differentiation- highlighting brand, food & variety Twitter: @PaoloGardani - www.edempg.it - facebook.com/EdempgComunicazione
  21. 21. The Golden Arches keys to success: supply chain investment• Critical for Success• Local network for supply chain & distribution• Local suppliers, distributors to match int’l quality• Invested Rs 50 crore (1 Rs crore = 10 mil Rs) ± $10 mil.• By 2000 Investment in supply chain reached Rs 300 crore! Twitter: @PaoloGardani - www.edempg.it - facebook.com/EdempgComunicazione
  22. 22. The Golden Arches move on• $111 investment in the next 3 yrs• 2011: opening of 30 more restaurants in South & West• Hardcaslte, licensee of McDonlad’s will open 250 McDonald’s restaurants in the next 3-4 years. Twitter: @PaoloGardani - www.edempg.it - facebook.com/EdempgComunicazione
  23. 23. The Golden Arches Strikes Back Twitter: @PaoloGardani - www.edempg.it - facebook.com/EdempgComunicazione

×