MCDONALD’SINDIA. By Umapathi 11hm18 NITK,SURATHKAL
CONTENTS Company Profile Before coming to India India Vision & Entry Indian Market Supply Chain Management Product Adoption Targeting Markets Marketing Strategy Promotional Techniques Success story
COMPANY PROFILE Established in 1955, head quarters: Oak Brook, Illinois, U.S. Presence in 119 countries Revenue: $24 billionsVision:McDonalds complete commitment to Quality,Service, Cleanliness and Value (QSC&V)
BEFORE COMING TO INDIAAnalysis about India: Huge Sub-continent 4 times the population of the US 4th largest economy Size of „Eating Out‟ market- substantial Consumer spending growing Highly fragmented food market Millions of roadside stalls / carts- major market share Udipi, Sandwich, PavBhaji, Chaats, Chinese,Namk eens, Pizza Organised chains- Narula‟s, Wimpys, Udipis
CONTINUE… 20 major languages, 800+ dialects 50% population literate Advertising-Billboards, Print , Electronic 8 languages for National launch
INDIA VISION & ENTRY To be India‟s "best" quick service restaurant experience - supported by principles and core values Entered in 1996, 50:50 Joint Venture with ConnaughtPlaza Restaurants-Vikram Bakshi- North &Hardcastle Restaurants-Amit Jatia- West Trained extensively, along with their Indian management team, in McDonalds in Indonesia and the US before launch Always been a franchising Company
INDIAN MARKET 1991 Open to FDI KFC (1995), Kelloggs (1991) were not succeeded Overconfidence, Lack of demand High cost, lack of local taste and Over estimation on demand Inappropriate strategies and Limited purchase power Significant vegetarian population
SUPPLY CHAIN MANAGEMENT Local network for supply chain & distribution Local suppliers, distributors to mat Quality and hygiene standards Invested Rs 50 crore in setting up, before opening 1st outlet and by 2000- Investment in supply chain – Rs 300 crore.Geographically diverse sourcing: Buns from North Chicken & Cheese from West Fish, Lettuce & Pickles from South 98% paper, locally sourced French fries imported from Indonesia 40 suppliers in the chain
PRODUCT ADOPTION The Indian Challenge Menu Development Restaurant Management System International Standards Family Restaurant Value Pricing Respect to Indian customs and Culture. Widening Customer base Community Partnership /CSR
TARGETING MARKETS Kids & The Young family (<30 years) Only < 10% population-possible target market Concentrate on metros, then open branches in other citiesPhase I- Focus on cities of relatively high incomeswhere citizens are exposed to western food & culturePhase II- Move to smaller satellite towns (Gurgaon,Pune)- Positive spillover effect of reputationJaipur & Agra- To attract foreign touristsPhase III- Malls, Multiplexes, Highways, Stations &Airports
MARKET STRATEGY Promotional strategy to convey world class experience Indian adaptations, freshness, nutrition & value Shift from worldwide positioning of drive-in convenience and speedy service Segment- The Young family (<30 years) Target- The young family who eats out Focus- Attracting children, so family follows Positioning- „McDonalds mein hai kuch baat‟ – a place for the entire family to enjoy Differentiation- highlighting brand, food & variety Happy meal film on Cartoon Network, Zee Special promotions during festivals Get Lucky Promotional schemes
PROMOTIONAL TECHNIQUESBefore adopting promotional techniques, McDonalds survey. Ratio of Veg n non Veg customers visiting McDonald‟s Favorite product? Do you find the product line satisfactory? Favorite Advertisement? Do you find McDonald‟s value for money? Problems faced in the visits to McDonald‟s? Suggestions to improve McDonald‟s? Unique selling promotion in McDonald‟s?
SUCCESS STORY After analyzing Marketing mix Mc Donald applied “Think Global, act local” policy which is the main reason for their success in India. The Profits as compared with 2004, in 2010 got doubled More than 200 outlets established in India Planned for more outlets and diversification by implementing breakfast items and new menu like McAloo tikka etc.