McDonald's entered the Indian market in 1996 through a joint venture. It analyzed India's large and diverse population as well as the fragmented food market. McDonald's developed local supply chains and customized its menu and operations to Indian tastes by adding vegetarian and regional options. It targeted younger families and focused its marketing on positioning McDonald's as a family restaurant through promotions and surveys. This localization strategy helped McDonald's succeed and grow to over 200 outlets in India.

1. MCDONALD’S
INDIA.
By
Umapathi
11hm18
NITK,SURATHKAL

2. 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

3. COMPANY PROFILE
 Established in 1955, head quarters: Oak
Brook, Illinois, U.S.
 Presence in 119 countries
 Revenue: $24 billions
Vision:
McDonald's complete commitment to Quality,
Service, Cleanliness and Value (QSC&V)

4. BEFORE COMING TO INDIA
Analysis 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

5. CONTINUE…
 20 major languages, 800+ dialects
 50% population literate
 Advertising-Billboards, Print , Electronic
 8 languages for National launch

6. 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 McDonald's in Indonesia and
the US before launch
 Always been a franchising Company

7. 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

8. 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

9. 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

10. MENU
 Veg McCurry Pan
 Chicken McCurry pan
 Maharaja mac
 Mexican style wraps
 Paneer salsa
 Veg burger
 McVeggie
 Pizza McCuff
 Veggie Mc Muffin
 Chicken Patty
 McAloo Burger
 French fries
 Beverages
 Ice creams etc.

11. TARGETING MARKETS
 Kids & The Young family (<30 years)
 Only < 10% population-possible target market
 Concentrate on metros, then open branches in other cities
Phase I- Focus on cities of relatively high incomes
where citizens are exposed to western food & culture
Phase II- Move to smaller satellite towns (Gurgaon,
Pune)- Positive spillover effect of reputation
Jaipur & Agra- To attract foreign tourists
Phase III- Malls, Multiplexes, Highways, Stations &
Airports

12. 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

13. PROMOTIONAL TECHNIQUES
Before 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?

14. 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.