Fast Food Fables macd, kfc, n dominos

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Fast Food Fables macd, kfc, n dominos

  1. 1. FAST FOOD FABLES Presented By:- Subhash Singh Tomar (19) Abhishek Bajpai (27) Reeshabh Kumar (37)
  2. 2. Abstract <ul><li>The case discusses the localization strategies adopted by the multinational fast food chains - McDonald's, Domino's and KFC in India. Initially, these fast food chains found it tough to cater to Indian tastes. Soon, they customized their menu, positioned their products and advertised to appeal to Indian customers. McDonald's and Domino's succeeded to a certain extent, while KFC still had a long way to go. And the factors that forced the fast food chains to understand the local market and modify their strategies to suit local requirements. </li></ul>
  3. 3. Mc DONALD’s
  4. 4. CUSTOMER DERIVED VALUE LOW-MED MED MED HIGH HIGH LOW LOW LOW
  5. 5. <ul><li>Geographic region:- </li></ul><ul><li>Region- Urban India </li></ul><ul><li>City- metro cities. </li></ul>SEGMENTATION OF Mc DONALD
  6. 6. Demographic Segmentation <ul><li>Targeted on: </li></ul><ul><li>Middle and Upper income group families, </li></ul><ul><li>Family stage: </li></ul><ul><li>Full nest </li></ul><ul><li>Potential target: </li></ul><ul><li>Office goers, Special Dial M facility </li></ul>
  7. 7. Psychological Segmentation <ul><li>Motivations </li></ul><ul><li>Personality </li></ul><ul><li>Perceptions </li></ul><ul><li>Learning </li></ul>
  8. 8. Motivation <ul><li>Need- Innate need. </li></ul><ul><li>Goal- product specific need </li></ul><ul><li>Motivation- Positive motivation </li></ul><ul><li>Motives- Emotional as well as Rational motives </li></ul><ul><li>Arousal of motives- Physiological arousal as well as environmental arousal </li></ul>
  9. 9. MASLOW’S HIERARCHY <ul><li>Physiological Needs </li></ul><ul><li>(Food, water, air, shelter, sex ) </li></ul>Safety and Security Needs (Protection, order, stability) Social Needs (affection, friendship, belonging) Ego Needs (Prestige, status, self esteem) Self-Actualization (Self-fulfillment)
  10. 10. Personality AS PER TRIO OF NEEDS As per Freudian Theory of Personality NEED FOR AFFILIATION(People who often select goods ,They feel will meet with the approval of friends) Id & Ego
  11. 11. <ul><li>Acc. To Horney- Compliant (family) </li></ul><ul><li>VARIOUS TRAITS(as per trait theory) </li></ul><ul><li>Consumer Innovativeness : - </li></ul><ul><li>Innovativeness- Low-medium </li></ul><ul><li>Dogmatism- Medium </li></ul><ul><li>Social character- Other directed </li></ul><ul><li>Need for Uniqueness- Low-medium </li></ul><ul><li>Optimal stimulation level- Medium </li></ul><ul><li>Sensation seeking- Medium </li></ul><ul><li>Variety-novelty seeking- Medium-high </li></ul>Personality (cont…)
  12. 12. <ul><li>Cognitive personality factors : - </li></ul><ul><li>Need for Cognition- low (Visualizer) </li></ul><ul><li>Brand personality- Competent </li></ul>Personality (cont…)
  13. 13. Different Self-Images Actual Self-Image Ideal Self-Image Ideal Social Self-Image(MacD customer) Social Self-Image Expected Self-Image
  14. 14. Perception <ul><li>Weber’s law- S1 < S2 </li></ul><ul><li>i.e. Noticed </li></ul><ul><li>Above JND ( Just noticeable difference) </li></ul><ul><li>Pricing Strategies focused on perceived value- </li></ul><ul><li>‘ Relationship Pricing’ </li></ul>
  15. 15. Behavioral Segmentation <ul><li>Attitude </li></ul><ul><li>Tri component model- </li></ul><ul><li>Conation (Do) </li></ul><ul><li> Affect (Feel) </li></ul><ul><li> Cognition (Learn) </li></ul>
  16. 16. Product Level <ul><li>Core benefit - Fast Food </li></ul><ul><li>Basic product - Berger </li></ul><ul><li>Expected product - Easy Availability </li></ul><ul><li>Augmented product - Socialization </li></ul><ul><li>Potential product - Available at lowest price then others. </li></ul>
  17. 17. Product Hierarchy <ul><li>Need Family : Hunger </li></ul><ul><li>Product Family : Snacks </li></ul><ul><li>Product Class :All Kinds of Snacks </li></ul><ul><li>Product Line :Road Side or Restaurant </li></ul><ul><li>Product Type : Veg-Berger or Non-veg </li></ul><ul><li>Berger </li></ul><ul><li>Item : Mc Donald’s Veg-Berger </li></ul>
  18. 18. Classical Conditioning Unconditioned Stimulus 20/- Conditioned Stimulus Mac Donald's Unconditioned Response Veg. Conditioned Stimulus Mac Donald’s Conditioned Response Aloo tikki burger AFTER REPEATED PAIRINGS
  19. 19. <ul><li>Reinforcement:- </li></ul><ul><li>Positive Reinforcement </li></ul><ul><li>Observational learning </li></ul>
  20. 20. The Elaboration Likelihood Model Involvement Central Route Peripheral Route Peripheral Cues Influence Attitudes Message Arguments Influence Attitudes HIGH LOW
  21. 21. Brand Loyalty Latent Loyalty No Loyalty Spurious Loyalty Loyalty Low High High Low Repeat Patronage Relative Attitude
  22. 22. Positioning <ul><li>Image positioning- </li></ul><ul><li>The brand name Mc Donald's carries many associations burger, fun, children, fast food, ambience, all of these makes up the brand image. </li></ul><ul><li>Competitor positioning- </li></ul><ul><li>Mc Donald’s mein hai kuch baat </li></ul>
  23. 23. DOMINO’s
  24. 24. CUSTOMER DERIVED VALUE HIGH MED LOW HIGH HIGH LOW HIGH LOW
  25. 25. Segmenting DOMINO’S <ul><li>Geographic </li></ul><ul><li>Region- Northern India </li></ul><ul><li>City size- Urban, Delhi. </li></ul><ul><li>Demographic </li></ul><ul><li>Targeted on: upper- middle, middle </li></ul><ul><li>Family- full nest, </li></ul><ul><li>people seeking convenience </li></ul><ul><li>Psychographic </li></ul><ul><li>Motivations </li></ul><ul><li>Personality </li></ul><ul><li>Perceptions </li></ul><ul><li>Learning </li></ul>
  26. 26. Motivation <ul><li>Need- Innate need. </li></ul><ul><li>Goal- Product specific need </li></ul><ul><li>Motivation- Positive motivation </li></ul><ul><li>Motives- Emotional as well as rational motives </li></ul><ul><li>Arousal of motives- Physiological and environmental arousal </li></ul>
  27. 27. MASLOW’S HIERARCHY <ul><li>Physiological Needs </li></ul><ul><li>(Food, water, air, shelter, sex) </li></ul>Safety and Security Needs (Protection, order, stability) Social Needs (affection, friendship, belonging) Ego Needs (Prestige, status, self esteem) Self-Actualization (Self-fulfillment)
  28. 28. Personality AS PER TRIO OF NEEDS As per Freudian Theory of Personality NEED FOR AFFILIATION(People who often select goods ,They feel will meet with the approval of friends) Id & Ego
  29. 29. Personality <ul><li>Acc. To Horney- Aggressive </li></ul><ul><li>VARIOUS TRAITS </li></ul><ul><li>Consumer Innovativeness : - </li></ul><ul><li>Innovativeness-high </li></ul><ul><li>Dogmatism- medium </li></ul><ul><li>Social character- other directed </li></ul><ul><li>Need for uniqueness- medium </li></ul><ul><li>Optimal stimulation level- medium </li></ul><ul><li>Sensation seeking- medium </li></ul><ul><li>Variety-novelty seeking- medium </li></ul>
  30. 30. <ul><li>Cognitive personality factors : - </li></ul><ul><li>Need for Cognition- low (Visualizer) </li></ul><ul><li>Brand personality- excitement </li></ul>
  31. 31. Different Self-Images Actual Self-Image Ideal Self-Image (Domino’s Customer) Ideal Social Self-Image Social Self-Image Expected Self-Image
  32. 32. Perception <ul><li>Weber’s law- S1 < S2 </li></ul><ul><li>i.e. Noticed </li></ul><ul><li>Above JND ( Just noticeable difference) </li></ul><ul><li>Pricing Strategies focused on perceived value- </li></ul><ul><li>‘ Satisfaction based Pricing’ </li></ul>
  33. 33. <ul><li>Behavioral </li></ul><ul><li>Benefits : Delivery in 30 mins or free </li></ul><ul><li>Attitude: </li></ul><ul><li>Tri component model- </li></ul><ul><li>Conation (Do) </li></ul><ul><li> Affect (Feel) </li></ul><ul><li> Cognition (Learn) </li></ul>
  34. 34. Product Level <ul><li>Core benefit - Fast Food </li></ul><ul><li>Basic product - Pizza </li></ul><ul><li>Expected product - Easy Availability </li></ul><ul><li>Augmented product - Available in many sizes and flavor. </li></ul><ul><li>Potential product - Available at lowest price than others. </li></ul>
  35. 35. Product Hierarchy <ul><li>Need Family : Hunger </li></ul><ul><li>Product Family : Snacks </li></ul><ul><li>Product Class :All Kinds of Snacks </li></ul><ul><li>Product Line :Road Side or Restaurant </li></ul><ul><li>Product Type : Domino’s, Wimpy, Pizza hut, Pizza corner, or Nirula’s </li></ul><ul><li>Item : Domino’s Pizza </li></ul>
  36. 36. Classical Conditioning Unconditioned Stimulus Free home delivery within30 min Conditioned Stimulus Domino’s Unconditioned Response Pizza Conditioned Stimulus Domino’s Conditioned Response Pizza AFTER REPEATED PAIRINGS
  37. 37. <ul><li>Reinforcement:- </li></ul><ul><li>Positive Reinforcement </li></ul><ul><li>Observational learning </li></ul>
  38. 38. The Elaboration Likelihood Model Involvement Central Route Peripheral Route Peripheral Cues Influence Attitudes Message Arguments Influence Attitudes HIGH LOW
  39. 39. Brand Loyalty Latent Loyalty No Loyalty Spurious Loyalty Loyalty Low High High Low Repeat Patronage Relative Attitude
  40. 40. <ul><li>Benefit positioning </li></ul><ul><li>Competitor positioning </li></ul>Positioning
  41. 42. CUSTOMER DERIVED VALUE HIGH HIGH HIGH MED-HIGH HIGH MED MED-HIGH MED-HIGH
  42. 43. Segmenting KFC <ul><li>Geographic </li></ul><ul><li>Region- Calcutta, Delhi, Bangalore, </li></ul><ul><li>Hyderabad, Mumbai </li></ul><ul><li>City- Urban Areas, metros </li></ul><ul><li>Demographic </li></ul><ul><li>Targeted on: upper- middle, middle </li></ul><ul><li>Family- full nest </li></ul><ul><li>Psychographic </li></ul><ul><li>Motivations </li></ul><ul><li>Personality </li></ul><ul><li>Perceptions </li></ul><ul><li>Learning </li></ul>
  43. 44. <ul><li>Initially KFC targeted detached personality people, offering only individual meals of international taste </li></ul><ul><li>Later they changed their target to families </li></ul>
  44. 45. Motivation Need- Innate need. Goal- Product specific need Motivation- Positive motivation Motives- Emotional motives Arousal of motives- Physiological and environmental arousal
  45. 46. MASLOW’S HIERARCHY <ul><li>Physiological Needs </li></ul><ul><li>(Food, water, air, shelter, sex) </li></ul>Safety and Security Needs (Protection, order, stability) Social Needs (affection, friendship, belonging) Ego Needs (Prestige, status, self esteem) Self-Actualization (Self-fulfillment)
  46. 47. Personality As per Freudian Theory of Personality Ego Acc. To Horney- Detached Compliant
  47. 48. Personality VARIOUS TRAITS( as per trait theory) Consumer Innovativeness : - Innovativeness-high low Dogmatism- low high Social character- inner other directed Seek uniqueness a little less Optimal stimulation level- medium Sensation seeking- high medium Variety-novelty seeking- medium
  48. 49. <ul><li>Cognitive personality factors : - </li></ul><ul><li>Need for Cognition- low (Visualizer) </li></ul><ul><li>Brand personality- excitement </li></ul>
  49. 50. <ul><li>Attitude- </li></ul><ul><li>Tri component model- </li></ul><ul><li>Conation (Do) </li></ul><ul><li> Affect (Feel) </li></ul><ul><li> Cognition (Learn) </li></ul>Behavioural
  50. 51. Different Self-Images Actual Self-Image Ideal Self-Image Ideal Social Self-Image Social Self-Image Expected Self-Image
  51. 52. Perception <ul><li>Weber’s law- S1 < S2 </li></ul><ul><li>i.e. Noticed </li></ul><ul><li>Above JND ( Just noticeable difference) </li></ul><ul><li>Pricing Strategies focused on perceived value- </li></ul><ul><li>‘ Relationship Pricing’ </li></ul>
  52. 53. Behavioral Segmentation <ul><li>Attitude </li></ul><ul><li>Tri component model- </li></ul><ul><li>Conation (Do) </li></ul><ul><li> Affect (Feel) </li></ul><ul><li> Cognition (Learn) </li></ul>
  53. 54. Product Level <ul><li>Core benefit - Fast Food </li></ul><ul><li>Basic product - Berger </li></ul><ul><li>Expected product - Easy Availability </li></ul><ul><li>Augmented product - Socialization </li></ul><ul><li>Potential product - Available at lowest price then others. </li></ul>
  54. 55. Product Hierarchy <ul><li>Need Family : Hunger </li></ul><ul><li>Product Family : Snacks </li></ul><ul><li>Product Class :All Kinds of Snacks </li></ul><ul><li>Product Line :Road Side or Restaurant </li></ul><ul><li>Product Type : Veg-Berger or Non-veg </li></ul><ul><li>Berger </li></ul><ul><li>Item : Mc Donald’s Veg-Berger </li></ul>
  55. 56. Classical Conditioning Unconditioned Stimulus 20/- Conditioned Stimulus Mac Donald's Unconditioned Response Aloo tikki burger Conditioned Stimulus Mac Donald’s Conditioned Response Aloo tikki burger AFTER REPEATED PAIRINGS
  56. 57. <ul><li>Reinforcement:- </li></ul><ul><li>Positive Reinforcement </li></ul><ul><li>Observational learning </li></ul>
  57. 58. The Elaboration Likelihood Model Involvement Central Route Peripheral Route Peripheral Cues Influence Attitudes Message Arguments Influence Attitudes HIGH LOW
  58. 59. Brand Loyalty Latent Loyalty No Loyalty Spurious Loyalty Loyalty Low High High Low Repeat Patronage Relative Attitude
  59. 60. Positioning <ul><li>Image positioning- </li></ul><ul><li>The brand name Mc Donald's carries many associations burger, fun, children, fast food, ambience, all of these makes up the brand image. </li></ul><ul><li>Competitor positioning- </li></ul><ul><li>Mc Donald’s mein hai kuch baat </li></ul>
  60. 62. Positioning <ul><li>User positioning </li></ul>
  61. 63. Mc Donalds <ul><li>Differenciate on- </li></ul><ul><li>Q: quality </li></ul><ul><li>S: service </li></ul><ul><li>C: cleanliness </li></ul><ul><li>V: value </li></ul><ul><li>Advertise as a family restaurant. </li></ul><ul><li>Differenciate on- </li></ul><ul><li>Channel: delivery in </li></ul><ul><li>30 min. </li></ul><ul><li>Advertisements shows aggressive personality type </li></ul>Domino’s
  62. 64. THANK YOU

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