1.marketing Topic 2.newspaper Article 3.marketing Quote

IDEA BRIEF

1.MARKETING TOPIC 2.NEWSPAPER ARTICLE 3.MARKETING QUOTE

About McDonald’s…..  The business began in 1940, with a restaurant opened by

siblings Dick and Mac McDonald in San Bernardino, California.

 Ray Kroc discovers McDonald’s [1954] 



Creates “McDonald’s System’s Inc” to start franchising [1955] Renamed to “McDonald’s Corporation” [1960].

About McDonald’s (Contd.)  The first international McDonald’s restaurants open in

Canada and Puerto Rico.  Located in 122 Countries.  51 million people are served a day at 30,000 different locations.  1996 - First restaurant opens in India.  50-50

joint venture partnership between McDonald’s Corporation (USA) and two Indian businessmen.  Two separate operations in Northern & Western India.  Partners and their management teams trained extensively in Indonesia & the U.S.

Philosophy & Vision McDonald’s Complete commitment to Quality, Service, Cleanliness & Value (QSC&V). “…We take the burger Business more seriously than any one else.” “...If you’ve got time to lean, you’ve got time to clean” - Ray Kroc

McDonald’s In India  Limited menu, fresh food, fast service and affordable

prices have been the pillars behind McDonald’s success in India. Intense competition and demands for a wider menu, drive-through and sit-down meals - encouraged the fast food giant to customize product variety without hindering the efficacy of its supply chain.

 While there are some 150-200 million middle-class

people in India that can afford McDonald’s there is also a vast majority of the Indian population that is still too poor to afford it.

Indian Market  Huge sub – continent.  4 times the population of US.  Middle class estimated at 300 million.  Per capita GDP $400.  Indian economy is world’s 4th largest economy

and Asia’s 3rd largest economy.  Rs.1500 Cr urban fast food segment growing @ 20%.

Target Market

 Only <10% population – possible target market.  “We want to first concentrate first on

metros, then open branches in other cities. We want to set up outlets only in cities where we can ensure the quality of products. ” - Vikram Bakshi

Target Market (Contd.)  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 etc.) – Positive spillover effect of reputation. Jaipur & Agra – To attract foreign tourists.

 Phase III – Malls, multiplexes, highways, stations and

airports. No plans for South & Eastern India.

Indian Culture  For thousands of years, India's Hindu culture has

revered the cow and does not eat the meat of the scared cow. In addition there are some 140 million Muslims in India, who do not eat pork.

 To respect and adapt to Indian culture,

McDonald's created an Indian version of burgers which are made from mutton and chicken. All foods are segregated vegetarian and non-vegetarian, due to the fact that many Hindus are vegetarians.

McDonald’s – The Indian Way  McDonald's “Big Mac” has been replaced by “Maharaja

Mac” which is made from mutton.

 Respect for culture – special Indian menu, no beef or pork

items in India.

 McAloo Tikki Burger Introduced for vegetarians.  All foods are segregated into veg. and nonveg. lines to

conform with preferences in a country where many Hindus are vegetarian.

 According to the head of McDonald's Indian operations,

“We had to reinvent ourselves for the Indian palate.”

McDonald’s In Problem  In 2001, Law suit brought against McDonald’s in U.S by

three Indian businessmen living in Seattle for “fraudulently concealing” the existence of beef in McDonald’s French Fries.

 McDonald’s admitted that it used a “minuscule” amount of

beef extract in the oil.

 Settled the suit for $10 million & issued an apology.  Due to this incident people in New Delhi vandalized one

restaurant causing a damage of $45000, picketed the company’s headquarters & called on India’s PM to close the McDonald’s stores in the country.

Swot Analysis Strengths :-

Weakness :-

Adaptability

Declining market share

Marketing Efficiency Pricing

Weak product development Customer satisfaction

Opportunities :-

Threats :-

Expansions

Strength of competition More health-conscious consumers Changes in global economy

Conclusion  The negative publicity seemed to have little

impact on McDonald’s long term plans in India, however. The company continued to open new outlets, and by 2005 had 65 outlets in the country with future plans to open anoter 30 or so.

 They Concentrate on their long term goals and

objectives rather than indulging in controversies which come along with success.

“..What matters is what the customers want.." - Mittal, CEO Bharti Teleservices

Thank – You prepared bygroup 4(B)