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FAST FOOD FABLES
Presented By:-
Subhash Singh Tomar (19)
Abhishek Bajpai (27)
Reeshabh Kumar (37)
Abstract
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.
Mc DONALD’s
CUSTOMER DERIVED VALUE
LOW-MED MED MED
HIGH HIGH
LOW
LOW LOW
• Geographic region:-
Region- Urban India
City- metro cities.
SEGMENTATION OF Mc DONALD
Demographic Segmentation
• Targeted on:
Middle and Upper income group families,
• Family stage:
Full nest
• Potential target:
Office goers, Special Dial M facility
Psychological Segmentation
• Motivations• Personality• Perceptions• Learning
Motivation
• Need- Innate need.• Goal- product specific need• Motivation- Positive motivation• Motives- Emotional as well as Rational
motives• Arousal of motives- Physiological arousal
as well as environmental arousal
MASLOW’S HIERARCHY
Physiological Needs(Food, water, air, shelter, sex)
Safety and Security Needs(Protection, order, stability)
Social Needs(affection, friendship, belonging)
Ego Needs(Prestige, status, self esteem)
Self-Actualization(Self-fulfillment)
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
Personality
• Acc. To Horney- Compliant (family)
VARIOUS TRAITS(as per trait theory)
Consumer Innovativeness: -
• Innovativeness- Low-medium
• Dogmatism- Medium
• Social character- Other directed
• Need for Uniqueness- Low-medium
• Optimal stimulation level- Medium
• Sensation seeking- Medium
• Variety-novelty seeking- Medium-high
Personality (cont…)
Cognitive personality factors: -• Need for Cognition- low (Visualizer)
Brand personality- Competent
Personality (cont…)
Different Self-Images
Actual Self-Image Ideal Self-Image
Ideal SocialSelf-
Image(MacD customer)
Social Self-Image
ExpectedSelf-Image
Perception
• Weber’s law- S1 < S2 i.e. Noticed Above JND (Just noticeable
difference)
• Pricing Strategies focused on perceived value-
‘Relationship Pricing’
Behavioral Segmentation
• Attitude
Tri component model-
Conation (Do)
Affect (Feel)
Cognition (Learn)
Product Level
• Core benefit - Fast Food• Basic product - Berger • Expected product - Easy
Availability• Augmented product -
Socialization• Potential product -
Available at lowest price then others.
Product Hierarchy
• Need Family : Hunger
• Product Family : Snacks
• Product Class :All Kinds of Snacks
• Product Line :Road Side or Restaurant
• Product Type : Veg-Berger or Non-veg
Berger
• Item : Mc Donald’s Veg-Berger
Classical Conditioning
Unconditioned Stimulus20/-
Conditioned StimulusMac Donald's
Unconditioned ResponseVeg.
Conditioned StimulusMac Donald’s
Conditioned ResponseAloo tikki burger
AFTER REPEATED PAIRINGS
• Reinforcement:- Positive Reinforcement
• Observational learning
The Elaboration Likelihood Model
Involvement
Central Route
Peripheral Route
Peripheral Cues
Influence Attitudes
Message Arguments Influence Attitudes
HIGH LOW
LatentLoyalty
No Loyalty
Spurious Loyalty
Loyalty
LowLow
HighHigh
HighHigh LowLow
Repeat PatronageRepeat Patronage
Relative Relative AttitudeAttitude
Brand Loyalty
Positioning
• Image positioning-
The brand name Mc Donald's carries many associations burger, fun, children, fast food, ambience, all of these makes up the brand image.
• Competitor positioning-
Mc Donald’s mein hai kuch baat
DOMINO’s
CUSTOMER DERIVED VALUE
HIGH MED LOW
HIGH HIGH
LOW
HIGH LOW
Segmenting DOMINO’S
• Geographic Region- Northern India City size- Urban, Delhi. • Demographic Targeted on: upper- middle, middle Family- full nest, people seeking convenience • Psychographic Motivations Personality Perceptions Learning
Motivation
• Need- Innate need.• Goal- Product specific need• Motivation- Positive motivation• Motives- Emotional as well as rational motives• Arousal of motives- Physiological and
environmental arousal
MASLOW’S HIERARCHY
Physiological Needs(Food, water, air, shelter, sex)
Safety and Security Needs(Protection, order, stability)
Social Needs(affection, friendship, belonging)
Ego Needs(Prestige, status, self esteem)
Self-Actualization(Self-fulfillment)
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
Personality
Personality
• Acc. To Horney- Aggressive
VARIOUS TRAITS
Consumer Innovativeness: -
• Innovativeness-high
• Dogmatism- medium
• Social character- other directed
• Need for uniqueness- medium
• Optimal stimulation level- medium
• Sensation seeking- medium
• Variety-novelty seeking- medium
Cognitive personality factors: -
• Need for Cognition- low (Visualizer)
Brand personality- excitement
Different Self-Images
Actual Self-Image
Ideal Self-Image (Domino’s Customer)
Ideal SocialSelf-Image Social Self-Image
ExpectedSelf-Image
Perception
• Weber’s law- S1 < S2 i.e. Noticed Above JND (Just noticeable
difference)
• Pricing Strategies focused on perceived value-
‘Satisfaction based Pricing’
Behavioral
• Benefits : Delivery in 30 mins or free• Attitude: Tri component model- Conation (Do)
Affect (Feel) Cognition (Learn)
Product Level
• Core benefit - Fast Food• Basic product - Pizza• Expected product - Easy
Availability• Augmented product -
Available in many sizes and flavor.
• Potential product - Available at lowest price than others.
Product Hierarchy
• Need Family : Hunger
• Product Family : Snacks
• Product Class :All Kinds of Snacks
• Product Line :Road Side or Restaurant
• Product Type : Domino’s, Wimpy, Pizza hut, Pizza corner, or Nirula’s
• Item : Domino’s Pizza
Classical Conditioning
Unconditioned StimulusFree home delivery
within30 min
Conditioned StimulusDomino’s
Unconditioned ResponsePizza
Conditioned StimulusDomino’s
Conditioned ResponsePizza
AFTER REPEATED PAIRINGS
• Reinforcement:- Positive Reinforcement
• Observational learning
The Elaboration Likelihood Model
Involvement
Central Route
Peripheral Route
Peripheral Cues
Influence Attitudes
Message Arguments Influence Attitudes
HIGH LOW
LatentLoyalty
No Loyalty
Spurious Loyalty
Loyalty
LowLow
HighHigh
HighHigh LowLow
Repeat PatronageRepeat Patronage
Relative Relative AttitudeAttitude
Brand Loyalty
• Benefit positioning
• Competitor positioning
Positioning
CUSTOMER DERIVED VALUE
HIGH HIGH HIGH
MED-HIGH
HIGH
MED
MED-HIGH
MED-HIGH
Segmenting KFC
• Geographic Region- Calcutta, Delhi, Bangalore, Hyderabad, Mumbai City- Urban Areas, metros• Demographic Targeted on: upper- middle, middle Family- full nest • Psychographic Motivations Personality Perceptions Learning
•Initially KFC targeted detached personality people, offering only individual meals of international taste
•Later they changed their target to families
Motivation
Need- Innate need.Goal- Product specific needMotivation- Positive motivationMotives- Emotional motivesArousal of motives- Physiological and environmental arousal
MASLOW’S HIERARCHY
Physiological Needs(Food, water, air, shelter, sex)
Safety and Security Needs(Protection, order, stability)
Social Needs(affection, friendship, belonging)
Ego Needs(Prestige, status, self esteem)
Self-Actualization(Self-fulfillment)
As per Freudian Theory of Personality Ego
Personality
Acc. To Horney- Detached Compliant
Personality
VARIOUS TRAITS( as per trait theory)Consumer Innovativeness: -Innovativeness-high lowDogmatism- low highSocial character- inner other directedSeek uniqueness a little lessOptimal stimulation level- mediumSensation seeking- high mediumVariety-novelty seeking- medium
Cognitive personality factors: -
•Need for Cognition- low (Visualizer)
Brand personality- excitement
Attitude-
Tri component model-
Conation (Do)
Affect (Feel)
Cognition (Learn)
Behavioural
Different Self-Images
Actual Self-Image Ideal Self-Image
Ideal SocialSelf-Image Social Self-Image
ExpectedSelf-Image
Perception
• Weber’s law- S1 < S2 i.e. Noticed Above JND (Just noticeable
difference)
• Pricing Strategies focused on perceived value-
‘Relationship Pricing’
Behavioral Segmentation
• Attitude
Tri component model-
Conation (Do)
Affect (Feel)
Cognition (Learn)
Product Level
• Core benefit - Fast Food• Basic product - Berger • Expected product - Easy
Availability• Augmented product -
Socialization• Potential product -
Available at lowest price then others.
Product Hierarchy
• Need Family : Hunger
• Product Family : Snacks
• Product Class :All Kinds of Snacks
• Product Line :Road Side or Restaurant
• Product Type : Veg-Berger or Non-veg
Berger
• Item : Mc Donald’s Veg-Berger
Classical Conditioning
Unconditioned Stimulus20/-
Conditioned StimulusMac Donald's
Unconditioned ResponseAloo tikki burger
Conditioned StimulusMac Donald’s
Conditioned ResponseAloo tikki burger
AFTER REPEATED PAIRINGS
• Reinforcement:- Positive Reinforcement
• Observational learning
The Elaboration Likelihood Model
Involvement
Central Route
Peripheral Route
Peripheral Cues
Influence Attitudes
Message Arguments Influence Attitudes
HIGH LOW
LatentLoyalty
No Loyalty
Spurious Loyalty
Loyalty
LowLow
HighHigh
HighHigh LowLow
Repeat PatronageRepeat Patronage
Relative Relative AttitudeAttitude
Brand Loyalty
Positioning
• Image positioning-
The brand name Mc Donald's carries many associations burger, fun, children, fast food, ambience, all of these makes up the brand image.
• Competitor positioning-
Mc Donald’s mein hai kuch baat
Positioning
• User positioning
Mc Donalds
• Differenciate on-
Q: quality
S: service
C: cleanliness
V: value
• Advertise as a family restaurant.
• Differenciate on-
Channel: delivery in
30 min.
• Advertisements shows aggressive personality type
Domino’s
THANK YOU