Dissertation Rough Draft

7/29/2019 Dissertation Rough Draft

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CROSS CULTURAL MARKETING IN THE FAST

FOOD INDUSTRY

SUBMITTED BY:

RICHA BHALLA

(A1802010121)

FACULTY GUIDE:

MR. ARCHISMAN SEN

DISSERTATION REPORT SUBMITTED TOWARDS THE PARTIAL

FULFILLMENT OF POST GRADUATE DEGREE IN INTERNATIONAL

BUSINESS

AT

AMITY INTERNATIONAL BUSINESS SCHOOL, NOIDA

AMITY UNIVERSITYUTTAR PRADESH

APRIL, 2012


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CERTIFICATE OF ORIGIN

This is to certify that RICHA BHALLA, a student of Post Graduate Degree in MBA-IB, Amity

International Business School, Noida has worked on Cross Cultural Marketing in the Fast

Food Industry.

This dissertation report has the requisite standard for the partial fulfillment the Post Graduate

Degree in International Business. To the best of our knowledge no part of this report has been

reproduced from any other report and the contents are based on original research.

Mr. Archisman Sen Richa Bhalla

AIBS Faculty MBA(IB)-Section F


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ACKNOWLEDGEMENT

I express my sincere gratitude to my guide, Mr. Archisman Sen for his able guidance,

continuous support and cooperation throughout my project, without which the present work

would not have been possible. He has given invaluable suggestions so as to chisel and chasten

the angularities in my project

I would also extend my gratitude to my mentorsof Amity International Business School for their

constant support and priming me through their valuable guidance during my academic course.

I would also like to thank the faculty members of Amity International Business School for their

support whenever needed. Finally, I also extend my heartfelt thanks to the institute for allowing

me to conduct this research.

Richa Bhalla


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TABLE OF CONTENTS

S.NO. TOPIC PAGE NO.

1. Executive Summary2. Literature Review

3. Objectives of the Study

4. Material & Methods

5. The Case of McDonalds

6. How McDonalds Evolved in India

7. The 7 Ps of McDonalds

8. Pestle Analysis of Mc Donalds

9. SWOT Analysis of McDonalds

10. Famous McDonalds Campaigns in India

11. Questionnaire

12. Analysis of the Survey

13.

14.

15.


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EXECUTIVE SUMMARY

This project is aimed towards studying and analyzing the cross cultural marketing strategies

adopted by marketers in the fast food industry in different parts of the world.

In 2006, the global fast food market grew by 4.8% and reached a value of 102.4 billion and a

volume of 80.3 billion transactions. In India alone the fast food industry is growing by 41% a

year. McDonald's is located in 126 countries and on 6 continents and operates over 31,000

restaurants worldwide. On January 31, 1990 McDonalds opened a restaurant in Moscow, and

broke opening day records for customers served. The Moscow restaurant is the busiest in the

world. The largest McDonalds in the world is located in Orlando, Florida, USA.

There are numerous other fast food restaurants located all over the world. Burger King has more

than 11,100 restaurants in more than 65 countries. KFC is located in 25 countries. Subway is one

of the fastest growing franchises in the world with approximately 39,129 restaurants in 90

countries as of May 2009, the first non-US location opening in December 1984 in Bahrain. Pizza

Hut is located in 97 countries, with 100 locations in China. Taco Bell has 278 restaurants located

in 14 countries besides the United States.

The purpose of this study is study how the cultural differences among consumers play an

important role in the development of effective marketing and branding strategies. Culture is a

significant factor that influences buying behavior in consumer markets. Cross cultural studies

provides empirical evidence of convergence and divergence in consumer behavior. In todaysworld, culture plays an important and significant role in the ethical attitudes of marketing

managers; different cultural backgrounds may influence individuals' ethical reasoning.

This project focuses on the Indian Fast Food Industry primarily and analyses how the tastes and

preferences of consumers has been converging due to globalisation. We have taken the case of

the global fast food giant McDonalds and studied the different marketing strategies they

adopted to cater to the Indian customer. Marketing strategies in terms of change in food menu,

hygiene, marketing their products and services, customer satisfaction, etc. It was successful in

their approach of Think Global, ActLocal.

In this paper we studied the consumer perception about the brand McDonalds on various

aspects, for instance, the marketing strategies, the tastes and preferences, how much consumers

trust this brand. Questionnaires were used as research tool to identify expectations of customers.

People from all age groups and cultural backgrounds were a part of the survey.
http://en.wikipedia.org/wiki/McDonald%27shttp://en.wikipedia.org/wiki/Moscowhttp://en.wikipedia.org/wiki/Orlando,_Floridahttp://en.wikipedia.org/wiki/USAhttp://en.wikipedia.org/wiki/Burger_Kinghttp://en.wikipedia.org/wiki/KFChttp://en.wikipedia.org/wiki/Subway_(restaurant)http://en.wikipedia.org/wiki/Bahrainhttp://en.wikipedia.org/wiki/Taco_Bellhttp://en.wikipedia.org/wiki/Taco_Bellhttp://en.wikipedia.org/wiki/Bahrainhttp://en.wikipedia.org/wiki/Subway_(restaurant)http://en.wikipedia.org/wiki/KFChttp://en.wikipedia.org/wiki/Burger_Kinghttp://en.wikipedia.org/wiki/USAhttp://en.wikipedia.org/wiki/Orlando,_Floridahttp://en.wikipedia.org/wiki/Moscowhttp://en.wikipedia.org/wiki/McDonald%27s


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Some of the Key Findings were, McDonalds was an all time favourite for maximum people that

were surveyed. Factors such as Price, Quality, Cleanliness, Service, Advertising & Promotions

were taken into consideration and people were asked to rate these factors. Now since, a majority

of Indian customers are vegetarian, McDonalds had to redesign their menu to cater to the

mindsets of the purely vegetarian customers and they were successful in doing this. The service

provided by McDonalds was also customized to suit the Indian customer. Hence, McDonalds

was successful in positioning itself as a promoter of Indian family values and culture.


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LITERATURE REVIEW

Fast Food IndustryOverview

A fast food restaurant, also known as a Quick Service Restaurant or QSR within the industry

itself, is a specific type ofrestaurant characterized both by its fast food cuisine and by

minimal table service. Food served in fast food restaurants typically caters to a "meat-sweet diet"

and is offered from a limited menu; is cooked in bulk in advance and kept hot; is finished and

packaged to order; and is usually available ready to take away, though seating may be provided.

Fast food restaurants are usually part of a restaurant chain or franchise operation, which

provisions standardized ingredients and/or partially prepared foods and supplies to each

restaurant through controlled supply channels. The term "fast food" was recognized in

a dictionaryby MerriamWebsterin 1951.

Arguably the first fast food restaurants originated in the United States with A&W in 1916

and White Castle in 1921. Today, American-founded fast food chains such as McDonald's, KFC,

Dominos Pizza, Subway, etc. are multinational corporations with outlets across the globe.

Variations on the fast food restaurant concept include fast casual restaurants and catering trucks.

Fast casual restaurants have higher sit-in ratios, and customers can sit and have their orders

brought to them. Catering trucks often park just outside worksites and are popular with factory

workers.

McDonald's, a noted fast food supplier, opened its first franchised restaurant in the US in 1955

(1974 in the UK). It has become a phenomenally successful enterprise in terms of financial

growth, brand-name recognition, and worldwide expansion. Ray Kroc, who bought the

franchising license from the McDonald brothers, pioneered many concepts which emphasized

standardization. He introduced uniform products, identical in all respects at each outlet, to

increase sales. At the same time, Kroc also insisted on cutting food costs as much as possible,

eventually using the McDonald's Corporation's size to force suppliers to conform to this ethos.

Other prominent international fast food companies include Burger King, the number

two hamburgerchain in the world, known for promoting its customized menu offerings (Have it

Your Way).

Multinational corporations typically modify their menus to cater to local tastes and most

overseas outlets are owned by native franchisees. McDonald's in India, for example, uses lamb

rather than beef in its burgers because Hinduism traditionally forbids eating beef. In Israel some

McDonald's restaurants are kosherand respect the Jewish Shabbat; there is also
http://en.wikipedia.org/wiki/Restauranthttp://en.wikipedia.org/wiki/Fast_foodhttp://en.wikipedia.org/wiki/Table_servicehttp://en.wikipedia.org/wiki/Western_pattern_diethttp://en.wikipedia.org/wiki/Chain_store#Restaurant_chainshttp://en.wikipedia.org/wiki/Dictionaryhttp://en.wikipedia.org/wiki/Merriam%E2%80%93Websterhttp://en.wikipedia.org/wiki/Merriam%E2%80%93Websterhttp://en.wikipedia.org/wiki/Merriam%E2%80%93Websterhttp://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/A%26Whttp://en.wikipedia.org/wiki/White_Castle_(restaurant)http://en.wikipedia.org/wiki/McDonald%27shttp://en.wikipedia.org/wiki/KFChttp://en.wikipedia.org/wiki/Multinational_corporationhttp://en.wikipedia.org/wiki/Fast_casual_restauranthttp://en.wikipedia.org/wiki/Mobile_cateringhttp://en.wikipedia.org/wiki/McDonald%27shttp://en.wikipedia.org/wiki/Burger_Kinghttp://en.wikipedia.org/wiki/Hamburgerhttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Hinduismhttp://en.wikipedia.org/wiki/Israelhttp://en.wikipedia.org/wiki/Kashruthttp://en.wikipedia.org/wiki/Jewhttp://en.wikipedia.org/wiki/Shabbathttp://en.wikipedia.org/wiki/Shabbathttp://en.wikipedia.org/wiki/Jewhttp://en.wikipedia.org/wiki/Kashruthttp://en.wikipedia.org/wiki/Israelhttp://en.wikipedia.org/wiki/Hinduismhttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Hamburgerhttp://en.wikipedia.org/wiki/Burger_Kinghttp://en.wikipedia.org/wiki/McDonald%27shttp://en.wikipedia.org/wiki/Mobile_cateringhttp://en.wikipedia.org/wiki/Fast_casual_restauranthttp://en.wikipedia.org/wiki/Multinational_corporationhttp://en.wikipedia.org/wiki/KFChttp://en.wikipedia.org/wiki/McDonald%27shttp://en.wikipedia.org/wiki/White_Castle_(restaurant)http://en.wikipedia.org/wiki/A%26Whttp://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/Merriam%E2%80%93Websterhttp://en.wikipedia.org/wiki/Dictionaryhttp://en.wikipedia.org/wiki/Chain_store#Restaurant_chainshttp://en.wikipedia.org/wiki/Western_pattern_diethttp://en.wikipedia.org/wiki/Table_servicehttp://en.wikipedia.org/wiki/Fast_foodhttp://en.wikipedia.org/wiki/Restaurant


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a kosherMcDonald's in Argentina. In Egypt, Morocco, Saudi Arabia, Malaysia, and Singapore,

all menu items are halal.

Indian Fast Food Industry

The Indian market has been growing and evolving at a very fast pace. Constantly experimenting

with the tastes of consumers by mixing western and 'desi' menus, fast food industry has seen a

rapid growth in last few years, thanks to high disposable incomes and greater exposure to

multiple cuisines. A lot of Indians are travelling abroad experiencing changes in lifestyle and are

keen on experimenting with food.

When western fast-food chains such as McDonalds,Dominos Pizzaand KFC initially openedtheir doors in India in the mid-1990s, they struggled to compete with spicy street food and theelaborate home-cooked meals Indian women regularly prepared for their families. But more

hectic schedules, rising incomes and demographic realitiesabout 60 per cent of Indians areunder 30 years oldhave created new appetites among Indian consumers.

Now, sales at western fast-food chains, and local rivals, are taking off, growing at an average of28 per cent a year, as dining out moves from being a special occasion, to a routine part ofIndians busier schedules. Indians spent an estimated $1.3bn on dining out in chain restaurantsin 2009, of which about 400m was accounted for by fast food, according to research groupEuromonitor.

It is not just Indias biggest urban agglomerations, but smaller, second-tier cities where suchrestaurants are finding growing favour. The consumer is beginning to recognise that quick-

service restaurants mean quality and value for money.

McDonald's made its India debut in 1996 with one outlet at Basant LoK in Delhi and at present,

it has 211 restaurants of which 105 are in North & East India and 106 in West & South

India. Apart from metros, McDonald's is fast reaching rural areas as well, as there are 14 outlets

in Haryana, 11 in Punjab and 28 in Uttar Pradesh. With ever increasing pool of working

population, nuclear families and a progressive middle class, the demand for fast food already on

the rise will see a tremendous growth in future also.

Dominos Pizza is growing at a blistering pace, with 364 outlets in 55 cities, all run by Dominos

Indian franchisee, Jubilant Foodworks, in New Delhi. Jubilant, which raised $71m in an initialpublic offering last year, increased sales by 61 per cent from April to December, compared to theprevious year, buoyed by 54 new stores opened in the period.

Last month, US-based Dunkin Donuts, owned by the private equity firms Carlyle Group,Thomas H. Lee and Bain, announced a partnership with Jubilant to bring its deep-fried productsto India.
http://en.wikipedia.org/wiki/Kashruthttp://en.wikipedia.org/wiki/Argentinahttp://en.wikipedia.org/wiki/Egypthttp://en.wikipedia.org/wiki/Moroccohttp://en.wikipedia.org/wiki/Saudi_Arabiahttp://en.wikipedia.org/wiki/Malaysiahttp://en.wikipedia.org/wiki/Singaporehttp://en.wikipedia.org/wiki/Halalhttp://markets.ft.com/tearsheets/performance.asp?s=us:DPZhttp://markets.ft.com/tearsheets/performance.asp?s=us:DPZhttp://markets.ft.com/tearsheets/performance.asp?s=us:DPZhttp://www.ft.com/cms/s/0/f57b7fe4-4026-11e0-811f-00144feabdc0.html#axzz1GaTPtYzYhttp://www.ft.com/cms/s/0/f57b7fe4-4026-11e0-811f-00144feabdc0.html#axzz1GaTPtYzYhttp://markets.ft.com/tearsheets/performance.asp?s=us:DPZhttp://en.wikipedia.org/wiki/Halalhttp://en.wikipedia.org/wiki/Singaporehttp://en.wikipedia.org/wiki/Malaysiahttp://en.wikipedia.org/wiki/Saudi_Arabiahttp://en.wikipedia.org/wiki/Moroccohttp://en.wikipedia.org/wiki/Egypthttp://en.wikipedia.org/wiki/Argentinahttp://en.wikipedia.org/wiki/Kashrut


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Subway is also gaining popularity in India, with 199 outlets, and Starbucks is gearing up for anIndian market launch this year.

Hardcastle Restaurants, one of two Indian partners to McDonalds, is buying out the UShamburger chains stake in the 50-50 joint venture that operates the chain in southern and

western India, paving the way for accelerated expansion. Hardcastle aims to open 30McDonalds outlets this year.

Western fast-food brands have gone through a tough learning process to cater to Indian tastes.Traditional menus were spiced up, vegetarian options enhanced, and low price, entry-level itemsdeveloped to make the restaurants more accessible in a highly price-sensitive market. Suchefforts have won the loyalties of consumers.

While fast-food chains have finally adapted their recipes to local tastes, they face other trials.Finding suitable real estate in crowded Indian cities is difficult. Real estate is the single biggestchallenge. Indian rivals also pose stiff competition. Caf Coffee Day, a coffee chain based in

Bangalore, has around 1,000 outlets, and a range of food offerings.

Near McDonalds at Phoenix Mills Mumbai, cheery food stalls like Dosa Hut, On a Roll, ThaiChi, do brisk business serving up Indian and Asian disheswhich for many Indians are stillmore appealing than spiced up versions of Western fare.

Cross-Cultural Marketing

Culture is defined as the sum of learned beliefs, values and customs that serve to direct

consumer behaviour in a particular country market. Culture is made up of beliefs, values andcustoms that are often embedded in a society and have noticeable differences among different

countries.

Cultural values are important aspects of the self of consumers. As businesses have become more

and more global, the cultural differences among consumers play an important role in the

development of effective marketing and branding strategies. When managers want to understand

consumers behavior in different countries it is necessary that they compare the cultures to

discover how these national cultures are different from, or similar to, each other before they

carry out their marketing strategies. This is because cross-cultural phenomenon rises as a result

of the different cultural components existing among consumers in different countries. Culture isa significant factor that influences buying behavior in consumer markets.

Cultural differences lead to different consumer responses across countries. Empirical evidence

has shown that, no matter how a company sells products or offers its services in another country;

the marketing strategy will be influenced by the cultural environment of the specific country and

region. Thus, todays body of knowledge suggests that marketing managers should at the very

least, be cautious in ensuring that they understand the cultural differences when deciding on the
http://markets.ft.com/tearsheets/performance.asp?s=us:SBUXhttp://www.ft.com/cms/s/0/cc5f9a7c-1dbd-11e0-aa88-00144feab49a.html#axzz1GaTPtYzYhttp://www.ft.com/cms/s/0/cc5f9a7c-1dbd-11e0-aa88-00144feab49a.html#axzz1GaTPtYzYhttp://markets.ft.com/tearsheets/performance.asp?s=us:SBUX


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kind of products to put out in the market, as well as when developing marketing activities and

branding strategies.

The cross cultural variations tend to implicitly or explicitly affect the branding strategies that

companies adopt. Due to the fact that brand positioning elements interact with various variables

of culture, firms need an adaptation framework in reference to the culture in which they operate.This interaction demands an adaptive response from the brand.

Consumers worldwide are not the same, and the difference in consumer behavior between

countries has intensified over the years. Because all aspects of consumer behavior are culture-

bound, and not subject merely to environmental factors but integrated in all of human behavior,

there is an increased need to identify and understand this integration and its impact on marketing

management. Culture and behavior of consumers explains the myths that surround marketing in

different countries. Cross cultural studies provides empirical evidence of convergence and

divergence in consumer behavior. The concept of culture also covers various psychological and

sociological aspects of human behavior used for explaining consumer behavior.

In todays world, culture plays an important and significant role in the ethical attitudes of

marketing managers; different cultural backgrounds may influence individuals' ethical reasoning.

Furthermore, each culture perceives the world from a very different point of view. These cultural

differences make is necessary, now more than ever, that business people consider these ethical

attitudes and cultural differences in this new era of globalization.


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MATERIAL AND METHODS

I. Study DesignIt will be based on the Historical collection of data & analysis of thereports with a Sampling design technique taking into consideration the performance &

objectives associated with the Top fast food chains in India to test the Hypothesis on the

same.

II. Setting The Research work will be conducted within the premises of the Campus; witha sufficient amount of data gathering based on company reports, research reports and

information gathered from the web sites

III. Duration of the Study - The duration of the study will be for 8 weeks right from datagathering to analysis & Interpretation.

IV. Sample Size - The sample size for this study will be the top Fast Food chains in India:McDonalds. A total sample of 200 would be taken for the research

V. The sampling employed will be stratified whereby observations would be classifiedseparately in different buckets depending on the Company being analyzed at the given

point of time.

VI. Data collection procedureIt will be exploratory research based on the variablesassigned by way of Secondary research sources.

VII. The sampling technique to be used is non probabilistic sampling A well structured

questionnaire would be prepared taking into account all aspects ranging from gender,

location, salary , comparative ranking with respect to different players in the market.


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The Case ofMcDonalds

McDonald's Corporation is the world's largest chain ofhamburgerfast food restaurants, serving

around 68 million customers daily in 119 countries. The company, headquartered in the UnitedStates began in 1940 as a barbecue restaurant operated by the eponymous Richard and Maurice

McDonald. A McDonald's restaurant is operated by either a franchisee, an affiliate, or the

corporation itself. The corporation's revenues come from the rent, royalties and fees paid by the

franchisees, as well as sales in company-operated restaurants. McDonald's revenues grew 27

percent over the three years ending in 2007 to $22.8 billion, and 9 percent growth in operating

income to $3.9 billion. The business began in 1940, with a restaurant opened by brothers Richard

and Maurice McDonald in San Bernardino, California.

Marketing Strategies

1. Speedee Service System - Their introduction of the "Speedee Service System" in 1948furthered the principles of the modern fast-food restaurant that the White Castle hamburger

chain had already put into practice more than two decades earlier. The original mascot of

McDonald's was a man with a chef's hat on top of a hamburger shaped head whose name was

"Speedee." Speedee was eventually replaced with Ronald McDonaldby 1967 when the

company first filed a U.S. trademark on a clown shaped man having puffed out costume legs.

2. Drive-In Restaurant Services - McDonald's first filed for a U.S. trademark on the name

"McDonald's" on May 4, 1961, with the description "Drive-In Restaurant Services," which

continues to be renewed through the end of December 2009. Drive-Thru, Auto-Mac, Pay and

Drive, or "McDrive" as it is known in many countries, often has separate stations for placing,paying for, and picking up orders, though the latter two steps are frequently combined. In

some countries, "McDrive" locations nearhighways offer no counter service or seating. In

contrast, locations in high-density city neighborhoods often omit drive-through service.

There are also a few locations, located mostly in downtown districts that offer Walk-Thru

service in place of Drive-Thru.
http://en.wikipedia.org/wiki/Hamburgerhttp://en.wikipedia.org/wiki/Fast_food_restauranthttp://en.wikipedia.org/wiki/Richard_and_Maurice_McDonaldhttp://en.wikipedia.org/wiki/Richard_and_Maurice_McDonaldhttp://en.wikipedia.org/wiki/Franchiseehttp://en.wikipedia.org/wiki/Affiliate_(commerce)http://en.wikipedia.org/wiki/Restauranthttp://en.wikipedia.org/wiki/Richard_and_Maurice_McDonaldhttp://en.wikipedia.org/wiki/Richard_and_Maurice_McDonaldhttp://en.wikipedia.org/wiki/San_Bernardino,_Californiahttp://en.wikipedia.org/wiki/Fast_food#Overviewhttp://en.wikipedia.org/wiki/White_Castle_(restaurant)http://en.wikipedia.org/wiki/Ronald_McDonaldhttp://en.wikipedia.org/wiki/Highwayhttp://en.wikipedia.org/wiki/Drive-throughhttp://en.wikipedia.org/wiki/Drive-throughhttp://en.wikipedia.org/wiki/Highwayhttp://en.wikipedia.org/wiki/Ronald_McDonaldhttp://en.wikipedia.org/wiki/White_Castle_(restaurant)http://en.wikipedia.org/wiki/Fast_food#Overviewhttp://en.wikipedia.org/wiki/San_Bernardino,_Californiahttp://en.wikipedia.org/wiki/Richard_and_Maurice_McDonaldhttp://en.wikipedia.org/wiki/Richard_and_Maurice_McDonaldhttp://en.wikipedia.org/wiki/Restauranthttp://en.wikipedia.org/wiki/Affiliate_(commerce)http://en.wikipedia.org/wiki/Franchiseehttp://en.wikipedia.org/wiki/Richard_and_Maurice_McDonaldhttp://en.wikipedia.org/wiki/Richard_and_Maurice_McDonaldhttp://en.wikipedia.org/wiki/Fast_food_restauranthttp://en.wikipedia.org/wiki/Hamburger


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How McDonalds Evolved in India

McDonald's India launched in 1996 when Mr. Amit Jatia joined the McDonalds family March

1995 as MD, Hardcastle Restaurants Pvt. Ltd. Today, he is spearheading McDonalds in West &

South India. McDonald's India was set up as a 50:50 joint-venture between McDonald's at a

global level and regional Indian partners such as Hardcastle Restaurants Private Limited inwestern India, and Connaught Plaza Restaurants Private Limited in northern India.

The first Indian McDonald's outlet opened in Mumbai in 1996. Since then, outlets have begun

trading in metropolitan and Tier II towns across the country. Now with over 15 years of

leadership in food service retailing India, McDonalds now has a network of over 235 restaurants

across the country.

The starting point for McDonald's India was to change Indian consumers' perceptions, which

associated it with being 'foreign', 'American', 'not knowing what to expect' and 'discomfort with

the new or different'. McDonald's wanted to position itself as 'Indian' and a promoter of 'familyvalues and culture', as well as being 'comfortable and easy'. Simultaneously, the brand wanted to

communicate that, operationally, it was committed to maintaining a quality service, cleanliness

and offering value for money.

Challenges in Entering Indian Markets

Regiocentricism: Re-engineering the menu: McDonalds has continually adapted to thecustomers tastes, value systems, lifestyle, language andperception. Globally McDonalds

was known for its hamburgers, beef and pork burgers. Most Indians are barred by religionnot to consume beef or pork. To survive, the company had to be responsive to the Indiansensitivities. So McDonalds came up with chicken, lamb and fish burgers to suite the Indianpalate.

The vegetarian customer: India has a huge population of vegetarians. To cater to this

customer segment, the company came up with a completely new line of vegetarian items

like McVeggie burger and McAlooTikki. The separation of vegetarian and non-vegetarian

sections is maintained throughout the various stages.

Key for Truly Indian Products

a) Local Sourcing: McDonald's India is committed to sourcing almost all of its products from

within the country. Prior to its launch, the company invested six years to develop its unique

cold chain, which has brought about a veritable revolution in food handling, immensely

benefiting the farmers at one end and enabling customers to get the highest quality food

products, absolutely fresh and at a great value. McDonald's India today has developed local


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Indian businesses, which can supply the highest quality products required for its Indian

operations.

b) Respect for Indian Customers and Culture: McDonald's worldwide is well known for the

high degree of respect to the local culture of each market it operates in. In line with this

respect for local culture, India is the first country in the world where McDonald's does not

offer any beef or pork items. McDonald's has developed a menu especially for India with

vegetarian selections to suit the Indian palate and has also re-engineered its operations to

address the special requirements of vegetarians. Special care is taken to ensure that all

vegetable products are prepared separately, using dedicated equipment and utensils. This

separation of vegetarian and non-vegetarian food products is maintained throughout the

various stages of procurement, cooking and serving. So much so that the mayonnaise and soft

serves are also 100% vegetarian and McDonald's uses only vegetable oil as a cooking

medium in India.

Segmentation, Targeting and Positioning

McDonalds uses demographic segmentation strategy with age as the parameter. The main target

segments are children, youth and the young urban family.

As shown above, kids reign supreme in FMCG purchase related to food products. So to attract

children McDonalds has Happy Meal with which toys ranging from hot wheels to various Walt

Disney characters are given (the latest in this range is the toys of the movie Madagascar). For

this, they have a tie-up with Walt Disney. At several outlets, it also provides special facilities like

Play Place where children can play arcade games, air hockey, etc. This strategy is aimed at

making McDonalds a fun place to eat. This also helps McDonalds to attract the young urban

families wanting to spend some quality time while their children have fun at the outlet.

% of Kids who influence what FMCG brand their

family buys

71%

59%

52%

Biscuits Bur ers & Pizzas Fruit Juices


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THE 7 P's OfMcDonalds

PRODUCT: How should the company design, manufacture the product so that itenhances

the customer experience?

Product is the physical product or service offered to the consumer. Product includes certain

aspects such as packaging, guarantee, looks etc. This includes both the tangible and the non-

tangible aspects of the product and service.

McDonalds product portfolio primarily comprises of vegetarian and non-vegetarian burgers.

Products like McAloo Tikki burger, Veg Pizza McPuff and Chicken McGrill burger were

formulated and introduced using spices favored by Indians. The menu development team hasbeen responsible for special sauces which use local spices do not contain beef and pork. Other

products do not contain eggs and are 100% vegetarian. The Indianized products have been so

well received that we even export McAloo Tikki burger and Veg. Pizza McPuff to the Middle

East.

McDonalds brings with it a globally reputed brand, world class food quality and excellent

customer specific product features.

PRICE: What should be the Pricing Strategy?

Pricing includes the list price, the discount functions available, the financing optionsavailable

etc. It should also take into the consideration the probable reaction from the competitor to the

pricing strategy. This is the most important part of the marketing mix as this is the only part

which generates revenue. All the other three are expenses incurred. The price must take into

consideration the appropriate demand-supply equation.


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McDonalds came up with a very catchy punch line Aap ke zamane mein, baap ke zamane kedaam. This was to attract the middle and lower class consumers and the effect can clearly be

seen in the consumer base McDonalds has now. McDonalds has certain value pricing

and bundling strategies such as happy meal, combo meal, family meal etc to increase overall

sales volumes.

McDonalds vegetarian menu is priced between Rs 25 and Rs 60 while the non vegetarian menu

is priced between Rs 30 and Rs 80. Other menu items like potato wedges are priced at Rs 20, soft

serves at Rs 35, mc swirl at Rs 12, medium soft drinks at Rs 20 and medium shakes at Rs 45.

McDonalds has certain value pricing and bundling strategies such as happy meal, combo meal,

family meal etc to increase overall sales volumes.

PROMOTION: What is the suitable strategy and channels for promotion of the product?

The various promotion channels being used by McDonalds to effectively communicate

the product information are given above. A clear understanding of the customer value helps

decide whether the cost of promotion is worth spending.

There are three main objectives of advertising forMcDonalds are to make people aware of an

item, feel positive about it and remember it. The right message has to be communicated to the right

audience through the right media. McDonalds does its promotion through television, hoardings

and bus shelters. They use print ads and the television programmes are also an important

marketing medium for promotion.


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At McDonalds the prime focus was on targeting children. Happy meals too were targeted at

children, and small toys were given along with the meal. Apart from this, various schemes for

winning prices by way of lucky draws and also scratch cards are given when an order is placed

on the various mean combos. In fact, the various economic meals and value meals also signal to

the customer that buying separate items results in greater value for money for the customer.

Some of the most famous marketing campaigns of McDonalds are:

You Deserve a break today, so get up and get away- To McDonalds

Aap ke zamane mein ,baap ke zamane ke daam.

Food, Folks, and Fun

Im loving it.

PLACE: Where should be the product be available and the role of distribution channels?

The place mainly consists of the distribution channels. It is important so that the product is

available to the customer at the right place, at the right time and in the right quantity. Nearly

50% of U.S.A is within a 3 minute drive from a McDonalds outlet.

There is a certain degree of fun and happiness that a customer feels each time he dines at

McDonalds. There are certain value propositions that McDonalds offer to its

customers based on their needs. McDonalds offers hygienic environment, good ambience

and great service. There are certain dedicated areas for children where they can play while their

parents can have some quality time together.


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McDonalds outlets are very evenly spread throughout the NCR region. McDonalds does not

offer home delivery but its outlets are very readily accessible. McDonalds also offers take away

drive through facilities.

PEOPLE: How to converge the benefits of internal and external marketing?

McDonalds understands the value of both its employees and its customers. It understands the

fact that a happy employee can serve well and result in a happy customer. McDonald s

continuously doesInternal Marketing.This is important as it must precede external marketing.

This includes hiring, training and motivating able employees. This way they serve customers

well and the final result is a happy customer. The employees in McDonalds have a standard

uniform and McDonalds specially focuses on friendly and prompt service to its customers from

their employees. The punch line Imloving it is an attempt to show that the employees are

loving their work at McDonalds and will love to serve the customers

PROCESS:

The food manufacturing process at McDonalds is completely transparent i.e. the whole process

is visible to the customers. In fact, the fast food joint allows its customers to view and judge the

hygienic standards at McDonalds by allowing them to enter the area where the process takes

place. The customers are invited to check the ingredients used in food.

PHYSICAL EVIDENCE:

McDonalds focuses on clean and hygienic interiors of is outlets and at the same time the

interiors are attractive and the fast food joint maintains a proper decorum at its joints.


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PESTLE ANALYSIS OF MC DONALDS

Pestle is an analysis of the external macro environment in which a business operates. Pestle

stands for political, economic, social, technology, and environmental factors.

A. Political Factors

The international operations of McDonalds are highly influenced by the individual state policies

enforced by each government. For instance, there are certain groups in Europe and the United

States that clamor for state actions pertaining to the health implications of eating fast food. They

have indicated that harmful elements like cholesterol and adverse effects like obesity are

attributable to consuming fast food products.

On the other hand, the company is controlled by the individual policies and regulations of

operations. Specific markets focus on different areas of concern such as that of health, workerprotection, and environment. All these elements are seen in the government control of the

licensing of the restaurants in the respective states. For instance, there is an impending legal

dispute in the McDonalds franchise in India where certain infringement of rights and violation

of religious laws pertaining to the contents of the food. The existence of meat in their menus in

India is apparently offensive to the Hindu religion in the said market. There are also other studies

that points to the infringement of McDonalds Stores with reference to the existing employment

laws in the target market. Like any business venture, these McDonalds stores have to contend

with the issues of employment procedures as well as their tax obligations so as to succeed in the

foreign market.

B. Economic Factors

Organisations in the fast food industry are not excused from any disputes and troubles.

Specifically, they do have their individual concerns involving economic factors. Branches and

franchises of fast food chains like McDonalds has the tendency to experience hardship in

instances where the economy of the respective states is hit by inflation and changes in the

exchange rates. The customers consequently are faced with a stalemate of going over their

individual budgets whether or not they should use up more on these foreign fast food chains.(2004) Hence, these chains may have to put up with the issues of the effects of the economic

environment. Particularly, their problem depends on the response of the consumers on these

fundamentals and how it could influence their general sales. In regarding the operations of the

company, food chains like McDonalds tend to import much of their raw materials into a specific

territory if there is a dearth of supply. Exchange rate fluctuations will also play a significant role

in the operations of the company.


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As stated in the paragraph above, McDonald stores have to take a great deal of consideration

with reference to their microenvironment. The companys international supply as well as the

existing exchange rates is merely a part of the overall components needed to guarantee success

for the foreign operations of McDonalds. Moreover, it is imperative that the company be

cognizant of the existing tax requirements needed by the individual governments on which they

operate. This basically ensures the smooth operations of the McDonalds franchises. In the same

regard, the company will also have to consider the economic standing of the state on which they

operate on. The rate at which the economy of that particular state grows determines the

purchasing power of the consumers in that country. Hence, if a franchise operates in a

particularly economically weak state, hence their products shall cost higher than the other

existing products in the market, then these franchises must take on certain adjustments to

maintain the economies of scale.

C. Socio-Cultural Factors

Articles on the international strategies of McDonalds seem to function on several fields to

guarantee lucrative returns for the organisation. To illustrate, the organisation improves on

establishing a positive mind-set from their core consumers. McDonalds indulge a particular

variety of consumers with definite types of personalities. It has also been noted that the company

have given the markets such as the United Kingdom, an option with regards to their dining needs

pointed out that McDonalds has launched a sensibly valued set of food that tenders a reliable

level of quality for the respective market where it operates. Additionally, those who are aged just

below the bracket of thirty-five are said to be the most frequent consumers of McDonaldsfranchises.

The multifaceted character of business nowadays is reflected in the harsh significance of the

information on the subject of the existing market. This procedure is essentially identified in the

field as market research. Information with regards to the appeal and potential fields of the market

would double as obstructions to the success of the company if this area of the operations is

neglected. In the case of McDonalds they establish a good system in determining the needs of

the market. The company uses concepts of consumer behaviour product personality and

purchasing decisions to its advantage. It is said to have a major influence on the understanding of

the prospective performance of the organisation in a particular market. (2000)


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D. Technological Factors

McDonalds generates a demand for their own products. (2006) The companys key tool for

marketing is by means of television advertisements. There are similarly some claims that

McDonalds are inclined to interest the younger populations more. The existence of play spots as

well as toys in meals offered by the company shows this actuality. Other demonstration of such a

marketing strategy is apparent in the commercials of they use. They employ animated depictions

of their characters like Grimace and Hamburglar. Other advertising operations employ popular

celebrities to promote their products. The like has become endorsers for McDonalds worldwide

loving it campaign. Moreover, the operations of McDonalds have significantly been infused

with new technology. Elements like the inventory system and the management of the value chain

of the company allows for easy payments for their suppliers and other vendors which the

individual stores in respective markets deal with. The integration of technology in the operations

of McDonalds tend to add value to their products. Basically, this is manifested in the

improvements on its value chain. The improvement of the inventory system as well as its supplychain allows the company to operate in an international context.

E. Legal

As a certified fast food operator, there are many regulations and procedures that McDonalds

should follow. For example is the Halal certification that becomes a concern to Muslim

consumers. McDonalds should protect its integrity and consumer confidence by ensuring all

materials and process are as claimed or must followed.

Other legal requirement that the business owner should follow as stipulated in laws are such asoperating hours, business registration, tax requirement, labor and employment laws and quality

& environment certification (such as ISO) in which the outlet has been certified. The legal

requirement is important because the offenders will be fined or have their business prohibited

from operating which can be disastrous.

F. Environment

As one of world largest consumer of beef, potatoes and chicken, McDonalds always had beencritics for world environmentalist. This is because high consumption of beef causing the green

house effect by methane gasses coming from the cows ranch. Large scale plantation has effect

the environment and lost of green forest opening for plantation activities. Vegetarian

environmentalist criticizes the fast-food giant for cruelty to animals and slaughtering. In Japan,

once McDonalds want to introduce whale burger causing uproar because whales are endangered

species. Before using paper packaging, McDonalds has also been criticized for being insensitive


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to pollution because using polystyrene based packaging for its foods. Imagine millions of people

purchase from fast food operator and how is the impact to world environment by throwing away

those hard to recycle packaging. Our world is getting concern on environment issue and business

operating here should not just care for profit, but careful usage of world resources for sustainable

development and care for environment safety and health for our future generation. Critics and

concern from all public or activist should be review and support if necessary to ensure we play

our social responsibility better.

Importance of PLC in McDonalds

The requirements of customers change over time and thus the product offering has to be changed

accordingly. What is the fashion today may be out of market within few weeks. Thus continuous

innovation is required. To counter these changes McDonalds has continuously introduced new

products and has phased out the old ones which were at the decline stage of their PLC. Theintroduction is timed such that the new product does not cannibalize the product already in the

maturity or growth stage. Thus the secret lies in getting profits with different products in the

different stages of the PLC.


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A perfect example of revitalizing a product in decline phase

The French Fries have been an important part of the McDonalds menu worldwide. But now it

was in the stage of decline and was actually not generating proper return. In an attempt to

revitalize it, a new variant was introduced namely Shake Shake Fries. This is being served with

chatpata spice mix which has resulted in increase in the sales of French Fries and has elevated it

from to the decline stage. This is used to delay the decline of a well established product which

has the potential of generating further revenue.

Competitors Analysis

McDonalds has been a leading fast-foods outlet in Vile Parle. But the outlet under study has

other competitors eating away into its market share. In addition to its traditional rivalsKFC,Dominos, Pizza Hutthe firm encounters new challenges. Jumbo King competes using a back-

to-basics approach of quickly serving up burgers for time-pressed consumers. On the higher end,

the KFC has become potent competitor in the quick service field, taking away customers

from McDonalds. Perhaps in the new environment, fast, convenient service is no longer enough

to distinguish the firm. At this time, a new critical success factor may be emerging: the need to

create a rich, satisfying experience for consumers. This brings us to service and experience

based competition which McDonalds can use for competitive advantage against Jumbo King.

Keeping in mind the demographics of the area, McDonalds has Wi-Fi enabled the outlet to cater

to the student community. It is for this overall Food,Fun & Folks experience that customers

pay a premium over the other competitors.

Competition also reduces product lifecycle; inducing firms to revise their products portfolios and

to revisit their product market to understand changing needs, expectations and perception of

different market segments. The new Mc Breakfast would be introduced between 6am to 11 am as

a pilot project. This would open up a whole new revenue stream forMcDonalds by tapping into

the student and working population by providing a healthy and wholesome breakfast. This


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shows how demographic shift can affect the demand for products and services. McDonalds has

anticipated these changes to maintain its competitive edge.

Two Dimensional Perceptual Mapping


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SWOT Analysis of Mc Donalds

Strengths

It has a strong global presence and is considered as a market leader in both the domestic as

well as the international markets.

It is a global brand that owns 31,000 restaurants serving in 120 countries. Of these 31,000

restaurants at least 14,000 restaurants are situated in the US.

It uses economies of scale for reducing the cost, as its huge expansion diversifies the overall

risk involved with the economic performance.

They own an active childrens charity by the nameThe Ronald McDonald House.

It takes steps in adjusting the Ingredients and product offerings in order to comply with the

upgraded health standards deemed necessary by the USDA.

It earns revenue by fast food sales as well as a property investor and a franchiser of

restaurants. It has a firm real estate portfolio.

It has branded menu items i.e. Big Mac, Chicken Mc Nuggets, which further promote

McDonalds.

It is recognized as one of the worlds most recognized logos.

It is recognized as a socially responsible and community oriented firm.

It adapts to the cultural differences regarding the region where the restaurant is set up.

It has located itself in major airports, cities, highways, tourist locations, theme parks.

It has an efficient food preparation style that follows the process in a systematic way.

It takes food safety extremely cautiously.

It was the first to provide the customers about nutrition facts.

Weaknesses

It uses advertising that mostly targets children.

High employee turn-over.

It has yet to accomplish going on the trend of organic food.

Price competition with the competitors resulting in low revenue.

Lack of innovative products.


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Opportunities

It can adapt to the needs of the societies and undergo an innovative product line.

It can research ways to use green energy and packaging which will work as a part of their

promotional effort as well as fulfill their social responsibility.

It can create new product offerings, use mobile text messaging to offer services that appeal toconsumers.

It can upscale some of its restaurant settings at luxurious locations to attract more customers.

It can provide optional items that are regarded to be the basis of allergy for some.

It can slow down the level of expansion in order to increase the profitability of the

organization.

Threats

The recession negatively impacts the holding position of the firm regarding its revenue

streams, even though they are quite diversified.

Foreign currency fluctuations are regarded to be a major problem as it uses standard pricing

for its food items.

More restaurants that are increasing their food offering and declining the price.

Health issues regarding the fast food chain.

Heavy investments on promotional campaigns which decrease the gaining of market share.

Some parents criticize the firms cradle to grave marketing strategy that focuses on kids,

who later on take it as a trend to their adulthood.

Sued various times for unhealthy food, usually with addictive additives.

Emergence of major fast food competitors: Burger King, Starbucks, Wendys, Taco Bell,

KFC.

The expansion has made the firm vulnerable to the slow economies of the other countries.


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FAMOUS MCDONALDS CAMPAIGNS IN INDIA

1. Chatpata McAloo Tikki BurgerMcDonalds India has come a long way in its brand communications and product innovationssince it began operations in India in 1996, a point reinforced by the latest ad campaign from

McDonalds India which highlights the tingling taste of the New Chatpata McAloo Tikki

Burger. The campaign will run across the country on a variety of media including television,

radio and OOH from 3rd to 31st January, 2009.

McDonalds India has established itself as an affordable brand that offers great eating

out options through its Happy Price Menu at Rs. 20. This fresh ad campaign showcases the

latest offering from McDonalds India which manages to tingle the taste buds by adding an

exciting chatpata desi touch to the much loved McAloo Tikki Burger.

The fun filled ad campaign created by Leo Burnett and produced by RDP Productions, shows

how strangers become friends and life becomes chatpata while enjoying the New McAloo

Tikki Burger. The Ad has elements of both youthfulness and fun. It starts with a young boy

winking at a girl who is at the counter placing the order and then the fun continues

Mr. Arvind Singhal, Head Marketing, McDonalds India (West and South) said "Life

Banaye Chatpati @ Rs 20 only is the key message which we intend to highlight through this

latest McAloo Tikki Burger campaign. The new campaign will surely leave the customers

saying I m lovin it.

Quote from Nitesh Tiwari, creative director Leo Burnett, We are always looking for small

ways in which we can add a little fun, a bit of zing to our every day mundane lives. This

simple insight is core to our idea for McDonalds new McAloo Tikki Burger: Its new

chatpata taste adds spice to your life just the way the protagonist in the film adds to his by

coming up with a unique way to break ice with a pretty girl

2. McDonalds Happy Price Menu CampaignLeo Burnett India has created a new set of commercials for McDonalds Happy Price Menu.

The menu was launched in 2004 and has since seen taglines like What your bahaana is?,

Purane zamaane ka daam and Bees mein full dhamaal. The thought for the latest lot is

"You don't need to think twice when McDonald's has burgers at only Rs 25".


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The first commercial, which is already on air, begins on a meeting in a conference room, to

which the boss has brought her dog. A young executive tosses the pooch a ball when the

bosss back is turned, but it accidentally goes out of the window and the dog bounds out after

it. As the executive looks horrified, his colleagues threaten to tell on him. He manages to buy

their silence with the help of the McDonalds Happy Price Menu, and says conspiratorially to

the camera, Im loving it.

Like the dollar menu in America, the Happy Price Menu is part of our everyday affordable

platform and has worked very well in India. We know how the world is: everyones looking

for something fresh, exciting and insightful, and thats why we refresh the creative every

year.

The intention this time was to add a little freshness and try to bring in some amount of

tongue-in-cheek humour. The second commercial that was out in a weeks time targeted

college-goers. Besides television, the agency and the brand also plan to communicate the

new thought across outdoor, radio, social networks and mobile.

3. Im Lovin it Campaign

Retail fast-food giant McDonalds India is gearing up to implement a new human resource

(HR) initiative on the back of its recently launched worldwide brand campaign called Im

lovin it. As part of the initiative, the company has recently provided training on

hospitality to its crew members by way of conducting five to six major workshops in India.

With the move, the company will henceforth use Im lovin it campaign as a platform for

its crew members to become managers of McDonalds restaurants in the near future.

McDonalds India will incorporate the Im lovin it theme into its advertising, promos,

public relations, restaurant merchandising and overall brand communications initiatives. It is

called Rolling Energy and it involves McDonalds first-ever integrated global two-year

calendar that will provide consistency in messaging and communications to customers and

employees worldwide. The international television commercial reflecting the lifestyles and


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attitudes of todays customers and culture was aired from October 5, 2003, in India. For the

purpose, the company has have invested Rs 4 crore.

The Im lovin it theme is the unifying element for its new worldwide creative approach

that speaks in one voice to customers across more than 100 countries.

According to the company, with the new initiatives, the company hopes to garner a 15 per

cent jump in its overall sales turnover within a year.


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QUESTIONNAIRE

Hi!! Thanks for sparing time and visiting this page. This survey is part of my Dissertation

on the topic Cross Cultural Marketing in the Fast Food Industry and will help meanalyze this study. I would request you to please spare 5 minutes and fill this survey. Its

not that boring ;-)

1. Name: ___________

2. Age: ___________

3. Place (Your current location): ____________

4. Are you a :

a) Vegetarianb) Non-Vegetarianc) Eggetariand) Other: _________

5. Which is your favourite fast food chain?

a) Mc Donalds

b) KFC

c)

Domino's Pizza

d) Fastrax

e) Subway

f) Other: _________

6. Are you influenced by TV commercials/Ads/promotional activities done by these fast food

chains?

a) Yes

b) No

c)

At Timesd) Yes, I used to get influenced as a kid

e) Other:__________


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7. Which of the following factors affect your choice of fast food joint?

VeryEssential

At timesEssential

Not soEssential

Not at allImportant

Price

Quality

Cleanliness

Service

Advertising &Promotions

8.

Which amongst the following fast food chains do you trust for pure vegetarian products?

a) Mc Donalds

b) KFC

c) Dominos Pizza

d) Fastrax

e) Subway

f) Other: _________

9. Do you have a McDonalds outlet in your city?

a) Yes

b) No

c) Not Aware

d) Other: _________

10.Which is your favourite product/products at McDonalds? *

a) Mc Aloo Tikki

b) Veg Pizza McPuff

c) Chicken McGrill

d) French Fries

e)

McChickenf) McVeggie

g) McSwirl

h) Other: _________


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11.Is the product line or Menu in McDonalds adequate?

a) Yes

b) No

c) Average

12.

Is the product line or Menu in McDonalds adequate?

a) Do you ever feel that there is any kind of product category missing from their menu.

b) Yes

c) No

d) Average

13.Which amongst the following services provided by Mc Donalds do you prefer?

a) Dine-in

b) Take Away

c)

Home Deliveryd) Drive Thru

e) Other: _________

14.According to you, has McDonald's been successful in positioning itself as a promoter of

'Indian family values and culture?'

(This is in terms of the product offerings of McDonalds and also the promotional campaigns

run on TV/Radio/Social networking websites, etc.)

a) Yes

b) No

c)

Can't Sayd) Other

e) Other: ____________

Thanks for filling this survey!!! :)

Submit


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ANALYSIS OF THE SURVEY

1. Are you a :

e)

Vegetarianf)

Non-Vegetariang) Eggetarianh) Other: _________

Vegetarian

Non-Veg

Eggetarian

Vegetarian 40%

Non-Veg 52%

Eggetarian 8%


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2. Which is your favourite fast food chain?

a) Mc Donalds

b) KFC

c) Domino's Pizza

d) Fastrax

e)

Subway

f) Other: _________

Mc Donalds 30%

KFC 24%

Domino's Pizza 20%

Fastrax 0%

Subway 23%

Other 3%

24%


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3. Are you influenced by TV commercials/Ads/promotional activities done by these fast food

chains?

a) Yes

b) No

c) At Times

d)

Yes, I used to get influenced as a kid

e) Other:__________

Yes 13%

No 10%

At Times 60%

Yes, I used to get influenced asa kid 17%


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4. Which of the following factors affect your choice of fast food joint?

VeryEssential

At timesEssential

Not soEssential

Not at allImportant

Price

Quality

Cleanliness

Service


Very Essential At timesEssential

Not so Essential Not at allImportant

Price 30% 50% 17% 3%

Quality 96% 4% 0% 0%

Cleanliness 90% 10% 0% 0%

Service 76% 17% 7% 0%


14% 26% 60% 0%

PricePrice is not the key criteria for choosing a fast food joint for a lot of people. According to

the survey conducted, only 30% of the people feel that Price of the products is Very Essential for

choosing a fast food joint whereas 17% feel that Price is Not so Essential.

Apart from this, 50% feel that Yes, price is At times Essential and price is one of the factors that

affects their decision of choosing a fast food chain.

QualityThe Quality of the products being offered by the fast food chain is a very importantfactor that affects the decision making of people. Thus, 96% of the people surveyed feel that

Quality of food is Very Essential in deciding which fast food joint to eat at. And, the remaining

4% feel it is At times Essential. This factor clearly displays that Indian Customers want good

quality food.


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CleanlinessNow cleanliness is an important factor that affects the choice of fast food joint. A

lot of people want to dine-in at a clean and hygienic fast food joint and they dont mind paying a

few more bucks for that. Our survey also concludes that 90% of the people feel that Cleanliness

is an important factor and is Very Essential whereas 10% feel that it is At times Essential.

Therefore, this conveys that apart from Quality, Indian customers want a clean and hygienic

ambience.

ServiceService can be in terms of Placing an order, the time taken by employees to deliver the

offer to the customer, behavior of the staff, etc. Service is considered Very Essential by 76% of

the people, At times Essential by 17%, Not so Essential by 7%. Therefore, Service is also an

important criteria that affects the choice of customers. This is because many office going people

dont like to wait for a long time to get their order, they want instant services. Also, people who

avail the Home Delivery facility want quick delivery.

Advertising & PromotionsAdvertising & Promotions is not considered as a very important

criterion by many people. The survey says that 60% people feel that Advertising & Promotions is

Not so Essential, 26% feel that it is At times Essential and only 14% feel that it is Very Essential.

Therefore, Advertising & Promotions do not play an important role in the decision making

process.


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5. Which amongst the following fast food chains do you trust for pure vegetarian products?

a) Mc Donalds

b) KFC

c) Dominos Pizza

d) Fastrax

e)

Subway

f) Other: _________

Mc Donalds 33%

KFC 3%

Domino's Pizza 20%

Fastrax 0%

Subway 27%

Other 17%


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6. Do you have a McDonalds outlet in your city?

a) Yes

b) No

c) Not Aware

d) Other: _________

Yes 99%

No 0

Not Aware 1%


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7. Which is your favourite product/products at McDonalds?

i) Mc Aloo Tikki

j) Veg Pizza McPuff

k) Chicken McGrill

l) French Fries

m)

McChicken

n) McVeggie

o) McSwirl

p) Other: _________

Mc Aloo Tikki 10%

Veg Pizza McPuff 6%

Chicken McGrill 14%

French Fries 10%McChicken 20%

McVeggie 23%

McSwirl 10%

Other 7%


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16.Which amongst the following services provided by Mc Donalds do you prefer?

a) Dine-in

b) Take Away

c) Home Delivery

d) Drive Thru

e)

Other: _________

Dine-In 33%

Take Away 37%

Home Delivery 13%

Drive Thru 17%


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17.According to you, has McDonald's been successful in positioning itself as a promoter of

'Indian family values and culture?'

(This is in terms of the product offerings of McDonalds and also the promotional campaigns

run on TV/Radio/Social networking websites, etc.)

f) Yes

g)

No

h) Can't Say

i) Other

j) Other: ____________

Yes 64%

No 13%

Can't Say 20%

Other 3%


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References

http://www.mcdonaldsindia.com/

http://www.kfc.co.in/

www.dominos.co.in

http://www.economist.com/node/16380043

http://www.ft.com/home/india

http://www.mcdonalds.co.uk/static/pdf/aboutus/education/mcd_marketing.pdf

http://economictimes.indiatimes.com/

http://www.rediff.com/business
http://www.mcdonaldsindia.com/http://www.mcdonaldsindia.com/http://www.kfc.co.in/http://www.kfc.co.in/http://www.dominos.co.in/http://www.dominos.co.in/http://www.economist.com/node/16380043http://www.economist.com/node/16380043http://www.ft.com/home/indiahttp://www.ft.com/home/indiahttp://www.mcdonalds.co.uk/static/pdf/aboutus/education/mcd_marketing.pdfhttp://www.mcdonalds.co.uk/static/pdf/aboutus/education/mcd_marketing.pdfhttp://economictimes.indiatimes.com/http://economictimes.indiatimes.com/http://www.rediff.com/businesshttp://www.rediff.com/businesshttp://www.rediff.com/businesshttp://economictimes.indiatimes.com/http://www.mcdonalds.co.uk/static/pdf/aboutus/education/mcd_marketing.pdfhttp://www.ft.com/home/indiahttp://www.economist.com/node/16380043http://www.dominos.co.in/http://www.kfc.co.in/http://www.mcdonaldsindia.com/

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