Fats Food Fables,CB Final

8/4/2019 Fats Food Fables,CB Final

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Fast Food Fables

By:-Kriti Singhal

Lavanya Arora

Manish Bizla

Anurag

Naman VijPratap

Ayush

Rachna Sharma

Manoj


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Introduction

The case discusses the localization strategies adopted bythe multinational fast food chains- McDonalds,Dominoes' and KFC in India.

In the mid 1990s a spate of global fast food chains

entered hoping to capture a part of Indian fast foodsegment but they found it difficult to establishthemselves.

Soon they customized their menu, positioned their

product and advertised to appeal to Indian customers. McDonalds and Dominoes succeeded to certain extent

but KFC has a long way to go.

Thus, they have to understand the requirements of the

local market and change their strategies accordingly.


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WHILE MCDONALDS WAS ESTABLISHING ITSELF DOMINOS FACED TOUGHCOMPETITION IN INDIA

OTHER HOMEGROWN PLAYER-NIRULAS, PIZZA CORNER, PIZZA HUT ANDWIMPYS

DOMINOS DILEMMA OF HOW TO POSITION ITSELF - SNACK OR MEAL?

KFC ALSO FACED MASSIVE PROTEST AND ALSO THEIR IMPRESSION OFHAVING ONLY ONE ITEM ON THE MENU ALSO DIDNT APPEAL TO THEINDIAN CONSUMERS.

MCDONALDS BEGAN TO LOOK AT THE INDIAN MARKET IN 1990. JOINTVENTURES WERE MADE BETWEEN MCDONALDS AND HARDCASTLE

RESTRAUNTS PVT. AROUND 1995.

DOMINOS SET UP BASE IN 1996 BY A FRANCHISE AGREEMENT.

KFC ALSO CHOSE TO SET UP OUTLETS IN DELHI IN 1995.

THE 1990S SAW THE COMING OF MANY FAST FOOD COMPANIES TO INDIA MCDONALDS, DOMINOS AND KFC.

Joining the Fray And theIndian Coming


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Mc Donalds approach for

Indian Market

To get accepted locally & nationally

- Vegetarian Menu

- Replacing beef and pork with chicken

- Segregating veg and non-veg section

Menu Vision

- Partially localized & partially western

- Indianised names- Desi flavour like tamarind touch

- Eggless mayonise


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Mc Donalds approach for

Indian Market

Positioning as a family restaurants and awarenessthrough various campaigns

Children were targeted with several offers

Advertising strategy based on creating awareness

about all its menu spread Special promos during festivals

In April 2000, Rs. 100 million campaign for satellitechannel advertisements with 3 Tier Marketing

Strategy


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DOMINOS Dominos made efforts to give its products a local

flavor. It offered special products in different regions.

It introduced dessert after the main meal.

In August 2000, Dominos launched a TV campaignwith a catch line Hungry, Kya and showed severaladvertisements in this series.

Along with this campaign company made a tie-upwith MTNL for the Hunger Helpline.

With this Helpline Dominos offered its customersfree home delivery with a promise to deliver pizzawithin 30 minutes.


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Difference in positions ofDominos and Mcdonalds Mcdonalds positioned itself mainly to the children

whereas dominos was for all

Mcdonalds claimed to be a family restaurant

whereas Dominos was more focused at homedelivery

Price


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INITIALLY AT KFC

Preferred to retain its international taste

Offered only individual meal


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LATER

Localized its menu Offered vegetables and chicken burgers

Launched wrap category snacks Tortilla rolls

Slaw cole salads - Green fresh salads

Introduction of Zinger burger

Navratri festival Offered vegetarian products(Paneer burger)

Meals offered:

Non vegetarian: 6 individual meals + 2 combomeals(2 people) + 1 family meal

Vegetarian : 3 combo meals + Meals for couple andfamilies


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Improving Prospects

Future Plans Of McDonaldsIn 2000,McDonalds thought of increasing the no. ofrestaurants with in 3 yrs.

It entered into an agreement with Bharat petroleum

Corporation to launch highway restaurants(Delhi-Agrahighway)

.It also planned to make its foray into south IndianMarket with outlet schedule to open in Bangalore by mid-

2001.Tapping Office goers

It intend to launch a special Dial M/fax M facility foroffice going customers.

McDonalds Indian operations were still making losses.


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Future Prospect of Dominos

Dominos entered in agreement with Indian oilCorporation to set outlets at its transport fuel retailoutlets.

By Feb 2001,It established 101 outlets across 40

cities & cornered more than 70% share in IndianPizza market.

It planned to add 100-odd outlets.

It planned to extend its operations in

SriLanka,Bangladesh & Nepal.


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POSITIONING

Moto Attract families who lookednot for food, but recreation

For kids

Kids fun corner Ball pool

Chicky express

Kids meal @ Rs 60 + free gift


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MOUNTING LOSSES

KFC has indianized its menu to a greatextent.

Faced with huge losses, it closed all its

outlets except the one in Bangalore. This was not the case with KFC alone, all

the MNC fast food majors still had to breakeven their operations in India due to

mounting losses and increasing operationalexpenses.


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Documents

Fats Food Fables,CB Final