2. Initial scenario the 1990s(Mc Donalds struggles)
Gaining acceptance locally and blending into Indian culture proved difficult.
Pre-notions and false assumptions about cost .
Intense competition from domestic food chains .
Mc Donalds fast and clean' service formula gets copied.
STRUGGLING FAST FOODS
4. Dominos and KFC struggles
Faces intense competition entering India with nirulas and pizza corner .
Mncs as pizza hut and wimpeys had already established .
KFC greeted protests of farmers, consumers, doctors and environmentalists.
KFCs perceived as a chicken serving restaurant .
5. Indianising : The Mc Donald's way .
Menu modification (substitution of mutton in place of beef)
Choosing of names (ex: Mc Aloo and Maharaja Mac)
An extremely orthodox approach .
Introduction of dishes and variations not available anywhere in the world .
India the first country to use the complete veg burger creating the egg less mayonnaise.
First opening on the day of navratris in new Delhi .
The use of tamarind .(Indian touch).
Hot foods at lower prices .
Strong niche .(introduction of alu tikki burgers .
Target audience (children)
Offers such as freebies such as Leo toys with happy meals .
Parade at south Mumbai outlet led by Mc Donald's mascot ,Rona ld .
Very small notices ----counter at Noida Mc Donald's order counters were kept low at low height to make children feel comfortable.
Highlighting of the facts that the meals were not expensive .(year -1999)
The ad line real value for Mrs. mani ,touches the cord .
Introduction of the maharaja Mac and the manpasand meals'. these were chains of the ecomeals .
Special promos during the Indian festivals ,diwali and holi.
Marketing strategies included:
April 2000 see the launch of the 100 million campaign developed by mudra .
A three tier marketing strategy :
Push the brand
Push the value (includes value for money)
The tag line focused mc Donald's mein hai kuch baat
The ad spend expenditure increase to rs 180 million.
11. Dominos way:
Giving products local flavor .
Special products at different regions
For ex: chettinad chicken and mutton ghongoor in the south ,buttor chicken and paneer makhani in the north ,fish(tuna) tampered with mustard sauce .
For kids-there were choco pie .
August 2000 ,the launch of the ad campaign hungry kya
Tie ups with mtnl for hunger helpline .
12 types of pizza toppings such as prawn toppings and pizza toppings were used .
13. KFC Way :
Changes In positioning .
Localizing the menu .
Offers as chicken and vegetable burgers .
Induction of varieties .
1998-launch of new varieties wrap snacks including rolls :tortilla rolls .
During navratris new range of nine vegetarian products were offered .
Games as :ball pool and chicky express have been introduced for the kids .
Kids meals for Rs 60/- were introduced .
16. Mc Donald's followed the fundamental consistency rule offering products of uniform size,price,and quality in all the markets where it operated however in India the company went entirely for customization .Why was there customization in India ?
The reason why Mc Donald's went for a customized view ,because first of all beef or pork eaters are very - very less ,people are vegetarians and avoid foods made or rather are from west .The initial menu catered to beef and the culture followed in west ,so change was needed at all costs .Also the per capita income of people are different so foods have to be at lower prices and hot too.
17. Both Mc Donald's and dominos customized their menu to Indian tastes. Explain the difference in their positioning ?
Mc Donald's positioned its products with tag line Mac Donald's mein hai kuch baat .positioning methods included aspects as value for money by offering 7/-rs cone ,happy meals and maharaja Mac called eco meals .mc Donald's made impressions of the foods being low cost and much more hot and without beef and pork, and catering to Indian tastes and fully vegetarian .
On the other hand dominos ,used the tagline hungry kya ? .also with new improved meals for all regions of India ,be it north ,south, east and the west .
The campaigns included toll free numbers and the delivery of the pizzas in 30 minutes .the also positioned topping flavors and other deserts as choco pie for kids .
19. KFC also customized but it did not meet with the success as Mc Donald's and dominos ?examine critically .
KFC took measures which were implemented late initially still they catered to the international taste but people did not like the chicken with skin .KFC did not do much to advertise its products and make the market presence .the costs were also not kept that low .