McDONALDS

Fast Food Restaurant Background

McDonalds entered India in 1996 in the wake of much publicised problems faced by KFC PR problems, Market problems and Palate problems... There was a barrier towards the McDonalds menu & value perception. These barriers resulted in low footfalls within the restaurants and even these footfalls did not translate into high tickets. McDonalds was perceived to be a western place meant for the youth, the rich, elite, westernised people. It had uninspiring food, an upmarket English speaking crew and was not really affordable!! 35

Phase 1 (1997 - 1999)

Phase 2 (2000 onwards)

Get people in. Increase footfalls. Convert footfalls into profitable footfalls.

Create a distinctive image of McDonalds in the consumers mind.

Key Issue
McDonalds image in the non-users mind continued to be that of a westernised place meant for the youth, the rich, elite, westernised people. It was perceived to have uninspiring food, an upmarket English speaking crew and again, was not considered really affordable.

This was achieved by launching an EDLP (Every Day Low Price) product to boost footfalls - Cone launched at Rs.7/-. Provide laddering to entice the cone walkins to graduate to meals - Bounce back coupon with every cone. (Rs.15 off with every Economeal). Provide attractive menu price points to induce core product trials. - Economeals launched at Rs.29, 39 & 49.

Task
To get the critical volume stream (SEC B) in and to provide them with a very Indian experience. To build the perception of McDonalds as a welcoming, affordable family restaurant with an exceptional eating experience that makes you feel special and makes you smile.

The Strategy

Target Identified
The core segment was defined as families with children. The bulls-eye identified as the main decision maker: fathers.

Results
48 % increase in Footfalls. 30 % increase in Sales. 36

Consumer Insight: Indian families historically used food and community dining as a bonding experience.

Communication Strategy Stage 1

Establish McDonalds as a place that makes you feel special and makes you smile Strike an emotional chord with the family. To reinforce the existing users & build on non-users.
Stage Fright - 40 secs

A small boy walks onto a stage, all set to recite a poem.

We see the boy seated on a windowsill, staring forlornly out of the window.

His recitation attracts the attention of all those seated around...

However, just as he reaches for the microphone, he pauses...

The boys father walks into the room, and in a bid to cheer him up... ...he takes him across to a McDonalds outlet.

...including the outlet manager.

He looks down nervously and starts fidgeting, while... At the outlet, the father gently prompts the boy to recite the poem.

Once the boy finishes ...the manager starts applauding him. Moments later, everyone else joins in.

...his parents, seated among the audience, peer at him anxiously. The boy starts saying his lines, fumbling along slowly. As he gains in confidence, he becomes more voluble.

The McDonalds logo. Super: McDonalds mein hai kuch baat.

The stage fright gets the better of him, and in his disappointment, tears well in his eyes.

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Stage 2
Establish McDonalds as an affordable family restaurant. Showcase Value. This was done by commercials which showed people from all over come in to experience McDonalds great prices.

Stage 3
Strengthen McDonalds role as an integral part of the family. This was done by depicting the strong bond that McDonalds enjoyed with children.

Veg Surprise- 15 secs

Moving House- 30 secs

A couple is ambling down a sidewalk when the wife shyly informs her husband: Rahul, humaare ghar mein ek mehmaan aane wala hai.

A little boy takes a last look around his old home. Everything is being packed up and stashed away to be moved.

As they look out, the kid sees a McDonalds restaurant opposite and his gloom disappears.

Excited, he tells her:Yakeen nahin hota! McDonalds ka veg surprise sirf 17 rupaiye mein? All his attention is on the poster on the window.

Saying good-bye to his best friend he gets into the car and they drive out. On the way, he spots a McDonalds restaurant and...

Super: McDonalds Family Restaurant. McDonalds mein hai kuch baat.

They are now seated inside enjoying the burger when the man recalls: Mehmaan? Mamaji aa rahein hai?

...he recalls all the fun they had here. The occasions celebrated and the good times come flashing back to him.

Cut to the new house. His sister drags him to the window to show him something. The father draws a Mac logo in the air.

She is in splits as the logo appears: McDonalds mein ahi kuch baat. McDonalds family restaurant.

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Tactical Advertising

Poster

McDonalds Today
Change in Consumer Perceptions Premium food Premium & hence good
quality Posh/status symbol Posh with equal environment

Affordable Bland western food Different

Premium price (less spicy, non-oily, crispy, fresh) & hence a good change Expensive western A good experience for the restaurant entire family & money well-spent Childish It was also essential to integrate McDonalds with India, to become a part of everyday life. This was done by using McDonalds icons in very Indian settings, and, by using every opportunity to realate to the consumer on their special days like Diwali, Dussehra, Holi etc. Loud and meant for youngsters

Press ad

Childlike, young at heart Mature, intelligent, calm,

cultured place for families

Growth in Sales & Transactions (footfalls)

28% gowth in sales. 23% growth in transactions. 39