CONTENTS

Sl No. Topic Page

1 The McDonald's Story 3
2 McDonald's in India
 Business Model 4
 Challenges in Entering Indian Markets
3 Segmentation, Targeting and Positioning 5
4 McDonalds Marketing Mix (7 P's) 6
5 Importance of PLC in McDonalds 10
6 The McDonald Experience in Indian Markets 10
7 Distribution Strategy at McDonalds India
11
 Key Players in Distribution
8 Product Mix of McDonalds India 13
9 Competitors Analysis 14
10 SWOT Analysis 17
11 The Road Ahead 17
12 References 18

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 The McDonald’s Global Story

 McDonald‘s, one of the leading restaurant chains in the world started its journey in 1940 when
two brothers, Dick and Mac McDonald opened their first McDonald‘s restaurant in California.
Initially they only owned a hot dog stand but later it was changed into a full-fledged restaurant
and became popular teen hangout. In 1948, the brothers closed and reopened the restaurant to
sell only hamburgers, milkshakes and French fries.

 Major revenue for the McDonald‘s came from Hamburgers which were sold at a nominal price of
15 cents. This led to the restaurant become famous and the brothers began franchising in the
year 1953. The first franchise which was taken by Neil Fox introduced the Golden Arch design
which later on went on to become very famous.

 In 1954, Ray Kroc, acquired the franchise of McDonald‘s restaurant for outside California and
Arizona. Kroc opened his first in Illinois, Chicago, and thus started the McDonald‘s corporation. In
1960, Kroc renamed his company as ‗McDonald‘s Corporation‘. In 1961, Kroc managed to
convince the McDonald‘s brothers to sell the business rights to him for $2.7 million.

 As time passed McDonald‘s grew larger and in 1992, the largest McDonald‘s was opened in
Beijing, China, having over 700 seats but was later demolished. Not only food, McDonald‘s also
started to be known for its employee programs and in 1994, McDonald‘s bagged the Catalyst
Award for its program for ‗fostering leadership development in women‘.

 The McDonald's Golden Arches logo was introduced in 1962. It was created by Jim Schindler to
resemble new arch shaped signs on the sides of the restaurants. He merged the two golden
arches together to form the famous 'M' now recognized throughout the world. Schindler's work
was a development of the stylized 'v' logo sketched by Fred Turner. The McDonald's name was
added to the logo in 1968.

 In 1996, the first Indian restaurant was opened.

 Their entry into new markets was marked by care and caution as they used effective
management practices to gain a share of the foreign fast food market. They have used effective
management and global expansion strategies to enter new markets and gain a share of the
foreign fast food market. McDonald‘s has, from its foreign country ventures achieved tremendous
success and is now known for its best practices in the global food industry. The way McDonald‘s
has managed to create both customer and brand loyalty is indeed impressive.

 In 2003, the company launched the ‗I‘m lovin‘ it‘ campaign. In 2006, McDonald‘s announced that
it will start publishing nutrition information on its packaging for the benefit of the customers.

 Now, McDonald's has more than 32,000 restaurants worldwide serving local flavors catering to
local needs. Most of the outlets offer drive-thru services and some provide outdoor playgrounds
for the children. McDonald‘s is now opening large number of restaurants in Europe, Middle East
and Asia.

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 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 in western India, and
Connaught Plaza Restaurants Private Limited in northern India.

McDonald’s
Corporation

McDonald’s
India Pvt Ltd.

Connaught
Hard Castle
Rest. Pvt. Ltd. Plaza Rest. Pvt.
(West & South) Ltd. (North &
East)

 The initial focus was on cities like New Delhi and Mumbai

 The first Indian McDonald's outlet opened in 1996. Since then, outlets have begun trading in
metropolitan and Tier II towns across the country. By September 2008, it had premises in
Mumbai, Bangalore, Baroda, Pune, Indore, Nasik, Chennai, Hyderabad, Surat and Ahmedabad.

 Approximately 75% of the menu available in McDonald‘s in India is Indianized and specifically
designed to woo Indian customers.

 McDonalds clear strategy is to bring the customers in initially and provide a range of entry-level
products so that they can try new items and graduate to the higher rungs

 Franchise Model – 15% of the total number of the restaurants are owned by McDonald‘s. The rest
is operated by the franchisees. The company makes sure it trains and monitors performance of its
franchisees to ensure that they adhere to quality, service and cleanliness offered by the company
to its customers.

 Product Consistency – The Company has been able to achieve consistent product taste and
quality across geographies by developing a supplier networked operation and distribution system.

 Act like a retailer and think like a brand – McDonald‘s focuses has not only to deliver sales for
immediate future but also protect its long term brand reputation.
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 Regio-centricism: Re-engineering the menu – McDonald‘s has continually adapted to the customer‘s
tastes, value systems, lifestyle, language and perception. Globally McDonald‘s was known for its
hamburgers, beef and pork burgers. Most Indians are barred by religion not to consume beef or
pork. To survive, the company had to be responsive to the Indian sensitivities. So McDonald‘s came
up with chicken and fish burgers to suite the Indian palate.

 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 Mc Veggie
burger and McAlooTikki. The separation of vegetarian and non-vegetarian sections is maintained
throughout the various stages.

 In many countries, in a Quick Service Restaurant (QSR) a customer comes in, buys and then leaves.
This is known as a revolving door concept. But an Indian customer believes in a dine-in culture. This
adds to the real estate costs which go as high as 20-25 per cent as compared to 10-15 per cent
globally.

 Until 2000, McDonald‘s did not have enough reach to use mass media such as television advertising.
Instead it tried to focus on opening new outlets and new products which didn‘t help much increase
its popularity.

 Indians traditionally used to eat very less outside home. McDonald‘s faced a challenge to change
that to increase footfalls in its outlets.

―Mc Donald‘s mein hai kuch baat‖ has given McDonald‘s an image as a place where the entire family
can enjoy. When McDonald‘s entered India it was mainly thought of as targeted at the urban upper
class people. But today it is trying to positioning itself as a place where it is affordable to eat without
compromising on the quality of food, service and hygiene. The outlet ambience and mild background
music highlight the comfort that McDonald‘s promises in slogans like ―You deserve a Break Today‖ &
―Feed your inner child‖. This commitment of quality of food and service in a clean, hygienic and
relaxing atmosphere has ensured that McDonald‘s maintains a positive relationship with the
customers.

McDonald‘s uses demographic segmentation strategy with age as the parameter. The main target
segments are children, youth and the young urban family.

As we can see above in the graph, kids have a big role to play in FMCG purchase related to food
products. So McDonald‘s has a Happy Meal scheme directed to kids which ranges from hot wheels to
various Walt Disney characters. For this, McDonald‘s have tie ups with Walt Disney which benefits

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both. Also McDonald‘s at select outlets have special facilities called ―Play Place‖ where children can
play arcade games, air hockey etc. These facilities are aimed at portraying McDonald‘s as fun place to
eat. This helps McDonald‘s attract young urban families wanting to spend time while their children
play games and have fun at the outlet. Also, recently McDonald‘s is providing facilities like Wi-Fi
keeping teenagers in mind. And also it prices its products very aggressively to target the same
segment.

PRODUCT:

McDonalds product portfolio primarily comprises of vegetarian and non-vegetarian burgers. The
vegetarian burgers like Veg surprise, salad sandwich, Mc Aloo Tikki Burger, Mc veggie burger are
offered to the customers. Non-vegetarian burgers include Chicken Mc grill, Mc chicken burger, Fliet of
fish and chicken maharaja burger. Along with these french-fries, veg pizza mc puff, wrap chicken
Mexican, wrap paneer salsa, potato wedges, soft serve pineapple and chocolate ice creams, Mc swirl
soft drinks, coffee and Mc shakes are also offered to increase the variety in the product portfolio. Mc
Donalds also provides mean combos with medium fries and medium soft drink, happy meals with
small soft drink, economy meals with small soft drink and value meals with potato wedges and small
soft drink.

Adaptation is required for many reasons including customer tastes/preferences and laws/customs.
There are many situations where McDonalds adapted the product because of religious laws and
customs in a country. McDonalds restaurants in India serve Vegetable McNuggets and vegetable oil is
used for its operations. Such innovations are necessary in a country like India where there are
religious restrictions on the intake of food, like Hindus do not eat beef etc. Assurance teams are
responsible for monitoring the quality of McDonalds food products, both in the restaurants and at
suppliers at all stages of production. Every supplier manufactures to very tight specifications, which
detail the exact quantity and quality of raw ingredients and the dimension of the finished product.

Irrespective of variations and additions, the structure of the McDonalds menu remains essentially
uniform the world over: the main course burger, fries and a drink.

PRICE:

Mc Donalds vegetarian burgers are priced between Rs 20 and Rs 48. Wrap paneer salsa is priced at
Rs 45-50. The non vegetarian burgers are priced between Rs 30 and Rs 60. Wrap chicken Mexican is
priced at Rs 55. Medium French fries are priced at Rs 28, potato wedges 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 come up with different pricing strategies for different countries. For each country
there is a rigorous pricing process that is used to determine the price for that particular market. Its
overall pricing objective is to increase market share. In each country, they look at the demand for
their product as a barometer for setting the prices. Being in touch with the pricing of its competitors
allows it to price its products correctly, balancing quality and value.

McDonald‘s came up with a very catchy punch line ―Aap ke zamane mein ,baap ke zamane ke daam‖.
This was to attract the middle and lower class consumers and the effect can clearly be seen in the
consumer base McDonalds has now.

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McDonalds has certain value pricing and bundling strategies such as happy meal, combo meal, family
meal etc to increase overall sales volumes.

PROMOTION:

At Mc Donalds the prime focus is on targeting children. In happy meals too which are targeted at
children small toys are 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 economy meals and value meals also promote different items on the
menu in kind of a bundled package for customers. McDonalds, for years has maintained an extensive
promotion strategy with highest spending on marketing amongst all its competitors. The advertising
focus has been on overall experience. It basically believes in ―Brand globally and act locally‖. Paper
mats are also placed on the serving trays to make sure that no new scheme goes unnoticed.

McDonalds has a wide range of advertising campaigns in various countries. However, they try to
convey the same message everywhere by using different personalities in different cultures to get their
message across. McDonalds concentrate on standardising their brand name but localising their
advertising campaign. For example, in East Asia, McDonalds could not have had the success they
have experienced without their appeal to younger generations of consumer; children and teenagers.
It invests heavily in television advertising aimed specifically at children.

A further example of McDonalds acting more locally was when being in Beijing, China, the company's
male mascot, Ronald, was paired with a female companion known as Aunt McDonald whose job was
to entertain children.

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McDonalds sponsors a vast array of sports, on both a national and a global scale. Globally, it
enhances its brand name with associations as the Olympic Games and the World Cup, the two biggest
sporting events in the calendar. Its message is easily conveyed by producing an international
campaign associated with these events.

Some of the most famous marketing campaigns of McDonald‘s are:

· ―You Deserve a break today, so get up and get away- To McDonald‘s‖

· ―Aap ke zamane mein ,baap ke zamane ke daam‖.
· ―Food, Folks, and Fun‖
· ―I‘m loving it‖.

PLACE:

McDonalds focuses on managing capital outlays more effectively through prudent and strategic
expansion. Mc Donalds outlets are very evenly spread throughout the cities where it is present. Mc
Donalds also offers take away drive through facilities. It has started home delivery in certain cities
which wasn‘t there as part of its portfolio earlier. McDonalds India is one of the few countries which
provide home delivery. Though there is no minimum order to be placed for home delivery, an extra
delivery fee of Rs. 20/- is added irrespective of the order value.

The below image shows the advertisement of McDonalds for Home Delivery Promotion:

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McDonalds also provide drive through facilities for VIP members and also has Kiosks kept at proper
locations in its outlet for fast and convenient service.

PEOPLE:

The employees in Mc Donalds have a standard uniform and Mc Donalds specially focuses on friendly
and prompt service to its customers from their employees. Each outlet is headed by a Restaurant
Manager who is responsible for the daily operation and customer interaction. Delivery Crew Members
carry out basic operation of the outlet and ensure customer satisfaction at the restaurant. In order to
motivate their employees they give them stars as per their performance.

The company is strongly committed to staffing locally and promoting from within. This means
McDonalds's has employees who understand both the corporate and the local cultures. The company
believes that the best way to stand out from the crowd is to satisfy all of the customers, all of the
time. The emphasis when recruiting is that the applicants are customer-focused; the right attitude is
seen as more important than technical ability.

The punch line ―I‘m loving it‖ is also 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 Mc Donalds 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 Mc Donalds by allowing them to enter the area where the process takes place.
The customers are invited to check the ingredients used in food. The process for making food is
identical everywhere. This epitomises globalisation; McDonalds standards have to be met the world
over. Suppliers have to meet all the specifications and demands that McDonald's sets them. Each
restaurant has a similar kind of a kitchen layout. The point of purchase at McDonalds is again
standardised globally.
To avoid language translation problems, McDonalds uses pictographs; employees worldwide ring up
sales on machines that display symbols of burgers, french fries, or colas.

PHYSICAL EVIDENCE:

Mc Donalds focuses on clean and hygienic interiors of its outlets. Cleanliness, speed, quality and
transparency of process is the biggest physical evidence. The interiors are attractive and more or less
consistent throughout the world. A proper decorum and strict standards of cleanliness are maintained
at all the joints. The joints are children friendly and play areas are provided for them. Moreover the

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counters are also kept low and pictorial menus are displayed so that children can order for
themselves.

This is McDonalds message to every franchise throughout the world:"To Focus on consistent delivery
of quality, service and cleanliness through excellence in our restaurants". The traditional value of
'service wih a smile' is embodied in the staff at McDonalds restaurants throughout the world and is
now characterised as an expectation of the McDonalds customer.

IMPORTANCE OF PLC IN McDonald’s

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

Marketing in a services industry is becoming an increasingly complex challenge. The paradigms of

service marketing demand a passionate understanding of customer expectations and perceptions, and
linking them to product design & delivery as well as operational planning. This is where McDonald‘s
has excelled due to its ability to successfully integrate the customer‘s perspective in its products and
operations in a comprehensive manner. The revamped menu in India is an example of McDonald‘s
strategy of integrating the customer‘s perspective in its products. And, the operational integration is
evident from McDonald‘s emphasis on its suppliers as its customers as well as its treatment of its
consumers as co producers of services.

McDonald's is doing all it takes to expand its client base in India — besides adapting to Indian tastes,
it is offering a range of touch points for customers on the go.

In India, the global burger retail chain has been around for about 13 years, and now serves about
five lakh customers every day, more than half of whom are estimated to be vegetarian. The iconic
‗golden arches' symbol is seen in over 190 restaurants across the country.

The ‗happy meal' has a different set of customers here: mainly vegetarian, price conscious, but who
also drive around in cars and are comfortable ordering food online. These key elements have driven
the global restaurant chain to alter itself in many ways in India and yet keep its identity intact.
Simultaneously, it has also recognised that the country has moved ahead in terms of consumer-
buying habits. Therefore, experiments with new sales channels such as Web ordering and Drive-Thru
have also been attempted to reach the burger experience to a wider consuming segment. India is
also the only country where the retail chain does not offer pork- or beef-based products.

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Customer perception is a key factor affecting a product‘s success. Many potentially revolutionary
products have failed simply because of their inability to build a healthy perception about themselves
in the customers‘ minds. McDonalds being an internationally renowned brand brings with it certain
expectations for the customers.

For a family with children, McDonalds might turn to be a fun place to treat children and hang out with
them. For a customer on the move, it will be a quick serve restaurant providing quality food. For a
teenager, it might be a hangout place with friends at an affordable rate.

McDonalds has developed local Indian businesses, which can supply them the highest quality
products required for their Indian operations.

In the supply chain management, the distribution centers hold special place for bringing food right to
the outlet counters. For McDonald's India, the distribution centres came in the following order: Noida
and Kalamboli (Mumbai) in 1996, Bangalore in 2004, and the latest one in Kolkata (2007).

McDonald's entered its first distribution partnership agreement with Radha Krishna Foodland, a part
of the Radha Krishna Group engaged in food-related service businesses. Better facilities and
infrastructures were created along with new systems by them to satisfy McDonald's high demands,
which finally culminated into an agreement with McDonald's India, for Radha Krishna Foodland to
serve as distribution centres for their restaurants in Delhi and Mumbai. As distribution centres, the
company was responsible for procurement, the quality inspection program, storage, inventory
management, deliveries to the restaurants and data collection, recording and reporting. Value-added
services like shredding of lettuce, re-packing of promotional items continued since then at the centres
playing a vital role in maintaining the integrity of the products throughout the entire 'cold chain'. The
operations and accounting is totally transparent and is subject to regular audits.

McDonald's worked aggressively to attain the right suppliers and systems that ensured that 90 per
cent of yield was indigenous before the doors were opened to consumers. The only products that
they used to import were oil and fries, for which they had made arrangements to manufacture the oil
in India. They ensured that the products developed locally abide by global McDonald's standards.

Key Players in Distribution in India include:

Amrit Foods: Amrit Foods, a division of Amrit Banaspati, has been associated with McDonald's India
as a supplier of Dairy Mixes, Soft Serve Mix and Milk Shake Mix for over a decade now

Cremica Industries: Cremica Industries was started in 1980 as small ice-cream unit run by Mrs
Bector out of her backyard in Ludhiana. However after its initial success Cremica added buns and
biscuits to its product line and in 1996 McDonald's selected Cremica to be its supplier for buns, liquid
condiments, batter and breading in collaboration with its international partners

Dynamix Dairies: McDonald's India has approved Dynamix Dairies, Baramati (Maharashtra) for
supply of cheese to its restaurants. Dynamix has a modern automated plant that is fully computer
controlled

Trikaya Agriculture: Trikaya Agriculture is McDonald's supplier of fresh iceberg lettuce. The farms
at Talegaon, Maharashtra produce the crop throughout the year

All these suppliers shared McDonald's commitment and dedication for satisfying customers by
supplying them the highest quality products. They worked cohesively to ensure that the final product
reached the customer consistently each time and every time. At their level, every care is taken to

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guard against any interruptions in the cold chain which can break the link and have a detrimental
effect on the quality of the product. And more products reaching the market fresher and quicker not
only benefit the economy but also help the farmer earn more.

Fast-food chains face a tough time balancing between margin pressures and hiking prices which can
hurt volumes. Consequently, the chains have to increase rates or rework their strategies. Affordability
has been the cornerstone of McDonald‘s global strategy. Some of its measures to achieve this include
– Bulk buying, long-term vendor contracts, and manufacturing efficiencies.

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 Product Mix

Veg Menu Non-Veg Menu Beverages Frozen Deserts

McVeggieTM Chicken
McAlooTM Maharaja Soft Serve Cone
Cold Coffee
Paneer Salsa McChicken Mc Swirl
Ice Tea
Wrap Fiest-o-Fish Soft Serve
Sift Drinks
Crispy Chinese Chicken Mexican Flavor Burst
Mc Shakes
Veg McCurry Wrap
Hot Serves Floats
panTM Chicken McGrill
Pizza McPuffTM

McDonald’s Indian Menu

Vegetarian Menu

Non-Vegetarian Menu

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The main competitors of McDonalds in India include KFC, Burger King, Dominos, Pizza Hut.

On the higher end, the KFC has become potent competitor in the quick service field, taking away
customers from McDonald‘s. 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 McDonald‘s can use for competitive advantage against Burger King.

PIZZA HUT:

Strategic Objectives:
 Diversification of the products
 Cleanliness, Hospitality, Accuracy, Maintenance, Product quality and Speed (CHAMPS)
 3 Fs (Fun, Friendly and Familiar).

Since it‘s a global chain, the strategies are based upon customizing the services, advertising and
marketing activities according to the countries that they are operating in. Customer service and
satisfaction have of course always been a vital aspect of the strategies.

Problems and Weaknesses:

 The ‗lunch time‘ crisis

 The price wars with the local pizza makers
 Lack of any initiatives towards environmental concerns.

The biggest problem that pizza hut or in that regard any of its pizza competitors have been facing is
the low sales volumes in the lunch time. The reason being that normally it takes 20 minutes to
prepare a pizza in the traditional oven. Few people have that amount of time to wait for their lunch.
Though this problem has been addressed with the introduction of pan pizza‘s the low volume sales at
lunch time still hurts pizza hut. Another problem that pizza hut faces is that of the continuous price
war that it faces from local pizza makers. Many people prefer to have pizza that burdens their pockets

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less and gives them somewhat similar tastes if not the same. Lack of any initiatives to address the
various environmental concerns also doesn‘t help to attract customers who are sensitive in that area.

Competitive Advantages:
 Pizza Hut has the first mover advantage in the pizza chains
 Pizza Hut‘s delivery service is one of quickest
 Pizza Hut is often referred to as ‗Pizza Innovation Leader‘

Due to the ‗first entry‘ of pizza hut into this sector, it enjoys large customer‘s base. The amount of
loyalty the brand has in its customers is phenomenal. Added to it the delivery service of pizza hut is
one of the quickest. Although they have made themselves quick but they haven‘t compromised with
their quality. The recent ad in which they negate the claims of a competitor indirectly shows how
much importance they give on quality. The success of pizza hut has continued over the years because
of the fact that they have been able to innovate continuously by customizing their offerings to meet
the local taste buds.

KENTUCKY FRIED CHICKEN (KFC):

Strategic Objectives:
 Expansion along with profits and sales growth.
 Improving services and making them more and more customer friendly.
 Better customization of products.

The strategy followed by KFC has been that of growth and increase in sales and profit. They follow an
extensive expansion plan. They have always tried to make them more customers friendly. Constant
customization has been one their pillars of success.

Problems and Weaknesses:

 The advertising campaign of KFC does not specifically appeal to any segment
 The increased health concerns of the masses has put KFC at a great disadvantage because
of the word ‗fried‘ attached to its brand name which gives an instant idea that the food would
be oily and unhealthy.
 Four different parent companies till now namely, Heublein Inc., R.J Reynolds, Pepsi Co. and
Yum! Brands Inc. A strong culture could not be established at KFC.

The main problem that KFC has been facing is because of its brand name itself. With the increase in
awareness of the people about health and healthy food the term ‗fried‘ in their brand name gives a
very negative impact on the health conscious minds. Also the KFC as a brand has handled by four
different companies till now. This has not helped them establish any culture within themselves as all
the companies worked differently.

Competitive Advantage:
 Very strong financial background
 Environmental Friendliness

SUBWAY:

Strategic Objectives:
 Creating a global strategic plan to enableSubway restaurants to succeed internationally.
 Intent uponintroducing the concept of ‗healthy fast food‘..

Subway strategy has been in making their offerings as healthy as possible. They intend to make the
fast food industry free from unhealthy food. They have managed to implement their strategies up to
such an extent that now even some diet regimens have the sandwiches of subway under its diet plan.

Problems and Weaknesses:

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  A large number of franchises opening up within a small region. Many of the franchises are
becoming a victim of internal competition or cannibalization.
 No standardized store size.

The main problem that Subway has been facing worldwide has been that of its franchises. A large
number of franchises has been opening up and competing with each other for sales. This
uncontrolled distribution process has led both the customers as well as the franchisee dissatisfied.
Also having no specification of its outlets has led to opening up of small shabby outlets that hardly
attracts customers into spending a few minutes in the outlets.

Competitive Advantage:
 Healthy menu.
 Subway allows its franchisees to choose their own food suppliers, to ensure they can access
the freshest ingredients.

The USP of Subway has always been its healthy offerings. The fat free theme has worked perfectly
for them. Also their offerings have been strategically placed to cater to the needs of the future
trends. Also their practice of allowing the franchisees to choose their own food suppliers have helped
them serve fresh as well keep the franchisee people happy.

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Entry to Tier 2 and Tier 3 cities – The main target customer for McDonald‘s is the new urban Indian
family. With the customer demographics constantly changing and tectonic social and cultural shifts
being observed in Tier 2 and Tier 3 cities due to globalization, the company is now expanding to Tier
2 cities.

Rolling out McBreakfast across all outlets – In India, the company hasn‘t launched its entry into the
breakfast food category at all outlets. This is now launched on a pilot basis on select stores. The
company views this category as a key growth driver in future.

Move to smaller satellite towns and tourist places- McDonalds needs to move to smaller satellite
towns across the country by starting smaller outlets catering to the population present there. More
over it should also try to attract foreign tourists by being present in certain tourist locations of
importance.

In 2010, McDonald‘s India has opened 40 more outlets. The company has also earmarked a budget
of Rs 50-60 crore to market its new products and initiatives for consumers. Its new marketing
campaign is titled – ‗Har Chotti Khushi Ka Celebration‘ – in other words ‗celebrate little joys of life‘
where it positions McDonald‘s as a venue for enriching life of consumers. In South India, McDonald‘s
has 29 outlets and plans to add 10 more by end of next year.

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REFERENCES

 http://emerald-library.com/ft : McDonald's
 http://www.thehindubusinessline.com/catalyst/2010/06/03/stories/2010060350030100.htm
 www.mcdonaldsindia.com
 www.mcdonalds.com
 Outlet Manager - McDonalds Outlet at Mani Square, Kolkata

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