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SELECT ANY GLOBAL PRODUCT , ANALYZE IN THE CONTEXT OF MARKETING PLAN ,

ENVIRNOMENT , CULTURE , PRODUCT STRATEGY , MARKETING MIX AND ALSO MAKE


YOUR COMPETITIVE ADVANTAGE IN TERMS OF PARTICULAR PRODUCT

Executive Summary

Mc Donalds is one of the worlds largest chains of fast food restaurants. They operate thirty two
thousand restaurants serving more than sixty million customers daily. The key to rapid and successful
international expansion of Mc Donalds is the franchise model pioneered by them.
Mc Donalds recognized early in their life that overseas market required an extremely high degree of
local responsiveness and that they needed to manage business spread across different regions effectively
and efficiently which would be achieved only through Transnational Strategy. The value chain was
constructed taking into consideration of local culture, legal-political and economic environments in
mind.
Company Overview
McDonalds is one of the best brands known worldwide and worlds largest chain of hamburger fast
food restaurants, serving more than 50 million customers daily. Company started in year 1940 by Dick
and Mac McDonald in San Bernardino, California, USA. From extremely modest beginning, they could
able to scale their business by selling a high quality product cheaply and quickly. Companies expansion
in terms of business happened after Ray Kroc from Chicago joined two brothers in their business. He
quickly realized and had a vision to expand the business throughout USA and beyond.
They have spread across 121countries and operate around 32000 restaurants worldwide employing 1.5
million people. They serve around 60 million customers per day. The key to such a rapid and successful
international expansion is the business model pioneered by McDonalds. Ray Kroc realized company
can achieve rapid expansion by franchise model. Today over 70% of McDonalds restaurants are
running on the basis of franchise model.
Today McDonalds global sales were around $22 billion, making it largest fast food Service Company
and ranked 107 in Fortune 500 companies in year 2009. The company operates other restaurant brands
such as Boston Market, Pret A Manger, Donatos Pizza, Chipotle Mexican Grill, and Aroma Cafe.

Company History and Milestones


The McDonald's concept was introduced in San Bernardino, California by Dick and Mac
McDonald of Manchester, New Hampshire. Later on, Ray Kroc, one of the business partners, of Oak
Park, Illinois, modified and expanded the business, who subsequently bought the business to
incorporate McDonald's Corporation. Mcdonald is the world famous fast food restaurant.The idea of
mcdonalds was introduced by two brothers Mac (Maurice) and Dick (Richard) Mcdonald in
California.their father Patrick Mcdonald in 1937 was having a hot dog cottage called as Airdrome
restaurant near the airport.In 1940 the restaurant was renamed as Mcdonalds Famous Barbeque.
While the company was experiencing rapid growth rate on the US soil, it also went in for international
expansion. It all started with the opening of their first restaurant outside the U.S. in Canada on June 1,
1967 in Richmond B.C. Canada today has more than 1,300 restaurants.
After a few setbacks in the Caribbean and the Netherlands, they tried with customization of their
international standardised delivery model in the form of a change menu for local tastes they realized

the fact that what had worked for them in the U.S. may not be replicated elsewhere. Till now they relied
on a strong local partner, fully trained and totally involved in the business with detailed operating
procedures for QSC&V (Quality, Service, Cleanliness and Value) for success.
Japan came as one of the most promising and initial success story in their path of international success,
where Den Fujita, owner of an import company, became McDonalds joint venture partner in 1971.
Fujita opened his first restaurant on July 20, 1971 in a tiny 500-square-foot restaurant in a prime location
in Tokyos Ginza shopping district. On its first day, the restaurant had sales of $3,000. At the end of
1993, McDonalds was Japans most successful restaurant chain, with some 1,400 restaurants enjoying
nearly double the annual sales of its nearest competitor.
Similar kind of success stories were also replicated in Germany and Australia in 1971. Germany has
more than 1,200 restaurants and Australia has some 700 McDonalds locations. The companys footprint
in France and England are also along similar line with 980 restaurants in France and more than 1,200
restaurants in the United Kingdom.
These six countries Canada, Japan, Germany, Australia, France and England are known as
McDonalds Big Six providing about 80 percent of international operating income. McDonalds
international operations are playing an increasingly important role in our companys result, as in 1995 its
7,030 restaurants across 89 countries produced sales of $14 billion.
Of late, McDonalds international openings have made headline news in the media around the world. On
January 31, 1990, about 30,000 people gathered in Moscow to visit the new, 23,680-square foot
McDonalds. This is by far being the maximum number of people ever served by a single restaurant.
The negotiation for this restaurant had begun since the Montreal Olympics, 1976 and is the largest joint
venture agreement between the Soviet Union and a food company. The Russian McDonalds was soon
serving about 40,000 to 50,000 customers each day i.e. 15 million people in its first year of inception,
which is supported by a $45 million food processing facility near Moscow, one of the most modern food
processing facilities in Europe.
But it was only the beginning. McDonalds opening in Beijing, China, on April 23, 1992 attracted more
than 40,000 Chinese customers to its 28,000-square-foot restaurant, equipped 29 cash register stations to
handle the flow. Located in the citys busiest shopping district, the restaurant has some 800,000
pedestrians passing by daily.

SELECTION OF PRODUCT
In India why Mcdonalds uses meat and vegetarian meals instead of beef and pork products
In order to cater to local tastes and culinary traditions, and often in respect of particular laws or religious
beliefs, McDonald's offers regionalized versions of its menu among and within different countries. As a
result, products found in one country or region may not be found in McDonald's restaurants in other
countries.

FAST FOOD INDUSTRY IN INDIA

The Indian fast food industry has evolved over time and always has been in line with the needs of
people of all ages and segments. There are enterprises which scale from one room outlet to a chain
having hundreds of outlets like McDonalds in India.
As per new research report Indian Fast Food Market Analysis, India is blessed with one of the fastest
growing fast food markets in the world. The Indian fast food market is growing at an annual growth rate
of 30-35%. Almost all big fast food brands of the world have succeeded in making their presence felt in
the country and most of them posting an appreciable growth. Although the market has witnessed robust
growth in the past couple of years, it remains largely under penetrated and concentrated in the
metropolitan cities. However, there is large room for growth in tier-II cities, tier-III cities which are
mostly untapped. Therefore, the future of Indian fast food industry lies in masses that live in tier-II and
tier-III cities. In 2013, the global fast food market is forecasted to have a value of $200 billion, an
increase of 29.3% and a volume of 94.7 billion transactions, an increase of 10.4% since 2008. The
consumer spending on processed food has increased at an average rate of 7.6 per cent annually from
2008 to 2010 and this is expected to rise at an average of around 8.6 per cent until 2012, Almost all big
fast food brands of the world have succeeded in making their presence felt in the country and most of
them are posting appreciable growth. It is estimated through the Euro monitor International and Credit
Suisse Emerging Consumer Survey, that the average
Indian McDonald's restaurants do not serve beef and pork products, in deference to Hindu and Muslim
belief. The only animal products available are chicken and fish. Meat and vegetarian meals are prepared
in separate areas of the restaurant due to religious laws; cooks preparing vegetarian dishes wear a
distinctive green apron. All McDonald's restaurants in India are certified halal.
Apart from selling the regular international McDonald's products such as Mc Chicken, Chicken McNuggets, Chicken Mc-Grill and Filet-O-Fish, McDonald's has developed a wide variety of vegetarian
products exclusively for the Indian market, as a large number of Indians are vegetarians. Some of these
products are the McAloo Tikki Burger (a burger with an aloo tikki-inspired patty made out of potatoes,
peas, and spices), the McVeggie burger (the vegetarian equivalent of the McChicken), the McSpicy
Paneer burger (a burger with a fried paneer patty breaded with Mexican and Cajun spices) and the
McSpicy Paneer Wrap (a Mexican wrap equivalent of the McSpicy Paneer burger). Other vegetarian
products exclusive to India are the Pizza McPuff and the McCurry Pan. The Pizza McPuff is the Indian
savoury snack called the puff stuffed with vegetarian pizza fillings and is similar to a calzone. The
McCurry Pan is a mince pie-inspired dish where instead of meat, vegetables and cheese are used. The
latter product had been discontinued, but there are plans to relaunch it in the exclusive vegetarian
restaurants McDonald's is planning in the country. In 2012, McDonald's India introduced the McEgg
burger exclusively for the Indian market, keeping in mind the large eggitarian population in the country.
The McEgg burger comprises a poached egg between two steamed buns and is extremely popular
among college students. A year later, it introduced Masala Grill burgers, an indigenous version of the
burger which consists of either a potato-soya or chicken patty, grilled and seasoned with garam masala
and dressed with roasted chilli sauce and onions.

McDonald's has also developed variations of its international non-vegetarian products exclusively for
the Indian market. The Big Mac burger is sold as the Chicken Maharaja Mac, where instead of beef
patties, chicken patties are used. A spicy version of the Mc-Chicken, the McSpicy Chicken burger and
its Mexican wrap equivalent, the McSpicy Chicken Wrap are also sold. It is to be noted that the
McSpicy Chicken burger is the Indian equivalent of the actual Mc-Chicken burger in the USA, albeit
served on a sesame bun, while the Indian Mc-Chicken burger is served on a sesame bun and is not spicy.
Discontinued McDonald's products in India include the Crispy Chinese burger (a Chinese cuisineinspired vegetarian burger), potato wedges and the Mexican Spice chicken and vegetarian burgers
CHALLENGES IN ENTERING INDIAN MARKETS
Regiocentricism: Re-engineering the menu
McDonalds has continually adapted to the customers tastes, value systems, lifestyle,
language and perception. Globally McDonalds 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 McDonalds came up with chicken,
lamb and fish burgers to suite the Indian palate.
THE VEGETARIAN CUSTOMER

India has a huge population of vegetarians. To cater this customer segment, the company came
up with a completely new line of v e g e t a r i a n i t e m s l i k e M c V e g g i e b u r g e r a n d
M c A l o o T i k k i . T h e s e p a r a t i o n o f vegetarian and non-vegetarian sections is maintained
throughout the various stages.
MACRO ENVIRNOMENT
PEST ANALYSIS
Now I am doing PEST analysis of McDonalds. PEST analysis will give us details about Political
,Economical, Socio-cultural and Technological analysis and effects of these analysis on McDonalds. I
am comparing both environments in USA and India.
POLITICAL INFLUENCES:
These are some influences a company doesnt have any control of.USA politically is well suited for
business of McDonalds . McDonald is very popular in USA. But government is trying to control
marketing of fast food because of health concern such as cholesterol,cardiovascular and obesity issues.
Good relations in terms of creating jobs and tax revenue for government is a must to succeed in any
market. India is very rich country in terms of politics. The world largest democracy is present in India.
But being nationalist country they create some difficulties for foreign entries.Bhatiya Junta party is one
of the leading Hindu national party and they are against fast food chains as they want to see only
vegetarian restaurants in their country. Their party members always protest against fast food using meat
in their menu. Big risk for MacDonalds is BJP. Good news is that trends in India are changing and
young people like to eat fast food. Second good news is that India is changing slowly from nationalistic

society to liberal mind set up and Congress party in power is the main prove of liberal society.
McDonalds expanded very fast in the last decade.
ECONOMICAL INFLUENCE:
Economical variables such as currency exchange, employment, Interest rate, tax ratio and need of
international supply. Most of the organizations depend on foreign supply of raw materials for their
products making. Currency exchange also have a great impact on any organistion.USA has a High tax
ratio, Low unemployment developed country, dealing in international currency (Dollars).Business for
McDonalds in USA is already established and low risked but for India high unemployment rate, dealing
in Rupees as currency and millions of people living below poverty line is a concern for McDonalds, but
India is having a booming economy, low tax rate and availability of labor in abundance and
development of middle class society in India is a positive sign for McDonalds future.
Socio-cultural influences:
Culture and society has a big impact on any organization sales. McDonalds in USA is serving a liberal
society. Religion has not much effect on McDonalds. Culture is very much simple. Bsut in India society
is very versatile. Though India is heavily populated but still Hindus dont eat meat, Muslim only eat
halal and they dont eat pork. In India religion has a very big impact on society. For McDonald it is a big
concern. But in India life style is changing, earning power is increasing, middle class is getting bigger in
its size and people like to eat outside in restaurants this has a very good impact on society.
Technological influence:
One positive benefit of globalization was technological advancement .Although McDonalds doesnt use
too many complicated machines in their food production but still they need highly competitive
technology. Technology is needed for example in supply chain management, order taking, Inventory
control, easy and quick payment procedures .Use of technology can make management more reliable,
effective and cost saving in short term as well as long term. Customers happiness after getting what they
are looking for on time and in a disciplinary way make them come over and over again. In USA
McDonalds use very effective and expensive technology to be in a very competitive position to their
rivals. In India as franchises they use high technology. They use very good till system, good and
disciplined order taking and well managed staff who knows the proper use of technologies inside the
store.
MICRO ENVIRNOMENTAL ISSUES:
Competitive Intensity:
Competitive intensity of McDonalds can be determined with Porters five forces. Porter five forces is
business strategy formed by Michael E. Porter of Howard business school in 1979.he determined five
forces which actually determines attractiveness of the market and competitiveness. These five forces are
1) Threats of new entrants
2) Threats of substitute
3) Bargaining power of customer
4) Bargaining power of supplier
5) Competitive rivalry with in organization.
1)Threats of New Entrance:

Entry to a restaurant Business is very difficult. It is hard to make a prominent brand name. There is high
research and development costs and high cost of entry. Strong brands already in competition make it
more difficult such as McDonalds, Pizza Hutt ,Dominos etc. New entrants face a very high
competition in the start of the business. In USA and India both Entrance of new organization is very
difficult as explained above.
2) Threats of Substitute:
The substitutes in this industry are very high. People can choose variety of products they can either
choose Burger King, KFC, Indian Cuisine, Indian local shops, Indian Vegetarian restaurants. The same
situation is faced by McDonalds in USA and all over the world.
3) Bargaining power of customers:
Bargaining power of customers refers to pressure a customer can exert on a business to get good quality
of food, good customer service and low price. Bargaining power of customer in this industry is low. As
McDonalds provide a standard service, One price strategy and quality of food. Customers have low
bargaining power throughout the world in food industry.
4) Bargaining power of supplier :
Bargaining power of buyer in this industry is low, situation can change if the main ingredients are not
available. But with McDonalds simple menu and working with many supplier, they are not facing a big
threat. So the bargaining power is relatively low.
5) Rivalry with in the organization:
Fast food restaurant industry is very competitive. The competition is so high as all the organizations
want to get hold of customer base. Food industry all over the world has the same criteria because there
are many small businesses operating in abundance and also top brands. McDonalds knows about the
customers taste and preferences all over the world. So they started Mccafe (morning breakfast).so
McDonalds is providing quality food from early morning till late night in order to get competitive edge
In the market.
Customer Characteristic:
India is the second most populated country in the world. It has 28 states and almost 4 times the
population of USA. India has more than one billion population. Three fourth of Indian population lives
in urban areas. though per capital income is very low in India but still people like to spend on costly
products and eating out. Out of millions of households in India 49% lives on low income,30% lower
Middle income,12% Middle income group, 5% Upper Middle income group and 4% high income group.
Comparing this with USA where middle income group is very high. Consumers in India are highly
family oriented. McDonalds targets high income earner, Middle income earner and lower middle
income earner in India. Indian consumer are getting brand awareness through internet, TV, Newspaper,
Radio, Magazine etc. Middle income group is getting bigger in size day by day as a result of economic
boost in India and that is very good news for McDonalds. Indian consumers are now getting
environmental awareness. They like to use Eco-friendly products and McDonalds is very helpful in
terms of packaging and recycling. Family system gives a big chance for McDonalds to get their sale rise
as Indians are buying food in bulks. Indian consumers are becoming very open minded which is a
positive sign for McDonalds. For McDonalds to succeed as they are now, they should go to expand in
urban areas as well as rural areas and target middle and lower income earners and beside this they
should introduce certain products which can be afforded by low income earners. Customers like spicy

foods and McDonald has introduced many products which are spicy and tasting according to the
preference of Indians.
COMPANY ISSUES:
Competitive Strategies:
s
As we know fast food industry proved to be very competitive industry. McDonalds from its day first
has always tried to have strong competitive advantage over its rival. This is the only way for
McDonalds to survive in globalised environment .McDonalds strong rivals KFC,Dominos,Pizza Hut
and Subway are also operating in India as well as USA.In the fast food most important thing for some
customers is how quickly you take order and ready the meal for customer.KFC and Jumbo King are
offering very quick service to customers and in this way taking customers from Mcdonalds .Mcdonalds
has tried very well to overcome this advantage by making and readying its food as quick as
possible.Mcdonalds is trying to improve its graph for customer satisfaction and they are investing
heavily through out the world including India.mcdonalds uses Wi-Fi and they are trying to emphasise on
demographic characteristic of its customers in the area.Each month mcdonalds add some thing special
in its menu.To check Mcdonalds quality and reliability administration has developed a very unique idea
of Gapbuster visiting Mcdonalds as mystery customer.They are expertise who comes in the form of a
customer and after serving give credits scoring to the store.Mcdonald has introduced McBreakfast from
6 am to 11 am.
Mcdonalds in its competitive strategies is emphasising to target customers in the new urban
areas.Mcdonalds Indian menu offers very competitive strategy for Mcdonalds.Vegetarian
products,Halal and non vegetarian foods for its customer is a unique and successful idea in India.Kids
like mcdonalds in India as they are giving free toys to customers who buy happy meal
deals.Mcdonalds has actively invested in Discount vouchers given as a leaflets,newspapers,Magazines
certainly is a good business strategy and it has boosted Mcdonalds customer number,Business and
sales.
Diversification:
Mcdonalds has diversified product range in India and all over the world.Due to diversified nature of
products Mcdonalds is famous among masses.They offer McBreakfast,Lunch and Dinner,Coffee and
many more diversified products.Now if Mcdonalds move to fully new business for example Hotel
(McHotel) will be a concern.According to guardian news moving to totally new business will damage
the image of Mcdonalds.If they are really interested they should do a partnership with another
company.As Burger King has done it.landor marketing Director said move like this will certainly change
the fundamentals of the company.Diversification can be revealed from Indian market.75 % menu has
been Indianised.Halal food for Muslims has been introduced.Mcdonalds happy price menu in India,the
5ps and flexible operating platform all shows Mcdonalds to be a diversified organisation.
Organisational Structure of Mcdonalds:
Mcdonalds has a centralised organisational structure.Centralised structure means the decision making
comes from top management in the hierarchy and people on the floor are not contributing to the decision
making.The decision making system is very much Bureucratic.In centralised structure main decisions
are made by top level management.Mcdonalds all over the world has the same structure and they have
to follow all the decisions from the parents company as they are working as a franchise.Most oof the fast
food chains (for example KFC,Burger King etc) have the same centralised structure.Centralised
structure has some advantages and disadvantages.Advantages like Common policy all over the world

can easily be revealed and practised.other parts of the Business are stopped from being too
independent.central control is easy to handle.it has great Economies of scales.specialisation can be used
greatly.Disadvantages include some time too much bureaucratic organisation leads to extra layers in
hierarchy.it can reduce motivation in staff as we go down the hierarchy because of lack of involvement
in decision making process.Customers are not benefited some times as there is a need of quick decision
making.
Standardisation Vs Adaptation:
Standardisation:
Mcdonalds has a slogan. Think globally and act locally.Mcdonalds sell standardised product.the
taste make up,ingredients,looks,weight etc will be similar In one part of the world to the other part of the
world.Cheese Burger in United Kingdom will taste similar to a cheese burger in USA.Think globally
and act locally can be proved in India as Mcdonalds in India has changed its menu list.Halal Burger and
McVeggie burgers have been introduced looking to the customers believes in India. Similar experience
has been exercised in Middle east and Fiji. In Middle east eating of Bacon is banned by
government.Halal food is served in Middle east.McVeggie Burger in India will taste the same in
comparison to McVeggie burger in Fiji.Mcdonalds sell standardised products.All the products should
be looking,tasting,weighing and prepared in the same way across the globe.McVeggie burger was
prepared in India after Research and Development was condcucted purely in India.
Adaptation:
Mcdonalds follows strategy of product adaptation.Mcdonalds slogan think globally and act locally
is the best example.the best example for mcdonalds adaptation strategy will be India.Mcdonalds
cannot use beef Tallow to fry the fries and burger cutlets (Cows are sacred due to religious belief of
Hindus).Bacon cannot be used in Middle east as they are Muslim countries and it is against their
religious belief to eat pork.products are tailored according to the personal taste of the country people
where it operates.Due to adaptation Mcdonalds menu in various countries is different.
Motivation for Market entry:
Parent company of Mcdonalds USA was aware of some facts that motivated them to enter Indian
market.some of them are given below.The worlds second largest country by population after
china.Indias population is 4 times more then USA.India call itself the most democratic nation in the
world so it means all the decisions are made by parliament and not one person or dictator who can freeze
assets for a company in any kind of bad relations emerging.Brand awareness is improving day by
day,literacy rate is improving,middle class is getting larger,econonomy of India is booming (now
counted in BRIC s nations which means Brasil,Russia,India and China they are the fastest developing
countries and future economic power),Unemployment is reducing,Laws are flexible for foreign
businesses.all these facts contributed to motivation of Mcdonalds to enter Indian fast food Market.
Modes of Market entry:
There are different ways a company can start opening their business in another country.for example
Franchising,licencing,Joint Venture,wholly owned subsidiary etc.But Mcdonalds entry to India involved
join venture and Franchising technique.
Franchising is the right a firm acquires from another firm that allows them to do particular business
activities, such as service or selling the good , under the name of

a specific firm, e.g. McDonalds.in Franchising a company follows strict rules from its parent
company.mcdonalds have 210 stores in India. Mcdonalds all over the world has almost 85% of
franchises.the benefit of franchising is that in short period a company expands its business.the risk
involved for parent company to move into another country and invest heavily can some times be too
risky but when local people start doing it by themselves,the risk level is minimised.quality control is
difficult with franchising.
Although Mcdonalds indian is a 50-50 joint venture company managed by indian.
Performance:
Much of retail is struggling in India but Mcdonalds has been seen unaffected and its planning on
accelerating its expansion on the Indian subcontinent.Mr Jatia who is managing half of the indian
franchises said number of customer is jumping 10% to 15 % each month compared to a year
ahead.people of India are now relying on Mcdonalds.Mcdonalds adaptation policy has boosted its
sales.Mcdonalds annual sale through out the world is $29 billion annually.Burger king is the second
largest fast food organisation in terms of sales and is strong competitive rival.Due to company having a
customised menu in India Mcdonalds is getting popular day by day.performance can be measured in
terms of outlets opened by Mcdonalds in the past years.in 2010 and 2011 Mcdonalds opened 80 stores in
India.In 2010 mcdonalds sale improved by 30%.Vikram Bakshi MD Mcdonalds India said the total
sale of $29 billion doller Mcdonalds india just accounts for 0.37% of the whole sale.but the potential is
so high and are expecting to get higher in future.Although Mcdonalds is facing certain problems like
roads are not in very good condition for transport,power supply shortage etc but still sales rise and
customer satisfaction shows that Mcdonalds in India is performing very well.
Short,Medium and long term strategies employed:
Strategy is a planning that is used by an organisation to achieve its goal and objectives.short term
strategy starts from a minute to 6 moths,medium account from 6 month to a year and long term mean 5
years or more strategy.In short term Mcdonalds is trying to bring in innovation and make customer
satisfy.day to day issues are planned to satisfy customers.New products are introduced each month.in
medium term they are trying to maximise its profit and sales.In long run Mcdonalds is planning to open
new branches across india and indian Mcdonalds sale which accounts only 0.37 % of overall sale of
Mcdonald to be taken to 0.50 percent and more in the coming years.
SWOT ANALYSIS
SWOT analysis is a strategic planning method used to evaluate strength weaknesses,opertunity and
threats involved in a project or in Business.SWOT analysis will give us a quick review of an
organisation current status.
Swot analysis for Mcdonalds in India
Strength:
Mcdonalds is a market leader in the fast food industry.Mcdonalds has a very strong brand
image.Mcdonald has expanded its business to more than 125 countries with more than 33000 outlets
through out the world.mcdonalds has one competitive advantage and that is Strategic location.In India
they are located in busy shopping malls,Airports and busy drive through.
Weaknesses:
Mcdonalds has created very successful brand image but the market segment is too focused on
Kids.Mcdonalds is often related to unhealthy food and obesity.Employee turn over rate is so high.these
all are weaknesses of mcdonalds in the world and India in particular.

Opportunity:
Mcdonalds can introduce healthy food consisting of low calories items.they should put more efforts in
Reseach and Development.Management should try find ways to reduce food wastage which leads to cost
control.new products with different variety should be introduced to capture the market.
Threats:
Mcdonalds is facing major competition from its rivals KFC and Burger King all over the world.In India
local curry shops are offering great challenge to mcdonalds.Company rapid growth has made mcdonalds
very velnerable to other contries economic slowdown.Press associating Mcdonalds with obesity
destroys Mcdonalds image.mcdonalds in the past has been sued for its unhealthy products.mcdonalds
should try and solve these problems by investing heavily and effectively in research and development.
MARKETING MIX OR 4 Ps:
Price,Product,Place,Promotion are collectively called as product mix.In order to meet organisational
objectives product mix is considered to be very vital.it should be viewed as coordinated and interated
package of benefits that shows the characteristics of customers and and related place.
Product:
product is the physical product or service that is offered to a customer.as we know that Mcdonalds is
very customer oriented and all their products are customised according to the local community.in order
to succeed in market research has suggested that customers are always looking for innovation and new
products.Mcdonald is famous for its product innovation.Mcdonalds has introduced new
products,removed old products and always looking for the better products so that customers are
satisfied.mcdonalds india majority of products are vegetarian products.
Price:
Price is a very important tools which identifies how reliable and qualitative a product is.when a
customer is buying some thing He/she first draw in his/her own mind of what the product is worth of.If
the price of a product is very low customer think quality is being promised.price should really reflect
brand and its integrity.Mcdonalds products are classified in two categories,BA (Branded affordability)
and BCV (Branded Core Value products)an example of BA is McAllo tikka and chicken Mcgrill burgers
which cost consumer 20-30 rupees.BCV products mainly include McVeggie and McChicken Burgers
that cost 50-60 indian rupees.
Promotion:
Promotion is a way by which company tries to communicate with public and make them aware of what
the company is offering.One of the method is Advertisement.Advertisement is conducted on
TV,Cinema,Internet,magazines,Poster site,press and radio.other ways of promotion includes direct
mail,loyalty scheme,door drops and merchandising.Mcdonalds is unique in the way they do
promotion.In order to capture the market Mcdonalds india has promoted well to improve its
sales.Although advertising is expensive but the return is so high.Mcdonalds spends big part of its budget
on promotion.
Place:
Place plays very important role in launching a product and making it successful.Mcdonalds has
expanded through out in India Urban areas.Mcdonald is currently targeting urban areas as we know that
big part of population is living in urban areas.place doesnt only include physical location but it is
includes all the processes that eventually leads to product ending in customers hand.Place plays very
important role in getting priority over the rivals and place should be selected after research on the local
demography,income level and customers preferences.Mcdonalds in india chooses a particular place after

long research and checking local areas demographic characteristics,income level etc.this is the reason
Mcdonalds is very successful in india.
CONCLUSION:
Mcdonalds is considered to be the King of the fast food.To achieve this greatness Mcdonalds has tried
hard for ages to prove itself in the competitive environment of Fast food.The key factors in success of
Mcdonalds in my view is innovation,customisation,good management and above all best Marketing
strategies adopted by Mcdonalds.Mcdonalds in India has a very bright future because of the customers
bank,customised approach from Mcdonalds towards its customers and above all the strong brand Image.

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