Analysis of McD

1. McDonald Adaptation in India
Presented by:
Gaurav Aitwani
Rhea Nayyar
Rohit Chaudhary
Shubham Mittal
Trishala Gautam

2.  Overview
 Introduction
 History
 Indian market
 Initial challenges
 Understanding Indian Custom
 Major competitors
 Supply chain and Cold Chain
 Localization strategy
 Marketing mix
 Conclusion
Presentation outlay

3.  The article discusses about how McDonald’s India
managed to up the trend in a struggling economy, its
early years and business strategy to get more out of its
stores in India. The article also briefly discusses how
McDonald’s adapted to local culture in India, its
localization and entry strategy, its strong supply chain
and pricing strategy
Overview

4.  Founded: 1940 in United states
 CEO: Steve Easterbrook
 McDonald’s was initially a barbeque restaurant
operated by Richard and Maurice McDonald
 Later on businessman Ray kroc joined the
company as a franchise agent in 1955, he
subsequently purchased the chain from the
McDonald brothers.
 McDonald’s primarily sells hamburgers,
cheeseburgers, chicken, french fries,
smoothies, cold drinks, milk shakes, etc.
Introduction
About MC
Donald

5. Year Events
1996 •First McDonald‘s restaurant opened on Oct. 13, at Basant Lok in New
Delhi.
•First McDonald‘s restaurant in the world to not serve beef and pork
based products.
1997 Thru restaurant at Noida (UP)
First disabled friendly store at Noida (UP),
1999 First Mall location restaurant at Ansal Plaza (New Delhi)
2000 First highway restaurant at Mathura (UP)
2002 The first restaurant at the Delhi Metro Station
2004 McDonald's Delivery Service (McDelivery) introduced in New Delhi
2006 100 McDonald's Restaurant opens in India10th Year Anniversary
2008 First 24 hours McDonald's Restaurant opens at Old Delhi Railway
Station
2013 McDonald's™ Celebrates National Breakfast Day
History

6. Indian Market( early challenges)
• To Change
Indian
consumers
perception
• Pricing
• Vegetarianism
• Competition
from local food
retailers

7.  To enter a market where consuming beef is “off limits”
was very challenging and ambitious.
 McDonald’s objective was to be inspired by the culture
of India and to deliver the greatest of food experiences
to the customers in India bringing in the splice of life.
 They were aiming for to change the local perception of
the new product being “American” and remove the fear
of unknown, where family “dining in” was a custom for
centuries.
Initial Challenges

8.  McDonald’s entry into India was met with stiff
opposition. Members of the Hindu organization, the
Bajrang Dal,
 The biggest problem McDonald faced was during the
launch of its product in India was the public image it
was carrying as an International food chain and not
matching Indian standards.
Cont...

9.  Offering the cheapest burger in the world was not easy.
In India, McDonald’s offered a menu that did not had
any beef or pork items as well as special product
formulations for accommodating Indian culture and
palate.
 Additions to the menu have been a regular feature of
McDonald’s in India.
 The company in India conducted regular qualitative as
well as quantitative studies, which tracked the target
consumer lifestyle in India.
Understanding Indian Customs

10. Major Competitors

11. Burger king Subway Pizza Hut
The company’s menu
includes breakfast,
lunch and dinner items
available a la carte.
Hamburgers, chicken
sandwiches, chicken
tenders, French fries
and beverages are
categories featured on
the menu. Burger King
recorded over $1
billion in revenue
during 2014
The company’s menu
consists primarily of
submarine
sandwiches and
salads. Subway
reported 2014 sales of
$11.9 billion in the
U.S. alone.
Pizza Hut is split into
several different
restaurant formats: the
original family-style
dine-in locations;
storefront delivery and
carry-out locations;
and hybrid locations
that have carry-out,
delivery, and dine-in
options

13. • In commerce supply chain management (scm) the
management of the flow of goods and services.
• It involves the movement and storage of raw materials,
wip, inventory and finished goods from point of origin
to point of consumption.
• Interconnected or interlinked networks, channels and
node of businesses combine in the provision of products
and services required by end customers in a supply
chain.
Concept Of Supply Chain Management

14. Supply
Chain
Concept
Suppliers
Company
Franchisees
Supply Chain
MC Donald Supply Chain is based on three-legged stool concept:

15.  McDonalds spent a few years setting up a
unique cold chain.
 The cold chain is necessary to maintain
the integrity of food products and retain
their freshness and nutritional value.
Cold Chain

16. Process of Supply Chain Management
PROCUREMENT
WAREHOUSING
TRANSPORTATION
RETAILING

17.  Localization refers to firstly understand the local market
of any country before starting any business than to plan
our product and services to be served according to the
need of that particular market.
 As every country has different types of peoples lives in
and need and demand of food and an other service of
every business organization has to serve according to
the need of that particular market.
Localization Strategy

18. McDonald’s Localization Strategies

19. LOCALIZATION
STRATEGIES
INDIANIZED
MENU
LOW PRICES
SET UP FAMILY
RESTURENTS
Cont....

20. Marketing Mix

21. Deserts

22. Cont...

25. their

26. Cont..

32. Cont...

34. Cont...

36. • McDonald’s recognized the unique problems and opportunities of the Indian
market. The company then took its time, adapting its products and just as
importantly its corporate strategy, and has been hugely successful since.
• At the same time, the company cannot afford to become complacent and rest
on its laurels. Any future missteps, however small, could ruin McDonald’s
efforts and hard fought gains in the country, allowing the company’s rivals to
catapult past them and onto even greater success.
• In order to sustain in a very competitive market McDonald’s has to
continuously think of bringing in new concepts into all its operations
especially in marketing.
• The result of a spontaneous thought led to the introduction of breakfast
outlets and a chance encounter with a technology specialist ended up with
online booking orders and birthday parties and signature outlets.
• The success of McDonalds in India could be measured by its continuous
growth in Indian fast-food market with 210 branches across India
Conclusion