FACULTY OF HOSPITALITY MANAGEMENT,

TOURISM AND GASTRONOMY

Career of Hospitality Management

CRITICAL ANALYSIS 01: RECOGNIZE THE

CONSUMER CHARACTERISTIC, COMPETITION AN
ENVIRONMENT OF A A&B BUSINESS(Mcdonals in
India)
Course: Food and Beverage Marketing
Professor: Carlos Alcocer Fulle
Students:

(U1110041)

Arauco Acosta, Luis

(U1110226)

Burga Munguia, Lucrecia

Rivadeneyra Vicente, Daniela
Rubio Rojas, Jaminet
Sagastegui Ampuero, Alessandra
Lima Peru
2015

(U1020366)
(U1110294)
(U1110878)

The Case Mcdonals in India

1. Analysis of consumer
Consumers in India are somewhat difficult, because most of them are
vegetarians, they do not eat beef or pork. That is one of the main reasons
why McDonalds had to change its strategy before entering the Indian Market
in 1996. McDonalds spent about six years, planning and searching about
Indian consumer tastes. McDonalds first understand the Indian culture and
its buying behavior. Most Indians, including the Middle Class, are price
sensitive. Thats why McDonalds had to reduce its prices so it could be
affordable for Indians. When buying, costumers are driven by a number of
factors such as beliefs, tastes, culture, personality, desire, etc. What
influences a lot in Indian customers is culture, 70% of Indians are still
traditional, poor and live in rural areas while 30% of Indians have emerged
as rich and modern.
McDonalds adaptation and willingness to change its core product is what
made it triumph. McDonalds has adapted not just in India, but in other
countries. McDonalds studies their customers very well, and then implement
a strategy. For example, when they implemented the McDelivery service in
India and it sales increase in 15%.
McDonalds has positioned itself as a family restaurant, because most of the
time children have the power to pull parents to visit certain places. But it has
also been popular for teenagers because of their attractive promotions to
attract the young adults.
As we saw, the consumer is central and there are a lot of factors and issues
a company has to deal with in order to reach to the consumer, in case of
McDonalds, this company had to face many issues in order to success in
the Indian market, and it wasnt easy because it meant to change in a great
level its strategy, marketing mix and positioning.

As we know, to reach to the consumer, McDonalds has to know the

characteristics of the consumer, thus, having a greater look on the factors
that influence the consumer was vital. As a result, McDonalds started to
know the cultural factors (culture and subculture) thats why the company
introduced new products especially for Indian consumers such as de
Maharaja Mac; also, the lifestyle, beliefs and attitudes have became
important because the food habits of the Indian consumer varies a lot
among all the country, and so McDonalds had to study the ethical, religious
and food preferences in each territory if the company would like to set up
new and more outlets in any other region or territory of India. All of this was
necessary in order to not spoil the entering strategy at the first chance;
thats why they made a study and they found that, for example, Jais avoid
meat totally or Buddhists in India are vegetarian, as a result they offer
veggie burgers for vegetarian consumers. In addition, we think is important
to mention that personal and social factors plays an important role too,
because these two enclose economic situation, lifestyle, groups and family,
thats why McDonalds decided to launch new products (e.g. the fourth
flavor) during the festival seasons because in this period, Indian consumers
are more eager to eat out and purchase new products mainly because their
spending habits change (spend more money because theyre having a great
time, their family is around, and say why not to try something new) and they
are willing to pay to eat something new and spend a good time with their
relatives; and here we identify how many punctual factors can change the
purchase decision of the Indian consumer of McDonalds.
2. Competition
The carefully planned entry and expansion strategy in accordance with
Indian's changing political, economic, and cultural landscape has impact in
their competition
Mcdonals encountered with several challenges in the beginning in terms of
adapting to the tastes, preferences and culture of the local customers,

changing the perception of Indian consumers towards American food habits,

the fast food giant emerged to be the market leader by 2011. Though
McDonalds commands the leadership position in the Indian fast food
market their exists stiff competition from the local traditional fast food
retailers as well as other multinational firms which entered the fast growing
One of the most important Macdonal's competitors is Indian home, we
analyzed that most Indian prefer to eat home-cooked foods because they
thing home-cooked food are more fresh, healthy, and cheaper.
Other Macdonals competitors are Indian restaurant, dhabas, Hotel
restaurants, etc. Also other important is Indias food imports because have
been growing more than 37% per year. Although Indian is the world's third
largest food producer, its processing industry is very small compared to
other countries in Asia, Europe, and the United States. So is one of the
reasons Mcdonals can be established in the Indian Market.
Mcdonals had to respect local cultures and had adapted their menu and
dining experiences to local preferences. Mcdonals listen what their customer
ask for and they certainly will continue to cater to local tastes and
preferences.

3. Environment of a F & B business.

In India we can find different food traditions and preferences, thats the
reason why the industry of F&B focus more in multi-cuisine. The
preferences of Indians consumers is the reason why in the beginning fast
food chains didnt arrive in India as it is explain above in consumers
preferences. With the time this industry has increased in India with food
stalls, with restaurants in hotels, canteens, hospitals, prisons, schools,
airlines and other establishments.

Another thing about this case we can say that consumers preferences
affects a lot in the success in businesses of F&B and in the emergence of
them because is a factor that determines in what kind of F&B business to
start based on providing quick service, fast casual, casual and fine dining.
Another fact important in the growth of F&B businesses is the adaptation of
the company when entering to a new market by respecting the culture, the
government policies, green and culture sensitivity; in the case of India the
western culture has affected Indians values, traditions, as well as the entry
of foreign multinational corporations especially in the food industry. Talking
about Mc Donald in India, this business has generate employment
opportunities and as a new company it has to adapt to the sensitiveness of
the people there doing publicity to make sports or taking care of the
environment or adding health options, new promotions, innovations and new
products to get accepted.
As an entry company, most businesses of F&B has to come with different
strategies to get into the mind of customers and in a long term get their
loyalty; for example the one that apply Mc Donald that is the corporate
citizenship strategy being involves in many community projects in India or
the pricing strategy by offering a variety of products to attract customers in
other words being flexible with prices, their location strategy taking
advantage of tourist appeal and their eating culture. Mc Donald knows how
to take advantage from their target market in India this includes children
because they has a power of influence of parent decisions making about
buying products.
Conclusions:
Mc Donald case in India is a good example of how food and beverage
businesses deal with different challenges when entering to a new market
because consumers play an important role in the success of it, by this is
important that a F&B business face these challenges by delivering products

with an additional value or responding to changing consumer demands

faster, by driving down costs or maintain them reasonable for the customer
and by minimizing environmental impacts.
Mc Donalds showed us how a company could manage the marketing mix
inspired in the geographic aspects and cultural environment.
Mc Donalds is a company that must to accept the services and quality
standards, however in this case the adaptability of the company was one of
the factors of profitability in India.

4. Bibliography
-ICMR. (2011). Marketing McDonalds in India. 17th April 2015, de
McDonald's

Corporation

Sitio

web:

http://www.icmrindia.org/casestudies/catalogue/Marketing/MKTG270.htm
- Adam Jones . ( Jul 18, 2014). Comparing McDonalds with its competition.
17th

April

2015,

de

Market

Realistic

Sitio

web:

http://marketrealist.com/2014/07/must-know-comparing-mcdonalds-withcompetition/
-Semana. (09/06/2012). McDonalds ahora es vegetariano en India. 17th
April

2015,

de

SEMANA

Sitio

web:

http://www.semana.com/mundo/articulo/mcdonalds-ahora-vegetarianoindia/264289-3

5.

Video
-https://www.youtube.com/watch?v=c-Vdl8Z2UYw

- https://www.youtube.com/watch?v=xZR9B22pkIo