GOLBAL MARKETING

By GARVIT SISODIA

McDonald's History INDIA

Entered in India 1996
McDonald's India is a 50 50 JV partnership between
MCDONALDS CORPORATION (U.S.A) and two Indian
businessman Amit Jatia and Vikram Bakshi
Trained extensively with their Indian management team in Indonesia
and US before launch
The entire menu was changed w.r.t Indian market

COMPETITIVE ADVANTAGE
McDonalds success lies in its utilization of technology, routinization
of work.
McDonald's maintains its competitive advantage by constantly
creating new items to add onto its menu
Supply chain: they buy supplies in bulk and, thus, get lower prices.
Real Estate: they lease land and property they own to franchisees
McDonalds purposefully aims their brands at kids

McDonalds India: channel network

COMPETITIVE ENVIRONMENT

1.

PORTERS 5 FORCES & MC

DONALDS
Threat of competition HIGH Very competitive Fast Food industry
Competitors Advertising Capabilities Location of outlets Major
competitors- Burger King and YumBrand INC.

2. Threat of New Entrance HIGH Regulation of Limit Easy Access Market

and Low start up cost Example of SubWays market penetration
3. Threat of Substitutes Low-Moderate Availability of the MCD products
Choose MCD for Easting and Entertainment Narrows Threat of
Substitutes due to introduction of local taste products.
4. Power of Suppliers LOW Worlds largest restaurant chain in sales High
bargaining power over its suppliers Most of them owe MCD for their own
existence LOW the power of suppliers- lower the cost of raw materials
and HIGH competitive price.
5.

Power of Buyers LOW Industry limitations Low quantity purchases

ISSUES FACED BY MCDONALDS

Nutritional issues MCD taking away the traditional nutrition values
Replace the fresh and healthy food by mass production Projection the
product nutrition values Comparison of daily consumption and MCD products
Serves 30million people daily
Advertising Issues 2billion dollars for Advt annually Concentrated on
Children- Parental Concerns MCD has a better advertising than its customers
Follows the advertising codes of each country Making aware of MCDs
charity activities, events and learning programs
Employment ethics and issues Criticized as low paid jobs- named
McJobs Low paid, non-union, part time jobs with low rights and conditions
Giving importance on individual goals than organizational goals Fact of
1.5million workers with above 70% job satisfaction rate Introduction of
collective tips system

PESTLE ANALYSIS

POLITICAL
The business operation of an organization is always
influenced by the policies of state and its government.
In India, McDonalds business is also under the control
of governments rules and regulations
The main issue of controlling food business is health
and other issues are license, employee laws, tax issues
etc.
Political instability of local state is also affects
McDonalds business.

ECONOMIC
All companies are affected by ongoing global economic
slowdown.
McDonalds India faces different scale of tax and
revenue measurement.
McDonalds also faces difficulties because of
international currency fluctuations especially in its
global food distribution.
Local economical condition is also responsible for
affecting McDonalds operation.

SOCIAL
The life style of people is being changed and the
demand of this change affects McDonalds.
In India, Hindu people prefer vegetable, Muslim people
avoid pork. To fulfil the customers expectation,
McDonalds needs to research the market and also
needs to provide effective food menu.

TECHNOLOGICAL
The impact of technological innovation is also
considerable to meet the customers expectation.
As all existing food chains for instance, KFC, Pizza Hut
etc, compete each other, McDonalds has to ensure the
all technological access to influence the customers.
Modern and speedy distribution channels, easy and
quick payment facility, customer entertaining
equipment in store, wireless internet facility in all stores
etc. can help McDonalds to keep on its success.

CULTURAL
McDonalds is famous for beaf burgers world wide however
when they came to India they decided to not sell beaf.
McDonalds introduced an Indian menu that was more
spicy so as to cater to its Indian costumers. Its India menu
included masala grill, mc maharaja, etc.
They also introduced burgers and wraps starting at INR 25
to cater low income house holds.
For the first time McDonalds has opened a vegetarian
restraunts in vaishno devi to cater to its Indian consumers

SWOT ANALYSIS

STRENGTH
Strong brand name, image and reputation.
Large market share.
Strong global presence.
Specialized training for managers known as the Hamburger University.
McDonalds Plan to Win focuses on people, products, place, price and promotion.
Strong financial performance and position.
Introduction of new products.
Customer focus (centric).
Strong performance in the global marketplace.

WEAKNESS
Unhealthy food image.
High Staff Turnover including Top management.
Customer losses due to fierce competition.
Legal actions related to health issues; use of trans fat & beef oil.
Ignoring breakfast from the menu.

OPPURTUNITIES
Growing eating trends among consumers.
Globalization, expansion in other countries (especially in China ).
Diversification and acquisition of other quick service restaurants.
Growth of the fast-food industry.
Worldwide deregulation.
Entry into breakfast category

THREATS
Health professionals and consumer activists accuse McDonald's of
contributing to the countrys health issue of high cholesterol, heart
attacks, diabetes, and obesity.
McDonalds competitors threatened market share of the company both
internationally and domestically.
changing customer lifestyle and taste
Increased competition from local fast food outlets.