Market Mix and Strategy of Mcdonalds India

Market melt and Strategy of Mcdonalds IndiaMcDonalds HistoryMcDonalds was started as a crusade-in restaurant by two brothers, Richard and Maurice McDonald in California, US in the year 1937.By mid-1950s, the restaurants revenues had reached $350,000.Ray Kroc, distributor for milkshake machines, expressed interest in the business, and he finalized a deal for franchising with the McDonald brothers in 1954.He open a franchising comp either, the McDonald System Inc. and appointed franchisees.In 1961, he bought step to the fore the McDonald brothers sh argon for $2.7 million and changed the name of the company to McDonalds Corporation. In 1965, McDonalds went public.McDonalds in IndiaIn 1996, first McDonalds restaurant opened on Oct. 13, at Basant Lok, Vasant Vihar, New Delhi.McDonalds India is a 50 50 JV partnership between McDonalds Corporation (U.S.A) and two Indian businessman Amit Jatia (Hardcastle Restaurants nonpublic Limited, Mumbai) and Vikram Bakshi (Connaught Plaza Resta urants Private Limited, Delhi).Approximately 75% of the menu available in McDonalds in India is Indianized and specifically designed to woo Indian customers.The McDonalds philosophy of QSCV is the guiding push up behind its service to the customers.MARKETING MIX OF McDonaldsThe marketing mix of a company consists of the various elements as follows which form the core of a companys marketing clay and hence helps to achieve marketing objectives.McDonalds is a leading international unshakable food restaurant chain with 30,000 restaurants spread crossways the globe. In India, it launched its operations in 1996, with two stores. It now has 54 restaurants with a daily inflow of 500,000 customers.It be afters to add 15 more outlets by the end of 2004. As per the Informal Eating out (IEO) survey involving the survey of sc ard food chains in India, conducted by ACNielsen, McDonalds was found to be the leader in fast food chains. Many factors goat be attributed to the success of McDona lds Indian operations.A marketing strategy must be created in order to determine the means by which a congeal of clear objectives may be met. Objectives communicate what marketers want to achieve, guide marketing actions and are used to measure how well a plan is working. They send word be related to market share, sales, reaching the target audience and creating informedness in the marketplace. Long-term objectives are broken down into shorter-term measurable targets, which McDonalds uses as milestones along the way.Results can be analyzed regularly to see whether objectives are being met. This type of feedback allows the company to change plans and allows flexibility.Once marketing objectives have been established, the next stage is to desexualise how they will be achieved. The marketing strategy is the statement of how objectives will be delivered. It explains what marketing actions and resources will be used and how they will work together.4Ps of Marketing MixProductMcDonalds places considerable emphasis on developing a menu which customers want. Market research establishes exactly what this is. However, customers requirements change over time. In order to fall in these changes, McDonalds has introduced crude products and phased out old ones, and will continue to do so. Care is taken not to adversely affect the sales of one choice by introducing a new choice, which will cannibalize sales from the existing one (trade off). McDonalds knows that items on its menu will vary in popularity. Their ability to generate pelf will vary at contrasting points in their cycle. In India McDonalds has a diversified product range focussinging more on the vegetarian products as roughly consumers in India are primarily vegetarian. The happy meal for the children is a great seller among others.McDonalds have to be very careful in India while festering their business. In India you go out and you will get a ready to eat snacks and that too in a cheap price. So McDonald s has a discipline competition with Indian street fast food which has a many varieties and it is very popular amongst the people. As Fastfood patiencehas been very favored in India, both in financial terms as well as in popularizing its quick service culture among the population. .Indiasfastfoodindustryis growing at 40% per annum and generates over Rs. 4800 cores in sales. The multinational segment of theindustrygenerates over Rs. 7000 crores. There are many varieties of fast food in contrary states of India. The popular fasts of the individual states are as given below.South IndiaIdlis- Made from Rice Idli, Rava IdliVadas- Made from Uddina Vada, Rava Vada, Masala Vada, Maddur VadaDosas- Made from Masala Dosas, Set Dosa, Rava DosaUpma- Made from KesaribathPonagal, etc. westmost IndiaVada Pav-which is also known as an Indian Burger and do up of flour, potatoes, spices .Dahi Vada-Made up of lentils, yogurtPohe-Made up of flattened riceLocha- Made from grinding of chanadal, masalaS ev Kjhamni-Made from chana dal , yard chillies, ginger, lemon juice and olive oilEast IndiaKebabsPani PuriAloo ChatPakorasNorth IndiaChaat made up of potato, tomato and tangy in a tastePani Puri cabalistic fried made up from flour and serve with tangy waterBhel Puri made up of besan flour and garnishing with tomato, onions and tangy chutneyPapadi Chaat- made up of flour, butter, onion, and different Indian spices.McDonalds Menu OptionsComparision between Indian Burger ( Vada Pav ) McDonalds Burger PriceThe customers perception of tax is an important determinant of the price charged. Customers draw their own mental picture of what a product is worth. A product is more than a physical item it also has psychological connotations for the customer. The danger of using low price as a marketing tool is that the customer may feel that quality is being compromised. It is important when deciding on price to be fully aware of the brand and its integrity.In India the most authentic cuisine of India is the Indian street food, which can be bought only for few rupees from the portable stalls found in the Indian cities and town. The street vendors offer hot fresh, lip smacking snacks, which is very feeling. These foods are popular mainly because they are available at half of the price of any restaurant food. Take-out food, junk food, snacks and fast food are available easily and it doesnt take much time to prepare so it is very quick in eating.The Indian Street Food varies from region to region .The typical North Indian street food is Chaat -a generic name for all tangy risque not very nutritious delicacies. The tangy flavor comes from the use of lemon, pomegranate seeds, black salt, tamarind, and various chutneys. Chaat can be prepared with fruits like guava,banana ,papaya,apple etc.Use of paapri ,which is crisp pancakes made from fried flour with some out of yoghurt ,potatoes sauteed with black cumin powder with some amount of meetha and khatta chutney (sweet and sour pickle) with a expressive style of coriander becomes the lip smacking Paapri Chaat.The Pani Puri also called golgappa in some places in India is another street delicacy. Pani puris are hollow crisp balls made from dough, and filled as-you-eat with a spicy concoction of water and potatoes, topped by a choice of sweet or spicy chutney and so on. In India in different region has their own different specialties and which are easy to get it and cheap in price. So in India to compete with the Indian local street fast food, McDonalds has to work hard to build its position and keep on competing and growing each day.In India McDonalds classifies its products into 2 categories namely the branded affordability (BA) and branded core value products (BCV). The BCV products mainly include the McVeggie and McChicken burgers that cost Rs 50-60 and the BA products include McAloo tikki and Chicken McGrill burgers which cost Rs 20-3 This has been done to satisfy consumers which different price percept ions.Value Ladder strategy-a) Started offering value meals in a range of prices.b) Ensure affordability and attract widest section of customers.c) Brought the customer and provided a range of entry level products.d) Try those new items and receive to higher-rungs.e) E.g- if a customer starts with McAloo Tikki, he will finally graduate to McVeggie and so in Non veg.f) Helped its Volume business.Aap ke zamane mein,baap ke zamane ka daam (In English that means in yourValue Pricing (Price in INR)Promotion The promotions aspect of the marketing mix covers all types of marketing communications One of the methods employed is advertising, Advertising is conducted on TV, radio, in cinema, online, using poster sites and in the press for example in newspapers and magazines. Other promotional methods include sales promotions, point of sale display, merchandising, direct mail, loyalty schemes, door drops, etc. The skill in marketing communications is to develop a campaign which uses several of these methods in a way that provides the most effective results. For example, TV advertising makes people aware of a food item and press advertising provides more detail. This may be supported by in-store promotions to get people to try the product and a collectable promotional device to encourage them to keep on buying the item.At McDonalds 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.An activity, such as a sale or advertising campaign, designed to increase visibleness or sales of a product.McDonalds, for years has maintained an extensive promotion strategy with highest spending on marketing amongst all its competitors.While advertising focus on overall experience. Brand globally and act locally. Overall it is doing what it does the best marketing. Intensive advertising aimed at children. Paper mats on trays ensure that no new scheme goes unnoticed.Im loving it is an international branding campaign which was launched in 2003 and has proved to be its biggest success.aap ke zamaane mein baap ke zamaane ke daam is a highly localized campaign which aimed at attracting the masses through with(predicate) its happy price menu.Place Place, as an element of the marketing mix, is not just about the physical location or distribution points for products. It encompasses the management of a range of processes involved in bringing products to the end consumer. McDonalds outlets are very evenly spread throughout the cities making them very accessible. Drive in and drive through options make McDonalds products further convenient to the consumers.ConclusionOnce the marketing strategy is in place, various responsibilities are given to different individuals so that the plan can be implemented. Systems are put in place to obtain mark et feedback which measure success against short-term targets. McDonalds has to ensure that this is done within the margin of a tightly controlled, finite marketing budget.Thefast foodindustry inIndiahas evolved with the changing lifestyles of the young Indian population. The sheer variety of gastronomic preferences across the regions, hereditary or acquired, has brought about different modules across the country. It may take some time for the local enterprise to mature to the level of international players in the field.McDonald is the worlds leading food service retailer with more than 30,000 restaurants in 119 countries serving 46 million customers each day. Approximately 85 percent of McDonalds restaurants worldwide are owned and operated by independent, local businessmen and women.