Mcdonald’s in india and promotion strategy of mcdonald’s in india

Mc Donald’s was begun by in 1954 by Mc Donald’s siblings who found mechanization and the idea of family eateries as at first the sustenance outlets were kids ruled or in light of some other subject. They built up the idea of family eateries and felt that families required a place to eat together. At that point Raymond Kroc came into the photo and he was a salesperson of blending machines and he saw that Mc Donald’s was an outlet purchasing a considerable measure of his hardware so he went to the outlet to perceive how it works and concluded that he needed to be a piece of this entire idea and met with the siblings and proposed diversifying and purchased the diversifying rights from the Mc Donald siblings. (Mc Donald’s – Behind the Arches-John. F. Love).

Today McDonald’s is the world’s biggest cheap food chain serving 47 million clients every day. McDonald’s is currently a standout amongst the most significant brands comprehensively, worth more than $25 billion. The Golden Arches and its mascot Ronald McDonald have increased all inclusive acknowledgment. In spite of the fact that the organization has establishes in the US, McDonald’s today has turned into an acknowledged subject of the world.

McDONALDS IN INDIA

Mc Donald’s is the main worldwide foodservice retailer unmistakable player in the administration business with in excess of 30, 000 nearby eateries serving 52 million individuals in excess of 100 nations every day. Is one of the world’s most notable brands and holds a main offer in the internationally marked snappy administration eatery portion. The Golden Arches of McDonald’s are gradually turning into a basic piece of the Indian scenes.

McDonalds was found by Ray Croc. Beam Kroc opened the Des Plaines, Illinois eatery in 1955 and never thought back. In 1965 McDonald’s opened up to the world about the organization’s first offering on the stock trade. In 1967, the principal McDonald’s eatery outside the United States opened in Richmond, British Columbia.

McDonalds entered India in 1996 and from that point forward never thought back and today it has turned out to be one of the main junk food eatery in India with its own particular unmistakable brand picture. McDonalds works in numerous nations yet has the most grounded advertise in USA as it started there.

“ We believe in the McDonald’s promise of “ With a sense of fun and youthful spirit, we will proudly serve an exceptional McDonald’s eating experience that makes all people feel special and makes them smile, every customer, every time.” Every employee strives towards 100% customer satisfaction.”

MARKETING ENVIRONMENT IN INDIA

Competitive Environment

India puts forth a highly competitive market in the quick service restaurant sector. There is a co-existence of both domestic and international brands. Both KFC and Mc Donald’s are major of one another. Along with this there are fast food outlets like Nirula’s , Yo china, Pizza Hut, Dominoz, Pizza Corner, Wimpy, s. Mc Donald’s face direct & indirect competition from outlets selling the same category of products and also from the outlets selling different kind of fast food.

MARKETING MIX OF Mc DONALDS

After McDonald’s recognized its intended interest groups the promoting blend was made the advertising blend that took into account those individuals particularly. Advertising Mix is a term used to depict the four principle promoting instruments (4Ps). In any case, as McDonald’s is a junk food chain that arranges as an administration association in that extra P’s are fused and the promoting blend involves 7 P’s.

• PRODUCT
• PRICE
• PLACE
• PROMOTION
• PHYSICAL EVIDENCE
• PEOPLE
• PROCESSESS

Product

Product is the physical product or service offered to the consumer. Product includes certain aspects such as packaging, guarantee, looks etc. This includes both the tangible and the non-tangible aspects of the product and service.

McDonald’s concentrated on studying the Indian culture, its value-systems and its influence in food consumption decision making. It found that although a substantial proportion of the populations were non-vegetarians, they stuck to mostly fish, mutton and chicken. Muslim took beef but though pig meat to be dirty;

Menu Adaptation – The menu offered in India is one of a kind and is not present anywhere else in the world. The menu was adapted as per the local taste and preferences and a veg menu was introduced to cater to the vegetarian segment in India. The following represent the core of menu adaptation:

• Maharaja Mac replaced Big Mac, chicken patty used instead of beef.
• Respect for local culture- No beef or pork used
• Veg menu- McAloo burger, Veg paneer wrap etc.
• Garlic free sauces to get “ hard core” vegetarian customers.
• Eggless sauces and re-formulated own products using Indian spices
• Only used vegetable oil for cooking

Price

The customer’s perception of value 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. A further consequence of price reduction is that competitors match prices resulting in no extra demand. This means the profit margin has been reduced without increasing sales.

McDonald’s came up with a very catchy punch line “ Aap ke zamane mein , baap ke zamane ke daam”. This was to attract the middle and lower class consumers and the effect can clearly be seen in the consumer base McDonalds has now. McDonalds has certain value pricing and bundling strategies such as happy meal, combo meal, family meal etc to increase overall sales volumes.

Place

The place chiefly comprises of the conveyance channels. It is imperative with the goal that the item is accessible to the client at the correct place, at the ideal time and in the correct amount. Almost half of U. S. A is inside a 3 minute drive from a McDonald’s outlet.

There is a sure level of fun and bliss that a client feels each time he eats at McDonalds. There are sure offers that McDonalds offer to its clients in view of their needs. McDonalds offers clean condition, great atmosphere and incredible administration. Presently McDonalds have likewise begun giving web office at their focuses and they have been playing music through radio rather than the typical music. There are sure devoted territories for kids where they can play while their folks can have some quality time together.

Promotion

Promotion plays a very important rule in building up a brand and this is the element on which Mc Donald’s concentrated in order to make a strong hold for itself in the Indian market. It is through promotions only that Mc Donald’s altered the perception of the Indian customers and became a household name in India. Mc Donald’s devised its promotion strategy very carefully keeping in mind all the cultural factors, beliefs and all others diversifying factors that exist in Indian society.

Promotion Mix comprises of the various elements that make up a promotional campaign of a brand. 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.

There are three main objectives of advertising for McDonald’s are to make people aware of an item, feel positive about it and remember it. The right message has to be communicated to the right audience through the right media. McDonald’s does its promotion through television, hoardings and bus shelters. They use print ads and the television programmes are also an important marketing medium for promotion.

PROMOTION STRATEGY IN INDIA

McDonalds is not a substitute for Indian food it is just one more option for people to exercise. The promotional strategy in India was especially designed by keeping in mind the cultural factors and beliefs. The promotion strategy included everything like, brand name, brand logo , brand positioning , product , pricing , target audience

Brand Name

Brand name of Mc Donalds is the name of the company which was started by DICK and Mc DONALD and thus the name of the restaurant was kept after their surname and has been constant from the very beginning and in India also the brand was launched with the same brand name.

McDonald’s is the most recognisable brand world over amongst all age groups. When it was launched in India the company realised that they would have to Indianise some of their products to appeal to the local taste and yet retain the equity on core products. Being a culturally sensitive company, India is the only country where McDonald’s does not serve beef and pork.

Brand Logo

Brand logo is a signature registered symbol of the company which provides the brand with an identity and helps in recognition and identification of the brand. It provides the brand with a unique image.

Brand Positioning

Positioning is what a marketer does to the consumer perception of the product, consumer perceptual space. Positioning of McDonalds in India focused on the following aspects and the focus was on shifting the positioning to a affordable, walk in restaurant than what exists in USA as that of a drive thru restaurant.

• Position it as a walk in family restaurant.
• As a Friendly, and fun loving place for kids and family
• As a Children friendly place
• A place that Delivers quality, service, value and cleanliness

PROMOTION MIX IN INDIA

Promotion mix refers to various marketing tools used to promote a product , brand , service , etc. these various tools are used in various proportions to deliver one consistent message to the target audience.

McDonalds integrated the various promotional tools to deliver a consistent message of a child friendly affordable family restaurant that delivers quality, service and value with special emphasis on Indian adaptations.

The promotion mix of McDonalds includes the following elements:

Advertising

• Television commercials
• Outdoor advertising
• Print Advertising

Sales promotion

• Contests & Coupons
• Price deals- happy price
• Combo meals
• Point of purchase display

ADVERTISING

Television Commercial

Real piece of McDonalds advancement involves TV publicizing. The center of McDonald’s promoting is INDIANISATION fusing the Indian family esteems feelings in their ads. Its correspondence system is all around characterized and clear. The correspondence methodology took after by McDonald’s in India.

Expected to Establish McDonald’s as a moderate family eatery. Concentrated on the Showcase Value – This was finished by advertisements which indicated individuals from all finished come in to encounter McDonald’s extraordinary costs .

The promotions of McDonald’s were a progress from the principal procedure in the underlying commercials; McDonald’s was endeavoring to construct an association with the clients. However, now the notices depict that the relationship has just been set up.

2004-2005

In 2004 Mc Donalds changed its crusade thus changed its motto likewise underlining on their HAPPY PRICE MENU. A scope of items offered inside the value scope of Rs. 20.

2006-2007

In the year 2006 McDonalds profoundly advanced its HAPPY PRICE MENU concentrating on the moderateness part of the brand.

2007-2008

Mc Donalds keeps on advancing its HAPPY PRICE MENU however with an alternate motto and are endeavoring to focus on all age gatherings and attempting to interface with times and two age gatherings.

Outdoor Advertising

Indianisation is at the core of all the promotional efforts adopted by McDonald’s from

Television advertising , product adaptation to pricing strategy to promotions and outdoor advertising. Especially outdoor advertising incorporated the element of Indianisation in order to attract the customers and to connect with Indian audiences. Mc donalds in order to integrate itself with India, to become a part of everyday life advertising was done by using McDonald’s icons in very Indian settings, and, by using every opportunity to relate to the consumer on their special days like Diwali, Dussehra, Holi etc.

SALES PROMOTION

This alludes to different offers for a constrained timeframe given by the association to pull in clients and give them an advantage and increment here and now deals. Different deals advancement procedures incorporate coupons , value bargains , rebates , trade offers , premiums , cost offs. McDonalds utilizes and in the past has utilized different deals advancement strategies keeping in mind the end goal to pull in progressively and hold existing clients by giving them something new and an advantage that they will appreciate. McDonalds while planning its business advancement offers remembered its objective clients and through time has presented numerous offers for kids , youthful grown-ups and so forth.

Price deals – McDonalds introduced happy price menu. McDonalds has adopted the price deal strategy of sales promotions in which certain selected items are available at just Rs. 20 in order to cater to its price sensitive Indian audiences and also providing them the benefit of enjoying good quality food at very affordable prices.

Combo Meals – Another sales promotion technique incorporated by McDonald’s is combo meals in which a whole meal can be enjoyed at very affordable prices

Contest and Coupons

• Happy Meal Contest – McDonalds introduced a special combo meal including an exclusive toy gift for kids and enhanced it with various contests and promotions. McDonalds tied up with Zapak and provided Surf ’s up toys and coupons to win trip to Thailand on purchase of Happy Meal.
• Music meal – To attract more young adults a promotion—“ Music Meal,” was launched in April 2005 in association with Coca- Cola India and Universal Music India. With the purchase of every ‘ Large Meal Combo’ at McDonald’s, customers would get a mini CD on payment of an additional Rs. 25

PUBLIC RELATIONS

Public relation refers to promotional activities undertaken by the organisation in order to have interaction with the customer and reinforce a particular brand identity or an image. McDonalds in order to sustain and reinforce its positive image to the customers does extensive public relations activities as it believes in giving back to he community.

Sponsorships – McDonalds sponsored the Beijing Olympics and was the official partner for FIFA World cup

CONCLUSION

Mc Donalds is a brand that has turned out to be synonymous with quality , administration and incentive for cash. Since the season of its dispatch or passage in India in 1996 it has developed a brand and has turned into a solid brand in India with its broad advancement methodology and comprehension of Indian clients. McDonalds has received an unmistakable methodology of adjusting its items to the Indian tastes and it has not just embraced this procedure of Indianisation in its valuing, advancement , situating keeping in mind the end goal to associate with the Indian Customers. Advancement technique of McDonalds included utilizing different apparatuses of advancement like Advertising , Sales Promotion , Public Relation and reputation and outlining and satisfactory advancement blend. Its advancement took after an unmistakable well ordered procedure beginning from making mindfulness with center around kids , then expanding footfalls and afterward fabricating association with center around family and McDonalds being a vital piece of an Indian family. Through circumstances McDonalds has possessed the capacity to adjust client discernments and this venture centers around how a remote brand with it establishes in America has been so effective with center around it advancement procedure in India. McDonalds has changed its situating, trademark and identity now and again to speak with its objective clients lastly has situated itself as a warm, chipper, family eatery which offers something for everyone. During that time as the brand developed in India McDonalds has possessed the capacity to change the view of its clients under various measurement from what they think about the brand and what it really remains for.