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Golden Arches

Case of Strategic Adaptation

Dr Amit Rangnekar

Dr Amit Rangnekar NMIMS

Strategic issues addressed
• Market entry in a developing country with low PCI
• Evaluating market attractiveness
• Strategic insight into a consummate global marketer
• Compatibility between product adaptation & local
responsiveness (on the one hand) & a global strategy
on the other hand
• Critical assessment of future strategic options, namely
aggressive expansion when the operations are yet to
attain profitability
• Framework for assessing Industry / Market

Dr Amit Rangnekar NMIMS

Case Coverage
• McDonalds International
• Corporate Strategy
– Challenges
– Attractiveness
– Strategies- Country Business Plan

• Marketing Strategy
Branding, Pricing, Promotion, Distribution
Product Adaptation
• Performance
• Future Plans
• Issues & Realities Dr Amit Rangnekar NMIMS
The Beginning…
• 1954, Ray Kroc, 52, a distributor of milk shake
maker- Multimixer, heads West on hearing
about the McDonald Bros hamburger stand in
• Seizing the opportunity, he pitched the idea of
opening up several restaurants to the McDonald
brothers, to sell 8 of his Multimixers to each and
every one.
• "Who could we get to open them for us?" they
asked "Well," Kroc answered, "what about me?"

Dr Amit Rangnekar NMIMS

McDonalds-Global Fast Food powerhouse
• 2004- World’s biggest marketer of fast food
• 31000 restaurants
• 120 countries
• 47 million customers per day
• Ronald McDonald, introduced 1963, second only
to Santa Claus in terms of recognition

Dr Amit Rangnekar NMIMS

Philosophy & Vision

• McDonald's complete commitment to Quality,

Service, Cleanliness and Value (QSC&V).
• "We take the burger business more seriously than
anyone else" Ray Kroc
• "If you've got time to lean, you've got time to clean"
Ray Kroc

Dr Amit Rangnekar NMIMS

Global Strategy

• Customer driven, goal oriented

• Achieving sustainable, profitable growth
• Designed to increase restaurant visits and grow
brand loyalty among new & existing customers
• Further build financial strength

Dr Amit Rangnekar NMIMS

Plan to Win

• Built around 5 key drivers of exceptional

customer experiences- People + 4Ps
• Founded on the belief of 3 success components
Operational Excellence
Leadership Marketing

Dr Amit Rangnekar NMIMS

Operational Excellence
• Intent on delivering exceptional experiences to
47 million customers served each day
• Implement restaurant-specific review policies to
identify opportunities to improve QSCV
• Independent mystery shoppers to evaluate
performance & give a customer's perspective
• Improve speed of service and efficiency
• Better kitchen organization, front counter and
drive-thru areas
• Emphasize hospitality, accuracy and cleanliness
Simplify the restaurant environment

Dr Amit Rangnekar NMIMS

Leadership marketing

• Reconnect with customers thro’ contemporary

global marketing direction “i'm lovin' it”
• “i'm lovin' it” reflects an attitude we want our
employees to embrace & reflect in their service
• Maximize ad spend impact
• Broaden reach through PR
• Deliver global brand message through ads,
packaging and restaurant experiences
• Emphasis on building sales at existing
restaurants rather than adding new ones.

Dr Amit Rangnekar NMIMS


• Evolving to remain relevant to consumers

• Variety of value, premium & wholesome menus
giving more customers more reasons to visit
• Expanded Happy Meal choices to attract &
retain customers
• Educating people about healthy, active
lifestyles, premium Salads < 10 gm fat
• Wi-fi accessibility when enjoying a Big Mac XP
• 400 McCafés in 23 countries serving premium
& specialty coffees, cakes, pastries inside
existing McDonald's restaurants

Dr Amit Rangnekar NMIMS


• Always been a franchising Company

• Franchisees play a major role, approximately
70% of McDonald's businesses are owned and
operated by independent franchisees
• McDonald's remains committed to franchising

Dr Amit Rangnekar NMIMS

Financial Muscle- Y-2002-03

• $ 41.5 billion in sales

• $ 25.7 billion (62%)- sales of franchisees
• $ 2.1 billion operating profit
• $ 893 million Net profit
• Assets- $ 24 billion
• 8th Most valuable brand in the world, ahead of
Sony, Nokia, Toyota in 1999
• Among Top 100 companies worldwide in 2000

Dr Amit Rangnekar NMIMS

Asian Presence

Entry Country Outlets’02 Outlets’97 % Change

1971 Japan 3891 2437 60
1975 HK 216 140 54
1979 Singapore 130 105 24
1980 Philippines 236 157 50
1981 Malaysia 149 110 49
1984 Taiwan 350 233 50
1985 Thailand 100 61 64
1988 South Korea 357 114 213
1990 China 546 184 197
1991 Indonesia 105 103 2
1996 India 46 9 411
1998 Pakistan 20 0 $
1998 Sri Lanka 2 0 $
Asia 6148
Dr Amit 3653
Rangnekar NMIMS 68
Income Distribution in India
Classification People Household Household
(Mn) (Mn) Income
$ US
Deprived 763 131 <600
Aspirants 120 20 1000-3000
Climbers 45 8 3000-6000
Strivers 25 5 6000-12500
Rich Total 2.18 0.35 >12500
Near Rich 1.55 0.25 12500-25000
Clear Rich 0.44 0.07 25000-50000
Sheer Rich 0.14 0.02 50000-125000
Super Rich 0.03 0.006 >125000
Total 1 Billion 165

Dr Amit Rangnekar NMIMS

Indian Market

• Huge Sub-continent
• 4 times the population of the US
• Middle Class estimated at 300 Million
• Per Capita GDP $ 400- but at PPP- $2540
• 4th largest economy- ahead of France,
Russia,UK, Asia’s 3rd largest-Behind China &
Japan (PPP)

Dr Amit Rangnekar NMIMS

KSA Technopak Survey
• Eating out sector growing, consumer spend
• Rs 40000 Cr eating out market growing @ 6%
• Rs 1500 Cr urban fast food segment growing @
• “McDonald’s is not a substitute for Indian food,
it’s just one more option for people to exercise.”
• Local taste preference- “Indians want a slice of
America, but only once in a while. Inflexibility in
their product mix could be their undoing.”
Dr Amit Rangnekar NMIMS
Indian Market

• Size of ‘Eating Out’ market- substantial

• India’s food expenditure- $77 Bn / world $ 4000
Bn (2%)
• Highly fragmented food market
• Millions of roadside stalls / carts- major market
• Udipi, Sandwich, PavBhaji, Chaats, Chinese,
Namkeens, Pizza
• Organised chains- Narula’s, Wimpys, Udipis

Dr Amit Rangnekar NMIMS

Social Diversity

• 20 major languages, 800+ dialects

• 50% population literate
• Advertising-Billboards, Print , Electronic
• 8 languages for National launch

Dr Amit Rangnekar NMIMS


• Poor roads
• Power situation grim even in New Delhi
(Capital) and Bangalore (Silicon Valley)

Dr Amit Rangnekar NMIMS


• World’s largest democracy

• Fairly stable governments
• Armed Forces- Neutral
• Bureaucratic red tape omnipresent

Dr Amit Rangnekar NMIMS


• Entry & Exits in sectors controlled by Govt

• MNC restrictions
• Deregulation since 1991 but socialist / swadeshi
mindset continues
• MPs comment on MNC in consumer sector
“We want computer chips, not potato chips”

Dr Amit Rangnekar NMIMS

Pressure Groups

• Anti- Western / MNC factions

• Health activists
• Environmentalists
• Animal welfare activists
• Sons of the soil campaigners

Dr Amit Rangnekar NMIMS

1991- MNC Invasion

• Indian economy open to FDI

• Huge potential
• Over confidence
• Faulty Market Research inputs cost dear
• Major failures, Peugeot closed shop
• Repositioning & price reduction helped
• Lack of demand

Dr Amit Rangnekar NMIMS


• 1st Restaurant Bangalore, 1995

• Excessive MSG levels, outlets closed
• Restaurant ransacked –1996
• Business closed for long periods
• No major expansions

Dr Amit Rangnekar NMIMS


• Initial High price

• Much higher than average Indian breakfast cost
+ Milk
• No off take
• Targeted at family than kids
• Old habits took very long to change

Dr Amit Rangnekar NMIMS

Reasons for failure

• Low level indigenisation, high costs

• Lack of understanding of local tastes
• Over estimation of demand potential
• Rosy assumptions- Speedy bureaucratic
• Infrastructural inadequacies
• Inappropriate strategies- Pricing

Dr Amit Rangnekar NMIMS

Late Indian Entry

• Closed economy pre 1991

• Significant Vegetarian population
• Limited purchasing power

Dr Amit Rangnekar NMIMS

India Vision

• To be India’s "best" quick service restaurant

experience - supported by principles and core

Dr Amit Rangnekar NMIMS

Targeting Markets

• Initial focus on metros- Mumbai, Delhi

• Relatively high incomes
• Exposure to western food & culture
• Move to smaller satellite towns (Gurgaon,
• Positive spillover effects of reputation
• Jaipur & Agra- To attract foreign tourists

Dr Amit Rangnekar NMIMS

India-Entry Strategy

• Wholly owned subsidiary- MIPL

• Incorporated in 1993
• McDonald's opened its doors in India in Vasant
Vihar, New Delhi in October 1996
• Entered into two 50:50 JVs with Connaught
Plaza Restaurants-Vikram Bakshi- North &
Hardcastle Restaurants-Amit Jatia- West
• Trained extensively, along with their Indian
management team, in McDonald's in Indonesia
and the US before launch
Dr Amit Rangnekar NMIMS
Product Adaptation

• Asian product adaptations to local tastes

• Burgers with Thai Basil- Thailand
• Teriyaki Burger- Japan
• Rice dishes- Indonesia

Dr Amit Rangnekar NMIMS

Product Adaptation-The Indian Challenge

• Much higher degree of adaptability

• 40% Vegetarians –Vegetarian selections to suit
Indian taste
• Maharaja Mac replaced Big Mac, Chicken Patty
instead of Beef
• Respect for local culture- Special Indian menu,
No beef or pork items in India
• McAloo burger, Veg Salad Sandwich, McMasala
& McImli sauces

Dr Amit Rangnekar NMIMS

Product Adaptation-The Indian Challenge

• Common Menu- Chicken Nuggets, Fillet-O- Fish,

fries, sodas, shakes
• Garlic free sauces to get in “hard core”
vegetarian customers
• Re-formulated own products using spices
favoured by Indians
• Eggless sandwich sauces, Soft serves &
• Freshest chicken, fish and vegetable products
• Only vegetable oil used as a cooking medium

Dr Amit Rangnekar NMIMS

Menu Development

• 1998- Menu development team

• Consumer feedback & research findings
• Do not entirely localise menu
• Wider product range
• More Hot food
• Low entry level prices
• Veg Pizza McPuff
• India-75% localised menu, 33% in Asian
countries, Other countries < 5%
Dr Amit Rangnekar NMIMS
Restaurant Management System (RMS)

• 2 separate menus; green- veg, purple- nonveg

• Separate veg, nonveg kitchens with dedicated
staff , preparation and wrapping areas
• Different uniforms for kitchen crew to distinguish
• Clear segregation: Kitchen staff
• Printed brochures of RMS to customers
• Customer kitchen tours to assure
Dr Amit Rangnekar NMIMS
International Standards

• India's local suppliers provide highest quality,

freshest ingredients.
• Adherence to Indian Government regulations on
food, health and hygiene, benchmarking with
own international standards.
• Fast, friendly service - the hallmark of
McDonald's restaurants world over
• Stringent cleaning standards, trays sanitised
several times each hour.
• Meticulous attention to cleanliness beyond
lobby,kitchen to pavement & area outside

Dr Amit Rangnekar NMIMS

Family Restaurant

• The McDonalds XP for the family

• Focus on kids, gifts galore
• High chair concept
• Brightly lit, casual, comfortable & contemporary
• Friendly, smiling, fast service
• Emphasis on cleanliness

Dr Amit Rangnekar NMIMS

Value Pricing

• Happy Meal- Small Burger,fries, coke+ toy

• Medium Meal Combo- Burger, fries, coke-
Veg Rs 75, Maharaja Mac meal- Rs 94
• Family dines under Rs 300 (2003)
• Pricing lower than Pak, SL, 50% lesser than US

Dr Amit Rangnekar NMIMS

Cost Control / Pricing Strategy

• “Customers attracted purely by these

unsustainable but attractive low prices would not
pay repeat visits”
• Development of a low cost supply chain – crucial
enabling factor

Dr Amit Rangnekar NMIMS

Competitive Pricing
• KFC- Rs 59- Rs 79 ( Burger/KFC, Drink)
• Chicken, rice, gravy meal for Rs 39
• Pizza Hut- Family meal (2 medium
pizzas, Pepsi- Rs 350
• Wimpys- Mega meals starting @ Rs 35
• McDonalds- Value meals @ 39, Quick
bites @ 25, Soft serve ice creams @ Rs
• Even these low prices afforded a 40%
• ‘I will never become unaffordable, as I’ll
then not be able to generate
Dr Amit Rangnekar NMIMS volumes”
Widening the Customer Base

• Surveys indicated “Perceived as Premium”

• Ensure trials thro’ selective price cutting &
periodic promotions
• Harness the prosperity & feel-good-factor
around festivals across regions & religions

Dr Amit Rangnekar NMIMS

Community Partnership / CSR
• Children’s painting competition across cities
• Maintaining gardens, parks, heritage structures
• Effluent treatments, Pulse Polio, recyclable
paper bags
• ‘Litter Patrols’ to ensure a cleaner
• Huge donations to Latur/ Bhuj / Gujarat
• Co-Sponsor of Inter-School Science Quiz
• 2002, tie up with Nalanda Foundation -
education of the underprivileged Girl-Child.

Dr Amit Rangnekar NMIMS

Marketing Strategy
• Promotional strategy to convey world class xp,
Indian adaptations, freshness, nutrition & value
• Shift from worldwide positioning of drive-in
convenience and speedy service
• Segment- The Young family (<30 years)
• Target- The young family who eats out
• Focus- Attracting children, so family follows
• Positioning- ‘McDonalds mein hai kuch baat’ –
a place for the entire family to enjoy
• Differentiation- highlighting brand, food & variety
• Happy meal film on Cartoon Network, Zee
• Special promotions during festivals
Dr Amit Rangnekar NMIMS
Get Lucky- Promotional scheme
• Collaboration with Coke, MTV,,
Sony Music & GM
• Scratch cards on Large combo meals
• Prizes- caps, tshirts, CDs, internet cards, free
tickets to a Lucky Ali contest
• Purchase of a 2nd meal in a month qualifies for-
Opel Corsa / NZ trip
• Snags- Neither Lucky Ali contest materialised
nor Corsa nor NZ trip- issues of credibility

Dr Amit Rangnekar NMIMS

Promo Spends
• June’00- Rs 10 Crore
• March’01- Rs 20 Crore- Doubled
• March’02- Rs 18 Crore
• March’03- Rs 24 Crore
• Emphasis on generating repeat visits
• Positioning changes from
• “McDonalds mein hai kuch baat” to
• “To aaj McDonalds ho jaaye”
• A Shift from ‘special’ to ‘acceptable and enjoyable’
• McDonalds positioned as a comfort zone for
young families

Dr Amit Rangnekar NMIMS

Target Markets
• Only < 10% population- possible target market
• “We want to first concentrate on metros, then open
branches in other cities. We want to set up outlets
only in cities where we can ensure the quality of
products” Vikram Bakshi
• Phase I- Focus on cities of relatively high incomes
where citizens are exposed to western food & culture
• Phase II- Move to smaller satellite towns (Gurgaon,
Pune)- Positive spillover effect of reputation
• Jaipur & Agra- To attract foreign tourists
• Phase III- Malls, Multiplexes, Highways, Stations &
• No plans for South, East, Goa?

Dr Amit Rangnekar NMIMS

Supply Chain

• Critical for success

• Local network for supply chain & distribution
• Local suppliers, distributors to match
international quality
• Operations & training to match international
quality and hygiene standards
• Invested Rs 50 crore in setting up, before
opening 1st outlet
• By 2000- Investment in supply chain – Rs 300

Dr Amit Rangnekar NMIMS

Cold Chain

• Integral to Supply Chain

• Network- Food procurement, warehousing,
transportation and retailing under controlled
• Cold Chain cuts down on operational wastage
• Necessary to maintain food temperatures to retain
their freshness and nutritional value.
• Products to be used on a daily basis, stored within
a temperature range of –18ºC to 4ºC.
• 52% food products need to be stored under these
conditions before they are used.

Dr Amit Rangnekar NMIMS

Supply Chain

Trikaya Agriculture –
• Supplier of Iceberg Lettuce
• Advanced agricultural practices enabled
specialty crops like iceberg lettuce, special
herbs and many oriental vegetables.
• Farm infrastructure - Specialised nursery,
agricultural experts, pre-cooling room, cold
room for handling, refrigerated truck for

Dr Amit Rangnekar NMIMS

Supply Chain

Vista Processed Foods

• JV of OSI Industries-US & McDonald's-India
• Range of frozen chicken & vegetable foods at
world class infrastructure plant at Taloja,
• Separate processing lines for chicken and
vegetable foods
• Capability to produce frozen foods even at -35
Degree C temperature to retain total freshness.
Dr Amit Rangnekar NMIMS
Supply Chain

Dynamix Diary, Baramati

• Supplier of Cheese
• Capability to convert milk into cheese,
butter/ghee, skimmed milk powder, lactose,
casein, whey protein and humanised baby food
• Supplier to McDonalds & Nestle

Dr Amit Rangnekar NMIMS

Supply Chain

Amrit Food
• Milk and Milk Products for Frozen Desserts
• Installed capacity of 6000 lit / hour for producing
homogenised UHT (Ultra High Temperature)
processed milk and milk products.

Dr Amit Rangnekar NMIMS

Supply Chain
Radhakrishna Foodland
• Distribution Centre- Specialises in handling large
volumes, provide entire range of services like
procurement, quality inspection, storage, inventory
management, deliveries, data collection, recording
& reporting.
• Effective process control for minimum distribution
• 1-stop shop for food distribution management
• Dry / cold storage facility to store/transport
perishables at temperatures up to - 22 C
Dr Amit Rangnekar NMIMS
Supply Chain

Cremica Industries, Philaur, Punjab-

• Working with McDonald's European suppliers to
develop technology & expertise allowed
Cremica to expand businesses from baking to
provide breading & batters to McDonald's India
& other companies.

Dr Amit Rangnekar NMIMS


“In some cases, Indian suppliers had the

technology - but no market for the products
they produced besides McDonalds”

Dr Amit Rangnekar NMIMS

Geographically diverse sourcing

• Buns from North

• Chicken & Cheese from West
• Fish, Lettuce & Pickles from South
• 98% paper, locally sourced
• French fries imported from Indonesia
• 40 suppliers in the chain

Dr Amit Rangnekar NMIMS

Local Sourcing

• Committed to local sourcing from suppliers and

• Restaurants constructed using local architects,
contractors, labour and maximum local material
• Relationship mutually beneficial as supplier gets
opportunity to expand business, access to latest
technology, exposure to advanced practices
and the ability to grow or export.

Dr Amit Rangnekar NMIMS


• Dedicated
• Matching supplier production with deliveries to
meet schedules & restaurant needs
• 2 centralised distribution centers at Mumbai &
Kochi, each capable of catering to 25 outlets
• Aim to enhance quality of storage operations
• Emphasis on economies of scale-storage
volumes high

Dr Amit Rangnekar NMIMS

• Interaction with suppliers & logistic firms to
ensure optimum stocking
• QIP (Quality Inspection Program)- Quality
checks at 20 points in the supply chain
• HACCP (Hazard Analysis Critical Control
Point) Food safety standards emphasizing
prevention of faults than detection thro
• “ With a Cold Chain in place, there is
practically no need for a knife in the
restaurant. Chopping & food processing is
done in the plants. Restaurants are confined
to only the actual cooking”
Dr Amit Amit Jatia
Rangnekar NMIMS

• Logistics to move RM to restaurants

• AFL logistics- 50:50 JV between AirFreight &
FX Coughlin of USA- McDonalds international
logistics partner
• AFL responsible for temperature-controlled
movement of all products from suppliers to
distribution centers

Dr Amit Rangnekar NMIMS

Inculcating a Service Orientation
• Physical logistics important to retain food
• “The truck drivers had to be explicitly and
specifically conveyed not to switch off the truck’s
ignition to save on fuel & electricity as the
refrigeration system also automatically shuts off.
We installed trapping devices to log temperature
charts through the entire journey” Amit Jatia

Dr Amit Rangnekar NMIMS

An Employer Of Opportunity
• Employer of opportunity, providing quality
employment and long-term careers to the
Indian people.
• Average McDonald's restaurant employs 60-
80 people from crew to restaurant manager.
• World class-training inputs to 2000
employees in Mumbai and Delhi annually.

Dr Amit Rangnekar NMIMS

Export Base

• Indian Cheese & Lettuce exported- Sri Lanka,

Hong Kong & UAE
• Plans to export to Russia, EU, SE Asia
• “Things are becoming global in nature. Once
you set up a supply chain in a strategic location,
it can service other countries as well.” Amit Jatia

Dr Amit Rangnekar NMIMS

Past Performance
Period Out Place Milestones
First 12 7 4 Del, •6 Million customers (2002)
months 3 Mum •3.5 Lacs Maharaja Macs
End 1998 14 8 Del,6 Mum •50% revenues from veg
Mid 2000 25 13 Del, menu
10 Mum, •40000 customers daily
Pune, Jaipur
•No of transactions grow @
Dec2000 46
•Average spend / customer
Nov 2003 51 Rs 45 (2002)

Dr Amit Rangnekar NMIMS

Indian XP

• In 1997 consumers classified food as bland

• By 2000, it was sought for its taste
• Most popular-
• Veg pizza Mcpuffs (Samosa + Pizza ingredients)
• Chicken Mcgrill (with extra tangy Indian spices)

Dr Amit Rangnekar NMIMS

Growth Strategies

• Increasing seating capacity

• Adding Birthday party areas
• Enter new ‘A’ cities- Ludhiana, Ahmedabad,
Baroda- lower spending power , population
• ISBT terminal Delhi
• Airport & Railway station- Mumbai & Jaipur
• Highways & Petrol Pumps
• Malls & Multiplexes- Lower outlet investment
than traditional

Dr Amit Rangnekar NMIMS

Points to Ponder
• Would customer profile on highways & railway
stations be appropriate
• Would they generate enough traffic
• Dispersed outlets- effective catering?
• Expanding too fast? Break even ?
• Successful in developing supply chain & creating
a satisfied customer base, opportune time to

Dr Amit Rangnekar NMIMS

CEO Speak
• “ Meticulous planning went in before opening a restaurant.
It took us 6 years to open our first outlet because we
carried out a detailed survey, then identified the local
sources, closely studied the Indian food habits and tastes,
before taking the plunge.”
• “We have been very careful with regard to our expansion
plans. McDONALD’s currently operates 50 fast food
restaurants in India. We are satisfied with the progress in
India so far and want to take the total number of restaurants
to 100 by 2006”
• “McDonald’s fits in neatly with the multiplex culture as our
restaurants provide a bright and cheerful ambience and a
pleasurable dining experience for the family.
• McDonald’s has so far invested Rs 500 crore in its
operations in India. This figure would be raised to Rs 800
crore by 2005.
Dr Amit Rangnekar NMIMS
The Compliment
• “McDonald’s products sold in India have been
Indianised & produced in accordance with Indian tastes
& preferences. Hugely popular products like aloo-tikki
burger are now being exported to the Middle East where
too they have proven to be a big hit. These evolved
products are being studied closely in western countries”
• “On any given day, McDonald’s restaurant at Doraha
near Ludhiana on NH 1, serves up to 2000 customers
which is as good as a restaurant in Connaught Place”
• “We want the right location, right size for a 150 seat
restaurant & the right deal which does not involve
subletting of the premises. In Chandigarh, we find most
commercial properties rented out or embroiled in
disputes. We don’t want to get involved in any such

Dr Amit Rangnekar NMIMS

MIPL- points to ponder
• Investment / outlet excluding real estate- Rs 3 Cr
• Jun 2003, 50 outlets, Planned- 80 outlets by end 2003
• 30 additional outlets = investment > 100 Cr
• Area, Location, Size, Seating- Crucial but expensive
• Scale back expansions by 20% to 64 outlets in India,
close 250 outlets in emerging markets
• Can lead to delayed Break-even as huge investments in
supply chain, branding, infrastructure
• Figures NA
• Recent lackluster financial performance of parent
• Critical juncture in evolution

Dr Amit Rangnekar NMIMS

Urban Indian Fast Food Market-03
(Estimated 1500 Cr)




0 McDon Pizza Domin Haldira Pizza

Nirulas Barista
alds Hut os m Corner
Sales (Cr) 175 175 Dr Amit
80 NMIMS 60 44 25
MCIL Today




Outlets Investment
Today 58 400
End 2004 68 500
End 2005 100 800

• “We’ve established ourselves firmly in the mind of the

consumer. Now is the time to expand and extend the
Dr Amit Rangnekar NMIMS
brand in whatever manner we can” Vikram Bakshi
Reaching Out

• Gunning for volumes through home delivery

• Extend reach at home, malls, food courts,
multiplexes, highways, area with heavy
footfalls (metro, stations, bus stands)
• Kiosks stocked with beverages, desserts
• Limited menu restaurants offering most
popular fare
• Consumer reach minus expenditure of a full

Dr Amit Rangnekar NMIMS

Home Delivery

• Home delivery in Mumbai & Delhi outlets to areas within

15 minutes
• Extreme action for a company that prides itself on
trashing anything that remains in the ‘bin’ for longer
than 8 minutes.
• Slowly waking up to the fact that every player in the
eating out sector in India door delivers.
• McDonald’s only delivers in Indonesia & Egypt.
• Traffic, parking issues deter consumers due to heavy
traffic where McDonald’s are located as a matter of

Dr Amit Rangnekar NMIMS

Increasing Operational Excellence

• Footfalls up 25% per outlet per day

• “We’ve reached a stage where operational excellence is
going to drive the growth from now on. So the focus is
back on training, which had taken a back seat due to
the needs of rapid expansion in the last few years. We’ve
increased the number of managers who are going back
to training, and are sending more senior managers
abroad to gain international exposure,” Bakshi.

Dr Amit Rangnekar NMIMS

Strategic Analysis


• Trend Analysis

Key Key
Certainties Uncertainties

Dr Amit Rangnekar NMIMS