North South University

SBE, Department of Marketing and International Business     

International Business

Course Code: INB372

Semester: Summer2020

MIDTERM

 (To BE ATTENDED BY ALL STUDENTS)

Name:

ID Roll: Sec:
:

Faculty:______________________________________ Date: ______________

TOTAL MARKS - 40

 
  

Marks obtained:

(This space is for faculty’s usage. Do not write here.)

INSTRUCTIONS:

[NOTE: Students needs to be assigned different companies in different markets, and based on
that they will run the following analysis]

Read the following scenario and answer the following questions –

please read the instructions carefully.

Topic: You’ve been assigned with a multinational corporation (check the excel sheet uploaded)
in a specific market, conduct the following analysis in order to understand the markets external
environment (PESTL) and overall attractiveness scenarios. (30 marks)

Ø  Globalization of market and Globalization of production- how the

specific company is pursuing these orientations
Ø  Cultural orientation
Ø  Political and Economic and legal Scenario

Questions and Guidelines for writing the answer:

1.      Introduction:                                     (Marks: 5; word limit:150)

Give a brief overview about the multinational corporation and the market, i.e.:

Company

ü  The name of the company,

ü  year it started its operation,

ü  Parent country (ignore if you’re working with the parent company wholly)

ü  its product and services

Market

ü  Geographic location

ü  History         

2.  Market Analysis:

       i.        Globalization of market and Globalization of production- how the specific company
is pursuing these orientations, give examples from the company’s perspective that
reflects the orientations precisely. example for each                (Marks: 5 ; word
limit:250)
 
      ii.        Political environment- discuss in brief the country’s political standing, the cost, risk and
opportunities the market is offering towards the multinational. (Marks: 5; word limit:100)
 
     iii.        Economic environment- discuss in brief the country’s economic standing, the cost, risk
and opportunities the market is offering towards the multinational. (Marks: 5; word
limit:100)
 
  iv.        Legal environment- discuss in brief the country’s legal standing, the cost, risk and
opportunities the market is offering towards the multinational.( Marks: 5; word limit:100)
 

   v.        Cultural environment- discuss in brief the country’s cultural scenario based on the
cultural variable and also discuss the work environment based on hofstede’s dimension,
based on it try to identify the cost, risk and opportunities the market is offering towards
the multinational.( Marks: 5; word limit:200)

3.      Conclusion:                                                 ( Marks: 5; word limit:100)

Summarize the overall attractiveness of your chosen company in the chosen market.

4.      Reference                                                     ( Marks: 5)

Follow APA/Harvard style of referencing. You must use references (minimum five) from relevant
publications while answering the questions.

Format:

·        Font: Times New Roman; Size:12; paragraph spacing :1

·        Word Limit: 1000-1200 words

·        Submission deadline:17 August 2020.

th

 
Table of Contents
INTRODUCTION________________________________________________________________6
Company name and year of operation__________________________________________________________6
Parent Country____________________________________________________________________________6
Product and Services________________________________________________________________________6
Geographic Location________________________________________________________________________6
History___________________________________________________________________________________6

Market Analysis________________________________________________________________6
Globalization of Market_____________________________________________________________________7
Globalization of Products____________________________________________________________________7
Political Environment_______________________________________________________________________8
Economic Environment______________________________________________________________________8
Legal Environment_________________________________________________________________________8
Cultural Environment_______________________________________________________________________9
INTRODUCTION
Company name and year of operation
McDonald's Corporation is an American fast food company, originated in 1940 as a restaurant
operated by the two brothers Richard and Maurice McDonald, in San Bernardino, California,
United States. They rebranded their business as a hamburger stand, and later turned the company
into a franchise, with the golden arches “M” logo in 1953. In 1955, Ray Kroc, a businessman,
joined the company as a franchise agent and later on purchased the chain from the McDonald
brothers. McDonald's had its original headquarters in Oak Brook, Illinois, but moved its global
headquarters to Chicago in June 2018.

McDonald’s guarantees quality, service, cleanliness and value for money. Therefore, they focus
on high quality products and quick service with a warm smile, in a clean environment, at a
reasonable price.

The first launch in India dates back to 1996 and having sustained in this state for 24 years,
McDonald’s now has over 160 restaurants across the country, managed by two Indians as a joint-
venture. While the West and South Indian branches are owned by Amit Jatia, M.D. Hardcastle
Restaurants Pvt. Ltd., North & East Indian branches are owned by Vikram Bakshi’s Connaught
Plaza Restaurants Private Limited.

Market Analysis

Globalization of Market
McDonald’s marketing scheme for India is advertisements on TV, radio, in cinema, online, and
in newspapers and magazines; and promotional methods include sales promotions, point of sale
display, merchandising, direct mail, loyalty schemes, door drops, and instore promotions. The
company’s main global strategy is to attract the children by offering small toys along with their
Happy Meals. This way, the rest of the family followed. McDonald’s adopted the local language
throughout the state to counter the language barriers. India is mostly a collectivist country and
thus, the family dining concept was addressed by their family friendly campaigns and taglines:

 McDonald's mein hai kuch baat. (Oct. 13, 1996–1999)

 Toh aaj, Mmmmmmmmmm! McDonald's ho jaye. (1999–2003)

 I'm lovin' it (2003–present)

Moreover, “Aap ke zamaane mein baap ke zamaane ke daam” is a highly localized campaign
which focused on attracting crowds with their affordable “happy price” menu.

Globalization of Products
In terms of product globalization, McDonald’s created an excellent example. McDonald’s
localized their products 75% for India. As for religious reasons demand of Beef and Pork is very
little in India. Hence, McDonald’s introduced “Maharaja Mac” with mutton patty to replace Big
Mac (Beef). Their exclusive Indian menu also includes McAloo Burger, McAloo Tikki, Green
Chili Naan, Veggie McNuggets, and Veg Pizza McPuff. McDonalds continuously changes and
adapts their food offerings for consumers. Furthermore, special sauces like McMasala and
McImli were introduced to suit the Indian taste buds; also mayonnaise and all other sauces are
made egg-less for the vegetarians. They initiated Cold Chain across India to keep their products
fresh and full of nutrition.

Political Environment
During their initial launch in India, McDonald’s had to face a lot of hate from the Hindu political
parties and even had their branches attacked. Eventually, McDonald’s built its place by
introducing a completely customized menu to cater to the Indian consumers’ demands. Now the
government of India has implemented 100% Foreign Direct Investment (FDI) for food and
manufactured products which gives McDonald’s an excellent opportunity to expand and invest
more in India. India’s ministry of labor and employment offers the benefit of “Minimum Wage
Bill” which positively impacts profitability of McDonald’s. Their political campaign
“#MakeYourChoice” encouraged people to vote for their vote in the ongoing General Elections.

Economic Environment
By calculation, India’s individual disposable personal income will rise further. In 2016-17,
disposable personal income of India was US$2,278.89 and personal expenditure of consumers
was US$250.88 billion. And, during 2011-2012, India’s total GDP was US$1827.64 billion and
by 2016-2017, India’s total GDP became US$2,439.01 billion with a positive increase of
US$611.37 billion. And as per World Bank’s estimate India’s annual growth will reach to 6.5%
by 2017-18. India’s booming economy, low tax rate and availability of workforce are beneficial
to McDonald's profitability. India is a hyper price sensitive market. Customers in India, were
attracted solely by the low prices and hence it was compulsory to reduce cost by using local
supply of production and efficient workforce, and also by producing in bulk and introducing
“self-service”. As India’s currency-inflation rate is higher, Gap on currency rate effects
fluctuations import and exports of MacDonald’s.

Legal Environment
Food Safety and Standards Authority of India (FSSAI) issued to label-stickers of detailed
ingredients of foods, several food businesses came under a strict scrutiny by food safety
organizations for nutritional values. The state’s health and hygiene regulations require
McDonald’s to guarantee use of fresh and nutritious ingredients because their products contain
high calorie and trans-fat. India has very complex labor law and licensing system as government
permitted operating hours and specified working hours for women employees has to be
maintained.

Cultural Environment
Massive cultural barrier for McDonald’s to enter Indian Market was the food habits as Indians
like hot and spicy food cooked mainly with vegetable oil. Initially, McDonald’s face opposition
from health activists, environmentalists and religion activists. To penetrate Indian market
successfully, McDonald’s has to continuously adapt their menu accordingly. Due to religious
reasons in India, demand of beef and pork is very low. McDonald’s used Corporate Social
Responsibility (CSR) strategies to counter the negative image and associate themselves with
many community welfares projects. In India, consumers are also divided in two groups,
vegetarian and non-vegetarian. The firm has to offer specialized menu complementing both
groups. India’s culture being collectivist and family focused, McDonald’s position themselves as
a family restaurant. They launched breakfast combos, happy price combos to address India’s
communist and diverse nature. Furthermore, there are numerous languages throughout India and
McDonald’s had to use at least 8 languages for national launches to tackle this massive
communication barrier. In addition, 50% of the state was considered to be illiterate and audio-
visuals and billboards had to be used to address the lack of literacy.

Conclusion
So as to sustain in a very competitive market such as India, McDonald’s has to continuously
bring in new concepts of both, product and promotion. They had to cut down costs efficiently to
sustain in India’s Price sensitive market. The globalizing nature of McDonald’s adds a
competitive edge over the others within this industry and has helped attain great popularity
amongst its target customers. If maintained, the quick service, quality food, affordability and fair
pricing McDonald’s will help to keep its position at the top of the fast food industry.

The Health factor towards which the trend is moving is to be considered by the organization
which will be added advantage to its growth and expansion.

These are signature products of McDonald’s and this will in the long run help McDonald’s to
improve it already ace services with better customer service and great shopping experience. The
success of McDonalds in India could be measured by its continuous growth in Indian fast-food
market with 210 branches across India .
Despite the Government removing barriers for MNC by adopting a democratic political system,

McDonald’s were faced with the vocal resistance from health activists and environmentalists that
were specifically against fast-food giant entrants. Regardless of the activists small size, the

negative. McDonald’s used corporate social responsibility (CSR) techniques to change the
negative perception being spread amongst the Indian public and associate their brand name

with several community welfare projects. Demography within India is highly diverse where over
20 major languages are spoken throughout the country and more than 200 dialects. This proved

to be a major issue for management as the communication barrier was of great intensity
especially that between McDonald’s and the Indian public. To address this issue, at least eight

languages were used for national launches, decreasing the risk of miscommunication and the
inability to connect with their target market. On top of the high language barrier, approximately

50 per cent of the nation was considered to be illiterate. The lack of affluence posed another
communication issue for management which was addressed through high usage of audio-

visuals and billboards. This would have required McDonald’s management to review their
strategic planning and develop a marketing plan of a different nature. This presented a strategic

issue as McDonald’s core competency was their marketing function, which required a significant
amount of adaption for the above factors.

Corporate Tax of India is under 35% which is constant average with simplified indirect taxes.
So, less burden for McDonald’s to invest in India.

Economic environment of India is quite steady and stable which is safe to business for
McDonald’s.
Business for McDonalds in India with high unemployment rate, dealing in Rupees as currency and
millions of people living below poverty line is a concern for McDonalds.
India is having a booming economy, low tax rate and availability of labor in abundance and development
of middle-class society in India is a positive sign for McDonald's future.

With less than ten

percent of India’s population as
a possible target, customers
were attracted only by the low
and
unsustainable prices. Hence it
was imperative to reduce costs
by developing own efficient
local
supply chain and logistics, and
better reach, to deliver better
value to consumers.
With less than ten percent of India’s population as a possible target, customers were attracted only by
the low and unsustainable prices. Hence it was imperative to reduce costs by developing own efficient
local supply chain and logistics, and better reach, to deliver better value to consumers.

International firms face complications when entering India because of the trade barriers, tax laws,
health and hygiene regulations and employment laws, imposed by the government. The political
instability of the state also affects McDonald’s business. Being a fast food firm makes it more difficult as
it bears a lot of health risks which need to be countered by guaranteeing use of fresh and nutritious
ingredients. A huge competitive factor was that India’s population are more fascinated towards street
food and spicy food but eventually, McDonald’s came through by adapting their menu according to the
Indian consumers’ demands.

Being a food chain, it is always subject to the multiple health and hygiene regulations that are put
forward by the countries in which it operates. Further, as it primarily serves fast food which is associated
with a number of health risks such as obesity and heart attack, McDonald’s must also keep the health
concerns of its customers in mind. Taxes imposed by governments on the sale of fast food can
negatively affect the profitability of the restaurant chain.

As McDonald’s operates across countries and continents, the international relations between nations
and trade agreements also play a crucial role in the success of McDonald’s. Cross-border tension and
animosity among the countries it operates in can have a negative impact on the restaurant. However, in
emerging markets such as India, McDonald’s has scope for expansion.

1. Political: The business operation of an organization is always influenced by the policies of state
and its government. In India, McDonald‟s business is also under the control of government‟s
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
McDonald‟s business.

2. 23. Economic  All companies are affected by ongoing global economic slowdown. 

McDonald‟s India faces different scale of tax and revenue measurement.  McDonald‟s also
faces difficulties because of international currency fluctuations especially in its global food
distribution.  Local economical condition is also responsible for affecting McDonald‟s
operation.

India is quite rich as far as the political structure and policies are concerned that is the reason why
international organizations face difficulties when they are entering in India. In the similar manner it can
be said that India is a nationalist country that is the reason why they create difficulties for international
entrants. However, there are certain other factors like consumer taxation, different political
infrastructures and the scenario of the global market.
• Political parties are against fast food chains as they want to see only vegetarian restaurants in their
country.Their party members always protest against fast food using meat in their menu.
• Good news is that India is changing slowly from nationalistic society to liberal mind set up and
McDonalds expanded very fast in the last decade. Political Influences:

• Economical variables such as currency exchange, employment, Interest rate, tax ratio and need of
international supply.
• Most of the organization's depend on foreign supply of raw materials for their products making.
• Currency exchange also have a great impact on any organization.
• Business for McDonalds for India with high unemployment rate, dealing in Rupees as currency and
millions of people living below poverty line is a concern for McDonalds. But India is having a booming
economy, low tax rate and availability of labor in abundance and development of middle-class society in
India is a positive sign for McDonald's future.

McDonald’s in India serves Vegetable McNuggets (instead of chicken base) and Mutton based Maharaja
Mac (instead of beef base Big Mac) due to religious laws that prohibited Hindus to eat beef as well as to
cater the needs of vegetarian consumers.

McDonald's regular scrumptious menu includes wide range of products like McAloo Tikki, Filet-O- Fish,
Spicy Range, Chicken McGrill, McVeggie, Veg Pizza McPuff, Chicken Mcnuggets, Fries, Wraps, an
assortment of Sundaes, Soft Serve and refreshing beverages such as Ice Tea & Cold Coffee with
outstanding service in a vibrant and lively ambience, for which McDonald's is known worldwide.
McDonald's had further reinforced the branded affordability mantra via the introduction of the Happy
Price Menu which starts at Rs 25 only.

Product

• McDonald’s 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 meet these changes, McDonald’s has
introduced new 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).
• McDonald’s knows that items on its menu will vary in popularity. Their ability to generate profits will
vary at different points in their cycle.
• In India McDonalds has a diversified product range focusing more on the vegetarian products as most
consumers in India are primarily vegetarian.
• The happy meal for the children is a great seller among others.

• McDonald's commitment to its Indian customers is evident even in development of special sauces that
use local spices and chilies.
• The mayonnaise and all other sauces are egg-less. McDonald's also pioneered the establishment of
Cold Chain across India which helps maintain freshness and nutrition in every product.
• McDonald's regular scrumptious menu includes wide range of products like McAloo Tikki, Filet-O- Fish,
Spicy Range, Chicken McGrill, McVeggie, Veg Pizz a McPuff, Chicken Mcnuggets, Fries, Wraps, an
assortment of Sundaes, Soft Serve and refreshing beverages such as Ice Tea & Cold Coffee with
outstanding service in a vibrant and lively ambience, for which McDonald's is known worldwide.
• McDonald's had further reinforced the branded affordability mantra via the introduction of the Happy
Price Menu which starts at Rs 25 only.

Marketing Mix : Price

• Pricing strategy is one of the most significant aspects when it comes to marketing.This includes price
breakdown, when any discount service or payment available. Pricing strategy was developed in order to
attract middle and lower class individual and the result can clearly be seen the customer base which
McDonalds has at present.
• McDonald’s restaurant has specific value pricing as well as bundling strategy like combo meal, happy
meal, family meal and happy price menu in order to improve total sales of the service and product.
• 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 Rs20-30.This has been done to
satisfy consumers which different price perceptions.

Market Globalization

Globally, McDonald’s localized their products 75% for India, 33% for other countries in Asia and 5% for
rest of the world.
The firm also employs adaptation in its marketing communication strategies through promotional
attributes to challenge the differences in individual market. The elements commonly used are
consumer’s attitude towards its product, usage patterns, ethics, religious and moral consideration that
justifies a consumer’s purchasing power. This explains why in United Kingdom, the firm uses Alan
Shearer, the famous England Captain to promote their hamburgers where else in France, FabianBarthez
was used for promotions. McDonald’s also garnered world’s attention by pairing Ronald McDonald with
a female counterpart known as Aunt McDonald in its Beijing restaurants. McDonald’s also ventured out
with Walt Disney to produce toys in their happy meals sets based on movies produced by the film giant.
Few notable toys that clearly cheered hearts of children throughout the world are figurines based on
characters in the movies A Bug’s Life, Tarzan and of Globalization and Glocalization Marketing of
McDonald’s www.ijbmi.org 44 | Page course, Toy Story. Moreover, McDonald’s also portrays itself as
champion in public welfare by advocating on behalf of under-privileged children by setting up Ronald
McDonald’s House Charities. With a vision “Thinking globally, acting locally to provide resources for
children and their families” this charity programme since 1974 houses families with sick children in a
premise closer to the hospitals to enable the parents to stay close to their hospitalised child. By adding
human touch to its promotion agenda, McDonald’s surely is a hit among all its consumers regardless of
age, gender, or even location.

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 instore 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
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 visibility or sales of a product.

McDonalds, for years has maintained an extensive promotion strategy with highest spending on
marketing amongst all its competitors.

“aap ke zamaane mein baap ke zamaane ke daam” is a highly localized campaign which aimed at
attracting the masses through its happy price menu.

The Launch

The first restaurant opened in Vasant Vihar in New Delhi in October 1996 and soon Mumbai operations
also started. Initially McDonald’s targeted Delhi and Mumbai only, as these areas had high populations
of their target groups, were areas of higher incomes and were exposed to western culture. The second
phase targeted expansion into proximal towns like Pune and Gurgaon, while the third phase involved
key tourist destinations like Agra and Jaipur. Phase four targeted malls, multiplexes, highways, stations
and airports. The initial short-term plan did not include plans for South India, East India or Goa.

Continuous research was undertaken to understand tastes and preferences of consumers, their
feedback on the McDonald’s experience and their attitudes towards new products. New items were
developed and added to the menu based on consumer insights. Local suppliers of international
standards were developed and linkages established with quality vendors. Special emphasis was laid on
delivering friendly, smiling and fast service, McDonald's hallmark globally. McDonald’s maintained the
highest levels of cleanliness in its operations, which extended to the restaurant, kitchen, lobby and also
the outside pavement.

McDonald’s changed its global value proposition of convenience, to provide the McDonalds experience
to Indians. Within all the food restaurant formats in the organized sector, like fine dining, full service,
quick service, and kiosks, McDonald’s focused on the quick service restaurant (QSR) format. McDonald’s
targeted the young family who eats out with brightly lit, casual, comfortable and contemporary
restaurants. McDonald’s successfully replicated their global strategy of happy meals to attract kids, and
the family followed. The brand was differentiated on the platform of taste and variety while the brand
communication focused on the Indian adaptations and value for money.

McDonald’s products were competitively priced. Happy Meal (Small Burger, fries, coke+ toy) for Rs 39,
Quick bites for Rs 25, Medium Meal Combo- Burger, fries, coke- vegetarian for Rs 75 and non-vegetarian
for Rs 94, and Soft serve ice creams for Rs 8, made the McDonald’s experience affordable to Indians. The
prices in India were less than Pakistan and Sri Lanka and half the prices in the US.

In comparison KFC charged Rs 59- Rs 79 for a meal (Burger/KFC, Drink), Pizza Hut charged Rs 350 for a
family meal (2 medium pizzas + 4 small Pepsi) for Rs 350. Local brands like Nirula priced its Chicken, rice
and gravy meal for Rs 39 while Wimpy’s priced its Mega meals from Rs 35 onwards. In 2003, a family of
four comprising of two young parents and two small kids dined at a quick service restaurant (QSR) for
under Rs 400.

McDonalds communication focused on the family. The tagline at the introduction stage was “McDonalds
mein hai kuch baat” which indicated a special place for the family to celebrate. In the growth phase the
tagline changed to “To aaj McDonalds ho jaaye” conveying an acceptable and an enjoyable place for the
family to visit. In the growth phase McDonald’s used its global tagline “i’m lovin’ it” conveying a comfort
zone for young families. The tagline was also internalized by the McDonald’s staff globally, in activating
every touch point with customers.

Initial promotion was through print and television media communicating new products, modifications,
kid contests, and special offers on festivals and occasions. Currently television accounts for 80% of the
media spend with advertisements on strategic channels, followed by a combined budget of 20% for
print, radio and online media. Below the line in-store activities for kids are also regularly undertaken.
The focus is to generate repeat visits, widen the customer base, and entice trial through selective price
cuts.

Inspite of the value offered, post launch surveys revealed that McDonald’s was perceived as ‘premium’
and ‘bland’. The most popular products were Vegetarian Pizza McPuffs (Samosa + Pizza ingredients) and
Chicken McGrill (with extra tangy Indian spices). With less than ten percent of India’s population as a
possible target, customers were attracted only by the low and unsustainable prices. Hence it was
imperative to reduce costs by developing own efficient local supply chain and logistics, and better reach,
to deliver better value to consumers.

McDonald’s has adapted promotional strategies to address the diversity of global markets, by
considering the consumer’s usage patterns, ethics, religious and moral concerns and purchasing power.

Initial promotion was through print and television media communicating new products, modifications,
kid contests, and special offers on festivals and occasions. Currently television accounts for 80% of the
media spend with advertisements on strategic channels, followed by a combined budget of 20% for
print, radio and online media. Below the line in-store activities for kids are also regularly undertaken.
The focus is to generate repeat visits, widen the customer base, and entice trial through selective price
cuts.

McDonald’s products were competitively priced. Happy Meal (Small Burger, fries, coke+ toy) for Rs 39,
Quick bites for Rs 25, Medium Meal Combo- Burger, fries, coke- vegetarian for Rs 75 and non-vegetarian
for Rs 94, and Soft serve ice creams for Rs 8, made the McDonald’s experience affordable to Indians.

Initially the tagline was “McDonals mein hai kuch baat” which indicated a special place for the family to
celebrate. Then they introduced “Toh aaj, Mmmmmmmmmm! McDonald's ho jaye”, portraying a fun
place for the family. Afterwards, they used their international tagline “I’m lovin’ it”
The tagline was also internalized by the McDonald’s staff globally, in activating every touch point with
customers.
An activity, such as a sale or advertising campaign, designed to increase visibility or sales of a product.
McDonalds, for years has maintained an extensive promotion strategy with highest spending on
marketing amongst all its competitors. “Aap ke zamaane mein baap ke zamaane ke daam” is a highly
localized campaign which aimed at attracting the masses through its happy price menu. McDonald’s
targeted the young family who eats out with brightly lit, casual, comfortable and contemporary
restaurants. McDonald’s successfully replicated their global strategy of happy meals to attract kids, and
the family followed. The brand was differentiated on the platform of taste and variety while the brand
communication focused on the Indian adaptations and value for money. McDonalds communication
focused on the family. The tagline at the introduction stage was “McDonalds mein hai kuch baat” which
indicated a special place for the family to celebrate. In the growth phase the tagline changed to “To aaj
McDonalds ho jaaye” conveying an acceptable and an enjoyable place for the family to visit. In the
growth phase McDonald’s used its global tagline “i’m lovin’ it” conveying a comfort zone for young
families. The tagline was also internalized by the McDonald’s staff globally, in activating every touch
point with customers.

Initial promotion was through print and television media communicating new products, modifications,
kid contests, and special offers on festivals and occasions. Currently television accounts for 80% of the
media spend with advertisements on strategic channels, followed by a combined budget of 20% for
print, radio and online media. Below the line in-store activities for kids are also regularly undertaken.
The focus is to generate repeat visits, widen the customer base, and entice trial through selective price
cuts.

McDonald’s products were competitively priced. Happy Meal (Small Burger, fries, coke+ toy) for Rs 39,
Quick bites for Rs 25, Medium Meal Combo- Burger, fries, coke- vegetarian for Rs 75 and non-vegetarian
for Rs 94, and Soft serve ice creams for Rs 8, made the McDonald’s experience affordable to Indians.