A MARKETING AUDIT FOR MCDONALD'S IN THE INDIAN CONTEXT

Based on case and McDonald’s value - values summarized in “Q.S.C & V”. Provide good
quality, services to customer. Have cleanliness environment when customer enjoys their
meal. The value of food product makes every customer is smiling.

• There is a huge opportunity for high growth in the QSR segment such as McDonald’s
franchise. The Westlife Development Ltd-run franchise is expected to grow in the
coming time as a change in demographics is driving increased spending on fast foods.
Further, several other factors such as “increase in literacy, high disposable income,
exposure to media, greater and easier availability,” are also helping the QSR market
• India’s food-service industry is expected to grow at 9% CAGR and out of the total
informal eating out (IEO) market, western fast food (WFF) chains have just 2-3% share.
However, the WFF chains are expected to grow at 2.5 times its current rate. “WFF
chains such as McDonald’s, Burger King, Domino’s Pizza, etc. represent just about 2-3%
of the total IEO market, they are growing about 2.5 times faster

Marketing Mix of McDonald’s based on Indian context

A marketing mix is a model that an organization uses to advance the interest for its image or
product. The main components of this model are 4Ps: Product, Price, Place and Promotion.
So let us look at McDonald’s marketing mix strategy in the coming section

Product Strategy of McDonald’s Indian context

• Being a fast-food company, it primarily sells burgers, French fries, breakfast items, soft
drinks, milkshakes and desserts.
• McDonald’s menus are known around the globe, although there are geographic
variations to suit the local preferences & tastes of customers. The company continuously
improves its products and services based on the changing needs and tastes of
consumers
• The core value of what McDonald’s offers has always been fast service which is a huge
value-addition. Nowhere else can you get such a range of items at even lower prices
with such efficiency, convenience and customer service.

Price Strategy of McDonald’s Indian context

• The pricing strategy of McDonald’s has always been to offer food at low prices. This is
what has allowed the restaurant to be successful for many years.
• This also has primarily helped McDonald’s build its reputation as one of the top fast-food
brands in the world. However, with the costs of living continuing to rise, McDonald’s has
begun offering combos and specials in an effort to entice customers and churn out
profits through economies of scale.

Place and Distribution Strategy of McDonald’s Indian context

• Adding 700-900 restaurants annually enter new markets through lower prices.
• It shows a great barrier to entry for competitors to enter the industry.
• Through its strong centralized authority & tight control, standardized procedures
McDonald’s takes most an efficiency approach.

• It has opened different restaurant formats as well as drive-ins, online ordering and tying
with food delivery partners. These new formats allow the customers to get the desired
food at a particular time and place which also helps them to have a better experience
overall.
• The stores themselves are clean unlike others as they always keep their outdoor seating
space cleaned while having indoor seating areas for an elegant ambience.

Promotion Strategy of McDonald’s Indian context

• In India, the brand came up with a punchy line – “Aap Ke Zamane Mein, Baap Ke
Zamane Ke Daam”. This was done back in 2008 to attract lower and middle-class
customers to experience the offerings of McDonald’s India and it worked out very well
There’s A McCafe for Every Moment – A Marketing Campaign of McDonald’s India

• McDonald’s India came up with this campaign to highlight its beverage range, McCafe
and how they are there for all the good, bad and neutral moments of life.
• This campaign was released back in 2017, showcasing all the minute elements of life
through a catchy theme song.
#MatchedByYou – A Marketing Campaign of McDonald’s India

• McDonald’s introduced an exciting campaign #MatchedByYou. It shows a love triangle

between burgers, fries, and cola. This campaign showcased the offering of food combos
for the price as low as ₹45.

Differentiation strategy of McDonald’s:

• In differentiation strategy, fast food chains need to be more selective in which products
to offer & more creative in their promotion strategy.
• McDonald’s offers specialized (Regionalized) version of its menu. This leads to
differentiate the products from other competitor products as well.
• To overcome their healthy issues Mc Donald’s added salads & other lighter options to its
menu & encourage people to visit more often.
• Product adaptation in India- Vegetarian selections, No beef or pork items, McMasala
• Wide variety of menu items according to the Indian menu items;
• Vegetable & non vegetable products. Local flavour’s
• Health-conscious

Types of restaurants:
• Counter service & drive through (With indoor & outdoor seating in Delhi.)
• McDrive locations near highways offer no counter services or seating.
• McCafé restaurants within the same McDonald’s restaurants. (They increased sales by
60% from this strategy.)
• Expansion for the following locations as well;
• More distribution centres within 500 km radius.
• Satellite cities near Mumbai Delhi Bangalore Hyderabad Kolkata & pune
• Cities with tourist appeal and eating out culture.
• Petrol stations, railway & bus stations in & around Delhi & shopping malls and movie
complexes (Mumbai Delhi Bangalore Hyderabad Kolkata & pune )

Conclusion
• McDonald’s recognized the unique problems and opportunities of the Indian market.
The company then took its time, adapting its products and just as importantly its
corporate strategy, and has been hugely successful since.
• At the same time, the company cannot afford to become complacent and rest on its
laurels. Any future missteps, however small, could ruin McDonald’s efforts and hard-
fought gains in the country, allowing the company’s rivals to catapult past them and
onto even greater success.
• In order to sustain in a very competitive market McDonald’s has to continuously think of
bringing in new concepts into all its operations especially in marketing
• The result of a spontaneous thought led to the introduction of breakfast outlets and a
chance encounter with a technology specialist ended up with online booking orders and
birthday parties and signature outlets.
• The success of McDonalds in India could be measured by its continuous growth in Indian
fast-food market with 480 stores branches across India.

Submitted by -Prayag Das Reg.no FMS/MBA/2020-22/057