C H A L L E N G E S FA C E D B Y

MC DONALDS
B A L A J I I N S T I T U T E O F I N T E R N AT I O N A L B U S I N E S S
EXECUTIVE SUMMARY
• The company has two partners in the country — North & East Business is operated by Connaught Plaza Restaurants
(CPRL) while Westlife Development is the master franchisee in the western and southern markets. It entered India in
1996, and over the years, accumulated net loss of Rs.421 crore.
• The biggest challenge for a multinational is to maintain its global strategy in the stint of diversity as they hit different
foreign lands. The same was the biggest challenge for McDonalds when they launched into India. They faced severe
Public relation crisis and it was a very difficult to come up with a solution in such a country. Some of the key variables
in this relation were the suppliers, customers, government and the Global Brand image of the company itself.
• The legal battle amongst the company & CPRL led to northern & eastern region temporary closure.
• Changes that it is making in Indian marker:
1. Breakfast meals
2. Calories check
3. Positioning itself as healthy option available for Indian Consumer's
INTRODUCTION
Challenges faced by McDonalds and strategies adopted by them:
a) To retain the existing customers, attracting new ones and to maintain strong franchisee relationship with
Indian companies and old associates.
b) To change the earlier positioning as promoter of unhealthy food.
c) Giving wide varieties to customers.
http://www.careratings.com
OVERVIEW
https://www.westlife.co.in/download-pdf/Investor/AnnualReports
http://www.careratings.com
file:///C:/Users/exam/Desktop/qsr-market-in-india.pdf
ORGANISATION/ HISTORY
• McDonald’s, in full McDonald’s Corporation.
• American fast-food chain that is one of the largest in the world, known for its hamburgers. Its headquarters are in Oak Brook, Illinois.
• The first McDonald’s restaurant  was started in 1948 by brothers Maurice (“Mac”) and Richard McDonald in San Bernardino,
California.
• They bought appliances for their small hamburger restaurant from salesman Ray Kroc , who was intrigued by their need for eight malt
and shake mixers. When Kroc visited the brothers in 1954 to see how a small shop could sell so many milkshakes, he discovered a
simple, efficient format that permitted the brothers to produce huge quantities of food at low prices
• . A basic hamburger cost 15 cents, about half the price charged by competing restaurants. The self-service counter eliminated the need
for waiters and waitresses; customers received their food quickly because hamburgers were cooked ahead of time, wrapped, and
warmed under heat lamps.
STP ANALYSIS :
• SEGMENTATION : Demographics – Teenagers, youth & kids
Psychographics :- Convenience of life style
• TARGETING : - children & youth ,young urban families, vegetarians fast
foods eaters.
• Positioning :- Happy price menus ,Toys along with meal ,Wi-Fi facilities are
provided ,no beef no pork .
 DIVERSIFICATION STRATEGY:-
• Mc café which was introduced in 2013 which introduced a premium
speciality coffee cappuccino latte, ice mocha & frappe .
• Chatpata naan, dosa masala, aloo wrap.
Speed of Service

https://www.qsrmagazine.com
 Areas to Improve

https://www.qsrmagazine.com
 Birthday Parties
• McDonald’s launches Birthday Parties.

• Ahmedabad, 3rd December 2009-- Its party time at McDonald’s!!!

• Aiming to make your child’s birthday a truly memorable moment, McDonald’s has launched all-new special
birthday packages which include exciting prizes

• McDonald’s offers two kinds of packages for the birthday party, Birthday Blast and Super Duper Birthday
Blast, at a very low price.
Eat Light under 500 calories (Breakfast)

1. Positioning itself as completely different than its earlier image.

a. Healthy food (counting calories intake)
b. Full with variety
c. Righty priced
d. Alternatives available as place to have good and complete breakfast
FRANCHISEE ISSUES :-
• Connaught plaza is the master franchisee of McDonalds's in northern &
eastern India that runs 169 outlets.
• Legal battle between McDonalds & Vikram Bakshi led to temporary closure
of 84 outlets.