Mc Donalds India Essay

3541 words - 14 pages

India Challenges for McDonald's in:Vegetarianism:The major issue was beef. Cow being sacred and worshipped, beef could not be served. Muslims did not eat pork. The challenge was to change the form of the worldwide popular Hamburger to make an entry into India. With 25-30% of the population being lacto vegetarian and a large majority eating meat, an alternative to beef and pork was necessary.The population of a billion was undoubtedly a promising opportunity for an international company. McDonald's accepted the challenge and created the Aloo - Tikki Burger known as McAloo TikkiTM especially for the Indian vegetarian customers. Aloo- Tikki was a potato patty with spices. It also made a chicken and fish option available for the non vegetarians. McDonald's even separated the non vegetarian cooking process and the vegetarian cooking process to convince the customers of the "Shudh Shakahari Experience' which means pure vegetarian experience. In addition, the crew cooking vegetarian food were asked to wear green apronsiv. McDonald's in India was one of its kinds as it did not offer beef at all. In order to convince and change the perception of the customers about the burgers they offered, McDonald's made attempts to clarify their stand about beef in India. So the world famous hamburger was without meat. This was indeed a classic case of product adaptation, to gain foothold in a new market.Competition from Local Food Retailers:The competition from the local food retailers was intense. The food retailers had been doing business for years. Their familiarity with the market and the understanding of the local taste gave them a competitive edge. There were numerous eating joints which offered snacks and meals with affordable price tags.Organized food retailing was dominated by the north Indian style and the south Indian style restaurant chains. The metropolitan cities and some developed urban areas offered superior dining experience through the existence of some fine, classic restaurants. But the price was expensive and only a select group of customers could afford to make visits there. On the other hand, the size of the unorganized food retailing was larger and comprised of roadside food vendors, dhabas (the eateries on the highways) and on the outskirts of the cities and a plethora of small eateries. Local food in a large assortment was widely available within acceptable price ranges. It was observed that food choices made by consumers were impulsive. Aroma, taste, habits and visibility worked on the subconscious level and played a major role in affective decision making. The local food business exactly understood the psychology of the customers and operated accordingly. The mass markets in India had their own set of preferences.Target Marketing:Value propositions had to be directed to the right target market to establish a new product. An interesting question was who would eat at McDonald's? In order to develop the marketing strategy, it was important for...

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