Market Combination and Strategy of Mcdonalds India

McDonalds Background:

McDonald's was began as a drive-in restaurant by two brothers, Richard and Maurice McDonald in California, US in the year 1937.

By mid-1950s, the restaurant's income had reached $350, 000.

Ray Kroc, distributor for milkshake machines, indicated interest available, and he finalized a offer for franchising with the McDonald brothers in 1954.

He founded a franchising company, the McDonald System Inc. and appointed franchisees.

In 1961, he bought out the McDonald brothers' share for $2. 7 million and improved the name of the company to McDonald's Company. In 1965, McDonald's proceeded to go public.

McDonalds in India

In 1996, first McDonald's restaurant opened on Oct. 13, at Basant Lok, Vasant Vihar, New Delhi.

McDonald's India is a 50 - 50 JV relationship between McDonald's Firm (U. S. A) and two Indian businessman Amit Jatia (Hardcastle Restaurants Private Limited, Mumbai) and Vikram Bakshi (Connaught Plaza Restaurants Private Limited, Delhi).

Approximately 75% of the menu available in McDonald's in India is Indianized and specifically made to woo Indian customers.

The McDonald's school of thought of QSC&V is the guiding power behind its service to the customers.


The marketing mix of a company involves the various elements as follows which form the central of your company's marketing system and therefore helps to achieve marketing goals.

McDonald's is a respected international junk food restaurant chain with 30, 000 restaurants distributed throughout the world. In India, it launched its procedures in 1996, with two stores. It now has 54 restaurants with an everyday inflow of 500, 000 customers.

It plans to include 15 more stores by the finish of 2004. According to the Informal Eating dinner out (IEO) survey involving the survey of branded food chains in India, conducted by ACNielsen, McDonald's was found to be the first choice in fast food chains. Many factors can be related to the success of McDonalds Indian functions.

A marketing strategy must be created to be able to determine the means by which a couple of clear aims may be met. Objectives communicate what marketers want to achieve, guide marketing activities and are being used to evaluate how well a plan is working. They could be related to advertise share, sales, achieving the target audience and creating awareness in the marketplace. Long-term aims are broken down into shorter-term measurable focuses on, which McDonald's uses as milestones on the way.

Results can be analyzed regularly to see whether aims are being satisfied. This type of feedback allows the business to change ideas and allows flexibility.

Once marketing goals have been set up, the next level is to identify how they'll be achieved. The marketing strategy is the statement of how aims will be supplied. It points out what marketing activities and resources will be utilized and how they will interact.

4Ps of Marketing Blend

McDonald's places appreciable emphasis on developing a menu which customers want. Market research establishes precisely what this is. However, customers' requirements change over time. In order to meet these changes, McDonald's has created new products and phased out old ones, and can continue to do so. Care is considered not to adversely affect the sales of one choice by presenting a fresh choice, that may cannibalize sales from the existing one (trade off). McDonald's understands that items on its menu will vary in acceptance. Their ability to generate profits will change at different details in their circuit. In India McDonalds has a varied product range focusing more on the vegetarian products as most consumers in India are primarily vegetarian. The happy meal for the children is a superb seller among others.

McDonalds have to be very careful in India while growing their business. In India you venture out and you'll get a prepared to eat snacks and this too in a cheap price. So McDonalds has a direct competition with Indian road fast food that includes a many varieties and it is very popular among people. As Fast food industry has been very successful in India, both in financial terms as well as in popularizing its quick service culture among the populace. . India's fast food industry keeps growing at 40% per annum and generates over Rs. 4800 cores in sales. The multinational section of the industry creates over Rs. 7000 crores. There are lots of varieties of fast food in different states of India. The popular fasts of the individual state governments are as given below.

South India

Idlis- Made from Rice Idli, Rava Idli

Vadas- Made from Uddina Vada, Rava Vada, Masala Vada, Maddur Vada

Dosas- Made from Masala Dosas, Set in place Dosa, Rava Dosa

Upma- Created from Kesaribath

Ponagal, etc.

West India

Vada Pav-which is also called an Indian Burger and made up of flour, potatoes, spices.

Dahi Vada-Made up of lentils, yogurt

Pohe-Made up of flattened rice

Locha- Made from milling of chanadal, masala

Sev Kjhamni-Made from chana dal, inexperienced chillies, ginger, lemon drink and olive oil

East India


Pani Puri

Aloo Chat


North India

Chaat: made up of potato, tomato and tangy in a taste

Pani Puri: profound fried constructed from flour and serve with tangy water

Bhel Puri: composed of besan flour and garnishing with tomato, onions and tangy chutney

Papadi Chaat- consisting of flour, butter, onion, and different Indian spices.

McDonalds Menu Options
Comparision between Indian Burger ( Vada Pav ) & McDonalds Burger

The customer's perception of value can be an important determinant of the price charged. Customers pull their own mental picture of what a product will probably be worth. A product is more than a physical item; it also has internal connotations for the client. The threat of using good deal as a marketing tool is the fact the customer may feel that quality has been compromised. It is important when deciding on price to be fully alert to the brand and its own integrity.

In India the most traditional cuisine of India is the Indian neighborhood food, which may be bought limited to few rupees from the lightweight stalls within the Indian towns and town. The street suppliers offer hot fresh, lip smacking snacks, which is very feeling. These foods are popular due to the fact they are available at half of the price tag on any restaurant food. Take-out food, junk food, snacks and junk food can be found easily and it doesn't take much time to prepare so that it is extremely swift in eating.

The Indian Neighborhood Food varies from region to region. The normal North Indian street food is Chaat -a common name for all those tangy spicy not very wholesome delicacies. The tangy flavor comes from the use of lemon, pomegranate seed products, black sodium, tamarind, and various chutneys. Chaat can be prepared with fruits like guava, banana, papaya, apple etc. Usage of paapri, which is crisp pancakes made from fried flour with some out of yoghurt, potatoes sauteed with black cumin natural powder with some amount of "meetha and khatta chutney" (nice and sour pickle) with a dash of coriander becomes the lip smacking Paapri Chaat. The Pani Puri also called golgappa in some places in India is another streets delicacy. Pani puris are hollow clean balls made from dough, and filled up as-you-eat with a spicy concoction of drinking water and potatoes, topped with a choice of great or spicy chutney and so forth. In India in different region has their own different specialties and which are easy to obtain it and cheap in price. So in India to contend with the Indian local block fast food, McDonalds must work hard to create its position and continue contending and growing each day.

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 breast McGrill burgers which cost Rs 20-3 This has been done to fulfill consumers which different price perceptions.

Value Ladder strategy:-

a) Began offering value meals in a range of prices.

b) Ensure affordability and attract widest section of customers.

c) Brought the customer and provided a range of entry level products.

d) Try those new items and graduate to higher-rungs.

e) E. g- if a customer starts off with McAloo Tikki, he'll finally graduate to McVeggie and so in Non veg.

f) Helped its Size business.

Aap ke zamane mein,

baap ke zamane ka daam (In British that means in your

Value Costing: (Price in INR)

Promotion: The promotions aspect of the marketing combine covers all sorts of marketing communications One of the methods used is advertising, Advertising is conducted on TV, radio, in cinema, online, using poster sites and in the press for example in newspapers and journals. Other promotional methods include sales deals, point of sale display, merchandising, direct mail, loyalty strategies, door drops, etc. The skill in marketing communications is to develop a advertising campaign which uses several of these methods in a way that provides the most effective results. For example, Television advertising makes people aware of a food item and press advertising provides more detail. This may be backed by in-store campaigns to get visitors to try the merchandise and a collectable promotional device to cause them to become keep on buying the item.

At McDonalds the primary concentration is on targeting children. In happy dishes too that are targeted at children small playthings are given along with the meal. Aside from this, various strategies for earning prices by using lucky draws and also scrape cards receive when an order is placed on the various mean combos.

An activity, such as a sale or marketing campaign, designed to increase presence or sales of a product.

McDonalds, for years has taken care of an extensive advertising strategy with highest shelling out for marketing among all its competition.

While advertising; focus on overall experience.

"Brand internationally and take action locally".

Overall it does what it can the best - marketing.

Intensive advertising targeted at children.

Newspaper mats on trays ensure that no new system runs unnoticed.

"I'm caring' it" can be an international branding campaign which was launched in 2003 and has proved to be its biggest success.

"aap ke zamaane mein baap ke zamaane ke daam" is an extremely localized marketing campaign which aimed at attracting the public through its happy price menu.

Place: Place, as an element of the marketing mixture, is not only about the physical location or distribution tips for products. It includes the management of a range of processes involved with delivering products to the finish consumer. McDonald's outlets are very uniformly spread throughout the towns making them very accessible. Drive in and drive through options make McDonald's products further convenient to the consumers.


Once the marketing strategy is in place, various responsibilities are given to different individuals so the plan can be implemented. Systems are placed in location to obtain market reviews which measure success against short-term focuses on. McDonald's has to ensure that this is performed within the confines of a firmly controlled, finite marketing budget.

The fast food industry in India has progressed with the changing lifestyles of the young Indian inhabitants. The sheer variety of gastronomic tastes across the parts, hereditary or purchased, has taken about different modules across the country. It might take a while for the local organization to mature to the level of international players in the field.

McDonald is the world's leading food service retailer with more than 30, 000 restaurants in 119 countries offering 46 million customers each day. Roughly 85 percent of McDonald's restaurants worldwide are possessed and run by indie, local businessmen and women.

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