Fast Food Fables macd, kfc, n dominos

FAST FOOD FABLES

Presented By:-

Subhash Singh Tomar (19)

Abhishek Bajpai (27)

Reeshabh Kumar (37)

Abstract

The case discusses the localization strategies adopted by the multinational fast food chains - McDonald's, Domino's and KFC in India. Initially, these fast food chains found it tough to cater to Indian tastes. Soon, they customized their menu, positioned their products and advertised to appeal to Indian customers. McDonald's and Domino's succeeded to a certain extent, while KFC still had a long way to go. And the factors that forced the fast food chains to understand the local market and modify their strategies to suit local requirements.

Mc DONALD’s

CUSTOMER DERIVED VALUE

LOW-MED MED MED

HIGH HIGH

LOW

LOW LOW

• Geographic region:-

Region- Urban India

City- metro cities.

SEGMENTATION OF Mc DONALD

Demographic Segmentation

• Targeted on:

Middle and Upper income group families,

• Family stage:

Full nest

• Potential target:

Office goers, Special Dial M facility

Psychological Segmentation

• Motivations• Personality• Perceptions• Learning

Motivation

• Need- Innate need.• Goal- product specific need• Motivation- Positive motivation• Motives- Emotional as well as Rational

motives• Arousal of motives- Physiological arousal

as well as environmental arousal

MASLOW’S HIERARCHY

Physiological Needs(Food, water, air, shelter, sex)

Safety and Security Needs(Protection, order, stability)

Social Needs(affection, friendship, belonging)

Ego Needs(Prestige, status, self esteem)

Self-Actualization(Self-fulfillment)

AS PER TRIO OF NEEDS

As per Freudian Theory of Personality

NEED FOR AFFILIATION(People who often select goods ,They feel will meet with the approval of friends)

Id & Ego

Personality

• Acc. To Horney- Compliant (family)

VARIOUS TRAITS(as per trait theory)

Consumer Innovativeness: -

• Innovativeness- Low-medium

• Dogmatism- Medium

• Social character- Other directed

• Need for Uniqueness- Low-medium

• Optimal stimulation level- Medium

• Sensation seeking- Medium

• Variety-novelty seeking- Medium-high

Personality (cont…)

Cognitive personality factors: -• Need for Cognition- low (Visualizer)

Brand personality- Competent

Personality (cont…)

Different Self-Images

Actual Self-Image Ideal Self-Image

Ideal SocialSelf-

Image(MacD customer)

Social Self-Image

ExpectedSelf-Image

Perception

• Weber’s law- S1 < S2 i.e. Noticed Above JND (Just noticeable

difference)

• Pricing Strategies focused on perceived value-

‘Relationship Pricing’

Behavioral Segmentation

• Attitude

Tri component model-

Conation (Do)

Affect (Feel)

Cognition (Learn)

Product Level

• Core benefit - Fast Food• Basic product - Berger • Expected product - Easy

Availability• Augmented product -

Socialization• Potential product -

Available at lowest price then others.

Product Hierarchy

• Need Family : Hunger

• Product Family : Snacks

• Product Class :All Kinds of Snacks

• Product Line :Road Side or Restaurant

• Product Type : Veg-Berger or Non-veg

Berger

• Item : Mc Donald’s Veg-Berger

Classical Conditioning

Unconditioned Stimulus20/-

Conditioned StimulusMac Donald's

Unconditioned ResponseVeg.

Conditioned StimulusMac Donald’s

Conditioned ResponseAloo tikki burger

AFTER REPEATED PAIRINGS

• Reinforcement:- Positive Reinforcement

• Observational learning

The Elaboration Likelihood Model

Involvement

Central Route

Peripheral Route

Peripheral Cues

Influence Attitudes

Message Arguments Influence Attitudes

HIGH LOW

LatentLoyalty

No Loyalty

Spurious Loyalty

Loyalty

LowLow

HighHigh

HighHigh LowLow

Repeat PatronageRepeat Patronage

Relative Relative AttitudeAttitude

Brand Loyalty

Positioning

• Image positioning-

The brand name Mc Donald's carries many associations burger, fun, children, fast food, ambience, all of these makes up the brand image.

• Competitor positioning-

Mc Donald’s mein hai kuch baat

DOMINO’s

CUSTOMER DERIVED VALUE

HIGH MED LOW

HIGH HIGH

LOW

HIGH LOW

Segmenting DOMINO’S

• Geographic Region- Northern India City size- Urban, Delhi. • Demographic Targeted on: upper- middle, middle Family- full nest, people seeking convenience • Psychographic Motivations Personality Perceptions Learning

Motivation

• Need- Innate need.• Goal- Product specific need• Motivation- Positive motivation• Motives- Emotional as well as rational motives• Arousal of motives- Physiological and

environmental arousal

MASLOW’S HIERARCHY

Physiological Needs(Food, water, air, shelter, sex)

Safety and Security Needs(Protection, order, stability)

Social Needs(affection, friendship, belonging)

Ego Needs(Prestige, status, self esteem)

Self-Actualization(Self-fulfillment)

AS PER TRIO OF NEEDS

As per Freudian Theory of Personality

NEED FOR AFFILIATION(People who often select goods ,They feel will meet with the approval of friends)

Id & Ego

Personality

Personality

• Acc. To Horney- Aggressive

VARIOUS TRAITS

Consumer Innovativeness: -

• Innovativeness-high

• Dogmatism- medium

• Social character- other directed

• Need for uniqueness- medium

• Optimal stimulation level- medium

• Sensation seeking- medium

• Variety-novelty seeking- medium

Cognitive personality factors: -

• Need for Cognition- low (Visualizer)

Brand personality- excitement

Different Self-Images

Actual Self-Image

Ideal Self-Image (Domino’s Customer)

Ideal SocialSelf-Image Social Self-Image

ExpectedSelf-Image

Perception

• Weber’s law- S1 < S2 i.e. Noticed Above JND (Just noticeable

difference)

• Pricing Strategies focused on perceived value-

‘Satisfaction based Pricing’

Behavioral

• Benefits : Delivery in 30 mins or free• Attitude: Tri component model- Conation (Do)

Affect (Feel) Cognition (Learn)

Product Level

• Core benefit - Fast Food• Basic product - Pizza• Expected product - Easy

Availability• Augmented product -

Available in many sizes and flavor.

• Potential product - Available at lowest price than others.

Product Hierarchy

• Need Family : Hunger

• Product Family : Snacks

• Product Class :All Kinds of Snacks

• Product Line :Road Side or Restaurant

• Product Type : Domino’s, Wimpy, Pizza hut, Pizza corner, or Nirula’s

• Item : Domino’s Pizza

Classical Conditioning

Unconditioned StimulusFree home delivery

within30 min

Conditioned StimulusDomino’s

Unconditioned ResponsePizza

Conditioned StimulusDomino’s

Conditioned ResponsePizza

AFTER REPEATED PAIRINGS

• Reinforcement:- Positive Reinforcement

• Observational learning

The Elaboration Likelihood Model

Involvement

Central Route

Peripheral Route

Peripheral Cues

Influence Attitudes

Message Arguments Influence Attitudes

HIGH LOW

LatentLoyalty

No Loyalty

Spurious Loyalty

Loyalty

LowLow

HighHigh

HighHigh LowLow

Repeat PatronageRepeat Patronage

Relative Relative AttitudeAttitude

Brand Loyalty

• Benefit positioning

• Competitor positioning

Positioning

CUSTOMER DERIVED VALUE

HIGH HIGH HIGH

MED-HIGH

HIGH

MED

MED-HIGH

MED-HIGH

Segmenting KFC

• Geographic Region- Calcutta, Delhi, Bangalore, Hyderabad, Mumbai City- Urban Areas, metros• Demographic Targeted on: upper- middle, middle Family- full nest • Psychographic Motivations Personality Perceptions Learning

•Initially KFC targeted detached personality people, offering only individual meals of international taste

•Later they changed their target to families

Motivation

Need- Innate need.Goal- Product specific needMotivation- Positive motivationMotives- Emotional motivesArousal of motives- Physiological and environmental arousal

MASLOW’S HIERARCHY

Physiological Needs(Food, water, air, shelter, sex)

Safety and Security Needs(Protection, order, stability)

Social Needs(affection, friendship, belonging)

Ego Needs(Prestige, status, self esteem)

Self-Actualization(Self-fulfillment)

As per Freudian Theory of Personality Ego

Personality

Acc. To Horney- Detached Compliant

Personality

VARIOUS TRAITS( as per trait theory)Consumer Innovativeness: -Innovativeness-high lowDogmatism- low highSocial character- inner other directedSeek uniqueness a little lessOptimal stimulation level- mediumSensation seeking- high mediumVariety-novelty seeking- medium

Cognitive personality factors: -

•Need for Cognition- low (Visualizer)

Brand personality- excitement

Attitude-

Tri component model-

Conation (Do)

Affect (Feel)

Cognition (Learn)

Behavioural

Different Self-Images

Actual Self-Image Ideal Self-Image

Ideal SocialSelf-Image Social Self-Image

ExpectedSelf-Image

Perception

• Weber’s law- S1 < S2 i.e. Noticed Above JND (Just noticeable

difference)

• Pricing Strategies focused on perceived value-

‘Relationship Pricing’

Behavioral Segmentation

• Attitude

Tri component model-

Conation (Do)

Affect (Feel)

Cognition (Learn)

Product Level

• Core benefit - Fast Food• Basic product - Berger • Expected product - Easy

Availability• Augmented product -

Socialization• Potential product -

Available at lowest price then others.

Product Hierarchy

• Need Family : Hunger

• Product Family : Snacks

• Product Class :All Kinds of Snacks

• Product Line :Road Side or Restaurant

• Product Type : Veg-Berger or Non-veg

Berger

• Item : Mc Donald’s Veg-Berger

Classical Conditioning

Unconditioned Stimulus20/-

Conditioned StimulusMac Donald's

Unconditioned ResponseAloo tikki burger

Conditioned StimulusMac Donald’s

Conditioned ResponseAloo tikki burger

AFTER REPEATED PAIRINGS

• Reinforcement:- Positive Reinforcement

• Observational learning

The Elaboration Likelihood Model

Involvement

Central Route

Peripheral Route

Peripheral Cues

Influence Attitudes

Message Arguments Influence Attitudes

HIGH LOW

LatentLoyalty

No Loyalty

Spurious Loyalty

Loyalty

LowLow

HighHigh

HighHigh LowLow

Repeat PatronageRepeat Patronage

Relative Relative AttitudeAttitude

Brand Loyalty

Positioning

• Image positioning-

The brand name Mc Donald's carries many associations burger, fun, children, fast food, ambience, all of these makes up the brand image.

• Competitor positioning-

Mc Donald’s mein hai kuch baat

Positioning

• User positioning

Mc Donalds

• Differenciate on-

Q: quality

S: service

C: cleanliness

V: value

• Advertise as a family restaurant.

• Differenciate on-

Channel: delivery in

30 min.

• Advertisements shows aggressive personality type

Domino’s

THANK YOU