Mc donalds part 2

Brand Dossier McDonald’s

Literature Review on McDonald’s

Part 2: Primary Research

Submitted to

Prof. Srinivas Govind Rajan

Submitted By:

Kalyan Kumar Das

Jyotishree Gupta

Amit Kumar

Literature review Part 2 Page 1


List of hypothesis:

1. How McDonald’s local adaptation created space between Indian cuisines.2. How local adaption contribute to business Growth in India & challenges3. What is McDonald’s doing right in India4. How Success Strategy works correctly

Hypothesis: 1. How McDonald’s local adaptation created space between Indian cuisines:

Supportive Arguments

Nature of Indian restaurants: Nature of Indian restaurant is mostly taste occupancy. The menu remains true to the classic Indian recipe. The personification of modern India is colourful & festive. The food of India is like no other experience that once savoured is ever forgotten. A cuisine whole style & ingredients has travelled the world. The naan, the versatile lentil, the inimitable culfi, dahi dishes, masala tea are the perfect accompaniment in Indian cuisine.

Here as an Indian by nature we have refined this immense variety into a selective list of finest recipe, prepared in a healthy & home cooked fashion.

Food habits of Indian:

Image of India is a predominantly vegetarian country. Over the period of time cultural scholar has find that drastically shift of food habits among Indians. The Hindu-CNN-IBN state of the nation survey conducts the survey of around 15000 correspondents spread across 883 village & 19 urban states. The survey confirms that the widespread impression of vegetarian remark is shifted. The analysis of data show that majority of our communities are non-vegetarian. The finding shows that only 31 percent of Indian is vegetarians. The figure is 21 percentages for families (with all vegetarian members). Another 9% of population is eggetarian or vegetarian who eat eggs. Vegetarianism has a predictable pattern: women are more likely to be vegetarian than men and so are those above the age of 55. But there is no broad correspondence between age and vegetarianism. Among the young, the figure is only slightly below the national average. The findings show that vegetarianism is a function of inherited cultural practice rather than individual belief. Religion and community matter: as many as 55 per cent of Brahmins are vegetarians. The corresponding figure for Adivasis is 12 per



cent. Hindus who worship every day are more likely to be vegetarian, but the majority of all Hindus are non-vegetarian. Interestingly, eight per cent of Christians are also vegetarians.

The survey shows that regional location matters more than caste or community. As expected, the lowest proportions of vegetarian families are in coastal States such as Kerala (two per cent), Tamil Nadu (eight per cent), Andhra Pradesh (four per cent), Orissa (eight per cent) and Bengal (three per cent). Most land-locked States, especially in the west and north, are places with the highest proportion of vegetarian families: Rajasthan (63 per cent), Haryana (62 per cent), Punjab (48 per cent), Uttar Pradesh (33 per cent), Madhya Pradesh (35 per cent) and Gujarat (45 per cent).

The survey also throws light on some changing food habits due to the influence of `modernity.' Tea or coffee is consumed by 77 per cent of the people every day. Cold drinks are yet to catch up: only four per cent consume it every day. But this figure goes up to 30 per cent if irregular consumers are included. The consumption is markedly higher among the young. A little less than half of urban India and a little less than a quarter of rural India consume cold drinks. Smoking is widespread. Twenty one per cent smoke cigarettes or bidis every day. But there is no evidence of the rise of smoking among the youth.

Similarly, there is no evidence that more youth are drinking. Thirteen per cent drink regularly or sometimes. The highest incidence is among the middle-aged (between 36 and 45 years) and among communities where there are no taboos on drinking.

But these findings could be an underestimation as nearly two-thirds of those polled believe that drinking has increased in their locality over the last decade. This is true even in Gujarat, where prohibition is in force. An overwhelming majority is in favour of state action to prevent the spread of alcohol consumption. Every survey conducted in the last decade has reported similar levels of support for state-enforced prohibition.

The Hindu -CNN-IBN survey also provides evidence on the nutritional quality of food and the extent of food deprivation. A majority report that the quality of their food intake is better than what it was 10 years ago and better than what their parents ate. The same is true of the intake of nutritional ingredients such as milk for children, and pulses and cereals. Many scholarly studies have pointed to the decline or stagnation in the consumption of pulses and cereals, but this is not reflected in the perceptions of the people. But there is an underclass comprising the bottom one-fifth that reports a decline in the quality of food consumption.

Most of the spices used in Indian food have been used for their medicinal properties in addition to the flavour and taste they impart. Ginger is believed to have originated in India and was introduced to China over 3000 years ago. In India, a knob of fresh ginger added to tea is believed to relieve sore throats and head colds, not to mention its aphrodisiacal properties! Turmeric is splendid against skin diseases and neem leaves are used to guard against small pox.

Reference: http://www.food-india.com/indianCuisine/1001_1050/1003_food_tour_india.htm


http://www.food-india.com/indianCuisine/1001_1050/1003_food_tour_india.htm


Reference: http://hindu.com/2006/08/14/stories/2006081403771200.htm

Hypothesis Conclusion: Since Indian restaurants & kitchen has very diversified menu with different local flavour but the quality & hygiene standard is not properly fitted to cultural variation. McDonald’s MFY(made for you) is an unique concept(cooking method) where the food is prepared as the customer places its order, has made a very significant role to place burger between spicy Indian Cuisine.


http://hindu.com/2006/08/14/stories/2006081403771200.htm


Hypothesis: 2. how local adaption contribute to business Growth in India & challenges

Supportive Arguments: In India Fast food chains face a tough time balancing between margin pressures & hiking prices which can hurt business volume. Consequently, the chain has to increase rates or rework their strategies. Indian consumers are driven by price which is very important factor for restaurant to decide their strategy. Affordability is one of the key factors of McDonald’s for Price drive market in India. Since McDonald’s brought very long menu with affordable price variation for Indian consumers like Spice Delight, Extra Value meal, Happy Price menu, breakfast menu, core menu, Happy menu, beverage, Desserts which fits for Indian consumer taste. Approximately 75% of the menu available in McDonald’s in India is Indian zed & specifically designed to woo Indian customers.

Food Items McD Subway KFC Pizzahut Domino’sBurgers & Pizza

Rs 20-Rs70 Rs 65-Rs135 Rs25-Rs175 Rs55-Rs175(regular)

Rs135-Rs150(regular)

Combo Meals Rs49-Rs119 Rs45-Rs175 Rs 55-Rs150 Rs120-Rs250 Rs120-Rs 130Beverages Rs25-Rs70

small(300ml)Rs35-Rs85 small(300ml)

Rs30-Rs60 small(300ml)

Rs 40 (600ml)

Desserts Rs 12-Rs25 Rs20-Rs50 Rs 15-Rs65 Rs 40-Rs 60 Rs 25(100ml of baskin)

Challenge: One of the company’s major concerns was to develop ways to avoid political confrontation with the Indian government. The other major concern was to be careful of the religious sensitive in India. Almost 80% of Indians do not eat beef, and over 150 million Indian Muslims do not eat pork, therefore, instead of supplying the normal Big Mac, which consists of beef, the company developed the Maharaja Mac that is made of two lamb patties. Other foods were also



added to the non-standardized menu including McAloo Tiki Burger, and other common Indian dishes Hypothesis Conclusion: Component like price & product strategy are driven factor for local adaption.

Hypothesis: 3 what is McDonald’s doing right in India:

Supportive Arguments & Hypothesis Conclusion: McDonald’s relative success in India has several important lessons for global MNC. They are interested in exploring the challenge & opportunities in emerging markets. Given the unique cultural space in India, where most people do not eat beef & pork, where most people prefer vegetarian foods and where people’s food habits are dominated by regional food preferences. Consideration of these factors they changed the menu geographically & used local supplier & distributor for their raw product. This was one of the great business models to tap the local suppliers, consumers & distributors.

Hypothesis: 4: How success strategy woks correctly:

Supportive Arguments: Since the start of the company in 1973, McDonald’s Corporation began spreading domestically throughout the United States thus establishing its brand recognition. Its initial strategy began by advertising directly to the middle and upper class citizens, as can be seen in countries such as India and China. However, with its many bargain deals on several of its food items, McDonald’s began to cater to several people belonging to the lower class.

China was McDonald’s first global country in which it researched heavily before opening up restaurants. In fact, through globalization and internationalization, McDonalds was able to develop marketing strategies, while at the same time customizing them for different regions in accordance to the cultural and national variations in order to serve specific target markets. The company conducts heavy research in regions where it desires to open locations based upon a few elements, including social, cultural, technological, political, and economic situations. McDonald’s key to success is its business mantra of “think global, act local” (Vignali, 2001). This has allowed the company to achieve financial success in every region it opens its fast food restaurants.

Supportive Arguments: Tastes and preferences vary across the globe; therefore, the company thoroughly analyzes the preferred tastes, especially to not offend local cultures. For example, India is a nation where beef is highly unpopular due to religious purposes; therefore, the company had to come up with burgers that were not made with beef, but rather with chicken or lamb. Furthermore, the company had to create flavors that were spicy in order to meet the general taste preferences. In order to further emphasize the globalization element incorporated by the company, the success strategies include:

List of Information required to be collated:

1. Distribution of product & range2. Consumer behavior for the product3. Product volume & their competitor4. Customer segmentation5. Product acceptance

The Instrument of data collection:1. Questionnaire method2. Through Internet(mail questionnaire)3. Social networking sites



McDonald’s Questionnaire:Name: _________________________Sex: ____ Age____

Have you ever been to the fast food joint McDonald’s?

1. Yes,2. NoIf your answer to the above question is

No, then do you plan to visit the joint in near future?

1. Yes,2. No.

Thank you for your valuable time.

If yes, then kindly continue to answer the following questions:

Q1. How would you rate the service at McDonald’s?

1. Bad2. Average3. Good4. BrilliantQ2. What do you think of the product prices?

1. Consumer Friendly (light on the pocket)2. Average3. Highly Expensive

Q3.How often do you eat at McDonalds?

1. Once a year

2. Once a month

3. Once a week

4. Everyday

Q4) Would you say that McDonalds is healthy?



1. Yes2. No3. Not sure

Q5) in a month, how much would you roughly spend there?

1. Less than Rs 20002. Rs 2000 to Rs 4000

Q6) what time of the day do you prefer to eat there? 1. Breakfast2. Lunch3. Dinner4. Snack

Q7) which is your favourite dish at McDonalds?

1. McChicken Burger2. French Fries3. Big Mac Burger4. Others

Q8) why do you eat at McDonalds?

1. tastes good 2. Cheap 3. Convenient 4. I don't eat at McDonalds

Q9) what is the main problem you faced at McDonald’s?

1. Long queues2. Wrong order3. Bad music4. Other problems5. No problems

Q10) which area do you think needs the most improvements?

1. No suggestions2. Better music3. More space4. Home delivery5. More variety6. Low prices

Q11) what are unique selling propositions of McDonald’s?



1. Food2. Hygiene3. Ambience4. Quick service5. Location 6. Others

Sampling plan and sample size:

Sampling plan: collection of data from different McDonald’s outlets situated in Kolkata using questionnaire method, direct interview methods and by using mail questionnaire method etc.

Sample size: have a plan of collecting more or less 200 sample data from different sources in Kolkata.

Justification: Since the large volume of data we have pool of information to analyse the data & can reach on conclusion based upon our objective.

Method of data Analysis to be used:

1) Collection of primary and secondary data.

2) Before analysis can be performed, raw data must be transformed into right format. It must be edited so that errors can be corrected or omitted.

3) We will formulate null hypotheses and an alternative hypothesis.

4) Choose the appropriate test.

5) Choose a level of significance (alpha)-determine a critical region.

6) Calculate a test statistic value based on the sample data collected or calculate p-value.

7) Compare the value of the test statistic to the rejection threshold or compare p-value with the level of significance.

8) Based on the comparison, reject or do not reject the null hypothesis.

9) Make the market research conclusion.

Analytical tools to be used: Ms Excel, SAS, and SPSS etc.

Bibliography:

http://www.mcdonaldsindia.com/

http://www.google.com/

http://en.wikipedia.org/wiki/Main_Page


http://en.wikipedia.org/wiki/Main_Page

http://www.google.com/

http://www.mcdonaldsindia.com/




THANK YOU


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Mc donalds part 2