Mcdonald's Entry Strategy

803 Words4 Pages
McDonald’s is the world’s largest chain of hamburger fast food restaurants. As per the statistical data found in the ‘McDonald’s Annual Report 2011’, they operated 33,510 restaurants in 117 countries and served 68 million customers daily. Annual sales had touched $27 billion with net profit of $5.5 billion. McDonald’s entered Asia through Japan in the 1970s. By the year 1996, McDonald’s had already over 3600 outlets in Asia.

McDonald’s India Entry Strategy:

India being the world’s largest democracy, Asia’s third largest economy, has fairly stable governments, its armed forces are neutral, but the bureaucratic red tape is omnipresent. India has 20 major languages and over 1,800 dialects, with a 50% literacy level. Although the Indian economy
…show more content…
McDonald’s through their survey found a large eating out market in India with an increasing propensity to spend by customers. However, they understood that India 's want to taste American fast food could not substituted for Indian food. Hence, in order to survive in a rich cultural country like India, adapting McDonald’s menu to Indian tastes was quite critical. The India strategy was divided into the following phases- entry, building the supply chain, aggressive growth and penetration. In 1993 McDonald’s entered India through a 100% subsidiary MIPL (McDonald’s India Private Limited) which formed two 50:50 joint ventures (JV) with Vikram Bakshi of Connaught Plaza Restaurants to manage North and East India; and Amit Jatia of Hardcastle Restaurants for West and South…show more content…
A consumer 's behaviour is influenced heavily by cultural, social and personal factors. Understanding Consumer Behaviour is very important in the marketing industry as in order to make buying decision on day to day basis. In a booming economy, McDonald’s marketing team focuses strongly on understanding their consumer so as to make their business successful worldwide. In order to successfully survive in a country as diverse as India, McDonald’s had to come up with new products just to meet the needs of their target audience. Over the years, they have been excelling in understanding the various factors affecting their consumers, the psychological mind set each person has, and finally their buying decision
Open Document