Two brothers, Richard (Dick) and Maurice McDonald (Mac), started their journey down the business lane in the fateful year of 1937. McDonald’s opened an outlet in Canada in 1967, to mark its first international venture
With a spread across 119 countries and with more than 31,000 restaurants, McDonald’s had managed to resolve one of the age-old dilemmas of marketing, the tension between implementing global standards or adapting to local tastes and preferences. Serving Arabian flat bread in Kuwait city or a McLaks for the fish loving people of Norway or a Rice burger in Hong Kong, McDonald's had proved that it was ready for a little give and take on its original goal to ‘hamburgerise’ the world. Even in India, it was recognized for localizing its offerings and for its marketing. Experts felt that the company had been experimental and innovative in its marketing strategies and that this had given the brand an enormous mass appeal and recognition in the country. With a consumer pool of about one billion, India stood out in the globally competitive market. The first and foremost task for McDonald’s India was to change the perception of the Indians.
"Whatever a guy anywhere in the world wants, a guy in India wants that as well… The consumer is beginning to recognize that quick-service restaurants mean quality and value for money."1
- Amit Jatia, vice-chairman of McDonald’s India – south and west, in 2011
In April 2011, McDonald’s Corporation (McDonald’s) launched a new marketing campaign in India with TV commercials, print, in-store promotions, and a viral campaign. The campaign was to support the launch of the McSpicy products -- its new range -- in India. Vikram Bakshi, Managing Director, (North & East) McDonald’s India, said, “The McSpicy menu is a part of our ongoing endeavor to add variety and expand our menu to suit our customers’ preferences. These are products from our core global menu, but tailored to the Indian palate.2” McDonald’s, which had 212 outlets in India in early 2011, was preparing to increase its presence further in the country3. Analysts felt that since its entry into the country in 1996, McDonald’s had established itself as a leading player in the fast emerging fast food market in India.
McDonald’s entered India in the year 1996 when the fast food retail market in India was at a nascent stage. Encountered with several challenges in the beginning in terms of adapting to the tastes, preferences and culture of the local customers, changing the perception of Indian consumers towards American food habits, obstruction from political parties, issues with distribution, designing a proper supply chain to training the employees on McDonald’s standards, the fast food giant emerged to be the market leader by 2011. Though McDonald’s commands the leadership position in the Indian fast food market their exists stiff competition from the local traditional fast food retailers as well as other multinational firms which entered the fast growing.
Question:
1- Discuss various issues and challenges in international marketing (Adoption vs. Standardization)?
2- Explore ways in which McDonald’s maintain its leadership position in the Indian market?
