McDonald's in India - building an
Here a Mac, there a Mac, everywhere ... A household name indeed.
Not just around the world, but here in India, as well. With
thirty outlets in just Mumbai and Delhi, and their India act
in place, they plan to open another 50 outlets across the
country by 2004.
Founded on a heritage of giving back to the
communities they live in, McDonald's unique strategy of right
pricing, local spicing and back-end investments have made
them a runaway success wherever they go.
it all began
McDonalds was founded in San Bernardino, California by two
brothers, Maurice and Richard McDonald, in 1948. Ray Kroc,
distributor of a 5-spindled Multimixer, had never seen so
many people served so quickly when he pulled up to take a
look. Seizing the day, he pitched the idea of opening up several
restaurants to the brothers Dick and Mac McDonald, convinced
that he could sell eight of his Multimixers to each and every
one. "Who could we get to open them for us?" Dick
McDonald said. "Well," Kroc answered, "what
about me?" And so, Ray Kroc opened the first McDonald's
restaurant in Des Plaines, Illinois, in 1955. First day's
revenues-$366.12! No longer a functioning restaurant, the
Des Plaines building is now a museum containing McDonald's
memorabilia and artifacts, including the Multimixer!
then McDonald's have gone places. McDonald's is the largest
and best-known global foodservice retailer with about 28,000
restaurants in 121 countries. A new McDonald's restaurant
opens every 13 hours. Yet on any day, even as the market leader,
McDonald's serves less than one percent of the world's population.
85% of the restaurants are independently owned and operated,
with company-run stores making up the other 15%. 25% of all
McDonald's stock is owned by employees, licensees, and suppliers.
McDonald's first outlet in Delhi opened in October 1996, was
an instant hit. Reason: their near religious commitment to
localisation of strategy in India. To cite an example, during
Navratras, when even normally non-vegetarian Hindus
turn veggie with a vengeance, McDonald's promptly launched
the Veg Surprise, a veg burger laced with Indian spices. Priced
at Rs17/-, the Veg Surprise was part of their 'Shudh Shakahari'
offerings in the two religious months.
Think global, act
McDonald's have strived to integrate into the Indian ethos
from day one without losing out on their international attributes
of fun, quality, consistency, value, convenience, quick service
and of being a 'family restaurant'.
Managing Director of McDonald's North India
operations, which is a 50:50 joint venture between McDonald's
International and Connaught Plaza Restaurants Pvt Ltd says
"We do not want to be seen as an MNC. If we are to
be successful, we have to have an acceptable face that attracts
a larger portion of the population".
Recipe for success
One of the first moves the company made was to have no beef
or pork items, respecting the country's religious sentiments
Their products : McAloo
tikki burger, chatpaty potato wedges, eggless mayonnaise laced
with Indian mint chutney!
Supply chain: 95% of raw materials
are locally sourced, allowing flexibility in pricing and new
Pricing: Aimed at luring the Indian
middle class. The Rs7/- ice-cream cone was started with zero
margins to pull in crowds.
The emphasis is on projecting McDonald's as a global brand
relevant to the local community.
Local partners in the two joint ventures are given
full freedom to take critical decisions independently.
Even McDonald's feisty Indian competitors,
Pizza Hut, Domino's and KFC, admire the Big M's 'glocal' strategies.
McDonald's vision is to be the world's best quick service
restaurant experience. Being the best means providing outstanding
quality, service, cleanliness and value, so that every customer
in every restaurant smiles.
Look out for those golden arches!
Source: Business Today