McDonald's in India: a glocal strategy

Résumé du document

India is an assimilation of several ethnic groups. Its geographic origin, language, religion, dress, food, habits differ from one state to another. There are 22 different languages that are recognized, and there are hundreds of dialects. Nonetheless, people have the same temperament all over the country. Indian food is spicy, colorful and changes from region to region. The blend of spices must be delicate and characterized in most of the meals. Sweets are very popular and are usually made with ingredients rich in fat like sugary ghee. Indians are loyal to regional players as they serve popular local cuisine. It is hard to match the appropriate mix of spices which will suit the Indian taste. Local brands benefit from legitimacy, like Haldiram's and its $250 million consumers. As samosas remain the best selling snack, McDonald's has adopted a strategy called "glocal? to spread its reach of products for the Indian consumer. We will learn more about the Indian consumer's food preferences and the changes that different brands have brought to their lifestyles.

Extraits

[...] Consumer Foodservices: $13 billion in 2006 to $33 billion in Further opportunities Middle-tier and smaller cities have a strong potential: by 2025: 2/3 of the total income of the country million Households with an annual income of over $23,000 live here Healthy concerns Healthy food and freshly baked products. One of the top ten obese nations according to a World Health Organization report. World Health Organization: 17% of the male percent of the female population obese. Children are at risk and some public voices advocate taking action before matters get worse. Competition 1. Two strong competitors in a concentrated market of the chained consumer food service According to the RMS, McDonald's face a strong competition with Indian Hotels Co Ltd. [...]

[...] Demographics Massive young population: Almost 1/3 is under 15 and 51% is under 25 The median age is 24,2 years More than 681 million of people under 29 (over 716 million by 2020) Young people much more adventurous (impact on eating out) Students away from home or adults before mariage: high level of discretionary spending, including eating out of their spending: hotels and catering (others: Couples with children contribute to more than 60% to overall spending in 2006: $2,743 in 2006 > others) By 2025: urban population of India will be Inflation Food prices have soared: impact on the purchasing power of poorer households in particular with almost in every spent on food But: government has increased subsidies on foods. Culture 1. A composition of cultures India is an assimilation of several ethnic groups. In accordance to the geographic origin, language, religion, dress, food, habits differ! 22 different languages are recognised, and there are hundreds of dialects. Nonetheless people have the same temperament A country of all religions 80% Hindu Muslim Christian Sikh Buddhist Jains. [...]

[...] Fees vary by type of site, amount of company investment and local business conditions. Advantages of franchising strategy Minimising the financial risk and exploiting local knowledge as they expand their reach into new areas. Franchising is a key operating strategy at McDonald's Cultural sensitivity McDonald's has adopted an essential strategy we can named GLOCAL: Think global, act local It consists in adapting the concept of Mc Donald's to different food cultures and local products. In fact, the company has invested in specialist coffees, ethnic foods, ethically-sourced foods and portable/snack products. [...]

[...] McDonald's in India: a glocal strategy Sommaire I. Mission & Vision 2 II. EXTERNAL ANALYSIS 3 POLITICAL / LEGAL 3 ECONOMICS 3 CULTURE 5 FOOD SPECIFICITIES 6 FAST FOOD MARKET 6 COMPETITION 7 III. INTERNAL ANALYSIS 8 HISTORY OF A SUCCESS 8 PRODUCTS & ACTIVITIES 9 RESTAURANT MANAGEMENT 10 CULTURAL SENSITIVITY 11 FINANCIAL ANALYSIS 11 IV. DIAGNOSTIC & KEY SUCCESS FACTORS 13 V. BIBLIOGRAPHY 14 I. Mission & Vision 1955 We take the burger business more seriously than anyone else Ray Kroc If you've got time to lean, you've got time to clean Ray Kroc II. [...]

[...] In some markets, it has also tailored its offer in international markets to local tastes. Financial analysis $23 billion in total revenues a record high + 57% vs 2002 Net income has increased 168% vs 2002) 2006: Pic of net income. After 2006, restaurant's openings are stopped. Shareholders have increased the capital of the company during 3 years from 2002 to 2005 From 2005, they are waiting for their return on investment. Increasing from 2002 to 2006 is due to the investments Profits are relatively stable but decrease in 2007 vs 2004/2005/2006. [...]