Case Study Abstract
This case study discusses how McDonald’s India managed to buck the trend in a struggling economy, its early years and business strategy to get more out of its stores in India. The case also briefly discusses how McDonald’s adapted to local culture in India, its localization and entry strategy, its strong supply chain and pricing strategy.
Case Questions for Discussion
1.McDonalds has become the poster brand for recession-resilient business. What is McDonald’s doing right in India? What elements of its business strategy are working for it and how does it manage to get more out of its stores? 2.Does local adaptation contribute to business growth in a country? Explain McDonald’s efforts to adapt to the local culture in India. What challenges did McDonald’s face in India? 3.Have you ever visited a McDonald’s store? Compare and contrast your experience with another quick-service restaurant or fast-food joint you visited earlier. How can McDonald’s improve? Should it alter its strategy?
Marketing at McDonald’s
McDonald’s is one of the best known brands worldwide. This case study shows how McDonald’s aims to continually build
its brand by listening to its customers. It also identifies the various stages in the marketing process.
Branding develops a personality for an organisation, product or service. The brand image represents how consumers
view the organisation.
Branding only works when an organisation behaves
and presents itself in a consistent way. Marketing
communication methods, such as advertising and
promotions, are used to create the colours, designs and
images which give the brand its recognisable face. At
McDonald’s this is represented by its familiar logo – the Golden Arches.
In all its markets, McDonald’s faces competition from other businesses.
Additionally, economic, legal and technological changes,
social factors, the retail environment and many other
elements affect McDonald’s success in the market.
Marketing involves identifying customer needs and
requirements and meeting these needs in a better way
than competitors. In this way a company creates loyal
The starting point is to find out who potential customers are – not everyone will want what McDonald’s has to offer. The people McDonald’s identifies as likely customers are known as key audiences.
The marketing mix and market research
Having identified its key audiences, a company has to ensure a marketing mix is created that appeals specifically to those people. The marketing mix is a term used to describe the four main marketing tools – the 4Ps.
By analysing detailed information about their customers,
as derived from ongoing market research, the McDonald’s
Marketing department can ascertain information key to
determining the correct marketing mix.
1) Which products are well received
2) What prices consumers are willing to pay
3) What TV programmes, newspapers and advertising
consumers read and view
4) Which restaurants are visited
Accurate research is essential in creating the right marketing mix which will help to win customer loyalty and increase sales.
As the economy and social attitudes change, so do buying
patterns. McDonald’s needs to identify whether the number
of target customers is growing or shrinking and whether their buying habits will change in the future.
Market research considers everything that affects buying
decisions. These buying decisions can often be affected
by factors wider than just the product itself. Psychological factors are important, e.g. the image a particular product
conveys or how the consumer feels when purchasing it.
These psychological factors are of significant importance to the customer. They can be even more important than the
products’ physical benefits.
Through marketing, McDonald’s establishes a prominent
position in the minds of customers. This is known as
Meeting the needs of...