Mcdonalds in Rural Areas India

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A
Project Report
On

Changing Consumers' Preferences: A Study Of The Effect Of The Fast Food Chain "McDonald’s" On Local City Fast Food Joints

Under the guidance of:
Dr. Naval Bajpayee

Submitted By (Group 12):
Isha Mahajan (2005IPG26)
Shwetak Lade (2005IPG30)
Manyata Goyal (2005IPG35)
Shilp Gupta (2005IPG59)
Tarun Motwani (2005IPG69)


Table of Contents

1Introduction
2Literature Review
3Theoretical Model
4Hypotheses
5Data Collection
6Data Preparation and Analysis
7Conclusion
8Appendix A: Questionnaire
9Appendix B: Question by Question Analysis
10Appendix C: Graphs of Data Analysis
11References

Introduction
The basic idea of this project came from the recent opening of the first McDonald’s Family Restaurant in the Gwalior City. The arrival was received with much enthusiasm from the whole city. As a result, McDonald’s has rapidly attracted a large following in Gwalior.

It shows many implications on the changing consumer preferences due to the entry of a major fast food giant into the fast food market of the city. Several questions arise: •How much does this affect the revenues of local fast food joints in the city? •How much does it affect the customer retention ability of local fast food joints? Studying customer migration would help us understand the extent and reason of the success of McDonald’s. Also it would help give answers to the following major questions:

Should the local fast food joints taking any steps to attract customers they lost? •What steps will be more helpful in the fulfillment of their objective?

According to Malhotra’s Marketing Research (2007, fifth edition), marketing is becoming increasingly important for competing for consumers in the fast food market. McDonald’s concluded their 3 year revitalization effort, i.e. a $500 million “I’m lovin’ it” campaign in 2006. Research has shown that this campaign has achieved remarkable levels of consumer awareness. Advertising Age magazine recognized McDonald’s as the 2004 Marketer of the Year.

According to Gumbel (2008), as McDonald's has been discovering, running a successful global company requires some pretty significant changes in corporate behavior. Going "glo-cal," as management consultants like to call it, requires striking a balance between managing a brand on a consistent worldwide basis and appealing to differing consumer tastes in dozens of markets. McDonald's restaurants around the world cater to local tastes. ITEMCOUNTRYDESCRIPTION

Rice BurgerTaiwanShredded beef between two rice patties
McKroketNetherlandsDeep-fried patty of beef ragout
Maharaja MacIndiaTwo chicken patties, smoke-flavored mayo
Croque McDoFranceHam and melted Swiss cheese on toast
Bulgogi BurgerSouth KoreaPork patty marinated in soy-based sauce

Table 1: Beyond "Royale With Cheese”

As per the examples quoted above, regarding McDonald’s adaptation to the various countries, adapting itself to the taste of the local consumers is an important factor in the sustainability and growth on the chain outlets in the market. Again, according to Malhotra’s Marketing Research (2007, fifth edition), McDonald’s dominates the kids’ meal market with its ‘Happy Meal’. Special focus on publicity and effective use of media helps chains create a brand image in the minds of the consumers. The mascot, the jingle and the slogan ‘I’m lovin’ it’ is known to consumers’ even if they are not acquainted with the place. Even before an outlet opens in the city, awareness in the form of hype is created among the consumers in that city through local channels and other ways like advertisements on billboards, television, newspaper etc. According to York (2008), there's nothing new about midday cravings or late-night binging, but the degree to which fast feeders and casual-dining chains are trying to lure consumers 24/7 has reached belly-busting proportions. THE PITCH: Stop by for a quick snack or augment...
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