Acknowledgements Group 6: Akanksha Ganju – 2 Naushita Jaising – 16 Avinash Sharma – 33 Shivangi Kanodia – 38 Shruti Rastogi – 39 Aakash Dhurka – 60
We would like to thank Prof Christine Dlima for giving us this opportunity to go out into the field and do this project that will help us greatly in the future.
We are thankful for the help and Co-operation of a few people for their valuable time, immeasurable and substantial guidance and cooperation in the project work, especially, Mrs. Amrita Pai, the PR manager of McDonalds India and Mr. Nishit Pandey, the director of Alliances and Corporate Affairs.
Preface In this project, we have analyzed the growth of McDonalds in India since it’s inception and discussed how much of a role an efficient PR department played in its growth. We have covered the setting up of McDonalds India, how the PR department works and some of the main activities that they have carried out. We went out into the field and spoke to people from the organization and with their help and input have been able to compile this project. To conclude, we present to all those interested, the scope of PR in India in the future, with regard to this particular sector.
1. 2. 3. 4. 5.
About McDonalds India Importance of PR for McDonalds Organizational structure and Role of PR Internal PR External PR
a. Advertising b. Crisis Management for the Beef and Pork issue c. CSR 6. Scope of PR in the future
About Mc Donald’s Two brothers, Richard and Maurice McDonald in California, US in the year 1937, started McDonald’s as a drive-in restaurant. The business, which was generating $ 200,000 per annum in the 1940s, got a further boost with the emergence of a revolutionary new concept called 'self-service.' The brothers designed their kitchen for mass production. Prices were kept low. Speed, service and cleanliness became the critical success factors of the business. By mid-1950s, the restaurant's revenues reached $ 350,000. As word of their success spread, franchisees started showing interest. By the end of the 1960’s over 400 franchising outlets were established. The first Indian McDonald's outlet opened in Mumbai in 1996. Since then, outlets have begun trading in metropolitan and Tier II towns across the country. Amit Jatia, Managing Director, McDonald's India, said: "The past decade has witnessed a marked change in Indian consumption patterns, especially in terms of food. Households in middle, upper, and high-income categories now have higher disposable income per member and a propensity to spend more." McDonalds launched itself in the following manner: Phase I: Launching the brand The starting point for McDonald's India was to change Indian consumers' perceptions, which associated it with being 'foreign', 'American', 'not knowing what to expect' and 'discomfort with the new or different'. McDonald's wanted to position itself as 'Indian' and a promoter of 'family values and culture', as well as being 'comfortable and easy'. Simultaneously, the brand wanted to communicate that, operationally, it was committed to maintaining a quality service, cleanliness and offering value for money. Says Arvind Singhal, Head of Marketing at McDonald's India: "From a marketing communications standpoint, we chose to focus on familiarizing the customer with the
brand. The brand was built on establishing functional benefits as well as experiential marketing." Until 2000, McDonald's India did not have enough reach to use mass media such as television advertising. Instead, most of its marketing effort focused on outlet design, new store openings and PR about its attempts to tailor a menu to Indian tastes. Amit Jatia said: "Products like McAloo Tikki burger, Veg Pizza McPuff and Chicken McGrill burger were formulated and introduced using spices favored by Indians. The menu development team has been responsible for special sauces which use local spices. The Indianized products have been so well...
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