Marketing Mix and Pestle Analysis of Mcdonalds in India

Topics: Food quality, Food, Hamburger Pages: 10 (3083 words) Published: November 25, 2010
Mc Donald

Mc Donald Corporation based in New York is the biggest chain of fast food restaurants world wide. With over 70 years of industry experience the logo of the outlets perform well in these global destinations by providing burgers, chicken products, French fries, break fast, salads, shakes, soft drinks and desserts.  

McDonald India - a subsidiary of McDonald USA, is a joint venture company namely Co naught Plaza restaurants and Hard castle restaurants. Mc Donald’s have 50% equity share in both Joint Ventures. The former takes care of the Northern Markets and the latter looks after the western operations in India.  

The taste of the Chicken burger that one from Bangalore will be similar to that in Delhi if the point of purchase is Mc Donald. Mc Donald has become an integral part of today’s Indian metros.  
Pestle analysis is the done to analyze the macro environmental factors of a company or Industry.  
 Political Factors
The operation of any international company would be influenced by the local regional policy and rules. Similarly Mc Donald’s India is influenced by the policies and regulations in this sector. The regulatory authority of the Hospitality industry in India monitors the operation of the Mc Donald chain and ensures that there is no deviation from the prescribed policy. It includes the non-usage of harmful chemicals, proper processing of the raw materials, ensuring the quality of the materials used etc. Mc Donald’s operate on their prescribed methodology so as to ensure that they stand in the line of safety in all aspects. It includes the daily operation, healthiness, labour force protection, environmental problems etc. Following these aspects strictly in necessary for continuing the license of the group. Mc Donald’s will have tax obligations as per the applicable procedure.  

Mc Donald’s need to closely monitor the changes in the rules and regulations in India, especially changes in the FDI policies. Considering the political interest, Mc Donald’s does not serve food based of pork or beef in India.  

Economic factors

The economic condition of the country influences the daily business of any food chain. It is influenced by inflation, exchange rate fluctuation, recession, etc. The economic situation of different region with in India varies from each other hence the factor should be given due importance while planning a Mc Donald outlet in the region. The urban population in India is more familiar to the international food chains and hence the profitability is more in this region. The buying power and the disposable income of the same urban crowd will be much more than the rural population.  

Exchange rate fluctuations of the Indian currency influence in the supply of raw materials across the border. This will in turn affect the profitability of the business. Inflation causes the raw material price hike, which in turn affects the production cost of the materials and thus disturbs the equilibrium of the outlet.  

Thus before penetrating to a particular market, the company must do a thorough research about the spending food habits, the economic condition, inflation analysis to ensure that the corporate objectives does not get affected over a period of time.  

Social factors

Different countries will have different culture with regard to food habits. Speaking from the religious point of view, Mc Donald’s does not serve any pork based products in the Indian market to protect the belief of the Muslim community and does not serve any beef based food to protect the belief of the Hindu community.  

The negative aspect about the population of India is that, they are not familiar with the fast food and junk foods. Hence the barrier to be crossed by Mc Donald’s in India is a Herculean task. At the same time they have a crowd of energetic youngsters who prefer to follow the western food habits. Mc Donald’s have received criticisms from various parts with regard to...
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