McDonald’s penetrated the Indian market in 1996, six years after American fast food businesses were allowed to enter. During those six years McDonald’s developed penetration ideas and considerations; those including employed research methods, repositioned their brand and products, focusing on the four (4) P’s of business; Product, Promotion, Place and Price. Ethical and social issues had to be taken into consideration, and McDonald’s had to identify and challenges or problems that will occur and continue to develop. McDonald’s managed to develop a well known company, looking global and acting local. Becoming a value driven brand, with affordable prices, quality products, and creating a strong business model whist being able to progress with
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McDonald 's did not enter the Indian market until 1996. Instead, they spent around six years in planning, extensively researching Indian consumers’ tastes, product development, and supply chain arrangement before opening their first outlet in 1996. McDonald’s localization strategy manifested in the critical areas of management, deciding to set up two joint ventures on a 50:50 basis with two local entrepreneurs in Mumbai and Delhi. In Mumbai, McDonald’s was managed by Amit Jatia, operating under the western region. Delhi McDonald’s was chosen to be managed by Vikram Bakshi operating the northern region McDonald’s (Dash, K., …show more content…
In this way a company creates loyal customers. McDonald 's exceeded in this aspect of marketing, as McDonald’s understood that not everyone would want what McDonald’s had to offer. McDonald’s identified its key audience, ensuring a marketing mix was created that appealed specifically to these people. Accurate research was essential when creating the correct marketing mix which helped to win customer loyalty and increase sales. As the economy and social attitudes are continually changing, as well as buying patterns, McDonald’s needed to identify whether the number of targeted customers was growing or shrinking and whether their buying habits will change in the future (McDonald’s Corporation, 2008). McDonald’s market mix research consisted of everything that affects buying decisions. These buying decisions can often be affected by factors wider than just the product itself, but ‘psychological’ factors. The image of the company and the image the particular product conveys, affects customers purchasing notions. For expensive products there is an expectation of high quality food, and for cheaper products people may view the product as bad quality. Through marketing, McDonald’s established a prominent position in the minds of customers. McDonald’s needed to determine the type of products and services offered, prices charged, promotions created and where
McDonald 's did not enter the Indian market until 1996. Instead, they spent around six years in planning, extensively researching Indian consumers’ tastes, product development, and supply chain arrangement before opening their first outlet in 1996. McDonald’s localization strategy manifested in the critical areas of management, deciding to set up two joint ventures on a 50:50 basis with two local entrepreneurs in Mumbai and Delhi. In Mumbai, McDonald’s was managed by Amit Jatia, operating under the western region. Delhi McDonald’s was chosen to be managed by Vikram Bakshi operating the northern region McDonald’s (Dash, K., …show more content…
In this way a company creates loyal customers. McDonald 's exceeded in this aspect of marketing, as McDonald’s understood that not everyone would want what McDonald’s had to offer. McDonald’s identified its key audience, ensuring a marketing mix was created that appealed specifically to these people. Accurate research was essential when creating the correct marketing mix which helped to win customer loyalty and increase sales. As the economy and social attitudes are continually changing, as well as buying patterns, McDonald’s needed to identify whether the number of targeted customers was growing or shrinking and whether their buying habits will change in the future (McDonald’s Corporation, 2008). McDonald’s market mix research consisted of everything that affects buying decisions. These buying decisions can often be affected by factors wider than just the product itself, but ‘psychological’ factors. The image of the company and the image the particular product conveys, affects customers purchasing notions. For expensive products there is an expectation of high quality food, and for cheaper products people may view the product as bad quality. Through marketing, McDonald’s established a prominent position in the minds of customers. McDonald’s needed to determine the type of products and services offered, prices charged, promotions created and where