McDonald's - Winning Hearts in an Alien Territory*



Case Code : CLCB003
Publication date : 2005
Subject : Consumer Behavior
Industry : -
Length : 04 Pages
Price : Rs. 100

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Key words:

McDonald's India Private Ltd., Connaught Plaza Restaurants, HardCastle Restaurants, Happy Price Meals, McAloo Tikki, Fun place, Value for money, Dev Anand and Sanjeev Kumar.


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The caselet examines the strategies followed by McDonald's, the leading food retailing chain, in its Indian operations. In order to attract middle income consumers, McDonald's followed a penetrative pricing policy. The pricing policy attracted an increasing number of consumers to its outlets. The caselet explains how McDonald's pricing policy helped to drive volumes.


How food retailers use penetrative pricing to generate volumes
The need for segmenting the market in order to develop marketing strategies
The need to elicit consumer opinion as part of developing effective marketing strategies


In 2004, Businessworld selected McDonald's India Private Ltd (McDonald's), as the most respected company in the food service sector in India...

Questions for Discussion:

1. "McDonald's understood that it is only through the increasing acceptance by the growing Indian middle class, that it can be successful in India." What were the strategies that the company adopted to ensure that its target segment would increase its visits and purchases at its outlets?

2. "The campaign was followed by the "hamare zamane ke daam" campaign which used doubles of old-movie stars like Sanjeev Kumar, Dev Anand etc., to communicate that eating at McDonald's was affordable the way things used to be in old times." How campaigns did like "hamare zamane ke daam" help McDonald's to communicate its message to its target segment?