McDonald's in India | Services Marketing Case Studies

Details

Case Code : CLSM017
Publication date : 2005
Subject : Services Marketing
Industry : Food and beverages
Length : 03 Pages
Price : Rs. 100

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Key words:

McDonald's, Informal Eating Out (IEO) survey, branded food chains, ACNielsen, pricing, supply chain infrastructure, Vista Processed Foods Pvt. Ltd, OSI Industries Inc., Dynamix Diary, Amrit Food, Radhakrishna Foodland, cold storage facilities, service standards, crew development program, restaurant management program, mid-management program, and executive development program

Note

1: This caselet is intended for use only in class discussions.
2: More comprehensive case studies are priced at Rs.200 to Rs.700 (US $5 to US $16) per copy.

Abstract:

McDonald's is a leading international fast food restaurant chain with 30,000 restaurants spread across the globe. As per ACNielsen's Informal Eating Out (IEO) survey of branded food chains in India, McDonald's was found to be the leader in fast food chains. The caselet discusses the product strategy, pricing policy, and supply chain management practices of McDonald's in India. The caselet focuses on McDonald's emphasis on training and development of its employees. Finally, it describes the physical environment at McDonald's outlets and the promotional strategy followed by the company.

Issues:

  » Training and development of employees in service industry.
  » Factors influencing pricing decisions in food retailing industry.
  » Importance of physical evidence in food retailing business.

Introduction

McDonald's is a leading international fast food restaurant chain with 30,000 restaurants spread across the globe. In India, it launched its operations in 1996, with two stores. It now has 54 restaurants with a daily inflow of 500,000 customers.

It plans to add 15 more outlets by the end of 2004. As per the Informal Eating Out (IEO) survey involving the survey of branded food chains in India, conducted by ACNielsen, McDonald's was found to be the leader in fast food chains. Many factors can be attributed to the success of McDonalds Indian operations...

Questions for Discussion:

1. The services marketing mix consists of three additional elements like people, process, and physical evidence apart from the traditional marketing mix elements such as product, price, promotion, and place. How McDonald was able to utilize these additional three elements to market its services?

2. The proliferation of western fast-food chains such as McDonald's, Pizza Hut, Subway, and Dominos in the Indian market has only been a recent phenomenon. What are the reasons that have contributed to the increased popularity of western fast food chains in India?