Alexandria Mesa Luis Ruiz Allen Ganaden Global Marketing Today McDonald’s How to Enter the Market McDonald’s in India Global Marketing Program: ◦ ◦ ◦ ◦ Place Product Price Promotion India Commercial What we learned Faster communication, transportation, and financial flows available. Over the past 3 decades the number of multinational corporations have grown from 30,000 to more than 63,000. 69 of the world’s top 150 “economies” are multinational corporations. Few industries are now safe from foreign competition. A Global Firm raises capital, obtains materials and components, and manufactures and markets its goods wherever it can do the best job. ◦ More than 34,000 restaurants in 119 countries. Countries.jpg 3 Choices: ◦ Exporting Indirect Direct ◦ Joint Venturing Licensing Contract Manufacturing Management Contracting Joint Ownership ◦ Direct Investment The further down the strategy the more commitment and risk involved but also the more control and potential profits available. McDonald's works through joint ventures. 80 percent are franchised It has two Indian entrepreneurs: ◦ Amit Jatia: Vice President of Hardcastle Restaurants Awarded a Development Licensee status by McDonald's Leads operations in West & South India ◦ Vikram Bakshi: Connaught Plaza Restaurants Has joint venture with McDonald’s. Manages operations in North & East India • • Currently over 300 restaurants in India Distribution Channels ◦ Cold Chain Convenience: McDelivery Kiosks Drive Thru Extended Hours Product Adaption vs. Product Invention 30% original 70% local menu. Non-beef and Non-pork products Sauces Local spices & chilies Fries are made from locally sourced potatoes Chicken Maharaja Mac ChickenMaharajaMac.jpg Big Mac BigMac.jpg MenuIndia.jpg Price Setting Foreign prices lower than domestic prices Charge what consumers would bear India ◦ 115 rs ($2.13) U.S. ◦ $5.29 Mchicken.jpg U.S. Commercials are more serious Ads tailored to more specific target markets India Commercials are family oriented and humorous Target: ◦ Children ◦ Teenagers ◦ Price-sensitive middleclass individuals “I’m lovin’ it” – Single Global Message for All Markets http://youtu.be/ErnTTK7zOeU McDonalds Official Global Website. (2013). Retrieved from: http://www.aboutmcdonalds.com/mcd.html McDonalds. (2013). Value Menu. Retrieved from: http://www.mcdonalds.com.mt/mcdonalds/content.aspx?id= 44883 McDonald’s India. (2013). Retrieved from McDonald’s India Website: http://www.mcdonaldsindia.com/ Dash, K., (2005). McDonald’s in India. Thunderbird: The Garvin School of International Management. Retrieved from: http://www.csumba.org/mba602/McDonald's%20in%20India. pdf