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Fast Food Fables
By:-Kriti Singhal
Lavanya Arora
Manish Bizla
Anurag
Naman VijPratap
Ayush
Rachna Sharma
Manoj
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Introduction
The case discusses the localization strategies adopted bythe multinational fast food chains- McDonalds,Dominoes' and KFC in India.
In the mid 1990s a spate of global fast food chains
entered hoping to capture a part of Indian fast foodsegment but they found it difficult to establishthemselves.
Soon they customized their menu, positioned their
product and advertised to appeal to Indian customers. McDonalds and Dominoes succeeded to certain extent
but KFC has a long way to go.
Thus, they have to understand the requirements of the
local market and change their strategies accordingly.
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WHILE MCDONALDS WAS ESTABLISHING ITSELF DOMINOS FACED TOUGHCOMPETITION IN INDIA
OTHER HOMEGROWN PLAYER-NIRULAS, PIZZA CORNER, PIZZA HUT ANDWIMPYS
DOMINOS DILEMMA OF HOW TO POSITION ITSELF - SNACK OR MEAL?
KFC ALSO FACED MASSIVE PROTEST AND ALSO THEIR IMPRESSION OFHAVING ONLY ONE ITEM ON THE MENU ALSO DIDNT APPEAL TO THEINDIAN CONSUMERS.
MCDONALDS BEGAN TO LOOK AT THE INDIAN MARKET IN 1990. JOINTVENTURES WERE MADE BETWEEN MCDONALDS AND HARDCASTLE
RESTRAUNTS PVT. AROUND 1995.
DOMINOS SET UP BASE IN 1996 BY A FRANCHISE AGREEMENT.
KFC ALSO CHOSE TO SET UP OUTLETS IN DELHI IN 1995.
THE 1990S SAW THE COMING OF MANY FAST FOOD COMPANIES TO INDIA MCDONALDS, DOMINOS AND KFC.
Joining the Fray And theIndian Coming
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Mc Donalds approach for
Indian Market
To get accepted locally & nationally
- Vegetarian Menu
- Replacing beef and pork with chicken
- Segregating veg and non-veg section
Menu Vision
- Partially localized & partially western
- Indianised names- Desi flavour like tamarind touch
- Eggless mayonise
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Mc Donalds approach for
Indian Market
Positioning as a family restaurants and awarenessthrough various campaigns
Children were targeted with several offers
Advertising strategy based on creating awareness
about all its menu spread Special promos during festivals
In April 2000, Rs. 100 million campaign for satellitechannel advertisements with 3 Tier Marketing
Strategy
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DOMINOS Dominos made efforts to give its products a local
flavor. It offered special products in different regions.
It introduced dessert after the main meal.
In August 2000, Dominos launched a TV campaignwith a catch line Hungry, Kya and showed severaladvertisements in this series.
Along with this campaign company made a tie-upwith MTNL for the Hunger Helpline.
With this Helpline Dominos offered its customersfree home delivery with a promise to deliver pizzawithin 30 minutes.
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Difference in positions ofDominos and Mcdonalds Mcdonalds positioned itself mainly to the children
whereas dominos was for all
Mcdonalds claimed to be a family restaurant
whereas Dominos was more focused at homedelivery
Price
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INITIALLY AT KFC
Preferred to retain its international taste
Offered only individual meal
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LATER
Localized its menu Offered vegetables and chicken burgers
Launched wrap category snacks Tortilla rolls
Slaw cole salads - Green fresh salads
Introduction of Zinger burger
Navratri festival Offered vegetarian products(Paneer burger)
Meals offered:
Non vegetarian: 6 individual meals + 2 combomeals(2 people) + 1 family meal
Vegetarian : 3 combo meals + Meals for couple andfamilies
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Improving Prospects
Future Plans Of McDonaldsIn 2000,McDonalds thought of increasing the no. ofrestaurants with in 3 yrs.
It entered into an agreement with Bharat petroleum
Corporation to launch highway restaurants(Delhi-Agrahighway)
.It also planned to make its foray into south IndianMarket with outlet schedule to open in Bangalore by mid-
2001.Tapping Office goers
It intend to launch a special Dial M/fax M facility foroffice going customers.
McDonalds Indian operations were still making losses.
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Future Prospect of Dominos
Dominos entered in agreement with Indian oilCorporation to set outlets at its transport fuel retailoutlets.
By Feb 2001,It established 101 outlets across 40
cities & cornered more than 70% share in IndianPizza market.
It planned to add 100-odd outlets.
It planned to extend its operations in
SriLanka,Bangladesh & Nepal.
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POSITIONING
Moto Attract families who lookednot for food, but recreation
For kids
Kids fun corner Ball pool
Chicky express
Kids meal @ Rs 60 + free gift
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MOUNTING LOSSES
KFC has indianized its menu to a greatextent.
Faced with huge losses, it closed all its
outlets except the one in Bangalore. This was not the case with KFC alone, all
the MNC fast food majors still had to breakeven their operations in India due to
mounting losses and increasing operationalexpenses.
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