teresi_paillou_mc donalds_vegetariansandwich
DESCRIPTION
School project - Mc Donald Project in IndiaTRANSCRIPT
Marketing International Jean-Pierre Dolait ESPEME 4
A new McDonald’s
vegetarian sandwich in India
Paillou Anne & Teresi Laure
2Marketing International - JP DolaitESPEME Nice
AGENDA
I. McDonald’s Company
II. Objectives
III. Indian Market Research
IV. 4 P’s
V. Next Steps
VI. Summary
3Marketing International - JP DolaitESPEME Nice
AGENDA
I. McDonald’s Company
II. Objectives
III. Indian Market Research
IV. 4 P’s
V. Next Steps
VI. Summary
4Marketing International - JP DolaitESPEME Nice
MCDONALD’S COMPANY
1954 in America by Raymond Croc
Revolution for the American restaurant industry
Quality, Service, Cleanliness and Value
33 000 restaurants in 121 countries
I. Company II. Objectives III. Indian Market IV. 4 P’s V. Next Steps VI. Summary
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MCDONALD’S IN INDIA
1996: First McDonald’s in India
Indian becomes more health conscious
Today, 250 restaurants in 52 towns 2012: 40 new restaurants By 2014: it is plan to double the number of restaurants
10 000 employees in India
I. Company II. Objectives III. Indian Market IV. 4 P’s V. Next Steps VI. Summary
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SWOT ANALYSIS
I. Company II. Objectives III. Indian Market IV. 4 P’s V. Next Steps VI. Summary
STRENGHTS WEAKNESSES
OPPORTUNITIES THREATS
• High employee turnover rate• Market segment too focusing on kids• Often related to unhealthy food • Price competition
• People are most likely health conscious• Cope with the fast changing consumer needs• Capture different market segments• Penetrate in many countries
• McDonald have been sued for having "unhealthy" food Bad press• Major competitors• Exposed to change in global economyForeign currency fluctuation• Subway opened a new 100% vegetarian restaurant in Penjab
• Market leader in fast food industry• Strategic locations• The most well known house-hold brand• Strong and marketable product• Innovation• Adaptation of its products• Drive-in
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AGENDA
I. McDonald’s Company
II. Objectives
III. Indian Market Research
IV. 4 P’s
V. Next Steps
VI. Summary
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OBJECTIVES
Introduce a new product : vegetarian sandwich
Maintaining its international USP of QSCV
Achieving 100% customers satisfaction
Increase the number of Indian customers
Increase brand loyalty
I. Company II. Objectives III. Indian Market IV. 4 P’s V. Next Steps VI. Summary
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AGENDA
I. McDonald’s Company
II. Objectives
III. Indian Market Research
IV. 4 P’s
V. Next Steps
VI. Summary
10Marketing International - JP DolaitESPEME Nice
TARGETING MARKET
Age-groups 15-30
Vegetarian & Health conscious people
Urban people
Middle class
Exposure to western food and culture
I. Company II. Objectives III. Indian Market IV. 4 P’s V. Next Steps VI. Summary
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COMPETITORS
• Direct Competitors: big fast-food companies in India
KFC , Subway, Domino’s, Pizza Hut, Nirula’s
• Indirect Competitors: local snacks restaurants
Chicking, Bangs Fried Chicken, Smockin’ Joes
I. Company II. Objectives III. Indian Market IV. 4 P’s V. Next Steps VI. Summary
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Fourth largest economy in the world
Fast-Food industry represents 12 billion $
INDIAN MARKET ANALYSIS
I. Company II. Objectives III. Indian Market IV. 4 P’s V. Next Steps VI. Summary
The Quick Service Restaurants is the fastest growing segment
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INDIAN MARKET - POPULATION
Population: 1.22 billion
Annual growth rate: 1.6%
65 % of the population is under the age of 35
By 2030, the population in India should be bigger than in China
I. Company II. Objectives III. Indian Market IV. 4 P’s V. Next Steps VI. Summary
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INDIAN CULTURE VS FOOD• 40% of population is vegetarian
– In Gujarat (West): 80% population is vegetarian
• Religions: Hindu 80.5%, Muslim 13.4%, Christian 2.3%, Sikh 1.9% – 85% of Hindu are vegetarian
• «Vegetarian cities»: Pushkar, Haridwar, Rishikesh, Ayodhya, Palitana
« Godly/holy cities » sell and consume meat and the slaughterhouse are prohibited by law
Special label use in India
« I believe that spiritual progress requires stop killing other living beings for our physical needs » - Gandhi
I. Company II. Objectives III. Indian Market IV. 4 P’s V. Next Steps VI. Summary
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CHALLENGES IN ENTERING INDIAN MARKET
• From the fat food to a more healthy food
• Polycentric orientation
• 100% Product adaptation
I. Company II. Objectives III. Indian Market IV. 4 P’s V. Next Steps VI. Summary
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AGENDA
I. McDonald’s Company
II. Objectives
III. Indian Market Research
IV. 4 P’s
V. Next Steps
VI. Summary
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PRODUCT
A new sandwich adapted to the local demand :
j
100%Vegetarian
Adaptation
Prepared separately
High quality product
I. Company II. Objectives III. Indian Market IV. 4 P’s V. Next Steps VI. Summary
« Vegetarian Bic Mac »
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Composition: 100% vegetarian!
- Bread with Bun
- Tomato
- Lettuce
- Vegetarian pumpkin sauce based
with Indian Spicies
- Potato pancake
PRODUCT
I. Company II. Objectives III. Indian Market IV. 4 P’s V. Next Steps VI. Summary
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PRICE
111 र 2.04 $
60 र 1.10 $
59 र1.08 $
65 र1.19 $
I. Company II. Objectives III. Indian Market IV. 4 P’s V. Next Steps VI. Summary
44 र0.80 $
65 र1.19 $
Quality / Value : our sandwich’s prices in India
1 Indian rupee = 0.0186 US dollars / 1 US dollar = 53.8100 Indian rupees
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PRICE
Chicken Zinger
99 र1.82 $
Streetwise Vegsnacker
25 र0.46 $
Vegetarian Zinger
95 र1.74 $
Chicken Snacker
30 र0.55 $
I. Company II. Objectives III. Indian Market IV. 4 P’s V. Next Steps VI. Summary
Competitor’s prices:
1 Indian rupee = 0.0186 US dollars / 1 US dollar = 53.8100 Indian rupees
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Elements and costs factors Domestic Subsidiary
Cost 2.24 0.71Manufacturer Margin % 30.00 30.00Margin 0.96 0.30
Average Selling Price (ASP) 3.20 1.01
Insurrance + shipping 0.05Landed cost 1.06Import Tax (%) 10.00Duty 0.10Other Importer/subsidiary cost 0.10
Importer cost 1.26Importer Margin% 30.00Margin 0.13
Importer/subsidiary Price 1.39
Other retailer Cost 0.00 0.00Retailer Cost 3.20 1.39
Retailer Margin % 20.00 10.00Margin 0.80 0.14
Retailer Price without VAT 4.00 1.43VAT Rate % 0.00 4.00
Retailer Price with VAT 4.00 1.49Currency exchange rate 1.00 53.81
Consumer Price4$
1.49$= 80र
Consumer Price with VAT Ratios 1.00 0.37Consumer Price Ratios
INTERNATIONAL PRICING STRATEGY
Manufacturer
Importer or Subsidiary
Retailer or Distributor
End Consumer
PRICE
• We already have subsidiaries in India
• Depending to our others sandwiches’ price
& Depending to the KFC’s prices
Our final price in restaurants for this sandwich will be 80र *
I. Company II. Objectives III. Indian Market IV. 4 P’s V. Next Steps VI. Summary
*1 Indian rupee = 0.0186 US dollars 1 US dollar = 53.8100 Indian rupees
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PLACE
• 52 towns & cities across India
• 250 McDonald’s restaurants
North and East India33 in Delhi11 in Haryana7 in Punjab3 in Rajasthan1 in Uttaranchal1 in West Bengal1 in Himachal Pradesh
West and South India32 in Makazashtra7 in Gujarat7 in Karnataka4 in Andhra3 in Madhya Pradesh
I. Company II. Objectives III. Indian Market IV. 4 P’s V. Next Steps VI. Summary
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PLACE
• 2 centralised distribution centers
at Mumbai & Kochi
• QIP ( quality Inspection Program):
Quality checks at 20 points in the
supply chain movement
I. Company II. Objectives III. Indian Market IV. 4 P’s V. Next Steps VI. Summary
Manufacturer
Indian consumer
Retailer: McDonald’s Restaurants
B to B to C:
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PLACE
I. Company II. Objectives III. Indian Market IV. 4 P’s V. Next Steps VI. Summary
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Based on visibility
PROMOTION
« Why Indians could not have their famous Big Mac? »
• Extensive promotion strategy
• Think global, act local
Advertising
Sales promotion
Direct Marketing
I. Company II. Objectives III. Indian Market IV. 4 P’s V. Next Steps VI. Summary
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PROMOTION
Advertising• Campaign on TV
- Indian people between 15 and 30 year old eating the Vegetarian Big Mac- Show sandwich ingredients
• Posters outdoor in big cities
I. Company II. Objectives III. Indian Market IV. 4 P’s V. Next Steps VI. Summary
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PROMOTION
Sales promotion• Animations and tasting in point of salesContests/sweepstakes/games
• Special offers
I. Company II. Objectives III. Indian Market IV. 4 P’s V. Next Steps VI. Summary
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PROMOTION
Direct marketing
• E-newsletter
• Coupons to print
I. Company II. Objectives III. Indian Market IV. 4 P’s V. Next Steps VI. Summary
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AGENDA
I. McDonald’s Company
II. Objectives
III. Indian Market Research
IV. 4 P’s
V. Next Steps
VI. Summary
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NEXT STEPS
I. Company II. Objectives III. Indian Market IV. 4 P’s V. Next Steps VI. Summary
• Increase the vegetarian product line
• Develop a new 100% vegetarian range based on this sandwich– with different choices of sauces and spices
• Suggestion of new 100% vegetarian meal, with tea for example
• Increase market share in India of 10%
• Create few special McDonald’s vegetarian restaurants
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AGENDA
I. McDonald’s Company
II. Objectives
III. Indian market Research
IV. 4 P’s
V. Next Steps
VI. Summary
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SUMMARY
I. Company II. Objectives III. Indian Market IV. 4 P’s V. Next Steps VI. Summary
• McDonald has developed a competitive advantage of serving
quality fast food at low cost
• Local adaptation has contributed to McDonald Business
growth in India
33Marketing International Jean-Pierre Dolait ESPEME 4
Thank you for your attention!
Questions?
Paillou Anne & Teresi Laure