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Mcdonalds India Market Analysis

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Marketing Planning
PGPM 2012-14, Term I

Marketing Strategy Analysis – McDonald’s India
Submitted by- Group 5, Section C, PGPM 2012-14
12P133 12P145 12P146 12P147 12P149 12P150 Apoorva Abhay Dave Lucky Sharma Manav Gupta Manoj Kapoor Mayank Bathla Mayank Sharma

Marketing Planning
PGPM 2012-14, Term I

EXECUTIVE SUMMARY

Purpose of the study: This report analyses the marketing strategy and position of McDonald’s India. For this purpose, SWOT analysis, PEST analysis, Porter’s five forces analysis and consumer behaviour analysis of McDonald’s India was done. The report also contains suggestions and foresights for McDonald’s India for improvement in their marketing strategy. Background scenario: As per estimates there are approximately 500,000 restaurants in India in the organized sector. Sales by Indian food service companies totalled Rs 350 billion in 2002. The organized sector is responsible for approximately Rs 20 billion worth of sales. Indian consumers spend only 2.4% of their food expenditure in hotels and restaurants (including on premises and take-out sales). In particular, Merrill Lynch estimates a growth in urban consumption at potentially 20% per annum in nominal terms (16% in real terms) for at least the next few years. In addition, higher disposable incomes among consumers particularly in the top 25 cities and the trend towards eating out are combining with growth in organized retailing to fuel growth in the foodservice sector. McDonald’s was one of the early entrants in this market and currently has over 250 restaurants across the country. SWOT Analysis: McDonald’s major strengths are its first mover advantage and innovative and adaptive work model and focus on customers’ requirements. The main weakness of McDonald’s is its less variety of offerings which are not considered healthy. McDonald’s has a number of opportunities such as to widen its distribution network, introduction of healthier products and more variety of offerings. And the main threats...

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