Mcdonalds market entry in India--留学生Report代写范文

留学生Report代写范文:“Mcdonalds market entry in India”，这篇论文主要描述的是麦当劳获得了印度政府的准入许可，这样就意味着麦当劳将要进军印度市场，虽然印度市场会比麦当劳在其他国家的运营更为复杂，但是这也是麦当劳发展战略考量的一部分，从印度市场的内部与外部环境进行分析，还需要对一些在宗教文化上可能引发的冲突做好应对准备。

Along with the fast development of economy in India, entering this new market gained a high popularity for many fast food companies like McDonald’s, although Indian market is more complex than other countries in Asia. This report takes McDonald’s entry strategy in India as a case study to find out what should be focused on when enter into a new foreign market. Firstly, this reports points out that how McDonald’s make and implement market entry strategies based on the external and internal environment analysis. Then, it gives the evaluation of McDonald’s strategy and development in India in order to adapt to local phenomenon. At last, this report analyzes the problems and errors that still need to be deal with seriously for McDonald’s in India.

2. Main findings 主要调查结果

As it is shown in the case study, India has presented a challenge to McDonald’s which is the largest user of beef in the global area since its first entry in 1998. In order to avoid offending Hindu sentiments, McDonald’s has to make appropriate and comprehensive marketing entry strategy if it wants to keep a foothold in India. This part states some accurate decisions as well as some errors that McDonald’s made according to the case study.

2.1 The analysis of entry strategies for McDonald’s in India

India is a more complex country than other Asian countries and it determines that McDonald’s need to consider more when develop fast food business. According to the case study, McDonald’s made a great endeavor in order to develop its business in India by executing accurate entry strategies. What McDonald’s has done can be described and summarized as below:

McDonald’s made its menu “Indianised” to maximum extent such as spiced up and going vegetarian that it hears little compared with the menus of McDonald’s anywhere else. Due to Indians take their vegetarianism so seriously, McDonald’s mayonnaise is made without eggs, even the vegetarian items are cooked in various parts of the kitchen. According to the relevant statistics by the Food and Agriculture Organization, over 30 percent of the population in India eschews meat, which lead McDonald’s to go vegetarian and it opened its first vegetarian-only store near Golden Temple in 2013. In addition, the company plans to build another vegetarian store in Kashmir where attracts a large number of tourists every year.

Due to the change of the eating habits in recent years in India, more Indians tend to eat out and the need of different types of international cuisine is increasing. This tendency made McDonald’s recognize the future prospect for its development in fast food industry in India. As early as 2002, McDonald’s planned to expand its stores to 100 by 2005. It tend to build the stores on the major highway and tie up with the railway and airport. 

McDonald’s India was incorporated as a wholly owned subsidiary in 1993. In April 1995, the wholly owned subsidiary entered into two joint ventures, which are Connaught Plaza Restaurants to manage the Delhi Stores and Hard castle Restaurants to manage the Mumbai stores. This is the first venture for McDonald’s operation in India, and years later in 2011, McDonald’s sold its share of Hardcastle Restaurants joint venture to co-owner Amit Jatia and made it a master franchisee. At the same year, the franchisee established 30 stores cross the southern and western parts of the whole state (Chatterjee, 2011).

McDonald’s pricing strategy has also been shown in the case study. It positioned at a low level of the price in India which is much cheaper than in the western countries. The company aims to attract more loyal customers by the advantages of pricing strategy.

2.2 The evaluation of entry strategies for McDonald’s in India

According to Johnson (2011), when a company plans to enter into a new foreign market and make a further development, it is necessary to make an entry strategy based on local environment analysis by using appropriate analysis tools like PEST model which involves politic, economy, society and technology. In the case study, it indicates social aspect that influence the fast food chain of McDonald’s more.

Firstly, as for the social aspect, India has a caste system and the Hindu group believe cows are sacred while there exist a large number of Muslim who eschew pork. There are also high quantity of vegetarians. Based on this situation in India, the entry strategies of McDonald’s are very different from other areas. The items of the menu of McDonald’s are localized and they are going vegetarian, even it established vegetarian-only restaurants in India and the vegetarian items are cooked in various parts of the kitchen. In addition, along with the change of eating habits, more Indians tend to eat out and it gave a opportunity for the development of McDonald’s (Avertino, 2000). Thus, McDonald’s expand its stores cross the whole Indian area. All that McDonald’s done are accurate decisions based on the analysis of social situation. It combined the foreign cuisine with local eating habits which made local Indians accept McDonald’s more quickly. It reveals that the importance of “think global, act local” for companies.

Secondly, according to McDonald’s managing direct, McDonald’s plans to build the stores on the major highway and tie up with the railway and airport authorities. It is an accurate decision and someone pointed out that the subcontinent is probably a safer place due to the the appearance of McDonald’s. Based on previous findings, no two bordering countries which both own McDonald’s have ever gone to war. As the public known, the relationship between India and Pakistan is nervous and the establishment of McDonald’s may mitigate the situation.

Lastly, McDonald’s start with joint venture made it gain a large platform to promote and operate its products. By managing the business with other partners enabled McDonald’s to adapt to the social environment and adjust its products in order to avoid offending Hindu culture. Then along with the development in India, McDonald’s management transferred to franchising and this transformation avoid to involve McDonald’s in some suit cases if partners facing to the conflict of interest. 

2.3 The problems and errors in entry strategies of McDonald’s in India

Although McDonald’s localized menu attracted a large number of consumers, it still exist many problems and errors for its further development. The errors and problems are states as below:

Firstly, as early as 2002, McDonald’s planned to expand its stores to 100 by 2005 and it tend to build the stores on the major highway and tie up with the railway and airport. This is not a brilliant decision for McDonald’s. According to Deresky (2011), the speed of development in foreign market need to coordinate with the demand of consumers. On the one hand, although many Indians began to accept foreign cuisine, more Indians still prefer their traditional cuisine even regional cuisine. It means that Indians will not take McDonald’s food as their daily meals. Just like it is mentioned in the case study, during the two-hours break in the noon, the staff always open their food boxes and enjoy home-cooked lunch. On the other hand, although the price that McDonald’s provide in India is much lower than in the west, it is still only the better-off Indians who can afford to eat, which means that fast food like McDonald’s is never going to become a normal phenomenon in India. Therefore, McDonald’s expand its business in so fast speed is not an accurate and appropriate strategy.

Secondly, the items of menu that McDonald’s provide ignored regional cuisine and taste. According to Hill (2011), the development in target market need to satisfy different groups of consumers. Although more foreign cuisine rushed into India, the eating habits are still conservative and Indian are proud of their traditional cuisine and taste. This kind of culture makes it difficult for foreign food to break in. For example, Kellogg used to introduce Indians to start the day with Corn Flakes but it failed, because Indians still prefer traditional hot parathas and it is impossible also wrong to change the traditional eating habits of local population. On the contrary, another fast food company, Dominos Pizza, introduced regional tastes to satisfy traditional southern Indians and it received a good result.

Lastly, McDonald’s low price that provided in India can reach the goal of attracting more customers in short time, but it is not an efficient way for further and long development for the company. It can be summarized that the speed of expansion of McDonald’s in India is fast and in keeping with this, the cost for expansion was high. It means that low price in products but high cost in expansion may cut a lot of its profits and difficult to reach the break.

3. Conclusion 结论

In summary, McDonald’s in India received some success thanks to its localized marketing strategy. In order to avoid offending Hindu sentiments, McDonald made an accurate decision that making menu go vegetarian and provide appropriate meat burgers. This is an effective strategy that combine foreign food with local eating habits. However, due to the conservation of eating habits, the development of McDonald should not develop too fast. Therefore, related to economic and politic factors in India, low price will not to be a long efficient way for the development of McDonald’s in India and it still face a lot of challenges.  

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