TERESI_PAILLOU_mc donalds_vegetariansandwich

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


AGENDA


II. Objectives


IV. 4 P’s

V. Next Steps

VI. Summary


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


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



SWOT ANALYSIS


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


AGENDA


II. Objectives


IV. 4 P’s

V. Next Steps

VI. Summary


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



AGENDA


II. Objectives


IV. 4 P’s

V. Next Steps

VI. Summary


TARGETING MARKET

Age-groups 15-30

Vegetarian & Health conscious people

Urban people

Middle class

Exposure to western food and culture



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



Fourth largest economy in the world

Fast-Food industry represents 12 billion $

INDIAN MARKET ANALYSIS


The Quick Service Restaurants is the fastest growing segment


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



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



CHALLENGES IN ENTERING INDIAN MARKET

• From the fat food to a more healthy food

• Polycentric orientation

• 100% Product adaptation



AGENDA


II. Objectives


IV. 4 P’s

V. Next Steps

VI. Summary


PRODUCT

A new sandwich adapted to the local demand :

j

100%Vegetarian

Adaptation

Prepared separately

High quality product


« Vegetarian Bic Mac »


Composition: 100% vegetarian!

- Bread with Bun

- Tomato

- Lettuce

- Vegetarian pumpkin sauce based

with Indian Spicies

- Potato pancake

PRODUCT



PRICE

111 र 2.04 $

60 र 1.10 $

59 र1.08 $

65 र1.19 $


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


PRICE

Chicken Zinger

99 र1.82 $

Streetwise Vegsnacker

25 र0.46 $

Vegetarian Zinger

95 र1.74 $

Chicken Snacker

30 र0.55 $


Competitor’s prices:

1 Indian rupee = 0.0186 US dollars / 1 US dollar = 53.8100 Indian rupees


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 *


*1 Indian rupee = 0.0186 US dollars 1 US dollar = 53.8100 Indian rupees


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



PLACE

• 2 centralised distribution centers

at Mumbai & Kochi

• QIP ( quality Inspection Program):

Quality checks at 20 points in the

supply chain movement


Manufacturer

Indian consumer

Retailer: McDonald’s Restaurants

B to B to C:


PLACE



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



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



PROMOTION

Sales promotion• Animations and tasting in point of salesContests/sweepstakes/games

• Special offers



PROMOTION

Direct marketing

• E-newsletter

• Coupons to print



AGENDA


II. Objectives


IV. 4 P’s

V. Next Steps

VI. Summary


NEXT STEPS


• 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


AGENDA


II. Objectives

III. Indian market Research

IV. 4 P’s

V. Next Steps

VI. Summary


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

TERESI_PAILLOU_mc donalds_vegetariansandwich

Business

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