Fast Food Fables

By:Kriti Singhal Lavanya Arora Manish Bizla Anurag Naman Vij Pratap Ayush Rachna Sharma Manoj

Introduction
The case discusses the localization strategies adopted by the 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 food segment but they found it difficult to establish themselves. 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.

Joining the Fray And the Indian Coming

WHILE MCDONALDS WAS ESTABLISHING ITSELF DOMINOS FACED TOUGH COMPETITION IN INDIA
OTHER HOMEGROWN PLAYER-NIRULAS, PIZZA CORNER, PIZZA HUT AND WIMPYS

DOMINOS DILEMMA OF HOW TO POSITION ITSELF - SNACK OR MEAL?

KFC ALSO FACED MASSIVE PROTEST AND ALSO THEIR IMPRESSION OF HAVING ONLY ONE ITEM ON THE MENU ALSO DIDNT APPEAL TO THE INDIAN CONSUMERS.

MCDONALDS BEGAN TO LOOK AT THE INDIAN MARKET IN 1990. JOINT VENTURES 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.

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

Mc Donalds approach for Indian Market

Positioning as a family restaurants and awareness

through 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 satellite channel advertisements with 3 Tier Marketing Strategy

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 campaign with a catch line Hungry, Kya and showed several advertisements in this series. Along with this campaign company made a tie-up with MTNL for the Hunger Helpline. With this Helpline Dominos offered its customers free home delivery with a promise to deliver pizza within 30 minutes.

Difference in positions of Dominos 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 home delivery Price

INITIALLY AT KFC

Preferred to retain its international taste

Offered only individual meal

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 combo meals(2 people) + 1 family meal Vegetarian : 3 combo meals + Meals for couple and families

Improving Prospects
Future Plans Of McDonalds In 2000,McDonalds thought of increasing the no. of restaurants with in 3 yrs. It entered into an agreement with Bharat petroleum Corporation to launch highway restaurants(Delhi-Agra highway) .It also planned to make its foray into south Indian Market with outlet schedule to open in Bangalore by mid2001. Tapping Office goers It intend to launch a special Dial M/fax M facility for office going customers. McDonalds Indian operations were still making losses.

Future Prospect of Dominos

Dominos

entered in agreement with Indian oil Corporation to set outlets at its transport fuel retail outlets. By Feb 2001,It established 101 outlets across 40 cities & cornered more than 70% share in Indian Pizza market. It planned to add 100-odd outlets. It planned to extend its operations in SriLanka,Bangladesh & Nepal.

POSITIONING
Moto Attract families who looked not for food, but recreation For kids

Kids fun corner

Ball pool Chicky express

Kids meal @ Rs 60 + free gift

MOUNTING LOSSES
KFC has indianized its menu to a great extent. 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 break even their operations in India due to mounting losses and increasing operational expenses.