Fast Food Fables

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Case Details:

Case Code : MKTG004
Case Length : 6 Pages
Period : 1997-2001
Pub Date : 2001
Teaching Note : Available
Organization : McDonalds, Dominos, KFC
Industry : Food, Beverages & Tobacco
Countries : India

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Please note:

This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Excerpts

The Indian Coming

McDonald's began to look at the Indian market sometime in 1990, when its executives started making exploratory trips. By 1994, some international suppliers of McDonald's had visited India to identify local partners. Meetings with agriculturists were conducted with a view to set up a supply chain...

Indianizing All The Mcdonald's Way

It gain acceptance locally, McDonald's had to modify its menu -substituting mutton for beef in the burgers, (something it had never done in any other market), choosing names like McAloo and Maharaja Mac, and introducing variations and dishes that were not available at any McDonald's outlet anywhere in the world. From the meticulous sourcing of raw materials and the elimination of beef and pork from its 'desi' menus to even segregating the vegetarian and non-vegetarian workers, McDonald's seemed to be extremely orthodox in its approach...

How others did it?

To establish its presence in the Indian market, Domino's too made efforts to give its products a local flavour. It even offered special products in different regions. In the south Indian segment, the company offered Chettinad Chicken and Mutton Ghongoor, while for North India it offered Butter Chicken and Paneer Makhani...

The KFC Way

While Domino's did all it could to give its offerings an Indian flavour, KFC initially preferred to retain its international taste. But this had few takers in India. Research revealed that Indian consumers did not relish "chicken with skin,"offered by KFC...

Improving Prospects

In 2000, McDonald's announced that over the next three years it would invest Rs 3.5 billion to increase the number of restaurants from 25 restaurants to 80...

Mounting Losses

In a bid to salvage its Indian venture, KFC had indianized its menu to a great extent. Despite its efforts, however, it soon became clear that it would be difficult for it to become a major player in the Indian fast food arena...


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