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McDonald's India Expansion Strategy

McDonald's entered the Indian market in 1996 through a joint venture. It focuses on quality, service, cleanliness and value (QSCV) through a franchise business model where 85% of outlets are franchised. McDonald's built a robust supply chain over 6 years before entering India, sourcing 95% of raw materials locally and implementing strict quality control and cold chain distribution. It aims to continue expanding its restaurant network across India while increasing access points and competing through new products.

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Mathangi Sridhar
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206 views13 pages

McDonald's India Expansion Strategy

McDonald's entered the Indian market in 1996 through a joint venture. It focuses on quality, service, cleanliness and value (QSCV) through a franchise business model where 85% of outlets are franchised. McDonald's built a robust supply chain over 6 years before entering India, sourcing 95% of raw materials locally and implementing strict quality control and cold chain distribution. It aims to continue expanding its restaurant network across India while increasing access points and competing through new products.

Uploaded by

Mathangi Sridhar
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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Mc Donalds Sales and Distribution System

By Shireen Khan Mathangi Sridhar

Introduction
Founder - Ray Kroc - 1955 in Des Plaines, Illinois, USA Opened in India in October, 1996

50-50 joint venture, locally owned


Mc Donalds Corporation & Amit Jatia(Western India) and Vikram Bakshi (Northern India)

Core Principles - Quality , Service, Cleanliness and Value(QSCV)


119 countries, 33,000 outlets worldwide

Business Model
85% franchisees , 15% owned stores Long term brand reputation was the focus

A robust supplier network integration enabled customercentric approach


Think Global, Act Local was the strategy adopted Lowest cost model with best quality

Sales Strategies

Products
Beef flavouring in Veg French Fries faced huge criticism

Pricing
Least compared competitors pricing to its

Home Delivery
Targeted at rich middle class sections Popular in Delhi & Mumbai Led to 15% increase in sales

100% vegetarian - Mc Aloo Tikki Burger, Veg Pizza Mc Puff

Meals at Rs 29/-,39/-, 49/-, 59/-, 69/-, 79/and 89/-

Sales Promotions
Mc Donalds experience
Quick service, clean & friendly environment Lounge for senior citizens in certain outlets Traditional set-up in certain outlets Mc Donalds family restaurants

Continuous change in promotions


Happy price Menu, 2004 Music Meal, April 2005 to attract youngsters Scratch and Win Prizes Lucky Itch Mahendra Balero Jeep as prizes

Supply Chain
Local sourcing

Cold Chain

Suppliers

Supply Chain

Setting up the Base


Objectives
To achieve QCSV Flexibility in Pricing Launch new products

Robust Supply Chain


Started 6 years prior to establishment in India Technology transfer to Indian companies along with international suppliers Infused $90mn for delivery mechanism

Local Sourcing
Local sourcing of raw materials
95% of them from 38 local suppliers Adherence to food, health, hygiene according to Indian standards.

Key Suppliers
Dynamix Dairy Industries Cheese Trikaya Agriculture - Iceberg Lettuce Vista Processes Foods Pvt Ltd Chicken & Vegetable Products

Robust Supply Chain


Company--------Franchisee---------Suppliers All distribution through AFL Logistics Ltd
Joint Venture Radhakrishnan .Foodland Pvt Ltd, Air Freight & Coughlin in US

Key Distribution centre Radhakrishnan Foodland (P) Ltd.


Cold, Clean and On-Time Delivery services

Cold Chain
Controlled temperature benefits
Procurement, Warehousing, Transportation, Retailing Cut down on Operational Wastage Freshness & nutritional value of food preserved

Started in 1993
Transportation trucks at 22 degree Celsius Cold & Dry storage for 52% products
- 18 to 4 degree Celsius

Supply Chain Highlights


QIP Quality Inspection Program
Check at 20 different locations

HACCP Hazard Analysis Critical Control Point


Food safety at all plants and restaurants in India

ERP Software implemented


Delivery at short notice

Strategic locations of all its restaurants


Within 500 km radius from distribution centre(Mumbai & Delhi)

Future Expansion
Hardcastle Restaurants Pvt.Ltd(HRPL)
2012 - 35 to 40 new restaurants 2014 double the number of restaurants

Increase in access points


Kiosks, drive thrus, Petrol bunks, Web Delivery Competent partnerships in future

Product competition

THANK YOU

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