Question

McDonald's had positioned its restaurant as a family restaurant that barred smoking as well as serving of alcohol on its restaurant. The results were apparent and resulted in a 48% increase in footfalls along with 30% hike in the sales. In the same year, the company aired its 1V commercial for the Rs. 7/- soft serve cone campaign, thereby establishing the value proposition of the company. However, this research indicated that the people are unaware of the quality of food served by the McDonald's. This had led to creation of the advertising campaign by the company which started its focus on sfamiliarising customers with the quality of food served at McDonald's. Consumer research had also pointed that a large mix of offerings were required in the vegetarian menu of McDonald and the company consciously addressed this need of its customers. The company had also become aware of the fact that eating out, though gaining frequency was still primarily a family affair. Hence, it was attributed mainly to evenings and weekends. The 'Happy Price 'Menu' had come closer on the heels of the marketing initiative by the company ""I'm Lovin’ it" which McDonald's had launched in October 2003. The communication about this new offering was funky and funny and tells that McDonald’s is overall a great place, and at a best price – which restricted not only to its product, but also the experience. At the same time, it aims to make the service hassle-free and easy to use.

Franchising is one of the global entry methods used by an organisation to penetrate international markets. Regarding the case study, critically examine the strategic approach that McDonald’s used to enter the Indian market and entrench it franchising foothold.

Answer 1

McDonald's used a strategic approach to enter the Indian market, focusing on family-friendly and high-quality offerings, addressing the need for vegetarian options, and catering to the preference for dining as a family. The company established its franchising foothold by positioning itself as a value-driven and customer-centric brand.

Step-by-step explanation:

The strategic approach that McDonald's used to enter the Indian market and establish its franchising foothold involved several key elements. Firstly, McDonald's positioned itself as a family restaurant that prohibited smoking and served no alcohol, which aligned with the cultural preferences and values of the Indian market. Secondly, the company conducted research that revealed a lack of awareness about the quality of its food, leading McDonald's to launch an advertising campaign focused on familiarizing customers with the quality of its offerings. Additionally, the company addressed the need for a larger variety of vegetarian options in its menu, catering to the dietary preferences of the Indian population. Finally, McDonald's recognized that eating out in India was primarily a family affair, leading them to introduce the 'Happy Price Menu' and focus on providing a hassle-free and enjoyable dining experience.