Branding of McDonalds in India
... that average footfalls are up 25% to nearly 3,000 per outlet per day since the launch. "We've reached a stage where operational excellence is going to drive the growth from now on." So the focus is back on training, which had taken a back seat due to the needs of rapid expansion in the last few years. "We've increased the number of managers who are going back to training, and are sending more senior managers abroad to gain international exposure," says Bakshi. Even in an area like service standards, where they have set the bar for the entire industry, the Oak Brook headquartered company with 2003 sales of $17 billion has used consumer feedback to improve consistently. In most outlets in Delhi, for instance, there's a 'crew member' wearing an apron that reads 'May I help you?' or 'Have you had dessert today?' It's the self-service restaurant's way of serving you at the table. While to some these moves reek of desperation to get more consumers to patronise the golden arches, Bakshi refutes the claim altogether. Under the Happy Price, they have increased the price of two products to Rs 20 to cross-subsidise the products which they have decreased by similar value. "It's a volume discount," says Bakshi. Some also suggest that home delivery is an extreme action for a company that prides itself on trashing anything that remains in the 'bin' for longer than eight minutes. But given that every other major player in the eating out sector in India is delivering its products at the consumers' doorstep, McDonald's could hardly have afforded to remain out of it. Another reason could be traffic and parking issues in most cities in India that turn away many consumers from the usually heavy traffic areas where McDonald's are located as a matter of strategy. Contrary to popular perception, India isn't the first country where Ronald makes an appearance at people's doorsteps. McDonald's has been delivering food at home in other countries like Indonesia and Egypt. Now present in 58 outlets all over North and West India, McDonald's has been reinventing itself since the time of its entry into the Indian market in 1996. After rolling out a number of restaurants, it focused on localising its menu - nearly 70% of its products today have been cooked keeping Indian culinary and religious sentiments in mind. For instance, the use of green chutney in McGrill burger was in response to consumer feedback. In response to local sentiment, they decided to cook vegetarian food in separate equipment and utensils, and kept it apart from non-vegetarian products at all stages of procurement, cooking, and serving. It also tied up with Nestle India for products like cold coffee and Nestea, and Cadbury for its 'soft swirl' - a chocolate topped vanilla cone - a move reminiscent of its strategy in France where it teamed up with French companies to offer local fare, such as fruit yoghurts produced by Danone, coffee from Carte Noire and the French soft drink Orangina. But then, localisation has been the key ingredient in the survival strategy of the world's leading food service retailer with more than 30,000 restaurants in 119 countries. In France, it offers the ham-and-cheese "Croque McDo" that is McDonald's version of a croque monsieur, a French favourite. In Japan, it offers a teriyaka burger that suits the local palate. It even experimented, albeit unsuccessfully, with selling pizzas for a short while a few years ago. Back in India, Bakshi is hoping to keep his date with the original target of reaching 100 outlets by 2005. He plans to increase the total to 68 by the end of 2004. Bakshi might be encouraged by the fact that the eating out sector has been growing and consumer spending on it increasing over the last few years. Retail consultancy KSA Technopak estimates that the Rs 40,000-crore eating out market has been growing annually at 6%, while the Rs 1,500-crore urban fast food service segment has been recording a 20% growth rate per year. While all looks well for now, the Indian preference for local taste puts a question mark over future success. "Indians want a slice of America, but only once in a while," says a Delhi-based consultant, "Inflexibility in their product mix could be their undoing." Some cannot fathom why McDonald's is being so rigid about its product offerings, especially when it has to compete with the Haldiram's of the world for a share of the consumer's wallet. Counters Bakshi, "We've got a whole lot of research that suggests that the Indian consumer wants taste and filling-ness, but in a unique form when she goes out." McDonald's offers three forms: burgers, wraps and puffs. The ...