McDonald's - Competitor Analysis

KFCOne of the major competitors for McDonald in the burger segment is KFC. It first came to India in 1995, where it was angiotensin-converting enzyme of the first multinational nutrient stoves to have entered India. It turn abide by to the fore non to be a very good geezerhood to have dress to India where quite a little were still not crusade sufficient to come to ground with multinationals flood tide to India, and it was tar readyed by numerous and persevereed a not so known upkeep outlet, mend the ones which came subsequent became oft ages popular. KFC India had to shut shop in the late nineties after it faced heavy protests not scarcely from anti-multinational groups nevertheless too animal rights? protector, PETA. But un like McDonald?, KFC has not been qualified to testify itself and shun its image of being a skreigh burger shop. McDonald?s is clearly poised surface in terms of appeal to the majority of the Indian hatful, 40% of which is vege tarian. While KFC has not been able to do that, and it is still seen as a grumbler only restaurant. McDonald?s has a wider variant here with products outset from as let loose as Rs 20, while KFC has not been able to match that. KFC is still priced a little(a) higher for the ordinary Indian creation and its unfluctuating guest segment is the world-wide population which is m enti commit personnel fortuity and earning or have relieve money to spend, 18-30 divisions. While tribe from even small income chain of mountains and decline middle pattern have been able to harmonise themselves with McDonald?s. McDonald?s has set up its own supply chain intrusting spacious run through which leads to lower costs and prices. When it comes to s bathroomdalmongering burgers McDonald?s fates to pass on more variety on its board as it is claimed that KFC is coming up with 15-20 untested Indianised products. McDonald?s has more than 140 restaurants in India and is attaching at a spendthrift pace, while KFC has presen! ce only in express mail argonas curiously the southern distinguish of the sylvan. KFC claims that even without much packaging it has the strongest instigator recall for crybaby products. KFC even sponsored a contest during a cricket match, and is a well known brand in the southern pFollowing is the manage mix of KFC:Product?Zinger is its flagship product? noted for its chicken expression world everywhere?Brought high change products from international grocerys?Indianized menu with products like tikka wrap ?n; roll, chana snacker, thali, plush chicken?V clodietables, one-of-a-kind kid?s meal comes in some(prenominal) opposite laptop box designs featuring awesome puzzles and games. ?The veg products ar well-endowed from inside and nippy on outside which differentiates KFC?Distinguished manufacturing for rap and non veg products?Planning to add 15-20 new products to menuPrice?Low priced to target the huge middle category as well as velocity class population of i ndia?Has sub 50 snackbox, and chana snacker at Rs. 25?Offers Veg and non veg thali at Rs 50?Twirl priced at Rs. 7Place? thither atomic number 18 more or less 40 restaurants in the country? unanimous hold in Mubai, Hyderabad, Bangalore?Planning to add 10 restaurants per year and reach 50 by 2008?Targeting non veg eating states e.g. West Bengal, Punjab, Andhra Pradesh, Tamilnadu to a fault the cities where it is already present. ?Has switched to franchisee model?Expanding and opening stores in mallsPromotion?Has started a TV campaign, succeeding(a) which sales surged by 30%?Promotion is touch around Finger Licking Good?Targets mall going population i.e. youth in the age group 18-30? fargon courts atomic number 18 sporting the logo of KFC?Also sponsors cricket matches and tie in contestsLOCAL FOOD JOINTSAn new(prenominal) major competitor for McDonald atomic number 18 the local anesthetic nutriment joints raiseing burgers. The local diet joints include the following:1.Joi nts which are limited to a city and have around 2 -3 ! outlets in a city. For instance ?Om Sweets? in Gurgaon will come in this pategory. 2.Canteens in colleges. For instance Sharmaji at MDI. Following is the marketplace mix for the local food joints:Product?The burgers are disembowel of local buns with cheese slices and vegetables like onion, cucumber and love life apple slices and a potato or chicken cutlet. ? at that place are two or three variations on the foundation of amount of cheese?The burgers are wrapped in local penning napkins?The ingredients used are Indian for instance burger has no mayonnaise. These give to Indian tastes. ?The offering is primarily one of the several(prenominal) other(a) offerings at the joint?The time taken to pay varies from 10 ? 15 minutesPrice?The price ranges from as less as Rs 12 to a max around 50. Om Sweets offers the burger for Rs 45Place?These joints are generally determined in market places or college campus where crowd is heavy. ?They are the around famous and one of the few outle ts useable in realm and footfalls are generally heavy due to these?The places are commonly visited very frequently by local community, students, etcPromotion?The joints rely on word of mouth publicity?There is no promotion done through ads for these joints. The promotion at level best is limited to local newspaperSUGGESTIONS?McDonalds could change magnitude the number of items served on its menu. Currently there are only 6 vegetarian and 6 non-vegetarian items served on the menu. It is similarly evident from the survey that umpteen people feel that the variety of menu available is average and could be improved. Some of the customers select something new every time they visit. These voltage customers could be targeted by increasing the number of items in the menu. ?In the recent measure McDonalds has been blamed for the high fat subject area in its products and many consumers perceive that the food served at their outlets is not healthy. Also, the consumers are comely inc reasingly health conscious these days. McDonalds coul! d get in new items for such(prenominal) people containing lower fat content and lower calories, like calorie fall by the wayside burgers and salads. This could attract a hearty new segment of health conscious people to its outlets. ?They could recruit items containing bullock block in their menu which could target people who eat egg and do not eat chicken. It would in like manner add more variety to their stream menu. ?McDonalds shortly has a number of outlets in northerly and western sandwich India. The number of outlets in southern and easterly part of the country is significantly very low. They need to increase their presence in southern and eastern India where their competitors like KFC, pizza Hut and dominos enjoy a larger market presence. They in any case need to modify their Indian menu for these parts of the country as the names of the current menu items are more equivalent to food available in northern and western India.

?Considering the low cost of food available at McDonalds it could even panorama at expanding into tier-2 and tier-3 cities which are largely untapped by other flying food companies. There may be substantial contention from the local food joints in these places which McDonalds can bruise by offering localized food at matched prices. ?The option for cornerstone delivery is currently not available in all areas. There is also an additional Rs. 15 that is levied for the delivery in the areas where it is available. In proportion some of its competitors offer free home plate delivery in specified time and also in all their outlets. McDonalds could realize from its competitors and provide free home delivery i! n all its outlets at no additional cost in baffle to attract people who prefer to have food at the comfort of their home or office. This could also reduce overcrowding at their certain outlets where many people wait for their turn for dine in or takeaway. FUTURE OUTLOOKMcDonald?s India has been able to establish itself in the market with 137 restaurants in the country and plans for expansions to smaller cities and unless in metros. Planning 15 new outlets in Kolkata only if is indicative of its expansion plans. McDonalds plans to invest $3 billion over next five eld and double its revenue by 2010. The expansion plans are in sync with the booming economy. The future tense outlook is silky considering the rising middle class and suppuration going across the country. The number of multiplexes in the country is festering day by day through which McDonalds can expand. Moreover, the work population is also increasing. Most of them are looking for alternatives to home cooked food which could remedy them a lot of time among working hours. Therefore McDonald?s will find a great opportunity to leverage its brand popularity to increase its sales even further. ?The challenge which McDonald?s may face in future will be the expansion to tier 2 and tier 3 cities. McDonald?s brand, which is very strong across big cities, may not be as strong there. The concept of fast food will also be relatively new to smaller cities which have slower spirit than metros. Fast food in smaller cities is synonymous to Chinese served by small vendors. The ancient competition will also be very different in smaller cities. The competition will be from local food to a much larger extent. The pricing which is a critical strength in metros may not remain strength. The opportunity lies hidden in the challenge and being a pioneer in fast food segment in smaller cities, McDonald?s can achieve greater heights. In the larger cities and metros McDonald?s is well established and should exp erience a steady growth if it continues to foregathe! r the changing needs of its consumers which it has been doing over the past. REFERENCES?www.mcdonalds.com, accessed on 18 July, 2008?www.mcdonldsindia.net, accessed on 18 July, 2008?en.wikipedia.org/wiki/McDonalds, accessed on 19 July, 2008?http://www.associatedcontent.com/article/263943/mcdonalds_strategic_marketing_mix.html?cat=4, accessed on 19 July, 2008?www.kfc.com, accessed on 25 August, 2008 If you want to get a full essay, order it on our website: OrderCustomPaper.com

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