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Abstracty The case discusses the localization strategies adopted by

the multinational fast food chains - McDonald's, Domino'sand KFC in India. Initially, these fast food chains found ittough to cater to Indian tastes. Soon, they customized their menu, positioned their products and advertised to appealto Indian customers. McDonald's and Domino's succeededto a certain extent, while KFC still had a long way to go.

And the factors that forced the fast food chains tounderstand the local market and modify their strategies tosuit local requirements.



Mc DONALDs



McDonald'sy McDonald's corporation is one of the worlds largest

chain of hamburger fast food restaurants.

y McDonalds was founded on May 1940.y Founded by Richard and Maurice McDonalds

restaurants concept.

y Products:

Fast food ,hamburgers, chicken, French fries etc.



Mc DONALDs in I ndiay Mc DONALDs began to look at the Indian market

sometime in 1990s.

y

In April 1995 it has started 50:50 joint venture withVikram Bakshi & Amit Jatia at Delhi.

y Mc DONALDs opened they Delhi outlet on the firstday of Navrathris to emphasize vegetarianism.

y In 1998 Mc DONALDs set up team and asked them tocollect consumer feedback on the menu theydeveloped.



SEGMENTATION OF

Mc DONALDGeographic region:-

y Region- Urban India

y

City- metro cities.Demographic Segmentation

y Targeted on:Middle and Upper income group families

y F

amily stage:Full nest

y Potential target:Office goers



Psychological Segmentationy Motivationsy Personality

y Perceptionsy LearningMotivationy Need- Acquire need.y Goal- product specific goal

y Motivation- Positive motivationy Motives- Emotional as well as Rational motivesy Arousal of motives- Physiological arousal as well as

environmental arousal



y Personality

y As per Freudian Theory of Personality :-Id & Egoy Acc. To Horney- Compliant (family)

VARIOUS TRAITS(as per trait theory)Consumer Innovativeness: -y Innovativeness- Low-mediumy Dogmatism- Mediumy Social character- Other directed

y Need for Uniqueness- Low-mediumy Optimal stimulation level- Mediumy Sensation seeking- Mediumy Variety-novelty seeking- Medium-high



Cognitive personality factors: -

y Need for Cognition- low (Visualizer)

Brand personality- Competent



y Behavioral Segmentation

y Quality, Service, Economy

y Usage rate : Mediumy Loyalty status: Medium

y Attitude towards product: Positive



Product level Core benefit - Fast Food

Basic product - Berger

Expected product - Easy Availability

Augmented product -Socialization

Potential product - Available at lowest pricethen others.



Classical conditioningUnconditioned Stimulus

20/-

Conditioned Stimulus

Mac Donald's

Unconditioned ResponseVeg.


Mac Donald¶s

Conditioned Response

Aloo tikki burger

AFTER REPEATED PAIRINGS



Positioningy Image positioning-

The brand name Mc Donald's carries many

associations burger, fun, children, fast food, ambience,all of these makes up the brand image.

y Competitor positioning-

Mc Donalds mein hai kuch baat



DOMINOs



y Dominos pizza Inc. is an international pizza delivery corporation headquartered in Ann Arbor, Michigan

United Statesy Founded in 1960

y Dominos is the second largest pizza chain in theUnited States

y Dominos currently has 9000 corporate and franchisedstores in 60 international markets and all 50 U.S.States



Dominos Indiay Dominos had established its first outlet in India in

January 1996 at New Delhi

y Ajay Kaul is the CEO of Dominos pizza India

y Today Dominos pizza India has grown into acountrywide network of stores with a team of 3000employees and 135 stores

y Dominos is the leader in pizza home delivery with ashare of 70% in market .



GeographicRegion- Northern IndiaCity size- Urban, Delhi.

DemographicTargeted on: upper- middle, middleFamily- full nest,

Psychographic

MotivationsPersonality PerceptionsLearning



y Need- Acquire need.

y Goal- Product specific goal

y

Motivation- Positive motivationy Motives- Emotional as well as rational motives

y Arousal of motives- Physiological and environmentalarousal



Personalityy As per Freudian Theory of Personality :- Id & Egoy Acc. To Horney- Aggressive

VARIOUS TRAITSConsumer Innovativeness: -y Innovativeness-highy Dogmatism- mediumy Social character- other directedy Need for uniqueness- mediumy Optimal stimulation level- mediumy Sensation seeking- mediumy Variety-novelty seeking- medium



ContCognitive personality factors: -

y Need for Cognition- low (Visualizer)

y

Behavioraly Benefits : Delivery in 30 mins or free, quality.

y Usage rate : medium

y Attitude towards product: positive



Product Level

Core benefit - Fast Food Basic product - Pizza

Expected product - Easy Availability Augmented product -

Available in many sizes and

flavor. Potential product -

Available at lowest pricethan others.



Classical conditioningUnconditioned Stimulus

Free home delivery

within30 min


Domino¶s

Unconditioned ResponsePizza


Domino¶s

Conditioned Response

Pizza

AFTER REPEATED PAIRINGS



Positioning

Benefit positioning

Competitor positioning



KFCy KFC is a chain of fast food restaurant based in

Louisville.

y

KFC was founded in 1930s.y Founders of KFC is Herland Sanders

y Products:

y Fried chicken, Grilled chicken related southern foods



KFC Indiay It entered in India in 1995s and has been it midst of

controversies since then.

Initially KFC targeted detached personality people,offering only individual meals of international taste

Later they changed their target to families



Segmenting KFCy Geographic

Region- Calcutta, Delhi, Bangalore,Hyderabad, Mumbai

City- Urban Areas, metrosy Demographic

Targeted on: upper- middle, middleFamily- full nest

y Psychographic

MotivationsPersonality PerceptionsLearning



Motivationy Need- Acquire need

y Goal- Product specific need

y

Motivation- Positive motivationy Motives- Emotional motives

y Arousal of motives- Physiological and environmental arousal



Personality

y VARIOUS TRAITS( as per trait theory)

y Consumer Innovativeness: -

y Innovativeness-high - low

y Dogmatism- low - high

y Social character- inner - other directed

y

Seek uniqueness -a little lessy Optimal stimulation level- medium

y Sensation seeking- high - medium

y Variety-novelty seeking- medium



Personality

As per FreudianTheory of Personality Ego

Acc. To Horney- Detached Compliant



Product Level

Core benefit - Fast Food

Basic product Fried

chicken Expected product - Easy

Availability

Potential product -

Available at lowest pricethan others.



Behavi ral

y Benefit -----Quality

y User rate ------ Light

y Attitude towards ------ Indifferent



THANK YOU

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