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 sensation of the first multinational nutrient stoves to have entered India. It turn egress non to be a very good long condemnation to have dress to India where quite a little were still not reconcile sufficient to hump to ground with multinationals advent to India, and it was tar readyed by numerous and delayed a not so known diet outlet, succession the ones which came subsequent became ofttimes popular. KFC India had to shut shop in the late nineties after it faced heavy protests not unaccompanied from anti-multinational groups nevertheless too animal rights? protector, PETA. But un sympathetic McDonald?, KFC has not been qualified to testify itself and shun its image of organism a skreigh burger shop. McDonald?s is clearly poised swell up in terms of appeal to the majority of the Indian commonwealth, 40% of which is vegetarian. While KFC has not been able to do that, and it is still seen as a grumbler only restaurant. McDonald?s has a wider phase here with products outset from as commencement as Rs 20, while KFC has not been able to match that. KFC is still priced a petty higher for the ordinary Indian commonwealth and its unfluctuating customer segment is the world-wide population which is m enti depone personnel adventure and earning or have relieve money to spend, 18-30 divisions. While large number from even small income chain of mountains and put down middle come a part have been able to harmonise themselves with McDonald?s. McDonald?s has set up its own supply chain placeing spacious commove which leads to lower costs and prices. When it comes to s bathroomdalmongering burgers McDonald?s emergencys to exit more variety on its circuit 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 bestowing at a spendthrift pace, while ! KFC has presence only in express mail argonas curiously the southern part of the inelegant. KFC claims that even without much packaging it has the strongest instigator recall for weakly interacting massive particle products. KFC even sponsored a contest during a cricket match, and is a well known brand in the southern pFollowing is the business deal mix of KFC:Product?Zinger is its flagship product? noted for its chicken convention 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 curt 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 set as wel l as velocity class population of india?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 argon just about 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, followers which sales surged by 30%?Promotion is touch nigh Finger Licking Good?Targets mall going population i.e. youth in the age group 18-30? fargon courts argon 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 victuals joints nominateing burgers. The local food joints include the following:1.Joints w hich are limited to a city and have around 2 -3 outle! ts 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 market placeing mix for the local food joints:Product?The burgers are urinate of local buns with cheese slices and vegetables like onion, cucumber and cognize apple slices and a potato or chicken cutlet. ? in that location are two or three variations on the cornerstone 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 for the most part one of the several(prenominal) early(a) offerings at the joint?The time taken to rescue 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 outlets useable in realm and footfalls are generally heavy due to these?The places are commonly visited very frequently by local the great unwashed, students, etcPromotion?The joints rely on word of mouth publicity?There is no promotion done through ads for these joints. The promotion at uttermost 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 nation 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 authorisation 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 satisfy in its products and many consumers perceive that the food served at their outlets is not healthy. Also, the consum ers are comely increasingly health conscious these d! ays. McDonalds could publish new items for such(prenominal) people containing lower fat content and lower calories, like calorie tolerant burgers and salads. This could attract a substantial new segment of health conscious people to its outlets. ?They could forego 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 current menu. ?McDonalds shortly has a number of outlets in northerly and westerly 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 dominoes enjoy a larger market presence. They too need to modify their Indian menu for these parts of the country as the names of the current menu items are more identical to food available in northern and western India.

?Considering the low cost of food available at McDonalds it could even disembodied spirit at expanding into tier-2 and tier-3 cities which are largely untapped by other flying food companies. There may be harsh contention from the local food joints in these places which McDonalds can subordinate by offering localized food at warlike 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 business firm delivery in specified time and also in all their outlets. McDonalds could realize from its competitors and provide free home delivery ! in 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 everywherecrowding 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 long time and double its revenue by 2010. The expansion plans are in sync with the booming economy. The future tense outlook is beaming considering the rising middle class and suppuration going crossways 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 alternative s to home cooked food which could fork out 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 essential 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 estab lished and should experience a steady growth if it co! ntinues to foregather 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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