Saturday, March 10, 2012

Advertisements - Brands to have stayed connected in India - McDonald's

Advertisements - Brands to have stayed connected in India

McDonald's Corporation is the world's largest chain of hamburger fast food restaurants. Headquartered in the United States, the company began in 1940 as a barbeque restaurant operated by Richard and Maurice McDonald. In 1948 they reorganized their business as a hamburger stand. Businessman Ray Kroc joined the company as a franchise agent in 1955. He subsequently purchased the chain from the McDonald brothers and oversaw its worldwide growth.


McDonald's Corporation earns revenue as an investor in properties, a franchiser of restaurants, and an operator of restaurants. Its business model is slightly different from that of most other fast-food chains. In addition to ordinary franchise fees and marketing fees, which are calculated as a percentage of sales, McDonald's may also collect rent, which may also be calculated on the basis of sales.

When McDonald's thought of entering the Indian market, there was scepticism that Indians would prefer burgers and fast food to local food offerings. Also from the earliest investments in India, Multinational Company (MNC) owners of restaurant chains have struggled to adapt to the needs of India's many markets. Some pulled out of the country after failed ventures. But this didn't stopped McDonald's from opening its first outlet in Mumbai in 1996 under McDonald's India.

The starting point for McDonald's India was to change Indian consumers' perceptions, which associated it with being 'foreign', 'American', 'not knowing what to expect' and 'discomfort with the new or different'. McDonald's wanted to position itself as 'Indian' and a promoter of 'family values and culture', as well as being 'comfortable and easy'. Simultaneously, the brand wanted to communicate that, operationally, it was committed to maintaining a quality service, cleanliness and offering value for money.

Initially, McDonald's India did not have enough reach to use mass media such as television advertising. Instead, most of its marketing effort focused on outlet design, new store openings and PR about its attempts to tailor a menu to Indian tastes. Products like McAloo Tikki burger, Veg Pizza McPuff and Chicken McGrill burger were formulated and introduced using spices favored by Indians. The menu development team has been responsible for special sauces which use local spices do not contain beef and pork. Other products do not contain eggs and are 100% vegetarian.

Customers were educated about the build of the products and extensive kitchen tours were arranged for them. They were shown how separate vegetarian and non-vegetarian platforms are used for cooking - a first in any market for McDonald's.

McDonald's launched its first TVC Stage Fright under the campaign Mcdonald's mein hai kuch baat. This attempted to establish an emotional connection between the Indian family and the brand. Over the years advertising has reinforced this positioning, supported by promotions.


In 2003, McDonald’s launched a worldwide brand campaign called i’m lovin’ it. They incorporated the i’m lovin it theme into its advertising, promos, public relations, restaurant merchandising and overall brand communications initiatives. The company's one-minute service guarantee attempted to reinforce its reputation for fast, friendly and accurate service. To kids sitting on the Ronald McDonald bench, pumping sauce from the sauce machine became brand rituals.


In 2004, McDonald's realized there was untapped potential in the youth audience who considered McDonald's expensive and mainly for children. Hence they launched the Happy Price Menu campaign with a value message for a younger audience. For the first time McDonald's India saw a surge of younger consumers and people from socio-economic class B walk into the stores.




In 2008, the Happy Price Menu campaign used characters from the Indian film industry to reiterate the theme of Yesteryear's Prices. It featured Bollywood stars from past decades and a message that prices have not risen in line with the passage of time.





In addition to the McDelivery service, a number of products were launched under the i'm lovin' it campaign.





The recent themes used by Mcdonald's for advertisements is an attempt to maintain the already established connection with the family, kids and youth.





McDonald's success in the Indian market for the past 16 years can be mainly attributted to its creative advertising campaigns which struck a chord with the people of the country in addition to its tailored menu for Indian market.

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