Question
) There has been rapid growth of western fast food outlets in both India and China. McDonalds, identified with the Big Mac and beef, has
) There has been rapid growth of western fast food outlets in both India and China. McDonalds, identified with the Big Mac and beef, has established itself as the leading fast food chain outlet in India, in a country where the majority of people not only do not eat beef but do not even want to eat in a restaurant that offers beef. In contrast, Yum! Brands, the operator of KFC, Pizza Hut and Taco Bell has been more successful in China. In fact China is one of the few countries in the world where McDonalds is not the number one western fast food chain. Yum, on the other hand, is planning to use its successful experience in China to expand in India and challenge McDonalds. Do your own independent research and discuss the following:
a. What economic, social and demographic changes in Asia motivated McDonalds and other western fast food chains to enter the Asian markets in the 1990s?
b. What socio-economic groups did they target, and why did they pick those segments?
c. What strategies did they adopt to overcome (a) barriers due to consumer preferences, such as the anti-beef attitude in India in the case of McDonalds
d. How did McDonalds cope with lack of domestic supply chains and what specific marketing strategies did they use to appeal to the Indian consumer e. Critically discuss the challenges facing McDonalds and Yum in India and whether the models will need to be further changed if economic growth slows.
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