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Building Localized Food by McDonalds with Value for Money Menu

August 30, 2013


McDonalds Localized in IndiaWe have Seen the Growth of McDonald’s in India and today we’ll explore the Localization and Brand building exercise taken by Hardcastle Restaurant.

McDonald’s leveraged well on the Indian appetite for value and built a successful and scalable value for money platform over the years. The Happy Price Menu, which starts at Rs25, has not seen any change in price for past six years now despite increase in raw material prices. Price increases have been usually lower than inflation and company attributes this to robust supply chain systems which help to keep costs under check and enhanced scale.

Popular Value Offerings are as Follows,
2004 Veg Pizza McPuff Rs25, Potato Wedges Rs20, McAloo Tikki Rs25, Salad Sandwich Rs25, Fries Rs25, Chicken McGrill Rs35, Veg Surprise Rs25, Plain tea Rs20
2009 McChicken meal Rs96, McVeggie meal Rs85
2012 McValue Lunch Rs55

At the same time they kept local tastes in mind and successfully introduced customized Indian products (more vegetarian offerings) to strengthen its customer base. The iconic Big Mac gave way to Maharaja Mac in India. The McAloo Tikki is
the main vegetarian burger. They did not use beef or pork products given religious sensitivities. The production lines were segregated for vegetarian and non-vegetarian products. Over half of a menu in a McDonald’s restaurant is vegetarian.

Customized Indian offerings available at Mcdonald’s
Veg Aloo Tikki burger, Chicken McGrill burger, Veg Pizza McPuff , Paneer wrap, McEgg burger, Maharaja Mac and Masala Grill (veg).

Company continues to introduce new products keeping its menu refreshed and providing more value options to the customer. During FY13, it extended its Happy Price Menu with the launch of the McEgg burger. The meal platform was further leveraged through the introduction of McValue lunch that allowed customers to buy meals at attractive price points between 12-3pm. Earlier this month, the company expanded its Happy Price menu by introducing Crispy Veggie Pops with portions priced at Rs25/45.

McDonalds has Brand extensions – McDelivery, breakfast, kiosks and Drive thru add upto 252 touch points and would play a key role in driving top-line growth rates.

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