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Table of Contents Introduction ............................................................................................................................................... 4 Section 1: Case Analysis ........................................................................................................................ 4 1.1 McDonald’s in India ...................................................................................................................... 4 1.1.1 Background: ................................................................................................................................ 4 1.1.2 India’s Fast Food Industry: ...................................................................................................... 5 1.1.3 Local Sourcing: ........................................................................................................................... 5 1.2 Market orientation theory: ............................................................................................................... 5 1.3 Issue: .................................................................................................................................................... 7 1.3.1 Halal Food: ................................................................................................................................... 8 1.3.2 Culture sensitivity: ..................................................................................................................... 8 1.3.3 Market Segmentation: ............................................................................................................... 9 1.3.4 Marketing Mix: ........................................................................................................................... 10 1.4 Solution: ............................................................................................................................................. 11 1.5 Conclusion: ....................................................................................................................................... 12 Section 2: Evaluation of Technological changes ........................................................................... 13 1.Introduction: ......................................................................................................................................... 13 2. McDonald’s India: .............................................................................................................................. 13 2.1 Impacts of Current Technological Changes on Market: ..................................................... 14 2.1.1 Drive-Thru Technology: ...................................................................................................... 14 2.1.2 Electronic Kiosks: ................................................................................................................ 14 2.1.3 Online Orders and Prompt Delivery: ................................................................................ 14 2.1.4 Green Technology System: ................................................................................................ 15 2.1.5 E-Payment System: .............................................................................................................. 15 2.1.6 Online App: ............................................................................................................................ 15 2.2 Current Technology Changes Impacting the Marketing Activities: ................................. 15 2.2.1 Product: .................................................................................................................................. 15 2.2.2 Price: ....................................................................................................................................... 16 2.2.3 Promotion: ............................................................................................................................. 16 2.2.4 Place/ Distribution Channel: .............................................................................................. 16 3.Conclusion: .......................................................................................................................................... 17 3.1.1 Product: .................................................................................................................................. 17 2

Introduction In this case analysis of McDonald’s in India, the company background is discussed. Further, the market orientation theory is aligned with the case analysis as McDonald’s faced boycott threats for serving halal meat in India. In addition, different marketing strategies, including marketing mix and segmentation, are applied. PESTLE and Porter’s five force analysis are used to evaluate and analyze the findings. Section 1: Case Analysis 1.1 McDonald’s in India 1.1.1 Background: McDonald's established its first spot in India in October 1996 located in the country’s capital Vasant Vihar New Delhi ( McDonald's, 2018). McDonald's extended 58 outlets as of November 2004; the majority outlets are in the northern and India's western most regions. McDonald's has announced to build 90 plus new restaurants at the end of next three years, compared to 34 restaurants it opened in five years by 2001, and the 58 restaurants it opened in eight years by 2004. Although there are no longer days-long lines of people outside Delhi and Mumbai McDonald's locations. The demand for McDonald's products in India is still very high. McDonald's is well-known globally for serving local cultures with great respect ( Jagain, 2016) . One of the factors contributing to McDonald’s success in India is the localization of elements and communication while still promoting an international image. But over past few years, McDonald's had come to represent all that was wrong with fast, junk, foreign, and fatty cuisine around the world. However, the business has altered this reputation by providing products with regional flavors, fulfilling its objective to "be the greatest fast service restaurant experience supported by principles and core values" in India. “We have been distracted from running a great restaurant by our growing intricacy”. Jack Greenberg, former CEO of McDonald’s (2001). 4

1.1.2 India’s Fast Food Industry: India has a tremendously diversified population, with more than 5,000 ethnic communities represented. India's various regions and sub-regions each have their unique eating customs and tastes. Some restaurants in major cities and metropolitan areas specialize in serving local cuisine. The majority of Indians prefer to eat food that is prepared at home. Home-cooked meals are seen as being affordable, wholesome, and fresh by the majority of Indians (ZeeBiz, 2017). India has increased its food imports by more than 37% annually since 1994. Agriculture-related products include grains, vegetables, fruits, wheat, and nuts make up about 50% of India's food imports ( Government of India ,2017). An unproductive food cycle between farmers and customers is the main issue faced by Indian’s food businesses. 1.1.3 Local Sourcing: Most of the time, McDonald’s used local partners or local management to operate globally. McDonald's India prefer to buy from regional vendors ( Panwar and Patra, 2017). McDonald's construct its restaurants with the aid of local engineers, local builders, local workers, and local materials. McDonald's India purchases food items from regional businesses. From Pune, Dellhi fresh lettuce is taken, Dynamic Diaries in Baramati, Maharashtra produced the cheese. In Punjab, Cremica in Phillaur produced the fresh buns also the Bector Foods in Phillaur, Punjab produces the sauce. The Chicken Patties, Vegetable Patties, pies and Pizza McPuff are taken from vista processed feed and the dairy products are from Amrit food, Ghaziabad, UP (McDonald’s, 2017). 1.2 Market orientation theory: Narver and Slater, (1990) suggested that Market orientation is a way in which all employees are enthusiastic to consistently devise higher worth for clients (Deshpande, Farley, and Webster, 1993; Day, 1994). Customer orientation, competitor orientation and inter-functional coordination are the three main components of market orientation. Farley, (1997) described that the market orientation is "The collection of cross-functional procedures and actions aimed at generating and retaining consumers through ongoing needs analysis." 5

Figure (1): Gupta, N. (2022) Market orientation, WallStreetMojo. Available at: https://www.wallstreetmojo.com/market-orientation/ (Accessed: January 25, 2023). 1.3 Issue: New Delhi, India the Hindutva in India have required to boycott the McDonald's after the international fast-food business certify that its restaurants served halal meat. All our restaurants are HALAL certified. In response to a user's query, the fast food chain said: "For you satisfaction and validation you can inquire anytime to the corresponding restaurant Managers to show you the certificate and they must show you (August 22, 2019). The reply, however, angered many users on Twitter, who wanted a boycott of the US restaurant company, with the hashtag # BoycottMcDonald’s becoming popular in India. Many questioned arises about Why McDonald's take this step to serve halal beef in a country like India where Hindus are of 80% of the 1.3 billion population. Instead of selling beef or pig, McDonald's in India provide a wide range of vegetarian cuisine along with chicken and fish. A user wrote that it is an obvious and deliberate attack on Hindu values. India has an 80% of total Hindu population, in which 4% are Jain, Sikh, and Buddhist. To satisfy the 14% Muslim community, McDonald's had deceived the 84% of the population of India. Right-wing Hindu organizations in India have criticized other businesses as well before McDonald's for providing halal beef. Earlier this month, a 40 years old man's unwillingness to accept meals provided by a Muslim Zomato driver sparked a public discussion on the rise of Islamophobia, which is home town of almost 170 million Muslims in India. In response to his reaction the food company said that “Food does not have any religion, it is a religion”. 7

1.3.1 Halal Food: Lade et al, (2009) define that the Arabic term for "authorized" or "permissible" is "halal," which is often rendered as "lawful”. Food that is halal is distinctly labelled or certified by a recognized certifying organization (Jamal and Sharifuddin, 2015). Haque et al. (2015) suggested that to receive halal certification, stringent guidelines must be followed during all stages of food production which contains slaughtering, preserving, preparation, presentation, and general cleanliness. The bid for halal cuisine has amplified quickly in non-Muslim nations for a number of reasons. The non-muslins are well educated, more in growth rate than Muslims and halal food is traditionally been found in smaller retailers and restaurants (Carney, 2013; Izberk-Belgin and Nakata, 2016). From 2004 to 2008 numerous customers are willing to purchase halal food in China and India, and sales of halal food are believed to have increased by two-fold in Moscow, Russia (Golnaz et al. 2010). It’s eminent that halal goods go through a rigorous inspection process to guarantee a hygienic, harmless, and sterile manufacturing process (Bergeaud-Blackler, 2004). At the end, it is apparent that a variety of various circumstances may affect buyers' perceptions of halal goods. 1.3.2 Culture sensitivity: Respect for Indian custom and culture Vikram Bakshi, Managing Director of McDonald’s Delhi stated that "Even though the Indian establishment held to its fundamental taste that improved consumers' perceptions from "bland" to "unique" in three years, with no alteration factored in by the fast food chain, McDonald's menu was still around 75% different from its global menu” Ahluwalia, (2017). McDonald's is renowned globally for serving local cultures with significant respect. To face the Indian challenges, the corporation has increased the adaptability of its products significantly. The localization of Indian cuisine is 75%, as compared to 33% in other Asian countries and lesser to 5% in other nations. In India, 80% customers are vegetarian (Rappa, 2007), so McDonald's India has designed a menu distinctively for Indian’s with vegetarian options and considering the Indian flavor and traditions. In India McDonald’s does not sell any product made with pork or beef. In this way McDonald’s India was introduced the Maharaja Mac, which features are like as McAloo burger, a Vegetable Salad sandwich, Mcmasala sauce, and McImli sauces instead of the Big Mac's beef patty. To grab the attention of dedicated 8

should be careful about how they target and interact with customers who practice a specific religion (Muhammad et al. 2012). Foedermayr and Diamantopoulo, (2008) suggested that a company will typically divide a diverse market into segments that are relatively homogenous so for that a firm creates a customized marketing mix to fulfill the needs and demands of particular segment. The food retailing and industrial sectors are distinctive because it is frequently practically impossible or financially unfeasible to gratify only the wants of a target customer group besides having an adverse effect on consumers who are not in the target group (Rauschnabel et al. 2015; Schlegelmilch et al, 2016). Warikoo, (2013) stated that when McDonald’s America try to present halal food in America they faced lawsuit so they decided to not sell halal food in America. In conclusion, a company's choice to target customers will mostly depend on the kind, extent, and severity of unplanned consequences of this targeting technique and market orientation here plays an eminent role to target a market where halal meat is consumed in India. 1.3.4 Marketing Mix: In McCarthy, (1975) introduces the concept of 4P’s which becomes base to develop a marketing plan for many years but in (Gilligan, 1996) added three more P’s (process, physical and people) for analyses a marketing mix plan. McDonald’s globally used the 4P’s marketing model which is price, product, place and promotion. Marketing Mix McDonald’s India Product and Services  Preference and culture include only chicken not beef nor pork.  Product division based on vegetarian and non-vegetarian. Price  Pricing strategy depends on different market segments.  Affordable prices and accessed to all range of consumers.  Vegetarian meals in india at 10

minimal rate. Place  McDonald’s employed widespread range of outlets, drive-through, kiosks and franchisees all around the country also includes religious sites like Vaishno Devi. Promotion  Method: traditional and printing media (Promotion of vegetarian meal done through adapting the culture).  Awareness of the item and build positive image in the minds of people for specific product. Table (1): Summary of marketing mix strategy of McDonald’s India Source: Yeu et al. (2012). A comparative study on international marketing mix in China and India: The case of McDonald's. Procedia-Social and Behavioral Sciences , 65 , pp.1054-1059. McDonald’s has adopted different marketing mix strategies to face the situations globally. These approaches totally depend upon their localization and globalization strategies. But when McDonald’s serve to a specific country it adopted the localization strategy due to their religious laws, customs and culture. McDonald’s 4P’s marketing mix is solely based on customer preference. 1.4 Solution: Banerjee, (2008) suggested that McDonald’s is a eminent fast-food chain with locations everywhere in the world. The firm faced additional obstacles as a result of the country's cultural, religious, and ethical distinctions when it bravely entered the Indian market. Although McDonald's still has issues, they have largely been successful in luring some of the Indian populace who are captivated by western culture. In August, 2019 a social worker Haris Sharma sent a legal notice to McDonald’s India, Mr Amit Jatia and Mr. Vikram Bakshi (MD of McDonald’s India). The notice elaborates that fast food chain serves only halal meat not Jhatka or Kosher meat which serves the religious 11

Section 2: Evaluation of Technological changes 1. Introduction: McDonald’s food chains considered the best among the other fast food markets. McDonald’s is expanding internationally swiftly. According to 2021 report 40031 restaurants are working worldwide. It started its journey from the United States in 1955. West life Development Limited (WDL) operates McDonald’s chain of quick service restaurants (QSR) in these markets (Nandini, 2014). Indian markets bring significant improvement in technological world. As it is ranked at 40 th position in 2022 from 81th position in 2014. In this report I will discuss market, marketing activities and impact of current technological changes on markets and marketing activities. McDonald’s is a fast food market and its focuses on how to deliver hygienic foods fast to the customers. Before discussing impact, it is curial to know what is meant by marketing activities is and what technological changes are. In marketing, marketing activities means marketing mix that is based on four p’s that are essential to penetrate in a market and current technological changes brought down in India are smarter devices, Artificial intelligence and machine learning, digital trust, 3D printing and many more. At the end of this report, I will summarize all the research work by insuring McDonald’s is successfully expanding and growing technologically and economically by efficiently using marketing mix strategies in India. 2. McDonald’s India: McDonald’s is recognized as the most growing and largest fast food chain of the world with its speedy operations. In India McDonald’s opened its first outlet in October 13, 1996 in its populous colony of New Delhi, India. It has captured the market of 118 countries by opening 36900 outlets. Next step is to carefully plan to saturate and grow in Indian market, according to its changing environment, to attain its mission that is become the best restaurant in providing world best and fast services ( Dash, 2005). Customer satisfaction is fundamental aspect to meet Indian’s high expectations regarding cleanliness, healthy food, taste reasonable pricing and quick services and others. Hence, 13

McDonald’s is managing Indian long supply chain and using different models and software like MCO ERP, SAP with COBRA (Pradhan, 2018). 2.1 Impacts of Current Technological Changes on Market: The era of 1990s is considered as a tenor of exact innovations as well as of technological changes (Jain, 2004). Tech-changes mean simply change in the methods of doing business. McDonald’s working on introducing more e-technological changes in his outlets to enhance its customer relationship (Samnani, 2014). McDonald’s has brought down following technological changes in current fast food market of India: 2.1.1 Drive-Thru Technology: Drive-Thru is the abbreviation of drive-through. In India McDonald’s introduced drive-thru strategy that means to serve the customers through window or counter it helps MacDonald’s to enhance its sales and market share specially in pandemic Covid-19 ( ulkarni and Lassar, 2009). According to the Max Carmona, customers of McDonald’s always strive for change so their development departments always try to find out new and easier ways to serve their audience more quickly. 2.1.2 Electronic Kiosks: Electronic kiosks are becoming the influencing standard for fast food markets (Schmidtke et al. 2019). As consumer demand healthy food-items from such markets. Kiosks technology helps McDonald’s to increase its sales in context to demand specially in COVID-19. 2.1.3 Online Orders and Prompt Delivery: The lithe world is changing the habits of customers in fast food market that is rising swiftly hence technology meandering speedily in pocket of Indians deeply with effect of economical data and improved digital technology ( Ghosh, 2020). That allow McDonald’s 14

2.2.1 Product: Product means what company product it can be tangible and intangible. McDonald’s produce and sell tangible food items according to the Indian taste. Indian McD is using innovative product strategy to satisfy changing food trend of buyers. Indian MacDonald's start to knowing the influence of being digital is more effective for them, they start converting their products using current technology. They compose advanced pledged unit. This unit is performing all their work digitally, like they start taking order digitally; take disbursement online, start delivering and creating trust among the customers ( Bhardwaj,2017) 2.2.2 Price: Price is value that is determined according to consumer behavior. McDonald’s is using various price-strategies in accordance with consumer state of mind about what worth a product have. For example, in India using low price strategy leaves bad impact on their mind as they consider it as low-quality product (Subhan, 2012) 2.2.3 Promotion: As name shows It a strategy that allows marketing to your audience via using emails, telecommunication and all other online methods. McDonald’s is using its web site that give detailed info about McD products and services. McDonald’s is using home delivery services as well as personal selling techniques for promotion purpose ( Jayashree and Preethi 2016). As the Indian MacDonald's start to knowing the influence of being digital is more effective for them, they start converting their thing using current technology. They compose advanced pledged unit. This unit performing all their work digitally, like they start taking order digitally, take disbursement online, start delivering and creating trust among the customers. For this purpose, McD used online advertising that enabled McD to aware its customers and increased its demand. McD Used facebook, twitter and Instagram as well. McDonald introduced food photography and creates competitive edge as they asked customers to upload their meal pictures on social media and became world second brand in photographic trend. Digital marketing mix promotion is building more brand loyalty and growth of its sales (Arun,2022) 16

2.2.4 Place/ Distribution Channel: In marketing mix, distribution channels are not just about physical existence rather it involves all process needed to bring product to end consumer. McDonald’s uses different for example, In India McDonald’s is providing home delivery services also has introduced online APP technology to more facilitate its customers that has no doubt increased its sales, growth and revenues as well. 3.Conclusion: In this report first, I have discussed the history of McDonald’s and its current outlets in the world. Second, I mentioned the reason why I selected McDonald’s India for my literature review. Third, McDonald’s in India, market activities and technological impact on marketing activities. It is concluded from this report that McDonald’s aim is to capture the effectively and efficiently geographical segmentation by adjusting its products in local markets. McDonald's with development in current digital technological changes enabled to bring more effective innovations and quality service provider. The technological impact has strengthened the QSR market of McDonald's it will also help it to reduce its cost and optimal utilization of resources. McD still has maintained its leading position in fast food market by using online and off-line digital technology with the use of marketing mix strategies. 3.1.1 Product: McDonald’s provide Indian foods as per their religious practices. McD introduced mutton patty in place of beef and according to their vegetarian taste. McD provides hygienic and environmentally friendly products at realistic prices. 3.1.2 Price: McDonald’s uses different price strategies according to his competitor to take advantage and to maintain its leadership in the world. 3.1.3 Place: Place or distribution channels of McDonald’s has made Indian life more convenient as it introduced extensive hour service, Drive-Thru and others. 17

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