Indian Mc Donald PR

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Practical Application in Public Relations

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Table of Content

1.0 Introduction...pg.12.0 Phase 1: Formative Researchpg.2

2.1 Analyzing the ituation.pg.22.2 Analyzing the !rganization..pg."

2." Analyzing the Pu#lic.pg.$

".0 Phase 2: trategy...pg.%".1 &sta#lishing 'oals and !#(ectivespg.)

".2 Formulating Actions and Response trategies.pg.)

"." *sing &++ective ,ommunication.pg.11-.0 Phase ": actics...pg.12

-.1 ,hoosing ,ommunication actics..pg.12

-.2 Implementing the trategic Plan.pg.1"$.0 Phase -: &valuative Research.pg.1-

$.1 &valuating the trategic Plan..pg.1-

/.0 ,onclusion and Recommendations.pg.1$

%.0 Re+erences...pg.1$

1.0 Introduction

,ulture is the most important issue that needs to #e taen concern #y international

company. i++erent countries possess their on culture and li+estyle. his means that the

thining3 #ehavior and attitudes o+ people are di++erent +rom places to places. 4oreover3

TONG TIONG VEE APRIL 2012


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the dissimilar rules and legislation in di++erent countries ill de+initely a++ect

international #usiness lie 4conalds5.

4conalds5 is one o+ the orld leading restaurant chains. It operates more than "03000

restaurants in more than 100 countries on si6 continents today 7Advameg, Inc, 20128.

4conalds5 as +ounded in 19-0 #y to #rothers3 ic and 4ac. ince the +irst

+ranchise open in 19$"3 the company continues to e6pand its #usiness +rom * to *3

4osco and ,hina 7iloveindia.com, n.d.8. 4conalds5 opened its +irst restaurant in

elhi3 India in 199/ and second restaurant in the +inancial capital o+ India3 4um#ai. o

operate in India that possess e6act di++erent culture +rom *3 a creative and e++ective

strategic pu#lic relations planning is essential +or 4conalds5.

According to Ronald . mith5s strategic planning +or pu#lic relations 7PR83 e++ective and

creative planning is the heart o+ any PR and related activities. !rganization PR plan

should #e developed according to +our phases: Formative research3 strategy3 tactics and

evaluative research. ,are+ul planning allos company to monitor3 test and ad(ust the

strategies according to the situation3 hich ill then increase the percentage o+ success

and reduce the cost. hus3 the purpose o+ this paper is to analyze 4conalds5 pu#lic

relations plan in India using mith5s ;he


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2.0 Phase One: Formative Research

o have an e++ective pu#lic relations plan3 organization should +irst identi+y hat are the

positive and negative circumstances3 no matter is internally or e6ternally3 hich ill #e

+aced. In the +irst phase3 organization needs analyze hether the situation is an issue

management that under control or crisis management hen situation is out o+ control as

ell as organization5s opportunities and threats. hen3 organization needs to do a pu#lic

relations audit3 hich analyzes the company5s internal environment3 pu#lic perception3

and e6ternal environment in order to +igure out the strengths and eanesses o+ the

company. he last step o+ the +ormative research is to determine ho the organization

pu#lics are and to study on their characteristics.

2.1 Anal!in" the #ituation

he +irst step o+ mith5s strategic planning +or pu#lic relations is to analyze the situation.

he pu#lic relations plan to enter the India maret is an issue management +or

4conalds5. 4conalds5 is a#le to predict hat are the opportunities and o#stacles that

the company ill +ace through doing research on the maret. >y doing so3 4conalds5 is

a#le to avoid uncontrolla#le crisis.

>y having the orld second largest population 7Rosenberg, 201183 India undou#tedly isan opportunity +or 4conalds5 to e6pand their #usiness. he open maret +or glo#al

companies in India had provided a golden chance +or 4conalds5 to enter the maret as

ell. ?oever3 the co@sacred culture in India had #ecome a threat to 4conalds53 an

* company hich used to serve #ee+ as its ma(or ingredients. Furthermore3 India has the

highest vegetarians5 population in the orld 7Elizabeth, 20098. According to ?indu@,


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local culture and ha#its #etter than 4conald5 do. he variety o+ +ood ith accepta#le

price range has strengthened local restaurants competitive level too. here+ore3 the

acceptance +or American +ast@+ood and to change Indians5 perception had #ecome a

challenge to 4conalds5.

2.2 Anal!in" the Or"ani!ation

he second step is to analyze the internal environment3 pu#lic perception3 and e6ternal

environment o+ the organization. 4conalds5 must #e honest to itsel+ in order to clari+y

the strengths and eanesses o+ the company. In addition3 to hat e6tent 4conalds5 is

non in India and ho the pu#lic perceived the organization is essential +or the

company. Analysis o+ India5s political3 economic3 and social and technology +actors as

ell as the nature o+ any rivalry that may e6ist must #e done too.

2.2.1 Internal &nvironment

4conalds5 is non +or selling consistent3 simple3 lo@priced American +ood ith +ast

service 7Hassan, 20118. he +ranchise strategy had led the company to gro e6tremely

+ast hile the introduction o+ Ronald 4conalds had turn its #urger into most +amous

#urger. Bith its strong #acground3 4conalds5 is a#le to mae huge investment to

support any o+ its plans include necessary researches. 4oreover3 the company is illingto adapt ;glocalization= through changing their strategy according to the culture

di++erences. he implementation o+ 4conalds5 system also allos the company to

control at every stage +rom procurement to serving. his is to ensure the 4conalds5

philosophy o+ Cuality3 ervice3 ,leanliness and Dalue 7C,D8 is #eing achieved.

raining is provided to all sta++s and +ood sa+ety is taen seriously #y the organization.

2.2.2 Pu#lic Perception

he +amous o+ 'olden Arches is not oring in India. uring 199/3 hen Indians as

aaening to the glo#al call3 the Indians perceived estern products and services as

higher Euality and e6pensive. 4ost o+ the citizens ho considered 4conalds5 as a

sym#ol o+ American culture had recognize 4conalds5 as another e6ample o+ the

everlasting spread o+ Bestern companies into di++erent countries or communities3 hich



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is creating a glo#al system that ealth ill +loed out +rom local economies into very

+e and rich aristocracies5 hands 7Kl!arni " Lassar, 20098.

2.2." &6ternal &nvironment

India is non to #e a country that treats omen as in+erior to men. Female in+ants used

to #eing #uried right a+ter they ere #orn and omen are living ith a very lo status in

India. hey don5t have the rights to study lie men do. hus3 the government as trying

to implement eEual rights policy to all citizens regardless the gender3 race3 and religious.

he government anted to provide a minimum standard o+ living to the citizens

hoever3 these promises have not #een +ul+illed up to date 7#a$i, 19%&8.

&conomy +actors in India are groing continuously +rom -19."$2 * dollars gross

domestic product #ased on purchasing@poer@parity 7PPP8 per capita 'P in 19)0 to

12"/.)") * dollars in 199/ 7Inde$ 'ndi, 20118. his had indicated that Indians5

purchase poer are increasing rapidly +rom year to year plus the open maret +or glo#al

companies in 199/ had #ecome an opportunity +or 4conalds5 to enter this potential

maret.


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the nutrition due to these snacs has lo nutrition. As a result3 #urger3 hich had #een

perceived as snac in India3 can stand a chance to gra# consumers5 attention i+ the taste is

suita#le +or the Indians.

he in+ormation technology in India is #asically #ased on the radio3 hich has the highest

rate o+ audience3 television 7hich is +ully under government control83 and telephones

7(IA, 199)8. It5s an urge +or the country to +urther develop their technologies to meet

glo#al Euality and standard. In this case3 entrance o+ 4conalds5 has played a role in

#ringing ne technologies to India as ell as increase Indians5 living Euality and

standard.

2.$ Anal!in" the Public

he third step is to identi+y and then analyze ho 4conalds5 pu#lic are under the +our

categories o+ pu#lic G customers3 producers3 ena#lers3 and limiters. he pu#lic5s ey

characteristics and their in+luences on the company should #e come under consideration

too. ,ustomer is the one ho consume 4conalds5 products or services no matter it is a

primary or secondary customer. hose ho provide input to 4conalds5 are categorized

under producers hile ena#lers are those ho set norms or standard to the organization.

Finally3 limiters are those ho might reduce or undermine 4conalds5 success.

2.".1 ,ustomers

Price sensitivity is still critical in India although the purchase poer in India had risen as

a result3 4conalds5 need to select speci+ic marets to target. Researches indicated that

children have the poer to in+luence parents5 #uying process 7'anglebrg " +ech,

19908. 4conalds5 had noticed on this ne phenomenon and decided to set children in

dual@income +amily as its ey pu#lic. 4conalds5 may introduce children5s menus or

o++er +ree toys to target on the children. I+ the company is a#le to attract the children

attention3 parents ill automatically #e in+luence and then #ecome 4conalds5

customers.



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Furthermore3 the in+luences o+ American culture #rought to Indian youngsters had created

another target maret +or 4conalds5. Parents ho need to rela6 a+ter oring +or a day

is one o+ 4conalds5 consumers5 marets. Automo#ile driving consumers3 cinema and

shopping mall lovers3 and middle@class Indians are 4conalds5 potential consumers.

4conalds5 can o++er 4c elivery services to those tired parents and open its outlet in

shopping comple6 and petrol stations.

2.".2 Producers

4conalds5 employees in India itsel+ are one o+ the producers ho ill #ring #ene+its to

the company due to their engagement and per+ormance ill directly in+luence consumers5

perception on the company. 4conalds5 should provide high class training to the

employees so that they have the appropriate Euali+ication to per+orm #etter in operation

and in service Euality.

Alternatively3 the relationships ith suppliers and distri#utors o+ 4conalds5 in India3

hich include riaya Ariculture 7supplier o+ Ice#erg Hettuce83 Dista Process Foods Pvt

Htd 7supplier o+ chicen and vegeta#le products83 ynami6 iary 7supplier o+ cheese83

Amrit Food 7supplier o+ long li+e *? 4il and mil products +or +rozen desserts83

Radharishna Foodland 7distri#ution center8 and Ham# Beston 7potato +arming83 illdetermine hether 4conalds5 could achieve its philosophy o+ C,D and its o#(ective

to minimize the production costs. hrough giving e6clusive products supplier authorities

that #ring huge pro+its to these suppliers and distri#utors might enhance their loyalty to

4conalds5.

2."." &na#lers

India5s government ho set the rules and regulations #ecome one o+ the pu#lic that need

to #e taen concern #y 4conalds5. Any changes o+ the government policies can a++ect

4conalds5 operations. here+ore3 4conalds5 should pay more attention on its

relationships ith India5s government. In addition to that3 the #ene+its o+ the (oint@venture

partnership ith to Indian #usinessmen3 Amit atia and Diram >ashi need to #e taen

into consideration #y 4conalds5 in order to get in@in situation. !ther partnerships



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ith >P,H 7>harat Petroleum ,orporation Himited83 ?P,H 7?industan Petroleum

,orporation Himited83 railay stations and #us stations ill add values to #oth parties

too.

4edia in India3 on the other hand3 has the poer to shape pu#lic perception and help

4conalds5 to success ?ence3 4conalds5 need to put more e++ort in #uilding

relationship ith the media and create positive nesorthy +or media to report. he

poer o+ ord o+ mouth 7B!48 created #y e6isting customers can a++ect other potential

consumers to visit 4conalds too. 4conalds5 should provide great e6perience to the

customers so that they ill in+luence person around them to visit 4conalds5.

Degetarians3 health and nutrition3 animal el+are and environment campaigners are the

opinion leaders o+ their +ans. hey are a#le to in+luence pu#lic opinion and indirectly

a++ect 4conalds5 success+ulness. 4conalds5 should care+ully plan +or campaigns

hich are a#le to sho these campaigners that 4conalds5 does care on their concern.

2.".- Himiters

Hocal restaurants are the main competitors o+ 4conalds5. 4conalds5 needs to or

hard to gain more maret share conseEuently due to local restaurants understand local

eating ha#its3 taste and culture more than 4conalds5 do. here+ore3 the (oint@venturestrategy ith local #usinessmen is a good decision +or 4conalds5. Food and #everages

industries in India3 no matter local or international3 ill #ecome competitors and

opponents o+ 4conalds5. 4edia and the activists3 in contrast3 can ruin 4conalds5

#usiness as ell hen 4conalds5 is una#le to stay in step ith them.

$.0 Phase T%o: #trate"

A+ter gathering the data needed3 clear and inspire goals are essential to +urther esta#lish

relevant pu#lic relations tactics and strategies. i++erent o#(ectives to target di++erent

pu#lics as ell as to no hat to achieve in a speci+ic time need to #e set in order to

achieve the ultimate goals. hese goals and o#(ectives determine hat strategies and

tactics should #e taen ithout increase unnecessary cost.



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$.1 &stablishin" 'oals and Ob(ectives

he +ourth step o+ the strategic planning is to set challengea#le goals and o#(ectives +or

the organization. ?oever3 4conalds5 India is operating according to its vision and

C,D philosophy hich is di++erent +rom hat mith stated. I+ 4conalds5 India did

create particular goals and o#(ectives that need to #e accomplish3 it may #e a#le to carry

out #etter strategies and to no to hat e6tent the company had #een.

4conalds5 vision in India is to #e India5s #est Euic service restaurant e6perience.

Instead o+ 'olden Arches hich seems nothing to Indians3 4conalds5 anted to

position itsel+ as a +amily restaurant. his vision is supported #y 4cdonalds5 philosophy

o+ C,D as ell as its values hich are listed as #elo 7H.R..L., 20108:

Place customers e6perience at the core o+ hat the organization do

Are committed to its people

>elieve in 4conalds5 system

!perate #usiness ethically

'ive #ac to the communities

'ro the #usiness pro+ita#ly

trive continually to improve

$.2 Formulatin" Actions and Res)onse #trate"ies

In the +i+th step3 organization is going to determine hat actions and response strategies

should #e taen in order to achieve company5s goals and o#(ectives. 4conalds5 India is

doing Euite ell in +ormulating actions and response strategies. he company engages in

#oth pro@active and re@active strategies according to the changes o+ situation.

First3 4conalds5 had taen pre@emptive action strategy #y predicting the using o+ #ee+

ill #ecome an important issue in India. hus3 the organization used alliances and

coalitions strategy through involving in (oint@ventures partnership ith to Indian

#usinessmen3 Amit atia and Diram >ashi3 one year #e+ore they open their +irst

4conalds5 restaurant there to in+orm local people that 4conalds5 India is running #y

Indians ho no their culture #etter. hese #usinessmen help 4conalds5 to operate



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4conalds5 in India hile in e6change 4conalds5 provide management trained +or

their management team in 4conalds5 restaurant in Indonesia and *A.

4oreover3 4conalds5 is illing to adapt on the di++erent culture o+ India using

organizational per+ormance strategy. 4conalds5 decided to change their ingredients

according to India5s culture #y a#andoning #ee+ and por at all and implement ne

vegetarian menus. 4conalds5 introduced 4cAloo ii J and 4cDeggies J3 hich

are totally made #y vegetarians5 ingredients3 especially +or the vegetarians. ,hicen3 lam#

and +ish is added to the options +or non@vegetarians in order to replace #ee+ or por in the

menus.

4conalds5 separated #oth vegetarians and non@vegetarians cooing and serving process

ith a transparent itchen. ,onsumers could see its hole operations and sta++s ho are

oring ith vegetarians5 +ood ill ear green aprons. hese moves are to convince the

vegetarians that 4conalds5 do really care a#out their ;hudh haahari &6perience= G

pure vegetarians5 e6perience.

!n the contrary3 hen animal el+are and environment campaigners critic 4conalds5

+or not treating the animal nicely during the slaughter process and maing theenvironment condition orse3 4conalds5 invest +ortune on promoting itsel+ as

environment +riendly corporation through using recycle materials +or pacaging3

implementing various campaigns and sponsorships. In addition to that3 hal+

advertisements o+ the radio3 television3 print and internet ere +ocus on promoting ;go@

green=3 healthy products and li+estyle to counterattac the critics on 4conalds5. At the

same time3 4conalds5 used de+ensive response strategy through arguing that the

treatment to the animals is comes under la3 hich should #e the concern o+ the

government.

>urger is perceived as snac and unhealthy +ood in India. o overcome these

circumstances3 4conalds5 is the +irst +ast@+ood company that introduces nutritional

in+ormation to the consumers. his is to set 4conalds5 image that it concern on



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consumers5 health3 unlie hat the activists said. 4conalds5 also engage in donations

and +und raising campaign to help local children and raise omen status in India to #uild

their reputation and image.

o implement 4conalds5 C,D philosophy3 4conalds5 in India spent +e years and

money in setting up a success+ul supply chain #y #ringing 4conalds5 system +rom *.

Indians5 suppliers supply more than 9/ products and materials to 4conalds5. hen3 to

maintain +reshness and nutrition value o+ +oods3 cold chain had #een esta#lished. Process

+rom cold chain system until reach the customers is under e6amination o+ 4conalds5

Cuality Inspection Program 7CIP8 to ensure that all products are in per+ect condition.

4conalds5 de+end itsel+ #y telling the Indian pu#lic that 4conalds5 is di++erent +rom

other estern companies. 4conalds5 contri#ute their pro+its into local community

through the ,R and ,D programs. &mploying local citizens and purchase +rom local

suppliers help stimulate local economy and provide opportunity +or them to gro. !ther

,R programs such as raising +unds +or children3 running campaign to raise omen

status in India3 and sponsor Euite a large amount o+ money to the schools are used to

create nesorthy in+ormation.

o enter the small cities in India3 4conalds5 decided to decrease their selling price3 this

had success+ully increase 2$ o+ customers. Hater3 partnership ith >P,H 7>harat

Petroleum ,orporation Himited8 and ?P,H 7?industan Petroleum ,orporation Himited8

targeting on automo#ile driving consumers and partnership ith railay stations and #us

stations to target potential middle@class Indians had #ecome a strategy used #y

4conalds5 to e6pand its #usiness. o target cinema and shopping comple6 lovers3

outlets had #een set up.

$.$ *sin" &ffective Communication



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he si6th step is to analyze ho the organization is a#le to stand out +rom other

organizations5 messages hether using in+ormation3 persuasion or dialogue as

communication approach.

In choosing the communication approach3 4conalds5 is +ocus on persuasive

communication3 hich includes ethos3 logos and pathos message appeals3 using +amily

hich has children as spoesperson. Bhen 4conalds5 +irst enter the India maret3 it

positioned itsel+ as a +amily restaurant ith as slogan o+ ;4conaldKs mein hain uch

#aat=3 hich mean ;there5s de+initely something a#out 4conalds5 to motivate and

encourage people to visit 4conalds5 +or the +irst time. 4conalds5 advertisements ere

shoed in story@lines hich +ocus on emotions to portray itsel+ as a place that provides

+ull satis+action and e6citement e6perience to +amilies hich have ids and youngsters.

Families had #een used as spoesperson in the advertisements.


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A+ter developing the strategies3 organization is no going to determine ho to

communicate ith its audience through di++erent communication tactics and to set the

#udget and timeline to implement the strategies e++ectively.

+.1 Choosin" Communication Tactics

In the seventh step3 organization needs to choose the e++icient communication tools and

tactics that can #e used #y the company to spread the messages. hese media

communication tactics are put into +our categories #y mith hich are interpersonal

communication3 organizational media3 nes media and advertising and promotional

media.

uring 199/3 internet as not ell@esta#lish in India yet. 4conalds5 communication

tactics are mainly #ased on outlet design3 ne store opening and pu#lic relations riting

sills in emphasizing 4conalds5 attempts to tailor menu according to Indian taste and

culture until 2000 7(hatrvedi, 200%8. Bhen 4conalds5 had gained the needed

e6plosion and ready to advertise #y 20003 nes media such as television and radio had

#een used as communication tools. 4conalds5 +ound out advertisements ith graphics

and audio that using ids and emotional appeals to display +amily ties and +un at

4conalds5 are easier to capture Indians5 psychological emotion.

!n the other hand3 4conalds5 ?appy 4eals ith Hego toys and promotional schemes in

schools or +igures o+ Ronald 4conalds5 ere used to attract the lo##yist o+ one +amily G

children. 4conalds5 implemented interpersonal communication targeted on children to

#uild its reputation and #rand image in India. hey organized interschool arts competition

and raise +unds +or charity on Borld ,hildren5s ay. hey also supported educational

programs +or girl@child and promote goodill to improve omen status in India3 hich is

non as ;>lue ot=. In


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num#ers o+ employment opportunities as ell as long@term career to local people

especially the youngsters. &ach +ranchise o+ 4conalds5 employ average o+ $0 sta++s

includes managers. >esides3 the 4conalds5 potato +arming in 'u(arat had #rought many

#ene+its to the +armers hile driving the development o+ India5s economy. 4conalds5

also implement LHitter Patrols5 here employees ill clean up the gar#age that maret

le+t #ehind every day to ensure a cleaner neigh#orhood.

+.2 Im)lementin" the #trate"ic Plan

o implement the communication tactics and strategies developed #e+ore3 organization

should plan +or the #udget and timeline in this step. !rganization should calculate the

#reaeven point in the end o+ this step too.

i6 years #e+ore 4conalds5 entered India3 the company and its international suppliers

had colla#orated ith local companies to esta#lish products and supply chains that could

meet 4conalds5 +ood Euality demand as ell as minimize the operating costs 7-ash,

200&8. 4conalds5 even imported its +ood processing technologies +rom * to India to

improve India technology a#ility.

4conalds5 +irst targeted on ur#an cities in India. he company invested Rs 100 cocre+or the e6pansion in


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" Lassar, 20098. Furthermore3 to continuously increase 4conalds5 reputation and #rand

image3 the company is cele#rating ,hildren5s ee every year +rom y loer don the selling price hen 4conalds5 tried to enter India small cities3 it has

success+ully increase 2$ o+ customers. Additionally3 ith the esta#lishment o+ localsupply chain and local +arming3 4conalds5 announced that its operations had come into

#rea even and had e6panded its #usiness to )0 outlets in ecem#er 200" even though

4conalds5 had sloed don in its orldide e6pansion.

In 200/3 4conalds5 India has e++ectively e6panded its #usiness around 100 restaurants.

At the same time3 India had #een identi+ied as 4conalds5 top 10 marets. &ach

4conalds5 outlet employed an average o+ $0 employees over a total o+ $000 employees.


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According to mith5s strategic planning +or pu#lic relations3 to success in pu#lic relations

plan3 organization must +ollo the mith5s model and each phase and steps should #e

taen seriously due to they are correlated. A+ter analyzing 4conalds5 PR plan in India3 I

ould lie to conclude that 4conalds5 did +ollo the +our phases and nine steps o+

mith5s PR strategic planning. &ach phase and step had #een analyzed clearly. he

adeEuate strategic communication and pu#lic relations strategies implemented

4conalds5 had +inally lead 4conalds5 to #ecome the largest and most recogniza#le

#rand in India.

usiness escription3 ?istory3 >acground In+ormation on 4conalds5 ,orporation.

Retrieved 4arch 203 20123 +rom

http:NN.re+erence+or#usiness.comNhistory2N$/N4conald@s@,orporation.html

>a6i3 *pendra 719)$8. aing u++ering eriously: ocial Action Hitigation in theupreme ,ourt o+ India. +hird /orld Legal tdies, 13, 1045162.

,haturvedi Preeti 7200)8. 7er localized me, Ho 'c-onalds8 evolved its mar!eting in

India. BAR,.

,IA he Borld Fact >oo 7199/8. India. Retrieved 4arch 203 20123 +rom

http:NN.umsl.eduNservicesNgovdocsNo+act9/N121.htm



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ash ishore 7200$8. 4conalds5 in India. +hnderbird, +he arvin chool o:International 'anagement, 152&.

&liza#eth 720098. 10 >est ,ountries +or Degetarian and Degan ravel. Retrieved 4arch203 20123 +rom http:NNgogreentravelgreen.comNgreen@restaurant@+oodN10@#est@countries@

+or@vegetarian@or@vegan@travelN

?assan auEeer 720118. A hort ?istory o+ 4conalds. Retrieved 4arch 203 20123 +romhttp:NN.+ast+ood.comN+ast@+ood@chainsNa@short@history@o+@mcdonaldsN

?indu@,


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4angle#urg .F. and Dirginia ech 719908. ,?IHR&

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