TABLE OF CONTENTS ACKNOWLEDGMENT ABSTRACT PART 1: INTRODUCTION....................................................................................................1 1.1. Brief about McDonald’s................................................................................................1 1.2. Target customers and target market ...........................................................................3 1.3. Objective: to analyze the impact of Indian culture on consumer behavior ............. 4 PART 2: BODY PART.............................................................................................................6 2.1. Definition of culture and related factors ..................................................................... 6 2.1.1. Definition of culture ............................................................................................ 6 2.1.2. Characteristics of culture..................................................................................... 6 2.1.3. Related factors .................................................................................................... 7 2.1.4. Culture affects on consumer behavior ................................................................ 7 2.2. Definition of consumer behaviour................................................................................9 2.3. Culture of India ...........................................................................................................10 2.3.1. Language ........................................................................................................... 10 2.3.2. Religion .............................................................................................................. 11 2.3.3. Joint Family System ........................................................................................... 12 2.3.4. Festivals ............................................................................................................. 12 2.3.5. Foods ................................................................................................................. 13 2.3.6. Fasting ............................................................................................................... 13 2.3.7. Traditional Clothing ........................................................................................... 14 2.3.8. Business culture................................................................................................. 14 2.4. Consumer behaviour in purchasing McDonald’s in India ...................................... 15 2.4.1. Psychological Factor .......................................................................................... 15 2.4.2. Cultural Factor ................................................................................................... 16 2.4.3. Social Factor ...................................................................................................... 17 2.4.4. Personal Factor.................................................................................................. 17 2.5. Analyse the impact of culture on consumer behaviour in India ............................. 18 CONCLUSION ....................................................................................................................... 22 References................................................................................................................................ 23 ACKNOWLEDGMENT First of all, I would like to most respectfully thank PhD.Dao Cam Thuy and MS.Hoang Trong Truong thank for teaching and imparting valuable knowledge to me during the study of Customer Behavior during the semester. Recently studied at the University of Economics. Since then, I have gained solid knowledge to equip myself after completing university. Next, I would like to thank the school for allowing me to study Customer Behavior during my studies. This subject will help me a lot not only in work but also in life later. I am aware that my ability has many limitations, so my essay will inevitably have errors. I look forward to receiving criticism in the process of assessing the grade of the assignment and your comments to improve my essay work. Thank you sincerely! Students perform Dinh Huyen My ABSTRACT Culture is the collection of values, customs, norms, arts, social institutions and intellectual achievements of a particular society. The study of culture is a challenging undertaking because its main focus is on the broadest component of social behavior - society as a whole, or comparing and contrasting cultural differences and similarities. culture and more than one culture. In a country as diverse as India, cultural factors have the broadest and most profound influence on consumer behavior. The impact of culture is automatic and virtually invisible. McDonalds was founded in India about 24 years ago. It now has more than 400 stores and is one of the most loved fast food chains by Indians. In the early stages of entering the market, McDonald''s faced cultural, political and environmental factors that hindered McDonald''s while dominating the Indian market. This essay focuses on the cultural influences that McDonald''s encountered when entering the Indian market. It is important to know behavior related to culture as it is one of the main causes of changes to the market and consumer behavior. PART 1: INTRODUCTION 1.1. Brief about McDonald’s McDonald''s was an American fast-food corporation, the world’s largest fast-food chain in the world that was founded in 1940, which was owned by Richard and Maurice McDonald, in San Bernardino, California, United States. (The Editors of Encyclopaedia Britannica, 2020). Today, with approximately 36,000 outlets worldwide, McDonald’s served over 69 million customers daily in over 119 countries. McDonald''s is not only popular for beef hamburgers and French fries with soda drinks as a set meal, they also have other menus such as chicken products, breakfast series and desserts. 1 McDonald’s brand mission is to be their customer’s favourite spot and way to eat and drink. McDonald''s is about a superior customer experience - people, products, places, prices and promotions. McDonald’s commits to constantly enhancing the experience of consumers, improving the operations by providing high quality food and outstanding service, in a clean and welcoming environment and at great value. First restaurant of McDonald’s in India opened on October 13,1996 in New Delhi. IMcDonald''s philosophy of QSCV (Quality, Service, Cleanliness and Value) is the guiding force behind its service to the customers in India. McDonald''s India has earned tremendous trust and respect of customers in India since the opening of the first McDonald''s.
VIETNAM NATIONAL UNIVERSITY UNIVERSITY OF ECONOMICS AND BUSINESS -🕮 - CONSUMER BEHAVIOR ASSIGNMENT: Analysis the impact of Indian culture on consumer behavior of McDonald’s SEMESTER 1, ACADEMIC YEAR 2020 - 2021 Lectures: PhD Dao Cam Thuy MS Hoang Trong Truong Student: Dinh Huyen My Student ID: 18050771 Class : QH-2018E QTKD CLC Course code: BSA3013-E*2 Hanoi, 12/2021 TABLE OF CONTENTS ACKNOWLEDGMENT ABSTRACT PART 1: INTRODUCTION 1.1 Brief about McDonald’s 1.2 Target customers and target market 1.3 Objective: to analyze the impact of Indian culture on consumer behavior PART 2: BODY PART 2.1 Definition of culture and related factors 2.1.1 Definition of culture 2.1.2 Characteristics of culture 2.1.3 Related factors 2.1.4 Culture affects on consumer behavior 2.2 Definition of consumer behaviour 2.3 Culture of India 10 2.3.1 Language 10 2.3.2 Religion 11 2.3.3 Joint Family System 12 2.3.4 Festivals 12 2.3.5 Foods 13 2.3.6 Fasting 13 2.3.7 Traditional Clothing 14 2.3.8 Business culture 14 2.4 Consumer behaviour in purchasing McDonald’s in India 15 2.4.1 Psychological Factor 15 2.4.2 Cultural Factor 16 2.4.3 Social Factor 17 2.4.4 Personal Factor 17 2.5 Analyse the impact of culture on consumer behaviour in India 18 CONCLUSION 22 References 23 ACKNOWLEDGMENT First of all, I would like to most respectfully thank PhD.Dao Cam Thuy and MS.Hoang Trong Truong thank for teaching and imparting valuable knowledge to me during the study of Customer Behavior during the semester Recently studied at the University of Economics Since then, I have gained solid knowledge to equip myself after completing university Next, I would like to thank the school for allowing me to study Customer Behavior during my studies This subject will help me a lot not only in work but also in life later I am aware that my ability has many limitations, so my essay will inevitably have errors I look forward to receiving criticism in the process of assessing the grade of the assignment and your comments to improve my essay work Thank you sincerely! Students perform Dinh Huyen My ABSTRACT Culture is the collection of values, customs, norms, arts, social institutions and intellectual achievements of a particular society The study of culture is a challenging undertaking because its main focus is on the broadest component of social behavior society as a whole, or comparing and contrasting cultural differences and similarities culture and more than one culture In a country as diverse as India, cultural factors have the broadest and most profound influence on consumer behavior The impact of culture is automatic and virtually invisible McDonalds was founded in India about 24 years ago It now has more than 400 stores and is one of the most loved fast food chains by Indians In the early stages of entering the market, McDonald's faced cultural, political and environmental factors that hindered McDonald's while dominating the Indian market This essay focuses on the cultural influences that McDonald's encountered when entering the Indian market It is important to know behavior related to culture as it is one of the main causes of changes to the market and consumer behavior PART 1: INTRODUCTION 1.1 Brief about McDonald’s McDonald's was an American fast-food corporation, the world’s largest fast-food chain in the world that was founded in 1940, which was owned by Richard and Maurice McDonald, in San Bernardino, California, United States (The Editors of Encyclopaedia Britannica, 2020) Today, with approximately 36,000 outlets worldwide, McDonald’s served over 69 million customers daily in over 119 countries McDonald's is not only popular for beef hamburgers and French fries with soda drinks as a set meal, they also have other menus such as chicken products, breakfast series and desserts McDonald’s brand mission is to be their customer’s favourite spot and way to eat and drink McDonald's is about a superior customer experience - people, products, places, prices and promotions McDonald’s commits to constantly enhancing the experience of consumers, improving the operations by providing high quality food and outstanding service, in a clean and welcoming environment and at great value First restaurant of McDonald’s in India opened on October 13,1996 in New Delhi IMcDonald's philosophy of QSCV (Quality, Service, Cleanliness and Value) is the guiding force behind its service to the customers in India McDonald's India has earned tremendous trust and respect of customers in India since the opening of the first McDonald's Following its philosophy of being sensitive to local food and cultural preferences, India was the first country in the McDonald's system where it served non-beef and nonpork products More than 70 percent of the menu in India has been locally developed with complete segregation of vegetarian and non-vegetarian products right from the food processing plants to the point of serving the customers 1.2 Target customers and target market The following table illustrates McDonalds segmentation, targeting and positioning: Type of segmentation Segmentation criteria McDonald’s target segment Region Restaurants in Northeast area are more than in Southwest Density Urban Age – 45 Gender Males & Females Life-cycle stage Bachelor Stage: young, single people not living at home Geographic Newly Married Couples: young, no children Demographic Full Nest II: youngest child six or over Income Low and middle Occupation Students, employees, professionals Degree of loyalty ‘Hard core loyals’ and ‘Switchers’ Benefits sought Cost benefits, time efficiency Personality Easygoing & careless User status Potential and regular fast food eaters Social class Lower, working and middle classes Lifestyle Convenience Behavioral Psychographic ⇒ The main target segments are children, youth and the young urban family McDonald’s uses the ‘adaptive’ type of product positioning According to their most recent SEC filings (2019), McDonald’s “is engaged in periodical re-positioning of products and services according to changes in the segment“ Customer Perception: Customer perception is a key factor affecting a product’s success Many potentially revolutionary products have failed simply because of their inability to build a healthy perception about themselves in the customers’ minds McDonald’s being an internationally renowned brand brings with it certain expectations for the customers Target Customer What is McDonald’s for them? A family with A treat to children, a fun place to be for the children children Urban customers Great taste, quick service without affecting the work schedule Teenagers Hangout with friends, but keep it affordable 1.3 Objective: to analyze the impact of Indian culture on consumer behavior Major problem for McDonalds to enter the Indian market was Indian diversity, religious and cultural constraints, environmental and animal activists opposed the entry of fast food chains, health concerns of the people, perception that McDonalds was for rich people, poor transportation and storage infrastructure and lower quality agricultural products Presence of a fierce competitive fast food market with huge players like KFC, Pizza Hut etc The most important problem was the ban on beef in India and the majority population being vegetarian One of the recent problems that McDonald’s faced is closing of its 169 outlets in North and East India because of a protracted legal fight between the fast food chain and its estranged partner Vikram Bakshi Survey commissioned by McDonald’s showed a large eating out market in India with an increasing propensity to spend by customers There is a large eating out market in India with an increasing propensity to spend by customers Indians wanted to taste American fast food, but it could not be a substitute for Indian food Hence Adapting McDonald’s menu to Indian taste was crucial if they were to succeed in India Half of the Indian population was vegetarian for whom a separate menu was to be created and a new line of burgers was introduced by McDonalds PART 2: BODY PART 2.1 Definition of culture and related factors 2.1.1 Definition of culture Culture is a total way of life of people living together Culture refers to a set of values, ideas, artifacts, and other meaningful symbols that help individuals communicate, interpret, and evaluate as members of society (Bello, 2008) Culture is the sum total of learned beliefs, values, and customs that serve to direct the consumer behaviour of members of a particular society (Leon and Leslie, 2003) Cultural values express the collective principles, standards, and priorities of a community Culture and its values are transmitted from one generation to another, and individuals learn values and culture through socialization and acculturation 2.1.2 Characteristics of culture When talking about culture, it is impossible not to mention the basic characteristics of this element: - Culture is learned and inherited: Culture is the process of learning and understanding by members of a society The community determines the behavior of the individuals and individuals must learn and follow the community's rules of behavior to ensure integration and development - Cultures have both similarities and differences: Cultures between regions within a country or between one country and another country always have similarities to consume products and avail services that everyone else is consuming, whereas in the United Kingdom and United States people are more inclined to make their own individual decisions based on personal preferences and tastes 2.2 Definition of consumer behaviour Consumer behavior is the study of how individuals, groups and organizations select, buy, use and dispose of goods, services, ideas, or experiences to satisfy their needs and wants (Kotler and Keller, 2006) Studying consumers provides clues for improving or introducing products or services, setting prices, devising channels, crafting messages, and developing other marketing activities (Kotler, et al., 2008) Consumer behavior is concerned with: - Purchase activities: the purchase of goods or services; how to acquire consumers products and services, and all the activities leading up to a purchase decision, including information search, evaluation of goods and services and payment methods including the purchase experience - Use or consumption activities: concerns the who, where, when and how of consumption and the usage experience, including the symbolic associations and the way that goods are distributed within families or consumption units - Disposal activities: concerns the way that consumers dispose of products and packaging; may also include reselling activities such as eBay and second-hand markets Marketers expect that by understanding what causes the consumers to buy particular goods and services, they will be able to determine – which products are needed in the marketplace, which are obsolete, and how best to present the goods to the consumers 2.3 Culture of India India, officially the Republic of India, is a country in South Asia India has 28 states and union territories with different cultures and it is the second most populated country in the world The current population of India is 1,400,013,310 (Dec 23, 2021), 35% of the population is urban, the median age in India is 28.4 years Indian culture, often labelled as a combination of several cultures, has been influenced by a history that is several millennia old, beginning with the Indus Valley Civilization and other early cultural areas Many elements of Indian culture, such as Indian religions, mathematics, philosophy, cuisine, languages, dance, music and movies… 2.3.1 Language The first language in the Republic of India is Standard Hindi, and English the second official language Languages in India belong to a number of different language systems, among them the Indian language system (spoken by 72% of Indians) and the Dravidian system language (spoken by 25% of Indians) India has a total of 22 co-language formulas India's population is large, but it does not have the same language as neighboring China "India is the cradle of people, the mother of the voice, the mother of history and the grandmother of tradition" - Mark Twain 10 2.3.2 Religion In India, religion and philosophy are extremely developed, some of the main religions in India: Hinduism (80.5% of the population), Islam (13.4%), Christianity (2 .3%), Sikhism (1.84%), Buddhism (0.76%), Jainism (0.4%), and some other religions Normally, businesses investing in India need to pay attention to four issues about religion in India, which are: Religion dominates; The importance of religion in society; The degree of homogeneity of religion and Freedom of belief in society Religion can affect people's daily activities and hence business activities as below features: - Hinduism: Hindus worship cows and not eat foods made from cows Slaughtering cows in India is a taboo subject, beef here is not used Article 48 of the Indian Constitution authorizes the Government to prohibit the slaughter of cows - Islamic: Muslims not drink alcohol and fermented drinks and abstain from eating pork 11 2.3.3 Joint Family System The Joint family system is the prevailing system of Indian culture Most noteworthy, the family members consist of parents, children, children’s spouses, and offspring All of these family members live together Furthermore, the eldest male member is the head of the family This stems mainly from the cohesion of Indian society At the same time, when living together, people can support and help each other deal with difficulties, pressures or stress in life 2.3.4 Festivals India celebrates a huge number of festivals These festivals are very diverse due to multi-religious and multi-cultural Indian society Indians greatly value festive occasions 12 Above all, the whole country joins in the celebrations irrespective of the differences Traditional Indian food, arts, music, sports, clothing, and architecture vary significantly across different regions These components are influenced by various factors Above all, these factors are geography, climate, culture, and rural/urban setting 2.3.5 Foods Food is an important part of Indian culture, playing a role in everyday life as well as in festivals In many families, everyday meals are sit-down affairs consisting of two to three main course dishes, varied accompaniments such as chutneys and pickles, carbohydrate staples such as Rice and Roti (bread), as well as desserts Food is not just important for eating, but it is also a way of socializing, getting together with family, relatives and friends In Indian, the cow is worshiped as the image of a mother and carries many auspicious meanings in Indian culture and religion Killing cows or using beef is considered a sin So many states in India have put a ban on the slaughter of cows into law 2.3.6 Fasting Fasting is an integral part of India's Hindu culture The origins of fasting probably go back to a ritual in the Vedas Fasts or Vrats or Upvas are a way to express one's determination or express gratitude to gods and goddesses in Hindu culture Indians 13 believe that fasting is a way to cut off the demands of the body, punishing oneself to cleanse oneself of the sins committed from before until the beginning of the fast Depending on the specific occasion, the fasting process will have its own rules and regulations 2.3.7 Traditional Clothing Traditional dresses of India vary from one part of the country to another based on geography, climate, ethnicity, and culture In the era of westernization and globalization, India has managed to preserve its culture through the garments worn Traditional Indian clothes are especially a staple in celebrations such as weddings and festivals Dress styles include traditional Saree for women and traditional Dhoti for men To sum it up, the culture of India is one of the oldest cultures in the world Above all, many Indians still stick to the traditional Indian culture in spite of rapid westernization Indians have demonstrated strong unity irrespective of the diversity among them Unity in Diversity is the ultimate mantra of Indian culture 2.3.8 Business culture Indian people: - Indians are very hospitable 14 - Indians are very creative: Indian art and architecture has been very developed since ancient times - Indian intellectual ability: With the current rapid population growth rate, soon India will be the most populous country in the world, and they will be the country providing human resources for the world, especially when the world's population is shrinking grows slowly and tends to age, even in China In work and transactions: - Indians not pay attention to time: - A day that starts late and ends late: Usually working mornings in India start late, usually at 10am or 10:30am Indians also often eat late at night - Before signing up for any trip to India, double-check the religious holidays calendar - Calling others by their last name: Don't immediately call another person's name, only when you are close can you call a person by name - Don't shake hands with women: In general, you shouldn't shake hands with women, but other people won't be too upset if you - Give a gift 2.4 Consumer behaviour in purchasing McDonald’s in India 2.4.1 Psychological Factor There are four main factors affecting consumer behavior These are motivation, perception, learning and beliefs and attitudes First is motivation The level of motivation can affect the buying behavior of customers Every person has different needs such as physiological needs, social needs, esteem needs, safety needs and so on The nature of the needs is that some of the needs are more important than the others Therefore needs become a motivation when it is more pressing than the other and direct the consumer to seek satisfaction For instance, McDonalds will create more and different types of food items which are delicious such as Burgers, fries, wraps , etc Finally, customers possess different attitudes and beliefs towards various products Such attitudes and beliefs make up brand image and impact the consumer buying behavior Therefore marketers are interested in them and want to change such beliefs 15 and attitudes of the customer by various ad campaigns Also, McDonalds provides good service to give their consumers a good impression so they come back again 2.4.2 Cultural Factor Culture is one of the main causes of consumer’s wants and behaviour McDonald’s carefully standardized food items according to local tradition and culture For example, In middle east Arab countries, McDonald’s consumer can get McArabia (grilled halal chicken with Arabic spices and bread), New menu for Vegetarian in India as some people don’t consume meat, in addition to this they avoided beef as cow is sacred in Hinduism i.e majority religion in India, Shogun Burgers in Hong Kong (Teriyaki pork), McShawarmas in Israel (Kosher meat), Bubur Ayam McDs in Malaysia (chicken porridge), McPaltas in Chile (a burger with avocado paste), Bulgogi Burgers in South Korea (thinly sliced meat in bulgogi marinade) Each culture has subcultures such as nationalities, religion, racial group, geographic religions and so on McDonald’s tried to localize their food menu by designing new products according to different cultures and understood consumer buying behaviour Furthermore, McDonald’s marketing and advertising strategy were different for different regions Their advertisements reflected different cultures, subcultures, racial 16 groups and social class Also, regular and repeated exposure of an advertisement brings about a familiarity and positive feeling about the brand 2.4.3 Social Factor Social factors also affect the buying behavior of consumers It also strongly affects consumer responses, so it must be taken into account by the company when designing marketing strategies The important factors here are family, reference group and status Consumers are highly influenced by the members of the family If the buying decision of some product is influenced by children then McDonalds will target kids in their advertisement Reference groups have the potential in forming an impression or a person's attitude towards the product The effect of Reference groups varies across products It tends to be strongest when the product is visible to other consumers For instance, if the product such as burger, French fries, soft drink and so on are influenced by the reference group it will be high McDonald’s convinces its customers to serve hygiene in plates 2.4.4 Personal Factor These factors can also impact the consumer buying behaviour Some of the important factors that influence the buying behaviour are: economic situation, occupation, age, lifestyle and self concept 17 Different age groups of consumers have different buying behaviors of products McDonalds targets almost everyone from kids, students, adults and business people For children they offer happy meals with Disney toys or other things to attract them For teenagers and students, some of the meals are really affordable and cheap for them In addition to this there is free wifi for them to access free internet For adults and business people, they tend to prefer things that are done fast and less time consuming and this is exactly what McDonalds did, they serve fast food and also there are Drive through for many Business type consumers who are on the go 2.5 Analyse the impact of culture on consumer behaviour in India McDonald’s entered the Indian market in 1996 as a joint venture between Oak Brook III and local partners – Hardcastle Restaurants Private Ltd in western India, and Connaught Plaza Restaurants Private Ltd in northern India To enter a market where consuming beef is “off limits” was very challenging and ambitious McDonald’s objective was to be inspired by the culture of India and to deliver the greatest of food experiences to the customers in India bringing in the splice of life They were aiming for to change the local perception of the new product being “American” and remove the fear of unknown, where family “dining in” was a custom for centuries The management wanted to advertise McDonald’s as a stimulator and advocate of family and culture values The diversity in language and communication is one of the greatest components of the culture Such as Hindus don’t eat beef, that’s the reason there is no beef on the McDonalds’ menu in India While Muslims don’t eat pork, so the company has to also emphasize that they don’t serve pork or pork by products in any McDonalds in India The government institution The Government of India encourages people to join various health programs and provides policies to improve the citizen’s standard of living There’s the Knowledge Center which control by Health Section to provide tips and information on diet and exercise This center can create a bad position of McDonald as junk food brand and result in declining sales McDonald’s entry into India was met with stiff opposition Members of the Hindu organization, the Bajrang Dal, the militant arm of one of the dominant fundamentalist political parties in India, the Bharatiya Janata Part (BJP) openly protested against the 18 company by attacking it’s branches across India on May 4th, 2001 The members of the Bajrang Dal demolished the restaurant in Thane, a northeastern Bombay suburb In southern Bombay, a McDonald’s store was besieged by protestors from the leading Bharatiya Janata Party, who shouted slogans and stained the restaurant’s mascot with cow dung The biggest problem McDonald faced was during the launch of its product in India was the public image it was carrying as an International food chain and not matching Indian standards There were concerns raised about how the burgers are made in McDonalds As India being a very ancient country and one of the lands of the ancient river valley civilizations, McDonald’s had to consider the cultural factors in India The Indian population is very diverse and complex as nation is split between different communities, religions (e.g Hinduism, Buddhism, Sikhism, Islam, Jainism and Christianity), beliefs and value systems All these factors play a significant role in nations’ preference for food and dining in general 80% of the entire population of India practice Hindu which forbids nonvegetarian food (Indian Mirror, no date) Because of this, McDonald’s initially only offered a vegetarian menu Furthermore, all the vegetarian products, even the mayonnaise in vegetable burgers, were egg-less and 100% vegetarian For vegetarian consumers, McDonald’s offers veggie burgers, which are very popular among the vegetarians in India What’s more in 2013, McDonald’s is planning to open its first vegetarian outlet in India By understanding the Indian customers’ taste, McDonald’s could be accepted by sensitive Indian people Price: Food pricing was a sensitive issue 19 in India As you know,most Indians prefer to eat home cooked foods which are considered;; fresh and inexpensive An ideal strategy was to focus on customer’s ability to pay and tap the rich and upper middleclass population in India The majority of households have an annual income averaging from US$1,001 to US$2,000, which is considered as very low compared to United States with an annual average income of US$63,091, therefore, McDonald’s had to set very low prices Their prices were already very low but the restaurant was still considered as a restaurant for middle-income to rich consumers McDonald’s has then decreased some of its products such as ice cream cone from Rs15 to Rs7 to make it affordable to everyone McDonald’s has first launched its two first branch in Delhi and Mumbai, choosing these locations because of its 500-km radius proximity suppliers It also has partnered with the state-owned oil company in order to set up restaurants at gas stations to make it easier for driving consumers to take a break and enjoy their mutton-based burgers or the other large variety of products Considering the fact that India is a country where people believe in fate, destiny and karma, McDonald’s has these ‘’lucky itch’’ thing where you just need to itch it and see if you are going to win a prize because Indian people believe that ‘’ if you are lucky, you are successful and win big’’ One very smart thing McDonald’s has thought about is the family-centric and child-centric strategy As India is a family-oriented country, McDonald’s has decided to focus on children and make their stores appealing to them, as children are automatically linked to family It has positioned itself as a family restaurant and its outlets are called McDonald’s family restaurant while it is simply called McDonald’s in other parts of the world When one of its stores opened in South Mumbai, a children’s parade was organized in order to make it appealing to children They also have spaces reserved for children in some branches called ‘’fun zones’’, places for children to play Another very interesting fact is that they also promotes birthday parties with the complete package including cake, candles and toys since most of the population live in a small house which make them unable to have parties at home In other words, McDonald’s is a kid-friendly environment In conclusion, one can learn a lot from McDonald’s operation in India From completely changing its menu to putting extra 20 efforts into attracting children, the next generation population, McDonald’s has thought a lot about its expansion of market in India While other rushed into Indian’s market in 1990 while there was a change in political, economic and cultural landscape, McDonald’s sat tightly and took those six years planning and investigating about India’s ‘’inside’’ Some companies not adopt the ‘’think global, act local’’ thinking and therefore not last very long in foreign countries As Vikram Bakshi, Managing Director of McDonald’s India says: ‘’Good Planning is absolutely necessary when you go into any country Very clearly, you have to understand the culture; you have to understand how you intend to be relevant to the consumer in that country Later they understood that this wasn’t the correct approach To honor the cultural differences between religions, the company categorized the cooking tools as well as employees in vegetarian and non-vegetarian categories The cultural factor had to be taken into consideration in such a market, as any omission can destroy the reputation globally which may limit the chances of business expansion (Rappa, A., 2007) For McDonald's it is good that India is a consensus-oriented culture because it is easier for them to make deals with Indians McDonald’s found out that giving back in India is good business India is a communitarian society They care about the community as a whole For example the well being of others (community service) is really important in India’s society McDonald’s has been involved in many community-related programs helping children mainly For example the girl- child program that focuses on improving the status of the girl-child in India’s chauvinist society Every time McDonald’s expanded to other cities it created new job opportunities This will make McDonald’s gain official support and help its brand and reputation in Indians minds Neutral: Majority if Indians prefer to keep their feelings controlled, it means not showing publicly affection, touching but caring about others by doing good to others For McDonald’s it was important to use not emotional but neutral communication to the customers In advertisings, they show they care about Indians' habits adapting their products into Indian’s dietary preferences India is a diffuse culture where everything is connected to everything For that reason it was important to McDonald to build a good relationship with the Indians It is 21 always recommended to take time to get to know them and become friends with them when negotiating something because of the diffuseness in the culture McDonald’s used many strategies and a long time to get to deal with Indians officials For McDonald’s it was easy to cooperate with them The outcome is the problem’ The diffuseness in India can be connected to religion, Karma, Gandhi A lot of actions are done in order to be reborn Everything is connected CONCLUSION Overall McDonalds has come a long way From facing constraints including beef ban, lack of poor infrastructure and storage, vegetarian population, political issues, to becoming the most preferred fast food brand, it certainly has won the hearts of Indians It is widely accepted because of its adherence to the cultural aspects of the nation It has done everything to establish itself in the Indian market Now, it is one of the most loved fast food places for families, employees, college students and even the old generation It has successfully targeted all the age groups McDonalds has already won the trust of customers, all it has to is keep updating itself according to the recent trends and changes to adapt it to the changing markets and keep on profits I don’t think any brand, no matter how big it is, can take the culture Because whatever the brand, it has to be relevant to the consumer of that country McDonald’s in India has come through problems but has eventually thought of ways to compensate and make things calm down and look better Without contributing so much, McDonald’s would not have done well in India It really had to ‘’fit in’’ the country and act as a domestic brand The main lessons to learn from McDonald’s operation in India are that an extended time spent on researching about the country in question might cost a lot at the beginning but will benefit even more later and help the company last longer, understand the country with the help of local people can be very beneficiary in terms of penetrating the country, and being part of charities and activities that the country’s people value could benefit the company’s image and reputation 22 References Hargrave-silk, A 2003, ‘McDonald’s digs into customer behaviour’, Media: Asia’s Media & Marketing Newspaper, p 14, Business Source Complete, EBSCOhost, viewed April 2016 HugeDomains 2021 TechThebest.com is for sale | HugeDomains [online] Available at: [Accessed 26 December 2021] Jakstiene, S., D Susniene and V Narbutas(2008), “The Psychological Impact of Advertising on the Customer Behavior”, Communications of the IBIMA, 3:50-55 Mooij, M de (2004) Consumer Behavior and Culture (Thousand Oaks, CA: Sage), pp 162-64 Money, R B., Gilly, M N., & Graham, J L (1998) "Explorations of National Culture and Word-of-Mouth Referral Behavior," Journal of Marketing, October, pp 76-87 Tandon, S., 2021 Want to know why McDonald’s may shut down in half of India? Ask its first Indian business partner [online] Quartz Available at: [Accessed 26 December 2021] Assignmentpoint.com 2021 McDonald's Entry to India - Assignment Point [online] Available at: [Accessed 26 December 2021] Business & Management Case Studies 2021 Download Management Case Study on McDonald's - Business Strategy in India (PDF file) [online] Available at: [Accessed 26 December 2021] Slideshare.net 2021 Mcdonald case-study & analysis [online] Available at: December 2021] 23 [Accessed 26 ... Studying consumers provides clues for improving or introducing products or services, setting prices, devising channels, crafting messages, and developing other marketing activities (Kotler, et al.,... al., 2008) Consumer behavior is concerned with: - Purchase activities: the purchase of goods or services; how to acquire consumers products and services, and all the activities leading up to a... to the behaviors dictated by that culture Culture influences consumers' thoughts and behaviors Research shows that culture operates primarily by setting boundaries for individual behaviors and