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McDonald's - Competitor Analysis

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McDonald's - Competitor Analysis
KFCOne of the major competitors for McDonald in the burger segment is KFC. It first came to India in 1995, where it was one of the first multinational food chains to have entered India. It proved not to be a very good time to have come to India where people were still not able to come to terms with multinationals coming to India, and it was targeted by many and remained a not so known food outlet, while the ones which came later became more popular. KFC India had to shut shop in the late 1990s after it faced heavy protests not only from anti-multinational groups but also animal rights' protector, PETA.

But unlike McDonald', KFC has not been able to establish itself and shun its image of being a beef burger shop. McDonald's is clearly poised well in terms of appeal to the majority of the Indian population, 40% of which is vegetarian. While KFC has not been able to do that, and it is still seen as a chicken only restaurant.

McDonald's has a wider variety here with products starting from as low as Rs 20, while KFC has not been able to match that. KFC is still priced a little higher for the general Indian population and its strong customer segment is the cosmopolitan population which is mall going and earning or have spare money to spend, 18-30 years. While people from even small income range and lower middle class have been able to associate themselves with McDonald's. McDonald's has set up its own supply chain investing huge amount which leads to lower costs and prices.

When it comes to chicken burgers McDonald's needs to provide more variety on its menu as it is claimed that KFC is coming up with 15-20 new Indianised products.

McDonald's has more than 140 restaurants in India and is adding at a fast pace, while KFC has presence only in limited areas especially the southern part of the country.

KFC claims that even without much promotion it has the strongest brand recall for chicken products. KFC even sponsored a contest during a cricket match, and is a well



References: www.mcdonalds.com, accessed on 18 July, 2008•www.mcdonldsindia.net, accessed on 18 July, 2008•en.wikipedia.org/wiki/McDonald 's, accessed on 19 July, 2008•http://www.associatedcontent.com/article/263943/mcdonalds_strategic_marketing_mix.html?cat=4, accessed on 19 July, 2008•www.kfc.com, accessed on 25 August, 2008

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