No news is not good news for Coke and Pepsi in India. Their products have suffered ban in state run educational institutes and hospitals in several Indian states and may be some more to follow. So, it is bit shocking news that McDonald's is flourishing in India at this moment. I just read a report in Hindustan Times and I am quoting from it:
"Between 40-50 restaurants are likely to be added in 2007," Vikram Bakshi, managing director at McDonald's India, told Reuters in an interview on Friday.
"I see ourselves as doubling our turnover every three years for at least a decade, and profit growth should be better than sales growth."
Oak Brook, Illinois-based McDonald's operates in India through two joint ventures in which it owns 50 per cent. The two firm have built up a network of 92 self-owned restaurants in the ten years since Indian operations began."
In this report, I could find that every day, 350,000 people eat McDonald's foods. From this you can understand the popularity of McDonald's. However, considering the fact that the size of Indian middle class is around 300 million, you can safely bet on the fact that McDonald's will grow very fast in India in the next few years.
What I like about McDonald's is not that it has adapted to the Indian condition very well. It has a very nicely concerted media campaign with attractive ads going round in the clock in various TV channels. There are regular promotional programs to encourage the customers. Last but not least, McDonald's has adjusted to the Indian menu very well. In India, many people are vegetarians and McDonald's has arranged a number of items just for the vegetarian customers. As a result, McDonald's foods are popular to all kinds of (financially well off) people.
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