Q] McDonald’s launched the ‘Flavours of India’ campaign, what inspired it, and how does it align with your brand image?
We always strive to make our iconic products more relevant to Indian consumers and their diverse tastes, like the McAloo Tikki. Every few hundred kilometres, food preferences in India change dramatically. Our goal is two-fold: to cater to these diverse tastes, and to celebrate India’s rich food diversity.
Q] During the Q4FY24 conference call, the company mentioned that some communities viewed McDonald’s as representing solely Western values, impacting 60-70 restaurants in the Western region. Do you believe this campaign can address this issue and drive growth?
We take pride in the fact that all our burgers are truly Indian, with ingredients sourced locally: potatoes from Gujarat, buns from Indian bakeries, and coffee from Coorg. Everything at McDonald’s India comes from different parts of the country and our farmers. Our Independence Day campaign aims to highlight this, and build more brand love among our consumers.
Q] Speaking of coffee, recently Rajiv Ranjan, MD - McDonald’s India, said that the company’s aim is to establish McCafé as the top choice for coffee lovers. What are some marketing strategies to drive demand and are there any upcoming campaigns regarding the same?
We have launched a range of international coffees at McCafé, featuring flavoured cappuccinos, hot chocolate, and lattes, all customised for the Indian palate, at great value. McCafé’s growing popularity over the past ten years has driven us to expand its footprint to 371 locations, which now represents a 92% penetration across our total restaurant network of 403 (as of June 2024). We will continue to expand McCafé in the years to come.
We are creating new reasons for consumers to visit McDonald’s beyond just meal times, contributing to consistent year-on-year growth.
Q] There was a concern regarding the sourcing of cheese at McDonald’s, and even though the FSSAI cleared the company, do you still see growth being affected by that? If yes, what is the strategy to recover from that?
You mentioned correctly that from a regulatory perspective, we have always been compliant since launching our cheese range. Our products have consistently contained 100% real cheese, as verified by relevant regulators. When doubts arose, we highlighted the facts and had independent labs retest our products to confirm this. Since then, we launched a campaign with celebrity chef Sanjeev Kapoor to share this story with more consumers, emphasising the facts over the misinformation. The ‘Real Food, Real Good’ campaign was very well received, enhancing consumer trust, and positively impacting our brand scores. So, while those doubts were an issue many months ago, we’ve made significant progress since then.
Q] What is your marketing mix? Is Digital the preferred way of marketing or are you into traditional ways of marketing too?
It’s a mix of different approaches. Traditional media still plays a significant role, but investments in digital and new media are growing. Traditional media like TV and OOH remain dominant in our strategy, but the choice depends on the campaign and target audience. For instance, the recent ‘McSavers Plus’ campaign, aimed at Gen Z, is primarily digital due to the audience’s nature. At other times, we run family-oriented campaigns with a stronger TV focus to reach traditional audiences. So, our media strategy varies based on the specific campaign and its target audience.
Q] In the last year and quarter, all FMCG companies have been increasing their ad spends. What is the company’s ad spends currently and do you plan to increase it in this fiscal?
Ad spending is a significant portion of our revenue. McDonald’s is a brand-led business, with consumers choosing us for our brand, food, and the service we represent. Our recent investments include the ‘Real Food Real Good’ campaign with Sanjeev Kapoor, Junior NTR promoting our fried chicken in AP and Telangana, and the ‘McSavers Plus’ campaign for Gen Z. Our marketing spends are growing significantly each year.
Q] What is the expansion strategy for the coming fiscal?
We have ramped up our store openings over time, with a goal of reaching 580 to 630 stores by 2027 as part of our Vision 2027 strategy. To achieve this, we must consistently open new stores. During FY24 we opened 41 restaurants, and we intend to maintain this rate to meet our Vision 2027 objective. Despite potential temporary demand fluctuations, we remain confident in the long-term potential of the QSR category, and see new store expansion as crucial to realising this opportunity and our goals. Our commitment to this goal is steadfast.
Q] Which markets have been the growth drivers for your company and which markets would you say are potential growth drivers for your company?
From a current business perspective, markets like Mumbai are significant contributors, but we’re also experiencing growth across various regions. Small towns are performing exceptionally well, and we’re seeing positive responses in Southern markets. Our drive-throughs in smaller towns are thriving, and as we expand, we’re seeing strong growth in new and smaller markets, including those in the South. Overall, demand remains robust, and growth is occurring across all regions, not just in specific areas.
Q] As the festive season is here, what is the company’s strategy for marketing and how is it different from last year?
The festive period from October to December is crucial for us. We are prepared with new product launches and brand campaigns to boost our relevance. We’re also investing in our delivery business due to its undeniable convenience. Exciting products, including burgers, beverages, and desserts, are in the pipeline. Expect a lot of excitement from McDonald’s during this period.
PROFILE
Arvind R.P. is the Chief Marketing Officer at Hardcastle Restaurants Pvt. Ltd (HRPL), a wholly owned subsidiary of Westlife Foodworld Ltd, formerly known as Westlife Development, master franchisee of McDonald’s® restaurants in
West and South India. Arvind has more than 20 years of experience in marketing and sales across various geographies and categories. He joined McDonald’s India in January 2019, and is currently heading the overall marketing, digital, menu, and communications strategy for the brand to further strengthen its leadership in the QSR space.
ABOUT THE BRAND
McDonald’s India, particularly in the West and South regions, is dedicated to offering a menu that resonates with local tastes while maintaining global standards. With innovative offerings like the McAloo Tikki and the Chicken Maharaja Mac, McDonald’s seamlessly blends international flavors with Indian preferences. The company sources many ingredients locally, supporting Indian farmers and ensuring freshness. McDonald’s India also places a strong emphasis on convenience, with a robust delivery network and numerous drive-thrus.
FACTS
Creative & Digital Agency: DDB Mudra
Media buying agency: Madison
PR agency: Avian WE
