Oppenheimer Film Discussion for Philosophy and Film
Analyzing McDonald's PR Strategies in India
1. Practical Application in Public Relations Page 1 of 18
Table of Content
1.0 Introduction………………………………………………………………………...pg.1
2.0 Phase 1: Formative Research………………………………………………………pg.2
2.1 Analyzing the Situation…………………………………………………….pg.2
2.2 Analyzing the Organization………………………………………………..pg.3
2.3 Analyzing the Public……………………………………………………….pg.5
3.0 Phase 2: Strategy…………………………………………………………………...pg.7
3.1 Establishing Goals and Objectives…………………………………………pg.8
3.2 Formulating Actions and Response Strategies…………………………….pg.8
3.3 Using Effective Communication………………………………………….pg.11
4.0 Phase 3: Tactics…………………………………………………………………...pg.12
4.1 Choosing Communication Tactics………………………………………..pg.12
4.2 Implementing the Strategic Plan………………………………………….pg.13
5.0 Phase 4: Evaluative Research…………………………………………………….pg.14
5.1 Evaluating the Strategic Plan……………………………………………..pg.14
6.0 Conclusion and Recommendations……………………………………………….pg.15
7.0 References………………………………………………………………………...pg.15
TONG TIONG VEE APRIL 2012
2. Practical Application in Public Relations Page 2 of 18
1.0 Introduction
Culture is the most important issue that needs to be taken concern by international
company. Different countries possess their own culture and lifestyle. This means that the
thinking, behavior and attitudes of people are different from places to places. Moreover,
the dissimilar rules and legislation in different countries will definitely affect
international business like McDonalds‟.
McDonalds‟ is one of the world leading restaurant chains. It operates more than 30,000
restaurants in more than 100 countries on six continents today (Advameg, Inc, 2012).
McDonalds‟ was founded in 1940 by two brothers, Dick and Mac. Since the first
franchise open in 1953, the company continues to expand its business from US to UK,
Moscow and China (iloveindia.com, n.d.). McDonalds‟ opened its first restaurant in Delhi,
India in 1996 and second restaurant in the financial capital of India, Mumbai. To operate
in India that possess exact different culture from US, a creative and effective strategic
public relations planning is essential for McDonalds‟.
According to Ronald D. Smith‟s strategic planning for public relations (PR), effective
and creative planning is the heart of any PR and related activities. Organization PR plan
should be developed according to four phases: Formative research, strategy, tactics and
evaluative research. Careful planning allows company to monitor, test and adjust the
strategies according to the situation, which will then increase the percentage of success
and reduce the cost. Thus, the purpose of this paper is to analyze McDonalds‟ public
relations plan in India using Smith‟s “The Nine Steps of Strategic Public Relations”
model listed below:
Phase One: Formative Research
o Analyzing the Situation
o Analyzing the Organization
o Analyzing the Publics
Phase Two: Strategy
o Establishing Goals and Objectives
o Formulating Actions and Response Strategies
TONG TIONG VEE APRIL 2012
3. Practical Application in Public Relations Page 3 of 18
o Using Effective Communication
Phase Three: Tactics
o Choosing Communication Tactics
o Implementing the Strategic Plan
Phase Four: Evaluative Research
o Evaluating the Strategic Plan
2.0 Phase One: Formative Research
To have an effective public relations plan, organization should first identify what are the
positive and negative circumstances, no matter is internally or externally, which will be
faced. In the first phase, organization needs analyze whether the situation is an issue
management that under control or crisis management when situation is out of control as
well as organization‟s opportunities and threats. Then, organization needs to do a public
relations audit, which analyzes the company‟s internal environment, public perception,
and external environment in order to figure out the strengths and weaknesses of the
company. The last step of the formative research is to determine who the organization
publics are and to study on their characteristics.
2.1 Analyzing the Situation
The first step of Smith‟s strategic planning for public relations is to analyze the situation.
The public relations plan to enter the India market is an issue management for
McDonalds‟. McDonalds‟ is able to predict what are the opportunities and obstacles that
the company will face through doing research on the market. By doing so, McDonalds‟ is
able to avoid uncontrollable crisis.
By having the world second largest population (Rosenberg, 2011), India undoubtedly is
an opportunity for McDonalds‟ to expand their business. The open market for global
companies in India had provided a golden chance for McDonalds‟ to enter the market as
well. However, the cow-sacred culture in India had become a threat to McDonalds‟, an
US company which used to serve beef as its major ingredients. Furthermore, India has the
highest vegetarians‟ population in the world (Elizabeth, 2009). According to Hindu-
TONG TIONG VEE APRIL 2012
4. Practical Application in Public Relations Page 4 of 18
CNN-IBN State of the Nation Survey (2006), there is 31% of the populations are pure
vegetarians and another 9% are vegetarians who consume eggs.
Hence, as McDonalds‟ are being the world largest user of beefs (Lin, 2012) and be
known for its beef and pork burger (Kaimal, 2009), the amount of vegetarians and India‟s
cow-sacred culture will definitely bring a big obstacle to the organization. Another threat
for McDonalds‟ is its competitiveness with local restaurants. People there do understand
local culture and habits better than McDonald‟ do. The variety of food with acceptable
price range has strengthened local restaurants competitive level too. Therefore, the
acceptance for American fast-food and to change Indians‟ perception had become a
challenge to McDonalds‟.
2.2 Analyzing the Organization
The second step is to analyze the internal environment, public perception, and external
environment of the organization. McDonalds‟ must be honest to itself in order to clarify
the strengths and weaknesses of the company. In addition, to what extent McDonalds‟ is
known in India and how the public perceived the organization is essential for the
company. Analysis of India‟s political, economic, social and technology factors as well
as the nature of any rivalry that may exist must be done too.
2.2.1 Internal Environment
McDonalds‟ is known for selling consistent, simple, low-priced American food with fast
service (Hassan, 2011). The franchise strategy had led the company to grow extremely
fast while the introduction of Ronald McDonalds had turn its burger into most famous
burger. With its strong background, McDonalds‟ is able to make huge investment to
support any of its plans include necessary researches. Moreover, the company is willing
to adapt “glocalization” through changing their strategy according to the culture
differences. The implementation of McDonalds‟ system also allows the company to
control at every stage from procurement to serving. This is to ensure the McDonalds‟
philosophy of Quality, Service, Cleanliness and Value (QSCV) is being achieved.
Training is provided to all staffs and food safety is taken seriously by the organization.
TONG TIONG VEE APRIL 2012
5. Practical Application in Public Relations Page 5 of 18
2.2.2 Public Perception
The famous of Golden Arches is not working in India. During 1996, when Indians was
awakening to the global call, the Indians perceived western products and services as
higher quality and expensive. Most of the citizens who considered McDonalds‟ as a
symbol of American culture had recognize McDonalds‟ as another example of the
everlasting spread of Western companies into different countries or communities, which
is creating a global system that wealth will flowed out from local economies into very
few and rich aristocracies‟ hands (Kulkarni & Lassar, 2009).
2.2.3 External Environment
India is known to be a country that treats women as inferior to men. Female infants used
to being buried right after they were born and women are living with a very low status in
India. They don‟t have the rights to study like men do. Thus, the government was trying
to implement equal rights policy to all citizens regardless the gender, race, and religious.
The government wanted to provide a minimum standard of living to the citizens; however,
these promises have not been fulfilled up to date (Baxi, 1985).
Economy factors in India are growing continuously from 419.352 US dollars gross
domestic product based on purchasing-power-parity (PPP) per capita GDP in 1980 to
1236.838 US dollars in 1996 (Index Mundi, 2011). This had indicated that Indians‟
purchase power are increasing rapidly from year to year plus the open market for global
companies in 1996 had become an opportunity for McDonalds‟ to enter this potential
market. Nonetheless, entrance of other global companies will become competition for
McDonalds‟.
India has the second highest population in the world today. Its population grows from
846.3 million in 1991 to 952, 107, 694 million in 1996, which is divided into 34% below
15years old, 62% for 15-64 years old, and 4% of 65 years old and above (CIA, 1996). 39-
42% of the total population is vegetarians, an alternative to fish, lamb and chicken. Cow
is taboo and cannot be served. Meanwhile, the unemployment rate in India stays in an
average of 7% since its independence (Jha R., 2000). If McDonalds‟ is able to help the
TONG TIONG VEE APRIL 2012
6. Practical Application in Public Relations Page 6 of 18
government to overcome the negative circumstances while increase India‟s economy
mentioned above, government will definitely become a huge supporter for McDonalds‟
The demand for fast food is increasing corresponsive to dual-income families in India.
Some of the popular snacks in India (Bhelpuri, Vada Pav, Samosas and Pani Puri) had
revealed that Indians are more concern of the food taste especially spicy taste instead of
the nutrition due to these snacks has low nutrition. As a result, burger, which had been
perceived as snack in India, can stand a chance to grab consumers‟ attention if the taste is
suitable for the Indians.
The information technology in India is basically based on the radio, which has the highest
rate of audience, television (which is fully under government control), and telephones
(CIA, 1996). It‟s an urge for the country to further develop their technologies to meet
global quality and standard. In this case, entrance of McDonalds‟ has played a role in
bringing new technologies to India as well as increase Indians‟ living quality and
standard.
2.3 Analyzing the Public
The third step is to identify and then analyze who McDonalds‟ public are under the four
categories of public – customers, producers, enablers, and limiters. The public‟s key
characteristics and their influences on the company should be come under consideration
too. Customer is the one who consume McDonalds‟ products or services; no matter it is a
primary or secondary customer. Those who provide input to McDonalds‟ are categorized
under producers while enablers are those who set norms or standard to the organization.
Finally, limiters are those who might reduce or undermine McDonalds‟ success.
2.3.1 Customers
Price sensitivity is still critical in India although the purchase power in India had risen; as
a result, McDonalds‟ need to select specific markets to target. Researches indicated that
children have the power to influence parents‟ buying process (Mangleburg & Tech, 1990).
McDonalds‟ had noticed on this new phenomenon and decided to set children in dual-
TONG TIONG VEE APRIL 2012
7. Practical Application in Public Relations Page 7 of 18
income family as its key public. McDonalds‟ may introduce children‟s menus or offer
free toys to target on the children. If the company is able to attract the children attention,
parents will automatically be influence and then become McDonalds‟ customers.
Furthermore, the influences of American culture brought to Indian youngsters had created
another target market for McDonalds‟. Parents who need to relax after working for a day
is one of McDonalds‟ consumers‟ markets. Automobile driving consumers, cinema and
shopping mall lovers, and middle-class Indians are McDonalds‟ potential consumers.
McDonalds‟ can offer McDelivery services to those tired parents and open its outlet in
shopping complex and petrol stations.
2.3.2 Producers
McDonalds‟ employees in India itself are one of the producers who will bring benefits to
the company due to their engagement and performance will directly influence consumers‟
perception on the company. McDonalds‟ should provide high class training to the
employees so that they have the appropriate qualification to perform better in operation
and in service quality.
Alternatively, the relationships with suppliers and distributors of McDonalds‟ in India,
which include Trikaya Ariculture (supplier of Iceberg Lettuce), Vista Process Foods Pvt
Ltd (supplier of chicken and vegetable products), Dynamix Diary (supplier of cheese),
Amrit Food (supplier of long life UHT Milk and milk products for frozen desserts),
Radhakrishna Foodland (distribution center) and Lamb Weston (potato farming), will
determine whether McDonalds‟ could achieve its philosophy of QSCV and its objective
to minimize the production costs. Through giving exclusive products supplier authorities
that bring huge profits to these suppliers and distributors might enhance their loyalty to
McDonalds‟.
2.3.3 Enablers
India‟s government who set the rules and regulations become one of the public that need
to be taken concern by McDonalds‟. Any changes of the government policies can affect
TONG TIONG VEE APRIL 2012
8. Practical Application in Public Relations Page 8 of 18
McDonalds‟ operations. Therefore, McDonalds‟ should pay more attention on its
relationships with India‟s government. In addition to that, the benefits of the joint-venture
partnership with two Indian businessmen, Amit Jatia and Vikram Bakshi need to be taken
into consideration by McDonalds‟ in order to get win-win situation. Other partnerships
with BPCL (Bharat Petroleum Corporation Limited), HPCL (Hindustan Petroleum
Corporation Limited), railway stations and bus stations will add values to both parties too.
Media in India, on the other hand, has the power to shape public perception and help
McDonalds‟ to success; Hence, McDonalds‟ need to put more effort in building
relationship with the media and create positive newsworthy for media to report. The
power of word of mouth (WOM) created by existing customers can affect other potential
consumers to visit McDonalds too. McDonalds‟ should provide great experience to the
customers so that they will influence person around them to visit McDonalds‟.
Vegetarians, health and nutrition, animal welfare and environment campaigners are the
opinion leaders of their fans. They are able to influence public opinion and indirectly
affect McDonalds‟ successfulness. McDonalds‟ should carefully plan for campaigns
which are able to show these campaigners that McDonalds‟ does care on their concern.
2.3.4 Limiters
Local restaurants are the main competitors of McDonalds‟. McDonalds‟ needs to work
hard to gain more market share consequently due to local restaurants understand local
eating habits, taste and culture more than McDonalds‟ do. Therefore, the joint-venture
strategy with local businessmen is a good decision for McDonalds‟. Food and beverages
industries in India, no matter local or international, will become competitors and
opponents of McDonalds‟. Media and the activists, in contrast, can ruin McDonalds‟
business as well when McDonalds‟ is unable to stay in step with them.
3.0 Phase Two: Strategy
After gathering the data needed, clear and inspire goals are essential to further establish
relevant public relations tactics and strategies. Different objectives to target different
publics as well as to know what to achieve in a specific time need to be set in order to
TONG TIONG VEE APRIL 2012
9. Practical Application in Public Relations Page 9 of 18
achieve the ultimate goals. These goals and objectives determine what strategies and
tactics should be taken without increase unnecessary cost.
3.1 Establishing Goals and Objectives
The fourth step of the strategic planning is to set challengeable goals and objectives for
the organization. However, McDonalds‟ India is operating according to its vision and
QSCV philosophy which is different from what Smith stated. If McDonalds‟ India did
create particular goals and objectives that need to be accomplish, it may be able to carry
out better strategies and to know to what extent the company had been.
McDonalds‟ vision in India is to be India‟s best quick service restaurant experience.
Instead of Golden Arches which seems nothing to Indians, McDonalds‟ wanted to
position itself as a family restaurant. This vision is supported by Mcdonalds‟ philosophy
of QSCV as well as its values which are listed as below (H.R.P.L., 2010):
Place customers experience at the core of what the organization do
Are committed to its people
Believe in McDonalds‟ system
Operate business ethically
Give back to the communities
Grow the business profitably
Strive continually to improve
3.2 Formulating Actions and Response Strategies
In the fifth step, organization is going to determine what actions and response strategies
should be taken in order to achieve company‟s goals and objectives. McDonalds‟ India is
doing quite well in formulating actions and response strategies. The company engages in
both pro-active and re-active strategies according to the changes of situation.
First, McDonalds‟ had taken pre-emptive action strategy by predicting the using of beef
will become an important issue in India. Thus, the organization used alliances and
coalitions strategy through involving in joint-ventures partnership with two Indian
TONG TIONG VEE APRIL 2012
10. Practical Application in Public Relations Page 10 of 18
businessmen, Amit Jatia and Vikram Bakshi, one year before they open their first
McDonalds‟ restaurant there to inform local people that McDonalds‟ India is running by
Indians who know their culture better. These businessmen help McDonalds‟ to operate
McDonalds‟ in India while in exchange; McDonalds‟ provide management trained for
their management team in McDonalds‟ restaurant in Indonesia and USA.
Moreover, McDonalds‟ is willing to adapt on the different culture of India using
organizational performance strategy. McDonalds‟ decided to change their ingredients
according to India‟s culture by abandoning beef and pork at all and implement new
vegetarian menus. McDonalds‟ introduced McAloo Tikki ™ and McVeggies ™, which
are totally made by vegetarians‟ ingredients, especially for the vegetarians. Chicken,
lamb and fish is added to the options for non-vegetarians in order to replace beef or pork
in the menus.
McDonalds‟ separated both vegetarians and non-vegetarians cooking and serving process
with a transparent kitchen. Consumers could see its whole operations and staffs who are
working with vegetarians‟ food will wear green aprons. These moves are to convince the
vegetarians that McDonalds‟ do really care about their “Shudh Shakahari Experience” –
pure vegetarians‟ experience.
On the contrary, when animal welfare and environment campaigners critic McDonalds‟
for not treating the animal nicely during the slaughter process and making the
environment condition worse, McDonalds‟ invest fortune on promoting itself as
environment friendly corporation through using recycle materials for packaging,
implementing various campaigns and sponsorships. In addition to that, half
advertisements of the radio, television, print and internet were focus on promoting “go-
green”, healthy products and lifestyle to counterattack the critics on McDonalds‟. At the
same time, McDonalds‟ used defensive response strategy through arguing that the
treatment to the animals is comes under law, which should be the concern of the
government.
TONG TIONG VEE APRIL 2012
11. Practical Application in Public Relations Page 11 of 18
Burger is perceived as snack and unhealthy food in India. To overcome these
circumstances, McDonalds‟ is the first fast-food company that introduces nutritional
information to the consumers. This is to set McDonalds‟ image that it concern on
consumers‟ health, unlike what the activists said. McDonalds‟ also engage in donations
and fund raising campaign to help local children and raise women status in India to build
their reputation and image.
To implement McDonalds‟ QSCV philosophy, McDonalds‟ in India spent few years and
money in setting up a successful supply chain by bringing McDonalds‟ system from US.
Indians‟ suppliers supply more than 96% products and materials to McDonalds‟. Then, to
maintain freshness and nutrition value of foods, cold chain had been established. Process
from cold chain system until reach the customers is under examination of McDonalds‟
Quality Inspection Program (QIP) to ensure that all products are in perfect condition.
McDonalds‟ defend itself by telling the Indian public that McDonalds‟ is different from
other western companies. McDonalds‟ contribute their profits into local community
through the CSR and CSV programs. Employing local citizens and purchase from local
suppliers help stimulate local economy and provide opportunity for them to grow. Other
CSR programs such as raising funds for children, running campaign to raise women
status in India, and sponsor quite a large amount of money to the schools are used to
create newsworthy information.
To enter the small cities in India, McDonalds‟ decided to decrease their selling price, this
had successfully increase 25% of customers. Later, partnership with BPCL (Bharat
Petroleum Corporation Limited) and HPCL (Hindustan Petroleum Corporation Limited)
targeting on automobile driving consumers and partnership with railway stations and bus
stations to target potential middle-class Indians had become a strategy used by
McDonalds‟ to expand its business. To target cinema and shopping complex lovers,
outlets had been set up.
TONG TIONG VEE APRIL 2012
12. Practical Application in Public Relations Page 12 of 18
3.3 Using Effective Communication
The sixth step is to analyze how the organization is able to stand out from other
organizations‟ messages whether using information, persuasion or dialogue as
communication approach.
In choosing the communication approach, McDonalds‟ is focus on persuasive
communication, which includes ethos, logos and pathos message appeals, using family
which has children as spokesperson. When McDonalds‟ first enter the India market, it
positioned itself as a family restaurant with as slogan of “McDonald's mein hain kuch
baat”, which mean “there‟s definitely something about McDonalds‟ to motivate and
encourage people to visit McDonalds‟ for the first time. McDonalds‟ advertisements were
showed in story-lines which focus on emotions to portray itself as a place that provides
full satisfaction and excitement experience to families which have kids and youngsters.
Families had been used as spokesperson in the advertisements.
Nonverbal communications such as play areas and Happy Meals with toys are provided
to the children so that parents could relax and enjoy their eating time in McDonalds. The
children friendly environment with lower counters, rounded table (to avoid children
getting hurt) and children menus were so attractive to the children. Different flavors of
ice-cream were established to fulfill on the youngsters curiosity.
Meanwhile, birthday parties and latest pop-music hits were available to tackle India‟s
new generation of jean-clad „Americanized‟ teenagers. After the public get to know what
McDonalds‟ is, McDonalds‟ changed it slogan to ““Toh aaj McDonald's ho jaye" (“Let it
be McDonald‟s for today”), which support everyday experience to continue positioning
McDonalds‟ as a families‟ comfort zone. McDonalds‟ believe that advertising and WOM
will help in promoting McDonalds‟.
TONG TIONG VEE APRIL 2012
13. Practical Application in Public Relations Page 13 of 18
4.0 Phase Three: Tactics
After developing the strategies, organization is now going to determine how to
communicate with its audience through different communication tactics and to set the
budget and timeline to implement the strategies effectively.
4.1 Choosing Communication Tactics
In the seventh step, organization needs to choose the efficient communication tools and
tactics that can be used by the company to spread the messages. These media
communication tactics are put into four categories by Smith which are interpersonal
communication, organizational media, news media and advertising and promotional
media.
During 1996, internet was not well-establish in India yet. McDonalds‟ communication
tactics are mainly based on outlet design, new store opening and public relations writing
skills in emphasizing McDonalds‟ attempts to tailor menu according to Indian taste and
culture until 2000 (Chaturvedi, 2008). When McDonalds‟ had gained the needed
explosion and ready to advertise by 2000, news media such as television and radio had
been used as communication tools. McDonalds‟ found out advertisements with graphics
and audio that using kids and emotional appeals to display family ties and fun at
McDonalds‟ are easier to capture Indians‟ psychological emotion.
On the other hand, McDonalds‟ Happy Meals with Lego toys and promotional schemes
in schools or figures of Ronald McDonalds‟ were used to attract the lobbyist of one
family – children. McDonalds‟ implemented interpersonal communication targeted on
children to build its reputation and brand image in India. They organized interschool arts
competition and raise funds for charity on World Children‟s Day. They also supported
educational programs for girl-child and promote goodwill to improve women status in
India, which is known as “Blue Dot”. In November 2006, McDonalds‟ India runs a
campaign of “Each One Contribute One” for the vision correction for needy children.
TONG TIONG VEE APRIL 2012
14. Practical Application in Public Relations Page 14 of 18
Apart from Corporate Social Responsibility (CSR), McDonalds‟ also engage in Creating
Shared Value (CSV). The establishment of McDonalds‟ India had provided a huge
numbers of employment opportunities as well as long-term career to local people
especially the youngsters. Each franchise of McDonalds‟ employ average of 50 staffs
includes managers. Besides, the McDonalds‟ potato farming in Gujarat had brought many
benefits to the farmers while driving the development of India‟s economy. McDonalds‟
also implement „Litter Patrols‟ where employees will clean up the garbage that market
left behind every day to ensure a cleaner neighborhood.
4.2 Implementing the Strategic Plan
To implement the communication tactics and strategies developed before, organization
should plan for the budget and timeline in this step. Organization should calculate the
breakeven point in the end of this step too.
Six years before McDonalds‟ entered India, the company and its international suppliers
had collaborated with local companies to establish products and supply chains that could
meet McDonalds‟ food quality demand as well as minimize the operating costs (Dash,
2005). McDonalds‟ even imported its food processing technologies from US to India to
improve India technology ability.
McDonalds‟ first targeted on urban cities in India. The company invested Rs 100 cocre
for the expansion in New Eastern Region of India. After gaining the acceptance of local
citizens, McDonalds‟ decided to expand its market to small India cities. Next,
McDonalds‟ had signed it partnership with petrol stations and shopping malls to target on
automobile drivers and young lovers.
Since its first Indian restaurant in 1996, McDonalds‟ had invested Rs 450 crore in its
operations out of its total planned investment of Rs 850 for 11 years (MBA Knowledge
Base, 2010). Reports disclosed that McDonalds‟ had spent Rs 10 crore in June 2000, Rs
20 crore in 2001, Rs 18 crore in 2002, and Rs 24 crore in 2003 for its advertising and
promotional campaigns (Rangnekar, 2008).
TONG TIONG VEE APRIL 2012
15. Practical Application in Public Relations Page 15 of 18
To strengthen McDelivery service in India, McDonalds‟ had further invested Rs 3 crore
from March 2007 to March 2010 with the launching of home delivery number (Kulkarni
& Lassar, 2009). Furthermore, to continuously increase McDonalds‟ reputation and
brand image, the company is celebrating Children‟s week every year from November 14
to 20. McDonalds‟ also organized interschool arts competition annually and daily fund
raising for charities.
5.0 Phase Four: Evaluative Research
The final phase of Smith‟s strategic planning for PR comes back to research again. A
well doing evaluative research is important to an organization in order to increase the
effectiveness of public relations and marketing communications while prestige the role of
public relations in an organization.
5.1 Evaluating the Strategic Plan
The last step of Smith‟s strategic planning for PR is to evaluate the performance of the
strategic plan. The purpose for this evaluation is to know whether the goals and
objectives set in the very beginning being achieved or not. It is also to know if the
company is starting on the right foot.
By lower down the selling price when McDonalds‟ tried to enter India small cities, it has
successfully increase 25% of customers. Additionally, with the establishment of local
supply chain and local farming, McDonalds‟ announced that its operations had come into
break even and had expanded its business to 80 outlets in December 2003 even though
McDonalds‟ had slowed down in its worldwide expansion.
In 2006, McDonalds‟ India has effectively expanded its business around 100 restaurants.
At the same time, India had been identified as McDonalds‟ top 10 markets. Each
McDonalds‟ outlet employed an average of 50 employees over a total of 5000 employees.
Nowadays, McDonalds‟ India has the largest sales volume and highest brand recognition
among other restaurants (includes KFC) in India (Thorn, 2011).
TONG TIONG VEE APRIL 2012
16. Practical Application in Public Relations Page 16 of 18
6.0 Conclusion and Recommendations
According to Smith‟s strategic planning for public relations, to success in public relations
plan, organization must follow the Smith‟s model and each phase and steps should be
taken seriously due to they are correlated. After analyzing McDonalds‟ PR plan in India,
I would like to conclude that McDonalds‟ did follow the four phases and nine steps of
Smith‟s PR strategic planning. Each phase and step had been analyzed clearly. The
adequate strategic communication and public relations strategies implemented
McDonalds‟ had finally lead McDonalds‟ to become the largest and most recognizable
brand in India.
Nevertheless, McDonalds‟ should set goals and objectives to guide them “where to go”
and “how to go”. It is believed that through setting clear and inspires goals and objectives;
McDonalds‟ is able to go further. Furthermore, the defensive strategy in denying the
treatment to chickens is not McDonalds‟ fault is not a good strategy for me. Public will
continue to perceive McDonalds‟ as irresponsible to this issue. Hence, McDonalds‟
should turn this obstacle into opportunity through transparent communication. Increase
the public understanding on how McDonalds‟ treat those chickens before they were killed
and show the public that McDonalds‟ concern on what the public want. This might be
achieving by inviting the media to interview McDonalds‟ plant and farms. This strategy
may change the negative perception of the public into positive when they know
McDonalds‟ actually do care on the rights of animals too.
7.0 References
Advamerg, Inc. (2012). McDonalds‟ Corporation – Company Profile, Information,
Business Description, History, Background Information on McDonalds‟ Corporation.
Retrieved March 20, 2012, from
http://www.referenceforbusiness.com/history2/56/McDonald-s-Corporation.html
Baxi, Upendra (1985). Taking Suffering Seriously: Social Action Litigation in the
Supreme Court of India. Third World Legal Studies, 4(1), 107-132.
Chaturvedi Preeti (2008). Super localized me, How McDonalds’ evolved its marketing in
India. WARC.
TONG TIONG VEE APRIL 2012
17. Practical Application in Public Relations Page 17 of 18
CIA The World Fact Book (1996). India. Retrieved March 20, 2012, from
http://www.umsl.edu/services/govdocs/wofact96/121.htm
Dash Kishore (2005). McDonalds‟ in India. Thunderbird, The Garvin School of
International Management, 1-25.
Elizabeth (2009). 10 Best Countries for Vegetarian and Vegan Travel. Retrieved March
20, 2012, from http://gogreentravelgreen.com/green-restaurant-food/10-best-countries-
for-vegetarian-or-vegan-travel/
Hassan Tauqeer (2011). A Short History of McDonalds. Retrieved March 20, 2012, from
http://www.fastfood.com/fast-food-chains/a-short-history-of-mcdonalds/
Hindu-CNN-IBN State of the Nation Survey (2006). The food habits of a nation.
Retrieved March 20, 2012, from
http://hindu.com/2006/08/14/stories/2006081403771200.htm
H.R.P.L. (2010). McDonalds‟ India – Our Values. Retrieved March 20, 2012, from
http://www.mcdonaldsindia.com/aboutus/our-values.html
ILoveIndia.com (n.d.). History of McDonalds‟. Retrieved March 20, 2012, from
http://lifestyle.iloveindia.com/lounge/history-of-mcdonalds-1806.html
Index Mundi (2011). India GDP - per capita (PPP). Retrieved March 20, 2012, from
http://www.indexmundi.com/india/gdp_per_capita_%28ppp%29.html
Jha Raghbendra (2000). Reducing Poverty and Inequality in India: Has Liberalization
Helped?, WIDER Working Paper, 204, UNU/WIDER: Helsinki.
Kaimal Sreejit (2009). A study of the Marketing Strategies of McDonald‟s with special
reference to Indore. Retrieved March 20, 2012, from
http://www.todaydocs.com/index.php?m=url&type=doc&url=http%3A%2F%2Fwww.ma
nagementparadise.com%2Fuploads_blog%2F179000%2F178025%2F0_9788.doc&title=
0_9788
Kulkarni Smita and Lassar Walfried (2009). McDonalds‟ Ongoing Marketing Challenge:
Social Perception in India. Online Journal of International Case Analysis, 1(2).
Lin Doris (2012). McDonalds‟ and Animal Rights. Retrieved March 20, 2012, from
http://animalrights.about.com/od/companies/a/McDonaldsAnimal.htm
Mangleburg T.F. and Virginia Tech (1990). CHILDREN'S INFLUENCE IN
PURCHASE DECISIONS: A REVIEW AND CRITIQUE. Advances in Consumer
Research, 17, 813-825.
TONG TIONG VEE APRIL 2012
18. Practical Application in Public Relations Page 18 of 18
MBA Knowledge Base (2010). Case Study: McDonalds‟ business strategies in India.
Retrieved March 21, 2012, from http://www.mbaknol.com/management-case-
studies/case-study-mcdonalds-business-strategies-in-india/
Rangnekar Amit (2008). Golden Arches: Cases of Strategic Adaption. Retrieved March
21, 2012, from http://www.scribd.com/doc/2303069/Case-McDonalds-India-Launch
Rosenberg Matt (2011). India‟s Population: India Likely to Surpass China in Population
by 2030. Retrieved March 20, 2012, from
http://geography.about.com/od/obtainpopulationdata/a/indiapopulation.htm
Thorn Bret (2011). McDonalds‟: Lessons learned from India. Retrieved March 21, 2012,
from http://nrn.com/article/mcdonald%E2%80%99s-lessons-learned-india
TONG TIONG VEE APRIL 2012