Showing posts with label Marketing. Show all posts
Showing posts with label Marketing. Show all posts

How did McDonald's corporation won the Indian market.




McDonald’s Corporation is a fast-food legend whose famous golden arches can be found in 118 different countries. The company is the undisputed leader in the quick-service restaurant segment of the hospitality industry, with more than twice the system-wide revenues of Burger King. 

 McDonald’s built its reputation by promising and delivering three things to customers: inexpensive food with consistent taste regardless of location; quick service; and a clean, familiar environment. The company was also a pioneer in the development of convenience-oriented features such as drive-through windows and indoor playgrounds for children. 

 Today, thanks to memorable advertising and intensive promotion efforts, McDonald’s is one of the world’s most valuable brands: In 2012, Interbrand ranked it as the world’s number 7 brand overall (Coca-Cola is number 1). The golden arches are said to be the second-most-recognized symbol in the world, behind the Olympic rings. In the United States alone, McDonald’s typically spends about twice as much on advertising as Burger King and Wendy’s. Today, however, the company faces competitive attacks from several directions. 

 During the 1990s, a wide range of upscale food and beverage purveyors arrived on the scene. For example, consumers began flocking to Starbucks coffee bars, where they spend freely on lattes and other coffee-based specialty drinks. The “fast-casual”  segment of the industry, which includes companies such as Panera Bread, Cosi, and Baja Fresh, is attracting customers seeking higherquality menu items in more comfortable surroundings. Meanwhile, Subway overtook McDonald’s as the restaurant chain with the most outlets in the United States. Some industry observers suggested that, in terms of both food offerings and marketing, McDonald’s was losing touch with modern American lifestyles.

 Until recently, the picture appeared brighter outside the United States. Thanks to changing lifestyles around the globe, more people are embracing the Western-style fast-food culture. McDonald’s responded to the opportunity by stepping up its rate of new unit openings. McDonald’s International is organized into three geographic regions: (1) Europe; (2) Asia/Pacific, Middle East, and Africa (APMEA); and (3) Other Countries. In 2005, the offices of the country heads for Europe and Asia were moved from the U.S. headquarters to their respective regions; now, for example, the head of APMEA manages his business from Hong Kong. Commenting on the change, Ken Koziol, vice president of worldwide restaurant innovation, explained, “McDonald’s was built on a strong foundation of a core menu that we took around the world but we need to make sure we are more locally relevant. Taste profiles and desires are changing.”

 Asia-Pacific The Indian market appears to hold huge potential for McDonald’s. The company opened its first restaurants in New Delhi and Bombay.
In Delhi, McDonald’s competes with Nirula’s, a QSR chain with several dozen outlets; in addition, there are hundreds of smaller regional chains throughout India. The U.S.-based Subway chain opened its first Indian location in 2001; Pizza Hut, KFC, and Domino’s Pizza have also entered the market. The Pizza Hut on Juhu Road in Bombay is housed in a three-story-tall building with large plate glass windows and central air conditioning. On most nights a long line of customers forms outside. 

 Indian demand for meals from the major food chains is growing at a double-digit rate; annual total sales exceed $1 billion. With those trends in mind, McDonald’s identifies strategic locations in areas with heavy pedestrian traffic, such as the shopping street in Bandra in the Bombay suburbs. Other restaurant locations include a site near a  college in Vile Parle and another opposite the Andheri train station; in all, McDonald’s India operated more than 250 locations at the end of 2012. Prices are lower than in other countries; most sandwiches cost about 40 rupees (less than $1). Drinks cost 15 rupees, and a packet of French fries is 25 rupees. 

 A complete meal costs the equivalent of about $2. Because the Hindu religion prohibits eating beef, McDonald’s developed the Chicken Maharaja Mac specifically for India. Despite protests from several Hindu nationalist groups, the first McDonald’s attracted huge crowds to its site near the Victoria railway terminal; customers included many tourists from across India and from abroad as well as locals commuting to and from work. In short order, however, Hindu activists renewed their protests, this time accusing the company of using beef tallow in its cooking. 

 Management responded by posting signs reading, “No beef or beef products sold here,” but the doubts raised by the controversy kept many potential customers away. Since that time, McDonald’s has worked steadily to prove that it is sensitive to Indian tastes and traditions. As is true throughout the world, McDonald’s emphasizes that most of the food ingredients it uses—as much as 95 percent—are produced locally. In addition, to accommodate vegetarians, each restaurant has two separate food preparation areas. The “green” kitchen is devoted to vegetarian fare such as the spicy McAloo Tikka potato burger, Pizza McPuff, and Paneer Salsa McWrap. 

 Meat items are prepared on the red side. Even the mayonnaise is made without eggs. Some of the new menu items developed for India are now being introduced in Europe and the United States.

Reasons to why Coca-Cola Egypt strategy in Ramadan 2016 is hard to anticipate?








From year to year, Egyptians wait for the most important month of the year “Ramadan”. Since Ramadan is knocking the door and few days are left in the countdown and with an increased purchasing power throughout this month. Brands compete fiercely in the market during this month especially the production companies.
However, the marketing battle that takes the Egyptian society sights away, is the battle between Coca-Cola and Pepsi during Ramadan.
Throughout the previous years, both companies designed and executed wonderful campaigns and strategies to benefit the most from this special occasion. Our concentration will be on Coca-Cola Company analyzing their strategies in previous Ramadans.

As most of us concluded, Coca-Cola’s main target segment are the youth segment. Actually during Ramadan, Coca-Cola did not follow just one marketing strategy but they designed their strategy based upon situations. Yet, it seems that Coca-Cola intentions and concentration was to increase their sales volume during Ramadan every year.

Coca-Cola introduced the campaign “Nerga3 tany wahed” in 2013, which included a song by famous youth band “Cairokee” that aimed to remind people they are all Egyptians after having many political disputes between them. The youth loved the ad, loved the song and was emotionally touched by the idea.

In 2014, Coca-Cola had plans of conquering the market and introduced “Coca-Cola ahla ma3” by putting a huge variety of Egyptian names on cans and a variety of activity names on the family bottles along with an energetic ad. Egyptian society went crazy and they really enjoyed searching for their names. The campaign made a huge success and Coca-Cola achieved high sales volume that Ramadan.

Previous Ramadan, they did not introduce any TV ads. Coca-Cola marketing research was rewarding in satisfying their youth customers whom asked not to spend money on ads but yet, spend the money on charity works and so did Coca-Cola. With Coca-Cola spending on developing poor villages, it only introduced the ad “Thanya wahda tefreq” on Facebook and YouTube. Coca-Cola did benefit as they satisfied their customers and that is the most important aspect in marketing.

Coca-Cola knows exactly how to reach the desired target segment “The Youth” and what makes Coca-Cola effective in reaching them, is the operation excellence in executing the strategies designed. Moreover, every year the company designs different strategies in Ramadan which makes it unpredictable.


How do you think Pepsi reacted to Coca-Cola’s campaigns? What is Coca-Cola up to in Ramadan 2016?

What is Pepsi Egypt preparing for Ramadan 2016? Will they be using the same strategy?


Since Ramadan is knocking the door and few days are left in the countdown to the most important month for Egyptians. In a market rich with millions of citizens, brands compete fiercely in the market during this month especially the production companies. However, there is one battle that not only marketers wait for but also the Egyptian society, the battle between Coca-Cola and Pepsi during Ramadan.

Throughout the previous years, both companies introduced astonishing campaigns during Ramadan with a variety of marketing strategies to benefit the most from this special occasion. In this article, we are going to analyze Pepsi and their strategy throughout previous Ramadan’s.


From 2013 and for 3 consecutive years, Pepsi with the help of it's partner "Chipsy" adopted the nostalgia in their marketing campaigns. Nostalgia means sentimentality for a period with happy personal association. With Pepsi introducing the first nostalgia marketing campaign involving past Egyptian TV characters “Bogy & Tamtam”, “Nelly”, “Fatota” and the biggest surprise “Fouad Al-Mohandas” a famous Egyptian actor who died in 2006. The campaign created a huge buzz in the society and was touching to almost every Egyptian especially those who were contemporary with those characters.


In 2014, Pepsi introduced “Yalla Nekamel Lametna” with nearly the same previous campaign idea but with different characters including “Abo-auf Band” and “Motzawegon” stage act stars. Once again Pepsi was successful in creating nostalgia to the people.


Continuing their strategy in 2015, introducing one of the most touching marketing ads “Khoyot men noor” starring the famous singer “Hussein Al-jassimi”, famous current celebrities and a surprise from Pepsi to remind Egyptians about the famous actor “Ahmed Zaki”.

 

With these campaigns, Pepsi added to their brand value in Egypt, capturing sights to its products and making it must to choose Pepsi when you stand alongside a soft drink refrigerator in the supermarket. Pepsi knows well that Egyptians are emotional and using nostalgia is the right choice to be more memorable in the heads of Egyptians.

 


How do you think Coca-Cola reacted to each campaign? What is Pepsi up to in Ramadan 2016?

Etisalat Egypt Reacts To Vodafone’s Comeback And Bounces Back With “Nezam Hekaya”.


Etisalat Egypt reacts to Vodafone’s comeback and bounces back with “Nezam Hekaya” marketing campaign.

Marketing battle is like a chess game, one player makes a move and another player tries to anticipate the next move and makes a move that would ruin the other player’s plan. Not that complicating, isn’t it?

With Etisalat Egypt Spending a huge marketing budget in previous years and acquiring a large base of customers including a high youth percentage. Yet, at some stages a company could pass through maturity stage or even a declining stage. After Vodafone’s Revolution at the Egyptian telecommunication market and achieving huge success recently through its campaigns. Etisalat Egypt designed a come back starting with the campaign“Nezam Hekaya”.

“Nezam Hekaya” is the newest Etisalat marketing campaign which aims to introduce new offerings with transferring perception of being better than other operators and by indirectly attacking the competitor’s offerings with their funny ads that are carried by "Tarek Nour" one of the biggest marketing agencies in the middle-east.

The best way to attack is to defend, Etisalat Egypt introduced this defensive marketing campaign for many reasons:
  •     To keep the competitors out of balance.
  •     To attack the competitor so it has to pull back and defend itself.
  •     Occupying most desirable space in its consumers mind and preventing them from turning to competitor.
  •     Trying to make competitor’s customers mind off-balance.
  •       Ruining the competitor’s current and future plans.
  •      Attracting potential customers with the current offerings.


In the marketing world, you have to ethically fight in the market, you may pass through crises or you might be the market leader. In both cases, you should be ready to defend and attack and that’s what Etisalat Egypt has been doing recently, until they truly bounce back again with huge campaigns. However, Etisalat Egypt recently signed celebrities, Mohammed Salah and Mohammed El-Neny (Famous Egyptian Players) and it seems they are up to something huge.


How did Vodafone manage a comeback in the Egyptian market through Vodafone "IN" ?

Previous years were tough for the Egyptian market due the economic problems faced that affected consumer’s purchasing power. However, the fierce competition of telecommunication market kept going with Mobinil deflecting from the competition, Etisalat and Vodafone went through great battle. Etisalat spent a huge marketing budget and with some creative variety of offerings, it acquired a large base of customers including great percentage of youth.
A long time ago, Etisalat was leading the market until a year ago were Vodafone Egypt designed a comeback and started executing it, starting with “Al-Mared” and Ahmed Meky in “Felix” continuing to sponsoring once again “Al-Ahly Club” and to what we are going to talk about “Vodafone IN”

Vodafone IN by Vodafone is a successful Service offering that was mainly targeted for youth. Vodafone started its marketing with street advertisement boards everywhere with just the words “IN – Without you it’s not complete” leading people to wonder what is “IN”. Vodafone attracted everyone’s attention with the huge number of advertisement boards occupied and what could be “IN”. Moreover, they created a Facebook page named “IN” only and started their count down reveling some of youth favorite artists. Due to the huge propaganda and the excellence in executing the marketing strategy, people in thousands including a huge number of youth surfed a browser tab with their Facebook page open waiting for “IN” to revel its identity.
After the wait, “IN” Reveled itself with a wonderful advertising song including variable youth segments favorite singers in Egypt and the Vodafone logo. People loved it, with the right offers, youth started changing to “IN”. Vodafone did not stop here, it continued recently making a tour around Egypt with those singers under the name of “IN tour”, creating loyalty and attracting more of the fans.

Eventually, we all love music, music for youth is life and so reveling yourself with an advertising song makes the brand much more memorable than the normal advertising ad. How intelligent it is from Vodafone Egypt to create this huge propaganda for an offering. The question to be answered, how do you think Etisalat reacted?

Ever wondered what happened to Mobinil Egypt? Who is Orange ?


What happened to Mobinil? Is Mobinil and Orange Egypt the same operator?
Lately, rumors surrounded the Egyptian society about what is happening to Mobinil Egypt and why it is turning into Orange Egypt. Some people said Mobinil was sold to orange and others said orange just invested in Mobinil to save it. Actually, Mobinil is just another name to the original brand orange. Yes, as you saw, Mobinil is the same institution as orange. However, lots of people did realize that eventually.
Mobinil Egypt was the first mobile operator to enter the Egyptian market in 1998. It made its own success but as Vodafone and Etisalat penetrated through the market and because of some crucial mistakes from Mobinil, Mobinil lost its market share gradually. The mother company “Orange” couldn’t withstand losing such a rich telecommunication market as Egypt and therefore, tried to save their market share in Egypt and gradually could return to being a market leader. 

 Orange started with a corrective strategic plan in which it starts by washing off all of the mistakes Mobinil did and turning into “Orange” with the black background and the orange box. First, it invested a huge marketing budget where it removes all of the old logo from shops, their customer service shops and put their new logo on. Recently, it is introducing itself to the market and converting customer minds into the new brand through advertising including street banners, introducing new offerings and rewarding their current customers as well.

The corrective strategic plan was the best choice orange could do to save its brand in Egyptian market and try to retain its value in the Egyptian market. 
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Marketing Hub aims to replace the wrong marketing concepts in the Egyptian society with the right concepts and knowledge through our articles. We share experience with our audience through articles and we are wide open to communicate with everyone in any field who aims to understand more about marketing or wants to discuss and analyze any market update. We offer consultation in developing your brand, designing brand strategies, designing marketing strategies, generating advertising campaign ideas and developing business plan. Remember, marketing is an art not a job. We are wide open to communicate with creative individuals and join our business community.

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