A. A AaBbcc Aabbccbc AaBbce AaBbcc A T Normal 1 No Spac... Heading 1 Heading 2 Paragraph Styles Postnineties, the Indian business environment has undergone a sea change. This change has been primarily unleashed by ushering in liberalization and opening up of country's shores to foreign companies. Among the areas that have attracted the interest of multinationals operating in different countries, the major ones have been insurance, banking, hospitality, information and entertainment, communication and a host of industrial services. Merely allowing the entry of foreign players does not amount to growth of opportunity, for India's economic, social, cultural and demographic constitution is qui different from that prevailing in the western side of the globe. This is especially true in the context of services. Services consumption is usually embedded in the socio-psychological space. This gives them cu tural definition and values. But Indian market is an attractive destination because of its size and rapid economic growth rate. One billion plus population base may not constitute market but even a small fragment of this large base could translate into a huge opportunity for a company that serves the hunger needs of its customers albeit with different menus and offerings. Mac Duck is an American multinational company with over 75 years of heritage. The company has footprints in over a hundred countries including Japan and China. It has perfected a unique model of service. Unlike the established concept of dining wherein restaurants offer a large set of items to cater to differing palette requirements, Mac Duck pioneered the reverse concept. It offers a very limited range of entrees but offers them consistently, fast and in a clean environment. In the US, Mac Duck is a synonym for quality burgers, especially beef burgers. The company has evolved and perfected its logistics and operations such that even in services, the offerings are standardized across different outlets and across time. When one sees the signage of Mac Duck on a restaurant one is assured of what is on offer and how it will be delivered. Burger in the western context is so common to satisfy hunger pangs that finding something uncommon is very difficult. It is this commonness that makes burger joints flourish in every nook and corner of every street. Although burgers are sold by so many players but nothing stands out. Unique by Mac Duck's philosophy has been to precisely offer something uncommon in a very common product. And how well is this value proposition appropriated by the Mac Duck brand is working can be discovered by a simple word association test. Three most commonly associated words with the brand are: burgers, i TO Styles wybowce Aa 21 AaBbcc AaBbccDc AaBbc Aabbcc Aa A. A I Normal 1 No Spac.. Heading 1 Heading 2 Paragraph uncommon is very difficult. It is this commonness that makes burger joints flourish in every nook and corner of every street. Although burgers are sold by so many players but nothing stands out. Unique by Mac Duck's philosophy has been to predsely offer something uncommon in a very common product. And how well is this value proposition appropriated by the Mac Duck brand is working can be discovered by a simple word association test. Three most commonly associated words with the brand are: burgers, fast and hygiene. This proposition may not make sense to all prospects that look for hunger satisfaction but it does make immense sense to a select few who want quick, reliable and simple solutions to their need to satisfy hunger. The business model that Mac Duck follows is based on turnover. It offers limited meru items and delivers them fast so that more customers can be served. This is volume-based str tegy. And by and large it operates like a take away joint. It offers minimalist seating and uses customer as a resource to minimize the cost of operations. The customers are expected to walk up to the delivery counter to give order, they are not served on the tables and are expected to clean their tables. Th is method of operation is a departure from the conventional model. The key idea is to minimize cost and effect time savings such that turnover is maximized. Limited menu entrees reduce the divergence in the operations and thereby allow possibilities of standardization. In India, Mac Duck entered the market following its unique franchise route. Many business houses wanted to forge collaboration with this unique company. But it narrowed down to a partner that exhibited willingness and ability to actually measure up to the exacting standards imposed by the company. Mac Duck applied all of its international standards in an uncompromising manner. This indeed increased the investment requirement to set up an outlet. But the faith in the concept that has found acceptance in all kinds of cultures gave support to the idea. Mac Duck's entry in India, a country known for its cultural diversity where food preferences change every hundred kilometers, had its own critics. Skeptics believed that Mac Duck is likely to bite the dust, as many other multinationals have, in the past. The company adapted tes Any A. Normal 1 No Spac... Heading 1 Heading 2 Paragraph Styles its menu entrees to suit the Indian palette. It made sure that there were no cultural violations to upset sentiments of various cultural groups. When its first restaurant opened in the capital it, had long winding queues. The initial excitement lasted for about a month and outlets did business at a blistering pace. After the initial experimentation, the sales began to stabilize at levels that upset the break-even calculations. This concerned the management. Customer turnover was the key to achieving revenue target. Various questions were raised. How can burgers pull Indian whose food preferences are radically different from the western countries? May be people do not like the quality? Is the price too high to be affo Jable? In order to get into the bottom of the matter, managers at the restaurants were asked to monitor the consumers and collect their feedbacks. The idea was to strike a friendly conversation and un over their true feelings. Aft er a couple of weeks of serious observations one thing common that began to be reported to the top management was that people patronizing the Mac Duck outlets were happy and not only satisfied with the price points, cleanliness, staff behavior and ambience. But many potential customers who entered the restaurant did not get converted for the want of availability of seating space. Some customers visited the outlets to grab a quick bite. But many especially the young ones, the college going types spent more time in the restaurant and kept the occupancy high. These customers would buy a burger and a large Coke glass and occupy tables for hours. For them, Mac Duck was becoming a place to hang out for hours in nice and cool environment. Upon observing their behavior, it was also revealed that sometimes they sat in uncompromising manner and caused embarrassment to the people who visited the restaurant with their families. The family customers on the other hand spent high amounts per visit and usually did not stay for longer duration. Upon quizzing about the other customers present, both the groups expressed a dislike about the presence of the other. Family customers were concerned about the exposure of their children to adult behaviors that youngsters often exhibited. At the same time, the young customers found the presence of the elderly discomforting tes $ Discussion Questions: 1. Conduct a Customer, Company, Competitor analysis of Mac Duck. 2. Conduct a Segmentation, Targeting, and Positioning (STP) analysis of Mac Duck