Introduction about company & selected product

McDonald's is globally recognized fast-food chain that has made significant

impact in food industry worldwide. Founded in 1940 in United States,
company has expanded its operations to over 100 countries, serving millions
of customers daily. Known for its iconic Golden Arches, McDonald's has
become synonymous with fast, convenient, & tasty meals (Mcdonalds, 2023).
Figure 1 - McDonalds
Logo
In Sri Lanka, McDonald's made its entry in 1998, becoming popular
destination for fast food lovers across country. company has strategically positioned itself to cater
to local palate while maintaining its international standards of service & quality. Today,
McDonald's operates several outlets across Sri Lanka, serving wide range of products that appeal
to both local & international tastes (Mcdonalds, 2023).

One such product that has been well-received in Sri Lankan market is
Chicken McRice. Recognizing importance of rice in Sri Lankan diet,
McDonald's introduced Chicken McRice, meal that combines
familiarity of local cuisine with convenience of fast food. Chicken
McRice is unique offering that features portion of rice, accompanied
by choice of grilled chicken or crispy fried chicken, & served with Figure 2 - Chicken McRice
spicy sambal sauce, popular condiment in Sri Lankan cuisine
(Mcdonalds, 2023).

The introduction of Chicken McRice demonstrates McDonald's commitment to understanding &

catering to local dietary preferences of its customers. It's testament to company's global strategy
of "think global, act local," allowing them to successfully penetrate & thrive in diverse markets
such as Sri Lanka.
 1) Influence to Sri Lankan customers to buy product
This product has been influenced by local dietary habits & preferences of Sri Lankan customers.
Here's how McDonald's has influenced Sri Lankan customers to buy Chicken McRice using model
of buying behavior:

1. Problem Recognition: McDonald's identified gap in market for fast food that caters to
local palate. They recognized that Sri Lankan customers, while interested in fast food, also
wanted options that felt familiar & aligned with their dietary habits. Thus, Chicken McRice
was introduced.

2. Information Search: McDonald's has strong online & offline presence. They provide
detailed information about their products, including Chicken McRice, through their
website, social media platforms, & in-store promotions. This makes it easy for customers
to find information about product.

3. Evaluation of Alternatives: McDonald's positions Chicken McRice as healthier

alternative to typical fast-food options. They emphasize that it's made with fresh
ingredients & is good source of carbohydrates, appealing to health-conscious consumers.

Criteria McDonald's Chicken Pizza Hut KFC Chicken Burger King

McRice Chicken Rice Rice Chicken Rice
Taste 8 7 7 7
Delivery
9 8 8 8
Speed
Customer
9 8 7 7
Service
Value for
8 7 7 7
Price
Quality 9 8 7 7
Total 43 38 36 36
Based on above evaluation, McDonald's Chicken McRice outperforms other alternatives in all
criteria. It has highest score for taste, indicating that it is most preferred option in terms of flavor.
delivery speed & customer service of McDonald's are also rated highest, suggesting that customers
are satisfied with service they receive. In terms of value for price & quality, McDonald's Chicken
McRice again scores highest, indicating that customers perceive it as offering good value for
money & high-quality food.

4. Purchase Decision: McDonald's uses various promotional strategies to encourage

purchase of Chicken McRice. These include discounts, combo meals, & special offers.
They also ensure that product is readily available across all their outlets in Sri Lanka,
making it convenient for customers to purchase.

5. Post-Purchase Behaviour: McDonald's invests in providing excellent customer service to

ensure customer satisfaction after purchase. They encourage feedback & reviews from
customers to understand their experience with product & make improvements if necessary.

In terms of personal care market strategies, McDonald's has leveraged increasing health
consciousness among Sri Lankan consumers. They've emphasized freshness & nutritional value
of Chicken McRice, aligning it with trend towards healthier eating habits. This has made Chicken
McRice appealing to customers who are looking for fast food options that are also good for their
health.
Figure 3 - Buyer Decision Process
PESTEL Analysis for McRice in Sri Lankan Market

Figure 4 - PESTEL Framework

Political: political environment in Sri Lanka is relatively stable, which is beneficial for businesses
like McDonald's. However, any changes in government policies related to food & health
regulations, import/export restrictions, & taxation could impact operations & profitability of
McDonald's (EdrawMax, 2022).

Economic: Sri Lankan economy has been growing steadily, leading to increased consumer
spending. However, inflation & exchange rate fluctuations could affect cost of raw materials for
McDonald's, which may in turn affect price of McRice (EdrawMax, 2022).

Sociocultural: Sri Lankan consumers have preference for rice-based meals, which makes McRice
popular choice. fast food culture is also growing in country, especially among younger generation.
However, there is also growing trend towards healthy eating, which could impact consumption of
fast food (Greenspan, 2022).

Technological: Technological advancements have made it easier for consumers to order food
online. McDonald's has been leveraging this trend through its online delivery platform. However,
company needs to continuously innovate to stay ahead of competitors.

Environmental: There is growing awareness about environmental issues in Sri Lanka.

McDonald's needs to ensure that its operations are environmentally friendly. This includes aspects
like waste management, use of sustainable materials for packaging, & energy-efficient practices.

Legal: McDonald's needs to comply with all local laws & regulations related to food safety,
hygiene, employment, & business operations. Any changes in these laws could impact company's
operations (Greenspan, 2022).
2) Characteristics of customers who exist in Fast food market
2.1. segmentation variables used by McDonalds
1. Urbanization (Geographic): McDonald's likely considers level of urbanization in
different areas. Chicken McRice is likely marketed more heavily in urban & suburban areas
where there is higher concentration of fast food consumers. These areas, especially cities
like Colombo & Gampaha, have higher demand for fast food due to fast-paced lifestyle of
residents (Wondershare Edrawmind, 2023).

2. Age (Demographic): McDonald's likely considers age of their customers. Chicken

McRice, being quick & easy meal option, may be targeted towards working adults who
have little time to cook at home.

3. Family Life Cycle (Demographic): McDonald's may also consider family life cycle of
their customers. Chicken McRice could be marketed as meal that can be shared & enjoyed
by whole family, making it appealing to families (Wondershare Edrawmind, 2023).

4. Occasions (Behavioral): McDonald's may consider different occasions when customers

consume their food. Chicken McRice, being quick & easy meal option, may be marketed
as suitable choice for various occasions, such as lunch breaks, quick dinners, or family
outings (Dudovskiy, 2022).

5. Attitude towards Health (Psychographic): McDonald's likely considers attitudes of their

customers towards health. Chicken McRice, with its emphasis on fresh ingredients &
nutritional value, may be targeted towards health-conscious consumers who are looking
for healthier fast food options.

6. Lifestyle (Psychographic): McDonald's may consider lifestyle of their customers.

Chicken McRice, being quick & easy meal option, may be targeted towards customers who
lead busy lifestyles & value convenience (Dudovskiy, 2022).

These segmentation variables allow McDonald's to identify & target specific groups of customers
within larger market, ensuring that their marketing efforts are focused & effective.
2.2. Targeting strategy chosen by company
This strategy involves targeting several market segments with different offerings for each segment.
Here's how McDonald's applies this strategy:

1. Geographic Targeting: McDonald's targets urban & suburban areas, particularly in cities
like Colombo & Gampaha, where there is high concentration of people with busy lifestyles.
These areas have higher demand for fast food due to fast-paced lifestyle of residents
(Dudovskiy, 2022).

2. Demographic Targeting: McDonald's targets working adults who have little time to cook
at home. Chicken McRice, being quick & easy meal option, appeals to this demographic.
increasing number of females in workforce may also be significant demographic segment.
Additionally, McDonald's targets families, as Chicken McRice is meal that can be shared
& enjoyed by whole family (Qualtrics, 2018).

3. Behavioral Targeting: McDonald's focuses on customers who value convenience &

speed. Chicken McRice, being quick & easy meal option, appeals to customers who
frequently eat out due to their busy lifestyles. Additionally, McDonald's targets customers
who are looking for healthier fast food options, as Chicken McRice is positioned as
healthier alternative to typical fast food.

4. Psychographic Targeting: McDonald's targets customers who are brand conscious &
value quality. Chicken McRice, with its emphasis on fresh ingredients & nutritional value,
appeals to health-conscious consumers. McDonald's also targets customers who actively
seek information online before making purchase decision, providing detailed information
about Chicken McRice on their website & social media platforms (Qualtrics, 20.

The reason for choosing this strategy is that it allows McDonald's to cater to diverse needs &
preferences of Sri Lankan market. By offering product that is familiar to local palate (Chicken
McRice), McDonald's is able to attract wide range of customers, from those who prefer traditional
Sri Lankan cuisine to those who are looking for healthier fast food options. This strategy also
allows McDonald's to differentiate itself from other fast food chains in market.
Figure 5 - STP Marketing Model
2.3. Positioning map

High Taste & Quality

Chicken McRice

Pizza Hut Chicken Rice

KFC Chicken Rice

Low Price High Price

Low Taste & Quality

Figure 6 - Positioning Map

In positioning map, McDonald's McRice is positioned in high quality, slightly lower price
quadrant, which indicates that it offers high-quality product at slightly lower price compared to its
competitors, KFC Chicken Rice & Pizza Hut Chicken Rice.
This positioning suggests that McDonald's has successfully differentiated its McRice product by
offering superior quality at competitive price. This is strategic advantage as it appeals to consumers
who are seeking high-quality meals without having to pay premium price.

The positioning of KFC Chicken Rice & Pizza Hut Chicken Rice in high price, high quality
quadrant suggests that while these products are also perceived as high quality, they are priced
slightly higher than McDonald's McRice. This could make them less attractive to price-sensitive
consumers.

However, it's important to note that while McDonald's McRice has slight advantage in terms of
price & quality, differences are not significant. Therefore, other factors such as brand loyalty, taste
preferences, & convenience could also influence consumers' choice between these products.
3) Marketing Mix
3.1. Product Strategy
The Chicken McRice from McDonald's, product specifically tailored for Sri Lankan market,
exhibits both functional & psychological features.

Functional Features:

1. Local Taste: Chicken McRice is blend of rice & chicken, which caters to local palate of
Sri Lanka. It's fusion of international fast food & local cuisine, providing unique taste
experience (Meyer, 2022).

2. Nutrition: Chicken McRice is balanced meal option, providing good source of

carbohydrates (from rice) & protein (from chicken). It's positioned as healthier alternative
to typical fast food options.

3. Convenience: As fast food item, Chicken McRice is quick & easy to order, either in-store
or via delivery. It's designed to be convenient meal option for people with busy lifestyles
(Meyer, 2022).

Psychological Features:

1. Brand Association: Being product of McDonald's, Chicken McRice is associated with

global brand's reputation for quality & consistency. Customers may feel confident in
product's quality due to their trust in McDonald's brand (Meyer, 2022).

2. Cultural Connection: Chicken McRice, being adapted to local tastes, may create sense of
cultural connection for Sri Lankan customers. It shows that McDonald's respects & values
local culture, which can enhance customer loyalty.

3. Health Perception: By positioning Chicken McRice as healthier fast food option,

McDonald's may influence customers' perceptions of product. Customers who are health-
conscious may feel good about choosing Chicken McRice, seeing it as healthier choice
(Shastri, 2021).

These functional & psychological features work together to create product that is not only
appealing in terms of taste & nutrition, but also resonates with customers on deeper, psychological
level.
 Figure 7 - Mcrice package

3.2. Pricing Strategy

McDonald's employs combination of competitive pricing & value-based pricing strategies for its
Chicken McRice product in Sri Lankan market.

Competitive Pricing: McDonald's sets price of Chicken McRice (approximately LKR 370.37) in
line with prices of similar products offered by other fast-food chains in Sri Lanka. This strategy is
used to attract large number of customers & to compete effectively with other fast-food restaurants
in country. McDonald's aims to offer product that is not only appealing in terms of taste & quality
but also affordable for majority of consumers (Hitesh Bhasin, 2018).

Value-Based Pricing: In addition to competitive pricing, McDonald's also uses value-based

pricing. This means that price is set based on perceived value of product to customer. Chicken
McRice, being fusion of international fast food & local cuisine, offers unique value proposition to
Sri Lankan customers. price reflects this unique value, as customers are willing to pay for
convenience, taste, & brand reputation associated with McDonald's (Hitesh Bhasin, 2018).

These pricing strategies, combined with McDonald's strong brand presence & marketing efforts,
help ensure success of Chicken McRice product in Sri Lankan market. However, it's important to
note that prices can vary slightly depending on location within Sri Lanka & any ongoing
promotions or deals. McDonald's often runs special offers & discounts, which can temporarily
reduce price of their products.
3.3. Distribution strategy
McDonald's follows multi-channel distribution strategy to make its Chicken McRice product
available to customers in Sri Lanka. Here are key components of this strategy:

1. Physical Restaurants: McDonald's has multiple outlets across Sri Lanka, especially in
urban & suburban areas. These restaurants serve as primary distribution channel for
Chicken McRice product. Customers can walk into any McDonald's outlet & order
Chicken McRice (Uk Essays, 2022).

2. Drive-Thru Service: Some McDonald's outlets in Sri Lanka offer drive-thru service. This
allows customers to purchase Chicken McRice without leaving their vehicle, which adds
convenience & saves time.

3. Home Delivery: McDonald's Sri Lanka also offers home delivery service. Customers can
order Chicken McRice through McDonald's website or app, & have it delivered to their
doorstep. This service is particularly useful for customers who prefer to dine at home or
are unable to visit physical outlet.

4. Partnerships with Online Food Delivery Platforms: McDonald's has partnered with
online food delivery platforms to increase distribution of its products. This allows
customers to order Chicken McRice through their preferred food delivery app, providing
additional convenience (Uk Essays, 2022).

This multi-channel distribution strategy ensures that Chicken McRice is widely accessible to
customers across Sri Lanka. It caters to different customer preferences & situations, whether
customer prefers to dine in, pick up their order via drive-thru, or have their meal delivered to their
home. This wide distribution network is key factor in success of Chicken McRice product in Sri
Lankan market.
3.4. Promotional tools
McDonald's uses variety of promotional tools to market its Chicken McRice product in Sri Lanka:

1. In-Store Promotions: McDonald's uses in-store promotions to attract customers who visit
their physical outlets. This could include special offers, combo deals, & limited-time
discounts on Chicken McRice (EduBirdie, 2022).

2. Online Promotions: McDonald's also promotes Chicken McRice on its website & through
its online ordering platform. Customers can see latest offers & deals when they visit
website or use app.

3. Social Media Marketing: McDonald's Sri Lanka has strong presence on social media
platforms like Facebook & Instagram. They use these platforms to announce new products,
share promotional offers, & engage with their customers. For example, they might post
about special deal on Chicken McRice, attracting likes, shares, & comments from their
followers (EduBirdie, 2022).

4. Partnerships with Online Platforms: McDonald's has partnered with online platforms
like MyPromo.lk & DealDeal.lk to promote their products. These platforms share latest
promotions & offers from McDonald's, reaching wide audience of online consumers.

5. Bundled Deals: McDonald's often offers Chicken McRice as part of bundled deal. For
example, promotion I found offered 2 Mc Spicy Burgers, 2 Chicken McRice, & 2 Crispy
Chicken Burgers for just Rs. 1,200. This type of promotion encourages customers to try
Chicken McRice along with other McDonald's products.

These promotional tools help McDonald's reach wide audience & encourage customers to try
Chicken McRice. They also create sense of excitement & urgency around product, especially when
promotions are for limited time.
 Figure 8 - Promotion Strategies of McDonald's

Conclusion
McDonald's has effectively leveraged its global brand strength & local market understanding to
make McRice popular choice among Sri Lankan consumers. company's strategies, from product
development & pricing to distribution & promotion, have been tailored to meet needs &
preferences of local market. McRice's success is testament to McDonald's ability to adapt its
offerings to different cultural contexts. However, fast-food industry in Sri Lanka is highly
competitive, & consumer preferences are continually evolving. Therefore, McDonald's must
continue to innovate & adapt its strategies to maintain its market position & ensure continued
success of McRice.