Fast Food Giants Expand to Indian Market: Globalization and Entry Strategies - Essay Sample

Paper Type:  Essay
Pages:  4
Wordcount:  897 Words
Date:  2023-01-11


As the multinational fast food corporations are expanding to various markets, key partnerships between the domestic firms and international food corporations activities have increased over the past few years. Globalization has also played a key role in the advancement of the fast food industry. Expanding to the Indian market can present opportunities for fast food giants when their entry strategy suits the market. India is an advancing market in the world with the biggest opportunity for a fast-food growth industry. There are numerous aspects that should be considered when expanding into the Indian market. They include demographics, content analysis, ethnographic studies, and culture. The most effective strategy of expanding to India for fast-food firms is product localization to suit the local taste and preferences.

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India is a mixed economy, where both public and private sector businesses operate together to attain economic progress for the nation. The country has numerous large and dynamic private sector corporations which operate in all sections of economic activity-commerce, trade, and industry without extreme intrusion from the government. India's population stands at 1.3 billion meaning that it is a perfect opportunity for multinational fast-food firms. Additionally, the country has more than 360 million people aged between 10 and 24, becoming the world's biggest youth populace. With more young people joining the workforce daily, advancement in the economy, an increasing female, and advanced mobility among consumers, the conventionally hungry has become hungry for a more diverse menu (Panwar and Sidheswar 70).

The Indian fast food industry is advancing quickly because of government goodwill, positive progress and shifting consumer preferences in India. The market size of Indian fast food industry is more than $47 billion. The increase can be attributed to a huge number of working individuals. Thus, numerous foreign brands like Dominos and Yum brands have sought to expand in the Indian market due to the opportunity. Another aspect of the Indian fast food industry is that it is growing at a rate of 30% to 35 percent per year (Pamell 46). This means that it is an ideal market for a multinational company to expand its activities in the country.

National culture plays a crucial role in consumer's behavior and attitudes. It is understood that an individual's conduct in culture groups is highly influenced by the values guiding society. In India, there is a diversity of language and ethnicity. Collectivism is highly prevalent in India and is characterized by a strong social system, which provides people with the capability to differentiate between in-groups and out-groups. India culture is conventional; this is mostly illustrated through more of dressing and food preferences. Most Indians prefer local foods over foreign dishes (Mutum, Sanjit and Kipnis 88). Therefore, a fast food company intending to open its business in India must conform to the cultural values to become successful.

The degree of adaptation of Indian consumers is significantly higher than in other countries. As long as the product is localized, Indian consumer will embrace it. For instance, in its expansion strategy, McDonald's substituted its core product Big Mac with Maharaja Mac. The fast-food giant was also strategic as it served the product with the mutton patty rather than beef patty to avoid any offense with the religious beliefs on the Indian community. It is notable that about 80% of the Indian population is Hindu and believe that cows are religious animals thus should not be slaughtered. Additionally, 12 percent of the Muslims in the country believe that it is a taboo to consume pork. Therefore, it requires a careful market consideration to expand into the Indian market. Another aspect of the Indian is promotion (Sameer 4). Family plays a crucial role in the Indian country and thus, fast food ventures should position themselves as family restaurants.

The best strategy for expanding to India should be to follow a similar approach as the one applied in the domestic market. The strategy is commonly known as a localized strategy. Localized approaches entail developing marketing strategies for a distinct nation depending on its regional, cultural and national exclusivity. Thu, international fast food firms apply localization approach by stressing on the reality that globalization of a product will be successful when it is adjusted to that particular region. Localization accentuates customer satisfaction through the adaptation of a product. When a firm chooses to adopt the characteristics of the Indian environment, it will have to adopt the cultures of the Indian people.


Conclusively, the localization strategy is the most suitable expansion approach in the Indian market. India is a mixed economy and embraces both the private and public partnerships in business. The country's fast food industry is also growing quickly thus presenting an opportunity for expansion. National culture plays an influential role in determining the consumer's tastes and preferences. Indian people prefer a culture of collectivism over individualism. Therefore, any firm intending to expand into this market should position itself as a family restaurant. Additionally, customization of products is crucial due to the culture of the Indian community.

Works Cited

Mutum, Dilip, Sanjit K. Roy, and Eva Kipnis. Marketing Cases from Emerging Markets. , Heidelberg: Springer. 2013. Internet resource.

Panwar, Diksha and Patra, Sidheswar. Localization in Fast Food Industry: A Case Study on Mcdonald's Strategy in India. Journal of Arts, Science & Commerce. 3.1 (2017): 70.

Parnell, John A. Strategic Management: Theory and Practice. , Thousand Oaks SAGE Publications. 2013. Internet resource.

Sameer, Sharanbir Kaur. "Strategy and Repositioning the Brand McDonald's in India." International Journal of Scientific and Research Publications 2.9 (2012): 1-5.

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Fast Food Giants Expand to Indian Market: Globalization and Entry Strategies - Essay Sample. (2023, Jan 11). Retrieved from

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