McDonalds Pakistan: Food and Fun Together

Abstract

McDonalds is a leading fast food chain that revolutionized the food industry in the world. In 1980s, many companies expanded into international operations through franchise mode of business. Though these companies wanted to stick to their original knitting, they had to attune themselves to regional preferences. McDonalds’ operations in Pakistan are no different to this theory, but they negated the traditional marketing philosophy of “rule of cumulative attraction “by locating their outlets where their customer segment is in dense concentration.McDonalds defied the “rule of cumulative attraction†and “affluent segment being the trend-setters†by initially locating their outlets in Gulberg, Lahore and Nazimabad, Karachi instead of “Boating basin†where most restaurants were located. Middle class and working classes in Pakistan mostly live in Gulburge and Nazimabad. Fast-food industry thrives on footfall of customers and high volume sales at low prices instead of premium pricing trategies. The very spirit of McDonalds would have been distorted if the general perception amongst the target market had been that “McDonalds is for the richâ€. In 1998, Boating basin a seaside locality near Clifton, Karachi had turned into a food street and all eating outlets opened withinthis vicinity being more averse risk project, Pizza Hut launched its outlet in Boating basin, Karachi in 1993.Though McDonalds is popular, yet there are many challenges before them. In spite of their popularity, the different chains are not able to bring much change in their product range and service conditions. Environmental changes like healthier food preferences, depressive income levels and variety seeking cuisine requirements dictate that innovative and nutritional value added products should replace the traditional products.Keywords: McDonalds Pakistan, Lakson Group of Company, Mission, Fast food Restaurant, Franchise, Burger market.