Monday, May 24, 2010

Small-town India gorges on MNC restaurant chains

Happy Meals at Gwalior, Zinger Burgers at Vizag, baby corn pizzas at Haridwar and Broccoli pasta in Kota. Multinational restaurant chains are lovin’ it as small-town India gorges on fast food. World’s leading fast food chains such as McDonald’s, KFC and Domino’s Pizza say that for the first time, up to one-fourth of their sales come from tier-two and tier-three towns and cities. They expect this share to grow. And are working on it.

This year, the chain plans to tap towns with one-million-plus population such as Coimbatore and Vizag, says Mr Varma. KFC gets almost one-fourth of its revenues from tier-2 and tier-3 cities and it expects their share to go up to 30% within a year.

These multinationals use mass media advertising to create aspirational value, but localize promotional and marketing activity to maximise impact. While in most cases, the entry-level menus are similar as those offered in the metros, marketers are bundling their goodies to make them more cost-effective. Also, menus are being tweaked to local relevance.

For example, Domino’s promotes more entry-level pizzas at Rs 39 in Pune to reach out to the large student population and offers more vegetarian fare at its stores in Haridwar and Shirdi.
Have you tried them yet?

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