In September 2024, McDonald’s India (West and South) launched the McCrispy Chicken burger, a globally renowned menu item, tailored to cater to the evolving tastes of Indian consumers. Alongside its vegetarian counterpart, the Crispy Veggie burger, this new addition strengthens McDonald’s presence in the “large filling burger” category.

The launch comes during a period of mixed market trends, with urban demand declining and rural consumption showing signs of growth. Simultaneously, there has been a rise in premiumisation across consumer segments. Rival QSRs like Burger King have been introducing affordable menu options to capture price-sensitive customers, adding to the competitive landscape.

Understanding Market Dynamics
The broader FMCG sector has also noted the challenges in urban markets. Industry leaders like Nestlé India’s Suresh Narayanan and Tata Consumer Products highlighted “pressure points” and “softness” in urban demand during this period. McDonald’s, however, seeks to counter this trend by leveraging its diverse offerings, catering to both premium and affordable segments.

The McCrispy’s Strategic Role
According to Arvind R P, Chief Marketing Officer of McDonald’s India (W&S), the McCrispy was introduced after extensive market research identified an opportunity in the large filling burger segment. Priced at Rs 199 (or slightly higher depending on location), the McCrispy strategically bridges the gap between affordable and premium offerings.

“The McCrispy is not a premium product by our definition. We consider a product priced at Rs 250 or above, like the Maharaja Mac, to be premium,” Arvind explained. By positioning the McCrispy just below this threshold, McDonald’s caters to consumers seeking filling yet accessible options.

Localisation for Indian Tastes
Although the McCrispy is a global product, its Indian iteration reflects the brand’s commitment to localisation. The inclusion of pepper mayonnaise, for instance, caters specifically to Indian taste preferences while retaining the burger’s core identity—a large, crunchy, and satisfying meal.

Balancing Affordability and Premiumisation
McDonald’s India is focusing on two consumer categories:

Affordable Options: Entry-level products like the Rs 75 McAloo Tikki and Rs 76 Chicken Surprise Burger remain pivotal in attracting price-sensitive consumers.
Larger, Filling Burgers: Offerings like the McCrispy target families and consumers seeking more substantial meals, ensuring loyalty and retention.
This dual strategy enables McDonald’s to maintain a broad consumer base while addressing evolving consumption patterns.

Competition and Response
The competition in the QSR segment is intense. Burger King’s introduction of an affordable Rs 69 menu item has upped the ante in the affordability race. McDonald’s has responded by strengthening its value-oriented offerings, such as McSaver combos and the Chicken Surprise Burger, while simultaneously amplifying the appeal of the McCrispy.

Arvind noted, “Our Chicken Surprise Burger is performing exceptionally well, and we’re channeling resources to strengthen both the Chicken Surprise and McCrispy categories.”

Future Plans and Variants
McDonald’s is open to exploring line extensions for the McCrispy, inspired by the success of its McSpicy range, which includes Deluxe and Premium variants. This flexibility allows the brand to innovate and stay relevant to diverse consumer preferences.

Omni-Channel Focus
The McCrispy’s advertising campaign highlights its suitability for at-home consumption, aligning with McDonald’s omni-channel strategy. While delivery and takeaway were central to the launch campaign, the burger has also performed well in dine-in settings, demonstrating its versatility.

Building Loyalty and Expanding Reach
McDonald’s strategy hinges on balancing recruitment and retention:

Recruitment: Affordable products like the McAloo Tikki and Chicken Surprise Burger attract new customers, particularly those looking for value-for-money options.
Retention: Filling burgers like the McCrispy cater to loyal family customers seeking substantial meals.
Early feedback indicates strong demand for both the Chicken Surprise and McCrispy, highlighting their appeal across consumer segments.

Conclusion
With the McCrispy Chicken burger, McDonald’s India is navigating a complex market by addressing affordability and premiumisation simultaneously. By customising global products to suit Indian tastes and focusing on an omni-channel approach, the brand demonstrates its ability to adapt to dynamic consumer needs. In a competitive QSR landscape, the McCrispy marks another step in McDonald’s journey to remain a preferred choice for diverse audiences.

Author: Sonali Kamble