Mcdonalds in Nepal

McDonalds in Nepal

McDonalds is a big brand name which attracts people only because of it name, price and quality of food, moreover it has a global market reaching in many countries. And launching a brand in any particular country needs thorough research especially in a small country like Nepal. In context of Nepal we will have to find out about the market factor, economic factor, environmental factor and competitive factor:

a. Market Factor: Nepal has a small and limited market where most people are in the cities and are conscious about the brand so the target market can easily set and penetrated. There are millions of tourists every year in Nepal and if they can find the place which they are familiar about, it will attract these potential customers to increase the market share. The other important factor that can attract customers is the taste of food which should be in accordance with the need of the local customers. Below is the image Fig; 1.[1] where it show the demand of the these kind of international brand among the young people. The increasing market also creates the huge opportunity for the investors, attracts them and makes easier for the organisation to grow.

But the market in Nepal is very much limited as there are only few big cities where brands are popular, known and followed. McDonalds is a chain and limiting it to few numbers of stores might not be productive and cost worthy as it cost huge amount of money to franchise and getting all that expense from few stores might not be possible. [2]

b. Economic Factor: In a country like Nepal where tourism is an important source of economy, it can attract large number of potential customers. The production cost of its product will be reasonable ok as the labour is cheap, material cost is cheap as it has a local market and large source of import is easily available. And the pricing strategy of the products should be in accordance with the economy of the customers without making any compromise...