Asian Journal of Technology & Management Research Vol.

01 – Issue: 01 (Jan - Jun 2011)

GLOCALIZATION IN FOOD BUSINESS: STRATEGIES OF

ADAPTATION
TO LOCAL NEEDS AND DEMANDS

Dr. Ajai Prakash1

Dr. V . B. Singh2

ABSTRACT

Food industry, the world over, is witnessing unprecedented increase in the number of
multinational enterprises. These multinational enterprises, when deciding to expand their
operations to a new country, have to make a choice between following uniform business
strategies as in their home country or modify their strategies to suit the host country socio-
economic and political environment. Given the economic cost of modification of business
strategies, the choice has widespread implications for the sustainability of multinational
enterprises. The present paper argues that this decision-making is particularly critical in the
case of multinational food enterprises because of large scale variability in food habits across
countries and even within a country. Drawing from case studies of three multinational food
enterprises in India, the paper points out that, in order to operate successfully in their host
countries, the multinational food enterprises must adopt Glocalized strategies in marketing,
product development, advertisement etc.

Keywords: Glocalization; Multinational Food Enterprises; India; Food

I.0 INTRODUCTION
Attracted by mere size and growth potential of emerging economies’ food sector, a number
of multinational food enterprises (MNFEs) have entered or are in the process of entering
these markets either through FDI or joint ventures. Strategic alliances between local food
enterprises and multinational food companies have also increased manifold in the recent past.
This increasing globalization process has altered the international competitive dynamics in
the food industry. The dynamism in competitive global markets calls for fundamentally
different vision and strategic thinking in the food companies.

In their host countries, the multinational enterprises have the option of choosing two
fundamental strategies of marketing their products and services: globalized strategies or
localized strategies. Globalized strategies or globalization involves developing marketing
strategies as though the world is a single entity. This means marketing of standardized

1 Assistant Professor, Department of Business Administration, University of Lucknow, Lucknow.

2 Vice Principal & Associate Professor, RKG Educational College, Lucknow.

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products using standardized marketing mix in the same way everywhere. Organizations
employ the standard products, promotional campaigns, prices and distribution channels
across all markets considering the world to be a single market. Localized strategies or
localization, on the other hand, involves marketing strategies for a specific region according
to its cultural, regional and national uniqueness. However, some multinational enterprises
apply hybrid strategies, commonly referred to as Glocalization. This group of strategies
combines the globalization and localization strategies by emphasizing on the fact that
globalization of a product will succeed when the product or service is adapted specifically to
that region.

In this paper, based on learning from three cases of MNFEs in India, we argue that in the
food industry, the multinational enterprises can be successful in their host countries, only if
they adopt glocal strategies of marketing mix. This is because food habits develop very early
in life and these vary significantly across cultures. The MNFEs need to understand the
unique food needs of their consumers and serve the global market accordingly.

We elaborate the concept of glocalization in the next section. In section 3, we present why
Lucknow has taken as peripheral area adopting localization. Section 4 elaborates some food
chains in Lucknow. Section 5 discusses about key learning from these cases followed by
concluding remarks in section 6 along with comparative food chains in section 7.

II.0 “GLOCALIZATION” – DIFFERENT PERSPECTIVES

According to the dictionary meaning, the term “glocal” and the process noun “glocalization”
are “formed by telescoping global and local to make a blend” (The Oxford Dictionary of New
Words, 1991 quoted in Robertson, 1995). The term was modeled on Japanese word
dochakuka, which originally meant adapting farming technique to one’s own local condition.
In the business world the idea was adopted to refer to global localization. The word as well as
the idea came from Japan (Robertson, 1995). According to the sociologist Roland Robertson,
glocalization describes the tampering effects of local conditions on global pressures. At a
1997 conference on "Globalization and Indigenous Culture," Robertson said that the term
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glocalization means “the simultaneity (co-presence) of both universalizing and

particularizing tendencies (Raimi, 2003)." Glocalization is a concept that explains the
interactions between global and local dimensions in any strategy i.e. political governance
strategies, business marketing Strategies, media and communication strategies etc. This
concept also explains the failure of some strong strategies, as they do not consider the effect
of cultural diversity and strength of local dimensions. It is considered as creation or
distribution of products or services intended for a global or trans - regional market, but
customized to suit local laws or culture.James D. Wolfensohn (World Bank president 1995-
2005), stated: “Glocalization is of enormous importance because it brings us down from the
global question to the issues at the human scale, and to the issues of humanity and people”.
Ritzer has added another term “grobalization” while discussing glocalization. He refers to it
as “growth imperative for organizations and nations to expand globally and to impose
themselves on the local”, for him globalization is sum total of glocalization and
“grobalization” (Khondker, 2004).

Glocalization is important in all types of businesses from automobiles to comic books and
from mass merchandisers to fast food restaurants. Comics on Spiderman were launched in
India by modifying the original version to suit the Indian markets. The real life name has
been changed from Peter Parker to Pavitra Prabhakar; he wears a loincloth worn by Hindu
men in India. The other aspects of the comic book have also been modified (The Hindu,
2004). These modifications help consumers in the host country relate with the character in a
much better and effective way. Similarly a recent Indian movie “KRISH” portrayed a
superhero, which can be considered a glocalized version of Batman or Superman. In
Germany, Ayurveda style of medication has been glocalized and has been successfully
implemented by Maharishi Mahesh Yogi Group. He has softened the harsh Indian purgation
therapy and concentrated on nutrition advices, on massages and oil applications (Stollberg,
2005). Cultural differences affect efficient working of digital networking environment and
several localized communities are formed. These communities are being managed with the
help of glocalized strategies to facilitate the working of the digital environment (Boyd,
2006).
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The concept of glocalization is particularly important to the food industry because of the
seamless challenges this industry faces due to the typical differences that exist in the food
habits of people belonging to various regions/religions/cultures across the globe. There are
numerous examples of companies doing extremely well in their local markets, but when they
go global, these fail completely. One of the reasons that can be cited is not adhering to the
challenges put forward by cultural and regional differences. Like some animals are
considered sacred in one region and are consumed heavily in some others. Availability of
fruits, vegetables, food grains and other resources is also a hindrance in the globalization
process of the food companies.

Glocalization is seen in the communication aspect of marketing strategy as well, like Coca-
Cola airing different advertisements in India with actor Amir Khan in different characters,
i.e. Hyderabadi, Punjabi, Lucknowi, and Bombay-Bhai and as a Gorkha as well.
Glocalization is indeed the most important concept that is being taken up by the MNFEs. In
fact, the success of any food firm, to a large extent, is determined by the trust that it is able to
gain from the residents of a region.

III.0 PERIPHERAL AREA

Universe of this research are the organizations operating in the Hospitality Industry in
Lucknow city. The Lucknow market was considered for the sampling purposes as the city
has been a seat of learning and culture for long with hospitality being an integral part of the
culture of the city.

On the basis of the research objectives, the executives, hoteliers, front officer manager, hotel
or restaurant manager, food beverage manager, chefs from hotels, resorts, guest houses and
restaurant services based in Lucknow were surveyed and interviewed.

III.1 Why Lucknow and peripheral area has been taken for the Study?
Few places in the world are endowed with such rich cultural traditions as this normative city
of Nawabs. Whether it is history, architecture, music, dance, handicrafts, etiquette or sports,
Lucknow has its own story to tell.
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Occupancy level in Lucknow increased marginally by 0.6% in 2004-05 and rate increases by
10% over the previous year. Lucknow has a very stable market and is witnessing a rise in
average occupancy rate for the last two years. Lately, Lucknow has also seen increased retail
activity (Express Hospitality 2006).

IV.0 GLOCALIZATION – OUTLETS IN LUCKNOW

After economic liberalization in early 90s, India has emerged as one of the fastest growing
economies in the world. The country has registered over 8 per cent growth in GDP in the last
few years. The biggest attraction for international food players is perhaps the sheer numbers
that provide them turnovers that corporate dream of. With 700 million Indians under the age
of 35, India is one of the youngest nations in the world (Euro monitor, 2004). The increase in
disposal income coupled with changing lifestyle of the urban Indian consumers is bound to
create huge opportunities for the food industry especially processed food industry. Realizing
the market potential, many MNFEs have set up their business activities in India. We decided
to undertake case studies of three of these enterprises to examine glocalization strategies
adopted by them.

Next, we present these seven cases.

IV.1 MCDONALD’S IN LUCKNOW

India opened its doors to McDonald’s in October 1996 via 2 joint venture companies-
Connaught plaza restaurant and Hard castel restaurants. Connaught plaza restaurant led by
Vikram Bakshi manages operations and expansions across North India (Delhi, Jaipur and
Punjab)- -and Hard castle restaurants, which is headed by Amit Jatia, manages operations
and expansion across western India (Mumbai, Pune, and Gujarat). In Amit Jatia’s words,
“customers are generally not forgiving.”
• First McDonald’s outlet was opened in East End Mall on 23 Sep 2004
• Second in Sahara Ganj on 26th March ,2006
• Third in Fun Republic in 2008
• Fourth in Phoenix Mall on 18th December ,2010
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IV.1.1OFFERING

A brand is an offering from a known source. McDonald’s carries many associations in the
minds of people. Hamburger, fun, children, fast food, Golden Arches. These associations
make up the brand image.

IV.1.2 FOCUS ON PHILOSOPHY

“We take the burger business more seriously than anyone else.”
When McDonald’s founder, Ray Kroc made that memorable statement, he was letting the
world think about the philosophy and the secret behind McDonald’s phenomenal success.

IV.1.3 QUALITY, SERVICE, CLEANLINESS AND VALUE

It is an unflinching McDonald’s ideology that the customer must always get quality products,
served quickly and with a smile, in a clean and pleasant environment and all at a fair price.”

IV.2 MCDONALD’S INDIA’S EXPANSION PLANS

IV.2.1 RESPECT FOR LOCAL CULTURE

McDonald’s Lucknow has developed a special menu with vegetarian selection to suite tastes
and preferences. McDonald’s does not offer any Beef or Pork items in Lucknow. Only the
freshest chicken, fish and vegetable products find their way into Lucknow restaurants.

IV.2.2 MEETING THE NEEDS OF KEY AUDIENCES

To build long-term business it is essential to retain people once they have become customers.
Customers are not all the same. Market research identifies different types of customers. For
example:
• A Parent with two children might visit. Visits McDonald’s to give the children a treat.
• Children want to visit McDonald’s. As it is a fun place to eat.
• A Business Customer visits McDonald’s during the work day. As service is quick, the
food tastes great and can be eaten in the car, without affecting a busy schedule.
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• Teenagers’ visit McDonald’s as the menu is affordable, and there is internet access in
some restaurants.
• These examples represent just a few of McDonald's possible customer profiles. Each
has different reasons for coming to McDonald's.

IV.2.3 SWOT ANALYSIS OF MCDONALD'S

Strengths
• Strong Brand, strong recognition
• Growth afforded by franchise model allows McDonald's to retain control of brand
while building a corporation with significant capital infusion from franchisees.
• Fast food model---standardized food preparation methods ensuring standardized
quality, centralized procurements leading to higher profits.
Weaknesses
• Perceived lower food standards due to fast food model.
• Profit margins can become slim due to customer's expectation of "inexpensive menu"
and higher food costs.
Opportunities
• New global markets continually opening.
• Economic downturn may force people to opt for less expensive "fast food", rather
than restaurant quality.

Threats
• Nutritional issues. People are becoming more aware of the quality of the food they
eat, and more people are looking for "organic", natural and vegetarian alternatives.
• Obesity Fast food is continually blamed for obesity in children and adults.
• A lengthy recession could hurt fast food chains when pricier chains begin to offer
competitively priced menus with the perception of better quality.

IV.2 .4 MCDONALD’S MARKETING STRATEGY: They consider 3 basic areas.

• The total eating out market gives the broadest competitive context and includes all
Restaurants, Hotels, Pubs, and any other outlet where people eat.
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• They also focus on the Quick Service Restaurant Sector. This includes all the obvious
competition and also fish and sandwich shops-any other outlet where food is served quickly.
• The final sector that they focus on is defined as the Burger House Sector. This looks
only at restaurants serving hamburgers including Burger King, Wimpy, Wendy’s and all
independent Burger bars.

IV.2.5 MARKETING OBJECTIVE

A Marketing plan must be created to meet clear objectives. Long-term objectives are broken
down into short-term measurable targets, which McDonald's uses as milestones along the
way. Results can be analyzed regularly to see whether objectives are being met. This type of
feedback allows the company to change plans. It also gives flexibility.

IV.2.6 THE 7 P's Of Mc DONALDS'

IV.2.6.1 PRODUCT:

They have re-formulated some of their products using spices favored by Lucknowites.
Among these are McVeggie burger, McAloo Tikki Burger, Veg Pizza, McPuff and Chicken
McGrill. Vegetarian products are prepared separately, using dedicated equipment and
utensils. Employees in the vegetarian and non vegetarian sections of the restaurants can be
identified by the different colored aprons that they wear.

IV.2.6.2PRICE:
McDonalds vegetarian burgers are priced from Rs 20 to Rs 48. Wrap paneer salsa is priced at
Rs 45-50.There were many advertisements made by McDonald’s emphasizing on the
schemes, the prices and various other aspects. Some of them were:
The ‘Itch Karo’ Schemes: This advertisement was to promote the scheme of Mc Donald’s
where in you could win prizes right from a small Cadbury to a television or a bike.
Soft Serve Cone: There were many advertisements focusing on the RS.7 soft serve cone.
One of them was of a traffic policeman who gets tired of directing the customers to the Mc
Donald’s outlet.
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Happy Meal: There are various advertisements relayed during children programmes on the
television and also children channels emphasizing on the happy meals and the toys one get
with them.

IV.2.6.3PROMOTION
At Mc Donald’s the prime focus is on targeting children. In happy meals too which are
targeted at children small toys are given along with the meal. Apart from this, various
schemes for winning prices like the lucky draws and also scratch cards are given when an
order is placed on the various meal combos.

IV.2.6.4PLACE
Mc Donald’s outlets are very evenly spread throughout the Lucknow region. Mc Donald’s
does not offer home delivery but its outlets are very readily accessible. Mc Donald’s also
offers take away drive through facilities.

IV.2.6.5PEOPLE
The employees in McDonalds have a standard uniform and McDonalds specially focuses on
friendly and prompt service to its customers from their employees.

IV.2.6.6PROCESS
The food manufacturing process at Mc Donalds is completely transparent i.e. the whole
process is visible to the customers. In fact, the fast food joint allows its customers to view
and judge the hygienic standards at Mc Donalds by allowing them to enter the area where the
process takes place.

IV.2.6.7PHYSICAL EVIDENCE
McDonalds focuses on clean and hygienic interiors of is outlets and at the same time the
interiors are attractive and the fast food joint maintains a proper decorum at its joints.
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IV.3 GROWTH STRATEGY OF MCDONALD’S IN LUCKNOW

Stage 1: Building the Brand
Stage 2: Awareness of the Products
Stage 3: Gunning for Market Share

IV.4 MANPOWER PLANNING:

The scheduling manager is incharge of the manpower planning in the outlet. They have full
timers who work for 9 hours and part timers who work for 3-4 hours. If they expect more
customers (during holidays etc) then more part timers are recruited.
Recruitment: Done by reference of the employees in the outlet or other outlets.

IV.5 TRAINING AND DEVELOPMENT:

McDonald’s world class training inputs have been implanted in India. Training is a
continuous process at McDonalds. The training squad maintains logs of the employees,
which clearly states that which employees are to be trained, and on what station.

The 3/30 Plan: According to this plan, the training squad has to train 3 people on three
different stations in a month. One employee is trained on one station.
IV.6 PERFORMANCE APPRAISAL:

After a period of 3 months, the employees are checked for the health safety, cleanliness and
sanitation after which he is given the yellow Badge. After receiving the Yellow Badge, there
are 5 stations that the employees have to be proficient in: Backroom Cleaning, Fried
Products, Buns, Dress and Grill (BDG), Counter, and Personality.

IV.7 HIGH EMPLOYEE TURNOVER

McDonald’s in India faces a huge problem of high employee turnover recruiting and training
employees is an ongoing process, which never stops at any of the outlets. In an interview
with one of the ex-employees, it was found that the main reasons for the high employee
turnover are:
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• The profile of the employees mainly consists of college students who want to use
their spare time and get some fast money.
• The employees feel that there is very slow growth in the company. It takes one 3
months just to get the yellow badge, and even after that, the promotions come very slow.
• The salary packages are not very attractive.
Host and hostesses, Mystery Diner, Meter Rule, and Served in 60 Seconds
standarsition:

They follow a 6 step rule. As soon as the customer comes to the counter they have to:

● Welcome the customer.

● Take the order.
● Repeat the order.
● Take money.
● Give the ordered products
● Greet the customer.
IV.8 MCDONALD’S COMPETITORS IN LUCKNOW
McDonald’s competes with fast food chains like Pizza Hut, Domino’s Pizza, Nirula’s and
KFC in India.

IV.9 SOCIAL MARKETING

McDonald’s believes in giving back to the community in which they do business. Besides
commercial marketing McDonald’s also undertakes many social drives to build brand loyalty
among the customers. Ronald McDonald House Charities (RMHC) work to improve the
health and well being of children by awarding grants to organizations and supporting 206
Ronald McDonald houses worldwide.

IV.10 HOW MCDONALD’S MANAGES TO KEEP ITS PRICES DOWN?

Fast-food chains face a tough time balancing between margin pressures and hiking prices
which can hurt volumes. Consequently, the chains have to increase rates or rework their
strategies. Affordability has been the cornerstone of McDonald’s global strategy. Some of its
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measures to achieve this include – Bulk buying, long-term vendor contracts, and
manufacturing efficiencies.

V.0 DOMINOS
Domino's Pizza India Ltd. was incorporated in March 1995 as the master franchisee for India
and Nepal, of Domino's Pizza International Inc., USA. Moreover, the company holds the
master franchisee rights for Sri Lanka and Bangladesh through its wholly owned subsidiary.
Mr. Shyam S. Bhartia and Mr. Hari S. Bhartia of the Jubilant Organosys Group were the
promoters of the company.Like most corporate success stories, Domino's started out small -
with just one store in 1960. Now, Domino's Pizza is celebrating over forty years of
delivering food, fun and innovation.
First Dominos outlet was opened at Faizabad road in 2004
• Second at Saharaganj in 2005
• Third at Ashiyana in 2008
• Fourth at Engineering College chauraha, Aliganj in 2010
• Fifth at Phoenix Mall on 24th December,2010

V.1 DOMINO’S PRODUCT AND SERVICE

Domino’s Pizza is a pizza delivery service. Domino’s are not a fast food joint (we deliver
good, fresh food fast), and Domino’s are not a restaurant (our stores don’t have eat-in
facilities). Domino’s exists to fulfill a basic need for customers - to provide a high quality,
freshly prepared, hot meal delivered on time, every time. Delivering a freshly baked pizza
within 30 minutes is a pretty big challenge!

V.2 MISSION, CULTURE AND PRIORITIES

At Domino's Pizza, our mission is to be the best pizza delivery company in the world. Our
culture is best summed up in a chant that's sung in our stores: "Sell More Pizza, Have More
Fun!” Domino’s priorities are to:
• recruit, recognise and retain the best people
• deliver consistently high quality food on time
• take great care of our customers
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• innovate ways that matter to our team members and customers

• ensure high image standards at our stores
• treat others how we'd like to be treated
• take time out to enjoy ourselves

V.3 WORKING AT DOMINO'S

A Domino's store is the nerve centre of a time critical food delivery service where a team of
passionate people aims to deliver a hot and fresh pizza on time, every time. Delivering a
made-to-order pizza within 30 minutes or so is a pretty tall order! And if one consider that
their ingredients are fresh, one can see why people call them the pizza delivery experts.

V.4 ACCESSIBILITY
This website has been created to conform to the Web Accessibility Initiative (WAI). The
WAI initiative allows web site makers to build websites that are easily accessible by people
with disabilities.

V.5 FOOD GUIDE

This guide is designed to help customers learn more about the food, ingredients, origins and
nutritional values. The pizzas listed in this guide are the nation’s favourites and the majority
is made with their classic ingredients: Original Fresh Dough, Vine-Ripened Tomato Sauce
and Traditional Mozzarella Cheese

VI.0 PIZZA HUT

As a matter of fact, they are rooted in family—literally. Two brothers, mom, and $600 turned
into the recipe for the world's largest pizza company in 1958, when a family friend with the
idea of opening a pizza parlor approached the two college-age brothers in Kansas.
• First Pizza Hut outlet was opened Opposite Raj Bhawan in 1999
• Second at East End Mall in 2005
• Third at Sahara Ganj in 2006

VI.1 HOW TO BE THE BEST

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The reason is family ties. Another important step in their growth came in 1977 when Pizza
Hut was acquired by one of the true giants of international business: PepsiCo, Inc. as part of
the PepsiCo corporate family. The food service industry today is one of the fastest growing
industries in the carryout procedures to provide faster, more efficient service and rapidly
expanded their delivery operations throughout the country.

VI.2 INTEGRITY IS CORE VALUE

During the past four decades Pizza Hut has built a reputation for excellence that has earned
the respect of consumers and industry experts alike. Building a leading pizza company has
required relentless innovation, commitment to quality and dedication to customer service and
value. Through the strength of their heritage, our culture, our people and franchisees, they are
looking forward to even more success in the decades ahead.

VII.0 NIRULA’S, IN LUCKNOW

Nirula's, a reputed name in the hospitality industry, is a pioneer in the family style restaurant
business in India having set up the first outlet in Connaught Circus, New Delhi in 1940s.
Recently Navis Capital Partners and Managing Director, Samir Kuckreja acquired the
Nirula's Group of Companies.

• USP: Lamb chops, Big Boys Burger, 21 ice-cream flavors Nirula's 1st Outlet was
launched on Shahnajaf Road on 25th May, 2005,
• Nirula's 2nd Outlet, Express at Spencers, launched on 29th June, 2007,
• Nirula's 3rd Outlet launched at Patrakarpuram on 15th July 2007
• Now all old outlets have been closed and recently NIRULA’S opened a new
Restaurant in Sahara Ganj Mall, Lucknow. The Outlet Format is Nirula’s Potpourri.

Nirula’s failed in Lucknow due to the problem of not being able to adapt to the local
conditions because of following reasons:
™ Shortcomings in the marketing strategy
™ Pricing Issues
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™ Despite outlets being located at prominent places, the focus of the strategy could not
assimilate culture
™ Not able to cater the local taste.

VIII.0 ARYAN FAMILY'S DELIGHT

Aryan is a Multi Cuisine Fine Dining Restaurant in Lucknow. It was established in Lucknow
in 2001. It is owned by Mr Rahul khanna. Aryan having a chain of six branches (excluding
Lucknow zoo branch) at Lucknow.

History Chart
2001 ARYAN MG Marg, Lucknow (Head Office)
2004 ARYAN Aliganj, Lucknow

2004 ARYAN Gomti Nagar, Lucknow

2006 ARYANShahnazafRoad,Lucknow

2007 ARYAN Alambagh, Lucknow

2008 ARYAN Indira Nagar, Lucknow

2008 ARYAN Lucknow zoo branch

2008 Party Outdoor catering Banquet halls

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4.6 ROYAL CAFÉ & MM Group

Royal café of Lucknow is the oldest and famous food outlet in Lucknow. It is owned by Mr.
Murli Das Ahuja who is the Managing Director. There are other five brothers of M.D. Ahuja,
who are equal partners. The main active member who manages all the catering and staff is
Mr. K.L. Ahuja .Royal café is having two branches at Lucknow, one is at Saharaganj and the
other is at Hazaratganj opposite to Sahu cinema.

HISTORY CHART

Seventies Small Restaurant owner (Tea & Samosa) (Father Mr. P. Ahuja)

Manoranjan Sweet House – Charbagh

1978 Small Bakery MODELA (Adjacent to Manoranjan)

1980 Bharat Restaurant (Lunch & Dinner)

1981 Hotel Mayur & Milk Made Company (Hotel Business)

(Manufacturing of Bread & Biscuits)

1982 Moti Mahal (Hazratganj)

(First restaurant)

1983 Madhur Milan (Aminabad)

1984 Man Mandir (Aminabad)

1985 Mini Mahal (Hazratganj)

Marksmen (Halwasia)
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1994 Royal Cafe (Hazratganj)

2000 Royal Cafe (Shahanazaf Road)

2005-06 Hotel Rooms PartyBanquet halls -total 6 in numbers A restaurant

Figure 3.5-2

IX.0 CHHAPPAN BHOG

IX.1 ABOUT THE COMPANY

Chhappan Bhog is a reputed name in premium quality sweets and namkeen & other
delectable delicacies…perhaps the best that has won the heart of millions… around the
globe.Since its inception in 1992, they worked hard to offer their clientele best quality
products wrapped in traditional cordiality. Thus, today they possess the reputation of being
one of the leading firms in this trade.

IX.2 AN ASSURANCE OF QUALITY

Keeping in the mind that they deal in a very sensitive product, they promise to deliver their
clientele quality products wrapped in Lakhnavi Tehzeeb. Superb quality of cashew nuts,
Almonds, chocolate solids and other raw materials gives their product a divine taste & to
them a distinct identity.

IX.3 OVERVIEW
Chhappan Bhog is a reputed name in premium quality sweets and Namkeen & other
delectable delicacies perhaps the best that has won the heart of millions around the globe.
Since its inception in 1992, they worked hard to offer their clientele best quality products
wrapped in traditional cordiality. Thus today they possess the reputation of being one of the
leading firms in this trade.
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The year was 1991. A workaholic young man of 24 years came forward. Confident at heart &
dreams in his eyes to change the manufacturing and marketing scenario in this trade. With
the assistance of a few 'think-a-like' people, he started the ground work and gradually gave it
a shape and thus emerged- chhappan bhog, the name that changed the concept of
conventional selling in this trade.

The name 'Chhappan Bhog' is an old mythological Hindu name derived from age old
'Mahabharat times, when a royal get together would take place with various delicacies,
probably 56 in numbers, keeping the old term alive, it proceeded further.

IX.4 THE SHOP

The shop's interior is an amalgamation of new trendy design and age old Indian heritage
projects, an inviting ambience to its customers.

A tempting range of exotic North, Indian & Bengali sweets, premium quality namkeens and
Indian beverages are displayed in a very practical as well as elegant manner.Apart from
sweets & namkeens, they offer mouthwatering chaat to their those customers who have an
inclination towards (Chatpata) tingling taste.

A well equipped kitchen is the integral part of their shop. Their strictly follow the modern
methods of preparation. A team of experienced karigars have been deputed to keep an eye on
the process of manufacturing, so that no stone is left unturned. Hygiene is the 'mantra' among
their kitchen staff.

X.0 KEY LEARNING

The cases above illustrate that MNFEs glocalized their products and processes when they go
to foreign countries. As we know that trust is very important in Food industry since the risk
attached with the industry is very high as compared to other industries like garments,
electronic appliances etc. Glocalization has helped MNFEs to grow and gain trust of the
people of a particular region. The other key learning from the above cases are.
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• Glocalization strategies need to deal with adaptation to specific taste requirements of

various regions. It is very important as every region has different taste requirements
and one food item may be popular in one region and completely rejected by some
other region, for example spicy food of India may not be liked by Chinese people.
• The glocalization strategies also should take into account various cultural and
religious issues like McDonalds and Pizza Hut both modified their menu to take into
account the religious beliefs of Hindus and Muslims in India, by not serving beef and
pork.
• The end product should be appropriately modified so that it is according to the
region’s specific demands. This makes the product offering to be accepted by
customers readily as they associate themselves with the brand and the product like
“The Great Indian treat” of Pizza Hut was adopted successfully by the Indian public.
• Not only the food item has to be modified in terms of its ingredient or the cooking
process to suit the taste buds of the local population but it also needs to be
appropriately named so as to appeal the locals. For example, within India many south
Indian dishes are now having hybrid names in north India: American Dosa, Chinese
Dosa, Fried Dhokla, Fried Idlis etc.
• Another factor that MNFEs need to address is the modification in the process for the
product or service development or production. This is a very important factor taken
into consideration by McDonalds and they separated the burger preparation processes
for Vegetarian and non-vegetarian burgers. This also helps the company to gain trust
of consumers as well as the employees.
• Glocalization strategies also include marketing strategies and campaigns used. Like
using actors and celebrities of the region in the advertisements. McDonalds and Pizza
Hut both have used this tool effectively as their advertisements and campaigns have
Bollywood actors and themes.
• Glocalization helps in connecting with the consumers of that region on an emotional
level and also leveraging its global position. This is the most important aspect that
leads to the success of the company. The global position of the company makes the
customers to try the product for the first time and later the localization aspect and
strategies make the customers to come again.
Asian Journal of Technology & Management Research Vol. 01 – Issue: 01 (Jan - Jun 2011)

XI.0 CHANGES IN CUSTOMER PERCEPTION DUE TO GLOCALISATION

1999 2009
Serving burgers ice-cream, fries, shakes and pizza
Bland western food less spicy, non-oily, crisp, fresh and different
Expensive western restaurants Affordable family restaurant, money well spent
Loud for youngsters Mature, calm, cultured, straightforward for families
Childish Childlike, and young at heart

XII.0 CONCLUSION
Glocalization should form a very important aspect in the expansion plans of the Global Food
firms. Glocalization attributes the success of a global product completely to localization of
the product according to the specific needs of that region. Many companies collapse, when a
decision to launch in different locations simultaneously is taken without any prior estimation
of the degree of adaptation needed. For example, Nirula’s failed in Lucknow due to the
problem of not being able to adapt to the local conditions. The food multinational
enterprises have to be particularly sensitive to these issues because challenges faced in this
industry due to the cultural differences are more critical and complex as compared to the
other industries.

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