Analysis Of Food Marketing Between China And India


Frozen food contains initial food chemicals in which food is preserved through the freezing process and stored in the freezer before cooking. There are several types of frozen foods, including cooked food, meat and poultry, vegetables and fruits, soups, seafood. The frozen food market worldwide is assess to increase by approximately 4.21% from 2017 to 2023.

However, the marine food sector is hope to record the highest CAGR over the forecast period due to the burgeoning life cycle of consumers and population growth of women in developing countries. The meat and poultry sector will also grow via CAGR in the forecast period.

The Asia-Pacific region is the fastest-growing region in the frozen food market with high growth rates in emerging markets such as China, India, Japan and the ASEAN countries. The high consumption of processed and prepared foods in emerging Asia Pacific and

Latin America and the increasing demand for instant meals and seafood, particularly in China and India, are important factors in the growth of the market.

Over View to the selected countries


India, a South Asian country, is the country's second-largest population, with over 1.2 billion inhabitants, the seventh largest country in the world's most populous democracy. The main languages of India are Hindi and English, the currency is Indian Rupee (INR).

Since independence, they have been self-sufficient in food and grain for more than 70 years. India is now a net exporter of food. Life expectancy is more than twice as high, the literacy rate has multiple in to four, health has developed, the middle class has emerged. India is the home base of companies worldwide recognized for medicine, automotive, steel, information technology and space technology.


China is one of the most populated countries in the world, which has more than 1.3 billion people. The official currency in China is Renminbi (Yuan) (CNY), which is held in the variable exchange rate system. For centuries, China has stood for a civilization of advanced technology, surpassing the world in technology, art and science.

Exports have been an important economic factor in China, but since the 2008 global financial crisis has severely impacted the international export market in China, the Chinese government has stimulated domestic investment and consumption.

PEST Analysis

PEST analysis is a measurement tool used to evaluate a particular product or business market at a given time. PEST indicates political, economic, social and technical factors. Companies can make better business decisions by analyzing PEST factors.

Using PEST analysis, companies can optimize business decisions and increase efficiency by considering various factors that impact the political, economic, social, and technical business.


"P" stands for the political environment. This includes government regulations or regulated rules of the related to the industry or business. An assessment of taxation, including exemption, labor law, environmental law, etc., is required if this is the case.

India China

India is run in the form of a federal government. The political environment is strongly affected by the factors such as government policy, the interests of politicians. Therefore, the business environment in India is influenced by different political factors. The tax system is well developed, taxes such as income tax, service tax, excise tax, etc. are assumed by the federal government. Other taxes such as Octroy and utilities are handled by local agencies. Privatization has also been affected and the government is promoting free enterprise through various programs.

The current policy encourages citizens to become more aware when buying food.

Fast food chain also shows calories, but it is not open Both official and informal rules that companies must follow have an impact on the country. political power is the most unstable force. In recent years, the government has focused on the development of electronic commerce.

China has little experience in creating e-commerce invoices on issues such as intellectual property protection and taxation. There are still no provisions that support privacy, digital signature recognition, consumer rights and electronic contract validation.


The letter "E" in the PEST analysis indicates economic factors. Evaluate the economic environment by looking at macroeconomic factors such as interest rate, economic growth, exchange rate, inflation rate. These factors also help with access to demand, product costs, expansion and growth.

India China

Social factors are changes in trends that affect the business environment. For example, an increasing aging of India will lead to a significant increase in pension costs and an increase in the employment of older workers. The population of India is over 1.2 billion, about 70% between 15 and 65 years old. Therefore, there is a proportional age structure. These structures include flexibility, education, job attitudes, income distribution and so on.

The state of the state and the unemployment rate can affect the food industry. A healthy food substitute is more expensive than fast food and simple meals.

Despite the unhealthiness, the convenience of food preparation can outweigh the trial and error of cooking food from the beginning. Thus, the fast food shop has grown in the last 10 years. But they work against each other.

Food interest rates, taxes, consumer spending are influencing the range and possibilities presented to the food industry. Although sales are slowing down, fast food is essential for convenience and for many people.

Over the past five years, the Chinese economy has experienced a significant GDP growth rate. According to the report, if China stays at this level, it will soon exceed the GDP of the United States. Some of the factors that can help are:

  • savings rate
  • Rich and skilled workforce
  • Expansion of the export business
  • Potential urban growth

Any economic development can have a significant impact on small and medium enterprises s and their behavior. China's GDP ratio shows that every citizen adds more and more value to society. This improves the purchasing power of consumers. The labor costs in China are very low. That's why big companies like Apple tend to hire workers from the country.

The growth rate is in a good satus but can slow down. Some of China's concerns are as follows.

  • High inflation rate
  • High property prices

The central bank urges banks to lend and encourages them to impose restrictions on home purchases.


"S" represents a social factor that indicates the macro environment of the business organization. This includes demographics and surveys of target customers. These factors help to measure the potential size of the market. Including study of population growth, age distribution.

India China

Fast food changes depending on what consumers want. As mentioned in this analysis, health is emphasized in many countries. This is not only sought by government agencies, but also by consumers.

What we are seeing is an increase in organic foods and whole foods because diet and lifestyle changes are active. Vegetarian, vegan, pescatarian foods are less fashionable and lifestyle choices, especially for younger generations. How these foods appeal to people is based on the appearance of the brand.

Therefore, the fast food chain carries out its own branding make-up.

Macoys is transforming the company's image to introduce consumers and teenagers to consumers.

To bring it to market for the younger generation, they can to change their brand and appearance.

In the face of demographic change, the social and cultural aspects of China play an important role. For example, population growth and age distribution is different. The size and social behavior of families often influence the nature of decision-making.

Other social factors include the lifestyle of consumers, education, religion, migration and so on. China is a collectivist culture based on the value dimension of Geert Hofstede. There are 420 million internet users in the country. Since there is Internet access, Chinese people often shop online. Macoys have a greater opportunity to enhance the digital marketing activities in China.


The letter "T" in the PEST analysis stands for Technology. As we know, technology is changing very fast and consumers are trying to adopt new technologies. This includes technological advances, understanding factors related to speed, with the technology obsolete (e.g. operating system for mobile phones), automation, innovation.

India China

Technology shows competitiveness. Techniques are needed to make packaging, food labels and food. There is a possibility that new companies may lack technical capabilities compared to veterinary companies.

Macoys can set up a large screen to the restaurant and introduced the menu. In addition, they can introduce new promotional drinks and food shots as a marketing opportunity. They also can use their website to provide allergy alerts, calorie information, and promotions.

With technological advances, it helps food companies to offer consumers new ways and easy ways. We also have online food products that can quickly deliver fresh ingredients to our customers

  • Development of new products
  • New purchasing methods such as intranet and extranet
  • New production technologies
  • New distribution methods like the Internet A new way like mobile communication

China has the vision to be the world leader in science and technology. To achieve this, in 2015 the country launched the program "Large Enterprises Startup and Innovation". This program aims to expand entrepreneurship across China. Therefore, not difficult to imagine how great China's opportunities are in science and technology, especially in domestic and foreign companies.


Comparison of Hofstede’s cultural dimensions and state between India and China

The Hofstead model of cultural dimensions consists of six dimensions. The cultural dimension indicates an independent impact for another state of a state that distinguishes between countries .

The country's land score is relative, in which we are all human and at the same time all of us seem unique. Cultural aspects meaningfully can compare by this theory.

Indicator India China

Power Distance 77 80

Individualism 48 20

Uncertainty Avoidances 40 30

Masculinity 51 87

Long Term Orientation 45 45

Indulgence 26 24

According to the above mentioned PEST analysis and the Hofstede theory comparison between the India and china that we can recognize the most suitable country to enhance the activities of Macoys Frozen foods is “China”. Because china has a strong atmosphere of accepting the instant foods within the social environment. There is less cultural impact of the frozen foods in china with comparing to the India. Most of the frozen foods can develop under the sea food category also because china has a good market for sea food items. China is a well-developed country with the technology Macoys can develop digital marketing activities and boosts their brand name all over the country.

Application of Segmentation, Targeting and Positioning


Market segmentation can divide customers into groups of people with common characteristics and needs. According to that, you can analyses the approach to meet the needs of each group cost-effectively.

There are several methods to identify the target market by using the following methods:

Demography - according to personal characteristics such as age, gender, civil status, education, occupation, income level. When it is come to the title of frozen foods most of the teenagers and working people sensitive to this category

Geographical - by country, region, state, city or neighborhood and divide the geographical segment. Urban areas are the most suitable geographical area to develop this business. And also low tempered climate areas will be an advantage to the Macoys foods

Psychology - personality, risk avoidance, values, through lifestyle.

Behavior - Depends on how you use the product, the faithful method, or the profit you are looking for.


Targeting is similar to the selection, but since we've gained customers in the segmentation, Macoys also aim to be successful. When analyze market position, strengths and competitors and know where Macoys is going. Therefore, we plan segments in which our needs and aspirations are similar. Who is beneficial for the company?


The Macoys company chooses a differentiated marketing that offers different products by age, occupation, season, climate, gender, etc. different products. For example, to taste authentic chocolate for those who are busy with their work, and the ice cream from Macoys can be consumed in different climates.


Through intensive marketing, as example Nestlé has achieved a strong market value due to its excellent customer knowledge. Macoys can specializes in the production of frozen food.


First, consider why customers should purchase Macoys frozen food product rather than those of the competitors. Macoys should this by identifying the unique selling proposition of the product, and design positioning map to understand the market position that macoys standing on. This will help macoys to determine how best to position your offering.

The most important factor is capacity of the need fulfil of the customer by having the frozen food items. Create a value proposition that clearly explains how macoys offering will meet this requirement better than any of the other competitors' products, and then can develop a marketing campaign to address the gap between the competitors product and the macoys products.

Positioning has many physical elements, but to measure the position that macoys standing on can identify by applying the marketing mix.

Marketing Mix Implementation

A marketing mix consists of a set of controllable tactical marketing tools that companies mix to achieve required responses in the target market. Therefore, when performing critical tasks, marketing managers have some tools and materials that can be used to develop customer marketing programs to create customer satisfaction and ultimately benefit the business. Yes. These tools and ingredients are often called 4P’s product, price, location, advertising.


Product is anything tangible that can satisfy customer needs. Product is an offering by the company to its targeted customer which also includes value added stuff product may be tangible (good) or intangible. Macoys have to provide the best frozen food products to customer.

  • Variety – Various frozen food items will take the attraction of consumers
  • Sizes – They can give sizes from Small packs and Large packs
  • Colors – There should be keep attention to maintain the natural food color
  • Quality – Quality products will win the customer’s trust towards “Macoys”
  • Packaging – They can use a unique bag design for pack the foods.


What is pricing

Price is the value of money charged for product or service or it can define as some of the values that consumers exchange for the benefits of having or using the product or service.

Price refers to the value attached to the product. It depends on the cost of production, the target segment, the solvency of the market, supply and demand and many other direct and indirect factors. There are different types of pricing strategies.

Pricing can also be used as a limit to differentiate and improve the image of the product.

Payment method - cash, card, check

Pricing strategy

Pricing strategies could be viewed from three perspectives as follows.

  • Cost Based / Internal Pricing
  • Demand / Market Based pricing
  • Competitor – Based pricing

Macoys should use competitor-based pricing strategy because there are so many instant food suppliers in the market

c. Place

Where can consumers purchase the product is defining as the place. Place is the important factor to enhance the sale volume. Consumers can purchase their products from the Macoys food outlets and they can buy it online.

  • Maintain the surrounding of the outlet
  • Maintain the vehicle park
  • Make the place as comfortable and eco friendly
  • Maintain the cleanliness of the place

D.Promotion -

Promotion reffers to all activities that are performed to inform the user about the product or service. These include advertising, verbal coverage, coverage, incentives, commissions, prizes and so on. Consumer programs, direct marketing, competitions, awards are also included. - E-mail campaigns

  • Face book campaigns
  • Raffle draw competitions
  • Seasonal discounts schemes -Free issues for higher purchasing bills -CSR campaigns.
  • Leaflet campaigns

The STP model is useful for identifying products and services as it works more efficiently with customers in different groups. These three steps can quickly expand the most profitable part of the business and Macoys can take full advantage of these features.


Macoys fast foods is a largest fast food chain in the world wide. On this report included Political, Social and Cultural, Economical and technological environment of the India and China. According to the analysis china is the best for expansion the McCoys fast food.

If the McCoy company enter in to the china market they can increase their market share and sells better than the India. If the china improve their technology they obtain more competitive advantages and get more profit than other competitors. Finally analyze the marketing mix including Product, price, place and promotion of the India and China. Considering all these things china market have more opportunities better than the Indian food and beverage market.

03 December 2019
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