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case study of Mcdonald
Transcript of case study of Mcdonald
McDonald's in U.S.
McDonald's in India and Muslim culture
McDonald's in ethnic chinese market Table of Content McDonald's Corporation is the world's largest chain of hamburger fast food restaurants, serving around 68 million customers daily in 119 countries. An overview of McDonald's market segment-- the low and middle class people and families
Market Position-- low price food (fast food) Marketing strategy A McDonald's restaurant is operated by either a franchisee, an affiliate, or the corporation itself. International Marketing strategies Global strategies:
1. First enter-- International Strategy
2. After--Localization Strategy
3. Final--Transnational Strategy 1.How did McD grow its business in the United States in the beginning? Initially 1940, McDonald’s Bar-B-Q restaurant, Drive-in featuring a large menu and car hop service
1948, Dick and Mac, self-service drive-in restaurant. The menu is reduced to nine items
1954, Ray Kroc, as a nationwide franchising agent. 1st franchise was open in Illinois in 1955, within 10 years, they had 700 more restaurant throughout the US.
How many outlets in the United States now? Franchise 1.Hamburger university – Bachelor of hamburgerology degrees.
2.International chain, adopting product ideas of other franchisee. 2 factors How did McD expand its menu in the United States? How is McDonald’s marketing to the Hindu and Muslim market in India? Standardization versus adaptation Standardization – offering a common product on a national, regional or, more usually a worldwide basis. (For example, Coke)
Adaptation – involves making appropriate changes in a product to match the requirements of customers in specific markets. (For example, McDonalds) 1. High cost of adaptation – the costs of adaptation in the price of the product would become uncompetitive.
2. Nature of the product – the specifications are critical such as a taste of Pepsi and Coke
3. Economies of scale in manufacture – standardizing a product results in efficiency of production
4. Economies in R&D – the firm with standardized product is not using its R&D resources to modify its product for each international market. Therefore, less R&D effort is needed for modify the product.
5. Competition – the absence of competition improves the likelihood that standard product will be accepted in that country. Encourage Factors for Standardization 1. Variation in consumer needs and tastes – Variation in consumption pattern may require different products. (e.g. Localizational image of KFC in Japan)
2. Differing conditions under which the product is used – the condition is vary among countries such as climate. Therefore, the adaptation need to take place.
3. Variations in ability to afford the item offered – the GDP or income per capita is different in every countries, so the price may be sensitive to lower income country.
4. Legal requirements – A country’s law may require adaptation of the product such as tariff, non-tariff barriers and taxes.
5. Different tastes and behaviors acceptance – cultural differences affect tastes, consumption habits and product acceptance.
6. Physical environment – the resources of a country may necessitate adaption of the product. Encourage Factors for Adaptation How is McDonald’s marketing to the Hindu and Muslim market in India? The classic beef and bacon menu items are not available in India, where 80% of the population are Hindus who regard the cow as sacred and 13% are Muslims who are prohibited from eating pork.
What method that McDonald's intervene in the India market?
Standardization or adaptation?
Why is that?
Can you give any example of fast-food franchisee that differ in other countries compare to Australia? Can you guess what type of burger, pies and drinks sell in ethnic Chinese countries in McDonald’s? McDonald's to the ethnic Chinese market In Malaysia
Double beef prosperity burger on Chinese new year
McNuggets with curry sauce McDonald's to the ethnic Chinese market In China
Pies : Pineapple and Taro based pies
Drinks: Milk tea
Kao fan (baked rice) burger
Corn soup Product is an essential marketing element
Identifying product adaption and standardization strategies
Developing a product for an international markets
Branding and packaging for international markets
Marketing services for an international market
Be aware of issues involved in major services Conclusion Thank you!! ANY QUESTIONS? McDonald's in U.S. McDonald's in India McDonald's in ethnic Chinese market