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McDonalds & the Chinese Market

Jump Start Conference

Clarisa Madilao

on 28 August 2013

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Transcript of McDonalds & the Chinese Market

McDonalds & the Chinese Market
Presented by Clarisa, Leka, Violet & Hawkins
(Commerce 5)

Corporate McDonalds
2012 net income of US$5.46 billion
US$95.46 per share (22 Aug 4:00pm ET)
34,480 systemwide restaurants (2012)
12,804 restaurants in USA
1,700 restaurants in China
Major competitor in China is KFC with 3,800 outlets
KFC as a competitor in the Chinese market
Reasons for KFC's success with Chinese consumers
Boosting McDonalds' popularity in China
Closing Comments & Conclusion
Reason 1:
Marketing & Advertising
Reason 2:
Adapted Menu
Highly westernized menu
Primarily sells burgers & fries; too American for most Chinese
Similar menu to outlets in the USA
Solution 1:
Changes in Marketing Strategy
Use mass media tools to reach out to a wider audience
Enhance the 'homely' image of their products; integration of culture
Engage in promotions to improve financial appeal and affordability
Make products seem healthier on advertising
KFC provides a clear Chinese perspective
Relatable to the regular Chinese consumer
Portrays 'healthier' fast-food
McDonalds focuses on promoting their product
Does not include cultural connections
Solution 2:
Enhancing the Customer Experience
1. Menu Alterations
2. Improved Customer Service
Increase service crew
Enhance efficiency of existing staff
Provide a comfortable and safe restaurant setting
Start loyalty points system to encourage customers to return
3. Location & Services
More memorable and enjoyable dining experience that prioritizes and attracts customers
Incorporate local flavours
Use specific Chinese ingredients
Provide rice as an alternative to fries
Open more drive-through outlets
Have delivery services to more locations
For McDonalds to achieve success in the Chinese market, it is crucial for it to develop a specific local appeal by catering to the tastes, conveniences and expectations of Chinese customers.
Thank you for your kind attention!
Full transcript