McDonald's Bangladesh

Cultural Analysis of Bangladesh

Marketing Plan

"For youth and adults demanding high quality and value-based western fast foods, as well as kids who like tasty foods and toys, McDonald’s is the quick service restaurant that delivers best value for your money because only McDonald’s can offer quality foods for reasonable price, speedy service and clean environment."

Group # 7

McDonald's Bangladesh

Dnyaneshwar Patil

Samer Barakeh

Sergii Piluta

Bangladesh

McDonald's Overview

• Global multicultural corporation operating in 119 countries across 5 continents
• Undisputed leader in fast food industry
• Regional management structure
• 20% of business is company owned, 80% is franchise
• Owns the land and building or secures long-term leases
• No direct sales of food or materials to franchisees, third paty instead.

Primary sources of revenue

Road Map - The Big Picture

How?

Develop Cultural-Related Recommendations

Cultural Analysis for Bangladesh

Identify Cultural Gap:

Home vs Host

Plot Cultural Analysis Against Cultural Scales

Market entry strategy, sales, marketing, human resources, product adaptation, promotions, public relations, business correspondence, negotiation, conflict resolution, language, and travel

McDonalds Bangladesh Marketing Plan

Integrating ALL Recommendations

- Franchise with two local franchisees

- Horizontal Fertilization from Pakistan and India

- 4 Franchise outlets in city centers of Dhaka, Chittagong, Khulna and Rajshahi within 1 year

- 16 more outlets in suburban areas within the next year

Situational Analysis Recommendations

Develop STEEPLED-Related Recommendations

Perform STEEPLED Analysis

Perform Situational Analysis

• Country Analysis
• Industry Analysis
• SWOT Analysis
• Market Segmentation
• Modes of Entry

• SOCIAL
• TECHNOLOGICAL
• ECONOMIC
• ENVIRONMENTAL
• POLITICAL
• LEGAL
• ETHICS
• DEMOGRAPHIC

• Children's play areas or fun zones considered safe and healthy, and kid-friendly. One McDonald's in Delhi even has a low-height counter so kids can order on their own
• Birthday parties are promoted and even include cake with candles
• Most families in cities live in crowded flats, so having a party in McDonald's is convenient and fun
• Localized food so that traditional senior citizens will be more familiar with the menu and feel more inclined to eat there
• Focus on educating consumers about health encourages parents that it is a healthy option for kids
• Teenagers often use McDonald's as an outlet to meet their friends, boyfriend or girlfriend there which can still be tricky to do in some traditional Indian families

Outline

Financials

How does McDonald's appeal to Indian people?

Why Bangladesh ?

When first opening in India, McDonald's had to figure out two things: How to sell to Indian clientele without hurting the religious sensibilities of Indian consumers, and how to avoid political confrontation with Indian government and political activists. Because 80% of India's population is Hindu, pork and beef are not a viable option for the menu. McDonald's took a politically correct approach to marketing and developed a menu with Hindu friendly options and locally influenced food options so that locals are more likely to choose eating there.

• A vast market growing at an incredible pace of 44% a year
• Popularity of the brand
• Clear westernization trends
• Advantageous demographics
• Success in economically and culturally similar India and Pakistan

Ways to reach more customers

• McDonald's Overview
• Why Bangladesh
• Road Map Overview
• Bangladesh Cultural Assessment
• Language, Nonverbal and Temporal
• Plotting Against Cultural Scale
• The Cultural Gap and Recommendations
• Bangladesh Marketing Plan
• Market Segmentation
• Positioning Statement and Map
• 4 P's
• Implementation Timeline
• Economic Analysis
• Conclusion

• To include local food and have a wide variety
• Educate about healthy lifestyle
• Focus on gifts for all generations to attract a wide array of age groups- kids and senior citizens, which is an entirely new concept
• Special promotions during festivals because people tend to spend more during such events
• Try to sponsor college festivals
• Increase space for party areas
• Provide better ambience

Implementation Plan Summary

World Value Survey Map

Positioning Map

Market Segmentation

Secondary Segmentation

Cultural Gap

Home VS Host Countries

Primary Segmentation

World Value Survey, Affirming Results

Bangladesh Cultural Analysis, Plot Against Scales

Income: Lower Middle class, Upper class.

Geographic: Suburbs

Religion: Hindus

(1) Traditional vs. Secular-rational values

(2) Survival vs. Self-expression values

Two dimensions explain more than 70 % of the cross-cultural variance on scores of more specific values.

Age: All Ages

Income: Middle Income

Social Class: Family

Religion: Muslims

Geographic: City, Central part of Urban Area

• Franchise with two local franchisees
• 4 Franchise outlets in city centers of Dhaka, Chittagong, Khulna and Rajshahi within 1 year
• 16 more outlets in suburban areas within the next year

Market Entry Strategy

• Densely Populated Urban Area
• Growing Middle Class
• Young Population
• 90% Muslims
• Family Values
• Overseas Bangladeshis
• High corporate taxation

Key Drivers

4 P's

Language issues

Nonverbal communication

Cultural-Related Recommendations

• Knowledge of Bengali (Barisal) required
• Status of English
• Impact of high context culture
• Approach to negotiations

Positioning Statement

Product

• Proxemics
• Haptic behaviour
• Oculesics
• Kinesics
• Passive

Temporal conception

Smaller portions; no pork; more rice; include fish and chicken; breakfast meals; water as beverage

• Laxity in meeting deadlines
• Polychronic culture
• Importance of punctuality and precise scheduling

Price

5% less than other competitors; enables gaining market share and profitability; value-based pricing (product line-promotional-penetration-value pricing)

Promotion

McDonalds Canada to support franchisee; push and pull advertising; culturally adapted promotional techniques (like celebrities, collaboration with other brands); using combination of promotional mediums (like media, publication, mobile, internet); promotion to consider cultural and Islamic constraints.

Place

Urban areas; city centers of Dhaka, Chittagong, Khulna and Rajshahi; children play areas; spacious suitable for occasions; family sections; home delivery and take away

Income Projections

Economic Analysis

1-3 year Sales objective

• Sales growth of 12% at the end of year 2

• Sales growth of 40% at the end of year 3 (Rollout of 16 new restaurants)

• Sales growth of 18% at the end of year 4

Revenue per outlet

We highly recommend implementing this marketing plan as it integrates all McDonald's requirements with adaptation to Bangladesh market

Thank You