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McDonald's Bangladesh

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dn patil

on 6 December 2013

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Transcript of McDonald's Bangladesh

Thank You

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
Ways to reach more customers
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
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.
How does McDonald's appeal to Indian people?
Road Map - The Big Picture
McDonald's Bangladesh
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
McDonald's Overview
Why Bangladesh ?
Cultural Analysis of Bangladesh
Marketing Plan
Key Drivers
Densely Populated Urban Area
Growing Middle Class
Young Population
90% Muslims
Family Values
Overseas Bangladeshis
High corporate taxation
Market Entry Strategy
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 Segmentation
Primary Segmentation

: All Ages
: Middle Income
Social Class
: Family
: Muslims
: City, Central part of Urban Area
Secondary Segmentation
: Lower Middle class, Upper class.
: Suburbs
: Hindus
Positioning Statement
"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."
4 P's
Smaller portions; no pork; more rice; include fish and chicken; breakfast meals; water as beverage

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.
Urban areas; city centers of Dhaka, Chittagong, Khulna and Rajshahi; children play areas; spacious suitable for occasions; family sections; home delivery and take away
5% less than other competitors; enables gaining market share and profitability; value-based pricing (product line-promotional-penetration-value pricing)
Implementation Plan Summary
Economic Analysis
• 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
1-3 year Sales objective
Income Projections
Revenue per outlet
Group # 7
Dnyaneshwar Patil
Samer Barakeh
Sergii Piluta

Cultural Analysis for Bangladesh
Identify Cultural Gap:
Home vs Host
Plot Cultural Analysis Against Cultural Scales
Develop Cultural-Related Recommendations
Perform STEEPLED Analysis
Develop STEEPLED-Related Recommendations
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

Bangladesh Cultural Analysis, Plot Against Scales
Market entry strategy, sales, marketing, human resources, product adaptation, promotions, public relations, business correspondence, negotiation, conflict resolution, language, and travel
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.

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
Language issues
Cultural-Related Recommendations
Knowledge of Bengali (Barisal) required
Status of English
Impact of high context culture
Approach to negotiations
Nonverbal communication
Haptic behaviour
Temporal conception
Cultural Gap
Home VS Host Countries
Laxity in meeting deadlines
Polychronic culture
Importance of punctuality and precise scheduling
World Value Survey, Affirming Results
(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.
World Value Survey Map
Primary sources of revenue

Positioning Map
Situational Analysis Recommendations
Country Analysis
Industry Analysis
SWOT Analysis
Market Segmentation
Modes of Entry

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