McDonald’s

Presented By: Bria Goodall

Adrea Truijillo

Kyle Farrow

Daniel Klein

Mariem Loubani

● Global Marketing Today

● Looking At The Global Marketing Environment

● Deciding Whether to go Global

● Deciding Which Markets to Enter

● Deciding How to Enter the Market

● Deciding On the Global Marketing Program

● Deciding On the Global Marketing Organization

Agenda

McDonald’s Global Marketing Today

• McDonald's does business in more than 100 countries around the world

• “McDonald's brand mission is to be our customers' favorite place and way to eat and drink.”

Major International Marketing Decisions

Looking at the global

marketing environment

Deciding whether to go global

Deciding which markets to enter

Deciding how to enter the

market

Deciding on the global marketing

program Deciding on the global

marketing organization

Looking at the Global Marketing Environment

• The International trade System

• Economic Environment

• Political-Legal Environment

• Cultural Environment

The International Trade System

• trade system• tariffs• quotas• exchange controls• nontariff trade barriers

The World Trade Organization

• The General Agreement on Tariffs and Trade (GATT)• World Trade Organization (WTO)

Regional Free trade Zones

• Economics communities• European Union (EU)• North American Free Trade Agreement (NAFTA)• Central American Free Trade Agreement (CAFTA)

Economic Environment

Four types of industrial structures1. Subsistence economies2. Raw material exporting economies3. Emerging economies (industrializing economies)4. Industrial economiesIncome Distribution

Political-Legal Environment

Cultural Environment

• The Impact of Culture on Marketing Strategy

• The Impact of Marketing Strategy on Cultures

• http://www.youtube.com/watch?v=PT1jKBsMuV8

Deciding Whether to go Global

• Can the company learn to understand the preferences and

buyer behavior of consumers in other countries?

• Can it offer competitively attractive products?

Deciding Which Markets To Enter

1.) Define international marketing objectives and policies 2.) Decide what volume of foreign sales it wants3.) Choose how many countries to market4.) Decide on the types of countries to enter5.) The company must carefully determine each international market

Goal: Determine the potential of each market ★ The marketer must decide which markets are offering the greatest long-run return on

investment

Deciding how to enter the market

Deciding how to enter the Market

Exporting:

• Direct

• Indirect

Joint venturing

• Licensing• Contract Manufacturing• Management Contracting• Joint Ownership

Direct investment

• Higher risk • Potential profit• More commitment• More control

Deciding on The Global Marketing Program

• Standardize Global Marketing- Uses the same marketing strategy globally.

• Adapted Global Marketing- Adapts its marketing strategy to the region.

Product

• Straight Product Extension- No changes to the product.

• Product Adaptation- Changing the product to meet local needs.

• Product Invention- Creation of new products to adapt to foreign markets

Product Examples

Promotion

• Use the same strategy or differentiate for each area.

• US website- http://www.mcdonalds.com/us/en/home.html

• Japanese website- http://www.mcdonalds.co.jp/

Price

• Company's should set prices based on the economy of the foreign market.

• Uniform pricing

• Standard mark up pricing

Distribution Channel

• Whole channel view

• Distribution methods change based on the foreign market.

International Seller

Channel between nations

Channels within nations

Final user or buyer

 

Deciding on the Global Marketing Organization

•Export department- Manager and assistants

•International Divisions- Marketing, finance, research, etc…Geographical organizationsWorld product groupsInternational subsidiaries

•Global Organization- Top corporate management

Global Organization

•32,000 outlets

•117 countries• http://www.youtube.com/watch?v=LzliKFK_W4c

Questions?

References

International Franchising. (n.d.). :: AboutMcDonalds.com. Retrieved April 17, 2014, from

http://www.aboutmcdonalds.com/mcd/franchising/international_franchising.html

Kotler, P., & Armstrong, G. (2014). Principles of marketing (15th ed.). Upper Saddle River, N.J.: Pearson.

Argentines up in arms as McDonald's runs out of ketchup amid peso pressure. (n.d.). The Independent. Retrieved April 18,

2014, from http://www.independent.co.uk/news/business/news/argentines-up-in-arms-as-mcdonalds-runs-out-of-ketchup-

amid-peso-pressure-9106651.html

Coffee Sustainability :: AboutMcDonalds.com. (n.d.). Coffee Sustainability :: AboutMcDonalds.com. Retrieved April 18,

2014, from http://www.aboutmcdonalds.com/mcd/sustainability/signature_programs/coffee_story.html

Cont.

Definition of political legal environment?. (n.d.). WikiAnswers. Retrieved April 18, 2014, from

http://wiki.answers.com/Q/Definition_of_political_legal_environment?#slide=4

McDonald's Egypt :: Benefits. (n.d.). McDonald's Egypt :: Benefits. Retrieved April 18, 2014, from

http://www.mcdonaldsegypt.com/home/en/page/page/251

McDonald's to Use Eco-Labeled Fish: We're Lovin' It. (n.d.). EDFish. Retrieved April 18, 2014, from

http://blogs.edf.org/edfish/2013/01/29/mcdonalds-to-use-eco-labeled-fish-were-lovin-it/

What Is International Trade?. (n.d.). Investopedia. Retrieved April 17, 2014, from

http://www.investopedia.com/articles/03/112503.asp

Cont.

What Is a Cultural Environment. (n.d.). - Ask.com. Retrieved April 18, 2014, from http://www.ask.com/question/what-is-a-

cultural-environment

What Is the Definition of Economic Environment. (n.d.). - Ask.com. Retrieved April 18, 2014, from

http://www.ask.com/question/what-is-the-definition-of-economic-environment

Relph, M. (2012, october). McDonald’s entry into india. Retrieved April 18, 2014 from

http://www.executivetravelmagazine.com/articles/mcdonalds-entry-into-india (Joint venture)

Patton, Leslie. "McDonald's U.S. Same-Store Sales Fall for Third Month."Bloomberg.com. Bloomberg, 14 Feb. 2014. Web.

21 Apr. 2014. <http://www.bloomberg.com/news/2014-02-10/mcdonald-s-january-sales-top-estimates.html>.