John Chapman Tiandra Williams Taylor Fraser Francesca Massari Figari Tameka Winchester Caitlin Cameron Iman Paul
CONTENTS
Introduction/History 2
Objectives 3
SWOT Analysis 4
Franchises 5
Impacts of Franchises 6
STP 7
Product 8-9
Place 10
Price 11
Promotion 12-13
Process 14
Physical 15-16
People 17
Technology 18
Recommendations 19
Questions 20
INTRODUCTION/HISTORY
• Dick and Mac McDonald, Founders – Open hamburger stand – San Bernardino, California 1948 – Serving only Burgers, Malts and Fries
• Roy Kroc – First franchisee owner, Chicago 1955
McDonald's International Marketing Strategy | July 29, 2015 2
OBJECTIVES
• Examine the international marketing Strategy of McDonald’s
• Analyze the current international marketing strategy McDonald’s implements
• Identify key areas of opportunity for McDonald’s
McDonald’s ambition goes beyond their offerings; the company chooses to focus on being a positive force for its customers, employees, the communities it operates in
and the world as a whole. 3 McDonald's International Marketing Strategy | July 29, 2015
SWOT ANALYSIS
4
Strengths WeaknessBrand Recognition Public ImageEconomies of Scale Little DifferentiationBusiness StructureDiversified Income
Opportunities ThreatsChanging Menu CompetitionDeveloping Markets Health Concerns
McDonald's International Marketing Strategy | July 29, 2015
FRANCHISES
5
PROS – Low financial risk to
McDonald’s – Utilize franchisee
knowledge of host market
– Faster implementation CONS
– Lower profit potential – Low amount of control
over branding
McDonald's International Marketing Strategy | July 29, 2015
IMPACTS OF FRANCHISING Political/Legal
– Host country laws – Political instability – “McDonaldization”
Environmental – Responsible partners
Cultural – Culture clash – Knowledge transfers
Technological – Infrastructure – Supply chain implementation
6 McDonald's International Marketing Strategy | July 29, 2015
S-T-P
7
McDonald's is the leading customer-focused global food retailer, because they stress the importance of creating value for the consumer by successfully incorporating a geocentric business and marketing model.
Geographic Markets U.S.
International Lead High Growth Foundational
Demographic Age
Income Ethnicity
Psychographic Health Conscious
Consumers
McDonald's International Marketing Strategy | July 29, 2015
Segmentation & Targeting:
Positioning Statement
PRODUCT
8
Global Localization – “Think Global, Act Local”
Think Global: Standardize key offerings across all their markets
Act Local: Adapt specific menu offerings for different market
McDonald's International Marketing Strategy | July 29, 2015
PRODUCT
9
The Product Life Cycle • Menu items change over time due to consumers’ changing tastes
and sophistication • Different stages of market penetration and development
McDonald's International Marketing Strategy | July 29, 2015
PLACE
10
• Food from approved direct and indirect independent suppliers
• Suppliers own and operate distribution centers globally
• Leverage scale-economies to mitigate risk and ensure quality
McDonald's International Marketing Strategy | July 29, 2015
Indirect Suppliers Direct Suppliers
McDonald’s Restaurants
Happy Customers
PRICE
• Invention/Geocentric Pricing • Market prices based on: – Local costs – Income levels – Competition – Local marketing strategy objectives
11 McDonald's International Marketing Strategy | July 29, 2015
PROMOTION
• Universal Slogan: “I’m Lovin’ It” • Globally recognized symbol:
Golden Arches • Mascot: Ronald • Appeal: Happiness
12
“Brand Global, Advertise Local”
McDonald's International Marketing Strategy | July 29, 2015
PROMOTION
13
“Brand Global, Advertise Local”
• Digital: • Social Media Management • Localized App Options
• Advertising • Television commercials
• Sales Promotions • Monopoly Sweepstakes
• Public Relations • Used more when television potential reach is low • Local & National Sponsorships
McDonald's International Marketing Strategy | July 29, 2015
PROCESS
• Kitchen blueprints almost identical in every store – Food preparation visible to customers – Hygienic standards and food safety protocols
• Food Preparation techniques standardized – Food is packaged until ordered – Once ordered, warmed, wrapped and served
• Standardized Wait Times – 90-Seconds Walk-In Time – 3.5 Minutes Drive-Thru Time
14 McDonald's International Marketing Strategy | July 29, 2015
PHYSICAL • Various aspects of physical stores adapted depending on the
market • Cultural norms are examined and used to implement physical
strategy • Consistent consumer experience that is common across the
board – Company logo – Red and Gold branding colors the same everywhere
• Adapted Ease of Service: – Localized Delivery – China – Localized Technology: Pay with Phone
15 McDonald's International Marketing Strategy | July 29, 2015
PHYSICAL
16 McDonald's International Marketing Strategy | July 29, 2015
• Domestic changes in store ambiance and comfortability
• China – “Less is More” concept design – Softer colors, cushioned seats
• Indonesia – Upscale dining experience – Sitting on floor mats
PEOPLE
17
• Global standardization of hiring process provides franchise uniformity
• Hamburger University – Manager and potential franchisee leadership training grounds – Meant to improve management skill set – Used to create a consistent management experience globally
• Domestic Employee Uprisings – Call for better pay, benefits – McDonald’s Response: Implemented for Corporate-owned
stores
McDonald's International Marketing Strategy | July 29, 2015
TECHNOLOGY
18 McDonald's International Marketing Strategy | July 29, 2015
• Create Your Taste – Capability to create your burger – Engage others through sharing your “Burger Genius”
• Applications – Gaming Apps targeting children – Restaurant Apps meant to simplify customer experience
• Digital Pay – Use of Apple Pay in Domestic Markets – Rolling out in China as a result of China’s hesitancy to use
credit cards
RECOMMENDATIONS • Increase the Value
– Maximize benefits – Train front line employees
• Host the party – Continue technology and
physical merging – McDonald’s communities
• Expansion – African markets – South Africa Gateway – Following in China’s
footsteps
19 McDonald's International Marketing Strategy | July 29, 2015
Source: Wikipedia.com
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