MCDONALD’S GLOBAL MARKETING STRATEGY

McDonald’s Global Marketing Strategy.

McDonald’s expands globally while adjusting its local recipe

Case Study Analysis Paper Read Case 1-2, McDonald’s expands globally while adjusting its local recipe, Page 33 in chapter 1 and answer the following questions:

1. Identify the key elements in their global marketing strategy. Despite a slowdown in global fast-food consumption, McDonald’s continues to be a success story. What is the key? Do they think globally and act locally? Does it also think locally and act globally?

2. Do you think government officials in developing countries such as Russia, China, and India welcome them? Do consumers in these countries welcome McDonald’s? Why or why not?

3. Is it realistic to expect that McDonald’s or any well-known company can expand globally without occasionally making mistakes or generating controversy? Why do anti globalization protesters and sometimes government officials target McDonald’s?

4. Assess the changes are they making to their marketing strategy in the United States and around the world
Paper Guidelines and Requirements: 1. Read the case and answer the case study questions 2. Requires the length of a three (3) to

Sample Solution

Identify the key elements in McDonald’s global marketing strategy. Despite a slowdown in global fast food consumption, McDonald’s continues to be a success story. What is the key? Does McDonald’s think globally and act locally? Does it also think locally and act globally?

McDonald’s has a couple key elements in their global marketing strategy. One of these elements is fast-food. For decades, McDonald’s has been a leader in the fast food industry, currently having served over one billion people. McDonald’s, being one of the biggest fast food chains in the world, has locations in as much cities and towns as possible. Since the world has become very fast paced, everybody is looking for a quick meal or a quick stop to get a drink. McDonald’s gives that ability to people, and not only is it fast, it is also somewhat good food. Another key element in McDonald’s marketing strategy is their cultural awareness. There are thousands of McDonalds all over the world, which means there stores in countries that follow different religions and live in different cultures.

These cultures and religions may be against the eating of certain meat, meaning McDonald’s either has to cater to these needs or leave that specific area. McDonald’s has no issue with catering the certain culture’s needs, making them even more desirable. The last element is that McDonald’s offers their food for very low prices compared to other restaurants, which entices people to go to McDonald’s instead of a competing fast food chain. The key to McDonald’s continual success is their ability to globalize. Globalization of McDonald’s is very easy because of their brand. The golden arches are a logo that symbolizes the McDonald’s brand of quality fast food that doesn’t break your wallet.

McDonald’s is also an “American” place to eat at, and a lot of people in the world want to be an American, therefore the demand for McDonald’s in the world is high. This is what keeps the success of McDonald’s. This is also an important factor for how McDonald’s acts and thinks both locally and globally. McDonald’s main priority is obviously having as many operational stores in the U.S. as possible. But, they also want to cater to other countries, therefore becoming a global powerhouse in the fast food industry.

Do you think government officials in developing countries such as Russia, China, and India welcome McDonald’s? Do consumers in these countries welcome McDonald’s? Why or why not?

Personally, I think that McDonald’s would be supported in countries like India, but not as much Russia and China. India would be a good location for McDonald’s because of their cheap prices and cultural adaptations. As well as boosting the economy and hiring only local workers to improve the quality of life in certain parts of the country. In countries like Russia and China, a McDonald’s might not be appreciated because of its potential involvement in tax evasion. Another reason being that sometimes contracts between local suppliers may be hostile or negative, therefore creating a nonprofitable brick and mortar store. I would say that consumers would welcome McDonald’s in all countries though because of its cheap prices and accessibility.

Is it realistic to expect McDonald’s – or any well-known company – can expand globally without occasionally making mistakes or generating controversy? Why do anti-globalization protesters – and sometimes government officials – target McDonald’s?

Of course not. McDonald’s is one of the best fast food chain restaurants to be in the business with its almost perfect marketing mix. But, it still like every other company, cannot expect to expand globally without at least one issue that gets in the way. Protestors target McDonald’s for reasons such as:

  • It is a foreign entity moving into their home country. It will take time to adjust.
  • The changing of their menu and suppliers when entering these countries.
  • By changing the suppliers, they also have to change the way they cook the food, which may cause consumers to be unhappy.
  • It is looked at as “unhealthy”, and that may be unattractive to certain customers as well.

Assess the changes McDonald’s is making to its marketing strategy in the United States and around the world.

In the book it states, “McDonald’s instituted a “Plan to Win” initiative to increase McDonald’s momentum.” This means that the marketing team was going to do whatever it could to improve every aspect of McDonald’s to improve the five main drivers, which are people, products, place, price and promotion. These changes included healthier foods like salads and sandwiches, reducing the amount of plastic used in their containers, and adding more cost friendly items to the menu. There are following this strategy at almost all of the locations around the world and McDonald’s still continues to be a success.

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