Mcdonald’s Expands Globally While Adjusting Its Local Recipe
Overview: Today, McDonald’s golden arches are one of the most recognized symbols in the world, just behind the Olympic rings. While growth within the U. S.
has slowed, the picture outside the U. S. has appeared brighter, until recently. However, globally, taste profiles and consumer desires are changing. McDonald’s has responded to these changes by altering their basic products (when necessary) to fit the requirements of the local markets. While not always successful, it has proven to be a winning strategy. )Identify the key elements in McDonald’s global marketing strategy (GMS). In particular, how does McDonald’s approach the issue of standardization? Does McDonald’s think global and act local? Does it also think local and act global? The popularity of American-style hamburgers, fries, and soft drinks is growing around the world. Also, the restaurants themselves offer the consumers a chance to experience for themselves a fast food legend that provide inexpensive food, quick service, and a clean, familiar environment. Although global dietary preferences are converging (e. . fast food), a solid understanding of food-related cultural preferences is important for companies in the F&B industry. In many locations, menu items are adapted according to the customs and tastes of individual countries. McDonald’s offers an ideal example of “global localization. ” E. g. Chicken Maharaja Mac was created for Indian market; local food ingredients were used in India and China, etc. With McDonald’s offering of local tastes and a combination of American fare, McDonald’s thinks globally (product adaption) and acts globally (standardization). E. g. tyle makeover of the McDonald restaurant at Champs Elysees. 2)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? Despite concerns by governments and citizens in some countries about “cultural imperialism,” (e. g. French said McDonald’s “promote globalization & industrially produced food”), McDonald’s and other franchises with well-known brand names are generally welcome. Such businesses provide both much-needed jobs and employee training.
McDonald’s does a good job of earning the support of local authorities and the local population by working with agricultural producers to develop local supply sources for beef, potatoes, and dairy products. And, owing to changing lifestyles around the globe, more people are embracing the whole concept of fast food. 3)The “Plan to Win” initiative is built around five factors that drive McDonald’s business: people, products, place, price, and promotion. As a student of marketing what can you say about these factors? These five factors closely mirror the four P’s of marketing: product, price, promotion, and place.
For a service marketer: people and physical evidence are also added to the mix. For McDonald’s people and physical evidence are also important P’s of marketing. They are realizing the importance of creating a “modern, streamlined environment” so as to “encourage customers to stay longer and spend more”. Another thing they may consider is to improve the service quality to help with that. McDonald’s has tried to enrich its product mix by considering “What does our brand allow us to consider selling to our customers”, instead of being stuck with hamburgers.