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Assignment 3, International Business - Mc Donalds, Research study
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- PEARSON (PEARSON)
Assignment 3, International Business
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Research Study – McDonald’sStrategies and Resources
McDonald’s
• Founded in 1940, in San Bernardino (California, US)
• The ninth-highest global brand valuation.
• McDonald’s is the largest restaurant chain by revenue, having more than
37 000 fast food restaurants in over 100 countries.
• The menu includes: French fries, cheeseburgers, hamburgers, wraps, soft
drinks, chicken products, breakfast products, deserts. In order to satisfy
the tastes of the customers, as well as the need of healthier food, they
introduced: fruits, smoothies, salads etc.
P8 - Product adaptation for international markets
Product and marketing adaptation is necessary in order to meet the standards, the wants
and the needs of different customers and local markets.
McDonald’s needs to adapt the products due to:
different cultures;
different tastes of customers in local markets;
standard of living;
difficulties about the manufacturing process or the availability of resources;
legal requirements;
infrastructure differences etc.
McDonald’s uses a glocal approach in order to remain competitive. Glocalization for
McDonald’s means that their products are developed and delivered globally, but modified
to accommodate with different wants and needs of customers in local markets.
Glocalization combines the global approach with the local one, thus McDonald’s uses a
standard menu in all countries where it operates, offering the same products around the
world (e.g. McFlurry, McChicken, McNuggets, Happy Meal etc.). This standard approach
offers a strong brand image, saves time and money, the company benefiting from
economies of scale, but this strategy can be inefficient in some countries, that is why
McDonald’s adapts its products in order to satisfy its customers in local markets, this leads
to higher revenue and profit, satisfied customers and a good reputation. The disadvantage
could be the extra costs involved, as well as the need of a very efficient communication.
When McDonald’s wants to enter a new market, it is necessary to build brand awareness
and conduct a detailed research the customers’ needs and wants, as well as different
, advertising types. McDonald’s adapts and changes its products according to specific local
markets, considering their culture, religion, traditions, tastes etc. For example, a product
that is very successful in a country such as the Big Mac Burger in the US can be not
successful in a country like Israel because of the different cultural and religious factors, so
McDonald’s needs to adapt to this local market. Moreover, they slightly adapts their
marketing strategy to attract customers.
McDonald’s in different countries:
Germany – The German people love the meat and the beer, that is why McDonald’s
introduced Triple Bratwurst Sandwich (Nürnberger sausages and beef) and beer in
their menu.
Japan – Although in the beginning, McDonald’s kept the American menu in Japan,
they needed to adapt it, introducing new meals (e.g. Green Tea ice cream, Rice
Burger etc.). Also, all the meals and drinks are smaller in Japan than in the UK or the
US, because the Japanese tend to eat less. Moreover, McDonald’s changed its brand
name in ‘Makudonarudo’, becoming more recognisable in the country and having a
more appropriate meaning for the Japanese customers.
China – McDonald’s offers a special meal for Chinese New Year (Grilled Chicken
Burger, curly fries + Chinese horoscope). Also, there are different soups (Corn Soup,
Vegetable Soup, Seafood Soup etc.) Because the concern about hygiene is high in
China, McDonald’s introduced advertisements that promotes their fresh and clean
food.
India – the beef is replaced with chicken (because the cow is considered to be a
sacred animal); McDonald’s opened the first vegetarian restaurant in India because
of their lifestyle.
Morocco – pita bread, traditional spices, special menu for Ramadan.
Indonesia – the pork is replaced with fish (because most of the customers are
Muslim); the bread is replaced with rice; Spicy Food.
Additionally, McDonald’s needs to bring changes due to social trends. For example, the
people tend to become more health conscious. McDonald’s as a fast food restaurant is seen
as unhealthy, that is why the company started to sell healthier products such as smoothies,
fruits, fish fillet burger etc. Also, McDonald’s wants to meet the needs and wants of their
vegetarian and vegan customers, introducing new products such as: The Spicy Veggie,
Vegetable Deluxe Hamburger, Hash Brown etc .
If McDonald’s had not made any changes for their products and marketing, the company
would not have been able to achieve the success in over 100 countries. Their profitability
would have decreased, because they could not have sold efficiently their product.
Glocalisation through adaptation and innovation is one of the factors that helped
McDonalds to become the largest fast-food chain in the world, ensuring their success.
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