Research Question: To what extent will the marketing strategy of McDonalds have to change as they move into a new market?
Source 1:
• Marketing communication methods, such as advertising and promotions, are used to create the colours, designs and images, which make the brand more recognizable.
• Additionally, economic, legal and technological changes, social factors, the retail environment and many other elements affect McDonald’s success in the market.
• For McDonald’s to be successful in marketing, they identify the customer needs and requirements and try to meet them in a better way than competitors. In this way a company creates loyal customers
• The starting point is for the business to find out who the possible customers are, because …show more content…
• The political risk factor is quite important for McDonald's since there can be several countries which might not allow FDI in fast food industry or disallow a franchise kind of business model. Countries like India where 80% of the population do not eat beef and some religions do not allow eating pork, the McDonald's menu has to be customized in a way that their product offerings match the local needs avoid any political conflicts.
• The level of investment that McDonald's commits to these markets differs across these different modes but in all cases McDonald's exerts significant control over the number of outlets and the growth in the number of outlets in each market. Hence McDonald's internalizes the cost of expansion to a large extent depending on kind of governance within each market and sets the expansion path within as well as across other markets
Source 5:
• For a successful business in host countries McDonald's had to customize its business strategy to the local needs. Regional strategy became important for McDonald's they started their expansion in Asian countries as their culture is very different from western world. McDonald's adopted product localization and innovations for new offerings based on local tastes and …show more content…
The chain comprises of two tiers. Tier 2 suppliers are primarily food producers, whilst Tier 1 suppliers are processors. For example, a Tier 2 potato farm supplies a Tier 1 processing firm who turn the potatoes into French fries and potato wedges. Produce is transported to distribution centers before allocation and delivery to individual restaurants. The success of the supply chain is attributed primarily to their commitment to out sourcing non-core activities to expert firms.
4. Promotion
The iconic ―Golden Arches‖ are used in promotions globally. The ―”I’m loving‘ it” campaign, launched in 2003 used celebrity endorsement to increase their appeal to younger consumers. Justin Timberlake was used for vocals and the campaign was launched in 86 English-speaking countries and was adapted for non-English speaking countries. Recently, the “what we‘re made of” campaign increased transparency and was used to fight against negative publicity regarding ingredients.
5. People
At McDonald‘s, service employees represent the brand at the frontline where customers have their first interaction with the organization. It is important that staff gives a good impression and therefore, training is of paramount
Source 1:
• Marketing communication methods, such as advertising and promotions, are used to create the colours, designs and images, which make the brand more recognizable.
• Additionally, economic, legal and technological changes, social factors, the retail environment and many other elements affect McDonald’s success in the market.
• For McDonald’s to be successful in marketing, they identify the customer needs and requirements and try to meet them in a better way than competitors. In this way a company creates loyal customers
• The starting point is for the business to find out who the possible customers are, because …show more content…
• The political risk factor is quite important for McDonald's since there can be several countries which might not allow FDI in fast food industry or disallow a franchise kind of business model. Countries like India where 80% of the population do not eat beef and some religions do not allow eating pork, the McDonald's menu has to be customized in a way that their product offerings match the local needs avoid any political conflicts.
• The level of investment that McDonald's commits to these markets differs across these different modes but in all cases McDonald's exerts significant control over the number of outlets and the growth in the number of outlets in each market. Hence McDonald's internalizes the cost of expansion to a large extent depending on kind of governance within each market and sets the expansion path within as well as across other markets
Source 5:
• For a successful business in host countries McDonald's had to customize its business strategy to the local needs. Regional strategy became important for McDonald's they started their expansion in Asian countries as their culture is very different from western world. McDonald's adopted product localization and innovations for new offerings based on local tastes and …show more content…
The chain comprises of two tiers. Tier 2 suppliers are primarily food producers, whilst Tier 1 suppliers are processors. For example, a Tier 2 potato farm supplies a Tier 1 processing firm who turn the potatoes into French fries and potato wedges. Produce is transported to distribution centers before allocation and delivery to individual restaurants. The success of the supply chain is attributed primarily to their commitment to out sourcing non-core activities to expert firms.
4. Promotion
The iconic ―Golden Arches‖ are used in promotions globally. The ―”I’m loving‘ it” campaign, launched in 2003 used celebrity endorsement to increase their appeal to younger consumers. Justin Timberlake was used for vocals and the campaign was launched in 86 English-speaking countries and was adapted for non-English speaking countries. Recently, the “what we‘re made of” campaign increased transparency and was used to fight against negative publicity regarding ingredients.
5. People
At McDonald‘s, service employees represent the brand at the frontline where customers have their first interaction with the organization. It is important that staff gives a good impression and therefore, training is of paramount