CONTENTS

Introduction/History

Objectives

SWOT Analysis

Franchises

Impacts of Franchises

STP

Product
Place

10

Price

11

Promotion
John Chapman
Tiandra Williams
Taylor Fraser
Francesca Massari Figari
Tameka Winchester
Caitlin Cameron
Iman Paul

8-9

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

OBJECTIVES
Examine the international marketing
Strategy of McDonalds
Analyze the current international
marketing strategy McDonalds
implements
Identify key areas of opportunity for
McDonalds
McDonalds ambition goes beyond their oerings; 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.
McDonald's International Marketing Strategy | July 29, 2015

SWOT ANALYSIS
Strengths
Brand Recognition
Economies of Scale
Business Structure
Diversified Income
Opportunities
Changing Menu
Developing Markets

Weakness
Public Image
Little Differentiation

Threats
Competition
Health Concerns

McDonald's International Marketing Strategy | July 29, 2015

FRANCHISES

PROS
Low financial risk to
McDonalds
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

McDonald's International Marketing Strategy | July 29, 2015

S-T-P
Segmentation & Targeting:
Geographic Markets

Demographic

Psychographic

U.S.
International Lead
High Growth
Foundational

Age
Income
Ethnicity

Health Conscious
Consumers

Positioning Statement
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.

McDonald's International Marketing Strategy | July 29, 2015

PRODUCT
Global Localization Think Global, Act Local
Think Global:
Standardize key oerings across all their markets

Act Local:
Adapt specific menu oerings for dierent market

McDonald's International Marketing Strategy | July 29, 2015

PRODUCT
The Product Life Cycle
Menu items change over time due to consumers changing tastes
and sophistication
Dierent stages of market penetration and development

McDonald's International Marketing Strategy | July 29, 2015

PLACE
Food from approved direct and
indirect independent suppliers
Suppliers own and operate
distribution centers globally
Leverage scale-economies to
mitigate risk and ensure quality
Indirect Suppliers

Direct
Suppliers

McDonalds
Restaurants

McDonald's International Marketing Strategy | July 29, 2015

Happy
Customers
10

PRICE
Invention/Geocentric Pricing
Market prices based on:
Local costs
Income levels
Competition
Local marketing strategy objectives
McDonald's International Marketing Strategy | July 29, 2015

11

PROMOTION
Brand Global, Advertise Local

Universal Slogan: Im Lovin It

Globally recognized symbol:
Golden Arches
Mascot: Ronald
Appeal: Happiness

McDonald's International Marketing Strategy | July 29, 2015

12

PROMOTION
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

13

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
McDonald's International Marketing Strategy | July 29, 2015

14

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

McDonald's International Marketing Strategy | July 29, 2015

15

PHYSICAL
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

McDonald's International Marketing Strategy | July 29, 2015

16

PEOPLE
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
McDonalds Response: Implemented for Corporate-owned
stores
McDonald's International Marketing Strategy | July 29, 2015

17

TECHNOLOGY
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 Chinas hesitancy to use
credit cards

McDonald's International Marketing Strategy | July 29, 2015

18

RECOMMENDATIONS
Increase the Value
Maximize benefits
Train front line employees

Host the party

Continue technology and
physical merging
McDonalds communities

Expansion
African markets
South Africa Gateway
Following in Chinas
footsteps
McDonald's International Marketing Strategy | July 29, 2015

Source: Wikipedia.com

19

QUESTIONS?

Philippines

McDonald's International Marketing Strategy | July 29, 2015

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