McDonalds Internationalisation
Strategy
Importance of customization in brand development
Strategies applied by McDonalds –
Think Global Act Local
• Market Segmentation
• Differentiation and Cost Leadership
• Transnational Strategy
• local responsiveness- change menu for local tastes
• local culture, legal-political and economic environments
• Local management
• customization of their international standardized delivery model
• strong local partner, fully trained and totally involved in the business
• Local Government Hardships
• Plan to Win Strategy ( Based on 5 P’s)
• QSC&V (Quality, Service, Cleanliness and Value) for success.
• Environmental Friendliness – CSR Initiatives
• System and Process standardization- make to order, make to stock and just-in- time processes
• Implementation and integration of ERP system across businesses of various countries
Franchise Model
McDonalds India
• Challenges
• External factors - Political/legal factors, social,
cultural, economic and environmental challenges
• Regional Difference in Customers tastes, needs
• Cultural values and Ethical Reasons
• Government hardships
• Income Level
• McFatty or McHealthy?
• Targeting Kids
• Unethical Treatment of Animals
• Competition from local Chains
• False information on Ingredients
Customization- positioned as a family
restaurant
plan to win strategy
• Product- culture-specific food items across the planet created
through franchisee innovation e.g. BigMac, customisable burger
pilot programme , salads and vegetarian items , chicken and fish
items only, child-size menus ,eggless shakes ice-creams
• local customs and religion
• spicier food in most Asian countries, Mcspicy range of products,
campaigns – Mc spicy campaigns
• Price - fast-food outlet offering low-cost food and drink,
affordable menu maintaining quality assurance, Dollar Menu, 20rs
burger, saver menu in UK, Happy price menu, economy meal
• Place – Preference of the regional taste and preferences
• proficiency in managing the restaurant
• Process – Hygiene, Nutrition's, Process Standardization
• Menu Diversification
• Promotion - Multi channel strategy to reach people of different
age group
• Home delivery system
Advertising
• Using Celebrities
• Based on emotions, family ties
• Kids based family ties
• Dark paints and colours to decorate
• Humanizing the companies image
• Behind the scenes
• Covering different age groups
• Different professionals
McDonalds in China
• McDonald's is improving its physical locations to make them more
appealing to customers,and it seems to be working. In China, it's
trying out a "Less is More" concept design, whichgoes with softer
colors and cushioned seats.
Mcdonalds in Japan
Mcdonalds in Europe
Recommendation
• Dining Out Opportunity
• More organic and healthy food
• Loyalty programs
• Expansion of product line into coffee, beverage, cakes, more varieties of ecomeals
• Special promotions during festivals
• Targeting all segments equally, gifts to all age group
• Upcoming - getting self-order kiosks, “modernizing” the customer experience and
making “Create Your Taste” more efficient.
Read more: http://strategyonline.ca/2015/10/01/mcdonalds-capitalizes-on-
customizing/#ixzz41sbkL2TS

Mcdonalds

  • 1.
  • 2.
    Strategies applied byMcDonalds – Think Global Act Local • Market Segmentation • Differentiation and Cost Leadership • Transnational Strategy • local responsiveness- change menu for local tastes • local culture, legal-political and economic environments • Local management • customization of their international standardized delivery model • strong local partner, fully trained and totally involved in the business • Local Government Hardships • Plan to Win Strategy ( Based on 5 P’s) • QSC&V (Quality, Service, Cleanliness and Value) for success. • Environmental Friendliness – CSR Initiatives • System and Process standardization- make to order, make to stock and just-in- time processes • Implementation and integration of ERP system across businesses of various countries Franchise Model
  • 3.
    McDonalds India • Challenges •External factors - Political/legal factors, social, cultural, economic and environmental challenges • Regional Difference in Customers tastes, needs • Cultural values and Ethical Reasons • Government hardships • Income Level • McFatty or McHealthy? • Targeting Kids • Unethical Treatment of Animals • Competition from local Chains • False information on Ingredients
  • 6.
    Customization- positioned asa family restaurant plan to win strategy • Product- culture-specific food items across the planet created through franchisee innovation e.g. BigMac, customisable burger pilot programme , salads and vegetarian items , chicken and fish items only, child-size menus ,eggless shakes ice-creams • local customs and religion • spicier food in most Asian countries, Mcspicy range of products, campaigns – Mc spicy campaigns • Price - fast-food outlet offering low-cost food and drink, affordable menu maintaining quality assurance, Dollar Menu, 20rs burger, saver menu in UK, Happy price menu, economy meal • Place – Preference of the regional taste and preferences • proficiency in managing the restaurant • Process – Hygiene, Nutrition's, Process Standardization • Menu Diversification • Promotion - Multi channel strategy to reach people of different age group • Home delivery system
  • 8.
    Advertising • Using Celebrities •Based on emotions, family ties • Kids based family ties • Dark paints and colours to decorate • Humanizing the companies image • Behind the scenes • Covering different age groups • Different professionals
  • 9.
    McDonalds in China •McDonald's is improving its physical locations to make them more appealing to customers,and it seems to be working. In China, it's trying out a "Less is More" concept design, whichgoes with softer colors and cushioned seats.
  • 10.
  • 11.
  • 12.
    Recommendation • Dining OutOpportunity • More organic and healthy food • Loyalty programs • Expansion of product line into coffee, beverage, cakes, more varieties of ecomeals • Special promotions during festivals • Targeting all segments equally, gifts to all age group • Upcoming - getting self-order kiosks, “modernizing” the customer experience and making “Create Your Taste” more efficient. Read more: http://strategyonline.ca/2015/10/01/mcdonalds-capitalizes-on- customizing/#ixzz41sbkL2TS