International Marketing Analysis
For: Professor Y. Pan
Date: December 18, 2010
By: Saber Kanwar (209093337)
Table of Contents
McDonald’s Corporation currently markets its products across its 8 geographic segments through customizing its food items to suit local tastes and preferences. Furthermore, all advertisements are shot in 12 different languages, featuring the customized products catered to each region. However, the company’s international motto, “I’m Lovin’ it”, is not translated. McDonald’s locates all of its franchises in convenience locations such as malls, airports and local neighbourhoods.
These marketing strategies have proven to be effective, indicated by the company’s 7% increase in profit margins over the past 4 years. However, McDonald’s has strived to improve them with recent marketing initiatives with respect to the 4Ps. McDonald’s has begun to renovate its eateries, such as going from a plastic look, to a more brick and wood design in an effort to maintain a contemporary image. They have also decided to “re-image” themselves in their ads by incorporating a hip-hop theme with teen icons such as Justin Timberlake as a means to attract teenagers. Additionally, company has begun to offer healthier food products, such as oatmeal, given consumers are more health conscious.
In light of McDonald’s recent efforts to improve its marketing strategies, they still face three pressing issues. Firstly, although the company has begun offering healthier food items, they are still high in fat, sugar and salt. This was confirmed in a study performed by Dr. Linda Schacter which found McDonald’s recent food offerings can still cause heart disease and kidney failure. Secondly, McDonald’s common marketing of products to children has resulted in a high degree of ethical scrutiny among the public. In the same regard, the firm’s product purchases from sources who contribute to deforestation has further decremented the company’s image. In fact Primary data indicated that 65% of consumers viewed McDonald’s as socially irresponsible for these reasons. Lastly, there are a variety of marketing campaigns McDonald’s have ran across the globe which have satisfied ethnic groups, while upsetting others. For example, their offering of Halal meat in France upset non-Muslims, while pleasing Muslims.
In order to overcome these issues, there are three key initiatives McDonald’s must undertake which will improve its 4Ps. Firstly; the company needs to alter its menu and finally offer healthy meals. As a result, they will need to acquire the Panera Bread Company to leverage its ability to offer healthy, but great tasting meals to children. McDonald’s will also need to launch a new brand of franchises under a different name dedicated to selling only Halal food items. Secondly, the company will need to engage in heavier social initiatives. This includes greener restaurants powered by solar energy, partnering with Greenpeace by only buying items from farmers they approve of, and begin promoting physical activity through food offerings targeted at children. Lastly, in order for the firm to improve its global marketing efforts, it will need to establish a Global Advertising Committee. This committee consists of marketing professionals from each of McDonald’s geographic segments, who analyze if campaigns will be accepted in each country. These solutions will improve McDonald’s marketing strategies upon implementation. McDonald’s Key Information & Statistics
McDonald’s Corporation is the world’s largest foodservice retailing chain. The company is largely known for its burgers and fries which it sells in 119 countries through its 32,478 restaurants. The company’s key product offerings include hamburgers, cheeseburgers, chicken sandwiches, fries, chicken nuggets, salads and desserts like sundaes, pie and cookies. The geographic segments the company operates in are the US,...