CASE 1-2

CASE 1-2 : McDonald’s expands globally while adjusting its local recipe

Discussion Questions :

1-18. The key elements in McDonald’s global marketing strategy are based on the concept of this quick-service restaurant which is delivering three things to customers: inexpensive foo, quick-service and clean and familiar environment. Memorable advertising and intensive promotion efforts are two important tools that made McDonald’s one of the world’s most valuable brands. For instance “I’m loving it” the global marketing theme of the 2002 campaign is famous all around the world, just as the golden arches. In term of meal, McDonald’s approaches standardization with its core menu that they took around the world but as Ken Koziol (vice president of worldwide restaurant innovation) explained they also have to be local relevant. That is why even though McDonald’s think globally they have to act locally too. Tastes and desires are different depending the region of the world so they have to adapt their menu. In India for example there is no beef because of the Hindu religion. Moreover 95% of the products used are from local suppliers in any region of the world. This “act locally” is a result of “think globally” to be protected from currency fluctuation for instance. But the opposite “think locally and act globally” is also true, for example some of the new menu items developed in India are now being introduced in Europe and The United States. Another example is that the redesigned restaurants in France to meet French people expectations are so successful that restaurants in other various countries are going to be refurbished.
To conclude, we can say that McDonald’s strategy is “glocal”, they both think and act locally and globally and this is the key of their success.

1-19. In developing countries, governments officials sometimes are reluctant to welcome McDonald’s and to help them developing restaurant in the area. In India, Hindu nationalists groups are fighting against McDonald’s development in the country and protest asserting that the company is using beef tallow in its cooking. Beijing’s officials asked McDonald’s to vacate a site because they wanted to build a new commercial complex on the same place. The director of McDonald’s operations for Russia developed in a large measure the restaurant and the brand in the country. As McDonald’s employs 25 000 persons and buy ingredients to local farmers, the government welcome McDonald’s quite well. All the more so Wimm-Bill-Dann became the 1st Russian company listed on the New York Stock Exchange partly thanks to McDonald’s demand. Consumers in these countries are more willing to welcome McDonald’s. Taste and lifestyles are evolving and populations are looking to experiment western food. The first McDonald’s in India attracted huge crowds of both tourists and local people and Indians demand for meals from major food chains is growing at a double-digit rate (annual total sales now exceed $1 billion). However, doubts on beef products still keep many customers away. Chinese consumers are totally eager to welcome McDonald’s, as China is the fastest growing market in terms of the number of restaurant openings with more than 1500 restaurants. Russian people are already convinced, given the development of the brand and promotion as the 20th birthday celebration. In developing countries, consumers are attracted by western lifestyle and they want to discover their food culture. So most of them welcome McDonald’s and are attracted by this king of fast food. Government officials in these regions seem to be more reluctant to welcome the chain because they prefer to promote local companies and to develop their own concepts and initiatives. This is especially true in Asia. Nevertheless, evidence is that introducing McDonald’s provides noticeable advantages such as employment creation directly and indirectly through the local supliers.