objectives 3 swot analysis 4 - weebly€¦ · swot analysis 4 franchises 5 impacts of franchises 6...

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

CONTENTS

Introduction/History 2

Objectives 3

SWOT Analysis 4

Franchises 5

Impacts of Franchises 6

STP 7

Product 8-9

Place 10

Price 11

Promotion 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 2

OBJECTIVES

•  Examine the international marketing Strategy of McDonald’s

•  Analyze the current international marketing strategy McDonald’s implements

•  Identify key areas of opportunity for McDonald’s

McDonald’s ambition goes beyond their offerings; 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. 3 McDonald's International Marketing Strategy | July 29, 2015

SWOT ANALYSIS

4

Strengths WeaknessBrand Recognition Public ImageEconomies of Scale Little DifferentiationBusiness StructureDiversified Income

Opportunities ThreatsChanging Menu CompetitionDeveloping Markets Health Concerns

McDonald's International Marketing Strategy | July 29, 2015

FRANCHISES

5

PROS –  Low financial risk to

McDonald’s –  Utilize franchisee

knowledge of host market

–  Faster implementation CONS

–  Lower profit potential –  Low amount of control

over branding


IMPACTS OF FRANCHISING Political/Legal

–  Host country laws –  Political instability –  “McDonaldization”

Environmental –  Responsible partners

Cultural –  Culture clash –  Knowledge transfers

Technological –  Infrastructure –  Supply chain implementation

6 McDonald's International Marketing Strategy | July 29, 2015

S-T-P

7

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.

Geographic Markets U.S.

International Lead High Growth Foundational

Demographic Age

Income Ethnicity

Psychographic Health Conscious

Consumers


Segmentation & Targeting:

Positioning Statement

PRODUCT

8

Global Localization – “Think Global, Act Local”

Think Global: Standardize key offerings across all their markets

Act Local: Adapt specific menu offerings for different market


PRODUCT

9

The Product Life Cycle •  Menu items change over time due to consumers’ changing tastes

and sophistication •  Different stages of market penetration and development


PLACE

10

•  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

McDonald’s Restaurants

Happy Customers

PRICE

•  Invention/Geocentric Pricing •  Market prices based on: – Local costs –  Income levels – Competition – Local marketing strategy objectives


PROMOTION

•  Universal Slogan: “I’m Lovin’ It” •  Globally recognized symbol:

Golden Arches •  Mascot: Ronald •  Appeal: Happiness

12

“Brand Global, Advertise Local”


PROMOTION

13

“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


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


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


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

PEOPLE

17

•  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 –  McDonald’s Response: Implemented for Corporate-owned

stores


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 China’s hesitancy to use

credit cards

RECOMMENDATIONS •  Increase the Value

–  Maximize benefits –  Train front line employees

•  Host the party –  Continue technology and

physical merging –  McDonald’s communities

•  Expansion –  African markets –  South Africa Gateway –  Following in China’s

footsteps


Source: Wikipedia.com

QUESTIONS?

20

Philippines


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