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