McDonald’s
Presented By:
Bria Goodall
Adrea Truijillo
Kyle Farrow
Daniel Klein
Mariem Loubani
Agenda
●
Global Marketing Today
●
Looking At The Global Marketing Environment
●
Deciding Whether to go Global
●
Deciding Which Markets to Enter
●
Deciding How to Enter the Market
●
Deciding On the Global Marketing Program
●
Deciding On the Global Marketing Organization
McDonald’s Global Marketing Today
• McDonald's does business in more than 100 countries
around the world
• “McDonald's brand mission is to be our customers' favorite
place and way to eat and drink.”
Major International Marketing Decisions
Looking at the
global
marketing
environment
Deciding which
markets to enter
Deciding whether
to go global
Deciding on the
global
marketing
organization
Deciding how
to enter the
market
Deciding on the
global marketing
program
Looking at the Global Marketing Environment
• The International trade System
• Economic Environment
• Political-Legal Environment
• Cultural Environment
The International Trade System
• trade system
• tariffs
• quotas
• exchange controls
• nontariff trade barriers
The World Trade Organization
• The General Agreement on Tariffs and Trade (GATT)
•
World Trade Organization (WTO)
Regional Free trade Zones
• Economics communities
• European Union (EU)
• North American Free Trade Agreement (NAFTA)
• Central American Free Trade Agreement (CAFTA)
Economic Environment
Four types of industrial structures
1. Subsistence economies
2. Raw material exporting economies
3. Emerging economies (industrializing economies)
4. Industrial economies
Income Distribution
Political-Legal Environment
Cultural Environment
• The Impact of Culture on Marketing Strategy
• The Impact of Marketing Strategy on Cultures
• http://www.youtube.com/watch?v=PT1jKBsMuV8
Deciding Whether to go Global
• Can the company learn to understand the preferences and
buyer behavior of consumers in other countries?
• Can it offer competitively attractive products?
Deciding Which Markets
To Enter
1.) Define international marketing objectives and policies
2.) Decide what volume of foreign sales it wants
3.) Choose how many countries to market
4.) Decide on the types of countries to enter
5.) The company must carefully determine each
international market
Goal: Determine the potential of each market
★ The marketer must decide which markets are offering the greatest long-run return on
investment
Deciding how to enter the market
Deciding how to enter the Market
Exporting:
• Direct
• Indirect
Joint venturing
• Licensing
• Contract Manufacturing
• Management Contracting
• Joint Ownership
Direct investment
•
•
•
•
Higher risk
Potential profit
More commitment
More control
Deciding on The Global Marketing Program
• Standardize Global Marketing- Uses the same marketing strategy
globally.
• Adapted Global Marketing- Adapts its marketing strategy to the
region.
Product
• Straight Product Extension- No changes to the product.
• Product Adaptation- Changing the product to meet local needs.
• Product Invention- Creation of new products to adapt to foreign
markets
Product Examples
Promotion
• Use the same strategy or differentiate for each area.
• US website- http://www.mcdonalds.com/us/en/home.html
• Japanese website- http://www.mcdonalds.co.jp/
Price
• Company's should set prices based on the economy of the foreign
market.
• Uniform pricing
• Standard mark up pricing
Distribution Channel
• Whole channel view
• Distribution methods change based on the foreign market.
International
Seller
Channel between
nations
Channels within
nations
Final user or
buyer
Deciding on the Global Marketing Organization
•Export department- Manager and assistants
•International Divisions- Marketing, finance, research, etc…
Geographical organizations
World product groups
International subsidiaries
•Global Organization- Top corporate management
Global Organization
•32,000 outlets
•117 countries
• http://www.youtube.com/watch?v=LzliKFK_W4c
Questions?
References
International Franchising. (n.d.). :: AboutMcDonalds.com. Retrieved April 17, 2014, from
http://www.aboutmcdonalds.com/mcd/franchising/international_franchising.html
Kotler, P., & Armstrong, G. (2014). Principles of marketing (15th ed.). Upper Saddle River, N.J.: Pearson.
Argentines up in arms as McDonald's runs out of ketchup amid peso pressure. (n.d.). The Independent. Retrieved April 18,
2014, from http://www.independent.co.uk/news/business/news/argentines-up-in-arms-as-mcdonalds-runs-out-of-ketchupamid-peso-pressure-9106651.html
Coffee Sustainability :: AboutMcDonalds.com. (n.d.). Coffee Sustainability :: AboutMcDonalds.com. Retrieved April 18,
2014, from http://www.aboutmcdonalds.com/mcd/sustainability/signature_programs/coffee_story.html
Cont.
Definition of political legal environment?. (n.d.). WikiAnswers. Retrieved April 18, 2014, from
http://wiki.answers.com/Q/Definition_of_political_legal_environment?#slide=4
McDonald's Egypt :: Benefits. (n.d.). McDonald's Egypt :: Benefits. Retrieved April 18, 2014, from
http://www.mcdonaldsegypt.com/home/en/page/page/251
McDonald's to Use Eco-Labeled Fish: We're Lovin' It. (n.d.). EDFish. Retrieved April 18, 2014, from
http://blogs.edf.org/edfish/2013/01/29/mcdonalds-to-use-eco-labeled-fish-were-lovin-it/
What Is International Trade?. (n.d.). Investopedia. Retrieved April 17, 2014, from
http://www.investopedia.com/articles/03/112503.asp
Cont.
What Is a Cultural Environment. (n.d.). - Ask.com. Retrieved April 18, 2014, from http://www.ask.com/question/what-is-acultural-environment
What Is the Definition of Economic Environment. (n.d.). - Ask.com. Retrieved April 18, 2014, from
http://www.ask.com/question/what-is-the-definition-of-economic-environment
Relph, M. (2012, october). McDonald’s entry into india. Retrieved April 18, 2014 from
http://www.executivetravelmagazine.com/articles/mcdonalds-entry-into-india (Joint venture)
Patton, Leslie. "McDonald's U.S. Same-Store Sales Fall for Third Month."Bloomberg.com. Bloomberg, 14 Feb. 2014. Web.
21 Apr. 2014. <http://www.bloomberg.com/news/2014-02-10/mcdonald-s-january-sales-top-estimates.html>.