2012
Loras College
Brian Kinney
“THINK GLOBALLY, ACT LIKE
MCDONALDS”
Contents
Executive Summary ........................................................................................................................ 2
Introduction ..................................................................................................................................... 3
Background of Brand ...................................................................................................................... 4
Definition of Global Brand ............................................................................................................. 7
The McDonalds Brand Diagram ................................................................................................. 7
Commentary on Global Brand Diagram ..................................................................................... 8
International Marketing efforts ....................................................................................................... 9
Standardization vs. Adaptation ................................................................................................... 9
Slogans .................................................................................................................................. 10
Olympic Games Involvement ............................................................................................... 10
Impact of Uncontrollable Forces On The Marketing Plan............................................................ 12
Economic Forces ....................................................................................................................... 12
Political & Legal Forces ........................................................................................................... 12
Cultural Forces .......................................................................................................................... 13
India ...................................................................................................................................... 13
China ..................................................................................................................................... 14
United States ......................................................................................................................... 16
Works Cited .................................................................................................................................. 19
1
Executive Summary
McDonald’s has reached a level that other corporations can only dream of. What makes a brand
truly global? What are the factors that cause a company to be successful not only in the domestic
market but internationally? McDonald’s is a global corporate leader primarily because it has
embraced two strategies: it has remained consistent to its core mission of providing a product
based on value and efficiency, and it has embraced a robust and creative international marketing
strategy that makes its products welcome from the affluent neighborhoods of Beverly Hills to the
inner cities of the South American country of Brazil.
2
Introduction
McDonalds hasn’t grown just by adapting to a different culture: McDonald’s has been at
the forefront in adapting to the changing needs of its customers. For example, as consumers
become more concerned about health, obesity, environmental footprint, and globalization,
McDonald’s has altered its menu, its distribution and produce sources, and even incorporated
green technology in the architecture of its restaurants.
Throughout my research, I was able to see first-hand not only the impact that the
McDonald’s brand on the domestic market of the United States, but their role in the globalization
of the world. From a small fast service burger restaurant with no seating back in 1940, until the
present day where they are located in 119 countries across the globe, enhancing the customer
experience has always been their first priority (McDonald's Corporation).
Their innovations are remarkable in both the products they offer as well as how they offer
them. McDonald’s motto of “Think Globally, Act Locally” has allowed the company to maintain
a consistent message across the world, but when necessary, they adapt to provide customers with
the best locally-relevant experience. Through this school of thought, they are able to build the
value of the brand and it is no mistake that when it comes to overall brand experience,
McDonald’s is in a league of their own.
Whether it is their presence in the Olympic Games, guest appearances by Ronald
McDonald, or the always recognizable golden arches, the McDonald’s brand is impressive and
embedded in consumers’ minds. This immense brand recognition is why I believe McDonald’s is
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one of the most successful global brands not only in the past decade but one of the best of all
time.
Background of Brand
McDonald’s began its journey towards becoming the world’s largest fast food restaurant
world all that way back in 1955. Kroc saw an opportunity when he purchased the franchise from
the McDonald brothers, Rich and Maurice, that it could be something special. He envisioned
expanding the franchise all across America instead of just being located regionally. Expanding
the brand was truly innovative because at the time fast food restaurants were only regionally
located across the United States. No one had actually expanded their restaurant nationwide, but
that was Kroc’s vision.
In order to accomplish this nationwide expansion, he wanted to ensure that there was a
standardized cooking process. By standardizing all processes no matter if you went to a
McDonald’s in New York or in New Mexico, you were guaranteed to get the same great quality
food. This standardized process of cooking made McDonald’s into a brand not only loved
nationwide, but also globally. Kroc was also known as an extremely ethical businessman who
kept the good of his customers as his main focus. Instead of following the trend of cost cutting
methods, he instead focused on maintaining the best experience his customers could have. This
excellent customer service base that Kroc laid out in the early days of McDonald’s has sustained
the brand over the decades.
Within ten years of the change of ownership, there were over 1,000 McDonald’s
restaurants nationwide. Then in 1967, Kroc’s vision of expanding the restaurant worldwide was
4
brought to fruition as McDonald’s locations were opened in Canada as well as Puerto Rico.
Today there are over 33,000 McDonald’s restaurants locations in 119 countries around the
world. While the restaurant has expanded over the years and now includes over 100 menu
options, McDonalds has never lost sight of the fact that the company’s roots go back to the
burger and fries business.
To better illustrate their brand presence worldwide, I have included the most recent
BrandZ global brand rankings. BrandZ is a brand management tool that is based off of the
world’s largest brand equity database. In the 2011 edition of the top 100 brands that was
published by leading global research agency Milward-Brown, McDonalds was ranked 4th (MilwardBrown, 2011)
. In more of a micro perspective, they hold such a dominant position in their industry
that their brand is over five times more valuable than their closest competition, Subway.
(Milward-Brown, 2011)
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To further show how much of an impact their brand value has on global sales, the graph below
shows global sales estimates for 2010 among fast food industry leaders (Kowitt, 2011). Also
From 2008- 2010 alone, McDonalds was responsible for 90% of sales growth of the US fast food
and fast casual industry (Kowitt, 2011).
Global Sales 2010 (In Billions)
90
80
$77.4
70
60
McDonald's
50
KFC
40
Subway
30
20
$17.9
$15.2
$14.7
KFC
Subway
Burger King
10
0
McDonald's
6
Burger King
Definition of Global Brand
The McDonalds Brand Diagram
BRAND
BENEFITS
Functional




Provide body with
food or drink
Meeting place
Familiar
Keep on schedule
BRAND SYMBOLS

Emotional






Joy
Safety
Acceptance
Valued
Righteousness
Comfort
BRAND
FEATURES

7

Value Menu

Wide variety

McCafe

Clean

Consistent

Breakfast Menu


Globally located
“I’m lovin’ it”

Loyal

Friendly

Culturally Aware

Caring
On the go
individual

Problem Solver

Family with kids

Innovative

On a budget

Business Savvy

Lacks time to
prepare meals

BRAND USER

24 hour DriveThru

BRAND
PERSONALITY
BRAND
PROMISE

“To
provide
simple
easy
enjoyment
to every
customer
at every
visit.”
Commentary on Global Brand Diagram
In order to get the information I needed to fill out the brand diagram I needed to conduct
primary research interview among my peers. I interviewed ten people in total with ages ranging
from 21 to 56 to get their opinions on the fast food restaurant. I found that the younger people
that I asked typically did not give answers that put McDonald’s in a positive light. It was only
until I asked them if any experiences during their childhood where going to McDonald’s was a
fond memory did I get a positive response. The few older individuals who I interviewed gave a
different and more in-depth perspective. They believed that what McDonald’s was doing in the
community was one of the reasons they felt good about visiting the restaurant as well as positive
memories of the joy that it brought them to take their child there.
The one area where I found to be very interesting was the typical brand user. McDonald’s
is a unique place because it was be easy to say that the typical brand user of the restaurant is a
certain demographic but that is not the case. What I have come to realize about McDonald’s is
that they appeal to a very wide audience that vary in economic and cultural background.
Although they perceived as a value restaurant that does not mean that they sacrifice quality. I
believe there brand promise does justice on reiterating that no matter what type of consumer
comes to their restaurant they ensure that they can provide them with enjoyment.
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International Marketing efforts
Standardization vs. Adaptation
McDonald’s is continues to have great success globally due to its think globally, act locally
philosophy. Being able to balance the two is essential to their success, and simply having
standardized management processes is not enough. McDonalds succeeds because they firmly
believe in the following:
“The System”
 The alignment strength among the company, its franchisees and suppliers has
been essential to McDonald’s success. This business model enables McDonald’s
to deliver consistent, locally-relevant restaurant experiences to customers and be
an integral part of the community they serve. It also facilitates the ability to
identify, implement and scale innovative ideas that meet customers’ changing
needs and preferences. (McDonald's Corporation)
“Plan to Win”
 McDonald’s customer-focused Plan to Win (People, Products, Place, Price and
Promotion) provides a common framework for global business yet allows for
local adaption (Hollis, 2008).
QSC&V Philosophy
 “Our customers are the reason for our existence. We demonstrate our appreciation
by providing them with high quality food and superior service in a clean,
welcoming environment, at a great value. Our goal is quality, service, cleanliness
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and value (QSC&V) for each and every customer, each and every time.”
(McDonald's Corporation)
Slogans
 Current Campaigns with translation. You can see the adaptations McDonalds must make
due to translation problems, but they all still have the standardized meaning I enjoyment.
(Wikipedia)
o English = I’m lovin’ It
o Spanish = I love it
o French = It’s everything that I love
o Portuguese = I love all of that
o Russian = That is what I love
o Mandarin = I just like (it)
Olympic Games Involvement
(Tepper, 2012)
 McDonalds has also been heavily involved in the Olympic Games since the 1968 games.
 First became an official sponsor at the 1976 Games
 London Games will be the ninth consecutive Olympics where McDonalds will be the
event’s official restaurant and the only branded food retailer feeding the athletes.
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London 2012
Largest McDonalds in the world will open for 6 weeks during the London 2012 Summer
Olympics. (Tepper, 2012)
 Seating for 1,500 customers and employ a staff of more than 2,000 (12,000 applied)
 Built from recyclable materials, the restaurant will have two floors and be about the size
of half of an American football field (3,000 square meter)
 Ingredients are being sourced from 17,500 British and Irish farms
 Estimated 3 million customers from opening of Olympic games until end of Paralympic
games (July 27th – September 9)
Moscow 2014
Russia: Highest GDP per capita among BRIC, 2014 winter Olympic games, 2018 World Cup
Brazil 2016
With the perspective of the 2014 world cup and 2016 Olympic games in Brazil, McDonalds
plans to target the municipalities as they are only located in 150 out of 350 nationwide. To
realize these projects and to stay on top of the concurrence, McDonalds Brazil announced a plan
to hire four thousand employees across the country. They will join the existing 50,000 keeping
the company’s position as one of the largest employers in Brazil. (Poirier, 2012)
11
Impact of Uncontrollable Forces on the Marketing Plan
Economic Forces
In a world where economic forces dictate
whether business will succeed or not, McDonald’s is
faced with a challenge of maintaining their
standardized approach of providing great value
economically. The Big Mac index is based on the
theory of purchasing-power parity: that, in the long
run, exchange rates should adjust to equal the price of
a basket of goods and services in different countries.
The specific basket consists of one McDonald’s Big
Mac, and it’s compared it with the average price in America, $4.20 (The Economist, 2012). Also
to clarify, India’s price is for the Maharaja Mac which contains no beef due to religious beliefs.
Political & Legal Forces
 India is one of the toughest markets to enter for foreign business, due to the governmental
hardships imposed by the Indian government. The government seeks to protect its
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domestic businesses and employment for its
citizens (Mujtaba & Patel, 2007). McDonalds
adapts by hiring locals, specifically
management in order to gain acceptance into
the country by its citizens (Hollis, 2008).
Cultural Forces
India

Due to religious restrictions, beef is not offered in
India (Mujtaba & Patel, 2007). The only meat that is offered in Indian McDonald’s
restaurants is chicken and fish. Vegetarian meals must also be prepared in separate areas of
the restaurant. This forces McDonalds to adapt to not only what they offer but how they
prepare what they offer.
The diagram above is from the McDonalds website in India. While the idea of a drive
thru may seem simple to a consumer in the United States, but that is a product of our culture and
growing up with the availability of the quick service. In less developed countries such as India,
the drive thru feature was not introduced until the summer of 2008 (The Hindu Business Line,
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2008). To put that in more of a domestic prospective, McDonald’s opened its first drive thru in
the United States in 1975. Cultural forces differences make the
idea of a drive thru window very challenging to implement due to
the lack of experience. There is a need for the company to teach
the consumers in India of not only how to use the drive thru, but
also teaching them a new way to eat. As Pierre Woreczek, Senior
Vice President and Chief Brand Strategy Officer for McDonalds
Europe, said in during an interview, “the only way to positively
influence consumers is to create desire.” (Woreczek, 2010) I
believe the introduction of the drive thru in McDonald's restaurants
in India has created desire amongst consumers as they strive
towards being a more developed country.
China
Chinese society as a whole usually seek to be more westernized in an effort to enhance
their image and to serve the demands of their clients, McDonald’s has placed more of an
emphasis on beef, which is a luxury item to some customers. In an attempt to adapt to the high
power dimension of Chinese culture, McDonald’s has been advertising that eating beef increase
sex appeal. This advertisement in particular is not in circulation anymore, but it still shows the
attempt to appeal to the consumers in China who expect to gain face through their brand choice.
Face according to Nigel Hollis is, “An important governing principle of Chinese Conduct, under
which a Chinese person never does anything that would embarrass or undermine another
person.” (Hollis, 2008) In order to successfully obtain face, all social classes must know the
reputation of the brand for consumers to respect individuals who use the brand. Chinese
consumers are practical and make purchase decision that deliver immediate personal advantage,
in this case it would be the sex appeal of being western.
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The next example that I found that of an uncontrollable cultural force was on McDonald’s
website in China (McDonald's China). At first glance, you note that the website is completely in
Mandarin which is the official
language of China. I was unable to
have this website translated, but I
did find some interesting adaptations
due to cultural differences.
1. The price of food is shown for
every food item as well as very
close up pictures of the food
itself
 This is due to the
Chinese typically being a
high uncertainty
avoidance culture (Hofstede & Mooij, 2010). Chinese consumers are less open to not
being informed before their purchases. McDonald’s marketers took that into
consideration and made sure that not only are the products labeled appropriately with
prices, but also that the pictures of the food are clear. The presentation of the food
was also interesting to me as well as it gave the feel that they were trying to showcase
it in a way that a higher quality restaurant would.
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United States
In the United States, our culture has its own uniqueness and that can be seen by just observing
the USA McDonalds website (McDonalds). Here are a few unique points that root back to
cultural influence:
 “It’s your lunch. Take it”
o Ties to consumer preference for personal expression (Milward-Brown, 2011).
Also the United States is typically an individualistic culture, so by and large
consumers look to benefit themselves.
 My Meal Builder (Top Right Corner)
o With consumers becoming more concerned about personal health and wellness
there has been a push for not only healthier options but also health resources
provided by companies such as McDonalds (Milward-Brown, 2011).
 Supplier bio’s
o American consumers want to feel good about their purchase (Milward-Brown,
2011). They want peace of mind, knowing that any pleasure they derived from the
purchase did not come at the expense of the people who made it. By sharing
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where the ingredients come from, consumers feel comfortable knowing they are
supporting domestic workers.
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Conclusion
There is no doubt that due to its innovative marketing strategies and its ability to deal with
uncontrollable forces; McDonald’s is at the pinnacle of corporate business. Remarkably,
McDonald’s has proven itself not only to be a leader in its field – the fast-food restaurant
business – but as a leader across the business spectrum. They have been a catalyst for the
introduction of an iconic American brand to all corners of the globe. While they offer a
quintessentially Western product and type of service, they have adapted to the cultural norms and
practices world-wide and have thus built up a corporate empire that is truly global in its reach.
Understandably, the success of McDonald’s is the envy of many corporations and businesses and
serves as an inspiring model for future global brands and entrepreneurs.
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Works Cited
Hofstede, G., & Mooij, M. D. (2010). The Hofstede Model. International Journal of Advertising, pp. 85102.
Hollis, N. (2008). The Global Brand. New York: PalGrave Macmillan.
Kowitt, B. (2011, September 5). Why McDonald's Wins In Any Economy. Fortune, pp. 70-78.
McDonald's China. (n.d.). Home. Retrieved May 4, 2012, from McDonalds China:
http://www.mcdonalds.com.cn/
McDonald's Corporation. (n.d.). Mission & Values. Retrieved May 6, 2012, from McDonalds Corporate:
http://www.aboutmcdonalds.com/mcd/our_company/mission_and_values.html
McDonalds. (n.d.). Home. Retrieved May 6, 2012, from McDonalds US:
http://www.mcdonalds.com/us/en/home.html
Milward-Brown. (2011). BrandZ Top 100 2011. Retrieved May 1, 2011, from Milward-Brown:
http://www.millwardbrown.com/BrandZ/Top_100_Global_Brands/Previous_Years_Results/2011
.aspx
Mujtaba, B. G., & Patel, B. (2007). McDonald's SUccess Strategy And Global Expansion Through
Customer And Brand Loyalty. Journal of Business Case Studies, pp. 55-64.
Poirier, S. (2012, April 8). McDonald's Brazil Has Big Plans: Daily. Retrieved May 5, 2012, from The
Rio Times: http://riotimesonline.com/brazil-news/rio-business/mcdonalds-brazil-has-big-growthplans/#
Tepper, R. (2012, April 22). A Very Big Mac! World's biggest McDonald's with 1,500 seats to be built for
games. Retrieved May 1, 2012, from Mail Online:
http://www.huffingtonpost.com/2012/04/30/worlds-largest-mcdonalds-londonolympics_n_1465450.html
The Economist. (2012, January 14). Big Mac index. Retrieved May 2, 2012, from The Economist:
http://www.economist.com/node/21542808
The Hindu Business Line. (2008, June 26). McDonald's opens first "Drive Thru" outlet in Hyderabad.
Retrieved May 6, 2012, from PotatoPro:
http://www.potatopro.com/Lists/News/DispForm.aspx?List=813b91f5-f5b5-46ec-95e2463829ed0100&id=1512
Wikipedia. (n.d.). McDonald's Advertising. Retrieved May 6, 2012, from Wikipedia:
http://en.wikipedia.org/wiki/McDonald's_advertising
Woreczek, P. (2010, March 10). How Transparency Saved McDonald's. (J. Simons, Interviewer)
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