McDonald’s Fast Food Company is one of the renowned companies globally. McDonald’s range of products involves McNuggets, Ham and Cheese Burgers, and French Fries. The company is as well popular for its influencing puddings including the Egg McMuffin and the apple pie. The company has the ownership of above thirty-two fast food restaurants internationally in one-hundred and seventeen independent nations and above seventy-five percent of the company’s restaurant are possessed and administered through independent landlords. The company primarily initiated as a small business of hamburger and its stand was based in Bernardino, California, and it was managed and possessed by Mac McDonald and Dick. The gentleperson with an aim to expand the business operations shut down their trading activities for ninety two days and resumed trade with innovative approach of a self-service drive-in eating place in December 1948 engaged in merely nine product divisions subsuming ham and cheese burgers, potato fries, pie slices, coffee, and milk.
A multi-mixer sales executive, Ray Kroc in the year 1954 arrived at McDonald’s and observed that the siblings of McDonald’s are interested in expanding their business countrywide. Therefore, Kroc afterwards showed his inclination in the business of hamburger and accords with Mac McDonald and Dick to open the initial branch of McDonald’s in Des Plaines, Illinois in the month of April, 1955. Since that period, McDonald’s has established its business and recognized itself a reputed and influencing fast food chain globally.
A study conducted by claimed that the fundamental cause for the international prosperity of McDonald’s is attributable to the application of franchising where the explanation and delivery are automatically converted through the domestic individuals when it comes to United States brand culture considering product and service. Just after the investigations of the fundamental audience, it became important for McDonald’s to fulfill the creation of the elements of the marketing mix including product, price, promotion, and place in order to address the objective to attract the attention of identified clusters . Commonly, the marketing strategy of McDonald’s is to regulate the products and services. Nevertheless, in few economies, for instance, India, McDonald’s is required to consider the laws emphasizing the consideration of religious aspects before launching a product and the domestic customs .
An investigation done by McDonald’s UK 2012 revealed that the vital aspect to notice while proposing the list of items to the likely clienteles is that a significant quantity of options is available to likely customers in the context of the expenditures as to where and how. Thus, McDonald’s focuses on creating a list of items according to the wants of their customers. The role of market research is very significant when it comes to developing a list of items preferred by customers. Nevertheless the provisions of customers may alter with the span of time. Comprehending the product life-cycle and constant focuses on the preference of likely clients are the fundamental variables of the organization . McDonald’s is required to launch innovative products and remove the previous ones with the span of time for attaining the objectives of altering preferences of customers.
The promotion of McDonald’s adequately addresses each and every aspect of marketing channels including trades promotions, retailing, telemarketing, conferences, and door drops, advertising, point-of-sale display, direct mail, shows, devotion schemes, and demos . The execution of advertising is made on television, radio set, cinema, online, artwork places, and in journalists and periodicals. The fundamental aims of advertising are to enable individuals to be familiar from the product or service, experience comfort and retain about it.
Numerous pricing strategies exist. A research conducted by revealed that the value perception of the customer is a significant factor of the amount priced. Customers have the right to sketch their personal portrait of a product’s value. The unfavorable reflection of implementing lower price of a product as a marketing strategy provides the output of the compromise quality perception by customers. It is very significant to note while deciding price by the decision-makers is the brand’s familiarity and honesty.
Place refers to a venue where the service and product are received by customers and it is a component of the marketing mix. The investigation of explained regarding place that it is not only related to the physical venue or distribution places for products, nevertheless, it involves the management of a series of procedures included in getting the products available to the final consumer.
Marketing Mix Elements at a Glance
Organizations while marketing their products are required to establish an influencing mix of the right product, which is able to be traded at the right price and right place along with utilizing the very appropriate promotion. In order to form an effective marketing mix, corporations are bound to address the different conditions with respect to product, price, place and promotion. When it comes to the product, it should have the adequate features, for instance, it should reflect good and function effectively. The price of the product should be adequate which enables customers to purchase the product insignificant amount. The product must be available at the right place and at desired time which means that the products need to show their existence at a place when they are desired by customers. Lastly, the target market should know that the product is available and it is possible through the promotion efforts of a particular company. The influencing promotion enables an organization to divide costs on extended productivity.
For instance, an organization like Kellogg’s is engaged in creating innovative mealtime cornflakes – the product ingredient refers to an innovative product itself, the establishment of the appropriate price includes investigating customer point of views and competitor products also the monetary value of the production, promotion includes appealing in a series of promotional plans for instance rivalries, product trials etc., and place incorporates utilizing the effective probability mediums of distribution like dominant supermarket chains. The product refers to a principal point where the marketing exertions need to emphasize. Investigating ways to produce the product, establishing the line of manufacturing, procuring the finance and producing the product do not appear in the domain of the marketing operation. Nevertheless, it is related with the significance of the product to the customer. Thus, marketing is a fundamental function in determining different segments including product’s appearance which needs to be in line with the provisions of the marketplace, and the product’s operation which has to need the requirements of customers as investigated across market investigations. The range of a product and how it is applied as a tool of the marketing mix. It is possible to extend the product’s range or a brand can be encouraged for tactical causes, like matching rivalry or addressing for variations season wise.
Marketing Mix Identification
A study conducted by revealed that the domain of international marketing shows three relative factors for comprehending the practices of marketing made by organizations. The initial one is the so-called relative details which explicate as to how the marketing is to be done in varied economies; another factor is relative illustrations that detail the structural factors affect appended to nation variations; and the last one is the relative recommendations about the positioning for particular marketing plans and functions through multi-domestic organizations. A research made by pointed out the significance of Internet in the contemporary era as it has a meaningful part in the international marketing. Primarily, the global Internet marketing altered few ingredients of the marketing mix, and the significant point is to be very communicating. Secondly, the Internet is engaged in sharing a vital multiple cultures for global marketing and demands a multiple attempt. Resultantly, innovative global marketing prototype concedes customers to illustrate the global marketing in the advanced period. In this essay, McDonald’s appeared the global leader of fast food restaurants and the company favorably established its international benchmark in order to reflect the value given to the products by McDonald’s as uncovered by and the marketing mix strategies of McDonald’s in India and China were considered specifically for this written piece of work.
McDonald’s and Global franchising
The rapid development of franchise functions in growing nations including India and China alarmed a potential signal to growing and innovatively – established franchises that global franchising is a tool of preference. A research conducted by showed that about two decades back, comparatively an insignificant amount of franchises were engaged in functioning internationally, and those that acknowledged globalization were classically the extensive ones.
McDonald’s and China Franchising Sector
Primarily in China, the franchising appeared in the later periods of 1980s . During that period, franchising acknowledged an unordered growth in the early periods. Few franchisers in the adverse legislative culture performed insignificant benchmark trading. There were few scenarios where franchisees made not in time funds release or invaded academic accommodation rights. The Ministry of Global Trade in the year 1997 formed the initial Law pertaining to franchising for China specifically, which was the rule on commercial franchise corporate which involved strategies on these problems including copyrights, trademarks, and intellectual accommodation defense.
In the year 1990, the initial outlet of McDonald’s in mainland China was launched in the month of October at Shenzhen City, Guangdong State just after thirty-six months when KFC launched its initial outlet in Beijing, China in the year 1987 . In the year 2011, McDonald’s in China particularly in Shanghai effectively established two-hundred innovative outlets, and this figure revealed an influence of McDonald’s as a global leader in third position. It is expected that McDonald’s will induct a good amount of money in China for the objective of expanding its business.
McDonald’s and India Franchising Sector
A report of market intelligence organizations including RNCOS and Euro monitor, the meal franchise market of India is experiencing development at a rapid rate of twenty-five to thirty percent yearly and did not get influence from the financial crunch that occurred globally . Further, with the existence of that trajectory rate showed that a difference is expected to expand in India between the improving requirements of Indian target market and the insignificant procurement of quality meal franchise offerings. Even the existence of this development, it shows numerous options for multiple overseas global companies to launch trading activities in India. An yearly survey of World Influencing One-Hundred Franchising Companies which included more than one-thousand franchise products presently available in India, expressed that franchising emerged one of the very favorable tool of growing trades and products within the marketplace of India . Furthermore, the franchise sector of India developed at a growing velocity and numerous brands were engaged for the franchise reveal the tapping of substantial marketplace of India . An individual with the title of DalleTasharski, who acted as Deputy Saleable Counselor at the Embassy of United States in New Delhi expressed the views as the inhabitants who are below the age of thirty-five show an amazing seventy-one percent of the entire gentlepersons in China. The appearing average class of India is highly academic, contemporary, and social. The individuals represented innovative optimum earners in the growing nation of India, and they preferred having the food franchise items of United States. The scenario enabled expressed an unprecedented option for development-influenced United States meal franchises and highly-established entrepreneurs, financers, and restaurant users in India to work collaboratively in order to have gains from the increasing difference between the procurement of meal franchise demand and supply .
Marketing Mix Assessment
McDonald’s is involved in executing franchising as its corporate strategy to globalization. The branches of McDonald’s globally possess its varied and comparable attributes in executing the operation. For example, McDonald’s in China and India are dissimilar in customs and ethos; nevertheless the two economies still contain few resemblances in the four P’s marketing mix application. Because of the dominancy of franchisor over the decision-making of the corporate functions, few of the genuine notions still are operative in varied geography zone through India and China. For example, the vital products of McDonald’s in its list of products are burger with numerous tastes, chips, cold drinks, and sweets. The list of products is yet executed for each restaurant of McDonald’s in India and China.
Keeping in view the service, McDonald’s executes self-service notion, which concedes customers to form order before the counter, release funds and take the meals to dine-in or take away meals. Considering place, the comparable adornment either internal or external for each outlet of McDonald’s globally is as well applied in India and China.
Product and Service
In terms of product and service, McDonald’s needs to focus on acknowledging beef, lamb, fly-fish and chicken as its fundamental products whereas chicken should be the fundamental element in the Indian marketplace instead of beef and pork. Considering taste, McDonald’s is required to make less salty products topped with insignificant fry and spice, whereas, in India, McDonald’s should focus on making spicy products, for instance, McCurry is a good example. The division of products in China needs to be made on varied provinces, whereas in India, the same should be focused to non-vegetarian and vegetarian.
In China, McDonald’s needs to set up its price at a maximum as compared to the general fast food restaurants and to slightly managed the price in complex period, and there is no need to establish price segmentation. In contrast, India should implement its pricing strategy to address the complex market segmentation. The prime value product which is titled as branded core value should be made for the middle-class and the economy value product which is as well referred to a branded affordability should be made for lower class of clientele.
McDonald’s in China needs to re-establish the allocation of the outlet with construction in the bustling commercial zone, as previously regulations confined the fundamental provision of selecting outlet location having above fifty-thousand inhabitants within the radius of five kilometer. In India, the outlets needs to be extended evenly across different cities as there are significant amount of accessibility locations.
McDonald’s in China needs to adopt a method of network and Internet, whereas in India extended conventional and printing media method should be adopted. In China, there should be an emphasis on fresh and younger target market; instead, the emphasis in India needs to be made on kids and children. McDonald’s in China needs to take benefit of the network amenities and developing numerous operational actions to appeal contribution of young customers. In contrast, McDonald’s in India should establish familiarity of the product, develops favorable experience, and attempts to be extrovert in the minds of its customers.
This essay highlights that McDonald’s preferred varied attempt for its Four-P Marketing Mix in the outlets of India and China. The attempts of McDonald’s were extensively dependent on its internationalization and localization strategies. Generally, the menu of McDonald’s approaches standardization in each of its services and products, for instance, snack or burger, French fries, and soft drink (Coca-Cola) for its fundamental sequence. Nevertheless, McDonald’s experienced difference in applying a similar strategy to every economy due to the varied religious laws and customs as investigated in India and China; hence McDonald’s in these particular nations independently adopted localization approach. The Four-P Marketing Mix Implementation Strategy of McDonald’s is much closer to its clientele’s preference satisfaction. McDonald’s in China and India was able to underpin its position in terms of investigating and establishing adequate alterations to address the needs and provisions of the local customers. McDonald’s while considering products in China utilized not much spicy lamb, beef, fly-fish, and chicken in its burgers, whereas in India, McDonald’s was bound to discourage pork and beef in its products of burgers. McDonald’s solely in India provides a Mutton Oriented Maharaja Mac and vegetable McNuggets. These variations were considered in India to acknowledge the inhabitants (Hindus) who discourage having beef or inhabitants (Muslims) who discourage eating pork. When it comes to pricing strategy, McDonald’s in India preferred market segmentation, whereas the same was not practiced in China. McDonald’s in China when it comes to place element preferred location at demanding trading zones having established premises, nevertheless the outlets were divided across the cities in India by McDonald’s. McDonald’s in India encouraged conventional and published media for advertising, while the situation in China is different as the promotion utilizes links, social media, and the Internet as its inclination. The focused clients are as well show difference between India and China. McDonald’s in India this is engaged in focusing kids in its advertising activities, nevertheless youngsters appeared the fundamental target market segment of McDonald’s in China.
Business Case Studies. (2015). Marketing theory. Retrieved June 27, 2015, from http://businesscasestudies.co.uk/business-theory/marketing/marketing-mix-price-place-promotion-product.html#axzz3e9MIrtXp
Franchise. (2012). Franchise Opportunities, Franchises for Sale & Franchising Information. Retrieved June 27, 2015, from http://www.franchise.org/
Franchise Business. (2012). The official directory of the Franchise Council of Australia. Retrieved June 27, 2015, from http://www.franchisebusiness.com.au/
Franchisedirect. (2012). The Best Franchise Opportunities and Franchises for Sale. Retrieved June 27, 2015, from http://www.franchisedirect.com
Fransmart. (2012). Fransmart - Fransmart Franchise Consultants. Retrieved June 27, 2015, from http://www.fransmart.com/
Goyal, A., & Singh, N. (2007). Consumer Perception about Fast Food in India: an exploratory study. British Food Journal, 109(2), 182-195.
Martin, V. M. (2000). Culture-sensitive adaptation or global standardization –the duration-of-usage hypothesis. Journal of International Marketing Review, 17(1), 74-84.
McDonald’s UK. (2012). Marketing at McDonald’s. Retrieved June 27, 2015, from http://www.mcdonalds.co.uk
McDonald's Corporation. (2010, May 18). McDonald's Introduction/History/CEO. Retrieved June 27, 2015, from http://mcdonaldsteam3.blogspot.com/2010/05/mcdonalds-introduction.html
Riyad, E., & Myfanwy, T. (2002). The Internet: new international marketing issues. Journal of Management Research News, 25(12), 54-67.
Sheth, J., & Parvatiyar, A. (2001). The antecedents and consequences of integrated global marketing. International Marketing Review, 18(1), 16-29.
Vignali, C. (2001). McDonald's: think global, act local - the marketing mix. Journal of British Food, 103(2), 97-111.