Successful Application of International Marketing Prezentacja

8/6/2019 Successful Application of International Marketing Prezentacja

1/23

Karolina Klimsiak

Piotr Kosyn

Diana Oktawiec

Daniel Siemianowski

SUCCESSFUL APPLICATION OF

INTERNATIONAL MARKETING


2/23

CUSTOMIZED MENUS & RESTAURANTS

Leading the way in this trend is McDonalds. Byaccommodating the tastes of the variety of culturally

diverse customers, McDonalds has succeeded in stepping

into the global marketplace.


3/23

MCDONALDS HAS OVER 31,000 RESTAURANTS WORLDWIDE IN 119

DIFFERENT COUNTRIES. WITH THIS KIND OF DISTRIBUTION THE

DEMOGRAPHIC VARIATIONS MUST BE STAGGERING. MCDONALDS IS

IN THE PROCESS OF STREAMLINING THEIR RESTAURANTS TO CATERTO THE TYPES OF PEOPLE WHO MOST LIKELY TO BE CUSTOMERS IN

EACH INDIVIDUAL NATION. BY TAILORING THEIR MENUS AND

RESTAURANTS TO SEAMLESSLY INTEGRATE THEM INTO THE SOCIAL

STANDARDS WITHIN EACH NATION, THEY HAVE SUCCEEDED IN

GLOBALIZING THEIR CORPORATION.


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AMERICAN POP CULTURE

Social trends in America are being catered to as well. A number of

restaurants are being remodeled so dont be surprised if you walk into

one and find that it looks completely different. The famous golden

arches will become more slanted and have a more muted tone of color.

A muted green color will be added to the golden arches as well. Menus

are geared around each countrys eating habits offering customized

menus.


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MODERNIZED INTERIOR DESIGN

The interior will be divided into three distinct areas geared to attract

multiple demographic segments of population. WiFi will even beavailable for the Starbucks crowd. Plasma TVs will be in another area

geared for families by creating a dining area that is attractive every

member. It will also continue to add healthier items to its menu, leaning

more to chicken and higher quality ingredients.

By adapting to the new global

trends, McDonalds has been

able to come into the global

arena and lead the pack.


6/23

McDonald's is the leading global foodserviceretailer with more than 32,000 local restaurants

serving more than 64 million people in 119

countries each day. More than 80% of McDonald's

restaurants worldwide are owned and operated by

independent local men and women.


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MARKETING STRATEGIES

McDonalds operating according to four values:

Quality Service Convenience Value

Organizational culture is part of the knowledge and information transmitted byMcDonalds to the franchisees in other countries. Part of organizational culture is

the delivery of uniform quality of food and service wherever the branch is located.

The good reputation of the company and the expectation of an excellent service

no matter which branch people eat is a marketing strategy of McDonalds.

McDonalds sets a standard applicable to all its branches worldwide. However, the

company also gives leeway for innovation by allowing the branches to integrateculture into food and service increasing market share.


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ATTRACTIVENESS OF EASTERN

EUROPE AS NEW MARKET FOR

MCDONALDS

Assessing the potential of a new market for expansion requires the

consideration of several factors providing a comprehensivebackground of the environment that the expanding business firm

expect to enter into. Gross Domestic Product is the common

measure used to determine the economic condition of a country.

GDP has several components, which are consumption, investment,

government consumption, exports and imports. However, the most

significant indicator of the movement of the market is consumption.


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In terms of consumption, there is a high volatility of consumption relative

to emerging countries and industrial states. Although UK holds a high

consumption volatility of 1.15 among the G7 countries, the consumption

volatility rate in Lithuania and Poland is 1.05, in Russia it is 1.03 and inSlovenia it is 0.71. Consumption volatility is attributed to either the rapid

income growth resulting to a changing consumer behavior, or liquidity

constraints especially in economies with an underdeveloped financial

system, or consumers are not assured of a constant source of income that

increases the tendency to save instead of increasing consumption.


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Although there is a general trend for consumption, employment and wage volatility

among European countries, introducing McDonalds into the region is viable for

following reasons: First, McDonalds will develop a market by providing

technological, management and marketing expertise to local entrepreneurs

enabling them to establish a known restaurant in different areas that creates jobs

translating into income to households due to the hiring of local employees and the

purchasing of raw materials from the local farmers and businesses. Second,McDonalds incurs less risk, relative to other industries, because food and drinks is

a necessity and if the company can offer an affordable, alternative source of food

then it can gain a significant portion of the market. Third, McDonalds expects

continues growth in the long run, although fluctuating, in Eastern European

countries due to the development and opening of investment opportunities drawing

the continuing flow of foreign investments positively affecting employment andincome. Fourth, there are relatively less multinational restaurants in Eastern Europe

giving the establishment of McDonalds in the region a competitive edge in terms of

consumer share and market leadership. Fifth, the consumption culture in Eastern

Europe is changing due to its involvement in international trade introducing the

Eastern Europeans to the fast food culture. The entry of McDonalds in Eastern

Europe is timely.


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Estonian Market Country Background: Estonia is a democratic parliamentary

republic and is divided into fifteen counties. The capital and largest city is

Tallinn. With a population of only 1.4 million, it is one of the least-populous

members of the European Union. Estonia was a member of the League of

Nations from 22 September 1921,[7] has been a member of the United Nations

since 17 September 1991,[8] of the European Union since 1 May 2004[9] and of

NATO since 29 March 2004.[10] Estonia has also signed the Kyoto protocol

Economy As a member of the European Union, Estonia's economy is rated as

high income by the World Bank. The Estonian economy Estonian economic

miracle has often been described as the Baltic Tiger. Trade focused on the localmarket and the West, particularly Germany and the United Kingdom. Only 3% of

all commerce was with the USSR. Before the Second World War Estonia was

mainly an agriculture country whose products such as butter, milk and cheese

was widely known on the western European markets.


12/23

Political Conditions: Estonia exudes political and economic stability relative

to other Eastern European countries. In the spring of 2003, the country held

its parliamentary elections resulting to the victory of the conservative

coalition. Prime Minister Parts direction is towards the continuation of reformpolicies. Estonia became a member of the European Union in May 2004. The

country is experiencing robust economic growth attributed to investments

and private consumption. The expected average growth in succeeding years

is 5 to 6 percent. The government also applies sound fiscal policy resulting to

substantial budget surpluses. The country also has a stable banking sector

led by Scandinavian banks. Estonian economy is dominated by the service

sector with a 65 percent GDP share, followed by transport and

communications with 16 percent and then by the distributive trades with 14

percent.


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Ethnic and cultural diversity Tolerance and democracy are illustrated by

the Law on the Cultural Autonomy for National Minorities, passedalready in 1925, which was not only the first in Europe at the time but

also very progressive. Prior to World War II, Estonia was a relatively

homogeneous society ethnic Estonians constituted 88% of the

population, with national minorities constituting the remaining

12%.[124] The largest minority groups in 1934 were Russians, Germans,

Swedes, Latvians, Jews, Poles, Finns and Ingrians. Cultural autonomiescould be granted to minorities numbering more than 3,000 people with

longstanding ties to the Republic of Estonia. Prior to the Soviet

occupation, the Germans and Jewish minorities managed to elect a

cultural council


15/23

Business Plan for McDonalds Expansion into Estonia I. Obtaining

Franchising Requests from Estonia McDonald is Entering in Estonia by

giving franchising right to the local people. This will safe their cost of market

research for the consumer taste and needs. II. Entry into the Estonian Food &

Beverage Industry Entry into the food and beverage industry in Estonia

involves the establishment of links with local networks or partners in thesupply chain. McDonalds assessed the ability of owners/operators to find a

good location and establish valuable links with local suppliers for the

building of the physical structure of the restaurant, food supplies and

workforce sources. This is important because McDonalds applies strict

standards in these aspects that should be followed if the company is to

impart the company culture to the new owner/operator.Communication withthe owners/operators is important in the transfer of the design, processes,

technological abilities, management expertise and marketing strategies to the

McDonalds franchisees. Prior to the opening of the restaurant, the physical

structure should have been built, the crew trained, a manager designated and

suppliers are contacted and arrangements are made.


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Market Segmentation and Product Positioning There is little market

segmentation because McDonalds target households in general. Although at

the beginning, there may be an initial segmentation with the middle and

upper income classes composing majority of its market, the company

expects to reach out to lower income brackets as Estonias economy

continuous to grow, employment and income increases resulting to higherability to pay together with the change in food culture as more people are

exposed to American food and the fast food culture. McDonalds will

introduce the restaurant as a viable alternative to local restaurants because it

offers a different culinary environment targeting the Estonian family culture

and to local food since McDonalds offers American food. However,

McDonalds will also encourage the operators/owners to design innovativeways of integrating Estonian values and culture into the food, service

delivery, marketing and management of the restaurants to attract customers.


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Competition McDonalds does not have a major competitor in Estonia

because of the relatively less number of foreign, non-European restaurantsin the country. Competition comes from established local restaurants.

McDonalds carries the competitive advantage of management and

marketing expertise coupled with knowledge of the local market through the

owners/operators. However, a possible competitive weakness is the views

of the Estonians towards the United States since McDonalds is an American

business and towards the company as an international business firm.Negative perceptions should be addressed.


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MARKETING

1. Product

McDonalds products are standard in all franchises. However, the company adjusts

to culinary differences in various cultures. In the case of India, McDonalds offered

vegetarian burgers to practicing Buddhists. Asian countries preferring spicy taste

saw the introduction of spicy burgers, chicken and seasoning. This providesoptions for customers to purchase food with either the American taste or the local

taste. McDonalds achieves balance by maintaining standardization in products but

adjusting to the local taste.

2. Price

McDonalds prices differ in difference franchises since product price depends upon

the expenses and costs in the locality. However, McDonalds determines price byensuring the profitability of the restaurant while considering affordability to

customers. Owners/operators should be trained to be cost-effective in their

expenditures. Balance between profitability and affordability is achieved through

the companys pricing policy based on actual expenses and the receiving value for

value given. This means that people are willing to pay a certain price when the

company delivers and equivalent quality food and service.


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20/23

McDonald's Advertising McDonald's original advertising symbol was a

winking little fellow named "Speedee", designed to promote McDonald's

fast service. In the 50s and early 60s, McDonald's drive-in restaurants wereeasily identified by their red and white tile buildings, which were capped

with a slanted roof and framed on either end by a single golden, neon arch.

Restaurants began to use the advertising theme, "Look for the Golden

Arches" and in 1961, the "Speedee" symbol was replaced by a new logo -

an "M" slashed with a line, symbolizing the neon arches and restaurant

roofline. The arches, updated over the years, remain the advertising symbol

for the company and are now one of the most recognized icons in the world.


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Operations Customer Oriented Product and service delivery of McDonalds is

customer centered. This means that McDonalds primary concern is the satisfaction

of its customers. This is ensured by applying a strict standard of food and service

quality. Under direct Supervision of MotherCompany Periodically, representatives

from the mother company visit certain branches in order to ensure the maintenanceof quality standards, to discover problems and issues, and to provide updates on

operation, management and marketing techniques. The quality standard is integrated

in the entire supply chain process, starting with the products obtained from

suppliers, the process of transforming raw materials into consumable products,

packaging the food products, taking the orders of customers, and delivering the food.


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Quality focused McDonalds employees play an important role in the

delivery of quality product/service delivery. Employees are also

responsible for providing customers service by asking the preferences

of clients and listening to their requests and needs, and addressingthese accordingly. Customers Value McDonalds values its employees

as much as it values its customers. The company applies the

employment policy of providing sufficient training to its workforce.

Prior to starting work, newly hired employees are given a rundown of

the rules and regulations, company practices and the goals of the

company. After this, the employees are introduced to the differentcomponents of the menu, process of food preparation, food-packaging

techniques, serving of food, handling the cash register, and

establishing rapport with customers. New employees are given

practical exercises for experience.


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Documents

Successful Application of International Marketing Prezentacja