Mcdonalds Marketing Campaigns And Glocalisation Marketing Essay

Mcdonalds Marketing Campaigns And G topical anestheticisation Marketing EssayMcDonalds every(prenominal)iance is the instaurations largest be adrift of a function of hamburger exuberant sustenance restaurants, serving to a greater outcome than 58 million customers daily (McDonalds- smart set history). The smart set came into existence in 1940 by two br new(prenominal)s Richard and Maurice McDonald in San Berdardino, California. The crapper was the pi unrivaleder in introducing Speedee Service trunk in 1948, which is now known as fast solid food. The present skunk dates its founding to the opening of a franchised restaurant by Ray Kroc in Des Plaines, Illinois on April 15, 1955. Kroc later on went to purchase the McDonalds br early(a) truth from the company. The commit of aggressive businesses practices is what defined him as an person (www.wikipedia.com). One of the primary(prenominal) calculates for McDonalds immense growth over the years came from G topical anaes theticization, where they started entry new markets by either passing gameing a franchisee, an affiliate or the stack itself. The tidy sums revenues came from rent, royalties and fees paying by the franchisees as sound as sales generated from the company possess outlets. G localisation (or glocalization) is a combination of orbiculateization and localization. By definition, the term glocal refers to an individual, group, division, unit, organisation, and connection which be willing and able to think world(prenominal)ly and act locally (ABCs neighborly Media, September 18th 2008). McDonalds take aim spread their business to many other(a) countries and rely heavily upon the importance of thinking world(a) and acting local in order to suit the tastes and preferences of cultures of motley countries. Kroc believed the fraternity could make more m stary if it appea guide to children and went onto sponsoring a kids TV show called bozo the clown (www.bbc.co.uk, A brief hist ory of McDonalds). McDonalds continued to grow as a chain over the USA. Having covered the states, McDonalds first overseas restaurant was in Australia in 1971. The company made its presence felt in near of the European countries. besides, the locoweed noticed an immense demand and a young spirited market in the Indian sub-continent. McDonalds first entered India in October 1996 by establishing a joint venture in impertinently Delhi managed by 2 Indians Amit Jatia the managing conductor of Hardcastle Restaurants spearheaded McDonalds in west and south India while McDonalds in North and atomic number 99 of India argon owned and managed by Vikram Bakshi the entrepreneur of Connaught plaza restaurants (www.mcdonaldsindia.com). McDonalds has won several(prenominal) awards in consecutive years from 2001-07. It has built a strong carnal knowledge with more than 2.75 lakh customers who place their trust in the note workaday by providing them the highest select of food and at a g reat abide by.OBJECTIVES OF MCDONALDS (company perspective)-McDonalds underwent a lot of changes in order to adapt to the Indian market. As menti wizd by McDonalds management in their Indian meshingsite- Our strategy is to achieve best value by enhancing experience (offering best quality), while keeping values low.The objectives of the dope expect unchanged as they follow the same procedure which defines their global standard. Their principal(prenominal)(prenominal) emphasis is on providing food that is serviced hot and newfangled, made from the highest quality ingredients, served indoors minutes of placing the order (www.mcdonaldsindia.com).However, the companies main objectives in order to ensure consumers have a sincerely Indian experience is-Local sourcing is the key for truly Indian harvest-homeions- the corporation has developed local Indian businesses, which supply them the highest quality reapings required for their Indian operations.Respect for Indian customs and culture- McDonalds worldwide is well known for the high degree of respect to local culture. In landmark with its respect for local culture, India is the first uncouth where the corporation does not offer any pork or beef.An employer of opportunity- an employer of opportunity, providing long term c arers and quality use of goods and services to the Indian population.Quality, service, cleanliness and value- this is McDonalds USP to provide high quality harvest-festivals, served quickly with a smiling and in a clean and pleasant environment.Community partnerships- the corporation believes in giving back to the community it serves.Source- (Mcdonaldsindia)PROMOTIONFrom a marketers point of view, the corporation underwent a huge change in order to market its products in India. Since most of the western nations nearly share the same taste and culture, the corporation uses the theory of standardization since there is hardly any difference in the pagan aspect. However, entering th e Indian subcontinent, which differs signifi tailtly from the west and also other Asian countries, the corporation got involved in in-depth query before entering the market.Press coverageMedia advertisements and tag lines- Media for children- McDonalds advertised their kids meal on cartoon channels by showing a free toy with the purchase of a burger, which attracted a lot of attention to young children.Community work- community work always catches the eyes of the press. The corporation has participated in several field which contri savee to the community as a whole. Example- the mayors marathon for cleanliness, the BMC-McDonalds (Bombay municipal corporation) health seminar, housing charities, supporting pulse polio etc.Source- (http//www.mcdonaldsindia.com/mediacenter.html)This brings me to discussing what this search would conduct. The main subject this inquiry would be contributing towards is whether by thinking global and acting local and the corporations selling objectiv es overhaul McDonalds attain a moneymaking and positive consumer base in the Indian subcontinent.OBJECTIVES OF THE STUDYMarketing military campaigns- acuity of individuals to participate in marketing campaigns. Example- during a festival, are consumers alert of the receive to win a free iPod or to dine in with a celebrity.Marketing com undulateture- how has McDonalds utilise the marketing mix to adapt itself to the Indian Market. heathenish difference- to notice till what extent has McDonalds gone to ethnically adapt itself to the market.promotional and penetrating strategies adopted by McDonalds with regard to intricacy plans and market dominance.Purpose- why do consumers chose McDonalds. This field would encompass the practical idea of cost advised consumers, societys influence of purchasing patterns, influence of the west, consistency provided by the corporation, influence of children in choosing McDonalds, relaxed environment and advertisement campaigns/ hearty campai gns.New fancys- asking individuals how McDonalds can serve their customers better. This might be in the form of having more location, introducing a supposition such a drive thru in more locations, adding more to their existing menu in order to avoid repetitive purchase and stagnancy. limit pointThis research survey would be targeted towards gaining information on consumers in India and their cognizance over McDonalds marketing objectives and how well has their Glocalization (thinking global and acting local) campaign suffice individuals develop loyalty towards the brand. From a companies perspective, the research would help understand and report the corporations marketing activities but however would not give an insight into the budget that is allocated for them to carry out their tasks.Chapter one introduction to the seeIntroductionObjectives of the studyScope of the studyChapter two global marketing2.1 The paradoxes of globalisation2.2 The globalization fulfil2.3 The pos ture of planetary brands2.4 Global brands- The cobnsumer point of view2.5 Global market entry strategies2.6 Configuring the global marketing mix2.7 The product2.8 The price2.9 The distribution channels2.10 The promotionChapter three methodology3.1 Introduction3.2 The parapraxis study method3.3 Applying the explorative case study method3.4 The interviewees3.5 The interviews centeringChapter four Mcdonalds the globalization processThe make-Up world market ingathering categoriesSegmentation of the marketThe value of the marketThe expansion strategyNew market developmentThe marketing mixChapter five conclusionsIntroductionimplemented strategies analysisProblem identificationRecommendationsCulture and competitive advantage powerful multinational division structureFuture managerial applicationsAbstractThe exploratory research helps identify and examine how McDonalds corporation manages its marketing strategies ground on the concept of Globalization. It helps examine and explore how t he the Statesn fast food demon has adapted to the local taste and preferences of individuals in the Indian Sub-continent.Based on the concept of globalization and entering international markets, this research identifies the marketing strategies used by McDonalds corporation with respect to the marketing mix, buyer behavior ground on consumer percept, heathenish rendering and promotional tools for further business expansionQualitative research used in this research encompasses interviewing branch managers of McDonalds in selected location in India. The research also focuses on the perception and buy behavior of individuals who dine in McDonalds. The information obtained defines detailed description of various responses from the individuals interviewed, which in conclusion led to the completion of the research of how the corporation has used globalization and its tools for its marketing strategies in the Indian Sub-continent.Since globalization is a broad concept, the further l imitation that this research faces is the clash of cultures, which can be defined as the main driver for problems associated with globalization. The problem identified in the research is based both on basis of society and the organization. This study is based completely on the concept of globalization used by McDonalds for its marketing strategies in the Indian sub-continent and there is no mentioning of comparisons to McDonalds outlets in different countries since the cross cultural analysis would be very limited and would result in the research being incomplete.Eventually, recommendations in the conclusion column is mentioned to address the future strategies that can help McDonalds achieve a more profound and effective mount for achieving a higher market growth.CHAPTER TWO LITERATURE REVIEW accounting entryGlobalization describes the process by which regional economies, societies and cultures have become incorporated through a global network of communication, transportation and trade. However, there are several limitations associated with globalization from, the main factor being cross cultural analysis. This is where a new concept emerged, the term Glocalization, meaning think global by acting local. McDonalds have spread their business to many other countries and rely heavily upon the importance of thinking global and acting local in order to suit the tastes and preferences of cultures of various countries. Emphasising on this factor has helped the corporation build effective marketing strategies which have led to a advantageous consumer base in India.In order to identify and the marketing objectives of the corporation and the perception that individuals have of the global brand, quantitative research can help establish a base/platform for identifying how these factors contribute to the success of McDonalds in India.To help identify the major objectives of the research, the following forms of secondary research are used-Internal company dataSurveysJourn alsWeb articlesComputerized databasesMETHODOLOGYSecondary research can be helpful in identifying the current problem but does not guarantee any solution to the problem at hand. The McDonalds corporation has entered the market only to be welcomed. Years of research have led the corporation to a everlasting(a) understanding of the culture and sen erants of the public. The globalization process helps us understand that the buying process does not adhere to the product itself but is associated with fundamental cultural attributes/values which McDonalds understand and values. gibe to McDonalds aged management (www.mcdonaldsindia.com), standardization of their product is the main phenomena behind their company objectives. However, one key drawback to standardization is that it refers to a product rather than a consumer. A standardized product might be a failure when the cultural aspect comes into question. Hence the adaptation strategy used by McDonalds emphasizes on the consumer more than the product that they offer. (Cateora, 1993) mentions marketeers must be made aware of the respective(a) cultures present in other countries if they intend on having a lucrative international expansion.Applying qualitative research in the form of journal articles, web articles and internal data helps formulate an appropriate research design (Naresh k Malhotra, Marketing research, page 96). Using the corporations internal data, the research identifies what types of entry and adaptation strategies have McDonalds used in India to give its product a decisive Indian touch.Before entering the market, McDonalds had to understand the nature and consumption patterns on the Indian fast food industry. The staple fast food viands of individuals before the introduction of McDonalds was- pizza, burgers, chaat (traditional), vada pav (traditional), pani puri (traditional) etc. the leading fast food joints in this sector were Nirulas for pizzas and hot dogs (www.nirulas.com), Wimpys for it s burgers, pizza corner, Haladirams for traditional and global fast food cuisine and several other local competitors. The corporation realized and soundless the potential for growth in this sector. According to the Government of India website (http//business.gov.in/Industry_services/retailing.php), India is one of the most attractive markets for retail investment. Many national and global players have been invest in the retail segment and have ambitious plans for further expansion. The ample middle class with rising purchasing power are attracting global retail giants into the some untapped retail industry. Some of the international players already present in the Indian market include fast food chains like McDonalds and Pizza Huts Dominos Levis Lee Nike Adidas Benetton Sony Sharp Kodak etc. The investment opportunities in the domestic retail industry lay in most of the product categories particularly food and grocery (the largest category).According to (McDonalds India), the com pany invested four years to develop its unique cold chain, which has brought about a veritable revolution in food handling, immensely benefitting the farmers at one end and enabling customers to get the highest quality food products, absolutely fresh and at a great value. By using the theory discernment pricing, McDonalds priced its products at rates fairly less in comparison to its global locations. Example- a Mc chicken meal in London cost a person 3.5 GBP. The same meal in India would cost an individual $ 1. Its exclusive vegetarian burgers cost less than 30 pence.Another interesting factor that revolves around the taste a quality that differs from region to region in McDonalds products in order to serve the local taste that consumers prefer, the corporation discrete to outsource their supplies to local supplier, hence keeping costs down which eventually benefits both consumers and the corporation. With regards to globalization, the corporation has set its objectives to offering their customers a complete Indian experience, which suits their culture.From a consumers perspective, branding plays an important role when it comes to choosing a product. As mentioned by ( ), the spending patterns of the Indian consumers has evolved over time. The maximum they tend to spend is on food. Since trade and commerce is growing in the country, the consumers are more aware of international brands entering the market and being bombarded with several advertisements which catches their attention and sentiments. localisation OF MCDONALDSThe corporate strategy of every multi-national corporation is to enter international markets. According to Keegan (1999), there are three product categories in the local-to-global continuum national, international and global. However with regards to McDonalds, the research would only compare the differences in a national product and a global product.A national product is the one that, in a context of a particular company is offered in a single national market. Sometimes national products appear when a global company caters to the needs and preferences of countries sacramental manduction similar cultures. Example- McDonalds has its standardized product which it sells the world over Mc Aloo Tikki. Since the majority of the population in India are vegetarian, the corporation introduced its first vegetarian burger which suits the tastes and preferences of the local population and the major share of sales for McDonalds in India is derived from its vegetarian products. (www.mcdonaldsindia.com)A global product is offered in global markets. They are international and multi-regional. Example- McDonalds serves its Mc chicken burger in America, Europe, Asia, South East Asia, Australia and NewZealand. This is because the nature of the product suits the tastes and preferences of most cultures.By consulting web articles from ( ), the research identifies approach adopted by McDonalds to advertise its products in India. This would help the research identify the marketing mix adopted by the corporation to suit the Indian sub-continent. Since McDonalds is a global brand, its marketing mix varies from region to region catering to the difference in consumer taste and preferences as well as perception. Perception is what holds the key to positioning a brand. According to Trout and Ries, positioning is not what you do to a product. berth is what you do to the mind of the prospect. That is, you position (place) the product in the mind of the prospect. Since that time in marketing, positioning is the technique in which marketers try to create an visualise or identity for a product, brand, or company in the perception of the target market. What matter is how potential buyers see the product? It is expressed relational to the position of the competitors.Another factor that proves to be a factor which effectuate globalization is communication. Globalization does bring the world together but however, sharing of cultures and languages of different regions can be a strenuous task not resulting in productivity at times. However the concept of glocalization questions this statement. Having a thorough knowledge of any market can only be practical if there is a local citizen belonging to that region working with you. Hence, having tie-ups and the concept of franchising has helped McDonalds corporation overcome this dilemma and grow in a country where language would have been the main barrier.Quantitative research has helped the research identify how McDonalds promotes its product in a country consisting of a vast social diversity. As mentioned by a web article by (DR. Amit Rangnekar), India as a country has 20 different languages, 800 + dialects and 8 languages for national launch, can make a new product launch for any multi-national company risky and difficult by not choosing the right medium.Extensive use of the media helped capture the attention of several audiences. The corporation understood the se ntiments of the population, which helped them, establish a proper communication network to address the needs of the consumers in all major languages spoken. Focussing on the Indian population, the corporation has gone to the extent of creating advertisements which capture the attention of the audience. Example- Leo Burnetts advertisement and taglines for McDonalds India- for the happy meal which was introduced in 1997 what your bahaana is? meaning what is your excuse. purane zamaane ka daam, bees mein full dhamaal- meaning (prices so low that would attract your ancestors, respect a blast by paying only Rs 20) and recently Im lovely it.McDonalds has undergone a lot of press coverage. As quoted by (The Hindu demarcation Line)- happy to go McDesi covers how McDonalds besides adapting to Indian tastes is offering a range of touch points for customers on the go. It is focussed on having its presence felt in all spheres right from petrol pumps to kiosks to drive thru and home delivery. (http//www.mcdonaldsindia.com/mediacenter.html)With reference to these advertisements and slogans, the research identifies the significant impact a thoroughly understood marketing campaign has on individuals. The brand has positioned itself to suit pockets of nearly all individuals. With my personal experience, the product that is priced the cheapest in McDonalds India, can suit the pocket of a Labour, who own $ 10/day. Understanding the value and sentiments of individuals has the corporation develop a profound and fiducial consumer base.According to Dr. Amit Rangnekar of NMIMS, McDonaldsstrategy is based on 5 key drivers of exceptional consumer experiences- populate + the 4 Ps and founded on the belief of 3 success components- working(a)Leadership marketingInnovationThe intent of delivering an exceptional experience to almost 2.75 lakh people a day who place their trust in the brand and offering better efficiency and speed of service is what differentiates McDonalds from local c ounterparts in India. The efficiency with which they use their resources and the use of technology helps them retain their brand essence.Consumer perception associated with global brands has evolved over the years. According to a survey conducted by (KSA Technopak), the sector for eating out is growing tremendously, since consumer spending is increasing. The Urban fast food sector is growing at a rate of 20 % and quotes McDonalds is just not a substitute for Indian food, its just one more option for people to exercise.Indians want a taste of America but not on a regular basis as quoted by survey conducted by KSA Technopak and Dr. Amit Rangnekar. Inflexibility in the product mix could be their undoing. However, innovation has led to the introduction of products which has resulted in increased footfall of consumers eating at McDonalds and growth in the number of outlets nationwide.Concentrating on the marketing mix of McDonalds, quantitative data has helped the research identify-Pric ing strategypromotional strategy