McDonald's Marketing Strategies in Emerging Markets

This assignment examines McDonald's marketing strategies specifically tailored for emerging markets such as India and Pakistan. It requires an in-depth analysis of their marketing mix, including product adaptation, pricing strategies, segmentation approaches, and target market selection within these unique cultural and economic contexts. The goal is to understand how McDonald's successfully adapts its global brand to resonate with local consumers.

Running head: INTERNATIONAL MARKETING MIX STRATEGIES: MCDONALDS IN
PAKISTAN i
International Marketing Mix Strategies: McDonald's in Pakistan
Student’s name
Institutional affiliation

INTERNATIONAL MARKETING MIX STRATEGIES: MCDONALDS IN PAKISTAN ii
Executive Summary
McDonald is an important player in the fast-food industry. Since the company operates in the
international market, it has been compelled to adapt marketing mix that can suit the country
of operations. This report demonstrates McDonald's marketing plan regarding its seasoned
offerings and relevant arrangements to maximize its capacity. The report displays the
company’s arrangement segments and business sectors. It further provides the advertising
techniques and goals regarding the international marketing mix to demonstrate how it can
offer and build its reputation in the market.
Objectives
 The company intends to use apply the marketing mix strategies to increase its market
share by 60 percent in the next 12 month.
 To provide quality menus with exemplary services at reasonable prices
Vision and mission
The mission of the company is to become a customer-favorite place to eat, drink, and have
fun. The ‘plan to win’ strategy focuses on exceptional customer experience founded on the
4Ps that the company will use to improve its operations and customer experience in Pakistan.

INTERNATIONAL MARKETING MIX STRATEGIES: MCDONALDS IN PAKISTAN iii
Table of Contents
Executive Summary...................................................................................................................ii
Objectives...............................................................................................................................ii
Vision and mission.................................................................................................................ii
Introduction................................................................................................................................1
Situational Analysis...................................................................................................................1
Market share model and market analysis...............................................................................1
McDonald's in Pakistan..........................................................................................................2
Competitive Analysis.............................................................................................................2
Competitive edge................................................................................................................2
PEST Model...............................................................................................................................3
Political factors.......................................................................................................................3
Economic factors....................................................................................................................3
Social factors..........................................................................................................................3
Technological factors.............................................................................................................4
Key Success Factors...............................................................................................................4
Convenient locations...........................................................................................................4
Critical Issues......................................................................................................................5
Marketing strategy.....................................................................................................................5
Customer analysis......................................................................................................................5
Segmentation..........................................................................................................................6
Geography...........................................................................................................................6
Demographical....................................................................................................................6
Psychographic.....................................................................................................................6
Behavioural.........................................................................................................................7
International marketing mix.......................................................................................................7
Product....................................................................................................................................7
Promotion...............................................................................................................................8
Integrated marketing communication.................................................................................8
Pricing.....................................................................................................................................9
Place.....................................................................................................................................10
Control, Implementation, and Contingency Plan.....................................................................10

INTERNATIONAL MARKETING MIX STRATEGIES: MCDONALDS IN PAKISTAN iv
Marketing Plan for Implementation.....................................................................................11
Objective...............................................................................................................................11
Contingency plan..................................................................................................................11
Conclusion................................................................................................................................11
References................................................................................................................................12

Running head: INTERNATIONAL MARKETING MIX STRATEGIES: MCDONALDS IN
PAKISTAN 1
International Marketing Mix Strategies: McDonald's in Pakistan
Introduction
McDonald’s remains the dominant player in the fast-food service retailer, especially
the hamburger. The company serves over 35,000 restaurants worldwide with over 50 million
clients daily (McDonald's, 2012). McDonald was restructured to pursue the ‘go international,
act local’ culture thus defining its production principles. McDonald’s products like sirloin,
fries, soft drinks, breakfast items, burgers, milk, chicken, and candy offer a significant feeling
(McDonald’s India, 2012). The company operates on offering the best quality services to its
customers thus encourage repeat customers. The company uses different strategies to meet
the expectations of the clients.
Situational Analysis
Market share model and market analysis
McDonald is an indisputable marketplace leader in the Burger business. It has become
a quick nourishing industry with a perceived productive and prominent brand image. In fact,
the ‘McDonaldization’ is a term coined from its anticipated quick nourishment aspects
(Bressan & Paola, 2014). As part of its advertising strategy, the company has distinguished
the needs of clients and it strives to satisfy their requests. It further assesses its advertising
techniques thus identify pitfalls regarding execution. The company boasts of over 30,000
eateries worldwide where it serves millions of customers.
The company used the ‘three-legged stool’ to define its operations. The three legs
stand for the employees, suppliers, and proprietors (Zaiem & Zghidi, 2011). The connection
or relationship between these stakeholders has made the company succeed because the
connection defines the game plan. McDonald's has invested in sustainable and quality
programs that deliver structures and supports its commerce model.

INTERNATIONAL MARKETING MIX STRATEGIES: MCDONALDS IN PAKISTAN 2
McDonald's in Pakistan
In Pakistani, the company’s operations are insignificant because it has failed to rule
the market. The company needs to focus on expansion to control this potential market.
Although many corporations have failed in this country, McDonald's have an opportunity to
expand (Foxworth, 2013). The company should consider investing in the country, with focus
on the urban communities including Karachi, Hyderabad, Islamabad, and Lahore. The
company must consider introducing some of its pieces and build its establishment in the
targeted communities.
Competitive Analysis
KFC is the leading player in the Pakistani market where it had introduced its chicken
sandwich. The introduction of the McChicken expanded the KFC’s expenses because it
believed its sandwich was mindful of customers.
Competitive edge
Differentiation
McDonald enjoys a competitive advantage in the market. Since its inception, the
company has never placed a stock without considering the tastes and preferences of
customers (Alexander, 2012). The company has used most of its opportunities to learn the
tastes of the society to avoid cultural conflict. It has considered the immense customer market
by continuously contrasting the tastes. This implies that the company depends on the support
of the basic slants. The company has passed its products within external territories through its
connections that are aware of the mechanisms in the new market.
Cost leadership
The company has the potential to purchase supplies in mass thus benefit from
economies of scale, McDonald’s leases properties and zone to comprehend its brand name

INTERNATIONAL MARKETING MIX STRATEGIES: MCDONALDS IN PAKISTAN 3
(McDonald's, 2012). It has used its strengths to publicise its diverse chains thus understands
the picture.
PEST Model
Political factors
The Pakistani government has recently increased its GST regarding the service
industry. The changes in the regulations and rules can easily disrupt McDonald’s operations
(Horovitz, 2014). For several years, the country has experienced the worst political instability
thus affecting the import-export policies because the governments always use its ideologies to
define its relationship with the external authorities. However, with strained relations with the
West, McDonald has experienced troubles with the government, especially its raw materials
imports. Nevertheless, the company is never expected to compromise the quality.
Economic factors
The recent economic downturn affected the company’s earnings. Sometimes, the
organization can exaggerate its sales to befit the expectations of stakeholders. The company
also faces problems with the exchange rates, interest rates, and currency. The continued
increases in the production costs have affected McDonald’s performance (Horovitz, 2014). In
Pakistan, the company is exposed to various variables influencing its operations. Similarly,
most of the Pakistani customers are middle-class. Due to the financial downturn and
cutbacks, these customers have retreated as they consider McDonald’s products as an
extravagance.
Social factors
The customers in Pakistan are brand cognizant as they turn out to enjoy their times in
the eateries (McDonald's, 2012). Unfortunately, some customers have become hostile to the
American products. In effect, some customers and organization have boycotted the
merchandise.

INTERNATIONAL MARKETING MIX STRATEGIES: MCDONALDS IN PAKISTAN 4
Technological factors
Innovation and creativity have benefited McDonald in its operations worldwide. Most
of the representatives use the technology to serve brisk management. Similarly, the workers
also use the personal computers to maximize their productivity and monitor the
administration framework (Ali, 2014). According to studies, the company has benefited from
Google Apps and other office software sites. For instance, it has managed to meet the needs
of customers online, especially those who place their orders through the internet. The
company has also promoted the informal contacts. For instance, workers can use Google+
and Facebook to contact and mark their sources.
Key Success Factors
McDonald’s is an efficient player in the food sector because of the key success
factors. Food quality is the leading quality control rule the company has used for decades.
McDonald’s has used the stricter quality control to achieve the nourishment security in the
market. It has kept the company stronger than its suppliers shipping the hamburgers (Aldi,
2014). Additionally, the company’s positive image and good reputation is another success
factor. Fast-food Café has built positive image and brand thus assuring its customers quality
food (Akgun, Keskin, & Ayar, 2014). It has remained a standout company in the modern
world thus earning customer trust, confidence, and great picture. It has become the best spot
for children and families thus affirming its exceptional value.
Convenient locations
The company has operated ahead of its rivals because of its convenient locations. The
company identifies its strategic locations thus make it approachable and easily accessible.
The appealing spots have made it possible for customers to enjoy their fascinating
experiences. For example, the Hyperstar Karachi franchise catches the attention of customers.
McDonald’s Rawalpindi/Islamabad is strategically located to attract clients.

INTERNATIONAL MARKETING MIX STRATEGIES: MCDONALDS IN PAKISTAN 5
Critical Issues
McDonald’s key issues include price sensitivity, terrible PR, and operation costs. As
part of its price sensitivity, it has increasingly used high prices that can drive clients away.
The company needs to focus on improving its pointless and wasteful operational territories to
cut operating costs. McDonald’s has an outstanding brand image. For instance, it is believed
that the company offers its customers good remunerations (Ali, 2014). However, the
organization has suffered a grave dissent from its workforce who complains of low wages.
Marketing strategy
In business, marketing strategy defines the commitment of an organization to meet the
expectations of customers (Ahmed, Ahmad, Parmar, & Khoso, 2014). It focuses on the action
path that it has to execute to serve different individuals in the market. The company has
established a marketing framework to market the products, McDonald's has incessantly
controlled its marketing strategy by controlling limits thus minimize expenditures on the
process (McDonald's, 2012). Upon establishing the marketing strategy, to company assigns
different people distinct obligations to actualize the plan. The company uses its framework to
set up inputs and quantify the targets.
Customer analysis
McDonald has identified the elements that define the expectations and buying
behavior of customers. McDonald’s offers hamburgers to its customers (McDonald's, 2012).
However, it also offers them everything that can influence their purchasing choices. For
instance, the picture element is essential in determining the feelings of customers upon
buying it. The company has used advertising to establish a strong position and perception of
customers.

INTERNATIONAL MARKETING MIX STRATEGIES: MCDONALDS IN PAKISTAN 6
Segmentation
The company has also benefited from its unique segmentation strategies that are based on
various variables.
Geography
The company views Pakistani market as a metropolitan market. The topography of the
national markets has made the organization to calm different portions, it is important for it to
concentrate on the urban business regions (Yeu, Leong, & Tong, 2012). McDonald’s
nourishes the metropolitan masses. This is achieved because of the natural dietary culture in
the market and its continued efforts to use a standardized approach to attain sustainable
market.
Demographical
In Pakistan, the majority of the consumers are low-income earners and middle-class
population. This implies that these targeted customers use their pay to meet their daily
expenses. The metropolitan masses can afford the company’s offers and products. These
products meet the expectation of the common laborers (McDonald’s UK, 2012). The
company also considers age as an element. The family factor is also important in determining
the strategy it uses to serve the market. Currently, the company will be concentrating on the
family who pursues family suppers.
Psychographic
The company also considers the caretakers who intend to give their kids a lasting
experience. Kids have to visit McDonald’s to have the fun of eating (McDonald's, 2012). The
company offers sustenance tastes and quick associations that can influence their clamor for
young people.

INTERNATIONAL MARKETING MIX STRATEGIES: MCDONALDS IN PAKISTAN 7
Behavioural
McDonald’s has organized different events and vacations to attract clients. Presently,
the organization targets the customary clients with its promotional strategies. With the recent
positioning in India, it has created an extraordinary event thus advancing its origin
substances.
International marketing mix
The company is an international organization that engages in serving different
customers with diverse preferences and tastes. It has to use distinct strategies to meet the
customers’ expectations. In fact, the company has embraced an adaptation strategy instead of
standardizing its marketing strategies. In most cases, the organization combines its
globalization and internationalization elements to serve the clients in the fast-food markets
(Vignali, 2001). The company strives to adapt to the local communities in its global
operational environment.
Product
The company understands that customers would be satisfied when it offers a menu
that befits their expectations. McDonald's provides customers choices because many
customers spend their money differently on various needs (Price, 2002). By offering them
choices, the company is catering to their needs. According to the company, focusing on the
menus ordered is critical because McDonald has always strived to create a menu demanded
by customers. This is an adaptation strategy instead of creating a standardized menu. With the
rapidly changing technology, the organization has acknowledged the factors which customers
consider (Khoso, Ahmed, & Ahmed, 2014). Therefore, McDonald has invested heavily in its
R&D to monitor the market preferences. To the company, introducing new products is
propriety and eliminating the previous ones is necessary for its survival.

INTERNATIONAL MARKETING MIX STRATEGIES: MCDONALDS IN PAKISTAN 8
The company focuses on the beverage and food products. It intends to offer various
gifts to attract customers, especially the kids. The strategy is an innovative move to offer
products. This company values the Pakistani’s religion, cultural background, personal
disposable income, and buying habits (McDonald’s India, 2012). It has adopted the
marketing and product mix to meet the needs of the local customers. For instance, in India,
the burgers contain fish or chicken instead of using the beef because it is sacred. In Mexico,
this product is served with chili sauce. However, the company has standardized its burger,
except in other markets.
Promotion
The marketing mix element involves communicating with customers and provides the
strategies to communicate with them. McDonald has differentiated the minds of customers
using their services (Aldi, 2014). The company also uses different campaigns to promote its
products. It promotes the idea and products this prepare the best orders to clients. For
example, it offers opportunities for customers seeking to enjoy a quick lunch. In most cases,
it has communicated such services using different strategies.
Integrated marketing communication
Advertising
McDonald communicates its advertisement messages through different mediums,
such as Radio, print media, TV, and online. In the United States, the company has invested in
the TV Ads. In Pakistan, McDonald's uses national channels and social media to advertise its
products (Ali, 2014). The company promotes its videos on YouTube and Facebook. For
instance, its processes transform the ordinary potato into the Mac-Fries.
Sales Promotions
McDonald's has proposed to increase its sales promotion in this new market. The fast-
food industry in Pakistan is booming despite being stiff competition (Akgun, Keskin, & Ayar,

INTERNATIONAL MARKETING MIX STRATEGIES: MCDONALDS IN PAKISTAN 9
2014). The local restaurants also offer similar products cheaply. McDonald needs to use
exciting deals better than the local restaurants.
Public relations
The company is yet to use the public relations policy in Pakistan. However,
McDonald is a house of philanthropies and a defender of ecological activities (Khoso,
Ahmed, & Ahmed, 2014). It uses the best green project to bolster its corporate brand. The
green environmental activity will help the firm to increase its social and corporate image.
Direct selling
McDonald’s engages in direct selling in many countries. However, in Pakistan, the
direct selling is unpopular. For instance, it can sell the product to corporate client businesses,
community parties, events, and local government (Akgun, Keskin, & Ayar, 2014). McDonald
has invested in advertising and it will use the strategy to promote its marketing mix thus
succeed in Pakistan. The company needs to initiate rigorous advertising of its products on the
Pakistan television channels. It will also benefit from the sales promotion.
Pricing
In the international market, pricing remains a complex task. It is a value proposition is
the customer’s minds. Given the current economic situation, many customers draw the mental
picture of the value of any product. The psychological meaning of pricing would involve the
move by a customer to perceive the value of product beyond or below its market value
(Bressan & Paola, 2014). Nonetheless, it is critical to consider other factors like competition,
fixed and variable costs, and the targeted market. McDonald's seems to create the value in
customers’ mind thus satisfy their expectations. In Pakistan, McDonald's uses the
psychological pricing and price bundling (Horovitz, 2014). It uses both strategies to offer
different discounts and deals, especially when it comes to price bundling. In psychological

INTERNATIONAL MARKETING MIX STRATEGIES: MCDONALDS IN PAKISTAN 10
pricing, the company looks affordable by rounding its prices off like charging Rs. 299, or Rs.
99.
McDonald's also intends to use the integrated pricing strategy to become successful.
The company uses the best formula to set affordable prices thus targets the relevant market. It
finds it easy to create the differentiation perception the customer’s mind (Aldi, 2014). For
instance, customers will try to maintain the lowest prices for its products in Pakistan
compared to its rivals like KFC. However, KFC controls the larger market share than
McDonald's in Pakistan. The company will also be offering innovative products including
Macc-Allo-Tiki-Burger to benefit the Indian customers in Pakistan. Like in India, in the
Pakistani market, many customers are poor thus making it possible to design menus that befit
their living standards.
Place
The marketing mix focuses on the distribution of products and services. Distribution
of products allows the companies to reach out to the clients. According to studies, scholar
(Alexander, 2012), have defined distribution based on the physical presence of the products.
It depends on the management process. Importantly, the distribution processes remain
engaging to offer customers to the targeted customers. McDonald's has identified the best
location where customers can access the product. In Pakistan, it has created physical and
virtual locations to sell the products including restaurants, websites and apps, kiosks, and
McDonald mobile apps. Importantly, the Pakistani restaurants will generate more sales than
the other sales points. The Kiosks also offer some selected products.
Control, Implementation, and Contingency Plan
The company anticipates affirming its position and maintaining the reputation by focusing on
the overall performance of the company.

INTERNATIONAL MARKETING MIX STRATEGIES: MCDONALDS IN PAKISTAN 11
Marketing Plan for Implementation
The company should create an appropriate marketing plan by working on higher hierarchy
thus off-guideline to its relevant departments.
Objective
The company anticipates achieving its objectives of focusing on the overall financial
positions including sales, profit, market share, and budget. The company will manage to
achieve its objective upon analyzing the divisions and departments within the plan. It will
have to invest in marketing channels, communication, and research.
Contingency plan
If the company fails to match its goals and values, it must consider the second option.
The company will have to establish additional prioritize in its pipeline by reviewing the new
product, services, and location.
Conclusion
McDonald stands a high chance of improving its revenues by expanding into the
Pakistani market. The fast-food industry is a viable sector in the Pakistani market. Despite
stiff competition in the market, the marketing mix provides an opportunity for McDonald to
achieve its goals. Nonetheless, the company should consider the integrated marketing
communication strategy to overcome the impact of the local restaurants and KFC. Based on
this marketing plan, the company has an opportunity to enlarge its market position by
offering the new products that meet the expectations of its clients.

INTERNATIONAL MARKETING MIX STRATEGIES: MCDONALDS IN PAKISTAN 12
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