Challenges and Strategies for McDonald's Global Marketing: A Case Study of India

This presentation discusses the challenges faced by McDonald's in India and the strategies adopted to overcome them. It covers the macro and cultural environment, economic and political considerations, product and price reviews, distribution and marketing considerations, competitive analysis, SWOT analysis, and alternative strategic marketing solutions. The recommended marketing strategy, product and pricing suggestions, distribution and marketing communication suggestions, and ongoing issues to monitor are also discussed.

GLOBAL MARKETING

Section 1: The Problem
Topic

1.a: Statement
 The challenge of McDonald’s is to set up a
successful campaign in India
 The ways to manage the political confrontation and
the hiring of locals is a big challenge for the
company
 Price also fluctuates in every country

1.b: Evidence
 This is evidenced from the fact that in
India 80% of the people does not eat
beef
 The Muslim community does not eat
pork
 In Switzerland, the prices are valued
more than US market
 In China it is lesser $0.60

Section 2: Analysis of the current
situation

2.a: Macro environment
 The macro environment factors include
 Political
 Environment
 Economic
 Employment opportunities
 Corporate citizenship

2.b: Economic
considerations
 The economic consideration undertaken
by the company includes the fluctuation
in the business environment
 The protection of the domestic business
poses challenge

2.c: Political considerations
 In a country like, McDonald’s find it hard
to enter the market
 It has to cut out its traditional menus to
suit the Indian culture
 Government try to protect the local
markets and the religious beliefs

2.d: Cultural considerations
 In India, most people are reluctant to eat
beef or pork
 In other countries like Australia, people
are more health conscious
 Hiring of local people also becomes a
challenge for the company

2.e: Product review
 McDonald’s started selling different
types of product
 To mitigate the problem of beef and pork
in India, the company started burgers
not made of these components
 It started McAloo Tikki burger for the
vegetarian community

2.f: Price review
 The company has seen a rise in income
since 1995
 Till 2004, the estimated net income has
been $2.2 billion
 The revenue being $20 billion
 Prices fluctuate depending upon the
target customers

2.g: Distribution review
 The distribution of its products are done
directly
 McDonald’s have opened up branches in
over 100 counties
 The company even has a drive-through
restaurant in China

2.h: Marketing
considerations
 In different countries McDonald’s have to
market its product differently
 In India, the company needs to keep in
mind the restrictions in using beef or
pork
 In China, to get high sales, McDonald’s
uses pricing strategies
 Retaining customers is another
important consideration of the company

2.i: Competitive analysis
 McDonald’s faces competition from local
markets
 KFC and Burger King are two of the most
fierce competitors of McDonald’s
 Subway is another competitor of the
company
 The low calories of foods of the
competitors make it healthy for the
customers to consume it

2.j: Product/Market analysis
 The market of McDonald’s varies across
countries
 In the USA, the company is a hit among
all the communities
 The target community ranges from
middle to upper class
 The lower class are target based on the
success

2.k: SWOT analysis
Strength
•Successful advertisement
•Reputed name
•Competitive price
•Adaptability
Weakness
•Lack of product development
•Excessive number of stores
•Need varied products
•Employee turnover
Opportunities
•Internationalization
•Growing market
•Advertising strategy
•Ability to make healthy food
Threats
•Changes in prices
•Emergence of competitors
•Local community
•Saturated industry

2.l: Conclusion
 Currently, McDonald’s have seen a huge
growth in the oversea market
 The investment in dishes based on the
culture of the land have made the
company a success

Section 3: Alternative strategic marketing
solutions

3.a: Alternative 1
 The first alternative of McDonald’s can be to
identify the service quality that customers value
 The advantage of this alternative is that
interaction with the customers can be done
 The disadvantage is that surveying every
customer will require a lot of expense

3.b: Alternative 2
 Another alternative can be is the hiring of
local people
 The advantage of this is that McDonald’s
can have local talents of every country
 The disadvantage is that training needs to
be provided to these people

3.c: Alternative 3
 Better promotion of the food products could
be another advantage for the company
 Advantage of promotion is that people can
know about the new products
 The disadvantage is that without the right
media, McDonald’s may not find success

Section 4: Recommendation

4.a: Recommended strategy
 The marketing strategy can be based on
the promotion of products
 This is important as people, like in India,
may stereotype McDonald’s for
manufacturing food items with beef or
pork
 The introduction of vegetarian dishes
can be a good promotion for the
company

4.b: Product suggestions
 The products need to be based on the
demands of the people
 Diversity in products can be of huge help
 Similar products like McCafe can be
introduced

4.c: Pricing suggestions
 The prices need to be consistent
 It has been seen that the Big Mac varies
in different countries
 The price need to be pocket-friendly so
that it attracts every class of people in a
society

4.d: Distribution
suggestions
 The distribution of the food items can be done
by online
 In the modern days, food applications are used
to deliver food from one restaurant to the
customers
 McDonald’s can make deals with such food
service providers

4.e: Marketing communication
suggestions
 The marketing communication need to be done
keeping in mind the requirements of the
customers
 Proper feedback need to be taken from the
customers
 The communication with the customers can be
done via social media

4.f: Additional comments
 Additionally, it is required that
McDonald’s indulge in CSR activities
 In developing countries, it is necessary
that the company promote the
advantages of remaining healthy
 It needs to ensure that it produces
healthy food for every customer

4.g: Ongoing issues to
monitor
 The issues that need to be monitored
includes the fluctuation of economy
 The satisfaction of the people is another
important issue
 The political scenario and the beliefs of
the people also need to be considered

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