International Marketing: MacDonald's Noodle Tikki Burger in Nepal

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This report provides an in-depth analysis of MacDonald's international marketing strategy, specifically examining its entry into the Nepalese market. It begins with an executive summary outlining the key aspects of international marketing and the factors influencing a product's success in a new market, such as cultural sensitivity and market identification. The report justifies the choice of MacDonald's and Nepal as the case study, highlighting Nepal's potential as an emerging market and the importance of understanding local preferences. It then delves into country identification, discussing Nepal's geographical and economic characteristics, as well as the significance of tourism. The core of the report focuses on MacDonald's Noodle Tikki Burger, a product designed to appeal to local tastes. The report also explores the challenges and opportunities MacDonald's faces, using the PESTLE analysis to evaluate political, economic, social, technological, and legal factors. The report concludes by emphasizing the need for businesses to adapt their strategies to the cultural nuances of international markets for success.
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International Marketing
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EXECUTIVE SUMMARY
The below report is about international marketing and various factors which comes with
it. The below study discusses the impact of particular countries environment and behavior of
people towards the new product which is introduced into the market and how population
perceives all this change. The report has been discussing the factors which have come across to
find the particular country/ emerging markets and further what cultural sensitivity does in
influencing the behavior of persons.
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TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................4
MAIN BODY...................................................................................................................................4
Justification..................................................................................................................................4
Country Identification..................................................................................................................5
Emerging Market.........................................................................................................................5
Culturally Sensitive......................................................................................................................6
Challenges and Opportunities......................................................................................................6
CONCLUSION................................................................................................................................8
1REFERENCES..............................................................................................................................9
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INTRODUCTION
Globalization over the past years has been increased to a great extent due to the changing
need of business as well as people. In order to provide additional services to its customers,
businesses have taken a route to foreign markets to serve large customer base and provide them
with the utmost comfort. International marketing concept has been taken its place in the world by
the rapid rise of globalization(Martínez-López and Casillas, 2013). Through international
marketing companies are more focusing on there customer base as a whole. Present report has
been conducted in order to make necessary judgments and critically evaluate a business strategy
while going into international market. For this purpose a famous brand "MacDonald" is
undertaken with its new product "Noodle Tikki Burger" in Nepal.
MAIN BODY
Justification
For the purpose of study of international marketing the company undertaken here is
MacDonald, which occupies major area of the world as their potential market but as the part of
the process of growth they are making there way to the small markets which are on the verge of
development. Here, this famous chain is undertaken so that the reader of the paper can
understand easily what are the factors that needs to be considered while going into the new
emerging markets to enhance the business(Souchon and et.al, 2015). Since MacDonald has been
successful in making its mark on the world by its different marketing campaigns and variety of
products, this is the reason it has been taken for this particular study to make appropriate
judgments in context of international marketing.
Further the country chosen for this purpose is Nepal. Nepal being the developing country
covered with misty hills and mountains and a great attracti9on for tourist due to its whether
conditions 365 days. The whether creates a magic in Nepal and gives a mesmerizing view to the
tourist. Being in between the two developed countries India and China numbers have shown that
country has attracted so many tourist form these nations(Smith, 2014.). That's why it is the
perfect place for MacDonald to locate its outlets into the famous areas of Nepal in order to
expand. So Nepal is an emerging market for the business to get into and applying appropriate
strategies is the key to success.
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Country Identification
Nepal covered with the high mountains and hills and a cozy mesmerizing weather. Nepal
is known for his tourists destinations sites, long mountains, rivers, etc. due to abnormal weather
conditions it is difficult to provide quality road services to the people their. Air transportation is
main source of means for domestic tourists and passengers in Nepal. As people are more
attracted to these kind of places it is great tourist destination and an emerging market too for
businesses. Recent survey has suggested that in a year Nepal witness huge number of tourist all
over the year(Thøgersen and et.al, 2015). Form Marketing point of view and looking at the taste
and preferences of the nation, Mac'd has innovated anew product for the markets of Nepal which
is Noodle Tikki burger, so that it attracts the local people and as well as Chinese tourists too and
then sales will rise eventually. It is important in international marketing to understand the
behavior and taste and preferences of people at the place you are moving into and getting the
insights how they will perceive the products offered to them. By knowing the pattern of
consumption in a particular locality and then placing your product accordingly is the key in
international marketing. It is called positioning the product into the market. Nepal has a
drawback of road transport, in the country the road transport is not so promising and the main
means of transport is air transport which creates also a great opportunity for Mac'd to deliver the
burgers on the flights(Dong, Li and Tse, 2013).
Emerging Market
As people are more attracted to these kind of places it is great tourist destination and an
emerging market too for businesses. Recent survey has suggested that in a year Nepal witness
huge number of tourist all over the year, which is quite an amazing fact if talked about the
likability of the place. Since this kind of attraction has got Nepal into a limelight of emerging
markets and in the recent times it has been seen that development activities have been the key for
uplifting the country and since the local culture is very simple and the air is filled with peace
everyone likes to visit at the place(Thompson and Chmura, 2015). Nepal is seen as an emerging
market because many developments have been witnessed by the population and facts shows that
people are influenced by these changes and developments and strive to buy the new products that
are introduced in the market. Since Nepal is a developing market and here if talked about the
eating habits and most consumed product then as the culture gives the idea that in Nepal things
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which are bit Chinese, are mostly consumed. Nepal has been an important growth market for
both destinations in years, it was one of the top three fastest-growing markets for Australia in
2014 and the second-fastest growing for japan in 2013. Higher education in the country has
changed drastically since the end of monarchical rule in 1990. The country that had no private
colleges has developed a hybrid model in which public universities have grown in size by
providing affiliation to private colleges(Gruber and Schlegelmilch, 2015). Further more in
relation to McDonald they have high percentage of growth opportunists in Nepal by having
introduced the new product which includes local taste and local touch to it, which in turn gives
them an upper hand over the competitors because first thing people will recognize the brand and
second thing the new product. So that will make them to achieve the desired aims and objectives.
Culturally Sensitive
Going into new markets and that to internationally is a big and huge task which company
undertakes and in doing so it intakes large amount of workforce and financial resources to be
successful in that task. But going into a city selling is not the task for the company, while
expanding company has to undertake different scenario that could be well they will be getting in
front of them at the time of entering the new markets plus the culture of different country is the
crucial factor in defining the potential of business in that country. Thus, MacDonald after
understanding the consumption pattern and behavior of people had invented a new product
which matches the need of the people of Nepal(Explore the Strategy of International Marketing,
2017). Noodle Tikki Burger has been introduced in order to make people buy the product and
develop a perception that it is nothing but what they usually eat that is Noodle Tikki. Noodle
Tikki has been introduced by the company in the Nepal markets because here, this kind of
product will make the huge profits because of the perceptions and taste and preferences of the
people here. Nepal being the Buddhist country and religion that prevails their is Buddhism. So
people love peace their and every one being in that mode needs peace also. Talking about the
food practices followed their the main aim of the MacDonald is to have a local taste so that
people like the product and do free marketing that is word of mouth marketing for the product
they are planning.
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Challenges and Opportunities
Since if a company who wants it's operations in international market needs to identify its
opportunities into the market and know very well the market first. what market will be offering
the business and what they can take from the market and how they will achieve the things. There
are many challenges and opportunities which were faced by MacDonald in making a move to
international markets. For the purpose of moving into Nepal MacDonald have taken a care of
different things and also applied the relevant tools in making sure that Nepal has something for
them. There are various tools which are: Porter's five force model, Pestle analysis, SWOT
analysis and many others are there to examine up to which extent the factors available in the
environment will affect the company in making the relevant choices(What is International
Marketing?, 2017). So for the study of environment the tool which was undertaken by the
company is PESTLE analysis. Political: Political factor is related with legal laws and restrictions which have to be
complied with by MacDonald in order to perform the working within the market. Beside
this, laws relating to employment has to be undertaken where there is requirement for the
business to offer favorable environment to the personnel. Under this MacDonald has to
maintain suitable quality within the services that are provided to the target market(Guo,
2013). At certain point of time political laws can also act like barriers for the said
company because if Nepal Government lay restrictions then they will be in a huge loss in
terms of materials. Economical: The economy is the developing in case of Nepal. Moreover taking into
account overall economic condition it is highly beneficial for MacDonald to carry out
operations within the market. If Economy of Nepal faces a Downfall then Income level of
the consumers will get decrease and due to that decrease in purchasing power the
consumers will not buy their products, thus they will loose the demand and that will
result in decrease in sales. Beside this rate of inflation is lower because of which power to
purchase is higher(Lisboa, Skarmeas and Lages, 2013). In addition to it, as economic
scenario of Nepal is not so strong and income level of people in the city is low it is
difficult for MacDonald to build its pricing strategies because they may have to go in an
in depth analysis for that.
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Social: The social factor is attached with changes in the requirements of the target market
based upon the services which are required to be provided to the customers. In some
cases if people in Nepal are not satisfied with the services and the products then they will
likely to make their relatives and friends aware of their experience with the outlet and
that is wrong word of mouth communication for the company. Just like the price policy
changes and the kind of product Mac'd is delivering in Nepal is the proper example of
social factor. Moreover there is need for MacDonald to develop understanding in relation
with target market in order to provide them with the best service in the town. Technological: The market where MacDonald wants to carry out operations is highly
advanced and is a tourist destination due to this it is important for the firm to make
utilization of the place. Sometimes not adopting with the latest technological
advancements will make them stand last in the race and thus they need to adopt the latest
technologies in order to survive and make profits. There is no doubt that here cost is
involved in making adoption of new technology but the end result will be favorable for
the business by applying these strategies. Legal: This factor is associated with the rules and regulations that new businesses has to
comply with. Since Mac'd is not a new business it does not have to look at this factor.
Environmental: Overall the operations that are being conducted by firm negatively
influence the surroundings and because of this reason regulatory authority has developed
certain guidelines in order to prevent the environment from these practices(Gnizy, Baker
and Grinstein, 2014).
CONCLUSION
From this report it has been concluded that for making a move to international markets
certain things and environmental analysis is important to consider for achieving the set
objectives. It has been studied that moving into international markets is not a small thing it is a
big task and should carried effectively in order to make certain things right. International
marketing is important in making the expansion of a business successful, Through this it is able
make people aware about their product in the way the customers like.
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2REFERENCES
Books and Journals
Dong, M. C., Li, C. B. and Tse, D. K., 2013. Do business and political ties differ in cultivating
marketing channels for foreign and local firms in China?. Journal of International
Marketing. 21(1). pp.39-56.
Gnizy, I., E. Baker, W. and Grinstein, A., 2014. Proactive learning culture: A dynamic capability
and key success factor for SMEs entering foreign markets. International marketing
review. 31(5). pp.477-505.
Gruber, V. and Schlegelmilch, B. B., 2015. MNEs’ regional headquarters and their CSR agenda
in the African context. International Marketing Review. 32(5). pp.576-602.
Guo, X., 2013. Living in a global world: Influence of consumer global orientation on attitudes
toward global brands from developed versus emerging countries. Journal of International
Marketing. 21(1). pp.1-22.
Lisboa, A., Skarmeas, D. and Lages, C., 2013. Export market exploitation and exploration and
performance: Linear, moderated, complementary and non-linear effects. International
Marketing Review. 30(3). pp.211-230.
Martínez-López, F. J. and Casillas, J., 2013. Artificial intelligence-based systems applied in
industrial marketing: An historical overview, current and future insights. Industrial
Marketing Management. 42(4). pp.489-495.
Smith, M. C., 2014. Principles of pharmaceutical marketing. Routledge.
Souchon, A. L. and et.al, 2015. Antecedents to export information generation: a cross-national
study. International Marketing Review. 32(6). pp.732-761.
Thøgersen, J. and et.al, 2015. Consumer buying motives and attitudes towards organic food in
two emerging markets: China and Brazil. International Marketing Review. 32(3/4).
pp.389-413.
Thompson, F. M. and Chmura, T., 2015. Loyalty programs in emerging and developed markets:
the impact of cultural values on loyalty program choice. Journal of International
Marketing. 23(3). pp.87-103.
Online
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Explore the Strategy of International Marketing, 2017.[Online] Available through:
<http://www.marketing-schools.org/types-of-marketing/international-marketing.html>.
[Accessed on 31st March 2017].
What is International Marketing?, 2017.[Online] Available through:
<http://www.marketingteacher.com/what-is-international-marketing>. [Accessed on 31st
March 2017].
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