Analyzing McDonald's International Marketing: Strategies and Trends

This report provides a comprehensive analysis of McDonald's international marketing strategies, focusing on the critical evaluation of standardization and adaptation approaches. It begins with an introduction defining these concepts and highlighting key trends impacting multinational corporations (MNCs). The report then delves into McDonald's background, examining its market focus, product, and service offerings. A critical evaluation is presented, discussing how McDonald's applies segmentation, targeting, and positioning (STP) strategies, as well as the company's product and service adaptation and standardization strategies. The report also explores the challenges McDonald's faces globally, such as communication issues and cultural differences. It concludes by summarizing the effectiveness of adaptation and standardization approaches, emphasizing their impact on business operations and performance. The report references various books and journals to support its findings, providing a well-rounded perspective on McDonald's international marketing efforts.

The topic of standardisation and
adaptation of companies international
marketing including their product pricing
distribution and communication
strategies

Table of Contents
SECTION 1......................................................................................................................................1
INTRODUCTION ..........................................................................................................................1
Definition of Adaptation.............................................................................................................1
Definition of Standardisation......................................................................................................1
Trends affecting the operations of MNCs...................................................................................1
SECTION 2......................................................................................................................................3
CRITICAL EVALUATION ...........................................................................................................3
Background of McDonald's.........................................................................................................3
Market Focus ..............................................................................................................................3
Product and service ....................................................................................................................4
SECTION 3......................................................................................................................................6
CONCLUSION................................................................................................................................6
.........................................................................................................................................................6
.........................................................................................................................................................6
REFERENCES ...............................................................................................................................7

SECTION 1
INTRODUCTION
Definition of Adaptation
Adaptation introduces as an effective approach of detaining the differentiation that
present between services and products. It is based on strong market variety especially by market
uniqueness and market individualism. In addition, adaptation approach mainly deals with
specific market within country where efforts are focused to the variation in the marketing
environment. Main purpose of MNSs by using adaptation approach is to satisfy a specific need
of buyer (Fuchs and Köstner, 2015).
Definition of Standardisation
Standardisation refers as an essential process of implementing and creating technical
standards which is mainly relies on the consensus of various parties that includes users, firms,
standards organisation, interest groups and governments. In simple word, standardisation
approach focuses the connection between markets trying to take benefit of related consumer
ambition regardless of its similar and origin marketing infrastructure when applying strategies.
Main intent behind following standardisation approach is to satisfy heterogeneous needs of
buyers (Kraus and et. al., 2016).
Trends affecting the operations of MNCs
There are different key trends such as political, economical, social and technological.
These are main key trends that affected on operations of McDonald's while they entered in UK
market. It is important for an organisation to understand the trends and factors while enter into
any nation as expansion of their business operations. There are many factors but out of which the
main aspects which are necessary to consider and adhere includes cultural, social, economical
and political. McDonald is the organisation which is taken to carry out the research to understand
the aspect of international marketing. McDonald's entered in UK market in 1974 (McDonald's
amazing growth in UK, 2019). Now, it become the successful operating organisation in the UK
market. The main aspect behind its successful operation includes determination of the impact of
trends and factors and conversion of the same into the opportunities. The same aspect of market
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analysis is very much helpful for McDonald's in 1974 while they plan for entering into the UK
market.
Political: UK is developed nation. From the very beginning they focus over the
development of the economy through bring liberalisation in their policies. This will supports the
organisation Like McDonald's to easily enter into the nation through consideration of liberal
entry policies and government support (PEST Analysis, 2018).
Social: Emergence of fast food trend visible in the very beginning of the 19th century of
UK. The local society people are more prominent towards the consumption of ready to eat food.
This will bring opportunities for McDonald's to easily enter and hold position in this segment
(Matricano and Vitagliano, 2018).
Economical: The economic condition of UK is quite good from the very beginning time.
Good governmental policies and effective business models help the nation to build strong
economy which allows the new organisations to easily setup their business. This would be the
reason that McDonald's identifies the opportunity to enter in the nation in very dominant manner.
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SECTION 2
CRITICAL EVALUATION
Background of McDonald's
McDonald is chosen American fast food MNCs. It was founded by Richard and Maurice
McDonald in 1940 and headquartered in Chicago, Illinois, U.S. Company mainly specialise in
selling of hamburgers, chicken, soft drink, milkshakes, breakfast, wraps and fruit etc.
McDonald's is the multinational fast-food chain in all over the globe. Company has
approximately 35,000 outlets in around 118 nations all over the seven continents. The
international success and growth of McDonald's can be described by their dual strategy of
marketing in going global. McDonald’s exercises standardisation approach to an outstanding
extent within supply-chain management, service processes, employee relations and many other
enterprise processes, thus accomplishing economies of scale in certain levels (McDonald's,
2019).
Market Focus
Company focus on expanding their business in United Kingdom. Cost differentiation is
most essential strategy for McDonald's in expansion of its business operations. This strategy
involves in making business's service and products more attractive than those of their
competitors. In order to analysis market, STP is consider most effective and useful strategy
which have some positive and negative aspects are determine as under:
Segmentation: McDonald’s uses various kinds of segmentation with purpose to break a
larger market into small groups of customer. Under geographic segmentation, McDonald's
breaks their business into America, Europe and many other countries. Under demographic
segmentation, company segment the market in different parts such as children, Young adults,
Adults (Mellahi, Frynas and Collings, 2016). These helps McDonald's in its growth and success
at international level. For adults, McDonald's segmentation is not useful because of their
McArabia Chicken and Beef Burger. As it will reduce sales of an organisation.
Targeting: There are three factors that are important for evaluating potential market
segment such as segment size and growth, company objectives and resources, segment structural
attractiveness. These segments have to choose by McDonald's to target for driving their sales
activities, business strategy and marketing activities.
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Positioning: In order to position it’s products or services rightly in the target markets,
Company uses segment insights and information regarding the behaviour of consumer that are
created through market research. On the other side, improper research about customer's needs
and wants negatively impact on business operations (Pham and Zeidan, 2015).
Product and service
The key factors for success and growth of McDonald's in different nations are adaptation
as well as innovation. McDonald's comes up with a different services and goods catering to the
requirements of a customer marketplace that is widely different, basing their offerings on
customer demographics, economic and local factors, for example:
 McDonald's offered low-priced and fast menu to provide to female joining the labor force
as well as the maximising teenage population in the 1960s (How McDonald's Adapts
Around the World, 2019). The McDonald's innovation continues via additional goods, such as coffee of high
quality, healthy drinks and competing straightly with local cafés or coffeehouse chain,
Starbucks.
Standardisation Strategy: In different nation company has their business operations.
They offers identical products such as Happy meal, McChichen, McFlurry, Filet-O-Fish or
McNuggets. This plan support organisation by creating its strong image. Standardisation strategy
is a money and time saver for company as it supported build economic of scale.
Adaptation Strategy: It is another type of strategy that can be compared to localisation.
Along with this strategy, company adapts to the requirements and wants of customers as needed
by the cultures of particular nations.
Therefore, Adaptation strategy works more effectively for McDonald's. It enables the
company to have a deep reach in all over the world. The strategy does needs higher
communication as well as production costs also. This strategy will also support organisation to
attract large number of customers by providing quality products, using low pricing strategy,
following different distribution channels and communication strategy (Puke and Batraga, 2016).
Challenges faced by McDonald's at global level:
There are certain barriers faced by McDonald's while globalising their business via
standardisation or adaptation. Communication issue, cultural differential, rules and regulations of
government etc. are consider major challenges for McDonald's. As these will negatively impact
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over business operations and activities of McDonald's. In order to reduce these issue,
McDonald's must adopt flat communication, provide training to their employees and proper
conduct market research for addressing issue of governments rules and regulation (Solberg,
2017).
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SECTION 3
CONCLUSION
From the above report, it has been concluded standardisation and adaptation are two
essential approach which helped in organisation in development of its business. As these
approaches will also impact on business operations and performance of an organisation.
Adaptation is more suitable strategy which will support an organisation in its development.
Different number of key trends have been disused such as political, economical, social and
technological. These will helped an enterprise to enter into new market and achieve competitive
advantages within given time duration.
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REFERENCES
Books and Journals
Fuchs, M. and Köstner, M., 2015. Standardisation and adaptation of firms' export marketing
strategies in familiar European and non-familiar non-European markets. European
Journal of International Management. 9(3). pp.306-325.
Kraus, S., Meier, F., Bouncken, R. B. and Schuessler, F., 2016. Standardisation vs. Adaption: A
Conjoint Experiment on the Influence of Psychic, Cultural and...
Matricano, D. and Vitagliano, G., 2018. International Marketing Strategies in the Jewellery
Industry: Are They Standardised, Adapted or Both?. International Journal of Marketing
Studies. 10(1). pp.1-10.
Mellahi, K., Frynas, J. G. and Collings, D. G., 2016. Performance management practices within
emerging market multinational enterprises: the case of Brazilian multinationals. The
International Journal of Human Resource Management. 27(8). pp.876-905.
Pham, H. and Zeidan, S., 2015. Marketing Standardisation or Adaptation: The MNC Subsidiaries
(MNCs) Approach in Emerging Markets. In Proceedings of the 2007 Academy of
Marketing Science (AMS) Annual Conference (pp. 42-47). Springer, Cham.
Puke, I. and Batraga, A., 2016, April. ADAPTATION OF INTERNATIONAL MARKETING
COMMUNICATION MIX IN EXPORTER COMPANIES OF LATVIA. In Economic
Science for Rural Development Conference Proceedings (No. 43).
Solberg, C.A., 2017. International Marketing: Strategy development and implementation.
Routledge.
Online
How McDonald's Adapts Around the World. 2019. [Online]. Available
through:<https://www.daytranslations.com/blog/how-mcdonalds-adapts-around-the-
world/>.
McDonald's. 2019. [Online]. Available
through:<https://www.britannica.com/topic/McDonalds>.
McDonald's amazing growth in UK. 2019. [Online]. Available
through:<https://www.telegraph.co.uk/foodanddrink/11228085/McDonalds-amazing-
growth-in-UK.html>.
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