Marketing Management Report: McDonald's Expansion in Iceland

This report presents a strategic marketing plan for McDonald's expansion into Iceland, focusing on the introduction of the Apple pie. It explores the adaptation and standardization of the marketing mix, including product, price, promotion, people, place, process, and physical evidence, tailored for the Icelandic market. The report delves into the CBBE (Customer-Based Brand Equity) model, emphasizing brand salience, imagery, and consumer reactions. It also examines the integrated communication mix, including advertising and social media strategies, alongside methods for measuring success through profitability, return on investment, and sales targets. Furthermore, the report outlines market entry options and the importance of understanding Iceland's economic, political, legal, technological, and social factors (PESTLE analysis). The conclusion highlights the significance of the marketing mix, CBBE model, and integrated marketing communication in achieving business goals. This analysis provides a comprehensive overview of the marketing strategies required for McDonald's successful entry into Iceland, supported by relevant references.

Group Marketing Management

Cover Content
• Introduction
• Adaptation and standardization of marketing mix
• CBBE MODEL
• Integrated communication mix and method
• Measurement of Success
• Conclusion

Introduction
Strategic marketing is the way in which an organization differentiate itself from the
other competitors available by formulating of new strategies that helps in gaining
the competitive advantage.
In this study, McDonald is planning to expand their business in Iceland by
launching of Apple pie.

Adaptation and standardization of marketing mix
Standardization: It is the strategy where company offers existing product with
same pricing and promotional efforts.
Adaption: It is the type strategy that involves some of the modification in the
existing product.

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The 7P's of Marketing
Product: McDonald's has plan to expand its business in Iceland by using
adaptation strategy. The company is offering Apple Pie for the age group of child
to infinite age. The reason behind offering the Apple pie is that it adds to the taste
of people in Iceland.
Price: In order to capture the market in Iceland, company is planning to adopt
penetration pricing strategy in order to achieve the profitability in the market.

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Promotion: McDonald's make use of social media platform and other several
advertisement measures. This technique will be very beneficial as Iceland is one
of the well developed country.
People: McDonald being expanding its product in Iceland so company is required
to known the culture of people and the taste, preference and also the working
style of people over their.

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Place: McDonald want to expand its business in Iceland which is a well developed
country. Company offers its product by opening the small outlets and also with
the help of online platform.
Process: The manufacturing process can be the same as in US. McDonald can
update their website by adding a new category in the desert section.
Physical evidence: The interior used by the company is same all over the word.
The staffs are well trained. Their restaurant are very hygienic.

CBBE MODEL
McDonald main focus is on building the strong image so that customers have
positive thoughts over the brand.
Brand Salience (Identity) or Who you are
In order to apply salience in McDonald's, it uses market segmentation.

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Brand Imagery ( Meaning)
McDonald is offering Apple pie among the people of Iceland. It is very important for
this business to communicate about the healthy benefits of the product.
Consumer reactions:
McDonald's can make use of social platform in order to communicate about the the
healthy benefits of Apple pie.

Integrated communication mix and method
McDonald can use IMC in order to develop the brand awareness which will help the
company in achieving the maximum profit. The tools used by McDonald's in
promoting the product :
Advertisement: Advertisement can be placed in newspaper, television etc. which
help to influence customers to buy their new food. Advertisements helps in
increasing the sales and develop the brand awareness among the targeted
customers of Iceland.

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Social media: It is the process of promoting the products of company by making
the use of social media apps like Instagram, Facebook, Twitter etc. It helps in
promoting the brand and creating its awareness among the people on large scale.

Measurement of Success:
It helps the McDonald to knowing the area where there is requirement of extra
efforts. The indicators used by McDonald's are as follows:
Profitability: It gives an summary of the profit earned by the company in the
financial year. In order to measure its success McDonald can compare the
estimated profit with the actual profit.