McDonald's Success: Global Expansion, Marketing & Brand Loyalty

This case study examines McDonald's global marketing strategy, focusing on its expansion into India and other international markets. It highlights the challenges of adapting to local cultures, managing political and economic factors, and maintaining brand loyalty. The analysis covers macro environment considerations, economic and political factors, cultural nuances, product and pricing strategies, distribution methods, and marketing approaches. It also includes a competitive analysis, SWOT analysis, and alternative strategic marketing solutions such as improving service quality, hiring local talent, and enhancing product promotion. The study recommends a marketing strategy centered on product promotion, product diversification, consistent pricing, online distribution, and customer communication, along with CSR activities and continuous monitoring of economic and political issues. The provided solution references several academic sources, including Armstrong, Kotler, and Keegan, to support its analysis and recommendations. Desklib provides access to similar case studies and solved assignments.

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