International Marketing: A Case Study of McDonald's Strategies

This report examines the international marketing strategies of McDonald's, focusing on the impact of cultural, economic, and political environments on its global operations. The report analyzes how McDonald's adapts its marketing mix, including product, place, price, promotion, people, process, and physical evidence (7Ps), to suit diverse international markets. It highlights the importance of understanding cultural nuances, economic factors, and legal frameworks for successful international marketing. The report explores McDonald's approach to standardization and localization, showcasing how the company balances global brand consistency with local preferences. It also discusses how McDonald's adjusts its product offerings, pricing strategies, and promotional campaigns to cater to different consumer segments and comply with local regulations. The report concludes by offering insights into McDonald's global expansion and future prospects, emphasizing the significance of continuous adaptation and innovation in the competitive international market.

Introduction
The amount of international commerce has grown substantially during the previous four
decades, owing to technical improvements and fast economic expansion. Exports of
merchandise, for example, rose to nearly 16,000 billion US dollars in 2008, from $160 billion in
1963. Motivated by numerous worldwide exchange incentives and prizes, more and more nations
and organizations are participating in international marketing in particular. However, the
consequences of this "planning and carrying out national transactions" procedure are somewhat
different from those firms that normally confront domestic marketing. Cultural differences,
economies and political institutions between nations imply that a new series of environmental
conditions impact the marketing efforts of firms operating outside national borders. To be
successful in international marketing, marketers must grasp these variables well and take them
into consideration when taking choices on marketing operations, because they affect the
worldwide business climate. The objective of this article, therefore, is to highlight both these key
environmental elements and their impact on the decision-making of international marketers. First
of all, the essay will address cultural variables including language and religion. Secondly, it is
analysed the economic factors influencing the worldwide business climate. Lastly, the article
takes legal and political considerations into account. Finally, the marketing mix utilized by
McDonald's for the international promotion of its product is being addressed.
Cultural Environment
Culture is "the communal programming of the mind, which separates people from
others", according to Hofstede. Since culture influences customer behaviour, it is important to
understand cultural disparities for international marketing to succeed.
Researcher argues that cultures with a high level of context, such as Japanese, have an
equally essential context as words and cultures with a low context, such as North American
cultures, where communication is typically transmitted just in words. Companies must be aware
of these variations and adjust their marketing strategies, otherwise it may easily lead to
misinterpretations in communication. The linguistic component comprising a verbal and a
nonverbal portion must be taken into account. The issue is that they are able to comprehend both
the technicalities and the context in which the language is employed well.
Religion is another major cultural source. Marketers must be conscious of variances and
variations across the various forms of religion. In Hinduism, for example, their position
determines the capacity of individuals to consume. This must be taken into account by
companies when developing their marketing approach. Furthermore, because the big holidays are
related with religious marketers while preparing marketing programmes. For example, the
exchanging of Christmas presents takes place in the Netherlands on 6 December but they open
on 24 or 25 December in other nations.
Economic Environment

In the context of marketing decisions, international marketers should also be cognizant of
economic issues. The population numbers show the market's appeal in sizes and prospective
growth with regard to life expectancy, age distribution and population growth as a fundamental
indication. They enable vendors to determine the segments and locations they need to target. For
example, low population growth rates generally characterize highly economically developed,
disposable countries.
The income levels must also be considered since they indicate the purchasing power of
the market and enable businesses to adjust their marketing strategies accordingly. For example,
in nations that have lower incomes by employing cheaper raw materials, the packaged products
firm has produced a more economic model of its product. Marketers should nonetheless not rely
much on this indication, as some types of products do not suffer from income levels due to the
high value they generate for the buyer. For instance, In China, the sales of motorcycles in China
are large, owing to their good bike upgrades and a cheap alternative for automobiles, even if the
price of the product is high.
Political and Legal Environment
Also essential in the marketing operations of foreign firms is the political and legal
environment of the company's own country and host country, as well as the wider international
environment. The company's domestic politics and legislation might define its possibility abroad.
One of the primary forms of regulation that marketing professionals must know is blockades and
fines that impede free commerce flow. They need to know where they apply and consider them
when planning marketing so that they do not infringe on them and therefore risk fines.
Authorities also use monitoring systems for exports and imports.
Exporting checks restrict or postpone the sale of firms in particular nations, whereas
import checks are designed to safeguard and boost domestic markets. Marketers must take them
into consideration so that they know where they may conduct business and where they can get
their supply. Finally, governments might take specific measures to guarantee that their firms act
in the right way in the world of business. Boycott is one of the key areas involved, when firms
refuse to deal with someone.
The Marketing Mix
The notion of 4Ps (product, pricing, promotion and marketing mix) was established by
McCarthy (1975). These have been the main foundation for a marketing plan for many years. In
recent years, however, theorists have found new elements that may be added to 4Ps, with special
emphasis to the marketing of services. The following variables were recognized as an essential
element of the marketing mix by Fifield and Gilligan (1996) – process, physical and individual.
These 7Ps are used to analyse McDonald's marketing mix:
 Product – Characteristics, quality, quantity.
 Place – Site, number of outlets.
 Price – Approach, factors, levels.

 Promotion – Advertising, promotion of sales, relationships with the public.
 Peoples – Number, quality, education.
 Process – Blueprinting, automation, process management.
 Physical – Clean, decorative, service atmosphere.
Product
One of McDonald's objectives is to produce a standardized collection of products, which
will taste the same in Singapore, Spain and South Africa. McDonalds discovered that while
significant cost savings are being made by standardization, it assures success when adapting to
an environment. McDonald's therefore obviously accepted the notion of "think global, act local".
For numerous reasons, adjustment is necessary, including customer preferences and
customs legislation. McDonald's modified the product according to religious laws and customs in
a nation in certain instances. Big Macs are, for example, offered without cheese in several shops
in Israel, following early complaints, therefore allowing the separation of meat and dairy items
needed by Kosher establishments. Restaurants at McDonald's in India provide McNuggets and a
Maharaja Mac based on the mutton (Big Mac). In a country where Hindus eat no beef, where
Muslims eat no pork and where Jain's (among others) consume no meat of any kind, such
innovations are required. The business was awarded the Halal ("'clean"' certificate of
"acceptable"') for the entire absence of pig products, which included rigorous inspections by
Muslim clerics in the provinces of Malaysia and Singapore to verify ritual cleanness.
Place
McDonald's now has over 24,500 outlets worldwide in 116 countries. McDonald's
continues to focus on the management of capital spending through conservative and strategic
growth more efficiently. In 1998 the firm added 1,666 system-wide restaurants in comparison
with 2,110 in 1997 and 2,642 in 1996 (whether managed by a corporation, the franchisee or joint
venture). In 1999 McDonald's plans to add over 1,750 outlets, mostly outside the USA, with
continuous focus on conventional restaurants. McDonald's is seeing development possibilities in
overseas countries, and aims to take use of the lessons gained in the United States. For instance,
each year, in the USA, they added 300-400 restaurants, whatever the situation. It was a technique
that established a distance between the two. But they realize that during a period when
competition was not such a big one, they might have opened even more eateries. That would
have meant that McDonald's might have become several of these "other" restorations. You have
learnt this from your fast-growing world firm, particularly in markets where competition is not
so fierce.
Price
McDonald's has realized that although standardization provides cost savings, success
frequently may be attributable to a certain setting. This is true of their implementation of their
price plan, which is not globalization, but localization. More significantly, McDonald's had to
choose the correct price for the right market rather than merely a different price strategy for the

Big Mac in these mentioned nations. The big Mac's highest comparative pricing is our own, the
United Kingdom, but why? How does McDonald's decide on prices?
Pricing decisions
In each nation the price for that particular market is determined by a thorough pricing
procedure. The method is detailed below as explained by the scientist:
1. Choice of price target;
2. Demand determination;
3. Cost estimation;
4. Costs analysis, prices and offers of rivals;
5. Choice of a pricing approach; and
6. Choosing a final price.
Promotion
Kotler (1994) considered promotion, or the marketing communications mix, to consist of
five main instruments:
 Advertising;
 Direct marketing;
 Sales promotion;
 Public relations and publicity; and
 Personal selling.
McDonald's uses these techniques to identify its marketing communication plan since it
must take into account the huge diversity of cultural and other differences it would confront in
every country. It is impossible to overlook the different local marketplaces and the variables in
their performance. It must also analyse the attitudes of customers towards their products, patterns
of use and ethnic, moral and religious issues in that context. Although the concept is that
McDonald's should be promoted as an international image, McDonald's focuses on the
requirements of its communities. The phrase "Brand Worldwide Advertises Locally" in a
communications setting the McDonald promoting approach is to better comprehend this, we
need to study further the essential parts of the McDonald's promotional mix.
People
A mixture of US human resources and host nation standards. Every eight hours a new
McDonald's opens throughout the world. Two thirds of the company's 1,200 to 1,500 new
locations are found outside the United States every year. The company employs over a million
people, and in the next several years, the amount is expected to quadruple. The human resources
department has a list of questions to answer before visiting a nation for the first time. Including:
 What are the labor laws?

 Would McDonald’s be able to establish part-time and flexible work schedules?
 Is there a maximum number of hours an employee can work?
McDonald's ultimately adjusts to each particular scenario; thus it may be described as
"glocal." The firm is dedicated to local staffing and domestic support. So McDonald's has
supervisors who understand company culture and the local culture. In hiring the applicants,
emphasis is placed on being customer-driven; the appropriate attitude is regarded above technical
skill. The firm thinks that satisfying all clients at all times is the greatest way of standing out
from the crowd.
Process
In more than 100 countries there are 25,000 McDonald's outlets. Everywhere the process
for preparing the meal is the same. This is a symbol of globalisation; the standards of McDonald
must be complied with everywhere. One in two fries, for example, has to weight 75 mm, while
Big Mac weighs 45 g and 20% fat and buns have a diameter of 9,5-9,8 cm and a height of 6 cm.
Suppliers must satisfy all requirements and requirements of McDonald's; McDonald's vertically
integrates if they cannot accomplish it. In Russia, for example, the meat available did not satisfy
the criteria and therefore established its own restaurant supply. The culinary process in
restaurants is same worldwide; the cuisine in each restaurant is identical. Local adjustment is
again obvious since different foreign McDonald's have distinct menus; new food preparation
procedures are thus employed.
Physicals
Concentration on constant service, cleanliness and quality delivery in our restaurants by
excellence. This is the statement from McDonald in all franchises worldwide. The client knows
that:
“whatever McDonald’s they enter; the message of a family environment will still be conveyed. It
just depends on where you are in the world as to how that message is broadcast”
This advertising WIXWAP demonstrates the global cleanliness and service requirements
McDonald's attempts to uphold. The service component is that variable which is tailored for
local communities such as China, which includes posters and slogans emphasizing familial
values in the interior walls of local eateries.
Conclusion
Worldwide marketers confront a large number of issues that might have a dramatic
impact on their marketing operations in the international business environment. You have to be
conscious of the primary sources of culture such as religion, language, education, values and
behaviours, aesthetics, conventions and ways. Since they are ingrained in organizations and
people, firms must adjust their marketing operations to the market and not push a different
customer viewpoint. International markets must also take economic variables such as population,

income, inflation, economic integration and infrastructure into consideration. They may evaluate
the attractiveness of the market and determine the categories and geographical regions to be
targeted.
This lowers the danger of investing money in unproductive marketing initiatives. Lastly,
the legal and political issues that impact the home country, the host country and global business
environments must be taken into account by firms. They need to be informed and continuously
remain up-to-date with economic issues across the world of different governments, their political
acts, their stability and their relationship with others. This enables them to evaluate the amount
of political risk in order to foresee and plan risks and to seize political opportunities.
By analysing McDonald's marketing mix, it is evident that the firm is "glocal",' that is,
integrating globalization and internationalization components. McDonald's have done this by
using all parts of the marketing mix as a maxim "think global, act local" McDonald's have
achieved so much glocalisation that they think that this technique continues to spread in those
foreign marketplaces. The Boston Consultancy Croup Matrix can best be used to describe that. It
is also concluded that they are a cash cow in the U.S. and have less growth in the market than in
the worldwide market, their own home market. They are positioned globally as a star brand and
may thus achieve better growth and profitability on the market.