MKM26: Analysis of McDonald’s Marketing Strategy in France

This report provides a comprehensive analysis of McDonald’s international marketing strategy in France. It includes an internal audit of the company, an external audit using PESTEL analysis, a competitive analysis, and a SWOT analysis. The report also covers the STP (Segmentation, Targeting, and Positioning) strategy for France and suggests an entry mode strategy, recommending exporting as a low-risk approach. Furthermore, it delves into the marketing mix (Product, Place, Price, Promotion) to assess McDonald's approach in the French market, considering factors like customer behavior, market trends, and competitive pressures from Burger King and Wimpy. The report concludes with recommendations for further developing McDonald’s marketing strategy in France, emphasizing the importance of adapting to local preferences and health trends.

McDonald’s
International Marketing
in France

Executive Summary
The basic objective of every company is to grow internationally by applying appreciate growth
strategies. It is essential to analyse external and internal environment of a business to recognise
all opportunities and threats for fast growth. The following report covers all those strategies
which will taken by McDonald’s to expand their business in France. Here, they can adopt
exporting method of entering new market because it is consist of low risk as it requires to sell
products from home country to other countries. Analysing current marketing trends and customer
behaviour toward their products will helps to McDonald’s to analyse whether their existing
existing products will get popular in France or not.

Table of Contents
Executive Summary.........................................................................................................................2
Introduction......................................................................................................................................4
Main Body.......................................................................................................................................4
Internal Audit..............................................................................................................................4
External Audit.............................................................................................................................4
Competitive analysis...................................................................................................................7
SWOT analysis............................................................................................................................7
STP for France............................................................................................................................7
Entry mode strategy....................................................................................................................8
Conclusion.......................................................................................................................................9
REFERNCES:................................................................................................................................10
Books and Journals:..................................................................................................................10

Introduction
It is the aim of all companies to grow well at international level and expand the business
of their company in most of the countries as much as possible. It is essential to analyse present
business environment. SWOT analysis is used for internal environment which helps to analyse
the conditions of available resources. PESTEL analysis is used to analyse external environment
conditions that how they impacts on a specific business. For potential growth it is essential that
companies will develop a proper plan for their growth strategy (Sheth, 2020). McDonald's is an
American fast food company which is founded by Richard McDonald and Maurice McDonald in
the year 1955. It is headquartered in Chicago, US. The following file covers internal audit,
external audit, marketing conditions, competitive analysis STP model and marketing mix of
McDonald's. The following models and concepts are covering so that it will analyse the ways
and strategies for McDonald's to expand their business in France.
Main Body
Internal Audit
Analysis of the company and product-
McDonald's is serving in food and beverages industry since 1955. it is founded by
Richard and Maurice McDonald. Recently they started their business to sell hamburger and later
on their started their franchise which their specific logo which has the sign of “M” in yellowish
colour. It is world's largest chain of restaurants in terns of earning revenue. Now they are serving
in various varieties of burgers like veg burger, non-veg burger and many more. They also have
large variety of beverages for their customers. Recently their customers are more attractive
toward their cheese chilly French fries. Their customers prefer their food and beverages because
of their quality. They provide best quality of fresh food items to their customers.
External Audit
PESTEL analysis-
Political factor- France is a developed country which is having stable political
environment. There are no wars, conflicts and strikes within this country. Due to this many
companies are growing well with proper discipline in such polite and peaceful political
environment (Katsikeas, Leonidou and Zeriti, 2019). They also decline the corporate taxes to
promote business in their country and their government has no restrictions for foreign

investment. McDonald's is getting benefited with free and restriction free environment to
perform their business tasks.
Economical factor- They are developed country hence, their growth rate and GDP rate is
quite well as compared many other countries. Good infrastructure help the companies to have
good growth. Recently poverty rate is increasing in France and it reached to 10.3% from 8%.
High poverty rate of France will impact badly upon McDonald's because high poverty rate will
decline the purchasing power of population and due to low purchasing power they are not
supposed to use McDonald's products.
Social factors- There are different religions like Roman Catholic, Muslims and many
more. This will impact on business to accept norms and values related to majority religion in the
particular area of France. France is famous for wines and cheese which will help to grow food
and beverages company well because their population show's great passion for food. Due to their
high passion for food and beverages products McDonald's have benefits to serve wines and
burgers in those varieties which is liked by their population.
Technological factor- France is well known for their advanced and modern technology
because they are more focused on providing good education in engineering field to their
population. They invest a good amount of budget in their research and development sector so
that they will analyse new technological development opportunities for their country and adopt
them (Samiee and Chirapanda, 2019). McDonald's have benefit to use advanced and modern
technological machines to prepare their foods and beverages. They can also order a high
technological refrigerator for keeping their beverages fresh for longer period of time and a
packaging machine which will pack food items in such a way that it will not damaged in
delivering the food from one place to another.
Environmental factor- France is having 30.3% land covered with forests which makes it
better place to live freely from air pollution and water pollution. Due to their pollution free
environment most of the tourist arrive in France. Hence, their tourism rate is also good which is
effective for companies to grow.
Legal environment- They are having strict laws for their corporate world which help
them to create a disciplinary environment within their country. It is essential that job application
will be written in French language according to the act of their employment law. McDonald's get
benefit from such laws to work in full disciplinary environment.

Marketing analysis-
Market- It is the place where buyers and sellers meet to exchange their required items.
Sellers are the person who sell particular items in market and buyer are customers of companies
who buy the offered products (Hult and et. al., 2018).
Market size- It is the overall number of targeted customers to whom a company sells
their products. According to statistical data McDonald's serve approx. 46 Million people every
weak in France. Their are approx. 1500 McDonald's store in France.
Market/sales trends- In current scenario, online shopping is preferred less in France.
There are only 52% of population which is preferring online shopping. They did not prefer to
purchase food items online. Hence, they are more interested to walk in directly in restaurants and
enjoy their meal.
Current marketing trends in food and beverages industry in France- Recently food
and beverages companies are focusing to serve healthy food items to their customers because
their customers are more focused to their health and demands tasty and healthy food.
McDonald's prepare their burgers with fresh vegetables (Rana and et. al., 2020). Secondly, in
France more customers are preferring having their meal outside their home and in hurry basis.
Hence, McDonald's are required to serve fast delivery services to their customers. France market
demands for certification of companies that their foods are safe for customers and labelling has
become necessary. McDonald's provide certification proof to their customers that they are
serving hygienic food to their customers and focuses on providing labelling on their food items
that which item is made up of which ingredients.
Customer behaviour and characteristics- Population of France is recently becoming
health conscious and focuses more on their health. Hence, they prefer to have those food items
which is made with natural ingredients. They are valuing their money and prefer to try those
restaurants services which will provide best food items in lower prices as much as possible.
Hence, in case they are ready to pay more on McDonald's burgers then they expect to have high
quality of burgers. Secondly, they are expecting that their chosen restaurant will provide them
fast services like they wants to see foods on their table just after few minutes of ordering (Agwu
and Onwuegbuzie, 2018).

Competitive analysis
McDonald's main competitors in France are Burger King and Wimpy which are
providing good qualities of burgers to their customers to increase their market size. Burger king
is developing their business in a strong way by having good marketing shares. Strength of Burger
King is that it provide burgers which are made up of fresh vegetables. The softness and
smoothness in their food items help them to gain more customers. Whereas they are having
taking much time to gain trust France people because of their failure in France in middle of
1990s due to bad quality.
SWOT analysis
Strengths-
 Their fresh and large variety of burgers
helps to attract more customers.
Weaknesses-
 Their breakfast menu list is not as
effective as compared to the demand of
customers.
Opportunities-
 They are having their business in
selective countries. Hence, they can
expand their business to target few
more countries and adopting new and
effective marketing strategies.
Threats-
 Tough competition with Burger Kind
and Burger Farm is their biggest threat.
Secondly they are getting pressure to
develop their waste management which
is impacting upon their brand image.
STP for France
Segmentation- It is the process of dividing markets into groups of different
characteristics of customers (Rezaee, 2017). McDonald’s can segment the market of France
according following division-
Age- 14-34, 34-54, 54 and above.
Gender- male and female.
Income- high standard and middle standard customers.
Occupation- students, professional, housewives, retirees.
Geographical- Paris, Nice and etc.
Behavioural- loyal

Targeting- It is the process of choosing one or more segmented group from vast variety
of alternatives. McDonald’s mainly target 14-34 and 34-54 year customer with both genders.
They mainly target high income customers because their burgers are high in prices. They also
cover students and professionals as their targeted customers who are loyal in nature. They mainly
focus to serve their products and services in Paris because it’s highly populated area.
Positioning- It is the process of developing good brand image in the market by spreading
awareness about the brand at marketplace (Faryabi and et. al., 2019). In context to McDonald’s
in France, they mainly advertise their brand in French language because French customers are
more preferring their mother tongue. They also use social media marketing for developing
awareness among customers because most of the customer of McDonald company are highly
active on social media.
Entry mode strategy
Entry strategies are those strategies which are adopted by company to target new market
customers. According to McDonald’s company, they can adopt exporting method to enter in
France market. Exporting methods consist to sell the products to outer country from home
country (Paul, 2019). McDonald’s can sell their burgers and beverages from their home country
to France. It is effective methods to use because it consist low risk as compared to other entry
methods because it does not consist of establishment cost like purchasing building at new area,
hiring employees and many others. It is also consist fast delivering method of goods and
services.
Marketing mix....HD2
Product- McDonald’s sell burgers and beverages to their targeted customers. Their main
products are hamburgers, sandwiches, deserts, snacks, chicken and many more. They pack their
products in such a way that it will deliver to their end customers without getting any damage.
McDonald’s adopt their menu according to their served area. Country where non- veg is
preferred more then they serve more varieties of non-veg burgers and the country where
population prefer more vegetarian items then there they prefer to have more Veg- burgers.
Place- This segment describes distribution channels of a company. In context of
McDonald, they are having their restaurants for direct walk in and get their services. They also
deliver their foods through online mode by having their own Mobile application by which
customers will order and get their items within few minutes at home.

Price- It is monetary value of products served by McDonald’s to their customers.
McDonald’s use bundle pricing strategy where they offer a bundle of their products like soft
drinks and French fries with hamburger in a discounted price as compared to purchasing them
separately. This will help to attract more customers and also enhance their overall sale.
Promotion- It is the element which consist of adopting those strategies and activities
which are used to create more awareness to customers (Leonidou and Hultman, 2019).
McDonald’s main promotional activity is advertising on TV, newspapers, hoardings and etc.
They are supposed to adopt this strategy because it will help to attract more customers attention.
Secondly, their discounts, coupons and offers help them to maintain their loyal customers and
attract new customers. Their involvement in CSR activities by contributing a small amount of
profit as charity.
Conclusion
It is concluded that international growth is the aim of every company but it will only
work when internal as well as external environment of business are determined properly.
Analysing current marketing trends of country where company plans to start their business will
leads to success. It is essential to analyse competitive conditions, targeted customers behaviour,
political factors of country and many more before expanding business to another country.
Exporting method of market entry strategy are beneficial for McDonald’s because it will help to
save cost by not establishing whole business in other country. It requires to sell products from
home country to other countries. It is recommended for McDonald’s to invest more for their
research and development department so that they will gain appreciate information about other
countries that McDonald’s will gain success in specific country or not.

REFERNCES:
Books and Journals:
Agwu, M.E. and Onwuegbuzie, H.N., 2018. Effects of international marketing environments on
entrepreneurship development. Journal of Innovation and Entrepreneurship. 7(1). pp.1-
14.
Faryabi, M. and et. al., 2019. Effect of market orientation and international experience on export
performance with the mediating role of international marketing strategy. Journal of
International Business Administration. 2(1). pp.23-44.
Hult, G.T.M. and et. al., 2018. Addressing endogeneity in international marketing applications
of partial least squares structural equation modeling. Journal of International
Marketing. 26(3). pp.1-21.
Katsikeas, C., Leonidou, L. and Zeriti, A., 2019. Revisiting international marketing strategy in a
digital era: Opportunities, challenges, and research directions. International Marketing
Review.
Leonidou, C.N. and Hultman, M., 2019. Global marketing in business-to-business contexts:
Challenges, developments, and opportunities.
Paul, J., 2019. Marketing in emerging markets: a review, theoretical synthesis and
extension. International Journal of Emerging Markets.
Rana, S. and et. al., 2020. Determinants of international marketing strategy for emerging market
multinationals. International Journal of Emerging Markets.
Rezaee, R., 2017. The impact of international marketing strategies on export
performance. Journal of Business Administration Researches. 9(17). pp.55-80.
Samiee, S. and Chirapanda, S., 2019. International marketing strategy in emerging-market
exporting firms. Journal of International Marketing. 27(1). pp.20-37.
Sheth, J.N., 2020. Borderless media: Rethinking international marketing. Journal of
International Marketing. 28(1). pp.3-12.