MKM26 - Developing McDonald's Marketing Strategy in France

This presentation provides an analysis of McDonald’s international marketing strategy in France. It begins with an internal audit of McDonald's position in the USA, followed by an external audit using PESTEL analysis to assess the political, technological, environmental, and legal factors impacting McDonald's in France. The presentation then examines the marketing conditions and competitive landscape, including key competitors like Burger King, and conducts a SWOT analysis to identify McDonald's strengths, weaknesses, opportunities, and threats. The marketing plan objectives focus on finance and promotion, including cost reduction and customer loyalty programs. The presentation suggests an exporting entry mode strategy and concludes by emphasizing the importance of internal and external analysis for business growth. This document is available on Desklib, a platform offering a wide range of study resources, including past papers and solved assignments, to support students.

McDonald’s International
Marketing in France

Table of content
Introduction
• Internal audit
• External audit
• The marketing condition
• Competitors analysis
• SWOT analysis
• Marketing plan objectives in target market
• Entry mode strategy
• Conclusion
• References

Introduction
• International marketing is the way of targeting other countries to
expand the business. There are various types of international growth
which can be adopted by a company after analysis their pros and corns
appropriately. 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

Internal Audit
It is essential to analyse a business internally that what position they are
occupying in their home country and how they are operating there. In context of
McDonald's, they are quite more popular in USA because it has many restaurants.
It has approx. 13,600 McDonald's restaurants in US. Customers are preferring
more to the products of McDonald's as compared to other companies products
because they use fresh vegetables and non-veg items to make their burgers. Their
main aim is to provide best services to their customers. They are gaining strength
from their brand name because they are quite more popular and famous in their
home country.

External Audit
• PESTEL analysis is used for analysing external environment. PESTEL
analysis of France for development of McDonald's in France are explained
below-
• Political factors- France is having political stability which is helping many
companies to establish their business in France. They are not having any
restrictions for their foreign investment which means they support outer
companies to have their business in France but the only condition is they have
to follow the rules and regulation of France.

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• Technological factor- France is well known for their advance technology. McDonald's
get benefited with this factor because they can adopt advanced and modern machines
for preparing and restoring their food and beverages items to keep them fresh.
• Environmental factor- France is having one of the best environmental conditions in
the world. Their 30% land is covered with forests and natural heritages. Hence, hey are
free from air pollution, water pollution and many other hazardous effects on human
life.
• Legal factors- France is the country which is promoting their French language and
their employment law is also mentioning that they must have all business documents in
French language

The marketing condition
Market is the physical place where customers and sellers meet
each other to exchange goods. Customers in France for
McDonald's are preferring their products more because of their
vast variety and quick services to offer the ordered products. It
is current trend in France that quick services are gaining more
attention of customers. Their are less people who prefer online
shopping due to which McDonald's are having more restaurants
in France and focus to provide good services to those customers
who directly walk in the restaurants. French people are
becoming health concision recently and they focused to have
healthy food and beverages to eat.

Competitors analysis
• The main competitors of McDonald's are Burger King, Starbucks, subway and
many more. Customers are also preferring to use the offered products of these
companies. They are having large number of customers in France. The main
strength of Burger King is that it provide vast variety of burgers in discounted
prices on occasional days of France. Their promotional activities are also very
effective to attract more customers. Their weakness is that they are not delivering
their products in a better way. Burger king prepare foods in a better way but it is
delivered in damaged condition. The burgers or beverages which is delivered to
customers are having different looks and size which is shown in online apps

SWOT analysis
Strength- McDonald's are having strong brand image in France which help them
to gain more customers.
Weakness- Their breakfast menu has lost the charm. Their products are not good
for breakfast meals.
Opportunities- Having partnership with other popular companies is a good
opportunity for growth in those countries where they are less popular.
Threats- Their competitors like Burger King and many others are having tough
strategies and competitive strategies in market.

Marketing plan objective in target
market
Finance objective- Their main objective is to cut down the cost by eliminating
unproductive activities from their company. Secondly they also aims to increase
sales by providing offers like discounts and coupons to attract more customers to
buy their products.
Marketing objectives- Their main objective is to promote their product in French
language because the people in France are feeling better to communicate in their
own language rather than English. They can also plan to offer a loyalty card to
their loyal customers for gaining lifetime discounts and gifts from the company.
This will help to satisfy loyal customers as well as to attract other customers to
show their loyalty toward McDonald's.

Entry mode strategy
It is suggested that McDonald's should adopt exporting mode to enter the new
market because it is the method which consist of selling products to other country
from home country which is USA. This strategy will help them to reduce the cost
of establishment of whole business in new country. McDonald's can sell their
burgers from USA to France but the only condition they need to focus is having
proper transportation system to prevent their eatables items from getting spoiled.

CONCLUSION
• It is concluded that internal and external analysis of company
and environment is essential for business to develop growth
plans. PESTEL analysis is used to analyse external environment.
Competitive analysis and making new finance and marketing
objectives which will clear the idea that how to increase sales
and how to target loyal customers