Mcdonald's Case Study

MKTG 414-01 (International Marketing)

Case 1-2: McDonald’s

September 10th, 2013

1. Identify the key elements in McDonald’s global marketing strategy. In particular, how does McDonald’s approach the issue of standardization?

McDonald’s is known for being the top or one of the top fast food service restaurants in the world. They built their reputation by delivering inexpensive food with consistent taste regardless of location, quick service, and a clean culturally comfortable environment. The only problem is, McDonalds was losing touch with modern American lifestyles and therefore, being overtaken for the top spot in the restaurant chain to Subway. Subway and other companies such as Panera, Cosi, and more, are attracting customers due to higher quality menu items and a more comfortable feel. As stated by Ken Koziol (Vice president of worldwide restaurant innovation) “McDonald’s was built on a strong foundation of a core menu that we took around the world but need to make sure we are more locally relevant. Taste profiles and desires are changing.” Therefore, McDonald’s established key elements in their global marketing strategy.

First, McDonald’s took advantage of lifestyles changing around the world and stepped up its rate of new unit openings throughout Europe, Asia/Pacific, Middle East, Africa and other countries. They had expanded by 31,377 restaurants by 2007 growing by about 100 restaurants in each region they were located.

McDonald’s also had identified many specific locations where heavy pedestrian traffic was flowing such as; the shopping streets of Bandra in the Bombay suburbs and the Adheri train stations. In both places, people tend to be in more of a rush to not miss their train and get to their location as fast as possible, so fast food made it easily accessible to beat the time. This brought in more of a customer base, drove profits up, and created a huge brand image.

In order for McDonald’s to compete in other countries, they...