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McDonald's is one of the leading fast food chains of the world. The company has been found in 1940 in United States. The company has stated that as a single firm and is having the single store and has stated selling the hamburger. With time the company has gained a lot of importance in United States and had captured better market as well. With the on-going development of the company and the technological advancement and globalisation McDonald's had focused on expanding themselves to the international market for offering their products and services to the global market. With time the company has entered into the new market and expanding their customer base (Kotler et. al. 2021). The company has entered the different nations successfully and is having customer base at the global level as well. Currently the company is operating in 120 nations across the different continents and is having large number of McDonald's outlets across the world. The successful changes made by the company with time and changes in their products and services for improvement has helped the company in increasing their sales significantly and doing business effectively.
McDonald's focuses on different strategies while doing global and ensuring that the global customers of the firm are satisfied with the company. Effective marketing of the company is one of the important factor which is helping the company in leading the firm towards success and having competitive advantage over other firms operating in the same industry. The company focuses on using the transnational strategy while entering into the market and managing the sales (Raduzzi and Massey, 2019). They just make changes in their products and do effective marketing of their products which helps them in managing the customers in an appropriate manner. It can be said that McDonald's is having better strategies and effective market position the global food industry.
This case study would be discussing about the concept of marketing for the case company which is McDonald's. The firms operating the diverse industries can face issues related to the marketing. This case study would be focusing on explaining that how the firms can focus on applying the different marketing theories and the models for attracting and retaining the customers in an appropriate manner. It is very important for the firms to understand their situation and market position in all the different makers. Along with this the company need to focus on understanding that how the other markers are affecting their customers and what customers think of the company (Chaturvedi, 2008). For understanding the customers in detail STP marketing is one of the best strategy which can help the firm in exporting that how they can manage their customers. 4P's of marketing is also an effective model which can help the firms to work on their marketing issues and addressing them in an appropriate manner.
In this report the researcher would be supporting the issues faced by the case company with the help of STP and the 4P's of marketing. Moreover this case study would help in understanding the concept of international marketing. When the businesses are operating in the global market then the customers belonging to the different nations are having different mind-set and due to this reason it becomes more difficult for the firms to do effective marketing (Jian et. al. 2021). Thus the report would be exploring the different issues which can be faced by the firms while doing international marketing and how these issues can be addressed.
The market is dynamic and with the shifting customer preferences the firms face a lot of issues and challenges in managing the firm in an appropriate manner. As per the report of Financial Times it can be stated that the case company is facing major challenge related to marketing in their major market US, China, India, Europe and many more. The shifting consumer behaviour towards healthy food, food safety and legal disputes. In Indian market McDonald's has faced a lot of issues while entering into India and selling their core product which is the beef burgers. The Hindi community of India which is the major population is against this and just wanted that McDonald's should not continue in India (Financial Times, 2021). Apart from this there are different marketing issues as the other competitors are also offering the similar products range. While operating in India the Beef menu of McDonald's was the major challenge for the company.
Tilwani, et. al. (2020) has stated in their report that McDonald's had made major changes in their product and pricing which has helped them in doing effective marketing. Along with this the company has focused on understanding that all the segments of the markets are not having same eating preferences. Due to this reason it is very important for the firms to work in an appropriate manner.
Sadiasan, (2016) had also stated in their study that McDonald's is struggling with the issue of market segmentation. In 2014 also the sales of the company has declined which was the results of the improper market segmentation as the company was facing issues in understanding the need or the demands of the customers and was unable to meet their demands which is affecting the company negatively. It can be stated that McDonald's is facing the issues related to the lack of understanding related to their customers due to improper implementation of the marketing strategies due to lack of proper segmentation. The case company just need to understand their customers while offering them better products and satisfying the customers otherwise it would affect the company performance negatively.
The Case Study
Issues faced by McDonald’s in India are something which is related to the social entertainment of the nation. In India beef is not at all consumed by the people and the Hindu community is completely against this. In these scenarios it was quite obvious that the company would be facing a lot of issues and challenges related to marketing. McDonald's was not doing market segmentation in an appropriate manner and then not applying the strategies which can help them in satisfying the need of the customers. In this context it can be stated that the firm is not offering better products which can satisfy the need of the customers (Littman, 2019). It can be said that McDonald's is doing better marketing in some of the markets but in some of the market the company need to refine their strategies so that the issues can be solved by the firm in an appropriate manner. The case company is facing issues that they are offering unhealthy meals to their customers and this is having an adverse effects on branding which need to be addressed in an appropriate manner.
Understanding the market and the local preferences is very important for the international firms while entering into the new market and promoting the good and services in an appropriate manner. There are different marketing models and theories which can help the companies in understanding their customers and then offering them the products as per their preferences. STP is one of the effective strategy on which the company focuses for marketing. This strategy is used by McDonald's for dividing the market into different segments and then applying the marketing strategy (Tangkuman et. al. 2020). Along with this McDonald's focuses on demographic market segmentation which helps them in understanding their customers and dividing the entire population with their demographic characteristics. The company is also focusing on ensuring that they must understand the psychological factors of their customers while offering them products. The marketing issues which are being faced by the case company is due to the lack of proper segmentation. As a result of this the company is not able to understand their customers and manage them in an appropriate manner.
As per the four P's of marketing it is very important for the firms to ensure that they are working efficiently towards the marketing. The products offered by the company are having higher influence on the firm. The case company is offering high quality hamburgers, sandwiches, drinks, snacks, fries and many more. The effective product range of the company is great for the company. The special meal of the company is named as " Happy Meal". This is very effective for the company. Place is also an important factor which affects the company. McDonald's focuses on offering the best restaurant with great customer service for satisfying the customers with their services in an appropriate manner. The company is also investing in the promotion of the company (Chandra, 2019). McDonald's focuses on using the advertisement, sales promotion, direct marketing and public relation in an appropriate manner. The company uses different types of marketing for attracting the customers in an appropriate manner through both the online and offline marketing strategies. Pricing strategy is the most effective one which having an influence on the sales of the company. McDonald's always focuses on keeping the prices low and try to offer the meals which are affordable for all the people belonging to different section of the society (Dolnicar et. al. 2018). The bundle pricing strategy is also commonly used by the case company which means that if the meal is ordered in bundle then it would cost less as compared to the one in which the things are being purchased separately.
It can be said that all the four P's of marketing are very important for the firm. McDonald's is focusing on placing the right product at the right place which can help them in generating higher profits for the company which is essential for leading the firm towards success and development. The issues related to marketing in India and other nations needs to be taken in concern with the help of better market segmentation, targeting and positioning. Along with this the company should also focus on the four P's model which can help the company in number of ways (O’Neill, 2020). The issues related to the false marketing and the quality of the food issues needs to be addressed in an appropriate manner.
The company is having segmentation, Targeting and positioning as their core strategy which needs to be managed in an appropriate manner and is an important part of the marketing strategy of the company. From this the case company has understood that for the Indian customers there culture and values are more important. For continuing in India and maintaining the sales in an appropriate manner the company has changed their menu. The company is having the transnational strategy which means that the company tries to make the changes in their standard products as per the local preferences and shifting taste of the customer. This has helped me in number of ways (Gera and Wadhwa, 2011). The company has started the vegetarian range of products and only chicken burgers which has helped them in addressing alot of marketing issues in an appropriate manner.
Price is also an important factor as for this the company has started offering the burger at 25 rupees in India which had made it the cost effective and the firm which is offering the low cost meal options to their customers (Nandini, 2014). With time the issues related to marketing had been solved by the company. It can be said that the different marketing strategies which are undertaken by the company at that time had helped them in number of ways. McDonald's is having the transactional strategy which had helped them in number of ways. It can be stated that the case company had looked into the different areas of improvement related to marketing which can help them in offering better products to the customers and increasing the sales in an appropriate manner.
The solutions on which McDonald's had focused for addressing the marketing challenged had helped them in number of ways. The changes in the products with slide modification had helped them in becoming one of the most loved fast food chains in India. Along with this the company is also experiencing better sales which is helping the company in moving towards success. It can be said that the application of the marketing strategies and the use of the different marketing models has helped the company in getting the successful outcomes and addressing the important issues faced by the firm (Kulkarni and Lassar, 2009). So it can be said that the McDonald's is not having better marketing and sales. Moreover it can be said that the firm is having better sales and maintaining the company performance in an appropriate manner.
It can be said that segmentation is very important for the firms. McDonald's should understand the shifting chances of the customers and should try to make changes in their products and services accordingly (Panwar and Patra, 2017). Along with this the marketing mix which is the four P's of marketing also needs to be developed in an effective manner. With time the situation chances and due to this reason McDonald's should also need to change the marketing strategies with time which would help them in maintaining their market position.
From the case study it would be understood that there are a lot of challenges which can be faced by the firms related to the marketing. With time the company need to make changes in the marketing strategies with the changing business environment. McDonald's is having great market position but then also the firm need to focus on exploring that not all the market are same for the firms. From the case study it has been well understood that it is very essential for the firms to ensure that the companies need to understand their customers and their needs in an appropriate manner. If the company is having better knowledge related to the customer’s choice then it would help them in managing their sales and profitability of the firm in an appropriate manner.
It can be concluded that marketing mix of the company need to be effective and should align well with the market situation then it would help them in an appropriate manner. Along with this the firm should use better marketing strategies in an effective manner. The company should focus on applied the best strategies for attracting and retaining the customers. Also the company should try to ensure that they are offering the best possible products as per the need of the customers. This is important for maintaining better sales and performance.
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Chaturvedi, P., 2008. How McDonald’s evolved its marketing in India.
Dolnicar, S., Grün, B. and Leisch, F., 2018. Market Segmentation. In Market Segmentation Analysis (pp. 3-9). Springer, Singapore.
Financial Times, 2021. McDonald’s and its challenges worldwide: a market-by-market look [Online]. Available through:< https://www.ft.com/content/f8ac22fc-a7c1-11e4-8e78-00144feab7de>.
Gera, N. and Wadhwa, P., 2011. Market entry of McDonalds in Indian market. Mangalmay Journal of Management & Technology, 5(1), pp.64-71.
Jian, O.Z., Utama, A.G.S., Musa, W.N.A.B.W., Hasly, W.B., Al-Rifae, R.F.B., Hussa, N.S.A.B.M. and Andriawan, N., 2021. Effective Marketing Strategies of McDonald’s in Malaysia and Indonesia. International Journal of Applied Business and International Management (IJABIM), 6(2), pp.33-46.
Kotler, P., Kartajaya, H. and Setiawan, I., 2021. Marketing 5.0: Technology for humanity. John Wiley & Sons.
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Littman, J., 2019. 4 challenges McDonald's new CEO must overcome [Online]. Available through:< https://www.restaurantdive.com/news/4-challenges-mcdonalds-new-ceo-must-overcome/567117/>.
Nandini, A.S., 2014. McDonald's Success Story in India. Journal of Contemporary Research in Management, 9(3).
O’Neill, B., 2020. Segmenting the city: McDonald’s, the Metro, and the mobilization of the middle classes underground. Environment and Planning A: Economy and Space, 52(7), pp.1313-1331.
Panwar, D. and Patra, S., 2017. Localization in Fast Food industry: A case study on McDonald’s strategy in India. Journal of Arts, Science & Commerce, 8(1), pp.70-74.
Raduzzi, A. and Massey, J.E., 2019. Customers satisfaction and brand loyalty at McDonalds Maroc. African Journal of Marketing Management, 11(3), pp.21-34.
Sadissan, 2016. McDonalds to Face Challenges [Online]. Available through: https://mpk732t22016clusterb.wordpress.com/2016/07/21/mcdonalds-to-face-challenges/>.
Tangkuman, M.J., Massie, J.D. and Mangantar, M.M., 2020. The Effect of Experiential Marketing And Customer Satisfaction on Customer Loyalty at Mcdonald’s Manado. Jurnal EMBA: Jurnal Riset Ekonomi, Manajemen, Bisnis dan Akuntansi, 8(4).
Tilwani, S., Patel, V., Singh, S., and Goyal, N., 2020. “A STUDY OF THE CHALLANGES FACED BY MCDONALD’S WHILE ENTERING THE MARKET OF INDIA” [Online]. Available through: https://ijcrt.org/papers/IJCRT2004094.pdf>.
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