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COLLEGE DEPARTMENT
Learning Module
in

Strategic Marketing
Management
Student
Development

Community Curriculum
Extension and Instruction

Research and
External
Linkages

Innovations Faculty
Development

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Learning Activities:
Market are now flooded with product, thus in our everyday lives, we are provided by products
that answer to our needs making life easy and comfortable.

Find or look for a product that was launch and manage by the company but fails to penetrate the
market? What could be the reason for failure?

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 A Case Study of McDonald’s Failed Rice Dishes in Taiwan

"The new McRice Burger is a delectably innovative approach to rice, a food

item that is indispensable in any Filipino meal," Yang observes. "McDonald’s
just made rice easier and more practical to eat without compromising flavor.
This is great for people who want a convenient and portable rice meal.

” The rice burger; was and continues not only to sell well, but also is an excellent example of a
successful product-localization strategy. So, what is wrong with McDonald’s rice dishes?

Analysis

 Product Localization Strategies

Product localization is a global trend, McDonald joined this trend and bravely introduced
rice dishes to its Taiwanese customers. It was logical to incorporate rice into its products
given the indispensable role rice plays in Taiwanese food culture.

 Brand Recognition
When people think about McDonald's, they think about traditional
American fast food: hamburgers, french fries, chicken sandwiches, etc. 
McDonald's fast food is also easy to enjoy.
As a result, it was extremely difficult for consumers to relate rice dishes to traditional
American quick food, dining style, and McDonald's brand image.

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  Pricing
Price was also a crucial factor. The rice dishes sold at McDonald’s were on the higher
end – around 3 U.S. dollars per dish, whereas a rice dish from a food stand could be as
cheap as 1 U.S. dollar. If there are cheaper options that offer the same or even better
quality food, why would anyone want to eat rice at McDonald’s?

CONCLUSION

Each product has a brand; and every brand has a core value. This core value is
shaped by the customers a company attracts. This core value should be unique,
different from other products. Once a company understands its core value, it helps
the company to create an impressive brand. McDonald’s brand was clear before the
rice dishes were introduced: an American style fast food restaurant. When people
go to McDonald’s, they expect to enjoy all sorts of high-calorie, greasy, yet so
delicious American fast food. This type of food is exactly what people want from
McDonald’s. The connection between the food it serves and McDonald’s brand is
strong.

When McDonald’s started to sell rice dishes, the dishes confused everyone – it was
neither American nor fast food. Customers were lost. McDonald’s brand image
was no longer clear to them; and in fact likely diluted by the addition of rice on its
menu. While it is tempting to offer it all; and attempt to localized your products to
traditional Taiwanese tastes, once a company has decided on its brand image, it is
crucial to continue developing that particular brand and nurturing the relationship
with its customers accordingly. It is extremely risky to derail from its brand image
and develop something completely different. It will not only confuse a prospective
customer and but also may destroy existing customers brand loyalty.

When localizing a product, companies must make sure their new products
consistently resonate with their original brand. It is true that some localization will
make the product more acceptable for a local culture. McDonald’s introduction of
rice dishes was a great effort to localize its products to adapt to Taiwanese food
culture; but because the company only focused on localization, without considering
what the company’s core value, the result was a failed product. McDonald’s failure
provides a valuable lesson: when a localized product is disconnected from the
company’s own brand and core value, the customers will be lost, the company is
likely to suffer, and the product is all likelihood will fail.

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