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4-Ps in McDonalds Product One of the aims of McDonalds is to create a standardized set of items that taste the same

whether in Singapore, Spain or South Africa. McDonalds learned that, although there are substantial cost savings through standardization, being able to adapt to an environment ensures success. Therefore the concept of think global, act local has been clearly adopted by McDonalds. Adaptation is required for many reasons including consumer tastes/preferences and laws/customs. There are many situations where McDonalds adapted the product because of religious laws and customs in a country. For example, in Israel, after initial protests, Big Macs are served without cheese in several outlets, thereby permitting the separation of meat and dairy products required of kosher restaurants. McDonalds restaurants in India serve Vegetable McNuggets and a mutton-based Maharaja Mac (Big Mac) (Web, 1). Such innovations are necessary in a country where Hindus do not eat beef and Muslims do not eat pork. There are also many examples of how McDonalds adapted the original menu to meet customer needs/wants in different countries. In tropical markets, guava juice was added to the McDonalds menu. In Germany, beer is sold as well as McCroissants. In Thailand, McDonalds introduced the Samurai Pork Burger with sweet sauce. These are all examples of how McDonalds has adapted its product offer in international environments. Place McDonalds currently has over 30,000 restaurants in 119 countries across the world (Web, 2). McDonalds continues to focus on managing capital outlays more effectively through prudent and strategic expansion. In 1998, the company added 1,668 restaurants system-wide (whether operated by the company, franchisee or joint venture), compared with 2,110 in 1997 and 2,642 in 1996. McDonalds realizes the potential for growth in international markets and plans to benefit from lessons that they learned in the USA.

Price McDonalds has realized that, despite the cost savings inherent in standardization, success can often be attributed to being able to adapt to a specific environment. This is indeed the case with its implementation of its pricing strategy, which is one of localization rather than globalization. McDonalds has had to come up with different pricing strategies for different countries. More importantly, rather than just having a different pricing policy for the Big Mac, McDonalds has had to select the right price for the right market. Promotion Promotion, or the marketing communications mix, was seen by Kotler (1994) as consisting of five major tools: (1) Advertising; (2) Direct marketing; (3) Sales promotion; (4) Public relations and publicity; and (5) Personal selling. Using these tools, McDonalds looks to localize its marketing communications strategy as it needs to consider the enormous range of cultural and other differences that it would be faced with in each country (Web, 3). It needs to analyze consumers attitudes towards its product, usage patterns and ethnic, moral and religious considerations in that environment. Although the idea is to promote McDonalds as a global image, McDonalds focuses on the needs of the communities they are entering. In a communications context, the maxim brand globally, advertise locally (Sandler and Shani, 1991) is the McDonalds promotional strategy. Conclusion After analyzing the marketing mix of McDonalds, it is clear that the company can be said to be `global, i.e. combining elements of globalization and internationalization. McDonalds have achieved this through applying the maxim, `think global, act local (Ohmae, 1999), to all the elements of the marketing mix.

McDonald's plans agressive expansion strategy in SA

Restaurant chain McDonalds is planning a massive expansion strategy across South Africa, the company revealed today, as it opened its 112th restaurant in Polokwane. Greg Solomon, executive director at McDonalds, said the fast food giant is aiming to expand its number of outlets by between 15% and 25% a year for the next few years, adding that its expansion plans are sustainable. The South African division remains cash generative, said Solomon, and in a good financial and operational position. McDonalds, which has just over 60% of its restaurants in South Africa run by franchisees, said the demand for franchised restaurants remains strong.

McDonalds opened its first outlet in South Africa in 1995. Today the company has 153 restaurants throughout the country. How made it in Africa talks to the managing director of McDonalds South Africa, Greg Solomon. How would you describe the current state of the South African economy? There has been a slowing down of the economy over the last six months. I would say that the recession has been delayed in South Africa because of the World Cup. We might be feeling a tightening up. 2011 is not as strong as 2010 at all. The McDonalds business is, however, in a very strong position. We are coming off the back of three years of absolutely fantastic momentum. We are excited about the future. South African businessman Cyril Ramaphosa recently took control of McDonalds South Africa; what are your future plans for the company? This transaction is a transaction of growth. It is a transaction of acceleration as well. What more could you ask for in a partnership? You have one of the worlds best brands and one of South Africas most inspirational leaders coming together to give a truly glocal flavour to this business. We want to double the business in the next four to five years. What are the greatest challenges facing the business? I certainly dont think that there is anything that is insurmountable. But in our business, it is always going to be about commodities. We serve food, so we are keeping an eye on the food price increases. We are carefully watching our input costs, such as the price of beef, the price of transportation, the infrastructure and utility costs. That would be one of my biggest concerns as a possible threat to the profitability of the business. Other than that, when you are doubling up the business, you are doubling up the people. We currently employ just over 7,500 employees, which would take our employee base to 15,000 people. We need to keep our eye on the ball to make sure that we are growing talent in McDonalds, to make sure that we continue to offer the great service that we promise to give. Do you have the freedom to adjust your menu according to local tastes?

We have freedom within a framework. The reason why McDonalds is so successful all over the world is that it has untouchable brands that you cannot change, such as the world famous Big Mac. I would say that 50% of the McDonalds brand worldwide is consistent and the same. That is why consumers really love our businesses, because if you go to Europe or Japan or South Africa, you can get the same consistency. Each country has the flexibility or the freedom within the framework to make some locally relevant changes. Weve done that in South Africa. Weve introduced a product called the Grilled Chicken Foldover, which is our number one selling chicken product. On the beef burger side weve got a product called the McFeast, which has a South African taste and flavour as well. So we have locally adapted our business model to meet South African consumers needs. Are you planning to expand into the rest of the continent? Weve got our work cut out for us in the South African market. Right now, Cyril, myself and the rest of the management team are very focused on South Africa where we see a lot of opportunity. We want to take care of the South African consumers first.

McDonalds' "Plan to Win" Growth Strategy

McDonald's grown-up thinking about design is part of its "Plan to Win" growth strategy, initiated in 2003 when executives realized their core markets had gorged on expansion.[...] The Golden Arches increasingly looked like a corporate shrug, and its stock price dipped below $13 a share. Since that nadir, the Plan to Win has helped drive the stock up 437%. The strategy's three pillars are menu innovation, store renovation, and an upgrade of the ordering experience. McDonald's efficiency and its continued expansion of premium menu items - snack wraps! sweet tea! frappes! -- has helped boost the average annual store gross by 25% over the past six years to around $2 million. The next phase, McDonald's execs say, depends on design. "People eat with their eyes first," says president and COO Don Thompson. "If you have a restaurant that is appealing, contemporary, and relevant both from the street and interior, the food tastes better."

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