MKT201

GROUP ASSIGNMENT
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Nguyen xuan viEt

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Huynh Y Nhi le thai hien

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truong hong le thai le tuong vy

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 topic

Choose one brand (product/product

line/service/idea) of your choice in
one country to analyze the impact of
culture on consumer behaviour.
Table Of Contents

Introduction 05

Body part 10

Conclusion 18

References 19
Introduction
Overview

Brand
McDonald's (MCD) is a limited-service fast food
restaurant with over 35,000 locations in over 100
countries. It has a workforce of over four million
people. McDonald's serves 70 million customers
every day, which is more than France's whole
population. According to IBISWorld, McDonald's
held the greatest share of the fast-food
restaurant market in the United States (17%) in
2014. Yum! Brands (or YUM) was the closest
competition, with an 11 percent market share.

Foodservice
Fries, the Big Mac, chicken sandwiches, chicken nuggets, hamburgers, the quarter pounder
with cheese, salads, wraps, desserts, soft drinks, and other beverages are all on the menu at
McDonald's. On the other hand, McDonald's offers locally relevant cuisine options to connect
with foreign markets. Gazpacho is served in Spain, the black and white burger is served in
China, and the Veg Pizza McPuff is served in India. Burger King (BKW) and Wendy's are
McDonald's primary competitors in the United States (WEN).
 STP Strategy
Segmentation strategy
- Demographic:
Age: 8 - 70 years old.
Gender: Both males and females.
Geography: Regarding the region, McDonald's in addition to developing domestically, the
company also expands to foreign countries such as India, Vietnam, Germany, the UK,
France, etc. Regarding the region, McDonald's in addition to developing domestically, the
company also expands to foreign countries such as India, Vietnam, Germany, the UK,
France, etc. As for Density, McDonald's not only appeared in urban areas but also in rural
areas.
Income: McDonald's is aimed at people with low and middle income.
Life-cycle stage:
Bachelor Stage: Young people are busy and spend little time at home.
Newly Married Couples: Newly married couples without children.
Full Nest II: Children 6 years and older.
Occupation: Busy or outgoing occupations such as student, employee or professional.
Social class: Mainly for the lower to middle social classes.
- Lifestyle:
McDonald's is on the lookout for new customers. Individuals who are Resigned, Strugglers,
and Mainstreamers, according to Young & Rubican's Cross-Cultural Consumer
Characterization.
- Behavioral:
Degree of loyalty: Extremely loyal and hard to change.
Benefits sought: The brand serves food at a low cost and helps customers save time
eating.
Personality: Easy and not too fussy.
User status: People who regularly eat fast food and have the potential to use fast food.
Targeting strategy
McDonald's brands choose their market to target 2 main:
People between the ages of 16 and 29. They are young
teenagers who like a modern, fast lifestyle. This group of
customers are people with an average income, so they easily
choose McDonald's as a place to eat.
Children aged 5-14 years old. Why choose this object?
Because McDonald's fast food restaurant believes that
children are age with curious characteristics, like novelties
and especially they like to eat delicious, greasy, crispy
Western-style food. Therefore, it is inevitable that parents
will buy fast food after school or at weekends.

Positioning strategy
McDonald's has established itself as a low-cost, family-
friendly fast food restaurant. They have a limited consumer
base and employ a low-cost strategy. In recent years,
Mcdonald's has tended to extend its appeal in order to
appeal to a wider range of customers. Mcdonald's has
started to make our menu a more healthy alternative in
recent years owing to lost sales, and we still attempt to
keep our target market focused down to families, but there
are others who require attention as well. We're working
hard to reduce food delivery times and costs. Mcdonald's
strategy is reflected in every aspect of its business. Many
McDonald's have twin drive-through lanes to reduce wait
times and maximize the number of customers served.
McDonald's differentiates itself from its competitors by
marketing to families, whereas its competitors, in certain
cases, market to a broader base or to different generations,
such as Burger King, markets to young adults. McDonald's
has established itself as a leader in fast-food technology,
setting the bar for the rest of the sector.
 Analyse the impact of
culture on consumer
behaviour
There are many factors that influence consumer behavior. Among them, culture is one of
the most important factors. In any social group, there is a culture of its own. Therefore,
consumer behavior will also be affected. Culture is divided into 2 categories: Subculture
and Social class.
Subculture: groupings of people having similar circumstances and life experiences and
shared values. Nationalities, religions, racial groups, and geographical areas are examples
of subcultures. Important market groups include a variety of subcultures, and marketers
frequently create goods and promotional strategies that are suited to their requirements
(Philip Kotler and Gary Armstrong, page 160, 1988). Each of these can be split down into
smaller parts that can be reached with targeted text and media placement. Product qualities
can be adjusted to the unique needs of a market niche in some situations (such as the
elderly consumer). Because all subcultural groups exist, the marketer must determine how
specific subcultural memberships combine to influence the consumer's buying decisions for
the product category.
Each culture also includes many different subcultures such as religion, age,
geographical location, gender (male/female), status, etc. For example, the Hindu bride
wears a red, maroon or light-colored lehenga or saree while the Christian bride wears a
white ao dai on her wedding day. Wearing white on auspicious occasions is a violation
of Hindu culture. On the other hand, Muslims love to wear green on important
occasions.
 Analyse the impact of
culture on consumer
behaviour
Social class: are the relatively stable and well-ordered divisions of society, whose
constituents have similar beliefs, pursuits, and conduct. The upper upper class, lower
upper class, higher middle class, middle class, working class, upper lower class, and
lower lower class are the seven social classes recognized in the United States (Philip
Kotler and Gary Armstrong, page 162, 1988)
Marketers want to provide the appropriate products to the right client (target
segment) at the right price, at the right time and with the right promotion. To do so,
first choose a target segment, which can be done based on social class, which is a
stronger predictor of a consumer's lifestyle than income. The reasons for
purchasing and purchases vary by social level as well. The upper classes like
shopping and prefer to go to rare and sophisticated boutiques. The location of
stores is also crucial. They frequent boutiques and are picky about where they
shop. The upper and middle classes are more likely to seek and receive information
through television, periodicals, and newspapers, as well as from groups and
individuals of their social position.

"Anything
worth having
takes time."
 body part

Definition of
culture and
related
factors

Culture is a very difficult category to define precisely. Culture is a very difficult category
to define precisely. According to Michael R. Solomon, culture is the character of a society. It
includes both immaterial things and services, like the crafts, clothing, food, and sports that a
civilization creates, and abstract concepts, such morals and ideals. In other words, it is the
collection of common understandings, customs, rituals, and conventions among the people
who make up a group or community (Michael R. Solomon, page 549, 1988). Or according to
Philip Kotler and Gary Armstrong, culture is what drives a person's desires and actions the
most. The majority of human behavior is learnt. When a child is growing up in a society, his
or her family and other significant institutions teach them fundamental beliefs, perceptions,
wants, and behaviors. Every group or community has its own unique culture, and cultural
influences on consumer behavior can differ significantly from county to county and country
to country (Philip Kotler and Gary Armstrong, page 159, 1988).
 A person's culture has a significant impact on their mental processes and behaviors. It
tends to play a key part in defining how and why we buy products and services since it has
such an impact on how people view the world around them, their place in it, and how they
make decisions. Nationalities, faiths, racial groups, geographic religions, and other
subcultures exist within each civilization.
McDonald's marketing and promotion strategies for each region vary widely. Their
advertising highlights different cultures, subcultures, racial groups and social classes.
Regular and repeated exposure to an advertisement also creates a sense of familiarity and
positivity for the brand. McDonald's always attaches great importance to understanding the
culture of each country. However, cultural differences are one of the biggest problems
McDonald's faces when entering a new market, forcing the company to adapt if it wants to be
successful in the long term. Therefore, McDonald's has discovered that tailoring flavors and
ingredients to local tastes can aid the company's success. McDonald's remains committed to
quality, which was created to assure food quality standards on a global scale, via innovation
and adaptability. Because McDonald's has always concentrated on learning about the local
culture of each nation, its stores in the United States are substantially different from those in
Japan, India, or Vietnam.
 Definition of
consumer
behaviour

Consumer behavior has a direct impact on whether or not a company chooses to buy or
reject products. Consumer behavior is the study of the actions people or groups take when
they choose, pay for, utilize, or discard goods or experiences in order to fulfill their wants
and requirements (Michael R. Solomon, page 31, 1988). Consumer behavior refers to the
human actions that lead to buying decisions. Purchase behavior is, in fact, the culmination of
a lengthy process of consumer decision-making. Every customer has a unique thought
process and attitude when it comes to purchasing a product. When consumers make
decisions, they are engaged in a problem-solving conversation, i.e., they are attempting to
meet their needs and desires.
Everybody in the world is a consumer. Every day of our lives, we purchase and consume
a wide range of goods and services. However, we all have distinct interests, likes, and
dislikes, and we all behave differently while making purchasing decisions. Each customer is
distinct, and this distinction is mirrored in their consumption patterns, patterns of purchasing,
and processes of purchase. McDonald's menus have always been improved to ensure that
customers' expectations are met. Consumer behavior research helps us understand why
people buy and use products and services in different ways.
 Culture of the country -
Viet Nam
Is a famous fast food brand and has successfully developed in many countries. However,
when expanding into the Vietnamese market, in addition to the challenges of competitors,
McDonald's also encountered significant difficulty in terms of cultural differences. Vietnamese
culture crystallizes the labor process of ethnic groups during the process of nation-building and
defending the country, demonstrating the level and art of dealing with nature and society and
the initiative to integrate into the cultural flow. humanity. Therefore, if a company wants to
succeed in a foreign market, it needs to know all aspects of the environment they are entering
and culture is certainly an important part of that.
Vietnam is a country with a unique and diverse culture. It is impossible not to mention the
food culture, the culinary culture of the Vietnamese people has such characteristics as
sociability, diversity, low fat; rich in flavor with a combination of many spices that increase the
attractiveness of dishes. Eating into a tray, using chopsticks and especially in a meal
indispensable for rice is a common practice of all ethnic groups living in Vietnam. In the
family: Eating the same tray, giving priority to delicious food for the elderly and children,
"respecting above and giving below", showing respect and love. The daily meal is considered
an opportunity for a family reunion, everyone gathers together to have fun after a working day.
Therefore, Vietnamese people always appreciate family meals and rarely eat out.
 One feature more or less also distinguishes
Vietnamese cuisine from some other countries:
Vietnamese cuisine focuses on delicious food,
although sometimes it does not set the top goal
of eating nutritious food. Therefore, in the
Vietnamese culinary system, there are few
dishes that are very sophisticated, stewed and
simmered like Chinese cuisine, nor are they
inclined to highly aesthetic presentation like
Japanese cuisine, but more about mixing. Subtly
mix spices to make the dish delicious, or use
chewy, crunchy ingredients that are enjoyable
even if not really fatty (eg bamboo shoots,
chicken wings, animal viscera. ..). Another
special feature of Vietnamese cuisine that other
countries, especially Western countries, do not
have is fish sauce seasoning. Fish sauce is used
frequently in most Vietnamese dishes. During
the meal, the food is scooped out into bowls,
bowls, plates and presented in a round tray with
a bowl of dipping sauce placed in the center of
the tray. Food and sauces are shared. A bowl of
fish sauce shared on a tray of rice, not only
makes the taste stronger, the dish has a more
specific flavor, but also shows the community
and the standard of each Vietnamese meal. show
community. Because the bowl of sauce is placed
in the middle of the tray, everyone must use it,
so it becomes a measure of each person's
attention and cultural level.
 Consumer behaviour in
purchasing McDonals in
Viet Nam
The world is developing, people are getting
busier, that's also the reason why Asians tend to
choose to eat out and Vietnam is a country with a
young population and Vietnamese youth tend to
spend a lot of money, consumer more.
Traditionally Vietnamese people prefer to dine at
home. That's one of the reasons why McDonald's
decided to enter Vietnam.
In 2014, McDonald's came to Vietnam. At this
time, McDonald's was warmly welcomed and
responded to by the people. However, after
experiencing a sense of curiosity and novelty in
enjoying American food, customers quickly
ignored this brand, leading to the desertion and
stagnation of the chain of stores. Customers come
to McDonald's mainly to experience and try
because besides McDonald's they have many other
alternatives and the main customers of
McDonald's in Vietnam are young people and go
with friends or family.
To partially explain why the behavior is not in favor of McDonald's fast food, we can
rely on Heuristics.
Heuristics: mental shortcuts for effective decision-making (Michael R. Solomon,
page 345, 1988). McDonald's is a fast food company from Europe and Vietnamese
people have always thought that foreign products - higher price, especially here
McDonald's is a company from the United States. That is also one of the reasons
why McDonald's is sluggish and has few customers.
Analyse the impact of
culture on consumer
behaviour in that country
As mentioned above, Vietnamese people are not very enthusiastic about this fast food
brand, leading to McDonald's not being successful in Vietnam. And one of the reasons
why McDonald's fails is the difference in food culture.
Fast food at McDonald's such as hamburgers, fried chicken, etc, often contain a lot of fat
and calories. This food almost exclusively provides starch, protein and fat. For the culture
on the menu of the Vietnamese people, each meal usually has to have vegetables, low
greasy food and rice. So eating fast food is often not suitable for Vietnamese people's
eating habits. In addition, street food is extremely developed and has become a symbolic
feature in the food culture of Vietnam. The street food is usually very cheap, delicious
and varied from liquid to solid, especially Pho and Banh my. Instead of just sandwiches,
fried chicken and carbonated drinks, Vietnamese people will naturally choose traditional
Vietnamese food. According to statistics in 2018, there are about 540,000 food service
providers across Vietnam, including about 430,000 local stores. Eating on the sidewalk
has become a typical culture in Vietnam. Food of all kinds is available everywhere,
whether on the sidewalks or on boats in the river. Meanwhile, McDonald's menu revolves
around burgers and drinks. Obviously, Vietnamese have cheaper, tastier, more consistent
options outside than in McDonald's.
On the other hand, the culture of fast food and making way for customers of fast-food
restaurants is not really suitable for Vietnamese people's habit of sitting back, sipping,
relaxing and sharing food. In Vietnamese culture, it is normal for a family or a group of
friends to sit down to eat and share food together. At that time, the culinary style of
McDonald's was not suitable for this culture. Firstly, Burger is not something to share
with others. Secondly, having to eat quickly to save space for those who come later is not
suitable for the long-lasting happy eating habits of Vietnamese people.
We also can explain by Social Judgment Theory also assumes that in light of what they
already know or feel, people integrate new knowledge attitude regarding objects (Michael
R. Solomon, page 280, 1988). Before McDonald's entered the Vietnamese market, there
were many pre-existing brands such as KFC or Lotteria. Therefore, Vietnamese people
have had certain experiences and feelings with fast food before. This inadvertently leads
them to think that fast food in every brand will be the same and they are used to KFC or
Lotteria to the point that there is no reason for them to try something new.
Beside, Multiattribute Attitude Models can apply in this part. In Vietnam, the concept of
fast food has existed for a long time. Whether it's pho or sandwiches, customers have
plenty of options everywhere. So attributes such as McDonald's fast or delicious also don't
make a big breakthrough because locals can get faster service from traditional grocers.
The last theory mentioned is Hofstede's cultural dimensions theory is a model for
intercultural communication that Geert Hofstede created. Using a structure developed
from factor analysis, it demonstrates how a society's culture affects its members' values
and how these values connect to behavior. In this theory, the aspect of Individualism vs.
collectivism (IDV) will be analyzed.
This index investigates "how well member so fasociety are incorporated into
organizations." Vietnam is a collectivist country. This means that there is a high
preference for very clear social frameworks in which individuals are expected to
conform to the ideals of the community and group in which they exist. This is
reflected in a long-term commitment to the <member= group, be it family, extended
family or long-term relationship. The Vietnamese culture is to eat together and share
food, which is not suitable for the fast food culture and give way to customers of fast
food restaurants.
conclusion
To summarize, one of the most important aspects of product success is knowing consumer
behavior. However, McDonald's has not done this well in Vietnam. They do not really
understand the culture of this country, thereby misidentifying consumer behavior. When it
comes to entering a new foreign market and capturing as much market share as possible, the
impact of culture is the most crucial factor to consider.
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