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History Two brothers, Dick and Mac McDonald founded McDonald’s in 1937. The brother developed food processing and assembly line system at a drive-in restaurant, California.
So they serve Vegetable McNuggets and mutton based Maharaja Mac. Marketing Mix Product One of the aims of McDonald’s is to create a standardized set of items that taste the same whether in Singapore. Anadolu Group became licensor of McDonald’s for 20 years. they experienced downsizing. saw an opportunity in this market and negotiated a franchise deal giving him exclusive rights to franchise McDonald’s in the USA. In 1986. Between the years 2001-2003. Hindus do no eat beef. McDonald’s opened its first restaurant in Taksim.In 1954. during 1967. McDonald’s is supporting Turkish economy through the usage of local suppliers. Ali Vardar was the master of franchising of McDonald’s. and of growing expenditures. in other words he wants to underline their glocalization strategy. The key to internationalization success of McDonald’s has been the use of franchising. Moreover. Beside this. McDonald’s is the leading global foodservice retailer with over 30. they made foreign investors come to Turkey and create work area for Turkish economy. if local suppliers cannot meet the standards of McDonald’s. being able to adapt to an environment ensures success. McDonald’s buy its %98 of ingredients from local suppliers. Adaptation is required for many reasons including customer tastes/preferences and laws/customs. McDonald’s took over all shares from Vardar. they helped local suppliers to sell out overseas McDonald’s restaurants. Between the years 1986-1990. they had to close up 60 unprofitable restaurants. For example in India. In 2005. So this strategy had some great effects.7 million in 1961. McDonald’s thought that charging someone who knows country will be an appropriate and reasonable decision. the delivery and interpretation of what might be seen as US brand culture are automatically translated by the local people in terms of both product and service. Spain or South Africa. McDonald’s target market is “mother and children” and young adult population. The McDonald’s brothers sold out for $2. McDonald’s first international venture was in Canada. McDonald’s has learnt that. Ray Kroc.000 restaurants serving 52 million people in more than 100 countries. More than 70% of McDonald’s restaurants worldwide are owned and operated by independent local men and women. Today McDonald’s have 93 restaurants with over 2800 employees in our country. so it became totally direct investment. act local” has become the business phrase of the 20th century. Strategy The concept of “think global. After 1990s. For 2007. a milk-shake mixer salesman. 2 . By franchising to local people. Globalization involves developing marketing strategies as through the world is a single entity. In 1970s. while McDonald’s globally growing in Turkey that was the time of economic liberalization. But the profit per remaining restaurants has increased. They changed their aggressive growing strategy to sensible degrees. McDonalds has also adopted this strategy to continue its operations worldwide. McDonald’s has implemented really aggressive growing strategy. although there are substantial cost savings through standardization. Muslims do not eat pork and Jains do not eat meat of any type. McDonald’s CEO Jim Skinner said in one of his interviews that “We are American Icon but also a Turkish company”. marketing standardized products in the same way everywhere. they are expecting 185 million YTL revenue and 60 million customers. Global companies should view the entire world as a single borderless market according to Levitt.
On the other hand. This is a global practice and is one of the distinguishing features of McDonald’s as a fast-food restaurant. Price Pricing strategy is one of localization rather than globalization. fries and a drinkoverwhelmingly Coca-Cola. They view McDonald’s is a part of the local community. McDonald’s works more efficient and effectively. announced and unannounced. Today there are many alternatives that specially produced for Turkish taste. Quality Assurance teams are responsible for monitoring the quality of McDonald’s food products. the Japanese market is in its growth to maturity phase and so can price the Big Mac higher with greater success in term of profitability. and ultimately the planet itself. 3 . MaxBurger. No delivery is accepted until a series of quality and safety checks is completed. Depending upon the perception of price by the customer then will the price of the McDonald’s product be determined. This involves continuous round of visits. McDonald’s as a big purchaser. Longer term. Italy and Mexico are expected to represent a growing proportion of restaurant additions. recent structure of the McDonald’s menu remains essentially uniform the world over: main course burger/sandwich. They will be opening 18 new restaurants throughout the year. the product variety was limited but Ayran has been a drink alternative from the beginning. especially in markets where competition is not so strong. Nowadays changing eating habits of most people and the increasing obesity cases pushed fast food industry serve healthier products. For example. both in restaurants and at suppliers at all stages of production. In Turkey. Burger King has more than 120 restaurants but McDonald’s have only 93. They have applied this to growing international business. there are McTurco (with beef/chicken). Diyarbakır. to all production facilities. they have unique opportunity to leverage their influence to help shape and impact social. McDonald’s added information about calories of its products on menus and on its website. inspections and audits. Their aim is to grow their market size and answer the critiques. They will invest 10 million dollars for these openings. Alanya. In the first years in our country.Even there are many variations. it is the fries. they look at the demand for their product as a barometer for setting price. and MeatBurger. Then they created new range of products called “Light&Active” which slogan is “Yedigin Kadar Yak. markets like China. They keystone of this winning combination is not hamburgers. Bodrum are some of the planned locations. the economy. animal welfare. Overall pricing objective is to increase market share. All restaurant staff receives comprehensive training in food safety and hygiene and food preparation procedures. In US market it is in the decline stage of the PLC and so has to cut prices to re-establish lot revenue. In each country. Place McDonald’s realizes the potential for growth in international markets and plans to benefit from lessons they learned in the USA. Yaktığın Kadar Ye”. when we compare them we see that they have the same income. environmental. For example they realize when looking back that they could build more restaurants at a time when competition was no so great. distribution centers and restaurants. In other words. the surrounding environment. McDonald’s has had to come up with different pricing strategies for different countries.
McDonald’s enhances its brand name with such associations as the Olympic Games and the World Cup. But in general. McDonald’s just use different personalities in different cultures to get their message across. When we look at the Big Mac Index. in 2003 they started “I’m loving it” campaign worldwide which focuses much more young people. Lastly. Nationally. McDonald’s has strong links with the NBA and NASCAR. Promotion Using marketing tools. McDonald’s changed their advertising slogan to “There is nothing quite like a McDonald’s”. In 1997. McDonald’s focuses on the needs of the communities they are entering. McDonald’s announced a global alliance with Walt Disney which allowed them to share exclusive marketing rights for everything from films to food. McDonald’s advertising strategy concentrated on standardizing their brand name but localizing their advertising campaign. The point is that the image they are trying to convey the same. they have also used local figures on most of its advertisements. People 4 . we also see global strategy applications. in contrast to the US practice of substituting technology for human workers. It also needs to analyze consumers’ attitudes towards its product. Besides TV advertising. In Turkey. they give information at their websites. the French goalkeeper. Although the idea is to promote McDonald’s as a global image. the purchasing power of Turkish people is lower. moral and religious considerations in that environment.In USA the price of the meat is much cheaper ($1-$2) than Turkey ($7-$8). the Beijing McDonald’s relies heavily on personal interactions with customers. They adopted more personal approach to their customers. Lastly. So McDonald’s do some sales promotions to reach C1 and C2 groups. In 1994. usage patterns and ethnic. Advertising McDonald’s has a wide range of advertising campaigns in various countries. Mc Donald’s 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. Beside this. we see that Turkey’ menu prices are higher. For this campaign they used famous pop star Justin Timberlake. For example in the UK they use English footballer Alan Shearer as a figurehead to promote their hamburgers. Sports sponsorship Globally. They decide not to organize a big celebration pat for the 20th year in Turkey instead with this money they are going to apply an open doors program which will help to change the prejudices and perceptions about McDonald’s. Then. Zuhal Topal has played. Public Relations McDonald’s localization strategy figure in Beijing is that. for next ten years. the two biggest sporting events in the global calendar. whereas in France they use Fabien Barthez. In the US. McDonald’s targets specific events with which it would like to be associated. they serve fro A-B group. Community Relations McDonald’s concentrates on helping “seek solutions for the problems facing children and families today”.
service and cleanliness through excellence in their restaurants. McDonald’s has been always the leader in its sector. popular world known brand name o Franchising system o Variety of menus o Local partner o Local suppliers o Local employees o Hygiene standards (trip to kitchen) o Fast service o Same taste everywhere o Secure working environment 5 . For example. McDonald’s standards have to be met the world over. Turkish people have seen the packaged pipettes and disposable eating tools for the first time in McDonald’s restaurants. USA. each restaurant has the same kitchen layout. SWOT Analysis Strengths o Strong image. there one could describe the process as “glocal”. Physicals Focusing on consistent delivery of quality. although the course teaches a standard practice to be used in restaurants worldwide. There is a hamburger university in Illinois. Hygiene and food safety standards are really important issues for them because when you think that McDonald’s is serving 50 million people in one day. signage and equipment layout. The emphasis when recruiting is that the applicants are customer-focused. Turkey has first met with part-time working with McDonald’s. if they cannot do this. method of operation. the dissatisfaction of only %1 of the consumers is a quite big amount. the franchisee can use the recipes for the firm's products. is McDonald’s message in every franchise throughout the world. The customer knows that. This epitomizes globalization. the message of a family environment will still be conveyed.The firm has more than a million employees. and marketing. Under the franchise agreement. accounts systems. and teaching is adapted to suit the needs of overseas students. The company is strongly committed to staffing locally and promoting from within. Process The procedure for making food is identical everywhere. the hygiene and food safety standards were higher compared to any other Turkish restaurants. their stock control. It provides training in 22 languages. restaurant decor. the company agrees to provide the McDonald's trademarks. McDonald’s tries to maintain global standards in cleanliness and service. Suppliers have to be meeting all the specifications and demand that McDonald’s sets them. the right attitude is seen as more important than technical ability. Before entering a country for the first time the HR department has a list of questions that must be answered. McDonald’s vertically integrates. In addition. whatever McDonald’s they enter. This leads to improvement of standards in Turkey. These include: What are the labor laws? Would McDonald’s be able to establish part-time and flexible work schedules? Are there a maximum number of hours an employee can work? McDonald’s adapts to each individual situation.
Some Mistakes and Problems Worldwide McLibel Trial 6 . Their suppliers Coca Cola. decreasing inflation rate Threats o Direct and indirect competitors (Burger King says that McDonald’s is not competitor. They are organizing a panel on 2nd of June. McDonald’s other target market become the dieticians.o One of the world’s biggest employer Weaknesses o Increasing costs such as rent because of brand name o High meat prices in Turkey o Using libel laws as a from of censorship (Greenpeace leaflet) Opportunities o More working women. it is cooperator for them) o Increasing awareness on healthy foods o Increasing of obesities o Unstable political environment o Nationalism trend o Increasing antipathy towards American brands Major Obstacles and Problems Current Issue Is fast-food definitely causes obesity? Is McDonald’s definitely causing obesity? If we talk about a healthy life style. doing sponsorship agreements with the health based congress and they build up their own stands. After all discussions about the obesity and such. less time for cooking. one to one communication helps to improve this relation. They agreed with Nilgün Belgün. And also there will be some fitness trainers to show people how to work out. changing lifestyles o Increasing rate of young population o Improved economical conditions. we should have variety and balance in our nutrition. Because mothers are confused about how to feed their children and freaked out after all fast-food threats. Danone and some dieticians will be there to explain McDonald’s ingredients and also balanced nutrition. They do some trips to preschools and show how to work out to children. They are paying attention to not do these organizations as marketing. They are organizing panels.
at a time when 12 million people are facing starvation in southern Africa. he must wolf three squares a day. These people are allergic to products contain milk and wheat. The documentary premiered at Sundance in January. McDonald’s had announced before that their foods do not contain ingredients can harm allergic people. vegetarians and others" for incorrectly describing fries and hash browns sold in the US as vegetarian. play writer. The girl. Spurlock treks across the country interviewing a host of experts on fast food and an equal number of regular folk while chowing down at the Golden Arches. The group started legal action against the fast-food restaurateurs after the company failed to make clear that it had used beef flavoring in its French fries. 2004. Super Size Me Morgan Spurlock. Today they admitted French fires contain milk and wheat. Less than two months later. he must consume everything on the menu at least once and supersize his meal if asked. among other things Apologize to Hindus In June 2002 the company agreed to pay a $10m settlement to Hindus living in the United States. locked a 10-year-old girl in a freezer compartment. Spurlock's grueling drive-through diet spirals him into a physical and emotional metamorphosis that will make you think twice about picking up another Big Mac. McDonalds announced that it will no longer sell any of their menu items in "Super Size". In Turkey Two former employees of the fast-food chain.The infamous 'McLibel' trial during the late 1990s is believed to have caused serious damage to McDonald's public image in the UK and abroad. Furthermore. McAfrika McDonald's has been accused of extreme insensitivity after releasing a new sandwich called the "McAfrika" in Norway. Leyla Alkis. The bad press was caused when two unemployed Greenpeace campaigners were sued for libel (written statements which are damaging to reputations) by McDonald's for distributing leaflets entitled 'What's Wrong With McDonald's?' The leaflet made claims that the firm adopted environmentally harmful processes and did not care about customers' nutrition. For 30 days he can't eat or drink anything that isn't on McDonald's menu. Sources were quoted as saying that the company "sincerely apologizes to Hindus. McDonalds. Çölyak Illness McDonald’s is sued for misleading about ingredients by three people who have “Çölyak illnesses”. Then he does just that and embarks on the most perilous journey of his life. had been trying to sell small packets of paper tissues to 7 . got the idea for the documentary when he was lying on his couch at his family's house shortly after Thanksgiving dinner. watching TV when he saw the news about two teenage girls suing McDonald's for making them obese. one of the world's richest countries. although they officially deny that this move was in reaction to the film.
McDonalds had dismissed the two members of staff. When homogeneity across current and new markets in the variables that constitute the basis for market segmentation is low. transferability of competitive advantage and similarities in the degree of economic freedom. homogeneity in the customer response to the marketing mix will also be high. an issue that is of critical importance in ensuring economic efficiency. A writ issued by state prosecutors said that even half an hour in a deep freeze could have caused Leyla Alkis's death. She was released only after customers intervened. The sources of a firm’s competitive advantage can be identified in different ways. When homogeneity across current and new markets or viable subsets of new markets in the variables that constitute the basis for market segmentation is high. Consequently. Economic freedom impacts the environment by changing the motivation and learning of individuals.customers in the McDonalds restaurant. and superior skills. homogeneity of customer response to marketing mix. homogeneity in the customer response to the marketing mix will also be low and standardization strategies will not be facilitated. if other conditions permit namely that we have homogeneity in consumer response to the marketing mix. 8 . A spokesman refused to comment on a possible claim for damages from the Alkis family. such as the concept of the value chain. superior product quality. The company described the incident as "totally unacceptable". facilitating standardization strategies. who could themselves be facing legal action for sending their 10-year-old daughter out to work. Transferability of these advantages is the most important globalization driver. The three factors include. a high similarity in economic freedom will encourage the marketer to follow policies of standardization while a low level of similarity in economic freedom across markets will discourage or inhibit the marketer from following policies of standardization. Witnesses who were in the McDonalds restaurant when the incident took place have testified that two members of staff locked the little girl in a coldstorage compartment. Literature Review The Fundamentals of Standardizing Global Marketing Strategy This article examines issues of standardization and adaptation in global marketing strategy and explains the dynamics of standardization. and transferability of competitive advantage. including the manager of the restaurant. lower prices. A three-factor model of standardization/adaptation of global marketing strategy has developed.
Andrew Sheridan May McDonald’s Corporation Turkey Office. Warren Keegan Mark Green Brand globally. Jay Barney Global Marketing. Jennifer Rowley The fundamentals of standardizing global marketing strategy. act locally! Competences for global management. Corporate Communication Ayça Akkaya Hurriyet Archive Sabah Archive www.com http://www. Nanda Viswanathan Peter Dickson McDonald’s: “think global.uk 10 .co.References Principles of Marketing. Philip Kotler Gary Armstrong Gaining and Sustaining Competitive Advantage.bized. act local” – the marketing mix. Claudio Vignali Think globally. market locally Jennifer Barron Jim Hollingshead Online Branding: the case of McDonald’s.mcdonalds.
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