International Marketing McDonald's and its strategy for success

Résumé du document

With more than 30,000 restaurants all around the world, the McDonald's Corporation is definitively considered as the biggest fast-food chain on earth. Created from the imagination of two brothers who wanted to create something new, innovative and attractive, the firm quickly met customer needs and created a new consuming behavior in the 50s. Nowadays, that the brand is selling worldwide, it is interesting to analyze how it managed to succeed and what its mains strengths are toward newcomers. Thus, we will see in this report a short history of the company and the current figures. Then, I will describe the business model that made it so successful and analyze the long term strategy implemented to secure growth. To finish with, we will see howthe company conquested a difficult market when talking about food: France, and whatits current situation is in France.

Extraits

[...] To do so, the Corporation set up a business strategy called the Glocal strategy aimed to conquest the world. Composed of the two words Global and Local, this strategy is simply based on applying the same worldwide scheme everywhere: triptych Hamburger French Fries Soda, but adapting some part of it to each local culture and habit. Thus, it is possible in France to eat salad instead of a hamburger, tacos in Mexico, and you can find only one product with Fish in Italy and around 10 in Japan! [...]

[...] Below is an example of a restaurant in London before and after its redesigning: We have already seen that a major point in the business development of the brand is loyalty, aimed to gain and secure market shares. Since its creation, the McDonald's brand has been innovative, convivial and familial. This trio has led the company to become successful creating at the same time a specific McDonald's fast-food culture. This is represented for example by the Family First behavior People do not only go to a McDonald's restaurant to eat but also to experience something new especially in the 50s with the drive-in system, the revolutionary milkshakes etc. [...]

[...] Following are some examples: Standardized: Color codes, restaurant architecture, materials, Ronald McDonald's, recipes, cooking process Adapted locally but decided by the Corporation: adverts, certain hamburgers and products, and recommended selling prices Franchisee appraisal: location of the restaurant, selling prices, special offers, employee recruitment. The franchise system allowed the McDonald's Corporation to control its expansion, its brand image and ensure growth and revenues in a long-term position. In addition to ordinary franchise fees, supplies, and percentage of sales, McDonald's also collects rent, partially linked to sales. [...]

[...] You can eat while listening to music thanks to earphones plugged to the tables and broadcasting music from the latest albums of trendy artists. Video clips are also programmed on TV. Special offers from the franchisee : a hamburger offered if you show your cinema ticket or a cinema ticket is offered if you use the McCiné menu Input Good quality products, fast service, possibility to eat before going to the cinema Good welcoming and service, discount on the cinema tickets thanks to the Cine Menu, possibility to listen to the soundtrack of the movie while eating Output Happy customers; people eat, go to the movie and then can go to the FNAC, buy the Soundtrack CD. [...]

[...] Usually destined to create or answer the compulsory buying demand. McDelivery which is the brand's new delivery service. Usually set up in countries where getting to a McDonald's is complicated, workforce is cheap and the service culture is strong e.g.: Singapore and Hong Kong where cars are very expensive and there are traffic jams all the time. McStop is a location targeted at truck drivers and travelers which has services at truck stops. The first one in the world opened in Minneapolis. [...]