International Marketing Plan for MacDonald
International Marketing Plan for MacDonald
International Marketing Plan for MacDonald
Getting in touch with the external world is gaining momentum, especially for Corporations with products that are appealing to clients worldwide. Therefore, the essence of internationalism of Corporations is to venture into the rich world market and bring competition to the local existing Companies offering similar products (Barringer, 2012). For Corporations like MacDonald, which has been commanded restaurants industry for close to a century, its entry into other countries has produced good results; however, there are still many countries that MacDonald products have not been experienced. To penetrate such new markets available in other countries, the elaborate international marketing plan should be dratted. Various modes of entries need deeper evaluation to find which one will work in given country. Similarly, the international marketing plan should evaluate the marketing mix strategies that are achievable. It is also necessary to create advertising strategies for MacDonald restaurant products (Barringer, 2012). Which appeal to the customers, bearing in mind cultural diversity as well as social lifestyles and economic power of international customers in different parts of the world. MacDonald is not the only Corporation that offers fast food services; there exist other local and international Corporations in the international market. Therefore, this international marketing plan will also briefly analyze competitors’ tactics in respect to Sultanate of Oman rule (Douglas & Craig, 2010).
Over the last seventy-five years, MacDonald Corporation has extended its products to millions of customers in different parts of the world. MacDonald popularity, as a restaurant offering fast food services to customers of a different kind, operates in 118 countries in the world. It serves approximately 68 million customers on a daily basis from its branches (McDonald, 1989). The main fast food offered in its branches include hamburgers, chicken, French fries, soft drinks, milkshakes, coffee, salads, and desert. However, depending on the location of the restaurant, MacDonald’s restaurants are culturally sensitive to customers, who at times might not be comfortable with beef. MacDonald restaurants are operated through franchisee, subsidiaries or sometimes; it manages the restaurant independently as a corporation in the international market. (Aaker, 2010).Despite the fact that MacDonald Corporation is highly regarded as convenient fast food restaurant for customers, it has been consistent, criticized for its policies regarding employees’ remuneration.
Mode of Entry
Its mode of entry into international markets will involve four main channels that include franchising its restaurants, through turnkey projects, wholly owned subsidiaries, join venture with the existing restaurants offering similar products, or through foreign direct investment (McDonald & Wilson, 2011).Through the restaurants that are well established in the country of interest, MacDonald will allow such restaurant to use its business model to reach far stretched customers located in the international markets. This mode of entry will minimize risks that MacDonald Corporation will incur since the franchisee will take most of the liabilities. Once the franchisee establishes the products in the international market, MacDonald Corporation will evaluate the market strengths in such a country of operation and eventually will find it easier to run its services independently once the franchising contract expires (Parks & Bokor, 2015).
The other mode of entry will be through turnkey projects. In the international markets, especially in the developing economies, in which infrastructures are yet to be constructed, or if they exist, they are in depilated state, MacDonald Corporation will participate in designing and renovating of various facilities, which are likely to capture the attention of the locals within that country.It also involves training of the local in to acquire relevant skills that will be needed when the actual operation of the restaurant begins (Douglas & Craig, 2010). This will make the local customers identify themselves with the services offered at the MacDonald restaurants because most of the employees that will work in the joints will be drawn from that country (Douglas & Craig, 2010).
To have full control over the restaurants, MacDonald Corporation can opt to establish wholly owned subsidiaries restaurants in the international market, which will be fully owned by the corporation. This will facilitate the transfer of quality services to the newly stabled joints. Skilled and qualified personnel, who have successfully managed other restaurants in other countries, are likely to be dependable in managing new joins in foreign countries (Piercy & Morgan,1994) This mode of entry, unlike franchising, is flexible to run since decision regarding the operation of the restaurants can be altered should need arise. Similarly, profits realized will not be shared with other parties.
Reasons behind Internationalism
Developing countries have realized that sustaining political stability has positive impacts on economic developments, which too, makes the locals population to improve their earning power hence their ability to spend in restaurants. The improvement in economic power of the locals in other countries presents an ideal opportunity for the foreign corporation to open more branches in developing nations to extend services to local and touring customers (McDonald & Oates, 2006). Globalization has increased the rate of flow of information and people with great ease. Tourists, who are familiar with Macdonald restaurants services in their home countries, whenever they tour other countries, will be likely to get fast food from well-known restaurants, such as MacDonald, offering fast foods. Either MacDonald franchised joints or its subsidiaries are ideal places to get fast foods for any tourist in traveling in other countries (Piercy, & Morgan, 1994).
Marketing Mix Strategies
MacDonald Corporation employs various marketing strategies to penetrate international markets. Some have worked for the benefit of the corporation while others have been detrimental to it. Creating of playground for children will give them mileage over the existing local restaurants in the foreign markets (Douglas & Craig, 2010). This is because the majority of restaurants offering fast food services have not created space children to play while having a stop for service with their parents.
The corporation will also sponsor sports competitions in the new area of locations in the foreign countries. Sporting attracts people of all kinds and through these events; potential customers will come to know services offered at MacDonald restaurants. Renovation of the stadium in the foreign countries, especially developing countries, will be one of the marketing strategies that will yield a better result when the affiliate restaurants or subsidiaries restaurants of MacDonald start operating (Blank, 2013). With the transfer of technology, MacDonald restaurants in foreign countries have a variety of serving options. For instance, in some of the restaurants located adjacent to highways, drive through services are offered, unlike locations in downtown areas which allow counter services as well as walkthrough services in the restaurants. These marketing strategies are very efficient since overcrowding in the restaurants is minimized. However, the isolated MacDonald restaurants offer both drive through and counter services, with ample seating spaces available within and outside the restaurant facility.
Brand Position and Advertising Strategy.
MacDonald Corporation products are very popular among consumers in different countries all over the world. The fast food services are very identical with consumers who are on transit and may not have enough time to locate other restaurants, whose brands are not familiar. Its trademark symbol is similar in all the restaurants, whether franchised or wholly subsidiaries (Douglas & Craig, 2010).
Though, its main menu encompasses hamburger, chicken, French fries, milkshakes, salads, desserts, and soft drinks, in the international restaurants, there are some little changes to accommodate the test and religious belief of the locals in countries where MacDonald restaurants operate (Piercy & Morgan, 1994) Some of the Asian countries, in which beef meals are not tolerated by the majority of consumers due to religious restriction; MacDonald restaurants kitchens are carefully partitioned to avoid any contact between vegetarian meals and other beef related products served in such restaurant.
Internationalizing MacDonald restaurants requires vigorous advertising strategies. Mainstream media platforms have been used to reach consumers across the world. Television, newspaper, and radio attract the consumers to MacDonald products (Aaker, 2010). However, demographic change in consumers and modern development in technology requires new ways of reaching consumers. Many people all over the world have experienced the impact of technology. Therefore, consumers existing in different regions of the world are frequently interacting with internet services. The use of devices such as portable computers, mobile devices with various application programs provides avenues for advertising of MacDonald products (Pasternack, 2008). Many peoples, especially those whose age fall in youth bracket, usually spend, the reasonable amount of time in social media like face book, twitter, instagram, just blogging and charting with friends. These are potential consumers of MacDonald products, who can be reached through the identified social media. The advantage of social platforms as a channel of advertising is that regarding the cost, it is less expensive, and can reach quite a large number of audiences in different parts of the world, where MacDonald Corporation intends to launch new restaurants (Blank, 2013).
Initiating winning games through sweepstakes and rewarding winners with lucrative offers will certainly capture many consumers. For instance, through MacDonald Monopoly games many people are enticed to use its restaurants that offer the variety of fast food with the intention of winning houses, the huge sum of money as well as free fast food services in MacDonald restaurants. This advertising strategy will make many consumers of MacDonald products remain loyal and consistent in buying its products (Douglas & Craig, 2010).
Corporate social responsibility can also be used to advertise products of the corporation. In the developing countries with promising economic power and political stability, construction of schools, health facilities and play ground for the locals in those countries, will make a company product get to the market with less resistant. Though MacDonald Corporation has assisted the less fortunate through its programs such ‘McHappy Day’, in which certain sales of the day is channeled to the charity organization (Barringer, 2012). This program if extended to other countries will make many consumers prefer taking the fast foot from MacDonald restaurants as opposed to other corporation in the industry which do not play a role in corporate social responsibility.
Competitor Analysis with Respect to Sultanate of Oman
Some local restaurants enjoy monopoly but according to sultanate rule on monopoly, not all monopoly is bad except those that tend to have the arrangement to control the quantity and prices of products and services (McDonald, 1989). Such practices are not tolerated in some countries and can lead to revoking of business license Corporations like MacDonald will have to penetrate the international market by forming partnership with the local partners either through limited liability Company or joint stock Company (McDonald, 1989).
Some of the anti-competitive arrangements among competitors in the international market are prohibited in some countries. For instance, collusion on bids or tendering process, discriminative policies that limit access of the joints by some persons, based on race, religion or economic background, will limit the potential of the Corporation from succeeding in the foreign market (McDonald & Oates, 2006). This will, in turn, pose a challenge during internationalism.
Impacts of Social and Cultural Factors on the Target Market
.Considering that culture varies from one society to the other, the international market environment is shaped not only by political and economic factors as hinted in the preceding discussions, but also cultural and social factors play every crucial role for a corporation offering fast food services (McDonald & Oates, 2006). Some taboos and beliefs restrict some serving of beef related products. This will require the corporation to alter its menu in the internal market. The social life of the people, for instance, whether families go out with their entire family children included, will force the Corporation to offer fast foods to appropriate age group (Barringer, 2012).
Factors Influencing Decision in developing Distribution Channels Internationally
A major factor that will influence decisions in distributing channels includes government policies like where the serving joint is located and health related issues must be considered, consumer protection rights too will influence the type of fast foods served, for instance, nutritional information must be revealed to the consumer. Lifestyles of the people, for instance, where do they spend they spend their holidays, urban or suburb areas, too will dictate the location of the distributing channels (Piercy & Morgan, 1994)
Internationalization of MacDonald Corporation requires well-thought marketing plan that entail proper mode of entry as well as solid knowledge of competitors strategies. The marketing plan should also consider socio-cultural factors that have direct impacts on how the business enterprise will be perceived by the locals. To enhance chances of success of a corporation globally, aggressive advertisements strategies and rebranding of the products should be a priority to MacDonald Corporation. Corporate social responsibility is essential in reaching the market in both developed and developing economies.
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