Global MarketingAlexandria Mesa

Luis RuizAllen Ganaden

Global Marketing Today McDonald’s How to Enter the Market McDonald’s in India Global Marketing Program:

◦ Place◦ Product◦ Price◦ Promotion

India Commercial What we learned

Agenda

Faster communication, transportation, and financial flows available.

Over the past 3 decades the number of multinational corporations have grown from 30,000 to more than 63,000.

69 of the world’s top 150 “economies” are multinational corporations.

Few industries are now safe from foreign competition.

A Global Firm raises capital, obtains materials and components, and manufactures and markets its goods wherever it can do the best job.

Global Marketing Today

◦ More than 34,000 restaurants in 119 countries.

McDonald’s

Countries.jpg

3 Choices:◦ Exporting

Indirect Direct

◦ Joint Venturing Licensing Contract Manufacturing Management Contracting Joint Ownership

◦ Direct Investment

The further down the strategy the more commitment and risk involved but also the more control and potential profits available.

How to Enter the Market

McDonald's works through joint ventures.

80 percent are franchised

It has two Indian entrepreneurs: ◦ Amit Jatia: Vice President of Hardcastle Restaurants

Awarded a Development Licensee status by McDonald's Leads operations in West & South India

◦ Vikram Bakshi: Connaught Plaza Restaurants Has joint venture with McDonald’s. Manages operations in North & East India

McDonald’s in India

• Currently over 300 restaurants in India • Distribution Channels

◦ Cold Chain

Convenience: McDelivery Kiosks Drive Thru Extended Hours

Global Marketing Program:PLACE

Product Adaption vs. Product Invention

30% original 70% local menu. Non-beef and Non-pork products Sauces Local spices & chilies Fries are made from locally sourced

potatoes

Global Marketing Program:PRODUCT

Chicken Maharaja Mac Big Mac

ChickenMaharajaMac.jpg BigMac.jpg

MenuIndia.jpg

Price Setting Foreign prices lower than domestic prices Charge what consumers would bear

Global Marketing Program: PRICE

India◦ 115 rs

($2.13) U.S.

◦ $5.29

Global Marketing Program: PRICE

Mchicken.jpg

Global Marketing Program:PROMOTION

U.S. India

Commercials are more serious

Ads tailored to more specific target markets

Commercials are family oriented and humorous

Target:◦ Children◦ Teenagers◦ Price-sensitive middle-

class individuals

“I’m lovin’ it” – Single Global Message for All Markets

http://youtu.be/ErnTTK7zOeU

India Commercial

What we learned

McDonalds Official Global Website. (2013). Retrieved from: http://www.aboutmcdonalds.com/mcd.html

McDonalds. (2013). Value Menu. Retrieved from: http://www.mcdonalds.com.mt/mcdonalds/content.aspx?id=44883

McDonald’s India. (2013). Retrieved from McDonald’s India Website: http://www.mcdonaldsindia.com/

Dash, K., (2005). McDonald’s in India. Thunderbird: The Garvin School of International Management. Retrieved from: http://www.csumba.org/mba602/McDonald's%20in%20India.pdf

References