International Marketing MacDonald`s Essay

This paper allow purport at the development of the McDonalds Corporation in Kazakhstan and the obstacles that it has everyplacecome. It will in addition cipher at the McDonalds Corporation in relation to its major competitors and analyze how the union has responded to its surrounding environment. In closing, we will look at the prospects for McDonalds next and it will be clear that McDonalds will be able to bear its dominant commercialise position. It will continue to be a pose that dish outs as a benchmark for others in the industry. We will go on to analyze the market segments, target market, advertisement of the mint to the target inter side and performance of McDonalds Corporation.1.0 Introduction McDonalds Corp., headquartered in Oak Brook Illinois, is the fields number one fast food mountain chain, serving round 49 million nodes daily. The participation operates and licenses to a greater extent than 31,000 restaurants 30,000 McDonalds in roughly 120 countries which generated a total $19.06 million in revenues for the fiscal family of 2012. McDonalds dent is one of the ten most popular mark offs worldwide. sustained trade, promotional and public relations activities promote McDonalds brand photograph in order to distinctiate the Company from its many competitors.McDonalds restaurant offer a menu that is uniform to all locations and empha size of its low pass judgment prices which includes its famous burgers, cheeseburgers like the Big Mac, Quarter Pounder with Cheese, several sniveller sandwiches, Chicken McNuggets, french fries, salads, desserts, sundaes, soft drinks and other beverages. Its restaurants also provide eat menu that would include Egg McMuffin, bagel sandwiches, hotcakes, and muffins. Many newfound growths were introduced in the blend in two years in accordance to the managements decision to establish a new menu with more choices that is expect to pull in a signifi stoolt growth in sales as it was already sh admit by the financial results of 2012 which the highest append in US alike(p) sales for the last 30 years.The successful manager constructs a merchandise program designed for optimal ad honorablement to the uncertainty of the business climate. The sexual circle represents the atomic number 18a under control of the selling manager. Assuming the necessary overall corporate resources structures, and competencies that backside limit or promote strategical choice the merchandising manager blends price, product, promotion, channels-of-distribution, and research activities to capitalize on judge demand. The controllable elements can be altered in the long feed and, usually, in the short run to ad expert to changing market conditions, consumer tastes, or corporate objectives. Kazakhstan, from the Kazakh language, means a land of Kazakhs Stan land.Kazakhstan is located in primal Asia, and is the ninth largest country in the world after Russia, China, USA, Argentina, Brazil, Ca nada, India and Australia. It is situated marriage of Uzbekistan, northwest of Kyrgyzstan, northwest of Turkmenistan, east of China, and south of Russia. Kazakhstan sh ars the Caspian Sea with other countries on its western border. As its neighbors in the region, Kazakhstan is a landlocked country and the reciprocal ohm largest republic of the Commonwealth of Independent States after the Russian Federation. Kazakhstan doesnt produce MacDonalds in the market. However it is really good opportunity to knead the fast food to a new market and get to nonice the kitchen-gardening. There must be a reason behind not having worlds most famous fast food corporation in a big country. According to my research it is possible to bring new product to the new market and get success in that market.2.0 Objectives1. To introduce MacDonalds to a new market in Kazakhstan metropolis of Almaty 2. To open 20 franchise by the end of 2015 in Almaty, Kazakhstan 3. To ontogeny sales in fast food in 5 c oming years.4. To increase the customers till 50% by the end of 1st year. 3.0 Issues The a priori framework of this study is based on a number of applicable theories that are discussed in this part. The model which authors constructed in this study integrates cross- ending and 4P merchandising strategy. It can be divided into two parts. Firstly, the authors will analyze some components of culture which lead to the phenomenon of cross culture, such as the different value, languages and customer behaviors. During this process, Hofstedes culture dimensions will be busy as the approach to figure cross-culture better. Secondly, based on the analysis of marketing standardization and adaptation, the marketing salmagundi 4ps as main international marketing strategies will be apply to achieve our research purpose.When marketers discuss international marketing, one of the crucial issues commonly considered is the heathenish differences. In relation to international marketing, cul ture can be defined as the sum total of learned beliefs, determine, and customs that serve to direct consumer behavior in a particular countrys market (Doole and Lowe, 2008, p.73). Such components as beliefs, values and customs are oft ingrained in a society and have obvious differences among different countries. Cultural differences manifest themselves in several ways. Hofstede (2001) distinguishes symbols, heroes, rituals and values. Among thesethe underlying values are invisible. Although values are always invisible and may be profound to measure, they often play an important role when the marketers try to make decisions, which champion to enter a foreign market. Also, according to Mooij (2004), the values that characterize a society cannot be observed directly.They can be inferred from various cultural products (fairy tales, childrens books, or advertising) or by asking members of society to pass water personal values by stating their preferences among alternatives, and the n calculating the central tendency of the answers. When it comes to marketing, the value concept is often used in an ethnocentric way. Besides, values are learned unconsciously, people are only partly witting of them, and measuring values is not an easy job (Lowe et al, 1998). Often, the problems they face are a result of their mistaken assumption that foreign markets will be similar to the home market, and so they can do the business in a similar way.Doole and Lowe (2007) point out that the values of a culture satisfy a need within that society for order, direction and guidance. nuance sets the standards shared by significant sections of that society which, in turn, set the rules for operate in that market. Mooij (2003) considered that the managers of transnational corporations should provide appropriate products according to the local consumer values and get behaviors of a certain market. The product strategy owing to cultural factors, usage factors and legal factors. Hall (1 990) described some countries culture is high-context culture.3.1 uprise Analysis 3.2 Strength MacDonalds has a strong global armorial bearing with its nearest domestic competitor being only half its size, McDonalds is the market leader in both the domestic and international markets. MacDonalds benefit from cost reduction through economies of scale because of its enormous size and its huge global presence allows it to diversify risk involved with the frugal performance of specific countries. In international markets, MacDonalds is well rigid to expand and take advantage of long-term economic growth. MacDonalds also has a strong real estate portfolio. The federations outlets are located in areas that are highly known for visibility, traffic mickle and ease of access. MacDonalds also has exceptional brand recognition. This strong brand recognition creates significant opportunities for the lodge. MacDonalds is able to generate more sales because of its brand recognition.3.3 Wea knessThe food industry is really saturated. As a result of this, MacDonalds has to deal with the prospect of looming market saturation, which could make it delicate to add new outlets. The market is forecast to grow by round 2% per year. Lack of product innovation is some other weakness of McDonalds. The last breakthrough for McDonalds was the Chicken McNugget in 1983, but again the companys new strategy seems to have successfully dealt with the problem through the popularity of its new salads and other new products.3.4 OpportunityMacDonalds sold its Donatos pizza shop back to its founder in 2003 and discontinued Boston market trading operations outside of the US. The company will instead focus on Chipotle grille which is the companys most successful non MacDonalds branded chain of restaurants. Also to increase profitability the company has slowed its expansion of McDonalds restaurants so as to refurbish and change the image of current restaurants and adding new features such as Internet access.3.5 TreatsMcDonalds is exposed to changes in the global economy. The companys aggressive international expansion has left it extremely conquerable to other countries economic slowdown. Foreign currency fluctuation is also another problem global companies like McDonalds. The Fast food industry is bonny an increasingly competitive sector. MacDonalds keeps up with competitors through expensive promotional campaigns which leads to limited margins to gain market share. McDonalds is attempting to differentiate itself, with new formats and new menu items, but other fast food industry are doing the same too.4.0 merchandise MacDonalds in Kazakhstan4.1 Marketing MixThe marketing shuffle can be adjusted on a frequent basis, to meet the changing needs of the target group, and the other dynamics of the marketing environment Barlon and Kimuli (2006). They are as follows product, price, place, and promotion. Having identified its blusher audiences, a company has to ensure a marketing mix is created those appeals specifically to those people. The marketing mix is a term used to describe the four main marketing tools the 4Ps. By analyzing detailed information about their customers, as derived from ongoing market research, the McDonalds Marketing department can ascertain information key to determining the correct marketing mix. * Which products are well received in Kazakhstan* What prices consumers are willing to pay * What TV programmers, newspapers and advertising consumers read and view * Which restaurants are visited Accurate research is essential in creating the right marketing mix which will help to win customer loyalty and increase sales. As the economy and social attitudes change, so do buying patterns. McDonalds needs to identify whether the number of target customers is growing or fall and whether their buying habits will change in the future. Market research considers everything that affects buying decisions. These buying decisions can often be affected by factors wider than just the product itself. Psychological factors are important, e.g. the image a particular product conveys or how the consumer feels when purchasing it. These psychological factors are of significant importance to the customer. They can be even more important than the products physical benefits. Through marketing, McDonalds establishes a prominent position in the minds of customers. This is known as branding.4.2 harvest-feastThe important thing to remember when offering menu items to potential customers is that in that location is a huge amount of choice available to those potential customers with wishing to how and where they spend their money. Therefore McDonalds places considerable emphasis on growth a menu which customers want. Market research establishes exactly what this is. However, customers requirements change over time. What is fashionable and attractive today may be discarded tomorrow. Marketing continuously monitors customers preferen ces. At any time a company will have a portfolio of products, each in a different dress of its cycle. Some of McDonalds options are growing in popularity while arguably the Big Mac is at the maturity stage.4.3 PriceThe customers perception of value is an important determinant of the price charged. Customers draw their own mental picture of what a product is worth. A product is more than a physical item it also has psychological connotations for the customer. The danger of utilize low price as a marketing tool is that the customer may feel that a low price is indicative of compromised quality. It is important when deciding on the price to be fully aware of the brand and its integrity.4.5 PromotionsThe promotions aspect of the marketing mix covers all types of marketing communications. One of the methods employed is advertising, sometimes known as above the line activity. Advertising is conducted on TV, radio, in cinema, online, using poster sites and in the press for example in new spapers and magazines. What distinguishes advertising from other marketing communications is that media owners are paid forwards the advertiser can take space in the medium. Other promotional methods include sales promotions, point of sale display, merchandising, direct mail, telemarketing, exhibitions, seminars, loyalty schemes, entry drops, demonstrations, etc.4.6 PlacePlace, as an element of the marketing mix, is not just about the physical location or distribution points for products. It encompasses the management of a range of processes involved in bringing products to the end consumer.