McDonald’s

1. McDonald’s Presented By: Bria Goodall Adrea Truijillo Kyle Farrow Daniel Klein Mariem Loubani

2. Agenda • Global Marketing Today • Looking At The Global Marketing Environment • Deciding Whether to go Global • Deciding Which Markets to Enter • Deciding How to Enter the Market • Deciding On the Global Marketing Program • Deciding On the Global Marketing Organization

3. McDonald’s Global Marketing Today • McDonald's does business in more than 100 countries around the world • “McDonald's brand mission is to be our customers' favorite place and way to eat and drink.”

4. Major International Marketing Decisions Looking at the global marketing environment Deciding how to enter the market Deciding which markets to enter Deciding whether to go global Deciding on the global marketing program Deciding on the global marketing organization

5. Looking at the Global Marketing Environment • The International trade System • Economic Environment • Political-Legal Environment • Cultural Environment

6. The International Trade System • trade system • tariffs • quotas • exchange controls • nontariff trade barriers

7. The World Trade Organization • The General Agreement on Tariffs and Trade (GATT) • World Trade Organization (WTO)

8. Regional Free trade Zones • Economics communities • European Union (EU) • North American Free Trade Agreement (NAFTA) • Central American Free Trade Agreement (CAFTA)

9. Economic Environment Four types of industrial structures 1. Subsistence economies 2. Raw material exporting economies 3. Emerging economies (industrializing economies) 4. Industrial economies Income Distribution

10. Political-Legal Environment

11. Cultural Environment • The Impact of Culture on Marketing Strategy • The Impact of Marketing Strategy on Cultures • http://www.youtube.com/watch?v=PT1jKBsMuV8

12. Deciding Whether to go Global • Can the company learn to understand the preferences and buyer behavior of consumers in other countries? • Can it offer competitively attractive products?

13. Deciding Which Markets To Enter 1.) Define international marketing objectives and policies 2.) Decide what volume of foreign sales it wants 3.) Choose how many countries to market 4.) Decide on the types of countries to enter 5.) The company must carefully determine each international market Goal: Determine the potential of each market • The marketer must decide which markets are offering the greatest long-run return on investment

14. Deciding how to enter the market

15. Deciding how to enter the Market Exporting: • Direct • Indirect

16. Joint venturing • Licensing • Contract Manufacturing • Management Contracting • Joint Ownership

17. Direct investment • Higher risk • Potential profit • More commitment • More control

18. Deciding on The Global Marketing Program • Standardize Global Marketing- Uses the same marketing strategy globally. • Adapted Global Marketing- Adapts its marketing strategy to the region.

19. Product • Straight Product Extension- No changes to the product. • Product Adaptation- Changing the product to meet local needs. • Product Invention- Creation of new products to adapt to foreign markets

20. Product Examples

21. Promotion • Use the same strategy or differentiate for each area. • US website- http://www.mcdonalds.com/us/en/home.html • Japanese website- http://www.mcdonalds.co.jp/

22. Price • Company's should set prices based on the economy of the foreign market. • Uniform pricing • Standard mark up pricing

23. Distribution Channel • Whole channel view • Distribution methods change based on the foreign market. International Seller Channel between nations Channels within nations Final user or buyer

24. Deciding on the Global Marketing Organization •Export department- Manager and assistants •International Divisions- Marketing, finance, research, etc… • Geographical organizations • World product groups • International subsidiaries •Global Organization- Top corporate management

25. Global Organization •32,000 outlets •117 countries • http://www.youtube.com/watch?v=LzliKFK_W4c

26. Questions?

27. References International Franchising. (n.d.). :: AboutMcDonalds.com. Retrieved April 17, 2014, from http://www.aboutmcdonalds.com/mcd/franchising/international_franchising.html Kotler, P., & Armstrong, G. (2014). Principles of marketing (15th ed.). Upper Saddle River, N.J.: Pearson. Argentines up in arms as McDonald's runs out of ketchup amid peso pressure. (n.d.). The Independent. Retrieved April 18, 2014, from http://www.independent.co.uk/news/business/news/argentines-up-in-arms-as-mcdonalds-runs-out-of-ketchup-amid-peso-pressure-9106651.html Coffee Sustainability :: AboutMcDonalds.com. (n.d.). Coffee Sustainability :: AboutMcDonalds.com. Retrieved April 18, 2014, from http://www.aboutmcdonalds.com/mcd/sustainability/signature_programs/coffee_story.html

28. Cont. Definition of political legal environment?. (n.d.). WikiAnswers. Retrieved April 18, 2014, from http://wiki.answers.com/Q/Definition_of_political_legal_environment?#slide=4 McDonald's Egypt :: Benefits. (n.d.). McDonald's Egypt :: Benefits. Retrieved April 18, 2014, from http://www.mcdonaldsegypt.com/home/en/page/page/251 McDonald's to Use Eco-Labeled Fish: We're Lovin' It. (n.d.). EDFish. Retrieved April 18, 2014, from http://blogs.edf.org/edfish/2013/01/29/mcdonalds-to-use-eco-labeled-fish-were-lovin-it/ What Is International Trade?. (n.d.). Investopedia. Retrieved April 17, 2014, from http://www.investopedia.com/articles/03/112503.asp

29. Cont. What Is a Cultural Environment. (n.d.). - Ask.com. Retrieved April 18, 2014, from http://www.ask.com/question/what-is-a-cultural-environment What Is the Definition of Economic Environment. (n.d.). - Ask.com. Retrieved April 18, 2014, from http://www.ask.com/question/what-is-the-definition-of-economic-environment Relph, M. (2012, october). McDonald’s entry into india. Retrieved April 18, 2014 from http://www.executivetravelmagazine.com/articles/mcdonalds-entry-into-india (Joint venture) Patton, Leslie. "McDonald's U.S. Same-Store Sales Fall for Third Month."Bloomberg.com. Bloomberg, 14 Feb. 2014. Web. 21 Apr. 2014. <http://www.bloomberg.com/news/2014-02-10/mcdonald-s-january-sales-top-estimates.html>.