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the customer. It includes the coordination of four elements called the 4 P's of
marketing:
(1) identification, selection and development of a product,
(2) determination of its price,
(3) selection of a distribution channel to reach the customer's place, and
(4) development and implementation of a promotional strategy.
Marketing is based on thinking about the business in terms of customer needs and
their satisfaction. Marketing differs from selling because (in the words of Harvard
Business School's retired professor of marketing Theodore C. Levitt)
"Selling concerns itself with the tricks and techniques of getting people
to exchange their cash for your product. It is not concerned with the values that the
exchange is all about. And it does not, as marketing invariable does, view the
entire business process as consisting of a tightly integrated effort to
discover, create, arouse and satisfy customer needs." In other words, marketing has
less to do with getting customers to pay for your product as it
does developing a demand for that product and fulfilling the customer's needs.
Cultural MarketingA specific type of marketing that is geared towards promoting a message to a
certain group of potential purchasers from a particular culture or demographic
cross- cultural marketingA typical definition of cross-cultural marketing, at least in the academic sense,
often focuses on the differences between communication styles (or needs) among
members of different cultures.
Cross-cultural marketing is international marketing on a personal level. It means
considering cultural differences when planning marketing campaigns and media;
realizing the need for a balance between localization and globalization; and most
importantly, implementing strategies that respect differences while seeking to unify
brand messages.
Cross-cultural marketing of Mcdonalds1. McdonalsMcDonald's is the leading global foodservice retailer with more than 32,000
local restaurants serving more than 58 million people in around 130 countries each
day. 70 percent of the restaurants worldwide are owned and operated by
independent, local businessmen and businesswomen.
In India, the brand is managed by two business entities...
Connaught Plaza Restaurants Private Limited, led by Mr. Vikram Bakshi, JV
Partner and Managing Director, North & East India
Hardcastle Restaurants Private Limited, led by Ms. Smita Jatia, Managing
Director, South & West India
McDonald's philosophy of QSCV (Quality, Service, Cleanliness and Value) is
the guiding force behind its service to the customers in India. Following its
philosophy of being sensitive to local food and cultural preferences, India was the
first country in the McDonald's system where it served non-beef and non-pork
products. More than 70 percent of the menu in India has been locally developed
with complete segregation of vegetarian and non-vegetarian products right from
the food processing plants to the point of serving the customers.
McDonald's commitment to its Indian customers is evident even in development
of special sauces that use local spices and chillies. The mayonnaise and all other
sauces are egg-less. McDonald's also pioneered the establishment of Cold Chain
across India which helps maintain freshness and nutrition in every product.
McDonald's regular scrumptious menu includes wide range of products like
4.
Indianisation of MenuWith the opening of the first McDonalds restaurants in India- there is much
that is consistent with other McDonalds restaurants around the world, such
as the quality of the food and the attention to service.
The dedication to local cultures is not new for McDonalds. For the past 50
years, McDonalds has opened restaurants in more than 120 distinctly
different countries and cultures. With guidance from its local
partners, McDonalds is able to adapt- where necessary-its menu and
restaurant operations to complement existing eating-out options.
McDonalds local owners understand what their customers want perhaps
more importantly, what is acceptable within local customs and values.
There is much, too, that is very different- such as the first beef-less and
pork-less menu in the world and
special product formulations to cater to Indian culture and palate. Vikram
Bakshi, the joint venture partner
for McDonalds India, says We know the Indian culture, because we were
born in it, inherited its
richness, and respect it greatly. It is the respect for this culture and the
sentiments of many of our
customers, that we do not serve any beef and pork items in our restaurants.
McDonalds commitment to its Indian customers is evident even in
development of special sauces that use local spices and chillies. The
mayonnaise and all other sauces are egg-less.
Vegetarian products, Halal and non vegetarian foods for its customer is a unique
and successful idea in India. Kids like mcdonalds in India as they are giving free
toys to customers who buy happy meal deals.
When McDonald's set up shop in India in 1996, it ditched beef and introduced the
Maharaja Mac, originally made with lamb. Chicken patties are used on the
sandwich now, but even more popular is the vegetarian McAloo Tikki, a burger
made from potatoes and peas. To allay strict dietary concerns, the carnivorous and
vegetarian cooking is done separately, by different sets of workers: Those cooking
the veggie meals wear green aprons; people handling meat wear red.
Mcdonalds has a slogan. Think globally and act locally. Mcdonalds sell
standardised product. the taste make up, ingredients, looks, weight etc will be
similar In one part of the world to the other part of the world. Cheese Burger in
United Kingdom will taste similar to a cheese burger in USA. Think globally and
act locally can be proved in India as Mcdonalds in India has changed its menu list.
Halal Burger and McVeggie burgers have been introduced looking to the customers
believes in India. Similar experience has been exercised in Middle east and Fiji. In
Middle east eating of Bacon is banned by government. Halal food is served in
Middle east. McVeggie Burger in India will taste the same in comparison to
McVeggie burger in Fiji. Mcdonalds sell standardised products. All the products
should be looking, tasting, weighing and prepared in the same way across the
globe. McVeggie burger was prepared in India after Research and Development
was condcucted purely in India.
ChinaThe history of McDonalds in China dates to the year 1992 when the first restaurant
opened in Beijing, close to Tiananmen Square.
McDonald's, on the other hand, sticks mostly with classic sandwiches. After
introducing regionally specific items, such as the rice burgers it serves in other
Asian countries, and trying to compete with KFC on the chicken front, it found that
its Chinese customers preferred to order Western foods. So it played up the
burgers, rolling out a suggestive ad campaign with the slogan "Feel the beef."
But not everything is exactly the same as it is in the States. A version of the
Quarter Pounder (called the Big N' Beefy) is served with cucumbers rather than
pickles and comes with a spicier sauce. If you don't want fries, you can order a
corn cup, a side dish that has caught on at other Asian branches. For dessert, you
can choose between pineapple or taro root pies.
McDonalds recently introduced two small half burgers that come in a tiny box. a
black and white hamburger combo that looks remarkably like the ancient Yin-Yang
symbol!
for childrens parties. She also keeps track of childrens birthdays and visits them
at home.
McDonalds has absorbed the traditional Chinese cultural elements of
showing respect, recognition, understanding, assimilation and amalgamation, while
maintaining the substance of the Western culture of efficiency, freedom,
democracy, equality and humanity, according to China Daily
In China, McDonald's features an all chicken burger using thigh meat as opposed
to the standard breast meat. The thigh meat is preferred in China over breast meat.
There is also a Chinese New Year meal which includes the Grilled Chicken Burger,
curly fries, and a horoscope of the 12 animals of Chinese astrology. China also has
walk-up express windows known as McExpress which sells drinks and ice cream.
Japan-
For its Japanese stores, McDonald's has found that novelty is the way to go, and
the company has introduced lots of special menu items. You can pair your Teriyaki
McBurger, made from pork, with a bag of Seaweed Shaker fries (add the seaweed
powder yourself). You can get a Croquette Burger or a Bacon Potato Pie. Probably
the most distinctively Japanese dish is the Ebi Filet-O, a fried shrimp patty on a
bun ("ebi" means shrimp in Japanese). McDonald's helped popularize the dish by
signing up model Yuri Ebihara -- nicknamed "Ebi-chan" -- to do a series of print
ads and commercials.
Japan features a Teriyaki burger, shrimp nuggets, shrimp burgers, green tea
flavored milk shakes, and more. The Japanese prefer to have their hot dogs served
for breakfast with relish, ketchup, and mustard. McDonald's opened new multifloored restaurants in Japan where it features a caf atmosphere on the first floor
and the traditional fast-food experience on the second floor. The company plans to
eventually expand this concept to over 300 restaurants.
The Japanese ideals, exemplified through the obent, touch on almost all of the
points Harris lists about Asian culture. Allison continues on Japanese culture and
says, To be Japanese is to eat Japanese food. Rice is so symbolically central to
Japanese culture that Japanese say they can never feel full until they have
consumed their rice at a particular meal or at least once during the day. (Allison,
2008:225) And yet, Fujita thought he had something when he decided to open the
first McDonalds in Japan.
Food preferences, in the past, were considered culturally oriented. With the
globalization and success of franchises abroad, McDonalds has proven that tastes
can change. The corporate culture of the organization affected how the
organization coped with competition and changed. When the first franchise opened
in Japan, the menu consisted mostly of items similar to those in the United States.
In effort to increase sales, McDonalds restaurants experimented with different
food items such as Chinese fried rice, curried rice with chicken, and fried egg
burgers. (Ohnuki-Tierney, 2007) The menu adjustments are examples of
McDonalds playing to one of its guiding principles: a commitment to exceeding
customer expectations.
Consumer taste was not the only challenge McDonalds had to deal with in Japan.
Commensality, eating together at one table, is central to the Japanese. One of the
most important roles of food is bringing people together and creating a sense of
community. Rice, which is delivered to the table in a common container and served
to everyone at the table, is the essence of a food that bonds families and creates
social relationships. McDonalds hamburgers, conversely, are meant to be eaten
individually and cannot be shared. Not only does the food in McDonalds
restaurants fail to encompass the characteristic of commensality, but the physical
arrangement of the restaurants in Japan further de-emphasize this feature. The
original franchise in Ginza, Japan had neither tables nor seats; there were counters
in which customers were expected to eat their meals on the go. As McDonalds
expanded in Japan, restaurants gradually included tables in the layout. Usually on
the first floor of restaurants there is a small space for ordering food and seating
areas are on the second and third floors. Still, restaurants have more counters with
stools facing walls than they do tables with chairs.
The final obstacle the Japanese posed for the expansion of McDonalds was their
perception of the food as snacks. Any food that consists of bread is not deemed
filling, and hamburgers have become a snack that is consumed between meals.
McDonalds diversion from commensality and its supply of non-traditional
Japanese food coupled with the consumers perception of the food as a snack has
created an environment suitable for young people to come and hang out.
In Japan, the national culture seems to have had a greater impact on the
organizational culture than the reverse. They have not conceded to the traditional
tastes of American hamburgers, but instead prefer rice burgers, a slice of meat
between bun-shaped rice patties. Though it has become progressively more
acceptable by the Japanese to eat at McDonalds, it has not become a place where
lunches or dinner by the masses is consumed. Den Fujita concedes: McDonalds
has gained ample recognition among Japanese consumers. However, our image is
that of a light-meal restaurant for young people. We are not regarded as a place for
adults to have dinner.
Mcdonals in various other nations1. In Middle East it has adapted to the needs of the locals and introduced Mc
Arabia which is a chicken grilled sandwich served on a flatbread as Arabs
prefer. For Islamic countries such as Pakistan, Malaysia and Morocco it has
obtained the certification for halal food and has advertised it on all its menus
so Muslims and religious groups dont make an issue out of it. Ramadan is a
sacred month for Muslims and therefore the Moroccan menu offers dates,
milk and cookies.
2. In tropical countries it has added guava juice to its menu for consumers to
beat the heat while it offers beer to its consumers in France and Germany as
the local culture is to drink and party.
3.
In China, Mc Nuggets are offered with chili garlic sauce (very much liked
by Chinese).In Israel McDonalds had to change its menu to respect the
Cross-cultural Advertizting
Also different advertisements around the globe remind us that were still quite far
from a borderless world, and failures by both large, multinational companies and
countless small- and medium sized enterprises are a great testimony to his position.
Legal and administrative barriers continue to exist even in politically integrated
areas such as the European Union, relevant economic differences between
countries persist, and probably most importantly cultural differences are as a
alive as they have ever been (as this blog tries to document). Looking at these
McDonalds advertising from various countries, It reminded again of two things:
first, cultures are still having a strong influence over the marketing-mix; second,
McDonalds is doing a pretty good job at addressing these differences. Lets have a
look at this small selection of examples below. What we see on the first one is not
surprising. We all know that religious beliefs make the marketing of beef burgers
next to impossible in India; product adaptation becomes a necessity. McDonalds
has therefore added items such as the Chicken Maharaja Mac or the McAloo
Tikki to its Indian menu. So far so good. When it comes to promotion, the next
example (second from the left) shows how McDonalds is using a national
celebrity athlete, basketball player Yao Bing, in its advertising in China. As is
common in testimonial advertising McDonalds tries to transfer the positive image
associated with Yao Bing onto the McDonalds brand. Being both collectivistic and
highly status oriented, China very willingly accepts someones endorsement who is
a source of national pride and has unparalleled athletic and commercial success.
Doing this, McDonalds is showing a lot of cultural intelligence. And now for a
European example Austria. As I have recently posted in a different context,
Austria is a relatively risk-averse culture. As far as consumer behavior is
concerned, this results in a preference for tested products, products that have thirdparty certifications, and traditional products that can be trusted. And which
products could be trusted more than products of Austrian origin? McDonalds has
picked up on this and is very openly playing the country-of-origin trump card
100 % beef from Austria, 100 % Austrian potatoes (second image from right), and
using Austrian slang words that wouldnt even been understood just a few miles
across the border in Germany Pipifein which means something like Great
(first from the right). Well done,
KFCIndiaKFC was the fastest-growing major chain in India in 2012, recording 45% value
growth year-over-year based on a 41% increase in outlets (a net addition of 62).
This level of growth has helped KFC become the third-ranked brand in India, a fact
that is particularly notable considering they were a relatively late entrant in terms
of widespread expansion. In 2003, KFC had just 3 local outlets, putting them well
behind Baskin-Robbins, Dominos, Pizza Hut, and McDonalds, all of which had over
50 outlets already in operation, and were growing quickly.
KFCs success has come as a combination of clever localization, savvy pricing
strategies, successful consumer education, and a menu that appeals well to the
changing preferences of sophisticated, urban Indian consumers. KFCs entry into
the market was slow, and despite opening three initial outlets as early as 1995, the
chain had reached just five units nearly a decade later. At that time, the market
posed significant logistical issues, and sourcing enough poultry, beef and other
products continues to be a challenge even in 2012. Back in the 90s, local leader
McDonalds famously spent years building its own India supply chain from scratch,
training local farmers and designing a cold chain that would be robust enough to
handle its needs, while Yum! Brands focus was firmly on building its now-dominant
presence in China. The chains investment in the latter market has paid off
handsomely, but it also left the brand with some catching up to do.
Meanwhile, Indian consumer preferences were changing. Chicken consumption in
India may be more common than beef, but meals are typically carbohydrate-heavy,
and many local consumers prefer a vegetarian diet. Further, the chicken that is
eaten is traditionally taken in the form of tandoori, a fiery-red, spicy grilled dish
thats eaten alongside rice and vegetables. When the time was finally right for
expansion, and Indian consumers were broadening their foodservice horizons
through travel, the internet, and generally greater exposure to global cuisine, KFC
began expanding aggressively and adapting their menus to bridge the gap between
familiar and innovative. By 2012, the chain had reached 220 outlets and added
spicier versions of their chicken, including a Fiery Grill flavor that mimics the red
hue and hot spice of traditional tandoori, and Curry Chicken, modeled after popular
local curries.
In addition to promoting its chicken items, KFC also added plenty of vegetarian
options. The chain now serves fried vegetable strips and burger patties made of
either potato or vegetables, and many new menu launches have been accompanied
by a similar vegetarian item, such as the Zing Kong beef burger meal combo and
Veg Zing Kong combo, both launched in mid-2012.
Finally, KFC has also achieved success through the use of its pricing strategy, which
was designed to help turn what appeared to many as a special-occasion novelty
restaurant into an everyday option. In recent years, KFC has taken steps to
drastically reduce its prices, launching a Streetwise branded menu targeted to
students who have very little income but tend to be willing to spend on foodservice
at the right price. The menu starts with items as low as Rs25 (US$0.40), and was
marketed with a youthful campaign that promoted the range as a better alternative
to the university dining hall at similar prices. In 2013, KFC followed up with a
Wow@25 marketing campaign and augmented reality smartphone app. Cashstrapped students can scan any small bill with their phones, and the app suggests
low-priced items off of a new KFC Wow menu that fits within their budget.
Moving forward, there are a few key lessons other brands can take from KFCs
success. First, the importance of menu localization cannot be overstated, especially
in a market with a well-developed dining culture of its own. Indian consumers like
very spicy food, and they are as diverse in their dietary preferencesmuch of which
stems from local religious and cultural traditionsas they are in terms of income
stratification. Successful brands will need to take significant steps to bridge the gap
between offering a new, exciting dining experience and one that will be familiar
enough, and attainable enough, to entice consumers to dine outside of the home.
Second, operational challenges in India are just as important as customer
acquisition, and operators who arent proactive about building their supply chain
will likely find success impossible. Finally, in a country with over a billion people,
targeting a concepts appeal to the right customer base is still important. KFC has
had success using pricing, product mix, and branding to target young people, a
customer base that can expand with the chain in the future as the demographic
grows both in size and in purchasing power. By 2030, India is expected to surpass
both the US and China to become the home of the largest consuming population in
the world, and while the right consumer base will continue to grow larger, the
importance of carefully targeting those consumers and fostering their future brand
loyalty will be no less paramount.
China-
would not. The Chinese KFC menu may include fried dough
sticks, egg tarts (which Shelman raves are "to die for"),
shrimp burgers, and soymilk drinks, as well as foods tailored
to the tastes of specific regions within China.
The large selection of menu items is meant to appeal to the
Chinese style of eating, in which groups of people share
several dishes.
targeting those with a busy lifestyle who have no time to cook but still wants
to enjoy a healthy, home style meal.
KFC in China positions itself as the fast food restaurant that not only offers
delicious famous Kentucky chicken and burgers, but also healthy home
style Chinese meals that makes consumers feel right at home.
From these, its evident that KFCs successful adaptation to the Chinese
culture is the main driving force behind its marketing success in China.
4. There are only medium and small sized drinks (called "S Size" or
"M Size" as is common in all Japanese fast food restaurants).
10.
The packaging of the actual chicken is much improved with
special ribbed bottom boxes that stop the chicken from swimming
in it's own oil during transit.