INTERNATIONAL MARKETING STRATEGY

POST GRADUATE DIPLOMA IN MANAGEMENT

Submitted to,
The Institute Of Commercial Management (ICM),
Hampshire, England, U.K
Behalf of
Director: Brendan Coyle
International College Of Technology (ICOT), Dublin.
on
27/07/2015
Submitted by,
Mohammed Azeem Azeez
Student number: 2222802
Introduction :
An organisation markets its goods or launch new services domestically or internationally, the
term of marketing still applies. Domestic Marketing and International Marketing have wide
difference in effect. First of all Markets and Marketing is growing to International in nature
and managers around the world need to analyse properly before starting or introducing their
Organisation in new country. It is very essential for Organisation to study and aware of
complexity and diversity in International Marketing and Managers need to understand
complete effect by building their skills, aptitudes and knowledge in marketing level to achieve
their targets.
In short, means that organisations have to study about the market, develop products or
services , need to start their branch in city of particular state/county that satisfy customer
needs, affordable price and wants, develop the "plan" for marketing and satisfy its own
objectives in order to satisfy customer on a continuing basis. Because without customer
satisfaction , business won't work, for example if a customer gets satisfied by our product and
services he/she may be the customer ,we make sale for 5000 euro or more in a year. So every
customer is very important in International marketing.
Profit is still much essential but its not an end by itself, keep in mind or as objective for
developing economies, where the environmental conditions, product value, consumer
satisfaction and systems are not such that allow a quantum hike to postmodernism in
International marketing. The development of international Marketing and partnerships could
be done by giving tender notice or franchise requirement notice , so local party who is in
interest may contact our Organisation to support and build our capacity and capability in
research, education, sector, enterprise from them we can build/introduce new path to
International Marketing in their country.
*Here in this Assignment I would like to select Mc. Donalds, and its entry to Indian Market as
focus on geographical market or region.
McDonalds is a leader in convenient foods and beverages, they are famous and trusted food
stores in Europe and America with registeration of about $23 billion and over 1.59 million
approximate employees serving the customer’s world-wide. The corporations increasing
success has been based on their performance as well high standards of marketing strategies,
competitiveness, determination, trusted, commitment, advertisement customer satisfaction
and the personal and professional integrity/destiny of their people, products and business
practices which made keep on successful in every franchises .

(The empirical data for this study consists of a single case involving the fast food retailer,
McDonalds and more specifically the products. The data on the case study was obtained from
the official website (www.mcdonalds.com) as at June,2015.This assignment presents the
empirical findings and thereafter interpret the research findings of international marketing)
Pestle Analyses:
Pestel is an analysis of the external macro and micro nature or environment in which a
business or market work operation. Pestel is considered as important stands for several
factors includes political, economical, social, technological, customer, location,
environmental factor and legal formalities ( Information of Pestle Analysis based
from Lovely professional University, Jascheptan Kaur, 2006).

Political Factors
Mc. Donald is highly influenced by Politics by the Individual countries policies. In United States
or Europe, the state gives probability to health implications , health inspectors to check for
food safety and harmful effects in food court, similarly India also have such health inspectors
to check, but first thing need to know is Political hold ,without satisfying any local political
leader , market or store can't work in India, they have good power and local support to shut
down our franchise. Like other Business sector, the issues of employment procedures as well
tax obligations have to be followed by Mc. Donalds to succeed as foriegn market in India.

Analysis
So we need to satisfy and get support of local politician in targeted area/region. Suppose if
plan is to start Mc. Donald going to start in place name Trivandrum, India. We should
approach to local authorities to get permission because its International name Mc Donalds,
as per Indian law they charge more tax for international franchise than any local business
name. In case if any politician came to us for party funds, we have give some offer, so they
won't play anything against us. By this method , company would be able to adopt and
establish friendly relation with Government autorities and have good realtionship to run
business. Also Mc. Donalds should approach and introduce workers safety, training, bonus,
insurance, and all the legal liabilities as per Indian labour laws.

Economical Factors

Mc. Donalds should take in consideration about economical factors before they start new
franchise in another country, India is an exceptional country ,fear of hit by inflation, changes
in currency rates as economical factors though they have experience to face these factors.
There are issues based on economical environment especially problems regarding customers
response to fundamentals and these could effect the general sales overall.

The company stock supply is important when it is international supply , in such case stock
exchange rates comes into consideration , needed to guarantee success by Mc. Donalds for
foreign operation. The company should be cognizant about tax requirement for their
operation set up by Government laws.

Analyses:
Mc. Donalds should be aware and have proper research about the fluctuations and sudden
hike or fall in exchange currency rates which already did in India. However in case of India
companies or their franchises are capable of buying to constant level of prices arised by Mc.
Donalds.

Social – Cultural Factors

There are different types of personalities with different customers, Mc. Donalds need to
indulge with all the characters. Deponds on dining need, its proved that United Kingdom and
India have given enough markets for company. In case of Mc. Donald they established good
understanding with customer need and in markets. Its major influence of understanding
performance in an organistaion for international market.

Analysis:

A well developed research anaylsis have to be established to study about good customs,
morals, public policies and well drafted market according to countries culture and society.
Europaean or American pork as main meal for menu , but in case of India most of the
customer choose vegetarian or mutton/beef instead of pork, and pork is almost completely
replaced in Indian menus. Because of consideration of customer culture , pork is not supposed
to eat instructed in their religion. Mc. Donalds will qualify this customer need by
understanding their culture for their establishment.

Technological factors:

The name Mc. Donalds came to know all over world not only by the quality and taste of
product/food but also through media/advertisement. The key tool for advertisement is wide
and special key to establish more customer for their business, this can be done by facebook
adds, here by placing companies offer and deals is advertised so that 15,000 people will know
by spenting £18 , it can also be reached to millions like this can do by facebook adverts or by
google adds. In India Collaboration or tie ups with Television channel , newspapers company
deals or offers can be published or advertised, also can make advertising in websites like olx.in
or locanto which is famous for website advertisement.

Analysis

Proper communication with respect to Cost-effective, attractive interactivity and time effects
are basics to find suppliers. Now there are lot of IT sectors and operators, Mc. Donalds can do
operation by having tie up with these IT sectors to have in contact with headquarter in
particular country so that they look into inventory operations by IT sector for real time
advertising technology such as texting to phone numbers of customers or suppliers for
establishing of Mc. Donalds.

Environmental Factors:

The operations plan of Mc. Donald’s is responsible for the influence of social and
environmental factors. This leads to effect environment if certain substances used as
container. The reason behind is by employ of non-biodegradable substances like Plastic bags
,Styrofoam coffers for meals, drink glasses like paper glass. Mc. Donald’s franchises should be
aware of such less quality plastic bags and Styrofoam which causes abuse/ bad effects to
environment.

Analysis:

The company should have proper analyses about the government regime regarding the waste
disposals and substances used to contain food. The Mc. Donald’s Headquarter should be clear
by employ of bio-degradable substances by avoiding or use less of these substances. The
franchise will definitely go to buy such above substances because they are cheap in price. So
this is the Head quarter or Mangers responsibility to make in control and aware of side- effects
to environment. Here clearly Analysed regarding this issue that in India government has
banned using plastic bags less than 30 microns. Thus , company or franchises in India should
only use plastic bags more than 30 microns and avoid some plastic cups as well. It is suggested
to have paper bags for carrying food container. By this company will be free from loosing
license and fine built in our head.

Legal Factors :

There are several corporate legal regulation , the company is responsible to follow all their
laws without failing. The reputation of Mc. Donald’s is high manner , so should be clear about
customer laws and choices, even consumer court is there in India for handling problems with
customer, must be aware of this factor. In that way, every customers have their own
rights/freedom to have their own choices to have in their meal or what to buy in their meal.
Also another important thing is Muslim countries like U.A.E or Pakistan government have
banned of having pork from their menu, in case of Europe its not having any issue with pork.
Here in our case , In India pork is not banned, only very less percentage of population prefer
5% of 100% but still there are prime reasons to eliminate pork , and include/involve mutton
or beef instead in their meat selection of food menus. Other than this there are some legal
tax obligation, the company or manager is responsible for considering product quality,
employment standard and safety. By following all these facts, and policies , the company will
run smoothly or else it will be hard to achieve targets.

Analysis :
Inorder to protect Mc. Donald’s reputation and their name in India, it is must to get certified
with organisations who checks food standard, quality, and labour laws. For this Indian
Standard Organistion (ISO) is there, from them need to get certified by stating that we have
all qualities up to standard level by protection all laws. Customers will get trust in Mc. Donald’s
, believe the food quality and materials used in right way. Another prime reason to have
HALAL sign or accredited certificate is for getting more customers. Seriesly in India this will
help in achieving objective to success.

3 ) Evaluation of key aspects of Market Research :

The key aspect or difference between domestic and international marketing is entry of
international company into flexibility and expansion in another country and operating it. The
manager who is in post or in charge should take responsible and aware of all complex factors
, laws , segmentation , social and cultural factors its must to have proper study , also have
steps for implanting international marketing management in particular country. Mc. Donald’s
in Indian market launch in 1996, there are over 312 restaurants in country all over today. They
introduced happy menu in 2003 for expansion and promotion. In order to evaluate the
aspects of international market and various trends of market research through social ,
segmentation, cultural factors is depicted in figure 3.1.

Social/Cultural factors :

Other than which already mention above PESTLE about social and cultural factors, their
influence are immense. Should have keep in mind about social difference, religion and culture
all effects of customer perception and behaviour of customer in another hand. If failed to
study properly about social and cultural dimension of market will lead to complex in
managing markets , Mc. Donald’s in a country like India. It had to deal with market having
30% pure vegetarian and about 45% prefer vegetarian customers, there is prohibited not to
eat pork or beef as per their religion and moreover a hostility to frozen products like fish and
meat. Generally most of customer choose with spicy food with all variety unlike food in
Europe and America. In India most of customer about 40% prefer vegetarian burger, in
kitchen make sure that will all sauces and Indian spice for taste to satisfy customers. However,
these are some research methods to bring up business and their expansion in such a country
like India.
 Figure 3.1, Influence/Evaluation of International Marketing. (proper
observation from website )

Social Factors:

Social factors means all comes under socially affects business socially. International
marketing works in a different society not from where it started so with different
factors of family, education and religion affects business.

It includes the culture with different personality, was educated or lived in, and people
with whom they interact.

The social factors like buying nature, consumption habit of customer which deponds
on customs and tradition where they belonging to built themselves. Also with tastes
of their choices , languages and their preferences, etc, are the factors which affects
business. Moreover , India is a country with different culture ,5 different religion, 28
languages, different nature combined and mixed together.

Cultural factors :

The Cultural factors which includes means environment which affects behaviour, basic
value and their preferences of over-all society which affects the international
marketing strategy and decisions.
 A set and way of belief, customs, practises and behaviour which exists within a
population especially in India matters.

International company often do examination before entering into marketing, but in

case of Mc. Donald’s have already grabbed their name in India , proved their quality
and trust by having more than 312 branches (Mc. Donald’s history India, Hardcastle
restaurant, Government of India Revenue Information) in all over India to achieve
their targets in market, only fact is selection of region may vary.

These are the social-cultural factors which have to be taken under consideration before
entering to India. (Source : Isobel Doole and Robin Lowe in International marketing 5th edition,
2008).

Mc. Donald’s – Company which got benefit due to evaluation and following social-economical
environment in India.
Mc. Donalds made segment since 1996,(Mc. Donald’s history India, Hardcastle
restaurant) according to the demographic factors in society of India.

Mc. Donald’s prepare or introduce the food according to religion

Mc. Donald’s educate and try to provide in their style rather than Indian Traditional
food, It worked in India for new generation.

Indian people taste have changed and they are ready to taste new food which is
beneficial to Mc. Donald’s.

Mc. Donald’s maintained their reputation and food quality that believed to have Total
Quality Management.

Mc. Donald’s give nutritional guide about their product and meals, which makes
customers in India more trust, Benefited to Mc. Donald’s.

Their food is affordable and convenient to every classes in society.

Mc. Donald’s uses eco-friendly culture ,environment and materials, benefits social
factors in India.

Mc. Donald’s uses new technology and methods for their promotion.

These are all the factors and benefits which already implemented by Mc. Donald’s in India for
their expansion.
4. ) Analysis of Standardisation or Adaption used for Market Expansion to enter in India

With the aim of standardisation or adoption with some offerings companies enter into
marketing by introducing some services or products. The main Objective of companies is to
expand their business in International level.

The Standardisation of products have to changed according to customer culture and

expectation is increasing and becoming a big issue for managers in whole globe area. Due to
today facing issues, International marketing from 21st century onwards grabbed attention
regarding marketing research , the administration strategies have been simplified and benefit
cost methods have approached to make attractive choices in most of the firms in International
Marketing.

Multinational Companies (MNCs) in another hand started considering influential aspects for
market product adaptation. Today, the standardisation versus adaptation is no longer a better
option instead considered combination of these two factors in given market at given time in
globalised world. But most of MNCs initially didn’t agree to have combination of both intermix
standardisation and adaption. Then later after findings and illustration of research, concluded
not an all-or nothing proposition of either choice of standardisation or adaptation, but it’s
great matter of degree (University Högskolan Väst , Nampungwe and Maria, 31 May 2012)..
By proper understanding of respective region of market , is basic to target their
standardisation or adaption by Multinational Companies.
Horska et al (2007) said about standardisation and adaptation ,as the following:
standardization policy – can help keeping the costs low, but the drawback may be that the
product might not satisfy the customers. The adaptation policy – modifying the physical
characteristics or attributes of the product and its packaging to fit the needs of different
segments and countries better – may increase development, manufacturing, packaging and
distribution costs. End customers – human beings – develop a sense of belongingness to a
worldwide culture. This happens in international marketing when exporting.

Adaptation of International Market

By referring several authors, not in a suggestion of pioneer innovation , the proper

understanding of adaptation in marketing strategy is modification of new products is based
on existing or present products or services. When entering to new international market most
of food outlets and drink are universally prevalent some of them are cola, pepsi , similiarly
Mc. Donald’s is also universally accepted food outlet.

Adaptation Strategy came to more effective according to cultures by researchers , Calantone,

Kim and Schmidt (2002) argued about three factors influence on international adaptation
strategy. The influence of organisation structure , impact of industry adaptation and impact
of market were the three factors mentioned based on their study in U.S.A, Japan and Korea.
Then the conclusion is to deal with three cultures in business dealing.

Standardisation of International Market Strategy

Valdez (2011), points motives behind the adaptation strategy, those firms or franchise start
following to enter international market standardisation strategy is formed, similarly product
standardisation and adaption. Standardisation requires less investment than adaptation , by
bringing new model advertisements, packaging and presentations lines will be expensive, so
Mc. Donald’ s follow the same packages, advertisements and product lines used in domestic
market for international markets as well.

The Standardisation or Adaptaion Of Mc. Donald’s Findings (Researchers finding from

webpage Observation , 2012).

Out of 119 countries , choosing 3 countries, U.S.A , England and India for usage of products.
The following numbers denote their meaning.

0 – USA products do not appear in different countries.

1 – the same as USA and same product as USA.

2 – the same name as USA , but different product as USA

3 – different name from USA , but same product of USA

4 – different name of USA, also different product of USA

5 – same web page layout (colours, slide options)

6 – different web page layout. (colours, slide options)

 Types of Burgers comparison to England India
USA
Mc. Donald’s Menu

Angus bacon and cheese 0 0

Quarter pounder with cheese 1 0

Double quarter pounder with 0 0

cheese

Hamburger 1 0

Cheese burger 1 0

Mc chicken 1 1

Southern style chicken sandwich 0 0

Premium style chicken sandwich 0 0

Webpage menu presentation 6 6

Packaging of products 1 1

4.1) Data Observation Guide , (Source : Compiled by Researchers from webpage observation
, 2012. Also data from university West case study ,2013).

From viewing and observing the above table , Mc.Donald’s in India is not using any products
from USA or any other country except in website designing and packaging styles.

Critique of key aspects to entry strategy

Mc. Donald’s need to concentrate to other major cities other than delhi, mumbai or
metropolitan cities in order to grow in India. The more important is India ‘s transportation
and road facilities is not good as compared other counties. For this need more investment in
logistic bottleneck for transportation to get food product in other cities. Price of Mc. Donald’s
food menu is high, India’s economy have increased in past years, people start observing
foreign culture and trying to initiate in that way. So price increase will not effect, most of
customers are now afford and can buy food as kept for selling in food menu. But there should
be limit up to 3 stars, because when the prices goes to 5 star hotel price, most of them can’t
afford that much price, like in India’s Taj Hotel.
The Outlook of chances for Mc. Donald’s is high and positive despite these challenges as
above mentioned. The growing structure of Mc. Donald’s in more cities is good sign as
population of country is growing, dimension of larger trend is going for fast food rising
affluence of 33% of Indians.Mc. Donald’s approach of good dress and welcome customers
with smile is having good feedback from customers which brings them again in same
restaurant , which local restaurants won’t do everytime. Mc. Donald’s opinion among the
customers was published in newspaper- written that a pilot from Mumbai prefers Mc. Donald
food most of the time when he work because of taste. By coming to opinion of taxi driver ,
saying that don’t mind eating from Mc. Donald’s once in a while ( The Economy Times, news
paper March 19, 2005 ).

Local adaptation or standardisation, no doubt , Mc. Donald’s have achieved their name and
product value in India already. After all it is not Mc. Donaldization (cultural imperialism) as if
its known that Mc. Commodation referring to Indianization of Mc. Donald’s products.(Kishore
Dash, Mc. Donald’s in India, Garvin School of Management , 2008)

I do not see anything wrong that Mc. Donald’s doing business in India. After all, its not
Mc.Donaldization that we know its a Big Mc.Ccommodation – A Senior Bureaucrat in New
Delhi, India

Hence, its not Mc. Donaldization ,its known Mc.Commodation become trendization among
Indianization ‘s lifestyles and food in new generation--- as per my observation going through
these factors and present marketing strategy and customers views and trust of food quality
of Mc. Donald’s in India.

5. ) Analysis of Marketing mix strategies

(Source : The idea or information stated in this part is referred from “marketing91” article
,march 26, 2014)

The marketing mix strategy of Mcdonalds having various factors of marketing mix which form
gridshells of a company ‘s system to achieve their goals in marketing. The factors were
product , place, promotion and process for offering India to spread their burgers, French fries
more importantly vegetable nuffets for Indians rather than burger.
Product : Mc. Donald’s places have extensive stress on developing a menu according to
customer’s need. Mc. Donald’s have introduced new product and phased out previous ones
and still do this. Care is taken to not adversely have an effect on the sale of one selection by
introducing a replacement selection, which cannibalise sales from the prevailing one (trade
off ). The company is aware of these things on its menu vary in quality. Their ability to come
up with profits can vary at completely different points in their cycle. In India, Mc. Donalds
features a wide – ranging product vary focus a lot on the eater product as most shoppers in
India primarily eater. The happy meal for youngsters may be introduced to get attraction
among customers and getting new customers.
Price :- The price charged for whatever meal in menu should be affordable and customer’s
perception of value is very important. Unlike other European countries or America , Indian
customers draw their image or mental picture of what a product is worth or it’s value. A
product is over a physical item, it additionally had has psychological connotations for the
buyer. The danger of exploiting low value as a selling tool is that the buyer could feel that
quality is being compromised . It’s vital once selecting value to be absolutely awake to the
whole and its integrity.

In India, Mc. Donald’s have two eye of differentiating their products in front of customers ,its
products into two fields , one is branded core value products (BCV), which consists mainly
Mcveggie and Mcchicken burgers cost INR Rs 50-60. Another is branded affordability (BA) ,
the products include Mcaloo tikka also Mcgrill burgers cost Rs 20-30. This method is good for
getting and also customer’s price perception in India.

Promotion :- The promotions technique of selling combine covers which all sorts of promoting
communications one amongst the strategies utilized is advertisement. Advertisement is
conducted on theatres, radio, online , TV, poster sites , within the press as an example in
magazines, alternative , promotional strategies, embody adds, door drop leaflets, more even
now facebook can also be used as advertising tool. By these methods company have to target
their method of advertising, for example suppose if I am having a website
www.myirishadverts.com, the method which use to advertise is first have a target of total
population in region , suppose in Ireland or England, have the total population in whole region
like 4.5 million people, by sponsering -100 euro or 90 pound in facebook as social media the
above example website will be reached by their offers to 60,000 people then still carrying
advertising this can reach whole 4.5 million. Likewise, the merchandise or franchise who is
taking Mc. Donald’s store have to introduce special offers in occations like festival or
Christmas by some offers to encourage customers for shopping or buying product.

During the time like after some festival or Christmas , usually business will be down because
people would have spent their money for season , while Mc. Donald’s have the prime focus
on targeting children, its by promoting happy meal to attract customers by offering small toys
, balloon, magic cap for small children. Also by various schemes for winning prices by scratch
card or allotment lucky draws when buyer place for particular combo meals or meet point
system. This scheme have tried by various companies and Mc. Donald’s as well its worked and
investment is made still can achieve targets.

Place :- Physical location is also important marketing strategy mix and distribution points for
products. It encompasses the management concerned in transportation merchandise or
franchise to the tip shopper. Mc. Donald’s shop square measure terribly equally unfold
throughout the cities creating them accessible. Drive in and drive through choices create Mc.
Donald’s merchandise to make convenient to the shoppers.

People : the employees in Mc. Donald’s had trained all sort of customers in polite manner
with smile . The standard uniform specially focuses that staffs are friendly and provide best
services for good feedback.

Process :- The food process is transparent , customer can view the process of food
manufacturing. Infact there are standard agencies like Indian sStandard organisation (ISO)
and health inspectors in India to test, verify, and check the standard of food like HACCP in
Europe. These inspectors focuses on clean and hygienic interiors , however Mc. Donald’s have
passed without giving up reputation of Organisation.

Conclusion:

International marketing of Mc. Donald’s is combination of Globalisation and

Internationalisation to this new generation business sector. It is indicated above PESTEL
factors, if it’s followed by their analysis and aware about all their factors, there will flexibility
in Organisation. By this PESTEL analysis, not only flexibility Mc. Donald will over come than
any other small food restaurants and will be customers first choice in India.
Mc. Donald’s is concerned regarding the firm or franchise which can fulfil the needs and
desires of tits customer and in the activities related to maintaining relationships with its
stockholders. Mc. Donald’s stakeholders embrace customers, franchises, suppliers,
employees and communities surrounding them.
References :
International Marketing Strategy, 5th edition,
Author: Isobel Doole and Robin Lowe.
https://books.google.ie/books?id=UU1yPY2UwhMC&pg=PA185&lpg=PA185&dq=introducti
on+to+international+marketing+strategy+and+its+development+to+internationalisation&so
urce=bl&ots=O257pgu7Za&sig=pqP10P6_QLfj12mnj0IeQlZWdBM&hl=en&sa=X&ei=xbl0VZa
DO6XD7gbu-4CIBA&ved=0CFUQ6AEwBw#v=onepage&q&f=true
pestle: http://www.scribd.com/doc/82084582/PESTEL-Analysis-of-Mcdonalds#scribd

www.mc.donald .com, history html.

http://www.mcdonaldsindia.com/aboutus.html

https://www.cengagebrain.co.uk/content/doole07630_1844807630_02.01_chapter01.pdf

Chung, H.F.L. (2006), "International marketing standardisation strategies analysis: A cross-

national investigation", Asia Pacific Journal of Marketing and Logistics, Vol. 19 No. 2, pp.
145-167.

Czinkota. M.R. & Ronkainen, I.A. (2004), International Marketing (7th edition). Mason,
Ohio: Thomson South-Western.

Dahlberg, E., Lindgren, L. & Rosendahl, A., Standardization and Adaptation in International
advertising of consumer goods: A case of Libresse, unpublished thesis, (Sweden: Luleå
university of Technology, 2003).

Analysis of marketing mix :

www.marketing91.com