Practicum 7: International Marketing BUS 306 April 23, 2013 Thomas Bozeman Patricia Lamothe Jonathan Petrovich Practicum 7: International Marketing all

Agenda Global marketing overview McDonalds in France & the USA Marketing Mix Adapting to new markets McDonalds in France & the USA Product Price Place Promotion Reflect and summarize Quiz Q & A jp

Global Marketing Global Firms Typically large corporations Global supply chains Every Market is different Cultural tastes & preferences tb

The message and products a company offers for the marketing mix Standardized: One global marketing approach & product offering Adapted: Change marketing approach & products for each market. Jp pl Standardized marketing mix involves selling the same products and using the same marketing approaches worldwide. McDonald’s restaurants are not this kind of marketing mix. Adapted marketing mix involves adjusting the marketing mix elements in each target market, bearing more costs but hoping for a larger market share. McDonald’s restaurants adjusted the marketing mix elements in each target market. The 4 P’s Product Price Place Promotion

Global Marketing: Adapting to New Markets tb

Global Marketing: Chapter 19 : Case Study of McDonald’s in Russia Serving local markets with a global brand About 65% of $23 billion of sales came outside America 32,000 restaurants serve : - more than 60 million people - more than 100 countries each day Most Americans thinks of McDonald’s as their own but it’s not ! This restaurant has spread to every corner of the world now. What made ​​it so successful is that it adapts to the culture of the country wherever he moved. That is why we will talk about this example taken from the book. talking about global brand  local communities More precisely, Serving local markets with a global brand About 65% of McDonald’s $23 billion of sales last year came from outside the United States. It’s 32,000 restaurants serve more than 60 million people in more than 100 different countries each day

McDonalds in France & the United States Founded May 15, 1940 in San Bernardino, CA Iconic logo & brand recognition Estimated $2 billion global advertising budget Operates in 122 countries First McDonalds in France opened June 30, 1972 jp

McDonalds In France & the United States: Product Baguette Sandwiches & Tomatoes 12 sauces McFlurry: 16 different mix-ins Beer Partnerships with local agribusinesses United States Burgers & Fries 8 sauces McFlurry: 3 mix-ins 3 large corporate suppliers Tb and pl Products are very different between France and United States. For example, in France McDonald’s restaurants have Baguette Sandwiches and small bag of tomatoes for snack. Also, in France customers can chose between 12 dipping sauces and between 16 different mix-ins of McFlurry desert. Funny fact, in France customer can order beer with their lunch and it’s about the same price than convenience store or grocery store. France McDonald’s restaurants have a lot of partnerships with local agribusinesses. Favor local supplies: In 2012 over 70% of the food purchased by McDonald’s was from French agribusiness. McDonald’s France is an important market for French agriculture. In 2012, the company purchased through its suppliers more than 200 000 tonnes of French agricultural commodities. For example, wheat, beef, chicken, fruits and vegetables, potatoes. Also, McDonald’s France has contributed to the activity of more than 60,000 farmers and rancher.

McDonalds In France and the United States: Price Big Mac: $4.80 Maximum Menu Good value Big Mac: $4.37 Dollar Menu Good value Jp and pl We converted France’s Euro price in American money and it’s not a big difference between products like Big Mac for example that costs $4.80. In France, restaurants have maximum menu which comprise: 1 sandwich choice, 1 large fries or Deluxe potatoes, salad and 1 bottle of water or juice. It’s a good value.

McDonalds In France and the United States: Place Over 1,200 Locations Stay and eat with friends America 12,804 Locations Get food & Go Us locations 3x more than japan pl tb 70s and 80s expansion in europe and asia 90s expansion in middle east and eastern europe(post-iron curtain) The concept in this country is very different from the U.S. The majority of people go to McDonald for eating for a long time. It’s not really a restaurant to take out because in this country a lot of small sandwich restaurants are already there for person who wants to take a fast meal. So people who going to eat at McDonald restaurant, it’s more for take a long dinner and have a good night with their friends. It’s more like a social spot compare to the U.S. This restaurant is considering one of the best for fast and to go. In fact, McDonalds want to fallow the country culture where they are.

McDonalds In France and the United States: Promotion French McDonalds advert endorsing sexual equality http://www.youtube.com/watch?v=SBuKuA9nHsw&feature=player_embedded Focus on social change McDonalds adverts in US typically musical Monopoly game Once a year McRib Cult following, lines out of McDonalds when released Tb and jp

Global Marketing: Conclusion Successful companies know how to adapt Every market is different McDonalds much bigger, more varied than expected

QUIZ! Question 1; name two sauces from the french menu Question 2; how many mcdonalds locations are in france PAT

Questions?

References "McDonalds restaurants by country", McDonald's. Retrieved from http://www.NationMaster.com/graph/foo_mcd_res-food-mcdonalds-restaurants http://wfxd.com/wp-content/uploads/2012/05/mcdonalds_WeSpeakNews_Olympics.jpg http://www.mcdonalds.fr/ http://www.mcdonalds.com/us/en/home.html

References: Images Slide 1: http://logo-sign.com/tag/mcdonalds-logos/

References: Images 2 Slide 8: http://www.mcdonalds.com/dam/McDonalds/bundleinstance/mcdonalds-Big-Mac-Extra-Value-Meals.png; http://www.mcdonalds.fr/sites/default/files/812x241.jpg; http://www.thatsnerdalicious.com/wp-content/uploads/2011/02/goat-cheese-mcdonalds-burger-france.jpg?cb5e28 Slide 9: http://technorati.com/lifestyle/article/25000-big-macs-and-counting/ Slide 10: http://janetong.com/image_gallery/data/p1480575.jpg; http://www.homedit.com/the-new-design-of-mcdonalds-in-france/ Slide 11: http://cdn.blogs.sheknows.com/thewire.sheknows.com/2010/10/mcdonalds_monopoly.jpg Slide 12: http://sites.psu.edu/renko137h002/files/2012/11/imlovin31.jpg