There are various international marketing opportunities such as increased size of the market, which can allow shareholders to invest in more numbers and make the organization expand its customer base and ensure generating more profit too. McDonald’s want to launch a new food item named shrimp burgers in the international market of Japan, and thus it is important for the company to manage uniformity of taste profiles and ensure that there is cultural acceptance of upscale, gourmet products. This will create awareness among customers and also will allow the company to deliver products and services according to the needs and preferences of the people of Japan (Armstrong et al. 2015). This will also create better opportunities for the suppliers of speciality foods and beverages to prepare good quality shrimp burgers and keep the customers in Japan happy and satisfied.
The objectives of the company are to enter the foreign market and become habituated to the new surroundings and people who have different tastes and preference regarding food items of McDonald’s. The shrimp burgers are newly launched, so it is important to produce those based on the demand and preferences of customers largely (Berthon et al. 2012).
The international marketing objective of McDonald’s is to become the favourite place and way for customers to eat with inspired people and deliver customers with good quality products. The company has launched the new shrimp burger and other new food items. According to the company, customer perception is a major aspect that ensures the success of a product in the market. The company has launched the new shrimp burgers that have not only attracted the customers present in the foreign market but has also led to maximising sales and overall profit level (Czinkota and Ronkainen 2013).
The key performance indicators can help McDonald’s to achieve higher sales growth, increased brand image and awareness, effective economies of scale due to lower cost base and higher profit margin too. These performance indicators could further help the company to gain the satisfaction of customers and ensure extended product life cycles too. The major performance indicators here for entering a new foreign market could be the development of an effective distribution strategy, establishing criteria for selection of distributor, managing the interests of distributors, select proper shareholders who can invest in the company during international expansion and negotiate the distribution arrangements too (Griffin and Pustay 2012). The Japanese people have different tastes for the burgers, and thus McDonald’s must keep in mind the preferences of customers and then deliver the shrimp burgers, which could keep them satisfied.
McDonald’s has implemented an effective risk analysis and management strategy for understanding the sustainability concerns, prioritise on the use of resources and concentrate on the efforts within the supply chain too. This would help the company to gather relevant data and information to work with the supply chain partners and identify any risks before expanding business in the international market. The risk management strategy can also help McDonald’s to prioritise the resources, identify risks and sustainability concerns, identify opportunities for better leverage and improve engagement with supply chain partners in an effective manner too (mcdonalds.com 2017).
Event marketing is an effective approach to enter foreign markets and enhance brand awareness among customers for certain products which are newly launched by McDonald’s. The marketing approaches must be chosen wisely for delivering the products and services to the local customers and fulfill their needs and requirements too. Licensing and exporting are two major marketing approaches used by McDonald’s to monitor the local economic and political environment of Japan where the new product will be launched and furthermore determine the structures of cost, competitors, foreign currency exchange rates, etc (Paliwoda and Thomas 2013). Due to huge market share, McDonald’s is often considered as a major franchise, which is preferred by many other companies in Japan to create better opportunities for international trade.
The shrimp burger that is to be newly launched by McDonald’s in Japan must be able to adapt to the local tastes and preferences of customers for keeping them satisfied. This is called product localisation and can address the requirements of customers easily. The 270 yen sandwich was also introduced for winning over the Japanese palate. The newly launched shrimp burger is quite similar to the Filet-O-Fish, but it is filled with shrimp. This is done for making the customers taste something new and improve the brand image in the global business market with ease (Terpstra, Foley and Sarathy 2012).
The culture of McDonald’s supports the positioning goals and objectives, and due to its established market place and reputation as one of the largest global fast food chain restaurant, it has properly used the culture for attracting a large customer base by defining the traditions, values and beliefs of workers. Due to the healthy culture, the employees have managed to perform to their potential, and this has brought more productivity. The company’s corporate culture has further helped in accomplishing the desired levels of human resources abilities too with ease and effectiveness (Yang, Su and Fam 2012).
McDonald’s is the second largest restaurant network serving customers in many countries, and it has stayed ahead of many competitors in business within the fast food industry. The company’s ability to share its fixed costs in many locations can help in serving the international market of Japan quite easily. The new employees can be hired, and due to its enhanced power over suppliers and competitors, the company can easily enter the foreign market in Japan. It is one of the most recognizable brands in the restaurant industry and thus the people in Japan will easily be able to cope up with the new offerings, i.e., shrimp burgers that are newly launched by McDonald’s (Armstrong et al. 2015). The other items like the Happy Meal, Big Mac, Fries are of good qualities, which can easily attract the customers of Japan.
Few major weaknesses of the company are declining market share, weak product development techniques, inappropriate franchise and slow revenue and growth. With the emergence of other competitors like KFC, the company may face issues in delivering the new burger item in the foreign market (Berthon et al. 2012).
McDonald’s operational structure can facilitate the management of markets based on performance levels and can easily resolve the emerging market issues. The operational structure includes various characteristics such as global hierarchy, performance based divisions and function based groups. Due to the global hierarchy, the company can easily cover business operations worldwide and focus on corporate control. Thus, it would be easy for the company to enter the foreign market with the help of global hierarchical structure (Czinkota and Ronkainen 2013).
The international marketing objectives for McDonald’s are to launch the new product named shrimp burgers and enter the foreign market by attracting more customers with ease and effectiveness. The nature and extent of goals for the international market could be to keep the customers satisfied and asking for something new, which they might not have got earlier. The launch of shrimp burger would help in meeting the changing tastes and preferences of customers in Japan, where the company wants to enter and furthermore effectively allow diversification of products too (Griffin and Pustay 2012). The major performance indicators for McDonald’s could be the sales level achieved, generated revenue, the satisfaction of customers and market share as well. The goals for international market are to provide the customers with high quality food items such as shrimp burgers and ensure that their needs and requirements are fulfilled.
To make the shrimp burgers available in the foreign market such as in Japan, Russia and India, the focus of the company is to develop a team consisting of individuals who have good experiences and belong from diverse backgrounds. This allows them to work together in coordination and as an unit for driving the engagement of employees and improve productivity (mcdonalds.com 2017). Within the international market, McDonald’s also maintains good values and ethics for holding employees together and conduct business to high standards of honesty, integrity, fairness and positive mindset.
McDonalds has translated its corporate and strategic vision into the operational goals and objectives and communicated those to the employees so that they are aware of the products and services delivered by the company. The goals, which are needed to be achieved like the entering into new foreign market segments, shall be linked with the performance objectives for assessment of the company’s current position in a consistent manner. The internal processes like the marketing activities, human resources management and financial resources management are managed properly for meeting the needs and requirements and exceed the strategic goals and expectations of customers (Paliwoda and Thomas 2013). The generated revenue in the present market can also be considered as a key performance indicator, which is used to evaluate the growth and development measures of the company and improve the performance of the company in future as well.
The marketing approaches are managed by conducting a market research which consists of individuals from various market segments. Their needs differ, and so the company has developed certain goals and objectives, which are aligned with the needs and preferences of customers in the market. Often the low price of products can make customers think that the low price indicates compromised the quality of products (Terpstra, Foley and Sarathy 2012). McDonald’s has followed the competitive pricing as an essential marketing tool for matching up to the customers’ expectations and increase the sales of shrimp burgers in the new international market. The promotional activities include advertising on TV, radios, porter sites and even sales promotion, a point of sales display, merchandising, telemarketing, loyalty schemes, etc. In Japan, the beef burgers might not be appropriate, so the company decided to introduce the new shrimp burgers and made sure that the customers relish the taste of the new brand product with ease (Yang, Su and Fam 2012).
McDonald’s follow a strong corporate culture and support the employment of people in the foreign countries as well. The various rules and regulations are bind together for setting up a good culture and ensure that the customers are provided with good quality products and even experience a clean environment where they can relax and enjoy a meal. The healthy organisational culture also promotes communication and encourages team development (mcdonalds.com 2017). The global hierarchical structure of the company allows covering all business operations with ease and delivering better control on the business operations, thereby entering the foreign market segments and fulfilling demands of customers easily
References
Armstrong, G., Kotler, P., Harker, M. and Brennan, R., 2015. Marketing: an introduction. Pearson Education.
Berthon, P.R., Pitt, L.F., Plangger, K. and Shapiro, D., 2012. Marketing meets Web 2.0, social media, and creative consumers: Implications for international marketing strategy. Business horizons, 55(3), pp.261-271.
Czinkota, M.R. and Ronkainen, I.A., 2013. International marketing. Cengage Learning.
Griffin, R.W. and Pustay, M.W., 2012. International business. Pearson Higher Ed.
mcdonalds.com, (2017). [online] Available at: https://www.mcdonalds.com [Accessed 31 Jul. 2017].
Paliwoda, S. and Thomas, M., 2013. International marketing.
Terpstra, V., Foley, J. and Sarathy, R., 2012. International marketing. Naper Press.
Yang, Z., Su, C. and Fam, K.S., 2012. Dealing with institutional distances in international marketing channels: Governance strategies that engender legitimacy and efficiency. Journal of Marketing, 76(3), pp.41-55.
Essay Writing Service Features
Our Experience
No matter how complex your assignment is, we can find the right professional for your specific task. Contact Essay is an essay writing company that hires only the smartest minds to help you with your projects. Our expertise allows us to provide students with high-quality academic writing, editing & proofreading services.
Free Features
Free revision policy
$10Free bibliography & reference
$8Free title page
$8Free formatting
$8How Our Essay Writing Service Works
First, you will need to complete an order form. It's not difficult but, in case there is anything you find not to be clear, you may always call us so that we can guide you through it. On the order form, you will need to include some basic information concerning your order: subject, topic, number of pages, etc. We also encourage our clients to upload any relevant information or sources that will help.
Complete the order form
Once we have all the information and instructions that we need, we select the most suitable writer for your assignment. While everything seems to be clear, the writer, who has complete knowledge of the subject, may need clarification from you. It is at that point that you would receive a call or email from us.
Writer’s assignment
As soon as the writer has finished, it will be delivered both to the website and to your email address so that you will not miss it. If your deadline is close at hand, we will place a call to you to make sure that you receive the paper on time.
Completing the order and download