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Effective Executive Magazine:
McDonalds Localization Strategy : Brand Unification, Menu Diversification
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McDonalds has successfully maintained its global brand identity by standardizing its principles and service quality but customizing its offerings across the globe.

Apart from quality food, an ambience of fun and frolic and other familiar offerings, McDonald's, the brand with a universal appeal, is known for offering something new to its customers. On September 2, 2003, McDonald's launched an ad campaign in Munich, Germany with the punchline"ich liebe es", meaning "I love it". It was McDonald's first global ad campaign. The English version that was launched on September 29, 2003, was later reproduced in French, Mandarin, Spanish, Arabic and even Ukranian. Although McDonald's has communicated the same sales pitch across the globe, its language has changed with continents, countries and even states. While McDonald's has maintained its brand identity across the world by following certain standardized procedures, principles, tools and techniques, it has customized its offerings in each market in terms of ambience of its restaurants and menu. However, McDonald's customization initiative has faced resistance in several countries in terms of varying consumer attitude towards certain types of food, different food habits, government policies and religious sentiments.

McDonald's is the leading global food retailer with 30,000 restaurants serving 50 million people in 119 countries every day. Half of all McDonald's restaurants are located outside the US, and more than 50% of the company's operating income is derived from them. McDonald's had forayed into international markets by expanding its business into Canada and Puerto Rico in 1967 due to its domestic market saturation. In the emerging markets, McDonald's adopted the franchising route as its entry strategy. It is observed that two reasons have enabled McDonald's to successfully localize across different continents. First, McDonald's has always depended on local businesses like local contractors, food suppliers and financial institutions. Second, the company has consistently voiced its concern for the well-being of its guests in various ways over the years apart from actively supporting local charity work and community programs (Exhibit I).

 
 
 

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