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). |