International Marketing-Mini Bonus Case

International Marketing – Mini Bonus Case – Spring 2018

McDonald’s fears that it is heading towards a limited growth in the European market. Although many Europeans are intrigued by American food, McDonald’s burgers and fries are yesterday’s news. As a result of this decline in sales, McDonald’s has begun an aggressive price competition in most European countries. Recognizing a steady and stable demand for fast food in Europe, McDonald’s is quite willing to spend a substantial amount of capital for advertising and promotion if this would appear to be a good investment. In recent years, McDonald’s has been able to develop burgers and fries that tend to contain less fat than those of most local fast-food competitors, however only a limited number of customers are aware of this change. Confidential research has shown that many Europeans are getting tired of conventional burgers and would be more interested in contemporary fast foods such as Tex-Mex, Nando’s and Southern Fried Spicy Chicken. Furthermore, European consumers are more environmentally conscious and this has made McDonald’s weak corporate responsibility track record somewhat unappealing to them. Research has also found that preferences for local food are on the increase and greatly differ from one country to another.

Answer the following questions in an essay format:

• Discuss the product and consumer related factors that McDonald’s should take into account in order to compete successfully in the European fast-food sector.
• 2- Explain the cultural and environmental aspects that McDonald’s need to consider and reevaluate.

Solution

1-Discuss the product and consumer-related factors that McDonald’s should take into account in order to compete successfully in the European fast-food sector.

There are some customer and product-related factors that the McDonald Company should consider in the European market. Trends of fast food have changed with the passage of the time, as now customers consider some traditional/natural food rather than the usual fast-food items. Thus, there is a need to come up with some new fast-food products, which do not contain the fat. Also, the most important thing is to redesign different advertisement campaigns in the European market to position better in the minds of the customer. Through an appropriate pricing strategy and integrated marketing approach, the company. For competing with successfully in the European fast-food sector in an effective manner, the perception has to be changed, as far as different health issues and eating habits of customers are concerned. These are some factors, which can help the company regain the market share and brand image in this competitive European fast-food sector. Some new fast food production techniques can help the company to integrate with modern customer trends. Thus, it seems good chance for the company to increase the competitive positioning and make the difference in an intense competitive rivalry. European fast-food market needs change or evolvement, and pertinent intentions of this company will help to meet the purpose.

2-Explain the cultural and environmental aspects that McDonald’s need to consider and reevaluate.

It has been observed that Europeans are intrigued by American food.  It is necessary for the firm managed to integrate with different cultural values when developing new products and designing different advertisement campaigns. Redesigning the corporate social responsibility seems the best approach by this company in this competitive market to integrate with the environment, conscious people. McDonald needs to consider and reevaluate products, which can create the good impact on people. The production of contemporary fast food is not harmful to this company, and the company intends to sustain this production process. Traditional and social media channels are good platforms for this company depict different initiatives and create the awareness. The company has to come up with different production and marketing approach as compared to the United States of America to maintain its dominance. Cultural and environmental integration can ensure the business sustainability.