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Global and Industrial Marketing
               Case Study: Μc Donald’s Hellas
                Standardization - Adaptation



Professor:                             Working Team:
Georgios Panigirakis                   Dimitrios Demiris
                                       Nikolaos Filippakis
Mc Donaldiazation
Mc Donaldiazation


                     Greece: 30 Restaurants
                    Global: more than 30.000
                           Restaurants
Mc Donaldiazation


                            Global: 400.000 employees
                            Net Income: 24,075 billions $

If Mc Donald’s was a country by                       If Mc Donald’s was a country by
population would be N. 173                                  GDP would be N. 91
Vision- Mission


 Να παρζχουμε ςτουσ πελάτεσ μασ την καλφτερη δυνατή εμπειρία ςτον
             τομζα τησ γρήγορησ εςτίαςησ παγκόςμια.




Φαγητό εξαιρετικθσ ποιότητασ, ςε καιαρό και φιλικό περιβάλλον,
ςερβιριςμένο φρέςκο και ζεςτό, με ταχύτητα και ακρίβεια
Corporate Profile


                     Global Facts                        Main Competitors in
                                                               Greece
McD’s is the ninth most valuable brand in the world

                                                                Goody’s
Everyday 0.5% of the worlds population visits a McD's
                                                                Everest
One out of three of all cows in the US used for food
purposes (beef) are used by McD's                              Pizza Hut

                                                                Dominos
One in eight Americans has worked for McD's
                                                           Gregory’s fast food
                                                              restaurants
In China, McD’s have opened 789 stores within the last
8years (only one operates as a franchisee)                       K.F.C.

Anti-Union policy.
Mc Donald’s Hellas
                        Current Targeting -Positioning


     Targeting
                                                           Positioning
Kids 3-7 Via Happy Meal-
      Online Game
                                                    Family- I ‘m Loving it
    Teens -Students
                                                     Kids- Ronald McDonald
    Working Adults

                                                     Teenager- Mc Cafe
      Travelling –
    Visiting Tourists

      Vegetarian
                                                     Health Campaign

      McSarakosti
Infographics Hellas




Πηγή: Γενική Γραμματεία Καταναλωτή 2007
Product- Consumer

VARIATION
 • A wide variety of products (beef, chicken, pork, fish etc.) with healthy and
   vegetarian options
INNOVATION :
 • (Health and Wellness) - Offering nutritional value, GDA and nutrients
   information contained in McD’s products.
 • Unique food (localized menu) e.g. McSaracosti, Chinese New Year meal,
   McCurry pan etc.
DIFFERENTIATION :
 • Investing in the coffee sector (McCafe).
 • Focusing on Kid’s market.
 • Collaboration with local suppliers offering quality materials.
PRODUCT ELIMINATION (competition)
 • Visiting tourists in the Greek isles (ages 17-25) prefer a ‘Big Mac’ than local
   cuisine/local food chains
Product- Consumer




  Global Standardization
Economics of scale & scope



                             BUT…
Think Global Act Local
                                      Product Adaptation


                                Hong Kong Love Rice Burgers




In India people don’t it beef                                 In Canada they love McLobster




                                In Germany they drink beer
Think Global Act Local
                                     Product Adaptation



                                                      Chile’s Avocado instead of
Japan totally reinvents McDonald’s with its
                                                                ketchup
Ebi Filet-O (shrimp burgers), Koroke Burger
(mashed potato, cabbage and katsu sauce,
all in a sandwich), Ebi-Chiki (shrimp nuggets)
and Green Tea-flavored milkshake!


                                      Norway loves Salmon           Costa Rica Loves Gallo
                                                                            Pinto
Mc Donald’s Hellas
                           Product Adaptation




Pitta is in Greeks DNA




                                                Standardized Adaptation

                               McShrimp
Mc Donald’s Epic Fails
Price - Cost



PENETRATION PRICING :
• Value pricing ‘One for One’ offers
• New meal introductory low prices
• Affordable & Competitive from €1

PRODUCT LINE PRICING :
• Strategy falls solely on the cluster product lines
  (flexibility).
PROMOTIONAL PRICING :
• Weekly/monthly offers usually seen on banners.
Price - Cost
                      Price Adaptation




                      Big Mac Index
                         08/2010


Five most expensive                   Five most affordable
Norway - $7.20                        Croatia - $1.50
Sweden - $6.56                        Ukraine - $1.84
Switzerland - $6.19                   Hong Kong - $1.90
Brazil - $5.77                        China - $1.95
Denmark - $4.90                       Malaysia - $2.27


                          3.40€
Position - Convenience


DISTRIBUTION CHANNEL
•Leader in global logistics operations.
•Collaboration with local producers (quality and freshness of
products, delivery times).
•Re-location and closure of underperforming restaurants.
DIRECT SALES
• Restaurants located in areas with the highest
  concentration of kids, teens and visiting tourists.            Global Standardization
MARKET COVERAGE
• Covering all central districts in cities and near areas with
  the highest concentration of the targeted groups.
• Restaurants located also at airports.
Promotion - Communication


McDonald’s localize all marketing communication strategies.


In 2009 McD’s has launched the biggest advertising global campaign since 1970.


World Children’s Day (Nov 20th).


Sponsorships in various events.


80-20 menu boards (80% visual – 20% descriptive).


Toys with every kids meal.

Personal Selling – skilled employees (McD’s took over from the US navy as the world’s larger
training organisation).

Mc Donalds Monopoly Contest
Sponsorship - C.S.R.




Παγκόςμια από το 2002 ζχει
 δωρίςει πάνω 150 εκατ $
Process




•ISO 9001:2000, HACCP, Codex Alimentarius
certifications (World Health Organisation).
•Allocating environmental affairs officers worldwide.
•Community support (employment, funding,
sponsorships, etc.).




                        Global Standardization
People & Physical Evidence


Physical Evidence:
•Unique Atmospherics adaptation based on local
variations
•Reducing queuing times
•Food served warm & fresh
•Cleanness
•Revamped and new restaurants
•McCafe’s friendly environment

People:
•Well qualified and trained Store managers, staff and
contractors
•Collaboration with local producers (quality and
freshness of products, delivery times).
•Collaboration with Coke, MTV, Sony music etc.
Synopsis


       Reasons for local strategy:


Satisfaction local habits

Price adaptation based on perceived position

Positioning against local competitors

Harmonized with local government law
Enjoy Responsibly
Enjoy Responsibly




                 Thank you very much for your attention!




Demiris Dimitris                               Filippakis Nikolaos
Email: demiris.dimitris@gmail.com              Email: nkfilikos@yahoo.gr

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Mc Donald's Global Standardization Adaptation

  • 1. Global and Industrial Marketing Case Study: Μc Donald’s Hellas Standardization - Adaptation Professor: Working Team: Georgios Panigirakis Dimitrios Demiris Nikolaos Filippakis
  • 3. Mc Donaldiazation Greece: 30 Restaurants Global: more than 30.000 Restaurants
  • 4. Mc Donaldiazation Global: 400.000 employees Net Income: 24,075 billions $ If Mc Donald’s was a country by If Mc Donald’s was a country by population would be N. 173 GDP would be N. 91
  • 5. Vision- Mission Να παρζχουμε ςτουσ πελάτεσ μασ την καλφτερη δυνατή εμπειρία ςτον τομζα τησ γρήγορησ εςτίαςησ παγκόςμια. Φαγητό εξαιρετικθσ ποιότητασ, ςε καιαρό και φιλικό περιβάλλον, ςερβιριςμένο φρέςκο και ζεςτό, με ταχύτητα και ακρίβεια
  • 6. Corporate Profile Global Facts Main Competitors in Greece McD’s is the ninth most valuable brand in the world Goody’s Everyday 0.5% of the worlds population visits a McD's Everest One out of three of all cows in the US used for food purposes (beef) are used by McD's Pizza Hut Dominos One in eight Americans has worked for McD's Gregory’s fast food restaurants In China, McD’s have opened 789 stores within the last 8years (only one operates as a franchisee) K.F.C. Anti-Union policy.
  • 7. Mc Donald’s Hellas Current Targeting -Positioning Targeting Positioning Kids 3-7 Via Happy Meal- Online Game Family- I ‘m Loving it Teens -Students Kids- Ronald McDonald Working Adults Teenager- Mc Cafe Travelling – Visiting Tourists Vegetarian Health Campaign McSarakosti
  • 8. Infographics Hellas Πηγή: Γενική Γραμματεία Καταναλωτή 2007
  • 9. Product- Consumer VARIATION • A wide variety of products (beef, chicken, pork, fish etc.) with healthy and vegetarian options INNOVATION : • (Health and Wellness) - Offering nutritional value, GDA and nutrients information contained in McD’s products. • Unique food (localized menu) e.g. McSaracosti, Chinese New Year meal, McCurry pan etc. DIFFERENTIATION : • Investing in the coffee sector (McCafe). • Focusing on Kid’s market. • Collaboration with local suppliers offering quality materials. PRODUCT ELIMINATION (competition) • Visiting tourists in the Greek isles (ages 17-25) prefer a ‘Big Mac’ than local cuisine/local food chains
  • 10. Product- Consumer Global Standardization Economics of scale & scope BUT…
  • 11. Think Global Act Local Product Adaptation Hong Kong Love Rice Burgers In India people don’t it beef In Canada they love McLobster In Germany they drink beer
  • 12. Think Global Act Local Product Adaptation Chile’s Avocado instead of Japan totally reinvents McDonald’s with its ketchup Ebi Filet-O (shrimp burgers), Koroke Burger (mashed potato, cabbage and katsu sauce, all in a sandwich), Ebi-Chiki (shrimp nuggets) and Green Tea-flavored milkshake! Norway loves Salmon Costa Rica Loves Gallo Pinto
  • 13. Mc Donald’s Hellas Product Adaptation Pitta is in Greeks DNA Standardized Adaptation McShrimp
  • 15. Price - Cost PENETRATION PRICING : • Value pricing ‘One for One’ offers • New meal introductory low prices • Affordable & Competitive from €1 PRODUCT LINE PRICING : • Strategy falls solely on the cluster product lines (flexibility). PROMOTIONAL PRICING : • Weekly/monthly offers usually seen on banners.
  • 16. Price - Cost Price Adaptation Big Mac Index 08/2010 Five most expensive Five most affordable Norway - $7.20 Croatia - $1.50 Sweden - $6.56 Ukraine - $1.84 Switzerland - $6.19 Hong Kong - $1.90 Brazil - $5.77 China - $1.95 Denmark - $4.90 Malaysia - $2.27 3.40€
  • 17. Position - Convenience DISTRIBUTION CHANNEL •Leader in global logistics operations. •Collaboration with local producers (quality and freshness of products, delivery times). •Re-location and closure of underperforming restaurants. DIRECT SALES • Restaurants located in areas with the highest concentration of kids, teens and visiting tourists. Global Standardization MARKET COVERAGE • Covering all central districts in cities and near areas with the highest concentration of the targeted groups. • Restaurants located also at airports.
  • 18. Promotion - Communication McDonald’s localize all marketing communication strategies. In 2009 McD’s has launched the biggest advertising global campaign since 1970. World Children’s Day (Nov 20th). Sponsorships in various events. 80-20 menu boards (80% visual – 20% descriptive). Toys with every kids meal. Personal Selling – skilled employees (McD’s took over from the US navy as the world’s larger training organisation). Mc Donalds Monopoly Contest
  • 19. Sponsorship - C.S.R. Παγκόςμια από το 2002 ζχει δωρίςει πάνω 150 εκατ $
  • 20. Process •ISO 9001:2000, HACCP, Codex Alimentarius certifications (World Health Organisation). •Allocating environmental affairs officers worldwide. •Community support (employment, funding, sponsorships, etc.). Global Standardization
  • 21. People & Physical Evidence Physical Evidence: •Unique Atmospherics adaptation based on local variations •Reducing queuing times •Food served warm & fresh •Cleanness •Revamped and new restaurants •McCafe’s friendly environment People: •Well qualified and trained Store managers, staff and contractors •Collaboration with local producers (quality and freshness of products, delivery times). •Collaboration with Coke, MTV, Sony music etc.
  • 22. Synopsis Reasons for local strategy: Satisfaction local habits Price adaptation based on perceived position Positioning against local competitors Harmonized with local government law
  • 24. Enjoy Responsibly Thank you very much for your attention! Demiris Dimitris Filippakis Nikolaos Email: demiris.dimitris@gmail.com Email: nkfilikos@yahoo.gr