英语专业论文McDonald’s Marketing Strategies in China麦当劳在中国的营销策略

McDonald’s Marketing Strategies in China

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Abstract

In recent years, Chinese fast food companies are developing rapidly, but the market share and profit level are far below that of the western fast food corporations like McDonalds and KFC. From the aspect of average sales turnover of one single store, McDonalds is 160 times of that of Chinese fast food companies. Currently, the turnover of western fast food corporations occupies more than 1/3 of the whole Chinese fast food industry. The causes are various, yet we could not neglect the problems in service marketing such as service quality, service process, service price and physical evidence, also the daily schedule in Northern China and Southern China is different, thus the service patterns differ. In order to make the proposal more specific, I choose McDonald’s stores within a region as the objects, to analyzed its marketing strategies in China. This essay analyzes the successful McDonald’s marketing strategies in China from “4P” (product, price, place, promotion)

Key words: McDonald; marketing strategies; Chinese fast food

1. Introduction

McDonald’s is a chain of fast food restaurant that specializes in fried chicken. It was in 1940 that McDonald’s first started their op erations. The pioneer of many things, the Speed Service System introduced in their very first restaurant is being followed in modern day fast food chains to this very day. Their very first mascot was a man with a head of a hamburger wearing a chef’s hat, which was replaced by McDonald’s ever popular clown man. It is estimated that McDonald’s currently serves 58 million customers each day in 119 countries. Their restaurants differ in their settings and facilities as some offer drive thru services, and some have play areas for kids while some offer counter service a lone. McDonald’s signature colors are red and yellow while their most popular products are their famous hamburgers, breakfast offers, desserts, chicken sandwiches and French fries. McDonald’s also f eature products for vegetarian customers, as well. When it comes to regional branches, McDonald’s are known to offer certain products customized to suit the food cultures of the respective regions.McDonald’s pay attention to the development of diversified and create differentiated product.

2. The product strategies in China

2.1 The product localization

The first sign of success to an enterprise is that it can provide products to meet consumer demand. McDonald’s was so successful not by accident but have a lot by the constantly product innovation according to the taste of the Chinese people. McDonald’s has continually adapted to the customer’s tastes, value systems, lifestyle, l anguage and perception. McDonald’s was known for its hambu rgers, beef and pork burgers. But most Chinese like to

eat rice and something variety. To follow the local taste, M cDonald’s came up with Pork Chop Curry Rice and Preserved Egg Chicken Porridge to suite the Chinese palate. This way fitting customers ’requirement and has been widely recognized by Chinese consumers. Therefore, the unification of food in McDonald’s has very strict standards, covering two aspects of qualitative and quantitative provisions.

2.2 The product standardization

Core product stands at the center of the total product. It consists of the core, problem-solving benefits that consumers seek when they buy a product or service. As the world’s larg est fast food chain enterprises--- McDonald’s, in the whole process of its development, to provide customers with food, although there are regional differences for the customer, but the same is the sales all over the world of hamburgers, French fries, ice cream and soft drinks. Even if there is any change in the main product, it is only a small change. Others like Fillet-o-fish，Big Mac hamburgers are as the actual product. McDonald’s mix product to maximize sale opportunities with the limitations of its resources. Although there are big differences in eating habits and cultures in different countries, McDonald's is still committed to reducing the differences, providing a very similar product for global consumers. This management concept originated in the internationalization of chain management, the unified management mode included: unified trademark and name, unified interior design, standardization of the food supply and sales, unified national price.

3. The price strategies in China

Successful pricing is a key element in marketing, ranked only next to product strategies in importance among the concerns of marketers. The specific pricing strategies that firms use

to price goods and services grow out of the marketing strategies they formulate to accomplish overall organizational objectives. To establish a suitable price range, the target market of the enterprise and the target market positioning have very big concern.

3.1 Identify target customers

McDonald’s caught Chinese homesick psychological needs, divide its target market segmentation for families as the unit group, and focus on the teenagers who have strong ability to accept foreign culture and new things. In addition, they have targeted design for all food, service and environment. Therefore, other family members, under the influence of young people, in order to stimulate demand, will slowly love the relaxed, pleasant dining environment in McDonald’s. Children is also an important service for McDonald’s. Every store has a baby chair and a small cart, and a variety of hanging picture, cartoon park, are all deeply favored by children.

3.2 Determine the price range

McDo nald’s price range within the scope of the ordinary families can afford, but overall price is higher than the general price, because it adopts competitive pricing strategies. These strategies are designed to deemphasize price as a competitive variable by pricing a product or service at the general level of comparable offerings. McDonald’s mainly take the following two ways to stimulate consumer demand: the first is the psychological pricing. On the one hand, by the way of improving the dining environment to provide customers a satisfying first-rate service. That create an additional value to customers. On the other hand, the price is accurate to angle and unified throughout the country, so that’s all as to give customers a feeling of benefits. The second is through the compound fixing prices. McDonald’s main

meals and combination of a variety of food such as toys, cola and the appropriate package price and timeless payment coupons way. A big Mac as the example, has become one of the world’s economists do comment on all income of the pointer, McDonald’s use of price survey method as the selling price of the product standard. Not only all these speed up the ordering rate, increase sales, but also offers and attract consumers, creating a win-win situation of enterprises and consumers.

4. The place strategies in China

The place mainly consists of the distribution channels. The distribution channel is an organized system of marketing institution and their interrelationship that enhances the physical flow of ownership of goods and service from producer to consumer or business user. It is important so that the product is available to the customer at the right place, at the right time and in the right quantity. McDonald’s from the product source, supply, sales and other links, in the premise of ensuring product safety, make better service to consumers.

4.1 Strengthen the supplier management

First of all, in China, McDonald’s suppliers implement localization strategy, not only to ensure the quality of fresh ingredients, effectively saves transportation costs and procurement costs, but also reduce the outsourcing because of the weather, transport, customs, government policy can not predict the risk factors about. At present, McDonald’s all chicken ingredients and 85% of food packaging materials are to the Chinese local manufacturers to purchase, its overseas manufacturers to purchase only a small amount of fixed assets equipment. Secondly, star evaluation of suppliers, in order to standardize the supervision and management of suppliers, so there is a pop ular saying among suppliers: "Pass McDonald’s rating system

manufacturers, can smoothly and easily obtain national IS09002 quality certification accreditation."

4.2 Scientific and accurate location

McDonald’s has the standardization of distribution. For businesses such as McDonald's reliance on giant adult traffic in order to increase sales, the store location will undoubtedly have an important impact on the realization of its marketing objectives. Therefore, each openi ng McDonald’s have to undergo a rigorous selection process. As usual, the first step of McDonald’s location is in planning a general busines s scope, in this part, McDonald’s to collect a lot of information, decision must base on its own market positioning and business stability and maturity of the comprehensive consideration of the enterprise is entering the region. The second is to estimate and selection traffic generation. In the established business scope, further accurate specific shop address. McDonald’s stipulate that a chain store must be built in a busy commercial area, such as a large shopping mall, supermarket, school, or government office.

5. The promotion strategies in China

5.1Strong advertising

The various promotion channels being used by McDonald’s to effectively communicate the product information are given above. A clear understanding of the customer value helps decided whether the cost of promotion is worth spending. There are three main objectives of advertising for McDonald’s are to make people aware of an item, feel positive about it and remember it. The right message has to be communicated to the right audience through the right media. McDonald’s does its promotion through television, hoardings and bus shelters.

They use print ads and the television programmers are also an important marketing medium for promotion. The creative way of advertising is often the use of the existing brand visual elements--corporate logo M shape. The advertising is full of human touch, and the protagonist of the ads are ordinary Chinese people. Besides, in the part of graphic advertising design, McDonald’s focus on delicious food, through the display of the appearance of delicious food to the customers attractive to catch their eye, stimulate their desire to buy.

Posters and television advertisements are often used to promote the new product promotion form, its advantages lie in: first, the product is directly displayed in front of consumers, succinctly communicate to the consumer the information enterprises want to express, so that people firmly remember the brand. Second, it touches consumers taste nerve through visual stimulation, brings back the appetite of the customer, thus causes the customer’s desire, so as to achieve the purpose of sales promotion.

5.2Good public relations

Good public relations are intangible assets. McDonald's to build healthy food for the idea, carried out a series of marketing public relations activities. First of all, as the leader of Chinese fast food enterprises, McDonald's have full of enthusiasm to China’s public welfare undertakings. It helps children who in remote mountainous areas through various forms, such as donations to the "Hope Project", gifts the book album, held a variety of public cultural activities. Through these series of activities, McDonald’s show Chinese consumers a responsible, caring and good enterprise image, enhance the customer's recognition of the product, and forming a virtuous circle. In addition, every McDonald’s will held birthday party to children. The party not only has a special person in charge of site and facilities, but also

prepare birthday gifts and arrange the game interesting for the child. The original purpose of "birthday party" held by McDonald’s is not profit, but from the point of view of customers to think, in hope for reducing the pressure of the busy parents. At the same time, can also create a warm entertainment environment for children, and let children spend their wonderful childhood. It is McDonald’s people-oriented attitude, narrowing the distance with consumers, improve customer loyalty to their brand.

References

Website Sources

100 Best Global Brands 2009. Retrieved 2010-01-23.

Marketing Mix (bite size 4P's) British Broadcasting Corporation (BBC) Schools. Retrieved 2010-01-23.

“McDonald's history. Retrieved 2010-01-23.

Related to the internationalization of business like McDonald’s

Book

International Marketing; Sun Nin, Zhang Aiming; Published in 2001.6