Mcdonald's International Marketing Analysis Essay

8542 Words Feb 11th, 2011 35 Pages
MKTG 4400A

McDonald’s Corporation:
International Marketing Analysis

For: Professor Y. Pan
Date: December 18, 2010
By: Saber Kanwar (209093337)

Table of Contents

Executive Summary
McDonald’s Corporation currently markets its products across its 8 geographic segments through customizing its food items to suit local tastes and preferences. Furthermore, all advertisements are shot in 12 different languages, featuring the customized products catered to each region. However, the company’s international motto, “I’m Lovin’ it”, is not translated. McDonald’s locates all of its franchises in convenience locations such as malls, airports and local neighbourhoods.

These marketing strategies have proven to be effective, indicated by
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The Asia-Pacific, Africa and Middle East accounted for just 19.1% of revenues. The firm generates profits through company and franchisee operated restaurants. Franchisees provide a portion of capital for start-up costs, and pay a percentage of its profits to McDonald’s. Furthermore, the company recorded revenues of $22,744.17 in 2009, a decrease of 3.3% from 2008. This was largely attributed by a shift towards a greater percentage of franchised restaurants where McDonald’s receives rent and royalties based on sales percentage.

Key Statistics

Brief Financial Analysis:
The ratio analysis illustrates McDonald’s is in a healthy financial situation. Being a cyclical business, as the economy continues to recover; the company’s financial performance strengthens. Profits continue to rise while the firm pays down its liabilities. The ratios illustrate McDonald’s has experienced recent growth and imply future growth in all of McDonald’s geographic segments.

International Marketing Strategies McDonald’s international marketing strategies are based on the customization of products to local tastes and preferences, as well as language. Although globally, McDonald’s is well known for its beef and pork burgers; in particular countries, consumers do not eat such food products due to religion or differing culture. McDonald’s glocalization strategy can

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