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Group 01 2278503 4196747 7681247 B025727 B026799 International Marketing Dr. Essam Ibrahim 05/03/2012

Fast-food Industry

Table of Contents 1. Executive Summary 2. Introduction 3. International Marketing Analysis 3.1. PESTEL Analysis and Environmental Impact Matrix (Macro Environment) 3.2. Porter’s Five Forces – Fast-food Industry 3.3. Identification of Key Players and their Competitive Position 3.3.1. Strategic Groups 4. Key Player – Evaluation of International Activities 4.1. Identification of Key Player 4.2. McDonald’s International Market Entry Modes 4.3. McDonald’s’ International Marketing Mix (7Ps) 4.3.1. Product 4.3.2. Price 4.3.3. Place (International Distribution and Supply Chain) 4.3.4. Promotion 4.3.5. People 4.3.6. Process 4.3.7. Physical Evidence 4.4. International Branding 4.5. McDonald’s Internal and External Analysis 4.5.1. Internal Analysis 4.5.2. External Analysis 4.6. Strategic and Tactical Recommendations for McDonald’s 4.6.1. Short Term (6 months – 1 year)
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4.6.2. Long Term (1 – 5 years) 5. Concluding Statement 6. Appendices 6.1. Appendix 1 6.2. Appendix 2 6.3. Appendix 3 6.4. Appendix 4 6.5. Appendix 5 7. Bibliography

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1. Executive Summary This report provides an analysis of the international marketing environment of the global fastfood industry and evaluates the international marketing activities of McDonald’s, which is considered a key player. Firstly, the PESTLE framework is used to analyse external environmental factors influencing the industry. The Porter’s Five Forces framework is utilised to analyse the competitive rivalry within the industry, and its attractiveness for potential new entrants. Key players and their positioning was identified using a strategic-groups model, mapping brand value against global presence. Based on the industry analysis, McDonald’s was identified as the market leader and an examination of their market entry modes was carried out. Their international marketing mix was evaluated to identify



Bibliography: Websites Barboza, D (3rd August 2003), The New York Times, “If You Pitch It, They Will Eat It”. Available at: http://www.nytimes.com/2003/08/03/business/if-you-pitch-it-they-willeat.html?pagewanted=all&src=pm. Last accessed on 16/02/2012 BBC (1st April 2007), “Junk food ad ban comes into force”. Available at: http://news.bbc.co.uk/1/hi/health/6515245.stm. Last accessed on 23/02/2012 Blomberg Business Week (May 15th 2006), “Mickey D 's McMakeover”. Available at: http://mobile.businessweek.com/magazine/content/06_20/b3984065.htm. Last accessed on 16/02/2012 Cheema, P (2011), Logistics Week, “The Big Idea: McDonald’s Unravels its Supply Chain”. Available at: http://logisticsweek.com/feature/2011/07/the-big-idea-mcdonalds-unravels-itssupply-chain/. Last accessed on 29/02/2012 CNBC (2012), “The World’s Most ‘Liked’ Brands”. Available at: http://www.cnbc.com/id/45582325/The_World_s_Most_Liked_Brands?slide=8. Last accessed on 22/02/2012 Datamonitor 360 (2010), “Global Fast Food”. Available at: http://www.datamonitor.com/0199-2230. Last accessed on 20/02/2012 Datamonitor 360 (2012), “Global Fast Food”. Available at: http://360.datamonitor.com/Product?pid=3DED8EE7-42A1-4EA5-A9EC87AB5E740A02.Last accessed on 05/02/2012 Euromonitor International (2012) “Leading the Worldwide Consumer Foodservice Recovery Global Fast Food”. Available at: http://www.euromonitor.com/global-fast-food-leading-theworldwide-consumer-foodservice-recovery/report. Last accessed on 08/02/2012 Greenpeace (2012), “Solutions to Deforestation”. Available at:http://www.greenpeace.org/usa/en/campaigns/forests/solutions-to-deforestation/. Last accessed on 12/02/2012 Helm, B (2010), Bloomberg Business Week, “Ethnic Marketing: McDonald’s Is Lovin’ It”. Available at: http://www.businessweek.com/magazine/content/10_29/b4187022876832.htm. Last accessed on 22/02/2012 Interband (2011), “2011 Ranking of the Top 100 Brands”. Available at: http://www.interbrand.com/en/best-global-brands/best-global-brands-2008/best-globalbrands-2011.aspx. Last accessed on 20/02/2012 Lockyer, S (21st April 2011), Restaurant News, “McDonald’s Outlines Pricing Strategy”. Available at: http://nrn.com/article/mcdonalds-outlines-pricing-strategy. Last accessed on 01/03/2012 Lubin, G and Badkar, M (2010), “15 Facts About McDonald’s That Will Blow Your Mind”. Available at: http://www.businessinsider.com/amazing-facts-mcdonalds-2010-12. Last accessed on 21/02/2012 29 McDonald’s Corporation (2012). Available at: http://www.aboutmcdonalds.com/mcd.html. Last accessed on 14/02/2012 McDonald’s Corporation (2012). “Recruitment and training at McDonald’s”. Available at: http://www.mcdonalds.co.uk/content/dam/McDonaldsUK/People/Schools-andstudents/mcd_recruitment_training.pdf. Last accessed on 25/02/2012 Mintel (25th February 2011), “Quick Service Restaurants”. Available at: http://oxygen.mintel.com/sinatra/oxygen&list=wh_items/display/id=543094&anchor=atom/d isplay/id=543320/list/id=543320&type=RCItem&display=header. Last accessed on 17/02/2012 National Pollution Prevention Centre for Higher Education (1995), “Case A: McDonald’s Environmental Strategy”. Available at: http://www.umich.edu/~nppcpub/resources/compendia/CORPpdfs/CORPcaseA.pdf. Last accessed on 13/02/2012 National Restaurants Association (2012), Available at: www.restaurant.com. Last accessed on 08/02/2012 O’Connor, S (18th February 2009), Financial Times, “UK Consumers Develop Taste for Fast-Food as Recession Deepens”. Available at: http://www.ft.com/cms/s/0/8f28686a-fd5c11dd-a103-000077b07658.html#axzz1nsTUVSKB. Last accessed on 18/02/2012 Paynter, B (1st October 2010), Fast Company, “Making Over McDonald’s”. Available at: http://www.fastcompany.com/magazine/149/super-style-me.html. 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Available at: http://www.bbc.co.uk/news/magazine-14045305. Last accessed on 09/02/2012. 30 Journals Kilne, S and Botterill, J (2007), “From McLibel to McLettuce: childhood, spin and rebranding”, Society and Business Review, Vol. 2, No. 1 Shona Kerfoot, Barry Davies, Philippa Ward (2003) "Visual merchandising and the creation of discernible retail brands", International Journal of Retail & Distribution Management, Vol. 31 Issue: 3, pp.143 - 152 Text books Brown, A and Harwood, S (2010), “International Business: Globalisation and Trade”. Pearson Custom Publications Muhlbacher, Dahringer and Leihs (1999) “International Marketing”. London: Thomson Business Press. Pg: 1-201 31

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