Mc Donald Case
Case II Marketing “McDonald's: is China Lovin it”
1. What are the general environmental forces that could influence or have influenced McDonald's development in China?
a. Demographic Environment • There was massive urbanization in China, captured in graphic bellow: (Opportunities)
[pic]
• In China there was significant economic growth, which reflected from per capita annual income growth. (opportunities) [pic] • Affluence people in China was increasing (opportunities) • In China’s there was rapidly growing middle class (opportunities) • In China there are many lower income consumers that could not afford at Western fast food chains, which charge $3 for a basic meal. (threat) b. Sociocultural Environment • Chinese customers are eager to try out burgers and fries, which were vastly different from local Chinese quick service restaurants. (Opportunities) • Big curiosity of Chinese about foreign brands and their-in-store experience that enable Western fast food and restaurant companies to set relatively high price for their food (Opportunities) • Chinese food tradition. Chinese meal, dishes were served on communal plates, which were placed at the center of a table for everyone to share. That different from what McDonald’s offers as western food, which serve on individual serving. (threat) • China’s rapidly growing middle class was also demanding higher standards. (Opportunities) • Fast food is already known in China, such as noodle and dumpling stalls. (Opportunities) • In the late 1980’s and early 1990’s the emerge of Western fast-food chains had change restaurant landscape in China through the different experience they offered to Chinese consumers: efficient self-service (threat), • Standardized servings, less reliance on eating utensils, a clean environment and a comfortable atmosphere. (Opportunities) • Young Chinese customers had a different view about Western
1. What are the general environmental forces that could influence or have influenced McDonald's development in China?
a. Demographic Environment • There was massive urbanization in China, captured in graphic bellow: (Opportunities)
[pic]
• In China there was significant economic growth, which reflected from per capita annual income growth. (opportunities) [pic] • Affluence people in China was increasing (opportunities) • In China’s there was rapidly growing middle class (opportunities) • In China there are many lower income consumers that could not afford at Western fast food chains, which charge $3 for a basic meal. (threat) b. Sociocultural Environment • Chinese customers are eager to try out burgers and fries, which were vastly different from local Chinese quick service restaurants. (Opportunities) • Big curiosity of Chinese about foreign brands and their-in-store experience that enable Western fast food and restaurant companies to set relatively high price for their food (Opportunities) • Chinese food tradition. Chinese meal, dishes were served on communal plates, which were placed at the center of a table for everyone to share. That different from what McDonald’s offers as western food, which serve on individual serving. (threat) • China’s rapidly growing middle class was also demanding higher standards. (Opportunities) • Fast food is already known in China, such as noodle and dumpling stalls. (Opportunities) • In the late 1980’s and early 1990’s the emerge of Western fast-food chains had change restaurant landscape in China through the different experience they offered to Chinese consumers: efficient self-service (threat), • Standardized servings, less reliance on eating utensils, a clean environment and a comfortable atmosphere. (Opportunities) • Young Chinese customers had a different view about Western