Marketing Strategy on Indonesia free essay sample

The company I choice to do a marketing strategy on was McDonalds, â€Å"Ba Ba Ba Ba Ba I’m Lovin’ it†. I choice McDonalds because it is one of the most universal and internationally known companies that will always and forever be known for its beautiful golden arches and Ronald McDonald characters. Of course, I could have gone with Kentucky Fried Chicken or even Ikea but the thought of not talking about one of the happiest places on earth, and I am not referring to Disney World, would be a disservice to our American culture.McDonalds has dominantly globalized and franchised around the world and gives new meaning to what marketing really is about. It all comes down to the elements of the marketing mix, pursuing the right strategies, choosing the appropriate channel of distribution, and finding your target market. All in all, McDonalds has rapidly dominated the fast food industry and has been able to become a world power house, cross-bordering into international ma rkets. Target Market It’s all about â€Å"Location, Location, Location† and making sure the â€Å"Price is Right†.McDonald’s strategic placement of its fast food locations and affordable prices contributes to the total domination of the market. McDonalds does business in 117 countries around the world (â€Å"International Franchising Information†). They are everywhere, off exits, in large and small communities, internationally, and even in major superstores and airports, making it convenient for people to continuously come back for more. Knowing their target market consists of large families with kids and people who are pressed for time, McDonalds has made their menus more affordable and they give their consumers more for their money.Examples of this can be seen in the â€Å"$1. 00 Menu† or their â€Å"2 for 1 special†. Not only does McDonalds have convenient speedy service but it also provides a fun filled kid-friendly atmosphere. We have all seen those kids that drag their parents to McDonalds to get a happy meal and we shake our heads like really but that is called â€Å"Great Marketing†! Appeal to the kids, with the gimmicks and songs, and then they will bring the parents running. As consumers we look for great value, quality, service, and speed, in turn this brings repeat business and brand loyalty to McDonalds.Franchising and Branding Strategies McDonalds has definitely hit the mark when developing their marketing mix for their company. In every area they focus on the product, pricing, promoting, and production of their products. In exhibit 9. 6 on pg. 290, â€Å"Fast Food in Jakarta, Indonesia†, this shows an example of the U. S fast food franchisers from around the world penetrating international markets (International Marketing. 9th edition pg. 290). The typical reasons for the International expansion of franchise systems are market potential, financial gain, and saturated domestic markets.From a franchise’s perspective, the franchise is beneficial because it reduces risk by implementing a proven concept; and one key franchising concern is the need for standardization, without which many of the benefits of the transferred know-how are lost (International Marketing. 9th edition pg. 346). Typically, such standardization will include the use of a common business name, similar layout, and similar production or services processes. These factors contribute to the high degree of international reconcilability but however standardization does not mean 100 percent uniformity (International Marketing. th edition pg. 346). Even companies that are noted for following the same methods worldwide have made numerous changes in their product offering to appeal more to the local styles. Like the soft drinks and packaged-goods marketers that have led the way, the newest marketers of world brands are producing not necessarily identical products, but recognizable products. As an example, the success of McDonald’s in the world marketplace has been based on variation, not on offering the same product worldwide (What makes a Killer Franchise Brand).Had it not been for variations, McDonald’s would have limited its appeal unnecessarily and would have been far more subject to local competitor’ challenge (International Marketing. 9th edition pg. 346). McDonalds Pricing Strategies McDonalds focuses of four major pricing strategies: product line, promotional, penetration, and value pricing. Product line pricing is a unique pricing strategy that falls solely on their many product lines (McDonald’s Pricing Strategies). Economic conditions may change rapidly, thus warranting change in the product or the product line. During the Asian currency crisis, McDonald’s replaced french-fries with rice in its Indonesian restaurants due to the cost considerations. With the collapse of the local rupiah, potatoes, the only ingredient McDonald’s imports to Indonesia, quintupled in price. In addition, a new rice and egg dish was introduced to maintain as many customers as possible the economic hardship (International Marketing. 9th edition pg. 335). In order to appeal to the local demographic, international marketers must make sure products do not contain ingredients that might be in violation of legal requirements or religious or social customs.Since Indonesia is in a Muslim country, McDonalds â€Å"Maharaja Mac† is made with non-beef products (International Marketing. 9th edition pg. 336). Value pricing is used where external factors such as recession or increased competition force companies to provide ‘value’ products and services to retain sales. † The most notable and recent example of this is McDonald’s â€Å"Dollar Menu† (McDonald’s Pricing Strategies). McDonalds is always offering some type of promotion, such as â€Å"Two Sausage McMuffin’s for $3†. There is also penetration pricing.This is when McDonalds runs a campaign in order to gain some market share in the industry. Channel of Distribution Channels of distribution are becoming more global; that is, growing number retailers are now showing great flexibility in their strategies for entering new geographic markets (International Marketing. 9th edition). McDonalds has definitely reached world power and their cross-border alliances has given them the dominance to reach new markets rapidly (International Marketing. 9th edition pg. 86) Channel of distribution provide the essential linkages that connect producers and customers; it should be a team working toward a common goal.