Challenges of Marketing Across

Cultures
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People now live in an "Ethics Era", where the International marketers are tailoring
changes according to society's expectations. Ethics are a set of moral principles that
govern a person, groups or cultural behaviour. Culture and expectations within culture
has an impact on all marketing business deals. It is essential to realize the expectations
of different stacks of culture around the world. Marketing ethics has developed in the
context of business ethics that reflects the interests of various stakeholders in the
exchange process (Carrigan, et al., 2005). Any company along with the moral issues
should emphasize on identifying, anticipating and satisfying customer needs. If the
companies seem ethical and follow the ethical codes and norms regulating their selfinterest, they will be recognized and appreciated by the consumers.
The above concept is demonstrated taking McDonalds as a company, which markets its
products in several different countries and how it has adapted its marketing mix in
Singapore and India conforming to different cultural characteristics:

McDonalds follows the policy what food manufacturers do i.e., taking into account the
homogeneous and heterogeneous cultures, understanding consumer differences from
the perspective of cultural, social, economic and other marketing environment elements
and search for common groups of consumers across countries, for International market
segmentation purposes. McDonalds follows the localized and global marketing
strategies wherein the potential elements of different cultures like language, needs and
wants, consumption patterns, market segments, socio-economic and marketing
conditions are well taken care. Consumers are given basic rights to be safe, to choose, be
informed and be heard.

Case Analysis of McDonald's

COMPANY NAME: McDonald's, Inc.

INDUSTRY: Food Service
COMPANY WEBSITE: www.mcdonalds.com
COMPANY BACKGROUND: McDonald's is the world's largest chain of fast food
restaurants, serving nearly 54 million customers daily. McDonald's is primarily seller of
hamburgers, cheeseburgers, chicken products, French fries, breakfast items, soft drinks,
milkshakes and desserts. More recently, it also began to offer salads, wraps and fruit.
Many McDonald's restaurants have included a playground for children and advertising
geared toward children, and some have been redesigned in a more 'natural' style, with a
particular emphasis on comfort.
As a company, McDonald's was first introduced in Des Plaines, Illinois in 1955. This
was the very first McDonald's restaurant, which all started in San Bernardino, California
in 1954 when Ray Kroc approached the McDonald brothers with a business proposition
to start a new company. In 1965 McDonald's went public and was later, in 1985 added
to the Dow Jones Industrial Average. (www.mcdonalds.com).

Case SWOT Analysis of McDonald's

Strengths:
McDonald's has a Strong Global presence. It is the leading fast-food organization in the
world with 32,478 (as of 2009) restaurants serving burgers and fries in 118 countries.
McDonald's has a worldwide brand image and reputation. It has the same strategy in
every market all over the world, but also takes into consideration the local beliefs and
likes of people of the respective country. That is the reason why, it is considered most
famous and loved brands in the world.
Innovative products to attract the customers: McDonald's launches several different
innovative products regularly to attract the customers such as: happy meals for kids,
giving away small toys with the kids meal, organizing birthday parties and other events
in the stores for the customers, considering the local favourites such as Aloo tikki burger
and Paneer salsa wrap in India.

McDonald's offers the consumers choice, reasonable value and great service.
Wi-fi Internet, play zones for kids at all the franchises.

Weaknesses:
Quality issues across the franchise network: Customers require the same quality of food
in all the franchises which McDonald's fail to achieve.
The core products of McDonald's does not meet the trend towards healthier lifestyles of
adults and kids.

Opportunities:
Healthy lifestyle food segment: Introduction of a new segment which supports the latest
trend of health conscious groups.
Growth of fast-food industry.
Joint Ventures: Joint ventures with the supermarkets such as costco.
Using more environment friendly products and processes can help them achieve socially
responsible tag.

Threats:
Social changes - Government, consumer groups encouraging balanced meals, 5 a day
fruit and vegetables.
Focus by consumers on nutrition and healthier lifestyles.
Competitive pressures on the high street as new entrants offering value and greater
product ranges and healthier lifestyles products. E.g. subway.
This document is a brief research on how McDonalds reinvents new menu for its outlets
in Singapore and India
in order to satisfy the taste buds of the consumers of different cultures:

Analysis on the Market strategies adopted by

McDonalds in Singapore (March 2006 to April
2009)
Singapore's social and ethnic fabric is a unique blend of cultures and people - Malays,
Chinese, Indians and now the expats. Singapore's lifestyle is multi-cultural with each of
these ethnic communities maintaining their unique way of life. Singapore's society is
cosmopolitan due to the influx of foreigners in recent times, The Free Library, 2008,
Singapore population boosted by influx of foreigners, [online], available at:
http://www.thefreelibrary.com/Singapore+population+boosted+by+influx+of+foreigne
rs-a0186685101 [Accessed 17th November 2010]. Singapore's population enjoys one of
the highest levels of health and nutrition in Asia. Singapore promotes a clean and green
environment. It encourages a healthy lifestyle and diet. Cleanliness and hygiene are
imbibed in its system. The government of Singapore has taken up many healthcare
reforms and educates its citizens through proper government channels (ex. Print Media,
Television, Internet, etc.).
Keeping in tune with the government policies and going by the history of McDonalds
which has a strong vibe for socio-cultural preferences of the people with regards to
eating habits. We can see the following trend and initiatives taken by McDonalds in
Singapore from 2006-2009

Singapore, 3 April 2009

McDonald's customers will enjoy a new grab-and-go value experience with the
introduction of Spicy Snack Wrap island wide on 30 March 2009. At just $2.50, the
Spicy Snack Wrap packs a punch with golden brown spicy chicken strip, fresh lettuce
and cheese with spicy Chipotle BBQ sauce wrapped in a tortilla. It's a convenient light
bite with a spicy kick for people on the move (www.mcdonalds.com.sg).
The new item in the menu is an extension of McDonald's commitment to providing
great value experiences - with no compromise on great food quality - for its customers,
in view of the current economic downturn. McDonald's wants to reinvent new recipes to

give its customers a variety of great tasting value experiences leaving their customers
with another reason to enjoy a new taste teasing their taste buds.

Singapore, April 10, 2008

'Kick off your day to a winning start with McDonald's latest innovation: the McGriddles
Breakfast SandwichMcDonald's customers have two choices: Sausage McGriddles or
Sausage McGriddles with Egg. As Breakfast Leader, McDonald's continues to innovate
and to find novel ways to meet evolving consumer tastes and hectic, changing lifestyles'.
McDonalds, 2008, Get your morning boost with McGriddles, [online], available at:
http://www.mcdonalds.com.sg/pr_04_10_2008.html [Accessed 16th November 2010].
McDonald's focuses on being a leader in its game by attracting its customers not just for
a grab when hungry but also enjoy a happy breakfast through its innovative breakfast
range which constitutes a quick, easy, convenient and tasty breakfast to a weekend
family breakfast.

Singapore, March 22, 2006

'McDonald's "SIDEKICKS" offers fresh new choices. Great value at $1 each with an extra
value meal. McDonald's is offering more choices and variety than ever before with the
launch of three delicious side items - Corn Cup, Fresh Salad and Apple Dippers.
choices that customers want - and reflects its ongoing support for the Health
Promotion Board's "eat 2 servings of fruit + 2 servings of veggies" public educational
outreach McDonalds, 2006, McDonald's "Sidekicks" Offers Fresh New Choices, [online],
available at: http://www.mcdonalds.com.sg/pr_22mar2006.html, [Accessed 16th
November 2010].
As mentioned previously Singapore's market is very health conscious and offering fruit
and veggies as sides to any meal, this is to meet the needs of the health aware consumer.
The consumer will feel that as they are getting part of their 5 a day fruit and veg, as there
has been much publicity on McDonalds not being healthy this will improve their
corporate reputation. Parents of children will not mind taking their kids to McDonalds
as in addition to the play areas installed in the majority of restaurants, they also have
healthier choices of food. One of the major market target area of McDonalds recently
have been children and parents of the children.

Analysis on the Market strategies adopted by

McDonalds in India (August 2006 to October
2009)
India is a diverse and a complex country. People of India reflect the rich glories of the
past, the culture, traditions and values relative to geographic locations and the
numerous distinctive manners, habits and food that will always remain truly Indian.
Food in India is wide in variety, taste and flavour. Being so diverse geographically, each
region has its own cuisine and style of preparation.
With all the above complex socio-cultural environment, McDonald's has successfully
adapted to the Indian market by offering a wide variety of tailor made menu list to cater
for the Indian market as it understands the importance of its presence in India because
of the economic growth of the country which has substantially grown in the past two
decades.

October 16, 2009

McDonald's Offers Potato Burger with Fries, No
Onions in India
'McDonald's, the chain famous for hamburgers tailors its menus to local tastes. Some
items, including the McAloo Tikki and Pizza McPuff, were exported to restaurants in the
Middle East. While locals expect the different menu, foreigners used to a Big Mac can be
taken aback by a Chicken Maharaja Mac. The mashed-potato sandwich is the highestgrossing item on the menu. It costs 50 cents in a nation where the World Bank says 456
million people live on $1.25 a day or less. That's enough people to form the world's
third-largest nation'. Bloomberg, 2009, McDonald's Offers Potato Burger With Fries, No
Onions in India, [online], available at: http://www.bloomberg.com/apps/news?
pid=newsarchive&sid=aS3rBACqZf7Q (accessed 16th November 2010).
As you can see the marketing mix across cultures that McDonalds have catered their
needs to the Indian population and based their pricing model to meet the majority of the
nations pay packets. This will enable McDonalds to reach a wider customer base,
potatoes form part of the Indian staple diet and can be found in abundance in North
Indian and South Indian foods such as Aloo Gobi and Masala Aloo. It can be seen how

well the marketing team has advised McDonalds in order to meet the needs of the
everyday consumer, this can be seen in how successful McDonalds has been worldwide.

April 2, 2007
Where's The Beef? Meatless McDonalds Burgers
in India
McDonald's restaurants can be found everywhere, including India. But as CBS News'
there is one menu item that's drastically different there: the burgers. 'In India, there's
something missing at the world's fast food giant: hamburgers. That's right - McDonald's
signature snack and its most recognizable symbol is nowhere to be found in one of the
biggest countries on earth. India is the world's vegetarian paradise. Nearly all of the one
billion people living here eat meat only occasionally, or not at all. Beef never shows up
on the menu. India is home to the Hindu religion, which preaches non-violence.
Believers fear the karmic consequences of harming other creatures'. CBS News, 2007,
Where's the Beef? Meatless McDonalds Burgers in India, [online], available at:
http://www.cbsnews.com/stories/2007/04/02/asia_letter/main2640540.shtml?
tag=mncol;lst;1 [Accessed 16th November 2010]
McDonald's provides a new menu range where people are not for beef and pork. There is
no beef in India because the majority of its 1.22 billion people are Hindus and revere
cows. It also doesn't serve pork items in deference to Muslims. Instead, it offers
vegetarian and chicken dishes with items starting at about 40 U.S. cents. All restaurants
have separate kitchens for vegetarians, including those who don't eat root vegetables
like garlic and onions. McDonald's believes in analysing and satisfying the tastes of
people of all different cultures.

Conclusion
McDonald's has successfully adapted to different ethical backgrounds by tailoring
changes in its approach in different cultural platforms by maintaining consistency in the
taste and quality of products and including more items in its product line at a great
value which is easily affordable by every hungry man who wants to grab a burger and
even a non-hungry man who is tempted to have a bite of the burger.

McDonald's celebrated 14 years of leadership in food serve retailing in India. It has a

network of over 160 restaurants across the country with its first launch way back in
1996. The success of McDonald's is the result of the company incorporating marketing
ethical values. The company not only emphasises on the theoretical elements of the
marketing mix by producing a good quality product tagged with a fair price but also
caters to the tastes, the likes and dislikes of various cultures across the world.
The market is purely culture based and by adopting the same McDonald's remains in the
leading edge (and is the world's largest fast food chain) of International marketing and
theory by understanding consumer differences from the perspective of cultural, social,
economic and other marketing elements.
McDonald's has successfully adopted to various socio-cultural environments and the
same can be clearly seen and illustrated by taking into account the growth of
McDonald's restaurant from 2006 to 2009 across the world
(http://www.wikinvest.com/stock/McDonald's_(MCD)).

McDonalds
2006
2007
2008
2009
Total Restaurants
31,046
31,377
31,967
32,478

Appendixes