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McDonalds in Kazakhstan

McDonalds is considered by many to be the number one food service retailer in the world. With more than 33,000 locations serving nearly 68 million customers in 119 countries each day, more than 80 percent of McDonalds 33000 restaurants worldwide are independently owned and operated by attaining franchise. Over the last 50 years this system has provided quality foods, valued jobs and meaningful charitable support to the communities they serve. (McDonalds.com) McDonalds, besides from always gaining market share in fast food services, is considered as one of the most creative and active systems approach in the field of opportunities and jobs. It gives back great leaders in leader development. (McDonalds.com) According to them, foundation is laid upon three-legged stool of its owners/operators, suppliers and company employees in which they believe that the key to this mechanism is balancing the interests of all three groups. (McDonalds.com) On the other hand, they built a commitment to the community by supporting Ronald McDonald charities and creating resources to make the world a better place and open to improvement as they are a learning organization aiming to anticipate in markets that they dont have a presence in and respond to the customers as they change. (McDonalds.com) Furthermore, they have announced their global strategy with a plan to win by focusing on an exceptional costumer experience. The shape below shows the most important issues to this strategy

Expectation of the costumers forms all we do


They are hoping to achieve their world famous goal or as any of us would know QSC & V objection (Quality, Service, cleanliness and Value). One of the world's most recognizable logos M and spokes character (McDonalds clown) . According to the Packard Children's Hospital's Center for Healthy Weight children age 3 to 5 were given food in the McDonalds packaging and then given the same food without the packaging, and they preferred the food in the McDonald's packaging every single time. McDonalds is a community oriented, socially responsible company. They run Ronald McDonald House facilities, which provide room and board, food and sibling support at a cost of only 10 USD a day for families with children needing extensive hospital care. Ronald McDonald Houses are located in more than 259 local communities worldwide, and Ronald McDonald Care Mobile programs offers

cost effective medical, dental and education services to children . They also sponsor Olympic athletes. They successfully and easily adapt their global restaurants to appeal to the cultural differences. For example, they serve lamb burgers in India and in the Middle East, they provide separate entrances for families and single women. They have an efficient, assembly line style of food preparation. In addition they have a systemization and duplication of all their food prep processes in every restaurant. McDonald uses only 100% pure USDA inspected beef, no fillers or additives. Additionally the produce is farm fresh. McDonald serves 100% farm raised chicken no fillers or additives and only grade-A eggs. McDonald foods are purchased from only certified and inspected suppliers. McDonalds works closely with ranchers, growers and suppliers to ensure food quality and freshness. McDonald's takes food safety very seriously. More than 2000 inspections checks are performed at every stage of the food process. McDonalds are required to run through 72 safety protocols every day to ensure the food is maintained in a clean contaminate free environment.

Weakness
Their test marketing for pizza failed to yield a substantial product; Leaving them much less able to compete with fast food pizza chains. High employee turnover in their restaurants leads to more money being spent on training. They have yet to capitalize on the trend towards organic foods.

Opportunities
They would be the first Quick Service Restaurant to have FDA approval on marketing a low fat low calorie hamburger with low calorie combo alternatives. Provide optional allergen free food items, such as gluten free and peanut free. In 2008 the business directed efforts at the breakfast, chicken, beverage and convenience categories. ( example: hot specialist coffees not only secure sales )

Threats
They are a benchmark for creating "cradle to grave" marketing. Major competitors, like Burger King, Starbucks, Taco Bell, Wendy's, KFC and any mid-range sitdown restaurants. McDonald's is the leading global foodservice retailer with more than 31,000 local restaurants serving more than 58 million people in 118 countries each day. Marketing planning begins with a situation analysis that encompasses an examination of (1) the industry and its competitors; (2) customers, who they are, what they want and how they might be grouped together as segments; (3) the political economic, social and technological environment within which the organization operates; and (4) the organization itself and those factors that both help and hinder organization. (J. Darroch, 2009, Marketing Through Turbulent Times, Palgrave Macmillan, USA)

Kazakhstan has two main cities which are Astana, capital of the country, and Almata, ex-capital and second biggest city in the country. Geographical location of these cities can be divided as Southern and Northern parts of Kazakhstan. Objective of McDonalds is to settle in Almata and Astana and introduce product to customers. The key of McDonalds success in Kazakhstan market is gain loyalty and passion from Almatas and Astanas customers.

Almata and Astana Demographic segmentation is division of an overall market into homogeneous groups based on variables such as gender, age, income, occupation, education, sexual orientation, household size, and

stage in the family lifecycle, also known as socioeconomic segmentation.(L.E. Boone, D.L. Kurtz, 2012., Contemporary Marketing 15th ed., Cengage Learning) High population in these two cities allows opening more branches in order to have higher income and accessibility for customer. Average salary of the citizens affords to use McDonalds product. There is a lot of working industries in the cities, workers dont have much time for the lunch and opening McDonalds will be solution for quick meal. Most of the universities and colleges are located in these two cities. Students from university are the great working resource and additional customers. Economic environment refers to those economic factors which have impact on the working of business viz. economic system, economic policy, nature of economy, trade cycles, economic resources, level of income, distribution of income and wealth, economic legislation, etc. (T.R. Jain, M. Trehan, R. Trehan, 2010, Business Environment, V.K. (India) Enterprises, New-Delhi, India) Economic situation in the country is stable and tends to grow for a couple of years. It is great time and opportunity to settle product. Average salary of workers allows purchasing McDonalds product. For the first two years, big cities citizens have higher income therefore it will not be difficult to find customers if you sell quality product. The objective of a marketing mix is to establish the successive and simultaneous actions to influence the customers or users purchasing decision. (Unicist Marketing Mix, page 11, 2008, Peter Belohlavek, The Unicist Research Institute) There are four variables of marketing mix: Product, Price, Distribution and Promotion. The first one is a Product. Product is anything that can be offered to a market for attention, acquisition, use or consumption. Product brings the satisfaction of a want or a need. There are three levels of product: core, actual and augmented. Core product is what customer actually buys. The core product level is about the problem solving and basic benefits. McDonalds serves the food, which is the core product of this company. The next level of product is actual one. The actual product is the physical version of product. McDonalds is food serving company that sells exactly hamburgers, French fries and other fast food. The augmented level is not provided by McDonalds. In order to be profitable in Kazakhstan McDonalds will create the new products such as hamburger with Kazy (horse meat) or some kind of hamburgers mixed with local national food. Also the uniform of employees will be decorated with the national Kazakh ornaments.

Price is the amount of money charged for the product or service. McDonalds have to set the price according to two factors: internal and external. Internal factors: To follow the marketing objectives, McDonalds will set up the price according to product design, distribution and promotion to build up the effective and consistent marketing programs. External factors: McDonalds will be looking for the prices and costs of competitors. In Kazakhstan there are few companies, which provide fast food and the prices are exactly the same as the prices in Malaysias McDonald. Following this, McDonalds will charge customers in Kazakhstan the same price as in Malaysia. In Kazakhstan there are a lot of suppliers which can supply McDonalds. For example, the following country has Coca Cola Company based in Almaty. Also Kazakhstan is the one of top countries which sells the meat. According to current teenagers and young people in Kazakhstan, they would like to have McDonalds nearby or somewhere in their own city. Like it was said the company will be opened only in two main cities Almaty and Astana in the first two years. It will be done to ensure that the company will be successful in other cities. Sales promotion is a range of tactical marketing techniques designed within a strategic framework to add value to a product or service in order to achieve specific sales and marketing objectives. (R. Mullin, 2010, Sales to Promotion: How to create, Implement and Integrate Campaigns that really works 5th edition, Kogan Page Publishers). As the company in fast food industry promotion cooperates with other parts to achieve goal. Generally all people want to spend less money but to be fed. Public holidays when all people spend their time out of the home are the great time for promotion discount and special offer. With the purpose of attraction more customer McDonalds can give discount for usual customers Most of the people in Kazakhstan are Muslim. In period of Ramadan when all Muslim are fasting McDonalds can make special meal for fasting people. Customers love that company which takes care about their customers.

According to the information above there are good opportunities and ambitions of McDonalds in Kazakhstan. Almaty and Astana will be the key cities of introducing McDonalds and will make the company sure in future ambitions of McDonalds in Kazakhstan. In Conclusion, McDonalds in Kazakhstan will be successful and profitable.