Research paper on McDonald’s Corporation

4 P marketing strategy: PROMOTION as the core part of the global marketing strategy

The Propaganda of McDonald’s image as an outstanding example of quality, clear and high customers’ value with the help of active advertising company in the mass media and social events has become the distinctive feature of the corporation all over the world: “One of the methods employed is advertising, sometimes known as ‘above the line’ activity. Advertising is conducted on TV, radio, in cinema, online, using poster sites and in the press for example in newspapers and magazines. What distinguishes advertising from other marketing communications is that media owners are paid before the advertiser can take space in the medium. For example, to reach a single professional woman with income above a certain level, it may be better to take an advertisement in Cosmopolitan than Woman’s Own. To advertise to mothers with families, it may be more effective to take advertising space in cinemas during Disney films. The right media depends on who the viewers, readers or listeners are and how closely they resemble the target audience” (McDonald’s Corporation, 2008).

The usage of Ronald McDonald’s doll to increase the popularity of the trade mark among the children as well as the usage of particle Mc before the name of the dish to signify their outstanding belonging to the McDonald’s network has become proprietary mark of the company.
Sharing of the successful experience in the global measurements, reaching the desired effect, providing special measurements for attraction children (McDonald’s is considered to be the best child friendly café on the Post Soviet area) all these marketing strategies are aimed on the promotional tactics.

4 P marketing strategy: PRICE as the core part of the global marketing strategy

McDonald’s has never been using so called “low price effect”. The company seeking for the customer satisfaction and quality performance could not use the low price effects, as low price could not be the sign of quality: “Apprenticeships Talking Point Customers draw their own mental picture of what a product is worth. A product is more than a physical item; it also has psychological connotations for the customer. The danger of using low price as a marketing tool is that the customer may feel that a low
price is indicative of compromised quality. It is important when deciding on the price to be fully aware of the brand and its integrity”. The company took a number research to understand what price policy to develop and how it should be posed. The development of discount system, when ordering complex menu could be considered distinctive feature of McDonald’s

McDonald’s in Jamaica. The Fail of Successful Global Marketing Strategy

McDonald’s Restaurants opened in Jamaica in 1995: “Jamaica on September 27 became the 84th country to open a McDonald’s, which now operates 508 restaurants in the Caribbean and Latin America. The company’s expansion will continue, with country openings scheduled for St. Martin and Honduras during the next several months, company officials said. McDonald’s Jamaica operation is headed by Patricia Isaacs-Greene, a 20-year company veteran and a native of Guyana. She is former vice president for McDonald’s Detroit Region where she was responsible for more than 200 McDonald’s restaurants” (Ann Connolly, 1995). But the perfect, working all over the world strategy failed in the area and after 10 years McDonald’s closed the network of restaurants promising to be back soon: “There will be no more Big Macs in Jamaica. McDonald’s Corp., the world’s largest fast-food company, said Thursday that it will suspend business and close its eight restaurants in Jamaica later this month. The restaurants, all owned by the company, will close Oct. 14 as part of a “business decision,” said Maria Elena Santana, a spokeswoman for the restaurant company’s Caribbean Division” (Restaurant News, 2005). research paper
The previous detailed analysis of McDonald’s global marketing strategy makes an easy task to define the fail of the network in Jamaica. The global policy of 4 P won’t work their because of the region’s peculiarity. The first and the most significant fail were with the product and price elements of this strategy. Every region needs particular treatment and understanding of the national interest. The company revealed indifference towards the regional peculiarities of area, the traditional food and cooking. But placement of their quite limited menu, with typical for the States fries, sandwiches and cola were not accepted by the local dwellers.
Another significant element is price. It is well known fact Jamaica has a very poor industrial development; the majority of its inhabitants work in tourism and that is why the developmental policy that is applied in the well developed countries could hardly be used for Jamaica region. The price policy of McDonald’s was not suitable for the region that is why the general audience of McDonald’s in Jamaica was tourists. The result of implying global policy in the particular region caused significant decay and business decision aimed on closing the restaurant network in the island. Analysing the global marketing strategy I came to the conclusion that a number of decisions, such as widening of the menu, introducing vegetarian meals and different innovative meals alongside with classic menu (in Portugal McDonald’s you could order soup and in Indonesian McRice) have been invented after such a fail in the Caribbean area. The development of the right local policy in Jamaica could help the company avoid the global mistake. This particular country did not accept the global strategic thinking and ideas of McDonald’s corporation and the restaurants had to be closed. Another significant policy is price development. The United States with their income is quite bad example for the development of the policy in Jamaica restaurant network. That is why it would be suitable to develop the price policy dealing with the Jamaica financial realities. I think that Place and promotion elements are also very important but they did not actually played decisive role in the close of the McDonald’s Jamaica department. Personally I consider that changes in the network and their attitude to the product would make a good advantage for the international development and as for McDonald’s in Jamaica I think that pretty different strategy and involvement of national color into the McDonald’s fast food restaurants would help the corporation if the decide to re-open the network again. Now they have time to practice how it works in the other areas, but I think that every country needs development of the particular strategy.
In the end I would like to make a stress on the fact that McDonald’s is still considered to be very successful corporation in the industry. They have developed recognizable trademark and their fail in Jamaica would be a gold lesson for not implying the global strategy on the local realities. Personally I consider that McDonald’s would return to Jamaica with definitely new strategy. Providing such significant changes in the whole perception of fast food industry I think that further development of local restaurants and corresponding to the local needs.

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