Question

1. McDonald’s is a strong global brand, does their variety of food throughout the world help to strengthen or weaken their positioning and brand image?
2. From a cost and logistics perspective, would McDonald’s prefer a standardized or localized menu across the world?
3. What are the risks inherent in McDonald’s trying to compete in local markets against local “experts”? (For example, a Mexican menu item in Mexico?)
4. Is this approach (of localized menu items) likely to deliver more or less innovation across all of McDonald’s operations (worldwide)?
5. Taking these above questions in account, plus your other thoughts, list the advantages and disadvantages of this menu adaption strategy to McDonald’s.
6. And an easy question to finish with, what other product/menu ideas do you think that McDonald’s could introduce?

Answer 1

1. The variety of Food throughout the world helps to strengthen their positioning since the menu at McDonalds changes as per the culture of that particular country. Hence it helps build the brand in the minds of the local customers.

2. From a cost and logistics perspective, it better for McDonalds to have a standardized menu.

3. The risks are that the customers may never recognize the McDonalds brand if they fail to master a local recipe. The taste is very important for local menus and should include local ingredients and local produce.

4. This approach (localized) is likely to deliver more innovation since it tries to master local food.

5. Advantages: Easy brand attraction, easy of entry to local markets, easy availability of produce.

Disadvantages: Higher cost, training people to local tastes, customers not liking the McDonalds version of the local delicacy.

6. Mc Donalds can also look at introducing low fat and high nutrition food menu since most of McDonalds food like French Fries have a lot of oil and fat in them.