International Marketing Analysis - Fast Food Industry

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International Marketing Analysis - Fast Food Industry

Table of Contents


Background of Mc Donald3

Situation Analysis3

Reasons for Poor Performance3

The Micro-Environment5

SWOT Analysis6





Competitor Analysis9

Marketing Strategy9

Market Segmentation10



Burger King12

Burger King and Its Advertising Campaigns14

Burger King and Its Promotional Strategy14

Burger King's Plans14


Socio-Cultural Environment15


Barriers to Entry and Exit17

Entry Barriers17

Exit Barriers18




Conclusion and Recommendation19


International Marketing Analysis - Fast Food Industry


Since the last two decades, the fast food industry has flourished to a great extent in terms of increased volume of revenues and popularity amongst various demographic and psychographic segments around the globe. It continued to prosper after the Second World War, when people with the economic affordability acquired the habit of eating their meals out. A number of researchers have considered that the two main factors that contributed towards the growth of the fast food industry are; the number of women engaged in labour has significantly augmented, and secondly, the household economy has also increased which allow families to carry out more meals away from home.

According to the famous theory of motivation coined by Maslow; the human beings always desire and exert to get better off. Once they fulfill their primary needs, they strive to achieve their secondary needs which range from physiological needs to those of self-actualization. People do not go to restaurants only to meet their physiological need of satisfying the appetite, but they also aspire to satisfy their needs for self-esteem and recognition by choosing the place of their own liking. Each person chooses a different restaurant which commensurate his purchasing power and disposition.

Background of Mc Donald

In 1937 Richard and Maurice McDonald developed a simple food processing and assembly line at a small drive in restaurant. Noticing an opportunity, Ray Kroc negotiated a franchise deal and eventually bought the brothers out in 1967. McDonald is now the largest and well know global fast food retailer.

Situation Analysis

In order for McDonald to analyse its situation; it must split its whole situation into four segments consisting of two external and two internal segments. Each one will help them to analysis the individual segments and aid them in decision making. This report will examine the two internal and external sectors together.

Reasons for Poor Performance

McDonald early success was evident because of their lower prices, faster services, and more consistent quality than competitors. Now, its competitors have improved their loopholes to a great extent and are equally matching McDonald quality and service. The fast food sector is near to saturation with an overcrowded restaurant's market and poor eating experience of people. Due to such conditions, McDonald was forced to close their 700 restaurants and rethink its marketing strategy to attract old and new consumers.

Domestically, McDonald failed to keep up with trends in eating towards healthier market meals. McDonald has maintained a uniformity of all its restaurants that worked well in its domestic market. However, the novelty of American eating style has faded and new consumer habits differ from those that were found in the 70s and 80s (Stone, 701-745).

With more health-conscious consumers, it is essential for the ...
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