pro 4

MCDONALD’S FRANCHISE 2

Country Project

Bhavik Patel

September 13, 2020

McDonald’s Franchise

McDonald’s is an international fast food and beverage franchise, originally founded by the McDonalds brothers in San Bernardino, California. The Company has since grown to other states and other countries. However, within its expansion Portfolio, Africa is one of the regions that the company has not been keen to open branches unlike other competitors like Kentucky Fried Chicken (KFC) and Burger King. The company uses bundled, and discount pricing to create differentiation within the market, which has successfully managed to attract a considerable consumer base.

The main products for this assignment are fried chicken, potato fries, non-alcoholic beverages, and the Mc Café which will sell at assorted prices according to their sizes and quantity for example quarter and kilo. According to statistics, there is an increasing trend in demand for fast food within in regions around the world such as Asia, Africa, and Latin America due to the influence of western cultures on developing markets whereby people in developing markets are quickly adopting to western attitudes and behaviors (Transparency Market Research, 2015). Changes in customer purchase behaviors whereby they tend to analyze the value in a product before the purchase in richer countries are the main reason behind the development of different marketing strategies adopted by the company in its pricing. Currently, the company’s representation within Africa is limited with only a handful of the company’s franchise chains in existence within the region.

Specifications

The proposed business model involves the use of existing supply chains within the country as a cost reduction and cultural adaptation strategy. This provision is expected to supplement the distribution of the company’s products and services within the local environment. However, there will need to be extensive training and development to align the employee behavior and attitudes with the organizational culture. The main aim will be to eliminate the risks that come with organizational changes such as costs of turnover during rehiring and negative employee attitude that affects the overall company performance (Dycus, 2014 pg. 8).

The African fast food market is still in its early developmental phase with most international companies gaining interest in the market and subsequently following suit in launching investments. This provision has been supported by the increased value for money and growing convenience trends within the region (African Fast Food Market Report, 2019). Thus the market exhibits enough viability for investment, especially with the effective financial portfolio of the company to facilitate the expansion strategies and creation of brand awareness across the region.

Currently, the company uses a bundled pricing strategy in developing competitive products of its products within the market. The strategy is designed to provide added value to customers on purchasing products in pre-determined bundles. With bundled pricing, clients can maximize the value of their money through cost reduction. It is also worth noting that most countries in the continent are third world countries hence the reason why the company should use a low pricing model within its marketing communication.

References

African Fast Food Market Report. (2019). The African Fast Food Market Report 2019. https://www.researchandmarkets.com/reports/4847047/the-african-fast-food-market-report-2019#rela0-4832729

Dycus, R. (2014). THE EFFECTS OF ORGANIZATIONAL CHANGE ON EMPLOYEE STRESS AND PRODUCTIVITY [Unpublished doctoral dissertation]. Southern Illinois University Carbondale.

Transparency Market Research. (2015). Global fast food market to grow through 2019 as developing markets urbanize. Food Logistics. https://www.foodlogistics.com/warehousing/news/12091421/transparency-market-research-global-fast-food-market-to-grow-through-2019-as-developing-markets-urbanize