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How some international brands manage to adapt their marketing campaigns in the world?

November 6, 2018

We pay special attention to how our customers are alike – and how they are different too. For that reason, markets and countries have latitude when it comes to menu marketing, community involvement and local business management. See McDonald’s around the world.

McDonald's embodies those companies whose marketing activities are localized to each country where the brand is established.

 

 

Is adapting marketing assets to the world enough for a brand?

 

McDonald's basic product lines include hamburgers and sandwiches, chicken, fish, salads, snacks, drinks, desserts, McCafe.

In India, McDonald’s has developed a special menu without beef, regarding the hindu religion. The menu still has chicken burgers known as Chicken Maharaja-Macs and cheese burgers called Big Spicy.

 

Moreover, in Malaysia, Singapore and Thailand, McDonald’s offers more beverages with durian flavor. Restaurants in Brazil include gura strawberry juice coming from the Amazon jungle. In Vietnam, McDonald’s is expected to put forward 2 or 3 suitable  dishes with local taste such as beef and chicken with Vietnamese taste.

 

But what about the pricing strategy?

 

The first McDonald’s store in Viet Nam opened in HCMC, it had attracted a lot of attention then. The price list was very competitive compared to the other brands at that time such as KFC, Loteria…

Accordingly, the price of a Bìg Mac will be McDonald’s  - sold at 85.000 VND ( $3,99) . This price is lower than the price of a Big Mac in The US $4,62, However it is quite high compared to other countries in the region.

In Malaysia, Big Mac costs only 7.40 ringgit ($2,23) , in Indonesia a Big Mac is about 27,939 rupiah ($2,30), and in the Philippines is 135 pesos ( $2,98)

 

If McDonald’s marketing strategies have adapted to the culture, then why hasn’t the brand taken off in Vietnam? McDonald’s  should have looked at data metrics.

 

The fast food industry represents more than half a trillion dollars a year, but there is one place where the company hardly takes off and that place is Vietnam..

There was lot of enthusiasm for McDonald’s first opening retail in 2014. The launch drew crowds of locals who waited hours to get their hands on a Big Mac but it seems like this hype has vanished, as only 14 stores have settled there since.

 

 

 

Part of the problem lies in the fact that McDonald’s  underestimated the impact of their local rivals. Vietnamese people are indeed attached to their street food habits. The Multinational is thus contending with unipersonal homemade cookers. If less impressive, this competition is although fiercer.

 

For example, Vietnamese people would rather eat “banh mi’ sandwiches, sold on the streets at rock bottom prices (0.20$).

78% of Vietnamese consumers’ cash goes to local vendors, only 1% went to fast food restaurant, Vietnamese food service sector has over 540.000 outlets. But as for fast food chain they count for just over 7.000 outlets in Viet nam.  We could easily see that the Vietnamese market is not ready for that huge competition based on Vietnamese market has gone through so much changes and it has not been adapted with fast food style.

 

Anything about Vietnamese history has a lot of growth, a lot of storefront are literally just people’s home, they live upstairs and they just convert downstairs into any sort of street vending option, they are capable of cooking a casual meal for everyone in the family which express the spirit of sharing of each member, that why it is more of family-style serving experience,

 

McDonald’s has a tough sell in Vietnam because its product is not really a food you are able to share with anyone, it shows Vietnamese culture in terms of a meal for every single Vietnamese family  It does not look like things will be getting better fast food chains any time soon. According to the brand in 2016, more Vietnamese customers are retreating from fast food chains each year. Traffic to fast food chains dropped 31% from 2016 to 2018 while visitor for street vendor were up 70% during two years span.

 

Implement an analytical tool to determine the aspects of your strategy which do not perform as expected. Google Analytics is a terrific resource for showing which marketing channels bring in the bulk of your  traffic and which do not reach your goal. You may also implement surveys to enrich your customer’s knowledge. Once you have this information, you can use turn this information into actionable insights.

 

Please take a look at our website www.drive-agency.com and do not hesitate contact us to know how we could improve your business.

 

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