How McDonald's use Geographic Segmentation | Market Segmentation
Summary
TLDRMcDonald's, a leading global fast food chain, employs geographic segmentation to cater to diverse customer preferences across the world. This strategy involves customizing products and marketing campaigns to suit local tastes, such as offering teriyaki burgers in Japan and vegetarian options in India. It also tailors marketing to cultural interests, like promoting gourmet fast food in France and leveraging football's popularity in Brazil. Despite the benefits, there are risks, as seen in Bolivia where McDonald's had to close due to a preference for traditional cuisine. Despite occasional setbacks, geographic segmentation has significantly contributed to McDonald's international expansion and revenue.
Takeaways
- 🌐 McDonald's is a global fast food chain with locations in over 100 countries.
- 📍 They use geographic segmentation to tailor their products and marketing to local tastes and preferences.
- 🍔 In Japan, McDonald's offers a Teriyaki burger and a Sweet Chili Shrimp burger to cater to local flavors.
- 🥔 In India, they've created the vegetarian McAloo Tikki burger to suit the local dietary preferences.
- 🇫🇷 In France, McDonald's markets itself as a gourmet fast food option, emphasizing quality ingredients and local products.
- 🏆 Geographic segmentation helps McDonald's develop new products and marketing strategies that resonate with local consumers.
- 🇧🇷 In Brazil, McDonald's leverages the national obsession with football in their marketing campaigns.
- ⚠️ Geographic segmentation carries risks if the business misjudges local customer preferences.
- 🇧🇴 McDonald's failed in Bolivia due to a lack of interest in fast food and a preference for traditional local cuisine.
- 📉 The company had to close all its restaurants in Bolivia in 2002 and has not returned since.
- 🌟 Despite setbacks, geographic segmentation has been crucial for McDonald's global expansion and revenue growth.
Q & A
What is McDonald's global strategy for adapting to different markets?
-McDonald's uses geographic segmentation to create different products and marketing campaigns for customers in different locations.
How does geographic segmentation help McDonald's understand its customers?
-Geographic segmentation allows McDonald's to better understand the needs and preferences of customers in different locations by dividing the market based on where people live.
What is an example of a product McDonald's adapted for the Japanese market?
-In Japan, McDonald's has adapted its menu to include a teriyaki burger and sweet chili shrimp burger.
How does McDonald's cater to the Indian market's dietary preferences?
-In India, McDonald's has created the vegetarian McAloo to cater to the dietary preferences of the local population.
How does McDonald's use geographic segmentation to develop new products?
-By segmenting the market, McDonald's can create menu items that cater to the different tastes and preferences of people in various locations.
What marketing strategy does McDonald's use in France?
-In France, McDonald's markets itself as a gourmet fast food option, focusing on the quality of their ingredients and the use of local cheeses and meats.
How does McDonald's appeal to Brazilian consumers?
-In Brazil, McDonald's focuses on football in their campaigns to appeal to the national obsession with the sport.
What are the risks associated with geographic segmentation?
-The risks include not understanding the local customers' preferences, which can lead to failure, as was the case in Bolivia where McDonald's had to close all its restaurants.
What was the outcome of McDonald's attempt to establish a presence in Bolivia?
-McDonald's had to close all of its restaurants in Bolivia in 2002 due to the local preference for traditional Bolivian dishes served at local restaurants.
How has geographic segmentation contributed to McDonald's global growth?
-Geographic segmentation has played a vital role in McDonald's global growth by allowing them to establish a presence in over 100 countries worldwide and generate most of its revenue from international markets.
What is the significance of McDonald's revenue being generated mostly from international markets?
-It signifies that McDonald's has successfully adapted its business model to cater to diverse global markets, which is a testament to the effectiveness of geographic segmentation.
Outlines
🌍 Geographic Segmentation at McDonald's
McDonald's employs geographic segmentation to cater to the tastes and preferences of customers in different countries. This strategy involves creating unique products and marketing campaigns tailored to the local needs and preferences. For instance, in Japan, they introduced teriyaki and sweet chili shrimp burgers, while in India, they developed the vegetarian McAloo. In France, McDonald's positions itself as a gourmet fast food option, emphasizing high-quality ingredients and local produce. In Brazil, campaigns focus on football to connect with the local obsession. However, there are risks; McDonald's had to close all its restaurants in Bolivia due to a lack of interest in fast food amidst a rich culinary tradition.
Mindmap
Keywords
💡Geographic Segmentation
💡Fast Food Chain
💡Market Needs and Preferences
💡Menu Adaptation
💡Marketing Strategies
💡Gourmet Fast Food
💡Cultural Relevance
💡Global Growth
💡Risks of Segmentation
💡Local Restaurants
💡International Markets
Highlights
McDonald's is a global fast food chain with locations in many countries.
They use geographic segmentation to tailor products and marketing campaigns.
Geographic segmentation divides the market based on where people live.
This strategy helps McDonald's understand local customer needs and preferences.
McDonald's menu varies by country to meet local tastes.
In Japan, McDonald's offers a teriyaki burger and sweet chili shrimp burger.
In India, they created the vegetarian McAloo Tikki burger.
Segmentation allows McDonald's to increase their chance of success in different countries.
Geographic segmentation aids in developing new products and marketing strategies.
In France, McDonald's markets itself as a gourmet fast food option.
In Brazil, McDonald's focuses on football in their marketing campaigns.
Geographic segmentation is not without risks, especially if the business misreads the local market.
McDonald's faced challenges in Bolivia due to its rich culinary tradition.
McDonald's had to close all restaurants in Bolivia in 2002.
Despite setbacks, geographic segmentation has been crucial for McDonald's global growth.
McDonald's has a presence in over 100 countries worldwide.
Most of McDonald's revenue now comes from international markets.
Transcripts
McDonald's is one of the biggest fast food chains in the world and they have locations in countries
all over the world did you know they don't offer the same products or promotions everywhere they
go they use Geographic segmentation to create different products and different marketing
campaigns for customers in different locations so what is geographic segmentation it's a strategy
that divides the market based on where people live by doing this they can better understand
the needs and preferences of customers in these different locations and then tailor
their products and promotions accordingly McDonald's are the masters of geographic
segmentation for example in Japan McDonald's has adapted its menu to include a teriyaki
burger and sweet chili shrimp burger and in India they've created the vegetarian McAloo
by segment in the market is enable McDonald's to create menu items that two different tastes
and preferences of people in these different locations increasing their chance of success
in these countries Geographic segmentation doesn't just help develop new products but
also helps to create marketing strategies that appeal to consumers in these different
locations and countries in France where there's a strong emphasis on high quality food McDonald's
has marketed itself as a gourmet fast food option focusing their marketing campaigns on the quality
of their ingredients and the use of local cheeses and meats in their menu however in Brazil where
football is a national Obsession McDonald's is focused on this in their campaigns foreign
again trying to appeal to customers in this specific location although Geographic segmentation
sounds perfect it does have its risks especially if the business doesn't understand customers in
this location McDonald's found this out the hard way when they opened several restaurants
in Bolivia McDonald's quickly realized that people in Bolivia were not interested in their fast food
as Bolivia has a rich culinary tradition and many potential consumers prefer to eat at local
restaurants that serve traditional Bolivian dishes resulting in McDonald's closing all of
its restaurants in Bolivia in 2002 and still to this day they have no restaurants in this country
despite these exceptions Geographic segmentation has played a vital role in McDonald's Global
growth it's allowed McDonald's great products and promotions they're tailored to the needs
some preferences of customers in different locations allowing them to establish a presence
in over 100 countries worldwide and now generating most of its revenue from International markets
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