How McDonald's use Geographic Segmentation | Market Segmentation

Summary

McDonald'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

00:00

🌍 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.

Keywords

💡Geographic Segmentation

Geographic segmentation is a marketing strategy that involves dividing a market based on geographical locations to cater to the specific needs and preferences of consumers in those areas. In the context of the video, McDonald's uses geographic segmentation to create different products and marketing campaigns for different countries, which allows them to better understand and serve the tastes and preferences of local customers.

💡Fast Food Chain

A fast food chain is a group of restaurants that serve quick, convenient meals and have multiple locations. McDonald's is highlighted as one of the biggest fast food chains in the world, with locations in many countries. The video discusses how McDonald's adapts its menu and marketing strategies to different regions, which is a key aspect of its global success.

💡Market Needs and Preferences

Market needs and preferences refer to the specific demands and tastes of consumers in a particular market. The video explains how McDonald's tailors its menu and marketing to align with the local tastes and preferences of customers in different geographic locations, such as offering a teriyaki burger in Japan and a vegetarian McAloo in India.

💡Menu Adaptation

Menu adaptation is the process of modifying a restaurant's menu to suit the tastes and dietary requirements of a specific market. The video gives examples of McDonald's adapting its menu in Japan with a teriyaki burger and in India with a vegetarian option, demonstrating the company's strategy to appeal to local palates.

💡Marketing Strategies

Marketing strategies are plans or tactics used to promote a product or service effectively. The video discusses how McDonald's creates marketing strategies that resonate with consumers in different countries, such as promoting gourmet ingredients in France and aligning with football culture in Brazil.

💡Gourmet Fast Food

Gourmet fast food refers to high-quality, often more upscale versions of fast food dishes. The video mentions that in France, where there is an emphasis on high-quality food, McDonald's markets itself as a gourmet fast food option, focusing on the quality of ingredients and the use of local products.

💡Cultural Relevance

Cultural relevance is the degree to which a product, service, or marketing campaign resonates with the cultural values and interests of a specific audience. The video illustrates McDonald's efforts to be culturally relevant by aligning its marketing with local obsessions, such as football in Brazil.

💡Global Growth

Global growth refers to the expansion of a business or brand across multiple countries and regions. The video emphasizes the role of geographic segmentation in McDonald's global growth, allowing the company to establish a presence in over 100 countries and generate most of its revenue from international markets.

💡Risks of Segmentation

Risks of segmentation refer to the potential negative outcomes that can arise from dividing a market into different segments. The video points out that McDonald's faced such risks in Bolivia, where the local culinary tradition led to the closure of all McDonald's restaurants, highlighting the importance of understanding local markets.

💡Local Restaurants

Local restaurants are dining establishments that are owned and operated within a specific community, often serving traditional or regional dishes. The video mentions that in Bolivia, people prefer to eat at local restaurants serving traditional dishes, which contributed to McDonald's failure in that market.

💡International Markets

International markets refer to the economic environments outside of a company's home country where it operates or seeks to operate. The video discusses how McDonald's generates most of its revenue from international markets, indicating the importance of geographic segmentation in its global expansion strategy.

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