Mcdonald's Europe Strategy

 

The Golden Arch's Global Strategy

Once upon a time, the future growth, sustainability and direction of the McDonald's Corporation were unsure and in question. In 2002, McDonald's reported a quarterly loss; the first such event in the corporations celebrated history; causing a share price decline to $16. On January 1^st of 2003 CEO Jack Greenberg resigned and made way for the Vice Chairman and President Jim Cantalupo who implemented the “Plan to Win” growth strategy (McDonald's Corporation, 2002). This new mindset to incorporate People plus the four marketing principles of Product, Place, Price and Promotion helped change the culture of a business that had been on the decline for the 5 previous years. Implementation of Plan to Win began by focusing on the renovation of an out dated design that was decades old, easing of the international expansion; which was the previous method used by McDonald's to measure success and improving the menu. The global aspect of the ladder is what local businesses would do best to emulate in order to compete in the ever changing mega corporation dominated consumer markets.

Cultural Adaptation

When revenues were lagging in Europe; Denis Hennequin was tapped change the fledgling franchises in 2005. Denis first began as a Paris McDonalds manager in 1987. He started by creating eight restaurant designs franchisees can choose from. Then he modified the menu. Every year Paris McDonald's would substitute American cheese for one of their own beloved domestic cheese topped burgers. France being a world renowned high quality cheese producing powerhouse; took to it like mice. Some of the choices of cheese were Protected Designation of Origin; favorites that are engraved into popular french culture. This promotion was a  rousing success and adopted countrywide. Other innovations and cultural adaptations were continually introduced in the following years.

Mcbaguettes

In the year of our lord 2012; from February 15^th through March 21^st all of France will have the pleasure of enjoying a part of Americana topped with one of four French favorite cheeses on a baguette. Of course, this is France, so wine is commonly found on the McDonald's menu. How else would someone be able to compliment and truly savor the complicated undertones of a Mickey Dee’s burger crowned by a strictly regulated delegacy held to the highest standards of production proprietary to specific regions of earth? This current promotion followed the introduction of baguettes to the breakfast menu. Beginning April 1^st the more than twelve hundred golden arches spanning France will debut limited edition McBaguettes with the intent on attracting Gallic clientele. Analyzing data on sales allows McD’s to construct a specialized menu unique to the French people; rotating regional product best sellers creating awareness recognition for the brand. Anticipation for the limited edition products that are exclusive and time specific; gives pricing power to the market leader and has helped spawn the European market and the chains largest region based on revenues. Not bad considering their biggest global competitor Burger King closed all 39 France stores in 1997. The King was dethroned after 16 short years.   

Large Adagio, Please!

In Italy; McDonald's rolled out the Adagio and Minuet to; created by an Italian culinary aficionado chef Guaterio Marchesi.  An unorthodox partnering considering the states side reputation for the fast food giant is not one of gourmet meals. Marchesi’s Adagio contains mousse of eggplant, ricotta cheese, a tomato and beef. This combination is not an option an American expects when glancing over the menu of their local McDonald's restaurant. Granted; in North America preferences vary from region to region but usually fall under the category of condiment differences. Hold a pickle here; no lettuce there but ricotta cheese? These regions by region innovations to their menus allowed each McDonald's the ability to be reshaped into the image local consumers were comfortable with. This is how a corporation the magnitude of McDonald's is able to create flexibility and promote unique products that empower consumers at a good value.

German Engineering

Germany, Holland, Finland etc all have limited twists on the American classic. Local entrepreneurs can use this information already obtained by McDonald's and incorporate these same like menu blends. Linked and promoted to coincide with cultural heritage days of observance; a business operator can carefully construct a year round menu calendar using the successes and failures of the fast food leader. Price points are already established and the specialized ingredients cannot be purchased entirely by one buyer. Ensuring competition for these resources and protecting against monopolizing these resources. Adopting McDonald’s global strategy locally could build awareness and the perception of being a market leader.

             

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[1] Capell, K. (2008, July 22). McDonalds tastes victory in Europe. Retrieved from http://www.msnbc.msn.com/id/25784705/ns/business-us_business/t/mcdonalds-tastes-victory-europe/

[1] http://ec.europa.eu/agriculture/quality/schemes/index_en.htm

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(2002, December 5) McDonalds CEO Resigns Retrieved from:http://money.cnn.com/2002/12/05/news/companies/mcdonalds/index.htm

Pedroni, M.(2011, November 9) Adagio and Vivace Retrieved from:http://scienceofthetime.com/2011/11/09/adagio-and-vivace-two-dishes-for-the-marriage-between-haute-cuisine-and-mcdonald%E2%80%99s/

Miller, L. (2012, February 15) McDonald’s France promo pairs “baguette” burgers with famous cheese , retrieved from: http://www.gadling.com/2012/02/15/mcdonalds-france-promo-pairs-baguette-burgers-with-famous-che/

Zuckerman, E. (2011, July 29) McDonald’s: baguette to join hamburger on the menu, retrieved from: http://plus.lefigaro.fr/note/mcdonalds-baguette-to-join-hamburger-on-the-menu-20110729-520202