Mcdonalds-Target Markets and Modes of Entry-Free-Samples for Students

Question: Discuss about the 2 Service Industry on Market Entry Strategy and 2 for globalisation value proposition. Answer: Introduction Marketing is one of the most important functions of any organization. Today businesses have adopted a strategic marketing strategy in order to reach out to the targeted consumers of the brand in an effective manner. Various leading businesses from different industries have broken boundaries and spread across the globe. Today we have various leading brands which have left a significant mark on various geographies of the world (Strizhakova Coulter, 2015). This report throws light on two important strategies adopted by various brand. These two strategies include global branding and target marketing. This report also lays emphasis on various modes of strategies used by leading brands to travel across the globe and enter different countries. Global branding refers to brands that are recognized across the globe. Any business starts from the scratch but there are few businesses which spread across different parts of the globe into various countries. These brands like Apple Inc., Google, McDonalds, Starbucks, Marriott, Pepsi Co., and Samsung etc. are all global brands owing to their wide presence across different countries (Steenkamp, 2017). Target market involves those set of consumer whose needs the particular business wishes to fulfill. These are the customers who are specifically targeted by the brand. Every time, any business wishes to enter another country, there are various modes of entries that can be adopted by the business to ensure maximum reach and increased profits. Most common entry modes are franchising, licensing, exporting, and wholly owned subsidies as well as joint ventures. This report throws light on leading marketing strategies adopted by businesses from the hospitality industry as well as fast food industry. Both these industries form an important part of the service sector of any economy. Service industries believe in providing an experience to customers rather than a tangible product. For this particular report, the organizations in light are Marriott group of hotel, Accor group of hotels, McDonalds and Five Guys Burgers are global brands which have left a significant mark in the electronics industry. They are well known by people across all geographies. McDonalds and Five Guys Burgers on the other hand, have spread across different countries through effective modes of entry. Their target markets are discussed in the following part of the report. Global Branding Global branding refers to brands which are known globally. If any business is renowned across different parts of the globe, then the strategy adopted by the business is that of global branding. There are various aspects of the business that play an important role in making any brand a global success. Besides the quality of products and efficiency of service, brand positioning of the business plays a vital role in making the brand global (Alden, Chen Zhao, 2017). Brand positioning throws light on the positioning that the brand holds in the minds of its consumers. This position is built brick by brick through the brands logo, identity, colors, key people and promotional strategies used. Target market and modes of entry Target market includes those set of customers whose needs the brand wishes to fulfill or attempts to fulfill. Understanding the target market is crucial for any business to be able to understand the product offerings that are desired by its consumers. It is recommended that businesses decide their target markets in the early years of operation so as to make sure that the business fills some gap that exists in the business. Every time any business moves across different countries and decides to expand to varied geographical boundaries, it is essential that the mode of entry into a new country is predetermined. This helps businesses in ensuring maximum profit and larger acceptance in a new market (MacInnis, Park Priester, 2014). There are various modes through which businesses can enter into a new country. These modes are as given below: Marriott group of hotel Global Branding Marriott international is a group of leading hotels that was founded in America. It is a reputed chain of hotels spread across 110 countries. The group has over 6000 properties throughout the world. At the moment, there are 1.2 billion rooms that are owned and operated under the Marriott brand name (Wong Wickham, 2015). The group as a whole has a strong position across the globe and is a perfect example of global branding. Marriott hotels run using various brand names like Bvlgari, Courtyard, Renaissance, Westin, Tribute, Le Meridian, Sheraton and St. Regis etc. Hotels across the globe have a similar look, feel, quality of service and staff orientation. This makes it easy for customers to adopt to the hotel. People have started considering Marriott hotels a safe place to go to. This is especially true for international tourists who are reluctant to try local hotels. The high reach of consumers through different countries has made Marriott a truly global brand. All the 30 brands have different logos as depicted in the image above. These 30 brands target different set of customers. Some have segmented their customers on the basis of income and lifestyle while some have segmented their customers based on geography and demography (Vrkljan, Bartoluci ?iÃ… ¾mar, 2017). Marriot group of hotels caters to different customers need across the globe and this is what makes it a global brand. These customers include couples on their honeymoon, Luxury clients from income groups of the society, people who travel frequently for work, families on vacations, business professionals, corporate clients for conferences and meetings, young people for leisure and families for luxury weddings. Marriott as a global brand is well known to a large number of people. The brand has ensure effective advertising and unique promotions strategy (Lee, Kim, Seo Hight, 2015). Individual brands under the Marriott group have also become global brands owing to their wide reach and top quality customer service. Accor group of hotels Global Branding Accor group of hotels are well known across the globe. It is leading name in the hotel and hospitality industry. Accor group of hotels at present has operations in over 95 countries (Sen Kaushik, 2016). The group is a global brand with its ever increasing set of loyal customers and continued expansion programs carried out throughout the globe. The brand has more than 3700 franchised hotels under the Accor brand umbrella. Accor hotels are well known for the quality of their service, efficiency of their customer relationships and creativeness of their promotional strategies. This is what makes Accor group of hotels a truly global brand in all aspects. Accor group has customers throughout the globe. Different brand have different categories of loyal customers. Accor hotels are divided into three segments including economy, midscale and upscale. This division allows the brand to cater to a wide set of customer needs throughout the globe. This huge customer segment, extensive promotions and the uniqueness offered by each brand makes Accor group of hotels a global brand (O'Neill Mattila, 2010). Accor group has a wide presence across the globe. There are over 4000 hotels in various countries of the world. According to recent statistics, the number of Accor hotels are as below: Region Number of Hotels Number of Rooms Number of countries South America 287 45490 9 Europe 2853 321268 31 Middle East 104 31660 12 Africa 95 14034 17 Asia Pacific 778 157184 21 These hotels are spread across different parts of the globe. Catering to numerous customers every day, through 4113 hotels across different countries of the world, Accor group of hotels is truly a global brand. McDonalds Target markets and modes of entry. McDonalds in one of the leading players of the fast food industry. The McDonaldization of the world is not an unknown concept. The brand is spread across over 100 countries of the world. The business has adopted the strategy of Glocalization (Crawford, 2015). This is an amalgamation of the words global and local. The brand has been successful in identifying it target segment since the initial stages of the business. This is also evidenced by its wide reach of customers and presence across varied boundaries. At present, McDonalds is serving over 69 million customers every day. This has been possible owing to a presence of over 40000 outlets in different parts of the world. McDonalds has targeted its customers so effectively that most of its customers are fiercely loyal to the brand despite where they go. This is because of the similarity in the menu, taste, customer service, look and feel of the outlet throughout the globe (Elena, Cecilia Chiara, 2016). It is important to note that the menu across different countries is not same, but it is highly similar with a touch of the local flavors. This strategy has helped the brand reach the pinnacle of success today. McDonalds logo is one of the most well-known logos in the world. The colors chosen by the brand are also yellow and red which are easy to locate from a distance. More than the logo, the official mascot of McDonalds also known as Ronald McDonald is renowned throughout the world. Ronald is especially famous among children and is placed outside all McDonalds outlets irrespective of the country of operations (Bragg, Roberto, Harris, Brownell Elbel, 2018). McDonalds has a wide presence through different countries. The mode of entry chosen by McDonalds is franchising as well as wholly owned subsidies. The idea behind using this strategy was to ensure that the look, feel, taste, dcor, ambience, logo and outlet structure of the brand remains the same throughout the globe. Franchisee pays a fixed fee to the franchisor every year depending upon the terms of their contract. McDonalds has become a global brand due to many franchisees as well as wholly owned subsidies of the brand that exist in different parts of the world. McDonalds earns a large part of its business through its franchise fees given the large amount of franchisees that exist. Target market of McDonalds is very clear and strategic. McDonalds targets office going professionals who are always in a hurry and are looking for a quick snack. McDonalds Happy meals are targeted to attract young children and families with children. The competitive pricing strategy adopted by the brand targets youth as well as school and college students. Lastly, decent seating arrangements inside the outlets target people who wish to enjoy a snack. On the other hand, drive through areas outside the outlets target people in a hurry. Five Guys Burgers Target markets and modes of entry. Five Guys Burgers is a growing name in the fast food industry. The brand was founded in 1986 by Jerry Murrell, his wife and 5 sons. They started with a business of selling burgers and fries. Despite few adaptations, the business idea has remained the same since then. Currently the brand operates in US and UK but has been planning its expansion in Asian markets (Burke, 2012). However, before the brands entry in these markets, the brand has already made a significant mark in the minds of the people. At present, the brand operates through 1040 stores. These stores are either franchised or company owned. For its Asian entry, the brand is looking at getting into joint ventures. Franchising allows the business and the brand to maintain its crux irrespective of its country of operations. Five Guys Burgers has complete control over all its franchises and the owners personally visit these franchises to ensure brand name protection. The brand has a renowned identity and has a set of loyal customers. Joint ventures help any brand to tie up with a local brand before internationalizing into that country. Five Guys burgers target office going professionals who are looking for a quick snack. Families with children visit their outlet because of small gaming zones in the outlet. Young children as well as school and college students are lured to Five Guys Burgers owing to its competitive pricing of products. The effective knowledge of its target market as well as efficient entry modes adopted by the brand have paved a way for success for the brand. Conclusion Global branding is an important concept in the world of globalization. Every entrepreneur wishes to make the brand a global success. Once the business idea has been decided, it is important to understand the target market of the business. This enables marketers to understand the exact needs of the consumers (Armstrong, Kotler, Harker Brennan, 2015). Upon successful establishment of the business, the firm breaks its geographical boundaries and enters international markets through various modes of entry. These strategies are crucial to every business. This report discusses four leading brands who have aced the business world through adoption of effective strategies. 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