McDonald’s Localization : Brand Unification or Menu Diversification ?

By studying the case of Mac Donald’s Strategy, one of the main problem the firm has to deal with, is its global identity.

In fact, McDonald’s aggressive localization strategy is opposed by some who feel that too much operation as local brand might create many challenges for the brand to maintain its global identity. Simon Anholt, a British author and founder of the Nations Brand Index, opined, “By putting local food on the menu all you are doing is removing the logic of the brand, because this is an American brand. If McDonald’s serves what you think is a poor imitation of your local cuisine, it’s going to be an insult.” He believes that McDonald’s should go the Coca-Cola way. Robert Goldin, executive vice-president at Technomic, a Chicago based food service, said, “McDonald’s may find it hard to match local’s expectations for domestic offerings. That’s not to say they shouldn’t try, but I think it’s a very difficult proposition.

In this blog, the author describes how Daniela Buglione discusses the evolution of a multinational towards a more “glocal” strategy: Even if McDonald’s takes risks and changes its brand image, it doesn’t mean that it damages it. While in the short term this strategy may prove effective in penetrating a foreign market, in reality it may be damaging on a longer time scale, almost cutting its roots as a fast-food company. We certainly cannot say at this moment in which the evolutionary process has just begun whether McDonald’s has truly “changed skin.” We can however say that even a multinational success like McDonald’s (which is seen as more than a product, rather a promoter of globalization) is becoming an example of the evolution of traditional multinationals into a ever-more “glocal” reality, finding in globalization and localization the factors that give it a strategic approach more suitable for a global market.

So even if some disagrees with McDonald’s strategy, this strategy seems to have been anythuing but profitable.

Glocalization, a new concept

What does exactly mean Glocalization (Glocalisation) ?

Let’s see the different definition that we found on the Internet:

According to Wikipedia, Glocalisation is a portmanteau word of globalization and localization. By definition, the term “glocal” refers to the individual, group, division, unit, organization, and community which is willing and able to “think globally and act locally”.

If we look another definition found on Google Blog by typing “Glocalization definition”, we found out that Glocalization is the process of changing products or services that are sold all over the world to suit people in differentlocal markets.

Glocalization serves as a means of combining the idea of globalization with that of local considerations. Thus, initially developing an understanding of globalization offers a great deal of assistance in beginning to understand the function and meaning of glocalization. As explained by Philip Hong and In Han Song, globalization corresponds to the integration of local markets into world capitalism. Manifested by global changes in structures of the economy, globalization entails a restructuring of the world economy and a spatial reorganization of production and consumption processes across political states. Once an understanding of globalization has been established, it becomes possible to advance to a fuller understanding of glocalization.

Finally, in line with the economic roots of globalization to which the process is closely related, glocalization is an important expression used within the business world. Proceeding from its Japanese roots, the concept is now also a popular approach for Western businesses today.

This was a theoritical approach,  let’s see now concret examples of this new phenomenon …

McDonald’s Glocalisation – Burgers without Beef?

McDonald’s entered the Indian market in 1996, and nbow you can find McDonald’s in everywhere of India.

It’s seems nothing special right? But remember, Indian think the cow is holy, they are very big on the cow worship – and McDonald’s is a expert in Beef Burgers. And Muslims don’t eat pork as well sa they think pork is a dirty animal. So,  McDonald’s in India do not provdie beef and pork. The beef in McDonald’s burger is just like the weapon of a solider, they proud of their high quality of beef. How can Mcdonald’s provide a hamburger without beef and still can expand in India? What menu did they provide? 

Yes, they don’t provide beef and pork in the Indian menu, they have McAloo Tikki™(with  a patty made out of potatoes which is very popular filling food in India, peas, and spices.), McVeggie™(with peas, carrots, green beans, red bell pepper, potatoes, onions, rice, and seasoning.) and Chicken Maharaja Mac™(with 2 grilled chicken patties and is topped with onions, tomatoes, cheese and something similar to chipotle mayonnaise.) and many different burgers and rolls with chicken or vegetable.

McDonald’s strategy is to listen more to local consumers and then act on it. This business model is Glocalisation, McDonald’s takes its benefits of globalization and adapts to the local market tastes. 

GLOCALIZATION or how to “think globally and act locally.”

Last month, Starbucks had announced a multi-million pound investment to launch its newly-engineered ‘British Latte’, as UK coffee drinkers become more discerning.

Indeed, the Seattle-based chain spent a year engineering its milk-steaming process specifically for the UK launch, and will also put an extra shot of Fairtrade espresso in each drink for free.

Thus, Starbucks continues its international expansion while adapting its products to local tastes and finally, it still refines its strategy of “glocalization”.

In the service sector, glocalization is widespread. But, what about glocalization in industry sector ?

It could be very interesting to focus on this glocalization and on the way that firms promote product in differents countries while expanding in the worldwide.

Puma Development and events

Development

local Puma

Bicycle frames throughout the store. Red painted walls which have to resemble typical Amsterdam doors. All to make the Dutch consumer feel at home in the newest Puma store located in Amsterdam. Puma has adopted a way to make every consumer feel at home in their store. They have applied the same concept in cities such as Munich, London and Barcelona.

Interactive

Fun-elements to keep the customer entertained are for example a phone which rings randomly. A curious customer who picks it up will get information about: the brand ‘Puma’ and upcoming events. In the back of the store you will find ‘Dylan’, a big white stuffed puma (the logo of Puma). People like to take a picture of the puma says Nora Schreier (puma marketing).

Events

One of the events Puma sponsors is the Volvo Ocean Race. The Volvo Ocean Race is a sailing competition around that word that is held every three years. The duration of the race is approximately eight months. Currently ‘Team Puma’ is in fourth place. The race started at November 5th 2011

What about mission statement ?

Mission statement is paramount in a context of strong competion.

As a creative leader in the sport sector, PUMA endeavours to be the most desirable sport lifestyle brand. Its purpose is to mix sport, lifestyle and fashion.

Nevertheless, PUMA extends its mission and then, contributes each day to a better world for the future generation. For its vision, a better world would be safer, more peaceful and more creative than today.

Thus, every day, PUMA set out to stay true to its values, to innovate, to inspire passion, to be sustainable and most of all, to be FAIR, HONEST, POSITIVE and CREATIVE in everything they do.

More blogs about PUMA’s mission statement : http://puma-sportss.blogspot.de/ and http://www.lovepuma-shoes.com/

Strong competitors for a strong competition

Now, a post that deals with the intense rivalry among sport wear textile industry.

There are many mighty competitors in this branch. The main competitor is Nike. With a revenue reaching $19 billion in 2011, Nike is the leader of the market. This American Company created in 1972 suffers nevertheless from severe criticisms about child labor and tough working conditions for its employees in Asia.

The second largest rival is its German brother Adidas, founded by Puma’s creator’s brother in 1948. Unfortunately for Puma, Adidas strongly outperformed its fellow brother. Coming from the same area, Puma has difficulties to compete with the $12 billion firm.

To finish, the last main competitor is Reebok. The $5.4 billion weighted English company has however become since 2005 an Adidas subsidiary. Created in 1895, this is the elder Puma’s competitor.

For more information about these competitors : Nike, Adidas & Reebok.

Why Puma ?

Why did we decide to choose the famous brand Puma for our assignement in Strategic Management ? 

It’s simple: Puma is a famous and dynamic brand, which has a great history. This brand has to deal with strong competition, that is why we found that interesting to study this firm, as it has great challenges to face.

A little bit of history first…

Puma is a German multinational company, which formed in 1924. The 63-year-old sportswear company owns around 9310 employees (2010) and has an annual revenue of €2.706 billion (2010). Such a sportswear empire was started by two brothers, Adolf and Rudolf Dassler. They original were workers of a shoe company, but after the World War I, they found their own shoe factory called “Gebrüder Dassler Schuhfabrik” (Dassler Brothers Shoe Factory). It was a small factory and the electricity supplies were unreliable, the scale of the company was very small. The 1936 Summer Olympics Game became the turning point for the company.

Adolf successfully persuaded the United States sprinter Jesse Owens to use the spikes made by them. Owens won four gold medals, and the business started to boom. However, the relationship between the two brothers deteriorated until the two agreed to split in 1948, forming two separate entities, Adidas and Puma. more info here

Hello! Bonjour! Hallo! 你好!

Our Team composed by Chloé, Caroline, Maxime, Matthijs and Frankie will present you a wonderful blog dedicated to the brand PUMA

Enjoy!