The world's best-known fast-food restaurant has always prided itself on high standards for hygiene and levels of service in its outlets, no matter which country it is operating in. It also aims to achieve uniform product standards throughout the world. The principle of a common world approach is also extended to the marketing mix used by the business $-$ same products, same decor, same promotions, same pricing levels. When the company first expanded internationally in the $1970$s, it was selling the 'American dream' but that is no longer acceptable in many countries of the world. The emphasis has now changed to 'global brand but local marketing'.

The need to be aware of cultural and religious factors when designing a global marketing strategy was made clear to the business when it was confronted with a lawsuit from Indian Hindus. McDonald's had to apologise to all religious and secular vegetarians for failing to make clear that beef flavouring is added to its chips in the USA. It is claimed that there are at least $16$ million vegetarians in the USA, who may have eaten these chips, and that they could be suffering from emotional distress as a result. In India, restaurant windows were smashed and dirt was smeared on statues of Ronald McDonald. Hindu leaders called for the food chain to be expelled from the country.

There are benefits to standardisation, however $-$ the McDonald's double-arch logo is now the best-recognised in the world, for example, and internationally standardised advertisements as used by Coca-Cola offer economies of scale as well as reinforcing the global nature of the brand.

However, McDonald's is not alone in increasingly adopting the 'think globally, act locally' concept. Products that are too heavily focused on American culture, tastes and consumer needs are much less well received in some countries than they used to be. Adapting well-known brands to meet the cultural and social demands of countries that are becoming more independent in their approach to business and marketing is now a priority for companies like McDonald's. In India, McDonald's had to move away from reliance on beef and now has an Indian menu with local flavours, such as McCurry Pan and Chicken Maharaja Mac. In France, the changes have been even more substantial. Red and yellow colours are replaced with more 'adult' colour schemes. External restaurant signs are discreet and blend in with the neighbourhood. There are real leather seats, gas fireplaces and hardwood floors. Organic ingredients are used and healthy-eating messages are displayed on every wall. French desserts are offered instead of the standard options and a big seller is le P'tit Moutarde $-$ a small hamburger with a French mustard sauce. McDonald's sales in France rose by $8 \%$ in one year after some years of much slower growth - perhaps meeting local needs and responding to national consumer tastes is the way forward.

McDonald's percentage sales revenue growth:

$$\begin{array}{|l|c|c|} \hline & \textbf{ 4th quarter 2013 \% } & \textbf {2 0 1 2 \% } \\ \hline \text{ USA } & -1.4 & 5 \\ \hline \text{ Europe } & +1.0 & 8 \\ \hline \text{ Asia, Middle East, Africa } & -2.4 & 11 \\ \hline \end{array}$$

Evaluate McDonald’s’ decision to change from a pan-global international marketing strategy to a global localisation approach.

Explain three examples of problems that might result from failing to link marketing decisions with other departments in the business.

Carlos Sanchez is a chef specialising in Spanish cuisine. He has always wanted to work for himself and has decided to open his own small restaurant. Property prices are too high in the capital, so he has moved to a small coastal resort about $100$ kilometres from the capital. He has many important decisions to make. He is not sure whether Spanish cooking will be popular with the locals and the tourists. He is able to prepare many other types of dishes too. He could open just a restaurant or a takeaway too. If Carlos offers takeaway meals, he could either serve these in plastic containers for microwave heating, which are expensive, or in paper trays, which are cheaper. Carlos has noticed that there are few other restaurants in the area and no takeaways, although one well-known fast-food chain has recently closed down. There are no other Spanish-based restaurants. After finding a suitable shop site, Carlos then has to decide whether to decorate it for younger people's tastes and have loud pop music or in a more sober style with traditional Spanish music.

Evaluate the usefulness of market research to Carlos as he plans his new restaurant.

Explain one use of the Boston Consulting Group matrix to a multi-product firm of your choice.

Evaluate the usefulness of cost-plus pricing as a pricing strategy in the Chinese car market.

Evaluate the impact of a rise in the adoption of smartphones and tablets on the promotional strategy of a business.

Salman Gasim is looking at the latest sales data for FarmGate dairies. As usual, there is some good news and bad news. The four main products are organised into business units. They record very different sales performances, and marketing decisions have to be made concerning the company's product portfolio. Here are the sales data:

$$\begin{array}{|c|} \hline \textbf{ \% market share of the market segment each product is sold in } \\ \hline \end{array}$$

$$\begin{array}{|l|c|c|c|} \hline & \textbf{ 2012 } & \textbf{ 2013 } & \textbf{ 2014 } \\ \hline \text{ Gold Seal milk } & 25 & 26 & 24 \\ \text{ Lo Fat yoghurts } & - & 7 & 6 \\ \text{ Churn butter } & 8 & 6 & 5 \\ \text{ Hi Energy spread } & 30 & 28 & 31 \\ \hline \end{array}$$

Gold Seal milk is the oldest-established product. Sales have not risen greatly over the last few years, but it is in a mature market. FarmGate has not promoted the brand for the last three years.

Lo Fat yoghurts were launched two years ago with a substantial marketing campaign. Although there is great competition in this 'health segment' of the market - it is becoming one of the fastest-growing segments in the high-profit-margin yoghurt market - FarmGate's Lo Fat product initially caught the public's imagination. Product developments might be needed to sustain consumer interest.

Churn butter had for many years been a weak brand in its sector. Frequent promotional campaigns and special offers had failed to create much consumer loyalty. Butter sales in general were suffering because of increasing health concerns.

Hi Energy spread was introduced to the market only five years ago. Sales took off immediately - partly due to very competitive pricing. Healthy eating habits were driving the market forward, but new brands are now making their presence felt. Should a further advertising campaign be introduced? Should the product be developed with a wider range of flavours?

Evaluate the usefulness of the Boston Consulting Group matrix as a model to guide marketing strategy.

Explain one reason why a human resources manager would find a sales forecast useful.

Compare and contrast company/corporate branding and own-label branding.

Determine how important qualitative research for GCB LTD company is.

Explain the advantages primary research has over secondary research.

We are a global food and beverage company operating in highly competitive categories and we rely on continued demand for our products. To generate revenues and profits, we must sell products that appeal to our customers and to consumers. Any significant changes in consumer preferences or any inability on our part to anticipate or react to such changes could result in reduced demand for our products and erosion of our competitive and financial position. Our success depends on: our ability to anticipate and respond to shifts in consumer trends, including increased demand for products that meet the needs of consumers who are concerned with health and wellness; our product quality; our ability to extend our portfolio of convenient foods and beverages in growing markets; our ability to develop or acquire new products that are responsive to certain consumer preferences, including reducing sodium, added sugars and saturated fat; developing a broader portfolio of product choices and increasing non-carbonated beverage offerings; our ability to develop sweetener innovation; our ability to improve the production and packaging of our products; and our ability to respond to competitive product and pricing pressures.

Evaluate the advantages and disadvantages for PepsiCo of changing its marketing strategy in response to changes in consumer preferences.

Compare and contrast the marketing of consumer services like hotels with the marketing of consumer goods.

The sales of Rajesh’s convenience store were recorded over a four-year period. The owner of the store has started to undertake a short-term forecasting exercise to help plan future purchases and stocks of goods.

$$\begin{array}{|l|c|c|c|c|c|} \hline & \textbf { Quarter } & \textbf { Sales (\$000) } & \textbf{ Quarterly moving} & \textbf{ Seasonal variation } & \textbf{ Average seasonal } \\ &&& \textbf{ average (trend) } & \textbf{ variation } \\ \hline \text { Year 1 } & 1 & 18 \\ & 2 & 24 \\ & 3 & 35 \\ & 4 & 27 \\ \hline \text { Year 2 } & 1 & 19 \\ & 2 & 26 \\ & 3 & 38 \\ & 4 & 29 \\ \hline \text { Year 3 } & 1 & 23 \\ & 2 & 27 \\ & 3 & 40 \\ & 4 & 32 \\ \hline \text { Year 4 } & 1 & 25 \\ & 2 & 30 \\ & 3 & 42 \\ & 4 & 35 \\ \hline \end{array}$$

Discuss the benefits and limitations of the moving average sales forecasting method for Rajesh.