Global Marketing Strategies of McDonald's: UK and Brazil

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7BU027 Strategic Global Marketing

Global Marketing Strategies of McDonald's: A Comparative Analysis of UK and Brazil

Executive Summary

Strategic global marketing plays a significant role in enabling multinational corporations to broaden their audience or customer base and improve the visibility of their brand on a global scale. McDonald’s, too, being an industry leader in an international scale, needs to oversee its marketing strategies or tactics in order to remain competitive and ahead of its competitors. The following report provides a complete analysis of McDonald’s strategic global marketing and operational strategies in Brazil and the UK, demonstrating the organization’s scalability in integrating local approaches with its global ones in both countries. It starts off by providing a comprehensive global portfolio of the company by analyzing its services, presence in other nations, competitive strategies and key activities. Then, the report showcases the strategies that McDonald’s uses in each country to adapt to its environments and how it affects the company’s marketing mix. It further shows the different approaches that McDonald’s undertakes in terms of business orientation and market entry strategy as well as targeting and positioning. Lastly, the report delves into the 4p’s marketing mix of the company used in both UK and Brazil. By enforcing the dual approach of combining standardization and adaptation, McDonald’s complements its global presence as additionally growing and enhancing customer satisfaction.

Table of Contents

Introduction................................................................................................................5

Global Profile of McDonalds..............................................................6

Mission, Vision & Objectives....................................................................6

Key Activities.................................................................................................7

Products and Services................................................................................7

Presence in Other Countries and Store Number.........................................8

International Competitors..........................................................................9

Competitive Strategy.................................................................................9

Macro Environmental Analysis.................................................................10

SCLEPT Analysis for United Kingdom..................................................10

SCLEPT for Brazil..................................................................................12

Micro Environment Analysis...................................................................15

Market and Consumer Analysis for UK and Brazil.................................15

Competitor Analysis for UK and Brazil....................................................16

Targeting and Positioning............................................................................18

United Kingdom.........................................................................................18

Brazil...................................................................................................18

Business Orientation...................................................................................20

McDonalds in the UK.........................................................................20

McDonalds in Brazil.......................................................................21

Market Entry Strategy...............................................................................22

United Kingdom...................................................................................22

Brazil....................................................................................................23

Marketing Mix.............................................................. 25

United Kingdom.............................................................. 25

Brazil............................................................................. 27

Conclusion................................................................. 30

References................................................................. 31

Introduction

Contemporary multinational corporations recognise the necessity of allocating resources towards strategic global marketing (SGM) in order to enhance their competitive position and increase brand recognition in international markets. This report conducts a comprehensive assessment of the SGM and operating strategy of McDonald’s in two specific nations, namely the United Kingdom and Brazil. It aims to analyse the micro and macro business environment of each country, as well as evaluate the benefits and limitations of McDonald's operations within those environments. Additionally, the report will offer an in-depth analysis of the business orientation approach and market entry strategy that McDonlald’s followed in order to entering the chosen foreign markets and compare them. Lastly, the report will address the segmentation, targeting and positioning (STP), along with the marketing mix enabled by the company with respect to the UK and Brazil.

Global Profile of McDonalds

Figure 1: McDonald’s logo (Logomyyay, 2017)

McDonald’s, which started off as a small restaurant in the year 1940, now stands as one of the world's topmost and leading companies within the fast-food meal industry (McDonalds, 2024a).

Below is a comprehensive portfolio of McDonald’s-

Mission, Vision & Objectives

McDonald’s has continuously revised its short- and long-term objectives to align with the changing dynamics of the global food service industry in order to sustain its competitive edge and thrive amidst fierce competition from other major multinational chains (Ha et al., 2021).

Figure 2: McDonald’s mission and vision (Pereira, 2023)

McDonald's current mission statement, as stated by Pereira (2023), is to become the preferred destination and company for customers to eat and drink. Their vision statement is to swiftly drive profitable growth and evolve into an even better version of itself, catering to a larger number of customers with delicious meals on a global scale every day (Pereira, 2023).

Key Activities

As the largest fast-food corporation in the industry, McDonald's places significant emphasis on its marketing and core product offerings, consistently adjusting to customer preferences for quality and convenience (Mcdonalds, 2024b). Furthermore, the corporation prioritises sustainable practices and actively implements environmental and social governance to match with global sustainability goals and strengthen community relationships (Mcdonalds, 2024b). In 2024, McDonald's aims to use its size and enhance speed and efficiency for customers, restaurant teams, and employees through its technological strategy (Law, 2024). In fact, the firm has significantly enhanced its strategic cooperation with Accenture and Google Cloud to include sophisticated Gen AI solutions throughout its operations, with the goal of optimising strategies and enhancing service delivery (Law, 2024).

Products and Services

McDonald's offers a diverse range of products and services, always adjusting its menu to meet the different preferences of customers worldwide. In 2024, the menu has been further modified in order to offer a more diverse range of menu that not only includes various types of burgers, such as the popular Big Mac and Quarter Pounder, but also chicken products such as McNuggets (McDonalds, 2024c). Additionally, there are breakfast items like the Egg McMuffin and McGriddles, along with a wide selection of beverages, sides, and desserts (McDonalds, 2024c). Furthermore, McDonald's is well known to provide a wide array of services aimed at ensuring consumer satisfaction and ease. The services offered comprise free Wi-Fi, McDelivery, PlayPlaces, Mobile Order & Pay for online orders as well as birthday party facilities (McDonalds, 2024d).

Figure 3: McDonald’s food (Berryman, 2024), (McDonalds, 2024c); McDonald’s services (McDonalds, 2024e), (Matthews, 2017)

Presence in Other Countries and Store Number

Figure 4: McDonalds presence worldwide (Statista, 2024a)

McDonalds, the leading global foodservice retailer in the industry, has a presence in over 100 countries with more than 40,000 outlets (Guillén, 2023). This substantial presence contributes to making the company the largest restaurant chain globally in terms of revenue (Guillén, 2023).

McDonald's extensive global presence can be demonstrated by its strategic presence in several countries, adapting its operations to accommodate to local preferences while maintaining a consistent global brand image (Guillén, 2023). In 2023, McDonald's had significant establishments in the United States, Japan, China, and various other countries, demonstrating its approach to both standardise core services and adjust to local markets (World Population Review, 2024).

International Competitors

McDonald's encounters significant challenges from several major competitors, each employing various strategic approaches, in a competitive environment dominated by multiple quick-service and fast-casual brands. Starbucks, for instance, distinguishes itself as a formidable rival of McDonald's by emphasising specialty coffees and high-quality ingredients, appealing to customers seeking premium products and convenience (Johnson, 2022). Chipotle Mexican Grill, again, is known for its hygienic and customisable Tex-Mex food options, as well as its ethical sourcing policies (Johnson, 2022). Burger King is another rival that competes directly with McDonald's both in terms of similar menu offerings as well global presence and revenue (Johnson, 2022). Moreover, McDonald's allocates resources to virtual enhancements in order to boost customer engagement and optimise operations. It also utilizes technology to customise its advertising strategies and optimise carrier delivery, ensuring flexibility in response to evolving market conditions and customer preferences (Johnson, 2024). The brand is aggressively seeking to increase its market share by increasing its presence in current markets through franchising and partnerships. This strategy is accompanied by a strong emphasis on developing products that are customised to meet the preferences and trends of local consumers in international markets (Osum, 2024). Moreover, McDonald's allocates resources to

Macro Environmental Analysis

The SLEPT framework offers a structured way for evaluating the external environment has on a company (Iberaehem, 2023). To assess this environment, all relevant factors including social, cultural, legal, economic, political, and technical elements are taken into account. The following presents McDonald's SCLEPT evaluation for the two selected countries, UK and Brazil-

SCLEPT Analysis for United Kingdom

SLEPT variables | Issues | Impact on McDonald's

Social

• The UK has been experiencing a shift towards healthier lifestyles lately (Mintel Store, 2024). 41% of adults consider their habits to be predominantly healthy, while another 44% admit to having a combination of healthy and unhealthy habits (Mintel Store, 2024).

To adapt to this trend, McDonald's may choose to prioritise their price and promotion strategies by increasing 'McPlant' alternatives and promote their initiatives to reduce packaging waste and improve energy efficiency in response to the growing trend towards fitness and sustainability in lifestyle choices.

Cultural

• The United Kingdom has a robust culture of pubs and cafes, which can influence dining habits by often prioritising smaller, local establishments over chain restaurants (Ferreira, 2018). In order to rival the local bar and café culture, McDonald's might focus on implementing localised advertising or promotion methods and highlighting the interconnectedness aspect of their brand.

In order to rival the local bar and café culture, McDonald's might focus on implementing localised advertising or promotion methods and highlighting the interconnectedness aspect of their brand.

Legal

• In the UK, all employees have the right to receive a minimum hourly wage called the National Minimum Wage, except for those who are ineligible (Jibble, 2023).

Adhering to employment legal rules ensures ethical practices but might increase labour costs, which in turn affects pricing strategies for McDonald's.

Economic

• The annual rate of real gross domestic product (GDP) of the UK has been estimated to have increased by 0.1% in February 2024, immediately after a growth of 0.3% in January the same year (ONS, 2024).

A robust GDP signifies a market with significant purchasing power, but McDonald's should be aware of economic downturns that can rapidly alter consumer spending behaviour. The company, as a result, might need to modify its pricing strategies and opt for even affordable options.

Political

• The UK possesses the world's leading business legislation, regulators that support creativity and innovation, a stout market infrastructure, as well as the highest standards in terms of corporate governance (The Global City, 2024).

Such political stability and infrastructure guarantees the steady functioning of commercial operations, but McDonald's must remain adaptable to adapt to changes in trade policies that may impact supply chain costs, and in turn, price.

Technological

• According to research, the increased use of artificial intelligence (AI) is likely to result in a £520 billion boost to the United Kingdom economy by the year 2030 (Amazon, 2024).

Technological advancements, especially in the field of artificial intelligence (AI), provide McDonald's with opportunities to improve productivity and increase customer experience. This can be achieved through AI-powered order taking systems and predictive analytics for inventory management, affecting its product and promotion.

SCEPT for Brazil

SLEPT variables

Issues

Impact on McDonald's

Social

• Brazil's working subculture is renowned for its emphasis on interpersonal connections and a hierarchical organisation within groups (Arnesen, 2024).

McDonald's should utilize promotions to introduce mentorship programmes that match local employees with international management to promote cultural exchange and professional growth. Again, the business may invest in product innovation to provide gadgets that specifically target health-conscious consumers, such as whole-grain options, organic products, or meals containing superfoods.

(French, 2014).

Cultural

• In Brazil, lifestyle is understood in a comprehensive manner, comprising the significant activities of daily life, established patterns of behaviour, various sports, and artistic endeavours (Perrone, 2023).

These findings indicate that McDonald's should expand its product offerings and implement promotion strategies that align with Brazil's diverse cultural landscape.

Legal

• Article 7 of the Brazilian Constitution grants urban and rural individuals the right to receive compensation for work-related hazards through the implementation of fitness, protection, and hygiene measures (Croneri, 2024).

By strictly adhering to Brazilian health and safety laws, McDonald's can potentially reduce operational expenses and enhance its reputation as a company committed to excellence and safety in the eyes of Brazilian consumers. The company should adapt its pricing strategies accordingly.

Economic

• The current exchange rate between the US Dollar and the Brazilian Real is 5.210, which is lower than the rate of 5.257 from the previous day (Ycharts, 2024).

McDonald's will need to implement strategic pricing, and may even have to use localised pricing tactics, in order to maintain profitability while not discouarging price-sensitive Brazilian customers due to the unpredictable fluctuations in exchange rates.

Political

• Brazil imposed heavy tariffs

McDonald's must be adaptable in modifying

and taxes on US- and other market-originating goods and services due to the lack of a free trade agreement (International Trade Administration, 2023).

its supply chain strategy to accommodate any trade limitations, which may require obtaining a greater amount of materials from local sources, impacting place and product.

Technological

• Technology has become a significant focus in Brazil's new commercial strategy, aiming to attract a total investment of BRL 300 billion ($60 billion) in this sector (Mari, 2024).

McDonald's may consider integrating new enhancements to optimise operations and enhance customer interaction, including through AI-powered solutions or data analytics for customer behaviour, affecting product and promotion.

Micro Environment Analysis

Market and Consumer Analysis for UK and Brazil

Aspect UK Brazil

Market Size As of 2024, McDonald's has a total of 1,433 locations in the UK, ranking it fourth among fast food businesses in terms of the number of stores (ScrapeHero, 2024). In 2022, the number of McDonald's restaurants run by Arcos Dorados in Brazil reached a total of 656, which is an increase of 25 outlets compared to the previous year ( López, 2023).

Market Trends McDonald's UK offers not just well-customized alternatives for their day meals, but also for their breakfast menu. The classic American hotcakes with syrup and sausage have been replaced with bacon rolls, quinoa porridge and bagels to accommodate the typical British breakfast preferences (Global McDonald's Menu, 2023). McDonald's has successfully taken advantage of the significant expansion of the Brazilian foodsservice business, which is expected to grow substantially, reaching a market size of USD 24.03 billion by 2029, with a compound annual growth rate (CAGR) of 6.73% from 2024 ( Mordor Intelligence, 2024).

Consumer Buying Behaviour The price is a determining factor for 59% of British consumers (Word Bank, 2019b). A significant 35% of UK consumers utilise comparison websites for this specific purpose (Word Bank, 2019b). In order to accommodate these customers, the fast-food giant introduced a new cost-effective promotion that includes three meal

options priced at under £5 (Gryphon, 2023).

aimed at delivering enhanced value for money.

Competitor Analysis for UK and Brazil

Aspect UK Brazil

Competitors Burger King, Pizza Hut, KFC, Subway, local, and gourmet burger chains are the primary competitors of McDonald's in the UK.

Burger King, Subway, Wendy's, Habib's, Bob's, Dominos, and local fast-food companies are McDonald's primary rivals in Brazil.

Strengths Through a comparative analysis of McDonald's sales in the UK, McDonald's proved to hold a significant market dominance over its competitors, reporting around $25.49 billion in 2023, a growth rate of 9.97% compared to the previous year (Stock Analysis, 2024). Yum! Brands, Inc., on other hand, consisting of fast-food chains such as KFC, Pizza Hut, and Taco Bell, announced a revenue of $7.1 billion in (Global Data, 2024).

McDonald's Brazil achieved a net revenue of approximately 5.4 billion Brazilian reals in 2021, making it the leading restaurant company in South America (López, 2021). Meanwhile, the Burger King franchise operating in Brazil generated almost 2.8 billion Brazilian reals in net sales, securing its position as the second highest earner on the list (López, 2021).

Weaknesses The BBC interviewed over one hundred contemporary female employees of McDonald's who revealed that they were frequently subjected to groping

McDonald's Brazil also claimed that staff were required to be continually present in the food chain without enough compensation (Muralidhar and Faheem,

and coercion (Nanji and Conway, 2023). Greggs, on the other hand, allocates 10% of its annual income to employees who have worked at the chain for at least six months (Kollewe and Butler, 2024).

2012). Subway, however, is renowned for its personnel policies, particularly in the areas of training and professional growth (Vitória et al., 2021).

Targeting and Positioning

United Kingdom

In United Kingdom, McDonald's follows a differentiated targeting by emphasizing youngsters as well as the family segment to draw children and their parents (Shaw, 2024). For example, ahead of the Easter week, McDonald’s released its first ever UK Happy Meal partnership with the multi-participant card recreation Uno, offering a line-up of characters from DreamWorks Animation franchises to entice child customers (Shaw, 2024).

Figure 5: McDonald’s x UNO (Shaw, 2024)

McDonald's is positioned as a fixture in British tradition, especially a few of the children (Hoste, 2023). It serves as a gathering location after nights out and is frequented with the aid of diverse social agencies, reflecting its significant acceptance and integration into everyday British life (Hoste, 2023).

Brazil

Like all other global markets, McDonald's in Brazil targets an undifferentiated demographic, reflecting its global strategy of catering to a wide range of customers, from children and families to young and middle-aged adults (Grey, 2023). Specifically, the brand focuses on individuals aged between 18 to 44 years, which forms a substantial portion of its customer base (Grey, 2023).

McDonald's in Brazil positions itself as not only a fast meals eating place, but also a part of the urban lifestyle. For instance, for breakfast purpose in addition to ordinary sandwiches, Pao de queijo (traditional Portuguese cheese bun), ham croissant, and Pao na Chapa (baguette kind bread) are supplied (Khan and Khan, 2013).

Business Orientation

McDonald's in the UK

In the UK, McDonald's tends to exhibit a geocentric orientation. While the enterprise does adapt to regional tastes, it places a higher emphasis on keeping a regular worldwide logo image. This approach displays a blend of worldwide and local factors wherein the enterprise integrates its international enterprise practices with minor local adaptations to in shape precise marketplace desires.

Although McDonald's in the United States has a limited range of vegan choices, the fast-food behemoth has made substantial advancements in other nations (Flink, 2023). For example, the McPlant burger is one of the popular and permanent vegan item on menus in the United Kingdom (Grealish and Walker, 2024). This burger consists of a Beyond Meat patty, vegan cheese, salad, and vegan burger sauce, all arranged on a sesame seed bun (Grealish and Walker, 2024). Another such item is the McDonald's Spicy Veggie wrap, containing veggie dippers garnished with pesto, tomato, rice, and yellow split peas (Grealish and Walker, 2024). Furthermore, there are supplementary vegan choices accessible, such as chicken wraps, fried vegetable dippers, French fries, mini carrots, and fruit sticks (Flink, 2023). Additional vegan choices encompass French fries. In January of this year, the Double McPlant was introduced at all McDonald's locations in the United Kingdom and Ireland (Flink, 2023).

Figure 6: McDonald's vegan burgers (Flink, 2023)

McDonald's in Brazil

In Brazil, McDonald's predominantly adopts a polycentric and regio-centric orientation. This method is characterized via a robust emphasis on adapting its strategies to satisfy nearby tastes and options, which is clear from its menu diversifications and marketing campaigns.

Shortly after entering the Brazilian market, McDonald's quickly recognised the importance of adjusting their menu to cater to the locals' preferences for maintaining a healthy lifestyle. Brazilian delicacies are known for their diverse flavours and ingredients (Edwards, 2023). McDonald's acknowledged the importance of incorporating these components into their menu and implemented the strategy of introducing local specialties to appeal to Brazilian customers (Edwards, 2023). The McFeijoada burger exemplifies this category of food, which is prepared with authentic Brazilian toppings, placed atop a black bean ring. To offer an extra option for a side dish, they introduced pão de queijo, a popular Brazilian snack consisting of cheese bread (Edwards, 2023). McDonald's further introduced large-sized mixtures to meet the Brazilian preference for bigger portions (Edwards, 2023).

In the UK, McDonald's blends global logo consistency with local variations just like the McPlant burger, catering to nearby vegan choices. Conversely, in Brazil, McDonald's deeply integrates flavours such as the McFeijoada burger, and larger meal sizes, emphasizing regional alternatives. Both techniques aim to stability global standards with nearby tastes, yet the UK technique leans more in the direction of worldwide consistency with minor local tweaks, while Brazil's method is closely targeted on customization to enchantment towards Brazilian culture and culinary tastes.

Market Entry Strategy

United Kingdom

McDonald's basically used direct investment method for entering the UK marketplace. The organization entered the UK in 1974 with its first establishment being in Woolwich in south-east London (Farrell, 2015). This strategic desire allowed McDonald's to hold strict manipulate over emblem control and operational standards. However, initially, McDonald's big losses, amounting to $10 million by using 1979 as it confronted resistance from the nearby market, in particular from parents who considered the restaurant as an unhealthy dining choice with junk food (Farrell, 2015). The turnaround in the UK marketplace started with focused advertising techniques toward youngsters, which progressively delivered extra families into their restaurants (Farrell, 2015).

Figure 7: McDonald's X Dynamic Yield (Moagi, 2022)

Later on, McDonald's strategic acquisitions and meeting operations further fuelled its achievement into the market. For example, McDonald's acquired Donatos Pizza in 1999 as part of a strategy to depart into specific meals sectors (The Daily Record, 2003). However, by 2003, McDonald's determined to refocus on its core business of burgers and fries, leading to the sale of Donatos back to its authentic proprietor, Jim Grote (The Daily Record, 2003). McDonald's also bought Dynamic Yield in 2019 for more or less $300 million dollars to assist modernize and personalize its power-via experience, outside menus and virtual ordering kiosks

(Schiff, 2022). Additionally, McDonald's has invested drastically in its assembly operations, with 4 Distribution Centres to serve its UK eating places (Mcdonalds, 2018). The biggest 3 are positioned in North Hampshire, Greater Manchester and Hertfordshire (Mcdonalds, 2018).

Brazil

McDonald's used the Co-operative with the Partner Investment entry method to enter Brazil. Specifically, they hired the joint venture technique after they first entered the Brazilian market in 1979 with a Rio de Janeiro entrepreneur, Peter Rodenbeck ( Hoge, 1981). Subsequently, in 1981, they improved via establishing a restaurant again in Sao Paulo through a joint project with Gregory James Ryan, a Sao Paulo-based totally businessman ( Hoge, 1981). Initially, these joint ventures were crucial for McDonald's to establish a foothold in the Brazilian marketplace, leveraging the nearby knowledge and networks of their Brazilian companions.

Figure 8: McDonald's football competition (Milosevic, 2018)

However, in 2002, John Rowell and other McDonald's franchisees experienced a significant decrease in their monthly earnings, dropping from 550,000 to 100,000 reais (Smith, 2002). McDonald's aggressive expansion worsened the financial pressure and caused accusations of lease manipulation and sales cannibalization by the company, which has also faced opposition from its own outlets (Smith, 2002). Nonetheless, McDonald's recovered through it by utilising sponsorships and strategic partnerships to establish brand recognition and expand its reach to a significantly larger audience in Brazil. For instance, McDonald's made an impressive partnership

during football matches, but it also facilitated the fast-food conglomerate's engagement with ardent football enthusiasts across the United States (Edwards, 2023). The company also collaborated with renowned Brazilian music festivals such as Rock in Rio to engage with music enthusiasts and endorse its brand (Edwards, 2023).

Marketing Mix

United Kingdom

Product: Adaptation

In the United Kingdom, McDonald's, fondly referred to as "Maccies," provides a menu that closely resembles its American counterpart, albeit with a distinct local influence. As an illustration, the food item referred to as "fries" in America is called "chips" in the United Kingdom (Relative Insight, 2022). The menu in the UK also includes specific items that are tailored specifically to local preferences, such as Cheese Melt Dippers and Nacho Cheese Wedges, which have been particularly popular among the British population (Relative Insight, 2022). McDonald's UK plans to launch a variety of exciting new devices in 2024, as well as reintroduce popular items such as the Quarter Pounder Deluxe and the Hot Cross Bun Pie for Easter (Robinson, 2024).

Price: Both standardization and adaptation

McDonald's provides a wide variety of food items, each with its own distinct price. The organisation implements a level of standardisation in its pricing to maintain uniformity and effectiveness of its logo across its worldwide operations (Mrockova, 2024). McDonald's employs a psychological pricing strategy by setting the price of their products slightly lower than a whole number, for example, £3.99 instead of £4 (Mrockova, 2024). The chain also employs a pricing strategy known as value pricing and bundling, which involves offering a discounted rate on the purchase of a complete meal in order to encourage customers to spend additional money through options such as the "glad meal," "combo meal," and "family meal" (Damilola, 2022). McDonald's Restaurants Ltd allocated a total of £89.74 million for advertising in the United Kingdom in 2020 (Statista, 2023). Approximately

one year ago, in the United Kingdom, the employer initiated an advertising campaign titled "Raise your Arches." The advertisement portrayed female colleagues in a work setting, likely during the lunch hour, discussing their plans to take a break at a McDonald's restaurant (Bugnion, 2024).

Figure 9: McDonalds Raise your arches commercial (D&AD, 2024)

Place: Both standardization and adaptation

McDonald's restaurants worldwide share a similar design and layout, encompassing both the interior aesthetic and the operational setup. This standardized design is also prevalent in the UK, where restaurants maintain the global McDonald's aesthetic, creating a familiar ambiance for customers regardless of location. Again, design studio UXUS has partnered with long-standing client McDonald's to create a restaurant that is centred around a new service concept aimed at satisfying the evolving habits of its customers ( Bamford, 2022). The restaurant incorporates various novel elements aimed at enhancing convenience for McDonald's digital customers when utilizing the Drive Thru, pick-up, and delivery services ( Bamford, 2022).

Brazil

Product: Both standardization and adaptation

In Brazil, McDonald's offers its products such as the Big Mac, fries, and McNuggets in the same manner as they are available worldwide. According to the source, McDonald's Brazil provides the Cheddar McMelt, which is specifically designed to suit the preferences of Brazilian customers (Schmalbruch, 2017). This product is a burger that includes a rich cheddar cheese sauce and grilled onions, specifically designed to suit the preferences of the local population (Schmalbruch, 2017). In Brazil, McDonald's customers also have the chance to enjoy the chain's well-known savoury breakfast options, including a croissant filled with chocolate (Schmalbruch, 2017).

Figure 10: McDonalds chocolate croissant (Schmalbruch, 2017)

Price: Adaptation

Although standardisation leads to cost savings, McDonald's pricing strategy is implemented locally rather than globally (Smith, 2016). McDonald's employs distinct pricing strategies tailored to specific countries (Smith, 2016). In 2024, Brazil became the sixth Latin American country where purchasing a Big Mac was the costliest, according to Statista (2024b). The Big Mac index is widely regarded as an indicator of the purchasing power of an economy. In January 2024, the average price of a Big Mac burger in Brazil was estimated to be $4.81, which represents an increase compared to the previous year (Statista, 2024b).

Promotion: Standardization

McDonald's maintains a consistent global image and corporate identity across all markets, including Brazil. The standardisation of the brand is crucial for ensuring easy identification and maintaining consistency. This is evident in the uniformity of emblems, core product services (such as the Big Mac), and overarching advertising themes (like the "I'm Lovin' It" slogan) (Gei, 2022). For instance, in Brazil, the customised slogan "Amo muito tudo isso" gained significant popularity, surpassing the direct translation "estou amando isso" in terms of effectiveness and cultural significance. It even had an impact on social media usage beyond advertising (Gei, 2022). In 2018, McDonald's allocated around 795 million Brazilian reais towards advertising in Brazil, which was a decrease from the nearly 832 million reais spent in the previous year (Navarro, 2023).

Place: Both standardization and adaptation

Figure 11: McDonald's new store Brazil (CSRWire, 2024)

McDonald's Brazil has introduced unique restaurant formats, alongside drive-thru, online ordering, and partnerships with meal delivery companies (Shastri, 2023). These new formats allow clients to obtain their desired food at a specific time and location, enhancing their overall experience (Shastri, 2023). Furthermore, according to a 2022 survey, sustainability and

environmentally pleasant practices were gaining attention amongst Brazilian customers, with more than 60 percentage of the populace being willing to pay extra for healthful and sustainable meals (Ozbun, 2024). McDonald's latest restaurant in São Paulo, Brazil, set a well-known for greater sustainable restaurant layout for these customers using customized targeting (CSRWire, 2024).

Conclusion

To sum up, this comprehensive assessment examined the strategic global marketing and operational strategies employed by McDonald's in different contexts, specifically the United Kingdom and Brazil. The report emphasized McDonald's ability to modify its business models, marketing strategies, and product offerings to conform to local preferences and regulations in different countries, while still maintaining a strong global brand presence. The organization's strategy for market access and commercial enterprise orientation varies, with differences in focus and positioning as well. The advertising mix in each country demonstrates a combination of standardisation to ensure global brand consistency and adaptation to meet local consumer demands, showcasing McDonald's ability to innovate and maintain global market dominance.

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