Starbucks and McDonalds

Starbucks and McDonalds

Introduction

This paper intends to discuss the important different approaches that Starbucks and McDonalds employ in the application of 4 Ps (Product, Price, Place, Promotion) both domestically and internationally for the purpose of achieving their organizational goals successfully. McDonalds and Starbucks being strong competitors to each other tend to employ aggressive strategies in order to achieve maximum revenues and the exceptional growth across the world. McDonalds offer a variety of fast food along with coffee. On the other hand, Starbucks offer coffee with a variety of side lines. This paper will explore and determine the basic marketing strategies of both the companies McDonalds and Starbucks. This comparison will lead to addressing the strategic implications of applying different approaches to executing the 4 Ps in an international context. The paper will make the reader aware about the significance of Product, Price, Place and Promotion strategies for the multinational companies to maintain their presence and achieve stability in their business activities globally.

Discussion

Domestically

Internationally

Practice/Example

Rationale

Practice/Example

Rationale

PRODUCT

McDonald's

The Products offered by McDonalds domestically are a variety of fast food products along with a range of coffee. McDonalds initially started with fast food products; however, with the passage of time, McDonalds started focusing over coffee. Coffee is essentially an important part of the American society. The demand for coffee is immense domestically. The success of Starbucks and the response of people towards the coffee products urged McDonalds to start offering coffee. The products of McDonalds range from hamburgers, coffee, milkshakes, breakfast and salads.

The rationale behind the products offered by McDonalds domestically is apparent. The demand for fast food is immense. Moving into the coffee area was also an initiative to capture the high demands of people. I believe McDonalds seems to be become able to read the needs of people for the purpose of meeting their needs appropriately. Domestically; the products of McDonalds revolve around the choices of local citizens which is usually restricted to hamburgers and coffee.

The products of McDonalds internationally tend to change according to the needs and preferences of the local people. For instance, in India; beef is not appreciated or allowed to eat; therefore, McDonalds offers Vegetable Nuggets and Mutton Based Maharaja Mac (Douglas & Craig, 2011). Similarly, in Germany, beer is sold at McDonalds. McDonalds also offer Cold Pasta in Italy.

The rationale behind changing the products according to the needs and demands of people of international countries is to make the presence of McDonalds acceptable locally. For instance, if McDonalds do not change its menu in India; it cannot survive there. McDonalds also seem to offer its original menu in some countries with a little change in taste.

Starbucks

Coffee remains the basic product of Starbucks domestically. However, Starbucks initiated several side lines in order to cater the needs of diverse customers. Starbucks also offer huge variety of coffee products to be sold at super markets.

The rationale behind the main product offering of Starbucks domestically is that the Starbucks was initiated as a coffee focused business and ...