Global Marketing Case Analysis Report - LopezB

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1 Burgers War in India 1. Many fast-food restaurants are located all over the world while some take into consideration cultural awareness. When considering culture differences in different countries, some companies succeed in adapting their products into different countries’ cultures while some companies struggle to adapt. According to the case study Burgers War in India, the cultural difference that challenged burger companies is that consuming beef in India is prohibited ( Grewal & Levy 2019). Cows are considered sacred in India, therefore eating beef is against their religious beliefs ( Grewal & Levy 2019). Burger companies like McDonald’s and Wendy’s normally serve burgers with a beef patty, but it is up to them to adjust their menu to make a successful marketing case in a country like India where beef is strictly prohibited. 2. McDonald’s has acted by creating vegetarian burgers when locating their restaurants in India. McDonald’s has adapted to India’s culture by providing vegetarian burgers that taste just as good as a beef burger ( Grewal & Levy 2019). They also created different types of burgers that supported popular India dishes. While McDonald’s is the market leader in India compared to other burger companies, Wendy’s has made some changes to their menu as well to meet the customer’s needs and wants. The first couple of recipes Wendy’s has introduced in India are mutton and veggie burgers ( Grewal & Levy 2019). Wendy’s has also added India popular seasonings such as coriander, turmeric, and chilies to their burgers ( Grewal & Levy 2019). 3. Burger companies have succeeded in marketing their food in India because they were able to adapt to India’s food culture by incorporating different ingredients and spices on to their burgers.

2 4. Some minor alternative strategies McDonald’s and Wendy’s could have done is to consider other marketing factors other than ingredients. Some other factors that could have affected their marketing strategy could have been their location, pricing, and advertising. Although McDonald’s and Wendy’s have done numerous changes and were successful at adjusting their menu to meet customers needs and wants, the other factors of marketing could have been taken into consideration. 5. McDonald’s and Wendy’s have made significant changes to their menu, but they still need to consider the other marketing mixes such as price, placement, and promotion. Not only did the burger companies adjusted to India’s culture with their product, pricing and placement needs to adjust with India’s food market as well. The burger companies must adjust their pricing and place their fast-food restaurants in the right location to have a successful marketing. Once the burger companies have adjusted their product, price, & place, they will need to know how to advertise. India may have a different method of advertising compared to the United States. Advertising is an important step to marketing a product. 6. The burger companies' ability to adapt to create a new menu and adapt to India's culture has allowed the burger companies to have successful marketing. Wendy's and McDonald's have exemplified their dedication by making their food appealing to customers and by changing their menus to meet the customers' needs and wants. Working with local chefs would make the burger companies' stand out more to their customers, by ensuring their foods satisfy the customers in India.

3 Successful Case: Starbucks in Mexico 1. Starbucks has been known to be the most successful coffee shop in Mexico. Starbucks has added over 750 stores in Mexico since 2002 (Lopez, 2023). The company ensured that it started with a variety of beverages while meeting the customers' preferences. Starbucks is continuously adding more stores due to its successful marketing. This is due to their significant marketing strategy of adapting their product, price, place, and advertising to Mexico's culture. The company is expecting to add 200 new stores by 2026 with an investment of 4.5 billion pesos (Starbucks in Mexico, 2022). 2. Although Starbucks has successful marketing in Mexico, there were some cultural differences the company has faced, such as religion, social interaction, and traditional beverages (Mexico, 2002). There are traditions and religious holidays such as Dia de los Muertos and Christmas that are to be considered in Mexican culture. Coffee consumption is viewed as a social activity in Mexico such as involving colleagues, friends, or family in gatherings (Mexico, 2002). Starbucks needed to create spaces in their stores to adapt to Mexico's social interaction culture. Consumers in Mexico prefer beverages like horchata or café de olla. Starbucks needed to incorporate local ingredients and flavors into its menu to adapt to its consumers' preferences. 3. Starbucks ensured to address the cultural differences in Mexico ethically and effectively to have successful marketing. Starbucks was mindful of Mexico's religions and, therefore adjusted its store hours and its menus accordingly. Starbucks added local flavors and beverages to their menu to address the cultural differences in Mexico by adding drinks such as café de olla and horchata Frappuccino’s (Lewis, 2018). There was also a lot of tailoring to the store's layout due to adapting to Mexico's social interaction culture

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4 (Lewis, 2018). Since coffee shops in Mexico are typically for social gatherings, Starbucks created an environment and more space to promote social gatherings in their stores. 4. The course of action that Starbucks took was successful because they were able to change their menu and store structure to meet the consumer's preferences. Starbucks exemplified its commitment and dedication to adapting to Mexico's culture and embracing its social norms, religion, and traditional beverages. Embracing Mexico's culture contributed to Starbucks's successful marketing. 5. An alternative strategy Starbucks could have pursued in Mexico is engage in community activities. Mexico has a lot of community events, and this is where Starbucks could have been involved. Starbucks could have demonstrated its commitment to Mexico's culture since part of Mexico's culture is social gatherings. 6. The best course of action Starbucks could take is to place their stores in the right locations where a lot of events occur. People in Mexico view coffee drinking as a social gathering. While placing their stores in the right locations, will help them with advertising as well. If Starbucks places its stores in locations where many events occur, it will significantly help them advertise their product. Although Starbucks adapted their product and price efficiently, placing and promoting could remarkably make their marketing more successful. Failed Case: Dunkin’ Donuts in India 1. While many companies have succeeded in marketing their products, some companies failed to market their products. Dunkin’ Donuts failed to capture India’s attention and it caused them to close most of their stores due to a lack of operational efficiency and

5 profitability (Sridhar, 2021). The company first opened its stores in India with the same American-style menu. It did not take long for Dunkin’ Donuts to notice that individuals in India were not interested in the type of menu Dunkin’ had. Indians prefer to have a sit- down meal rather than a grab-and-go meal. Individuals in India prefer their local cuisine which does not nearly fit Dunkin’ Donuts' typical menu. 2. The cultural differences that challenged Dunkin' Donuts' marketing in India were their health-conscious and different local cuisines. While Dunkin' Donuts attempted to market their sweet cuisine in India, the company struggled to attract customers. Individuals in India are very conscious about their health and sweets are not their ideal breakfast (Sridhar, 2021). Indian customers prefer to have a spicy traditional breakfast or other local breakfasts such as spiced potatoes, idlis, roti, and dosas (Sridhar, 2021). Not only were Indian customers not interested in sweets for breakfast, but they were also not interested in coffee as well. 3. After Dunkin' Donuts became aware of India's health-conscious culture and local cuisine preferences, the company took some actions to address the cultural differences. One of the actions that was taken by Dunkin' Donuts is they changed their menu to be healthier and not have sugary foods (India, 2023). Another action that was taken by Dunkin' Donuts is they localized their menu by using other ingredients and paneer (India, 2023). They wanted to meet Indian customers' breakfast preferences by adding their local cuisines to their menu. 4. Although Dunkin' Donuts tried to take actions to address these cultural differences, they still failed in marketing their products. Making their menu healthier did attract more customers temporarily until customers were dissatisfied with the flavor of their new

6 products. The customers were not satisfied after Dunkin' Donuts made the changes of adding local cuisines to their menu (India, 2023). Many Indian customers complained that Dunkin's new foods did not taste the same as their typical local cuisines. Dunkin' Donuts did not do any research nor communicate with locals on how to make their new foods taste the same as the typical Indian breakfast. 5. An alternative strategy Dunkin' Donuts could have taken is to hire to work with local chefs who are familiar with the typical Indian breakfast. If Dunkin' had worked with local chefs, they would have been more familiar with what spices to use and how to cook their dishes properly to meet Indian customer's needs and wants. Indian customer's preferences and tastes significantly differ from America's preference. Adapting to local tastes is crucial for Dunkin' Donuts marketing in India. 6. The best course of action for Dunkin' Donuts to take is to ensure their menu meets the customers' needs and wants. While Dunkin' did not fail in pricing, placing, and promoting their product, they should have put more dedication into perfecting their product before proceeding to the rest of the marketing mix aspects. In order to ensure their products meet the customer's preferences is to hire or work with local chefs. Once Dunkin' has adapted their menu to India's typical local breakfast cuisine, Dunkin' would have a significantly higher chance to succeed. Dunkin' Donuts needs to understand the importance of understanding local preferences in India when expanding into international markets.

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7 References Grewal, D., & Levy, M. (2019). M: Marketing (7th ed.). McGraw-Hill Education Lewis, J. (2020, August 25). Starbucks is the most successful coffee shop in Mexico . Medium. https://jerry-lewis.medium.com/starbucks-is-the-most-successful-coffee-shop-in-mexico- abe98761546c López, A. M. (2023, September 20). Number of Starbucks stores in Mexico 2026 . Statista. https://www.statista.com/statistics/463083/starbucks-coffee-shops-mexico/ #:~:text=Starbucks%20stores%20in%20Mexico%202002%2D2026&text=As%20of %20mid%2D2022%2C%20the,over%20750%20stores%20across%20Mexico. Mexico: Starbucks opens first Latin America store, plans to open more - members . Just Food. (2002, September 9). https://www.just-food.com/news/mexico-starbucks-opens-first-latin- america-store-plans-to-open-more-members/ Raj, S. A. (2021, June 30). Dunkin’ Donuts Fails to Wow the Indian Guts . ProQuest Journals - Online Journals & Magazines - LibGuides at COM Library. https://libguides.com.edu/c.php?g=649174&p=4554052 World Coffee Portal. (2023, May 17). Dunkin’ India closes stores amid ongoing coffee-focused rebrand . https://www.worldcoffeeportal.com/Latest/News/2023/May/Dunkin-India-closes- stores-amid-ongoing-coffee-foc#:~:text=Dunkin’s%20Indian%20franchisee%20Jubilant %20FoodWorks,the%20brand’s%20coffee%2Dfirst%20identity.

Global Marketing Case Analysis Report - LopezB

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