Where's the Pig Business - Case Study Example

? Where’s the pig Where’s the Pig? Executive Summary The case talks about one of the promotional activity that was followed by McDonald’s in 2010 in the regions of Singapore and Japan. Though it was the same promotional strategy used in both the regions, but yet it differed amongst both the areas. The context of the promotional tool used has been discussed based on the main theory of cross cultural marketing. McDonald’s is a brand with a wide global presentation and it has to adjust accordingly when it comes to diverse cultures. Cross cultural marketing is an important aspect that global brands have to pay heed to. The case states how the difference between the promotional activity in Singapore and Hong Kong created a problem for McDonald’s and how the firm eventually resolved the problem by taking appropriate measures. In 2010, McDonald’s incorporated a new promotional theme in its promotional activities. It decided to incorporate the Chinese astrology into its promotion. It found out that the Chinese calendar holds great importance for the Chinese people. The Chinese astrology comprises of 12 animal signs which include rat, ox, tiger, rabbit, dragon, snake, horse, sheep, monkey, rooster, dog and pig. McDonald’s started offering 12 little Doraemon toys each of which represented a Chinese zodiac sign. The promotion came to be known as Doraemon Lucky Charms Promotion. The toy was to be purchased by the customers along with the purchase of the McDonald’s Happy Meal. This promotion was successful when it was implemented in Hong Kong. The corporations faced no problem as 95 percent of the population of Hong Kong had a Chinese ethnicity. Case Issues The main problem was raised when the same promotional strategy was modified when implemented in Singapore. Singapore has a multicultural population and only 77 percent of the population belongs to the Chinese ethnicity. Rest of the population comprises of different minorities which include Muslims, Hindus, Christians and Catholics. Because of the multicultural population of Singapore and especially the Muslims, McDonald’s replaced the pig toy of its Doraemon Lucky Charms Collection with a cupid figure. This was mainly done due to the religious concerns of the Muslims who do not eat pork. This modification created a chaos for the McDonald’s Corporation and there was an upheaval in online blogs. The main point used to hit the corporation was that it does not respect the Chinese culture. McDonald’s was blamed for not conducting market research. Many critics raised a point that McDonald’s Corporation did not take sufficient time to think through the promotion. This whole modification stirred up a controversy as it offended the majority race in Singapore and was needed to be addressed before the brand image of McDonald’s got tarnished in Singapore. Another problem was faced when some customers said that there was no reason of buying an incomplete Doraemon collection set without a pig toy. It seemed like all minorities of Singapore except Muslims were not happy with this modification and on top of all it was the majority that got most offended. It was believed that on cross-cultural sensitivity McDonald’s over reacted. Malay culture prohibits the consumption of pork, but McDonald’s on its own perceived that Malays will be offended by a pig toy. In addition many customers, in order to gather the 12 pieces animal collection, had to order it through their friends who lived in Hong Kong. The promotion was offered in Hong Kong. McDonald’s finally realized its’ mistake and apologized to the public of Singapore through the advertisement and its website and announced that the pig toy will be available. But this was long after the lunar year. The corporation invited its customers who were interested in buying the pig toy to visit the website and click on the Doraemon Lucky Charms Poll to indicate their interest. The apology and availability of the pig toy did not please the masses instead pacified only some publics. It was found that subcultures responded differently to the toy but it was mainly the media discussion that fuelled their sentiments. Analysis of the Issues The whole purpose to summarize the case was to relate it to the consumer behavior. The success of McDonald’s is based on its consumers. The personality, self-concept of the consumer and perception of the consumer are very important factors for the organization. It needs to go in depth to understand the personality traits of its consumers and their perceptions. But before the organization do this; it first needs to understand the customer needs and motivation. When all of these are combined together, the firm will be able to offer what exactly the customer wants and can make more effective promotional strategies. In this example, McDonald’s was able to impel motivation in its customers. The Doraemon collection was a driving force that compelled the customers to buy those toys. Then it comes down to the point that each individual has needs which can either be innate or psychogenic. Psychogenic needs are that individual learns in response to culture. McDonald’s has catered to both the innate and psychogenic needs of the individuals. It provides its customers with branded food. Customer goals are very important when it comes to formulating strategies. Consumer behavior is goal oriented and marketers are concerned with consumers’ product specific goals. McDonald’s has used this goal approach quite well because it has used its brand name and people recognize this brand name and buy the brand and its associated products to fulfill their needs. Goals are also a means of motivation for the consumers. McDonald’s has aided its customers to set goals. McDonald’s has used Maslow’s hierarchical model to segment its target market. It targets the social needs of the consumers. Alternative actions Before implementing the promotional offer in Singapore, McDonald’s corporation should have studied the personality traits of its customers. Personality reflects the individual differences and this is exactly what happened in the case of the McDonald’s promotional strategy that was implemented in Singapore. People belonging to different ethnicities were not alike but were similar in terms that they all were to some extent offended by the modification in the promotional strategy of McDonald’s. It is believed by the marketers that any purchases made by the consumers reflect their personality. In case of Singapore, target market of the McDonald’s had an in-directed consumer social character. They relied on their inner beliefs and values to evaluate the offer. The extended self of the consumers who were disturbed by the non-availability of the pig toy relates to the conferring status of the possessions that they had. They wanted to collect the Doraemon collection because they believed it was rare. McDonald’s has a strong and positive brand image which leads to the consumers’ more favorable attitude towards the brand. The image creates a brand preference for the consumers, trigger high purchase intentions and also stimulate the factor of brand loyalty (Schiffman, L. G., & Kanuk, L. L. 1978; Peter, J. P., & Olson, J. C. 2010) The promotional activity carried out by McDonald’s helped the consumers to build a different perception of the brand. They associated themselves with the brand because what it offered was of great sentimental value to the Chinese and other ethnicities. In case of this promotion in Singapore, the expectations of the consumers came in conflict with the offer. The stimuli received more attention because of this sharp conflict. Consumers did not perceive the brand to modify its promotional offer but it did and this disappointed the customers. It created an upheaval amongst the Singaporeans (Schiffman, L. G., & Kanuk, L. L. 1978; Engel, J. F., Kollat, D. T., & Blackwell, R. D 1968; Wilkie, W. L. 1986; Hoyer, W. D., & MacInnis, D. J. 2001) Recommendations As a global brand, McDonald’s has a social corporate responsibility. In order to fulfill its responsibility, the main reason of modification in the promotional offer was to protect the minorities of the region. Instead the idea of protecting their beliefs backfired. The expectations of the customers came in conflict with the offer just because the pig toy was not a part of the Doraemon Lucky Charms collection anymore. It can be deduced that McDonald’s lacked a thorough market research while implementing its promotional strategy in Singapore. When there are diverse cultures present within the same region, the promotional strategy needs to be formulated very carefully. Corporations need to study the personality traits of its customers from different cultures. It should also understand the self concept and perceptions of its consumers belonging to different ethnicities. The corporation needs to understand how it can motivate the behavioral actions of its customers to make an action. All these need to be combined together in order to make an effective promotional strategy. One main thing that could be deduced from the case and also the concepts of consumer behavior is that consumer behavior differs among different individuals and it greatly differs amongst different ethnicities and cultures. A promotional offer that can be made to one region cannot be implemented in another region with slight modifications unless the cultures of both the regions coincide. Taking care of the minorities is an important concern for the global brands because if some conflict rises then the brand will have to suffer. Same happened with McDonald’s when it tried to take care of few minorities and could not find a way to protect the other minorities too (Peter, J. P., & Olson, J. C. 2010; Reynolds, T. J., & Olson, J. C. 2000; Lury, C. 1996; Mooij, M. K. 2004; Crawford, F. A., & Mathews, R. 2001; Mathews, G., & Lu?, D. 2001) Recommendations include that before formulation of any strategy; McDonald’s should carry out a thorough market research and should study individuals from different cultural backgrounds. Promotional strategies should be formulated according to the regions. McDonald’s should take care of the concept of the cross-cultural marketing. References Schiffman, L. G., & Kanuk, L. L. (1978). Consumer behavior. Englewood Cliffs, N.J: Prentice-Hall. Engel, J. F., Kollat, D. T., & Blackwell, R. D. (1968). Consumer behavior. New York: Holt, Rinehart, and Winston. Wilkie, W. L. (1986). Consumer behavior. New York: Wiley. Hoyer, W. D., & MacInnis, D. J. (2001). Consumer behavior. Boston: Houghton Mifflin. Peter, J. P., & Olson, J. C. (2010). Consumer behavior & marketing strategy. New York: McGraw-Hill Irwin. Reynolds, T. J., & Olson, J. C. (2000). Understanding consumer decision making: The means-end approach to marketing and advertising strategy. Mahwah, N.J: Lawrence Erlbaum. Lury, C. (1996). Consumer culture. New Brunswick, N.J: Rutgers University Press. Mooij, M. K. (2004). Consumer behavior and culture: Consequences for global marketing and advertising. Thousand Oaks, Calif: Sage Publications. Crawford, F. A., & Mathews, R. (2001). The myth of excellence: Why great companies never try to be the best at everything. New York: Three Rivers Press. Mathews, G., & Lu?, D. (2001). Consuming Hong Kong. Hong Kong: Hong Kong University Press. Read More