Week 6 Writing Journal

 Two new sources:

1. Jie, L. (September 9, 2008). McDonald’s growing in china. February 25, 2010. Retrieved from China Daily: http://www.chinadaily.com.cn/bizchina/2008-09/08/content_7007412.htm

I found this source by typing “McDonald’s research consumer behavior in China”. The main purpose I use this source is because I think I need more evidences to prove that McDonald’s has done a lot of research of local consumer preference in China before they sale the goods/service to the marketplace. Thus, I have a big found from this article, firstly, this article is written by Chinese editor and the source’s website is China Daily. It has more provided that the information from the source is correct. Secondly, the author stated that McDonald’s has founded focus group studies Chinese consumer eating behavior. It is useful and well to support my main point.

2. Tang H. (February 3, 2010). Drive through tips for china. February 25, 2010. Retrieved from Creaders.NET: http://www.creadersnet.com/newsViewer_english.php?id=667355

I found this by typing “McDonald’s drive through in China”. I need it because I think I didn’t provided enough evidence for McDonald’s drive through part on the last week journal. Also, this week I used this article to support my point which stated that McDonald’s drive through strategy is successful in China and bring a big jump to them to make more profit. This source is credible due to the author is Chinese editor and the website is Chinese newspaper as well. Moreover, on the article’s bottom, the author stated that the source of the article is Wall Street Journal which usually provided credible information to the readers. Therefore, I choose it to support my main point. However, I just want to mention about a new idea about my research after I finished today’s journal. I think in the future, I would combine this article’s information to my first paragraph which mentioned that McDonald’s has researched the local consumer preference and custom in China. Because in Tang words, he mentioned the drive through strategy success is due to the Chinese usually busy and it is a kind of lifestyle (it is similar as Chinese custom) of them. So, I will try my best to combine this idea next week.


 Synthesizes the sources into paragraph (I combine both old and new resources to make a completed paragraph):

In China, McDonald’s has adjusted their marketing strategy to create new flavors of the products. For example, McDonald’s has changed their menu a little bit different than the original menu in the United States. According to Adams (2008), “they seem to have found the magic touch for capturing that taste bud of people all over the world, even in countries that don’t eat beef, like India, or those that prefer rice, like the entire Asian region”. McDonald’s has researched local consumer eating behavior first and then decide to change the menu. Moreover, Hume (2010) stated that in addition to provide core menu which included Big Macs, McChicken, and Egg McMuffins in China, they has changed a little bit of menu in local city to fix the consumer preference. There is one information Hume (2010) provided, “In Hong Kong, the traditional Filet-O-Fish sandwich is the top seller. In Shanghai, McDonald's Spicy Chicken Filet Burger sells best, and a Spicy Filet-O-Fish recently was added” (p. 1). It evidences that McDonald’s would look at the sales reports and then decides what have to be changed in original menu. However, besides McDonald’s research local consumer preference, it has founded focus group studies to research more detail about Chinese eating behavior and custom. According to Jie (2008), “we do extensive focus group studies of Chinese consumers, and one of the things that Chinese consumers say over and over again is that 'we come to you because you are a Western brand, if we want to rice or congee we can eat at home or in Chinese restaurants, we want to sample the Western brand” (p. 1). Jie (2008) mentioned one example which McDonald’s produced right goods to fix the Chinese custom. The example is corn cup which is success introduced to healthy and nutrition Chinese consumer for offering a cup of healthy corn rather than French fries on the Happy Meal menu. As the sentence Jie (2008) stated, “It was invented by the McDonald's China research and development center and proved to be very popular due to its healthy content and flavor and it has been introduced to other Asian marketplaces” (p.1). Thus, research local information is an important step to any business. McDonald’s does well on it and perform their marketing strategy well in China.

McDonald’s successfully promotes the products into entire China region in recent years. It does really good brand marketing plan in China which is not only making good profit, but has been well-known for the China people. Also, the people most easily recognize McDonald’s and even the age from five to seventy. According to Griffith (2008), “Two decades ago, McDonald's was largely unknown here, except as a symbol of the decadent west. But a capitalist revolution has swept through the People's Republic. And today mainland China, still officially Communist, is home to 800 McDonald's restaurants — with 200 more in Hong Kong”. It represents that McDonald’s has grew very fast within two decades and has big market share in China.

In China, McDonald’s has created two niches which is drive through and locations open all night and it has excellent growing in selling. Niche means a special region demand from customers for supply special goods or services. Drive through and locations open all night strategy performs successfully in recent years and let McDonald’s become the restaurant leading place in China. There is one example talked about McDonald’s did the drive through service excellent while the Beijing Olympic Games in August 2008, “it has 770 units in China now (the first opened in 1990) and intends to have at least 1,000—and 50% of new stores with drive-thru windows—when the Beijing Olympic Games begin in August 2008” (Hume, 2010). Furthermore, in August for the Beijing 2008 Olympic Games, the McDonald’s global CEO declared that “the mainland's fast-food market was worth almost $200 billion last year and was growing 16 percent per year, sources from the Ministry of Commerce say. We are going to continue our growth at a faster rate in China, while it has little to do with the association with Olympics” (Jie, 2008). Drive through strategy is a huge market in China and make McDonald’s make more profit with it. There is one statement said by Jeffery Schwartz, chied executive of McDonald’s China business, “We see the future of China with cars, communities and houses spreading out, we think the potential for drive-throughs is huge” (Tang, 2010). What is more, The Associated Press (2007) mentioned that “Deutsche Bank's West added McDonald's drive-throughs have reported sales 15% to 20% higher than non-drive-through locations” (p.2). Drive through make McDonald’s earn more profit within a short period. As a result, drive through and locations open all night are two successful niches.

 Two questions:

1. How is my paper going so far? Is organization good or not? Do I need to reorganize my structure?
2. In my article, do you think I should talk more detail about McDonald’s marketing stratagem or do you think my main topic of McDonald’s is enough to continue the paper? For example, McDonald’s marketing way or their advertising with promotion which appeal to Chinese consumer.

Reference

Adams, B. (November 7 2008). Purple Slinky. February 8, 2010. Retrieved from: Nine mcdonald’s products that actually flopped:http://purpleslinky.com/humor/food/nine-mcdonalds-products-that-actually-flopped/

Griffith, W. (August 15, 2008). McDonald’s has a big appetite for china. Retrieved from: msnbc.com: http://www.msnbc.msn.com/id/26226387/

Hume, S. (2010). The road to china. February 16, 2010. Retrieved from: BuyerZone: http://www.buyerzone.com/professional_services/franchises/rbic-road-to-china.html

Jie, L. (September 9, 2008). McDonald’s growing in china. February 25, 2010. Retrieved from China Daily: http://www.chinadaily.com.cn/bizchina/2008-09/08/content_7007412.htm

Tang H. (February 3, 2010). Drive through tips for china. February 25, 2010. Retrieved from Creaders.NET: http://www.creadersnet.com/newsViewer_english.php?id=667355

The Associated Press. (September 17, 2007). McDonald’s china strategy. February 16, 2010. Retrieved from: Los Angeles Times- Article Collections: http://articles.latimes.com/2007/sep/17/business/ft-mcdon17?pg=2