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Research topic: Corporate Identity

A comparison of individual perceptions of the Macdonald’s brand in China and UK

Table of Contents

 

1. Introduction .................................................................................................................... 3

2. Literature review.......................................................................................................... 3

2.1 Definition of corporate identity......................................................................4

2.1.1 Brand elements........................................................................................ 4

2.1.2 Corporate image...................................................................................... 5

2.2 Linkage between corporate and market communication............................ 5

2.3 Impact of corporate social responsibility..................................................... 6

3. Methodology.................................................................................................................. 7

 3.1 Data collection instruments....................................................................... 7

 3.1.1 Quantitative research............................................................................. 7

 3.1.2 Qualitative research............................................................................... 8

 3.2 Data analysis............................................................................................ 8

4. Limitations...................................................................................................................... 9

5. Timeline............................................................................................................................ 9

6. Conclusion.................................................................................................................... 11

7. References.................................................................................................................... 11

1. Introduction

Along with the economic globalization and the rapid development of economy and technology, the competition between enterprises are increasingly fierce. Under the market economy conditions, how a company could standing out among its competitors has been drawn much attention by the operators. In  recent 15 years, corporate identity has become a hot words and an important business activity especially under the influence of some successful multinational businesses and century enterprises, a powerful corporate identity has been regarded as a vital ticket to the way to success (Otubanjo & Amujo, 2012). Macdonald’s corporation as a typically successful global brand, it has been paying a lot of attention to its corporate identity. For this kind of international brand, It is necessary and important to research the individual perceptions of different areas’consumers about its brand to improve their performances (John & Monga, etc. 2006). However, China and UK are supposed to be typical markets in Asia and Europe (Marketline, 2012), so the research work will choose this two country to have a comparison for customers’ individual perceptions.

The purpose of this study is to investigate the corporate identity practices of Macdonald’s in the UK and China and will make recommendations to the Macdonald’s corporation according to its conditions.

Working objectives:

·           To critical review the relevant literature of concepts and theories of corporate identity, which including brand elements, corporate image, marketing communication and corporate social responsibility (CSR).

·           To identity the role of corporate identity in an organization or corporation.

·           To investigate the current situation of the Macdonald’s development in UK and China.

·           To analyze the key aspects of different and some perceptions of both UK and Chinese people through Macdonald’s corporate identity.

·          To make recommendations to Macdonald’s about their corporate identity through the different perceptions between UK and Chinese people.

2. Literature review

A literature review is identifying the existing and published researches and theories on that particular topic within a certain period of time, which is a critical and in-depth evaluation of previous research. It can be a summary and synopsis of the particular area of research. The aim is to offer an overview of significant literature published on a topic (Ridley, 2012).

This part mainly consists of three sections. Firstly, to review the definitions and concepts relating to corporate identity. Secondly, to highlight the linkage between corporate and market communication since they are both tools to establish and promote corporate identity. Finally, is to review the impact of corporate social responsibility.

2.1 Definition of corporate identity

According to Wendt (1994), corporate identities are sets of meanings that how an corporation views itself by making a visual statement and how it wishes to be recognized and remembered by its audience. Corporate identities are at once cognitive schemas that enable an corporation to determine `who I am/we are' in a situation and positions. However, Balmer (1998) put forward that corporate identity is one part of the business identity, the other two related sections are visual identity and organizational identity. In 1988, Birkigt and Stadler highlights that there are three elements of corporate identity mix as personality traits, which acts of symbols, behaviour and communications.

Thus, for McDonald’s, its corporate identities could be how they would like to build the brand image and reputational status to communicate with their stakeholders such as customers, investors, employees.

2.1.1 Brand elements

The brand elements can be constituted by brand name, logo and symbol, slogan, packaging, services provided and/or other characteristics (Keller, 2012). There is no doubt that McDonald’s plays a very successful role in fast food industry. When it comes to McDonald’s, it is easy to think of its golden arches logo ‘ M ‘ and the brand spokesman Ronald McDonald, maybe he is the best person to communicate with customers that the image is presented for fun and friendly. And the slogan which is ‘I’m lovin’ it’ (McDonald’s). The packaging they using is all made of 80% recycled paper in order to reduce the impact of packaging (Park, 2010). The main colors of brand are yellow and red, which is easy recognised by customers even they are far from the restaurant. ‘using bright primary colors, indoor playgrounds, Happy Meals featuring popular licensed toys and small hand friendly food, McDonald’s established itself as the family restaurant that made food seem fun for kids’ (Botterill and Kline, 2007).

 

2.1.2 Corporate image

Brown and Dacin (1997) define corporate image as the perceptions and impressions of an organization by the pubic as a result of interaction with the organization and the way organization presents itself. Creating a good corporate image to a target segment has long been viewed as an important marketing activity, it might be focused on the design of communication and advertising activities to build a favorable impression on target group (Park, Jaworski, Maclnnis, 1986).

‘If the image is false and our performance is good, it is our fault for being bad communicators.’(Bernstein, 1984) It might be generally known that QSC&V globally practiced principle of McDonald’s, which are quality, service, cleanliness and value (Dash, 2005). ‘It is a promise made by a company to its customers and supported by that company.’ (Sterne, 1999) McDonald’s has been taken those four points as operation formula and according that to train their employees since McDonald’s founded (Dash, 2005).

It could be said that McDonald’s high quality products and services attribute success to the details of the management and strategies. And maybe that is the reason of McDonald’s invincible brand force and why it has been enjoying and supporting by such a large number of customers (Schlosser, 2012). However, McDonald’s also use communication tools to communicate their corporate image such as advertising and public relation (Lassar& Kulkarni, 2009).

In brief, McDonald’s is a corporation that has an uncommonly understanding to create its image (Botan& Hazleton, 2006).

2.2 Linkage between corporate and market communication

Compared with corporate and market communications, marketing communications seems to be more common that can be seen in the text books (Pickton&Broderick, 2005). Marketing communications is a management process through which an organization enters into a dialogue with its various audiences (Fill, 2009). According to Pickton and Broderick (2005), marketing communication have to cover not only market communication but also corporate communication as well, so that it is called integrated marketing communication (IMC), a means by which it can establish a dialogue and build relationships with consumers to achieve maximum communication impact by make all aspects of marketing communication work together as a unified force (Duncan&Caywood, 1996). However, similar tools are both used by corporate and market communication, but the message and the target audience are different. There are mainly five tools for marketing communication mix, which are including advertising, sales promotion, personal selling, sponsorship and public relation (Fill, 2009). For market communication, it is mainly to sell products, which mainly concerns with consumers, so promotion and advertising might be used with a bit more. By contrast, corporate communication mainly aim at the wider group of stakeholders such as investors and employees, however, its main purpose is to create corporate image, therefore, public relations seem to be used some more (Pickton&Broderick, 2005). It can be seen clearly by the following image: a wheel of integrated marketing communication (Pickton&Broderick, 2005)

2.3 Impact of corporate social responsibility

Above all, Corporate social responsibility (CSR) is a wide concept that includes a series of social, ethical, and environmental responsibilities, and there are plentiful definitions in the literature over the years (Polonsky&Jevons, 2009). Carroll (1999, p. 286) suggests that social responsibility covers “the conduct of a business so that it is economically profitable, law-abiding, ethical and socially supportive.” Therefore, corporate may have to carefully think that how to interact with such a broad range of stakeholders, because all of them might have various social interests (Polonsky & Jevons, 2009). In fact, CSR has become a strategic tool for branding, but only in situation which communicated with stakeholders (Morsing, 2006). Thus, it is necessary for firms to “use organizational core competencies and resources to address key stakeholders interests and to achieve both organizational and social benefits” (McAlister and Ferrell, 2002, p. 690).

3. Methodology

3.1 Data collection instruments

Mixed methods (Tashakkori & Teddlie, 2003) has been designed for this research, which is a procedure for collecting, analyzing and “mixing” both quantitative and qualitative data at some stage of the research process within a single study, to understand a research problem more completely (Creswell, 2002). The rationale for mixing is that neither quantitative nor qualitative methods are sufficient by themselves to capture the trends and details of the situation,such as a complex issue of doctoral students’ persistence in the distributed learning environment. When used in combination, quantitative and qualitative methods complement each other and allow for more complete analysis (Green, Caracelli & Graham, 1989, Tashakkori & Teddlie, 1998). Additionally, on the one hand, primary data is conducted using questionnaire surveys that are sent to the randomly selected people from China and UK respectively, and interviews will be utilized for primary data collection as well. On the other hand, secondary data would based from the literature, reports and journal articles that relate to this research work.