3.
Marketing strategy of the McDonalds in USA
The marketing mix (4Ps) of McDonald's Corporation includes a variety of tactics that address
commercial challenges in various fast food restaurant marketplaces across the world. In terms
of products, place, promotion, and pricing, the marketing mix specifies the strategies and
tactics that a corporation use to reach target customers. The company's corporate productivity
requirements, for example, are adopted in the administration of every company-owned and
franchised facility. McDonald's also tweaks their marketing mix to fit the needs of local or
regional markets. In nations where print media is more popular, the company's promotion
strategies and methods target print media, whereas television is prioritized in other regions.
The 4P variables define the numerous strategies and tactics used by McDonald's to carry out
its marketing plan and achieve related strategic goals in order to grow the worldwide food
chain's company.
The effectiveness with which McDonald's Corporation implements its marketing mix leads to
the brand's and business's leading performance in the international fast food restaurant
industry. The 4Ps are compared to the approaches of competitors such as Burger King,
Wendy's, Dunkin' Donuts, and Subway, as well as other food and beverage companies, by
strategic management.
McDonald’s Products (Product Mix)
McDonald's has a product mix that is primarily made up of food and beverage items as a
restaurant service company. The different organisational outputs (goods and services) that the
company provides to its target markets are covered by this component of the marketing mix.
McDonald's has the following primary product lines in their product mix:
1. Hamburgers and sandwiches
2. Chicken and fish
3. Salads
4. Snacks and sides
5. Beverages
6. Desserts and shakes
7. Breakfast/All-day breakfast
8. McCafé
McDonald's brand and business image are largely determined by its products, which are one
of the four Ps. Burgers are the company's most well-known product. The company, on the
other hand, gradually expands its product variety. Customers can now order other items such
as chicken and fish, desserts, and morning meals. The product lines featured in this section of
the marketing mix are influenced by McDonald's generic strategy and intensive expansion
initiatives. The company meets market demand, increases revenues, and spreads risk in its
business by diversifying its product lines. A broader product mix decreases the company's
reliance on just one or a few market segments in terms of risk. This component of
McDonald's marketing mix denotes that the company develops new goods in order to attract
more customers and strengthen its financial stability.
Place/Distribution in McDonald’s Marketing Mix
The venues or locations where items are offered and where clients can access them are listed
as part of the marketing mix. The most visible locations where the company's products are
distributed are restaurants. However, as part of this 4P variable, the company uses a variety of
locations. McDonald's products are distributed primarily through the following channels:
1. Restaurants
2. Kiosks
3. McDonald’s mobile apps
4. Postmates website and app, and others
McDonald's restaurants account for the majority of the company's sales. Some of these
eateries also run kiosks where they sell a limited range of products including sundaes and
other desserts. Kiosks utilised in professional sports competitions and other seasonal events
are examples of temporary kiosks. McDonald's mobile apps are included in this part of the
marketing mix. Customers can get information about the company's products and purchase
them from these virtual locations. Customers can, for example, use the company's iOS and
Android mobile apps to claim special offers, identify restaurant locations, make orders, and
pay for orders placed at participating McDonald's restaurants. Customers can also use the
Postmates website and smartphone app to place their orders. This part of the marketing mix
helps McDonald's achieve its corporate vision and purpose objectives, particularly in terms of
servicing more customers around the world.
McDonald’s Promotion (Promotional Mix)
The strategies that the company uses to communicate with customers are defined by this
component of the marketing mix. This variable focuses on marketing communications with
target customers among the 4Ps. To entice customers to buy new products, the corporation,
for example, gives new information. In its promotional mix, McDonald's employs the
following methods, which are listed in order of importance to the company:
1. Advertising (most significant)
2. Sales promotions
3. Public relations
4. Direct marketing
Among McDonald's promotion strategies, advertisements are the most well-known.
Advertisements are broadcast on television, radio, print media, and the internet. Sales
promotions, on the other hand, are utilised to attract more consumers to the company's
eateries. McDonald's, for example, gives discount coupons and freebies for specific products
and product bundles in order to attract more customers. Furthermore, through goodwill and
brand building, the company's public relations operations aid in the promotion of the firm to
the target market. The Ronald McDonald House Charities and McDonald's Global Best of
Green environmental programme, for example, benefit communities while enhancing the
business brand's value. Direct marketing is used by the company on occasion, such as for
corporate clients, local governments, or community events and celebrations. McDonald's
Corporation prioritises advertising as its primary method of product promotion in this
component of its marketing mix.
McDonald’s Prices and Pricing Strategies
The pricing points and price ranges of the company's food and beverage goods are specified
in this section of the marketing mix. The goal is to maximise profit margins and sales volume
by adjusting prices. McDonald's employs a mix of pricing schemes, including:
1. Bundle pricing strategy
2. Psychological pricing strategy
McDonald's uses the bundle pricing technique to offer reduced meals and other products as
compared to purchasing each item separately. Customers can, for example, order a Happy
Meal or an Extra Value Meal to save money and get a better deal. In psychological pricing,
on the other hand, the corporation utilises prices that appear to be substantially more
reasonable, such as $_ _.99, rather than rounding to the closest dollar. This price approach
encourages customers to buy the company's items since they are believed to be affordable. As
a result, this aspect of McDonald's marketing mix emphasises the relevance of bundle price
and psychological pricing in attracting customers to buy more.
References
Dominici, G. (2009). From marketing mix to e-marketing mix: A literature overview and
classification. International Journal of Business and Management, 4(9), 17-24.
Rahmani, K., Emamisaleh, K., & Yadegari, R. (2015). Quality function deployment and new
product development with a focus on marketing mix 4P model. Asian Journal of Research in
Marketing, 4(2), 98-108.
Yun-sheng, W. (2001). Perfection and innovation of 4P marketing mix – How to evaluate 4P
marketing mix. Commercial Research, 5, 6.
Meyer, P. (2020, September 20). McDonald’s Marketing Mix (4Ps) Analysis. Panmore
Institute. http://panmore.com/mcdonalds-marketing-mix-4ps-analysis
