Mcdonalds is the largest food service provider in the world. It began as a burger restaurant, but has grown into an international powerhouse. The mcdonalds marketing plan essay will discuss mcdonald’s business strategy and how it has changed over time.
Executive Summary. McDonald’s Corporation is the largest fast-food restaurant by sales volume and number of locations across the world. McDonald’s runs restaurants in approximately 116 countries as well as franchises and franchises. The firm is successful and is still expanding rapidly. When using its global outlets and franchises, the company uses its marketing strategy strategically.
Prices start at $12
Prices start at $11
Prices start at $14
Prices start at $12
For promoting its worldwide growth, McDonald’s employs the approach of Plan to Win. This method comprises of five Ps: price, promotion, product, location, and people. The firm relies on a strong strategic direction and competitive edge that concentrate on its human capital for implementing marketing goals.
McDonald’s is also one of the most expensive advertisers. According to industry experts, McDonald’s spends more than $ 1.2 billion on advertising, far exceeding all other fast food chains. The biggest part of this budget is used for children’s advertising and promotional methods. Despite its efficacy, McDonald’s faces a number of problems from unlikely quarters such as consumers who claim that the company uses its ad slogans to target kids improperly.
Even so, McDonald’s must fight expensive obesity lawsuits as a result of consuming its unhealthy meals. In addition, there are issues with staff turnover, food contamination, and competition. The firm is now concentrating on offering healthy organic meals in response to consumer expectations for future development.
Marketing Mix. Product. Hamburgers, chicken, french fries, soft drinks, coffee, milkshakes, salads, desserts, and breakfast are just a few of the McDonald’s menu items. These foods provide alternatives for McDonald’s wide target demographic. McDonald’s offers these meals in different quantities and qualities at varying prices.
The firm’s packaging is distinctive, reflecting its brand and identity. McDonald’s has employed product packaging as part of its marketing mix (Jobber, 2010). The company is familiar with the impact of package messaging on all of its clients.
As a result, fast food packages must promote McDonald’s. The fast food industry is competitive; thus, to persuade clients with its items, McDonald’s must do so in a short time. Consumers are attracted to products that are packaged in convenient ways. Repeat purchases for most goods are attributed to packaging. To satisfy the needs of its customers, McDonald’s has worked hard to improve its quick, easy meals and coffee.
French fries are a well-known commodity at McDonald’s. The product, on the other hand, has been in a state of decline and is no longer generating significant income (Perner, 2008). As a result, to revitalize and reposition it, McDonald’s introduced the Shake Shake Fries product. In addition, new ingredients were added to the line to keep French fries relevant in its menu for revenue growth.
McDonald’s strives to keep the same quality and tastes of its food across the world, even though it has numerous locations and franchises. McDonald’s may claim that all of its meals will be of equivalent quality and service throughout the world. McDonald’s has shown this through a number of years by leading fast food company.
Customers can therefore trust McDonald’s brands. As a result, consumers know what to anticipate from McDonald’s goods and services before making any purchases. This adaptability allows customers to have confidence in McDonald’s to deliver the same high-quality fast food in every location and franchise.
Price. The marketing mix is a broad term that refers to all aspects of a business’s marketing strategy. McDonald’s provides value pricing, which means its offers start at $1. This combination gives high-quality goods at reasonable costs to everyone. As a result, even if it were the leader in the fast food industry, McDonald’s could not adopt a non-pricing method (Perner, 2008). The competitive nature of the fast food business necessitates effective pricing and implementation strategies.
McDonald’s must also balance price, promotion, and distribution to accommodate lower expenses that influence the cost, offer, and availability of its meals. These will have a big impact on its pricing strategy. McDonald should keep in mind that consumer decision making extends beyond pricing when it comes to buying decisions. Consumers are looking for the greatest bargain possible while still being satisfied with their purchases.
McDonald’s marketing to high-end customers and low segments of its target markets. As a result, McDonald’s pricing mix and implementation are critical to the company’s success. McDonald’s value pricing method sends a message to everyone who eats at the restaurant.
The appeal of this is that McDonald’s caters to the entire market. Customers want a return on their investment, and McDonald’s has provided it. In addition, competition must be taken into account with McDonald’s pricing strategy. Other fast food restaurants compete with McDonald’s. As a result, outdoing competition and retaining the leading role while maintaining market share are all crucial in the marketing mix for McDonald’s (Adcock and Halborg, 2004).
Customers are increasingly sensitive to prices, according to McDonald’s. As a result, the firm has responded by offering low-cost, high-speed food for a dollar. Some consumers, on the other hand, are content with obtaining high-quality goods at reasonable rates. McDonald’s must utilize its pricing policy and implementation as a tool for influencing other aspects of the marketing mix.
Place. Among fast food companies, McDonald’s has some of the most well-located outlets. The business aims for populous areas, high-end shopper destinations such as airports, active thoroughfares, and retail shops that are easily accessible. McDonald’s also prefers restaurants to be located near its primary rivals such as Subway and Burger King. This method is important in ensuring that McDonald’s serves all market segments with its products.
Customers may also buy from McDonald’s online in addition to placing their orders. With its new outlets and franchises methodology, McDonald’s has a worldwide focus. McDonald’s has been able to stay competitive by providing consumers with access to such items. Place planning has worked for McDonald’s since customers can easily obtain their favorite fast foods.
According to the brand image of McDonald’s, site selection is crucial. Furthermore, the selection of such sites also has an impact on the pricing of McDonald’s fast food items and the sort of consumers that frequent such locations. As a result, McDonald’s caters to both low-end and high-end consumers who may not have enough time to prepare their meals (Gupta, 2010).
When developing a place plan, McDonald’s must consider cost, goods, location, and people. McDonald’s must also keep an eye on its rivals such as Subway and Burger King while selecting locations. McDonald’s has been adding new restaurants and franchisees at a rapid rate. To appeal to employees, investors, and customers, the place strategy for McDonald’s must be tailored to them.
Promotion. The implementation of a marketing strategy is critical to the success of any business. Companies use communication to promote their brand images and raise consumer awareness about their goods. In order for the company to reach its target market, it must consider the message as well as the tools of communication.
McDonald’s has utilized several methods to market its goods, including providing toys for children, organizing the Big Mac Hockey Tournament, and running card games. These tactics are designed to promote both old and new items. There are also marketing campaigns that highlight the joy of eating at McDonald’s and a healthy active lifestyle.
McDonald’s uses channels such as television, newspapers, and radio to advertise. It also utilizes billboards and signage. The firm also sponsors sports events including the Olympics and Little League. In these events, McDonald’s provides its branded beverages. McDonald’s recent use of the Web site to advertise its products reflects this trend. But it was television that established the company’s most memorable ad campaign.
McDonald’s has several slogans for various countries. Some of these catch phrases and marketing campaigns have resulted in lawsuits. McDonald’s also includes a fifth element in the marketing mix, one that is concerned with individuals. This is primarily to improve the consumer experience with McDonald’s goods and services.
However, some studies indicate that McDonald’s focuses on children more than any other part of the target markets when it comes to advertising budget and products (Story and French, 2004). “The world’s largest fast food chain uses cartoons, toys, schools, charities, and even parents to reach its youngest consumers” says John Koshuta (Koshuta, 2007).
Budget. According to Advertising Age, McDonald’s spent $ 1.2 billion in the United States only in 2008. It is one of the top 30 most prominent advertisers in the United States. In the United States, McDonald’s has a national and local advertising plan. McDonald’s has a nationwide marketing budget as well as local co-operatives that run local advertisements. The overall market size is $5.6 billion (Koshuta, 2007). “About 40 percent of all advertising money spent by McDonald’s focuses on children” (2007).
Control. Businesses may use control mechanisms to manage their strategic plans in order to keep up with market changes. The company has a road map that tells it where to go and how to get there (Gilligan and Wilson, 2007).
McDonald’s control will ensure that the company takes corrective steps after evaluating its marketing strategy. This will help the firm achieve its strategic objective. McDonald’s must find new ways to narrow boundaries as a result of its worldwide presence, using a cross-functional management system that informs organizational plans across departments or countries (Aaker, 2009).
This case study looks at McDonald’s’ new marketing approach, which it implemented in order to properly prepare the firm for market adjustments. The goal of this case study is to illustrate the Healthy Menu, one of the Plan to Win Strategy’s marketing plans that was announced in 2003 after the company reported two consecutive years of loss.
On May 7, 2004, a documentary called Super Size Me was released to educate the public about the dangers of eating fast food on a daily basis. The movie focused on McDonald’s. For 30 days straight, he ate all of his meals at McDonald’s. At the conclusion of the film, it showed all of the health issues that this individual had as a result of doing the project for a month.
The Cowspiracy claims that in the same month the film was published, McDonald’s launched the “Go Active!” an adult Happy Meal. 6 weeks after this movie premiered at the Sundance Film Festival, McDonald’s announced it would phase out Supersize choices. However, according to them, these decisions were unrelated to this movie.
The fast-food industry is a competitive, cut-throat business owing to the presence of numerous rivals and a wide range of marketing operations and types of cuisine available. Although they compete against one another in order to preserve or grow their market share, large firms generally dominate this market.
McDonald’s uses a variety of marketing tactics in various market situations. Because the American lifestyle is fast, McDonald’s focuses on convenience and efficiency in the United States. White-collar employees are regarded as key target consumers by McDonald’s. In contrast, in China, McDonald’s prioritizes comfort and romance.
Its consumers are primarily young people in China, since they eat the major part of fast food there. Its advertisements always focus on love, relationships, and friendship, which are important to Chinese people. McDonald’s altered its foods in order for them to correspond with the standard European view.
Coffee cafés are a great way to let some air into your life! Coffee had been on the company’s menus as inspired by Europeans who enjoy meeting friends, neighbors, or family members while enjoying their coffee outside.
In a global market, McDonald’s has shown that it has a firm grasp on marketing. When working for a large company, there are several procedures and processes to follow in order to communicate with the market. Because incorrect planning might result in failure in the end, businesses ensure that their planning method is as accurate as possible.
While marketing for McDonald’s is global, the methods differ from one nation to the next, as well as each restaurant’s customer preferences, distribution channels, rivals, media, and more. As a result, what has worked in one country may not work in another.
Every business needs to determine the most important element, a target market, and an understanding of the market demand in order to develop a marketing plan that will help it speed up growth. McDonald’s employs 5P’s of marketing mix to accomplish this: nn Promotional Mix is a term used by marketers when referring to all the elements that go into making up an advertising/marketing campaign.
The product is the tangible or intangible goods or services provided by a firm to its customers. McDonald’s has particular aspects of its product such as packaging, desirability, and appearance. Both physical and non-tangible features of the product and service are included in this category. McDonald’s has intentionally kept its product depth and breadth minimal.
The first step taken by McDonald’s after understanding the Indian consumer was to develop a menu that was different from its international one. Pork, beef, and lamb burgers were removed from the list. In India, McDonald’s serves a vegetarian alternative for the first time. Even the sauces and cheeses eaten in India are entirely vegetarian.
McDonald’s is constantly developing new products in response to trends and tastes of its customers. The most recent example is the introduction of the Chicken Maharaja Mac, as well as chicken-style McNuggets.
The business’s distribution channels and outlets are the main components. It is considered critical because the product must be accessible to purchasers at the right location, at the right time, and in the ideal amount. In just 3 minutes’ drive from my house in California, there are approximately 50% of stores. McDonalds offers its clients a certain amount of enjoyment and pleasure.
The value position is determined by the customer’s requirements. McDonald’s provides a clean, sanitary environment with excellent service. McDonald’s now offers internet access at its restaurants, as well as radio music system through radio instead of usual music, in order to attract the younger generation. Children enjoy activities such as air hockey until their parents are able to spend quality time together at McDonalds.
The Marketing Mix is the collection of all marketing activities, including pricing. It includes a price list, if any discounts are available, and whether or not there is a payment option. It should also evaluate the potential competitive response to the pricing. Pricing is critical since it determines revenue for each business unit. All other three categories are expenses incurred by the company.
By calculating the pricing demand in India, it’s important to consider demand and supply. To improve product sales, McDonald’s uses specific price level and bundling techniques such as happy meal, combo meal, family meal, happy price menu, and so on.
The McDonald’s advertising and marketing efforts help to effectively communicate with the target consumers. The promotion plan of McDonald’s is shown in the diagram. The Communication Mix, as applied above, describes the cost that is acceptable to each client. McDonald’s corporate utilized advertising, personal selling, sales promotion, public relations, and direct marketing in order to become the world’s largest leading Burger Empire.
McDonald’s uses the following five promotion techniques to integrate marketing communication efforts, allowing it to access communication channels clearly, consistently, and simply. Messages and product are transferred to the target audiences via these promotional tools.
McDonald’s advertisements are intended to appeal to a variety of people. McDonald’s marketing is intended for a broad range of customers, especially children and teenagers. The goals of brand advertising for McDonald’s are to inform individuals about a product, generate confidence in it, and ensure that they remember it.
The correct message must be delivered to the right audience through the appropriate channels. McDonald’s employs print advertisements and television programs as part of its marketing strategy. They use media such as print and television in order to promote their products.
In interpersonal selling, McDonald’s employees who work in different restaurants are the greatest example of personal contact. Employees are right now serving the consumers and face-to-face communication is simple. Personal selling staff who work in the McDonalds shop are the individuals who carry out selling activities to clients.
In addition, McDonalds runs numerous sales to promote contests and initiatives in a variety of retail sectors and outlets, giving away free discounts coupons. Mascot McDonalds is always on hand for any events that are also one of the trademarks of McDonalds.
McDonald’s employs a variety of techniques to communicate with customers and promote the brand. The restaurant staff is very important in engaging with the general public. Every day, employees devote themselves to serving and pleasing their clients and consumers’ opinions of the firm. Before speaking with their consumers, McDonald’s believes they should be aware of what their rivals are saying so that they can set themselves apart from them.
In addition to traditional marketing, direct marketing is a very efficient technique of promotion. The McDonald’s uses a tool in its home delivery services in which they deliver the order directly to their residences. They also have a website that is more favorable for direct marketing in that it frequently includes all the newest deals as well as your local outlet’s contact number.
McDonald’s is well aware of the importance of both its employees and customers. It understands that a happy employee can perform effectively and create a satisfied customer. Internal marketing is something that McDonald does on a regular basis since effective internal marketing will inevitably lead to external marketing success. Hiring, training, and motivating staff are all examples of internal marketing. They may serve consumers immediately, which will result in pleased faces among the consumers.