McDonalds Marketing Mix

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Marketing Mix of McDonalds analyses the brand/company which covers 4Ps (Product, Price, Place, Promotion) and explains the McDonalds marketing strategy. The article elaborates the pricing, advertising & distribution strategies used by the company.

Let us start the McDonalds Marketing Mix:

Product:

McDonalds is one of the world’s leading fast food chains. McDonalds primarily sells hamburgers, chicken products, cheeseburgers, breakfast items, soft drinks, milkshakes and desserts. McDonalds has also included salads, smoothies, fish wraps and fruits. It is widely known for its hamburgers. All these are the product strategy in its marketing mix. The original restaurant, which was started by McDonalds brothers, sold only hot dogs, hamburgers, cheeseburgers, milkshakes and French fries. The other products sold across the world include Beef Burgers, Big Mac, Big n Tasty, Double Cheese burger, Mc Spicy Burger. In chicken, McDonalds sells Mc Chicken, Premium chicken sandwiches, snack wrap, Chicken Fajita, Chicken Mc Nuggets, Crispy Chicken Deluxe, Grilled chicken deluxe, Artisan grilled chicken. In Fish products such as Fish McBites and Filet O Fish is known. McDonalds offers a range of breakfast sandwiches that include bagels, biscuits, Hamdesal etc. In beverages, Coca Cola is the primary supplier of McDonalds. It also sells hot chocolates and other juices. It adopts the product as per the local taste preference and cultural identity.


Image: pixabay


Price:

McDonalds involves various price bundling strategies that offer bundling products with meals and other products for customers. To ensure customers buy more products McDonalds focuses on psychological pricing strategies in its marketing mix that appear affordable to customers. They had reduced prices in India by almost 25 % so that customers prefer McDonalds as lunch and dining place. Its primary competitors are KFC, Subway, Pizza Hut and Dominos. As part of the promotional pricing strategy, McDonalds offer discounts or bundling on certain products and combination of different menu items as packed together. Their pricing strategy is also adapted to tap the lower middle section of the society. McDonalds’ target customers are mostly young teenagers who wish are brand conscious and want convenience.


Place:

McDonalds restaurants are found in 110+ countries and it operates more than 36,000 restaurants worldwide. The different types of restaurants formats are Mc Drive, Mc Café, Mc Express, McDonalds Next and create your own taste restaurant. Most McDonalds restaurants allow customers to drive through service with facilities such as indoor and outdoor seating and counter service. Mc Drive locations are near highways that do not offer seating service. Mc Café is a Australian subsidiary creation and it has increased the sales by 60%. As an open concept design, McDonalds Next used digital ordering and offered free mobile charging and table service. It also banned smoking in its restaurants. McDonalds maintains high quality standards and stringent hygiene norms.


Promotion:

McDonalds has spent huge money on advertising campaign, it makes use of newspaper ads, billboards, signage sponsors various sporting events like FIFA world cup, Olympic games, Little league and many more. McDonalds is uses aggressive promotion when it comes to its marketing mix. The TV advertising remains the prime form of advertisement. McDonalds’ TV ads show people engaging in popular activities. They have hardly used any negative campaign against their competitors. In India its burgers do not contain beef and they have divided its kitchen into Vegetarian and Non Vegetarian zones. It wanted to focus on volume sales at a low price. Currently McDonalds uses “I’m Lovin it” branding campaign that was created by Heye and Partner. McDonalds was official sponsor of 1994 FIFA world cup. Food partner of NBA, official fast food restaurant in Olympics and sponsored other events like IndyCar series, Rolex Sports Car series and NASCAR. The famous celebrity spokespeople of McDonalds include Michael Jordan, Kobe Bryant, Venus Williams, Jamie McMurray, Justin Timberlake and several other prominent personalities.


Since this is a service marketing brand, here are the other three Ps to make it the 7Ps marketing mix of McDonalds.


People:

McDonalds has a unique way of addressing its customers, and also treats its employees very well. The employees working at McDonalds have a dress code to follow and the company emphasises on its employees to be customer friendly, cheering and have affection for people. The service delivery of McDonalds is given priority and customer satisfaction is of utmost importance. Employees are given ratings based on their performance and they are encouraged to take a large part in decision-making process. Hygiene is of utmost importance followed by quality and service. Each McDonalds outlet has a restaurant manager who has the responsibility to undertake the daily proceedings. Achieving customer satisfaction is the goal of the company.


Physical Evidence:

McDonalds leaves an everlasting good impression when it comes to physical evidence in its marketing mix. The physical evidence creates a great impact in the minds of the consumer. The attributes of physical evidence displayed are speed of service, quality and hygiene, cleanliness and transparency of processes. Most McDonalds stores display brand colours and is a visible cue of the brand they want to promote the feel that it is a family restaurant. In addition, smoking is banned inside the restaurant with clear-labelled instructions. McDonalds restaurants have a young, vibrant and family feel to all its restaurants worldwide, self service order counters, lively music in the background etc. McDonalds’ physical presence is also enhanced by its recognizable yellow ‘M’ logo, McDonalds Happy Meal toys, burger wrappers, ketchup sachets etc. The website of McDonalds is also very user friendly and has a strong presence.


Process:

McDonalds over the years has improved the cooking methods and process used. It makes use of the sophisticated equipment’s for food processing and new methods for food packaging and distribution. McDonalds has invested in research to improve the processes and has automated several processes. The entire distribution network is streamlined to suit McDonalds Values and culture. The food manufacturing process is visible to customers. Apart from its, McDonalds has excellent processes in quick service in restaurants by having less turn around time, and has a fast home delivery service. All these conclude the McDonalds marketing mix.


About McDonalds:

McDonalds was founded in 1940 by Richard and Maurice McDonalds and primarily sells hamburgers, chicken products, cheese burgers, breakfast items, soft drinks, milkshakes and desserts. McDonalds has also included salads, smoothies, fish wraps and fruits. The mode of operation is either franchise based, an affiliate or by the corporation itself. In 2012, according to BBC report McDonalds was world’s second largest private employer. Its primary source of revenue comes from royalties, fees paid by the franchisees and sales from company-oriented restaurants. The McDonalds restaurants are found in 110+ countries and it operates more than 36,000 restaurants worldwide. The various McDonalds products either are offered as take out or eat in format. The different types of restaurants formats are Mc Drive, Mc Café, Mc Express, McDonalds Next and create your own taste restaurant.

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The names and other brand information used in the Marketing Mix section are properties of their respective companies. The companies are not associated with MBASkool in any way. The brand names are used purely for educational/academic purpose only.

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