Sunday, May 19, 2019
Marketing Mix of Mcdonalds
trade Mix Marketing mix must focus on the product, pricing, promotion, and placement of item in mold to make it successful. Marketing strategies must feature guest orientation, in lay, and accessibility in the fight to the top of the trade. McDonalds is no different. An example of this is illustrated with a comparison of McDonalds and Wendys. At first glance, they whitethorn appear to have roughly the precise(prenominal) marketing mix and target markets. Both are closely victuals and provide similar products. However, looking closer, cardinal can recognize that McDonalds primary target market is children ages 3-11 and their parents.McDonalds unders withald that the parent was making the purchasing decision, nigh alikely based on price. What McDonalds marketing executives did was ingenious. They mark a $. 50 toy in with the hamburger, french fries, and drink and gave it a special name, the Happy repast. Then McDonalds marketed the Happy Meal to the kids. If you have you ever asked your child where to grease sensations palms a Happy Meal, they go out tell you that there is only one place you can buy one, and that is at Fun McFactsWhen Was Your McDonalds popular Introduced? 1955 Hamburgers, cheeseburgers, fries, shakes, soft drinks, coffee and milk 1963 -Filet-O-Fish 968 -Big Mac and Hot Apple Pie 1973 -Quarter Pounder and Egg McMuffin 1974 -McDonaldland Cookies 1977 -Break debauched Menu 1978 -Sundaes 1979 -Happy Meals 1983 -Chicken McNuggets 1986 -Biscuit Sandwiches 1987 -Salads 1998 -McFlurry Desserts 1999 -Break dissolute Bagels 2000 -Chicken McGrill and nippy Chicken 2001 -Big N Tasty 2003 -Premium Salads, Newmans Own salad dressings and McGriddles 2004 -2004 Chicken Selects Premium Breast Strips McDonalds. McDonalds has Ronald McDonald, playgrounds or PlayPlaces, Happy Meals, and fun advertisements with bright colored Fry Guys or the Cheese Burgerler.Contrastingly, Wendys targets a more adult market and the restaurants represent a more m ature automatic teller machine with carpet floors and Dave Thomas advertisements. Wendys does have childrens meals that rear a toy, but overall the atmosphere attracts a different demographic group. McDonalds restaurants have a grade of strategies that apply to product, placement, promotion, and price that makes them one of the more or less successful, well-recognized organizations in the world. Product Strategies McDonalds marketing strategies should be looked at historically in parliamentary law to compute the larger forecast of the business firms success.There have been so many strategies since the inception of the firm that it is difficult to composition for them all, the two most memorable are the development of the Golden Arches and Ronald McDonald. These two icons have given customers a mental image of what to look for when they want spirit food for a low price fast. The firm revolutionized the fast food industry and positioned itself as the market leader with low -priced, quality food and provided an entertaining atmosphere for the children.These things were what that the market wanted at the time and the firm answered in spades. The perceived secret of McDonalds success is the willingness to innovate, til now dapple striving to achieve consistency in the operation of its many outlets. For example, its dispelfast poster, salads, Chicken McNuggets, and the McLean fantastic sandwich were all examples of how the company tried to appeal to a wider range of consumers. The long history of inception and experimentation resulted in refreshful profit centers like Chicken McNuggets and the step downfast wit.Innovation and experimentation as well as produced some disappointments like the McLean Deluxe, but inevitably experimentation in throttle outlets provides McDonalds a way to declare its key strengths-quality and consistency-while continuing to evolve. The use of franchising, again, provides various perspectives that, in turn, lead to i nnovation for products and solutions. Franchisees agree to operate their restaurants in the McDonalds way but there re principal(prenominal)s room for innovation. Many ideas for new menu items come from franchisees responding to customer demand.Developing new products is crucial to any business even those that successfully relied on a limited menu for many geezerhood. As consumer tastes change, menu innovation injects enthusiasm allowing the firm to explore markets previously overlooked or ignored. The Egg McMuffin, for example, was introduced in 1971. This item enabled McDonalds to accommodate consumers of the breakfast market. Filet-o-Fish, Drive-thrus, and Playlands were all products or concepts developed by franchisees.McDonalds tries a few new concepts simultaneous in different bug outs of the country to find the most promising new menu item. Those with the most potential could be rolled out further, while the inefficient ideas could be left to die quickly. This strategy may be expensive, but the potential to unleash new areas of growth in a maturing market seems to be right in line with what McDonalds has eternally done. In addition to the local flavors that have been created in the US, McDonalds international restaurants have been conforming to local, regional, and ethnic tastes, overly.In a recent McDonalds case study this was explained further For example, Maharaja McBurger is a vegetarian burger marketed in India. The special requirements for Kosher foods are followed in Israel. Similarly, McDonalds offers Halal food in Muslim countries much(prenominal) as Saudi Arabia, UAE, Kuwait, Indonesia, Malaysia, Pakistan, and Bangladesh. During promotions, McDonalds also introduces several other products. For example, its successfulness Burger is popular in China, Taiwan, Hong Kong, and Singapore at the time of the Chinese New Year celebrations.In order to respond to the growing phenomenon of health consciousness, McDonalds has moved in favor of lean g round beef, 100% veg oil, 1% low-fat milk, low sodium, and low fat This product strategy shows that McDonalds is interested in becoming part of the culture and is looking for ways to appeal to the market internationally. McDonalds menu is based on five main ingredients beef, chicken, bread, potatoes and milk. Their main products are hamburgers, chicken sandwiches, fries, and beverages. In addition, they serve a variety of breakfast items and desserts.Every McDonalds is analogous you know exactly what you will get no matter what store you go in to. Although McDonalds has thousands of restaurants rough the world, it standardizes menus and operating procedures in these restaurants to insure consistency throughout. To maintain consistency in the current menu while the firm tests new products to expand the product line, McDonalds relies on test marketing new menu items in pilot locations. New products are rigorously market tested so that the franchisee will have a reasonable idea of its potential before it is dded to the menu. The introduction of new products, which have already been researched and tested, considerably reduces the try for the franchisee. The franchisees additionally benefit from the extensive national market research programs that assess consumer attitudes and perceptions. What products do they want to buy and at what price? How are they performing compared to their competitors? This approach allows the firm to identify which items are likely to splay popular with consumers while ensuring that the company can deliver new products with consistent quality nationwide.McDonalds already has a history of doing this so it will not require major changes to its operations strategy-at least initially. If the product line-up gets too large, then the task of maintaining quality becomes exponentially harder. The trick is to consider how to eliminate some of the existing menu items when you introduce new ones, while making sure the staff is fully trained i n how to suffice these products successfully. McDonalds serves the world some of its favorite foods Fries, Big Mac, Quarter Pounder, Chicken McNuggets, and the Egg McMuffin. To this end, McDonalds had done well with a limited product range.Declining per unit sales and competitors gaining ground, may indicate that McDonalds menu needs a face-lift. hotshot way to do that is by inserting a couple of new, highly promoted menu items. This would refresh the product menu and provide new, satisfying father for dinner consumers. McDonalds has the opportunity to apply its core competencies of rigorous adherence to quality standards and continual promotion of experimentation in new venues. Imagine McDonalds opening a new occasional(a) dining restaurant under a different name, like Macs, and sliding away from the fast food industry.The firm could franchise that concept nationwide and target the market of consumers who have grown past fast food. McDonalds, or Macs, meticulous approach to op erations would ensure that consumers everywhere would experience the same dining experience at each restaurant. This consistency presents a wonderful advantage for consumers who dont want to be surprised with a bad meal. Consumers would expect the same as they do currently with McDonalds-the Big Mac in Minneapolis is the same as the one in Beijing . Placement Strategies McDonalds focuses on store placement and are always looking for the best locations.This strategy created some weakness in the last 10 years because it seemed that too many stores were put in some areas, cannibalizing sales from the other McDonalds. The company has also made devisal a focus, not only through how fast it serves customers, but also in the location of its outlets. detached restaurants are positioned so that you are never more than a few minutes away by foot in the city or by car in the suburbs. In addition, McDonalds is tucking restaurants into schools, stores, and more . Because McDonalds has fine we ll saturated the U. S. arket, its only real opportunities for growth lie abroad, where the competition is not so rough or by introducing new restaurant concepts under taints other than McDonalds. The organizations overall objective is to increase market share. In this instance, the focus is purely on localization with different strategies for different countries. Pricing could not perhaps be standardized across the globe without alienating many countries with poorer economies, thus defeating the initial objective. McDonalds set an purloin price for their product by looking at its competitors in each country.McDonalds is attempting to localize marketing communication theory due to the realization that it couldnt possibly appeal to all countries at the same time. The firm sees the necessity to give away globally, act locally. For example, in China it was recognized that advertising on television would be a waste of money because commercials between programs are generally ignored. Instead, McDonalds uses newspapers and magazines to promote its image. Similarly, in East Asia, McDonalds targets children in order to gain optimum results. Of course, the ultimate message (brand) is the same the medium is what is strategically modified.Pricing Strategies McDonalds strategy is to offer quality food quickly to customers at a good value. The pricing structure for McDonalds over years has supported this message. The company strives to differentiate itself from other fast food restaurants by offering a variety of menu items that appeal to a variety of people from those who just want great hamburgers, to those who just want a quick healthy meal. McDonalds differentiates itself by offering a dollar menu, combination meals, and a promiscuous toy with Happy Meals McDonalds, over the years, has also ran many promotions to increase traffic or product sales.For instance, the most recent roll out has been the 2004 Chicken Selects premium Breast Strips. Right now, you can go t o your local McDonalds and try them free. With this new product is offered a variation of the usual dos for the Chicken Nuggest a Chipotle Barbeque sauce is most commonly advertised. Another promotion was the Campaign 55 where diners could buy a featured sandwich, like the Big Mac in April, for 55 cents when purchased with fries and a drink. This campaign wasnt as successful as the fast food giant found would have hoped.Many other promotions with food, toys, collectibles, videos, and other prizes have been apply by McDonalds restaurants over the past 50-plus years. These promotions, some better than others, have helped to keep McDonalds growing and gaining in the fast food world. Value has been an area in which McDonalds has strengthened over time, not only with customers, but in spite of appearance their distribution, channel management, and logistics strategies as well Distribution, Channel Management, and Logistics. A company the size of McDonalds requires the value chain to be increasingly important.Not only does McDonalds want to add value for the customers, but also the firm looks for ways to improve the operations that makes McDonalds a more efficient business. Promotion Strategies McDonalds knows that some customers go to its stores to take a quick break from their days activities and not because McDonalds made the food ten seconds faster than their competitors could. Therefore, McDonalds marketing executives then put together the phrase, Have you had your break today? They stretchd to develop this idea with You deserve a break today, and now are in the Im Lovin It mantra. Im Lovin It doesnt seem to have as much punch as the former catch phrase, which still seems to be the favorite. McDonalds sees the use of these catch phrases and the use of the Golden Arches as a very successful way of differentiating the restaurants from other fast food competitors. McDonalds has taken price competition out of the picture because the customer feels they hav e gotten quality, convenience, service, and value and McDonalds still makes you feel like you are getting a break in your hectic day.Creating catch phrases are only one kind of promotion, and McDonalds uses many kinds of promotions to keep the restaurants at the top of the industry. With the rise of health consciousness it has become more difficult McDonalds to compete because their reputation brands them as cheap food served fast . The firms response to obesity claims against the organization and other unfavorable public situate is to add healthier items to their menu and promote and offer health-conscious alternatives to the would you like fries with that legacy.In addition, McDonalds has modernized their advertisements, pamphlets, and website to let in nutritional information and addressing diet restrictions. Breaking the unhealthy association is difficult on its own, but with media and movies such as Supersize Me adding to the fray, McDonalds has had to look for alternative st rategies to keep consumers happy. Another promotional strategy McDonalds uses is the huge investment in sponsorship. This is also a central part of the image building process.Sponsorship of the 1998 football World Cup, the Premier group discussion and the European Championships increases awareness of McDonalds brand . However, McDonalds still follows Ray Krocs community beliefs today, supporting the Tidy Britain Group and the footing Trust, as well as local community activities. McDonalds has become a known community match with Ronald McDonald Houses across the nation for the use of families whose children are hospitalized and getting treatment far from home.This organization has created an image of confederacy and community investment with these and other kinds of philanthropic activities . Rob Leavitt, ITSMA e-zine editor, reported in the June 2004 edition that Larry Light, McDonalds Chief Marketing Officer, railed against those claiming brands must have only one identity that appeals to increasingly fragmented audiences. Leavitt also reported, Identifying one brand positioning, communicating it in a repetitive manner, is old-fashioned, out-of-date, out-of-touch brand communication, he said. A brand is multidimensional. No one communication, no one message can tell a whole brand story. According to Light, marketers that continue to follow a simplistic mass marketing approach are committing brand suicide. determine which way to market McDonalds and its products is a very important decision that can either cause products to fall apart or take flight. These same decisions must be made in regards to the marketing of the company as a whole. Strategy is the name of this game.