Marketing mix of mc donald’s

McDonald’s is one of the largest chains of hamburger fast food restaurants in the world. Since its foundation in the year 1940, McDonald’s has successfully increased its prominence globally.

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1. Marketing Mix of McDonald’s 4P’s & 5P’s

2. Introduction McDonald’s is one of the largest chains of hamburger fast food restaurants in the world. Since its foundation in the year 1940, McDonald’s has successfully increased its prominence globally. It has been possible due to the successful marketing strategies used and the consistent introduction of new variations in the menu worldwide. The marketing mix is a business tool which every marketer uses to determine the feasibility and sustenance of a product by the use of defined strategies and goals.

3. Introduction The marketers used the traditional principle of McCarthy’s 4Ps but nowadays all the organizations research about the 5Ps of marketing which are: - Product - Price - Place - Promotion and - People

4. PRODUCT McDonald’s places primary focus on developing their menu and upgrading it from time to time . It is important to monitor the customer’s preferences regularly as they tend to change over time. Accordingly, McDonald’s introduces new items in their list and phases out those which do not receive appreciation or loses its prominence with time. It follows the life cycle of every product illustrated below: [Source: AboutMcDonalds.com]

5. PRODUCT Here is a short timeline of the introduction of some celebrated products by McDonald’s. Year of Introduction Item 1963 Filet-O-Fish 1968 Big Mac and Hot Apple Pie 1973 Egg McMuffin 1977 Breakfast Menu 1979 Happy Meals 1983 Chicken Nuggets 1987 Salads 1998 McFlurry Desserts 2000 Chicken McGrill 2001 Big N Tasty 2010 McCafe Real Fruit Smoothies and Frappes [Source: AboutMcDonalds.com]

6. PRODUCT Precisely, the menu of McDonald’s can be grouped into the following categories: Burgers and Sandwiches Chicken and Fish Breakfast Salads Snacks and Sides Beverages McCafe Desserts and Shakes Meal Bundles

7. PRICE For every company, the customer’s perception of value for individual products is an important determinant of the price charged by them. McDonald’s is no exception. A high priced item will discourage the customer to buy it, an extremely low cost item will make them feel that the quality of the product has been compromised. Accordingly, McDonald’s decides the prices for its products with are called Value-based Pricing . It generally emphasizes on the product benefits perceived by the customer irrespective of the exact cost of developing the product.

8. PRICE It generally emphasizes on the product benefits perceived by the customer irrespective of the exact cost of developing the product. Price Bundling Price bundling is a famous strategy used by the companies where the company bundle many items together and then offers the entire bundle at a definite cost. The final price of the bundle is lower than if the items of the bundle are bought individually. The all-inclusive reduced price attracts customers.

9. PRICE Psychological Pricing It is also a popular pricing strategy which psychologically influences the customers. It reduces the prices of the products strategically to give a boost in the overall sales. Retail prices are often expressed in odd prices a little lower than the actual price (for example - $1.99 in place of $2). Some of the factors that McDonald’s take into consideration while fixing up the prices of its items are as follows: - Objective - Demand - Estimate costs and - Competitors price (if any)

10. PLACE Place not only concerns the physical location of the organization and its outlets or its distribution points but it also encompasses its management and range of processes which brings the products to the potential customers . According to the latest data, McDonald’s has its prominent presence in more than 119 countries with more than 36,000 outlets . As McDonald’s offers only food items which are perishable, the distribution chain becomes very important for its survival. In USA alone, nearly half of the total outlets in the country are located within a distance of three minutes drive. The number of McDonald’s restaurants has increased rapidly since then. Even, the data of the last five years suggest that McDonald’s is increasing its outlets globally.

11. PLACE The number of McDonald’s restaurants has increased rapidly since then. Even, the data of the last five years suggest that McDonald’s is increasing its outlets globally. [Source: en.wikipedia.org ]

12. PLACE Accordingly, the employees of McDonald’s emphasize on the following factors : - Hygienic environment - Soothing ambiance - Prompt services In the last one decade, McDonald’s has taken a number of steps to make it services more comprehensive and effective for the customers. They are as follows : - Kiosks - Mobile App and Home Delivery

13. PROMOTION Even a person who has never visited or bought anything from McDonald’s restaurants and outlets has heard the international slogan, ‘ I’m loving it ! ’ Though McDonald’s enjoys a comfortable position in the fast food industry, still it heavily promotes its items and products. It does not depend on any one form of promotion but effectively uses all the mediums . In the age of globalization where almost every second person carries a smartphone, it has become important to increase promotion to boost sales and increase profitability and credentials.

14. PROMOTION Advertising McDonald’s advertisements form the most common part of its advertising strategy. It uses all forms of media to reach the customers. [Source: statista.com]

15. PROMOTION Sales Promotion During festivals in the different countries, launch of an outlet and other occasions, McDonald’s provides discounts and freebies to the customers on certain or all items . Public Relations McDonald’s also provides significant emphasis on the public relations which gets reflected from each of their employees working in the company. Sponsorship McDonald’s also invests heavily in sponsorship. This sponsorship not only have a positive impact on the sales but it also improves the brand image of McDonald’s which is already known globally.

16. People There are two main components behind the success of McDonald’s : - Employees - Customers It believes in the fact that happy employees can only make a customer happy with their service . If a customer encounters a bad-tempered employee or a waiter in any outlet or restaurant of McDonald’s, the whole experience will be bad and the respective customer may not feel interested again to visit McDonald’s .

17. People McDonald’s constantly hires, trains and motivates its employees so that they can cater the best possible service to the customers. Some of the initiatives are as follows : - Proper Uniform and Training - Hiring Only Native People - Prioritizing Hygiene - Customer Service

18. People McDonald’s provide the maximum importance to the customers. Hence, as a result, the annual revenue of McDonald’s increases every year, though it experienced a decrease in total revenue in the year 2014. It is clearly depicted in the below figure: [Source: statista.com]

19. Graphical Analysis of McDonald’s Marketing Mix

20. Graphical Analysis of McDonald’s Marketing Mix

21. Conclusion McDonald’s takes a comprehensive approach where marketing strategies are concerned to ensure their overall growth and development. The basic features of this strategy involve market research, innovative ideas, planning, organizing and acting according to customer needs and views. The marketing mix of McDonald’s clearly reciprocated these set of strategies. After analyzing the marketing mix of McDonald’s, it can be clearly stated that the company is “ glocal ”- the amalgamation of globalization and internationalization. Due to this approach, it has been very successful in making their brand widely popular throughout the globe. It serves about 46 million customers every day which will increase with time if they can continue their innovation and adaptability with the changing needs of the customers.