Marketing Mix of Mcdonalds

Marketing Mix Marketing mix moldiness(prenominal) focus on the yield, pricing, promotion, and placement of item in order to make it advantageful. Marketing strategies must feature customer orientation, input, and accessibility in the fight to the top of the merchandise. McDonalds is no different. An example of this is illustrated with a comparison of McDonalds and Wendys. At first glance, they may come break through of the closet to have roughly the homogeneous trade mix and target foodstuffs. both(prenominal) ar fast food and provide similar products. However, feeling closer, sensation base recognize that McDonalds primary target commercialise is children ages 3-11 and their call forths.McDonalds unders in desire mannerd that the p arnt was do the purchasing decision, close ilkly based on expenditure. What McDonalds merchandise executives did was ingenious. They put a $. 50 toy in with the hamburger, french fries, and inebriety and gave it a special name, t he blessed repast. Then McDonalds marketed the Happy Meal to the kids. If you have you ever asked your child where to bargain for a Happy Meal, they leave tell you that there is only one place you can buy one, and that is at Fun McFactsWhen Was Your McDonalds Favorite Introduced? 1955 Hamburgers, cheeseburgers, fries, shakes, soft drinks, coffee and milk 1963 -Filet-O-Fish 968 -Big mack and Hot Apple Pie 1973 -Quarter Pounder and Egg McMuffin 1974 -McDonaldland Cookies 1977 -Breakfast Menu 1978 -Sundaes 1979 -Happy Meals 1983 - sniveller McNuggets 1986 -Biscuit Sandwiches 1987 -Salads 1998 -McFlurry Desserts 1999 -Breakfast Bagels 2000 -Chicken McGrill and Crispy Chicken 2001 -Big N Tasty 2003 -Premium Salads, cuttingmans 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 brightly colored Fry Guys or the Cheese Burgerler.Contrastingly, Wendys targets a more adult market and the restaurants represent a more come along atmosphere with carpet floors and Dave Thomas advertisements. Wendys does have childrens meals that offer a toy, entirely overall the atmosphere attracts a different demographic group. McDonalds restaurants have a variety of strategies that afford to product, placement, promotion, and price that makes them one of the most successful, well- k at a time organizations in the piece. harvest-time Strategies McDonalds marketing strategies should be find outed at historically in order to escort the larger picture of the rigids success.There have been so numerous strategies since the ancestry of the firm that it is grueling to account for them all, the two most memorable atomic number 18 the development of the Golden Arches and Ronald McDonald. These two icons have given customers a moral image of what to look for when they want quality food for a miserable price fast. The firm revolutionized t he 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 cherished at the time and the firm answered in spades. The perceived secret of McDonalds success is the entrustingness to innovate, even trance striving to achieve consistency in the subprogram of its many outlets. For example, its breakfast menu, salads, Chicken McNuggets, and the McLean Deluxe sandwich were all examples of how the social club tried to appeal to a wider range of consumers. The long history of knowledgeableness and experimentation resulted in spic-and-span profit centers like Chicken McNuggets and the breakfast menu.Innovation and experimentation also produced some disappointments like the McLean Deluxe, but inescapably experimentation in limited outlets provides McDonalds a mood to retain its detect strengths-quality and consistency-while continuing to evolve. The us e of franchising, again, provides various perspectives that, in turn, lead to innovation for products and solutions. Franchisees gibe to operate their restaurants in the McDonalds way but there remains way for innovation. Many ideas for saucy 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 long time. As consumer tastes change, menu innovation injects excitement 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 part of the country to find the most promising new menu item. Those with the most authorization could be sweared out further, while the i neffective ideas could be left to die apace. This outline 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 always do. In conduceition to the local flavors that have been created in the US, McDonalds international restaurants have been conforming to local, regional, and ethnic tastes, in addition.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 Islamic countries such as Saudi Arabia, UAE, Kuwait, Indonesia, Malaysia, Pakistan, and Bangladesh. During promotions, McDonalds also introduces several another(prenominal) 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 developmen t phenomenon of health consciousness, McDonalds has locomote in favor of lean ground beef, 100% vegetable 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(prenominal) McDonalds is uniform you know exactly what you will get no effect what store you go in to. Although McDonalds has thousands of restaurants around the world, it standardizes menus and operating procedures in these restaurants to envision consistency through with(predicate)out. 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 i n pilot locations. New products are stringently market tested so that the franchisee will have a mediocre 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 risk 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 prove popular with consumers while ensuring that the union 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 fleet some of the existing menu items when you introduce new ones, while making sure the staff is fully trained in how to execute 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. One 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 experience 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 day-after-day dining restaurant under a different name, like Macs, and slew 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 operations would ensure that consumers everywhere would experience the same dining experience at each restaurant. This consistency presents a terrific advantage for consumers who dont want to be surprised with a bad meal. Consumers would stop 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 convenience a focus, not only through how fast it serves customers, but also in the location of its outlets. Freestanding restaurants are positioned so that you are never more than a few proceedings 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 pretty well virtuous the U. S. arket, its only real opportunities for growth lie abroad, where the competition is not so cutthroat or by introducing new restaurant concepts under marks 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 maybe be standardized across the globe without alienating many countries with poorer economies, thereof defeating the initial objective. McDonalds set an appropriate price for their product by looking at its competitors in each country.McDonalds is attempting to localize marketing communications imputable to the realization that it couldnt possibly appeal to all countries at the same time. The firm sees the necessity to brand globally, act locally. For example, in China it was recogn ized that advertising on television would be a waste of bullion 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 mass medium is what is strategically modified.Pricing Strategies McDonalds strategy is to offer quality food quickly to customers at a good time 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, compounding meals, and a free toy with Happy Meals McDonalds, over the years, has also ran many promotions to increase traffic or prod uct sales.For instance, the most recent roll out has been the 2004 Chicken Selects premium Breast Strips. Right now, you can go to your local McDonalds and try them free. With this new product is offered a variation of the public sauces for the Chicken Nuggest a Chipotle Barbeque sauce is most commonly advertised. another(prenominal) 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 scat wasnt as successful as the fast food giant assemble would have hoped.Many other promotions with food, toys, collectibles, videos, and other prizes have been used 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 strengthen over time, not only with customers, but within their distribution, channel management, and logistics s trategies as well Distribution, Channel Management, and Logistics. A company the size of McDonalds requires the value image 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 speedy than their competitors could. Therefore, McDonalds marketing executives then put together the phrase, Have you had your break at present? They continued 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 cowman as the earlier overhear phrase, which still seems to be the favorite. McDonalds sees the use of these becharm 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 have 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 reception to obesity claims against the organization and other unfavorable public sediment 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 include nutritional information and addressing diet restrictions. Breaking the icteric ass ociation 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 strategies to keep consumers happy. Another promotional strategy McDonalds uses is the huge investment in sponsorship. This is also a central part of the image edifice process.Sponsorship of the 1998 football World Cup, the Premier League and the European Championships increases awareness of McDonalds brand . However, McDonalds still follows Ray Krocs community of interests beliefs today, supporting the Tidy Britain Group and the al-Qaida Trust, as well as local community activities. McDonalds has become a known community partner 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 partnership and community investment with these and other kinds of philanthropic activities . Rob Leavitt, ITSMA e-zine editor, reporte d in the June 2004 version that Larry Light, McDonalds Chief Marketing Officer, railed against those claiming brands must have only one personal 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 simple mass marketing approach are committing brand suicide. find out which way to market McDonalds and its products is a very important decision that can either cause products to fail 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.