McDonald’s Marketing Strategy – Marketing Strategy of McDonald’s: McDonald’s quick-service restaurants are been established in over 100 countries around the globe with an 80percent of its outlets operating on franchise models. It is an informal eatery market (IEO) that has been battling intense growing competition and stagnant growth but in the sector, McDonald’s can draw customers to its more than 36000 stores.
Its performance in the market depends on its ability to respond quickly to changes in consumer demographics, tastes and preferences, and trends in Supply chain management.
McDonald’s At A Glance – Marketing Strategy of McDonald’s
Company : McDonald’s
CEO: Chris Kempczinski
Founder: Richard McDonald | Maurice McDonald
Year founded: 15 April 1955, San Bernardino, California, United States
Headquarters: Chicago, Illinois, United States
Annual Revenue: US$21.076 billion
Profit | Net income: US$6.025 billion
Number of employees : Approx. 210,000
Products & Services: Hamburgers Chicken, French fries, Soft drinks, Soft serves, Milkshakes, Salads, Desserts, Hotcake, Coffee, Breakfast, Wraps
McDonald’s Fun Facts: McDonald’s is the nation’s largest purchaser of beef, pork, and potatoes. It is the second largest purchaser of chicken. McDonald’s serves about 9 million pounds of fries globally—per day. McDonald’s Corporation is the largest owner of retail property in the world.
Marketing Strategy of McDonald’s
McDonald’s Marketing Strategy covers various aspects of the business right from segmentation and targeting to the overall mission and vision of the company and the various parameters which the company executes to become the top brand that it has in the market. So what is the Marketing Strategy of McDonald’s? Let us discuss.
Segmentation, Targeting, Positioning – McDonald’s Marketing Strategy
McDonald’s employs a mixture of demographic, geographic, and psychological variables to differentiate the market while at while taking into consideration changes in preferences and tastes.
Due to a shift in the consumer’s purchasing habits and rising income levels, McDonald’s fast-food chain McDonald has begun using a distinct targeted approach to meet the changing customer requirements.
Since its founding, McDonald’s has evolved itself from an approach of brand-based positioning strategy to value-based positioning strategies.
McDonald’s Mission Statement
“to be our customer’s favorite place and way to eat and drink”
McDonald’s Vision Statement
“Our purpose goes beyond what we sell. We’re using our reach to be a positive force. For our customers, our people, our communities, our world.”
“I’m Lovin’ It”.
Competitive Advantage – McDonald’s Marketing Strategy
An efficient SIPOC (supplier-Input-Process-Outputs-customer) model integrating the supplier, Customer & company to improve the service quality level is the strategic advantage that McDonald’s has over other food chains.
A low infrastructure cost because the majority of businesses are franchised helps the company to increase its profitability.
The Glo-cal approach to help customers better and enhance customer experience best option that was crucial for McDonald’s success.
The ability to target markets by expansion, geographical reach and demographic factors has assisted the company to maximize its potential.
BCG Matrix – McDonald’s Marketing Strategy
Hamburger MacAloo Tikki, and Hamburger French fries are all-stars.
The non-vegetarian menu at McDonald’s isn’t very popular which is why it’s considered to be a red flag.
This particular Desert menu is struggling to draw customers, which is why it’s listed as Dog in the BCG’s matrix.
Distribution Strategy – McDonald’s Marketing Strategy
McDonald’s has numerous franchises established to meet the ever-growing needs of various segments. This is what allows them to thrive in a highly fiercely competitive marketplace. McDonald’s takeaway menus are targeted at customers who have counter-service or drive-through services. In certain countries, it’s known as McDrive.
Macafee has been specifically designed as an informal cafe that is targeted at younger generations who want to have fun with their loved ones.
The company had quality centers in a central location. The integrated supply chain using the assistance of third logistics providers is aiding the company in making its products accessible to consumers through the distribution channels. To ensure this kind of store setup are functional and to ensure that they are properly set up, TAT (Turnaround duration), as well as backend integration, is essential, as is the case with McDonald’s.
Brand equity – McDonald’s Marketing Strategy
A wide range of advertising through tie-ups and sponsorships with well-known organizations such as FIFA, and the Olympics has helped the business to improve its presence on the international market.
Being present across multiple media channels used for advertisement has assisted the company to build top-of-mind awareness.
It was listed in Forbes’ top 500 list of companies in 2014.
Competitive Analysis – McDonald’s Marketing Strategy
Fast food restaurants are giving an edge to McDonald’s but thanks to its specific advertising strategies which emphasize taste, quality menu, nutrition, and many other health benefits, McDonald’s can sustain its competitive advantages.
Market Analysis – McDonald’s Marketing Strategy
The fast-food industry is overrun by MNCs as well as local food outlets consuming each other’s market share. McDonald’s with more than 36,000 outlets across the globe is battling hard against other well-known chains such as Subway, KFC as well as Dominos, etc.
Customer Analysis – McDonald’s Marketing Strategy
The customers of McDonald’s are mostly aged between 15-40 and enjoy spending time with their family, friends, or loved ones. McDonald’s has attracted younger customers who are social and at college or in school.
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