McDonald’s Marketing Mix (4Ps)

Analysis
McDonald’s Corporation’s marketing mix (4Ps) involves various approaches that meet
business concerns in different fast food restaurant markets around the world. The
marketing mix defines the strategies and tactics that a company uses to reach target
customers, in terms of products, place, promotion, and price (the 4Ps). In this business
analysis case, McDonald’s has corporate standards that its marketing mix applies globally.
For example, the company’s corporate standards for productivity are implemented in the
management of each company-owned and franchised location. McDonald’s also applies
some variations in its marketing mix to suit the conditions of local or regional markets. For
instance, the company’s promotion strategies and tactics focus on print media in countries
where such media are most popular, and prioritize television in other markets. The
specifics of the 4P variables define the various strategies and tactics that McDonald’s uses
in executing its marketing plan and achieving related strategic goals to grow the
multinational restaurant chain business.

McDonald’s Corporation’s effectiveness in implementing its marketing mix contributes to

the leading performance of its brand and business in the international fast food restaurant
industry. Strategic management considers how the 4Ps relate with the approaches of
competitors like Burger King, Wendy’s, Dunkin’ Donuts, and Subway, as well as other firms
in the food and beverage industry, such as Starbucks Coffee Company. McDonald’s
marketing mix facilitates effective reach to target customers around the world. This
condition supports the company’s leading global industry position, as well as the strength
of its brand, despite the strong force of competitive rivalry shown in the Porter’s Five
Forces analysis of McDonald’s Corporation.

McDonald’s Products (Product Mix)

As a food service business, McDonald’s has a product mix composed mainly of food and
beverage products. This element of the marketing mix covers the various organizational
outputs (goods and services) that the company provides to its target markets. McDonald’s
product mix has the following main product lines:

1. Hamburgers and sandwiches

2. Chicken and fish
3. Salads
4. Snacks and sides
5. Beverages
6. Desserts and shakes
7. Breakfast/All-day breakfast
8. McCafé
 Among the 4Ps, products are a fundamental determinant of McDonald’s brand and
corporate image. The company is primarily known for its burgers. However, the business
gradually expands its product mix. At present, customers can purchase other products like
chicken and fish, desserts, and breakfast meals. McDonald’s generic strategy and intensive
growth strategies influence the product lines included in this element of the marketing mix.
In diversifying its product lines, the company satisfies market demand, improves its
revenues, and spreads risk in its business. In terms of risk, a more diverse product mix
reduces the company’s dependence on just one or a few market segments. This element of
McDonald’s marketing mix indicates that the firm innovates new products to attract more
customers and improve its business stability.

Place/Distribution in McDonald’s Marketing Mix

This element of the marketing mix enumerates the venues or locations where products are
offered and where customers can access them. Restaurants are the most prominent places
where the company’s products are distributed. However, the business utilizes various
places as part of this 4P variable. The main places through which McDonald’s distributes its
products are as follows:

1. Restaurants
2. Kiosks
3. McDonald’s mobile apps
4. Postmates website and app, and others

McDonald’s restaurants are where the company generates most of its sales revenues. Some
of these restaurants also manage kiosks to sell a limited selection of products, such as
sundae and other desserts. Some kiosks are temporary, as in the cases of kiosks used in
professional sports competitions and other seasonal events. This element of McDonald’s
marketing mix also involves the company’s mobile apps. These virtual places are where
customers can access information about the company’s products and buy these products.
For example, the company’s mobile apps for iOS and Android let customers claim special
deals, find restaurant locations, place orders, and pay for such orders involving
participating McDonald’s restaurants. Furthermore, customers can place their orders
through the Postmates website and mobile app. This element of the marketing mix
supports McDonald’s corporate vision and mission statements, especially in serving more
customers around the world.

McDonald’s Promotion (Promotional Mix)

This element of the marketing mix defines the tactics that the business uses to
communicate with customers. Among the 4Ps, this variable focuses on marketing
communications with target customers. For example, the company provides new
information to persuade consumers to purchase new products. McDonald’s uses the
following tactics in its promotional mix, arranged according to significance in the business:
1. Advertising (most significant)
2. Sales promotions
3. Public relations
4. Direct marketing

Advertisements are the most notable among McDonald’s promotion tactics. The
corporation uses TV, radio, print media and online media for its advertisements. On the
other hand, sales promotions are used to draw more customers to the company’s
restaurants. For example, McDonald’s offers discount coupons and freebies for certain
products and product bundles, as a way of attracting more consumers. In addition, the
company’s public relations activities help promote the business to the target market
through goodwill and brand strengthening. For instance, the Ronald McDonald House
Charities and the McDonald’s Global Best of Green environmental program support
communities while boosting the value of the corporate brand. Occasionally, the company
uses direct marketing, such as for corporate clientele, local governments, or community
events and parties. In this element of its marketing mix, McDonald’s Corporation
emphasizes advertising as its main approach to promote its products.

McDonald’s Prices and Pricing Strategies

This element of the marketing mix specifies the price points and price ranges of the
company’s food and beverage products. The aim is to use prices to maximize profit margins
and sales volume. McDonald’s uses a combination of the following pricing strategies:

1. Bundle pricing strategy

2. Psychological pricing strategy

In the bundle pricing strategy, McDonald’s offers meals and other product bundles for
prices that are discounted, compared to purchasing each item separately. For example,
customers can purchase a Happy Meal or an Extra Value Meal to optimize cost and product
value. On the other hand, in psychological pricing, the company uses prices that appear
significantly more affordable, such as $__.99 instead of rounding it off to the nearest dollar.
This pricing strategy helps encourage consumers to purchase the company’s products
based on perceived affordability. Thus, this element of McDonald’s marketing mix
highlights the importance of bundle pricing and psychological pricing to encourage
customers to buy more products.
Question:
https://www.researchgate.net/publication/301621368_Report_on_Marketing_Strategies_at_McDonald
's

1.SWOT analysis: https://www.mbaskool.com/brandguide/food-and-beverages/584-mcdonalds.html?

fbclid=IwAR1PYVs-1jN9zbWDsdh-CtZnn-WKyX02K2jJTT7HC4KviuQM6f1TymlZvLY

http://panmore.com/mcdonalds-swot-analysis-recommendations

https://www.ukessays.com/essays/marketing/the-marketing-strategy-for-mcdonalds-corporaton-
marketing-essay.php

2.How could McDonalds draw 7ps for its strategy?

https://www.mbaskool.com/marketing-mix/services/17057-mcdonalds.html?
fbclid=IwAR3rSj60FZWJLdWplDp7DeYO-ZW-AXYpz9nYvB5ilH34HuBdz3JklE7peAc

https://www.howandwhat.net/marketing-mix-mcdonalds-mcdonalds-marketing-mix/

3.how could McDonalds set its target strategy?

https://thesocialgrabber.com/target-markets-of-mcdonalds-kfc-and-burger-king/

McDonald's marketing targets everyone and does not have a select audience. The
company claims that their restaurants offer meals for children, a place to relax with free
Wi-Fi for adults, and a quick breakfast for those in a hurry in the morning.

The company employs different marketing strategies during different seasons of the
year. They are constantly investigating what their customers enjoy, how their lives are
changing, and what they can offer them as a result, in order to better maintain their
business.

McDonald's offers value-priced meals and has seen a tremendous amount of success
from its Happy Meals. The Happy Meal represents one area where market demand
changed the company's product, as it began offering fruit and other healthier choices
for kids due to a raised awareness of nutritional needs.

In addition, To achieve this, McDonald's created a global strategy called "Plan to Win,"
which focuses on creating an extraordinary customer experience.
The Plan to Win consists of five factors: people, products, promotion, place and price.
McDonald's focuses on its customers as well as its own employees. Fostering a nurturing
and motivating environment for its employees ensures continuation of the company's
customer service strategies. Balancing the needs of McDonald's franchise owners, food
suppliers and employees is essential to running the company smoothly. McDonald's also
strives to uphold a high standard of ethics in the workplace and give back to the
community through the Ronald McDonald house family of charities.

"For more than ten years, the Plan to Win along with our system alignment, financial
strength and distinct competitive advantages have served as the critical framework
behind our growth," said Don Thompson, McDonald's corporation president and chief
executive officer. "Today, the Plan to Win continues to guide the evolution and
execution of our global growth priorities as we strive to become even better and
bigger."

Because McDonald's is also a publicly traded company, maintaining consistent profits

for its shareholders is also high on the list of objectives. The McDonald's Plan to Win
encompasses all these factors that are essential to the company's continued growth and
dominance in the market.