Professional Documents
Culture Documents
Gary Phillips
University of Phoenix
McDonald’s Marketing Mix 2
Similar to a fine recipe and its ingredients, a marketing mix recipe includes four
ingredients, product, price, place, and promotion (4 P's), (Kotler and Keller, 2006). Marketing
strategies are developed through a process of thorough research, which will provide the vehicle
for determining the correct product/service, appropriate pricing structures, with effective
placement and promotion for establishing the proper position in the marketplace for achieving
optimal return on investment (ROI). The recipe for success has served McDonald’s restaurants
well since its inception, 1955, as a lone hamburger stand in Des Plaines, Illinois; further, founder
Ray Kroc created McDonald’s Corporation, with the specific purpose for expanding the business
by franchising; McDonald’s represents one of the most valuable brand names in the world
(Rowley, 2004).
Each new global franchise featured standardized brand product values in concert with
diverse cultural fare, owned, manned, and supplied by local communities. Acting or expanding
globally while thinking locally is the broad marketing strategy that has allowed McDonald’s to
retain its competitive advantage as the world’s largest fast-food retailer. In a statement from
1958, which still headlines the corporate governance page Ray Kroc advanced “The basis for our
entire business is that we are ethical, truthful and dependable” (McDonald’s.com, 2009, ¶ 1).
How has this strategy affected market mix attributes, the way that they were implemented, and
Product
Life in the 1950s was simpler than today—no personal computers, no internet, no cell
phones, no jet airplanes, no health or wellness consciousness—that lended itself nicely to the
McDonald’s Marketing Mix 3
early success of McDonalds’ simple product line of burgers, fries, and thick ice creamy milk
shakes. McDonald’s provided a value-based choice for convenience dining, as family units grew
environment became appealing, not to mention the soon to be iconic golden arches and Ronald
McDonald. Competition offered no threat and by 1958, the growing company sold its 100
millionth hamburger.
competitors, as a trend towards healthy living was fast becoming an accepted lifestyle. The days
with increased worth. McDonald’s reinvented its product lines over the years and never lost
touch with controls for monitoring service processes—getting customers in and out quickly,
conveniently, and with the appropriate order was a recipe for expansion into the global
marketplace. Two years after their tenth anniversary in 1965, which was celebrated with an
initial public offering price of $22.50, McDonald’s commenced global operations in Canada and
Puerto Rico; further, presently operations span the globe in 118 countries (McDonald’s.com
history, 2009).
With product mainstays such as the Big Mac, Quarter Pounder, French Fries, Filet-o-Fish,
Happy Meals, breakfast fare, salads, soft drinks, coffees, teas, and desserts amongst others,
McDonald’s franchises were established in such exotic locations as India, Israel, China,
Singapore, Fiji, and Morocco. Extensive research preceded expansion into diverse lands, which
afforded smooth franchise transitions to operate and expand within the mindset of ‘think locally’.
Collaborations with local citizens proved to be a valuable lesson and a profitable one.
McDonald’s Marketing Mix 4
McDonald’s franchises featured native citizens as owners, employees, and suppliers, which
All McDonald franchises agree to conduct business that will offer consistency of
products and services. Adapting to the local customs and ethnicities in China for example, the
‘Prosperity Burger’ is offered during Chinese New Year celebrations. This popular item has seen
the number of outlets in China swell to 1,000; further, the vegetarian ingredients of the
Maharajah McBurger has revolutionized franchises in India by respecting the religious and
Competition from Starbucks, which introduced breakfast sandwich and coffee combo
specials in addition to daily croissant/sweet roll with a coffee, was answered by McDonald’s with
the introduction of McCafe, a premium offering of coffees, blended, and iced offered at a more
reasonably priced commodity than that at Starbucks. In keeping with the trend towards healthy
lifestyles, McDonald’s once again has demonstrated a shift to meet changing market demands by
providing zero trans-fats in its fries, Filet-O-Fish, and other products. Frankly, McDonalds offers
products on a global basis, which provides a revolutionary blend of product conformity with
creativity.
Promotion
Promoting products is as diverse as the global print of this fast food giant, but consists of
five vehicles for informing and offering many reasons to choose McDonald’s: advertising, direct
marketing, sales promotions, public relations/publicity, personal selling (Kotler and Keller,
2006). Advertising ploys are similarly carried out in various countries, which feature a celebrity
touting the value, quality, and affordability offered by the franchise. In China for example,
McDonald’s Marketing Mix 5
money was saved by avoiding television advertising, as programs only feature advertising
between episodes, and studies indicated that the majority of viewers would change to another
station, thus advertising has been targeted in print—newspapers and magazines (Vignali, 2001).
McDonald’s Marketing Mix 6
Direct marketing has been achieved through the internet, as globally positioned web sites
cater to specific cultural diverseness while considering ethnic, religious, moral, and consumer
attitudes towards products. Promoting the corporate vision for respecting all communities by
operating in a ‘green’ manner, disclosing healthy alternatives with posted nutritional information,
and providing interactive features, such as feedback has been effective for keeping an eye on
customer needs and monitoring change in attitudes as a vehicle for maintaining a posture that is
Sales promotions are launched to keep the consumer informed of the value to quality
relationship, which has been successfully used for sustaining and expanding corporate wealth.
Offering various contests such as the Monopoly game transforms mere consumers into contest
game players, often returning for another visit, which would not have occurred without the lure
of winning prizes and money. The initial themes of circus flare Happy Meals, has sustained the
interest of the younger set, with Walt Disney Characters included in Happy Meals. Offering
values for the mature customer—parents—creates an enjoyable and fulfilling experience for the
entire family. Everybody is happy! Big Mac jingles and current slogan “I’m loving it” have kept
something for every member of the family, including rich content for students who are interested
in using McDonald’s as a topic for term papers. McDonald’s acts responsibly by respecting the
global environment and the diverse populations that this fast food mogul operates in—a green
machine! Feedback is welcomed and the rich history of this historic company is presented as an
interactive feature on the main company’s website. In Beijing, individuals are hired as public
McDonald’s Marketing Mix 7
relations agents for the company; further, creativity, originality, and a corporate mind set for
children and their families with special needs, such as serious medical conditions. According to a
Research shows that 92% of Americans have a more positive image of companies that
support a cause. And, 87% of Americans are likely to switch brands, when price and
quality are equal, to support a cause. These trends are consistent around the globe.
Mcdonald’s has been the official sponsor of the Olympics and other sporting events. In 1977,
McDonald’s selected its first ever All-American High school Basketball Team, which played an
exhibition game against the Washington Nationals, famed for always playing and losing to the
Employees are extensively trained in all aspects of safe food handling, product
information, and courteous customer service. Product information varies among the diverse
cultures, but consistency in employee awareness for safe food handling and dedication to
excellent customer service parallels the basic product food fare offered on virtually all
McDonald’s menus. Informed and polite people on the other side of the counter makes the
Various research studies have indicated that McDonald’s has saturated the United States
market, but opportunities still exist in the global marketplace as new nations feel the effects of
technological wonderments. This causes the standard of living to improve, education standards to
improve, and with knowledge comes power. The power of knowledge improves the mortality
rate, stabilizes fertility rates, and creates a new market for McDonald’s to expand responsibly,
ethically, and with respect for the environment, as corporate wealth and value is enhanced.
share” (¶ 3, Pricing Decisions). Extensive studies into market sectors thoroughly researches
demand, factors in costs, analyzes competitor positioning, and systematically arrives at a price
that will sustain customer demand for value, quality, and convenience, all delivered in a clean,
pleasingly friendly environment. Value menus featuring selected items for one-dollar increase
customer traffic and revenues as other regularly priced products are added to the order. A win-
win situation for all parties will increase market share and shareholder wealth.
Conclusion
customs, religious tenets, political systems, consumer watchdog groups, and fierce competition
from other entities seeking to erode some of the dominant market share that McDonald’s enjoys.
Including all of its shareholders in the process for ensuring that quality, value, consistency,
customer relations, and a willingness to change with the winds of consumer preferences has been
that recipe for success, and should be a formula that will sustain the latest slogan, “I’m loving
it”!
McDonald’s Marketing Mix 9
McDonald’s Marketing Mix 10
References
About McDonald’s. (2009). Cause that counts. Retrieved June 30, 2009, from
http://www.aboutmcdonalds.com/mcd/students/mcdonalds_does_good/cause_that_counts.html.
Kotler, P. & Keller, K.L. (2006). Marketing management (12th Edition). Pearson: Prentice-Hall.
http://www.aboutmcdonalds.com/mcd/investors/corporate_governance.html.
http://www.aboutmcdonalds.com/mcd/our_company/mcd_history.html.
Rowley, J. (2004). Online branding: The case of McDonald’s, British Food Journal, Vol. 106,
No. 3, (228 – 237). Retrieved June 30, 2009, from Emerald Full Text Article database.
Vignali, C. (2001). McDonald’s: “think global, act local”—the marketing mix, British Food
Journal, Vol. 103, No. 2,(97 – 111). Retrieved June 29, 2009, from Emerald Full Text
Article database.