Mcdonalds Marketing Strategy free essay sample

Designing a customer driven marketing strategy consists of four key components that when performed effectively allows the business to create greater value for its customers. These key components are: 1. Segmentation: Divide the total market into smaller segments 2. Targeting: Select the segment or segments the business is going to focus on. 3. Differentiation: Ensure that the business makes its product more desirable to its target market than all the others like it. 4. Positioning: Create an image for the product and position it in the minds of the target market. An effective customer driven marketing strategy also involves the design and implementation of a successful marketing mix. The marketing mix is a term used to describe the four main marketing tools (4Ps): 1. Product: McDonald’s places considerable emphasis on developing a menu which customers want. Market research establishes exactly what this is. However, customers’ requirements change over time. In order to meet these changes, McDonald’s has introduced new products and phased out old ones, and will continue to do so. 2. Price: The customer’s perception of value is an important determinant of the price charged. The danger of using low price as a marketing tool is that the customer may feel that quality is being compromised. McDonalds products range in price from its traditional products it also promotes a number of products below $2 and also offers a deli choice menu which are more expensive products containing more gourmet ingredients. 3. Promotion: There are three main objectives of advertising for McDonald’s they are to make people aware of an item, feel positive about it and remember it. The right message has to be communicated to the right audience through the right media. McDonald’s does its promotion through television, bill boards, radio and bus shelters. The prime focus of McDonald’s promotion campaigns is on targeting children. Some of the most famous marketing campaigns of McDonald’s are; â€Å"You Deserve a break today, so get up and get away- To McDonald’s† and more recently â€Å" I’m loving it†. 4. Place: Place encompasses the management of a range of processes involved in bringing products to the end consumer. McDonald’s outlets are very evenly spread throughout the cities making them very accessible. Dine in and drive through options make McDonald’s products further convenient to the consumers. McDonalds offers hygienic environment, good ambience and great service. Now McDonalds have also started giving internet facility. Question 2: Since the 1960’s McDonalds have lead the industry when it comes to customer driven marketing, however due to a slump in sales figures between 1997 and 2003 the fast food giant was forced to overhaul its marketing strategies in order to capture value from its customers and revive its brand loyalty. The main target segments for McDonalds are children, youth, and young urban family and have more recently been expended to include business people and healthy eaters. Recent studies have shown that kids reign supreme in a family when it comes to making decisions on fast moving consumer goods, i. e. takeaway food. Thus traditionally kids have been the main focus of McDonalds marketing strategies over the years. So to attract children McDonalds has the Happy Meal which comes with a small toy, and to make the Happy Meal more desirable to children McDonalds frequently enters into co-branding agreements with companies such as Disney, Hot wheels or Barbie to ensure the toy keeps up with the tastes and interests of children. Also at most outlets McDonalds provide a â€Å"play place† where children can play on equipment. This strategy is aimed at making McDonald’s a fun place to eat. This also helps McDonald’s to attract the young urban families wanting to spend some quality time while their children have fun at the outlet. Also to attract the young urban family McDonalds has released a â€Å"Dinner Box†, which allows the family to purchase a box which contains several meals at a discounted price making it more affordable to feed the whole family at McDonalds. To target the teenagers, McDonald’s has priced several products aggressively, keeping in mind the price sensitivity of this target customer. In addition, facilities like Wi-Fi are also provided to attract students. To Target the business person McDonalds has introduced â€Å"McCafe† facilities into most of their outlets and placed significant emphasis on their coffee being â€Å"cafe quality† offering to replace or refund coffee where the customer is not completely satisfied. Also Wi-Fi facilities are also aimed to attract business people who may want to do some work while they dine. Finally to attract the health conscience customer in recent years McDonalds has revamped its menu offering healthier choice options with all its meals, including happy meals, and also offering a range of heart tick approved meals which bear the Heart Foundation’s â€Å"Heart Tick of approval†. Also McDonalds now displays the nutritional value of its products on the packaging. Other steps McDonalds has taken to capture value from its customers include new burger system where all burgers are made to order, extended trading hours with more than a third of McDonalds restaurants now being open 24 hours and redecorating its restaurants with modern interiors. It is a combination of these marketing strategies along with quality of food and service in a clean, hygienic and relaxing atmosphere that has ensured that McDonald’s captures value from its customers and maintains a positive and long relationship with the customers.