Marketing Strategies for Attracting College Students to Big Mac

Mcdonald's is marketing its product Big Mac by targeting the young generation of college students who are more likely to consume fast food. The marketing strategy includes segmentation based on income and age, and positioning the product at accessible locations such as college campuses where the target market can be easily reached. By doing so, McDonald's aims to increase its sales and profitability. Effective market research is crucial for marketers like McDonald's to make informed decisions about their products, pricing, placement, and physical distribution.

Marketing

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
a. Identification of one specific consumer segment for product Big Mac..................................3
b. Identification and discussing characteristics of particular segment.........................................3
c. Ways in which marketing mix presents characteristics of segment.........................................4
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8
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INTRODUCTION
Marketing is referred to as management process with which movement of goods and
services is being done from concept to customers (Goi, 2009). In the present study concept of
marketing has been done with respect to Mcdonalds. The product of company taken is Big Mac.
The present study entails to understand one specific consumer segment for the product. Further it
includes characteristics of particular segment.
a. Identification of one specific consumer segment for product Big Mac
Mcdonalds is one of the world's largest chain of hamburger fast food restaurants that is
serving 68 million of customers on daily basis in around 119 countries. The company possess
more than 36000 outlets across the globe. There are wide variety of products that are being sold
by Mcdonalds. One of the most renowned product of the company is Big Mac. It is double layer
hamburger that is topped with American cheese, crisp lettuce, minced onions as well as tangy
pickles. The major target of this product is youth. With this Mcdonalds is trying to increase
attraction of college going students who wants to spent less and get greater quantity of product
(Ivy, 2008). In addition to this, the particular segment of customer is self dependent. Thus this
can be core meal for them which is available at reasonable prices. The taste of this hamburger
has been designed in accordance with the preferences of the youth customers. It has been
developed with the intention that as the students may not place big orders thus with Big Mac the
youth can spent greater amount of time gossiping with their friends and colleagues. Such
characteristics have increased attraction of the youth in the market.
b. Identification and discussing characteristics of particular segment
The particular segment that is being targeted by Mcdonalds for its product Big Mac is
youth. Firm has segmented the market on the basis of demographic segmentation. It is an
essential element of all the marketing departments as the data is available easily and it has huge
impact on the buying patterns (Jüttner, Christopher and Baker, 2007). Under this division of
market for product is done according to age, race, gender, family size, income as well as
education. It has been examined that demographics can be categorized into various market with
the aim to assist firm in targeting the customers in an accurate manner. The selection regarding
the basis of segmentation is an important decision. This is because it has potential to affect
promotional strategy of the organization to a greater extent. The choices of the people who
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belongs to varied demographic basis perceive product in different manner. Moreover their needs
and wants from the product are contrasting.
Here in case of Mcdonalds the segmentation of product Big Mac has been done on the
basis of age and income. Age plays an important role in determining whether the firm needs to
promote its product online or offline. On the basis of age group Mcdonalds is targeting people
with age of 20-30. This majorly includes the youth that are more inclined towards intake of fast
food. The development of Big Mac has been done in funky style so that it can attract large
customers (Wang and Tzeng,2012). The individuals belonging to higher age group have not been
taken into account for the particular product due to the reason that they do not prefer fast food to
a greater extent. Thus the target market for Big Mac is young generation who are fast food
lovers. The promotion for such market segment can be done through online means as it would
assist in covering larger areas within minimal time span (Ataman, Van Heerde and Mela, 2010).
The type of people that would be served through Big Mac are technological savvy thus the
promotion can be best done through internet that can result in increasing attraction towards the
product.
Further under demographic segmentation that market is categorized on the basis of
income as well. When the firms are required to devise pricing strategies for their brand then they
takes into consideration income level of target people. It includes the people with high income,
low income and middle income group. Thus the development of product is done accordingly so
that their requirement can be accomplished with effectiveness (Dziri, 2013). In case of
Mcdonalds the individuals with middle income are selected. These are the one who are self
dependent. In addition to this the market segment is the college going students who have less
money to pay. With the assistance of such good this customer segment can be provided with
superior quality, greater quantity and economical prices (Figge and et.al., 2002). These attributes
are necessarily considered by the customers which would facilitate in satisfaction of their
requirements. All such attributes exists within Big Mac product offered by Mcdonalds. The use
of ingredients has been done on the basis of preferences and taste of young generation. With this
firm can enhance the attractiveness of the product in the mind of target market to a significant
level.
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c. Ways in which marketing mix presents characteristics of segment
Marketing mix is referred to as the set of actions or tactics that can be used by the
organization with the aim to promote its brand in the market place. It is considered as business
tool that marketers uses in order to develop crucial business decision. The marketing mix tool
includes four elements. This involves product, price, promotion as well as place. The expansion
of the marketing mix to seven P's has been done in case of service marketing. All the elements of
marketing mix has huge impact on one another. Marketing mix facilitates in development of
business plan for the firm. In case this is handled effectively results in success of the
organization to a greater extent. But in situation when the handling is not done with proper care
then such can result in failure of organization. This would later increase the time for the firm to
recover from the consequences of failure (Garoufallou and et.al., 2013). It is highly important for
the marketers to possess better understanding of the market through research. As such would
facilitate the organization like Mcdonalds in developing product as per the specification of the
customers. In order to promote the product Big Mac in the market the company needs to develop
marketing mix plan which demonstrates the types of product, price, means of promotion as well
as channel of distribution. The marketing mix that is best suited for Mcdonalds has been
enumerated in the manner below:
Product
This is regarded as item which is seem to accomplish the needs and demands of the
customers. It can be tangible good that implies those having independent physical existence. It
has been determined that every product possess life cycle which is comprised of various stages.
Before the development of product it is essential for the marketer to examine the product life
cycle so that its survival can be enhanced in an effective manner. In case of Mcdonalds the
product is Big Mac. This has been designed for the target market that includes young generation.
This is because it is double layered hamburger that is generally consumed by youth (Olson,
Slater and Hult, 2005). The development of product has greater advantage in terms that it is
effective in offering quality product and services to the customers in accordance with their
requirements. It is essential for the marketers to make determination of time duration that
product is likely to exists in the market. The role of product is very crucial and beside this
several activities are being carried out. The strategies of promotion is being determined on the
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basis of product only. Here for Mcdonalds the product is unique in terms that it is able to satisfy
the needs of youth by offering them higher quantity of product.
Price
Another major element relating with marketing mix is price. It is the amount which is
being paid by the customers for the product. The role of price is significant as assist in making
determination of the amount of profit that will be made by the company. This thereby results in
affecting in survival of the firm to a greater extent. It is important for the marketer to make
determination of such price that suits the target customers. There are several pricing strategies
that are being used by organization in order to gain competitive advantage. These are relating
with market skimming, market penetration pricing as well as neutral pricing. With the selection
of appropriate pricing the company can increase attractiveness of the customers towards the
brand. In case of Mcdonalds the Big Mac has been priced slightly low as it major target market is
youth customers (Simkin, 2008). Due to presence of self dependent nature there is greater need
to provide them with reasonable prices of the product. The market targeted here is one which
highly depends on pocket money for satisfaction their needs. Thus for them quality, quantity and
price plays a very crucial role. While setting the price the marketer needs to examine the value of
the product that is being perceived by the customers. As such it would act as an aid in
determining true value of the offerings made to the target market.
Promotion
Promotion is regarded as the technique that is used by the marketer in order to promote
the product among various parties. It includes activities such as advertising, sales promotion and
personal selling. The marketers makes identification of the promotion method that best suits the
needs of the customers. Thus it results in creating awareness among the target market to a greater
extent. It has been examined that different promotional tool have varied merit and accordance
with it the selection of best is made. In the present case the promotional tool that would be used
by Mcdonalds includes advertising. This can done on internet and other social media marketing
tools in order to increase knowledge of the youth regarding Big Mac. It is important for the
marketer of Mcdonalds to design advertising in a manner that it does not hide essential aspects
relating with the product (Ingram, 2014). As in the present era people have become more health
conscious. Thus it is of greater importance for company to reveal the facts regarding the
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ingredients that have been used in Big Mac. This is with the aim to build trust in the minds of
target market. Further this would act as an aid in increasing sales as well as revenue of the
business to a significant level.
Place
It is regarded as the location where the product can be accessed in an effective manner.
As the target market for Mcdonalds is college going students thus it becomes essential for the
organization to pay attention towards the decision regarding the place. There are several
strategies that relates with distribution which includes intensive distribution, selective
distribution, exclusive distribution as well as franchising. For Mcdonalds the distribution can be
done by selling the product at different outlets of the company. The franchise system is best
suited in fulfilling the requirements of the market to a significant level (Segmentation, Targeting,
and Positioning, 2014). Further it has significant role in attracting the target market to a greater
extent. The location at which the product is being sold needs to be accessible by those from
whom it has been designed. The Big Mac is developed for students who are college going. Thus
from them the most accessible place would be college campus where large number of target
market can be attracted. This would assist Mcdonalds in increasing its sales and profitability to a
significant level.
CONCLUSION
It can be concluded from the study that Mcdonalds is marketing its product Big Mac. For
this segmentation is done on the basis of income and age. Further it has been inferred that this
includes the young generation people who are more fast food lovers. Marketing mix for
Mcdonalds product has been determined which includes decision regarding product, price, place
and physical distribution of Big Mac. It is important for marketer to carry out effective market
research so that decision making can be done in an effective manner.
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REFERENCES
Journals and Books
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strategy on brand sales. Journal of Marketing Research. 47(5). pp.866-882.
Dziri, R., 2013. Avoiding Strategic Drifts in a Hypercompetitive Market. GRIN Verlag.
Figge, F. and et.al., 2002. The sustainability balanced scorecard–linking sustainability
management to business strategy. Business strategy and the Environment. 11(5). pp.269-284.
Garoufallou, E. and et.al., 2013. The use of marketing concepts in library services: a literature
review. Library Review. 62(4/5). pp.312–334.
Goi, C. L., 2009. A review of marketing mix: 4Ps or more?. International Journal of Marketing
Studies. 1(1). pp.2.
Ivy, J., 2008. A new higher education marketing mix: the 7Ps for MBA marketing. International
Journal of educational management. 22(4). pp.288-299.
Jüttner, U., Christopher, M. and Baker, S., 2007. Demand chain management-integrating
marketing and supply chain management. Industrial marketing.
Olson, E. M., Slater, S. F. and Hult, G. T. M., 2005. The performance implications of fit among
business strategy, marketing organization structure, and strategic behavior. Journal of
marketing. 69(3). pp.49-65.
Simkin, L., 2008. Achieving market segmentation from B2B sectorisation. Journal of Business
& Industrial Marketing. 237. pp.464–474.
Wang, Y. L. and Tzeng, G. H., 2012. Brand marketing for creating brand value based on a
MCDM model combining DEMATEL with ANP and VIKOR methods. Expert Systems with
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Online
Ingram, D., 2014. Elements of Basic Marketing Concepts. [Online] Available through:
<http://smallbusiness.chron.com/elements-basic-marketing-concepts-10424.html >.
[Accessed 10th August 2015]. influencing-airline-industry/>. [Accessed on 10th March 2016].
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