Market Position

Running head: MARKET POSITION 1
Market Position
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MARKET POSITION 2
Table of Contents
Introduction.................................................................................................................... 2
Current Status of Market Position......................................................................................... 3
Market Position in the Next 5 Years...................................................................................... 6
The Road to Achieving the Position...................................................................................... 8
Analysis...................................................................................................................... 10
Conclusion and Discussions.............................................................................................. 11
References................................................................................................................... 12

MARKET POSITION 3
MARKET POSITION
Introduction
In business strategy as well as marketing, a market position is a term used to refer to the
perception that a consumer has towards a particular brand or a product in comparison to
competing brands. As such, market positioning entails establishing a brand or product’s identity
so that customers perceive it in a particular way. For instance, a car manufacturing company
might position its brand as a luxury while a battery manufacturer may position the batteries as
long-lasting. Besides, a fast-food firm such as McDonald’s might position itself as the provider
of quick and pocket-friendly standardized meals. Based on this definition of market positioning,
the paper will discuss McDonald’s current marketing position, its marketing position in the next
five years, and the path to obtaining that position, including a summary and discussion section.
In the fast-food industry, McDonald’s is the most successful chain. The corporation
became successful in this industry by responding quickly to competition, focusing on customer
service, as well as using marketing techniques in its early stages of development. The
organization provides services to more than 60 million consumers in over 120 states daily. Also,
the company operates more than 35,000 branches globally. The company’s strong foundation
dates back to 1940 when Ray Kroc. Dick and Mac McDonald opened the first chain in San
Bernardino. In 1948, as a result of declining sales, the restaurant was closed and later reopened
in 1955 to sell standard prepared French Fries, hamburgers, as well as milkshakes. Since then,
the company has continuously been increasing the number of product it offers on its menu. As a
result, the corporation has become the most successful fast-food chain globally. The
organization’s restaurants are operated either by a franchisee, affiliate, or the corporation itself.

MARKET POSITION 4
Current Status of Market Position
Intending to successfully sell to various market segments that comprise of the consumer
base, McDonald's must have a distinct and explicit place in the consumers’ minds. In the
consumer age where the customer has got increased choice and information, products must be
marketed to particular groups, having a clear identity that matches the benefits to the customer
(Al Badi, 2015). The company’s market position involves the selection of the best marketing that
best suits its target customer segment. Achieving positioning involves the use of marketing 4Ps
as well as the positioning matrix. In this case, McDonald’s became the world leader in the fast-
food industry by using an adoptive method of product positioning. Nonetheless, the firm engages
in periodical re-positioning of its products and services based on the changes of its customer
segment.
Since the corporation is a food service organization, its product mix mainly consists of
beverage and food products. A product mix’s element mostly covers a company’s outputs that
are geared towards satisfying consumer needs. McDonald’s product mix mainly consists of
salads, beverages, chicken and fish, sandwiches and hamburgers, snacks and sides, desserts and
shakes, McCafe, and breakfast (Harrington, Ottenbacher & Fauser, 2017). McDonald’s products
are the most fundamental in determining its corporate image and brand. The organization has
primarily gained a reputation due to its hamburgers. Due to the diversification of its product
lines, the firm has been able to satisfy the market demand, spread risk in its operations, and
increase revenue (Young & Page, 2014). Based on this element, it is evident that the organization
continuously innovates in designing new products aimed at attracting more clients along with
improving the stability of the business.