McDonald's Marketing Mix Strategies and Analysis in the Chinese Market

This report provides an analysis of McDonald's marketing mix in the Chinese market, focusing on product, price, and place strategies. The product analysis highlights adaptations to local preferences, such as the inclusion of beef, pork, fish, and chicken, with a focus on milder tastes. Pricing strategies involve a slightly higher price point compared to other fast-food restaurants, with adjustments based on different times and locations. The placement strategy emphasizes locating outlets in bustling commercial areas. Furthermore, the report examines McDonald's segmentation, targeting, and positioning (STP) approach. McDonald’s targets various demographics including age groups and income levels. The company focuses on creating a fun environment, offering Happy Meals for children, and providing free Wi-Fi for youngsters. The positioning strategy emphasizes customer satisfaction and a positive brand image, with promotional campaigns leveraging social media and billboards. References to relevant sources are included.

McDonald’s

McDonalds
 STP of McDonald’s Segmentation  Geographic: China
 Demographic
a.) Gender: Male, female and children.
b.) Age:10-55
c.) Income level: Upper class and
middle class.
 Psychographic: In China, McDonald’s
targets the people of all age group but
mainly the youngsters and children.
 Behavioral:
a.) People living in China; prefer beef,
so offers the food items according
to the preference of the customers.
b.) In relation to user status, it includes
potential and regular fast food users
(Rodrigues, Nikhil and Jacob,
2016).
 Targeting  Provide fun environment to their
customers.
 In China, company targets children
with Happy Meals.
 Targets youngsters with free WIFI.
 Families with better menu items.
 The main aim is to boost the
satisfaction level of the customers of all
age groups.
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McDonalds
 Positioning  McDonald’s focuses on maintaining
positive image in the mind of
customers.
 In the fast food industry, the company
offers customer friendly food items
with the low price as compared to other
competitors such as KFC and Burger
King.
 For example: McDonalds position itself
by offering plastic toys with the happy
meal products.
 Advertisements are also done through
various promotional campaigns such as
through social media to enhance brand
awareness among the customers (Zhu,
Anagondahalli and Zhang, 2017).
 Advertisements are done on the bill
boards as their mainstream to position
its brand among the competitors.
 In China, company promise to deliver
food within “30 minutes”, which means
that order will not be delayed and if in
case the food is delayed, then they offer
food vouchers to their customers
(McDonald’s, 2018).
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McDonalds
References
McDonald’s., 2018. McDonald’s. [ONLINE]. Available from:
https://www.4008-517-517.cn/cn/support-additional-1.html?
staticLinkId=11&locale=en&_ga=2.167296829.247385713.1562914259-
267068396.1562914259 [Accessed on 12 July, 2019].
Rodrigues, J., Nikhil, S. and Jacob, S., 2016. Promotional Strategies of McDonalds and Market
Effects. Journal of Management Research and Analysis, 3(1), pp.53-55.
Zhu, L., Anagondahalli, D. and Zhang, A., 2017. Social media and culture in crisis
communication: McDonald’s and KFC crises management in China. Public Relations
Review, 43(3), pp.487-492.
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