McDonald's Channels and Customer Segments: Marketing Strategy Report

This report analyzes McDonald's marketing channels and customer segments. It explores the company's distribution strategies, including its restaurants, kiosks, and online platforms such as Postmates. The report highlights McDonald's demographic segmentation, particularly targeting children and young families. It also discusses the "Three-legged stool" business model, emphasizing the collaboration between suppliers, franchisees, and McDonald's. The study uses references from McMurtrey & Rowley (2016) and Nandini (2014) to support its findings, offering a comprehensive overview of McDonald's marketing approach and its effectiveness in reaching its target consumers. The report provides insights into how McDonald's leverages its channels to deliver products and services and how it segments its customer base to optimize its marketing efforts.

Running Head: CHANNELS AND CUSTOMER SEGMENTS OF MCDONALD
CHANNELS AND CUSTOMER SEGMENTS OF MCDONALD
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1CHANNELS AND CUSTOMER SEGMENTS OF MCDONALD
Distribution channel refers to moving the products and services from the business to
consumers. It is also defined as marketing channels. This study will discuss about the
marketing channel and customer segments of McDonald’s automatized burger factory. In a
nutshell, distribution defines the logistics included in the delivery of company’s product to
the proper customers in right time and place. On the other hand, segmentation includes
dividing the consumer according to important characteristics and targeting is selecting the
particular population as the outcome of segmentation to trade the products.
McDonald use the strategy of demographic segmentation with the parameter of age.
The core target of the new burger factory is the children and the young generation belonging
to the urban family ( Nandini, 2014 ). They have special tie up with Walt Disney to attract the
children. According to the study of distribution channel of McDonald the ideal place to find
the products is its restaurants. The company uses selective distribution channel to maintain a
push-and-pull communication in marketing. They also use places including Kiosks,
Postmates website and application, and mobile application for the company to reach their
potential consumers. The business model of McDonald is based on a concept of “Three-
legged stool”. According to this model, the suppliers and franchisees of McDonald work in
cooperation. The figure will help to understand the distribution channel of McDonald clearly.
Three legged stool of McDonald
Suppliers Franchiser Franchisee
(McDonald’s)
Figure : Three legged stool model
Source: ( McMurtrey & Rowley, 2016 ).

2CHANNELS AND CUSTOMER SEGMENTS OF MCDONALD
References
McMurtrey, M. E., & Rowley, B. (2016). McDonald’s and the Triple Bottom Line: A Case
Study of Corporate Sustainability. Journal of Strategic Innovation and
Sustainability, 11(1).
Nandini, A. S. (2014). McDonald's Success Story in India. Journal of Contemporary
Research in Management, 9(3).