Analysis of McDonald's Market Segmentation, Targeting, and Positioning

This report analyzes McDonald's segmentation, targeting, and positioning (STP) strategy. It begins by defining segmentation as dividing the market into groups based on similar characteristics. McDonald's employs geographic, demographic, behavioral, and psychographic segmentation. The targeting component involves selecting specific groups to sell products to, focusing on domestic and international markets, various age groups (8-45), income levels, and lifestyles. The positioning strategy centers on adapting the marketing mix to appeal to the target segments, with McDonald's positioning itself as a family-friendly, low-cost restaurant. The report concludes that McDonald's strategically segments its customers by life-cycle stage and positions itself accordingly, demonstrating an exemplary business plan.

Specific market segmentation, targeting, and positioning statements
The segmentation, targeting and positioning of McDonald are three of the most integral
components of its own marketing strategy. The segmentation can be referred to as the
dividing of populations into the group as per the similar characteristics. According to the
claims of Dudovskiy (2016), McDonald uses the geographic segmentation, demographic,
behavioural, and psychographic segmentation too. The targeting on the other hand is about
choosing specific groups which are recognized as a result of the segmentation for selling
products. It has been found that McDonald has target segment of the domestic and
international, urban/rural. The target age group is 8-45 both males and females. It
concentrates on bachelor stage, newly married couple, youngsters, college goers ,
professionals and employees too. Both the low and middle income level people are on focus
along with the mainstream individuals. The positioning is the selection of the marketing mix
becoming most suitable for the target segment of customers. The positioning can be achieved
through manipulation of the marketing mix (YouTube 2013). McDonald’s makes use of
adaptive type of product positioning. Recently the company has engaged itself in re-
positioning thee products and services as per the changes in the segment. As per the
company’ franchise strategy document:
“McDonald’s has made itself to be the family friendly low cost restaurant in the fast food
business. We have a narrow scope for a customer base and a low cost strategy” (McDonalds
2016).
Conclusion- Therefore, it can be concluded that McDonald has segmented its customers as
per the life-cycle stage along will positioning itself as a company which is family friendly It
can strategically decide which segment of the market must be targeted through which
product. It can be said that the company has an exemplary business plan.

Reference
Dudovskiy, J. 2016, McDonalds segmentation, targeting and positioning, retrieved 28 August
2019, < http://research-methodology.net/mcdonalds-segmentation-targeting-and-
positioning/ >
McDonalds. 2016, McDonald’s franchise strategy, retrieved 28 August 2019,
< https://sites.google.com/site/mcdonaldsfranchisestrategy/home >
YouTube, 2013, Segmentation, targeting, and positioning – McDonald’s, retrieved 28 August
2019, < https://www.youtube.com/watch?v=RcRFBVIvJHw >