Detailed Analysis of McDonald's Marketing Mix and Recommendations

This report offers a critical analysis of McDonald's marketing mix, a crucial tool for businesses to strengthen their brands and sell products. The analysis begins with a discussion of the marketing mix theory, including the 4Ps (Product, Price, Place, Promotion) and extended components (People, Physical Evidence, Processes). It then provides a detailed examination of McDonald's current marketing strategy, breaking down each element of the marketing mix. The analysis includes product profiles (vegetarian and non-vegetarian menus, beverages), pricing strategies (affordable options, happy price menu), place (prime locations, drive-throughs), and promotion (advertising, loyalty schemes). Furthermore, it delves into the aspects of People (service philosophy), Process (transparency, innovation), and Partnership (franchise model). The report concludes with strategic recommendations for product innovation, pricing and place optimization, process improvements, people management, and partnership opportunities to enhance McDonald's market position. The report is supported by references to relevant academic sources and company websites.

CRITICAL ANALYSIS

MARKETING MIX THEORY
• marketing is a constantly evolving process
which leverage the companies’ potential to
match the competition with others. One
important example of marketing evolution is
the fundamental changes to marketing mix.
This theory is a tool which the business and
the marketers use greatly and determine the
product offering.
• The definition of marketing mix is quite
simple. It is a marketing tool which combines
the components for strengthening as well as
solidifying the product’s brands thus help the
companies to sell their products in the
markets. Marketer Jerome McCarthy came up
with the first of the theories for marketing
mixes in 1960s.

CONTD.
• The marketing most tool has mainly four components which are called
4Ps. These are Product, Price, Place and Promotion. Later in 1970s more
components were started to be acknowledged. These extended
components are People, Physical Evidence and Processes. The other Ps
may be Partnership and productivity.
• The product needs to fit the demand of the customers, it needs to be
available in the areas of demand, price needs to be acceptable in the
market and proper method of promotion helps to reach the customers.
The extended components help the business flourish in many ways.

CURRENT MARKETING STRATEGY OF
MACDONALD’S WITH MARKETING MIX
• Product:
• Product Profile- Vegetarian Menu and Non-
Vegetarian Menu
• Beverages mainly coffee
• Frozen Desserts
• Product Attributes- Care for their customers’
sentiments towards religion as well as
culture.
• It has separate cooking areas and
equipment.

PRICE
• Affordable products
• brand affordability
• brand core value product
• psychological implications
• cost leaderships
• profoundly marketed “happy price menu”
• many types of combos
• low cost food franchise

PLACE
• Located in the prime locations for example- malls and shopping complex's
• Located in all of the big cities therefore easily accessible.
• Drive-in and drive through options MacDonald’s future convenient to
consumer
• Right of the high-ways.
• building maintenance
• great interior in stores.
• cleanliness

PROMOTION
• Advertising through digital and
other media
• Promotional methods like door
drops, point of sales display, direct
mail, merchandising and loyalty
schemes
• McDonalds targets children through
Happy Meals and gadgets or toys
• Lucky draws and scratch cards
• Hoardings at major places.

PEOPLE
• Philosophy of services, quality,
cleanliness of the stores and value are
forces behind great service.
• Fast services
• Staff members
• speed quality
• transparency in the physical evidence
• Standard uniform for the employees
• Delivery the crew members carries basic
operation of a restaurant
• Ensure customer satisfaction at the
restaurants.

PROCESS
• Transparency in food production
• Innovative method of packaging
and distribution
• Innovative cooking equipment
• Food safety and high quality
• Being green
• Customers can check the
ingredients used in their foods
• Most convenience way of payment

PARTNERSHIP
• Follows franchise model to enter a market
• 15% owned by MacDonald’s 85% by franchises
• The company partners with consistent and sophisticated suppliers
• Partnership with Coca-Cola, Cadbury, Walt Disney, Barbie Toys, Hot
Wheels,
• Act like a retailer think like a brand

RECOMMENDATIONS
PRODUCT INNOVATION
• Replacing existing products with healthier products
• More fruit and vegetable based products like fruit juices and salad
• Attracting more vegetarian customer
• Putting more importance to the coffee products and related beverages to
make it high quality

PRICE AND PLACE
• The company needs to
strategies more low cost
food so that it can
attract more people of
different social strata
• Places should be more
engaging so that
customers spend more
time there and buy more
• Opening outlets in
railway junctions and
suburbs
• More market penetration
in the Asian countries