A Detailed Report on the Marketing Mix of McDonald's Australia

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This report provides an analysis of the marketing mix of McDonald's Australia, focusing on the 4Ps: product, price, place, and promotion. The report highlights McDonald's product lines including hamburgers, sandwiches, desserts, and beverages, and notes the popularity of their all-day breakfast and innovative gourmet creations. The company employs bundle pricing and psychological pricing strategies to maximize profit margins and gain a competitive edge. Distribution occurs through restaurants, kiosks, and mobile apps, with restaurants generating the most sales revenue. Promotional activities include advertising, sales promotions, direct marketing, and public relations. The report concludes with recommendations for McDonald's to enhance its digital marketing strategies and offer additional services like home delivery to further engage customers and increase market share.
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Running head: MARKETING MIX OF MC DONALDS
Marketing Mix of Mc Donalds
Name of the student
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Author note
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Abstract
Background
Marketing helps in the aspect of promotion and selling of the products or services of a
company to that of the target market. Marketing can help a company in informing, attracting
and convincing the people for convincing the customers that their services are valuable.
Purpose of report
The purpose of the report is to elaborate on marketing mix in relation to MC Donalds
Australia. It evaluates the effectiveness of the marketing mix of the company.
Method
Secondary data like journals and the books will be used that can help in throwing light on the
concepts of marketing mix like product, place, price and the promotion.
Results
The report concludes that the main products of Mc Donalds Australia are hamburger, cheese
burger, dessert and the soft drinks. The company makes use of bundle pricing strategy and
the psychological marketing strategy for the marketing of the products. The products of Mc
Donald are distributed to the restaurants and the kiosks from where the customers can buy the
products. The products are promoted with the help of advertising along with public relations
activities.
Conclusion
Mc Donalds helps in providing innovative product lines that is greatly popular among the
people in Australia. The sandwiches, desserts and the drinks of Mc Donald are in great
demand among people. Mc Donald maximises the profit margins by taking recourse to the
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pricing strategies. The products of Mc Donald are distributed with the help of restaurants and
the kiosks. The products of Mc Donald are promoted with the help of direct marketing and
the public relations activities.
Recommendations
The company can use digital promotional strategy for the promotion of the products. They
can use additional services like home delivery that can help the company in relation to
promotion.
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Table of Contents
Introduction................................................................................................................................5
i. Purpose of report.................................................................................................................5
ii. Background........................................................................................................................5
iii. Scope.................................................................................................................................5
Method.......................................................................................................................................5
Case Study..................................................................................................................................6
i. Product................................................................................................................................6
ii. Price...................................................................................................................................6
iii. Place..................................................................................................................................6
iv. Promotion..........................................................................................................................7
Conclusion..................................................................................................................................7
Recommendations......................................................................................................................8
References:.................................................................................................................................9
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Introduction
i. Purpose of report
The purpose of the report is to elucidate on the marketing mix of Mc Donalds. It
discusses about the product, price, place and promotion related marketing aspects of the
company.
ii. Background
Mc Donald’s Australia is a fast food company that has emerged to become the largest
restaurant chain in terms of revenue (Mcdonalds.com.au 2018). The company is primarily
known for the hamburgers, cheese burgers, french fries, chicken products, desserts, soft drink
and the milk shake. The changing consumer taste has compelled the company to add salads,
smoothies and the fruit to the menu.
iii. Scope
This report will discuss about the marketing mix of Mc Donald that can help in
understanding the product being offered by the company and regarding its plan pertaining to
successful product offering. The marketing mix would be executed by taking recourse to 4P’s
of the marketing- product, place, price and promotion.
Method
Secondary data will be used for doing this report that can help in providing a detailed
view about the marketing mix of Mc Donalds. Secondary data has been already collected by
previous researchers and it is an economical method. The secondary resources that were
made use of for doing the assignment are textbooks and the journal articles.
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Case Study
i. Product
Mc Donalds Australia has product mix that is composed of food along with beverage
products. The main product lines of Mc Donalds Australia are hamburgers, sandwiches,
desserts, shakes, chicken, fish, salad, snack and the beverages. It also provides all-day
breakfast that is greatly popular among a large portion of the Australian population. The
innovative gourmet creations are greatly popular among the people and are coveted by a large
number of people (Huang and Sarigöllü 2014). It also has Mc Café, condiments and the
drinks that helps in targeting the young population of Australia. The menu of Mc Donald
comprises of “All Day Favourites” that helps in catering to the unique taste of the people.
ii. Price
The pricing element of the marketing mix helps in specifying price points along with
price ranges of food products of the company. Mc Donald wants to maximise the profit
margins and for this end it makes use of bundle along with psychological pricing strategies.
Mc Donalds offers meal in terms of product bundles at a price that is discounted that helps
the company in getting an edge over the competitors (Sulaiman and Syahrivar 2018). The
customers can buy Happy Meal or the Extra Value Meal that helps in optimizing the cost
along with product value. The psychological pricing strategy of Mc Donalds Australia makes
use of prices that seem to be affordable for the consumers. They make use of $__.99 to
encourage the customers to purchase the products of the company (Mathur 2017).
iii. Place
This element of marketing mix specifies the locations where the products are offered
that can make it accessible to the consumers. The products of the company are distributed to
the restaurants located within Australia. The distribution of the products is carried out with
the help of kiosks, restaurants and mobile apps. The company is able to generate the
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maximum amount of sales revenue with the help if restaurants. The restaurants of Mc
Donalds manage the kiosks that is instrumental in selling limited products like sundae along
with other desserts. The mobile apps of Mc Donald can be easily accessed by the customer
for gaining information regarding the products of the company (Fan, Lau and Zhao 2015).
The mobile apps for the iOS along with Android can help the customers in claiming the
special deals and finding the locations of the restaurants. The customers can also place the
order by taking recourse to Postmates website and the mobile app.
iv. Promotion
This element helps in defining the tactics that the business can make use of for
communication with the customers. The company makes use of new information that can
help in persuading the consumers for buying new products. Mc Donalds makes use of
advertising, sales promotions, direct marketing and the public relation for the purpose of
promoting the products (Harrington, Ottenbacher and Fauser 2017). Advertisements acts as a
great promotional tactic for the company. Mc Donalds also offers discount coupons along
with freebies in relation to certain products that can help in attracting the consumers. The
public relations of the company helps in promotion of business to that of the target market by
making use of brand strengthening (Kraak et al. 2017).
Conclusion
Mc Donalds Australia has the product mix that comprises of food and the beverage
products. Innovative gourmet creations of Mc Donald are in great demand among people and
they are popular among a large section of the population. The meals are offered at a
discounted proce that makes it affordable among a large section of the people. The consumers
can purchase Happy Meal or that of the Extra Value Meal that can optimize the product
value. The products of the company are distributed with the help of restaurants and the
kiosks. New information is made use of by the company for drawing the customers.
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Recommendations
Mc Donalds should recognize the significance of digital media in relation to
promotional mix and it should make use of digital marketing strategies that can help it
in engaging with that of the online customer base.
Mc Donalds can offer additional service features like food on demand along with
home delivery that can help in providing convenience to the customers.
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References:
Fan, S., Lau, R.Y. and Zhao, J.L., 2015. Demystifying big data analytics for business
intelligence through the lens of marketing mix. Big Data Research, 2(1), pp.28-32.
Harrington, R.J., Ottenbacher, M.C. and Fauser, S., 2017. QSR brand value: Marketing mix
dimensions among McDonald’s, KFC, Burger King, Subway and Starbucks. International
Journal of Contemporary Hospitality Management, 29(1), pp.551-570.
Huang, R. and Sarigöllü, E., 2014. How brand awareness relates to market outcome, brand
equity, and the marketing mix. In Fashion Branding and Consumer Behaviors (pp. 113-132).
Springer, New York, NY.
Kraak, V.I., Englund, T., Misyak, S. and Serrano, E.L., 2017. A novel marketing mix and
choice architecture framework to nudge restaurant customers toward healthy food
environments to reduce obesity in the United States. Obesity Reviews, 18(8), pp.852-868.
Mathur, S., 2017. Glocalization in Fast Food Chains Glocalization in Fast Food Chains: A
Case Study of McDonald's. In Strategic Marketing Management and Tactics in the Service
Industry (pp. 330-347). IGI Global.
Mcdonalds.com.au (2018). McDonald's Australia. [online] Mcdonalds.com.au. Available at:
https://mcdonalds.com.au/ [Accessed 27 Sep. 2018].
Sulaiman, J. and Syahrivar, J., 2018. The Influence of Marketing Mix 4A and Ethical
Consciousness towards Ethical Consumption.
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