Analyzing McDonald's: Marketing Report on Target Market and Strategy

This report presents a comprehensive analysis of McDonald's marketing strategies, with a specific focus on its target market, competitive positioning, and overall business approach. The research begins with an introduction to the service industry, using McDonald's as a case study to examine its operational and marketing tactics. The report then delves into McDonald's target market, segmenting consumers geographically, demographically, psychographically, and behaviorally. The report explores McDonald's adaptive targeting strategy, highlighting its ability to customize products to meet diverse consumer needs. Through detailed analysis, the report provides insights into how McDonald's adapts its menu to suit the diverse preferences of consumers globally. The report references various sources to support the findings and provides a clear understanding of McDonald's market positioning and how it maintains a positive relationship with its consumer base, offering a valuable case study for understanding marketing principles in the fast-food industry.

Running Head: MARKETING
1.0 Introduction
The focus of this research is the service industry with specific interest in the service industry
especially the café business, McDonalds will be used as a case study. The purpose is to
analyze the target market, understand the strategy employed and how McDonalds positions
itself to better relate with its consumers. Apart from secondary sources, the information will
be gained by observation by visiting the location.
2.1 Service Product Café
The location, positioning, and the products offered are among the things a consumer looks at
before visiting a specific location. Depending on the target group, most of the Y generation, a
common target group, especially those between 15 and 30 are after convenience offered and
are highly price sensitive. This particular age group is very particular about getting value for
their money. Quality of service and food appear to be a differentiating factor among the
players in the service industry. The consumer has become very sensitive and more so audible
in terms of the services they expect, what the café promises, and what they get. In addition, in
a world of social media failure to meet the criteria translates to exposure and sharing(Desmet
& Hekkert, 2007).
3.0 Target Market, Strategy, and Positioning
3.1 Market segment
Type of segmentation Segmentation criteria McDonald’s target segment
Geographic Region Domestic/ international
Density Urban/ Rural
Demographic Age 8-45
Gender Males and females
Stage Young and single and have

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moved out of parents home
Newlyweds with no kids
Family with children
Income Low and middle
Occupation Students, employees, &
Professionals
Behavioral Occasions Parties
Benefits Cost, convenience, and time
efficient
User status Regular fast food consumer
Psychographic Social class Lower, working, and middle
class
Lifestyle People from all classes of
life with age as the main
driving factor
Source: (Dudovskiy, 2016)
McDonalds pursues precise segments in the market, which they use to customise various
products based on the segment. According to the table 1, market segment includes four big
part, which are geographic, demographic, psychographic, and behavioural. Geographic part
include a location of the store, demographic part includes occupation, age, gender, stage in
life cycle, and income, psychographic include social class, lifestyle, and behavioural include
occasions, benefits, and social class. For McDonald’s demographics is mostly used in
segmentation with key interest in age. Young urban families, youth, and children forms part
of their key focus market (Teece, 2010).

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Age is the main driving factor as the consumer needs and wants change with age. McDonalds
have packaged their products to appeal to a diverse age group with specific focus on the Y
generation who are concerned with quality, convenience, and time efficiency. For instance, to
appeal to children on top of the Happy Meal there are assortment of toys to accompany that
include Disney World characters. Also some of their outlets have special gaming locations
where children have an opportunity to play arcade games (McKechnie, Grant, &
Katsioloudes, 2008).
Initially the company was perceived to be targeting the upper middle class in urban
dwellings. However, McDonalds have continuously evolved and rebranded itself, to position
itself in the market as a dynamic place that suits the whole family, besides its pricing it is
affordable and does not compromise on quality. The ambience offering a relaxing
atmosphere, standardized quality of food and service in all its outlets globally, the hygiene
guaranteed in its outlets ensures that McDonalds maintains a positive relationship with its
consumer base(McDonalds, 2012).
Targeting
Target marketing strategy can make the method more efficient to provide the goods and
service for wide range of different consumer groups. There are four different strategies,
which include undifferentiated, differentiated, concentrated, and customized. A concentrated
approach is when a business focuses on a single segment. For instance, McDonalds focus is
on fast food. In undifferentiated approach, the business appeals to a broad spectrum, by doing
so the company enjoys the benefits of scale. To maximize on the benefits of scale,
McDonald’s runs 14,146 outlets in the United States and 1,450 other outlets in Canada.
Their targeting approach can be described as differentiated whereby McDonalds develop
products where different needs exist. This can be interpreted as customized where the
products are designed for a particular market. To better target their consumers, McDonalds

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employs an adaptive type of product positioning and continuously re-invents itself based on
the markets demographics. The characteristics of the target market define how McDonald’s
will customize their food items. Besides the company does not have a general manager or a
product line manager instead the marketing department is classified based on the target
groups such as the Director of Young Mums (Dudovskiy, 2016).
A good example of differentiated targeting is their entry in India. Upon venturing in India,
McDonalds had to reorganize its menu, in line with the cultural and religious interests of
Indians. It’s targeting and positioning strategy is to continually adapt to the customer's
lifestyles, their tastes, lifestyle, what it is they value, and feed their perception(Data Monitor,
2005). Globally McDonalds is known for its pork and beef burgers however, the religious and
cultural inferences forbid Indians to take some of these products. To better adapt to this new
market, McDonalds reorganized its menu to introduce fish, lamb, and chicken burgers to fit
the Indian culture(McDonalds, 2012).

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References
Data Monitor. (2005). SWOT Analysis: McDonalds Corporation SWOT Analysis. Data
Monitor, 5–9.
Desmet, P., & Hekkert, P. (2007). Framework of product experience. International Journal
of Design, 1(1), 57–66. http://doi.org/10.1162/074793602320827406
Dudovskiy, J. (2016). McDonalds Value Chain Analysis.
Dudovskiy, J. (2016, February 9). McDonalds Segmentation, Targeting and Positioning.
Retrieved from Research Methods : https://research-methodology.net/mcdonalds-
segmentation-targeting-and-positioning/
McDonalds. (2012). Why is the McDonald’s menu different in different countries? ::
McDonalds.co.uk.McKechnie, D. S., Grant, J., & Katsioloudes, M. (2008). Positions
and positioning: strategy simply stated. Business Strategy Series, 9(5), 224–230.
http://doi.org/10.1108/17515630810906729
Teece, D. J. (2010). Business models, business strategy and innovation. Long Range
Planning, 43(2-3), 172–194. http://doi.org/10.1016/j.lrp.2009.07.003