McDonald’s Marketing Strategy | McDonald’s Brand Power

by Shamsul
Marketing Strategy of McDonald’s
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McDonald’s Marketing Strategy

 

McDonald’s is a renowned fast-food chain and has a strong presence in 100+ countries. Its 80 percent outlets based on a contract model. With more than 36,000 stores globally, McDonald’s is capable to magnetize consumers and leading the fast-food industry. Even though they face stiff competition from their rivals that stagnant its growth, but they are still doing good. This success is due to an effective McDonald’s Marketing Strategy and understanding of changing consumer needs. They are very innovative in their offerings, taste, and supply chain network. Scroll down to find the marketing strategies of McDonald’s.

 

Marketing Strategy of McDonald’s (Segmentation, Targeting, and Positioning):

McDonald’s utilizes different segments such as psychographic, geographic, and demographic to market the products. Plus, they also understand the changing taste and needs of consumers of different nations and these marketing segments helped them a lot. The main target of McDonald’s is to identify the consumer evolving needs and requirements. This is due to the change in customer buying behavior, increase in income level, and consumption pattern. That’s why they target the customers of different regions to recognize their taste requirements. Its value-based positioning policy also helps them to evolve as a global brand. These are some major marketing strategies of McDonald’s. The main tagline of McDonald’s is ‘’I’m Lovin’ It’’. Its vision is to sell fresh and healthy products to customers with a positive attitude.

 

McDonald’s Marketing Strategy

Competitive Advantage:

The main competitive advantage that makes McDonald’s highly competitive over its rivals is supplier input process outputs customer (SIPOC). This thing helps the company to improve its service quality and taste. Its franchise-based model is also very successful and helps the company to earn more profits. Its Glo-cal policy is also proved beneficial for the success of the company. Moreover, its geographic and demographic strategy also assists the company to get the lead over its competitors. All these factors have contributed to the success of the company, that’s why it is a well-known fast-food chain across the world with a powerful consumer base.

 

McDonald’s Marketing Strategy

BCG Matrix in the Marketing Policy of McDonald’s:

Even though McDonald’s offers a huge variety of products, but its Hamburger, French Fries, and MacAloo Tikki are very famous among customers that’s why they fall in the star category. The non-menu and dessert are not so popular, that’s why it is a question mark on the strategy of McDonald’s. They are struggling to target customers in this segment so they need to improve this portfolio for better results.

 

McDonald’s Marketing Strategy

Distribution Strategy:

McDonald’s has various franchises and outlets in the world to fulfill the rising needs of the different customers and this thing helps them to compete in the competitive market. Its takeaways or drive-thru service is also very popular among users. Its McDrive feature is very popular in some countries. In order to target the young customers, they set up Macafee which is based on a café format where you can enjoy an outing with your friends. They also owned quality centers in different locations and its supply chain network is also very effective because of the involvement of third-party logistics. These companies ensure the availability of products in specific outlets and franchises so that consumers can enjoy their meals without any interruption. There are several types of set-ups that play an important role in the success of the distribution strategy practiced by McDonald’s.

 

McDonald’s Marketing Strategy

Brand Equity:

McDonald’s branding strategy is very powerful and they sponsor different popular entities such as the Olympics and FIFA. These entities helped the company to create its visibility and footprint globally. In addition, they also use different marketing channels to promote their offerings and brand that also help the company to generate revenues and profits. In 2014, McDonald’s has been mentioned in Forbes 500 companies. All these branding and marketing strategies boost the company’s image and reputation in the competitive environment.

 

McDonald’s Marketing Strategy

Competitive Analysis:

Several fast-food companies are giving severe competition. McDonald’s focused marketing policies that highlight its offerings, taste, health benefits, menu, and other nutritional advantages help the company to sustain its position and image. Thus, this kind of branding helps them to fight with competitors in terms of market reach, market share, profitability, and popularity.

 

McDonald’s Marketing Strategy

Market Analysis:

As we know that, the fast-food industry is loaded with multinational companies and local food points. These companies trying to threaten the market shares of each other and also can affect the profitability of McDonald’s. The main competitors or heavyweights in this industry are KFC, Dominos, Subway, and many more. It is really important for McDonald’s to introduce innovation in its offerings to reduce the risk of market loss.

 

McDonald’s Marketing Strategy

Customer Analysis:

McDonald’s have strong consumer base; however, its customer based on young people mostly. They love to do parties and outings in McDonald’s outlets with their family, friends, or loved ones. McDonald’s has a big opportunity to attract more young people by diversifying their portfolio. They can also target schools and college students in order to increase their revenue game.

 

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