ipl-logo

Marketing Strategy Of Mcdonald's Pricing Strategy

1096 Words5 Pages

Pricing Strategy
McDonald’s pricing strategy involves price bundling combined with psychological pricing. In price bundling, the company offers meals and other product bundles for a discount.
In psychological pricing, McDonald’s uses prices that appear to be significantly more affordable, such as $__.99 instead of rounding it off to the nearest dollar. (MEYER, McDonald’s Marketing Mix (4Ps) Analysis, 2015)

Distribution plan
McDonald’s restaurants are the most prominent places where the company’s products are distributed. This element of the marketing mix indicates the venues or locations where the firm’s products are offered. McDonald’s main places for distributing its products are as follows:
• Restaurants
• Kiosks
• Website …show more content…

This element of the marketing mix defines the approaches used to communicate with the customers. McDonald’s uses the following tactics in its promotional mix:
• Advertising
• Sales promotions
• Public relations
• Direct selling

Advertisement
McDonald’s advertisements are the most notable among its promotion tactics. The company uses TV, radio, print media and online media for its advertisements. (MEYER, McDonald’s Marketing Mix (4Ps) Analysis, 2015)
Sale promotion
McDonald’s also uses sales promotions to draw more customers to its restaurants. For example, company gives toys to kids on happy meals, the company offers discount coupons and freebies for certain products. (MEYER, McDonald’s Marketing Mix (4Ps) Analysis, 2015)
Public relation
McDonald’s do public relations activities help promote the business in target market. For instance, the Ronald McDonald House Charities and the McDonald’s Global Best of Green environmental program support communities along with boosting the goodwill of the brand. (MEYER, McDonald’s Marketing Mix (4Ps) Analysis, 2015)

Direct …show more content…

This is especially so because of the lack of regional or global alliances among suppliers.
• Low forward vertical integration (weak force) In relation, most of McDonald’s suppliers are not vertically integrated. This means that they do not control the distribution network linked to McDonald’s facilities.
• High overall supply (weak force) The relative abundance of materials like flour and meat reduces suppliers’ influence on McDonald’s.
There is no need to anything about it (GREGORY, 2015)
Reason behind threat of substitutes or substitution being a strong threat
• High substitute availability (strong force)
There are many substitutes to McDonald’s products, such as products from artisanal food producers and local bakeries. Consumers can also cook their food at home.
• Low switching costs (strong force)
It is also easy to shift from McDonald’s to these substitutes (low switching costs).
• High performance-to-cost ratio (strong force)
These substitutes are competitive in terms of quality and consumer satisfaction.
In order to face this threat McDonalds should do product quality improvement. (GREGORY, 2015)
Reason behind threat of new entrants being a moderate threat
• Low switching costs (strong

Show More
Related

Macmillan's Structure And Organisational Structure Of Macmillan

952 Words | 4 Pages

Also, the organisational structure communicate to the customers for example charities like Macmillan use social media to express adverts and to expose their message to the general public .this helps create a cross platform campaign. They also use advertising on TV and the internet to gain attraction with their adverts that create acknowledgement and interest in the charities

Read More

Case Study: Coles Supermarket Australia Pty Ltd.

1328 Words | 6 Pages

Bargaining Power of Buyers The level of bargaining power of buyers is moderate because one of the reason is Coles does not have much competitors to compete with. Their Consumers can switch brand easily because they are very sensitive to price and will compare and choose the cheapest alternative. However, the Federal Government and ACCC has set a restriction to lower down the competition barriers to allow new competitors to enter the market which will widen consumers choice and lead to increase of bargaining power of buyer level to high. Threat of Substitutes The level of threat of substitutes is high, this means that Coles has a lot of indirect competitors such as farmers’ markets, specialist grocery stores and convenience stores. These indirect competitors posed a serious threat to Coles.

Read More

Argumentative Essay On Food Inc

802 Words | 4 Pages

The factory style restaurants had positive and negative sides. The positives were fast, good-tasting food. However, the negatives were much more prevalent. McDonalds became a chain restaurant that appeared all over the United States. The owners wanted their food to taste the same at all locations.

Read More

A Rhetorical Analysis Of Mcdonalds

983 Words | 4 Pages

As a community it’s our duty to understand how global market corporation use advertisement to sell. In the first place, I looked for an interesting admeasurement in the internet. Out of nowhere I decide to choose McDonald website because they have a lot of views from consumers. McDonald website focus in logos to transmit their advertisement on facts, percentages and a lot of words and information.

Read More

Similarities Between Mcdonalds And Wendys

537 Words | 3 Pages

Cost is an important part of fast-food experiences, and how much a person has to pay can determine which restaurant to visit. McDonald’s has low prices compared to other restaurants. McDonald’s signature item, the Big Mac, is only four dollars. This price is a good deal when compared to other restaurants. They also have a “Dollar Menu” with many different meals such as cheeseburgers, salads, and chicken sandwiches.

Read More

Marketing Strategy: Trader Joe's Business Strategy

1120 Words | 5 Pages

For the business-level, Trader Joe’s adopted a differentiation focus strategy. According to our textbook with this strategy, Trader Joe’s seeks to differentiate in its target market. They rely on providing better service than broad-based competitors. Specifically, they focus on the special needs of the buyer in other segments (Dess, Page 159). Joe’s differentiates its self from other grocers by providing a unique shopping experience fortified with their private label goods and great service from their crew members.

Read More

Mcdonaldization In The Workplace

961 Words | 4 Pages

As people have issues about Mcdonalds’ low food quality toward people’s health. However, there is another important area that we have to consider seriously about is how its system, so-called “Mcdonaldization”has influenced and continuously effecting our society. From the article “McJobs: Mcdonaldization and the Workplace” by George Ritzer, he distributes the idea of how Mcdonaldized system has changed our society into scripted and “programmized” places (Ritzer 1998:140). He has specifically analyzed the McJobs’( job that has been Mcdonaldized) into four elements,which is its efficiency, calculation, prediction and control. As the nature of the world is made of a full of colors, diverse opinions of people naturally exist toward the term

Read More

Why Has Loblaw's Strategy Been Successful?

790 Words | 4 Pages

The price of raw materials is high with low consumer switching cost. However, the increasing demand for healthy and organic food is creating openings for smaller competitors to enter and hide from the pricing

Read More

Porter's Five Forces Of Tesco

1680 Words | 7 Pages

In order to analyse what extent Tesco U.K’s performance is attributa-ble towards industry characteristics, Porter’s five forces are broken up into competition, potential of new entrants, power of suppliers, power of customers and the threat of sub-stitute products. Below is an image of Porters 5-forces in relation to the U.K supermarket industry. 1. Rivalry amongst competitors The intensive rivalry in the U.K’s grocery sector is remarkably high.

Read More

Strategic Management Case Study: Mcdonald's Corporation

3370 Words | 14 Pages

STRATEGIC MANAGEMENT CASE STUDY: MCDONALD’S CORPORATION 1. INTRODUCTION McDonald’s Corporation is the world’s leading fast food restaurant chain with more than 34,000 local restaurants serving approximately 69 million people in 119 countries each day. More than 80% of McDonald’s restaurants worldwide are owned and operated by independent local franchisees. Its revenues come from the rent, royalties, and fees paid by the franchisees, as well as sales in company-operated restaurants (McDonald’s, n.d.).

Read More

Pestle Analysis Of Mcdonald's

905 Words | 4 Pages

However, public health policies increasingly discouraged consumers from eating fast food such as from McDonald’s, with links to high cholesterol and obesity problems as seen from its country-of-origin, the US. Nonetheless, this threat can be an opportunity for McDonald’s to improve the healthfulness of its food and tap on the huge potential market. Economic changes around the world affect McDonald’s industry and environment given its transnational nature. McDonald’s largest market, the American economy, experienced stable but slow

Read More

Microwave Oven Case Study

1201 Words | 5 Pages

D) Marketing Plan (4Ps) Marketing Mix (4Ps) • Product – Divide product into three categories for different market o High-end function, design, and price – to target high-end group. The function will feature the highest potential such as child protection lock, built-in coffee and toaster maker, rotisserie, new technology

Read More

Mcdonald's Market Segmentation

1402 Words | 6 Pages

The age factor used by the target market of McDonalds is a family with dual income that does not have the time to prepare their food for their children, the workers who are having lunch and teens. Besides that, according to Schroder and McEachern (2005), global target market fast-food industry account for 79 percent is at age 17-25. The income factor used by McDonald target customers are upper-middle and lower income consumers. The Mac value offered by McDonalds will attract lower class customers to upper-middle customers. McDonald 's lunch meal RM5.95 has improved the product as it is attractive to upper-middle and even lower customers.

Read More

Marketing: Marketing Mix In The Ice Cream Industry

1497 Words | 6 Pages

6.1 Marketing Mix Marketing mix is a set of controllable marketing tactics used by business to promote their product and achieve its marketing objectives. (L. Lake, 15 June 2017) Marketing mix is also called the 4Ps which consist of Promotion, Place, Product and Price. (M. J. Baker, 2001, p.54) 6.1.1 Product

Read More

Kfc Pricing Strategy

748 Words | 3 Pages

With this strategy, it gives customer the awareness and urge to buy in view of their low pricing as compared to other competitors. For example, KFC Zinger Double Down set priced at RM 9.95 with includes two pieces of meat while McDonald Spicy Mc Deluxe Burger set at RM 9.45 with includes only one piece

Read More

More about Marketing Strategy Of Mcdonald's Pricing Strategy

Related Topics

Open Document