McDonald's Marketing Strategy - Coggle Diagram
McDonald's Marketing Strategy
Market-oriented - Seasonal launches (eg. Ebi Summer Burger)
Varied Customer profile so doesn’t have to appeal to a target market
Mainly low-income individuals
McDonald's invests heavily in billboard and broadcast marketing, utilising a mammoth advertising budget of over $1.5bn in the US alone in 2018.
Digital marketing campaigns work to complement its offline promotional messaging, bringing consistent content to varied audiences not expected to be reached by outdoor, TV and radio advertisements.
Food and Beverage products + Constantly updated menu
Time-based breakfast, lunch, dinner menu
Location-based targeted products
Burgers + Affordability make up its USP
In terms of risk, a more diverse product mix reduces the company’s dependence on just one or a few market segments.
Distinctive Yellow M branding
Several methods for increased accessibility for customers
Majority of revenue comes from restaurants
Also uses Kiosks, McDonald's mobile apps & website/app
24/7 - Distribution channels are facilitated
110+ countries and 36,000 Restaurants with varied kiosks like Mc Cafe, McDrive, McExpress, McDonalds
Increasing demand for E-commerce - tied up with several homoe-delivery businesses
Price Bundling + Promotional pricing
As part of the promotional pricing strategy, McDonalds offer discounts or bundling on certain products and combination of different menu items as packed together.
Psychological pricing strategy
in psychological pricing, the company uses prices that appear significantly more affordable, such as $__.99 instead of rounding it off to the nearest dollar.
For example, customers can purchase a Happy Meal or an Extra Value Meal to optimize cost and product value.
Billboard marketing + Guerilla marketing on highways
The corporation uses TV, radio, print media and online media for its advertisements.
Public Relations - Collaborating with other popular brands + actors
eg. BTS, Lego Happy Meals, Star wars themed toys + meal
Occasionally, the company uses direct marketing, such as for corporate clientele, local governments, or community events and parties.
Market leader in USA, with 21% overall
Highest ranked restaurant company by sales, ahead of Yum! and Darden Restaurants Inc
McDonald's are growing, however this is at a slower rate than some of their major competitors (eg. Starbucks)
Competing in 122 markets
Tend to market towards
The company is working to improve the customer experience and provide more personalized service.
A rewards program will increase customer loyalty and repeat sales, along with providing the company with a direct communication channel with customers.
Financial Encouragement: Each month, all employees in the top 10% of restaurants, receive a bonus of 50p for each hour they have worked in a two-week period.
Non-financial encouragement: Invested 40bn$ into training and development opportunities
Social Policy: Since 2012, McDonald’s has started using high-efficiency LED lighting in phases across its operations.
Other initiatives include: Business for Purpose, Family friendly restaurants, Kidathon + McKids crew program, Ronald McDonald house and Volunteer work with local charities as a aprt of the CSR initiative