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Marketing Analysis Using the 4p's
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Executive summary

Within the scope of this paper, the following aspects of the marketing mix of McDonalds will be analyzed: product, price, place and promotion. The core reason for choosing McDonalds is its properly developed marketing strategy and a high number of clients all over the world.

Introduction/Company Overview

The McDonald's Corporation is the biggest chain of fast food restaurants around the globe, which serves more than 70 million customers in 120 countries daily. It is essential to refer to the fact that McDonald’s is considered to be one of the best known brands in the world. Within the scope of this marketing analysis, the stages of the marketing mix will be identified. It is important to pay additional attention to the fact that the core success factor of the McDonald’s brand is listening to its customers.

The analysis will be carried out while applying the marketing mix. Such a business tool enables the researcher to determine the brands and products offered in the light of the following four factors: product, price, promotion, and place (Borden, 2013).

Product

An important issue, which is practically implemented by McDonalds, is the fact that customers of this fast food restaurant chain are provided with a varied menu. The core reason for such a trend is the fact that people always have a huge set of options how to spend their money, and this is why a fundamental task here is to place a considerable emphasis on developing the menu in accordance with the preferences of the clients. Also, the top manager of McDonalds realizes that the requirements of customers change over time.

That is why the following fast food is served by McDonalds: chicken products, breakfast items, hamburgers, cheeseburgers, desserts, French fries, soft drinks and milkshakes. Additional attention should be paid to the fact that the healthy food category (i.e., the dishes mainly consist of vegetables and fruit) has been recently launched by the company. The main reason for the occurrence of this category is a disturbing trend of rising obesity, which is usually attributed to fast food consumption. It is essential to refer to the fact that the products of McDonalds are standardized and sold under the same brand in order to meet the needs of the target market all over the world. There are different types of McDonalds’ burgers, such as the Quarter Pounder, the Big Mac, the Double Cheeseburger, the Hamburger, the Angus Third Pounders, the Big N’Tasty and the Cheddar MacMelt (McDonalds official web site, 2013).

The Quarter and the Big Mac have been the major burgers, which had been offered in McDonalds before other types were introduced. The core reason for introducing new types of burgers has been the market taste. The weight of burgers ranges between 45 and 113 grams, and some types of burgers, for example, the Cheddar McMelt, are available only in some countries.

Price

One of the most important determinants of the price is customers’ perception of products’ value because a mental picture of what a product is worth is drawn by customers. It is possible to consider that as the most important component of the marketing mix from the economical point of view because the revenue for an organization is created only by this “P” of the marketing mix.

It is possible to define the value of McDonalds’ products in the following way: when a customer comes to McDonalds in India, for example, they always want the value of the purchased product. Low prices have been kept by McDonalds in India in order to capture their target audience. Also, the prices may be affected by McDonalds in this country- when a client feels that the quality is being compromised. The core reason for such a trend is the fact that currently, the global image of McDonalds is strong and that is why the higher prices are charged by this company as new products are presented for the market share increasing. Currently, Indian consumers are able to spend Rs 50-100 for a one time meal in McDonalds, and the most common prices here are the following: McMaharaja ~Rs50 ($ 1); McVeggie ~Rs30 (70 cents); Happy Meal ~Rs50-60 (~$1); a Soft Drink ~ Rs20; Combos from Rs30-70; Large Fries ~ Rs40 (McDonalds official web site, 2013). It is essential to put an emphasis on the fact that McDonalds calculates their prices in accordance with the demand-supply equation.

Promotion

The entire set of the marketing communications is covered by the promotion as an integrative part of the marketing mix. The following methods are applied in McDonalds:

· advertising through radio, online, TV, cinema, mass media (magazines and newspapers) and via poster sites;

· point of sale display;

· sales promotions;

· merchandising.

The core purpose of effective promotion of McDonalds is developing campaigns that integrate the above listed methods, for instance, consumers become aware of a new product offered by McDonalds via TV and press advertising and the store promotions support this issue.

It is obvious that the main purpose of the consistent message is understanding by the clients the core issues represented by the brand. An effective communication scheme applied in McDonalds can be represented as on the figure 1:

Figure 1. Effective communication.

It is possible to state a fact that the core purpose of the marketing communication applied in McDonalds implies moving to the target market to some actions, such as purchasing the products while visiting the restaurant, increasing the menu items purchasing or recommending to a friend, concerning a visit to McDonalds (Shimizu, 2009).

That is why it is possible to make a conclusion that the main purpose of the advertising is making people aware of some product and remember the positive features of this product. There is a direct interrelation between the awareness of McDonalds about people who are served in this chain of fast food restaurants and the effectiveness of communicative messages, which are developed by the top management of McDonalds for appealing the target audience. That is why the messages are to gain the attention of the customers and to keep their interest. The last stage of promotion is getting the potential clients to want the product that is advertised (offered).

Place

The last component of the marketing mix is the place. The importance of the growth in the international markets is the core component of the McDonalds’ strategy. The entire set of the outlets have great interior and many metro cities have been reached by McDonalds, but at the same time, there is a significant number of untapped regional markets, for instance, in the eastern part of India. That is why there is a need of concentration on the new stores’ opening in the smaller cities. Also, new features should be added, for instance, couches, Wi-Fi Internet (if not added yet) and television screens in the outlets.

Conclusion

While carrying out the analysis of McDonald marketing strategy in terms of the marketing mix, it is possible to state a fact that its global strategy is properly developed in terms of products’ price, promotion and the place where it is available, because customers all over the world are offered a rich menu, where it is possible to find a high-quality dish, which can satisfy the needs of exacting customer.

Further Suggestions

My further suggestion is to develop new dishes and more healthy meals demanded by the market.