Discuss about the Marketing Services of Mc Donald.
The report represents the marketing strategy of Mc Donald, which includes several important points. The report systematically answers or analyzes the services and the working system of Mc Donald. It also brings into focus the market response and the position of the fast food chain, Mc Donalds in the world market. The report also presents some theories in connection with the analysis of the marketing service of Mc Donald. Mc Donalds in one of the famous fast food chains in the world that was built in the year, 1940 by two brothers, Dick and Mac (Thornton et al. 2016).
Mc Donald’s Servicing Strategy:
The services that Mc Donald provides consist of selling of burgers and some other fast foods in their various chains of restaurants all over the world. The company also provides people the facility of home delivery of foods and also rents out their restaurant spaces for any occasions or parties. These are quite effective servicing strategies and as per the theory of restaurant serving strategy, these points play an important role in gaining customers and improving a company's market value (Dabholkar 2015). The company has a wide range of products to choose from, such as grilled burgers, sandwiches, meal packages, French fries, ice creams and so on. Each Mc Donald product is prepared to meet the requirement of the people. The success of Mc Donald is dependent on the servicing strategy of the organization and the strategies include several important points. The pricing of the food products also is an important aspect of the company’s servicing strategy. People generally want to have good foods at a reasonable rate and therefore the company has initiated the strategy of “happy meals” and complimentary foods. Some examples can be cited to illustrate the servicing strategy of the company. When the company opened its branch for the first time in France, the fast food chain was not much favored by the French people. However, with the sophisticated presentation of the restaurants and inclusion of fine food products in the menu helped Mc Donald to prosper its business in France. The service delivery and systems of Mc Donald also bring in the marketing mix policies of Mc Donald, which help the company to have a sustainable growth (Kaplan and Atkinson 2015). A further discussion of the marketing mix policies of the company can be discussed to bring in focus the effectiveness of the service delivery and systems of Mc Donald.
Marketing Mix Policies of Mc Donald:
The marketing mix policies of Mc Donald include the 4 Ps of marketing which can be discussed further. The 4 Ps of marketing include product, place, price and promotion.
The product of Mc Donald, which are burgers, sandwiches, beverages, meals, desserts, snakes and so on. Mc Donald is mainly known for their burgers, however, the formulation of the food items help the company to attract a huge number of customers. The meal packages of Mc Donald have helped the company to generate more customers (Thornton et al. 2016).
A place is an important factor for a restaurant or a food shop to grow and prosper. However, Mc Donald has its branches all over the world and it mainly targets the urban areas for opening their shops. Apart from physical locations, the restaurant serves its products through different online apps as well. Mc Donald shops in malls, office complex are quite popular since it attracts more customers.
Price is also one of the most vital factors that decide the growth of a company and also talks about the company’s system of working and their servicing strategy. The company follows the price bundling strategy that is about selling a number of products together at an affordable rate. The price bundling helps the customer to get more food items at an affordable rate and thereby the sale of the company increases. This pricing strategy of the company is quite effective in building a good position for them in the market.
Promotion of a product in today’s time is utmost important to increase the brand value and sale of a company. The effectiveness of Mc Donald's promotional strategy can be observed through their various advertisements, hoardings and so on. However, the eye-catching interior designing of the restaurants also serves to the promotion of the brand and attracts more customers. All these four Ps of marketing mix policies of Mc Donald come under the service delivery system of the company.
Peak and Off-Peak Times of Mc Donald:
At the time of 1974 with the establishment of the fast food chain in U.K, there was a considerable growth in the profit level of the company. In recent time, the company has the highest market share, which is about 39.6% as compared to the other fast food chains like KFC, Subway, and others (Thornton et al. 2016). However, with the increasing competition in the market, the company decided to focus on the theory of "lean" production, which refers towards the reduced or lowered cost of products for increasing profit (Koukoulaki 2014). However, the off-peak time of Mc Donald can be observed particularly in the Asian market where the sale of the Mc Donald products has decreased incredibly.
The Target Markets of Mc Donald:
With the help of different methods like Vals and Roy Morgan, the primary and the secondary target markets of the restaurant can be analyzed. The Vals method is based on the values and lifestyle of the people and accordingly classifies or segments people in different groups. This method identifies the urban families to be the primary target of Mc Donald and the secondary target being the young generation or the youths and children. However, the Roy Morgan research methodology very accurately distinguishes the target market with an analytical and clear approach towards the matter (Kaplan and Atkinson 2015). Questions are asked to know the taste, preferences, and likings of people to understand the potential consumers. However, the company holds quite a good marketing position and to keep up with the competition has to hold on to their good services.
Vals Method in Details to Decide the Target Market of Mc Donald:
The Vals method can be used to systematically chalk out the primary and secondary target market of Mc Donald. Vals methodology is an authentic methodology that is used by many reputed companies or organizations to decide or evaluate their target market. The method is based on the values and lifestyle of the people. The success of Mc Donald can be understood through the response of the customers towards the brand. The main or the primary customers of Mc Donald are the urban families residing in cities and towns whereas the secondary customers are the children and even youths (Dabholkar 2015). However, the lifestyle of the city people can be linked with their preference of eating fast foods. City people, often go for outings, movies and so on and thereby eating Mc Donald products is quite normal for them. The values of the people which is all about the attitudes, the behaviors and the beliefs of the people also decide their buying process. Mc Donald is unable to do a good business in places where eating meat is not vogue and therefore they have come up with more options of vegetarian foods in their menu. However, with the interpretation of the Vals methodology that decide the target market of the company, an insight about the company’s market position can also be understood.
In addition to the Vals method, the geographic is also useful to determine the target market of Mc Donald. The geographic factor is all about location and it decides whether a company will be successful in carrying their operations in a particular place. Thereby, it can be seen that Mc Donald mainly have their branches in cities, town and in urban areas.
Market Position of Mc Donald:
Mc Donald is one of the famous fast food chains in the world and has earned a huge revenue over the past few years. The company mainly work on the principle of "three-legged stool" and the three legs of the company are the employees, the suppliers, and the owners. However, research show that fast food chain has near about 31000 shops all over the world and the profit margin of the company is ever growing (Koukoulaki 2014). However, during the nineties, the restaurant earned a huge amount of profit and outshined the other competitors. The restaurant created a lot of hype among people of all ages. The excellent packaging of the food products and the servicing of them in Mc Donald restaurants helps the company in retaining their good market position.
The report, therefore, brings into focus the target groups, the marketing strategies, and principles of Mc Donald. Mc Donald is one of the oldest fast food chains in the world and has seen some ups and downs over the years in their business of selling burgers. However, the report represents a greater insight into the marketing and servicing policy of Mc Donald.
Dabholkar, P.A., 2015. How to improve perceived service quality by increasing customer participation. In Proceedings of the 1990 Academy of Marketing Science (AMS) Annual Conference (pp. 483-487). Springer International Publishing.
Kaplan, R.S. and Atkinson, A.A., 2015. Advanced management accounting. PHI Learning.
Koukoulaki, T., 2014. The impact of lean production on musculoskeletal and psychosocial risks: An examination of sociotechnical trends over 20 years. Applied Ergonomics, 45(2), pp.198-212..
Thornton, L.E., Ball, K., Lamb, K.E., McCann, J., Parker, K. and Crawford, D.A., 2016. The impact of a new McDonald's restaurant on eating behaviours and perceptions of local residents: A natural experiment using repeated cross-sectional data. Health & place, 39, pp.86-91.