Case Study On Marketing Mix With Solution

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McDonald’s marketing mix (4Ps) involves varied approaches that meet business concerns in different markets around the world. The marketing mix defines the strategies and tactics a firm uses to reach target customers. McDonald’s has corporate standards that its marketing mix applies globally. The company also uses some variations of its marketing mix to suit the local conditions of markets. For example, McDonald’s promotion focuses on print media in countries where such media are most popular. The company’s effectiveness in implementing its marketing mix contributes to the leading performance of the McDonald’s brand and business in the international fast food restaurant industry.

McDonald’s marketing mix facilitates effective reach to the target market. This marketing mix supports the company’s leading global industry position, as well as the strength of its brand.

McDonald’s Products (Product Mix)

McDonald’s provides mainly food and beverage products. This element of the marketing mix covers the various organizational outputs (goods and services) that a company provides to its target customers. McDonald’s product mix has the following main product lines:

  1. Hamburgers and sandwiches
  2. Chicken and fish
  3. Salads
  4. Snacks and sides
  5. Beverages
  6. Desserts and shakes
  7. Breakfast/All-day breakfast
  8. McCafé

McDonald’s is primarily known for its burgers. However, the company expands its product mix through time. At present, customers can purchase other popular products like chicken and fish, desserts, and breakfast meals. This element of McDonald’s marketing mix indicates that the firm innovates new products to attract more customers.

Place/Distribution in McDonald’s Marketing Mix

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:

  1. Restaurants
  2. Kiosks
  3. Postmates website and app
  4. McDonald’s mobile app

McDonald’s restaurants are where the company generates most of its sales revenues. Some of these restaurants also manage kiosks to sell a limited selection of products, such as desserts. Some kiosks are temporary, as in the cases of kiosks used in seasonal events and professional sports competitions. In addition, customers can place their orders through the Postmates website and mobile app. Moreover, the company’s mobile apps for iOS and Android OS let customers claim special deals and find McDonald’s restaurant locations. This element of the marketing mix supports McDonald’s intensive growth strategies, especially market penetration.

McDonald’s Promotion (Promotional Mix)

McDonald’s promotes its products to attract more customers. 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:

  1. Advertising
  2. Sales promotions
  3. Public relations
  4. Direct selling

McDonald’s advertisements are the most notable among its promotion tactics. The company uses TV, radio, print media and online media for its advertisements. McDonald’s also uses sales promotions to draw more customers to its restaurants. For example, the company offers discount coupons and freebies for certain products. In addition, McDonald’s public relations activities help promote the business to the target market. For instance, the Ronald McDonald House Charities and the McDonald’s Global Best of Green environmental program support communities while boosting the value of the corporate brand. Occasionally, the company uses direct selling, such as for corporate clientele, local government or community events and parties. In this element of its marketing mix, McDonald’s emphasizes advertising as its main approach to promote its products.

McDonald’s Prices and 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. This element of McDonald’s marketing mix highlights the importance of price bundling to encourage customers to buy more products.

References
  • Dominici, G. (2009). From marketing mix to e-marketing mix: a literature overview and classification. International Journal of Business and Management, 4(9), 17-24.
  • Goi, C. L. (2009). A review of marketing mix: 4Ps or more? International Journal of Marketing Studies1(1), 2.
  • McDonald’s Corporation (2015). Food.
  • McDonald’s Corporation (2015). Mobile App.
  • Rahmani, K., Emamisaleh, K., & Yadegari, R. (2015). Quality Function Deployment and New Product Development with a focus on Marketing Mix 4P model. Asian Journal of Research in Marketing4(2), 98-108.
  • Van Waterschoot, W., & Van den Bulte, C. (1992). The 4P classification of the marketing mix revisited. The Journal of Marketing, 83-93.
  • Yun-sheng, W. (2001). Perfection and innovation of 4P Marketing Mix – How to evaluate 4P Marketing Mix. Commercial Research5, 6.

Case Study & Case Analysis, Marketing, Marketing Mix (4Ps), McDonald's Corporation, Restaurant Industry

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Case Studies

CASE STUDY: MANAGING & ENHANCING RELATIONSHIP VALUE

Background
Unlike many other industries, the value of a financial product is often determined by what happens after the sale.

For example, when you buy coffee at Dunkin Donuts, the managers knows then and there how much they made from the sale. It's a finite transaction, with the net profit easily determined at that point in time.

But when customers purchase financial services such as a checking account, a money market account or an equity line of credit, the income achieved is based on how these clients behave over time. The balances they keep...the debit card purchases they make...the amount they draw down from their credit line...the NSF fees they pay...all these factors and many more can contribute to, or detract from, your net income.

In today's topsy-turvy economic environment, a New England-based super community bank quickly realized that in order to sustain a strong bottom line, the time had come to move from a volume-based "widget" sales culture to a philosophy that rewards its associates based on enhancing account and relationship value. They also understood that a robust, flexible valuation methodology was a key factor in determining the appropriate strategies to improve income from a range of constituencies, and to gauge success over time.

Solution
This Client chose the Profit$ee developed by The Marketing Mix because it offered a number of benefits – but the deciding factor was that the methodology not only provided what the account or relationship was worth to the organization – it also told them why.

With our approach, an income statement can be generated for each account record – showing priority revenue and expense metrics specific to that account, including funds-based income, miscellaneous fee income and transaction activity expense. Subsequently, the value of every account is accumulated to assess the value of the entire relationship.

In the sample below, you will note that more value for the Privilege Checking account (CHK-PRI) is derived from Miscellaneous Fees than the margin on balances held in that product. This should be considered if the client asks to waive a fee. And the Personal CD (PCD-PER) is just slightly under water because the margin is too slim to offset the expense – perhaps because of a preferred rate. So when this account matures, a look at the value of the entire relationship is warranted before determining a new rate – certainly before a new preferred rate is offered. (Please click on sample to enlarge)

Impactful decisions? Absolutely – especially when multiplied by the hundreds...perhaps thousands of accounts where similar issues exist.

That's just one example of an important lesson we've learned from working with dozens of clients on valuation programs – the data must be actionable. What good is it to know how much an account or household is worth to your company if the approach doesn't also offer some direction on maintaining or improving that value?

Results
Adding a comprehensive value profile to other relationship factors brought a powerful new perspective to the client management process for this organization.

Highly targeted programs have been developed that focus on:

  • Retaining the small percentage of clients who provide the bulk of the company's income
  • Profit-based expansion efforts
  • Acquiring VIP prospects who are most likely to become valuable in a very short period.
Smarter allocation of resources based on solid, client-specific value information. That's another way we help you turn data into opportunity.

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