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Mcdonalds case study the 5 p s people products price place and promotion

These two icons have given customers a mental image of what to look for when they want quality food for a low price fast. These things were what that the market wanted at the time and the firm answered in spades.

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For example, its breakfast menu, salads, Chicken McNuggets, and the McLean Deluxe sandwich were all examples of how the company tried to appeal to a wider range of consumers. The use of franchising, again, provides various perspectives that, in turn, lead to innovation for products and solutions.

Many ideas for new menu items come from franchisees responding to customer demand. As consumer tastes change, menu innovation injects enthusiasm allowing the firm to explore markets previously overlooked or ignored. Filet-o-Fish, Drive-thrus, and Playlands were all products or concepts developed by franchisees.

Those with the most potential could be rolled out further, while the ineffective ideas could be left to die quickly.

  1. In diversifying its product lines, the company satisfies market demand, improves its revenues, and spreads risk in its business. The introduction of new products, which have already been researched and tested, considerably reduces the risk for the franchisee.
  2. However, the business gradually expands its product mix. Freestanding restaurants are positioned so that you are never more than a few minutes away by foot in the city or by car in the suburbs.
  3. This is also a central part of the image building process.
  4. Thus the secret lies in getting profits with different products in the different stages of the PLC. For example, customers can purchase a Happy Meal or an Extra Value Meal to optimize cost and product value.
  5. The introduction of new products, which have already been researched and tested, considerably reduces the risk for the franchisee. The keys to its future success will be maintaining its core strengths-an unwavering focus on quality and consistency-while carefully experimenting with new options.

Their main products are hamburgers, chicken sandwiches, fries, and beverages. In addition, they serve a variety of breakfast items and desserts. The introduction of new products, which have already been researched and tested, considerably reduces the risk for the franchisee.

The franchisees additionally benefit from the extensive national market research programs that assess consumer attitudes and perceptions.

McDonald’s Marketing Mix (4Ps) Analysis

What products do they want to buy and at what price? How are they performing compared to their competitors? This approach allows the firm to identify which items are likely to prove popular with consumers while ensuring that the company can deliver new products with consistent quality nationwide.

  1. A further consequence of price reduction is that competitors match prices resulting in no extra demand.
  2. Of course, the ultimate message brand is the same; the medium is what is strategically modified. What products do they want to buy and at what price?
  3. The danger of using low price as a marketing tool is that the customer may feel that quality is being compromised. At present, customers can purchase other products like chicken and fish, desserts, and breakfast meals.
  4. A literature overview and classification.
  5. International Journal of Business and Management, 4 9 , 17-24. The requirements of customers change over time and thus the product offering has to be changed accordingly.

If the product line-up gets too large, then the task of maintaining quality becomes exponentially harder. The trick is to consider how to eliminate some of the existing menu items when you introduce new ones, while making sure the staff is fully trained in how to execute these products successfully. One way to do that is by inserting a couple of new, highly promoted menu items. This would refresh the product menu and provide new, satisfying experience for dinner consumers.

Marketing Mix 4P's, 7P's and 7C's

The company has also made convenience a focus, not only through how fast it serves customers, but also in the location of its outlets. Freestanding restaurants are positioned so that you are never more than a few minutes away by foot in the city or by car in the suburbs. In this instance, the focus is purely on localization with different strategies for different countries. Pricing could not possibly be standardized across the globe without alienating many countries with poorer economies, thus defeating the initial objective.

For example, in China it was recognized that advertising on television would be a waste of money because commercials between programs are generally ignored.

Of course, the ultimate message brand is the same; the medium is what is strategically modified. Customers draw their own mental picture of what a product is worth. A product is more than a physical item, it also has psychological connotations for the customer.

The danger of using low price as a marketing tool is that the customer may feel that quality is being compromised. It is important when deciding on price to be fully aware of the brand and its integrity.

A further consequence of price reduction is that competitors match prices resulting in no extra demand.

McDonald’s and Its "Plan to Win": A Blueprint for Success

This means the profit margin has been reduced without increasing sales. For instance, the most recent roll out has been the 2004 Chicken Selects premium Breast Strips. This is also a central part of the image building process. This organization has created an image of partnership and community investment with these and other kinds of philanthropic activities. These same decisions must be made in regards to the marketing of the company as a whole.

Strategy is the name of this game. In addition to these decisions, the development of the Golden Arches or Ronald McDonald has provided consumers with memorable icons that are associated with quality, service, and value, just like the McDonald brothers and Ray Kroc intended. The keys to its future success will be maintaining its core strengths-an unwavering focus on quality and consistency-while carefully experimenting with new options.

The requirements of customers change over time and thus the product offering has to be changed accordingly. What is the fashion today may be out of market within few weeks. Thus continuous innovation is required. To counter these changes McDonalds has continuously introduced new products and has phased out the old ones which were at the decline stage of their PLC. The introduction is timed such that the new product does not cannibalize the product already in the maturity or growth stage.

Thus the secret lies in getting profits with different products in the different stages of the PLC. A perfect example of revitalizing a product in decline phase: The French Fries have been an important part of the McDonalds menu worldwide. But now it was in the stage of decline and was actually not generating proper return. In an attempt to revitalize it, a new variant was introduced namely Shake Shake Fries.

  • The use of franchising, again, provides various perspectives that, in turn, lead to innovation for products and solutions;
  • However, the business gradually expands its product mix;
  • In addition to the usual media television, radio, and newspaper , the company makes significant use of billboards and signage, sponsors sporting events ranging from Little League to the Olympic Games, and makes coolers of orange drink with their logo available for local events of all kinds.

This is being served with chatpata spice mix which has resulted in increase in the sales of French Fries and has elevated it from to the decline stage. This is used to delay the decline of a well established product which has the potential of generating further revenue. In addition to the usual media television, radio, and newspaperthe company makes significant use of billboards and signage, sponsors sporting events ranging from Little League to the Olympic Games, and makes coolers of orange drink with their logo available for local events of all kinds.

At times, it has run into trouble with its campaigns.