The Marketing Mix at McDonalds
McDonalds is part of the British way of life but in fact the famous red-fronted restaurants have only been with us
for the last 25 years. The first restaurant opened in Woolwich in 1974. By 1977 there were 10 restaurants,
rising to 200 in 1985 and 738 in 1996. The thousandth McDonald’s opened its doors in the UK in 1999.
Globally, McDonald’s operates 23,000 outlets in 109 countries with over 38 million people in the world eating at
McDonald’s each day.
In its vision statement, McDonald’s summarises its mission in these five global strategies:
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Develop our people at every level of the organisation, beginning in our restaurants.
Foster innovation in our menu, facilities, marketing operations and technology.
Expand our global mindset by sharing best practices and leveraging our best people resources around
the world.
Long term, reinvent the category in which we compete and develop other business and growth
opportunities.
Continue the successful implementation of changes underway in McDonald’s USA.
McDonald’s marketing mix is as follows.
Product
McDonald’s product characteristics have been firmly embedded in their customers’ minds through the extensive
use of standardisation throughout its operations. Staff training, food and drink products, packaging and the
design and decoration of restaurants are consistent in all of their outlets.
Research carried out by Interbrand found that the McDonald’s brand was recognised by more people throughout
the world than any other brand, including Cocoa-Cola’s. The brand image has consistently been one of fast
service, cleanliness, value for money and a fun experience for all the family.
The introduction of the McDonald’s product to the UK aimed at the family market by offering catering as a leisure
experience. While it still generates considerable revenue from this market, McDonald’s has continuously
developed new products to meet changing customer needs. Trends in healthy eating and the growing popularity
of vegetarianism have led to the introduction of fish and bean burgers. More recently, ethnic influences have led
to the development of Indian-style products. Targeting children, with the view that they are tomorrow’s adult
customers, has also been a prime objective, with the development of the hugely successful Happy Meals
offering food, a soft drink and a free toy.
Place
McDonald’s restaurants seem to be located on every high street throughout the UK. The company has also
developed outlets at airports, on ferries, at football grounds and even in hospitals.
Price
Price determination at McDonald’s has always been governed by the desire to reinforce a brand image of good
value for money. Frequent special offers are made, such as the very successful ‘two for the price of one Big
Mac’ offer in 1999; so successful, in that, that when customer demand for Big Macs increased by 800 per cent it
ran out of burgers and had to place apologies in the national press!
Promotion
A strong promotional strategy has always been one of the keys to McDonald’s success. In 1974 the original
advertising slogan promised ‘There’s a difference at McDonald’s you’ll enjoy’ and was aimed at persuading
potential customers that the company was offering a new and fun product. In 1998 the company spent £44
million on advertising campaigns compared to the £15.6 million spent by their competitor Burger King.
Much of McDonald’s promotion comprises advertising on television and in national newspapers and is designed
to reflect the humorous side of the British way of life, with McDonald’s at its centre. McDonald’s also uses
promotional tie-ins extensively, particularly when targeting the children’s market. In 1996 the company reached
a ten-year agreement with Disney for the exclusive rights to merchandise based on new Disney films such as A
bug’s Life and Pocahontas. Point-of-sale displays and posters are also used at outlet so entice hungry passersby.
McDonald’s undertakes a great deal of sponsorship, particularly sporting events such as NASCAR racing and
the France ’98 World Cup.
McDonald’s has 75 per cent of the UK hamburger market. Its nearest competitor is Burger King with just 15 per
cent of the market.