The revolutionary idea of a fast-food chain was first introduced and implemented in McDonald’s. The founder brothers knew that they had to do something different and productive, so they did – a burger in 30 seconds from 20 minutes!
Now, all this was thought and done back in the 1950s. But how come you, I, our previous and next-generation, are still so familiar with the magic of McDonald’s?
How, after 70 years and running, McDonald’s remains our happy meal choice? The answer is in the magical marketing strategy and marketing mix (4Ps) of McDonald’s.
Marketing Mix & Strategy of McDonald’s
1st P: Product – Continuous Innovation
“Change is the only constant” could not be used more aptly than in McDonald’s product and brand innovation over the years. Product innovation is important in McDonald’s marketing strategy as it has helped the brand remain competitive by swearing to QSCV – quality, service, cleanliness, and value. The fastest-growing food chain has something for all. It has remained consistent with positioning itself as a happy place to be with friends and family.
Adapting to customer demands – so that they keep saying I am Lovin It!
- It introduced happy meals with a much-beloved icon Ronald McDonald.
- In 1993 it started McCafé to give a throat competition to Starbucks and other premium coffee brands.
- In the early 2000s, McDonald’s realized that people are getting more health cautious. So, it started adding more salads and chicken items to its menu. Even now, you can check the calorie count for each item in its mobile app.
- McDonald’s started its all-day breakfast to capture more morning business
- Partnering with third-party suppliers to have a greater reach. You can order McDonald’s from its mobile app; Uber Eats, Zomato, Swiggy, you name it, McDonald’s has it.
2nd P: Place
Understanding the cultural diversity, limitations, and adaptiveness has helped McDonald’s operate these many outlets globally.
You will find a few similar items across the globe on the menu and a few locally adapted in any part of the world. So, even if you are craving for a portion of familiar home-like tasting food, you have McDonald’s for it, or if you want to taste something exotic, you have McDonald’s for it.
Not just that, do you know that if you go to Canada, you will find lobster sandwiches on the menu, and if you have cravings for Mc Aloo Tikki, India is the only place in the world to grab a bite of it! Similarly, in Germany, you can have a beer with your food, and in Japan, you can have Green Tea ice cream (now how cool is that!)
3rd P: McDonald’s Promotion Strategy
McDonald’s has stayed in the market for more than 70 years now; it has used different tactics and promotion strategies throughout the years to make a lasting impact on its customers.
Celebrity Collaboration: This has been an important aspect of the marketing strategy of McDonald’s. McDonald’s first celebrity collaboration was back in 1992 with Michael Jordan, in which it launched “McJordan,” undoubtedly was a huge success.
In September 2020, the burger chain collaborated with Travis Scott, and McDonald’s launched a limited offer meal and some Cactus Jack merchandise. The food was a hot success and it’s safe to assume that the merchandise was similarly well-received.
It doesn’t end here, recently McDonald’s partnered with the BTS, and the ARMY of this widely famous band went gaga over it. In addition to the food, the themed merchandise included everything from clothes to laptop slips to keychains!
4th P: McDonald’s Pricing Strategy
Pricing is an important aspect of McDonald’s marketing strategy & mix. McDonald’s follows a mix of a couple of pricing strategies: low-cost pricing strategy and bunding pricing strategy. The basic idea is to “think globally and act locally”.
Low Cost pricing strategy: In this pricing strategy, a company offers a low price to stimulate demand and capture additional market share. This strategy is particularly useful when the product does not have a competitive advantage and economies of scale can benefit the organization in terms of increased profitability.
Bundle pricing strategy: When two or more products are combined and are sold as a single comprehensive package for a reduced price than the individual prices combined then it’s called a bundle pricing strategy.