McDonald’s and The 4 Ps
“Welcome to McDonald’s May I take your order?” This is a very kind saying that might sound familiar to a lot of consumers, who go to fast food restaurants frequently. The reason why people keep going back to McDonalds week after week is because of McDonalds advertising and marketing. McDonald has a reputation that was built on more than just food; it is a place for families to get together. Well over 9500 restaurants in almost 45 countries is the strength of McDonalds.
No other single brand name has ever matched McDonalds marketing strategy.McDonalds spends more than $800 million dollars annually on their marketing and promotion. McDonalds started a big advertising campaign back in the year 1987 that aimed to change the misunderstanding that their food was junk food. This marketing strategy didn???t stand the test of time because the news people started to pen pieces that claimed the food in McDonalds was not good for you. People do not come to McDonalds for food that is good for them. From then on McDonalds began to provide their consumers with a nourishment card with facts about their food instead of attempting to convince the public that their food was good for them.
McDonald???s Main Line of BusinessMcDonalds??? main line of business is actually real estate. McDonalds??? goes around buying up prime real estate in order to build more McDonald???s restaurants. As a result McDonald???s is the single biggest real estate owner in the world. When McDonald???s first started out a man by the name of Ray Kroc had an idea to serve hamburgers, buns, French fries and drinks that tasted the same in Alaska as they did in Alabama (Siddiqui, 2011).
Four Countries that McDonald???s Operates inMcDonald???s has 34,000 restaurants in 118 countries and territories around the globe. They serve over 69 million consumers every day around the world. In the UK they run 1,200 restaurants and they serve more than 3.8 million consumers every day (McDonald???s in the U.K, 2013).
In Russia the Pushkin Square McDonald???s is the world???s busiest McDonald???s restaurant. They serve over 20,000 consumers every day. As the fast food market in Russia is rapidly expanding, McDonald???s is attempting to augment their presence all over Russia (Business Today, 2013). The fast food wars in China are ever present in a country where Colonel Saunders is more popular than mayonnaise. This means that McDonald???s has some serious competition to deal with.
That is the reason that over the next four years McDonald???s is hoping to open a new restaurant every day in China. As a matter of fact they were hoping to add 700 more establishments by this year and they already had 1,300 (The Huffington Post, 2013).The McDonald???s in Pakistan is part of the Lackson Group of Companies. This is a leading business house in Pakistan. McDonald???s very first restaurant in Pakistan was opened back in September of 1998 in a place called Lahore.
Then a place called Karachi opened a McDonald???s a week later. Ever since McDonald???s opened their doors in Pakistan they have been proud to provide their customers with great tasting food, along with outstanding value and great service that is synonymous with the symbol of McDonald???s golden arches all over the globe. There are 27 restaurants in eight major cities in Pakistan (McDonald???s Pakistan, 2013).The 4 Ps.ProductThe McDonalds??? products, services and programs include both tangible and intangible elements. The tangible elements are the things that the customer can actually see, touch feel, taste, or smell.
The intangible things are things like the image of the offering and this includes the images of the McDonald???s corporation which are the ones making the offerings to their consumers, along with the Physiological parts of pricing (What Makes McDonalds, 2012).Price-The price is what the consumer pays. It includes direct and indirect costs as well as opportunity costs. The benefits of the product for the consumers have to be big enough to make the product worth the price.
Price includes all costs that are connected with the product, service or program.Place- The place is where the customer receives the product, service or program. The place of delivery, including all of its resources, is part of what the customer buys (What Makes McDonalds, 2012). A place that meets the customer???s needs and wants better might be worth more. The place might be in a mall a gas station or a shopping center.
The company has had to determine how much their targeted market is willing to pay for their pleasant eating environment (What Makes McDonalds, 2012).Promotion- Promotion has to do with all of the kinds of communication that McDonald???s utilizes in order to convey the benefits to their customers about what they are offering to them. McDonald???s goal has been to convince their customers to see the value in their product and that their product is specially designed to meet or exceed their needs and wants. The phrase promotional mix is usually utilized in order to refer to the types of communication that are available.
Advertising, public relations, personal selling, publicity and sales promotion. McDonald???s utilizes direct marketing, and word of mouth though seldom talked about it is a powerful marketing tool (What makes McDonalds, 2012).The Differences of Marketing from One Country to Another.Marketing is not about providing products or services it is pretty much about providing changing benefits according to the changing needs and demands of the consumer. For example; the vegetarian burger menu consists of the MC Aloo Tikki Burger. This is a burger that consists of potatoes, peas spices, tomatoes and onions.
This burger is made in India. McDonald???s conducted a study about the Indian way of life, their values system and their influence when it comes to the food that they consume (Mourdoukoutas, 2012).McDonalds??? found out that even though a bigger part of the people there are not vegetarian, that they still mainly consumed fish, mutton and chicken. McDonald???s learned that people of the Muslim faith were willing to consume beef but that they refused to consume pork. This is because their faith teaches them that pork is not clean.
McDonald???s also learned that people of the Hindu faith didn???t have a preference for pork or beef. As a result McDonald???s decided for the first time not to advertise pork or beef burgers on their menu. Two years back they also stopped making mutton burgers (Mourdoukoutas, 2012).In conclusion; Since 1955 McDonald???s has been proud to serve the world some of its favorite foods. Along the way they have managed not just to live history but to create it: From drive through restaurants to Chicken Mc Nuggets to college credits from Hamburger U and much more.
It???s been quite the journey, and they have promised that this is only the beginning.Referenceshttp://www.huffingtonpost.com/2011/07/29/mcdonalds-china-new-stores_n_913071.htmlhttp://www.mcdonalds.co.uk/ukhome/Ourworld/Environment.htmlhttp://www.Forbes.com/sites/panosmourdoukoutas/2012/04/20/mcdonalds-winning-strategy-at-home-and-abroad