1 Running Head: MARKETING MIX

Marketing Mix Amanda Mohler BIS219 Arthur Lyons February 13, 2012

2 Running Head: MARKETING MIX McDonalds Corporation: Marketing Mix Similar to a fine recipe and its ingredients, a marketing mix recipe includes four ingredients, product, price, place, and promotion (4 P's), (Kotler & Keller, 2006). Marketing strategies are developed through a method of detailed research, which will supply the vehicle for determining the accurate product/service, proper pricing structures with successful placement and promotion for launching the appropriate position in the marketplace for accomplishing optimal return on investment (ROI). The recipe for success has served McDonalds restaurants well since its inception, 1955, as a lone hamburger stand in Des Plaines, Illinois; further, founder Ray Kroc created McDonalds Corporation, with the specific purpose for expanding the business by franchising; McDonalds represents one of the most valuable brand names in the world (Rowley, 2004). Each new universal franchise featured consistent brand product values in show with varied cultural fare, owned, manned, and supplied by local communities. In a statement from1958, which still heads the corporate authority page Ray Kroc advanced The basis for our entire business is that we are ethical, truthful and dependable (McDonalds.com, 2009) Product Life in the 1950s was simple compared to todayno personal computers, no Internet, no cell phones, no jet airplanes, no health or wellness consciousnessthat worked well to the early accomplishment of McDonalds simple product line of burgers, fries, and milk shakes. McDonalds supplied a value-based option for convenience dining, as families grew in size baby boomersand product affordability, which was provided competently in a thorough setting, became pleasing, not to point out the soon to be iconic golden arches and Ronald

3 Running Head: MARKETING MIX McDonald. Competition presented no threat and by 1958, the rising company sold its 100 millionth hamburger. The improvements and astonishing advances of culture increased the existence of competitors, as a tendency toward healthy living was fast becoming a customary standard of living. The days of resting on ones success were obsoletethat is if a business anticipated to continue operating with improved worth. McDonalds reinvented its product position over the years and never lost touch with reins for monitoring service methodsgetting clientele in and out quickly, easily, and with the proper order was a recipe for growth into the universal marketplace. Two years after their tenth anniversary in 1965, which was notable with an initial public offering price of $22.50, McDonalds started global operations in Canada and Puerto Rico; further, current operations cross the globe in 118 countries (McDonalds.com history, 2009). With product basis such as the Big Mac, Quarter Pounder, French Fries, Filet-o-Fish, Happy Meals, breakfast fare, salads, soft drinks, coffees, teas, and desserts among others, McDonalds franchises were reputable in such foreign locations as India, Israel, China, Singapore, Fiji, and Morocco. Widespread research headed expansion into various lands, which afforded smooth franchise conversions to function and increase within the attitude of think locally. Relationships with local citizens proved to be an important lesson and a lucrative one. McDonalds franchises featured native citizens as owners, employees, and suppliers, which permitted the faultless integration. McDonalds franchises agree to conduct business that will offer consistency of products and services. Adapting to the local customs and ethnicities in China, for example, the Prosperity

4 Running Head: MARKETING MIX Burger is offered during Chinese New Year celebrations. This popular item has seen the number of outlets in China swell to 1,000; further, the vegetarian ingredients of the Maharajah McBurger has revolutionized franchises in India by respecting the religious and cultural custom, which forbids eating beef (McDonalds.com, history, 2009). Rivalry from Starbucks, which launched breakfast sandwich and coffee combo specials additionally to daily croissant/sweet roll with a coffee, was countered by McDonalds with the introduction of McCafe, a quality offering of coffees, blended, and iced offered at a more reasonably priced product than Starbucks. In keeping with the tendency toward healthy lifestyles, McDonalds once again has verified a change to meet shifting market demands by providing zero trans-fats in its fries, Filet-O-Fish, and other products. McDonalds offers goods on a universal basis, which provides a radical blend of product consistency with originality. Promotion Promoting goods is as varied as the global stamp of this fast food giant, but consists of five vehicles for updating and presenting many reasons to opt for McDonalds: advertising, direct marketing, sales promotions, public relations/publicity, personal selling (Kotler & Keller, 2006.) Advertising strategies are similarly carried out in a variety of countries, which feature a celebrity flaunting the value, quality, and affordability presented by the franchise. In China, for example, money was saved by steering clear of television advertising, as programs only feature advertising amid episodes, and studies specified that the mass of viewers would change to another station, thus advertising has been targeted in printnewspapers and magazines (Vignali, 2001)

5 Running Head: MARKETING MIX Direct marketing has been attained through the Internet, as universal positioned web sites accommodate to specific cultural diverseness while bearing in mind ethnic, religious, moral, and consumer attitudes toward goods. Promoting the corporate vision for respecting all communities by operating in a green manner, disclosing healthy alternatives with posted nutritional information, and providing interactive features, such as feedback has been effective for keeping an eye on customer needs and monitoring change in attitudes as a vehicle for maintaining a posture poised for market upheavals (Rowley, 2004). Sales promotions are initiated to keep the consumer knowledgeable of the value to quality correlation, which has been effectively used for sustaining and expanding corporate wealth. Offering a range of contests such as the Monopoly game alters mere consumers into contest game players, frequenting for another visit, which would not have occurred without the tempt of winning prizes and money. The original themes of circus flare Happy Meals, has continued the interest of the younger consumers, with Walt Disney Characters included in Happy Meals. Contributing values for the mature consumerparentscreates a pleasant and fulfilling experience for the complete family. Everybody is happy! Big Mac jingles and current slogan Im loving it have kept originality to advertising campaigns. Public relations are significant to McDonalds. A visit to Mcdonalds.com offers something for every element of the family, including rich content for students involved in using McDonalds as a subject for term papers. McDonalds acts responsibly by regarding the universal environment and the varied populations that this fast food tycoon operates ina green machine! Feedback is received and the history of this company is presented as an interactive characteristic on the companys website. In Beijing, individuals are hired as public relations

6 Running Head: MARKETING MIX agents for the company; further, creativity, originality, and a corporate mindset for satisfying all communities creates value (Vignali, 2001). Ronald McDonald House was established in a variety of communities as a program to aid children and their families with special needs, such as serious medical situations. According to a webpage titled Cause that Counts, 2009, para. 4, Research shows that 92% of Americans have a more positive image of companies that support a cause. And, 87% of Americans are likely to switch brands, when price and quality are equal, to support a cause. These trends are consistent around the globe. McDonalds has been the official sponsor of the Olympics and other sporting events. In 1977, McDonalds chose its first ever All-American High school Basketball Team, which played an exhibition game in opposition to the Washington Nationals, well-known for playing and losing to the Harlem Globetrotters (McDonalds.com, history, 2009). McDonalds cares and upholds a most favorable steadiness of the right type of public coverage. Employees are comprehensively trained in all portions of safe food handling, product information, and customer service. Product information varies among the varied cultures, but regularity in employee consciousness for safe food handling and enthusiasm to excellent customer service corresponds to the essential product food fare presented on practically all McDonalds menus. Knowledgeable and gracious people on the other side of the counter make the experience for the consumer much more rewarding. Placement and Price

7 Running Head: MARKETING MIX A mixture of research studies have shown that McDonalds has inundated the United States market, but prospects still exist in the universal marketplace as new nations face the effects of technological wonderments. This causes the standard of living to get better, education principles to progress, and with knowledge comes power. The power of information improves the mortality rate, steadies fertility rates, and creates a new market for McDonalds to increase responsibly, ethically, and with respect for the surroundings, as corporate assets and value are enhanced. According to Vignali, 2004, McDonalds overall pricing objective is to increase market share (para. 3, Pricing Decisions). Widespread studies into market divisions thoroughly researches demand, factors in costs, examines competitor positioning, and systematically arrives at a price that will maintain customer demand for value, quality, and convenience, all delivered in a clean, friendly environment. Value menus featuring selected items for one-dollar boost consumer traffic and revenues as other habitually priced products are added to the order. A most favorable situation for all parties will amplify market share and shareholder prosperity. McDonalds runs in an environment influenced by diverse cultures, ethnic customs, religious belief, political systems, consumer regulator groups, and stern competition from other units seeking to wear down some of the leading market share that McDonalds enjoys. Including all of its shareholders in the course for ensuring that quality, value, consistency, customer relations, and an enthusiasm to modify with the winds of consumer inclinations has been that recipe for achievement and should be a method that will sustain the latest slogan, Im loving it!

8 Running Head: MARKETING MIX References About McDonalds. (2009). Cause that counts. Retrieved February 13, 2012, from http://www.aboutmcdonalds.com/mcd/students/mcdonalds_does_good/cause_that_counts.html. Kotler, P. & Keller, K.L. (2006). Marketing management (12th Edition). Pearson: Prentice-Hall. McDonalds.com. (2009). Retrieved February 13, 2012, from http://www.aboutmcdonalds.com/mcd/investors/corporate_governance.html. McDonalds.com history. (2009). Retrieved February 13, 2012, from http://www.aboutmcdonalds.com/mcd/our_company/mcd_history.html. Rowley, J. (2004). Online branding: The case of McDonalds, British Food Journal, Vol. 106, No. 3, (228 237). Retrieved February 13, 2012, from Emerald Full Text Article database. Vignali, C. (2001). McDonalds: think global, act localthe marketing mix, British Food Journal, Vol. 103, No. 2, (97 111). Retrieved February 13, 2012, from Emerald Full TextArticle database.