Integrated Marketing Communications

SALES PROMOTION
 McDonald's

McDonald's is an American fast food company, founded in 1940

as a restaurant operated by Richard and Maurice McDonald,
in San Bernardino, California, United States. They rechristened
their business as a hamburger stand, and later turned the
company into a franchise, with the Golden Arches logo being
introduced in 1953 at a location in Phoenix, Arizona.

McDonald's is the world's largest restaurant chain by Revenue,

serving over 69 million customers daily in over 100 countries
across 37,855 outlets as of 2018. Although McDonald's is best
known for its hamburgers, cheeseburgers and French fries, they
feature chicken products, breakfast items, soft
drinks, milkshakes, wraps, and desserts.
 SALES PROMOTIONAL TOOLS
MCDONALD’S uses many Sales promoting techniques to increase sales. Let’s look at few of them.

1. Creating positive brand image through a catchy jingle.

“I’m Lovin’ It…  Para Pap Pap Paa” is a very well-known jingle that has been used by McDonald’s for a very
long time now. This jingle highlights the positive experience one can have while dining at McDonald’s. The
jingle is memorable because it speaks about how happy people are during their meals there, and how
helpful and friendly the employees are.

2.Brand Mascot of McDonald’s

What is the best McDonald’s brand mascot? A funny clown character that McDonald’s is able to successfully
market to both children and adults. The brand mascot strategy was first implemented by McDonald’s in 1963
and since then this mascot has become an integral part of the company’s legacy. McDonald’s uses a lot of
promotional techniques as promotional activities helps build brand loyalty and interest.
3. Collaboration of McDonald’s
McDonald’s has been having a long history of collaboration with various companies and artists. The motive behind
these collaborations is to maintain its brand reinforcement in the minds of its customers. This goes beyond simply
creating advertising campaigns that promote the value of its products. It very recently collaborated with BTS – the
very popular South Korean Music band where it introduced a special McDonald’s meal called the BTS Meal. Likewise,
it has collaborated with artists like Travis Scott, J Balvin as well as Companies like Coca Cola.

4.Toys, Scratch Cards & Lucky Draws

Children are the target consumer base of McDonald’s and hence it becomes inevitable for the
organisation to develop such promotional strategies that may create enthusiasm in children. Happy
Meals are offered with small toys which excites children. McDonald’s also introduces lucky draws,
numerous schemes for winning prices and child competitions from time to time as for example, Happy
Meal toys, Big Mac Hockey Contest, card games etc.

5.Coupon Codes and discounts

McDonald’s provide many sales promotions for customer. For instance, sometimes the company offers discount
coupons on certain products. Since the company focused on children segment, happy lunch days offer many special free
toys for kids. McDonald’s offers discounts for certain foods when students come eating at their restaurants. McDonald’s
also does not miss any special holiday in Vietnam.
6. Special Discounts on mobile application
With the McDonald’s app, you’ll get access to exclusive deal and offers. The application is interactive
and recently they have introduced a loyalty point program for those using the application. This way
the repeating customers can earn reward points and avail free foods and discounts
CHALLENGES FACED BY USING THESE PROMOTIONAL
TECHNIQUES

McDonald’s generic strategy determines its basic approach to developing its business and competitive
advantage. As the biggest fast food restaurant chain in the world, McDonald’s uses its intensive growth
strategies to support continued business development and expansion. The related strategic objectives
dictate the company’s operational activities, especially in responding to economic changes and the
actions of competing firms. Variations in market conditions impose pressure on the business to adapt
or reform its strategies. As such, McDonald’s generic strategy and intensive growth strategies change
over time to ensure long-term business viability. McDonald’s generic strategy defines the firm’s overall
business approach for competitiveness.
McDonald’s Generic Strategy (Porter’s Model)
McDonald’s primary generic strategy is cost leadership. In Porter’s model, this generic strategy involves minimizing costs to
offer products at low prices. As a low-cost provider, McDonald’s offers products that are relatively cheaper compared to
competitors like Arby’s. However, the company also uses broad differentiation as a secondary or supporting generic
strategy. This secondary generic strategy involves developing the business and its products to make them distinct from
competitors. For example, through McCafé products, McDonald’s applies the broad differentiation generic strategy.
Vertical integration is a strategic objective linked to McDonald’s cost-leadership generic strategy.

SUCCESS EVALUATION

Sales Promotion alludes to different offers for a constrained timeframe given by the association to pull in clients
and give them an advantage and increment here and now deals. Different deals advancement procedures
incorporate coupons, value bargains, rebates, trade offers, premiums, cost offs.
McDonald’s Intensive Strategies (Intensive Growth Strategies)
 
Market Penetration. McDonald’s uses market penetration as its primary intensive strategy for growth. In applying this
intensive strategy, McDonald’s grows by reaching more customers in markets where it already has operations. For
example, McDonald’s opens new restaurants in North America and Europe by franchising, joint ventures or corporate
ownership. A strategic objective connected to this intensive growth strategy is global expansion through new locations.
Market Development. In its early years, McDonald’s used market development as its primary intensive strategy for
growth. However, market development is now a secondary intensive growth strategy because McDonald’s already has
restaurants in most regions around the world, except Mongolia, some parts of the Middle East and west Asia, and the
majority of African countries. A strategic objective for this intensive growth strategy is to establish new locations in
new markets, such as new McDonald’s restaurants in African or Middle Eastern countries where the company currently
has no operations.
Product Development. McDonald’s uses product development as its tertiary or supporting intensive strategy for
growth. In applying this intensive growth strategy, McDonald’s develops new products over time, such as new McCafé
products. These new products may be variations of existing products, or entirely new products. The strategic objective
for this intensive growth strategy is to capture more consumers by attracting them to new products.
Strategic Analysis and Recommendation for McDonald’s
McDonald’s generic strategy of cost leadership enables the company to sustain its market
leadership. The company’s broad differentiation strategy also helps. However, a possible
strategic direction for McDonald’s continued growth is to establish more locations in
developing economies and in countries where the firm has no market presence.

McDonalds has received an unmistakable methodology of adjusting its items to the

Indian tastes and it has not just embraced this procedure of Indianisation in its
valuing, advancement, situating keeping in mind the end goal to associate with the
Indian Customers.
During that time as the brand developed in India McDonalds has possessed the
capacity to change the view of its clients under various measurement from what
they think about the brand and what it really remains for.
OTHER PROMOTIONAL TOOLS COMPANY CAN USE IN FUTURE

• With lots of competition in the fast food market, even heavyweight McDonald's cannot take
customers for granted and must constantly keep ahead.  

• • In doing so, the company has sought to identify weaknesses in its businesses or customer
concerns.  

• • While perhaps obvious, the focus has been on simplicity of the ordering experience, low-cost but
tasty food, and response customer service.
Simplified Menu
 

Eating at McDonald’s can be quite an experience, as the menus flip over at high speed, which makes for a
cycle of ever-changing options, which can seem overwhelming. By getting back to its roots – hamburgers,
cheeseburgers, and French fries – the McDonald’s brand can strengthen and continue to identify itself
with its core consumer. Quick and simple ordering means happy customers, and revolving customers are
the core of every restaurant business.

Fast Food
 
McDonald’s failed experiment with pizza in the 1990s should have taught the company that consumers
don’t visit fast-food restaurants to sit around and wait for food. Franchisees complained about the
expensive pizza ovens and long cooking time, but it took until 2000 for McDonald’s to close its pizza
chapter.
Customer Service
 

At the management level, there appears to be a general lack of initiative that goes into providing a
pleasurable experience inside McDonald’s to match the service levels of its competitors. The best and
easiest solution for improving the time spent in a McDonald’s is self-service kiosks, which are growing in
popularity and widespread in Europe and Canada.

Lower Prices
 
By simplifying the menu and implementing self-serve ordering, McDonald’s can lower its prices from the
labor deficit and ingredient cross-utilization. Smaller, uncomplicated menus not only translate into lower
staffing costs, but they also don’t force franchisees to purchase expensive specialized equipment or keep as
much inventory on hand to sell a wide variety of menu items.

The Bottom Line

 
McDonald’s needs to stop trying to please every type of consumer. Fast-casual restaurants are not their
competition.
Tasty Burgers
 

McDonald’s once made the tastiest hamburgers in America, but today the best hamburger award goes to other
increasingly to fast-casual restaurants. McDonald’s, in a bizarre move, abandoned its core brand of being fast and
cheap and attempted to copy the upscale hamburger places to woo back consumers