Macdonald Company's marketing mix strategy
Introduction
This research examines the global marketing mix in two key markets. The objective is to
investigate and grasp the similarities and differences in implementing an international marketing
mix plan. This study utilized comparative analysis to focus on the 4P technique to promotion
mix. This is based on an examination of the product, price, promotion, and location. Strategy in
the United States and Malaysia were utilized in this research. McDonald's has used several types
of its 4P in its restaurants, according to the study. Both localization and globalization techniques
are used to create a worldwide marketing mix.
According to (Sheth & Parvatiyar, 2001), there are three comparative variables for understanding
business marketing operations in international marketing. According to close descriptions,
marketing is done differently in different countries. Relative explanations describe the structural
determinants of country differences, and comparative prescriptions discuss how one nation
positions itself about specific marketing strategies by multi-doing marketing activities in
different countries. The primary focus is on recording, explaining, and regulating cross-national
marketing operations. (Toyne, 1989)
McDonald's first opened its doors in San Bernardino, California, in 1940. McDonald's was
created by Maurice and Richard McDonald as a fast-food restaurant. After beginning off as a
restaurant, the owners chose to turn it into a hamburger shop before branching out into
franchising. They first used the Golden Arches logo in 1953. Ray Kroc bought the McDonald's
franchise after joining the firm in 1955. The firm's new headquarters are in Chicago, Illinois.
Concept of the marketing mix
During the 1960s, academic circles explored the marketing mix and the 4Ps (product, pricing,
placement, and promotion). It is founded on the idea of a mixer of components (Gronroos,1994),
which develops various ways of competition and mixes them into a marketing mix to generate
brand equity and maximize, or rather, satisfy the profit function. (Yoo et al., 2000). Examining
how the marketing mix contributes to the development of brand equity. Pricing and store image,
distribution intensity, advertising, and price promotion methods, were among the elements
investigated in the study. They discovered that certain aspects of the marketing mix had a
positive or negative influence on brand equity.
According to (Riyad & Myfanwy, 2002), the Internet plays a critical role in global marketing in
this modern era. To begin with, Internet marketing has changed numerous components of the
marketing mix on a worldwide scale. The goal is to make your strategy more attractive. Second,
the Internet alters the global marketing landscape profoundly, demanding a new approach. As a
result, a new international marketing model may be necessary to explain worldwide marketing in
the digital era. In this case, we'll look at the McDonald's restaurant. How, as Martin points out,
it's effectively set its global standards as well as product value, and marketing mix methods in
the United States and Malaysia become our mammoth examples.
To put it another way, marketing may be defined as a top-down strategy and competitive plan
backed by line managers' functional tasks and all company workers' customer-driven orientation
to build a good connection. According to (Hamzah Hashim, 2014), the promotion mix combines
carefully regulated marketing tools that an establishment uses to elicit the appropriate response
from its various target audiences. It may also be defined as a company's use of a device to
advertise its products and services that incorporate various marketing decision components
(Singh, 2012).
The market programming process begins with the identification of the market and the collecting
of basic market information. This is the process of finding the best instruments and strategies to
meet customer requirements while simultaneously conquering competitors. It gives organizations
the optimum mix of all marketing components, helping them to meet goals like profit, sales
volume, market share, and return on investment. (Singh, 2012).
Elements of the marketing mix (4 Ps)
Product
Mcdonald's considers cultural factors while serving Malaysian clients. Die halal-certified cuisine
boasts a particular regional taste. Variety-wise, they are equivalent to Burger King. The
'prosperity burger' is done during the Chinese New Year. Even if McDonald's serves nutrient-
dense meals, customers' taste and eating experience will suffer as a result. In the case of
McDonald's renowned fries, for example, the taste has changed because trans-fat oils have
substituted saturated oil
Price
In comparison to KFC and Burger King, McDonald's has lower pricing. They have very
reasonable meal pricing. The "Value Mc Savers" and the "Mc Value Meal" are two options. KFC
and Burger King also provide a bargain meal named "Jom Jimat every day," but McDonald's is
the best when it comes to fast food prices. On the other hand, McDonald's only sold it for a
limited time, raising the issue of its availability.
Place
McDonald's operates 185 locations in the United States. Because all Malaysians like shopping in
malls, they are developed or opened in retail areas such as shopping malls. They also have
locations in rural regions. However, KFC has a more significant presence there. McDonald's has
opened numerous local petrol stations, including PETRONAS Mesra, in critical locations. They
launch an express café with a selection of well-known items. This can satiate the appetites of
consumers, such as on-the-go executives and motorists.
Promotion
One of the essential aspects in achieving a solid profit and excellent customer satisfaction is
advertising. Before going to a fast-food establishment, customers look for a good bargain and
special offers (Kara, Kaynak, and Kucukemiroglu, 1997).
McDonald's' events and sponsorships are primarily intended to support their social responsibility
efforts. They frequently do fundraisers for their Ronald McDonald House. KFC, on the other
hand, is more concerned with improving its market position than with philanthropy. Lately, "they
organize a campaign, entitled 'Good things come together with KFC,' aims to differentiate KFC
from its rivals and highlights the fast-food chain's presence and role in everyday Malaysian life"
(Brand Republica,2009). In Malaysia, there is no known Burger King event. McDonald's
television commercials are only shown during certain times of the year, such as around the
holidays or releasing a new film. Typically, their advertisements target youngsters rather than
adults. KFC has a TV commercial campaign that is comparable to McDonald's. On the other
hand, KFC has its television show, the "Chicky Hour," which airs every Saturday.
In Malaysia, McDonald's focuses their marketing strategy on distributing fliers to people's homes
and attaching coupons to newspapers. Burger King and KFC both provide discount vouchers. On
the other hand, Burger King coupons must be purchased rather than given out for free, like KFC
and McDonald's coupons.
As well as employing billboards, McDonald's also advertises its products. On key highways,
they put their current marketing for "McDonald's Mc Value Meal." Both KFC and Burger King
don't use this type of advertising for marketing their products. KFC and Burger King have more
price reductions than McDonald's. They have "Mc Value Meals" and "Value Mc Savers." Burger
King and KFC offer a bargain meal named "Jom Jimat Every Day," however, McDonald's
provides the most excellent pricing for fast food. The conclusion is that McDonald's is investing
much in marketing, especially advertising, to gain market share. This is dependable with
McDonald's global customer maintenance advertising approach.
Standardization vs. Adaptation
As a result, whether multinational companies should plan for a standardized or personalized
marketing strategy is a current topic in international marketing. Standardization and adaptation
strategies are frequently used in the marketing mix. According to (Larsson & Jakobsson, 2019),
Adaptation refers to modifying a home market product or service to make it acceptable for
various places and situations. In contrast, standardization refers to the process of adopting the
same standard or method in multiple areas. On the other hand, adaptability is necessary to suit
clients' diverse demands in various target markets. The adaptation method highlights the
apparent differences between different nations' marketplaces, particularly consumer goods
markets, and prefers to use globally differentiated marketing strategies. These techniques may be
used together or separately, and incorporating them into the marketing mix can provide value to
the company (Larsson & Jakobsson, 2019).
McDonald's is an example of a company that has benefitted significantly from globalization.
This is, of course, mainly due to the company's dual marketing strategy:
1. Standardization strategy
This has led to a debate in worldwide marketing on whether multinational firms
should adopt a standardized or customized marketing approach. In the marketing
mix, standardization and adaptability methods are commonly employed.
2. Adaptation strategy
As a method, localization is a suitable parallel. McDonald's uses this method to adapt to the
needs of consumers based on the cultural norms of various nations.
McDonald's has had a lot of success adapting its menu. As a result, the fast-food industry can
expand its worldwide reach. As a result of the strategy, communication and production
expenditures will be higher. The company's marketing mix is also adaptable, allowing it to
respond to local market demands regarding distribution, promotions, and price. Both the
standardization and adaptation perspectives appear logical and consistent. However, market
differences preclude comprehensive uniformity, and the high costs of Adaptation stop its
application throughout the whole marketing mix. The most prevalent reasons for standardization
are cost and market intricacy, whereas the requirement to address the particular necessity of each
market is a common motivation for adaptability. (Wei & Yazdanifard, 2014).
MacDonald's Marketing strategy discussion
Some of McDonald's other strategic marketing strategies include segmentation and product
testing. As an example, there is a substantial variation between marketing strategies for the
American market and those for the Japanese market
Marketing strategy for the United States.
As a result, McDonald's consumes the lion's share of their money. The firm conducts new
product testing and development in its home nation, with the largest audience. Children are the
primary target demographic for most McDonald's advertisements in the United States, where the
company airs around 250 ads each year.
Marketing Strategy for Malaysia.
Therefore, McDonald's accounts for a significant portion of its revenue. New products are tested
and developed in the company's homeland since it has the largest audience. Children are the
primary target demographic in the United States, where McDonald's airs around 250 ads a year.
Adding or deleting food goods based on consumer demand and local trends is part of the
company's product testing and experimenting process. How long will McRibs be available at
McDonald's in the US? There are two types of burgers available in Malaysia: the Teri Tama and
the Tsukimi Burger. Regional marketing tactics at McDonald's may be potent. There is a
Malaysian name that is not only catchy but also appropriate for it. In Malaysia, all McDonald's
food and beverages must be certified as 100 percent halal by Jakim (McDonald's Malaysia,
2020). Furthermore, MacFood Services, a key supplier to McDonald's, aids the company in
exporting grocery items to the market in northeast Islamic nations (Rajawat et al., 2020).
Burgers, fries, and drinks are provided in smaller servings because Malaysians have a different
appetite than Americans.
McDonald's employed two Muslim kitchen employees and appointed two Sharia experts as
Sharia consultants to the internal halal committee to satisfy the halal standards (Rajawat et al.,
2020). Before employees can work, they must get a flu vaccination from a government-approved
health center (McDonald's Malaysia, 2020). Aside from that, McDonald's protein provider in
Malaysia, MacFood Services Malaysia Sdn Bhd, is a global halal market supplier. All protein
ingredients, such as chicken slices and nuggets, are prepared according to Islamic hygiene and
safety standards (Rajawat et al., 2020).
Recommendations
McDonald's has to standardize its employees' customer service abilities, establish clear
standards, and give professional training before they begin working. This is to improve customer
service, retain loyal consumers, and increase profits. Excellent service keeps people coming
back. Therefore it influences a restaurant's potential to attract more loyal customers. McDonald's
has to acquire strategic information to understand its consumers' demands to increase customer
loyalty. Then, commit to providing consumers with services that surpass their expectations and
encourage them to remain loyal to McDonald's (Mujtaba & Patel, 2007). As a result, McDonald's
should devise special incentives to reward high achievers while punishing underperformers. This
is to ensure work efficiency to satisfy client requirements and satisfaction. Despite the worldwide
competition, the firm has effectively adapted to the culture and demands of its customers.
McDonald's is a company that enjoys learning, as well as preparing for and accepting change.
In a nutshell, McDonald's success is due to the value it provides to its consumers. It maintains
one of the top places in the fast-food sector due to its excellent market differentiation strategy
and outstanding innovation capability. McDonald's needs to adapt its business model to meet
local demands. However, there are still several challenges and areas for development, such as
unhealthy food labeling and service quality concerns. To preserve sustainability and erase the
label, McDonald's Company needs continually improve its management.
On the other hand, McDonald's should improve its marketing tactics and adjust its product price
ranges because the majority of respondents were unsatisfied with the pricing, variety, and
services. Consumers become more price-sensitive as incomes decline and the economy falters
( Fougere, Gantier, and Bihan, 2010). McDonald's is advised to employ price methods such as
value-based pricing, especially when the product is no longer in great demand and the economy
is in flux. Pricing a product or service based on its value is established by analyzing the
customer's needs, financial capacity, and expectations, as well as competing alternatives. You
can see what the consumer expects from the service or product. The firm may be able to remain
successful by reducing the sizes or prices. Quarterly promotions, such as buy one, get one free
coupon and cash backs, may assist in keeping and acquiring consumers, as those with lesser
incomes may be able to purchase them.
Conclusion
Developing a global brand would be a difficult challenge. McDonald's Products have a very
competitive market since their competitors have equal access to customers. McDonald's adapts to
the demands of its customers based on their cultural background. Due to the competitive nature
of the industry, it is difficult for different brands to stand apart. (Mintel, 2007).
Malaysia and Indonesia have achieved a successful transition. It has expanded its fast-food
restaurants throughout the world, which is ideal for today's customers who want a quick meal at
a reasonable price. McDonald's has a strong sense of quality service and customer satisfaction,
which allows Malaysia to promote its products, which have been tweaked to suit the tastes and
preferences of its consumers. Reasonable prices It had been introduced, and excellent promotions
and special offers had been carried out. These are some of the methods for gaining support from
individuals all across the world.
The firm must, however, consider the issue of rising competition. With Halal standards, it has
more control over its ingredients, ensuring quality and safety. Its marketing mix may be adjusted
to meet the needs of local markets in terms of distribution, promotion strategies, and price.
McDonald's changed their menu to keep consumers coming back.
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