Review Article

Promotional Strategies of McDonalds and Market Effects

Jonathan Rodrigues1,*, Nikhil S2, Suraj Jacob3
1,2,3Undergraduate Student, Department of Management Studies,
Christ University, Bangalore

*Corresponding Author:
E-mail: Jonathan_r@outlook.com

Abstract
This article discusses the various marketing strategies and promotional forces of McDonalds. McDonalds uses several different
means to help them in achieving revenue and increasing a positive customer engagement toward their products. Three main sources
of doing so are franchise revenues, the property returns that they receive from renting or sublease to franchises and retail sales. In
spite of the difficulties and extraordinary rivalry in the business sector, the McDonalds holds a solid position with the assistance of
its effective marketing strategies. Customer perception of the taste of their burgers may outweigh that of Burger King.

Access this article online highlight of the contextual investigation is flimsiness in

Quick Response administration. The component was profoundly
Code: Website: compelling in changes and contrasts in connection of
www.innovativepublication.com guardian organization with establishments and staff.
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Likewise, a conspicuous element that needs an

DOI: exceptional control is the establishment’s
10.5958/2394-2770.2016.00007.7 administration. The organization has a high rate of
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franchisees (more than 90 %) however, McDonalds is

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the world’s finest and leading food service company with

Introduction more than $40 billion sales from 30, 000 plus outlets all
McDonald's is the world's leading global food over the world. Be that as it may, this organization didn't
service retailer with over 36,000 locations in over 100 become rapidly in view of fortune. McDonalds has come
countries. More than 80% of McDonald's eateries to where they are presently because of diligent work and
worldwide are possessed and worked by independent powerful showcasing systems.
local specialist men and ladies. Founded in the United
States in 1940, the company started off as a barbecue The Big Mac - Promotion strategy
restaurant operated by Richard and Maurice McDonald. McDonalds as we all know is one of the leading fast
In 1948, they reorganized their business as a hamburger food chains across the globe. The slogan ‘I’m loving it’
stand using production line principles. Businessman Ray is even more popular than many celebrities to the masses
Kroc joined the company as a franchise agent in 1955. around the globe. Burger King holding a market share of
He subsequently purchased the chain from the over 15% among other top fast food franchises like KFC,
McDonald brothers and oversaw its worldwide growth. Burger King, Hardees, etc. Understanding McDonalds
A McDonald's restaurant is operated by either a marketing strategies is very varied and includes diverse
franchisee, an affiliate, or the corporation itself. The research in various strategies implemented in different
McDonald's Corporation incomes originate from the countries. McDonalds has successfully taken their most
rent, sovereignties, and expenses paid by the franchisees, popular product - The Big Mac, across most of their
and additionally deals in organization worked eateries. markets in today’s world. This success story emerged out
of creating a brand name for itself with its early
Review of Literature modernization into the minds of the consumers.
In a recent report on the conceptual analysis of The advertising objective of the company, simply
McDonalds fast food chain, it fundamentally takes into put is to make the consumers aware of an item, like it and
contemplations, critical changes throughout the years. remember it. McDonalds have till date, successfully
Furthermore, investigates the vital business choices that conquered most of their markets with a wide rand of
prompted, or framed a premise of these progressions. In products, but the Big Mac has created an entirely
addition it helps us to recognize the organization’s centre different era in the sales for the company.
capabilities and the upper hand it picked up. It McDonalds follows five different promotion
additionally highlights the issues confronted by the strategies for almost all their products including The Big
organization. A little correlation with Burger King Mac, being altered for different markets.
serves to benchmark McDonald’s execution.
Considering the colossal history of McDonalds and
the number of changes in authority, the principle
Journal of Management Research and Analysis, January-March,2016;3(1):53-55 53
 Jonathan Rodrigues et al. Promotional Strategies of McDonalds and Market Effects

Sales Promotion it. McDonalds keeps a count of even the smallest of

- Sales promotion basically consists of conducting and detail to ensure their customers are happy and
encouraging activities that promote McDonalds satisfied.
through various contests, programmes, functions and - Face to face communication that is encountered in
distribution of free coupons, which help in the personal selling gives the employee time to create a
attraction of its consumers. good impression of the company which is considered
- Various contests like ‘the happy family moments’, of great importance to the Marketing department of
‘coast to coast’ , ‘NFL love’ have increasing boosted McDonalds worldwide.
their sales and market share by creating an awareness
of the brand and instilling it in the minds of the Advertising
consumers. - An advertisement is targeted to attract the masses of
- These promos and contests also go live on twitter and people at an instance of time. Being one of the most
other social media networks that raise attention of the popularly used methods of promotion by most of the
brand day by day. companies around the globe, advertising has yielded
higher fruits than most of its other promotion
Public relations strategies for McDonalds.
- The public relations play’s a very silent et vital role - Consume normally buy what they see and that is the
in the marketing and promotion of the products at ultimate goal of advertising. In the form of billboards,
McDonalds. Increasing credibility of the brand and media, print ads, television commercials and online
increasing value are two important determinants in commercials, McDonalds have surpassed most of
creating a sustainable market which has been their competition.
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achieved by this company. - The Big Mac, McDonalds most bought product
- Creating employee customer relationship has always worldwide has had over millions of advertisements
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been something that McDonalds hasn't failed in. They located across cities around the world.
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know that the attitudes and behavior of their

employees serve a huge role in today’s market. Celebrity spokespersons have also played a great
- Public relations of the company help them market role in the branding of the product and the franchise in
their most popular product by merely stating the today’s world. Celebrities like Michael Jordan, Venus
nutritional facts, the need and desire that will enhance Williams, Samuel L Jackson, Kobe Bryant, Larry bird,
customer satisfaction. Justin Timberlake and so many more have played an
influencing role in the perspective of the consumer.
Direct marketing Standing as the official sponsor of the FIFA world
- Direct marketing as the term suggests, is a method of cup in 1994, the National football League in 2012, The
directly marketing to your consumers by means such Super Bowl in 2013, The Nascar in 2008, NBA,
as telephone marketing, E-mail based marketing, Olympics, etc. are many segment cleverly attacked and
online marketing, etc. conquered by the company in an early stage taking them
- McDonalds aim mainly at being immediate, to where they are today.
customized, interactive and well suited to highly
targeted markets. Methodology
- The online websites that McDonalds hosts to The basic information and data base for this
different countries offers direct information to the particular research was gathered from various sources of
consumers on their diverse products and services, secondary data. Many of the facts presented are referred
giving the consumers sufficient knowledge about from various business magazines and online articles.
their products and deals. However the researchers have also gathered some
- Home Delivery system also works in an effort of amount of primary data for this research from the outlets
direct marketing as they serve the consumers need by of the above company within their reach.
delivering the products directly to their houses being
one of the very first success food chain to do so. Scope
The scope of the study is limited solely to the
Personal selling markets visited by the researcher for the purpose of
- Personal selling acts as a direct tool in building the research; this may hence not be a total reflection of the
consumer preference, suggestions and feedback. impact of the company's activities in all markets. This
Since personal selling involves customer feedback study focuses on the promotional activities and its impact
directly to the employees of McDonalds, they treat on Big Mac. The research tries to find the importance of
this mode of promotion very high and valuable. a diversified promotional strategy on the success of a
- In McDonalds to achieve personal selling means to brand. The researcher aims to find how the activities of
have a good relationship with customers even for the the company have been successful in driving sales and
few minutes that it takes to place and order and serve
Journal of Management Research and Analysis, January-March,2016;3(1):53-55 54
 Jonathan Rodrigues et al. Promotional Strategies of McDonalds and Market Effects

the market share of the company by focusing on various

promotional activities.

Bibliography
1. Bhasin, H. (2016, February 10). Marketing Mix of
McDonalds. Retrieved from Marketing91:
http://www.marketing91.com/marketing-mix-mcdonalds/
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Retrieved from Marketing Presentation: http://sales-
management-slides.com/marketing-strategy-of-
mcdonalds/
3. Roderick, L. (2016, January 29). 5 things you need to know
this week. Retrieved from Marketing Week:
https://www.marketingweek.com/2016/01/29/5-things-
you-need-to-know-this-week-43/
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Journal of Management Research and Analysis, January-March,2016;3(1):53-55 55