Marketing Strategy of McDonalds
Marketing Strategy of McDonalds
The company is using an excellent marketing strategy since, the company is not focusing on above the line (ATL) strategies which include TVCs, radio and electronic media on the other hand, and the company is focusing towards Below the Line (BTL) strategies which include billboards, brochures, newspapers, and in-store activities. Moreover, the company also promotes its products using promotional campaigns and other related activities. In addition, the company is working to add some new products to its product line while excluding some less frequent products to get focused towards high-value products.
Furthermore, the company is also working on customization by adding customized products to the product line. However, by this strategy, the company will be able to ask the customers about any specifications in the desired meal and afterward, the company will complete the order accordingly. In addition, the company also gives discounts and deals on different occasions such as Easter holidays, Christmas etc. this strategy allows the company to attract more customer and retain the old. Additionally, the company has a huge brand equity followed by its taste and product quality since; the company has over 30,000 restaurants globally which serves over 50 million people a day. Afterwards, the quality of the company’s products allows it to attract more customers and to enlarge its customer base as well as reputation.
The food and beverage industry of USA is getting saturated and therefore, the companies are facing several issues but among all of those, increasing competition is the biggest issue. There are several competitors which are competing with McDonald’s like Starbucks, Yum Brand, Burger King, Wendy’s and Hardees etc. Because of the presence of many competitors the company is facing so many difficulties since the competition in the industry is based on prices and service quality not differentiation among the products, therefore, the company has to provide high-quality products at lower prices furthermore, the company was charging premium amount in the past but due to the recent changes the company had to change its marketing and pricing strategy. In addition, the degree of rivalry is very high and the industry is becoming mature, therefore, the rivals are trying to snatch a market share of each other. However, all the industry members and especially competitors of McDonald’s are providing similar products which are becoming a big threat to the company.
The internal factors of the business include the core competencies and weaknesses of the enterprise while the external factors include the opportunities and challenges which the company is facing. However, the primary core competence of the company is its product quality and brand equity since the company is working in the industry for a long time while the company is also providing the best quality products to the extent possible which increase its market reputation and goodwill. In addition, the company has a huge brand name and market share which also allow it to increase its revenue as well as its number of customers.