McDonald’s marketing mixfacilitates effective reach to the target market.
This marketing mix supportsthe company’s strengthofits brand and leading globalindustry position.McDonald’sPrices and Pricing StrategyMcDonalds is using a pricing stategywhich involves price bundling and psychological pricing. The organisationoffers products and meals for a discount andmakes theirprices look more affordable, such as £_.99 instead of rounding it to thenearest pound.
This McDonald’s element of marketing mix shows how important isprice bundling to encourage customers to buy more and more products.P.E.S.T.L.E.AnalysisPolitical: •Increasinginternational trade agreements•Pendingtax reform•Evolvingpublic health policies•Foodstandards •Foodlabelling Economic:•Slowbut stable growth of the U.
S. economy•Stablebut risky European economies•Inflation•Foodproduction costs•GrowingcompetitionSocio-Cultural:•Wideningwealth gap•Increasingcultural diversity•Healthylifestyle trend•Automationof the workforce•Changingconsumer tastes•••Technological:•Moderateresearch and development activity in the industry •Increasingbusiness automation•Increasingsales through mobile devices•Patentprotection•ProductivityimprovementsLegal:•Labourlaw•Employmentlaw•Corporatelaw•Taxrequirements•Localhealth regulations in workplaces and schoolsEnvironmental: •Risinginterest for corporate environmental programs•Increasingemphasis on sustainable business strategies•Climatechange•Animalwelfare regulation •Thecontinuous and enormous use of natural resources PESTLE analysis indicates that McDonaldshas significant opportunities for business growth. The company can concentrateon technological strategies to enhance efficiency and productivity as well as,improve product quality to address sociocultural and political external factorsabout health. PESTLE analysis also shows that the company must deal with anumber of threats, such as healthy lifestyle trend, changing consumer tastes.McDonald’s can address economic external factors by expanding into other high-growtheconomies. McDonald’s isknown worldwide as one of the world’s largest fast food chains.
The company wasstarted in 1940 by Dick and Mac McDonald in San Bernardino, California, USA.McDonald’s is the leading retailer with more than 30,000 local restaurantsserving nearly 50 million people in more than 119 countries every single day(McDonald’s Corporation). McDonald’s global sales were around $22 billion this year making it the largestfast food Service Company in the world. The company operates other restaurantbrands such as Boston Market, Pret A Manger, DonatosPizza, Chipotle Mexican Grill, and Aroma Cafe. The company caters to all types of people, including families, professionals,students, and people of all ages. It sells hamburgers, sandwiches, chicken,fish, salads, snacks ,sides, beverages, desserts, shakes and breakfast.
OPPORTUNITY:•Accordingto the Swot analysis, McDonalds has a negative impact on the environment and anunhealthy food menu. Animal products are an inefficient method of food production that have adetrimental effect on the earth. For example, a McDonalds 1/3-pound burger requires 660 gallons ofwater to produce. These foods have alsobeen linked to high obesity and disease rates.•McDonaldsshould launch Vegan (Plant-Based) Burgers globally to attract a new group ofconsumers. •Newresearch commissioned by The Vegan Society in partnership with Vegan Lifemagazine, has found that there are over half a million vegans in Britain.
•Veganismis one of Britain’s fastest growing lifestyle movements.•McDonald’swas testing a vegan burger in Finland, burger was only sold in the smallcity of Tampere from October 4 through November 21, the response wasoverwhelming. •NowMcDonald’s is launchingthe McVegan nationwidein Finland and Sweden on December 28.•