McDonald’s McChicken Marketing Strategy
Following the advent of globalization, many companies that previously operated in the local markets have sought to establish businesses in foreign markets. Globalization refers to the process of integrating people with governments and organizations across the globe. One of the major limitations the companies that seek to exploit foreign markets may face is the challenge of linking franchises established in foreign nations to the organizational culture and polices.
McDonald Corporation is among the largest chain of fast food restaurants in the United Kingdom. It primarily sells French fires, chicken, hamburgers, soft drinks and breakfast. This paper draws on the view that McDonalds fast food continue to remain competitive in the fast food market niche by virtue of strategic management which sees it improving the taste of sandwiches as well as introducing a menu lost that is new for its customers. To understand the success of McDonald over the years, it is important to note the strategic management of the fast food corporation in the UK. Part of the strategic drive of McDonalds to increase its competitive edge has been to overhaul the system of food preparation and as evidenced in its recent food preparation system dubbed “Made For You”, McDonald developed a mutual relationship with its customers since fresher as well as hotter food are delivered to customers; an aspect that leads to more consumption of McDonalds food. McDonalds Fast Food Company is among the largest food service retail corporation. Known for its hot and fresh fries, hamburgers, burgers and soft drinks, McDonalds operates about 30,000 restaurants in over 199 countries. In the UK, a majority of the McDonalds operates on the franchise basis. The strategic focus and organizational management has positioned McDonalds to compete effectively in an already competitive industry and thus edge a competitive base in the industrial environment and enjoy a market niche for its business. Customers visit its outlet on the daily basis because of the ability of McDonalds to create a company’s image that enhances people to get accustomed to the culture of fats food. As one of the largest fast food corporation in the UK that concentrates on burgers, French fries, soft foods and breakfast, McDonalds has in the most recent introduced salads, snack wraps, fruits and carrot sticks. McDonald is a business that dates back in 1940. It was an idea that grew and became operational as the two brothers Mac McDonald and Dick opened a restaurant in the United States.
McDonald’s deals in fast food that consists of hamburgers, chicken, French fries, soft drinks, coffee, milkshakes, salads, desserts, and breakfast. These products provide varieties for McDonald’s wide target of consumers. McDonald’s serves these products in various quantities and quality, and prices. The company has unique designs for its packaging that reflects its brand and identity. Product packaging has been a strategy that McDonald’s uses in its products to implement its marketing mix (Jobber, 2010). The company knows the effect of packaging message to all its customers. Consequently, packaging of fast food products must thrust McDonald’s brand. The fast food industry is competitive; thus, McDonald’s has to convince customers with its products with a short period. Products packaging offer convenience to consumers who buy fast food for home consumption or travelling. Most products experience repeat purchases due to packaging. McDonald’s has strived to enhance its fast, food products and coffee for convenience of its consumers. McDonald’s pricing tends to consider all elements of the marketing mix. The company provides value pricing whereby its offers products as low as $ 1. This combination provides quality products at fair prices to all customers. Therefore, non-pricing approach is impossible for McDonald’s even if it is the company leading in the fast food industry (Perner, 2008). Pricing strategy and implementation are necessary due to a competitive nature of the fast food industry. In addition, McDonald’s must set pricing strategy to cater for reduced costs that affect the price, promotion and distribution of its products. These will strongly affect its pricing strategy. In all these marketing mix oriented towards pricing, McDonald should know that consumers decision to buy goes beyond pricing alone as there are other factors that influence consumers’ decisions. Consumers seek the best values and satisfaction from their purchases. The advantage is that McDonald’s serves all segments of the market. Consumers need value for their spending and McDonald’s has created this. McDonald’s pricing strategy must also account for competition. McDonald’s also experiences competition from other fast food companies. Therefore, pricing strategy to outdo competition and maintain the leading position as well as market share is crucial in McDonald’s marketing mix (Adcock and Halborg, 2004).
Briefly, along with their sense of community McDonald’s will need to continually update and innovate their processes and Information Technology to increase their productivity, efficiency and profitability while trying to decrease their waste, inefficient energy use and unhealthy menu options. McDonald’s needs to continue to re-invent itself over and over again and if they can continue to do this the golden arches will be around for years to come.
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