McDonald’s

McDonald’s marketing mix
facilitates effective reach to the target market. This marketing mix supports
the company’s strength
of
its brand  and leading global
industry position.

McDonald’s
Prices and Pricing Strategy

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McDonalds is using a pricing stategy
which involves price bundling and psychological pricing. The organisation
offers products and meals for a discount and
makes their
prices look more affordable, such as £_.99 instead of rounding it to the
nearest pound. This McDonald’s element of marketing mix shows how important is
price bundling to encourage customers to buy more and more products.

P.E.S.T.L.E.
Analysis

Political:

•Increasing
international trade agreements

•Pending
tax reform

•Evolving
public health policies

•Food
standards

•Food
labelling

Economic:

•Slow
but stable growth of the U.S. economy

•Stable
but risky European economies

•Inflation

•Food
production costs

•Growing
competition

Socio-Cultural:

•Widening
wealth gap

•Increasing
cultural diversity

•Healthy
lifestyle trend

•Automation
of the workforce

•Changing
consumer tastes

Technological:

•Moderate
research and development activity in the industry

•Increasing
business automation

•Increasing
sales through mobile devices

•Patent
protection

•Productivity
improvements

Legal:

•Labour
law

•Employment
law

•Corporate
law

•Tax
requirements

•Local
health regulations in workplaces and schools

Environmental:

•Rising
interest for corporate environmental programs

•Increasing
emphasis on sustainable business strategies

•Climate
change

•Animal
welfare regulation

•The
continuous and enormous use of natural resources

PESTLE analysis indicates that McDonalds
has significant opportunities for business growth. The company can concentrate
on technological strategies to enhance efficiency and productivity as well as,
improve product quality to address sociocultural and political external factors
about health. PESTLE analysis also shows that the company must deal with a
number of threats, such as healthy lifestyle trend, changing consumer tastes.
McDonald’s can address economic external factors by expanding into other high-growth
economies.

McDonald’s is
known worldwide as one of the world’s largest fast food chains. The company was
started in 1940 by Dick and Mac McDonald in San Bernardino, California, USA.
McDonald’s is the leading retailer with more than 30,000 local restaurants
serving 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 largest
fast food Service Company in the world. The company operates other restaurant
brands such as Boston Market, Pret A Manger, Donatos
Pizza, 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:

•According
to the Swot analysis, McDonalds has a negative impact on the environment and an
unhealthy food menu. Animal products are an inefficient  method of food production that have a
detrimental effect on the earth. For example, a McDonalds  1/3-pound burger requires 660 gallons of
water to produce.  These foods have also
been linked to high obesity and disease rates.

•McDonalds
should launch Vegan (Plant-Based) Burgers globally to attract a new group of
consumers.

•New
research commissioned by The Vegan Society in partnership with Vegan Life
magazine, has found that there are over half a million vegans in Britain.

•Veganism
is one of Britain’s fastest growing lifestyle movements.

•McDonald’s
was testing a vegan burger in Finland, burger was only sold in the small
city of Tampere from October 4 through November 21, the response was
overwhelming.

•Now
McDonald’s is launching
the McVegan nationwide
in Finland and Sweden on December 28.

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