MCDonald's Strategy

McDonald's Strategy
McDonald’s has been one of the leading food chains for many years in terms of the quick-
service segment. They are a company with a broad understanding of the needs of its
customers.
Today, McDonald’s is the industry’s leader not only in sales volumes but also in profit rates
and market valuation. But how did they manage to gain such a strong position? The answer
lies in its well-thought-out strategic marketing moves as well as other internal factors.
That’s why in this case study, we’ll dig deeper into McDonald’s Marketing Strategy from a
marketing perspective by going through its marketing strategies, marketing mix, marketing
campaigns, and SWOT analysis.
So let us start by first learning more about the business model and brand history of
McDonald’s.
About McDonald’s
McDonald’s Corporation, or simply McDonald’s, is the world’s largest chain of fast-food

restaurants, serving around 69 million customers per day. Headquartered in the United
States, the company began in 1940 as a restaurant operated by Richard and Maurice
McDonald.
In 1948, they reorganized their business as a hamburger stand but later in 1955,
businessman Ray Kroc joined the company as a franchise agent who subsequently
purchased the chain from the McDonald brothers and oversaw its worldwide growth.
The mission of the company is, “To create delicious feel-good moments for everyone”.
The vision of the company is “McDonald’s vision is to be the world’s best quick service
restaurant experience. Being the best means providing outstanding quality, service, value,
and cleanliness so that we make every customer in every restaurant smile”
McDonald’s offers its customers a wide variety of its menu items, along with drinks and
other merchandise. It is known for its employee satisfaction, innovation, and commitment
to quality.
The business model of McDonald’s is intensive, but in short, it is a franchise-based model. It

shares the rights of the business with its franchise partners who later operate McDonald’s in
select regions.
In India, McDonald’s is run by two companies, Hardcastle Restaurants Pvt. Ltd (controls
South & West India) and Connaught Plaza Restaurants Private Limited (controls North &
East India). It first entered India back in 1996.
Now that we know about McDonald’s Corporation and McDonald’s India. Let us now go
through the company in greater detail by going through its marketing mix.
Marketing Mix of Mcdonald’s
A marketing mix is a model that an organization uses to advance its interest in its image or
product. The main components of this model are the 4Ps: Product, Price, Place and
Promotion. So let us look at McDonald’s marketing mix strategy in the coming section.
We have written a separate blog taking a deeper dive into the marketing mix of McDonald’s
if you wish to learn more.
Product Strategy of McDonald’s
Being a fast-food company, it primarily sells burgers, french fries, breakfast items, soft
drinks, milkshakes and desserts.
McDonald’s menus are known around the globe, although there are geographic variations
to suit the local preferences & tastes of customers. The company continuously improves its
products and services based on the changing needs and tastes of consumers.
The core value of what McDonald’s offers has always been fast service which is a huge value
addition. Nowhere else can you get such a range of items at even lower prices with such
efficiency, convenience and customer service?
Price Strategy of McDonald’s
The pricing strategy of McDonald’s has always been to offer food at low prices. This is what
has allowed the restaurant to be successful for many years.
This also has primarily helped McDonald’s build its reputation as one of the top fast-food
brands in the world. However, with the costs of living continuing to rise, McDonald’s has
begun offering combos and specials in an effort to entice customers and churn out profits
through economies of scale.
In India, the brand came up with a punchy line – “Aap Ke Zamane Mein, Baap Ke Zamane Ke
Daam”. This was done back in 2008 to attract lower and middle-class customers to
experience the offerings of McDonald’s India and it worked out very well.
Place and Distribution Strategy of McDonald’s
McDonald’s is one of the world’s leading quick-service restaurants (QSR) with over 38,000
restaurants in 100+ countries. It recently opened nearly 1,000 new restaurants globally &
also modernized another 900 restaurants in the US.
It has opened different restaurant formats as well as drive-ins, online ordering, and tying
with food delivery partners. These new formats allow the customers to get the desired food
at a particular time and place which also helps them to have a better experience overall.
The stores themselves are clean unlike others as they always keep their outdoor seating
space sanitized while having indoor seating areas for an elegant ambience.
Promotion Strategy of McDonald’s
McDonald’s uses a lot of promotional techniques as promotional activities help build brand
loyalty and interest. It gives people who may not normally go to McDonald’s a reason to go
there.
Just like any other company, McDonald’s also sponsors various promotion campaigns to
push their brand. Promotions help in creating a sense of community and association
between the company and its customers.
Now that we know about McDonald’s offerings and its promotional tactics, let us now go
through the core marketing elements of its marketing strategy in the coming section.
Marketing Strategy of McDonald’s
With an innovative approach to marketing and consumption patterns through value-added

menu improvements, McDonald’s aims to significantly improve market share in key markets
through continually improving customer satisfaction and attracting new customers through
cost savings, operational efficiencies and improving brand awareness.
So let us look at some of the marketing strategies implemented by McDonald’s over the past
years.
McDonald’s – I’m Lovin’ It…. Para Pap Pap Paa:
“I’m Lovin’ It… Para Pap Pap Paa” is a very well-known jingle that has been used by
McDonald’s for a very long time now.
This jingle highlights the positive experience one can have while dining at McDonald’s. The
jingle is memorable because it speaks about how happy consumers are during their meals
there, and how helpful and friendly the employees are.

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McDonald's Strategy

McDonald’s Corporation, or simply McDonald’s, is the world’s largest chain of fast-food

The business model of McDonald’s is intensive, but in short, it is a franchise-based model. It

Product Strategy of McDonald’s

Price Strategy of McDonald’s

Place and Distribution Strategy of McDonald’s

Marketing Strategy of McDonald’s

With an innovative approach to marketing and consumption patterns through value-added

McDonald’s – I’m Lovin’ It…. Para Pap Pap Paa:

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