Global marketing mix of McDonalds Essay Example | Topics and Well Written Essays - 2500 words

Global marketing mix of McDonalds - Essay Example Reason for selecting this brand is that it employs a unique marketing mix that is based on quality of its product, store ambience, service quality and other parameters. This report will focus on the marketing mix of McDonalds. STEP 2. ANALYSIS OF THE BRAND AND IPT APPLICATION In this step, the marketing mix of McDonalds is analysed. A brief overview of the firm is provided followed by an analysis to assess if the marketing mix is standardised or adapted across international markets. Also discussed is the Internationalisation Process Theory - Uppsala theory for its international operations. 2.1. About McDonalds McDonalds operates in the restaurant sector and its products are fast food items, soft drinks, milk shakes, salads, breakfast, meals and other food items. In 2012, the firm had revenues of 27.56 billion USD. It has more than 34,000 outlets in 118 countries. It employs more than 1.7 million people in its stores and offices. Outlets are operated using different models of as an affiliate, franchisee and directly by the firm. The firm earns its income from royalties, rent, fees from franchises and from sale of food products. Franchise operators are monitored strictly for the service levels and to ensure that the brand image is not spoilt. Outlets have different styles such as counter service and drive-through/ walk through service. It has also opened McCafe, a cafe style of outlet that competes with Starbucks (McDonalds, 2013). 2.2. Assessing the7Ps of marketing mix The marketing mix is a marketing practice and business tool that helps to assess the brand's offer to customers. It combines a set of activities that the organisation must take up so that the target customers are identified and their needs satisfied (Albaum and Duerr, 2011). The earlier marketing mix consisted of the 4Ps and these were called as product, price, place and promotion. For service firms, that offer specific products, another 3 Ps were added to form the 7Ps of marketing mix. These extra Ps are people, performance and processes. For this paper, the 7Ps of marketing for McDonalds is discussed (De Mooij, 2010). Since the global branding practices are under discussion, the efforts of McDonalds in overseas markets is also analysed to assess the consistency of its business practices. 2.2.1. Product Product is a tangible and main offering of a firm and it generates revenue through sale of its products. For a firm to succeed, the product mu st have a unique selling proposition and it must be difficult for others to copy. Product is made of the core product and augmented products and these are packed together to increase the portfolio range. International firms must ensure that there is consistency in product offerings in terms of quality, taste, appearance and delivery (Anderson and Buvik, 2002). McDonalds offers the same range of products across all its outlets. In almost every location, one would see burgers, fries and these are the core products, augmented by milkshakes, coffee and ice creams. Thus, there is sufficient breadth and depth as indicated in the following figure. However, some amount of localisation is done since pork is not served in Middle East and Muslim nations and beef is not served in India. In addition, products in Asia are spicier than similar products in western nations (Vignali, 2010). Thus, McDonalds has standard products that are adapted to suit local conditions. Figure 2.1 Product range of Mc Donalds (Vignali, 2010) 2.2.2. Price Price refers to the money a customer's pays to procure the product. While lower prices could increase sales, it lowers public perception of the product quality besides reducing earnings. Higher price would keep people away (Andrews and Kim, 2007). Since