DIFFERENT MARKETING

STRATEGIES:
McDonald’s Products:
McDonald’s provides mainly food and beverage products. This element of the marketing mix
covers the various organizational outputs (goods and services) that a company provides to its
target customers. McDonald’s product mix has the following main product lines:

1. Chicken, beef, and fish

2. Snacks and sides
3. Beverages
4. Desserts and shakes
5. Breakfast/All-day breakfast

Place:
McDonald’s restaurants are the most prominent places where the company’s products are
distributed. This indicates the venues or locations where the firm’s products are offered.
McDonald’s main places for distributing its products are as follows:

1. Restaurants
2. Kiosks
3. website and app
4. McDonald’s mobile app
McDonald’s restaurants are where the company generates most of its sales revenues. Some of
these restaurants also manage kiosks to sell a limited selection of products, such as desserts.
Some kiosks are temporary, as in the cases of kiosks used in seasonal events and professional
sports competitions. In addition, customers can place their orders through the website and
mobile app. Moreover, the company’s mobile apps for iOS and Android OS let customers claim
special deals and find McDonald’s restaurant locations.
McDonald’s Sales Promotion:
McDonald’s promotes its products to attract more customers. This element of the marketing
mix defines the approaches used to communicate with the customers. McDonald’s uses the
following tactics in its promotional mix:

1. Advertising
2. Sales promotions
3. Public relations
4. Direct selling
McDonald’s advertisements are the most notable among its promotion tactics. The company
uses TV, radio, print media and online media for its advertisements. McDonald’s also uses sales
promotions to draw more customers to its restaurants.

Pricing:
McDonald’s pricing strategy involves price bundling combined with psychological
pricing. In price bundling, the company offers meals and other product bundles for a
discount. In psychological pricing, McDonald’s uses prices that appear to be
significantly more affordable, such as Rs.__.99 instead of rounding it off to the nearest
rupee. This element of McDonald’s marketing mix highlights the importance of price
bundling to encourage customers to buy more products.

Suppliers:
McDonald’s has changed the nature of not only the food service industry but also the food
processing industry as well. McDonald’s realized that the battle between the fast food chains
would increasingly be the one of the efficiency of supply, lower cost production and greater
desire to innovate. It pioneered with innovative and sophisticated food distribution and
packaging systems when the traditional food processors were unwilling or unable to supply
food items that McDonald’s demanded. They achieved amazing consistency by giving more
attention than anyone else to field service and training at store level. Production was
concentrated in huge plants devoted exclusively to McDonald’s. McDonald’s also started with
tiny suppliers and grew with them displaying great loyalty
Competitors:
Fast food companies are giving head-on competition to McDonald’s but due to its focused
marketing strategies highlighting quality, taste, menu, nutrition & several other health-related
benefits company is able to create sustainable competitive advantage. McDonald’s competitors
are

 KFC
 Burger King
 Pizza hut
 Others globally

CRM:
 They have feedback and suggestion form available at each outlet
 They also have an online feedback form
 All the upcoming products and related info are posted on their website
 At McDonald’s the customer always comes first
 McDonald’s provide clean, comfortable environment especially suited for families
 McDonald’s does not sacrifice quality for value. It maximizes value for customer.
PRICING STRATEGIES:

McDonald’s has been best in creating the value in the minds of

customers due to which they are successful in satisfying
customers on what they are charging. In Pakistan they are using
two types of pricing strategies Price bundling along with
psychological pricing. McDonald’s is basically offering various
deals and discounts in price bundling and are using
psychological pricing strategy in a way that it looks much easier
to be affordable, For example Rs.99 or Rs.299 instead of
rounding it off to the nearest rupee.

McDonalds has also been

successful for implementing
the Integrated Pricing Strategy
globally
by having the following
formula:
McDonalds has also been successful for implementing the
Integrated Pricing Strategy globally by having the following
formula:

McDonalds has also been

successful for implementing
the Integrated Pricing Strategy
globally
by having the following
formula:
McDonalds has also been
successful for implementing
the Integrated Pricing Strategy
globally
by having the following
formula:
McDonalds has also been
successful for implementing
the Integrated Pricing Strategy
globally
by having the following
formula:

COST BASED PRICING:

• how much product cost plus my profit is equals to the cost of product.
• McDonald’s Pakistan and overall has some contracts for example with the meat supplier and
with Potato Farms owners.
• The main benefit from this is that it becomes cheaper when you are buying in bulks thus
McDonald is getting advantage by doing it so.
COMPETITVE/MARKET BASED PRICING:
• In what type of competition you are in and also what is your position in the market.
• Analyzing direct and indirect competition so that you can stop customers by going
somewhere else by providing them much cheaper prices than the competitors.
• McDonald’s in Pakistan is trying to maintain their prices lesser than its competitors like KFC
but is failed to provide the best prices for the customers due to which KFC has more market
share in Pakistan than the McDonald’s.

VALUE BASED PRICING:

• who is your customer or simply your targeted audience.
• As in Pakistan there is more poverty just like in India it is.  Indian market McDonald’s is
focusing on providing categorizing customers on the basis of income and are providing best cost
effective prices

Some other pricing strategies of McDonald’s are,

Product line pricing:
McDonald’s offers a range of products and pricing reflects the benefits of the range. So one can
order just a coke or a coke with a burger at additional price.

Product bundle pricing:

McDonald’s combines several products in the same package. For example, Buying a Share box
for 1099 rupees, it has around 4 burgers, drinks, and fries.

Promotional pricing:
Discounting a combination of products as one product is also a strategy which McDonald’s
follows. McDonald’s clubs 3 or 4 products together as one and the price of this new one will be
lesser than the sum total of the individual product.
Value pricing:
McDonald’s has realized that the Pakistani market is a price conscious marketing it has forced
McDonald’s to provide value products, Examples are economy and value meals served by
McDonald’s in Pakistan.

COMPETITORS:

Pakistan’s fast food sector is changing significantly with an inclined shift in life styles and
traditional eating habits. Fast food restaurants are becoming increasingly popular in Pakistan, as
is the case worldwide. Convenience of eating on the go, better accessibility and economical
prices have contributed significantly to the growth of fast food restaurants in Pakistan
especially restaurants representing the well-known international chains like McDonalds, KFC,
Pizza Hut etc.
As for McDonald’s, there are many competitors eating their shares, the main thing they have to
compete with each other are,

 Cost
 Speed
 Health and nutrition
Some of the competitors are;

KFC: Among the leading and oldest fast food restaurants in Pakistan, is the second largest fast-
food chain after McDonald’s and one of the top McDonald’s Competitors. Its specialty is in fried
chicken and burgers. KFC is symbol of quality and taste. It has country-wide existence and great
menu. It is also the second biggest fast food chain in the world.
Pizza Hut: Pizza Hut is the biggest pizza restaurant in Pakistan which is very popular for its great
taste and attractive deals. Being a competitor of McDonald’s, It offers a great menu with variety
of meals and excellent dining areas. It is also one of the biggest pizza chains in the world.

Subway: Subway is another popular fast food restaurant in Pakistan with good taste and great
menu. It has existence in Karachi, Lahore, Islamabad, and other cities of Pakistan.
Subway also focuses on health and lately McDonalds and other burger brands have come under
the scanner for their health disadvantages. This is where Subway is winning the market bit by
bit and hence it is considered as one of the top McDonalds Competitors.
Domino’s Pizza: It is a leading pizza place in Pakistan with growing popularity. It has existence in
Karachi, Lahore, Islamabad and Rawalpindi.

Burger King: Burger King is one of the leading and most popular fast food restaurants in the
world. But it is relatively new in Pakistan. It has existence in Karachi, Lahore, Islamabad and
Multan. Naturally, with the name itself spelling “Burger”, there is no doubt that Burger king is
one of the top McDonalds competitors.
McDonalds has also been
successful for implementing
the Integrated Pricing Strategy
globally
by having the following
formula: