What products that you regularly purchase in your country are highly

segmented? What are the different segments of this kind of product?

Why is segmentation useful to the marketer for these products?

MCDONALDS

INTRODUCTION

McDonald's Corporation is the world's largest chain of hamburger fast-food restaurants.

At one time it was the largest global restaurant chain, but it has since been surpassed
by multi-brand operator Yum! Brands (KFC, Taco Bell and others) and sandwich chain
Subway. McDonald’s primarily sells hamburgers, cheeseburgers, chicken products,
French fries, breakfast items, soft drinks, milkshakes, and desserts. In response to
obesity trends in Western nations and in the face of criticism over the healthiness of its
products, the company has modified its menu to include healthier alternatives such as
salads, wraps and fruit.

MARKETING SEGMENTATION OF MCDONALDS

DEMOGRAPHIC SEGMENTATION

 Life cycle

McDonald’s has targeted children, youth singles and the young urban families.
McDonald’s is attracting the young urban families wanting to spend some quality time
while their children have fun at the outlet.

 Age

Mostly youngsters and kids are target, so to attract children McDonalds has Happy Meal
with which toys ranging from hot wheels to various Walt Disney characters are given. At
several outlets, it also provides special facilities like ‘Play Place’ where children can play
arcade games, air hockey, etc. Mostly target is under age 5-6, 12-15, 15-20 and over.

 Gender

McDonalds have segmented its services to males as well as females.

 Occupation

McDonalds has mostly segmented its market to the school and college going students

 Income

McDonalds has targeted mostly middle class and upper class urban families who can
afford its luxury meal.

Psychographic segmentation

 Needs-motivation:
The luxury services of McDonalds fulfill the needs of self-worth.

 Personality:

McDonalds mostly segments is market to extrovert people who usually hang out with
friends and family in restaurants and other enjoyment places.

 Motivation slogans:

McDonalds provides motivated slogans to attract its customers and make a good image
in the minds of the customers like “IM LOVING IT”“EVERY TIME A GOOD TIME”“PUT
A SMILE ON ”“ENJOY MORE”“MY MCDONALDS”“WHAT YOU WANT IS WHAT YOU
GET” These are one of the famous slogans of McDonalds through these slogans
McDonalds is attracting its customers and making a good image in the minds of the
customers, McDonalds has segmented on basis of making relationship with the
customers and making them believe that they are on the right place.

Geographic Segmentation

 Region

In Pakistan McDonalds is giving its services in Lahore, Karachi, Islamabad, Quetta, and
Faisalabad and worldwide McDonalds is giving its services to almost more than 40
countries the main host of McDonalds is New York.

USE-RELATED SEGMENTATION

 Use rate: medium users

 Awareness status: mostly people are aware of McDonalds and are interested to
have services of McDonalds.
 Brand Loyalty: McDonalds have strong loyal customers.

USE-SITUATION SEGMENTATION

 Time: leisure
  Objective: fun
 Person: self, family members, friends, peer

BENEFIT-SEGMENTATION

McDonalds provides luxury meals which have value of money.

HYBRID SEGMENTATION

McDonald’s fast food chain (Service company) uses hybrid segmentation rather than
relying on single segmentation base. In psychographic and demographic profiles
McDonalds gets powerful information about the people, their thinking pattern and
lifestyle. As a result, they advertise their campaigns according to the people lifestyle
pattern and reach its target customer effectively. Moreover, McDonald using
Geodemographic segmentation and they advertise campaigns through Direct-mailing,
Local Cable networks, school, colleges, universities, etc. by this they know about the
lifestyle of people by grouping based, by Credit-cards (get information about customer
and get to know about his neighbors).