STP ASSINGMENT: McDonalds’s

Introduction –
 McDonald’s is the world’s largest fast-food restaurant chain. It has more than 30,000 restaurants in
over 100 countries.

 Known for its delicious hamburgers, McDonald’s also offers different types of chicken and beef
sandwiches, French fries, breakfast items etc. McDonald’s modify its menu and offerings basis the
region they are operating in, so as to suit the regional customers taste and needs.

 In India, McDonald’s does not serve beef products and lay equal emphasis in promoting their non-
veg (chicken) burgers and Veg burgers.  In USA, McDonald’s is famous for its Beef burgers.

MARKET OFFERING-
Products- Services-
 Beverages. Arch Cards.
 Breakfast. Free Wi-Fi.
 Burgers. Play places & parties.
 Chicken & Sandwiches. MC Delivery.
 Combo Meal. Mobile App.
 Desserts & Shakes. McDonald’s Merchandise.
 McCafé® Drinks.
 McCafé® Bakery.

MARKET SHARE-
 The leading brand in the Fast-Food Restaurants Industry was McDonald's with 21.4% market share.

 McDonald's has a strong focus on customer service, response to competition, and the use of
marketing techniques early on in their development

 McDonald’s owners, Westlife Development Ltd, posted a net profit of ₹22.72 crore for the
December quarter of FY20, which is a jump of 228.3 per cent on a year-on-year (YoY) basis.
SEGMENTATION-
Segmentation is the dividing of a populations into groups according to certain characteristics.
McDonald’s has divided its consumer market into –
Geographic-
Geographic segmentation divides markets according to geographic criteria. McDonald’s breaks its business
into different geographical segments like
1. America
2. Europe
3. Asia/Pacific, Middle East, and Africa
4. Other Countries (like Canada, Latin America)
 Basis their geographic segmentation, McDonald’s optimizes its Menu and food offerings to suit the
regional tastes and needs Mc Aloo Tikki and Mc Veggie are available in India
 Bacon Smokehouse Burger and Quarter pounder (beef) burger are available in the USA
 McArabia Chicken and Beef Burger are available in Arabian countries.
Demographic-
McDonald’s mainly segments the market in below demographics:
1.  Children: McDonald’s offer a lot of goodies, toys, happy meals etc to attract this younger
segment audience.
2. Young Adults (Age group between 18-29): Without much thinking, this segment is the main source of
income for any business, let alone McDonald’s. This market segment may be having a disposable income
which is lower than the average, their consumption patterns are far much more than old the other market
segments.
3. Adults: The third segment is the adults’ segment, in order to target this segment, McDonald’s tweaked
its menu and made its offering less in calories and healthy.
Behavioural-

 Behavioural segmentation divides market on the basis of user status, loyalty status, purchase
occasion, etc.
 Like in McDonald’s it is segmented by occasions, e.g., birthday parties.

Targeting-
The main target customer for McDonald's includes parents with young children, young children, business
customers, and teenagers. Perhaps the most obvious marketing for McDonald's is its' marketing towards
children and the parents of young children
it was the "family place" to go to since quick service restaurant chain McDonald's entered India. Children
were a very important part of its target audience, with a lot of its advertising and menu especially targeting
them. But now McDonald's is firmly talking about youth being its primary target consumers

Positioning-
 Positioning refers to decisions about how to present the offer in a way that resonates with the
target market.
 In order to position its products correctly in the target markets, McDonald’s uses segment insights
or information about the consumer behaviour that are developed through market research.
 The insights focus on the values, needs and lifestyle of each segment.
 Using these insights, McDonald’s create a positioning profile for every product and then the
creative team uses these profiles to create ads targeted to relevant segments as well as to the
general population.

Conclusion-
McDonald’s had conquered the market with their effective segmentation, targeting and positioning model,
and they have set up an example for the importance of a better STP strategy in any business in order to
turn in a global giant.
By-
Muskan Agrawal
Div. B