Tourism and Hospitality Management

Task performance Midterm

Mcdonalds
Mix and Match

Members

 Gepulla, Christine
 Huiden, Aldri
 Lareza, Jade Angela
 Latonio, Derlyn
 Leal, Emerald
 Samiling, Jerimiah
 Sollano, Pauline Ann
 Villagracia, Joyce Ann
I. Background of the Company

McDonald's is one of the world's most well-known fast-food restaurant chains. It a prominent
example of the fast-food industry's growth and globalization, and it remains a major player in the
food service industry worldwide.

McDonald's was founded by Richard and Maurice McDonald in 1940. Their first restaurant,
called the "McDonald's Bar-B-Q," was in San Bernardino, California. It had a limited menu
featuring items like hamburgers, cheeseburgers, soft drinks, and milkshakes. McDonald's
gradually expanded its menu to include items like the Filet-O-Fish, Big Mac, and the introduction
of breakfast items such as the Egg McMuffin. McDonald's has continually adapted to consumer
preferences and technological changes, introducing features like drive-thru service, online
ordering, and mobile apps for customer convenience.

In 1954, Ray Kroc, a multi-mixer milkshake machine salesman, became involved with the
company. He was impressed by the efficient system the McDonald brothers had developed and
saw the potential for franchising. Kroc opened the first franchised McDonald's restaurant in Des
Plaines, Illinois, in 1955. McDonald's operates on a franchise model, with most of its restaurants
owned and operated by independent franchisees. This model has contributed to its global success.

McDonald's started its international expansion in the late 1960s and 1970s. Today, it has
thousands of restaurants in over 100 countries. Over the years, McDonald's has faced criticism
and scrutiny related to issues such as nutrition, health, and environmental impact. In response, the
company has made efforts to introduce healthier menu options and more sustainable practices.

1. Existing marketing campaign

 Traditional marketing - McDonald's, like many successful global brands, employs a
mix of traditional marketing strategies to promote its products and build its brand.

1. Television Advertising: McDonald's often runs TV commercials to showcase its

menu items and promote limited time offers. These ads typically focus on the appeal
of their food, family-friendly atmosphere, and affordability.
2. Print Advertising: Print advertisements in newspapers and magazines are used to
feature new menu items, promotions, and coupons.
3. Billboards and Outdoor Advertising: McDonald's uses billboards and outdoor signage
in strategic locations to maintain brand visibility and promote new menu items.
4. In-Store Promotions: Inside their restaurants, McDonald's uses in-store promotions
like Happy Meal toys, limited-time menu items, and special pricing to attract and
retain customers.
5. Public Relations: McDonald's utilizes traditional PR strategies to handle crises, build
relationships with the media, and promote positive news and community
involvement.
6. Cross-Promotions: McDonald's frequently partners with other brands to create co-
branded products or promotions. For example, Happy Meal toys may feature
characters from popular movies.
 7. Happy Meal Marketing: McDonald's has specific marketing strategies aimed at
children, often featuring popular toys or movie tie-ins in Happy Meals.
8. Holiday and Seasonal Campaigns: McDonald's runs special promotions and
advertising campaigns during holidays and seasons, often offering themed menu
items.
9. Loyalty Programs: McDonald's has implemented various loyalty programs, such as
the McCafe Rewards, to encourage repeat business and reward loyal customers.
10. Drive-Thru and Signage: Drive-thru signs, menu boards, and store signage are critical
for attracting customers and promoting the menu.

 Social media marketing - McDonald’s embraces digital and social media platforms to
connect with its target audience effectively. The company leverages platforms like
Facebook, Twitter, and Instagram to engage customers, share promotional offers, and
gather feedback. Mobile apps and online ordering systems, provided convenience, and
enhanced the overall customer experience. By using these channels, McDonald’s creates
a sense of community and encourages customer interaction. These digital initiatives not
only cater to tech-savvy consumers but also serve as valuable data collection tools,
enabling McDonald’s to gain insights into customer preferences and behavior.

 Video marketing - Video marketing is a significant part of McDonald's overall

marketing strategy. The company utilizes video content to engage with its audience,
showcase its products, and tell compelling stories.

https://youtu.be/3QLoUfA4Eko?si=pQR_2bww78eg10jr
 Voice marketing – When we think of the marketing of McDonald’s, the first thought that
comes into our mind is Social Media Marketing or Video Marketing. But McDonald’s
expand their marketing through Voice Marketing.

 Influencer marketing - McDonald's collaborates with social media influencers and

bloggers to promote its products and reach a broader and engaged audience.

 Brand marketing - is a fundamental aspect of McDonald's overall marketing strategy.

The McDonald's brand is one of the most recognized and valuable brands globally, and
it's consistently reinforced through various marketing efforts. McDonald's brand
marketing strategy focuses on consistency, emotional appeal, community involvement,
and a commitment to quality and responsibility. This strategy has helped McDonald's
establish itself as a globally recognized and trusted brand in the fast-food industry.

1. Consistency: McDonald's places a high emphasis on maintaining a consistent brand

image and messaging across all touchpoints. This consistency includes its logo, color
schemes, slogans, and overall visual identity.
2. Iconic Logo: The golden arches of the McDonald's logo are one of the most
recognizable symbols in the world. The logo symbolizes the brand and its promise of
consistency, quality, and fast service.
 3. Slogans: McDonald's has used several memorable slogans in its history, such as "I'm
Lovin' It" and "You Deserve a Break Today." These slogans help shape the brand's
image and evoke emotions.
4. Emotional Appeal: McDonald's often incorporates emotional storytelling in its
advertisements to connect with its audience on a deeper level. These stories may
focus on family, childhood memories, and moments of happiness and togetherness.

II. Pricing strategies

 Product Bundling pricing

Mix and Match

McDonald’s uses price bundling for their products as one of their marketing strategies.
The price bundling offers a package of products at a set price in which includes the main
dish, drink, and a snack, this package deal is known as “meal”. McDonald’s introduces
McSavers Mix & Match to provide customers an affordable & budget friendly way of
creating their own combos to keep their tummies happy & get their cravings satisfied.

Mix and match was introduced on April 20, 2022, and still available up until present.

Products available on the menu.

 Psychological pricing

1. Pricing Just Below Whole Numbers : McDonald's often sets its prices just below
whole numbers, such as pricing a meal at ₱99 instead of ₱100. This pricing technique
is designed to make the cost of their products appear lower and more appealing to
budget-conscious consumers.
2. Value Meals and Combos: McDonald's frequently offers value meals and combo
deals that feature bundled items for a slightly discounted price compared to buying
each item individually. This approach encourages customers to perceive a better
value in buying a combo rather than separate items.
3. Limited-Time Offers: McDonald's in the Philippines introduces limited-time offers
and promotions where they might offer specific items at a reduced price for a short
period. This creates a sense of urgency and encourages customers to take advantage
of the lower prices.
4. Emphasis on Low-Cost Options: The Philippines McDonald's menu includes items
that are positioned as affordable options. These items often use psychological pricing
to make them appear more budget friendly.
5. Price-Point Strategy: McDonald's offers a range of price points on its menu to cater
to different customer segments. This approach allows customers to choose items that
align with their budget while maintaining a perception of affordability across the
board.
6. Value for Money: McDonald's in the Philippines often emphasizes the value and
quality of its food offerings, suggesting that customers are getting a good deal for
their money.