This document discusses McDonald's marketing strategies, specifically their segmentation, targeting, and positioning approach. It outlines how McDonald's segments the population based on geographical, demographic, behavioral, and psychographic factors. It then discusses how McDonald's targets specific segments, such as targeting young adults or mothers with children. The document also explains McDonald's positioning strategy, where they aim to be seen as the family friendly and low cost restaurant, targeting a narrow customer base with a low cost approach.

1. BRAND AND PRODUCT MANAGEMENT.
TOPIC: 7P’S SEGMENTATION,TARGETING AND
POSITIONING.
(MATA GUJRI COLLEGE,FATEHGARH SAHIB)
SESSION-2020-21
Submitted to:
Dr.Jashanjeet Kaur
Submitted by:
Bhupinder Singh
B.B.A Final
201637

2. 2
-Product of MacDonald's.
INTRODUCTION • Started in 1937 as barbecue drive in restaurant by two brothers Dick & Mac
McDonald in sanbernardino, California. Raymond kroc, founder & builder of McDonald’s Corporation
was a milkshake machine salesman prior to meeting the two brothers in 1954. By 1958 McDonald had
sold its 100millionth hamburger. McDonalds restaurant is operated by either a franchise, an affiliate, or
the Corporation itself. Revenues comes from the rent royalties & Fees paid by the Franchisees, as well as
sales in company operated restaurants. Currently McDonalds a chain of family restaurants Operates in
119 countries & having more than 36,525 restaurants & serving 68million customer everyday by 4,20,000
employees Low price, Speed, Service & cleanliness became the critical success factor of the business.
McDonalds established in India on October 13 1996. • McDonalds India is a 50-50 J.V. Partnership
between McDonalds corporation [USA] & 2 Indian Businessman-Amit Jatia & Vikram Bakshi.

3. 3
McDonalds’s

4. 4
MARKETING MIX.
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7P’s of Marketing Mix
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PRODUCT
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PRICE
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PLACE
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PROMOTION
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PEOPLE
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PROCESS
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PHYSICAL EVIDENCE

5. 5
7PS OF MCDONALD’S.
-1P-PRODUCT
Product Profile.
● Vegetarian Menu.
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Non-Vegetarian Menu.
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Beverages.
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Frozen Deserts.
Product Attributes.
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Care for customers sentiments towards religion & Culture.
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It has separate cooking areas & Equipment's.

6. 6
-2P-PRICE.
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Price is the consideration that an organization charges for rendering its
products and services to the customer. McDonald’s as we have discussed
later in this assignment undertakes bundle pricing in combination with
premium pricing to sell their products to the consumers.
●
Now the importance of pricing for McDonald’s can be estimated from
the point that McDonald’s sell mostly snacks and food items which have
huge connection with leisure and pleasure, thus to have a customer recall
value McDonald’s need to price their goods effectively.

7. 7
-3P-PLACE.
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Located in Prime Locations[Malls, Shopping Complex's]. Almost In all big cities-
Easily accesible.
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Drive-in & Drive through Options MC-D Future Convenient to consumer.
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Covering many residential areas ex-NCR.
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Right of the High-ways.
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Place is the surrounding or the area from where an organization operates. McDonald’s
generally operates from busy places like malls, highways, markets etc. The basic
reason being the place should be such that customers should be easily able to visit the
place.

8. 8
-4P -PROMOTION.
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Promotion means how an organization communicates itself with the customers, in other words how does the
organization attract customers to visit them and buy goods from them. For example: - Environment McDonald’s
uses association and heavy promotions during football matches and even they have a dedicated football
sponsorship, sponsoring different clubs, as UK’s population love there football thus McDonald’s markets heavily
through it.
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Advertising through T.V, Radio, Cinema, Online, Poster-sites & Press like News Paper & magazines.
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Other Promotional methods include-Point of Sales Display, Merchandising, Direct mail, Loyalty Schemes, Door
Drops etc.
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McDonalds Prime focus is on targeting children in “Happy Meals” to which are targeted at children-Small toys are
given along with meal.
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Lucky draws, Scratch Cards.
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Hoardings at Major Places.

9. 9
-5P -PEOPLE.
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Philosophy of quality, services, cleanliness and value is the guiding force
behind its service.
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Fast friendly service.
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McD has standard uniform for employs for equality service treatment
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Delivery crew members carries basic operation of a restaurant. Ensure
customer satisfaction at the restaurants.
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People are everyone who is involved in any stage and any way to make the
organization function as it does. For McDonald’s generally the people are
employees at store, manager who manages them etc.

10. 10
-6P -PROCESS.
●
Process is generally the activities undertake to deliver a service to a client or customer.
Now for McDonald’s there preparation process is the process which we will talk about
here.
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Food Producing Transparent to consumers.
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New method of packaging & distribution.
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Invented most Efficient cooking equipment.
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Customers are invited to check the ingredients used in food.
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It allows customer to enter the area where the Process takes place to have a Clearview of
what they are consuming.

11. 11
-7P -PHYSICAL
EVEDENCE.
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Physical evidence means the store ambience, appearance etc. With McDonald’s one
would relate an ambience which is comfortable, fun loving, lively etc.
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The physical evidence appearance affects not only the impression outsiders have of a
business but all the way that business functions .
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Staff members
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Location and appearance
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Buildings Maintenance.
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Interior. CLEANNESS SPEED QUALITY TRANPARENCY PHYSICAL EVIDENCE,

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-STP OF MACDONALD’S.
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SEGMENTATION=Segmentation is the dividing of a populations into groups according
to certain characteristics. Dudovskiy (2016) claims that McDonalds uses these
segmentations and segmentation criteria:
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Geographical; region, density.
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Demographical; age, gender, life-cycle stage, income, occupation.
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Behavioural; degrees of loyalty, benefits sought, personality, user status.
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Psychographic; social class, lifestyle.
However, Balaji et al (2016) maintain that McDonalds only uses demographic
segmentation strategy with age as the criteria.

13. 13
-TARGETING.
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Targeting implies choosing specific groups identified as a result of
segmentation to sell products. How does McDonalds select/target the
right segments? Iacobucci (2014) advices that marketers iterate
between understanding corporate fit and having information about
segment size and likely profitability. Dudoviskiy (2016) supplies the
targets for the segments he proposed earlier

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15. 15
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However, according to Carol Sagers (McDonald’s Director of US Marketing) the
company seeks specific segments of its target population,and then customise or
position their products to each segment. Unlike other big package goods companies
that have brand managers for their various brands, McDonalds does not have a Big
Mac manager or a salad group. Their marketing department consists of consumer
segments; there can be a Director of Young Adults, a Director of Moms, a Director of
African Americans, Hispanics etc (YouTube 2013).
●
Of course, there are limited time promotional meals where customers can be
extracted from the existing customer segments e.g. young adults for AFL promotion,
mums buying for their kids for Kung Fu Panda promotion etc.

16. 16
-POSITIONING.
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Positioning refers to the selection of the marketing mix the most suitable for the
target customer segment. Positioning is achieved via a manipulation of the marketing
mix 4Ps, and the positioning matrix demonstrates that certain combinations make
more sense than others (Iacobucci 2014). McDonald’s uses adaptive type of product
positioning and accordingly, the company is engaged in periodical re-positioning of
products and services according to changes in the segment (Dudovskiy 2016). The
following is a direct quote from McDonald’s franchise strategy document:
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“McDonald’s has made itself to be the family friendly low cost restaurant in the fast
food business. We have a narrow scope for a customer base and a low cost strategy”
(McDonalds 2016).