Mcdonald's Corporation Marketing Mix

Topics: Marketing, McDonald's, Joan Kroc Pages: 7 (1804 words) Published: June 19, 2010
McDonald’s Corporation Marketing Mix

Similar to a fine recipe and its ingredients, a marketing mix recipe includes four ingredients, product, price, place, and promotion (4 P's), (Kotler and Keller, 2006). Marketing strategies are developed through a process of thorough research, which will provide the vehicle for determining the correct product/service, appropriate pricing structures, with effective placement and promotion for establishing the proper position in the marketplace for achieving optimal return on investment (ROI). The recipe for success has served McDonald’s restaurants well since its inception, 1955, as a lone hamburger stand in Des Plaines, Illinois; further, founder Ray Kroc created McDonald’s Corporation, with the specific purpose for expanding the business by franchising; McDonald’s represents one of the most valuable brand names in the world (Rowley, 2004).

Each new global franchise featured standardized brand product values in concert with diverse cultural fare, owned, manned, and supplied by local communities. Acting or expanding globally while thinking locally is the broad marketing strategy that has allowed McDonald’s to retain its competitive advantage as the world’s largest fast-food retailer. In a statement from 1958, which still headlines the corporate governance page Ray Kroc advanced “The basis for our entire business is that we are ethical, truthful and dependable” (McDonald’, 2009, ¶ 1). How has this strategy affected market mix attributes, the way that they were implemented, and transformed for ensuring the long-lasting success of this giant?


Life in the 1950s was simpler than today—no personal computers, no internet, no cell phones, no jet airplanes, no health or wellness consciousness—that lended itself nicely to the

early success of McDonalds’ simple product line of burgers, fries, and thick ice creamy milk shakes. McDonald’s provided a value-based choice for convenience dining, as family units grew in size—baby boomers—and product affordability, which was served efficiently in a meticulous environment became appealing, not to mention the soon to be iconic golden arches and Ronald McDonald. Competition offered no threat and by 1958, the growing company sold its 100 millionth hamburger.

The refinements and miraculous advances of society increased the presence of competitors, as a trend towards healthy living was fast becoming an accepted lifestyle. The days of resting on one’s laurels were outdated—that is if a company expected to continue operating with increased worth. McDonald’s reinvented its product lines over the years and never lost touch with controls for monitoring service processes—getting customers in and out quickly, conveniently, and with the appropriate order was a recipe for expansion into the global marketplace. Two years after their tenth anniversary in 1965, which was celebrated with an initial public offering price of $22.50, McDonald’s commenced global operations in Canada and Puerto Rico; further, presently operations span the globe in 118 countries (McDonald’ history, 2009).

With product mainstays such as the Big Mac, Quarter Pounder, French Fries, Filet-o-Fish, Happy Meals, breakfast fare, salads, soft drinks, coffees, teas, and desserts amongst others, McDonald’s franchises were established in such exotic locations as India, Israel, China, Singapore, Fiji, and Morocco. Extensive research preceded expansion into diverse lands, which afforded smooth franchise transitions to operate and expand within the mindset of ‘think locally’. Collaborations with local citizens proved to be a valuable lesson and a profitable one.

McDonald’s franchises featured native citizens as owners, employees, and suppliers, which

allowed for that seamless integration.

All McDonald franchises agree to conduct business that will offer consistency of products and services. Adapting to the local customs and ethnicities in China for example,...

References: About McDonald’s. (2009). Cause that counts. Retrieved June 30, 2009, from
Kotler, P. & Keller, K.L. (2006). Marketing management (12th Edition). Pearson: Prentice-Hall.
McDonald’ (2009). Retrieved June 29, 2009, from
McDonald’ history. (2009). Retrieved June 29, 2009, from
Rowley, J. (2004). Online branding: The case of McDonald’s, British Food Journal, Vol. 106,
Vignali, C. (2001). McDonald’s: “think global, act local”—the marketing mix, British Food
Journal, Vol
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