Mcdonald's Pricing Strategy
McDonald’s pricing Strategy Jose J Molina
CHARLA SESSION-REED
MKT 402-Strategic Market Pricing
02/20/2010
How well does the company create value for its market segments? Explain
I have chosen to review the pricing strategy of the fast food company McDonald. I am amaze with the way McDonald’s has dominate the fast food industry. To put it into “marketing speak”, when McDonald’s decided to be the family friendly low cost restaurant in the fast food business, they were deciding on what market position they wanted to own within the fast food market. McDonald’s has created a very good market segmentation to know what customer they will target. McDonald 's target market is every segment of the demography. The segments of the demography are; family life-cycles, gender, age, Nationality, Income, Generation, Race, Children - young adults - adults - seniors Meat eaters - vegans Health nuts - don 't care about grease Overeaters - average eaters - stick figures wealthy - average income - low income - beggars city - country - rednecks - backwoods buck tooters, they market to all segments. When we look many of the fast food companies, we don’t see what we see with McDonald’s. On McDonald’s restaurant you can find wi fi internet, several TV with sports and news McDonald’s has created a great prices for the market segments. They were the first one to come out with the 99 cents value meal deal and now many of the fast food companies have a 99 cents menu.
McDonald’s has used the four P’s of marketing mix (Product, Price, Place and Promotion) very well. I have review and learn about the way that McDonald has use the marketing mix and help them to be successful.
1.Mc Donald Product :value-priced , fast-serviced meal
2.Mc Donald Price: my guess is Value-pricing (offering just the right combination of quality and good service at a a fair price)
3. Place: Strategic location of most Mc Donald fast-food outlet is found in populated and easily accessible areas
CHARLA SESSION-REED
MKT 402-Strategic Market Pricing
02/20/2010
How well does the company create value for its market segments? Explain
I have chosen to review the pricing strategy of the fast food company McDonald. I am amaze with the way McDonald’s has dominate the fast food industry. To put it into “marketing speak”, when McDonald’s decided to be the family friendly low cost restaurant in the fast food business, they were deciding on what market position they wanted to own within the fast food market. McDonald’s has created a very good market segmentation to know what customer they will target. McDonald 's target market is every segment of the demography. The segments of the demography are; family life-cycles, gender, age, Nationality, Income, Generation, Race, Children - young adults - adults - seniors Meat eaters - vegans Health nuts - don 't care about grease Overeaters - average eaters - stick figures wealthy - average income - low income - beggars city - country - rednecks - backwoods buck tooters, they market to all segments. When we look many of the fast food companies, we don’t see what we see with McDonald’s. On McDonald’s restaurant you can find wi fi internet, several TV with sports and news McDonald’s has created a great prices for the market segments. They were the first one to come out with the 99 cents value meal deal and now many of the fast food companies have a 99 cents menu.
McDonald’s has used the four P’s of marketing mix (Product, Price, Place and Promotion) very well. I have review and learn about the way that McDonald has use the marketing mix and help them to be successful.
1.Mc Donald Product :value-priced , fast-serviced meal
2.Mc Donald Price: my guess is Value-pricing (offering just the right combination of quality and good service at a a fair price)
3. Place: Strategic location of most Mc Donald fast-food outlet is found in populated and easily accessible areas
References: http://www.mcdonaldsfranchise.org/mcdonald-franchise-price.php(2010) http://www.mcdonaldsprices.com/(2010) http://foodservice.csnews.com/top-story-mcdonald_s_plans_2011_price_increases_-659.html(2011) http://www.lewisu.edu/mcdonalds/pricevalue.htm(2010)