McDonald's Market Segmentation, Targeting, and Positioning
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McDonald's is a fast-food behemoth and one of the world's most well-known burger brands. McDonald's generates a brand image by responding to its consumers and modifying its marketing and communication techniques regularly. McDonald's must constantly change since it confronts intense competition from rival fast-food restaurants throughout the world. This article will demonstrate how McDonald's is categorized in the fast-food sector, as well as its target markets and selection process.
Segmentation is the process of separating a population into groups based on particular traits, while targeting is the process of selling items to particular groups found as a consequence of segmentation. The term "positioning" refers to the process of selecting the marketing mix that is most suited to the target client group. McDonald's employs adaptable product positioning, which entails the corporation redefining products and services regularly in response to market developments.
Mind Map
Following is a mind map of McDonald's segmentation, targeting, and positioning to get a visual representation of the segmentation for better understanding. McDonald's is one of the leading fast-food brands that work with market trends and provides what is most asked for. McDonald's continuously changes its segmentation, targeting, and positioning strategies to have a better growth rate and stay up to the trends.
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Market Segmentation of McDonald's
It is important to make a marketing plan because it is important to understand the company's target clients for better communication and marketing. It's easier to communicate with a consumer base after you've figured out who they are. This turns into the most successful advertising to the consumer base imaginable. McDonald's divided their items into categories based on psychographic, behavioral, and demographic factors. Children, learners, families, and businessmen are all targets for their products. McDonald's targets these market sectors because of their enormous size, as well as the projected growth rates. These categories are known for having extremely high-profit margins. Segmentation of the Market.
Placement Segmentation
The division of a single market into smaller market segments is known as Market segmentation. This is done to make it simpler to respond to the needs of small categories of customers. As a result, McDonald's may market various goods to groups based on their consumption habits. A segment usually refers to a group of people who have similar traits. Gender, geography, age, lifestyle, economic level, and a variety of other factors are among them.
Behavioral Segmentation
Special occasions, such as children's birthday celebrations, are related to behavioral segmentation. McDonald's attracts local youth clubs and sports teams not just because of its low costs but also because of its convenient location. McDonald's can accommodate a large population of persons and appeals to the younger audience. Their food and promotion are targeted primarily toward retaining a young consumer base.
Demographic Segmentation
McDonald's prefers to concentrate on demographic segmentation as a major segment. This group consists of students, children, and parents. McDonald's provides a welcoming setting for students, allowing them to socialize with their peers. McDonald's is a popular lunch venue for students as well as an after-school hangout. McDonald's scores big with their happy meal and the complimentary toy that comes with it because kids are a significant emphasis.
Psychographic Segmentation
McDonald's needs to create and advertise new goods, as well as modified products with minimal fat and cholesterol, to stay ahead of the competition. This is the current trend, and eating healthy is on everyone's mind in the United States. McDonald's and the fast-food business face fierce competition. With it in consideration, it's time to devise a penetrating pricing plan. This would enable the corporation to launch new and improved items at a cheaper cost than the competitors. This will boost the company's market share and align with its marketing goals. The final objective is to grow sales to increase overall income.
Targeting of McDonald's
Targeting refers to selling things to certain groups determined through segmentation. How well does McDonald's choose and target the proper demographics? Marketers should iterate between establishing corporate culture and having knowledge about segment size and anticipated profitability, according to experts. McDonald's, on the other hand, according to its marketing director, seeks out certain parts of its target demographic and then tailors or positions its products to each category. McDonald's does not employ a Big Mac manager or a salad group, unlike other large packaged goods firms that have brand managers for their numerous products.
Positioning of McDonald's
The term "positioning" refers to the process of selecting the marketing mix that is most suited to the target client group. The positioning matrix indicates that certain combinations make far more sense than others, and positioning is done by manipulating the marketing mix 4Ps. McDonald's employs adaptive product positioning, which entails the corporation redefining products and services regularly in response to market developments.
Table of McDonald's Segmentation, Targeting, and Placement
One of the most important aspects of McDonald's marketing strategy is segmentation, targeting, and positioning. Segmentation is the process of separating a population into groups based on particular traits, whereas targeting is the process of selling items to specific groups found as a consequence of segmentation. The term "positioning" refers to the process of selecting the marketing mix that is most suited to the target client group. McDonald's employs adaptive product positioning, which entails the corporation redefining products and services regularly in response to market developments.
McDonald's segmentation, targeting, and placement are shown in the table below:
|
Type of segmentation |
Segmentation criteria |
McDonald's target segment |
|
Placement |
Reigon |
Domestic and international |
|
Place |
Urban and rural areas |
|
|
Demographic |
Age |
8 – 45 |
| Gender |
Males & Females |
|
| Life-cycle stage |
Married couples, single people, friends, old age |
|
|
Income |
Middle class |
|
|
Occupation |
Students, employees, teachers, regulars |
|
|
Behavioral |
loyalty |
Loyal customers |
|
Benefits |
Cost benefits and time efficiency |
|
|
Personality |
chill & carefree personality |
|
|
User status |
Fast food eaters |
|
|
Psychographic |
Social class |
Lower, working, and middle classes |
|
Lifestyle |
Mainstream individuals |
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Bonus: Examples of Strategic Analysis Tools Used in the Airline Industry
The airline industry is a highly competitive market, with airlines competing fiercely on price, schedule, and route network. But what makes a successful airline? Is it a strong brand, a loyal customer base, or a cost-effective operation? The truth is, there is no one-size-fits-all strategy in this industry. Success depends on a variety of factors, both internal and external.
Here, you'll explore other analytical frameworks for the airline industry: PESTLE, value chain, SWOT, and VRIO. Check out these pre-designed examples from the Wondershare EdrawMax Templates Community.
McDonald's PESTEL Analysis
below. 
below. p>McDonald's is one of the most successful global fast-food chains, but what's the secret to their success? A big part of it is their ability to adapt to changing times.
But even the Golden Arches can't escape the influence of external factors. That's where a PESTEL analysis comes in. It stands for political, economic, social, technological, environmental, and legal. PESTEL is a framework that businesses use to identify and assess the external factors that could impact their operations.
So, what's McDonald's doing about it? McDonald's constantly monitors these factors and adapts its business operations. For example, they may change the menu or pricing strategy to meet the needs of changing consumer preferences. McDonald's may also invest in new technologies to improve its efficiency and sustainability.
Bonus: Four More Types of Analysis of McDonald
McDonald's is a strong company, but it's not without its challenges. They should continue to focus on their strengths, explore new opportunities, and address their weaknesses and threats. By doing this, McDonald's can maintain its position as the world's leading fast food chain.
McDonald's does this by expanding its menu to include healthier options. It is a response to the growing health concerns and changing consumer preferences. And they've invested in mobile ordering and delivery apps to keep up with the growing popularity of online ordering.
By taking these steps, McDonald's is showing that it's committed to staying ahead of the curve and meeting the needs of its customers.
McDonald's BCG Matrix Analysis
The BCG matrix is a strategic planning tool used by businesses to evaluate their product portfolio and decide which products to keep, grow, or divest. McDonald's uses the BCG Matrix to develop and implement its corporate strategy. The company invests in its stars to maintain market leadership in key product categories. McDonald's also continues its cash cows to generate cash flow for investment and growth.
The Question Marks in McDonald's BCG Matrix include ice creams and hash browns. It means they are not very popular, but the market for these products is growing. McDonald's may invest in these products to expand its market share or discontinue them.
The Dogs in McDonald's BCG Matrix includes apple pies. It means the market for these products is not growing fast. McDonald's could consider discontinuing these products.
McDonald's STP Marketing Model
STP marketing is a way to understand and target specific customer groups with the right messages and offers. McDonald's targets various customers, including families, young adults, and budget-minded consumers. The company also targets specific customer groups with tailored marketing campaigns.
One example of McDonald's STP marketing is its targeting of young adults. Young adults are a primary demographic for McDonald's, as they are more likely to eat out and have disposable income. McDonald's reaches this market segment with various products and promotions, such as its McCafé line of coffee drinks. McDonald's also positions itself as a trendy brand that young adults can relate to.
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Key Takeaways
It has been proven that McDonald's employed four distinct ways to develop its marketing segmentation. Even though each of them has a limited influence, combining them well might result in ineffective marketing tactics. However, these four marketing segmentation techniques might be used for a wide range of consumer items. As a conclusion and for better understanding, consumers can aid any organization in developing a better business strategy, and these tactics are the important parts.
Just like this, you can also make a market segmentation for your business in the easiest and time-saving way with the pre-built market segmentation template and STP analysis template with EdrawMind. It gives you a lot of visually pleasing pre-built template options to choose from.
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