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Example research essay topic: Promotion And Pricing Analysis Mcdonalds - 1,133 words

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Promotion and Pricing Analysis Paper McDonalds The McDonalds company is the largest fast-food restaurant chain the USA and around the globe that provides various foods to a great number of Americans. In the following essay I am going to speak about promotion and pricing of McDonalds in the USA. The reasons why McDonalds uses various means of promotion advertisement in my personal opinion are the following: The individual customer needs are better met at a profit New Ideas are promoted in the minds of consumers. Winsome marketing mix strategy is developed. (Baby boomers, echo baby boomers, etc. ) Efficient allocation of corporate resources based upon attractiveness of individual segments.

McDonalds attempts to use its marketing promotion and pricing strategy globally to assure the uniformity of profits and better acceptance of McDonalds around the world for the equal treatment in price and promotion. Speaking about pricing of McDonalds, one should remember that the economists even developed a Big Mac index that assesses price-parity and the exchange rate around the world based on the price of a big mac of McDonalds in any given country (Margust, 85). In other words if the weighted average price of Big Mac costs in the US around $ 3. 5 it is estimated it should cost the same price everywhere. Thus if in Japan it costs some X Yen which if exchanged for the US dollars equals $ 4 per big Mac, it usually means that Yen is overvalued, because the X number of yen should equal $ 3. 5 based on the Big Mac index parity theory. The McDonalds corporate on the other hand believes that it would be much better welcomed by any country if the prices of Big Mac or other hamburgers are similar. Speaking about the promotion strategies, I should note that McDonalds uses currently the Uniform Mm Im loving it advertisement not only in the USA but also around the globe.

In order to appeal to different customer groups, McDonalds utilizes different promotion strategies and media including TV, Radio, Print, let alone internet and various donation-promotion strategies (Margust, 87). The radio is probably the most widely used mean of promotion for McDonalds around the globe. To the best of my knowledge, every single second, somewhere around the world, one can hear McDonalds advertisement on the radio. Usually, McDonalds does not advertise one single hamburger or French fries, but rather the whole fast-food service under the brand name McDonalds.

On the radio, the corporation makes extensive use of sound (e. g. the sound of eating delicious fries or cheeseburger, with various yum-yum sounds in the background and the Mm. IM loving it! ! ! statement (which substituted the well known did somebody say McDonalds? statement) that produces a truly powerful effect on the drivers especially in the morning making them instinctively look for the double arches sign on the highway (Thomas, 40).

The McDonalds commercial is aired on the radio from 6: 00 to 9: 00 am hoping to lure some people into the restaurants in the morning for breakfast, while stressing the presence of Mc Coffee and Mc Muffin which produce the sweet and tasty Mc Duet (or breakfast in other words) for the drivers. The television advertisement of McDonalds is more family-and kids-oriented and aims at creation of the cozy atmosphere in the minds of people. The TV makes great use of colors and actions associated with happiness, free choice and freedom. It is precisely on the television that they speak about various toys that come with the Happy Meal menu intended for kids at McDonalds. the time when McDonalds is advertised is at about 2: 00 - 5: 00 pm, the time when kids after school watch their favorite Spy kids, spiderman, or batman cartoons. The McDonalds on the other hand claims to give kids various toys of spiderman or batman with the Happy Meal at McDonalds (Margust, 90).

The print advertisement of McDonalds is much more modest compared to the radio and TV ads. Usually, McDonalds uses various newspapers for coupon purposes that provide additional hamburger or a free coke with the purchase of one Mc Menu. It should be noted that McDonalds does not provide any monetary incentives but is rather willing to give more food for the same price. In the magazines Mcdonalds oftentimes posts various articles that although speak about the need for healthy food and calories and at first do not directly advertise McDonalds still promote this service indirectly, when for instance mentioning the healthy foods at McDonalds like Mc Salad (Thomas, 43).

The McDonalds corporation uses almost every food or nutrient-related magazine for its advertisements. For instance the latest print advertisement speaks about McDonalds attempt to help unprivileged kids around the world by donating all the money that proceed from the sales of the French fries on November 20 th, 2003. So, those who want to help the kids still have time to eat at mcdonalds and feel like helping the kids around the world without much realizing that such seemingly altruistic act was nothing more but another advertisement trick of McDonalds. In conclusion I would like to note that typically products / services (like the fast food service by McDonalds) undergo the four stages in their lives: introduction, growth, stabilization, and decline.

This is typically appropriate for a limited market that after a certain period of time saturates, and loses interest to a given product or service contributing to the decline stage of the service / product to happen. In case of McDonalds I would like to note the stages cannot so easily be applied. After the saturation of the US and Canadian market, in theory McDonalds should experience the decline stage, especially taking into account the health-awareness of the Americans/Canadians. Yet Mcdonalds did one more step and entered the markets of Europe, Asia, former USSR, Australia, Africa and Latin America whose markets for fast food industry are currently underserved. Therefore, the decline in McDonalds popularity in the USA is compensated by the increase in popularity in Africa, former USSR and Latin America, thus instead of contributing to the decline stage that would happen to McDonalds should it operate only in the USA does contribute to the growth stage on the global fast food market. The attempt to create some healthy products (like Mc Salad) is another McDonalds attempt to revitalize its popularity in the USA as well as in other health-conscious markets around the globe, postponing the decline stage (and thus reduction of prices) of McDonalds service to an indefinite period.

Bibliography: Clark Maxam, Marketing Strategies, McGraw Publishers, 2001. Jeremy Ridenoir, The Market we live in, Prentice Hall, 2002. Jonathan Thomas, Macdonalization of the modern society, Oxford University Press, 2001. Daniel Margust, The golden arches stretch abroad, Harvard Business Review, July 20 th, 2002.


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