According to the McDonalds corporate website, McDonalds has been serving food since 1955 (mcdonalds.com). Not only has it been operating here in the United States for the past 57 years, but it has expanded operation abroad as well. So what makes McDonalds so special to have survived this long in the food industry? It is the food, the marketing, or maybe both? This paper will explore the generic and segmentation marketing strategies implemented by McDonalds over the past 57 years as well as assess these strategies for future expansion into different markets.
It is important to clarify what the generic marketing strategies are and what they entail. Mullins and Walker (2010) state that Michael Porter distinguishes three generic strategies: (1) overall cost leadership; (2) differentiation; and (3) focus (p. 227). To explain these three generic strategies a little further, marketingteacher.com defines overall cost leadership as "The low cost leader in any market gains competitive advantage from being able to many to produce at the lowest cost. Factories are built and maintained, labor is recruited and trained to deliver the lowest possible costs of production. 'cost advantage' is the focus" (marketingteacher.com). This is evident in the way McDonalds has maintained a low-cost fast-food service over its history.
[...] It is the food, the marketing, or maybe both? This paper will explore the generic and segmentation marketing strategies implemented by McDonalds over the past 57 years as well as assess these strategies for future expansion into different markets. It is important to clarify what the generic marketing strategies are and what they entail. Mullins and Walker (2010) state that Michael Porter distinguishes three generic strategies: overall cost leadership; differentiation; and focus (p. 227). To explain these three generic strategies a little further, marketingteacher.com defines overall cost leadership as low cost leader in any market gains competitive advantage from being able to many to produce at the lowest cost. [...]
[...] As long as they keep this in mind, they will most likely be around for many years to come. References McDonalds: Our History. Retrieved March from http://www.mcdonalds.com/us/en/our_story/our_history.html Mullins, J. W., Walker, Jr., O. C. (2010). Marketing management: A strategic decision making approach (7th ed.). Boston: McGraw-Hill Irwin. ISBN: 9780073381169. Generic strategies - Michael Porter (1980). (n.d.). Retrieved 14 March 2012, from http://marketingteacher.com/lesson-store/lesson-generic- strategies.html Quintanilla, C. [...]
[...] Here an organization focuses effort and resources on a narrow, defined segment of a market” (marketingteacher.com). In the case of McDonalds, this generic strategy was not implemented considering McDonalds has strived to serve everyone from all geodemographics. Segmentation marketing is directed marketing. Mullins and Walker (2010) state that “Market segmentation is the process by which a market is divided into distinct subsets or customers with similar needs and characteristics that lead them to respond in similar ways to a particular product offering and marketing program” (p. [...]
[...] It is even the case for why McDonalds has spread its operations to focus on other cultures in other markets of the world. To illustrate this point, in 2009, Jillian Madison put together over 40 pictures of McDonalds menu items from around the world. Across Asia, you can pick up a McHotdog Mega breakfast sausage, a potato and bacon pie or even a Shogun burger in Hong Kong. In the Middle-East, you can find a McArabia which is basically a chicken sandwich with Arabic style pita bread or the Recette Moutarde which is a mustard burger on ciabatta bread in Morocco. [...]
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