Marketing is referred to as management process with which movement of goods and services is being done from concept to customers (Goi, 2009). In the present study concept of marketing has been done with respect to Mcdonalds. The product of company taken is Big Mac. The present study entails to understand one specific consumer segment for the product. Further it includes characteristics of particular segment.
Mcdonalds is one of the world's largest chain of hamburger fast food restaurants that is serving 68 million of customers on daily basis in around 119 countries. The company possess more than 36000 outlets across the globe. There are wide variety of products that are being sold by Mcdonalds. One of the most renowned product of the company is Big Mac. It is double layer hamburger that is topped with American cheese, crisp lettuce, minced onions as well as tangy pickles. The major target of this product is youth. With this Mcdonalds is trying to increase attraction of college going students who wants to spent less and get greater quantity of product (Ivy, 2008). In addition to this, the particular segment of customer is self dependent. Thus this can be core meal for them which is available at reasonable prices. The taste of this hamburger has been designed in accordance with the preferences of the youth customers. It has been developed with the intention that as the students may not place big orders thus with Big Mac the youth can spent greater amount of time gossiping with their friends and colleagues. Such characteristics have increased attraction of the youth in the market.
The particular segment that is being targeted by Mcdonalds for its product Big Mac is youth. Firm has segmented the market on the basis of demographic segmentation. It is an essential element of all the marketing departments as the data is available easily and it has huge impact on the buying patterns (Jüttner, Christopher and Baker, 2007). Under this division of market for product is done according to age, race, gender, family size, income as well as education. It has been examined that demographics can be categorized into various market with the aim to assist firm in targeting the customers in an accurate manner. The selection regarding the basis of segmentation is an important decision. This is because it has potential to affect promotional strategy of the organization to a greater extent. The choices of the people who belongs to varied demographic basis perceive product in different manner. Moreover their needs and wants from the product are contrasting.
Here in case of Mcdonalds the segmentation of product Big Mac has been done on the basis of age and income. Age plays an important role in determining whether the firm needs to promote its product online or offline. On the basis of age group Mcdonalds is targeting people with age of 20-30. This majorly includes the youth that are more inclined towards intake of fast food. The development of Big Mac has been done in funky style so that it can attract large customers (Wang and Tzeng,2012). The individuals belonging to higher age group have not been taken into account for the particular product due to the reason that they do not prefer fast food to a greater extent. Thus the target market for Big Mac is young generation who are fast food lovers. The promotion for such market segment can be done through online means as it would assist in covering larger areas within minimal time span (Ataman, Van Heerde and Mela, 2010). The type of people that would be served through Big Mac are technological savvy thus the promotion can be best done through internet that can result in increasing attraction towards the product.
Further under demographic segmentation that market is categorized on the basis of income as well. When the firms are required to devise pricing strategies for their brand then they takes into consideration income level of target people. It includes the people with high income, low income and middle income group. Thus the development of product is done accordingly so that their requirement can be accomplished with effectiveness (Dziri, 2013). In case of Mcdonalds the individuals with middle income are selected. These are the one who are self dependent. In addition to this the market segment is the college going students who have less money to pay. With the assistance of such good this customer segment can be provided with superior quality, greater quantity and economical prices (Figge and et.al., 2002). These attributes are necessarily considered by the customers which would facilitate in satisfaction of their requirements. All such attributes exists within Big Mac product offered by Mcdonalds. The use of ingredients has been done on the basis of preferences and taste of young generation. With this firm can enhance the attractiveness of the product in the mind of target market to a significant level.
Marketing mix is referred to as the set of actions or tactics that can be used by the organization with the aim to promote its brand in the market place. It is considered as business tool that marketers uses in order to develop crucial business decision. The marketing mix tool includes four elements. This involves product, price, promotion as well as place. The expansion of the marketing mix to seven P's has been done in case of service marketing. All the elements of marketing mix has huge impact on one another. Marketing mix facilitates in development of business plan for the firm. In case this is handled effectively results in success of the organization to a greater extent. But in situation when the handling is not done with proper care then such can result in failure of organization. This would later increase the time for the firm to recover from the consequences of failure (Garoufallou and et.al., 2013). It is highly important for the marketers to possess better understanding of the market through research. As such would facilitate the organization like Mcdonalds in developing product as per the specification of the customers. In order to promote the product Big Mac in the market the company needs to develop marketing mix plan which demonstrates the types of product, price, means of promotion as well as channel of distribution. The marketing mix that is best suited for Mcdonalds has been enumerated in the manner below:
This is regarded as item which is seem to accomplish the needs and demands of the customers. It can be tangible good that implies those having independent physical existence. It has been determined that every product possess life cycle which is comprised of various stages. Before the development of product it is essential for the marketer to examine the product life cycle so that its survival can be enhanced in an effective manner. In case of Mcdonalds the product is Big Mac. This has been designed for the target market that includes young generation. This is because it is double layered hamburger that is generally consumed by youth (Olson, Slater and Hult, 2005). The development of product has greater advantage in terms that it is effective in offering quality product and services to the customers in accordance with their requirements. It is essential for the marketers to make determination of time duration that product is likely to exists in the market. The role of product is very crucial and beside this several activities are being carried out. The strategies of promotion is being determined on the basis of product only. Here for Mcdonalds the product is unique in terms that it is able to satisfy the needs of youth by offering them higher quantity of product.
Another major element relating with marketing mix is price. It is the amount which is being paid by the customers for the product. The role of price is significant as assist in making determination of the amount of profit that will be made by the company. This thereby results in affecting in survival of the firm to a greater extent. It is important for the marketer to make determination of such price that suits the target customers. There are several pricing strategies that are being used by organization in order to gain competitive advantage. These are relating with market skimming, market penetration pricing as well as neutral pricing. With the selection of appropriate pricing the company can increase attractiveness of the customers towards the brand. In case of Mcdonalds the Big Mac has been priced slightly low as it major target market is youth customers (Simkin, 2008). Due to presence of self dependent nature there is greater need to provide them with reasonable prices of the product. The market targeted here is one which highly depends on pocket money for satisfaction their needs. Thus for them quality, quantity and price plays a very crucial role. While setting the price the marketer needs to examine the value of the product that is being perceived by the customers. As such it would act as an aid in determining true value of the offerings made to the target market.
Promotion is regarded as the technique that is used by the marketer in order to promote the product among various parties. It includes activities such as advertising, sales promotion and personal selling. The marketers makes identification of the promotion method that best suits the needs of the customers. Thus it results in creating awareness among the target market to a greater extent. It has been examined that different promotional tool have varied merit and accordance with it the selection of best is made. In the present case the promotional tool that would be used by Mcdonalds includes advertising. This can done on internet and other social media marketing tools in order to increase knowledge of the youth regarding Big Mac. It is important for the marketer of Mcdonalds to design advertising in a manner that it does not hide essential aspects relating with the product (Ingram, 2014). As in the present era people have become more health conscious. Thus it is of greater importance for company to reveal the facts regarding the ingredients that have been used in Big Mac. This is with the aim to build trust in the minds of target market. Further this would act as an aid in increasing sales as well as revenue of the business to a significant level.
It is regarded as the location where the product can be accessed in an effective manner. As the target market for Mcdonalds is college going students thus it becomes essential for the organization to pay attention towards the decision regarding the place. There are several strategies that relates with distribution which includes intensive distribution, selective distribution, exclusive distribution as well as franchising. For Mcdonalds the distribution can be done by selling the product at different outlets of the company. The franchise system is best suited in fulfilling the requirements of the market to a significant level (Segmentation, Targeting, and Positioning, 2014). Further it has significant role in attracting the target market to a greater extent. The location at which the product is being sold needs to be accessible by those from whom it has been designed. The Big Mac is developed for students who are college going. Thus from them the most accessible place would be college campus where large number of target market can be attracted. This would assist Mcdonalds in increasing its sales and profitability to a significant level.
It can be concluded from the study that Mcdonalds is marketing its product Big Mac. For this segmentation is done on the basis of income and age. Further it has been inferred that this includes the young generation people who are more fast food lovers. Marketing mix for Mcdonalds product has been determined which includes decision regarding product, price, place and physical distribution of Big Mac. It is important for marketer to carry out effective market research so that decision making can be done in an effective manner.