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                                                     Table of Context

1.      McDonald’s Segment and target                                                                    Page 2

2.      McDonald’s Competitive advantages                                                            Page 4

3.      McDonald’s pricing                                                                                        Page 6

4.      McDonald’s Distribution and channels                                                          Page 7

5.      McDonald’s B2B, B2C                                                                                  page 9

6.      Starbucks marketing mix                                                                                page 12

7.      References                                                                                                      page 14

                                                   1. D) Segment & Target

Nowadays it’s hard to McDonald’s meet all market needs, so it has to focus one a group of market we called segment and try to provide goods or service according to your target habit ,  there are a lot of  ways to segment market like physiographic , Behavioral and demographic which McDonald’s uses    

McDonald’s in US has segmented their products by demographic, psychographic and behavioral segment. They segmented their product and position their product according to kids, student and family.

 McDonald’s segmentation has been done according to three basic

1.      Demographic: The main target segments are children, youth and the young    urban family. If they take children into consideration, children are more attracted towards toys and delicious meals including today’s youth prefer such places for their entertainment children attract to McDonalds because they offer toys in each Happy Meal, there are many toys like Walt Disney characters, it also provides special facilities like playing place where children can play arcade games, air hockey, etc. This strategy is targeting in making McDonalds a fun place where you can enjoy both playing and eating. For families it has made different outlets and meals which are suitable for takeaways. McDonald’s has made its environment for students of school to hang out with their friends and can get their lunch at McDonald`s

2.      Psychographic: Psychographic segmentation is based on personality, motives, and lifestyles. McDonald`s shows that they really care and know their customers because they want to delight the customer. For example McDonald`s change to the convenience and lifestyle of the Indian consumers because Indian people has a huge vegetarian population so McDonald`s invented with a different and new product line which includes items like McVeggie burger and McAlootikki Burger. They also made McDonald`s as a place to relax in India.

Target:

The main target is parents with young children, young children, business customers, and teenagers. Perhaps the most obvious marketing for McDonald`s is its marketing towards children and the parents of young children. Ronald McDonald was first introduced in 1963 and marked the beginning of their focus on young children as a critical part of their ongoing business. Parents like to visit McDonald`s because it is a treat for the kids, and the kids enjoy the cartoon like atmosphere. McDonald`s also targets business customers as a part of their core business

The target market of McDonald`s is children, youth and adolescents, men and women, students and families. They make McDonald`s as a place to gather, relax and even entertainment. McDonald`s has been directed as a family restaurant. Children are starting position by introducing a new ad with product Happy Meal toys. Youth and adolescents make McDonald`s a gathering place, and with the slogan "I`m lovin `it", McDonald`s positioning place for all ages.

1. A) Competitive advantage

Nowadays every customer can get service or product from different resources, the smart and success business finds the way to gain customer over competitors and this operation called competitive market strategies.

Competitive market strategies it’s a strategy that strongly position the company against competitors and give company the strong possible strategic advantages.

What we’ll do is to show McDonald’s advantages and compare between other firms then give another idea we think it will help McDonald’s too.

 McDonald’s strive to be cost leaders in market and offer product that other competitors can’t be achieved, in order to do this you have to export your product by lower cost and best quality and to make everyday operation in lowest cost.

Other competitive advantages is speed delivery of MacDonald’s food, In order to maintain this advantage over other fast food chains, you must make the process of cooking fast and simple, because it’s easy to new employees to learn simple recipe more quickly.

Important advantages that McDonald’s has 33,000 units around the world comparing with Wendy 9.792 stores and Burger King who has 12.512 stores.

The differentiation between product and the variety it has make a strong point to McDonald’s, also the product adaption in different country to meet customer need and want in fact McDonald’s has added Mccafe in many locations, talking about location as point of opportunity, in my opinion McDonald’s can investment place with good price because people know that new project McDonald’s will open the project will make a lot of profit.

McDonald’s Arch Card is a pre-paid card that gives customers a quick and convenient way to pay at McDonald`s and has a free Wi-Fi in over 11,500 restaurants when customer can connect to internet easily.

Acutely in my opinion the best advantages McDonald’s has it’s McDonald’s brand, this brand comes from a lot of experience, research and studies over years, serving around 68 million customers daily in 119 countries it will give McDonald’s strong brand which I think it knows around the world.

All these competitive advantages meet McDonald’s both vision and mission which is to be a fast food restaurant with the best service in the world, keep progressing in a favorable direction as brand and delivers services with superior goods for every customer visit McDonald’s.

                                                1. C) Price of McDonald’s

Many people see McDonald’s as a place to have a meal or snack at a reasonable price. McDonald’s restaurants have an environmental impact as well, and with more than 33,000 restaurants in 119 countries, the cumulative effects are significant.                               Each McDonald’s restaurant is an investor in its community through jobs, purchases and civic leadership. But every McDonald’s is a resource user as well, So McDonald’s continue to work on understanding our impacts and how to manage them more effectively.

Another way to determine their prices in different countries, the easiest way is to look to your competitor’s price then set yours this point consider by McDonald’s in every state, but here we want talk about 3 countries at least and explain another ideas considering competitors price point in every state. The method in set a price is skimming, penetration and status quo. 

The main objective of the Price strategy was to make it very affordable for a family to go out for breakfast, lunch or dinner and not pay a lot of money. McDonald’s achieved this by making happy meals for children that were right price, along with the everyday value meals and dollar menu items. There are over 10 items on the dollar menu all day which makes it very easy for customers to swing by for a quick bite to eat. McDonald’s also runs many different specials for breakfast where they will make different breakfast sandwiches 2 for $3. By doing this it allows for parents to feed two children for the price of one. It also allows for more hungry people to make sure that they will be full after they have eaten two sandwiches.

That was about USA but what about other country, for example in Lebanon the price was set according to attitude of citizen there, they love being from upper upper social class, so you will see responsible price but higher than competitors, in UAE McDonald’s set high price too because the salary and wages in UAE make customer pay whatever they want, another point in UAE the growth of tourism and when the upper social class visit country they will pay for high price.

McDonald’s restaurant on Egypt represent low price, this thing return to many factors, the income of employees in Egypt does not allow them to purchase expensive goods, so McDonald’s need to adjust with this wages and salary, also the population of Egypt help McDonald’s to maximize profit even when price is low, because when cost is low demand will raise then more money will come.

                                                      1. B) Promotion and Distribution

The promotions aspect of the marketing mix covers all types of marketing communications.

The skill in marketing communications is to develop a campaign which uses several of these methods in a way that provides the most effective results

First thing jump to mind when we see promotion is advertising but is not everything, for example we have sale promotion, sponsor, event and exhibitions.

Ad is first thing will talk about, McDonald’s advertising focus has been primarily on the ingredients that go the food and where they come from McDonald’s vice-president said.

McDonald`s has successfully managed to create a positive image of its brand by television commercials, newspapers and magazines.

The imagery and messaging will also appear on McDonald’s delivery trucks when every people can look at it even if they don’t have intent to pay it.

Sale promotion are made to gain new customer so usually it will be for short-termed specific strategies, however it made also to build strong ration with current customer, simple example is gifts.

Event and sponsors while event is also a big opportunity for McDonald’s, FIFA World Cup this event are waited by very number of people around world.McDonald`s try in this atmosphere to target mass audience. For example in World cup 2010 McDonald sponsors the official restaurant of the 2010 FIFA World Cup South Africa. And showed match over more than 32,000 restaurants in more than 100 countries made a strength promotion activities