McDonald’s 7Ps of Marketing

McDonald’s 7Ps of marketing comprises elements of the marketing mix that consists of product, place, price, promotion, process, people and physical evidence.

Product Element in McDonald’s Marketing Mix (McDonald’s 7Ps of Marketing)

McDonald’s restaurants offer a substantially uniform menu, although there are geographic variations to suit local consumer preferences and tastes. The fast food chain sells a wide range of fast food products such as hamburgers and cheeseburgers, Big Mac, Quarter Pounder with Cheese, Filet-O-Fish, several chicken sandwiches, Chicken McNuggets, wraps and french fries.

The company also offers salads, oatmeal, shakes, McFlurry desserts, sundaes, soft serve cones, pies, soft drinks, coffee, McCafé beverages and other beverages.[1]Although, the company has long announced its pledge to increase the nutritional value of its meals, McDonald’s foods widely remain to be perceived as unhealthy.

Place Element in McDonald’s Marketing Mix (McDonald’s 7Ps of Marketing)

There are 40,031 McDonald’s restaurants in 119 countries.[2] As of December 2021 in total 37,295 stores, or 93%, were franchised. According to its aggressive expansion business strategy, the company aims to establish its presence in urban, as well as, in rural areas. The company states that “McDonald’s looks for the best locations within the marketplace to provide our customers with convenience. We build quality restaurants in neighbourhoods as well as airports, malls, tollways, and colleges at a value to our customers”.[3]. Generally, major fast food restaurants tend to cluster and in most locations, where there is a McDonald’s, there is also a Burger King right across the street.[4]

Price Element in McDonald’s Marketing Mix (McDonald’s 7Ps of Marketing)

McDonald’s pricing strategy comprises the following:

1. Economy pricing. McDonald’s follows cost leadership business strategy and accordingly, its foods and drinks are offered for competitive prices. The fast food chain offers customers the possibility to dine for a fraction of costs that are charged by the majority of other restaurants. For example, “Dollar Menu and More” offers food that cost up to USD5[5].

2. Psychological pricing. Psychological pricing strategy is also placed at the core of McDonald’s pricing strategy. Specifically, the fast food chain uses Price Point Perspective (PPP) 0.99 Cents not 1 US Dollar extensively. For example, as of June 2022 in UK Chicken McNuggets Sharebox costs GBP 4,99 and small fries cost GBP 0,99.

McDonald’s Corporation Report contains a full analysis of McDonald’s marketing mix (McDonald’s 7Ps of marketing) and McDonald’s marketing strategy in general. The report illustrates the application of the major analytical strategic frameworks in business studies such as SWOT, PESTEL, Porter’s Five Forces, Value Chain analysis, Ansoff Matrix and McKinsey 7S Model on McDonald’s. Moreover, the report contains analyses of McDonald’s leadership, organizational structure and organizational culture. The report also comprises discussions of McDonald’s business strategy, ecosystem and addresses issues of corporate social responsibility.

[1] Annual Report (2021) McDonald’s Corporation

[2] Annual Report (2021) McDonald’s Corporation

[3] Real Estate: McDonald’s Restaurant Development (2016) McDonald’s, Available at: http://www.aboutmcdonalds.com/mcd/franchising/real_estate.html

[4] Talwalkar, P. (2012) “Why are McDonald’s and Burger King usually located near each other? Fast food location game theory” Mind Your Decisions, Available at: http://mindyourdecisions.com/blog/2012/10/23/why-are-mcdonalds-and-burger-king-usually-located-near-each-other-fast-food-location-game-theory/

[5] Peterson, H. (2016) “McDonald’s is getting cheaper — and that should terrify Burger King and Wendy’s” Yahoo! Finance, Available at: http://finance.yahoo.com/news/mcdonalds-getting-cheaper-terrify-burger-160555106.html