The company know that items on the menu will vary in popularity. Their ability to generate profits will vary at different point in the products life cycle.
All products sold via Mc Donald’s will go through the product life cycle.
Introduction - new product launched so no profit is being made as company are creating awareness of the new product.
Growth – this is when customers start to buy the product if they feel the product is good.
Maturity – this is when product is at its peak of selling and people are buying it the most at this period of time.
Decline – product isn’t selling as well profits are decreasing, company could introduce pricing strategies or re modified or removed from market.
Happy meal – this is aimed at younger children such as 5-10 year olds as the meal is smaller, includes a toy and will cheaper for parents to buy for children. The meal is priced at £1.99 as this low price will attract parents and the children will be getting a meal plus a toy for a very reasonable price.
Price:
The customer’s perception of value is important and should show the company what the price of the item should be charged at. Customers will draw a line on how much they will pay for a product and how much the deem it to be worth.
If the company price the product at a low price, the customers could grow a mental picture that the quality of the product has been compromised. When deciding on the price of a product to be fully aware of the brand and its integrity. Furthermore price reductions mean that competitors can match the price, which will result in no extra demand meaning the profit margin will be reduced without increasing sales. Mc Donald’s prices vary depending on the type of meal or item the customer is requesting. The company look to have low prices and various pound saver meals as this will attract customers looking to save some money. Happy meals are £1.99 for children compared to a Mc chicken sandwich priced at £3.49 so depending on the type of meal being asked for the price will increase or decrease.
Promotion:
McDonalds use many different methods of advertising.
These methods could include:
Television
Radio
Cinema
Online
Posters
Newspapers
Other promotional methods can include:
Sales promotions
Merchandising
Television advertising makes people aware of the company’s products and press advertising provides more detail. This may be supported by in store promotions to get people to try the product and promotional vouchers to keep them buying the product..
Key objectives of advertising for McDonald’s is to make people aware of the new item, feel positive about it and remember it. The more McDonald's knows about the people it is serving the more it is able to communicate messages which appeal to them. Messages should gain customers' attention and keep their interest. The next stage is to get them to want what is offered.
McDonalds try and promote a positive image of the company by signing up to help sponsor the world cup promoting the businesses wide range of foods from big Macs to salads showing the company doesn’t just sell unhealthy food they also show salads and low fat meals to promote the corporals responsibility is the customers and there welfare.
Place:
The place might not just be the physical location of such McDonald’s products and stores. It can emphasise the management of a range of processes involved in bringing the products to the end consumer. Mc Donald’s is located in various places all over the world ranging from shopping malls which will give family’s and others to have a meal while out shopping to save them time cooking this is the same reason why some Mc Donald’s are located on high streets where numerous pass every day. Mc Donald’s aim is to produce quality food at the quick speed, one way they do this is through drive troughs as customers drive to the window order and then drive to the window in front and collect food as quick as possible.
The company use the aspects of the four p’s effectively together as stores are located on high streets where they promote offers of the menu at a reasonable price.
