McDonalds is a world renowned fast food brand that has been around for over what looks to be almost a decade(86yrs), their marketing strategy spreads across multiple channels however their most concrete Marketing investment has always been location . So profound that even real estate procurers have a McDonalds strategy . The strategy in scope :Owning Locations . They’re state of the art high productivity assembly line strategy may be what made them stand out in the formative years of the company but these days and for this article we’ll be looking at their land ownership status from a marketing perspective .
Site Selection
Target sites are selected based on dense foot traffic, high visibility, and local demographic purchasing power.The company utilises advanced GIS data (such as mapping software) to evaluate traffic flows, drive-thru viability, and proximity to competitors. Let alone property valuation techniques that determine the growth potential of a specific area . They’re so prolific within their geographic segmentation that it immediately affects property valuations around a McDonalds site .
On a marketing level this expansive strategy with consistent standardised value propositions , reasserts their wholistic business model where selections relative to Demographic determinants affect their overall return ;as premium clients in affluent areas can spend more, more frequently .
Their visibility strategy assures that even if you weren’t headed in their direction you still might be enticed to get a big mac through using their numerous live locations as one would a highway billboard …they have those too .
Foot traffic : foot traffic is another reason why McDonalds site selection is so world class , moving to highly dense areas ensures market capitalisation of middle income communities . This done numerous times over different parts of the world is part of the reason their returns and influence is extensive
Hub-and-Spoke Distribution
Locations are strategically clustered around major supply chains to optimise delivery costs and maintain quality control. This is where the logistical elements that pertain to business operations affect your standardisation . In simple terms McDonalds creates culture ; if you’ve ever heard of the Big Mac index you may know how consistent their service operations and distribution operations are ,so much so that it establishes Purchasing power currency valuations .A takeaway here would be : hub and spoke distribution + standardisation = cultural influence . Thus you can ascertain it has currency influence as well .
This equation is the reason why countries and areas alike seek to get their books in order so that investment drivers such as McDonalds establish footholds. Creating global acclaim to their currency and cross recognition . When you buy into McDonalds you buy into a global franchise .
In Conclusion
The McDonalds strategy is an ideal model for brands that aim to build social culture whilst maintaining profit margins and scale . It is a reflection of innovative adaptability accompanied by standards in operational proficiency that actually make them a driving economic influence .
