McDonald's Distribution Strategy: A Global Success Story

Intro

The core of this discussion is to talk about the theory of circulation technique with the underlying genuine life examples of McDonald's lunch counter in Australia. To put it simply, the goal is to discuss McDonald's circulation channel, the method this snack bar gets its items to the marketplace. Nevertheless, this presentation will show that McDonald's circulation technique works in lots of cultures. In the theory of marketing mix, location (circulation) figures out where the product will be offered and how it will arrive.

In fact, McDonald's is the leading global foodservice seller, with more than 30,000 regional dining establishments serving almost 46 million individuals each day in 121 various nations.

Approximately 80 percent of all McDonald's dining establishments worldwide are owned and run by independent franchisors. Moreover, at the essence of location decisions, Kotler (et al., 2001, p. 513) claims that, "retailers, particularly image junk foods chains frequently specify their 7 P's of marketing to be, that is place, place, place, place, location, area and area.

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" Hence, a seller's place is the crucial to attracting clients. The expenses of the structure or leasing facilities is a major element on the seller's profits. Therefore, website location choices are among the most important the seller make (Kotler, et al., 2001, p. 513).

Extensive Circulation

On the other hand, McDonald's opened its very first restaurant in Australia in December 1971. Today there are more than 690 restaurants throughout Australia and serving in excess of one million customers daily and employing over 55,000 staff. For that reason, you can find them all over in Australia, where some of the McDonald's are open 24 hours daily which please individuals's requirements and desires, especially for exists their hunger.

This type of distribution technique is called "extensive distribution", implies marking the item offered for sale through all possible channels of circulation. As specified by Kotler (et al., 2001, p. 487), "extensive circulation is equipping the item in as many outlets as possible." In addition, this method must be designed to reach the customer wants at anytime and anywhere.

Vertical marketing network (VMN)

Furthermore, to quote Kotler (et al., 2001, p. 482), a franchise organization is "a contractual vertical marketing network in which a channel member called a franchisor links several stages in production-distribution process". McDonald's has adopted the service-firm-sponsored retailer franchise network, in which a service firm licenses a network of retailers to bring its service to consumers (Kotler, et al., 2001, p. 482). Nevertheless, McDonald's caters to a large consumer market with varying tastes and thus cannot afford to introduce products without familiarizing itself with provincial preferences in food.

For this reason, McDonald's distributes its products in foreign locations with the help of franchisors who are well aware of what works in their country. Moreover, these franchisors also provide insight to the company on its diverse customers and helps McDonald's achieve its vision of "being the world's best quick service restaurant experience." In brief, this is an extremely intelligent distribution method since it helps in providing people with the kind of products they desire, maintaining the franchise reputation worldwide.

To encourage repeat customer visits, McDonald's are intensifying the efforts to ensure the restaurant interiors and exteriors are clean and welcoming. Moreover, McDonald's intends to regain the status as the gold standard for clean restaurants. Furthermore, McDonald's are giving the business a fresh edge in many places by rebuilding, renovating and re-imaging the restaurants. The experiences in Australia demonstrate that doing such can result in improved sales and profitability.

McDonald's ensures consistent products by controlling every stage of the distribution. In addition, regional distribution centres purchase products and distribute them to individual restaurants. On the other hand, when designing its channels, a company needs to consider competitors' channels. Yet, it may want to compete in or close to the same outlets that carry competitors' products (Kotler, et al., 2001, p. 486). Thus, food companies want their brands to be displayed next to competing brands. Meanwhile, McDonald's adopted this setting channel objective as a view and therefore wants to locate near KFC. On the other hand, McDonald's uses essentially the same competitive strategy in every country as be the first in a market and establish the brand as rapidly as possible by advertising very heavily. However, the strategy has helped McDonald's develop a strong market share in the fast-food market around the world.

Moreover, according to Kotler (et al., 2001, p. 513) store must have a planned atmosphere that suits the target market and moves customers to buy. In addition, McDonald's determine the locations for reaching a widely spread population. Hence, McDonald's are turning their stores into theatres that transport customers into unusual, exciting shopping environments that designed to meet the taste of target markets. For instance, McDonald's Blacktown is one of McDonald's Australia's newest restaurants, it has create a locate playgrounds for children to enjoy.

Conclusion

In conclusion, McDonald's improve the frequency of their deliveries, form relevant partnerships and implement alternate distribution strategies to effectively capture market and build international brand name based on hygienic, healthy, appetizing fast food consistently worldwide. Adopting market study and focusing on location of franchise, MacDonald's ensures market niche for food product distribution is a definite success story.

References

• Kotler, P., Brown, K., Adam, S., & Armstrong, G., 2001, Marketing, 5th Edition, Pearson Education Australia, Frenchs Forest, NSW http://www.mcdonalds.com