Ch 7 - Business Marketing

Strategic alliance, sometimes called strategic partnership, is "a cooperative agreement between business firms." McDonald's focuses on its strategic alliances with other firms and organizations. Through McDonald's and those cooperative organizations, they standardize the menu, expand the market and improve the value of company.

In this blog, I will analyze the relationships with outcome.


McDonald's Strategic Partnership

Nowadays, It is weird for us to eat burger without Coke beverages. McDonald's is the first fast food chain company who added the carbonated beverages as their main drink serving with burgers. In the business field, the strategic alliance of McDonald's and Coca-Cola is considered as one of the most successful relationships. These two giant cooperations have operated stably for many years. Obviously, McDonald's is the largest consumer of Coca-Cola. Although Coca-Cola sells drinks to other restaurants, its relationship with McDonald's goes far beyond other suppliers. Since Coke is sold in almost twice as many countries as McDonald's, Coca-Cola has also helped McDonald's to set up new operations around the world. 


McDonald's forms another formal alliance with Disney in 1997. Disney is so meaningful to families in terms of entertainment. Meanwhile, McDonald's also targets these kids and families. So it was a great chance for McDonalds to add the company value and promote the company itself. Since these two huge brand made the agreement, McDonald's Happy Meal toy line has tied in the Disney themes or movies. Disney toys brought big merit on Happy Meals and immediately boosted McDonald's sales. Some people even visit McDonald's just for collecting these toys. What's more, these collected Happy Meal Disney toys are sold by auction through the web in the pretty high prices.

Green Strategic Alliance

Strategic alliances with environmental groups increased consumer reliability in green products. McDonald's forms strategic alliance with the Environmental Defense Fund (EDF) to gain endorsements for products or clean up their image.

Ch. 8 - Segment and Target Marketing

McDonald's is one of the good examples for the market segmenting. Deeply focus on its consumers, all the products that McDonald's introduced are segmented according to bases of Demographic, Psychographic and Benefits etc. They have segmented their products and positioned their products according to kids, students and family. Also they haven’t started segment related to breakfast or cafe in every outlet.

In this bolg, I will segment McDonald's on three different bases.

1) Demographic Segmentation:  

McDonalds offers different products like Happy Meal which includes a free toy for kids. For families it has made different meals which are suitable for take-aways and drive-thru. McDonalds has made its environment which is fit for teens and Generation Y, which is mostly students, to hang out with their friends and can get their lunch at McDonalds.

2) Psychographic segmentation:  

McDonalds has adopted itself according to the convenience and lifestyle of the Its consumers. Since obesity become social problem, we lack of healthy and affordable food option. McDonalds came up with different and new product lines, which include items like McWrap and Fruit smoothie, to target the consumers who are health conscious.

3) Benefit segmentation:
Benefit segmentation targets group potential customers. McDonald’s has a Kid’s birthday party package. The package can range from about $5 to $15 per child plus a $50 deposit that is non-refundable if you cancel. Before the party starts, the employees set up the table with party hats and decorations. They take food orders and bring everything out together so no one has to wait. Also, they have playground for kids to have fun. McDonald’s birthday parties become really good deal for the parent-both-working families and families who pursue inexpensive cost.