The Marketing MixThe Four P’s

The MixThe Marketing Mix is divided into 4

categories.

ProductPricePlacePromotion

A successful marketing mix is one that combines the Four P’s of marketing!

When the Mix is off…

Product MixThis includes research, development,

packaging and branding.To help introduce Pizza to its brand,

McDonald’s added the famous “Mc” prefix. Thinking it would work similarly to earlier delicious triumphs.

Like…

Or…

And…

But…McDonald’s makes burgers and pizza was a

poor menu fit.The packaging was similar to standard pizza

boxes and protected the product – that part was successful.

Correct Research?Pizza was the companies biggest competitor.They developed technology (new ovens &

recipes) to make pizzas faster.And sample audiences gave the pizza

favorable reviews.

If it was good enough for the scouts…

Promotion MixThis mix involves advertising, sales promotion,

and publicity (Business magazines, television news reports, and newspaper articles all did stories about McPizza).

McDonald’s was given every opportunity to explain how the burger barons were becoming pizza pioneers.

CommercialsThese ads tried to generate excitement and

sales promotions included free samples, launch parties, and store banners.

Circa 1989: http://www.youtube.com/watch?v=Zav57FjHXJA

Canadians will eat anything when watching hockey: http://www.youtube.com/watch?v=W2T6YjiBbxk

PricingA small McPizza = a burger and fries in $A larger was similarly priced to Domino’s &

Pizza Hut

They had spent a great deal of money on the development that they banked on their brand name to bring in the customers. Instead they had another…

McHulaThe first veggie burger made from real fruit!

The Arch DeluxeFor the high class McDonald’s diner…

Oh that McLeanI wonder what happenswhen you take all the fat out of beef…

I’ll give them one thing, they aren’t afraid to try new & ridiculous ideas

Place MixThis includes: physical distribution, storage,

inventory management, and channel selection.

McDonald’s Restaurants are big places. They work on efficiency within cramped quarters.New ovens take up spaceNew Pizza Prep stationsMore storage for new ingredients

The Drive-ThruMcDonald’s pioneered the fast food service

idea, but instead of waiting at the window you had to park and wait for pizza…

McPizza was a huge McFail

But that doesn’t keep Ronald downThey continue to seek outnew innovations & ideas for specific locations:

New ProductsNew pricing strategiesNew PromotionsNew distribution

The McBrat

McLobster

Japanese Advertising…

What if Turkey had invented it firsthttp://

www.youtube.com/watch?v=wo85WW3B4Mw

But if you can’t beat’em, buy’em