Ansoff Matrix of McDonald’s 

McDonald’s is an American retail fast-food chain multinational brand. Maurice McDonald, Ray Kroc, and Richard McDonald founded the chain fast-food company in 1940. Today, we’ll discuss the Ansoff matrix of McDonald’s; four growth matrix strategy quadrants; market penetration, market development, product development, and development of Ansoff matrix company example.

Elements of Marketing Penetration Strategic Campaigns of McDonald’s

• Offering McDonald’s Sports Awards to the sports professionals
• Sponsorin mega sporting events
• Advertising in the space by collaborating with NASA
• Influencers marketing
• Celebrity endorsement from world’s leading celebrities
• Brand ambassadors

Top Selling Markets and Geographical Regions of McDonald’s

• Russia – 1.97%
• Australia – 2.56%
• Brazil – 2.67%
• UK – 3.32%
• Canada – 3.78%
• Germany – 3.84%
• France – 3.88%
• China – 7.05%
• Japan – 7.76%
• USA – 36.92%

Latest and Best Collection Offers of McDonald’s

• Beverages
• Sweets
• McCafe Bakery
• McCafe Coffe
• Happy Meal
• French fries
• McNuggets
• Fish and chicken sandwiches
• Burger and breakfast burger

The Ansoff matrix of McDonald’s would focus on the four growth matrix strategy quadrants; market penetration, market development, product development, and development. Here’s McDonald’s Ansoff matrix company example as follows;

Ansoff Matrix of McDonald’s 

Let’s discuss the four growth matrix strategy quadrants in the Ansoff matrix of McDonald’s and they’re as follows;

Market Penetration Strategy of McDonald’s

The market penetration growth strategy quadrant in the McDonald’s Ansoff matrix business example as growth matrix strategy has the lowest risk. It is because here the fast food chain brand sells its current products and services in the existing customer market. However, the fast-food market is growing, and the market penetration growth strategy is possible.

I-Diverse Menu

McDonald’s offers various types of food items in its diversified menu comprising French fries, salads, drinks, burgers, and other items depending on the location and customer requirements.

II-Drive Through

In order to make the shopping experience convenient and easy, McDonald’s has developed drive-through points for customers. It allows customers to shop and get their meal while driving and they don’t have to leave the vehicle.

III-Home Delivery

McDonald’s has developed an online application for customers to place orders online, and receive their meal at their doorsteps from the nearest chain restaurants of McDonald’s.

IV-Discounts

In order to further penetrate the existing customer market, McDonald’s offers various types of discounts on group purchasing. It allows the company to amplify its sales.

V-Quality Service

The focus and emphasis of McDonald’s is to improve its customer services continuously, and it helps the company to establish customer loyalty.

VI-Smart Pricing

McDonald’s implemented a smart pricing strategy comprising of ending the figure with .99; it became so popular that soon other companies started implementing it.

VII-Aggressive Marketing

McDonald’s runs aggressive marketing and promotional campaigns in order to stay in the minds of customers. The fast-food chain employs various media channels; social media platforms, billboards, TV, and newspaper ads.

Market Development Strategy of McDonald’s

The market development growth strategy quadrant in the McDonald’s Ansoff matrix business example as growth matrix strategy has a bit higher risk than the market penetration strategy. It is because here you expand your market and offer your current product portfolio in the new market. However, you don’t know the culture and response of the new market; that’s what makes it riskier.

I-Global Network

McDonald’s has established a network of more than 40,000 retail fast-food chain outlets in over 120 countries across the world. The company is further expanding its business in new markets across the globe with its existing food menu. However, the retail food chain brand issues franchisee licenses in various markets for the usage of brand names and menus; the parent company earns a significant amount of revenue in return.

II-Customized & Local Products

While expanding McDonald’s business in the global market, the company includes local and customized food dishes on the menu. They’re like McArabia in Saudi Arabia, McAlloo Tikkin in India, and various others. It helps the company to increase the customer acceptance rate in the local market.

Product Development Strategy of McDonald’s

The product development growth strategy quadrant in the McDonald’s Ansoff matrix business example as the growth matrix strategy has higher risk than the market penetration strategy. It is because here you launch a new product service or food menu in the existing customer market. You would have to run new marketing and promotional campaigns for the new product and it makes it riskier.

I-Satisfying Customer Demands

The focus of McDonald’s is to satisfy the demands of customers by offering them desired food items whatever they demand. For instance, a vast majority of the Indian market is vegetarian and they don’t eat beef. McDonald’s changed and transformed its menu relevant to the customer market requirements and included the following;

• Royal Paneer
• McPizza
• McSpaghetti
• Tikki
• McAlloo

II-Portfolio Expansion

Speaking of transforming the menu, McDonald’s has been expanding its menu relevant to the customer demands and requirements. For instance, the fast-food brand added new food items to its menu for the US market; McFlurry, M&M’s, and Oreo McFlurry.

Diversification Strategy of McDonald’s

The diversification quadrant in the McDonald’s Ansoff matrix business example as growth matrix strategy is the most risk growth strategy than all three previous growth strategies. It is because here you launch a new product or service in the new customer market. You won’t know how your new market will react to the new product or food items.

I-Horizontal Diversification

McDonald’s has successfully diversified its business in various categories by launching new products and brands in new markets. For instance, the company McCafe in the European market to compete with Starbucks; launched The Golden Arch Hotel in Switzerland. They both were new initiatives and the fast-food brand pulled it off successfully in those markets.

Conclusion: McDonald’s Ansoff Matrix Company Example Growth Matrix Strategy 

After an in-depth study of the Ansoff matrix of McDonald’s; we have realized that McDonald’s is the world’s leading retail fast-food chain brand. If you are learning about the McDonald’s Ansoff matrix company example; then you should keep in mind four growth matrix strategy quadrants; market penetration, market development, product development, and diversification.