Channels of Distribution: McDonald’s Essay

Introduction.The issue of this presentation is to discuss the theory of dispersion schema with the underlying real animation examples of McDonalds fast- aliment restaurants. The aim is to discuss McDonalds diffusion channel and the way in which this fast-food restaurant chain bilks its products to the commercialize. In the theory of the Marketing Mix, place ( diffusion) de limitines where the product pass on be sold and how it exit get there. In fact, as noted on www.mcdonalds.com, McDonalds is the leading global food run retailer, with more than than 30,000 local restaurants serving nearly 46 million flock each solar day in 121 different countries.Approximately 80 percent of all McDonalds restaurants planetary atomic number 18 owned and operated by breakaway prerogativers. Furthermore, at the essence of place decisions, Kotler (et al., 2001, p. 513) claims that, retailers, particularly fast foods chains, often state their septette Ps of market to be, that is lo calization, stance, fixture, location, location, location and location. Hence, a retailers location is the key to attracting guests. The costs of the building or leasing facilities ar a major factor on the retailers profits. Thus, range location decisions are among the most all important(predicate) the retailer make (Kotler, et al., 2001, p. 513).Intensive scattering.Distribution arrangements tend to be long term in nature. Because of this time horizon, channel decisions are usually classed as strategic, rather than tactical or operational ones. Many of McDonalds restaurants are open 24 hours per day which satisfies the customers ineluctably and wants, especially for exists their hunger. This kind of distribution strategy is called intensive distribution, means gull the product available for sale through and through all possible channels of distribution. As defined by Kotler (et al., 2001, p. 487), intensive distribution is stocking the product in as many an oppositewise (prenominal) outlets as possible. In addition, this strategy moldiness be designed to reach the consumer wants at anytime and anywhere.Vertical Marketing Network (VMN).A franchise organization, to quote Kotler (et al., 2001, p. 482), is a contractual vertical marketing network in which a channel member called a franchiser links several stages in production-distribution surgical operation. McDonalds has adopted the go- fast(a)-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, McDonalds caters to a large consumer market with varying tastes and thus back endnot afford to inject products without familiarizing itself with provincial preferences in food.For this reason, McDonalds distributes its products in foreign and domestic locations with the assistant of franchisers who are well aware of what full treatment in their country. Moreover, these franchisers als o provide penetration to the company on its diverse customers, and helps McDonalds achieve its vision of being the humankinds best quick service restaurant experience. In brief, this is an extremely legal distribution method since it helps in providing people with the kind of products they desire, maintaining the franchise reputation spherewide.To shape up repeat customer visits, McDonalds is increase the efforts to ensure the restaurant interiors and exteriors are cleared and welcoming. Moreover, McDonalds intends to regain the status as the gold standard for clean restaurants. Furthermore, McDonalds is giving the commercial enterprise a zippy edge in many places by rebuilding, renovating and re-imaging the restaurants. The McDonalds experience abroad demonstrates that doing such substructure result in improved gross sales and profitability as stated on www.mcdonalds.com. McDonalds ensures consistent products by arbitrary either stage of the distribution. In addition, regional distribution centers 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 kindred 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, McDonalds adopted this setting channel fair game as a view and wherefore wants to be located near its competition. On the other hand, McDonalds uses essentially the same competitive strategy in every country, the company wants to be the first in the market and establish the brand as rapidly as possible by advertising very heavily. This effective distribution strategy (place) has helped McDonalds develop a strong market share in the fast-food market around the world. Moreover, according to Kotler (et al., 2001, p. 513) stores mustiness have a planned automatic teller ma chine that suits the target market and moves customers to buy. In addition, McDonalds has pre-determined the locations for many of its stores to help reach a variety and diverse population.Conclusion.In conclusion, McDonalds has an intensive distribution process which is a credit to their Marketing department. As businesses and other organizations move forward, the challenge of making their products and service readily available to customers around the world will become much more difficult and complex. Marketers responsible for developing and managing the marketing channels needed to meet these customer demands in the global market will need all the help they can get. McDonalds has implemented a palmy distribution strategy in which other companies should follow. Adopting a marketing strategy that openly focuses on distribution (place) on location of stores, has helped make McDonalds the succeederful business it has become is a definite success story.ReferencesKotler, P., Brown, K. , Adam, S., Armstrong, G., 2001. Marketing, 5th Edition, The McGraw-Hill Companies, New York.http//www.mcdonalds.com/