McDonald's is a fast-food behemoth and one of the world's most well-known burger brands. McDonald's generates a brand image by responding to consumers and regularly modifying its marketing and communication techniques.
McDonald's must constantly change since it is confronted with intense competition from rival fast-food restaurants worldwide. This article will demonstrate how McDonald's is categorized in the fast-food sector, as well as its target markets and selection process.
Segmentation is the process of separating a population into groups based on particular traits, while targeting is the process of selling items to specific groups found as a consequence of segmentation.
The term "positioning" refers to the process of selecting the marketing mix that is most suited to the target client group. McDonald's employs adaptable product positioning, which entails the corporation redefining products and services regularly in response to market developments.
In this article
Overview of McDonald's
First, you can get an overview of McDonald's status as of August 2025. This will help you get a primer on the company's stand before you get into the nitty-gritty of McDonald's segmentation and other market practices.
| Aspect | Information |
| Founded | 1940 |
| Headquarters | Chicago, Illinois, USA |
| CEO | Chris Kempczinski |
| Annual Revenue | US$25.92 billion (2024) |
| Market Cap | US$223.11 billion |
| Key products | Fast food items: burgers, fries, chicken items, beverages, and breakfast menu. |
| Latest Growth | 5.44% YoY increase for Q2 2025 |
| Official Website | www.mcdonalds.com |
Segmentation of McDonald's
It is essential to make a marketing plan because it is crucial to understand the company's target clients for better communication and marketing. It's easier to communicate with a consumer base after you've figured out who they are. This turns into the most successful advertising to the consumer base imaginable.
McDonald's divided their items into categories based on psychographic, behavioral, and demographic factors. Children, learners, families, and businessmen are all targets for their products. McDonald's targets these market sectors because of their enormous size and projected growth rates. These categories are known for having extremely high-profit margins—segmentation of the Market.
Placement Segmentation
The division of a single market into smaller market segments is known as Market segmentation. This is done to simplify responding to the needs of small categories of customers. As a result, McDonald's may market various goods to groups based on their consumption habits. A segment usually refers to a group of people who have similar traits. Gender, geography, age, lifestyle, economic level, and various other factors are among them.
Behavioral Segmentation
Special occasions like children's birthday celebrations are related to behavioral segmentation. McDonald's attracts local youth clubs and sports teams not just because of its low costs but also because of its convenient location. McDonald's can accommodate a large population and appeals to the younger audience. Their food and promotion are targeted primarily toward retaining a young consumer base.
Demographic Segmentation
McDonald's prefers to concentrate on demographic segmentation as a significant segment. This group consists of students, children, and parents. McDonald's provides a welcoming setting for students, allowing them to socialize with their peers. McDonald's is a popular lunch venue for students and an after-school hangout. McDonald's scores big with their Happy Meal and the complimentary toy that comes with it because kids are a significant emphasis.
Psychographic Segmentation
McDonald's needs to create and advertise new goods and modified products with minimal fat and cholesterol to stay ahead of the competition. This is the current trend, and eating healthy is on everyone's mind in the United States. McDonald's and the fast-food business face fierce competition. Considering it, it's time to devise a penetrating pricing plan.
This would enable the corporation to launch new and improved items cheaper than the competitors. This will boost the company's market share and align with its marketing goals. The final objective is to grow sales to increase overall income.
Targeting of McDonald's
Targeting refers to selling things to certain groups determined through segmentation. How well does McDonald's choose and target the proper demographics? According to experts, marketers should iterate between establishing corporate culture and knowing about segment size and anticipated profitability.
According to its marketing director, McDonald's seeks out certain parts of its target demographic and then tailors or positions its products to each category. McDonald's does not employ a Big Mac manager or a salad group, unlike other large packaged goods firms with brand managers for their numerous products.
Positioning of McDonald's
The term "positioning" refers to the process of selecting the marketing mix that is most suited to the target client group. The positioning matrix indicates that certain combinations make far more sense than others, and positioning is done by manipulating the marketing mix 4Ps. McDonald's employs adaptive product positioning, which entails the corporation redefining products and services regularly in response to market developments.
How To Make a Segmentation, Targeting, and Positioning Mind Map
After reviewing McDonald's segmentation, targeting, and positioning strategies, the next step is visually organizing these insights. A mind map is one of the best ways to do this. It allows you to break down McDonald's market practices into clear, connected branches, making it easier to study and remember.
Use a Professional Mind Map Maker
To build a polished STP mind map like those, you can start with a free mind map maker, with which I have made the examples above.
Here's how I have done it:
- Step 1: Set the central node to “McDonald's Target Market” to define the focus clearly.
Try the app & get 500 free AI tokens
- Step 2: Add three main branches: Segmentation, Targeting, and Positioning. Then, add in the subtopics as may be necessary.
- Step 3: Customize the design with visuals. You can even change the branch type, move around lines, or change the text and add colors and icons.
- Step 4: Export the finished mind map in your preferred format to share in a report, class project, or presentation.
Here's a sample final mind map that you can follow. This is based on the content provided in the article:
FAQ
-
What is McDonald's primary target market?
McDonald's targets families, young adults, and value-seeking customers who want quick, affordable meals. It appeals to convenience-driven consumers who prefer fast service and consistency across locations. -
Why is STP important for McDonald's?
Like other companies, STP helps McDonald's to make a step-by-step analysis of the people who appreciate their brand or food. This way, they can dish out new products that people can try and never lose the brand loyalty, which they need to survive in a market full of competitors. -
Does McDonald's use the same targeting strategy worldwide?
Generally, McDonald's follows the same targeting strategy worldwide for its core menu. However, it may release different food items per country. For example, the Philippines has a dedicated rice menu that considers the Filipinos' love for rice. As such, McDonald's in other countries also offers different food adapted to the local cuisine.
EdrawMind
AppsEdrawMind Online
