Swot Analysis and Marketing Communication Plan for McBreakfast

This report discusses the strengths, weaknesses, opportunities, and threats of MacDonald's new product, McBreakfast. It also presents a marketing communication plan to target the youth audience and increase sales.

APPRENTICE
CHALLENGE

Table of Contents
INTRODUCTION.......................................................................................................................3
Swot analysis...........................................................................................................................4
Identify target audience for new product................................................................................6
Marketing communication plan..............................................................................................8
Monitoring ................................................................................................................................11
CONCLUSION..........................................................................................................................13
REFERENCES..........................................................................................................................14

INTRODUCTION
London school of science and technology will provide knowledge to students
regarding science and technology. It was founded in 2003 and it was founded by professor
syed Zaidi. Students are preparing report regarding marketing of new product in report.
MacDonald is fast food company which is operated by Richard and Maurice Donald. It was
founded in 1940 and it is situated at Chicago. MacDonald is delivering products like ham
burgers, soft drinks and milk shakes and desserts as well. MacDonald are working in 120
countries and territories and it is serving across 68 million customers in each day. The report
will be discussing strengths, weakness, opportunities and threats. Swot analysis is used by
companies to identify and analysis internal and external factors which are having impact on
product and company. On basis of swot analysis company will be forming new products and
target audience will be selected for selling new product. In report marketing communication
plan will be prepared which will help company to target audience and launch product in
market. Report will also be providing recommendation regarding how company can innovate
products and attract customers towards company (Stead and Hastings, 2018. ).
Swot analysis
Swot analysis is the evaluation tool for business entrepreneurs which will analyse
strengths, weakness, opportunities and threats. Swot analysis can be applied to any type of
company or industry. It is done at very low cost and it is quite simple and can be done easily.
It has some limitations like there is lack of clarity in leaders and also it will lead to lack of
prioritization. The analysis for study and collecting data is subjective. There are too many
opinions for addressing by leaders and businessman. Swot analysis will analyse strengths,
weakness, opportunities and threats. It will help company to analyse market and company will
try to grab opportunities and face threats.
Strengths
McDonald is bog fast food company and it is rolling out new products which will
attract customers in effective way. Company is attracting customers by way of expanding
menus and launching new products and innovative prices every time. MacDonald is spreading
across 120 countries and at any place company is not dealing with the losses. Organization is
lunching different products in different countries which will attract customers. Company is

gaining huge profits and also implementing best practices which will help company to expand
business in more countries (Suárez and Estevez, 2016.).
Company has gained power over competitors in market because any other Fast food
chain cannot offer these type of products at such low prices. Other companies of soft drinks is
collaborating with MacDonald. These soft drink companies are selling products to MacDonald
at low prices and gaining huge profits. MacDonald has many outlets in every area and so
company have ability to reach customers. Company is working on increasing brand awareness
in particular regions so that customers will be aware about new outlets of MacDonald.
Company has also started home delivery services across all the countries which is attracting
customers towards companies.
Weakness
The business model of MacDonald is franchising models and it is quite complicated
for company to handle. There are huge risk of financial deterioration and mismanagement.
Customers of company are not satisfied with services which are been provided by company all
over the world. Employees are not satisfied with work of company because organization was
not providing them minimum wages and it had resulted in having negative effect on company
image. Employees have started with several protests and strikes against company. Company is
one of the business food chains all over world and there are several issues which have been
rising in supply chain. Due to issues in supply chain management there are problems arising
relating to availability of products (Maupa and Taba, 2018.).
MacDonald break fast menu has lost its charm because of the increase in competition
for company in every country. There are large number of fast food chans which are giving
strong competition to MacDonald. It had negative effect on company business and CEO of
company is also got fired because of having consensual relation with employee. Company had
fired CEO but it had negative effect on company goodwill.
Opportunities
There are various opportunities for company because company can improve business
performance and achieve long term goals and objectives. Company had lunched value meals
which is can attract customers in effective way. Organization is taking effective measures for
attracting customers like company is coming up with innovative products. Organization is also
lunching new products and improvising exiting products which will attract customers.

Company has started with exclusive beverage service in new york outlets and it is a great
success which was liked by customers (Martín-Cáceres and Cuenca-López, 2016.). Company
is launching new products in different areas and as per need of customers.
MacDonald have spread across all over the world but it is operated from US. Company
is facing problems because of global expansion and company is not earning huge profits in
every area. So, company is dealing with huge losses in particular areas and it will have
negative effect on company image. Company also have opportunity of introducing new
products which can attract youth and employees.
Threats
Company is using new technology for attracting customers but company has invested
large amount in technology. Customers are adapting new technologies in their daily life but
company is facing risk because company will not get expected rerun on investment. Increase
in competition is affecting sales of company and also productivity is affected. MacDonald has
to fight strong competition because there are big competitors for MacDonald like burger king
and chick-fil-a. These are also quick serve restaurants, and they are attracting customers on
large scale.
There are cultural threats which will be affecting company sales in various countries.
Every country have different culture and different values and company has to look after the
culture and values. There are new age fast food trends which are followed by people in various
countries. MacDonald has traditional menu which will have effect on taste and it will have
negative effect on customers and customers are not attracted towards company. Environment
is affected because of waste generated by company. So company is facing immense pressure
because of minimizing waste and protecting environment (Tamošaitienė and Gaudutis,.,
2017).
Identify target audience for new product
On basis of swot analysis done above there are various opportunities for company.
Company had come up with introducing new product which will attract customers towards
organisation. MacDonald is coming up with new product which is mac breakfast. Mac
breakfast has breakfast products which will be attracting customers towards company. Many
people are studying in other cities, and they are not consuming proper breakfast. So company
has come up with new products called mac breakfast.

Mac breakfast is product which will include breakfast like egg mcmuffin and many
more. Company has added deluxe break fast option in menu as well. Breakfast items will
include break fast sandwich called egg mcmuffin, mcgriddles and hotcakes and many more.
Oatmeal is also added by company in breakfast. In Hawaii and Guam company is offering
break fast as spam, fresh cut pineapple and Portuguese sausages. In cos to Rico MacDonald is
offering MC Pinto as breakfast (Şahin, 2016). England MacDonald is offering standards break
fast which will be enjoyed by customers. Company is also providing MC skillet burrito but it
is served in limited areas. In England break fast wrap is also served to customers which is
liked by customers. It will include sausages, bacon, egg and hash brown. The break fast menu
is attractive and it is attracting customers in every country.
Target customers for product is youth like employees and college students which are
working in organisation. Students are not able to prepare break fast at home, and they need to
consume breakfast every day. Employees are working and also they cannot prepare food at
home, so they need to have break fast every day. So, company is planning to target youth and
prepare product as per need of customers. Proper break fast meal is needed to every people
and so people can visit MacDonald outlets and consume breakfast. The specialty of break fast
meal is that it will be provided by company at particular time which is from morning 5 to 11.
Youth will need break fast at any time and so customers can visit MacDonald outlets at time
on which products will be provided. Breakfast will be done by people at the time of breakfast
only (Allan, 2019).
Company is spread across international countries and every country has different
culture and different values. Some countries are consuming fast food in break fast but some
will not consume fast food in break fast. So, company has to look after the culture and values
which will have impact on products. So, organisation will come up with new products of
breakfast and break fast will be differing in every country because company has to attract
customers.
There will be positive impact of introducing these new product market. Company will
increase sales and productivity will be increased as well. Financial market will have positive
effect and both short term and long term decision will be analyzed. Firm is introducing new
product and so it will have company will be ruling market with multiple products. It will
attract customers and company will build up strong brand image in market. Company will be

investing in new product and also investing huge amount in promotion of products. It will
result in huge success then company will earn profits on product and company can think of
improvising existing products and attract customers (Baume and Popovic eds., 2016.).
Marketing communication plan
Aims and objectives
Aims: To introduce new product in market
Objectives
 To increase sales and productivity of company
 To attract customers towards company
Seven Ps of marketing
Seven Ps of marketing will include product, price, place, promotion, people, process
and physical evidence
Products
MacDonald is selling variety of products in their outlets but company is introducing
new products for attracting customers. Product is named as Mcbreakfast which will offer
variety of options to customers like Egg mcmuffin, Mcgriddles, MC skillet burrito and Break
fast wrap. Company is also selling different products like hotcakes, has brown and ham
burgers. It is providing desserts to customers like hot fudge sundae, baked apple pie and mc
cafe and many more. Company is providing shakes for children like Mccafe frappe, chocolate
shake and strawberry shake as well.
Prices
Prices of Mcbreakfast is quite low as compared to break fast options for customers.
Aim of company is to provide food to customers at low price. Prices of products are slightly
changing in every country because of change in value and different regions as well. Company
is setting prices as compared to demand of products and also company is having benefit of
setting price according to them as per they fit in local market. Outlets of MacDonald are
giving strong operation to other competitors in local market. Prices of products will be
affecting consumer behavior and also it can change behavior of consumer. So, price of
products are low and anyone can buy products and enjoy it (Council, 2018).
Place

Places for selling products must be suitable for customers and hence company will be
opening outlets near selected target market. Like company will be providing stores near
university and MNCs which will attract customers and youth which will buy product
Mcbreakfast. These place is suitable for employees and students to visit, and they will not
waste time in visiting outlets. MacDonald's outlets are opened for 24 hours a day and company
has also started of delivering product at home by mobile applications. These online ordering is
attracting customers towards company and increasing sales.
Promotion
Promotion of products is must because customers need to be aware about products and
about specialties of products. MacDonald is using television, internet and social media for
promoting of products. Company is using sales promotion for attracting customers.
MacDonald's outlets are also offering discounts on selected products. Promotion is done by
way of social media because youth is using internet and social media on large scale. Social
media could be the best place for attracting customers. MacDonald's outlets will be offering
free products and on selected products (Foda and Zhu, 2019).
Processes
Process is referring to activities which will be performed by company to achieve
something. MacDonald is preparing food at one place and then the food is transported to other
outlets. Food preparation is most important process and these whole process of food
preparation is visible to customers. On the other aspect customers will be placing orders and
taste of food must not differ as compared to other outlets. So, company is using one process
and preparing food at one selected place. So, taste of food will not differ and customers will
enjoy same quality food at every outlet.
People
People those who are going to buy products are youth like employees and students.
MacDonald is hiring employees which are able to satisfy customer and deliver good services
to customers. It is important for company to concentrate on employees because they are one
which are setting image of company in market. Customers are buying products and company
must look after need of customers. Poor customers service can frustrate customers, and they
will not be able to satisfy customers. So, company is introducing new products in market
which is made according to demand of customers (Morah, 2019.).

Physical evidence
Physical evidence will refer to elements of physical environment and customers
experiences. Physical evidence is setting impression on mind of customers. Like surrounding
and interior of MacDonald outlets must be attractive which will satisfy customers. Company
must look that hygiene and cleanliness is maintained in outlets. So, company will look after
effective measures which will maintain good and impressive interiors at MacDonald outlets.
So marketing mix of MacDonald new products is implemented and company can
analyze the target markets and try to sell products in market.
Stp analysis
In segmentation customers are divided by company in to small groups. Geographic
segmentation divides market on basis of geographic criteria. On the basis of geographic
segmentation MacDonald is optimizing menu and its food in to regional taste and needs.
Company is selling hem burgers in England but these products are not in demand in India. So
MacDonald is selling different products in different regions. Demographic segmentation is
concentrating on age, income and size of consumer. For example children will be enjoying
products of Mcbreakfast and as well as youth but old age people are not consuming fast food.
So these products will not be attracting them on large scale.
In targeting companies select market, on what they are focusing for future business
strategy. MacDonald have selected target market for Mcbreakfast is youth which will be
enjoying these new products. Target market is divided on basis of market segments and which
customers will buy products on large scale and will be attracted towards company.
In positioning market segment is divided by designing marketing program and by
collecting knowledge regarding target market. Customers are changing their preferences every
time. So, company is taking effective measure for attracting customers and building a strong
position of product in market (Lee and et.al., 2018).
Marketing budget for six months
Particulars January February March April May June
Cash inflows
Opening cash 6000 9000 15000 21000 26000 30000

Particulars January February March April May June
inflow
Sales revenue 11000 11000 11000 11000 11250 11500
Other income 3000 4000 5000 4000 3000 2500
Total cash inflows 20000 24000 31000 36000 40250 44000
Cash outflows
Material 2800 1600 1600 1500 1600 1700
Labour 1000 900 1000 1100 1200 1300
Other expenses 2300 2300 2300 2400 2500 2700
Administration
expenses
5000 4000 5000 4000 5000 4000
Total cash outflows 11100 8800 9900 9000 10300 9700
Cash deficit /
surplus or closing
cash balance
8900 15200 21100 27000 29950 34300
Monitoring
Marketing budget and marketing plan can be monitored by way of customer feedback
and reviews. Customers visit MacDonald outlets and will taste products and customers will
give feed back and reviews to outlets. Those reviews and feed back must not be neglected and
those feed back and reviews must be monitored in effective way. Target market sales can be
measured by way of units sold and revenue generated. Market survey must be done and sales
must not be affected. Budget and monitoring spending must be analyzed and monitored. There

are several advertising expenses which are going to be occurred on introducing new products.
All these cost need to be analyzed and expenses must be eliminated by which they can work in
effective manner.
Evaluation
In process of evaluation progress will be monitored and by analyzing proper feedback
and company must compare strategy to competitors. Feedback are given by customers and this
feedback can be used by company for improvising products. Company must look after strategy
which is used by competitors for attracting customers. Organization must evaluate return on
investment and try to achieve goals and increase profits. In case of there is not profits
generated from introducing new products there is no worth of investing on that products
(Keeler and et.al., 2019).
Recommendations
MacDonald is introducing new products in market and customers will be attracted
towards company by way of promotion. Company can use new promotion techniques for
spreading awareness regarding products. Customers are everything for organisation and so,
company is attracting customers by way of promotion. Promotion can be done by way of
social media, television and advertising on newspapers. Digital marketing is attracting
customer and company can place their advertisement on social media. Majority of target
market is using social media and these all will be having positive effect on company sales.
Social media is being used by company for increasing sales and productivity.
Company can also start to deliver products online and start to deliver at home.
Nowadays technology is increasing and customers are expecting restaurant must also start
using the latest technology. Like customers are preferred these products and service at low
prices and it is must be delivered at home. Customers are using mobile application for
ordering food and also they are paying for food via mobile only. Customers have stated using
online banking, so customers are also not preferring to buy products at cash. Company can use
technology related online banking and introduce home delivery services as well (McDonald
and Solomon, 2018).
Company can start using new technology in food preparation. Whole process of food
preparation is visible to customers and if company has installed useful machines for food
preparation customers will be attracted towards company. Outlets will be using the latest

machines for food preparing and employees would not have to use their hands in that process.
So, all these technologies installed by company will be visible to customer and customers will
satisfied relating to cleanliness.
MacDonald can research on target market which is going to buy products. Before
introducing new products in market company have to look after the market and trends which
are followed by market. In these research process company can analyze market and consumer
behavior. There are various factors which will have positive or negative impact on decision-
making process of consumer. So company have to look after those factors and also analyze
company position in market. Company position is analyzed by way of evaluating financial
status of company. Current position of organisation in share market and by looking after
outstanding loans which need to be paid by company. Organization is doing research on target
market and target market is youth which will be consuming products at large scale. So,
company need to analyze taste and trends of youth which is enjoyed by them. Company is
coming up with new and innovative measure which will attract customers towards
organisation (Cole,and et.al., 2018).
Company has to look after rules and regulation which is levied by government. The
government is leaving food and production act on restaurant and every type of company which
is selling food products. So, company can come up with new and innovative products which
will be attracting customers on large scale. These products which are prepared by company
must have knowledge regarding rules and regulation because if customers are not satisfied
with food quality they will file complaints. Company has to levy heavy penalties for breaking
these rules and regulations.
Public health is must for every one even when anyone is running restaurant. So,
products must be prepared by looking after public health. Environment is also important at
same time, so restaurant are coming up with new and innovative techniques for waste
management. MacDonald is generating more waste as compared to other companies. So,
company is taking effective measures for looking after waste management and also trying to
reduce waste (Dekkers, Roos and van der Molen, 2018.).
CONCLUSION
From the above report it will be concluded that company has to introduce new product
in market. Company will be introducing product like mac breakfast and it will have positive

impact on company image and sales. So company will come up with new and innovative
techniques which will have impact on sales of company. Organization is using swot analysis
which will help company to analyze strengths, weakness, opportunities and threats. It will help
company to identify the problems which will have effect on their performance. So company
will be using strength for attracting customers and company will be finding strategies for
overcoming weakness as well. So McDonald will also be focusing on opportunities which will
help organization to survive in market. Threats will be affecting company image and so
company must take effective measures for overcoming threats.
Hence forth company can use the latest strategies for attracting customers and like
company can use digital technology and start delivering products at home. Customers are
preferred that products need to be delivered at home without any cost of time. In these
consumers are delivering products at home which will attract customers at home. Company is
also working on rules and regulation which will be providing quality of food to customers. So
MacDonald Is concentrating on consumers need and demand which Will be attracting
customers on large scale. Proper segmentation and targeting of market is done by company
which will be helping company to look after the need of customers. Marketing mix strategies
have been used by company for working in effective way. Like the company will be using
marketing strategies for increasing and analyzing market.
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