Sustainable Marketing: Case Study of Macdonald’s Singapore

This document discusses the key sustainability issues faced by Macdonald’s Singapore and provides recommendations for sustainable marketing. It explores the triple bottom line concept, analyzes the social and environmental measures, and highlights the company’s profit-focused approach. The document also suggests marketing mix strategies and product recommendations for Macdonald’s Singapore.

Birmingham City University
Sustainable Marketing
Case Study: Macdonald’s Singapore
Submission Details:
Name: Ashley Cheang Yu Tong
BCU Student ID: 18156228
Intake: PT BCU BAIM 18
Course: Bachelor of Arts (Honours) International Marketing

CONTENTS
1. Introduction
2. Analysis of Key Sustainability Issues for Macdonald’s Singapore
2.1.0 The Triple Bottom Line
2.1.1 People
2.1.2 Planet
2.1.3 Profit
2.2.0 Summary
3. Recommendations for Macdonald’s Singapore
3.1.0 The Marketing Mix
3.1.1 Product
3.1.2 Place
3.1.3 Pricing
3.1.3 Promotion
4. References

1. Introduction
McDonald’s is a well-known fast food chain all over the world and also one of the
biggest, famous for their hamburgers and fries. From as young as two years to eighty years
old will have eat Macdonald’s once in their life time. McDonald’s is one of hard work,
determination, and humble beginnings – from a neighbourhood restaurant in Des Plaines,
Illinois in 1955, to more than 36,000 restaurants in over 100 countries worldwide today. By
1958, three years after opening its door, McDonald’s have served its hundred millionth
hamburgers. McDonald’s Singapore opened their first restaurant in 1979, serving the world’s
highest volume of hamburgers in a day on October at Liat Towers. A tiny island welcomes a
giant restaurant chain. (McDonald's®, n.d.)
In the fast food industry, in terms of being sustainable and environment friendly,
Kentucky Fried Chicken (KFC) is the only fast food chain that implemented no plastic straws
and plastic lids in June last year at all of their eighty-four outlets. (Kor, 2018)
McDonald’s Corporate Social Responsibility Commitment
In 2015, McDonald’s Singapore decided to stop the use of Styrofoam packing for its
breakfast meals across outlet island wide. To work in line with their continual sustainability
efforts, the switch is inevitable. A petition was online in January 2015 with more than 700
people signing on it, asking the chain to replace the non-biodegradable Styrofoam with
recycled packaging. (KHEW, 2015)
2. Analysis of Key Sustainability Issues for Macdonald’s Singapore

2.1.0 Triple Bottom Line
The triple bottom line concept is
developed by John Elkington, used to measure
sustainability while traditionally business is
a measure of profits, return on
investment, and shareholder value to
include environmental and social
dimensions (Milne and Gray 2013). By
focusing on comprehensive investment results with respect
to performance along the interrelated dimensions of profits, people and the planet—triple
bottom line reporting can be an important tool to support sustainability goals. (Slaper and
Hall, n.d.)
The packaging wastes has been the major sustainability challenge or issue experienced by
McDonalds in Singapore and it has created drastic changes to the environment as well. The
addressing of this issue has helped in making changes to the customers’ behaviours and
influence them to use less packaging, thereby, ensure, responsible sourcing and designing of
products that can be taken care after use (Govindan et al. 2013).
2.1.1 People (Social Measures)
Considering the fact that many of the customers, though satisfied with the quality of
food items offered at McDonalds, prefer the recycled packaging, the company needs to
consider it as a matter of concern. This can not only result in fulfilling their needs and
preferences, but will also allow for adopting sustainable measures required to promote
healthy living and wellbeing of the community as well as the environment at large (Henriques

2013). The company has also aimed at putting sustainable efforts for the positive impact that
can be created on the environment and at the same time, facilitate management of
environment friendly measures to maintain the ecological balance in nature too. With more
than 700 people signing on the petition for replacing the non-biodegradable Styrofoam with
recycled packaging, McDonalds would surely need to consider those scenario and make sure
to cater to the needs of people properly too. Encouraging sustainable behaviours among
people and making them use less packaging could be effective for responsible sourcing and
also fulfil the social measures (Hussain et al. 2018).
2.1.2 Planet
With the size and reach of McDonalds, the company has acquired a great scope or
opportunity to create a difference by doing something good to the environment as well as
make some effective decisions regarding management of sustainable behaviours, thereby,
create a positive impact on the community as a whole. The reduction of wastes has been the
major motive, which has to be done with the help of replacing the non-biodegradable
Styrofoam with recycled packaging and make sure to select the best alternatives for
traditional packaging of food items served by the organisation all over Singapore (Wilson
2015). The engagement with the World Wildlife Fund could also assist in developing
sustainable packaging and also prioritise on the recycling solutions instead of using
Styrofoam. This would surely extend the life of the natural resources and at the same time,
push the industry towards more sustainable efforts and practices for creating a proper
ecological balance in nature too. McDonalds should remain transparent about the production
of wastes and manage recycling methods by holding accountable for the wastes management
(Ahi and Searcy 2015). The Triple Bottom line focus merely represents the company’s efforts
towards profit, rather creating some positive mind sets among people is the forefront through
adoption of greener approaches to business and recycling techniques too.

The plastic packaging wastes are major concerns related to the sustainability
management within the fast food sector and this has increased the emissions of harmful gases
like carbon dioxide and greenhouse gases too. The major problems associated with the
packaging wastes include degradation of soil, water as well as land pollution, harmful gases
polluting the environment, toxic chemical pollution, etc., which has affected the sustainable
development of resources as well as the environment (Hu et al. 2013). This creates direct
impact on the environment negatively and also creates imbalance in nature. McDonalds must
undertake necessary sustainable measures and ensure that the harmful ecological impact is
reduced and also the customers become adjusted to the sustainable behaviours and efforts to
be put for positive environmental impact. The company has stayed true to itself in terms of
sustainable packaging by using wood based products in a responsible manner and ensured
that the fibre based packaging resources are attained from reliable and legal sources with
proper CoC certification (Blanco 2016). This kind of packaging should be resource efficient
and also recyclable, which could create lesser threat to the environment.
2.1.3 Profit
McDonalds’ approach to sustainability management has not only facilitated
improvement of wellbeing of environment, but also has been aimed at achieving the goal or
objective of improved packaging and reduction of wastes. The packaging of food items has
been done with the use of renewable packaging that can be recycled as well as are from
certified sources, which could allow for guest packaging to be recycled at the restaurants
owned and managed by McDonalds all over. The fibre based packaging that offers recyclable
packaging process could enable the company to encourage use of compostable cup solution,
furthermore, reduce the costs incurred during the processes of packaging (Dahlbo et al.
2018). This could surely impact of flow of cash and ensure higher level of profit attained as
well.

McDonalds has carefully looked into these sustainability issues, addressed those and
made sure to make substantial changes to the food and beverage packaging. There has been
introduction of condiments bar so as to reduce the use of foil packaging, thereby, saved a lot
of resources too with the use of recycled papers as napkins. The McFlurry spoon further
helped in making the company move towards another sustainability approach by reducing the
usage of plastics and even replaced the polystyrene packages with biodegradable packages
(Barlow and Morgan 2013). The paper cups to serve hot coffee and other beverage items
have allowed the company to move over the plastics usage to a certain extent too.
To enhance the profit level, the company has constantly been engaged in green
measures to make sure that the innovative energy features and water saving capabilities are
integrated in the sustainable design of the organisation too. The ‘Made For You’ program
enabled McDonalds in Singapore to develop a production management system that can
monitor the amount of production to be achieved in the kitchens, furthermore, ensure not
generating food wastes by cooking in small quantities, though cooking more often, in order to
meet the needs of clients through delivery of fresh and good quality food items. For example,
whenever the customers place orders, the buns are roasted and other food items are cooked
there and then to ensure that the food served is of the best quality and is fresh, which ensures
raising the level of satisfaction among the clients (Nkwachukwu et al. 2013). Due to this, the
company has managed to acquire more customers, thereby, resulted in higher sales generation
and attaining huge amount of profit in business through management of sustainable efforts at
the same time (McDonald's®, n.d.).
2.2.0 Summary
Therefore, from the company’s approach to management of Triple Bottom Line
components, it is understandable that McDonalds has successfully managed to put its efforts

towards sustainable approach not only for reducing plastic packaging wastes, but also for the
purpose of decreasing the amount of excess food generated as wastes after consumption. The
company has focused on the health and wellbeing of people as well as the environment and
community with the switching from non-biodegradable Styrofoam to recycled packaging for
ensuring lesser generation of wastes and even raise the quality standards of lives (Hahladakis
et al. 2018). The company’s sustainable and eco-friendly measures have also created lesser
harmful impact on the Environment, which could further contribute to positive mind sets
among people and influence their buying behaviours too. Due to this, the customers are
offered with the freshet quality food items while at the same time, sustainable approaches are
undertaken to benefit the community and environment at large, furthermore, led to the higher
revenue generation within the fast food sector of Singapore (McDonald's®, n.d.).
3. Recommendations for Macdonald’s Singapore
3.1.0 The Marketing Mix
The marketing mix strategy is implemented for the purpose of enhancing the overall
business performance and make sure to design, manufacture and produce the food items in
such a manner that it can cater to the needs of clients and at the same time, contribute some
positives to the environment and community.
3.1.1 Product
Considering the fact that product is often considered as the physical offering or kind
of service delivered to the customers for meeting their needs and requirements but that also
includes several aspects such as the design of packaging, guarantee and physical outlook of
the product. McDonalds’ major advantage is that it has adjusted itself based on the market
conditions of different places, which has allowed the company to make changes to food menu
whenever and wherever required for meeting the local tastes of consumers and increase their
level of satisfaction (Raheem 2013). The product mix category for the marketing mix strategy

implemented by McDonalds Singapore include sandwiches, hamburgers, beverage items,
desserts, McCafe, snacks, side dishes as well as non-veg items such as chicken, fish, mutton,
etc. All these products comprise the marketing mix strategy’s first component, which has also
enabled the company to implement the generic strategies associated with the cost leadership
and differentiation for targeting different market segments and ensured fulfilment of their
desires effectively. The company has prioritised on the satisfaction of customers and thus the
food items are prepared with all the ingredients ready to make, after the consumers place
orders. As soon as the orders are placed, the food item is prepared rather than offering any
food item hat has been prepared before, which defines the freshness and good quality of the
food item provided to the clients. The company has also sourced the best quality bread, meat
and the ingredients from suppliers, i.e., the local farmers to deliver the freshest quality goods
and services too. The company’s approach to sustainable consumption has been supported
with the management of a nutritional value calculator, which allows the customers to
consume food as much as they want (Beitzen-Heineke, Balta-Ozkan and Reefke 2017). The
company’s commitment towards sustainability management to cater the needs of people have
made McDonalds to keep the guests informed about the ingredients used and its nutritional
value that have been obtained from the food suppliers, according to the Food and Drug
Administrator department. This has made the clients to make informed food selections and
calculate the dietary benefits that could be obtained, based on which, the orders must be
placed (Brooks, Wang and Jambeck 2018).
The beverage items are provided in paper cups while the previous packaging by
plastics has been replaced with biodegradable packaging, which can be recycled and does not
pose any serious harm to the ecological environment. The amount of oil generated while
preparing the food items could also be recycled into non-food products for managing
sustainability too. The recycled paper bags and cups have further promoted sustainability in

terms of packaging and designing of food items offered to the customers (Davari and Strutton
2014). The used oil from the restaurants could be used after conversion to biodiesel for
transportation purposes via delivery trucks too.
Based on the CSR report, it has also been found that with the sustainable efforts put
forward by the organisation, there would be lesser sodium content in the products containing
cheese and the Happy Meals should consist of apple slices, low fat flavoured milk and fruit
juice added with Chicken snack wrap to promote healthy consuming behaviours among
people. The sustainable coffee item could also be recommended as a new product range to be
made available in the market (McDonald's®, n.d.). The coffee beans are sourced from the
farms that have been certified by Rainforest Alliance, which has also brought a great flavour
in the coffee items and even the financial support provided to those farms have supported the
promotion and management of sustainable forestry, farming as well as tourism activities
(Ahmed and Rahman 2015).
3.1.2 Place
The place represents not only the locations from where the customers can get access
to the products and services but also includes the various channels for distribution of food
items and services. McDonalds has made sure to offer the products for the customers at the
right place, at the right time and also in right quantities for preventing any wastage of food.
According to the needs and preferences of the customers, the company has positioned and
adjusted it well for offering value propositions, furthermore, maintained a hygienic
environment, a great ambience and delivered great quality services (Larson 2014).
Considering the marketing mix strategy, the place component also has been focused on by the
company to use various places for the distribution of products and services such as through
restaurants, Kiosks, placing orders via mobile app and also with the help of accessing the
website and placing orders. The mobile app and company managed website further should

provide better accessibility for the customers to the products and services and they can easily
place orders, based on which, the product would be delivered at their doorstep within quick
time (Greenleaf et al. 2016). The place component has fulfilled the company’s marketing
strategy by aligning with the corporate vision, mission statement and goals to be achieved,
thereby, allowed McDonalds to serve the customers all over Singapore and in other places
with much ease and efficiency (McDonald's®, n.d.).
3.1.3 Pricing
Pricing is always a major component that every businesses within the fast food market
must consider to acquire the attention of customers and generate higher sales revenue. The
company’s aim to manage pricing is also dependent upon the sustainable approaches
followed, which can reduce the costs incurred while managing the business operations and
processes. The eco-friendly approaches through management of sustainable packaging has
reduced the costs incurred while traditional packaging system and at the same time, evolved
its normal transition to sustainable efforts put by the company (Ahmetoglu, Furnham and
Fagan 2014). With the amount of money saved through recycling and waste management,
McDonalds has managed to provide new product range and even provided product bundles at
a discounted price for keeping customers engaged towards the organisation. The
psychological pricing has been managed with the help of setting the prices to $__.99, which
created some appeal to the customer and made it looked much more affordable for them. This
has also influenced the buying behaviours of customers and made them remain inclined
towards the brand and its fast food items.
3.1.3 Promotion
The promotions represent the marketing efforts put by the company to enhance the
brand awareness and gain better outreach to people for influence their buying behaviours and
make sure to increase the sales revenue. The promotions marketing mix component have

been managed with the help of advertisements, sales promotions, direct marketing and
through promotion of sales made by McDonalds. The products and services have been
promoted in televisions, magazines and also with the help of online and print media to raise
awareness among people and also make them informed about the sustainability approaches
undertaken. The public relations management has strived for targeting the market segments
quite easily and maintain goodwill and positive brand image require to boost the value of the
brand consistently (Gainsbury et al. 2016). The social media marketing is recommended for
the organisation to deliver messages and information about the CSR roles and sustainable
goals achieved by the company, which could not only promote healthy consuming behaviours
of customers, but would even encourage them to make purchases from the organisation more
often. The company has also intended to follow responsible marketing tactics that could
reflect the healthy eating habits and consumption principles, thereby, remain aligned with the
dietary guidelines and children’s nutrition. As a part of the responsible marketing initiative,
various characters have been displayed as toys and freebies that are loved by children, which
influenced their behaviours sustainably towards healthier food options (Luo, Wang and Han
2013).
The sustainable supply chain management information must be circulated by the
company to enhance the delivery of brand messages and information about the management
of sustainability, thereby, leverage its competitive and leadership position to generate benefits
by improving the ethical environmental as well as economic outcomes too. The company
sustainable efforts put its brad value at a great position, which can allow for delivering
affordable food items, manage equitable trade practices and even prevent spreading of
agricultural diseases to promote healthy living within the community (Schaltegger et al.
2014). Moreover, purchasing from certified suppliers and its impact on the health and safety
management of employees along with designing of products and services in a sustainable

manner should further promote positive image of the brand and influence their buying
behaviours largely too.
Recommendations
 It is recommended to manage service differentiation for positioning the restaurant and
its services properly, thereby, ensure creating right mind-sets among the customers
 McDonalds, being focused on the delivery of quality based food items, should need to
make investments consistently for training and development purpose to deliver the
highest quality services to the customers.
 The company is recommended to integrate the promotion mix with the digital media
platforms for promoting the brand and ensure implementation of digital marketing
strategies for developing a larger customer base
 The continuous investment in the customisation of menu along with the management
of standardisation strategies is also recommended to target the right market segments
comprising of customers, furthermore, manage augmentation of products to meet the
changing needs of customers effectively.
 The introduction of an organic food menu and promoting it with the help of social
media marketing could also be effective for encouraging sustainable behaviours and
sustainable food consumption too.
Conclusion
The report was prepared to discuss about the sustainable marketing at McDonalds to
promote sustainable behaviours and at the same time, encourage people to make purchases
from the organisation. The topic presented an idea about the current scenario within the
market and then assessed the sustainability issues or challenges related to the plastic
packaging wastes, which deteriorated the ecological environment. To counter these issues or
challenges, the company made sure to adopt sustainable approaches and focus on

implementing the environment friendly measures for creating a positive impact on the
environment. The Triple Bottom Line was being focused on to create positive impacts on the
people, planet and the profit level achieved considering the integration of various components
of marketing mix in the sustainable measures too for remaining sustainable as well as socially
responsible towards the community.

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