Marketing Challenges Faced by McDonald's and Strategies to Overcome Them

This presentation discusses the marketing challenges faced by McDonald's and strategies to overcome them. It covers the current situation, product review, distribution review, competitive analysis, SWOT analysis, alternative strategic marketing solutions, recommendations, and issues to monitor in the implementation.

MCDONALDS
Name of the Student:
Name of the University:
Section No.-
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THE PROBLEM

Statement of the marketing
challenge
McDonald’s face significant challenge in terms of its Human
Resource. While expanding its business to new market, it need
to train its staffs using different methods in order to remain
relevant.

Evidence in support of the
statement of marketing challenge
• The development and training based programs of the organization are related to
the ways by which the organization is able to operate and maintain the employees
in different parts of the world.
• The training requirements in this case are quite high for the ways by which
McDonalds is able to provide its services to the customers.

ANALYSIS OF THE
CURRENT
SITUATION

Macro-Environmental factors
affecting the case

Economic considerations
• All its stores are influenced by the ongoing global economic
slowdown
• The rapid growth of the developing nations are providing it a
great opportunity to develop its business
• Market of U.S is the biggest contributor to its revenue
• Expansion of business

Political and regulatory
considerations
• There is an increase in the international trade agreements
• There is an evolving public health policies which is both a
threat as well an opportunity of McDonalds.
• Presence of governmental guidelines for health and diet

Cultural and social
considerations
• Rise in the disposable income of the customers
• Increase of cultural diversity
• The busy lifestyles of the people in the urban environments
• Trends in healthy lifestyle

Product Review
Product mix
Veg menu
McVeggie
Paneer Selse Wrap
Pizza McPuff
Crispy Chinese
Non-veg menu
Chicken McGrill
Fiet O-Fish
McChicken
Chicken Burger
Beverages
Cold Coffee
Hot Serves
Soft Drinks
Mc Dhakes
Ice Tea
Frozen dessert
Floats
Mc Swirll
Flavor Burst
Soft Serve Cone

Distribution review
• Intensive Distribution
• Vertical Marketing Network

Marketing communication review
• Depends on extensive use of the individual elements of the
marketing communication mix
• It comprise of sales promotions, media advertisement, print
media, public relations, direct marketing, events and
experiences
• It coordinates its promotional efforts by making use of
integrated communication strategy

Competitive analysis
Current Strategies McDonalds Burger King
Corporate level High diversification with
the related constrained
High diversification
Cooperative level Development in most of
the countries
Joint ventures in Japan
Customer loyalty
Quality products
Marketing alliance with
the DreamWorks
Business Level Differentiation strategy
and cost leadership
Integrated cost leadership
International level Emphasis on getting
aligned with the local
taste
Multi domestic strategy
Multi domestic strategy

Product analysis
• Chicken McNuggets
• Premium Salads
• Egg McMuffin
• Happy Meal
• Snack Wrap
• Big Mac
• French Fries
• Cheeseburger
• Baked Apple Pie

SWOT analysis
Strengths Weaknesses
a) Competitive Price
b) Professional Training for
Employees
c) Collaboration with Coca Cola
d) Successful brand name
a) Joint Venture or Franchise
b) Weak Product development
Opportunities Threats
a) Growing dining out people
b) Internationalisation
a) Global economic downturn
b) Health conscious customers
c) Local competitors

Conclusion
• McDonalds has been successful in developing a leadership
position in the fast food industry with the help of different
strategies that are applied in various operations.
• Market expansion based strategies and activities of the
organization have proved to be the most important part of the
success that has been gained by McDonalds.
• Strategies that can be implemented by fast food organizations
for developing customer loyalty are based on the strategies of
McDonalds

ALTERNATIVE
STRATEGIC MARKETING
SOLUTIONS

Alternative 1
• Managers should take of the politics from their staffs at
McDonalds and treat the employees equally. People would get
the jobs with high number of references in it. It is very
common in some nations like Pakistan. However, the company
is also required to appoint new people on the basis of their
merit and should enhance the potential of the people who are
working in the company

RECOMMENDATION

• Continuously improving the menu of the company
• Improving the flexibility of the international operations for
ensuring that the items of the menu are matching the
customer’s preferences
• Increasing its market penetration
• Improving the environmental impact of the business

Product Suggestions
• It should diversify its product portfolio with including healthy
dishes more

Pricing Suggestions
• It should include the products that could be afforded by the poor market as well.
The Price of the products are very high in McDonalds. The population of India
comprise of one-forth of poor people so, it should also consider them in diversifying
its products.

Distribution suggestions
• It should also distribute its products by means of its personal app and in restaurants
as well.
• It could also use Kiosks for product distribution.

Marketing communication
suggestions
• Advertising on Television, cinema halls, and radio stations
• Using posters
• Direct mail
• Loyalty schemes
• Door drops

issues to monitor in the
implementation
• Collecting information around the indicators
• Identifying the patterns, possible interpretations and trends
• Determining the key indications for the process of monitoring
• Writing up the findings and conclusions appropriately
• Going through the data and organising it under the concerns and themes

References
• Chan, T. S. (2015). Franchising of Us Fast Food Chains in Hong Kong: Entry and
Expansion Strategies. In Proceedings of the 1989 Academy of Marketing Science
(AMS) Annual Conference (pp. 163-167). Springer, Cham.
• Etgar, M. (2015). Global Retail Entrance Strategies. In Proceedings of the 1997
World Marketing Congress (pp. 266-269). Springer, Cham.
• Mathur, S. (2017). Glocalization in Fast Food Chains Glocalization in Fast Food
Chains: A Case Study of McDonald's. In Strategic Marketing Management and
Tactics in the Service Industry (pp. 330-347). IGI Global.
• Peloza, J., Merz, M. A., & Chen, Q. (2015). Standardization Vs. Localization of Firms’
Corporate Philanthropy Strategies when Entering Foreign Markets. In Proceedings of
the 2008 Academy of Marketing Science (AMS) Annual Conference (pp. 295-295).
Springer, Cham.

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