McDonald's Marketing Mix Analysis

This assignment delves into a comprehensive analysis of McDonald's marketing mix, utilizing the extended 7Ps framework. It explores each element: product, price, place (distribution), promotion, people, process, and physical evidence, examining how these factors contribute to McDonald's overall marketing strategy and success in the competitive fast-food industry.

MARKETING
ESSENTIAL

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 The roles and responsibilities of Marketing function............................................................1
P2 The roles and responsibilities of Marketing in organisation departments.............................3
TASK 2............................................................................................................................................5
P3 Marketing mix of Mc Donald's..............................................................................................5
TASK 3............................................................................................................................................7
P4 Marketing Plan.......................................................................................................................7
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Marketing essential act as tonic for the organisation as it assist the management in
implementing various marketing strategies which are used by marketing team to enhance the
growth and development of business. Marketing plays a vital role in enhancing customer base
and loyalty. The report will analyse the roles and responsibilities of marketing function in Mc
Donald's, the largest growing food chain across the globe. Moreover, it will evaluate the
importance interrelationship between marketing and all the organisational department. Further,
report will outline the new product launch and its marketing strategies used by McDonald's to
attract the attention of its health conscious buyers. It will discover the implementation of
business strategies in order to improve effectiveness and efficient of marketing plan. Thus, the
report evaluates 7 p's of marketing mix which assist the firm in determining various pricing and
process strategies in order to serve customer satisfactory services.
TASK 1
P1 The roles and responsibilities of Marketing function.
Marketing refers to gathering appropriate information about companies performance and
its products and services. For an example, when the firm plans to launch of new product, the
manager need to analyse the situation of business and than organising for training and
development of employees in order to guide about the changes which can be either in existing
product or innovating some new good according to the customer requirements. Further, the
marketing manager aims at managing resources and strategies which can help the organisation in
implementing changes in order to satisfy needs and wants of customer's. In this marketing
manager of Mc Donald's analyse the changes in taste and preferences in buyers requirement
which can assist the organisation in making further changes in the process of sales and
marketing. The marketing function in the organisation is beneficial for the firm in monitoring
and controlling the performance of entity according to its rivalries (Wertime and Fenwick 2011).
There are various roles of marketing manager in order to regulate marketing functions which are
as follows:
 Defining and managing the brand name
 Conduction promotional campaigns to make people aware about the products.
 To enhance customer base and loyalty.
 Developing and analysing the use of marketing strategies.
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 Monitoring and managing companies' performance as per planned objectives.
 Identifying and researching market requirement (John 2017).
 Regulate and track the organisational functions and strategies as per rivalries.
The major responsibilities followed by marketing manager of Mc Donald's
Conducting Market Research: the marketing manager of company conducts market
research in order to analyse the market requirement and changing taste and preferences of
consumers. This is done when the company start getting stable or declining returns. It assists the
company in collecting feedback from customers which helps in determining the need of changes
(Blakeman and Brown 2010). Thus, this is conducted through primary source of research which
is either done by directly communication with customers through door to door interview or by
emailing questionnaires.
Developing marketing Strategy: In this marketing manager develop strategies which
can be beneficial in promoting products and services of the company. This is done by manager to
make changes in the organisational process according to the strategies followed by rivalries of
same industry (Huotari and Hamari 2012). Formulating and implementing the best strategies
assist the marketing team in enhancing business operations and in attaining competitive
advantage.
Managing relation with customers: The most important responsibility of marketing
manager is to maintain and manage appropriate relations with consumers. In this the manager
collects the and frames database to order serving buyers satisfaction.
Product Development: In this, the manager of Mc Donald's aims at analysing the
requirement and gaps and further implementing changes in existing products or innovating new
product according customers' taste and preferences. Further, in this the ultimate motive of the
organisation is examine sales and profits and then ensuring increasing return from the changes
(Reimann, Schilke and Thomas 2010).
Communication: It is the foremost responsibility of marketing manager to establish
communication with its buyers therefore to connect with Customer, the marketing team of Mc
Donald's promote its products and services through events and promotional campaign.
Promoting services on event and campaign assist the organisation in creating awareness and
developing strong customer base (Singh 2012). Apart from this Events are beneficial for Mc
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Donald's to identify loopholes and shortcoming and further establishing strong relationship with
consumers across the globe.
Sale Support: It is the responsibility of marketing manager to coordinate and cooperate
its efforts with the sales team as the department assist in examining and keeping a check over
demand for products of the company.
Key Elements of Marketing function
 Advertising (Television, internet, radio, newspaper and magazines).
 Direct Marketing
 Sales promotion
 Maintenance of public relations (Mogos 2015).
 Personal Selling
 Events and Sponsorship
 Attractive packaging
For instance, the marketing team of Mc Donald's analysed that from so long the demand
for products and profits of the organisation are on one note neither decreasing nor decreasing.
Therefore, to enhance the profits and serve customer satisfaction, the team researched about
buyers requirement and competitors products from which its has been found out that the
company need to focus on demand of its health conscious buyers for which it has to either
innovate or will have make changes in existing product that is burger. Thus, after collecting
consumer feedback from stores and advertisements the company is planning to launch Mc Tikki
burger for its health conscious foodie.
P2 The roles and responsibilities of Marketing in organisation departments.
It is important for marketing department to connect with all other departments of the
organisation to ensure smooth functioning of business operations (Hennig-Thurau, Hofacker and
Bloching 2013). The interrelationship between all the department and marketing plays a vital
role for Mc Donald's to establish efficiency and effectiveness in its process and services. The
responsibility of marketing with all other organisational department is as follows:
Human resource Department: This department act as tonic for the firms as its main
function is recruit and Hire skilled and capable employees according to job requirement.
Marketing manager coordinate its plan with HR department in order to make sure that there are
capable employees who can assist the company in implementing changes. According to
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information given by Marketing manager HR will focus on analysing the existing staff and the
need of hiring new employees (Beck and Reichert 2012).
Finance Department: This plays an important role in establishing smooth flow of funds
in all other departments which enhances the business functions. Further, Finance team of Mc
Donald's assists marketing manager in developing effective investment decision. Besides, the
finance team also assist marketing manager in making forecast about the sales, product
development and innovation (Taneja and Toombs 2014). Thus, as per the forecast marketing
team implement strategies to promote the sales of services in order to maximize profits and
satisfy consumer needs and wants.
Production Department: This department of Mc Donald's understands the taste and
preferences of consumers that is why it is important for marketing team to coordinate their
efforts with production team in order to determine the innovation and strategies which can assist
in promotional stages. In accordance to the marketing team share the collected information with
production department in order to analyse the experience for specific products (Biggemann
2012). In this the production manager examines the consumer reaction towards almost same
service to evaluate whether the innovation will assist the company in maximizing profits and
serving customer reaction.
Research and development department: Marketing manager coordinate the ideas and
plan with R&D as it assist the company in determining best and effective strategies which can
enhance the innovation plan by making cost effective function and establish optimum utilisation
of resources. Further, research and development team of Mc Donald's assist marketing team in
identifying what products will be accepted by the consumers. In accordance to low fat burger the
research department researches about market needs and effective techniques which can help the
organisation in developing quality product at lowest prices in order to satisfy buyers and
maximize profitable returns (Morgan 2012).
Sales department: Link between marketing and sales department of Mc Donald's plays a
vital role in determining the efficiency and effectiveness of changes and innovation. The bond
between both the department assist the company identifying various loopholes and shortcomings
which are the reason behind declining growth and development of organisation (Satit, Tat and
Sukati 2012). The sales department shares a healthy and friendly relation with buyers which
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helps the marketing team in easily connecting wit consumers to collect feed back and examine
the need of changes according to requirements.
Information technology department: This department helps the marketing department
in overcoming technical changes and loopholes which can be related to anything that is relation
to new product development plans. In this IT team, assist the marketing team in accessing over
various marketing technology which provides easy guidance of implementing changes and
strategies.
Customer service department: Coordination with customer care representatives assist
the marketing manager in recognising the need of changes as the individuals are directly
connected to buyers. In this department customers shares their queries and problems with
customer care representative which passes this information to marketing team in order to
implement changes accordingly (Reimann, Schilke and Thomas 2010).
Significance of Interrelationships
 Link between organisational department of Mc Donald's assist the company is
establishing coordination and cooperation between business operations.
 It is important it is beneficial for the firm in managing time and in regulating Smooth
organisational operations.
 Interrelationship between marketing and all other departments are important Mc Donald's
to deliver quality customer satisfactory services.
TASK 2
P3 Marketing mix of Mc Donald's.
Marketing mix is the strategy used by marketing manager of Mc Donald's to determine
the changes according to consumers. It assists the marketing team in setting and identifying
various strategies which can be beneficial in deriving companies growth and development. There
are 7 p's of marketing mix which assist in determining basic functions of organisation which are
as follows:
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7 P's of Marketing mix McDonald's Burger king
PRODUCTS The company offers wide
range of differentiated
products like hamburgers,
cheese burgers, low fat burger
sandwiches and beverages
like, Mc flurry, shakes, sundae
desserts and many more.
Further, it also respects the
religion and belief of its
consumers therefore it as
separate cooking areas and
equipments for non veg and
veg products (John 2016).
Besides, the company focuses
on launching the healthiest
possible commodities but still
sometimes lack the ingredient
therefore now to expands
product market, manager
planned a launch of new low
fat burger for its health
conscious buyers.
The restaurant offers limited
number of products. As its
services are limited to burgers.
Moreover, the additive in the
food offered to consumers are
specific therefore innovation
becomes difficult. Apart from
this, the company do not offer
transparent kitchen processing
which limits the consumer
loyalty. However, in contrary
the services of company are
fast and are already focused on
healthy food products.
PRICE Mc Donald's offers products at
easily affordable prices and
therefore the organisation is
cost leader across the globe.
Moreover, according to pricing
the firm holds happy price
menu. Apart from this, to
The pricing strategy used by
its biggest rivalries Burger
king is Bundle pricing in
which the organisation sets
prices of food products
according to the prevailing
market conditions and
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attract more and more
consumers, the company offers
various combos and discounts
on weekdays.
demands of consumers.
PLACE The ultimate focus of company
lies in its availability of
services for which the
organisation is doing as it is
located in almost every
country across the globe.
Moreover, the stores of Mc
Donald's are located at places
were people have easy
transportation and have
frequent visit. Moreover, it
provides the option of drive
through to save times of it
consumers. Further, to over
come this weakness the
enterprise is located at prime
locations like, Malls, airports,
Tollways and shopping
complex almost in all cities
worldwide.
The ultimate advantage over
McDonald's to Burger king
offers the online and offline
services.
PROMOTION The manager make use of
every possible promotional
technique like, Television,
radio, social media, press,
newspapers, magazines, etc. In
order to promote products and
Burger king the company
holds major advantage over its
promotion tactics and activities
as services of Burger king is
limited to advertising, public
relation and sales promotion.
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services the firm makes
attractive display
advertisements, make
schemes, door drops, direct
mailing and customer loyalty
schemes. For promotion the
ultimate focus of organisation
is kids and young generation
for which at day its offers
Happy meal hours, scratch
cards, and lucky draws. The
promotional strategies of Mc
Donald are formulated in way
to offer products at lowest and
discounted prices for limited
period.
PEOPLE The quality of services
increase when the employees
of the organisation treats
customers wit respect. In
accordance to this, the
employees of Mc Donald's are
trained to treat customers with
respect and should guide them
in friendly way. Moreover, the
organisation aims at
maintaining clean and healthy
environment at every store.
Further, the employee's ave
uniform stand and equal rights
for maintaining healthy and
Burger king the competitor of
McDonald also offers the
friendly environment and
services to consumers but it
does not offer the
entertainment services which
assist the organisation in
stabilizing its food services.
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safe environment for buyers.
Apart from this, the manager
focuses on organising various
creative activity like, gaming
and pricing scheme to attract
kids (John 2016).
PHYSICAL EVIDENCE Physical evidence is
determined by cleanliness,
speed, quality and
transparency. Mc Donald's is
the largest food chain of UK
selling its goods and services
across the globe and its
ultimate aim is to serve
customer satisfaction at lowest
possible prices. Therefore, the
manager keeps track of market
fluctuation and complies with
every regulations in order to
deliver standardized products
at global pricing strategies.
Further, the food items of
company are made of natural
and consumer friendly
ingredients which are avail to
buyers at approximately 30%
cheaper prices according to all
the food chains across the
globe. Hence, its is the only
company which sells food at
stable prices without any kind
Burger king offers hygienic
environment and it has
consumer friendly staff which
make its business operations
successful. Moreover, the
services if Burger king are
online but the physical stores
are limited.
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of discrimination (Hennig-
Thurau, Hofacker and
Bloching 2013). The stores of
McDonald's are easily
available at all prime locations
which demonstrate its strong
base over Physical evidence in
comparison to its competitor.
PROCESS The process of Mc Donalds is
transparent to consumers
which helps in developing
their loyalty and trust. The
company uses various
differentiated packaging and
distribution methods to attract
buyers. Further, the manager
make use of several advanced
and efficient cooking
equipments. Apart from this,
to gain trust of consumers, the
firm allows consumers to
check ingredients used in
production of product which is
the major reason behind
developing trust of people on
the food chain.
The McDonald attains
competitive advantage over its
biggest rivalry Burger king in
food processing system as it
offers transparent process of
preparing food which assist the
enterprise in gaining
consumers trust and enhancing
consumer base.
Hence, the pricing strategy used by to attain competitive advantage are as follows:
Market Penetration: This is the strategy in which the Mc Donalds charge low prices for
new launched products like, for Low fat Mc tiki burger first the company will charge minimum
price and further will increase price according to the demand (Singh 2012).
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Competitive pricing: In order to earn the loyalty of customers the food chain aims at
setting low prices according to its competitors in order to attain competitive advantage. For
instance, for its new launch of low fat Tiki Burger, Mc Donald's will set prices after identifying
the pricing strategies of competitors for similar products.
Psychological pricing: It is the trick followed by company in which it offers product at
slightly low prices according to the customers' expectation. For instance, if all the burgers are of
range 1$ than it will be offered at .90$
Unit pricing: It helps marketing manager in determining cost as per unit which makes
easy for consumers to compare between the prices of products offered by Mc Donald's in
comparison to its rivalries.
Tactics used by organisation to attain goals and objectives of business.
The business objectives of Mc Donald's is to earn profits by serving customer satisfaction there
the marketing manager of organisations follows some tactics to attain determines goals and
objection by following tricks such as,
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Illustration 1: Marketing Mix
Source: (Vincent, Boomer and Bitner, 2013)

 Developing innovative and creative products according to market requirement.
 Providing schemes and discounts on meals and burgers assist Mc Donald's in attracting
consumers.
 Offering food at low price but for limited period or on weekdays.
 Setting less prices for products according to rivalries food chains across the globe.
TASK 3
P4 Marketing Plan
Marketing plan of Mc Donald's assist the management in implementing the best
strategies and techniques to attain organisation goals and objectives. The plan provides the
appropriate direction to company by analysing its strengths and weakness. Further, in this new
product launch plan the firm will segment and target the health conscious buyers across the
globe. In this, the enterprise aims at making innovation and creative techniques to attract more
and more consumer towards its new commodity (Satit, Tat and Sukati 2012). Apart from this
the business aims at analysing its current situation in order to launch new product for which Mc
Donald's perform Situation Analysis which comprises Internal and external evaluation with the
use of Business strategic tools that are PESTLE and SWOT.
SWOT ANALYSIS
Strengths The major strength of Mc Donald's lies in its staff and market which is
spreaded across the globe. Moreover, the company focuses on providing
regular training and development session to its employees in order to
make them aware about the market fluctuations.
Weakness The major weakness of Mc Donald's is that the company fails to market
for its pizza products as there are various leading pizza chains globally.
Opportunities Launching products for health conscious buyer is the opportunity which
can assist the organisation in enhancing its growth and development.
Moreover, the techniques used by rivalries like offering discounts on
weekdays is the strategy which can assist the enterprise in grabbing the
opportunity to expand its market among buyers.
Threats There are very controversial events faced by McDonald, regarding its
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quality which is the major treat impacting the reputation of business.
PESTLE ANALYSIS
Political The developing government policies regarding health and hygiene are
the reason behind declining demand for Junk food.
Economical Fluctuation in trade and tariff duties and agreement is the factors
impacts the internal strategies of business for long run. (PESTLE
Analysis of Mc Donald's 2017).
Social Enhancement in standard of living and styles diverse the taste and
preferences of buyers towards food products for which awareness is
increasing regarding healthy food products.
Technological Advancement in technology is the factor which helps the company in
promoting its product at global level which is beneficial in creating
awareness about new commodities. Moreover, the advancement is also
beneficial for the company in making optimum utilisation of resources
and providing customers an easy mode of payment.
Legal Changing regulation is the major problem faced by Mc Donald's and all
other fast food organisations in which the firm is liable to comply with
the legislations like, employment law, labour law, tax etc.
Environmental In accordance to this, the firm focuses on using environmental friendly
techniques and ingredients for products in order spread awareness about
increasing harmful gases and ingredients which are effective many lives
and environment.
Mission
Mc Donald's is among the largest food chain worldwide serving customer satisfaction
since ages. It is the most preferable place of people to eat at affordable prices. To promote its
products and market share the strategy used by company is plan which only aims at attaining
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determined goals and objectives. The mission statement of organisation focuses on delivering
better customer experience by continuously enhancing its food services. Beside to make sure that
the performance of business is heading towards growth and development the major action
decisions of enterprise are as follows:
 Delivering the best customer services.
 Committed to Buyer satisfaction
 Ethical business operations
 Maximizing profitably
 Continuous improvement
Corporate Objectives
Further, there are various corporate objectives which helps the organisation in
establishing and distributing appropriate roles and responsibilities to manager which helps in
managing the success of marketing plan (Wertime and Fenwick 2011). The determined Business
objectives of food chain are as follows:
 Maximizing profits: Earning more and more profit from business operations is the core
objective of firm. According to the company aims at formulating effective marketing plan
which will assist the enterprise in generating revenue and earning profitable returns.
 Increasing Market Share: In order to enhance growth, Mc Donald's aims at expanding
its market. Further, to increase the market share the organisation aims at implementing
marketing strategies to attract more and more buyers towards its food products.
 Improving effectiveness of products: The management aims at implementing changes
and creativeness according to taste and preference of buyers which assist the company in
improving effectiveness of its food services.
Marketing Objectives
Marketing objectives followed by marketing team of Mc Donald's are as follows:
 To every time increase its consumer base by 6 percent.
 To every time increase its revenue generation and profitability by 11 percent.
 To identify about changing taste and preferences of customers (Taneja and Toombs
2014).
 To increase awareness about food products innovated by company according to market
requirement.
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Marketing Strategy
In order to create awareness about products of Mc Donald's and to enhance growth and
development of business, the marketing team of company follows and make use of marketing
strategies which is creating brand awareness among consumers through advertisement by using
various sources like, newspaper, magazines, television, radio etc. Moreover the marketing
manager of organisation aims at interacting and communicating with buyers trough seminars,
promotional events, campaigns etc. (Huotari and Hamari 2012). Apart from this, the team will
focus on launching products on discounts and schemes in order to attract the attention of buyers
towards its new and old food products.
Marketing Program
In order to determine marketing plan for launch of new product the manager aims at
making plan including all the basic details about marketing which comprises, time, date, event,
venue.
Events Description Duration
Newspaper and
Magzines
Mc Donald's advertise product
related schemes and discounts on
Newspapers as it assist the
company in increasing consumer
base because almost every
individual across globe go
though newspapers and
Magazines
The firm will publish the advertisement
continuously for at-least 4 or 5 days
every month to make people aware
about its food products and specially
about the product which is been
launched for health conscious audiences.
Digital platform Digital promotion is the best way
to promote the brand and its
products on social media
platforms like, Instagram,
Facebook, twitter etc. In this the
notification pops the screen of
individual when the person
Once in a day for almost 15 – 16 days.
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access its social media profile.
Direct mailing In this the team mails' to
potential and loyal customer
about new products and
discounts.
Twice in a week
Promotional
campaigns
To promote the brand in
colleges, universities and Malls.
Almost all the places where it
communicates with large number
of buyers.
Once in a year at every location.
Public relation
events
Interaction with people in
conferences and seminars
Once in a year
Budget for Marketing Plan
Events No. of times Amount / times Total (USD)
Newspaper and Magazines 50 550 27500
Promotional campaigns 80 150 12000
Digital marketing 70 250 17500
Public relation events 52 150 7800
Direct mailing 15 250 3750
Total 1350 68550
Monitoring and measurement techniques
Monitoring plays an important role in controlling and measuring the performance of an
organisation over its marketing plan and strategies. The steps which assist the manager in
monitoring and measuring performance are as follows:
 To regularly keep a check over budget in order to make optimum utilisation of resources.
 To find the changes in the planned and actual budget in order to set effective measures of
improvement.
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 To identify about more effective strategies which can assist marketing team in making
plan and promotion effective and efficient (Beck and Reichert 2012).
 To survey and analyse about changing taste and preferences of consumers.
 Comparing performance of current year from previous year sales.
CONCLUSION
The report summarized about marketing essential which plays a vital role in formulating
and implanting marketing strategies to attract consumers and to promote growth and
development of business. It discussed the role and responsibility of marketing function in the
largest food chain Mc Donald's. It has identified various tactics and strategies used by marketing
manager of Company to discover the needs and wants of buyers. Further, evaluate the innovation
plan and strategies used by firm when launching new product for its buyers. Moreover, it
recognised the importance of implementing marketing plan in order stabilise business operation
and to measure performance of firm when launching new product. Apart from this, the report
outline the marketing mix techniques used by manager to make enhance the brand value for
organisational products and services. Thus, it concluded by analysing the effectiveness and
efficiency of implementing marketing strategies within organisation to determine changes and
satisfy customer needs and wants.
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