McDonald's Marketing Strategy Success

This assignment examines the key factors behind McDonald's success as a global brand. It delves into their targeted marketing approach, employing segmentation strategies to reach specific customer groups. The analysis further investigates the effectiveness of McDonald's marketing mix, encompassing product development, pricing, distribution, and promotion tactics, highlighting how these elements contribute to its international recognition and consumer satisfaction.

MARKETING ESSENTIALS

Table of Contents
INTRODUCTION...........................................................................................................................1
LO 1.................................................................................................................................................1
P1.Key roles and responsibilities of marketing function........................................................1
P2.Inter-relationship with different functional units..............................................................2
M1. Analysis of roles and responsibilities of marketing........................................................3
M2. Significance of inter-relationship....................................................................................3
5 The value and importance of the marketing role in the context of the organisation...........4
6. Conclusion & significance.................................................................................................4
7. Comparison of marketing mix elements between McDonald's and KFC..........................5
8. Business Plan....................................................................................................................10
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Marketing is the action of promoting and selling goods in market. Marketing essentials is
process in which product is manufacturing and delivered to customers. This report will highlight
the essentials of marketing and how marketing is important and interrelated with organization
and trends which are used at present and will be used in the future. In this report marketing
methods and essentials will be discussed. McDonald's is an American fast food company,
founded by Richard and Maurice McDonald's in 1940. McDonald's is the second largest
organization with 1.9 million employees. This report will highlight the strategies used by
McDonald's for marketing of its products.
LO 1
P1.Key roles and responsibilities of marketing function
Market research- Marketing manager of McDonald’s had diverse kind of obligations to manage
the marketing outputs which can be positive or negative in the success of the organisation. It has
to arrange, reconcile and co-ordinate the marketing strategies. Manager who carries basic
marketing activities like branding, making customer relationships etc. Manager has a
responsibility to recruit the new member for the marketing team by supporting HR team. It has
the authority to keep the data of clients in our records. According to the generation are changing
globally and manager would identify the trends of the market. Through the marketing
information system managers can easily find the information about product in timely manner.
Customer services: The another important function of marketing manager of McDonald's is to
increase the sales. For increasing sales of the company and providing better services to
consumers, it makes the marketing strategy that involve all the information which are required to
sales department. It selects the best distribution channel in order to provide the best services to
customers.
Sales: Marketing manager not only promote products but also help sales department in
increasing sales. For increasing sales it focuses on research which involve all the information
related customers like customers needs, tastes, demands etc. After researching all the things it
provides these information’s to sales.
Manager identifies the market segment to understand the consumer behaviour efficiency.
The value added to product is also measured and monitored by the manager. Competitors
are coming from global market like online marketers, brand marketers it has to identify the
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strengths, weakness of the competitor's company. Marketing channels decisions are very difficult
in reach to vast and widely area in the modem marketing. Manager of McDonald’s has to
coordinate the logistic management for the suppliers, agents that are purchasing the products,
channel of the members, and customers.
Managing customer- Managing of the customer through the modem marketing is in good price,
timely in manner. Results and stability of the market depends on the skills of marketing manager.
Idea makes success of the company and creativity brings the customer attraction. Marketing
manager is responsible for making correct decision for increasing demand of products. Decision
making should be powerful for selling goods and services of the company. Conducting research
and analysing needs of target audience is the main duty of marketing manager of
McDonald’s(Baker and Saren 2016).
Promotion: The main and important role of marketing manager is to promote the products of the
company. Marketing manager of McDonald's focus on promoting the goods and for that it
advertise in newspapers and in television. The main aim of promotion is to increase and create
the demands of the services of the company. department in order to increase profit and sales of
McDonald's.
P2.Inter-relationship with different functional units
The role of marketing manager build up the relation between the customer and the company. 4.
Marketing influences and interrelates with other functional departments
Marketing department needs to work closely with all other departments because
marketing influenced with all departments. If any changes did in other departments then they out
there effect on marketing of that company also because marketing is related to all other
departments as well.
Marketing department with HR department: Marketing department strongly related with
HR. Because HR works in recruitment & selection & training etc. Through marketing an HR
person can know if any recruitment & training is needed for that department then provided to
that. Ex: Through marketing it identifies that services of McDonald's not provided properly to
customers because lake of training, so it provided by HR department of McDonald's.
Marketing department with Finance department: Finance and marketing are two pillars of
any organization because both are interrelated with each other. Finance department earn profit
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through investment and shareholders which helps in making budget for marketing department,
and if marketing focus on maximize sales which helps to increase profit for company.
Marketing department with Production/operation department: They have close
relationship between them, because production function focuses on creating new products,
managing quality & quantity of products and marketing function focuses on that it satisfies
customers’ needs or not. EX: In case of McDonald's it identifies quality and customers’ needs
with product in which new changes is performed by production department (Rowley 2016).
Marketing is a continuous process which moves goods and services from concept to
customer. It includes identification of product, demand, price etc. On the other words marketing
is a process for creating, exchange offering, communicating and all the activities in order to
promote and of products.
M1. Analysis of roles and responsibilities of marketing
Marketing helps in achieving organizational goals through fulfilling needs and wants of target
customer and delivering the desired satisfaction better than competitors. Marketing follows
basically these 5 concepts. It helps customer prefer the product which available easily and
inexpensive. They make consumers are loyal with a product if that product meets with their
expectations. McDonald's used this concept by providing superior and high quality products.
Marketing means sell what company making rather than making what customers want. It
believes in pull marketing instead of push marketing by creating brand loyalty. McDonald's
follow this concept to focus on consumers demand (Larson and Draper 2015).
M2. Significance of inter-relationship
Recently most of the companies are taking support of TV advertisement, social networking sites
to promote their products. These are current trends of marketing. McDonald's used social media
marketing and target audience and attract them through using most of these marketing trends,
which helps it to making it a global brand. New and innovative ideas are developed and changing
the market and way of business. So in future these marketing trends can play major role.
(Brychkov and Domegan 2017). Marketing analysis the opportunities of market, selection of
target market and then develops market strategies to achieve goal & mission. For this
organization have to follow this process (Malhotra 2015). It analysis of external and internal
analysis of firm through which it identifies customers need, its own capabilities and environment
in which it is operating. Not everyone will want what offer by McDonald's so this step
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McDonald's identify its customers need because customer is key audience and this is the way to
create loyal customers. This is a plan designed to promote or sell product. Strategies formed are
such as segmentation, target market selection, position of the product and value of the brand.
Using these strategies McDonald's determine product, place etc. Detailed decisions taken under
this step. Product development, Distribution channel, pricing decisions these are considered in
this. In this step McDonald determines that what prices are consumer willing to pay, what
restaurants are visited, and tv programs, newspaper & advertising consumers read or view.. This
is not end of marketing, continuous monitoring, control and management fulfil customers need.
McDonald's working on meeting the needs oh key audience can be example of this.
5 The value and importance of the marketing role in the context of the organisation.
The main purpose of the business is gaining incomes and revenues. Marketing is important
source to attract the customer, promote and convince the people that the goods and services are
beneficial for them. Marketing is to maintain the sustainability of customers with healthy
relationships.
Customer never buy product in straight way firstly they see the advertisement and then
they take a decision whether buying or not. Mc Donald line up for the business through
marketing stand for the profitability. If company is using the social marketing can attract the
customer in a wide range Mc Donald promote the brand image through advertisement on media
like Facebook, twitter. Making of websites can makes the process more easy for consumers to
buying online and also solve their problems instantly. Sponsoring local events to find out the
queries and sort out the problems. Mc Donald research the market analyses and modifying the
existing products on the needs and wants of customer. . The designing of the product is the part
of marketing because it attracts the costumer needs . McDonald had discover exciting markets it
could supply products and services too.
6. Conclusion & significance
Above the study conclusion is that marketing plays important role to implement and manage
market orientation in companies. This department is connected with organization and customers
directly. Major functions of marketing are buying, selling, financing, transport, warehousing etc.
which increases income, revenue, employment. It increases awareness, sales and trust which is
good for organization. Through this interrelation of departments building trust between all
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departments, increase efficiency of communication which provides better services to customer
and decrease chances of conflicts in organization. After marketing organization creates right
material which makes happy customers for organisation. All functional areas are interrelated so it
helps to make better strategy for organization through intercommunication between
them(Rancati, Gordini and Capatina 2016)
7. Comparison of marketing mix elements between McDonald's and KFC
Marketing mix elements McDonald's KFC
Product McDonald's offer variety of
products to its consumer such as
burger, wraps, french fries, etc .
It also adopts various product
development strategy and these
strategies include permanent
KFC also offers wide range
of products such as fried
chicken, sandwiches,
desserts, drinks, etc . KFC
also adopts same product
development strategies as
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Illustration 1: Marketing Mix
Source: (Marketing Strategy of McDonald's, 2016)

product development strategy
(particular kind of product is
available all time because of its
high demand such as burger),
temporary product development
strategy,(seasonal product, such
as Mc Rib), local product
development strategy
(developing product as per the
taste of local consumers).
McDonald's like permanent
product development
strategy(provides chicken all
time), temporary product
development strategy
(provide seasonal product
like festive burger like
Christmas in a bun), local
product development strategy
(such as different products
for people of japan like they
prefer black meat over white
meat)
Price The company tries to fix the
price of its products in such a
way that it could be affordable
by people of all income groups
For this purpose company
adopts bundle pricing strategy
to fix the price of its product.
Under bundle pricing, a
combination of goods is sold to
customers at a cheaper price
than they would charge if the
product was sold individually.
Other than bundle pricing,
company adopts one more
pricing strategy and that is
psychological pricing. Under
this, price of a product is fixed
in such a way that it creates an
On the other hand, KFC fix
the price of its product in
such a way that would
generate maximum profit.
For this purpose company
adopts market skimming as
its pricing strategy. Under
this pricing, product is first
introduced in the market at a
higher price and then slowly
its price is reduced in order to
attract mere customers.
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impact on the mind of
customers.
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Place McDonald's uses direct
distribution channel to distribute
its offerings, it means good are
offered directly to the end
consumers. When it comes to
place element of McDonald's,
we can say that McDonald's has
more than 37000 outlets open in
more than 100 countries. But the
place in not only restricted to its
physical location but it also
operates from its online website
Alike MC'd KFC also uses
indirect distribution channel
to offer its product. It is done
through wholesellers. Unlike
McDonald's ; KFC has less
number of outlets that is
around 18,875 outlets
operating in around 118
countries. But it has a
similarity with McDonald's
and that is; it also operates
through its online website.
Promotion McDonald's do immense
promotion in order to promote
its product and for promoting its
product it uses television,
hoardings, bus shelters,
newspapers, magazines and
internet.
KFC undertakes numerous
activities to promote its
products such as by LCD
displays inside their outlets
which keeps on displaying
their existing products,
through online advertising as
well as advertising on
television and even by
offering add-ons on their
existing menu.
People People are the most important
part of every company and
McDonald's gives lot of
attention towards employees of
middle level. It motivates its
employees to perform better
because they would be able to
In KFC employees at all level
work but the main focus is
towards the top level
management. On the other
hand, in order to retain its
employees for a longer
period gives them bonuses in
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keep its consumers satisfied
only if they are satisfied and for
this purpose company keeps
motivating its employees by
giving them rewards and
recognition. Also, McDonald's
is known as one of the largest
employment giving company.
the form of vouchers to
develop fun element for staff.
Not only bonuses KFC also
provides various kind of
benefits such as medical
benefit to keep them
satisfied.
Process McDonald's strategy is to
develop a smooth process which
in turn gives them various
benefits such as high
productivity, effective delivery
system, minimal congestion,
high level of customer
satisfaction. Not only this they
also make efforts to reduce the
customer queues, so that they
come back again.
Kfc main focus is to bring
transparency in its processes,
so that customers will be
more satisfied and add value
to their services which will in
turn help them to survive and
grow in this competitive
world. Not only this they
make lot of investment in
their R&D team so that they
can improve their processes.
Physical evidence McDonald's pay lot of attention
toward its interior and
infrastructure ; that is, its focus
is to keep its interior clean and
hygienic and apart from this
McDonald's also focus to
maintain proper decorum so that
it creates an impact on the mind
of customers. Not only this
McDonald's also focuses on the
speed and quality of its services.
Kfc also pays lot of attention
to make its outlet look
attractive at the time when
customers visit such as by
using vibrant colours, walls
are decorated with posters,
fully air conditioned. Kfc
follows particular standards
as determined by its parent
company regarding its
interior as well as
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Tagline, is very attractive of this
company.
infrastructure. Logo is eye
catching that attracts people
towards brand.
8. Business Plan
Executive Summary:McDonald's is a centralised international company compete in market with
its products of fast food. To lead the market McDonald's make a plan to connect its customers
directly and satisfying them through using different strategy of marketing such as globalization,
product diversification and provide better quality. Also to extend the market share company is
going to engage in developing new and innovative food product “Mac spicy chicken”.
Mission: Become worlds best and quick service restaurant, by providing the best quality and
services, to connect customers directly as well as enhance experience.
Vision: To diversify its products for customers and satisfy them.
1) INTERNAL ANALYSIS
SWOT analysis
Strength-McDonald's have strong brand name which works for it as a strength. It has large
market shares, good marketing strategies which makes it an international brand. Apart from this,
company also has loyal customers.
Weakness- Unhealthy products are served by McDonald's which puts negative effect on health
conscious persons, which harm the business. It provided part-time jobs also and many employees
from that is quit there jobs in very less time which becomes reason of high employee turnover.
Apart from this, immense financial investment.
Opportunity- Fast food industries are growing now a days so this is an opportunity to increase
company's revenue. Low cost menus are preferred by consumers compare to high cost menus.
Diversification of taste according to consumers preference.
Threats: There are many competitors are entered in to fast food industry so intensity of
competitors is threat for this organization. Being a international brand recession, fluctuation in
economy and currency is threat or this(Caragher, 2016).
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EXTERNAL ANALYSIS
Pest analysis
P- Political
Political instability ,political conditions or rules and regulations of political parties should be
taken into consideration while designing the marketing plan of Mcdonald's
E – Economical
Economical aspects such as labour rate, inflation rate, interest rate are considered in order to
create a good marketing plan.
S – Social
While preparing marketing plan, Mcdonald's should consider social factors such as personality,
lifestyle and attitude of people of the society.
T- Technological
At the time of creation of marketing plan Mcdonald's should remain updated with technology to
achieve economies of scale and gain competitive advantage.
Competitors analysis
Basis Mcdonald's KFC
Revenue Estimated revenue of the
company is $21.03 B
Estimated revenue of Kfc per
year is $23.5 B
Employees The company currently has
around 210,000 employees
The company employs around
455000 employees. (Dib,
2018).
2) Marketing Objectives: To become global brand through franchising.
To increase its sales by 40% till 2020.
To create consumer satisfaction through its innovative products by 2020. (Blakeman, 2015).
3) Marketing Mix
Product- Fast food and beverages are important product which McDonald's provides as food
service business. Mac Donald is going to deliver there new innovation which is Mac Spicy
chicken. Main products of McDonald's are as
Hamburgers & sandwiches
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chicken and fish
Snacks & Beverages
Ice-creams etc.
Through product diversification and bringing new innovation it will achieve its goals and
objectives. Ex: Adding new innovations in menu can be done because of many reasons such as
taste preference, religious, culture etc. McDonald's will provide a choice to country that taste of
product can be modified according to preference of customers of that country. Using this method
this organization get more experience about its customers preference.
Price- Setting price strategy aim's to maximize sales and profit. McDonald's used bundle pricing
strategy in discounted form to customers by giving them new innovation in a discounted price.
In this customer can purchase bundle of products in less price instead of purchasing separately,
which increases direct sales of products.
Place-This is the most important in marketing mix strategy this is the place where products are
served and customers can access with the McDonald's. McDonald's serves its food mostly in:
Restaurants
Kiosks
McDonald's mobile apps
Restaurants are the place where company generates its revenue, profit and sales. By increasing
its places of distribution this will increase its sales for Ex: McDonald's will provide its food on
post mates websites and apps so this helps to increase profit.
Promotions- This is the element through which organization communicate with customers.
McDonald's used mainly advertisement method of advertising to attract more customers. Ex:
McDonald's to increase the sale of Mac Spicy chicken offers discount coupons which comes in
knowledge of customers through advertising in Tv, social media etc. which increase no. of
customers(Kent 2018).
People – McDonald's pays a huge attention towards its employees but the main focus of the
company is towards the employees of middle level.
Process – company has smooth processes which generates continuous feedback so as to manage
performance.
Physical evidence – ambience of McDonald is phenomenon, it fosters the smooth working of the
company.
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4) Segmentation, targeting and positioning
Segmentation: Segmentation involves dividing population into groups that are different from
one another. McDonald's used mainly demographic segmentation strategy segmented its
products as in urban areas. Which helps it to easily targeting its customers(Villeneuve and
Pasquier 2017)
Targeting: McDonald's targeted its customers on the basis of its various segments. Mainly
targeted audience of McDonald's is urban area. It used niche marketing strategy because it
targets a particular age groups such as teens, young generation and business consumers(Bryson
and Daniels 2015).
Positioning: Positioning is how to present the products correctly in targeted market. McDonald's
used price positioning strategy by providing good quality products in low price. Which helps it to
attract more consumers and become a international brand(Mishra, 2016.).
5) BUDGET
Expenses Percentage (in pounds)
Television 300000
Sales promotion 900000
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Illustration 2: STP Process
Source: (Marketing Essentials, 2018)

Radio 300000
Newspapers 750000
Miscellaneous expenses 750000
Total 3000000
6) TOOLS TO EVALUATE
These are the three major tools to evaluate performance of the company.
 One of the most important tool to evaluate the performance is through through market
research and based on the results of the survey actual performance can be evaluated.
 Performance can even be evaluated even through sales. All depends on the degree of
sales, more the sales better would be the performance.
 Another evaluation tool is psychometric testing which is used as a scientific method to
evaluate the performance
CONCLUSION
From the above study it has been summarized what role and responsibilities of marketing
manager play in organization, strength and opportunities of McDonald's which makes it better to
another. McDonald's is leading market because it targeted a particular segment for its product
and by using the latest trends McDonald's did marketing of products. McDonald's created good
image on consumers mind by provided customer satisfaction through good quality. A proper
marketing plan and process was followed by McDonald's to become a international brand.
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Online
Marketing Essentials. 2018. [ONLINE] Available
Through<https://www.marketingteacher.com/essentials/>
Marketing Strategy of McDonald's. 2016. [ONLINE] Available Through <http://sales-
management-slides.com/marketing-strategy-of-mcdonalds/>
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