McDonald's Marketing Strategy Analysis

This assignment requires students to critically analyze McDonald's marketing strategy. Students must utilize provided academic sources to evaluate the fast-food giant's marketing plan, target audience focus, and the ethical considerations surrounding their operations. The analysis should demonstrate a comprehensive understanding of marketing principles and their application in the context of a global brand like McDonald's.

Marketing
Planning
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TABLE OF CONTENTS
Introduction .....................................................................................................................................3
1.1 The changing perspectives in marketing planning.................................................................3
1.2. McDonald's capability for planning its future marketing activity........................................3
1.3 Techniques for organizational auditing and for analyzing external factors that affect
marketing planning......................................................................................................................4
1.4 Organizational auditing and analysis of external factors that affect marketing planning in a
given organization .......................................................................................................................5
2.1 Main barriers to marketing planning......................................................................................6
2.2 Organizations may overcome barriers to marketing planning...............................................7
3.1 Marketing plan for a product or a service of your choice......................................................7
3.2 Importance of marketing planning in the strategic planning process for an organization.....8
3.3 Techniques for new product development.............................................................................9
3.4 Recommendations for McDonald's pricing policy, distribution and communication mix....9
3.5 Factors affecting the effective implementation of the marketing plan ..............................10
4.1 Explain how ethical issues influence marketing planning ..................................................10
4.2 Organizations respond to ethical issues...............................................................................11
4.3 Consumer ethics and the effect it has on marketing planning.............................................11
Conclusion.....................................................................................................................................12
References......................................................................................................................................13
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INTRODUCTION
In the present scenario, businesses are required to develop an effective marketing plan
plans in order to achieve higher sales and profits. Market Marketing planning can be defined as
the process in which an organization identify identifies its current market position and develop
marketingselling, advertising and promotional strategies for future (Teeple, 2016). The reason
why this marketing plan is considered as an important aspect of business because is that it
focuses on the issues that are linked with products, price, place and promotion. The present
report depicts the changing trends or perceptive in the process of marketing planning. In addition
to this, it also highlights various techniques of organizational organization audit and analysis of
external factors that affects the marketing plan of McDonald's. Other than this, the present study
also explains techniques of new productproducts development and ethical issues which influence
these plans.influences marketing plan of .
1.1 The changing perspectives in marketing planning
McDonald's is one of the most popular and renowned chain of hamburgers that which
operates in many countries of the world. In olden days, this the brand used use to market all its
products and services with the help of traditional marketing tools. Further the organization used
to display its advertisement on television and newspapers in order to attract more and more
number of customers. withWith the changing perceptive in their marketing planplanning,
McDonald's made some changes in the process of advertisement and promotion (Vrontis and
Pavlou, 2008). Along with this, the concept of marketing has been changed for the brand. In
earlier days, plans were developed to push its products and services in market but in current
scenario they focus on pulling the customers towards. Earlier the marketing plan for McDonald's
were developed to increase profits but now they are being manufactured developed to gain
higher degree of customer satisfaction which will directly results in higher profits (McDonald's
UK, 2016). On the other hand, in the modern era, internet have been has emerged as one of the
motsmost potential tool to market products and services. The organization has also started using
tools such as mobile marketing, email marketing, social media marketing etc. (Peattie and Crane,
2005). Therefore, it can be stated that along with the changes in ing perspective of marketing
trendsplanning, McDonald's strategies has also changed. This has resulted in creatingin creating
needsneed and demands demand of its products among the people in market.
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1.2. McDonald's capability for planning its future marketing activity
At the time of carrying out marketing activities, McDonald's is required to arrange
different kind of financial and human resources. Employees play very important role in the
development and implementation of this the marketing plan developed by the organization.
McDonald's has have a team of highly skilled and creative personnel's who which can carry out
effective marketing activities in future (Zineldin and Philipson, 2007). The organization is a
leading brand of in hamburger in the industry of the world and it is only because of its strong
strong selling strategymarketing. Along with the passage of time, the marketing team of
McDonald's has been developed in a very effective manner. Human resources haveresources
have the ability abilities to use both modern as well as traditional marketing tools. Other than
this, the organization is also financially very strong. A large part of their its revenues is are
invested in activities such as advertisement, promotion and marketingselling of all its products
and services. The competition among businesses in fast food industry is getting more and more
intense. McDonald's is facing tough competition from brands such as Subway and Burger King.
Therefore, it can be stated that the organization and its resources are capable enough to attract
new customers and retain their old ones with its marketingselling activities (Cravens and Piercy,
2006). In addition to this, with the help of financial and human resources,theresources, the
organization can develop developed creative plans for future which can assist in maintaining its
current market share.
1.3 Techniques for organizational auditing and for analyzinganalysing external factors that affect
marketing planning
McDonald's can use various kind of tools and techniques to carry out their its audit. One
of the best among these those is SWOT analysis. Further, it is very useful in identifying
identifying strengthstrengthens, weaknesses, opportunities and threats of the brand.
Organization’s s audit can be also carried out with the help of technique such as Value chain
analysis. Further in this, the brand will be required to evaluate their its primary and secondary
activities that which can help in adding more value to their its final product (Hutt and Speh,
2005). Operations, marketing, inbound and outbound logistics are the primary activities of
McDonald's. On the other hand technology, human resources, infrastructure and procurement are
included in its secondary activities. The technique of porter five force or Pestle analysis can be
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used by McDonald's to analyse the external factors which can affect affects its marketing selling
strategyplan. The technique of Pestle analysis will help in determining how political, economic,
social, technological, legal and environmental factors can affect McDonald's marketing plan.
1.4 Organizational auditing and analysis of external factors that affect marketing planning in a
given organization
With the help of this tool, the brand can plan and develop effective strategies related to
marketing. One of the main strength of McDonald's is its brand image which encourages
encourager people in market to consume products offered by the brand. In addition to this,
another strength McDonald's is that it adapt the local food menu in the country where it operates.
This means that the menu is decided on the basis of taste and preferences of the people in a
particular nationnations. The menu of McDonald's in India is totally different from its menu in
Singapore (Crawford, 2015). Its major weaknesses includes high rate of employee turnover and
low differentiation. The increasing demand of healthier food can be considered as one of the
biggest opportunity which lies in front of McDonald's. On the other side of this, high level of
competition is the biggest threat which the brand is facing. Therefore, it can be stated that at the
time of developing marketing plan, McDonald's needs to take its strengthstrengthens,
weaknesses, opportunities and threats into consideration. Further, if they are not taken into
account then its marketingselling planstrategy can become a complete failure (Hollensen, 2015).
The external analysis of McDonald's using Pestle analysis technique is mentioned below as:
Factor Impact
Political The government is pressuring, fast food industry to make some
changes in their products as they are increasing the cholesterol level
and obesity (Cartwright and Cooper, 2011). This has affected the sales
and operations of McDonald's to a great extent.
Economical The growing economy Of UK is helping the brand to earn adequate
profits and expand its operations. The economy has is also helped
McDonald's to spend freely on its marketing activities.
Social Lifestyle of people is changing and they have started to seek for more
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healthierhealthier food products (Markatos, 2006). Therefore, at the
time of developing marketing plan, the band needs to make sure that it
market its products as healthy and safe for the life of people.
Technological High rate of technological advancements has helped the organization
in carrying to carry out its marketing activities in more cost effective
manner. Technology has provide the brand with tools such as email,
social media and mobile marketing.
Legal The brand is required to adhere the changing rules and regulations in
every country where it operatesoperation (Sadjadi, Oroujee and
Aryanezhad, 2005). Any kind of change in working or employment
law affects the marketing planstrategy as the plan is required to be
developed by considering those changes.
Environmental Strict lawslaw and government regulations related to environment
protection have has been developed in last few years. At the time of
making developing its marketing plan, McDonald's needs to use those
processesprocess and practices which do not have negative impact on
the environment.
2.1 Main barriers to marketing planning
At the time of developing marketing plan, organizations such as Subway, McDonald's,
Burger King operating in fast food industry may face various kind of barriers (Decker, Wagner
and Scholz, 2005). The key barriers are mentioned below as: Inadequate information related to market- At the time of developing useful and result
oriented marketing plan, organization needs to have adequate information about the
market. This includes information related to target market, their taste and preferences,
competitorscompetitors’ strategies, products and prices etc. When a business enterprise
do not have such kind of information then it fails to develop an effective marketing plan
(Stevens, Loudon and Wrenn, 2006.).
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 Resources- Another barrier to marketing planning is associated with the kind and amount
of resources which organizations have. Inadequate resources may restrict to use
efficient and result oriented techniques of marketingaffects the entire marketing plan of a
business enterprise (Ardley, 2005). At the time of developing marketing plan,
organization needs to have various resources such as human, financial, technological etc.
 Lack of communication- Appropriate marketing plan can be made with the help of proper
communication. Further if the communication is not proper the employee will be not be
become aware of the aimsaim and objectives of marketingselling planstrategy. Lack of
communication between all the membermembers involved in development of plan is one
of the major barrier (McDonald, 2007).
2.2 Organizations may overcome barriers to marketing planning
Organizations such as Subway, McDonald's, Burger King in the food industry needs to
look for the ways through which they can overcome the above stated barriers in marketing
planning. Some of the ways are mentioned below as: Developing a market research team- This will help organization organizations in food
industry to have adequate information about their of customers in market (Zeithaml,
Bitner and Gremler, 2010). The team will be responsible for carrying out customerbuyer
surveysreviews and market research in order to become aware about the change in
changing needs and demand of people in that particular the country. Arranging resources- Another way to overcome the barriers in development of marketing
plan is by arranging all the required resources on time. Majority of the time, plan fails
due to the lack of resources (Schröder and McEachern, 2005).
 Developing good communication- The above mentioned organization also needs to
develop effective process of communication. This will help in increasing coordination
among all the staff member. Further they will be able to present their opinions and
suggestions at the time of developing the plan.
3.1 Marketing plan for a product or a service of your choice
A marketing plan for new products which is a healthy burger which contains less oil and
beneficialand beneficial ingredients is mentioned below as:
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 Marketing objectives- The marketing plan will start with development of aim and
objectives (How to create a marketing plan, 2016). The aim behind carrying out this plan
is to provide healthy burgers to people which do not have any kind of negative impact on
their life (Talpau and Boscor, 2011). Selling burgers to 5000 people in initial 6 months
will be one of the main objectives. Another objectives is to achieve 10% growth every
year. Marketing mix- It is an important stage of marketing plan in which organizations needs to
determine their 4P's. This includes products, price, place and promotion which are
required to be defined by organization. Burger thatBurgers that are safe and contain
contains less cholesterol will be the products. Along with this, a low price strategy will be
adopted by organization to be competitive with other market players and attract more
customer bases. If the new productthe burger becomes successful then the organization
will increase its prices will be increased. Along with this, both online and offline sources
of promotion will be used (Teeple, 2016). Ads will be displayed on newspapers,
television and social media sites. On the other hand, events and promotional campaigns
will be also carried out outside colleges and corporate offices. Burgers will be distributed
with the help of physical as well as with the help of online store. This will make it very
convenient for customers to find and buy the products. Target customers- The target customers for new products will be the one which are health
conscious and looking for more healthierhealthier products. Market will be segmented on
the basis of demographic factors which are age and income level. The target customers
will be the one which belong to age group of 17 to 45. Furthermore people which belong
to lower and middle income group will be targeted by organization.
 Action plan- An appropriate action plan will be required to make sure that the above
stated objectives are achieved in on time. The brand will take suggestions from
employees and customers in order to develop burgerswhich will be healthy. Other
than this, ads will be displayed in outlets of McDonald's to make the people aware about
the new products. Social media, email and internet marketing will be also carried out to
promote new burgers.
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3.2 Importance of marketing planning in the strategic planning process for an organization
Strategic planning process is the one in which McDonald's develops its future
strategies and resources are being allocated in order to implement that strategy related to growth
and development (Montgomery and Chester, 2009). One of the main reasons behind carrying out
strategic planning process is to accomplish the organizations aim and objectives which cannot be
achieved with the help of marketing plan,.. McDonald's aims at increasing its
customerscustomer’s base and its present market share. Its core objectives includes enhancing
level of customerscustomers’ satisfaction, opening new stores and attracting new customers
every year. All these objectives cannot be achieved without having a proper marketing plan.
Other than this, the organization will be able to create awareness among people
regradingregarding the kind of products and services which are being offered by it (Peattie and
Crane, 2005). Marketing planning will also help in identifying the change in changing taste and
preferences of its buyers customers which is very important at the time of developing strategies.
Other than this, planning will also support in becoming aware about the strategies and prices
which are adopted by McDonald's major competitors. It can be also stated that planning will
support them McDonald' by providing guidelines and direction in developing strategiespolicies
(Cravens and Piercy, 2006). The organization will be able to determine their the prices and
strategies which will help them in accomplishment of aim and objectives.
3.3 Techniques for new product development
One of the best way to develop new product is by carrying out customer surveys.
McDonald's can carry out customerbuyer surveysreviews with the helpthe help of tools such as
questionnaires and interviews. This will help them in becoming aware about the change in
changing taste and preferences of peopleof people in market. On the basis of the information
provided by customers, modification can be done in existing products or new products can be
developed (Cartwright and Cooper, 2011). One of the main advantage of such kind of technique
is that the product is easily accepted by product userpeople in market. On the other hand,
competitorscompetitor’s analysis is also a very good technique which can be used by
McDonald's to develop new products. By carrying out an assessment of its rival product products
and their characteristics, the organization can easily create new products. Techniques such as
market testing can be also used by business enterprise. The organization can distributes sample
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of new products to few customers develop a sample product and can test the same toto few
customers. furtherfurther, feedback and reviews can be taken from customers people regarding
the taste and kind of modifications they want in the products. On the basis of those reviews,
McDonald's can develop new products easily. Techniques such as brainstorming can be also be
used in which the organization can take suggestions from all its employees and managers. It can
be stated that these are the people who which come comes in direct contact with the customers
(Hutt and Speh, 2005). Therefore, they are the one whowhich are well aware of
customersconsumers changing taste and preferences. New products can be developed on the
basis of suggestions provided by workers and managers of McDonald's.
3.4 Recommendations for McDonald's pricing policy, distribution and communication mix
McDonald's has always positioned itself as a very low price burger provider in all the
markets where it is operating. It can be also stated that the organizationorganizations always
seeks for implementation of implementing new process and technology that which can help in
lowering down its overall cost of production. This is the only reason why McDonald's is able to
provide its products at low prices as compared to all its major competitors (Vrontis and Pavlou,
2008). On the other hand, the brand operates with the physical stores and retail stores in order to
distribute its productsgoods and related services. Communication mix can be termed as those
methods and tools which are used by business enterprise to promote their products to target the
market segment. Communication mix of McDonald's includes advertisement on social media,
newspaper, television etc. Along with this special offers and schemes are also given provided by
the brand to promote its products. Recommendation provided to McDonald's are mentioned
below as:
 It can be recommended that McDonald's should bring new range of burgers with high
prices. Low prices strategy has helped the organization to attract a large number of
people from lower and middle income group. Individuals having in higher income group
do not prefer the products of McDonald's as they perceives their food products them as
of low quality because of their price (Hutt and Speh, 2005). By introducing some product
with high prices, it will be able to attract people from all income level.
 It can be also recommended that McDonald's needs to increase its home delivery services
in the markets where it operating its store. It can be stated that there are many places
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markets in which services such as home delivery is not offered by the brand products are
not delivered by McDonald's at their home (Markatos, 2006). By increasing services
such as home delivery, it will be able to attract more customers and gain more
satisfaction among them.
It can be also recommended that McDonald's should enhance its communication mix.
This mean they it should increase their activities such as social media marketing and mobile
marketing in all its market. This will results in promoting products to target customers in
more effective manner.
3.5 Factors3.5 Factors affecting the effective implementation of the marketing plan
McDonald's marketing plan can be affected by various factors and the organization is
required to take all these factorsissues into account. Change Changes in economic conditions and
demographic variable of market can have direct impact on its strategymarketing plan. Along
with this, modification in price or strategy of its major rivals will also effect McDonald's entire
marketing plan. All these factors are taken into consideration when the plan was developed
(Ardley, 2005) . ). The target market segment consists of a large number of potential
buyerscustomers. thereforeTherefore any kind of change in market composition will not have
much impact on its strategythe marketing plan. In addition to this, McDonald's have adopted
opted for a low prices strategy. This means that even in situation of economic downturn the
organization will be able to sell its products and services. The plan has been developed by
taking all strategies the strategies, product and pricing policy of McDonald's major
competitors into considerationaccount. Therefore, modification in actions plan of rival in the
above stated elements will not have much impact on McDonald's marketing plans (Talpau and
Boscor, 2011). Along with this, the plan will be monitored at regular intervals so that changes
can be made easily. Another factor which can affect the implementation of marketing plan is
skills and capabilities of employees. The workers are required to be given provided with proper
training and development sessions so that they do not have any kind of problem in using modern
marketing tools. This will results in obtaining the best and desired results associated with the
marketing plan (Montgomery and Chester, 2009). It can be stated that unskilled workers can be a
big factor factors which can affect the implementation of its McDonald's marketing plan.
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4.1 Explain how ethical issues influence marketing planning
It can be stated that ethical issues can have a direct impact on the marketing plan of
McDonald's. The aim behind developing this marketing plan is to increase customer base and
market share of the organization. Further it is also created with an objective of differentiating
McDonald's from all its major competitors (Crawford, 2015). At the time of competing with
other players in market, the organization needs to make sure that it do not encourage or promote
unfair any kind of unfair competition. McDonald's is a famous and renowned brand all around
across the globe and it is required to compete in ethical as well as in professional manner
(Sadjadi, Oroujee and Aryanezhad, 2005). If this is not done then it will enhance bargaining
power of all customersall its customers in market will start regulating competition between all
market players. Most of the time ethical issues are linked with marketing plan and are related to
disagreements and conflicts. It can be stated that before developing marketing plan,
McDonald's is required to carry out in-depth market research thenand it can face issues
related to privacy of data during the same (Hutt and Speh, 2005). The organisation is not
required to include and promote products which are harmful to the life of people. Therefore, it
can be stated that there are various kind of ethicalmoral issues which has been faced by
McDonald's at the time of developing its marketing plan.
4.2 Organizations respond to ethical issues
At the time of developing marketing plan and operating in business environment,
organizations that are operating in fast food industry are required to take care of all the ethical
issues. Further business such as Burger King, McDonald's and Subway needneeds to ensure that
they do not promote any kind of unfair practises. While developing their marketing plans, these
businesses make sure that they are not offering and promoting products that are harmful to
people who consumeeat that (Zeithaml, Bitner and Gremler, 2010). At the time of displaying
advertisement on social media, television newspapers etc. Tthe above stated organizations in
food industry do not use any kind of unfair means while competing with each other’s. Along
with this, these brand also take care of the fact that people in market are being served by
the best quality of products and services in reasonable prices. All the organization has started to
carry out healthy and fair competition among each other. In addition to this, they have also
considered competition policies and regulations which are abide by government and other bodies
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(Teeple, 2016). The organizations operatingworking in fast food industry also use technology in
order to operate in cost effective manner find out of hacking or any kind of information breach
from the side of media.
4.3 Consumer ethics and the effect it has on marketing planning
There are some ethics which are associated with the buyers people that which consume
the product offered by various brands in fast a food industry. An ethical consumer is the one who
which not only consume a products but also take care of issues related to environment and ethics
(Vrontis and Pavlou, 2008). A good and effective marketing plan can be developed only when
the each and every right of the consumer is taken into consideration. The consumerpurchaser is
required to make sure that he/she it is not using or consuming products that which are illegal or
which are against law. If such kind of products are being promoted and sold by marketing plan
then entire market will get and unethical behaviour will be spread in the same (Hollensen, 2015).
Therefore, it is required that the by organization should to take care of the consumer ethics at the
time of developing its marketing plan. McDonald'sMcdonald's is also required to ensure to
make sure that its products and services are not copied from what other competitors market
players in the industry are offering. Duplication or copying of burgers and other products is
illegal and the organization need needs to avoid such kind of practises. Therefore, it can be stated
that the McDonald's will be required to take care of consumerbuyer’s ethics and develop its
marketing plan according to the same. Ethics may force the organization to make some changes
and its products and plan.
CONCLUSION
From the above report it can be concluded that marketing planning is very important for
the success of an organization. At the time of developing effective plans, business such as
McDonald's needs to take care of various factors such as taste and preference of market along
with changing market trends . It can be also concluded that the organization organizations has the
capability to develop an appropriate plan for its marketing activities. Other than this, it can be
evaluated that McDonald's high brand value is one of its major strength. The organization is
facing tough competition from other market players. While developing their its market plan they
it needs to determine appropriate marketing mix and target customers. It can be also
concludeddetermined that suggestions from employees, managers and customers will be invited
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to develop new productproducts. Further the organization will use the social media, mobile and
email marketing to promote its new range and variety of burgers.
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<http://www.entrepreneur.com/article/43018>. [Accessed on 6th February 2016].
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<https://www.mcdonalds.co.uk/ukhome.html>. [Accessed on 6th February 2016].
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