Marketing Analysis of McDonald's and Burger King

The provided report presents an analysis of McDonald's marketing efforts, focusing on various departments working together to achieve business objectives. The marketing mix of McDonald's and Burger King is discussed in detail, exploring different functions such as selling, pricing, product management, and distribution. Key concepts like international marketing, services marketing, and hospitality marketing are also touched upon. A comparison between the two companies' marketing strategies is presented, highlighting their unique approaches to customer engagement.

MARKETING
ESSENTIALS

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1 ...........................................................................................................................................1
P1 Key roles and responsibilities of the marketing function......................................................1
P2 Roles and responsibilities of marketing relate to the wider organisational context..............2
TASK 2............................................................................................................................................4
P3 Ways in which the chosen organisation applies the marketing mix to the marketing
planning process to achieve business objectives.........................................................................4
P4 Basic marketing plan..............................................................................................................7
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Marketing refers to activities of an organisation related with purchasing and selling of
service or product. It consists advertising, selling and also delivering products to consumers. The
marketing is business process of developing the better relationship and also satisfying needs of
people. This present report is based on the McDonald and it is American fast food firm. It
provides cheeseburgers, hamburgers, breakfast items, milkshakes etc. Under this report will be
discuss about the roles and responsibilities of the marketing in related to marketing environment
(Baack, Harris and Baack, 2013). There will be discussion about ways under which firm applies
the marketing mix to marketing planning process.
TASK 1
P1 Key roles and responsibilities of the marketing function
Marketing is an action of selling as well as promoting of services or products involving
advertising and market research. It is a kind of management process by which services and
products are move from concept to consumer. It consists coordination of the four elements like
products, price, place and promotion. With the help of marketing, firm can gain the consumers
and also maintain relationship with them. The main goal of marketing is to match services and
products of company to people for enhance profitability level. In McDonald's, there is a
marketing department consists the different functions. They all are work together in order to
satisfy demands of consumers and gain their trust. Different functions of marketing mention
below as above:
Marketing Information Management- This function of marketing works as monitoring
marketplace, organising, analysing data collection results and also developing effective strategies
for the marketing activities in future. Under this, McDonald's use information software to know
about the needs of consumers, marketing environment and competitors. The need of marketer is
better information not more (Baker and Magnini, 2016). With the help of using Marketing
Information System, McDonald's can organise and also analyse data results, monitor
marketplace, develop effective strategies etc.
Product management- Under this, there is a role of product function is to design and
develop the products on the basis of needs of consumers. The product design consists decisions
which are related with quality standards to use for product design, packaging in context to make
1

goods attractive to target consumers as comparison to product of its competitors. Under this,
McDonald's make the packaging of its food items attractive and bring new food items with better
taste.
Pricing- It is one of most necessary marketing function to fix cost of products. Under this
cost of product is affected through profit rate, government policy, cost of competing product etc.
It is necessary that firm should maintain cost of products reasonable so that consumers can not
face any issue in purchasing and company can earn profit (Baker and Saren, 2016).
Promotion- It is related to informing customers about products or services of firm and
also encourage them to purchase these products. In order to aware the people about the new
products, firms use different ways such as personal selling, advertising, publicity etc. It is
necessary that the advertisement should be attractive and positively influence mindset of people.
In addition to this, McDonald's conduct its promotional activities by using the social media,
television, newspapers etc. Through using the social media tools, this firm connect with its
consumers in a better manner.
Selling- It is important function of marketing because in this main focus of firm is on
selling the products and services to consumers at the reasonable cost. The sales of firm is more
affected through promotion mix. It is related with prospective consumers to finish purchase of
products and consists transfer of products to purchaser. In addition to this, selling of McDonald's
is increased through means of advertising, personal selling, sales promotion and publicity
(Brooks and Simkin, 2012). Effectiveness in selling identifies volume of profitability of business
organisation.
Financing- This marketing function included use of capital in order to meet the financial
needs which dealing with different marketing activities. In order to conducting the different
marketing activities such as advertisement, launching products, there is a need of funds. So, it is
a responsibility of finance function to arrange as well as manage funds.
P2 Roles and responsibilities of marketing relate to the wider organisational context
Every organisation plays a very important role by the different departments of marketing for
maximising the overall growth of the company. Marketing department of McDonald's helps to
develop a strong market share in the fast food market globally. Marketing department uses
various advertising channels to communicate with other people in order to develop their future
2

growth of the company. There are some roles and responsibilities which interrelates the
McDonald's marketing with other department of companies, there functions are given below:
Production System: In this function of an organisation, it makes new or different food
items for their customer like the breakfast bowl, smoothies and so on. It influences lot of people
with the positive attitude in a effective way. McDonald's also uses just in time approach it means
goods and services are in a proper manner according to the customers when they are needed. For
good production system company give training to their employees in a perfect way. Therefore,
an organisation always opening new stores and hiring new employees for new locations. So that
they trained in right way with right job. In this context of company it is different aspect from
other industries because it have lot of resources and training programmes to their hired
candidates which help in achieving goals an objectives and also encourage to compete with other
organisations in effective way.
Research and Development: In this an organisation, it works with their supplier and
customers, so that they can be aware about important development in the industry. R&D is a very
important process McDonald's in which an organisation suddenly focuses on the customers
demand in order to development of McDonald's restaurants. Therefore, in the context of
interrelation R&D process is very differ from the other industries so that company can easily
achieve their goals by this function.
Administration: It is very essential function for every organisation. This is the range of
various activities that all are connected with organising way. Therefore, McDonald's uses this
function for trained their employees in a good manner (Clow and James, 2013).
Customer Services: In this system, customer service is the act of taking care of the
customers and fulfil their needs and demands. In the context of McDonald's it is very helpful
function which contact their customers and tell them about new food items or shakes which can
help in achieving goals or objectives.
Sales: McDonald's sells their product all over the world with high quality of foods so that
they can easily achieve their goals. It also helps in faces competition in the dynamic business
environment.
Distribution: McDonald's distributes their food items through their own stores across the
world. It also helps in making brand loyalty in front of the customers.
3

Marketing: McDonald's is a biggest fast food chain which have spread in more than 100
countries around the world with 80% outlets based on a franchise model.
Human Resource: McDonald's have lot of resources such as compensation and benefits
for their employees, recruiting and hiring candidates, performance management and different
culture of the firm. Therefore, it helps in increasing the profitability of the fire in a good way.
Finance: In this function of an organisation, finance plays a vital role in order to
allocation of assets and liabilities over the space and time. In the context of McDonald's, finance
manager keeps all data safe and provide correct information related to fund for their employees.
TASK 2
P3 Ways in which the chosen organisation applies the marketing mix to the marketing planning
process to achieve business objectives
Marketing mix refers to combination of factors which can be controlled through firm to
influence customers to buy its products. It is set of actions that firm uses to promote product or
brand in market. The marketing mix consists different components such as product, price, place
and promotion. Under this, marketing mix of every company is different from the each other.
There is a comparison of marketing mix among the McDonald's and Burger King (Dibb and
Simkin, 2013).
McDonald's is American Fast Food company and located in United States. It is one of the
largest restaurant chain in terms of revenue in world and serving more than 69 million consumers
daily. This firm is better known for soft drinks, chicken products, hamburgers, French fries etc.
On the other hand, Burger King is global chain of hamburger fast food restaurants and it is
establish in United Kingdom. The marketing mix of both firm include different components
which form core of marketing system or organisations and helpful in attain set objectives in an
effective manner.
Marketing mix comparison between McDonald's and Burger King
Basis McDonald's Burger King
Product McDonald's firm places emphasis on
developing menu that consumer
want. The product mix of
McDonald's composed in beverage
Burger King operate as quick
service restaurant business that
focus on the burgers and also its
main food items. It provides
4

and food items, the main product line
of this fast food restaurant is chicken
and fish, beverages, shakes and
desserts, McCafe etc. McDonald's
also provides range of the breakfast
sandwiches that consists Hamdesal,
biscuits and many other items.
various variety of menus started
from snack to meal for various age
groups. It has wide range of
offerings such as beverages,
milkshakes, burgers etc.
Price McDonald's include different price
bundling strategies which provide the
bundling products with meals for
consumers, in order to assure
consumers to purchase more
products, the main focus of
McDonald's is on psychological
pricing strategies that appear the
affordable to consumers (Lane,
2016). Its pricing strategy is adapted
to tap middle lower section of
society.
The Burger King follows Market
oriented pricing strategy and
Bundles pricing strategy, it has
prices which comparable to the
market demands and behaviour.
The main focus of Burger King is
on providing better taste and
quality with affordable costs.
Place This marketing mix element
enumerated locations where the good
are provided and consumers can
easily access. The restaurant of
McDonald's are found in more than
110 countries and operate more than
3600 restaurant in all over the world.
It has various kind of restaurants
such as McDonald's next, Mc
Express, Mc Drive etc.
This firm has strong supply chain
network and its all operations are
distributed according to region. It
has website ordering, developed
physical stores and the mobile
application in order to enhancing
consumers to reach for getting the
orders and maximizing revenues.
Promotion For promotion purpose, McDonald's Burger King applies different way
5

spent more money. This firm make
use of billboards, signage sponsors,
newspaper ads etc. The TV ads of
McDonald's engaging people in some
popular activities.
to market its products. It provide
its advertisement through
hoardings, newspapers and
magazines. Burger King sponsors
or organise various events in order
to reach at more consumers.
Providing the value added menu
for main course at the time of
ordering is its better strategy
(Lipsman and et. al., 2012).
People This company has unique way to
address its consumers and also treat
its staff members in a better manner.
Its staff have dress code to follow
and firm emphasis on its employees
to be consumer friendly, cheering
and also have the affection for
people. The main goal of this
company is to attain customer
satisfaction (Mitchell, 2012).
The main focus of Burger King is
on its staff and consumers. The
satisfaction ratio of its consumers
is high as comparison to the other
fast food restaurant, it provides the
quality food items with fast
service.
Process McDonald's focus on its cooking
process or methods and also make
improvement in this on regular basis.
It uses sophisticated equipments for
food processing and the new methods
related to food distribution ad
packaging.
It is main part of operation that is
design through expert to operate
business internationally. Burger
King operate its business in more
than 71 countries by maintaining
proper taste, consumer satisfaction,
new product launches etc.
Physical evidence McDonald's leaves good impression
in terms of physical evidence. It
develops big impact on mind of
It has presence in more than 15000
location with over 71 countries.
Locations of Burger king are
6

consumers, attribute related to the
physical evidence showed are
quality, cleanliness, hygiene, service
speed etc. Most of its restaurants
display the brand colours and also
visible evidence of brand which they
want to be promote.
maintained in a manner that
capture the target audience. Mainly
it has restaurants in business
centres, canteens in company and
shopping malls in order to grab
large number of consumer base
(Mueller and et. al., 2015).
P4 Basic marketing plan
Marketing plan is a main part of overall business plan. It is comprehensive document that
outline overall marketing effort. It is blueprint that outline how an organisation will execute its
marketing strategy and also use combination of the resources in order to attain the objectives.
Overview of McDonald's
McDonald's is a fast food company and it is founded in year 1955. It is operated through
Maurice and Richard McDonald in California. In al over the world, it is a largest restaurant chain
that serving more than 69 million consumers in over 100 countries. This restaurant is best known
for its cheeseburgers, chicken products, hamburgers, soft drinks, desserts, breakfast items and
many others. It is second largest private employer with 1.9 million of employees and whom 1.5
million work for the franchises (Papasolomou and Melanthiou, 2012).
Vision of McDonald's
The vision of McDonald's is to provide the experience of better quick service restaurant.
Better means providing the outstanding service, value, quality and cleanliness so that every
customer in restaurant can make smile.
Mission of McDonald's McDonald's
McDonald's mission is to make the favourite place and way to drink and eat. Its mission
highlight importance of consumers as business focus while maintaining organisation as main
influence on purchase decision of beverage and food.
SWOT Analysis of McDonald's
In context to develop the effective marketing plan, there is a need to McDonald's to
analyse internal environment with the help of conducting SWOT Analysis. The SWOT Analysis
for McDonald's mention below:
7

Strengths
 The main strengths of McDonald's is
that it has rolled out new items
successfully such as Angus burgers,
coffee and smoothies (Pike, 2015).
 With strong product offering, firm has
enhanced income through recession and
also notching the strong enhanced in
sales of same- stores.
Weaknesses
 It face issue related to weak personality
because it has maintain perception that
its food is unhealthy and loaded with
sugar, crabs, fat etc.
 While annual dividend hikes to
continue, dividend growth rte has been
declining and will continue to slow.
 At McDonald's, most of the jobs are
low paying and low skilled. So, there is
more amount of the employee turnover.
Opportunities
 There is an opportunity to McDonald's
to expand its business in China.
 It can make some innovations in its
menu.
 It can focus on Corporate Social
responsibility for minimizing impact on
community linkages as well as
environment.
Threats
 The government is considering the
regulations by targeting fast food.
 It face competition from the strong
peers such as Burger King and Yum
brands (Purvis, 2015).
STP of McDonald's
Segmentation- It refers to dividing the population in to groups in the basis of
characteristics. Its main motive is to know consumers in detailed manner. The McDonald's uses
only demographic segmentation strategy with criteria of age.
Targeting- It implies selecting the particular groups to determined as result of
segmentation in order to sell products. The target group of this firm is youth and children from
upper and middle class.
Positioning- McDonald's developed unique image in mind of customers and it use to
develop the alternate positioning related strategy for various target market as comparison to other
rivals. It is fun filled fast food restaurant that joint whole family to enjoy.
8

Marketing strategy
It is process that allow a business firm to concentrate limited resources for getting better
opportunities in order to enhance sales (Tripathi, 2013). McDonald use different marketing
strategy such as Distribution, competitive benefits, brand equity etc.
Execution
In this, execution of well developed strategies is necessary for the McDonald's form in
order to attain set objectives with in given period of time. It will help in contribute to firm and
gain competitive advantage.
Evaluation: It includes all decisions as well as actions which are taken through
organisation. Under this, there are different methods mention below: Sales Analysis: It is mainly used through business firms in order to calculate the sales of
different products which are provided through McDonald's such as burgers, French fries,
cold drinks, coffee etc. Market Share Analysis: It is mainly used through organisation for analysis as well as
indicate that how well business is doing in marketplace as comparison to its strong
competitors.
Efficiency ratios: It is used through McDonald's to identify cost and also sales arise in
particular year. With the help of this, firm can calculate its profit (Tyson, 2014).
Marketing Budget
It refers to estimation of cost amount that will be necessary in promote crevices as well as
products. It is a main part of marketing plan and determine the estimated expenditure in future. It
consists the promotional costs such as public relation, office cost, employing staff, promotion
and other different activities.
Marketing budget
Particulars 1st year 2nd year 3rd year 4th year
Initial money 6000 12000 12000 12000
9

Investment 4000 17000 23000 30000
Total 10000 29000 35000 42000
Marketing outlay
Promotion 11000 5000 10000 12000
Sales publicity 3500 3000 3000 6000
Direct selling 4000 16000 3500 5000
Total 18500 24000 16500 23000
CONCLUSION
It has been concluded from the above mention report that marketing is an important
concept that develop the better interaction among buyers and sellers. In McDonald's, there are
many different departments which work together for attaining the specific objectives of business.
The roles and responsibilities of different marketing functions are differ from each other like
selling, price, product management etc. There has been discussion about the marketing mix of
McDonald's and Burger King for better process of marketing planning in order to attain the set
objectives.
10

REFERENCES
Books & Journals
Baack, D. W., Harris, E. G. and Baack, D., 2013. International marketing (Vol. 3). Sage.
Baker, M. A. and Magnini, V. P., 2016. The evolution of services marketing, hospitality
marketing and building the constituency model for hospitality marketing. International
Journal of Contemporary Hospitality Management. 28(8). pp.1510-1534.
Baker, M. J. and Saren, M. eds., 2016. Marketing theory: a student text. Sage.
Brooks, N. and Simkin, L., 2012. Judging marketing mix effectiveness. Marketing Intelligence
& Planning. 30(5). pp.494-514.
Clow, K. E. and James, K. E., 2013. Essentials of marketing research: Putting research into
practice. Sage.
Dibb, S. and Simkin, L., 2013. Marketing essentials. Cengage Learning.
Lane, P., 2016. Human resources marketing and recruiting: essentials of employer branding.
Handbook of Human Resources Management, pp.23-52.
Lipsman, A. and et. al., 2012. The power of “like”: How brands reach (and influence) fans
through social-media marketing. Journal of Advertising research. 52(1). pp.40-52.
Mitchell, B. L., 2012. Game design essentials. John Wiley & Sons.
Mueller, J. P. And et. al., 2015. Community‐based livestock breeding programmes: essentials
and examples. Journal of Animal Breeding and Genetics.132(2). pp.155-168.
Papasolomou, I. and Melanthiou, Y., 2012. Social media: Marketing public relations’ new best
friend. Journal of Promotion Management. 18(3). pp.319-328.
Pike, S., 2015. Destination marketing: essentials. Routledge.
Purvis, J., 2015. Human resources marketing and recruiting: Essentials of digital recruiting.
Handbook of Human Resources Management, pp.1-19.
Tripathi, K. D., 2013. Essentials of medical pharmacology. JP Medical Ltd.
Tyson, S., 2014. Essentials of human resource management. Routledge.
Online
McDonald’s Marketing Mix (4Ps) Analysis. 2019. [Online]. Available through:
<http://panmore.com/mcdonalds-marketing-mix-4ps-analysis>.
11