Strategic Marketing Analysis of McDonald's

This report provides a detailed analysis of McDonald's strategic marketing approach, including market analysis, campaign strategy, implementation, budget, and recommendations. It explores the company's key marketing objectives and highlights the importance of customer satisfaction. The report also discusses the use of the RACE framework for digital marketing and suggests strategies for service differentiation and promotional mix. Additionally, it emphasizes the need for employee training and development and the importance of understanding customer preferences and tastes.

MG529 STRATEGIC
MARKETING

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Market analysis............................................................................................................................1
Organizations key marketing strategy objectives........................................................................3
Campaign strategy.......................................................................................................................4
Strategy implementation..............................................................................................................5
Budget..........................................................................................................................................5
Recommendations........................................................................................................................6
KPI of McDonald’s......................................................................................................................7
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Marketing is defined to be one of the assets that will bring about the set of opportunities
that are associated with sales and in return increases the growth prospect of the organization.
strategic marketing is defined to be an authentic support to every organization in maintaining the
choices and the principles of the organization. The entire report will bring forth the prospect of
strategic marketing and its components. The company that is chosen in this regard is Mc
Donald's. This company is the American fast-food company established in 1940. Its business
with respect to the fast food purchase by the consumers is one of the prominent strategic
approach and that is depicted in the report.
MAIN BODY
Market analysis
Market for McDonald’s has increased a lot over the years. Statistically speaking in the
global fast food market the growth has been huge since 2006. The growth of this market
automatically developed the business of McDonald’s over the years. McDonald’s was one of the
leading fast food industry which has more than 30,000 restaurants in many countries. The
success of this company was mainly due to the policy which it started in its restaurants. This
policy was quality food, fast food, friendly service and restaurant cleanliness. The major reasons
for success is the drive through restaurants. The customers of this company variable to drive
through the stores and make their orders while being in the car. Number of employees working
for this company is also very huge (Abratt and Bendixen, 2018).
In the past food industry the competition is really very high. Show me the competitors of
McDonald’s are Burger King subway KFC and also Taco Bell. The biggest competitor of this
company is KFC and Burger King as this will provide the customer very similar product’s as that
McDonald’s. The market of this company is very much dependent on the customers and their
taste. Due to the tough Competition faced by this company a rivalry has developed between these
companies. For staying in the competition all of these companies concentrate on beating each
other with new strategies.
For understanding the macro environment analysis of McDonald's PESTLE analysis is
used.
Political :
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In this company the employees and job applicants are selected trained and also treated
differently on the basis of their skills talents and also performance. There are no discrimination
in this company regarding any race nationality colour gender etc. The political environment of
the country in which this business will be operating can affect its operation (Das and Saha,
2017).
Economic
The rate of taxes, inflation and also the economical condition of the country in which
McDonald’s is present affect the operations of the company. During the time of Covid 19
pandemic the whole world was going through a economic crisis this shows how effective the
economical condition is on the business of the company.
Social :
This company needs to keep its product standards according to the social preferences
regarding nutrition and also need to make sure that the company is providing safe and hygienic
food to the customers. In certain countries the preference of the food is very different therefore
the McDonald's has to make alteration in its menu for keeping up with society (Haque and
et.al.,2017).
Technological :
This company has used technology for its advantages many times. It uses technology for
enhancing the user experience. With the help of digital screen it provides a proper view of the
products it has available for the customers.
Environmental :
McDonald's has to keep proper care about its waste management in a country as there are
strict rules in many countries regarding their waste management. Poor waste management by this
company can also lead to running the image of the company which can affect the business of the
company.
Legal :
Change in any regulation and legislation in the country that can affect the operation of
this business can influence McDonald's to change it business activities. It is important for the
company to follow the rules and regulation which are instructed by the governments regarding
the health and hygiene (Nobre and Faria, 2017).
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For the micro analysis of McDonald's the 4 Ps of marketing mix are used,
Product :
This company sells a variety of fast food which includes mainly hamburgers and
cheeseburgers. It also contains other food items like sandwiches and French fries. It is important
for the company to understand the need of innovation in the business.
People :
The customers of this company are all kinds of people. However, the as being a fast food
company the customers which visiting the stores of this company are less concerned to their
health and this company fail to attract the health conscious section of the society (Onegi, Eser
and Korkmaz, 2019).
Process :
This company just like other fast food companies have a process which it used for the
production of its fast food. It helps the company to maintain consistency in its quality of food.
Without having a proper process of production the company will not be able to satisfy the
customers repeatedly.
Price :
For maintaining it positions in the competitive market this company has to charge the
customers reasonable amount for its food. It is important for the company to keep its price less
than the company as the customers can switch very easily as the price and product both are very
similar (Razumova, 2019).
The customers of this company do not have to spend any cost for substitution as the other
competitors of McDonald's provide the similar products and similar prices. Due to this the
customers services is very important for the company. It is very important for this company to
understand the needs of the customers an implement it before the competitors of the company do.
The stakeholder for this company are very important as they provide the company
resources in one way or the other. Stakeholders of this company are employees, customers,
shareholder and other who have interest in the company. It is important for the company to
discuss new strategies with the stakeholders before their implementation.
Organizations key marketing strategy objectives
The key to success of the business of McDonald's is the focus of the company on the
customer's satisfaction. The marketing strategy of this company is always related to the
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customer's satisfaction. This is helpful to the company because the customer which are satisfied
with company. Thus, it can be said that the key objective of the marketing strategy of the
company is to keep the customers satisfied. The company also focuses on making its product
better that the main rivals of the company. This helps it to gain competitive advantage which is
extremely crucial for the business (Schyvinck and Willem, 2019).
Campaign strategy
Purpose for campaign strategy :
The purpose of campaign strategy is to create an effort that can create a change.
McDonald's needs proper planning which is thoughtful and guide to success. The success of this
company is by providing customer satisfaction. For this the company utilizes the campaign
strategy before taking any actions as this strategy focuses on both the positive and negative
aspects (Pafitis, 2020).
Market opportunity :
This company is very famous and has developed a very successful brand image in the
market. Thus, the campaign strategy of McDonald's provides it different opportunities. It helps
the company to gain new customers with its expansion in different markets. Continuous
introduction of new products in the menu also becomes successful as the customers are keen on
trying the new products of the company. Due to its brand image the customers have developed
great trust in the company.
Target Audience :
The target audience of the company are all kinds of customers, starting from the people
who want to visit for a snack, or the people who purchase in drive through and also the
customers which order their products online for home delivery.
General campaign messaging :
These messages are core informations which the company wants its target customers to
hear and remember. For this company the general campaign message is “I'm Loving It”. This is a
very effective message as it shows that the person eating the food of McDonald's is always
loving it.
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Strategy implementation
Race Frame work is used for helping the digital marketing plans for managing the digital
marketing strategy of the company (Chaffey, 2020). The RACE frame work stands for Reach,
Act, Convert and Engage.
Reach :
Reach means building awareness of the brand of McDonald's, it increases the awareness
of its products, services and also image on websites. This company can reach the customer with
the help of social media. In social media the company can post images and offers which will
attract the customers to the products.
Act :
In this part of the framework the company needs to interact with customers with the help
of website, application or social media. It is important for the company to make a procedure for
interacting with the customers. For example the customers which reach to the social media post
of the company can be demands their mobile number and email. This information can be used by
the company for later in the process of engaging.
Convert :
After the company has made interaction with customers it's the time to convince the
customers for purchasing the products of the company. McDonald's does it by provide quality
food and service. Quality of the food it a very effective way of convincing the customers
although this company can also attract customers by introduction of great offers (Stone and et.al.
2020).
Engage :
For the development of relationship with the customers after the sales. The company
stays in touch with them through emails and social media. It helps the company to retain the
customers and also provide with new offers. It is very important for this company to
communicate with the customers as the customer in this market have to spend very less cost of
substitution as the competition is huge.
Budget
Budget for the marketing strategy of McDonald's store
Particulars Amount $ Amount $
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Total Sales 50000
Less General expenses -2000
Less Cost of Production -20000
Less taxes -5000
Less Wages and Salaries -10000
Total operational expense -37000
Gross Profit 13000
Less Advertisement -2000
Less Online Promotions -1000
Less Customer Service -2000
Total non-operational expense -5000
Net Profit 8000
This shows the budget of McDonald's while implementation of the marketing strategies
discussed in the above discusses. In this budget the company is having to spend more on the
promotional activities of the business which increase the customers of the company.
Recommendations
As McDonald’s is one of the largest company and operating in most of the countries. It is
one of the largest chain of restaurants which is operating in the globe (Macdonald, 2021). So it is
recommended to the company that they must focus on service differentiation strategy. As per this
strategy McDonald’s must provide superior services to each and every consumer. They must
provide Quality Services when any consumer order their desired product still the delivery of the
product it is the responsibility of McDonald’s that they must provide differentiate services.
Another recommendation to McDonald's is that they must provide training and
development to their employees because High Quality Services and differentiated services can
only become possible when the staff of this company is well-organised and trained. Staff of
McDonald’s must know how to treat their customers and how to fulfil their needed and desired
product. So this company must invest in high quality training program so that employees get
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proper training. Another recommendation to this company is it must use promotional mix which
means Company should focus on traditional and modern marketing so that the increased event
sales apart from this more and more consumer get to know about McDonald's as in many
countries still people and not having proper information about McDonald's and their
products. Show with the help of proper digital as well as traditional marketing McDonald’s can
create a good market for them and can give tough competition to other restaurant and their
products. Another recommendation to this company is that they must provide wide range of
products and also provide integrated product as for the needs and taste of the consumer. As in the
covid-19 people get more conscious about their health and their preferred to eat healthy and
green products so McDonald’s must focus on full feeling the need of consumer so that their sales
do not get decreased. Along with this McDonald’s should focus on the taste and preferences of
the customers as in different country people have different taste and desire so McDonald’s must
fulfil them. So that this company can win the hearts of customers.
KPI of McDonald’s
McDonald’s have many KPI which makes this company more profitable and in some
countries it is giving tough competition to other restaurants. Apart from this, quality of their
product and services makes this company profitable apart from this cost of goods sold is also low
for this company. Which company is offering affordable products to their consumers and this
company knows very well how to play with the taste of products and bike customization to their
customers. This company is continuously working for employee welfare and satisfaction and
therefore employees are also working hard and producing quality work for the company so that
the customer satisfaction can be increased. Apart from this company is effectively setting their
objectives and goals and communicating to their employees as well so that they may produce
better services and work for the Company. McDonald’s constitutional working on marketing
techniques as well.
CONCLUSION
Through this report one can easily understand the Market Analysis and the various
factors that are included in it by the onset of criteria which is one of the competitor analysis. This
will help to portray the maximization of the organization on good terms that are essential for the
organization to win over the market competition. A campaign strategy is included along with the
strategy implementation that will help to move ahead with the strategic approach and the
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reasons, opportunities and the target customer group are all mentioned in the report. The
organization Mc Donald's is put forth to explain the basic techniques that are in regard to the
organizational profits.
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REFERENCES
Books and Journals
Abratt, R. and Bendixen, M., 2018. Strategic marketing: concepts and cases. Routledge.
Das, M. and Saha, V., 2017. A Study on Consumer Ethnocentrism and Social Comparison in
Rural India: Implications for Marketing Strategy. South Asian Journal of
Management. 24(1).
Haque, A., and et.al.,2017. Measuring the impact of marketing capability and market control
beliefs on marketing strategy intention: a study on travel and tour agents in
Malaysia. International Journal of Islamic Marketing and Branding. 2(2). pp.134-155.
Macdonald, I., 2021. Picturing Haitian Earthquake Survivors: Graphic Reportage as an Ethical
Strategy for Representing Vulnerable Sources. Journalism Practice, pp.1-21.
Nobre, H. and Faria, J., 2017. Exploring marketing strategies in architectural services: the case of
the architecture firms in Portugal. International Journal of Business Excellence. 12(3).
pp.275-293.
Onegi, M., Eser, Z. and Korkmaz, S., 2019. Consumers’ evaluation of glocal marketing
strategies of global firms in Turkey: An example of a glocal product. International
Journal of Business and Administrative Studies. 5(3). pp.109-118.
Razumova, S.V., 2019. Strategic marketing: educational-methodical complex (electronic
educational-methodical complex) for the specialty 1-26 80 05" Marketing", 1-26 80 03"
Business Administration".
Schyvinck, C. and Willem, A., 2019. From cause-related marketing strategy to implementation
in professional basketball organizations: a matter of alignment. European Sport
Management Quarterly. 19(1). pp.58-79.
Stone, M., and et.al. 2020. Artificial intelligence (AI) in strategic marketing decision-making: a
research agenda. The Bottom Line.
Online
Chaffey.D., 2020. Introducing the Race framework.[Online] Available trough:
<https://www.smartinsights.com/digital-marketing-strategy/race-a-practical-framework-
to-improve-your-digital-marketing/>
Pafitis., E, 2020. McDonald's marketing strategy.[Online] Available trough:
<https://www.startingbusiness.com/blog/marketing-strategy-mcdonalds>
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