Marketing Plan for McDonald's: Global Strategy, SWOT, and Analysis

This report provides a comprehensive marketing plan for McDonald's, analyzing its current marketing techniques, brand reputation, and global networking strategies. It explores the application of Porter's Five Forces model and SWOT analysis to assess the competitive landscape and identify opportunities for future expansion. The report examines McDonald's international marketing efforts, including its approach to understanding consumer preferences and adapting its products and services to different markets. It also delves into the challenges and opportunities associated with global networking, such as tax rates and language barriers. Furthermore, the report discusses McDonald's brand image and the factors influencing its reputation. Finally, the study highlights the potential for future business expansion through innovation and market diversification, providing insights into how McDonald's can maintain its competitive advantage in the fast-food industry. This assignment is contributed by a student to be published on the website Desklib.

Marketing Plan for
“McDonald’s”

EXECUTIVE SUMMARY
Research study is based on Mc Donald and main attempt is made to identify areas where firm
can work to improve its business. It can be observed that firm is currently serving number of
products to the people across the nations and is planning to expand its business. It can be
observed that bargaining power of customers is high but limited substitutes are available in the
market. There is threat from new entrants as it can be observed that new players are giving tough
completion to large restaurant chains. Here, firm is facing threat to its business. In case of
Ansoff matrix application on firm it is identified that there are ample opportunities that firm can
explore in its business. It must make innovation in its products and must enter in to new market.
By doing it can accelerate its growth rate in business.

TABLE OF CONTENTS
Main Body.......................................................................................................................................5
1. Current marketing techniques...............................................................................................5
2. Brand reputation....................................................................................................................8
3. Global Networking..............................................................................................................12
4. Future Expansion Opportunities.........................................................................................15
Introduction......................................................................................................................................3
References......................................................................................................................................18
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INTRODUCTION
In the modern corporate era, competition is very high. Today, many firms are offering
similar kinds of products to consumers. To sustain in the market for longer duration, most of the
firms are taking support of marketing strategies so that they can gain attention of target audience
and can offer them products as per their requirements (Ghobadian and O’Regan, 2014). Earlier
companies were not paying much attention on their customers but now, they are working on
customer centric approach and producing products as per the choice of end users in order to
enhance their level of satisfaction and to make them loyal towards the brand. International
marketing can be defined as an application of marketing principals through which companies can
establish their brand in global countries. In the recent scenario, firms are free to expand their
business across the border but for that, it is essential for them to know about the needs and
preferences of target audience. It is the major component in business environment that provides
various benefits to the host country and enhances the brand reputation of entity (Blois and
Hopkinson, 2015). Marketing is an essential function and most important part of business
operations now a days. It assists in increasing visibility of brand across the world that helps in
enhancing the sales revenues of organization to a high extent. In addition, it supports in
developing relationship with the target audience and identifying their needs so that company can
offer them satisfactory products and make them loyal towards the brand. It enhances the
credibility of firm and improve its brand position in the competitive market (Chkhartishvili,
2014).
It is important that firms understand the needs of target market as it is highly dynamic
and can influence the overall operations of entity. There are many multinational firms that are
working in different countries. Their main objective is to expand their business across the world
and to improve the brand image of companies. Most of the people buy products and set their
mind for the entity by looking upon its advertisement (Marjanova and Jovanov, 2016).
Marketing plays a significant role in the organization and supports in accomplishment of the set
goal. With the help of sound marketing strategies, companies can influence the clients and create
positive business environment. It is a great way through which corporations can enhance their
revenues and gain competitive advantage (Fortunato, 2016).
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Present report is based on McDonald’s which is an international company that operates in
many nations across the world. It has more than 1200 restaurants in which it has hired skilled
people who can deliver quality food to the customers and able to gain trust of target audience. It
serves fast food and cold drinks to the consumers as well as pays attention on the needs of
population. Thus, according to their preferences, it serves them food and services (Werner,
2013). McDonald’s is the only firm which has large consumer database and all its users are
satisfied with the high quality services of brand. This strategy has helped the entity in building a
strong brand image in the corporate market. Its products are hamburgers, cheeseburgers, chicken
products, French fries, soft drinks, etc. that are the popular items which company offer to its end
users. Being an international firm, McDonald’s take support of several approaches in its
marketing mix strategy in order to get optimistic outcome. Firstly, it understands the specific
needs of target audience of particular location and accordingly, it offers products to the
consumers. This strategy assists the entity in attracting more people towards brand and helps in
gaining their attention (Alcock and Baig, 2014).
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Marketing mix strategy of McDonald’s is highly effective that assists in making things
favorable towards the entity. Cited firm has 47 million consumers all over the world and it is able
to satisfy the needs of children, men or women. Statistical records show that global sales of cited
firm in the year 2015 was over $40 billion (Khattri and Prakash, 2016)
Current assignment will discuss the current marketing techniques of McDonald’s.
Advantage of international marketing will be described in this part of study. Furthermore, it will
explain the degree to which cited firm has successfully implemented the market expansion
strategy internationally. In the next phase of report, brand reputation of McDonald’s will be
described. International marketing has helped the cited firm in developing a unique brand image
in the mind of consumers. Study will also discuss the brand reputation of organization and
factors that are affecting the goodwill of entity. .
Third part of report is all about the global networking (Hussain and Siddiqui, 2016).
Expanding the business into international market gives huge benefit to organization. It helps in
increasing number of consumers of entity and gives the cited firm new opportunities to grow at a
high pace. Present report will explain the current and potential benefit to McDonald’s which is
experienced by the cited firm from global networking. Issues that are affecting business of
company such as tax rates, language barriers will be discussed in this assignment. Several
marketing tools will be introduced and with the help of this, global networking of McDonald’s
will be explained.
In addition to this, factors that can help in shaping the business strategy of entity will be
described in this report. International marketing helps entity and gives new opportunity to the
cited firm for its future business expansion (Marjanova Jovanov, 2016). In the report, SWOT
analysis, porter's five forces model, organizational strategy and structure of McDonald’s will be
used as marketing tools. The study will focus on the marketing and business environment of the
entity. International marketing strategy of cited firm will also be described in this report.
MAIN BODY
1. Current marketing techniques
Marketing is one of the great elements that help in accomplishing the goal of
organization. It is the tool that assists in knowing the tastes and preferences of consumers of
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particular place and accordingly, companies can design its operations. It helps in getting
established in the global market to a great extent. McDonald’s is working tremendously in the
UK and there is a strong chain of fast food (Werner, 2013). Cited firm analyses needs of target
audience and accordingly, it delivers them products. There is a wide range of products for
children, men and women. In the UK, growth of McDonald’s is high and number of customers
are increasing day by day. Sales revenues of the entity has increased to a great extent as
compared to the previous year (Alcock and Baig, 2014).
There are varied dishes that are prepared by Mc Donald and same are tested before
finally introduced by the firm. Table service and etc are some attractive features which have
been added by McDonald’s in the UK in order to attract consumers (Svetlana, 2017):
Illustration 1: Porter's five forces
(Source: Ghobadian and O’Regan, 2014)
Competitive rivalry
MacDonald has a strong chain and good command over market. Initially, it has faced
huge competition in the UK market but later on, it has captured high market share in the food
industry (Ghobadian and O’Regan, 2014). It is a strong force that put a high impact on the
overall business operation of organization. In the United Kingdom, there are many firms that are
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working well but McDonald has performed well in this location and created a positive image of
brand in the minds of consumers. Clients of the firm are increasing and it helps the cited firm in
gaining competitive advantage over others (Chkhartishvili, 2014).
Bargaining Power of customers
Consumers are the back bone of entity. They are the assets of organization. Bargaining
power of customers is very high because they can influence business of the entity to a great
extent. If they switch to their brand then it can affect the overall sales volume of organization.
But MacDonald has performed well and it has served the consumers well. It has identified the
needs of them and accordingly, it has set its menu so that all age group people would like its food
and can enjoy in the restaurant (Werner, 2013).
Bargaining power of suppliers
It is another element of porter's five forces model which defines the bargaining power of
suppliers in organization. UK is the developed country and there are many suppliers those which
are supplying the raw material to the entity at lower rates and they are supplying the quality
products to cited firm (Chkhartishvili, 2014). Power of suppliers is moderate because McDonald
have a strong chain of suppliers and if any supplier does not provide them satisfactory raw
material then company can switch to another one easily.
Threats of substitute
It has been analyzed that McDonald's have strongly Forces as the aspects of all Porter's
five forces. Thus, this are mainly impacts of substitute potentially on firm's overall growth. In
context to McDonald's there are mainly some external forces that make the strong force of threat
of substitution:-
 Low availability of substitute ( Strong force)
 Low cost of switching (Strong force)
It has been founded that there are several substitutes of McDonald's goods and services
such as these products from local bakeries and artisanal food manufacturer. Most of the customer
can easily cook its food at the home (Fortunato, 2016). The switching cost of is low as they can
effectively shift from the substitutes of McDonald's. In addition, the substitute of this food
company are more competitive in regard to both consumer satisfaction and quality terms. It is
that type of element of Porter's five forces under which the issues for a company relates to
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substitutes is that they must needs to be address by approaches such as improvement of product
quality (Chkhartishvili, 2014).
Threats of new entrants
It is another part of five forces porter in which they are directly affecting the market share
of a McDonald's. It can be defines as that there will be impact on the existing firms due to new
player in the market. In context to McDonald's it has been evaluating that there is a moderate
force of threats of new entrance. Thus, it is mainly based upon the various external that are
described as follows:-
 Cost of brand development is higher (Weak force)
 Capital cost is Moderate (Moderate force)
 Switching cost is low (Strong force)
Switching cost is lower as the customers can effectively shift from McDonald's to new
fast food company’s restaurant. It has been further analyzed that there is moderate cost of capital
cost of developing a new one restaurant which makes them moderate force. Thus, most smaller-
medium sized enterprise are directly impacts the business of McDonald's (Svetlana, 2017).
Therefore, it has been also analyzed that it highly expensive to develop brand reputation that are
directly match with the McDonald's brand.
2. Brand reputation
Brand reputation can be stated as that it is that specific brand whether it is a company or
an individual that is mainly viewed by another people. It can be only when the consumers are
start trusting on company and they feel comfortable after that they buy goods or services. Most
firms can effectively able to build a brand image through adoption of various marketing
strategies such as public relations and usage of traditional advertisement. There are various
elements that are needed to be involve in the brand reputation that includes brand attributes are
value, shopping experience, quality and shopping experience. Further, reputation of brand
attributes that are mainly involves citizenship, job creation, community building and corporate
culture (Blois and Hopkinson, 2015). It has been founded that the McDonald's has ranked 10 for
a brand images as they provide brand value to its customers in between 2003 to 2014. For this,
they can earn more income that is 24.7 to 42.3 billion. Thereafter, it has been analyzed that the
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brand value of McDonald's starts declining that are nearly sits 7% below for their peak. Apart
from this, the ranking that are mainly based upon the key areas of brand's cumulative value that
are there is financial performance of their branded goods or services, the bran is directly
influences the choice of customers. Thus, the major strength of brand is that they have command
over a secure earning for the firm.
It has been also evaluated on the international marketing that it is one the most effective
way that provide various benefits to its company. Thus, it can be said that of the company apply
the marketing principles across the boundaries then it known as an international marketing. The
main aim of expanding business global to increase the customer base, improves market share,
increase sales and also enhance brand value. They are mainly focused on the company's assets
leverage, adapts the unique strategy, deliver products globally in each country. There are various
type of strategy to enter into a market that are joint venture, contract manufacturing, exporting,
direct investment and joint venture (Hussain and Siddiqui, 2016). It is one of the unique strategy
through which most of food company can able to increase customer base, capture large market
share, increase sales, deliver high quality of products and adopts unique marketing strategy. It
directly leads to increase enhance brand reputation of a company in most desired manner. The
most advantageous that are gain from this unique strategy is that they can effectively improve the
brand reputation. It can be only through broaden up the customer base and also focused on their
services efforts. Thus, is one of the unique strategy that assist the McDonald's to boosting its
brand reputation. Therefore, firm can customer received brand by selling their products or goods
in several markets at a higher quality and better quality of services. In regard to this, the cited
company can effectively increase their brand image by developing their business in UK market.
It will directly leads to increase market share of a company.
McDonald is best brand known worldwide and world's largest chain hamburger fast food
restaurant worldwide more than 50 million customers throughout the world in 117 countries with
32000 restaurants. It has employee strength of 1.5 million people globally and is continuing in
expansion in rest of the countries. They have serving size of number of customer nearly 60
million of people. The key for such business expansion is business model followed by
McDonald’s. Ray kroc realized company can achieve speedy expansion by franchise model. So
today nearly 70% of McDonald's restaurant are running on franchise model basis (Alcock and
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Baig, 2014). Now days McDonald global sales is around 22 billion which makes this company
world’s largest food service company and have been ranked at 107 in fortune 500 list in 2009.
Company's Global marketing strategy:
Think global Act Local: McDonald Treat every country as home country and serve
according to taste, preference and countries people’s beliefs and faith and preference like use of
beef product in India is banned by government so as McDonald not use beefs products in their
outlet
Local Management: McDonald's emphasizes on local management for better responsive
external environment. It has flexible management system so as act according to country.
Political Sensitivity: Political risk has been mostly compensated by government with
different countries as it also provide food to poor people in poor countries at lowest possible rate.
Company's Brand Identity:
Overall business of McDonald's is $26 billion in 117 countries that tremendous sales
records has made this brand the most successful brand. The focus has been on values, because
customer value conscious in part because it needs to be compete with other competitors like
Starbucks, Yum Brands, Subway, Chipotle and Burger King. However, brand has symbol of rich
identity that provide good service to customer.
Companies Positive Image:
Measurement of image: Is to make people fit and healthy so Brand image of company is
good and which is achieved by companies is as follows:
Brand awareness: As McDonald is multinational brand and spread throughout the
world, Brand awareness by public is well known and commercial TV ads and marketing strategy
has grown rapidly in the 1990's and 2000's decade (Werner,2013). If we talk about fast growing
Brand awareness in Middle East Countries and Developing countries like South East Asia the
company has grown rapidly. Brand Awareness generated two factors Easy brand Recognition
and Easy brand Recall.
Brand Knowledge: Brand knowledge can be increased by brand awareness among
peoples. So again it is the best marketing strategy through company have succeeded in growing
product and brand knowledge among people.
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Again Brand Awareness increase the brand equity of the company and These generate
again two factor Types of associates and favorable strong Unique associates (Svetlana, 2017).
Types of associates: Attributes and benefits are included which are Non product related
(cheap bags and boxes, families and Fast food, and Product related like (yellow and red, golden
arc, Ronald McDonald.
Benefits: Functional like eat fast, save time good food, Symbols like smell of burger and fries,
childhood. Experiential like fun with friends in outlets and franchise store.
Evaluating Attributes: Like Loving It, fast food, healthy good to taste.
Customer recognition: The benefits form brand reputation for a McDonald's is that they
can effectively build a customer recognition. Thus, it means that the buyer can recognize the
product or service while they buy.
Competitive edge in market: It creates differentiates marketplace for a company as it is
less expensive for a company to invest into a new product (Khattri and Prakash, 2016). Thus, the
buyer are often interest in buying a new product of McDonald's as they already have a strong
brand image and loyalty customers.
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