McDonald's Marketing Strategy in a Competitive Market

The assignment examines the challenges faced by McDonald's due to intense market competition. It emphasizes the company's strategic shift towards utilizing online platforms for marketing its products and services. Various marketing concepts and theories are likely explored within the context of the fast-food industry.

Principles Of
Marketing

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Comparing the structure in which Mc Donald s well as other fast food company apply
marketing mix to marketing planning process.......................................................................1
1.3 Evaluating different tactics applied by Mc Donald to demonstrate the ways objective can
be achieved.............................................................................................................................2
TASK 2............................................................................................................................................3
2.1 Basic marketing plans for Mc Donald..............................................................................3
2.2 and 2.3 A detailed, coherent evidence-based marketing plan for McDonald’s...............3
CONCLUSIONS..............................................................................................................................6
REFERENCES................................................................................................................................6

INTRODUCTION
Marketing can be defined as the total of activities that are involved in transfer of products
from organisation to end consumers. The number of activities include advertising,
shipping, storing and selling.
The study has focus on comparing the ways in which MC Donald's and other food
company apply marketing mix. Report will also include various tactics that can be used by
organisation to achieve its objectives. It will emphasize on developing marketing plan for
MC Donald's. The project will design a strategic marketing plan.
TASK 1
1.1 Comparing the structure in which Mc Donald s well as other fast food company apply
marketing mix to marketing planning process
The Mc Donald have various competitors in UK market. It is required by Mc Donaldson
to adopt effective marketing strategies in order to promote their goods and services. It is very
essential for organisation to formulate effective market plans in order to gain competitive
advantage in market. This marketing plan will assist firm in diff renting their business activities
with that of its competitor. It is essential for Mc Donald to apply marketing Mix model top
planning process in order to formulate suitable marketing strategy. Marketing mix consists of
various elements such as price, place, promotion, people, process and physical evidence.
Mc Donald Verses Burger King
Product-The Mc Donald have considerable focus on developing a Menu that are demanded by
consumers. As customer preferences and taste changes with the span of time. Mc has planed to
introduce new product and to add new variety of Food in its menu. On the other hand Burger
king emphasizes on taking as much as order from client. Burger king has planned to offer a
particular variety of food. It has planned to begin with selling coffee baling with iced varieties.
Price-Mc Donald has planned to classify its product into two categories that is brand
affordability and brand core value product. This has enabled firm to provide satisfaction to
customers. On the other hand Burger king has planned to adopt stable pricing strategy and has
decided to sell its new premium burger (Kumar, 2015.)
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Place-Pace is the essential element of marketing mix. It includes the management of range of
process that are involved in producing goods and delivering products to end customer. Mc
Donald's outlet are located in various places making consumer to easily access company
products and services. It allows firm to reach its customer quickly. Drive and drive through
option has enabled Mc Donald to make their product convenient to their customers. On the other
hand Burger king has planned to operate its business under franchisee. Primary location is being
occupied by Burger King.
Promotion-The promotion element of marketing mix cover all aspects of marketing including
marketing communication. There are various sales promotion and advertisement technique that
can be used by firm for promoting its goods and services. Some of Advertising sources are TV,
radio, online, poster sites, press etc. While some sales promotion techniques are marketing
campaign, direct E-mail, loyalty schemes, incentives, discounts etc. Line marketing method is
used by Mc Donald for promoting its products and services(Digital marketing Analytics. 2013)
This technique is meant for gods which have mass appeal. This technique is adopted by
organisation that faces difficulty in selecting target. Mc Donald has selected children group as
their target. On the other hand Burger king has planned various tours and events in order to
promote their products as well as services.
Process- The food manufacturing process of Mc Donald's is completely transparent. This
strategy is adopted by company to gain customer loyalty. Whereas Burger king has focuses on
customer segment and spends lot of money on its restaurants. The organisation seeks to enhance
growth through innovative marketing process.
Physical evidence-Mc Donald emphasises on clean and hygienic interiors of its outlet and
making its exterior outlet look attractive. While The business entity is in the process of
reinventing its brand image through making changes in its decors.
People- Mc Donald's intends to provide satisfaction to their employees. On the other hand the
objective of Burger king is to provide satisfaction to customer (Grünig and Kühn,2015)
1.3 Evaluating different tactics applied by Mc Donald to demonstrate the ways objective can be
achieved
The primary purpose of Mc Donald's to present or deliver good Quality of nutrient good
at affordable cost and advanced modular, fast and precious services to its client. The
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organisation objects is to provide high returns to its employees. These subjective have been
accepted by McDonald's in order to just the purpose of enterprise.
Specific:The business unit has established aim of delivering at supreme proportion of single
order consumer. In order to achieve this Mc Donald has plan to make daily schedule.
Measurable:Mc Donald has distinct tools to measure the time of services.
Accomplish able Purpose of Mc Donald is to render quick services to consumer. It is needed by
human resource manager to determine potentiality of worker to provide prime good and services.
Applicablibility of design:The Mc intends to gain income by attracting more numbers of
consumer. This can be done by Mc Donald by supplying great attribute of services to their
consumer.
Time- it is required by manger to communicate employees that they have one month time period
to germinate strength to supply quick services to consumer (Wright, 2016.)
TASK 2
2.1 Basic marketing plans for Mc Donald
Institution overview-Mc Donald is the big fast solid food eating house chain in United states.
The organisation is typify the big eating place organization in terms of customer service and
sales.
Commerce objectives-The purpose of MC is to gain its market share and heighten growth.
Point of reference audience- MC Donald is pointing children but intends to target all group of
people.
Specific marketing propositions-It is utilising several impelling professional services to provide
fast delivery of services to consumers.
Rating &Aligning strategy-Mc Donald has designed to categorize its commodity into two class
that is trade name expend and trade name centre value good.
Statistical distribution plan-It purpose is to deliver domestic services to clients (Loe and Ferrell,
2015)
2.2 and 2.3 A detailed, coherent evidence-based marketing plan for McDonald’s
Organization overview-Mc Donald is considered as the comprises big fast food eating house
business in United states. The organisation is symbolise the big eating house organization
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globally in terms of consumer service and profits. It has 35000 individual unit in more than 120
countries.
Situation Analysis
Internal Analysis
Strength: Strong Brand image in the world.
Consistency of food
High market share
Overseas business operations
Weakness
Ineffective marketing strategy.
Declining market share.
Slow revenue and growth.
Opportunities:It has opportunity to expand its
business in Global market.
International joint venture.
Threats: Increase in competition.
Economic impacts.
Change in customer taste and prefrence.
External Analysis
Political factors- Mc Donald has great influence of political factors on its business operations as
it is dealing in food industry. It is required by company to comply with all norms related to food.
Economic factor-The Mc Donald need to adopt effective pricing strategy. It should consider
various factors such as individual income, economic condition of country etc. when formulating
pricing policies.
Social factor-It is required by Mc Donald to include variety of food in their menu to attract more
number of customers.
Technological factor-The advanced technology can be adopted by Mc Donald's for improving
quality of its product and for quick delivery of services.
Legal factor-All law related to food and employees are to be followed by organisation
(McDonald, 2016.)
Strategy
Marketing mix Analysis Future strategy
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Product Presently Mc Donald is
delivery fast food and non-veg
products
It is planning to add more
varieties of food in its menu.
Place It is using only offline
distribution channel
The organisation intends to
provide home delivery in the
future.
Price Mc Donald has planned to
classify its product into two
categories that is brand
affordability and brand core
value product
It will formulate competitive
pricing strategy.
Promotion Line marketing method is used
by Mc Donald for promoting
its products and services.
It will emphasize on adopting
online channel for sales
promotion.
People Focussing on employees'
satisfaction.
It intends to have focus on
customers.
Physical evidence Mc Donald emphasises on
clean and hygienic interiors of
its outlet and making its
exterior outlet look attractive.
It focuses on increasing more
number of physical stores.
Process Mc Donald has effective sales
and marketing process
Organisation will make more
attractive and objective
oriented marketing process
Segmentation-Mc Donald is planning to divide market into two segment one is vegetarian and
non vegetarian customer segment.
Targeting- Presently Mc Donald is targeting only children. But in future it intends to target
people of all age group.
Positioning-Mc Donald will provide services according to customer income level and capability
to purchase that product (Pavlou and Stewart,2015)
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Tactics and Actions
Mc Donald will use online channels in order to promote its product and services in the
segmented market. It will use customer feedback in order to analyse the customer requirement
and company its related to its current services
Evaluation and control
 Budget analysis-Time budget analysis is conducted by company.
 Timely report -this can assist organisation in identifying gap between actual performance
and standard (Pels,2015.)
CONCLUSIONS
It has been concluded from the study that Mc Donald has to face stiff competition in
market. It is required by company to adopt various effective marketing strategies in order to
compete with its rivals. According to market plan the organisation will have focus on using
online platform for marketing its products and services.
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REFERENCES
Books and Journal
Kumar, M., 2016. Aesthetic principles of product form and cognitive appraisals: Predicting
emotional responses to beauty. The psychology of design: Creating consumer appeal.
pp.234-251.
Kumar, V., 2015. Evolution of marketing as a discipline: What has happened and what to look
out for. Journal of Marketing. 79(1). pp.1-9.
Loe, T. W. and Ferrell, O. C., 2015. Ethical climate’s relationship to trust, market orientation
and commitment to quality: A single firm study. In Proceedings of the 1997 Academy of
Marketing Science (AMS) Annual Conference. Springer International Publishing.
McDonald, M.A.L.C.O.L.M., 2016. 5 Strategic marketing planning. The marketing books.
pp.86.
Pavlou, P. A. and Stewart, D. W., 2015. Interactive Advertising: A New Conceptual Framework
Towards Integrating Elements of the Marketing Mix. In New Meanings for Marketing in
a New Millennium. Springer International Publishing.
Pels, J., 2015. Actors’ Exchange Paradigms and Their Impact on the Choice of Marketing
Models. In Proceedings of the 1998 Academy of Marketing Science (AMS) Annual
Conference. Springer International Publishing.
Salavati, A. and Karami, N., 2015. To Review Marketing Ethics Effect on Customer's Loyalty in
Insurance Industry. Arth prabandh: A Journal of Economics and Management. 4(9).
pp.24-35.
Wright, M. J., 2016. Predicting what? The strengths and limitations of a test of persuasive
advertising principles. European Journal of Marketing. 50(1/2). pp.312-316.
Grünig, R. and Kühn, R., 2015. Global Environmental Analysis. In the Strategy Planning
Process. Springer Berlin Heidelberg.
Anton, R., 2015. An Integrated Strategy Framework (ISF) for Combining Porter's 5-Forces,
Diamond, PESTEL, and SWOT Analysis.
Online
Digital marketing Analytics. 2013. [Online] Available through:
<https://a8039528.wordpress.com/2013/04/21/digital-marketing-1-analytics/>. .
[Accessed on 2 November 2017]
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