McDonald's Marketing Plan

This assignment requires you to develop a detailed marketing plan for McDonald's using the 7Ps framework (Product, Price, Place, Promotion, Process, Physical Evidence, People). The plan should include a SWOT analysis, STP analysis, and specific marketing strategies for each of the 7Ps. It emphasizes the importance of understanding McDonald's market position and utilizing effective marketing techniques to achieve business objectives.

Marketing essentials

Table of Contents
INTRODUCTION................................................................................................................................3
TASK1..................................................................................................................................................3
Key roles and responsibilities of the marketing function................................................................3
M1. Duties of Marketing with respect to Marketing Environment.................................................4
P2 Relation of roles and responsibilities in context of organisation................................................4
M2 Importance of interrelationship between marketing and other functional unit.........................5
D1. Key elements of various Marketing Function...........................................................................6
TASK2..................................................................................................................................................6
P3 Comparison of marketing mix applied by different companies.................................................6
M3 Evaluate different tactics and strategies used by McDonald's for achieving business
objectives ........................................................................................................................................8
TASK3..................................................................................................................................................8
P4 Marketing plan for McDonald's..................................................................................................8
M4 Produce detailed marketing plan for McDonald's...................................................................13
D2 Design marketing plan with the use of 7Ps..............................................................................13
CONCLUSION....................................................................................................................................1
REFRENCES.......................................................................................................................................2

INTRODUCTION
It can be said that marketing is a very essential part of business as it is not sufficient enough
to produce goods only, they have to be marketed and people should be make aware of the products
and services that the company is producing. Their are some essentials of Marketing that a company
should incorporate in its marketing strategy. It includes Communication, targeting, advertising and
public relation. McDonald's is well known brand in Food sector, it is known for its quality and
service which it provides all over the globe. The company operates in various countries and it also
runs on franchisee basis, by giving its franchisee to other business houses in different countries.
Company follows various marketing strategies for the purpose of making awareness of its products,
it chooses conventional and non conventional medium of marketing for marketing its products
world wide(Baker and Magnini ,2016).
TASK1
Key roles and responsibilities of the marketing function
Marketing is a very crucial function of any business organization. Usually there is a separate
department of marketing in every organization to perform the task of marketing. Marketing of
products and services is very essential as without it people wont be able to know about companies
and their product ranges which is a loss for company going forward. There are various roles and
responsibilities of marketing function which can be described as follows :
Strategy : The Head of the marketing department is responsible for setting marketing Strategy that
is line with objectives of the company and which will help company in gaining market share as well
as increasing the customer base. There are various strategic policies which needs to be implemented
by the company in order to make sure that people will be able to know about company's products
and services in the minimum possible cost. The strategy might be to increase market share in a
particular market, whether to enter a new market, or whether to open a new channel of distribution
that will enhance and ease the way products will be made available to consumers. The marketing
department make sure that the strategies are being approved by the senior management or board of
the company so that no conflict will arise going forward.
Market Research :Another crucial responsibility of the marketing department includes proper
research of the market so that it can be anticipated before that whether the product will be a success
in the market or it will not going to succeed. A proper research will help MacDonald's in identifying
market opportunities and to gain a wise understanding of needs of customers. Market research also
involves assessing and understanding the strengths and weaknesses of the competitors. Another way
of doing such Market research is outsourcing the research work to another market research firm.
Product Development : The marketing department of MacDonald's work in tandem with product

development department to develop new products or to improve the existing ones. The role of this
department is to analyse the sales of existing products and whether it is possible to amend these
products according to the needs and demands of individuals. After the product has been developed,
the pricing of the product is set by the marketing department and it also prepares for the launch of
that product in the market.
Communications :Yet another role of marketing department is to plan the various campaigns and
develop other types of communication material for the purpose of promotion of products and
services to customers and projects. It depends on the budget that is being available with the
company and they may choose advertising campaigns, E-marketing programs, company brochures,
advertisements in newspapers and other media channels etc.
Sales Support : Marketing Department work in tandem with sales department, its responsibilities
also includes giving necessary support to sales department by giving them high quality leads by
running advertisements which would have a reply mechanism in itself., such as Telephone number
etc.
M1. Duties of Marketing with respect to Marketing Environment
Marketing Management is a procedure of outlining, arranging and execution of different
advertising ideas. It covers different angles, for example, deals, advancement, valuing Etc. Different
obligations of Marketing in setting of its condition can be talked about as takes after :
Research Of Market : It is the primary obligation and additionally the obligation of Marketing
office. In this, administrator endeavours to direct a legitimate research of the outer market and
attempts to check the cost of comparative items in the market, the accessibility of various items and
furthermore the accessibility of customers for the items in the market.
Segmenting Market : The marketing department is also responsible for segmenting market or
customers on the basis of various factors so that they can be reached easily. It will increase the
penetration of the company in these markets and will help in enhancing growth and profitability of
the company(Brooks and Simkin ,2012).
P2 Relation of roles and responsibilities in context of organisation
In every organisation there are different types of department that play vital role in achieving
the objectives of organisation. On the other hand function of marketing team need to create such
innovative techniques in their products which provide competitive edge over competitors. Without
performing all the function of marketing company cannot sustain for longer period and fail to create
long lasting impression among target audiences. Therefore, there are different departments which
work in McDonald's are described below:-
Relationship between human resource division and marketing functions of McDonald's:-

The main role of human resource department in every company is to formulate policies, procedures
and events in relation to marketing department after consulting with management team in order to
carry out the further activity of company. Further at the time of recruitment, selection process HR
manager require to take the help of marketing source like advertisement, publicity and newspapers
publisher for communicating the information related to vacant job position. Therefore both the
department are important in running the operation for better decision making.
Interrelation between IT department and marketing function:- At the time of starting
business company require to take all the information regarding the cost factors, details of
employees, stock and asset maintenance which are maintained by IT department. Marketing
division at the time of preparing strategies and action plan take the advice from IT division
regarding cost that arises in organisation on the basis of which resources are utilised for effective
results. McDonald's operate their business in different countries so marketing team need to provide
attractive offers by using innovative techniques suggested by IT manager so better profitability can
be obtained.
Connection of sales department with marketing function:- In most of organisation all the
products are manufactured and sales on the basis of demand arises in market. Company sales
department require to provide goods at attractive prices and want to earn premium benefits under it.
So various marketing promotional tools are utilised to know the taste, preferences and choice of
customers which enhance the sales and profitability of business operations.
Interrelation of operational department and marketing function of organisation:- In
every organisation operation department play vital role in success of objectives. Changes are
coming rapidly in external environment so in order to beat all the challenges of external rivalry
operational department work on understanding the basic needs and wants of clients with the help of
marketing function. Therefore, both marketing and operational manager are essential for
accomplishing the long term vision of company. Absence of marketing function unable operational
department to collect all the data which are trending in market.
Connection of production department with marketing function:- Under this point it has
been observed that production of goods has been done on the basis market demand and it is
essential for organisation to maintain their cost according to the revenue earned by company.
Therefore, it is important for McDonald's production department to produce their goods on the basis
of customer satisfaction which can be understood through the marketing functions under which
recent trend liked by audience in relation to burger quality and delicious taste.
M2 Importance of interrelationship between marketing and other functional unit
McDonald's has expanded with different department like marketing, research development,
Human resource, operational and sales department. All the division plays an vital role in order to

face all the complexity arises in market. Therefore, coordination of all division with marketing
function is important in order to grab the opportunities and remove all the threads in external
market. So, for increasing goodwill and brand image organisation require to formulate strategic
policies in order to take the advantage over competitors. Further, better relationship between
manager and subordinates allows them to satisfy customer needs in effective manner and enhance
the skill ability of employees also(Desai ,2013).
D1. Key elements of various Marketing Function
There are four Key elements in marketing Function which are applied by McDonald's for
their business operations, these are :
Research : It is an important aspect of marketing, in which the manager will make a proper research
of various factors that will help company in gaining growth in market and profitability.
Strategy : Under this, business entity make a effective idea to implement various strategies of
launching new products, gaining growth and increasing competitiveness.
Planning: It involves planning of various factors such as distribution of communication channels,
sales forecasting and financing of marketing company.
Tactics : It is the last role of marketing, it involves attracting customers with lucrative offers like
Discounts, one free item with another etc.
TASK2
P3 Comparison of marketing mix applied by different companies
Marketing mix:- It is mixture all those components and factors which were used for
marketing promotion in order to sale the goods and services to end customers. In other words using
of different types of tactics and strategies which organisation has been utilised in order to advertise
the brands among large population in market. Therefore it is used that process of marketing
planning that are used in order to accomplishing the objectives of tasks and targets. Marketing mix
consider as best technique which help the marketer to understand about product. Under this 7P'S are
consider such as people, place, promotion, price, product, process and physical evidence.
Therefore in order to understand the benefits of marketing mix two companies are taken I.e
McDonald's and Burger king in which 7P'S of marketing are used to promote all the goods and
services in market. To maintain sustainability and growth of business these techniques are utilised to
gain competitive place of their brand and it can be described below:-
Marketing mix McDonald's Burger King
Price Company uses low price
strategy I.e. selling product at a
This organisation uses
psychological strategy of

range of $1.99. marketing and selling their
products for .99 that help in
increasing customer base and
establish long relation with
them.
Place  Under this point
management head give
the franchises to local
seller of different
countries.
 Shop outlets are spread
throughout the different
cities which is
accessible to everyone.
Expand their business through
leasing building, franchising
method so that they earn money
from company restaurant and
royalties.
Promotions Uses different types of slogans
and jingles are used I.e. I am
loving it, different methods
used in packaging to attract
audiences and sponsoring it
through celebrity. Target
audience mainly children.
Company first launched the $1
big value meal in order to
attract larger audience of US.
The main reason behind it is to
provide cheaper price as
compare to other burger
companies.
Product Provides product according to
customer sentiments regarding
their culture.
Give goods separately for diet
person and healthier for kinds.
First they try to sell the burger
and chips in order to adjust in
other country environment by
knowing their taste and
preferences.
Efforts is made for increasing
product portfolio for gaining
competitive advantages.
People  Organisation take
initiative for active
participation of
employees and
emphasis on providing
They refer to all the customers,
employees and management
team in order to enhance
reputation regarding particular

standard quality of
services to target
audiences.
 Faster delivery system
for higher consumer
satisfaction.
brands.
Physical evidence Evidences can physically
observed through transparency,
speed, cleanness and quality
standard.
Using feedback and other
methods in order to know the
opinion and view point of target
audiences.
Process Process used for food
manufacturing are transparent
and incur millions of dollars on
research development process.
Proper training is provide to all
the staff members who working
under the franchise for food
manufacturing.
M3 Evaluate different tactics and strategies used by McDonald's for achieving business objectives
Under organisation different strategies and tactics used by marketing department of
McDonald's in their 7P's of marketing mix. It is utmost duty of manager to utilise all the P's of
marketing in order to gain competitive advantage over competitors. Price, place, promotion,
process, people, process and physical evidence are used in order to attract target audiences by
offering them attractive offers at external market which are better than their rivalry. Different tools
and techniques are used for growth and success of business(Draelos ,2010).
TASK3
P4 Marketing plan for McDonald's
Marketing plan:- This term can be described that systematic action plan which give in
official document of organisation in which all the policies, procedures and events are used for
further activity of company or in other words collect all the information and data are utilised to
strength the market position of company. The plan consist of vision, objective, mission, SWOT
analysis and STP budget of company. It described below:-
Overview of the McDonald:-
McDonald's is an American fast food industry which is US based restaurant controlled and
owned by Richard and Maurice McDonald. It is considered as largest chain of restaurant earned lot

of revenue and serving large number of customers over 100 countries. The USP of this company is
that it is known for its hamburgers and also deals in various category of food items like French
fries, chicken product, milkshakes, wraps and desserts(Durand and Barlow ,2012).
Mission and vision of McDonald's
Vision statement:- basically vision is made for long term objective which require strong strategic
techniques. The main vision of McDonald's is to become modern, progressive burger company and
providing the best delivery that give utmost satisfaction to customers. Modern is basically for
getting the brand more famous and progressive in form of providing services which is expected by
target audiences. In order to fulfil commitment they are focusing on providing high quality foods to
our costumers.
Mission statement:- Mission is generally made for short term basis, so main mission of
McDonald's is to become the favourite place for customer to hang out, eat and drink. Company
apart from profit objective wants to concentrate on CSR activity where the money has been spend
on social welfare of society.
Aims and objectives of McDonald's:-
 Main aim is to serve best quality of services to their customers in order to create trust and
long term relationship with company.
 Planning has been made to expand their outlets at different places so that customer easily
reach without any difficulty.
 Company in order to remove gender inequality concept, establish a policy in which they hire
more female employees which handle all the food processing.
 Focuses on CSR activity for social welfare so that brand image and goodwill of company
enhance.
STP Approach:
Segmentation Larger numbers of audiences are coming for
hang out, having breakfast meals and getting fun
environment.
Targeting The target audience of McDonald's are children,
youngster who want a place where they get such
atmosphere which they expect.
Positioning Company is producing goods and services in all
over the world so their brand become popular
from their goods and services.

SWOT Analysis:- this analysis is done in every company in order to understand both the internal
and external conditions of business. Although McDonald's is world class fast food providing
company but they having their SWOT analysis in following manner:-
Strengths
 Company having good brand equity all
over world.
 Food item which are popular include
Fries, Big mac and happy meal.
 Diversified their business in overseas
market. Balance sheet shows strong financial
position.
Weaknesses
 continuous declining in market share
 It has been reviewed from customer that
quality and taste of product has been
reduced.
 Small market share reduce revenue and
income growth of company.
Opportunities
 Company expanding their business all
over the world through franchisee.
 opportunity to have joint venture and
strategic alliance with retailers.
 Adopt CRM techniques in order to
establish long term relation with
customer.
 Company require to strengthen its value
proposition by encouraging customer
who visit coffee shop into McDonald's. Use Wi-Fi internet links in order to
attract audiences.
Threats
 High Competition from rivalry like
burger king, pizza hut.
 Problem arises due to fluctuation in
foreign exchange rate in different
economy.
 Demand of fast food decline because of
customer is conscious towards their
health.
PEST analysis
Political factors
McDonald's is affected by the political
environment of company and it is generally the
government policies, legal procedures and heavy
taxation policy and health measures that affect
the fast food industry.
Economical factors
McDonald's is highly affected by economic
conditions of company and has opportunity to
grow in American economy but growth rate in
Europe is not good that threatens the business.
Another economic threats is slowdown of
Chinese economy.

Social environment
socio cultural facts are affected in macro
environment and basic factor include the culture
and sentiment of people which organisation need
to consider at the of providing foods to people.
Another thing are related to focus on social
welfare by contributing on CSR activity.
Technological factors
In dynamic environment changes are coming at
very fast speed and various technologies and
innovation are coming day by day so
McDonald's has an opportunity to increase their
investments in research development department
which improve business efficiency and
effectiveness. Further it can include wifi
technology or mobile app in order to enhance
the growth of business.
Ecological/Environmental factors:
under this scenario in order to control
environmental factors company spend its
expenditure on corporate social responsibility
strategies in order to improve the performance
from environmental point of view. But climatic
changes in environment become threads because
of obsolescence techniques in farms.
Legal factors
McDonald's also affected by legal regulation
affected at macro level. Because of complexity
in laws company is facing the problems high
minimum wages which leads to higher cost.
Further at the time of expanding business at
different countries company has to comply with
all the rule and regulations in order to remain
sustain in market.
Target market
the term may be described as process under which company require to design framework in
which rules regarding all the market which company need to be considered. Further, firm has to
maintain friendly relation with organisation with all those businesses who are engaged in fast food
services because they are consider as main target of business. This is important to increase the
profitability index of business(Durmaz ,2011).
Competitors analysis:- Different competitors of McDonald's are present in market are burger king,
Pizza Hut and KFC which dealing in same business market. In order to strengthen the position in
this sector company require to introduce new tastes and special features in their food items which
attract customers. After scanning external environment business try to set the reasonable price for
product as compare to their competitors(Philip ,2014).
Marketing Budget:- this means preparation of budget which includes all the cost associate with
marketing tools, techniques and measures used at the time of promotion of goods and services.
Marketing Budget

Particulars 1st year 2nd year 3rd year 4th year 5th year
Initial money 2500 4000 8000 9000 13000
Investment of
finance
12000 21000 32000 13000
Net Total 2500 16000 29000 41000 26000
Outlay of
marketing
Promotion and
publicity
6500 1200 3000 3000 2600
Advertisement 1500 3500 2400 2000 3400
Direct selling 5500 2500 2000 2900 3000
Grand Total 16000 23200 36400 48900 35000
Monitoring and controlling
The most important responsibilities of marketing manager to handle all the business
operation in effective manner. Therefore they make plans, policies and procedure in carry out all the
activity and manger monitor the working style of workforce and if any issues arises then measure
for control are taken in order to enhance profitability and market share of company.
BOSTON BOX
At the time when company is planning to expand their strategies or in order to manage the
product portfolio BCG matrix of company is used by McDonald's one of the measure fast food
industry dominated whole American market. Although company have largest chain of restaurant
comprising of different customers in various countries. Company dealing in different food varieties
but in order to analyse the current market position of company and identify the ways through which
potential growth is possible.
In order to placing product BCG matrix of McDonald's divided in four categories:- Star:- it is situation where company enjoy high market share and have horizontal axis in the
matrix. According to the recent data it has been know that Mc Flurry the McDonald's
product enjoy the high market share with maximum growth. In order to enhance sales they
need to invest money on promotional tools like advertisement.

 Cash cow:- Under this stage company having high market share but low market growth and
it has been analysed that product like Mc chicken, burgers and fries are the cash cows
product of company from which they earn huge profits but cash is consuming less which
create hurdles in growth. Dog:- Under this step company having low market share and low growth in their business
cycle. According to the research it has been observed that Coffee product of company
consider as dog whose product life cycle come to end. Therefore, it is vital for management
to make some further improvements in this product for further growth.
 Question mark:- under this situation company having minimum market share with high
growth. McDonald's ice-cream cone is come under this category. Their is no scope for the
further improvement of this specific product. Therefore research department of this
company need to incur more money to come thus product into star category(Eslinger ,2014).
M4 Produce detailed marketing plan for McDonald's
Marketing plan of an organisation give the brief framework that provides information
regarding vision, mission, objectives, SWOT analysis and STP analysis. All these are consider as
foremost aspect that describe the market position. It is most important process which is followed by
every enterprise for accomplishing objectives(Perreault ,2010).
D2 Design marketing plan with the use of 7Ps
7P'S McDonald's
Product Company dealing in fast foods products such as
burger, MC Puff and French fries in order to
provide fuller satisfaction to customers.
Price In order to gain competitive advantage company
uses low price policy so that consumer buy the
products easily and do not switch to different
brand. Recently organisation using
Psychological strategy in order to maintain
profitability and growth of business.
Place In order to diversify their branches at different
sectors it uses the policy of franchisee through
they allow local user of different countries to
sell their product and get fees in form of royalty.
Promotion In order to promote the goods of company

marketing team uses their strategies in
promotional tools like advertising, publicity and
aware audience through various internet sites.
Process McDonald's using transparent process at the
time of manufacturing foods products so if any
customer want to check the whole process they
easily get to know by visiting at factory site or
through official website.
Physical evidences In this step McDonald's uses the different
mechanism like feedback procedures, cleanness
mission so that customers are socially aware
through different factors.

CONCLUSION
It can be said that Marketing is an essential tool for any organization that wants to grow
its business and want to enter into various segments of markets. There are various tools and
techniques of marketing that should be followed by organization. Roles and responsibilities of all
the personnels of marketing departments should be assigned in a manner that they will contribute
in the most effective way for the company. Business entities select 7P's of marketing to promote
and advertise various goods and facilities in the market. It is profitable and helpful for firm to
acquaint their everything data with different clients inside the market. Thusly organization can
make a decent brand picture alongside essential generosity that will help the organization over
longer time frame. In this manner it can be reasoned that showcasing is a basic piece of any
business association.

REFRENCES
Books and Journals