Strategic Marketing for Mc Donald's

This report discusses the strategic marketing used by Mc Donald's, including market analysis, customer analysis, key strategic marketing objectives, and implementation strategies. It also explores the use of social media and digital platforms in promoting organic food products.

Strategic Marketing

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK...............................................................................................................................................3
Market Analysis..........................................................................................................................3
Customer Analysis...........................................................................................................................5
Key Strategic marketing objectives for the campaign................................................................6
Strategy Implementation.............................................................................................................7
Marketing Roll Out Plan.............................................................................................................8
CONCLUSION .............................................................................................................................10
REFRENCES.................................................................................................................................11
Books and Journal.....................................................................................................................11

INTRODUCTION
Strategic marketing is a process under which the strategies are formulated by planning
and that helps in gaining competitive advantage. It is a fundamental approach that is forward
looking which studies the needs and wants of the customers and helps in gaining competitive
advantage. The report is about the strategic marketing used in Mc Donald's. McDonald's
Corporation is an American fast food company, founded in 1940 as a restaurant operated by
Richard and Maurice McDonald, in San Bernardino, California, United States (Hansen, and
Juslin, 2018). The market analysis of the organisation and competitor analysis that helps the
organisation to make strategies. Also the strategies to formulate marketing campaign. The target
audience and the budget for the campaign is also part of the report. To monitor the performance
Key performance Indicators are also mentioned in the end of the report.
TASK
Market Analysis
Market Size
The fast food organisation is serving around $245 billion customers world wide. This
includes all the the food items that are served by them like pizza, Italian and Asian at different
places. In United states it has around $8.253 billion market share.
Competitor Analysis
The market is so competitive and there are competitors of Mc Donald's, the major
competitors are Burger King and Subway. Also Subway is the largest chain in this industry and
giving touch competition to Mc Donald's. In respect with burger king it uses the strategy of
market penetration to attract more customers and has established a strong brand image
(Varadarajan, 2019). There are many other competitors of the organisation and it is important to
know about the strategies that are followed by them. It is also vital to formulate strategies and
retain more customers to gain advantage over competitors.
Macro and Micro Economic forces
SWOT Analysis
To study the micro economic factors Strength, opportunities, weakness and threats of Mc
Donald's are mentioned below:

Strengths
 Mc Donald's are serving around 120
countries world wide and has second-
largest network in the world.
 The company gains economy of scale
as it manages its operations effectively
and perform all the tasks in a better
way.
Weakness
 They are not providing a good rate of
dividend to its investors.
 There is negative publicity and image
in mind of customers that Mc Donald's
serve with fast food and may increase
obesity among children (Chernev,
2018).
Opportunities
 As they have global presence and they
have opportunity to expand more.
 They can also sell the product focusing
on health proposition.
Threats
 There is a lot of competition in market
in the food chain industry.
 The customers are now concerned
about the health so this is also threat for
the organisation.
PESTLE Analysis
To analyse the impact of external economic factors on an organisation this framework is used.
So, the PESTLE Analysis in respect with MC Donald's is discussed below:
Political Factors: The policies that are formed by government need to be followed and have
direct impact on business. In relation to Mc Donald's the organisation has to follow government
guidance in relation to diet and health and it is important to abide the law and take it as an
opportunity.
Economic Factors: The economic condition of the place where the business is operating
includes factors like inflation rate, interest rate. In context of Mc Donald's it has its operations in
many countries and there is opportunity to grow in developed countries as growth rate is high
and there are chances of stability (Beirman, 2020).
Social Factors: The impact of social trends and the socio conditions of the organisation. Mc
Donald's should study the trends and serve the customers accordingly. As there is tendency that
youth likes to eat fast food so this is opportunity for the business.

Technological Factors: Technological advancement is the main thing that is considered unders
this factor. Mc Donald's can increase there reach in research and development and that would be
beneficial for them as they will be able to cater the needs and wants of the customers effectively.
Environmental Factors: The natural trends that are present in the environment also impact the
business. Mc Donald's can use this factor to improve the programmes that can help the
organisation to form good brand image in market (Biswas, 2019).
Legal factors: All the laws and legal responsibility that the business are ought to follow. Mc
Donald's has to follow various laws and regulations and mainly related to health and hygiene,
and it helps to build confidence among customers.
Customer Analysis
Mc Donald's has a lot of customers that they serve they mainly target young that are of
the age group 18 to 30 years and the teenagers that are of age group 13 to 17. They also have
customer group that are parents of small children and are above 30 years in age. They target the
customers on demographic basis and understand their needs and wants that helps them to serve
them effectively. Mc Donald's has brand image and is largest chain of food outlet. The
customers wants and preferences keep on changing and it is duty of organisation to know about
the needs and then serve them. The customers are the reason for existence of business and it is
important to serve the customers and value the feedback given by them and then use that to
develop the product and service.
Stakeholder Analysis
There are two types of stakeholders that is internal and external. In relation to Mc
Donald's the major stakeholder are suppliers, customers, government etc. The most important
stakeholder are the customers as if there will be no customer there is no profit in the
organisation. The feedback of customers should be valued. The main internal stakeholder is
employees and they should be respected and motivated so as to achieve the goals and targets of
the company (Lim, Jee, and De Run, 2020). All the stake holders have interest in the company.
Government also wants to know about the reports and the payment of tax by the organisation.
Investors are keen to know the income statement and real profitability position of the company.
The information should be disclosed in a fair way and should satisfy the wants of the
stakeholders.

Key Strategic marketing objectives for the campaign
Marketing Campaign
Marketing Campaign is designed to promote the goods and services offered by the organisation.
The company is able to increase the sales and profitability of the company. The marketing
Campaign of Mc Donald's states that they are promoting the use of organic food in the
production of their food products through online mode. As the presence on online platforms is
important to compete in today's world (Reed, 2018). The social media platforms that Mc
Donald's is using Facebook, Instagram, YouTube to make the customers aware about their use of
organic food items as they are taking care about the health and hygiene of customers.
Strategic Goal
The main reason for establishing the campaign by Mc Donald's is:
 To increase the sales by 5% in a period of 1 year and to make presence over digital
platforms.
 To enhance the market share by 3% in coming 6 months.
Market Opportunity
As people nowadays are concern about their health and introducing organic products that
is healthy for people and the customers will be attracted towards the organisation. More the
customers of the organisation better is the production level and the company is able to increase
the sales of the organisation. This is an opportunity that can be gained by Mc Donald's and they

are using social media and digital platforms to promote about the organic products that they are
going to use. For success of an organisation it is important to make continue research and study
the market trends so as to understand the customer preference and then serve them. The world is
turning is digitalise so it is an opportunity that has emerged for businesses to use digirtal
platforms and then make the customers aware about the product. The idea of providing quality
goods is a good way to retain customers and fulfil their demands (Maymand, and Samaeizade,
2017).
Target Audience
Targeting is the process of deciding the customers that they want to and are willing to
serve. It is a important task and the managers of the organisation should make proper research
before selecting the customers. In relation to Mc Donald's the organisation followed
demographic basis for targeting its customers. The company is planning to target the people of
age group 18 to 30 years. As the people of this age group have presence on social media and they
have more impact through digital platforms. Also one of the reason to select this customer group
is people of this age are concerned about their health and it is beneficial for the the organisation
as it will increase the profitability position of the company. After segmentation targeting is done
and it is essential to select the appropriate target audience.
Marketing Message
“ Growth with green environment”
The message promotes the environmental friendly as they are using organic food that will also be
good for diet conscious people.
Mc Donald's is launching the campaign that will help the to attract more customers and
then serve them effectively by making quality product and then catering the need of customers.
The better the customers are understood more is the organisation successful (Eriksson,
Robertson, and Näppä, 2020). The presence of digital media and its impact will also lead to
increase the market share of the organisation and will help the organisation to grow.
Strategy Implementation
Forming a good strategy is not the only task, the main thing that should be done
effectively is implementation of the formulated strategy and that is possible if there is proper
communication and all the employees are told their roles and responsibilities. Policies and
developed and goals are made also it is important to achieve those goals and take the measures

wherever required so as the organisational is able to achieve the strategy that is formulated and
will help the organisation to grow.
Key Area
Social Media is used as key area to promote the use of organic product to manufacture
the food product by Mc Donald's. The organisation will launch on social media and the
customers that have presence on digital platforms are basically targeted. It is important to focus
on the customers and then promote the campaign in such a way that attracts them and helps to
achieve the strategic goals that are set by the company.
Communication Mix
The ways through which the product and services are made aware about the product and
service. There are various ways through which company promotes its goods and services.
Advertisement- it is most commonly used way to promote goods and services through
advertising their product and service. This makes good influence on the customers. Thje add can
be presented on TV, radio etc.
Direct Marketing and Digital Marketing- Under this there is direct contact with the customer and
then the product is promoted. Digital ways also help the customer to buy the goods and service
of the organisation as nowadays very one uses social media and gets impact from that.
Public Relations- It is done by building relations with customers, they develop sense of personal
touch and then company gets benefited (Paley, 2017).
Personal selling- This means face to face selling of goods and services and helps the organisation
to know more about the needs and preferences of the customers.
Sales Promotion- The company that gives offers and discounts to promote its goods and services.
The customers get attracted through this mode.
In relation top Mc Donald's and the marketing campaign used by them the company is
using social media and digital platforms so that they are able to create a good image in the
market.
RACE Model
It is framework used by the organisation that helps to engage customers.
REACH- It means increasing the reach of the brand through offline or online modes. Mc
Donald's is using social media platforms like Face book, YouTube, Instagram to make customers
aware about their product.

ACT- it is stage under which interaction is increased by the company. It means persuading the
customers and generating leads.
CONVERT- this mean converting the generated leads and trying to make sales to more and
more customers. Mc Donald's is using and getting leads through people who have presence on
social media.
ENGAGE- It is important to engage the customer that has visited once, this means developing
long-term relationship with the company. Mc Donald's by providing quality service are able to
engage the customers more.
Marketing Roll Out Plan
Mc Donald's is using digital channels to promote their new marketing campaign which
focuses on promoting organic products through online modes as it is important to be successful
in today's time. They are planning to launch this campaign in next 6 months and to increase the
sales and market share after a period of one year. It is important to make proper planning and
research before making and implementation of these strategic marketing plans.
Budget
It is vital to form a budget and follow that to achieve the goals and objectives of the
organisation. There should be control over the expenses and it is essential to manage the
investment.
PARTICULARS Ist Year IInd Year IIIrd Year IVth Year Vth Year
Initial money 2000 6300 12200 14160 19970
Investment 9300 10500 23830 31630 13550
TOTAL 11300 16800 36030 45790 33520
MARKETING OUTLAY
Promotion 4746 1459 4593 1875 1211
Sales publicity 1365 800 2452 1492 1050
Online selling 2235 1900 4651 1000 4434
TOTAL 8146 4159 11896 4467 6405

Key Performance Indicators
These are the quantifiable measures that are required by a company to be followed, they
help the company to measure the performance and give methods to improve the performance of
the organisation. It helps to achieve the set targets and goals on time.
Operating margin- the amount of profit that the organisation has gained through its main
operations. In financial terms the profit left after deducting the variable cost. This helps the
company to know about the profitability position that company has gained.
Inventory turnover- the number of times the inventory is cycled, this shows that the
organisation is buying and selling inventory on regular basis. This helps to know the position of
the company.
Revenue- The main reason for which an organisation works and the profit depend is sales. It is a
measurement that makes the organisation aware about the production of goods and services and
the relation with sales.
CONCLUSION
` It can be concluded that strategic marketing is a vital process for success of the
organisation. The better the marketing strategy used by the organisation it is helpful for the
company to grow. Mc Donald's has launched new campaign to increase its sales and market
share. Methods of promotion as well as key performance indicators are part of this report that
helps the organisation to know about the measures that will help them to grow.

REFRENCES
Books and Journal
Hansen, E. and Juslin, H., 2018. Strategic marketing in the global forest industries.
Varadarajan, R., 2019. Theoretical underpinnings of research in strategic marketing: a
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Chernev, A., 2018. Strategic marketing management. Cerebellum Press.
Beirman, D., 2020. Restoring tourism destinations in crisis: A strategic marketing approach.
Routledge.
Biswas, A., 2019. Effect of Strategic Marketing on Sustainable Business Performance–A Study
of Pharmaceutical Industries in India. Indian Journal of Pharmaceutical Education and
Research, 53.
Lim, W. M., Jee, T. W. and De Run, E. C., 2020. Strategic brand management for higher
education institutions with graduate degree programs: empirical insights from the
higher education marketing mix. Journal of Strategic Marketing, 28(3), pp.225-245.
Reed, J. R., 2018. Strategic Marketing Workbook. Madison, WI: Center for World-Changing
Organizations.
Maymand, M. M. and Samaeizadeh, A.H., 2017. Explanation of the “Strategic Marketing
Management” Model and verification of its impacts on “Increasing the Organizational
Profitability”(Case Study: Iranian Textile Industry). Pacific Business Review
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Eriksson, T., Robertson, J. and Näppä, A., 2020. Functional top management teams and
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Paley, N., 2017. The Strategic Marketing Plan. In How To Develop A Strategic Margeting
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