SWOT analysis of McDonald's : Report

Marketing Principles

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 The various elements of marketing process.....................................................................1
1.2 The benefits and cost of marketing orientation to McDonald's........................................2
TASK 2............................................................................................................................................3
2.1 The micro and macro environmental factors influencing the market decisions...............3
2.2 Proposing segmentation criteria for McDonald’s in different markets............................6
2.3 Range of products and services of McDonald’s and targeting strategies for them..........7
2.4 Buying behavior affects marketing activities in different buying situations....................7
2.5 Proposing a new positioning for selected service or product of McDonald's..................8
TASK 3............................................................................................................................................9
3.1 Product development for sustaining competitive advantage............................................9
3.2 Distribution strategies used by McDonald’s for customer's convenience and satisfaction10
3.3 Pricing strategies used by McDonald’s as per market conditions..................................12
3.4 Promotional Activities of McDonald’s to achieve the marketing objectives.................13
3.5 Additional elements of Marketing mix...........................................................................13
TASK 4..........................................................................................................................................14
4.1 Marketing mix for two different customer segments.....................................................14
4.2 Difference in marketing products and services to business............................................15
4.3 Difference in international marketing and domestic marketing.....................................16
CONCLUSION..............................................................................................................................16
REFERENCES..............................................................................................................................17

INTRODUCTION
Marketing principles are the ideas which are formed for the product promotion strategies.
Some organizations use variety of marketing principles for modifying the market performance of
existing products and successful establishment of product in new market segment (Day, 2005).
With regards to this, the firm is undertaken for present study is McDonald’s which is world's
largest chain of hamburger fast food restaurants that services 68 millions customers daily in
multiple countries. McDonald’s have 36000 outlets and founded in 1940 in United States. This
report will outline the concepts and process of marketing with the concepts of segmentation,
targeting and positioning and the individual elements of marketing mix along with their use in
different context.
TASK 1
1.1 The various elements of marketing process
The various elements of marketing process of McDonald’s are as follows, Analyzing market environment: for analyzing the market environment McDonald’s will
require a strategic tool to be get the competitive advantage. Thus, the firm can focus on
SWOT analysis, PESTEL analysis, Porter's five force and value chain analysis etc. for
analyzing the market environment. In this context, following is the SWOT analysis of
McDonalds:
STRENGTHS:
 World's largest fast food market share.
 Brand recognition value at $50 billion.
 Food menus as per local choices.
 More than 80% restaurants with
independent franchisee.
 Partnership with best brands.
WEAKNESSES:
 Unhealthy food menu.
 Low differentiation.
 Negative publicity.
 High employee turnover.
OPPORTUNITIES:
 Home delivery option.
 Increased demand of healthy food
products.
THREATS:
 Soaked fast food markets in developed
economy countries.
 Trend towards healthy food.
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 Changing customer habits and new
customer segment
 Currency fluctuation.
 Local fast food chains.
 Cultural effects on food habits. Identifying the target market: McDonald’s can target on particular areas internationally
and increase the variety in restaurants for increasing sales and profitability (Kimball,
2011). The firm can analyze a market segment where segment in which people like to
have fast food in routine. Setting core goals and objectives: McDonald’s have to define their marketing objectives
that will maximize the profits and help in achieving long term and short term objective of
the firm. However, it is very important for the firm to improve the goodwill of the firm as
well. The primary aim of McDonald’s is to serve good food in fun and friendly
environment and also, the firm want to be socially responsible company and to provide
good returns to its stakeholders.
 Determining marketing mix: The firm is focused only on particular food products which
it is serving in its outlets and satisfying customers demand in significant way. Moreover,
the customers of McDonald’s are aware of unique characteristics of cited firm and have
trust on the food quality it is serving to its customers (Oplatka and Hemsley-Brown,
2007).
1.2 The benefits and cost of marketing orientation to McDonald's
Market orientation can be referred to a business approach that aids in assessing the needs
of customers and meeting with the same by offering appropriate services and products. In this
regard, there are different types of orientation namely marketing, product, sales and production.
Within the context of product orientation, products and services are developed from the
perception of management and it does not include customer’s viewpoint. In this, products are
kept higher than that of actual customers. Contrary, needs and wants of the customers are given
high consideration in marketing orientation and hence products are developed accordingly.
Further, concern of management in sales orientation is to enhance the sales of the company
irrespective of the relevance of products with that of needs and wants of the customers. Apart
from this, production orientation emphasizes on manufacturing unique set of products in order to
develop unique image in the marketplace. However, it doesn’t focuses on requirement of the
customers.
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