Business Essentials: McDonald's Marketing Plan and Analysis

This report provides a detailed analysis of McDonald's marketing functions, roles, and responsibilities within the fast-food industry. It explores the application of the marketing mix (product, price, place, promotion) to achieve business goals, comparing McDonald's strategies with those of Burger King. The report covers marketing information management, product and service management, financing, purchasing, product distribution, and promotional activities, including pricing and selling strategies. It also examines risk management and the importance of customer service. Furthermore, it delves into the interconnectedness of various functional areas within McDonald's, such as research and development, sales, and communication, highlighting their roles in product development and market research. The report emphasizes the significance of effective communication and customer service in achieving business success.

BUSINESS
ESSENTIALS

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Roles and responsibilities of marketing function of McDonald's.........................................1
P2. Roles and responsibilities of marketing related to McDonald’s...........................................4
P3. Different ways in which marketing mix of McDonald's and Burger King are applied to
planning to achieve business goals.............................................................................................7
P4 Marketing plan for McDonald's...........................................................................................11
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Marketing is a place where buyers and sellers interact with each other. These two
elements plays an important role in caring all business activities. Marketing activities includes
selling and exchange of goods and services, promotional tools and techniques which creates
value for customeP2. Roles and responsibilities of marketing related to McDonald’srs.
Marketing activities includes advertisement, personal selling and sales promotion techniques. It
is defined as an umbrella in which compose of different activities which are linked with
marketing. Marketing plans are helpful in coordination of different activities which will produce
desired results for firms. Marketing essentials are related with understanding various aspects
related with theories of management, concept and methods that can be applied in real business
world. Aims of marketings are related with satisfying differential needs of customers by
providing them products and services according to their choice (Anderson and et. al., 2014).
Present report contains study about McDonalds which is leading firm in fast foods chains in UK.
Marketing roles and functions for business analysis. Comparison are made related to marketing
mix adopted by different firms like McDonald's and Burger king which are rivalry firms.
Marketing plans are related with segmentation, targeting and positioning of products which are
beneficial for customers.
TASK 1
P1. Roles and responsibilities of marketing function of McDonald's
Marketing is related with social process through this customers and organisation acquires
what they want in relation to creating and exchange of values with others. It is thus helpful in
creating value for customers by delivering them goods and services. It is also helpful in
satisfying differential needs of customers which are related with products and services.
Marketing activities are related with management of business task which are different from
innovation techniques. Marketing mix are related with 4P which are described as:
 Products manufactured and services delivered by different firms.
 Differential prices according to which products can be soled in market place.
 Place from where services can be delivered to customers ( Blumberg, Cooper and
Schindler, 2014).
 Promotional strategies which are used for increasing company sales.
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Example: Different promotional tools and techniques are used by McDonald's like
coupon cards, combo offer etc. these techniques are useful in gaining attention of large number
of customers who can consume products and services (Engemann, 2011).
Roles and responsibilities of marketing functions of McDonalds are related with the following
task which includes:
Marketing Information Management: This information is related with identifying
different needs of customers which are helpful in decision making process for firms. They are
useful in presenting informations related with various market activities. McDonald's is related
with target markets which can increase their sales. Target group of cited firms is small children's
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who can are mostly consuming their products. Various tools are used like happy meals which
comprises of gift toys which encourages kids to buy their products. Different food products are
available for customers which includes burgers, cold drinks, McFlurry etc. Thus marketing
informations are helpful in identifying operational needs according to which important decisions
can be taken easily.
Products and service management: These functions are related with assisting ,
designing and planning of products which are useful for serving various needs of individuals.
Cited organisation are leaders in rendering fast food services to large number of customers and
there business are operated under franchisee stores. They are supplying quality products to their
customers and this has helped them to achieve brand identity. Employees are hired for insider
business activities which are making customers aware about various food products which are
available for consumption. Effective communications plans should be designed so that customers
can easily place their orders for different products of McDonalds (Inoué, 2013).
Financing: This tool is used for keeping records of finance which are involved in
business operations. This can be helpful in analysing different business operations. Various ways
are adopted by which financial assistance can be given to customers to retain customers
permanently so as to increase their sales. McDonald can handle their finances as they are running
under single business owner and investors who are involved in operational activities are helping
in managing finances of firms.
Purchasing: Plans are developed in advance by firms which are helpful in caring out
effective business operations to obtain necessary goods for business. Quality of food [products
are maintained by adopting different product line methods. This features is helpful in greater
expectations of customers towards their services which they offer to individuals. Main aim of
this firms is to access food products which can reach to large volume of customers around the
globe. Supply chains are involved in increasing revenues for cited organisation.
Distribution of Products: Best policies should be designed which are helpful in
providing services to large group of people. It is the largest industry in terms of fast food services
thus it design effective distribution channels which are helpful in covering large market areas in
delivering services to customers (Inoué, 2013). They operations has expanded in more than 121
countries and thus they have established brand names. Further their operations can be expanded
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by using various promotional tools and techniques which are helpful for their business. This has
helped in increased growth rates and shares of company at market place.
Promotion: Various promotional tools are used by cited firms. These activities are
helpful in capturing attention of large number of customers. If customers will be attracted than
they will consume their food products and this results in increase in sales of firm. Promotional
tools includes various offers like discount of food items, online deals, combo packs, coupon
codes, special offers on various occasions etc. Insider games are organised for people as they are
helpful in entertaining customers and making them feel relaxed from their busy world. Thus
these promotional techniques are helpful in gaining attention of large groups of individuals.
Prices: The prices of cited firms products are same at all stores around the globe. Prices
are kept moderate in relation with monetary value adopted by its competitors. Pricing is also an
important factor as it helps in determining cost of products. Prices should be kept economical so
that products can be easily purchased by individuals (Hair and et. al., 2011).
Selling: It is related with adopting personal plans which are helpful in determining
strategies for target markets. They have sold their shares in china market but they are not able to
meet specific food needs of individuals residing in china. Products and services are available at
more than 15000 stores of cited firm around the globe. Due to increase in level of competitions
and large number of restaurant providing fast food services the firm had faced economical
slowdown in 2014.
Risk Management: Various risk factors are involved in caring out different business
activities. Effective plans and procedures can be determined which are helpful in eliminating risk
which results in reductions of losses for firms. Effective plans are helpful in gaining attention of
large number of customers who can become loyal customers of firm. Risk can be related to bad
effects on health of children's, problems related with obesity and various risk which are affecting
health of people who are consuming fast foods ( Jacobs, 2013). They had adopted grievance
handling mechanism which are helpful in solving problems of customers in an easier and
effective way.
P2. Roles and responsibilities of marketing related to McDonald’s
Roles and responsibilities are helpful in caring out business operations in an effective
way which leads to success of firms. It helps in making an individual responsible towards their
assigned works and targets which they have to achieved for business objectives. Managers are
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responsible to carry out different task which are helpful in achieving growth and development of
McDonalds. Roles and responsibilities are helpful in determining business operation which will
produce effective results.
Various functional areas which are related within firms include departments like
marketing, finance, HR, information and technology and they are interrelated with each others.
Human Resources functions are related with hiring, selection, training and development of
employees who can achieve business objectives. It is also responsible for controlling different
operations which are involved in performing business activities. Finance department are
responsible for managing overall funds which are required in performing different task.
Example: If marketing department has the responsibility of running a campaign for
promoting their business than they had to take help from the finance department so that funds
can be managed which are essential for running business activities. Roles and responsibilities of
various department are interrelated with each other which are helpful in caring out business
activities in an effectual manner. This is helpful in maintaining healthy relations with operations
of various departments of firms.
Functional areas which are related with McDonalds includes:
Research and development activities which are helpful in determining strategies which are
helpful in development of various business activities which increases growth and efficiency of
firms (Berezina, 2011).
Effective customer services are also vital for every business. Firms can retain loyal
customers if they are providing better services to customers which are helpful in satisfying their
differential needs. Thus they contribute in increasing sales of firms and achieving high market
shares.
Distribution of products and services implies the place from where products can be made
available for consumption. This is helpful in making easy availability of products to final
consumers.
There are various tools and techniques which are used for marketing of products which
involves personal selling, sales promotion, advertisement etc. These are promotional tools used
to promote products of cited firms and increase their sales (Jaggia and et. al., 2016).
If effective selling procedure are used to promote products and services of cited
organisation than they are helpful in achieving growth and success which increase their sales.
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Various roles and responsibility of marketing functions are:
Market Research: These research are conducted by various types of marketing activities.
Researcher analyse different market situations and needs and wants of customers and according
products can be made available to them. This is helpful in analysing demands opf products at
market places and consumption level of McDonald's products in economy. If research are
conducted in effective ways than they are helpful in determining various strategies related to
recent trends at market places and according changes can be adopted by cited firms. Thus market
research are helpful in satisfying differential needs of customers by making them products
available of their choices (Kongstvedt, 2012).
Product Development: New products can be developed by conducting marketing
activities which are helpful in knowing differential needs of customers. As needs of individual
are changing thus there is need to make innovation in product ranges or changes in existing
products. Innovations in products are helpful in increasing growth of firms. Thus cited
organisation are able to manufacture new goods and it results in increase in product lines.
Sales: This is major activities of every firm. Selling is related with providing products
and services of McDonald's to their final customers. Cited firms is more focused on their
marketing activities as these task are helpful in increasing sales. If people will consume more
products of McDonalds than it will help in increasing growth and efficiency of firms.
Development and growth can be achieved by increase in sales ratio. If sales are adequate than it
leads to demand for products and if sales are low than firm reaches at the stage where it has to
bear heavy losses.
Communication: Effective communications policies are adopted by firms which are
helpful in creating awareness about products which are offered by McDonalds. This policy is
helpful in promoting their products to large group of individuals thus gaining attention of
customers towards their services. If proper communications plans are followed than it will help
in understanding what people actually wants from McDonals what changes can be adopted so as
to satisfy differential needs and increasing growth (Zikmund and et. al., 2013).
Segmentation: It is the policy of diving large group of customers into smaller units
according to needs of target customers. This is helpful in knowing differential needs and wants
of their customers related to their choices. Plans can be made relating to distribution of products
so that they can easily fulfil needs of their target customers. This method is helpful where there
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are large group of population with different choices so it is difficult to reach every customers.
Thus segmentation helps in grouping of customers according to their differential needs.
According target strategies can be determined for fulfilling needs of different group.
P3. Different ways in which marketing mix of McDonald's and Burger King are applied to
planning to achieve business goals
Marketing Mix are related with adopting 7 P which are helpful in taking
important decisions. This includes products, place, price, promotion, people, process and
physical evidence.
Evaluating Marketing mix adopted by McDonalds
Products: It relates to manufacturing of products so as to satisfy various needs of
customers. Physical services are provided to its employees. Products of cited firms includes
various aspects like branding, packaging, labelling so as to make products attractive. Products
are designed according to needs of its customers and than in-depth study is done relating to
manufacturing of goods. Their Products are made according to belief as beef is banned in India
so its Goods does are designed keeping their rituals. They are using quality food products and
contain vegetarian foods for its customers. Changes are introduced in products accordingly if
taste and preferences of customer changes. There product lines are expanded as they have
introduced new goods like Chicken Maharajah Mac etc (Weaver, 2011).
Prices: It includes cost at which goods are made available to customers. Various
discounts are offered so as to attract customers and increase sales like coupon codes, combo
packs, gift vouchers etc. Prices of products are adopted in relation to cost at which its competitor
is selling its products. This factor is very essential as it determines growth and success of firm.
Prices should be kept moderate so that customers can easily consume their products. It is helpful
in generating revenues for firms. Various tag-lines are used by cited firms to gain attention of
large groups like “I am Loving It” Symbols are also used by company which reflects its brand
and people can easily identify the brand looking at its symbol. Effective pricing strategies are
used like happy hours meal, combo packs ect. to increase sales of firms.
Place: It refers to physical locations from where products and services can be distributed.
It includes channel distributions and outlets of firms. Services should be rendered to customers at
right place and time when they are demanded by them. Various insider task are organised to
entertain large volume of customers. Products are hygiene and contains quality standards which
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are provided to customers. Wi-Fi facilities are installed through which user can access free
internet when are sitting at their outlets. Cakes and balloons are offered to small children's which
is also a part of their promotional activities.
Promotion: These strategies are adopted to make communications policies effective in
rendering services to their target markets. Various strategies are adopted like public relations,
personal selling, sales promotion, direct marketing etc. Cost are adopted which are feasible to its
customers. Various marketing activities are conducted like fun games etc. These strategies are
used by cited firm to become leaders in fast food industry. These promotional tools are helpful in
integrating with different communications channels so that message can be easily reached to its
customers about various pricing discounts and make products available to its potential
customers.
People: They are important resources for business firms. McDonalds had to understands
its needs of people and workers. If healthy work environment is established and workers are
happy than they will serve the customers in desired ways. Internal plans should be effective for
promoting their products because it affects the strategies that are adopted for external markets
and this also determines success of firms. Internal market plans are related with human resources
such as hiring and selecting of employees and give them training and development assistance to
make them familiar with work environment. There main objectives is to serve customers and
make them happy by satisfying their differential needs. Positive environment are helpful in
making employees happy and achieve targets of firms (Prewitt, Weil and McClure, 2011).
Process: The process for manufacturing food are same all around the globe. Products are
same in relation with their cost, quantity, packing and sizes. The designing of kitchen where food
processing takes places is also same at all outlets. There arrangements of chairs where customers
can sit and consume food are also in same sequence. In different parts of world languages are
spoken differentially and thus their menus are designed according to languages which can be
understand by people of that easily order what they want. Thus it has able to achieve strong
positions as it is brand which is preferred by most of individuals.
Physical Evidence: It is related with physical locations of stores. There outlets are user
friendly and services are offered in healthy and hygienic ways. Birthday parties are also
organised for small kids and thus separate areas are reserved for them where they can enjoy their
day. Customers services are offered by employees in effective ways and they always have smile
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on their face. This is done because if customers are happy it will result sin retaining loyal
customers who will increase their productivity. Meals are designed for kids which contains free
toys this is also a promotional activity. Thus physical evidences are similar at all outlets around
the world.
Marketing mix of Burger King
Product Products are important for every business
activities and they are helpful in analysing
business performances. Various fast food are
offered by Burger king like fries, hash browns,
onion rings cheeseburgers, hamburgers, salads,
juices and cookies. It adopts different policies
for its products which differentiate it from its
competitor which includes variety of products.
Efforts are taken to attract large group of
individuals and thus products are also offered
at discount rates to make loyal customers. This
will help in increasing profits for firms. Foods
are offered in various ways like meal packs,
free food substitutes like fries, juices and
shakes.
Price Prices are adopted which captures attention of
large group of customers thus their pricing
policies are different (Jacobs and Chase, 2013).
They adopt the prices which are helpful in
increasing profits . Various products are
designed according to seasons and festivals
like it has launched summer drinks. Prices
strategies are adopted which enables a
company to reach at high positions. Better
customers services are provided to reach large
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volume of customers.
Place This is related to different outlets from where
services can be offered top customers. Place
should be selected which covers large market
areas and generate more profits for firms.
Business activities are increased by franchise
business, signage and equipments. They
purchase various buildings on rent for
rendering services to their potential buyers.
Promotion Various promotional strategies are used by
company to attract large volume of customers.
They mainly target small children's for
increasing their sales. Various talent
programmes are organised, at entrance door
videos are played which are helpful in making
customers aware about different range of
products. Special tour packages are organised
for creating awareness in urban areas.
Promotional media are used like television,
newspapers, online website and magazines etc.
People They are valuable resources of firms.
Employees are recruited who have desired skill
and knowledge to do the work which can
increase efficiency of firms. Young talents are
hired who have knowledge about changing
needs of customers so that products can be
designed which satisfies them (Zikmund,
2013).
Process Main focus is on those segments in which
people are spending more amount of money in
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fast food industry. Customers can be male
females or young children's who will be
consuming services and thus company can
retain loyal customers.
Physical evidence It defines the presence of burger kings. They
had established their presence all around the
world. Designing of store locations are also
termed as physical stores.
P4 Marketing plan for McDonald's
McDonald's is food retail company that has 30000 outlets in over 120 countries. This company
has been considered in world's largest food chains. Marketing plan is one of the important task
for the company that provides assistance to enhance its profitability and productivity.
Many factors covered in marketing plan of McDonald's as:-
Mission
“To be customer's favourite place for higher standard quality, service, cleanliness and value
every time”. They invest individual to be the part of winning team and provides opportunity for
the growth and development of people.
Vision
To be the restaurant which provide quick service where support is provided by core values and
guiding principles.
Marketing statement of McDonald's
This company believes that customer perception regarding the better quality product is very
important for the company. Marketing strategy of this company is designed with the
consideration of customers perspective. McDonald's as globally recognized company with
definite hope for the client (Weaver, 2011).
SWOT Analysis
Strength
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 Its worldwide presence that has huge impact over competitor.
 Market leader in domestic and international market.
 Better use of economies of scale for cost reduction (Hair, 2015).
 High capability to generate high revenue and its sales based on its market goodwill.
Weaknesses
 Increase in market saturation which is very difficult for McDonald's.
 Slow process of product innovation.
 Development of high competitive market.
Opportunities
 To make the outlet chain better for new users and may adopt value added service as
internet access.
 Availability of international expansion for the product and services of McDonald's.
 Production innovation is also good opportunity for development.
Threats
 Open to alteration in global economy.
 High fluctuation in currency denomination rate has adverse impact over the business of
company.
Competitors of McDonald's
Many competitor of this company as Yum Brands, Inc, Wendy's International Inc. jack in Box
Inc, Burger King Corporation, KFC and Pizza Hut. They are some of its biggest competitor in
market that influence the business of McDonald's.
Market Segmentation and Targeting
The product is provided by this company for all type of customers. Businessmen, corporate
people and other people of society are treated by them in effective manner. McDonald's uses
demographic segmentation and consider age of people as the basis for segmentation. They have
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main target on children, youth and young family members. Most of its product are based on
Chicken that are easy to digest in short period (Wilson, 2014).
The food chain of this company is good solution for different group of people. This brand
provides various product to people across the world. Its food products are available at cheap rate
that can be afforded by different segment people and it is also within the reach of poor and
middle class family (Prewitt, 2011).
Budget
The marketing budget of McDonald's is prepared after the analysis of different strategies of
marketing and its marketing executives are presented before the finance team. 50 percent of total
budget is allocated to marketing department each year so that they can adopt effective plan. This
ratio changes with the seasonal variation or due to launch of new product.
Monitoring and Control
For long term sustainability, this company has main focus to maintain price of its product for
long time and to make new innovation with existing product. Market prospect is the main area of
concentration of this organisation. They have effective control over its supply chain management
system so that they can not face any problem in this regard for future period.
CONCLUSION
As per the above report it has been concluded that marketing essential play a significant role in
performance of every business organisation, in which production, distribution and finance are
included. Firm use various strategies for attracting large number of customers towards their
organisation in order to achieve more benefit and success. Comparative study is done between
burger king and McDonald for identifying their market position. Every company made a
marketing plan for effective operation of work. This plan is helpful in providing right direction
for achieving organisational goals and objectives. McDonald use various tools and techniques for
fulfil needs and demand of customers for attaining high range of profit. Strategy of marketing
mix give a right direction to promote their product in an organisation.
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