University Marketing Strategy and Plan: MacDonald's Case Study Report

This report provides a comprehensive marketing strategy and plan for MacDonald's in New Zealand. It begins with an introduction to MacDonald's, followed by a product/service description. The report outlines organizational and marketing objectives, identifies market opportunities, and defines the target market. It includes a SWOT analysis, examines the 4Ps of marketing, and discusses strategic options. The report covers market performance, competitive positioning, and the external macro-environment. It also includes sales forecasts and recommendations for performance evaluation and monitoring. The analysis covers various aspects of MacDonald's business, including product development, pricing, promotion, and placement strategies. This report aims to provide a detailed understanding of MacDonald's marketing efforts and future prospects.

Running head: MARKETING STRATEGY AND PLAN
Marketing Strategy and Plan
Name of the Student:
Name of the University:
Author Note:

MARKETING STRATEGY AND PLAN
Table of Contents
1.0 Introduction................................................................................................................................2
2.0 Product or Service Description..................................................................................................2
3.0 Objectives..................................................................................................................................3
3.1 Organizational objectives of MacDonald’s New Zealand.....................................................4
3.2 Marketing objectives of MacDonald’s New Zealand............................................................5
4.1 Identifying the opportunities and features of the market.......................................................5
4.2 Describe and confirm target market of MacDonald’s and provide assessments of current
and future demand in these target segments................................................................................6
4.3 SMART objectives................................................................................................................6
5.0 Product or Service Description..................................................................................................7
5.1. Current Market Performance....................................................................................................7
5.2 Market Position and Competition............................................................................................10
5.3 External macro-environment...................................................................................................14
5.4 Key issues................................................................................................................................17
6.0 Strategic options......................................................................................................................19
6.1 Developing strategic options for MacDonald’s...................................................................19
6.2..............................................................................................................................................22
6.3..................................................................................................................................................25
Distinctive competencies...............................................................................................................25
2

MARKETING STRATEGY AND PLAN
7.0 Marketing and positioning strategies.......................................................................................27
7.1 4 Ps of MacDonald’s...........................................................................................................27
7.2 Risk and returns...................................................................................................................28
7.3 Defining desired market position for MacDonald’s to meet organizational and marketing
objectives...................................................................................................................................29
7.4..............................................................................................................................................30
7.5..............................................................................................................................................31
8.0 Forecasts..................................................................................................................................32
8.1 Sales Forecast of MacDonald’s...........................................................................................32
9.0 Performance evaluation and monitoring..................................................................................33
9.2 Recommending corrective measures...................................................................................33
Reference List................................................................................................................................34
3

MARKETING STRATEGY AND PLAN
1.0 Introduction
MacDonald’s Restaurants Limited in New Zealand is one of the subsidiaries of the international
fast food restaurant chain of MacDonald’s. In addition, MacDonald’s in New Zealand operates
in more than 160 restaurants that opened in and across the world that serves an estimated 1
million people per week. Nature of restaurant is to serve good quality of food to the people.
This fast-food restaurant chain sells products like hamburgers, French fries, soft drinks, pies,
breakfast items, milkshakes, cheeseburgers, desserts, chicken, and coffee. All health and safety,
rules are followed by them .Main ambition /purpose of MacDonald’s is to give affordable or
cheap prices ,good customer service with good quality of food to customers .Here customers can
come to restaurant any time to have food ,as most of stores open 24 hours ,if they are in rush they
can choose drive thru service. MacDonald’s have good scope in future. In every year they open
1000s of restaurants .They offer everything in one shed like variety of food , café , some foods
which is likes by health conscious people and they organize parties as well .hence we can say
they have good future . MacDonald’s in New Zealand head quarters operations are based at
Greenlane in Auckland. MacDonald’s is also known as Macca (Wu, 2016).
2.0 Product or Service Description
MacDonald’s in New Zealand sells product that is consistent in the international markets that
include signature product of the chain (Big Mac). There are various products that are unique to
the New Zealand menu of MacDonald’s and these are as follows:
Kiwiburger-
Kiwi Big Breakfast
Massive McMuffin
4

MARKETING STRATEGY AND PLAN
George Pie
The Boss
Breakfast Bagels
Chicken McMuffin
Deserts-.
Café
Services –main purpose of the organization is satisfy the customers and put smile on their face ,
as they are very good at customer service .they hire good and friendly staff for good customer
service. They offer services like free wifi to customer, din in or drive thru option, arrangements
for party’s .they give best deals to customers in reasonable price so customer can come again and
again.
3.0 Objectives
3.1 organizational objective –these are those objective in which organization set some goals and
to achieve those goals in future they communicate with staff and other members of organization
which are brand reputation, attracting more customers and provide good quality of food . every
organization put main concern on long term objective . Some up of objectives are vision and
mission, targets and sale of organization.
3.1 Organizational objectives of MacDonald’s New Zealand
MacDonald’s reputation within the industry- One of the organizational
objectives of MacDonald’s New Zealand is to maintain their current position and
take an effort to occupy the topmost position in long run.
5

MARKETING STRATEGY AND PLAN
Higher customer satisfaction- MacDonald’s New Zealand aims at satisfying the
existing customers as well as makes an effort to acquire new customers for the
restaurant. The restaurant should be a place for all types of people where they
will continue to develop both their burgers as well as healthier alternatives.
MacDonald’s New Zealand should keep their original brand intact (Solomon,
2014).
Reinforcing MacDonald’s image with a new communication focus-
MacDonald’s New Zealand has to put main focus on creating new image as well
as perception of fast-food chains.
Profit and market targets – the main aim of McDonalds is more sales and
maximum profit , they using since from gown age of their business .through this
way they gain more profit from customers ,like they once they sell two cheese
burger just for $5 ,at that time there sales go up much higher and they achieve
more profit and customer attention as well .in market targets McDonalds got
competition from KFC, subway etc they set 60 percent of market shares to target
market for the good sake of company growth and brand reputation .
3.2 Marketing objectives of MacDonald’s New Zealand
Promotion of products-as Macdonald’s always introduce in new products they
should promote those products through advertisement to create awareness of new
product among customers .80 percent of sale can increase by doing promotion .
Attracting new customer-to reach main purpose as to gain more profit, they
always think about customers, if you have more customers sales can go up
6

MARKETING STRATEGY AND PLAN
automatically. So by providing best customer satisfaction we achieve that
objective.
Target sales –target market is very important hit sale area, organization think for
target market first then set some targets to hit that. Like they want to hit 80
percent if target customers by the end of year 2017.
4.1 Identifying the opportunities and features of the market
McDonalds’ should be located in that area which is full population and side by side there is no
burger king and KFC McDonalds is fast food chain and people loved it .their strong brand
power name does not effect it sales even if there are small shops around that . if any want make
money he or she can open this business .macca has different variety of burgers , drinks , desert ,
coffee .they always take care of following points for long term of opportunities .
Health and wellness trends in fast food
Focusing on local produce
Influencing the youth generation
7

MARKETING STRATEGY AND PLAN
4.2 Describe and confirm target market of MacDonald’s and provide assessments of
current and future demand in these target segments
People with high class-when it comes under high class people they always think about good
quality large variety of products range, they never think about price when they buy them. People
with good income and jobs come under this category.
People with middle class- they always want best deals and affordable price because they always
look for those deals. Macdonald’s comes with special meals and deals which are very affordable
and reasonable .like their 6 dollars value meal pack
Current and future demands
4.3 SMART objectives
Business objective
Organizational support-MacDonald should provide best customer service and food quality for
customer satisfaction. For customer satisfaction Product has be affordable and customer loyalty
is must to stay in business.
Profit target-to maximizes profit we should decrease the wastage, increase the supply of product
and give best customer service to increase the sale.
Target market-they should have plan to increase no of customer every year. They should launch
more deals and products to gain attention from customers.
Marketing objective -we need to hit target market to sustain in business. We should provide a
better deals from competitors and we should always promote our business so we can attract
more customers . Distribution should be good and customer satisfaction is must.
8

MARKETING STRATEGY AND PLAN
5.0 Product or Service Description
5.1. Current Market Performance
5.1.1 4 Ps of marketing of MacDonald’s
4 Ps Strategies Impact
Product Product Development-
MacDonald’s believes in
introducing innovative menu as it
will help in increasing revenue
by 20% by the end of 2019.
MacDonald’s even make
strategies tin which customer can
spend minimum amount of
money and get offers for kids and
kids meal could be free.
Innovative products will help in
improving product, service and
quality within the business
It will even help in expanding the
business of MacDonald’s and
gaining new or potential
customers
Price By using Market Penetration
pricing method Here, the main
focus of the strategy will be to
attract or acquire new customers
for the business
Bundle pricing or happy family
meal as it is considered as one of
the best strategy for increasing
the sales where MacDonald’s can
offer free frozen drink or ice-
After implementing those
strategies, it will help in
understanding the state of
MacDonald’s in the current
marketplace
It will help in keeping a track of
unsold items as well as increase
the perception value of
MacDonald’s in the eye of
customers
9

MARKETING STRATEGY AND PLAN
cream with any purchase items of
20 dollars.
Promotions Social media is one of the most
appropriate way to promote the
products or services of
MacDonald’s such as Facebook,
Instagram, Google Plus and
Twitter
MacDonald’s can even start
indoor activities to increase their
sales
They attract their customers by
their slogans as well
“I’m loving it ”
“just because”
“ more than you expect”
Promoting a product of
MacDonald’s is less costly by
making use of electronic devices
as well as effective way to
increase sales
Individuals will show interest in
purchasing deals with a
viewpoint to win the contest and
this will ultimately be a reason
for increase in the sales .activites
while eating is good for children
so the whole family come which
increase in sales .
Place Selective strategy will be the best
at the time of planning for a
location otherwise sale will be
hampered. Busy streets or malls
should be well-suited to open a
store of MacDonald’s.
Individuals will be always
attracted to a place where they
can both shop and eat at the same
time. Opening a store of
MacDonald’s at malls will help
in getting access to more
customers.
SWOT analysis of MacDonald’s New Zealand
10

MARKETING STRATEGY AND PLAN
Strengths Weakness
Strong brand image
Standardized process
Moderate market diversification
Low product diversification
Limited process flexibility
Vulnerability to market decline
Opportunities Threats
Product diversification
Market development
Expansion in the developing countries
Healthy lifestyles trends
Aggressive competition
Trends and regulations
5.1 2.
Recently they launch new game which is play monopoly in which customer can buy products
from Macdonald’s and they get coupon to play game after this they can win a lots of prizes like
Suzuki swift car ,Wilson free car parking for one year , many more gadgets , TV, holiday trip,
cash coupons , McDonalds’ coupons and some more . In that way, individuals will purchase
more and more products to win items and that will positively be a reason to sale increase for
MacDonald’s. They have special schemes for kids as well because kids are accompanied by
parents. Targeting kid segment will automatically take into account entire family and their
preferences to food items. This, in a way will help MacDonald’s to boost their sales and generate
profits in the near future. (macca monopoly play )
11

MARKETING STRATEGY AND PLAN
5.1.3
Some of the strategies need to be adopted by MacDonald’s so that they can attain future goals as
well as objectives. Using 4Ps model help in promoting pricing, product as well as placing of
MacDonald’s
Addition to that, 4Ps model will help in achieving the target market such as increase in revenue,
acquisition of new customers as well as affordable and reasonable pricing with proper
distribution in and across the country. Objectives can meet by doing advertisement with proper
description of product and price current organizational strategies can achieve by these market
performances.
5.2 Market Position and Competition
5.2.1 Business Life Cycle
Business Life Cycle is one of the model that can be used by every organization which have five
main stages that include beginning, development, growth as well as maturity and decline.
MacDonald’s is an already existing fast food restaurant chain. McDonalds’ is already on the
maturity stage where people know about MacDonald’s and the only need is to maintain the
current position and fight against the competitors by selling unique products. Newly introduced
new MacCafe by MacDonald’s are at beginning stage
For development and growth stage, MacDonald’s plans to open new stores in developing
nations. In order to understand the position of MacDonald’s in best possible way, it is important
to conduct product portfolio analysis and BCG matrix for the product offered by MacDonald’s.
BCG Matrix and product portfolio analysis Products and services
12

MARKETING STRATEGY AND PLAN
Cash cows They are no in cheese burgers .the cash cows are
cheese burger, double cheese burger , big Mac and
they always but drink and another side with them .
Question Mark They have mc flurry and shakes which looks same
so company should think about those products have
or not .some customers like it and some not .
Stars In this they have very good value meals which just
cost 6 dollars in which customers can get burger,
fries, drink and sundae. Customer prefers those
sorts of deals because they are cheaper and get
everything.
Dogs Salads, wraps, apple pie, fish burgers. People buy
them nut in very small quantity.
5.2.2
Competitive analysis- MacDonald’s had been a leading fast-food outlet. MacDonald’s faces
stiff competition from its traditional rivals such as KFC, Dominos and Pizza Hut. New critical
success factor are emerging in the market where MacDonald’s provides rich, satisfying
experience for the consumers.
Main Competitors- Burger King, KFC and Wendy’s are the main competitors which are well
established in market from medium to large market size .we need to pay focus on our market
13

MARKETING STRATEGY AND PLAN
shares as the competitors increasing their market share ever year . in otorongha town Waikato
there just kfc no McDonalds which become barrier for opportunities
Products and services- burger king look like as MacDonald’s as they offer similar king of
products .sometime customer choose burger king over macca because they offer some vegetarian
meal as well and you can refill up your drink many times as you want. In Google review some
people commented that there flame –broiled, smoky meats are better than macca .
Strengths and weakness- in following table we discuss about strength and weakness of three
big companies which are McDonalds, burger king and KFC
McDonalds Burger king KFC
Strengths Macca offers mobile
app and online service
to order , they also have
big screen where you
can order and pay there
which saves time and
don’t need to stands in
big queues
They have their own
café known as mcafe
which offers wide range
drinks and cabinet food.
Burger king offers refill
drinks system; you can
refill drink as many
time you want you can.
They also offer some
vegetarian meal
It also offers 5 dollars
stunner meal which is
very cheap.
They also have large
variety in chicken
products like chicken
nuggets, chicken fries.
KFC have their own
special chicken recipe,
which only KFC have.
They offer coleslaw
withal meals.
Weaknesses McDonalds’ does not
offer any kind of
Buger king does not
have online service
They don’t have
24hours service all
14

MARKETING STRATEGY AND PLAN
vegetarian meals and
they don’t have any
facility to refill drinks.
portal or app we need to
stand in queue for
making orders .they
don’t offer any sort of
café as macca do .
stores close at 9
pm .and they also don’t
refill drinks.
Impact on your
company strategy
(McDonalds )
Our sales can go down
if competitors can offer
good price value and
more attracting
products, through which
we can’t hit out profit
targets. This leads to
loss in toatal budget.
Market strategy used following table will show strategies used by 3 companies. if one company
reduced its manufacture cost which leads price war between all of three of them .some company
as higher brand power , some has good quality food which makes big differentiation .
Organization Strategies
McDonalds’ Introducing new product developments macca
has strong brand power all over world .their new
target market could be adding new products to
menu like vegan meals, gluten and dairy free meals
or some vegetarian meal .they can make home
deliveries as well .
15

MARKETING STRATEGY AND PLAN
Burger king Market penetration as there are very less stores
for burger king in market .by giving more services
in cheap prices they can do that. Same as
MacDonald they should launch new products as
well like café.
KFC Same as burger king they need market
penetration by opening their stores in new location
as there are less of them by providing less price
products.
5.3 External macro-environment
5.3.1
Social factors- MacDonald’s mainly consider the impact of social environment on the fast food
industry. There are several social factors that impact working of MacDonald’s such as widening
wealth gap, increased cultural diversity and healt` hy lifestyle trend.
Economic factors- MacDonald’s mainly consider the impact of economic environment on the
fast food industry. There are several economic factors that impact working of MacDonald’s such
as if there is change come currency rate for any nation or country it affect straightway to their
price and services providing by them . it also may affect demand and supply graph of company.
Demographic factors- New Zealand has an aging population. The elderly population is not
frequent to generic fast food due to its heavy oil and fat content. This makes it necessary for
16

MARKETING STRATEGY AND PLAN
McDonald’s to create healthier products for older people in order to keep this growing
population in business reach.
Cultural and ethnic factors- MacDonald’s sells only chicken and beef products some people
who are vegan or vegetarian they don’t eat them. They go to kfc or burger who sells those
products which can affect their sales.
Natural factors- These factors has small relevance to this industry or company as a whole.
Natural factors like weather, earthquake, drought they can affect that but these are not taken into
account much more.
Political factors- There are several political factors that impact working of MacDonald’s such as
when govt introduce some new rules, which may affect existing rules. There impact can effect on
sales and prices. Whenever these change come organization ready to accept that.
Legal and regulatory factors-There are several legal factors that impact working of
MacDonald’s such as in nz every organization has to follow some health and safety rules , ird
polices ,and some sort law like labor law , minimum wages law .
Technological factors- MacDonald’s use smart technologies like big screen to place order ,
mobile app . If some new technology come that can affect straightway .
Competitive factors- MacDonald’s face stiff competition from KFC and Burger that are present
in the local market. MacDonald’s still has occupied the topmost position in the fast food
restaurant industry. Cheap prices is the main competitive advantage of MacDonald’s that make
them unique than its competitors. MacDonald’s engages in an extensive utilization of economies
of scale for achieving cost advantage.
17

MARKETING STRATEGY AND PLAN
5.3.2
Product quality- MacDonald’s believes that food provides by them is of good quality which
makes their customer healthy and happy as their food chain is on no 1. MacDonald’s always help
their customers by keeping them informed with the balanced dining choices by providing
nutritional information and full list of ingredients for all the products offered at stores. They
always use good quality of raw materials, safety issues so that customers come again and again.
Variety of products- MacDonald’s offers wide variety of products to the customers so that they
can select the best option and pay the price. They only believe in keeping it simple and able to
deliver in a fast as well as efficient manner.
Customer services- When individual visit store of MacDonald’s, there will be staff members
who will assist any customer who visit store and help with menu selection as well. By placing an
order, there will be staff members, who will take the order patiently without getting angry with
too many questions. At MacDonald’s, they believes in serving the customers with the best
services so that they visit the store again and spread good word of mouth communication.
MacDonald’s is well known for their providing quick customer service to customers.
Price competitiveness- MacDonald’s got a lot of competitors like burger king which is offer
same products same like MacDonald’s .nowadays people become smart they choose price first
rather than quality or brand name of organization . Like BK offers 5 dollars value meal and
vegetarian mean and there refill cold drink strategy attracts customers easily. But macca in their
place provide same thing for 6 dollars and café service as well which make them distinctive in
market.
18

MARKETING STRATEGY AND PLAN
5.4 Key issues
5.4.1. Marketing resource utilization value chain analysis tools can be used to for market
resource utilization which include five steps
 Inbound logistics –are those which supplies raw materials to organization and they make
sure that raw material deliver is on time and they provide best raw material .if we own
suppliers that can reduce our cost .
 Operations – after we get our raw materials now we need to make final products with
those , for final finish we need staff who can assemble it .organization provide full
training to staff in which they make product in fast manner .
 Outbound logistic - come from user end in which we store and make movement from the
production line . when customers enters in store he or she to give order to counter which
should be serve in minutes after they serve with their meals there should be capacity for
them to sit .
 Marketing –for marketing they use to advertise of their product ons ocial media which
in on trend nowadays .after social media they use posters on roads , billboards or send
emails to customers .
 Sales and services – for sales they offer discount on some meals or son public holidays ,
nowadays they launch macca monopoly game where customer buy product and they win
a car and some more gifts these things increase sales .from service prospective they
always provide good and quick service with smile .
Issues which can impact the market strategy is inbound process in which we get the raw material
from different suppliers, after we get raw material we need big storage inventory to store them so
19

MARKETING STRATEGY AND PLAN
that they can be fresh. then we need to give them final shape for this put raw materials in
machines ,which produce final products like burger , chips etc .by there their own house
resources in which they make own stuff and whenever they need they can in which we don’t
need much storage and it will always fresh .
5.4.2
Brand name –to increase reputation of brand name we try to make 40 % by year
2019.nowdays we are at very good ranking we almost achieve 15 percent of the target area .
Customer satisfaction -90 percent of customers attract to us every year .for more customers we
provide new product range, cheap prices , good quality of food . maaca is always loved by
customers .
Profit targets –to achieve profit targets we decrease price in which sales goes up and it become
famous as well. We set target of 70 percent of sales by year 2019.
Market targets- organization growth is going very good at this stage by providing everything
under one shelter. We can target 50 percent of target by the end year 2018.
Gaps –sometime there should gaps come under sales because of technical problem , or shortage
of raw materials , demands of customer for some other products ,or there sis new franchise open
in same area which make gaps between sales . for example there is problem in cream machine
for that they give compensation on drinks .
20

MARKETING STRATEGY AND PLAN
6.0 Strategic options
6.1 Developing strategic options for MacDonald’s
Objectives Strategic options
Target markets MacDonald’s need to target their audiences based
on their needs, preferences and expectations.
MacDonald’s mainly believes in targeting the
younger or teenagers as they are more interested to
eat or grab fast-food items. It is for this reason
MacDonald’s had kept food for these teenagers that
are available very easily at the store and there is
takeaway option also present for the people who
are busy and has no time to sit and grab fast-food
items (Nobre & Silva, 2014). MacDonald’s
believes in rendering good customer service where
everybody are happy and content with the food and
service irrespective of age and gender. Each
employee working at MacDonald’s has an
important role to play in providing service with
best practices that is found anywhere in the
business (Papadopoulos & Heslop, 2014).
Demand MacDonald’s has high demand in the fast-food
sector and they should make strategies to meet the
demand with available resources present with them.
They should make sure that demand equals supply
so that there is no wastage or abundance of food
21

MARKETING STRATEGY AND PLAN
left for the company that becomes difficult to
manage. Demand can be managed by the company
by understanding the trends, customer expectations,
attitudes, season as demand widely changes based
on these factors (McDonald et al., 2015).
Products MacDonald’s aims at providing high quality
products like burgers, muffins as well as drinks and
French fries that are safe and reliable. The fast food
restaurant ensures that a high standard of the
product is carried out all the time as well as
compete in the competitive world with other
competitors who operates in the fast food market
with good value for money (Ashley & Tuten,
2015). MacDonald’s make sure that the products
offered to the customers are safe and reliable with
provided instructions. It mainly helps in securing
safety of customers as well as hoping to get more
customer base. This in turn will help MacDonald’s
to increase their sales by keeping their existing
customers as well as acquisition of new one.
The products of MacDonald’s are safely packaged
so that the customers do not face any problem. for
customer safety they use plastic lids on coffee
cups .. The fast-food restaurant makes sure that
they offer nutritional guide of the product to the
customers where it is clearly mentioned what is
22

MARKETING STRATEGY AND PLAN
present in the product.
Price By market penetration they can attract
customers easily .bundle pricing is good
strategy for higher sales they offer icream
purchase of 10 dollars.
Distribution Macca use selective strategy so the customer can
have in any town city any location
Promotion Advertising done through mass media of
Television
Print Media
Internet
Public relations through sponsorships
Sales promotion through offering value meals,
limited time offers, discount coupons and
lower prices during selected times
Personal selling by recruiting counter staff
members who are trained to up-sell activities
23

MARKETING STRATEGY AND PLAN
6.2
Objectives Ability to
maximize key
opportunities
and marketing
strengths
Critical success
factors
Marketing
capabilities and
resources
Market
characteristics
Competitive
factors
Target market
Product variety
marketing
MacDonald’s
believes in
getting access
to 100%
customer
satisfaction as
it will help in
creating
opportunities
as well as
reaching the
target segments
MacDonald’s
aims at
establishing
global advisory
council that
provides expert
guidance on
nutrition as
well as well-
being. In order
to satisfy
health-cautious
customer,
MacDonald’s
began to
include high
quality choices
on the menu
where
Customer
satisfaction
help in
maintaining
better
relationship
and increase
loyalty in the
near future
Target
segments are
majorly for
younger
generation and
kids
Stiff
competition
from KFC and
Burger King
24

MARKETING STRATEGY AND PLAN
customers can
select from
hamburgers to
salads.
MacDonald’s
aims at
providing
customer-
friendly
nutrition
information on
menu items
(McDonald et
al., 2016).
Demand
Conducting
market
research
Conducting
market
research will
help in
understanding
the needs and
expectations of
the customers
MacDonald’s
New Zealand
believes
convenience as
a main key
factor for
attainment of
future success
in the fast food
market. Some
of the stores of
MacDonald’s
Advertising
through social
media
networking
sites,
Television,
personal
selling and
sales
promotion
measures
Set affordable
and economy
pricing
Innovative
products
25

MARKETING STRATEGY AND PLAN
have been
positioned
inside as well
for customer
availability
Product
New
Development
Innovative
products to
meet the needs
of customers
MacDonald’s
New Zealand
had faced
economic
downturns
because of the
affordability of
the menu.
MacDonald’s
is one of the
largest fast-
food market
chain that post
10% growth in
its third-quarter
profit that
topped market
estimates
Good quality
products
Market
research
Quality design
and food
quality
Price Affordable
pricing
Customer
satisfaction is
vital
Building good
relationship
with the
Occupies
topmost
position in the
Fast delivery
and quality
26

MARKETING STRATEGY AND PLAN
customers fast food
restaurant
chain
food
Distribution On time
delivery
Good
marketing
strategies
Channel
management
On-time
delivery
Fast delivery
and quality
food
Promotion Social media Latest
technology
Personal
selling
Customer
satisfaction is
vital
Fast delivery
and quality
food
6.3
Distinctive competencies
Price- Burger King is the main competitor of MacDonald’s as they always come with better
deals or lower prices for competing in this marketplace.
Quality- The product quality of MacDonald’s is better than its competitors. MacDonald’s is
famous for its speedy delivery without compromising the quality of service.
Time- MacDonald’s offers on-time delivery without wasting time of customers.
Flexibility- They has their stores open for flexible hours for meet excess demand during peak
months.
Competitive advantage – there are two type of competitive advantage
27

MARKETING STRATEGY AND PLAN
1. Differentiation advantage –that sort of advantage is given by providing exceptional
service or products to the customers. Like in McDonalds you can arrange birthday parties
which is not possible in burger king .for such uniqueness customer always pay more to
organization.
2. Cost leaders- there prices are not matched with any products so this one advantage.
6.4
Strategy options Ranking 1 to 10
10 is for good
1 for poor
Justification
Target markets 8 MacDonald’s target a market
every year as well as set
strategies that they will achieve
future target segments
Demand 8 In order to fulfill the demands of
the customers, MacDonald’s only
believes in keeping check over
needs as well as demands of the
customers
Product 7 MacDonald’s offers best quality
of product with proper nutrition
factors.they need put more
products for vegetarian people.
Price 7 MacDonald’s set affordable
28

MARKETING STRATEGY AND PLAN
pricing strategy .people wish to
have new products which may
take price as well
Distribution 7 MacDonald’s has good
distribution but sometime face
issues such as delay in
transportation
Promotion 8 MacDonald’s uses latest
technology for advertising the
products as well as services
7.0 Marketing and positioning strategies
7.1 4 Ps of MacDonald’s
Product- MacDonald’s New Zealand had introduced new products as well as phased out old
new ones. Products offered by Kiwiburger, Kiwi Big Breakfast, Massive McMuffin, George Pie,
Breakfast Bagels as well as Chicken McMuffin and The Boss ,this will help in more sales and
also hit the target market .
Price- through market penetration we can easily attract customers giving them low price range of
products. We can beat our competitors and hit target market as well which help in more income .
Promotion- Sales promotion, advertising, personal selling is best way out promote products.
29

MARKETING STRATEGY AND PLAN
Place- The outlets of MacDonald’s are even evenly spread throughout the cities that make them
easily accessible. The fast food restaurant drives in and drives through options that provide
convenience to the customers. They use selective strategy when place come
7.2 Risk and returns
 Product-organization launches new products it may or may not harmful but depends on
customers. If they like it help in more sales if they don’t like new product, it goes in
waste of money.
 Price –market penetration is good strategy to attract customers, but some sometime it
cause risk like if actual cost of product is more but we are selling that product on lesser
price which may affect the profit targets.
 Place-always choose good place with all demographic and geographical factors, even
search for competitors’ on that place as well.
 Promotion-distributing flyers or sending email can be wrong method of promotion as
people don’t like those sort advertisement. People always attract for those which is in
trend like internet.
30

MARKETING STRATEGY AND PLAN
7.3 Defining desired market position for MacDonald’s to meet organizational and
marketing objectives
Product attributes- No other fast food brand was as successful as that of ,MacDonald’s
as far as branding is concerned. MacDonald’s has given main focus to their product
attributes. The main product attributes of MacDonald’s are Quick Service as well as
Family Orientation that make them unique from other competitors. They develop those
products according what people like as in nz people like beef they make beef patties as in
India people like vegetables they make vegetable patties .they do this so they can achieve
their targets and objectives . (Lagat & Frankwick, 2017).
Usage and users - MacDonald’s targets families and kids as they offer wide range of
meals which are suitable to both youngsters and families. Their one dollar products like
frozen drink and ice creams attract kids and teenagers. They used work on senior citizen
category as they are low user.
Product class- they offer large variety of products like breakfast menu, chicken burger,
fish burgers, milkshakes and much more which can target every class , age of people .
Consumer needs and benefits- McDonalds provide all consumer needs what they want
like good sitting arrangement, healthy and fresh food. They also provide good customer
service, free wifi , activities to kids like painting, playing area to kids . Sort of these
things help to achieve marketing objectives.
Competition- KFC, Burger King and Subway are main competitors. McDonalds always
provide exceptional customer service , products , activities which make MacDonald’s
one step ahead from all competitors .
31

MARKETING STRATEGY AND PLAN
7.4
Status quo- Macdonald’s provides very good and quick services to customer .they provide large
variety of products which is of very good quality. After this they can add some mobile
application where you can place order from mobile, more takeaway options where you call in
stores and place your order then after that you can pick up like in pizza hut and dominos . that
will surely increase sales
Intense growth-for more growth of company they can start delivery system as pizza hut and
dominos do .some people don’t have car they can do delivery which can increase sales . (Kotler
et al., 2016).
Market Penetration- they offer reasonable price which makes a lot of difference in
business .they can start loyalty card for their customer like after purchasing 10th meal they get
10 percent discount on 10th meal which helps in increase of sale .
Market Development- they can develop their market very easily because of strong brand name,
they can open their branches in south part of New Zealand where there is less growth population
but its developing as well. Those can be developing through internet, newspaper, banners and
magazines. (Hutchinson et al., 2015).
Product Development- in this they can introduce new products like gluten free products , dairy
free product , vegan and some soft product who don’t have teeth to chew, by doing this their
sale can definitely go up . (Hollensen, 2015).
32

MARKETING STRATEGY AND PLAN
Diversification- is that when it opens there new branch in new continent or anywhere it always
should think about people first. What people like most. As in India people don’t eat pork and
beef so they don’t need to introduce products like them. So the main focus is on vegetables.
Integrated growth-we can increase sales by doing more sales with reasonable prices. We
choose those suppliers which helps less cost production through which we can save money and
do more sales with less price.
7.5
Mass marketing and distribution- MacDonald’s is a mass market brand as the product range is
affordable to the consumers. The fast food restaurant believes in mass market domination
(Christensen, Raynor & McDonald, 2015).
Product variety marketing- MacDonald’s offers wide variety of products to the customers so
that they can select the best option and pay the price. They only believe in keeping it simple and
able to deliver in a fast as well as efficient manner (Hansen, McDonald & Mitchell, 2013).
Differentiated target marketing- MacDonald’s differentiates their services as well as products
from their closest competitors. They had successfully used differentiated market segmentation
strategy at the time of targeting family unit as well as children with “Happy meal”. They mostly
targets children as audience as it even include families. They start delivery service and pick up
orders. and special offer to senior citizen’s which macca differentiated from others .
Concentrated target marketing- MacDonald’s never target niche segments as they only aims at
offering fast food at affordable rates. In this we consider senior citizen or old people, we know
they can’t eat spicy and heavy food we introduce light food option for them which keep them
healthy.
33

MARKETING STRATEGY AND PLAN
8.0 Forecasts
8.1 Sales Forecast of MacDonald’s
Here we explain revenue from last 2015 to 2017.the budget in 2015 is $45k which is increase in
year 2016 i.e. $50.In 2017 again budget is $50k. but in 2017 goes decrease because of launching
new products i.e. $7k and in 2016 that is more less by $5k .in Hr budget is $48k which remain
same for two year 015 to 016 and by the coming year in 017 it increase by more $50k.total
revenue in 2015 is $100k while in 016 is $103k but it decrease in year 017 which is $102k. in
last some of all total budget us $469004.
8.2 we can develop some plans or resources which can be use for marketing mix. like we can
introduce delivery system for that we need cars and to drive them we need more staff .and
after doing this weed to promote that we start delivery system as well , so we need to do
promotion which can be done by advertisement through social media , big banners , radio , TV
and some more channels . After this organization have to make proper research where delivery
34