Marketing Analysis: McDonald's Functions, Strategies, and Mix

This report provides a comprehensive marketing analysis of McDonald's, a multinational fast-food corporation. It begins with an introduction to marketing analysis and its importance for businesses, followed by an overview of McDonald's, its market position, and financial performance. The report then delves into the core marketing functions, including market research, planning, product design, standardization, pricing, selling, and branding. It examines how McDonald's utilizes the 7Ps of the marketing mix (product, price, place, promotion, people, process, and physical evidence) to achieve its objectives, emphasizing the importance of adapting to customer preferences and maintaining a competitive edge. The report also compares McDonald's marketing strategies with those of Burger King, highlighting differences in product offerings, pricing strategies, place of operations, and promotional techniques. The report concludes by summarizing key findings and insights into McDonald's marketing approach.

MARKETING
ESSENTIALS

Table of Contents
INTRODUCTION...........................................................................................................................3
P 1 ...............................................................................................................................................3
P 2................................................................................................................................................5
TASK 2............................................................................................................................................6
P 3................................................................................................................................................6
TASK 3............................................................................................................................................9
P 4................................................................................................................................................9
CONCLUSION .............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Marketing Analysis is basically the information obtained regarding the market in which
business is going to be operated. It helps managers in making businesses plan (Timofeeva,
2016). McDonald was founded in 15 may 1940. McDonald's is an multi national publicly owned
company operating in food industry. McDonald mainly deals in Hamburger and fast food
restaurant chain (Newswire, 2016). It has spreader in 36615 locations. McDonald is earning
revenue of US$ 25.413 billion and net income of US$4.529 billion. The team is of around
420,000 employees. Today, McDonald's is known for World largest market chain, serving
around 68 million customers daily in 119 countries. The market analysis of McDonald's assist in
providing Internal and external business forces as well as it helps manager of McDonald in
decision-making at various points such as decision of inventory, expansion and contraction of
work force, facility expansion etc. market analysis is done for individual industry but it turns in
to a global analysis of environment. It includes many quantitative and qualitative analysis such
as, SWOT analysis, PESTLE analysis etc. Market analysis will provide information regarding
targeted market, various market needs, market segmentation and target market (Market analysis,
2016).
P 1
Marketing function plays a significant role in any organisation.
Organisation such as McDonald's is a worldwide organisation and
marketing function assist them in identifying potential products for market
place. It helps in producing a market plan, promotion activities and product
development (Bradley, 2016). Collecting and Analysing market information – Collecting and
analysing information means performing a market research on target
customers. Gathering information such as needs of customer. This
function plays a vital role as it helps McDonald's manager in
identifying the taste and trend of their customers. It also helps
McDonald's manager decision making such as product price, quality
and size. Market research also helps manager in deciding the place
where product demand will be more, kind of advertisement attract the
target customers. It can be said that market research helps in

answering 4P's of marketing mix which includes product, price, place
and promotion. Marketing planning, product designing and development – marketing
planning is required when objective is regarding market. For example
McDonald's has an objective to increase his market share by 15%. For
achieving the target it is required to change product and promotion
strategy in order to increase market share and attract more
customers. Product designing also assist in achieving a related
objective (Bharambe, and Dharmadhikari, 2016). Product designing refer to
change in design of product so that customers gets attracted. To
increase market share McDonald's requires to bring competitors
customers to his side. This would require an attractive product than
his competitor or McDonald's need to develop his product quality,
quantity or price such that customers feels more beneficial to buy
your product. This function of marketing helps in achieving the
objective of McDonald's (Tripathy, 2016). Standardisation and Grading – standardisation and grading helps in
setting standard of the product such as size, weight, colour, raw
material used, design etc. this will help McDonald's manager in
deciding the peculiarities of their product (Park and Kim, 2016). Secondly,
grading it refers to classifying a product category as per the
characteristics. Similar products will be placed in same category. For
example there are variety of burgers will be in same category name
such as 'burger'' or all soft drinks having same characters will be
categorised under single name. This function helps managers of
McDonald's in decision making regarding product line, varieties of
product offering etc. Pricing and selling - Pricing refer the price at which product is
offered in market. Price is known as second P of marketing. Price of
product plays an important role in marketing as this is the first
characteristics that most of the customer uses to take decision. Price

should be decided which customer gets ready to pay and he feels
satisfied. The quality of product should be as per the setted price. As
now a days customers have become rational and of they will found a
more reasonable price of competitor than McDonald's then they will
get shift over their (Khaeheianj, 2016). Selling and pricing are
interdependent on each other and so it plays an important role in
marketing function.
 Packaging, labelling and branding – packaging aims to assist
customer in lifting or handling and conveying of the product.
McDonald's manager has taken a due care about packaging, he aims
at avoiding breakage and damage during transit. Packaging materials
includes plastic bags, containers, tin etc. so this function plays a very
important as now-a-days customer demands conveyance. They want
extra facilities other than product (12 Important Functions of
Marketing, 2016).
P 2
The above roles and responsibility considered very important role within the
organization. It will helpful to McDonald's to achieve their goals in systematic manner. In this
context, marketing information considered by business through they can identify their potential
customers in different areas (Krstic, Radivojevic and Stanisic, 2016). As results, they will able to
make their profits very high. Further, with the help of standardisation cited firm can easily
maintain their cooperation with customers so that it play significant role within the business
performances. In addition to this, effective pricing and selling considered effective performance
within the firm which make positive outcomes in the firm. It will assist to make positive results
through organizational can easily enhance their operations.
TASK 2
P 3
In order to achieve organizational objective, proper management require for McDonald's
through they can achieve their targets. In marketing mix of the company considered 7ps which
involve various approaches that can be meet with different market aspects all over the world. It
defines as the strategies and tactics which use by cited firm to reach the targets customers (Adler,

Yeh, H and Nguyen, 2016). It contains various elements which determine as company system
which help to achieve marketing objectives. It leading with burger chain across India offering the
tastiest burger and French fries. Product: McDonald's is emphasized on developing menu which customers wants. In
respect to this, they demonstrate market research which exactly make picture of company
products. As compare to this, customers preferences changed day by day. For meet with
customers requirements cited firm introduced their new products with replace existing.
They make their products which satisfy customers demand and according to customers
choice. Hence, it will helpful to enhance sales of the firm and make high profits within
the environment (Campanella, Mustilli and D’Angelo, 2016.). Price: Customers perception is very important for making high quality products and
services. In respect to this, McDonald's demonstrate their pricing strategy accordingly.
When they are use low price for their products, customers feel that quality is being
compromised. Apart from this, if the business charge high price, it will generate negative
impact on the company operations as customers feel that products are too costly. Thus,
chosen enterprise have to demonstrate their brand through making right pricing strategy
for products (Joseph, 2016). When they are decides price, they have to concentrate on
brand of the products and services. Place: Place is the marketing element through customers access products and service
from the enterprise. McDonald's not only considered physical locations as they are use
online system as well. It emphasized on range of process which involve and brings
products for end users. Cited firm use very extensively outlet through they can spread
products in the marketplace (Campanella, Mustilli and D’Angelo, 2016). They are
ensures that place are convenience for consumers so that they can make loyalty towards
them. As results, they will able to achieve their objectives easily. Promotion: With the help of promotion, McDonald's can achieve their objectives through
making high quality of products and services. They have various types of promotion
techniques which help them to make their profits very high level. In addition to this, they
can make their effective results through the promotion. Hence, chosen business support
the business functions which help to encourage people towards the business products. In

this context, they can use advertisement, sales promotion, magazines and various things
for their enterprise (Timofeeva, 2016). People: Employees of McDonald's are very friendly in nature so that they easily attract
customers. In addition to this, they are specially focuses on promote the services so that
company can achieve desired outcomes easily. In respect to this, organization give proper
training and development for their customers so that they are able to make effective
services towards the customers. When cited firm able to demonstrate their services in
effective manner, they will able to make their profits at high level. Process: Food manufacturing process completely transparent in the cited firm. In respect
to this, whole process is visible for their consumers (Adler, Yeh, H and Nguyen, 2016).
In respect to this, customers point of view is very important for McDonald's for operating
their in different areas of the nation. They need to check all the resources which they used
for making products. As results, it will make loyalty towards the customers so that
business can easily make their profits high level. Further, McDonald's allow to their
customers to taking place in checking their material.
 Physical evidence: McDonald's mainly focus on clean and hygiene interiors of the
company outlets. They use only those interiors which attract to customers so that they can
make high profits from the business operations (Khajeheian, 2016). In respect to this,
they can easily demonstrate their food products which make high sales within the
business environment. As results, business can maintain their decorum towards their
activities and actions within the business.
In order to demonstrate McDonald's objectives through marketing mix, Burger king is
applying strategies in which they are dealing for promoting their products and services. In this
context, comparison of the marketing mix as follows: Product: Burger king has different aspects in which they are demonstrates their products
to satisfy customers demand. They use to considering their products promotion by
themselves (Joseph, 2016). They open their store for developing their menu including
hamburgers, desserts and French fries. In addition to this, they are also offers milk shakes
and soft drinks, etc. After 1957 they are launched their product Whopper sandwich in
their previous menu. Then they spread their sandwich line through making variety of

products in it. In this they launch, mushroom sandwich and double whopper and many
more things in their menu. Price:Burger king use competitive price because in the marketplace competition is very
high as like McDonald's. They are monitoring and evaluating their pricing policy so that
customers can feel positively within the organization (Campanella, Mustilli and
D’Angelo, 2016). As the different types of customers group, who have different income
criteria, business demonstrate their products price accordingly. They determine high price
so that customers not feel that products are not in quality. Similarly, they access their
price as low as possible so that customers can willingly pay. Thus, they use competition
pricing policy through they can make high profits from the various operations. Place: Burger king make their operations in various parts of global market. It has more
than 79 countries where they are operating different outlets for promoting their products
(Weldehawariat and Singla, 2016). As compare to McDonald's, Burger king make their
operations in three types of segmentations in which they established plan of the company
through using different franchising. In this context, business use particular region for
make franchising their products and services in different area of the world. As results,
they can make their targets with dealing in make arrangement of the enterprise
operations. The company also make their place in term of mobile app and websites. Promotion: In order to make promotion for the products, they used different types of
methods through they can make brand image of their goods (Nguyen and Simkin, 2012).
In respect to this, they use strategies which are related to menu such as advertisement,
new agencies and new concept of restaurants. Hence, various advertisement shows in
print media, which make popularity for the development of their products. Process: Burger king strategy make their focus on customer segmentations which spend
more money in the restaurants. Most of the young generation come to visit the company
place for development of the company products. In recent time, they are concentrating on
entering new strategic markets (Wirtz, Tuzovic and G. Kuppelwieser, 2014). The
business promote their products through adding more 400 new restaurants in the area.
However, McDonald's give opportunities to their customers to take participation in
company operations through their observations. In this, customers check material which
they used to make products.

 Physical evidence: Burger king make their physical evidence through reinvesting their
image through changes in its decorum. In respect to this, they are based on internet
present such as BK.com. This site provide company information such as video, press
release and their stock information (Bharambe and Dharmadhikari, 2016). As compare to
this, McDonald's use physical interiors in which they can make their products very high
through making them attractive.
 People: In order to make the product of Burger king they demonstrate their services to
make effective services by employees. In respect to this, they facilitate their products and
services according to customers order. After taking order from customers, business serve
their products in queue.
TASK 3
P 4
Marketing plan is a document of blue print that outline or company advertisement and
their operations (Khajeheian, 2016). It will demonstrate that what things should be cover by
enterprise in upcoming years. It also determines company activities to accomplishing marketing
objectives within the time frame. In order to make marketing plan of McDonald's following
elements can be considered within the firm:
 Current market analysis: In respect to this, business analysis market size in which cited
firm find features for developing products and services (Park and Kim, 2016). In this
context, they find that fast food restaurants have common menu in which business can
make their solutions with providing no wait to staff members and customers are not
paying before eating. Thus, they demonstrate quick services restaurants which determine
main type of fast food such as burger, sandwich pizza and Mexican food, etc.
 Competition: Major competition in the local market is KFC, pizza hut, Mr. burger and
Hardees. Products that are sell by McDonald's that are similar as KFC and they also make
substitute products as cited firm sell. In respect to chosen enterprise analysis competitors
strength and weaknesses (Timofeeva, 2016). Following table considered strength and
weaknesses KFC and Pizza hut:
KFC
Strength Weaknesses

 High reputation
 Experienced company
 Friendly environment considering
 Loyal customers
 Low advertisement
 Lack of corporate directions
 Health concern
Pizza hut
Strength Weaknesses
 High brand name
 Hygiene (Krstic, Radivojevic and
Stanisic, 2016).
 Customized products
 Convenience towards the customers
 High price for products
 High turnover
 Major conflicts situations
From the table McDonald's found that competitors has high position in the market due to
effective services by their effective marketing plan. In respect to this, they analysis their
customers who buy company products (Newswire, 2016). Thus, different types of customers take
place within the company such as students, children, family, and teenagers students. They
demonstrate age criteria for developing their products such as 15 to 55+ age of people. In
addition to this, they determine family size such as 1-2, 3-4 and 5-6 members. Marketing plan for segmentation: In order to considered market plan strategies,
McDonald's considered STP criteria. In this context, they make segmentations bases in
which company use demographic, geographic, psycho graphic and behavioural
segmentations (Joseph, 2016). In demographic bases the cited firm demonstrate their
products according to normal size who have four to five members who are belongs to
upper and middle class. Chosen business can offer different types of meal for youngster
and teenage students such as coffee, ice cream and milk shakes. They demonstrate
effective packaged system for small parties and celebration which are highly affordable
for upper and middle class. On the other hand, the company major operate their outlets
more than 9 outlets in single city. In respect to this, in geographic segmentations they

target in big cities because big cities are mostly outgoing and social. In order to make
segmentation criteria on the basis of psycho graphic cited firm demonstrate their plan for
all types of people such as middle, lower and uppers (Khan and Adil, 2013). This is
because, every customers posses their offers in different types of menu such as burgers,
drinks and desert. In addition to this, they are also providing entertainment and
socializing at the place so that customers can easily access their services. Apart from this,
it behavioural segmentation McDonald's divide their customers in different types of
buyers on the basis of their knowledge, attitude, users or many other respondents for their
products. On the occasion time they are also provides various offers to their customers
like valentine day and mother's day etc. Marketing plan for target: There are different types of target market approaches
available which can be used by the McDonald's. In respect to this, they should use
differentiated marketing which make successful operations within the environment. It can
be uses to demonstrate targeting the family unit and particular children with happy meals
and price. This strategy is also known as multi segment marketing which appeals to two
different types of market segments (Weldehawariat and Singla, 2016). In this context,
business can use different marketing plan for each criteria. It creates more sales within
the enterprise but it is also creates adverse effect because high cost occur due to this
strategy. In addition to this, market positioning considered by cited firm in which cited
firm continues provide value for their products at same lower level. The business make
their products at affordable price with high value offers. Marketing goals with strategy product: In respect to this, different types of level
considered with core benefits such as hygienic, perfect calorie match and good taste.
Actual product is design and make through its brand name (Braslow, 2015). In the
product feature they are providing vast variety of food and beverages. In this context,
product considered good attributes such as providing Hygienic food and environment.
With sophisticated dining place. They are providing drive throughout for take away
orders. In addition to this, they are also providing play area for kids and arrangement for
parties and celebration. The organization has very effective brand image through they
gain rank on fortune magazine. Company is meet with the largest food chain of the

world. There packaging style is designed to keep food hot and convenient (Arguello,
2013). They are gone as green and very few uses of plastic in their packaging. Marketing price strategy: Pricing objective of McDonald's has the highest market share.
In respect to this, they use penetration pricing strategy in which company use the lowest
price due to sensitive price. They determine their pricing in term of customer, their value,
price, cost and product. Marketing distribution strategy: Various countries McDonald's sell their products in
different stores. For this, they use different types distribution channels such as franchising
organization through they can operate their functions in systematic manner (Nguyen and
Simkin, 2012). Effective distribution channel help to McDonald's to develop strong
market share in fast food market around the world. It has pre-determine locations for its
many stores which help to reach in diverse population.
 Marketing promotion strategy: McDonald's promotional goals are made to stimulate
purchase their products and maintain positive image through they can attract customers
easily. In this context they are use online display Ads, average frequency, newspapers
and fun, leisure which is based on effective theme. In addition to this, they are also made
their sales requirements through identify with company products. In addition to this, their
requirements also considered company products through they can know about their
customers and competitors (Wirtz, Tuzovic and Kuppelwieser, 2014). For promoting
company products, cited firm use prospecting pre approach and presentation through
enterprise can design sales force strategy and structure. In this context, they can also
evaluate sales people who make company sales very high. With the help of sales
promotion, the cited firm deal with price of their products. Along with this, they are also
made public relation which support the community for learning more about cooperation
and healthy lifestyle. The company is also using direct marketing techniques which
considered effective solutions for business.
CONCLUSION
From the above report it can be concluded that, cited firm has different role and
responsibilities towards the business objectives. In respect to this, they are collecting and
analysing marketing information through they can find customers needs and their requirements
through company products. Furthermore, it also summarizing that business use different aspects