Marketing Report on McDonald's: Marketing Mix and Plan Analysis

This report provides a comprehensive analysis of McDonald's marketing strategies. It begins with an introduction to marketing, emphasizing the company's history and global presence. The report then delves into the key roles and responsibilities of the marketing function, including market research, pricing, financing, promotion, product management, distribution, and selling. It further explores the interrelationship between the marketing department and other departments within the organization, such as human resources, finance, research and development, and production. A comparative analysis of the marketing mix of McDonald's and Burger King is presented, highlighting differences in product, price, and place strategies. Finally, the report outlines McDonald's marketing plan, concluding with a summary of the key findings and insights.

Marketing Essentials

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1. Key roles and responsibilities of marketing function.......................................................3
P2. Interrelationship of marketing unit with different department of organisations..............5
TASK 2............................................................................................................................................7
P3. Comparison between the marketing mix of two organisations........................................7
TASK 3............................................................................................................................................8
P4. Marketing plan of McDonald...........................................................................................8
CONCLUSION .............................................................................................................................11
REFERENCES..............................................................................................................................12
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INTRODUCTION
Marketing is the process of producing, promoting, and delivering the products and
services to the customers. This is the activity or set of instructions which processes to create,
communicate, deliver and exchange the offerings that have value for the customers and society.
The present report is about McDonald, which is an American fast food company, profound on 15
April, 1955 by Ray Kroc. The company offers the world delicious supreme quality food which is
best in class service and convenience (Baker and Magnini, 2016) . This is the second-largest fast
food Restaurant. This report will emphasizes on the roles and duties of marketing functions. In
addition with the interrelations between marketing department and other function is also going to
be discussed in the following report. At last the report get ended by describing the marketing mix
and marketing plan of the organisation.
TASK 1
P1. Key roles and responsibilities of marketing function
Marketing plays the crucial role to buy the good and services to influence the targeted
market. There are different marketing functions that support to utilise the product according to
the need and demands of customers. The roles and responsibilities of a marketing manager of Mc
Donald are as follows -
1. Marketing Information management : This is the major role of marketing department
which is also known as market research. In this, the marketing manager conduct the
research in order to get the information about the needs and requirement of customers.
After having and conducting research the company make strategies or tactics from the
information which is collected (Campbell, Martin and Fabos, 2018) . This strategies or
plan of action helps the company in the betterment of their business and to achieve the
competitive advantage in the market. The manager of McDonald conducted the research
in order to ascertain the changing needs of customers and find out the strategies used by
their rivals, so that they make their product unique from other products of its competitors.
2. Pricing : This is the role which is related to the monetary terms, this is the price or cost
which is paid by the buyer or customer on the purchasing of the products o9f McDonald.
The company should always fix those price which is affordable by each customer. As

McDonald is the largest food restaurant, then also they prefer to fix their product price at
moderate rate, so that their each customer can easily able to buy it.
3. Financing : This department has the role to provide funds for the performing the
business and marketing activities effectively, so that proper utilisation money can be
made. The r_1552394737 (1)ole of marketing department is to interact with the finance
department, in order to achieve the funds for the utilisation of marketing activities
(Cavusgil and et. al., 2014) . The manager of McDonald is prepare the cash flow
statement to estimate the funds spent to perform the business activities.
4. Promotion : This function is used to promote the products and gain the attention of large
number of customers. In this the major role of marketing department is to render the
accurate information to the customers about their products, so that more and more buyers
can buy the product of McDonald. Currently McDonald is using number of promotional
activities such as Advertisement, mouth publishing, etc., to enhance the growth of their
business.
5. Product and service management : This is the function where major role of marketing
department is to decide what product they are going to sell, when it is to be sell, where
they are going to sell it, and how to sell that product, so that they can easily supply their
goods and services to lots of customers. In this the manager of marketing department
plays the role of , improving, developing and managing the marketing mix of the product
as per the demand of the customers. The chosen organisation pay attention on
maintaining the demand of their product by bringing changes according to the
requirement of the buyers.
6. Distribution : This is the method in which the products and services should be deliver to
the potential customers in effective time frame. This is the responsibility of the marketing
department to ensure that the goods and services is delivered to their customers or not.
The main role of marketing department is to manage the supply chain of the firm in order
to ensure the delivery on time. McDonald is the well known brand which is famous for its
burger, its physical evidence is good, the products of McDonald are easily available to
the peoples (Hair and et. al., 2015) .
7. Selling : This is the complementary service of the organisation, in which marketing
department assist to produce and build awareness about the products which support sales

representatives to sell more products of the company. This is the role of marketing
department to ensure that the products must be available to the customers easily. The
marketing manager of McDonald always focus to keep their stock always available to
their distributors, so that each buyer get the product of their choice.
P2. Interrelationship of marketing unit with different department of organisations
Marketing is the process of attracting huge number of customers in order to enhance the
sale of their products. McDonald can do marketing of their products by advertisement, selling
and delivering the products to customers by satisfying their needs. Marketing is essential for the
company for achieving the success in business. The marketing activities are impossible to
perform because all the functional activities are interconnected with each other. There are some
points which describe the interrelation between the marketing function and other function
department of McDonald. These are as follows -
1. Marketing and Human-Resources department : The major role of human-resources
department is to recruit the right person for the right job in order to attain the desired
business goals effectively on time. This is crucial that marketing department should
interact with the human-resources department to create a high skilled workforce that
assist in achieving the success of the organisation (Kladou and et. al., 2016) . The
marketing department of McDonald communicate the HR department about their vacant
position, so that the HR manager of the company can recruit the appropriate candidates
for marketing department so that the sale of the company can be increase.
2. Marketing and Finance department : This department has the work to audit, plan,
manage the funds of the company. The manager of this department fulfil the demands of
other department which is related to the fund, so that the marketing and business
activities can be performed effectively. To gain the attention of huge customers,
McDonald uses promotional activities and for that they require fund to perform that
activities effectively. So it is important for the marketing department to interact and
communicate with finance department in order to fulfil their financial need and get
adequate fund on time (Lane, 2015) . The managers of McDonald communicate about
promotional activities with financial department in order to get the fund which is required
for each activity. By this the marketing department of McDonald can be able to achieve
their target effectively.

3. Marketing and Research & Development department – Research and development
department has the role to conduct the research to know the needs and requirement of
customers and also get the information about how much competition is their in the
market. This information helps the marketing department to make the effective plan of
action so that they can fulfil the need and desire of their buyers and can gain the customer
satisfaction and remain competitive in market. Hence, it is very necessary for marketing
department to communicate with R&D department in order to collect information related
to target market (Malhotra, 2015) . The marketing manager of McDonald communicate
with R&D department in order to ascertain the demand of customers and adopt the tactics
for attracting large number of customers or buyers.
4. Marketing and Production department – This department has the role to manufacture
product or services according to the requirement of customers. This department helps
planning the marketing activities in order to gain the attention of pool number of buyers
towards their company's product or services. So it is important for the marketing manager
to interact and communicate with production department in order to understand the
benefits of the products which company is offering to their customers. The production
department helps the company in promotional activities which is the main reason behind
its success and leadership in market. This is the reason marketing manager communicate
with production department for developing its promotional plan. This help them in
transferring their message to customers effectively which contribute in the success of the
company.
From the above points it is very cleared that interconnection between marketing and other
functional department is very important as it support in providing funds for performing activities
effectively. Also these departments are used in getting and collecting required information about
the customers and the competitive market. Along with this, it also helps in developing tactics or
strategies that contribute towards the achievement of goals and set of objectives, also in
achieving competitive advantage in market by ensuring high performance at workplace (Pappas,
2017) .

TASK 2
P3. Comparison between the marketing mix of two organisations
Marketing mix can be defined as the set of activities which are used by any organisation
for promotion of its brand at marketplace. Strategies and plans are formulated in companies for
giving a good service to people and attracting the target customers. The market planning process
of the company is responsible for formulation of different strategies and planning (Pike, 2015) .
For achieving success in the company it is important to use marketing mix. The implication of
marketing mix of every organisation is different as they have pre determined objectives and
goals.
Basis McDonald's Burger King
Product
Mc Donald's is an American fast
food company established in 1940
in California, USA. It offers fast
food items in many countries.
It is an American global chain of
hamburger. Burger king was
started in 1953 and it is
headquartered in Miami-Dade
County, Florida. The product is
almost similar to Mc Donald's they
are offering same product into
competitive market place.
Price
The price of the product differ
from each other. Herein,
McDonald uses different pricing
strategy for offering products and
services. McDonald sells it's
products at reasonable prices in all
over the world. They also have
drive through services and stores
in almost every crowded place to
reach target customers.
Increase in price of burgers offered
in this restaurant does not have
any impact on consumers. As the
products served by them have
good quality (Pike, 2016) .
Moreover, price also depends upon
the quality of product a respective
organisation is offering to its
potential customer's. In this
manner an organisation will able
to achieve its gaols in an effective
manner.

Place
McDonald stores are available in
almost every country. They are
present in every city. It offers
services and product in developing
countries. It offers 69 million
customers in around 100 countries.
Herein, with high number of
stores an outlets an organisation is
able to acquire high market share
as well as achieving success in
competitive market place.
This organisation is present in
more than 15000 countries. Burger
king offers qualified burgers and
hence it has a huge number of
loyal customers.
Promotion
Promotion of McDonald in done
by using pamphlets, newspaper
advertisements, online
advertisements, word of mouth
advertising, etc. With the help of
such promotion activities an
organisation are creating
awareness in mind of the
customer's. By creating awareness
an organisation can attract large of
customer's towards their product
and thus,. It will also help them to
fulfil their motive for which they
have started their business.
The unique strategy of burger king
is to offer it's product with
discounts, special combos, and
exciting prices (Purvis, 2015).
Moreover, a respective
organisation can also acquire
same process to explore their
product fracture so that they can
have high number of customer
towards their product.
Process McDonald adopts new innovation
and technology in building trust
Burger King takes special care of
offering new items and spices in

and loyalty with their customers.If
an organisation is able to maintain
their employees than an
organisation will able to attain its
gaols in an effective manner.
Moreover, employees are termed
as assets of an organisation.
their burgers to attract consumers
towards their service and products.
Eventually, in this organisation the
process of managing people is
almost similar that will have they
to full their main motive and attain
large number of market share in
competitive edge.
Physical Evidence
Company maintain their physical
evidence through adopting proper
cleanness in their stores. Herein,
physical evidence play's an
effective role as from it people get
more attracted towards store if
they fund it attractive and health.
For such purpose an organisation
can attain its gaols in an effective
manner.
Burger king has attractive interiors
and décor which gives people a
pleasant environment to sit and
eat. In this case a respective
organisation can also same
physical procedure in attain its
main motive in competitive market
place.
People
Employees are treated as an
important resource of the
company. They provide qualified
employees who are responsible for
providing good services to people.
With such purpose a respective
organisation can fulfil their gaols
in market place of same industry
line.
Burger king gives attention to their
customers. Their main aim is to
keep them happy and satisfied.
From the above marketing mix it is said that McDonald and Burger king offers service to
people across the globe. The main motive of both fast food chain companies is to provide

satisfaction to customers. But both organisations follow different strategies and plans to
overcome the problems and be loyal to people.
TASK 3
P4. Marketing plan of McDonald.
A marketing plan is a written document or report which includes all the marketing tactics
and strategies which company will perform in the upcoming year (Rancati, Gordini and
Capatina, 2016) . In today's competitive market company should analyse customer's taste and
preference to maintain the sustainability at market place. This document includes all the actions
taken by the organization in order to execute their pre determine marketing strategy. It is not a
permanent or static document, as the business grow new and latest marketing strategies should
be develop by Mc Donald's. Some important steps which is included in the marketing strategy of
the company:
 Company overview : McDonald's is an American based fast food company, which is
one of the largest restaurant chain across the world. It is best known for its french fries,
hamburgers and cheeseburgers. On an average company serves almost 69 million
customer in more than 120 countries.
 Vision & mission : Its vision is to push the company while working together to achieve
the set objectives and growth. Its mission is to be customers favourite place to eat and
drink by providing them healthy and comfortable environment. Objective : McDonald's objective is to expand its current product line by launching new
products. Company should adopt SMART objective which helps them to achieve success
and market share. This can be achieved with the help of launching new products which is
realistic, measurable, time bound and specific.
STP approach - STP model helps the marketers to trade their messaging, develop, and deliver
relevant content which target their customers. In this model, there are three elements segmented,
targeted, positioned, which are describe as follows -
1. Segmentation - Segmentation is describe as the process of making segments by dividing
the groups according to uniformity in their taste and preferences. This help in utilizing
marketing efforts on customers according to their requirement and needs (Scarborough,

2016) . McDonald is segmenting their customers in two classes, in which one is
demographic and another is geographic.
2. Targeting – This is the process in which after segmenting,, the company target their
goals, in which they can target their audience according to their age, gender, etc. This
breaks the market into segments and then focus on entire marketing efforts over that
group. McDonald is use to target the teenagers as the adults are very fond of fast food,
and they love burger, for which McDonald is famous for.
3. Positioning – This process is now used to attract large number of customers in order to
position their brand image in the market. By this they can position the image of their
product in mind of customers which can be done by the help of promotion and
advertisement. McDonald position itself as a best accompaniment for burger lovers.
Effectiveness of STP model: The effectiveness of STP model is that from this an
organisation will able to know what are it actual target group and its potential customers in
competitive market place.
Ineffectiveness of STP model: Of this model is not applied in a proper manner than an
organisation will not able to survive in competitive market place. From this an organisation have
known weather is product will be success or not in market place whether they are offering their
product and services.
SWOT Analysis - This is an analytical tool which is used by a company in order to identify the
internal problems of the organisation in the way of its strength and opportunities that helps to
achieve the goals and objectives and also support in achieving higher success at market (Zolkifly
and Baharom, 2016) . On the other hand, it also identifies weaknesses and threats that a company
require to work over in order to improve their performance and position in the market. Here is
the SWOT analysis of McDonald , which is described as below -
Strength : McDonald has successfully added
some of the new items in their menu, to expand
the choices in the menu such as Angus burgers,
coffees, smoothies, etc. McDonald operations
are spreaded in all over the world, hence it is
not exposed to just one economy. The
Weaknesses : One of the major weakness of
McDonald is decrement in their market share.
McDonald is having very weak development of
product. The taste and quality of their products
is comparability low than Burger king as they
believe in servicing fast to their customers. The

company has its approx 42% of fast food
hamburger business in US.
revenue and income growth of McDonald is
very low.
Opportunities : McDonald has the
opportunity to expand more their business
globally. Also they can expand their business
in emerging market of India and China.
McDonald also has the opportunity to innovate
their menu as they are limited only by
imagination (SWOT analysis of McDonald,
1995-2019) .
Threat : The major threat of McDonald is that,
they are facing competition from strong and
powerful peers such as burger king and Yum
Brands. Along with this, government is also
considering rules and regulations targeting fast
food. Also there are many health conscious
people, which are avoiding fast food, so this
can also reduce the sale of McDonald.
Effectiveness: The effectiveness of SWOT analysis is that from this framework an
organisation can know what are its strength that create a unique identity from its competitors.
Apart from this it will help to know the weaknesses where as organisation is lacking behind and
need to improve. It will also help an organisation to come up with more opportunities in
competitive by reducing the harmful effects.
Ineffectiveness: Ineffectiveness of this factors is the this is long and time consuming
process . Though it is effective in nature but an organisation needs to do it appropriate so that
they can have an effective result.
Situational Analysis- This analysis refers to the gathering of methods an d tools that are used by
the mangers to monitor the internal and external environment of a company to understand the
organisation's capabilities, customers and business environment. McDonald's is one of the most
recognizable organisation in the world and operating its business in more than 120 nations. For
instant, the firm facing an issues related to to the declining performance in the areas of customer
service, employee turnover and order processing time. So this situation affect the internal and
external environment of the organisation in term of increased competition, poor management and
marketing.
Effectiveness- The effectiveness of this analysis is that with the help of this analysis the
management of the company can easily monitor the problems and trying to manage them in
limited period of time.

Ineffectiveness- The effectiveness of this framework is that it consume time and the
nature of this analysis is effective but the management required to complete this process in
effective manner so that they can get effective output.
Budget - This is the process of evaluating and ascertaining the actual amount which is required
by the company in order to perform the marketing and business activities effectively. Following
table shows the budget plan of McDonald :
MARKETING BUDGET
PARTICULARS I Year II Year III Year IV Year V Year
Initial amount 3000 7500 11500 15660 15540
Investing 8500 9000 20000 28000 13500
TOTAL 11500 16500 31500 18460 29040
MARKETING OUTLAY
Promotion 5000 2850 3050 3560 3000
Sales advertisements 2000 1800 3000 1500 1100
Direct selling 3500 1600 4500 2500 4600
TOTAL 10500 6250 10550 7560 8700
From the above budget statement, it is evaluated that to perform all business activities
effectively in order to promote or launch its new product i.e. 'Mc Sandwich', company requires to
invest approx 15000£, and 7700£ on promotional activities (Smith, 2014) .
CONCLUSION
From the above mentioned report, it has been concluded that marketing refers as set of
activities that focuses on communicating and delivering the product or services to customer for
satisfying their needs and want. Along with this, various roles and responsibilities of different

marketing functions as been explained as this helps in creating consciousness about the
company's product in market that further support in increasing the volume of sale. In addition
with this Interrelationship of marketing department is necessary with other department of
organisations as they cannot be performed alone they are required to coordinate and
communicate with different departments of organisation in order to achieve positive results.
Apart from this marketing mix of chosen organisation with their rivals is done for the success of
the company. At last, the marketing plan includes all the business strategies which is to be
performed by the company in the future to attain their desired goals.

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Online
SWOT analysis of McDonald. 1995-2019. [Online] Available
through<https://www.fool.com/investing/general/2010/08/25/mcdonalds-strengths-weaknesses-
opportunities-threa.aspx>./