Marketing Essentials Report: McDonald's Marketing Strategy Analysis

This report provides a comprehensive analysis of McDonald's marketing essentials. It begins with an introduction to marketing concepts and current trends, specifically within the fast-food industry, focusing on McDonald's. The report then examines the marketing process, including mission, situational analysis, strategy, and the marketing mix (7Ps). It details the roles and responsibilities of a marketing manager within McDonald's, emphasizing interdepartmental relationships with finance, operations, and human resources. A comparative analysis of McDonald's and Subway's marketing mixes is presented, particularly focusing on product, price, place, promotion, people, process, and physical evidence. The report evaluates the importance of marketing and its influence on organizational success, culminating in conclusions regarding effective interrelationships between different functional departments and a well-structured marketing plan for product development. Finally, it includes a detailed comparison of marketing mix strategies with Subway, offering insights into competitive positioning and market dynamics.

Marketing Essentials

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK 1 ...........................................................................................................................................3
No.1 Concept of marketing and its current trends for the chosen organisation....................3
No.2 Overview of different marketing process......................................................................4
No.3 Roles and responsibilities of the marketing manager: ..................................................4
No.4 How marketing interrelates with other functional departments of the organisation....5
No.5 Values and importance of the marketing role in the context of the organisation.........6
No.6 Conclusions for effective interrelationships between different functional departments.6
TASK 2 ...........................................................................................................................................6
No.7 Comparison of marketing mix with other organisation ...............................................6
TASK 3 ...........................................................................................................................................9
No.8 Evaluation of the well structured marketing plan .........................................................9
CONCLUSION .............................................................................................................................13
REFERENCES .............................................................................................................................14
.........................................................................................................................................................1

INTRODUCTION
Marketing and its essentials are considered as necessities in the functioning of an
organisation Marketing is the process of understanding the wants of the customers and convert
their wants into the actual value generation. Technology and social media are two aspects which
are trending now a days(Muller, 2017). This report will be carried on McDonald's which is the
leading fast food chain and restaurants which provides food services such as Hamburger,
sandwich, burger, drinks, desserts etc. to their customer. The report will put focus on analysing
the current trends, marketing process and roles and responsibilities of the marketing manager. It
will also tells about the relationship of marketing with other functional unit of organisation. This
will put emphasized on the preparation of the marketing plan for the product development and
expansion of the business.
TASK 1
No.1 Concept of marketing and its current trends for the chosen organisation
The concept of marketing is considered as the wide theory with broad understanding of
the actual scenario of the market. According to American Marketing Association, “Marketing is
an activity, set of institutions and process for creating, delivering and communicating offerings
which creates value sand results for clients, customers, society and others”. There are various
marketing concepts are as follow:
Marketing concepts: This concept is the philosophy that firms should analyse the needs
of their customers and then make decision to satisfy those needs, better than the competition. It
involves Segmenting, targeting and positioning along with usage of several marketing mix such
as pricing, product, promotion etc.
Selling concept: Selling concepts proposes that customers, be an individual or business
firms will not buy enough of the organisation's products unless they are persuaded to do through
their selling efforts.
Product concept: It is an understanding of the dynamics of the product in order to show
the best qualities and maximum features of the product. Marketers spends their maximum time
along with with research in order to target their actual audience.
Now-a-days, there are various current aspects which are trending in the present in context
with marketing. The following trends are belongs to the future of marketing are as follows:

Technology: Various sectors such as Ed-tech and It has become scope for raising and
employment generation now a days. Technological marketing has raised level of satisfaction of
the customer using feedback and post evaluation after purchasing and selling of goods and
services.
Social media: For marketing purpose, social media has now become easy for targeting
the customers online as well as offline. Companies can target the customer via Facebook,
Instagram, Twitter etc. to invite customer to buy different types of products both online as well
as offline(Raymond, 2015).
No.2 Overview of different marketing process
In context with McDonald's, there is a requirement of brief marketing process for the
expansion of the business which is as follows:
Mission: In this stage, top management of McDonald's needs to specify their mission and
vision statement to define the goals or objectives of the company. The mission statement will put
concern over the continuous improvement in the products or services of the company.
Situational analysis: In this next step, main focus of an organisation lies on the growth
and opportunity analysis by doing the PEST and SWOT analysis.
` Marketing strategy: In this third step, top management of the McDonald's targets their
audience primarily and decides the goals or objectives in order to develop budget and cost
certainty for the overall period.
Marketing mix: After formulation of the marketing strategies, next process here is
deciding the price, place, promotion, promotion and product development etc.
Implementation and controlling: After the deciding the marketing mix, it is the foremost
task to control all the activities relating to all the activities regarding the product as well as
market development.
No.3 Roles and responsibilities of the marketing manager:
In context with McDonald's, marketing manager is one who control and manages the
marketing resources to plan and build particular products or services. He may be responsible for
one product or multiple products. There are various function and responsibilities of the
marketing managers are as follows:

Assisting top level management: The main role of the marketing manager is to work and
collaborate with the top management to accomplish its well-defined and structured goals &
targets. Its major task is to assist with top level management to decides and plan the course of
action for effectively conducting the marketing functions correctly and effectively.
Identify the potential market: The major roles & responsibilities of the marketing
manager is to create and ascertain actual demand of their business products and services and
also, its the major duty of marketing managerial person to identify the actual potential and
healthy market for the McDonald's products or services.
Evaluate the product: It is the major defined job and duty of McDonald's marketing
manager to conduct several activities regarding the post-evaluation of their fast food product
such as taking feedback, survey from the customer after the selling of goods or services for
optimised quality of their products or services (Iyer, 2012).
Ensure timely delivery: In context with McDonald's, the prime and foremost role of the
marketing manager is to deliver their fast food products to its actual customer's by applying the
workforce or manpower with the right skills and talent.
No.4 How marketing interrelates with other functional departments of the organisation
In context with McDonald's, Interrelation between marketing with finance, operations,
human resource etc. plays an important role in development of an organisation. If there is
favourable and effective relation between each department of an organisation, it will be
beneficial for the company to achieve their planned and decided goals and targets customers in
an easy manner. Relation of marketing with other departments of an organisation are as follow:
Marketing: It is most functional department of every organisation, with major focus is on
promoting and selling the products or services of the business entities, The concepts of
marketing function is wide, with its relationship with other departments of company. Its has to be
work with human resource, finance, operation, R&D etc.
Marketing with Human resource: The major task of the HR Dept. is to hire most
appropriate and adequate workforce to perform various marketing and sales activities together.
But marketing is most important department to generate sales and revenue for the company. In
context with McDonald's, both marketing-human resource Dept. works inter-related, in such a
way that marketing department directly connected to human resource for hiring the employee's

and training as per the requirements for marketing functions. The combination of both would
definitely result in the achievement of the desired goals or targets.
Marketing with Research & Development: It is the major role of marketing Dept. to
create idea generation for the development of products and services. After the creation of an idea
, next comes screening of an idea to evaluate and finalized the production of the actual products
In context with McDonald's, R&D Dept., after the generation of idea, direct connects to
marketing to do the brief analysis or market research to scope to know its future scope. After
such, it is the duty of research department to do appropriate research on various aspects such as:
what sort of the customer we need to targets, what are their taste and preference s and what they
are looking for (Gengler, 2016).
Marketing with finance: In context with McDonald's, it is the duty of the finance Dept.
to raise funds and finance to the marketing department to perform various activities such as sales
promotion, product testing, campaigns etc. The marketing and finance role is necessary, in such a
way that finance provides the budget to marketing department for carry out the promotional,
sales and distribution activities. It is the main and prime duty of marketing department is to
report the sales made during the particular period of time. The outcome is that collaboration
between two will lead to achieve of goals/targets as well as increase in the revenue and sales for
the McDonald's(Mulvey, 2015).
Marketing with operation: In context with McDonald's, it is the responsibility of the
marketing manager and also operation manager to control and manage the overall functioning
and activities in the outlets of McDonald's. Operation helps marketing in planning the logistics
and supply chain to make products reach to the consumers. Marketing provides the actual
number of products to be supply into the markets. If marketing and operations will combined
together, the results for this fast food chain would be positive and achievable.
No.5 Values and importance of the marketing role in the context of the organisation.
Importance of the marketing role can be understood by given comparison of marketing
with different departments of an organisation. For the success and effectiveness of an
organisation, it is crucial for every other department to understand and realize the actual
functioning and strategies of the marketing department to focus towards the profitability and
productivity. The role of marketing manager is to make outstanding action plan for achieving the
higher profitability and productivity through pure trends running in the market. The role of

marketing states that companies needs to formulate various marketing programs for successfully
conduct the promotion events for success of the product whether tangible or intangible.
No.6 Conclusions for effective interrelationships between different functional departments.
It is concluded that relationship of marketing with other department in the McDonald's is
very important and significant to increase the profitability and efficiency of an
organisation. Companies needs to emphasize and focus on encouraging this relationships
with each other.
TASK 2
No.7 Comparison of marketing mix with other organisation
Marketing mix comprises of 7P's which price, product, place, promotion, people, process
and physical evidence. In marketing planning process, it is essential to understand marketing mix
of McDonald's in comparison with Subway. It explains how each and every components of the
marketing mix contribute to the success of an organisation. It will talk about the past and current
trends going in the fast food chain restaurants. As an assistant marketing manager of
McDonald's, it is necessary to implement strategies and plans to generate more business for an
organisation. McDonald's wants to add new product into the portfolio of existing products. New
developed products “Mc Wrap”. For this, it is required to understand the marketing mix of the
McDonald's with Subway which are as follow:
Marketing Mix McDonald's Subway
Product They offers Hamburgers, sandwiches,
chicken, drinks, salad, breakfast etc.
to their customers at an affordable
prices. For example: this fast food
retail has comes up with several add-
on products such as chicken puff
along with different beverages or
drinks. Customer attraction is very
high for the McDonald's products and
their services. This fast food chain
has large range of products and also
Subway offers submarine sandwich
which involves both Veg and Non-
veg categories. Subway product
range is not as big as the
McDonald's but customer taste and
preference for the subway is
specific. For example: subway has
comes up with veggie sandwich
with different vegetables and items.

looking for the adding new product.
Price In regards with McDonald's, they
uses inclusive price strategy is
almost similar as compared with
other fast food channels such as
Burger King, KFC etc. For example:
McDonald's has comes up with
combo fast food products, with
exclusive pricing and affordability.
They have adopted the low pricing as
raw materials are of low quality.
They use advance technique for
cooking the food in order to save
costs and time and offers maximum
satisfaction to the customers. For
example, happy meal of McDonald's
costs £2.49 to the customers.
Subway is premium priced outlet
and uses exclusive pricing strategy.
Subway's are able to afford higher
prices of their products as they uses
ingredients of higher quality in
comparison with McDonald's. For
toppings and ingredients, they uses
vegetables and other products from
the other nation. Subway's have
rights to use premium prices
because of the certification clear
about the higher quality ingredients.
This will create opportunity and
threat for the McDonald's. For
example: Subway has offered
double chicken sandwiches to their
customer's exclusive on an occasion
of festival.
Place In current period, McDonald's owned
36,525 outlets (Henriksen, 2012.) all
over the world including United
Kingdom, America etc. They have
less stores as compared to Subway
because franchise is more expensive
to buy and afford. The advantage of
McDonald's is that one can get outlets
of this McDonald's even in the rural
area,s(M. S., 2017).
In comparison with McDonald's,
Subway have 44,875 outlets al over
the globe. Subway' geographical
presence is almost cool and
attractive as they prefers to locate
their stores in most premium and
stylish places. Both fast food chain
have their outlets even in big
shopping malls, high food streets
and airports etc.
Promotion McDonald's promote their products in Subway uses number of strategies

many different ways such as
Billboards, advertisement, pamphlets,
radio and social media etc. This fast
food chain invests huge money in
their promotion and communication.
They almost use every methods of
advertising to attract the customers
and looking forward for more
promotional platform.
for promoting their products. They
uses celebrity endorsements such as
Michael Phelps, Pele, Blake Griffin
etc. to promote their
products(Webber, 2016).
People McDonald's use to hire their staff
with best possible quality of skills,
traits and personalities etc. to serve
the customer with almost best and
attractive services. McDonald's gives
training and motivation an various
sectors such as customer engagement,
post evaluation, respect and
personality development to their staff
etc. McDonald's use to give training
to their employee on different aspects
such as inventory control, operation
aspects, financial handling's etc. For
example: this leading fast food chain
has currently working on empowering
their manpower to utilize them in
accordance with defined goals and
targets of the McDonald's.
Subway uses autocratic leadership
approach for the functioning in their
organisation. There employee's and
staff at their outlets have individual
rights and freedom to implements
different strategies for the
profitability of the company.
Subway use to give training to their
staff on the quarterly basis on the
several aspects such as employee
motivation, customer and people
engagement, inventory control etc.
For Ex: Subway has initiated the
learning & development process to
enhance the motivation of their
people to perform far better and
excellent towards the productivity
and productivity.
Process In McDonald's, food making process
is transparent and clear visible in
order to maintain hygiene and health
Subway uses various electronic
cooking equipments such as bread
iron, toppings, packaging machine

awareness within their customers.
They uses advancement equipments
for the cooking purpose. Also
manpower is well trained on these
aspects and purpose. They major
reason is that McDonald's wants to
serve their customer in least possible
time and to save time and cost both.
etc. Subway has planned to change
their cooking process into the
advancement of the technology etc.
Subway used to make food products
on spot and even in front of the
customers(Glanz, 2014).
Physical evidence McDonald's have almost 36525
outlets by year 2018. They are
looking for expansion in their
business by opening 20 more outlets
by February 2019. This will help
McDonald's to add more customers in
their base and more products in their
portfolio.
Subway have 44875 outlets around
the globe. They are looking for their
own Subway's restaurants. For this ,
there is a requirements of huge
funds for the expansion and
promotion purpose.
McDonald's needs to use all this marketing mixes with executed actions plan along with
getting the optimum results of all seven variables. In order to launch any new product, this fast
food chain have to realize the market scenario, before implementing such variables for the
purpose of efficiency and profitability. McDonald's have to make several changes such as
structure of their outlets, organisation along with effective training & development of their
workforce to raise the business productivity and efficiency. At last, it is advisable that
McDonald's needs to take care of the comparison with Subway to grow and lead in market as the
leading fast food chain in the world. Also, McDonald's needs to understand changing scenario
and taste and preference of their customers time by time.

TASK 3
No.8 Evaluation of the well structured marketing plan
Marketing plan: It is considered as the well-structured format which contain the strategies
and procedures for the development and expansion of the business. Marketing plan is the part of
complete business plan. It is to be noted that an effective and solid marketing strategy leads to
the foundation and formation of well-written marketing plan(Ellis-Chadwick, 2012).
This marketing plan will be carried on McDonald's for the purpose to launch new
products and also identify and acquire new market or customer for the leading fast food chain are
as follow:
Overview of the company: McDonald's is the leading fast food restaurants all over the
world. It is an American fast food chain which was founded in 1940 by Richard and Maurice
McDonald's. In the initial time, it was started with Hamburger stand near roads and streets. Last
year, it was awarded as the largest food chain restaurants with the purpose of serving 69 million
customers on the daily basis.
Mission & Vision: The Mission is “ to serve people with experience to enjoy and eating
fast food”. The vision is “to become leader and biggest rivalry for other chain of restaurants”.
The major aim is to deliver best quality of food and taste to the customers and also the company
business(Bader, 2016).
Strategic objective: McDonald's has planned to launch new product namely “Mc Puff”
sandwich. The strategic formulation and objective is to add more base of the customer's and food
lovers into their portfolio. Company has planned for initially 3 percent addition in their customer
charts by realising new products into the market to tackle severe competition. For fulfilling this
purpose, McDonald's has decided to launch new product “Mc Puff” sandwich for serving their
customers and also the existing one's.
Products & Services: McDonald's offers food products such as Hamburger, sandwich,
puffs, drinks, deserts etc. along with the various festive offer such as Happy meals and combo to
their customers. McDonald's use to serve their service to the 60 million customers on daily basis.
For serving fast food, McDonald's have settled to manage somewhere 36,525 outlets till now all
over the world. For attracting new customers, fast food leader has decided to launch new product
“Mc Puff”. This new products will be very tasty and also suits the customer choice and
preferences. This new product has been decided after the complete analysis of McDonald's

existing product portfolio. Also company has decided to target 3 percent more customer in their
initial stage.
Market research: From the brief research, it was found that McDonald's has lead the fast
food chain in the last five years. It was reported that McDonald's product range are now become
old and same, from last one year. As a result, they need to launch and add new product in their
portfolio. Customer base is 69 million on the daily basis. It is important for the McDonald's to
raise the strength of their customer's at least by two percent, it will increase the profitability and
efficiency of the McDonald's. It can be best explained by the help of SWOT analysis of
McDonald's:
Strength Weakness
The name “McDonald's has spread all over the
world as the leading fast food chain with the
purpose to deliver best quality and services.
The major weakness is the usage of low quality
ingredients for the cooking of food and
services purpose.
Opportunities Threat
If McDonald's wants to raise their business at
the more great extent, they need to start buying
and using the high quality ingredients.
The biggest threat is the increasing business
and competitor such as Subway, burger king,
KFC etc, which are eating business of
McDonald's
STP: It means who all they are we need to target to sell our products. Whether they are
specific people by choice, taste, affordability and preference etc. Target market involves
Segmentation, targeting and positioning. It will helpful in identifying the need of the people to
whom we need to sell our products or services. In context with McDonald's, STP would identify
the availability of the customer and also reveals how to attract them and by what medium:
Segmentation: In context with McDonald's, it is the process of dividing the potential
customers into two different groups of the responsive people to sell our products or services. Fast
food chain needs to target those who are not even used or aware about the McDonald's brand.
They need to segment existing as well as new customer(Kuusela, 2017).
Targeting: This means what all sort of the customers we need to look over to do our
business. In context with McDonald's, there are three aspects by which we need to identify who
they are we want to target. It involves: